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Law and Accounting Networks and Associations
tend to be more practical, while lawyers tend to be more long term. However, this is not always the case in that
accountants clearly understand the need for networks more than lawyers do.
Governance issues are very different in the DuPont Legal Network.214 In 1992, DuPont established its own
internal legal network. Unlike other companies that use different law firms, DuPont’s objective was to create
an actual organized network. The law firms would develop personal relationships with one another through
meetings and other organized events. The objective was cost-effective and efficient representation because the
firms knew DuPont as well as one another. Today the collaboration has gone beyond networking to promotion
of the firms to other possible clients.
In this network, the client determines governance. While monetary rewards are always important, so are
recognition and participation. Although DuPont can control the network, it is not in its best interests to fully
do so. It is preferable to delegate some governance responsibilities to the member firms. This delegation can
be found in other legal networks that have been organized by consultants.215
Network Operations
On the surface, networks appear relatively simple to operate. There are members who pay dues or otherwise
finance the operations, and there are activities in which members can participate. However, it is not that easy.
This section will first evaluate the theories that are applicable for operating the network. It will then assess the
practical considerations of doing so.
Operating a network poses a series of challenges, beginning with the fact that a network functions by example.
As discussed in the governance section, a network is not an organization over which a person or small group
has dominion. Networks are collaborative, not subject to command and control. Members attend meetings
because they see other members attending. They publish articles in the network publications because other
members publish.
If one steps back farther, in the broader context the professional services networks operate by controlling
information. In a network, members make decisions individually based on general information that is available.
This is different from a hierarchical organization where information distribution is more limited and sent to
specific individuals. Creating an environment where information flows to its members is the key to a successful
network operation. Professor Van Alstyne describes this below.
Operations – Theory and Literature
Operations of a network are different from other business entities. As collaborative ventures, they must provide
information and educate members.
A successful network must educate the members on the use of the network. Unlike
businesses that have economic interest networks which effectively store information, the
networks are made up of independent organizations. Establishing institutional knowledge
is much more difficult. The role of information is that much more important. The
importance of information assets to network organizations216 raises important questions
214 DUPONT LEGAL NETWORK, supra note 149.
215 TAGLaw has an advisory board, but the network is owned by a management company for its alliances. Advisory Board, TAGLAW,
www.taglaw.com/index.php?option=com_content&view=article&id=1330&Itemid=100009.
216 Van Alstyne, supra note 9, citing P. Drucker, The Coming of the New Organization, HARV. BUS. REV. (1988); see also Walter W. Powell, Neither
Market Nor Hierarchy: Network Forms of Organizations, 12 RES. IN ORG. BEHAVIOR 295, 295-330 (1990); see also S. L. Jarvenpaa & B. Ives, The
Global Network Organization of the Future: Information Management Opportunities and Challenges, 10 J. OF MGMT. INFORMATION SYSTEMS 25, 25-
57 (1994); see also GERARD CLIQUET, ECONOMICS AND MANAGEMENT OF NETWORKS: FRANCHISING, STRATEGIC ALLIANCES AND NETWORKS (2007).
36
tend to be more practical, while lawyers tend to be more long term. However, this is not always the case in that
accountants clearly understand the need for networks more than lawyers do.
Governance issues are very different in the DuPont Legal Network.214 In 1992, DuPont established its own
internal legal network. Unlike other companies that use different law firms, DuPont’s objective was to create
an actual organized network. The law firms would develop personal relationships with one another through
meetings and other organized events. The objective was cost-effective and efficient representation because the
firms knew DuPont as well as one another. Today the collaboration has gone beyond networking to promotion
of the firms to other possible clients.
In this network, the client determines governance. While monetary rewards are always important, so are
recognition and participation. Although DuPont can control the network, it is not in its best interests to fully
do so. It is preferable to delegate some governance responsibilities to the member firms. This delegation can
be found in other legal networks that have been organized by consultants.215
Network Operations
On the surface, networks appear relatively simple to operate. There are members who pay dues or otherwise
finance the operations, and there are activities in which members can participate. However, it is not that easy.
This section will first evaluate the theories that are applicable for operating the network. It will then assess the
practical considerations of doing so.
Operating a network poses a series of challenges, beginning with the fact that a network functions by example.
As discussed in the governance section, a network is not an organization over which a person or small group
has dominion. Networks are collaborative, not subject to command and control. Members attend meetings
because they see other members attending. They publish articles in the network publications because other
members publish.
If one steps back farther, in the broader context the professional services networks operate by controlling
information. In a network, members make decisions individually based on general information that is available.
This is different from a hierarchical organization where information distribution is more limited and sent to
specific individuals. Creating an environment where information flows to its members is the key to a successful
network operation. Professor Van Alstyne describes this below.
Operations – Theory and Literature
Operations of a network are different from other business entities. As collaborative ventures, they must provide
information and educate members.
A successful network must educate the members on the use of the network. Unlike
businesses that have economic interest networks which effectively store information, the
networks are made up of independent organizations. Establishing institutional knowledge
is much more difficult. The role of information is that much more important. The
importance of information assets to network organizations216 raises important questions
214 DUPONT LEGAL NETWORK, supra note 149.
215 TAGLaw has an advisory board, but the network is owned by a management company for its alliances. Advisory Board, TAGLAW,
www.taglaw.com/index.php?option=com_content&view=article&id=1330&Itemid=100009.
216 Van Alstyne, supra note 9, citing P. Drucker, The Coming of the New Organization, HARV. BUS. REV. (1988); see also Walter W. Powell, Neither
Market Nor Hierarchy: Network Forms of Organizations, 12 RES. IN ORG. BEHAVIOR 295, 295-330 (1990); see also S. L. Jarvenpaa & B. Ives, The
Global Network Organization of the Future: Information Management Opportunities and Challenges, 10 J. OF MGMT. INFORMATION SYSTEMS 25, 25-
57 (1994); see also GERARD CLIQUET, ECONOMICS AND MANAGEMENT OF NETWORKS: FRANCHISING, STRATEGIC ALLIANCES AND NETWORKS (2007).
36
