Page 65 - The Handbook - Law Firm Networks 2018
P. 65
The Handbook: Law Firm Networks
Other Issues – Application to Professional Services Networks
While Van Alstyne addresses the negative side of the human equation in the network, there is an equally
compelling positive aspect that can be learned from the analysis. By accepting human nature as a given, the
mature network works around the issues by encouraging collaboration at many different levels. This
collaboration is not an art but a science.300
The process of controlling these natural tendencies should be set out in the bylaws and policies adopted by
the network. However, having a policy and effectively implementing it are very different. Personality issues
are very important variables. A network can have the correct bylaw provisions, but it is ultimately dependent
on people to make it work.
As the network matures, more and more members are going to change. A mature successful organization has
different issues from those of a new network. These issues can be anticipated and dealt with up front.
Policies are decided on before the problems arise. The network should have a method for addressing the
changes.
The first conscious decision the organizing committee makes when founding a network is whether it is to be
a Level 2 or 3. A network that operates as a mere extension of members’ interests or as a business with its
own objective, which is to promote the members’ business, is a very different model. This decision will set
the stage not only for how the organization is governed and functions, but also in anticipation of the issues
that will arise as the network matures.
Led by the members who undertake all of the actions, Level 2 networks may fall prey to every member
having veto power over decisions. Many of the issues raised by Van Alstyne become immediately apparent
when people from different cultures and life experiences govern the network. When a network operates by
consensus, every member acquires the right to comment regardless of his or her experience. The tendency is
to horse trade so that everyone gets something, but what may be lost is the strategic vision that brought the
members together in the first place.
Networks exist because of the self-interest of each member, which can be developed by the network.
Defining those interests in writing is what separates Level 2 and 3 networks. Most decisions will be made
according to the bylaws or by established written policies in a Level 3 network. Members may not always
agree on the objective, but the established policies provide the framework for discussion. Enforcement of
these policies against friends is difficult. In Level 2 networks this is not going to happen. For a Level 3
network, it is imperative that enforcement of the rules takes place.
It must be recognized that the first board will be very different from the board at 10 years. The new board is a
group of strangers. The 10-year board members have known each other for a decade. If there is an executive
committee, the members may be working with each other on almost a daily basis. This creates issues as to
the allocation of responsibilities. On one hand it makes the decision easier, but on the other more difficult if
there are strong disagreements
The personality issues are very important variables as the network matures. A network can have the correct
bylaw provisions, but it is ultimately dependent on people to make it work. Small groups pressing their own
300 DUPONT LEGAL NETWORK, supra note 241: “But this technology still depends on the human element and on the willingness of committed
participants to implement and use it constructively in furtherance of an articulate vision and clear goals. In a virtual law firm, participants must share a
common culture.” The network must systematically create this culture among independent members and professionals.
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Other Issues – Application to Professional Services Networks
While Van Alstyne addresses the negative side of the human equation in the network, there is an equally
compelling positive aspect that can be learned from the analysis. By accepting human nature as a given, the
mature network works around the issues by encouraging collaboration at many different levels. This
collaboration is not an art but a science.300
The process of controlling these natural tendencies should be set out in the bylaws and policies adopted by
the network. However, having a policy and effectively implementing it are very different. Personality issues
are very important variables. A network can have the correct bylaw provisions, but it is ultimately dependent
on people to make it work.
As the network matures, more and more members are going to change. A mature successful organization has
different issues from those of a new network. These issues can be anticipated and dealt with up front.
Policies are decided on before the problems arise. The network should have a method for addressing the
changes.
The first conscious decision the organizing committee makes when founding a network is whether it is to be
a Level 2 or 3. A network that operates as a mere extension of members’ interests or as a business with its
own objective, which is to promote the members’ business, is a very different model. This decision will set
the stage not only for how the organization is governed and functions, but also in anticipation of the issues
that will arise as the network matures.
Led by the members who undertake all of the actions, Level 2 networks may fall prey to every member
having veto power over decisions. Many of the issues raised by Van Alstyne become immediately apparent
when people from different cultures and life experiences govern the network. When a network operates by
consensus, every member acquires the right to comment regardless of his or her experience. The tendency is
to horse trade so that everyone gets something, but what may be lost is the strategic vision that brought the
members together in the first place.
Networks exist because of the self-interest of each member, which can be developed by the network.
Defining those interests in writing is what separates Level 2 and 3 networks. Most decisions will be made
according to the bylaws or by established written policies in a Level 3 network. Members may not always
agree on the objective, but the established policies provide the framework for discussion. Enforcement of
these policies against friends is difficult. In Level 2 networks this is not going to happen. For a Level 3
network, it is imperative that enforcement of the rules takes place.
It must be recognized that the first board will be very different from the board at 10 years. The new board is a
group of strangers. The 10-year board members have known each other for a decade. If there is an executive
committee, the members may be working with each other on almost a daily basis. This creates issues as to
the allocation of responsibilities. On one hand it makes the decision easier, but on the other more difficult if
there are strong disagreements
The personality issues are very important variables as the network matures. A network can have the correct
bylaw provisions, but it is ultimately dependent on people to make it work. Small groups pressing their own
300 DUPONT LEGAL NETWORK, supra note 241: “But this technology still depends on the human element and on the willingness of committed
participants to implement and use it constructively in furtherance of an articulate vision and clear goals. In a virtual law firm, participants must share a
common culture.” The network must systematically create this culture among independent members and professionals.
- 52 -
