Page 5 - The Handbook - Legal and Accounting Networks 81
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2019 Introduction
Stephen J. McGarry1
The first edition of this book was published in 2011 as Professional Services Networks – The Future of the
Accounting and Legal Professions. It was completely updated and published in 2015 under the title: Law Firm
Networks – The Future of the Legal Profession. The Handbook – Law Firm Networks has expanded on the
concepts, the models and the practicalities of network operations. The Handbook’s objective is to provide
recipes for law firm network success in the ever-changing legal market.
While the new edition covers many of the same subjects, networks themselves have undergone a tremendous
number of internal and external changes. In particular, the formation of the Association of International Law
Firm Networks (AILFN)2 illustrates just how far we have come in such a short time. AILFN represents the
common interest of international, regional, and specialty networks. It has increased the status of networks
through its ability to directly market. In the coming years, the network evolution will become a revolution as
networks are recognized as the only model for global legal representation.
The rapid consolidation of the different models in the legal profession began only eight years ago with the
recession. There has been a realization that the traditional integrated law firm cannot achieve global status or
economically provide all of the services that clients require. A number of the largest law firms have sought to
reconstitute themselves with a more flexible structure that recognizes cultural and economic differences in
each market. Like the Big 4 accounting firms, they have adopted various network-type structures in which the
local firms are independent entities. Since this umbrella entity is registered in Switzerland as an association,
they commonly go by the Swiss name: verein. Recent changes in the market reflect that these composite models
are showing signs of age.3
The traditional law firm networks have also changed; many are more than 20 years old. Though as entities they
represent by far the largest segment of the legal profession, their relevance has been questioned.4 Their
membership is under attack by the vereins that can poach their members by offering a recognized name brand.5
Despite many firms’ status as the largest in their states or countries, they are commonly referred to as mid-tier,
1 Stephen McGarry, B.A., M.A., J.D., and LL.M. (Taxation), founded World Services Group (WSG), a multidisciplinary network, in 2002. As
president, he grew it to 150 firms that have 21,000 professionals in 600 offices in more than 100 countries. In 1989, McGarry founded Lex Mundi, the
world’s largest law firm network. As president, he grew it to 160 law firms that today have 21,000 attorneys in 600 offices in 100-plus countries. These
two networks represent 2 percent of all the lawyers on earth whose members bill their clients an estimated $20 billion dollars annually. In 1995, he
founded HG.org, one of the first five significant legal websites. Today, it is among the world’s largest sites with more than 10 million pages and 1.7
million unique users each month who download almost 2 million pages. In 2015, McGarry created the Association of International Law Firm Networks,
or AILFN, an association of the leading law firm networks. Its project Locate Law Networks provides instant access to more than 300,000 lawyers in
5,000 offices, billing clients $120 billion dollars annually.
McGarry is admitted by exam to the bars of Minnesota, Texas, and Louisiana. In 2002, American Lawyer Media (ALM) published McGarry’s treatise,
Multidisciplinary Practices and Partnerships. McGarry has authored numerous articles on associations, international business transactions, and taxation.
His most recent publication is Leaders in Legal Business (2018), which has been downloaded more than 15,000 times. McGarry is also an author of
several poems in Spanish. One is on strategic planning entitled, Juegos de Puntos. McGarry is also a painter: McGarry’s Gallery of Art.
Observations and opinions are those of the author and not of any organization or any member of an organization.
2 ASSOCIATION OF INTERNATIONAL LAW FIRM NETWORKS, http://www.ailfn.com. AILFN is a new trade association owned by law firm networks that
represents their common interests. AILFN has four purposes: (1) enhance the position and recognition of all networks in the legal market; (2) establish
common principles to maintain standards of quality; (3) provide a forum for networks to exchange information; and (4) negotiate agreements with
vendors that can increase the efficiency and effectiveness of networks and their members. AILFN’s members will have more than 300,000 lawyers in
5,000 offices, billing clients $120 billion dollars annually.
3 Chris Johnson, Global Law Firms and Vereins: The End of the Affair? THE AM LAW DAILY (March 22, 2017),
http://www.americanlawyer.com/id=1202781867597/Global-Law-Firms-and-Vereins-The-End-of-the-Affair?slreturn=20170229143243 ,discusses
the rise of the CLG as an alternative form of network that reduce risk of vicarious liability; Georgina Stanley, King & Wood Mallesons Europe in
Crisis and the British Legal Awards – the Best of Legal Week Last Week, LEGAL WEEK, Nov. 28, 2016.
4 Norman Clark, Does Your Network Deliver External Value? WORLDVIEW BLOG (April 27, 2014), www.walkerclark.com/worldview-blog/previous-
worldview-posts/123-does-your-network-deliver-external-value.html; Michael Hatchwell, Legal Networks Should Not Be Considered Antiquated,
GLOBAL LEGAL POST (April 15, 2015), www.globallegalpost.com/blogs/management-speak/legal-networks-shouldnt-be-considered-antiquated-
43962985/.
