Page 94 - The Handbook - Law Firm Networks 2018
P. 94
The Handbook: Law Firm Networks
Chapter 9 – Future of Law Firm Networks
In 1985 there were approximately 20 networks in the legal and accounting professions combined (in
accounting there were 15, which included the Big 8, BDO, Grant Thornton,416 and a few others; there were
eight in legal). Today there are more than 200 professional services networks. Their members have more
than one million professionals and staff. Cumulative annual revenues exceed $200 billion. Accounting
networks have become the vehicle for providing clients professional services and the model for how
networks will develop. This was inevitable.
Exhibit 9 – Network Growth, 1986 – 2018
There are six factors that made this outcome inevitable: globalization, network structure, economics,
demographics, regulations, and technology. Each of these has been discussed throughout this book, and their
effects can be summarized.
Globalization: The world today is truly flat; all countries and locations adjoin one another.417 Any
significant event occurring in one country or region has an immediate impact on other countries or
regions. While the general commercial globalization will continue, the focus is shifting from the
mature markets of the United States to the developing markets of Brazil, Russia, India, China, and
South Africa (BRICS countries).418 Companies in these countries will become net investors, joining
the already developed countries in the globalization process. Networks will change their international
emphasis to finding new opportunities for members no matter where they are located.
Network Structure: The network structure is both effective and cost efficient for providing
services. As has been demonstrated in Chapter 1, the stand-alone organization has its advantages, as
does the network. Based upon the vast experience in the accounting profession, the combination of
independent firms with a network can create optimal results. This is clearly reflected in the $100-
416 See infra Appendix 7.
417 Thomas Friedman, The World is Flat (2004), available at www.thomaslfriedman.com/bookshelf/the-world-is-flat.
418 BRICS, en.wikipedia.org/wiki/BRICS (last visited Feb. 6, 2016).
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Chapter 9 – Future of Law Firm Networks
In 1985 there were approximately 20 networks in the legal and accounting professions combined (in
accounting there were 15, which included the Big 8, BDO, Grant Thornton,416 and a few others; there were
eight in legal). Today there are more than 200 professional services networks. Their members have more
than one million professionals and staff. Cumulative annual revenues exceed $200 billion. Accounting
networks have become the vehicle for providing clients professional services and the model for how
networks will develop. This was inevitable.
Exhibit 9 – Network Growth, 1986 – 2018
There are six factors that made this outcome inevitable: globalization, network structure, economics,
demographics, regulations, and technology. Each of these has been discussed throughout this book, and their
effects can be summarized.
Globalization: The world today is truly flat; all countries and locations adjoin one another.417 Any
significant event occurring in one country or region has an immediate impact on other countries or
regions. While the general commercial globalization will continue, the focus is shifting from the
mature markets of the United States to the developing markets of Brazil, Russia, India, China, and
South Africa (BRICS countries).418 Companies in these countries will become net investors, joining
the already developed countries in the globalization process. Networks will change their international
emphasis to finding new opportunities for members no matter where they are located.
Network Structure: The network structure is both effective and cost efficient for providing
services. As has been demonstrated in Chapter 1, the stand-alone organization has its advantages, as
does the network. Based upon the vast experience in the accounting profession, the combination of
independent firms with a network can create optimal results. This is clearly reflected in the $100-
416 See infra Appendix 7.
417 Thomas Friedman, The World is Flat (2004), available at www.thomaslfriedman.com/bookshelf/the-world-is-flat.
418 BRICS, en.wikipedia.org/wiki/BRICS (last visited Feb. 6, 2016).
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