Page 34 - The Handbook - Legal and Accounting Networks 81
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Law and Accounting Networks and Associations
The use of hyphenated names or the country retention of the previous name in the country, unlike the Big 4,
raises issues as to the strength of the brand. While is easier to add new firms, the model makes it also easier
for firms to leave since the loyalty may continue to the merged firm. Unlike the accounting firms, which clearly
are understood to be networks, the vereins want to continue to project the appearance of being law firms. It
may be difficult to have it both ways.
The vereins’ expectation is that the “Big 5” or “Big 10” law firms would emerge with them as the leaders. If
this were the case, they would be solidified in that position as leaders. However, given their relatively small
size, when compared to the traditional law firm network, the reverse may be true as technology and market
segmentation propel these networks to the forefront. What could do this?
Networks to date have been largely reactive rather than proactive. A new organization, AILFN (Association
of International Law Firm Networks) is changing this.154 AILFN is a trade association owned by law firm
networks to represent their common interests. AILFN has four purposes: (1) enhance the position and
recognition of all networks in the legal market; including the importance of Independent Business Law Firms
(IBLF) which represent 20 percent of all legal business; (2) establish common principles to maintain standards
of quality; (3) provide a forum for networks to exchange non-confidential information; and (4) negotiate
agreements with vendors that can increase the efficiency and effectiveness of networks and their members.
AILFN will have network members whose members have more than 200,000 attorneys, in 5,000-plus offices
and who cumulatively bill more than $120 annually. This is approximately 20 percent of the commercial legal
services market on earth.
How does AILFN change the equation? It does so by providing a common platform to communicate to clients
the effectiveness and efficiency of networks. With new technology, this communications changes the dynamics
of marketing discussed in Chapter 6. Through Locate Law Networks and Requests for Qualifications, AILFN
has changed how networks are found and how individual lawyers are selected. This technology will be
combined with measurable quality standards. The result will be a new transparency.
Given the IBLF represents 20 percent of the legal business services market, the vehicle for communicating
the advantages is already apparent.
Is the world coming full circle?155 What is changing is that these models are being understood for what they
are: delivery systems for legal services. Each has their inherent strengths and weaknesses as models. The
question is why the traditional law and multidisciplinary network model is different from the international law
firm, and also distinguishable from the verein and the Big 4. It is up to each of four alternatives to make these
distinctions and demonstrate their respective values.
154 ASSOCIATION OF INTERNATIONAL LAW FIRM NETWORKS, www.ailfn.com.
155 See Johnson, supra note 142, www.americanlawyer.com/PubArticleTAL.jsp?id=1202591158156&slreturn=20130815192228; see also Ed
Shanahan, The Am Law 100: Grand Illusion, THE AM LAW DAILY( May 2, 2011), amlawdaily.typepad.com/amlawdaily/2011/05/grandillusion.html.
Peter Kalis, managing partner of KL Gates, argues that some firms in the Am Law 100 should not be ranked because they are not law firms but Swiss
vereins. Apparently, any form of non-traditional management is not acceptable in the legal profession. See Staci Zaretsky, Bow Before the Global 100,
the Top-Grossing Law Firms on the Planet, ABOVE THE LAW (Oct. 1, 2013), abovethelaw.com/2013/10/bow-before-the-global-100-the-top-grossing-
law-firms-on-the-planet/ (DLA Piper and Baker & McKenzie, who are numbers 1 and 2, are vereins).
22
The use of hyphenated names or the country retention of the previous name in the country, unlike the Big 4,
raises issues as to the strength of the brand. While is easier to add new firms, the model makes it also easier
for firms to leave since the loyalty may continue to the merged firm. Unlike the accounting firms, which clearly
are understood to be networks, the vereins want to continue to project the appearance of being law firms. It
may be difficult to have it both ways.
The vereins’ expectation is that the “Big 5” or “Big 10” law firms would emerge with them as the leaders. If
this were the case, they would be solidified in that position as leaders. However, given their relatively small
size, when compared to the traditional law firm network, the reverse may be true as technology and market
segmentation propel these networks to the forefront. What could do this?
Networks to date have been largely reactive rather than proactive. A new organization, AILFN (Association
of International Law Firm Networks) is changing this.154 AILFN is a trade association owned by law firm
networks to represent their common interests. AILFN has four purposes: (1) enhance the position and
recognition of all networks in the legal market; including the importance of Independent Business Law Firms
(IBLF) which represent 20 percent of all legal business; (2) establish common principles to maintain standards
of quality; (3) provide a forum for networks to exchange non-confidential information; and (4) negotiate
agreements with vendors that can increase the efficiency and effectiveness of networks and their members.
AILFN will have network members whose members have more than 200,000 attorneys, in 5,000-plus offices
and who cumulatively bill more than $120 annually. This is approximately 20 percent of the commercial legal
services market on earth.
How does AILFN change the equation? It does so by providing a common platform to communicate to clients
the effectiveness and efficiency of networks. With new technology, this communications changes the dynamics
of marketing discussed in Chapter 6. Through Locate Law Networks and Requests for Qualifications, AILFN
has changed how networks are found and how individual lawyers are selected. This technology will be
combined with measurable quality standards. The result will be a new transparency.
Given the IBLF represents 20 percent of the legal business services market, the vehicle for communicating
the advantages is already apparent.
Is the world coming full circle?155 What is changing is that these models are being understood for what they
are: delivery systems for legal services. Each has their inherent strengths and weaknesses as models. The
question is why the traditional law and multidisciplinary network model is different from the international law
firm, and also distinguishable from the verein and the Big 4. It is up to each of four alternatives to make these
distinctions and demonstrate their respective values.
154 ASSOCIATION OF INTERNATIONAL LAW FIRM NETWORKS, www.ailfn.com.
155 See Johnson, supra note 142, www.americanlawyer.com/PubArticleTAL.jsp?id=1202591158156&slreturn=20130815192228; see also Ed
Shanahan, The Am Law 100: Grand Illusion, THE AM LAW DAILY( May 2, 2011), amlawdaily.typepad.com/amlawdaily/2011/05/grandillusion.html.
Peter Kalis, managing partner of KL Gates, argues that some firms in the Am Law 100 should not be ranked because they are not law firms but Swiss
vereins. Apparently, any form of non-traditional management is not acceptable in the legal profession. See Staci Zaretsky, Bow Before the Global 100,
the Top-Grossing Law Firms on the Planet, ABOVE THE LAW (Oct. 1, 2013), abovethelaw.com/2013/10/bow-before-the-global-100-the-top-grossing-
law-firms-on-the-planet/ (DLA Piper and Baker & McKenzie, who are numbers 1 and 2, are vereins).
22
