Page 51 - The Handbook - Law Firm Networks 2018
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The Handbook: Law Firm Networks
hookup, liaison, linkup, partnership, relation, relationship, tie-up, union (2) the work and
activity of a number of persons who individually contribute toward the efficiency of the
whole. Synonyms of collaboration are: cooperation, coordination.245
Collaboration requires that information be available to everyone in the system. How do networks work to
create collaboration?
In the case of a Level 1 network, the operations are handled on a volunteer basis. There may be a small bank
account for funding a meeting. Members pay their own way to the meetings and make their own travel
arrangements. The website is generally outsourced and information is basic.
Level 2 operations tend to be larger in membership. This requires a full-time person to operate and maintain
the group. Level 2 networks will generally be actively recruiting new members. The members themselves
would do this.
Level 3 networks have a considerable fulltime staff. Meetings are varied: annual, regional, by practice, and
individual. The website is a representation of the membership, and the staff conducts recruiting with the
collaboration of all members.
Financing the Network
The degree of collaboration in a network is dependent on how much money is available. Finances would
include the members’ time and out-of-pocket expenses, as well as the network’s expenditures. Revenue will
be needed to hire a staff to coordinate activities and programs. A network will need funds to operate. While a
Level 1 network has no appreciable revenue, a Level 3 can be a multi-million dollar operation. How do
networks generate funding?
The majority of the revenue will come from annual dues paid by all members. Some funds will be generated
from meeting registrations, which can become self-financing. There may be other revenue sources.
The first question is who sets the dues. In Level 2 networks that do not have a formal organization structure
or specific long-term objectives the dues may be set be the agreement of all members. The effect is to keep
the dues relatively low based upon the social factors described in the governance section. In Level 3
networks, the board of directors sets the dues.
If dues are the basis for financing the networks they must do so in an equitable manner, and they must be the
same for all members. Setting the amount requires significant evaluation — too low will choke the network’s
ability to provide benefits; too high will establish a perpetual cost-benefit analysis at the time the firms renew
their membership. How are dues established?
The first question is: What is the purpose of the dues? The approach by some members is to be very
conservative, having a “let’s wait and see” attitude. This will likely mean that nothing will happen in the
network. Dues should be set out so that they always meet the expectations of the members.
In an international organization there will be members that are very well off and those from poorer countries.
Some may want to distinguish between the two circumstances. This would be a mistake since there is no way
to differentiate one small country from another. Additionally, the practices will vary from country to country.
In many small countries top professionals are able to bill clients at levels close to international standards.
This is clearly the case of the international law firms and the Big 4.
245 MERRIAM-WEBSTER’S COLLEGIATE DICTIONARY (1999).
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hookup, liaison, linkup, partnership, relation, relationship, tie-up, union (2) the work and
activity of a number of persons who individually contribute toward the efficiency of the
whole. Synonyms of collaboration are: cooperation, coordination.245
Collaboration requires that information be available to everyone in the system. How do networks work to
create collaboration?
In the case of a Level 1 network, the operations are handled on a volunteer basis. There may be a small bank
account for funding a meeting. Members pay their own way to the meetings and make their own travel
arrangements. The website is generally outsourced and information is basic.
Level 2 operations tend to be larger in membership. This requires a full-time person to operate and maintain
the group. Level 2 networks will generally be actively recruiting new members. The members themselves
would do this.
Level 3 networks have a considerable fulltime staff. Meetings are varied: annual, regional, by practice, and
individual. The website is a representation of the membership, and the staff conducts recruiting with the
collaboration of all members.
Financing the Network
The degree of collaboration in a network is dependent on how much money is available. Finances would
include the members’ time and out-of-pocket expenses, as well as the network’s expenditures. Revenue will
be needed to hire a staff to coordinate activities and programs. A network will need funds to operate. While a
Level 1 network has no appreciable revenue, a Level 3 can be a multi-million dollar operation. How do
networks generate funding?
The majority of the revenue will come from annual dues paid by all members. Some funds will be generated
from meeting registrations, which can become self-financing. There may be other revenue sources.
The first question is who sets the dues. In Level 2 networks that do not have a formal organization structure
or specific long-term objectives the dues may be set be the agreement of all members. The effect is to keep
the dues relatively low based upon the social factors described in the governance section. In Level 3
networks, the board of directors sets the dues.
If dues are the basis for financing the networks they must do so in an equitable manner, and they must be the
same for all members. Setting the amount requires significant evaluation — too low will choke the network’s
ability to provide benefits; too high will establish a perpetual cost-benefit analysis at the time the firms renew
their membership. How are dues established?
The first question is: What is the purpose of the dues? The approach by some members is to be very
conservative, having a “let’s wait and see” attitude. This will likely mean that nothing will happen in the
network. Dues should be set out so that they always meet the expectations of the members.
In an international organization there will be members that are very well off and those from poorer countries.
Some may want to distinguish between the two circumstances. This would be a mistake since there is no way
to differentiate one small country from another. Additionally, the practices will vary from country to country.
In many small countries top professionals are able to bill clients at levels close to international standards.
This is clearly the case of the international law firms and the Big 4.
245 MERRIAM-WEBSTER’S COLLEGIATE DICTIONARY (1999).
- 38 -