5 Julie Triedman, Dentons Ups the Ante in Global Growth Gamble, AMERICAN LAWYER, Nov. 3, 2015.
iii
Stephen J. McGarry1
The first edition of this book was published in 2011 as Professional Services Networks – The Future of the
Accounting and Legal Professions. It was completely updated and published in 2015 under the title: Law Firm
Networks – The Future of the Legal Profession. The Handbook – Law Firm Networks has expanded on the
concepts, the models and the practicalities of network operations. The Handbook’s objective is to provide
recipes for law firm network success in the ever-changing legal market.
While the new edition covers many of the same subjects, networks themselves have undergone a tremendous
number of internal and external changes. In particular, the formation of the Association of International Law
Firm Networks (AILFN)2 illustrates just how far we have come in such a short time. AILFN represents the
common interest of international, regional, and specialty networks. It has increased the status of networks
through its ability to directly market. In the coming years, the network evolution will become a revolution as
networks are recognized as the only model for global legal representation.
The rapid consolidation of the different models in the legal profession began only eight years ago with the
recession. There has been a realization that the traditional integrated law firm cannot achieve global status or
economically provide all of the services that clients require. A number of the largest law firms have sought to
reconstitute themselves with a more flexible structure that recognizes cultural and economic differences in
each market. Like the Big 4 accounting firms, they have adopted various network-type structures in which the
local firms are independent entities. Since this umbrella entity is registered in Switzerland as an association,
they commonly go by the Swiss name: verein. Recent changes in the market reflect that these composite models
are showing signs of age.3
The traditional law firm networks have also changed; many are more than 20 years old. Though as entities they
represent by far the largest segment of the legal profession, their relevance has been questioned.4 Their
membership is under attack by the vereins that can poach their members by offering a recognized name brand.5
Despite many firms’ status as the largest in their states or countries, they are commonly referred to as mid-tier,
1 Stephen McGarry, B.A., M.A., J.D., and LL.M. (Taxation), founded World Services Group (WSG), a multidisciplinary network, in 2002. As
president, he grew it to 150 firms that have 21,000 professionals in 600 offices in more than 100 countries. In 1989, McGarry founded Lex Mundi, the
world’s largest law firm network. As president, he grew it to 160 law firms that today have 21,000 attorneys in 600 offices in 100-plus countries. These
two networks represent 2 percent of all the lawyers on earth whose members bill their clients an estimated $20 billion dollars annually. In 1995, he
founded HG.org, one of the first five significant legal websites. Today, it is among the world’s largest sites with more than 10 million pages and 1.7
million unique users each month who download almost 2 million pages. In 2015, McGarry created the Association of International Law Firm Networks,
or AILFN, an association of the leading law firm networks. Its project Locate Law Networks provides instant access to more than 300,000 lawyers in
5,000 offices, billing clients $120 billion dollars annually.
McGarry is admitted by exam to the bars of Minnesota, Texas, and Louisiana. In 2002, American Lawyer Media (ALM) published McGarry’s treatise,
Multidisciplinary Practices and Partnerships. McGarry has authored numerous articles on associations, international business transactions, and taxation.
His most recent publication is Leaders in Legal Business (2018), which has been downloaded more than 15,000 times. McGarry is also an author of
several poems in Spanish. One is on strategic planning entitled, Juegos de Puntos. McGarry is also a painter: McGarry’s Gallery of Art.
Observations and opinions are those of the author and not of any organization or any member of an organization.
2 ASSOCIATION OF INTERNATIONAL LAW FIRM NETWORKS, http://www.ailfn.com. AILFN is a new trade association owned by law firm networks that
represents their common interests. AILFN has four purposes: (1) enhance the position and recognition of all networks in the legal market; (2) establish
common principles to maintain standards of quality; (3) provide a forum for networks to exchange information; and (4) negotiate agreements with
vendors that can increase the efficiency and effectiveness of networks and their members. AILFN’s members will have more than 300,000 lawyers in
5,000 offices, billing clients $120 billion dollars annually.
3 Chris Johnson, Global Law Firms and Vereins: The End of the Affair? THE AM LAW DAILY (March 22, 2017),
http://www.americanlawyer.com/id=1202781867597/Global-Law-Firms-and-Vereins-The-End-of-the-Affair?slreturn=20170229143243 ,discusses
the rise of the CLG as an alternative form of network that reduce risk of vicarious liability; Georgina Stanley, King & Wood Mallesons Europe in
Crisis and the British Legal Awards – the Best of Legal Week Last Week, LEGAL WEEK, Nov. 28, 2016.
4 Norman Clark, Does Your Network Deliver External Value? WORLDVIEW BLOG (April 27, 2014), www.walkerclark.com/worldview-blog/previous-
worldview-posts/123-does-your-network-deliver-external-value.html; Michael Hatchwell, Legal Networks Should Not Be Considered Antiquated,
GLOBAL LEGAL POST (April 15, 2015), www.globallegalpost.com/blogs/management-speak/legal-networks-shouldnt-be-considered-antiquated-
43962985/.
5 Julie Triedman, Dentons Ups the Ante in Global Growth Gamble, AMERICAN LAWYER, Nov. 3, 2015.
iii
