Page 46 - The Handbook - Legal and Accounting Networks 81
P. 46
Law and Accounting Networks and Associations
Members who have an interest in these areas run the committees. The committees may use the resources of
member firms or may also hire outside professionals. This would usually be the case in the design of a website.
Because many of these networks are international and have a significant number of members, they also have a
full-time staff person. This person takes direction from the directors and chair, and is responsible for the
website, annual meetings, and, perhaps, practice groups. There are generally no significant external marketing
efforts.
An example of Level 2 networks governance is Interlaw.206 The network does not reflect any leadership,
policies, rules, or other information on its website about the actual governance of the network. The World Law
Group207 lists its officers and directors. The presidency of the group rotates back to a former president who
was elected by a member firm and has been out of office for five years. This would indicate that there is no
succession plan. Additionally, since there have been virtually no new members in 10 years, it strongly suggests
that the group has no intention of developing into a Level 3 organization. The corporate governance function
is indicative of this perspective. While Club de Abogados208 is the oldest network, the website lists no
responsible individual. The same member has held the secretariat function for more than 20 years.
Governance issues in Level 3 networks are more complex because each of the limiting factors described in
Level 2 disappears. Level 3 accounting networks are more refined than Level 3 legal networks. For example,
the members of a Level 3 legal network are usually large firms in their respective states and countries. As large
firms, they have complex national and international practices. The firms may have branch offices that compete
with other offices’ members. The size of the firm means that significant efforts must be made for awareness.
The Level 3 networks are usually global. Cultures and different ways of performing professional services need
to be taken into consideration. The members of large firms will have other relationships. The network will
have an external interest in promoting itself to the profession, businesspersons, associations, and others. Simply
stated, Level 3 networks are global businesses that are governed accordingly.
A collaborative relationship between the members, board, executive committee, and full-time professional staff
is the hallmark of a Level 3 network. In a Level 3 organization the board functions as a board would function
in any business. Their role is advisory. The board adopts broad policies that the executives are responsible for
implementing. They advise on broad strategies and decide on members, the overall budget, dues, and other
assessments. An executive committee composed of board members and the professional staff is responsible
for general operations. The staff is responsible for recruiting, marketing, accounting, and other business
services.
If one looks at a website, it is fairly easy to determine which networks are Level 2 and Level 3 if the governance
is clearly set out. For example, on the TerraLex site,209 there is a chairman, a chair-elect, regional directors,
and directors at large. Each has been assigned a specific task and responsibility. The chief operating officer is
the chairman, who is from a member firm. An executive director supervises the staff. This is in contrast to
Meritas,210 which has a professional staff of 12. The title of the CEO is president, and there is a member board.
The best-known legal network, Lex Mundi,211 is another example of a Level 3 network. The development of
this organization illustrates both the governance and operations issues of a start-up network. After two years
of organizing, 82 potential members were offered the opportunity to subscribe to the network on May 1, 1989.
They all joined. From inception until the first annual meeting, the organizing committee had to draft bylaws,
206 INTERLAW, supra note 161.
207 THE WORLD LAW GROUP, www.theworldlawgroup.com.
208 CLUB DE ABOGADOS, supra note 160.
209 TERRALEX, supra note 125.
210 MERITAS, supra note 159.
211 LEX MUNDI, supra note 51.
34
Members who have an interest in these areas run the committees. The committees may use the resources of
member firms or may also hire outside professionals. This would usually be the case in the design of a website.
Because many of these networks are international and have a significant number of members, they also have a
full-time staff person. This person takes direction from the directors and chair, and is responsible for the
website, annual meetings, and, perhaps, practice groups. There are generally no significant external marketing
efforts.
An example of Level 2 networks governance is Interlaw.206 The network does not reflect any leadership,
policies, rules, or other information on its website about the actual governance of the network. The World Law
Group207 lists its officers and directors. The presidency of the group rotates back to a former president who
was elected by a member firm and has been out of office for five years. This would indicate that there is no
succession plan. Additionally, since there have been virtually no new members in 10 years, it strongly suggests
that the group has no intention of developing into a Level 3 organization. The corporate governance function
is indicative of this perspective. While Club de Abogados208 is the oldest network, the website lists no
responsible individual. The same member has held the secretariat function for more than 20 years.
Governance issues in Level 3 networks are more complex because each of the limiting factors described in
Level 2 disappears. Level 3 accounting networks are more refined than Level 3 legal networks. For example,
the members of a Level 3 legal network are usually large firms in their respective states and countries. As large
firms, they have complex national and international practices. The firms may have branch offices that compete
with other offices’ members. The size of the firm means that significant efforts must be made for awareness.
The Level 3 networks are usually global. Cultures and different ways of performing professional services need
to be taken into consideration. The members of large firms will have other relationships. The network will
have an external interest in promoting itself to the profession, businesspersons, associations, and others. Simply
stated, Level 3 networks are global businesses that are governed accordingly.
A collaborative relationship between the members, board, executive committee, and full-time professional staff
is the hallmark of a Level 3 network. In a Level 3 organization the board functions as a board would function
in any business. Their role is advisory. The board adopts broad policies that the executives are responsible for
implementing. They advise on broad strategies and decide on members, the overall budget, dues, and other
assessments. An executive committee composed of board members and the professional staff is responsible
for general operations. The staff is responsible for recruiting, marketing, accounting, and other business
services.
If one looks at a website, it is fairly easy to determine which networks are Level 2 and Level 3 if the governance
is clearly set out. For example, on the TerraLex site,209 there is a chairman, a chair-elect, regional directors,
and directors at large. Each has been assigned a specific task and responsibility. The chief operating officer is
the chairman, who is from a member firm. An executive director supervises the staff. This is in contrast to
Meritas,210 which has a professional staff of 12. The title of the CEO is president, and there is a member board.
The best-known legal network, Lex Mundi,211 is another example of a Level 3 network. The development of
this organization illustrates both the governance and operations issues of a start-up network. After two years
of organizing, 82 potential members were offered the opportunity to subscribe to the network on May 1, 1989.
They all joined. From inception until the first annual meeting, the organizing committee had to draft bylaws,
206 INTERLAW, supra note 161.
207 THE WORLD LAW GROUP, www.theworldlawgroup.com.
208 CLUB DE ABOGADOS, supra note 160.
209 TERRALEX, supra note 125.
210 MERITAS, supra note 159.
211 LEX MUNDI, supra note 51.
34
