Page 52 - The Handbook - Legal and Accounting Networks 81
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Law and Accounting Networks and Associations

Level 4 networks are full-scale operations financed by the members who may contribute part of the income to
maintain the network. A professional independent staff operates the networks. The board sets its goals and
objectives, with the actual operations carried out by an executive group with a large full-time staff.

Network Staff

The staff’s function in a professional services network will depend on the origin of the network, its current
objectives, and whether the network is Level 2, 3, or 4. Level 1 networks do not have staff since the members
contribute staff on a voluntary basis to organize any event.

Level 2 networks that are founded by individual law or accounting firms tend to have staff that would be
described as non-strategic and functional. The staff reports to the chairman who is an attorney or accountant
at one of the member firms. The staff person is purely support in nature rather than strategic. Board members
may become involved and be responsible for such activities as website design, technology, and/or recruiting.
Many of the activities are outsourced. Meeting planners may do meetings. The staff is usually located in the
offices of one of the members.229

Networks that are formed for strategic reasons have a staff that collaborates with the board and members. There
may be many staff at the network.230 Level 3 networks have five to 25 full-time staff members. Meritas231 and
Lex Mundi232 have listed the different types of staff members on their websites. Persons who are not practicing
attorneys or accountants generally formed these networks. They are Level 3 networks, which operate as a
business to meet members’ objectives. In these networks the title of the CEO may be “president,” and he or
she operates within the framework established by the board. In a Level 3 network, the staff is responsible for
marketing strategy (within the confines of the budget), website maintenance, recruiting, and general operations
of the network. This is done on a collaborative basis with the executive committee, board, and the members
each assuming their different roles. The network recognizes the strengths and weaknesses of each of the parties
in the network. Level 3 networks have staff in their own offices rather than in the offices of their members.

The staff is important for other reasons. It is the repository of the history, policies, and rules of the network.
With the executive committee, the staff strives for a consistent approach to issues. The chief operating officer
and the chair enforce the rules.

Level 2 networks will have a very professional administrator. These networks rely on volunteer expertise by
the marketing department at member firms. Technology is likely to be 100-percent outsourced. This is in
contrast to a Level 3 network where the staff will have advanced degrees in management, marketing, training,
technology, and human resources.

Groups in a Network – Practice, Industry, and Regional Groups

Networks are composed of internal groups that may be informal or formal. As formal groups emerge in a
network, the structure is defined and clarified. The formal groups reflect the evolving structure of the network.
The purpose of groups is analyzed below.

Groups – Theory and Literature:

229 See UNITED STATES LAW FIRM GROUP, www.uslfg.com/executivedirector.cfm.
230 See Phillip Smith, Networks Survey: Global Risk, ACCOUNTANCY AGE (Nov. 2008)
www.accountancyage.com/print_artice/aa/feature/1748284/networks-survey-global-risk.
231 MERITAS, www.meritas.org.
232 Contact Us, LEX MUNDI, www.lexmundi.com/lexmundi/Contact_Information.asp?SnID=2082162550.

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