Page 59 - The Handbook - Legal and Accounting Networks 81
P. 59
Law and Accounting Networks and Associations
They may exchange professionals as secondments. At industry trade shows they may have a common booth.
Type 4 referrals are the result of common interest and trust coupled with a financial interest.
Types 3 and 4 referrals require that the members take the initiative.251 The network only creates the framework
for members to find common interests with other members. Members may have the same clients, expertise, or
industry specialization; how these are combined is for the members to decide. The network does not get
involved.
There are a number of issues involved in network referrals. The first is that every market is different. There
are some countries where all referrals are in-bound. However, in these countries, using network membership
can be useful in obtaining the in-bound work by being able to differentiate one firm from another. This can be
done by being able to offer to their clients the expertise found at other member firms. For example, in a
government RFP, the firms can put together a consortium of expertise using the network’s technology. In this
way, the firm that is usually an in-bound referrer becomes an outbound one. The receiving firms get a referral
not because of their location, but because of their expertise.
Networks are non-exclusive, so there is no requirement that firms refer business to one another. In the legal
profession in particular, attorneys have many other relationships. These temper the number of referrals. The
challenge for networks is how to build relationships in which members are inclined to refer cases.
Referrals are also dependent on the awareness of membership in the network. If the members are not
comfortable with one another, they will not refer business. The objective of a network must be to increase the
level of awareness and confidence. The engagement of the maximum number of professionals in the network
is important. This subject is covered in Chapter 5.
Monitoring referrals is an issue in most legal networks because this is the reason firms join. Networks are not
particularly strong when it comes to defining processes and financial results, according to Freidheim.252 This
does not, however, keep members from asking the network to create these processes.253
Members usually monitor Type 1 referrals. The systems vary from internal monitoring at each firm to
organized network monitoring of referrals. Meritas, a legal network, documents in-bound and out-bound
referrals and contacts the clients to assess satisfaction.254 Accounting firms monitor referrals because they are
routinely part of the team. Several accounting networks have a referral fee as a source of income for the
network.255 These processes are different because there are financial benefits at stake.
Many networks have “success stories”256 on their websites. These would be Types 2, 3, and 4 referrals. Their
success is the subject of hearsay but may not be quantifiable until there is an actual success. The success stories
that reflect Types 3 and 4 referrals are educative because they demonstrate to other members how they can
also benefit from their membership.
251 See ENSafrica Recommends Shoosmiths to Advise Truworths International on Acquisition, WORLD SERVICES GROUP,
www.worldservicesgroup.com/success_stories.asp (the Brazilian and German members formed a collaboration to attract clients from Brazil investing
in Germany and Germans investing in Brazil).
252 See supra Chapter 4, Organizing a Traditional Law Firm Network – Exhibit 3.
253 For example, TerraLex asks firms to commit to reporting referrals. See Membership Commitments, TERRALEX,
www.terralex.org/publication/pf1a07a3729/terralex-membership-commitments. Meritas has a rigorous system of reporting in-bound and out-bound
referrals as well as verification by Meritas itself. It also measures satisfaction by surveys. Each firm has a ranking. See Firm Evaluation, MERITAS,
http://www.meritas.org/FirmEvaluation.aspx.
254 Compare Firms, MERITAS, www.meritas.org/firm_compare_firm_link.asp?link=42&fid=67682.
255 See supra Chapter 3, History of Professionals Services Networks – Why Do They Matter?
256 MERITAS, http://www.meritas.org/main.aspx?link=32; Success Stories, WORLD SERVICES GROUP,
www.worldservicesgroup.com/success_stories.asp.
47
They may exchange professionals as secondments. At industry trade shows they may have a common booth.
Type 4 referrals are the result of common interest and trust coupled with a financial interest.
Types 3 and 4 referrals require that the members take the initiative.251 The network only creates the framework
for members to find common interests with other members. Members may have the same clients, expertise, or
industry specialization; how these are combined is for the members to decide. The network does not get
involved.
There are a number of issues involved in network referrals. The first is that every market is different. There
are some countries where all referrals are in-bound. However, in these countries, using network membership
can be useful in obtaining the in-bound work by being able to differentiate one firm from another. This can be
done by being able to offer to their clients the expertise found at other member firms. For example, in a
government RFP, the firms can put together a consortium of expertise using the network’s technology. In this
way, the firm that is usually an in-bound referrer becomes an outbound one. The receiving firms get a referral
not because of their location, but because of their expertise.
Networks are non-exclusive, so there is no requirement that firms refer business to one another. In the legal
profession in particular, attorneys have many other relationships. These temper the number of referrals. The
challenge for networks is how to build relationships in which members are inclined to refer cases.
Referrals are also dependent on the awareness of membership in the network. If the members are not
comfortable with one another, they will not refer business. The objective of a network must be to increase the
level of awareness and confidence. The engagement of the maximum number of professionals in the network
is important. This subject is covered in Chapter 5.
Monitoring referrals is an issue in most legal networks because this is the reason firms join. Networks are not
particularly strong when it comes to defining processes and financial results, according to Freidheim.252 This
does not, however, keep members from asking the network to create these processes.253
Members usually monitor Type 1 referrals. The systems vary from internal monitoring at each firm to
organized network monitoring of referrals. Meritas, a legal network, documents in-bound and out-bound
referrals and contacts the clients to assess satisfaction.254 Accounting firms monitor referrals because they are
routinely part of the team. Several accounting networks have a referral fee as a source of income for the
network.255 These processes are different because there are financial benefits at stake.
Many networks have “success stories”256 on their websites. These would be Types 2, 3, and 4 referrals. Their
success is the subject of hearsay but may not be quantifiable until there is an actual success. The success stories
that reflect Types 3 and 4 referrals are educative because they demonstrate to other members how they can
also benefit from their membership.
251 See ENSafrica Recommends Shoosmiths to Advise Truworths International on Acquisition, WORLD SERVICES GROUP,
www.worldservicesgroup.com/success_stories.asp (the Brazilian and German members formed a collaboration to attract clients from Brazil investing
in Germany and Germans investing in Brazil).
252 See supra Chapter 4, Organizing a Traditional Law Firm Network – Exhibit 3.
253 For example, TerraLex asks firms to commit to reporting referrals. See Membership Commitments, TERRALEX,
www.terralex.org/publication/pf1a07a3729/terralex-membership-commitments. Meritas has a rigorous system of reporting in-bound and out-bound
referrals as well as verification by Meritas itself. It also measures satisfaction by surveys. Each firm has a ranking. See Firm Evaluation, MERITAS,
http://www.meritas.org/FirmEvaluation.aspx.
254 Compare Firms, MERITAS, www.meritas.org/firm_compare_firm_link.asp?link=42&fid=67682.
255 See supra Chapter 3, History of Professionals Services Networks – Why Do They Matter?
256 MERITAS, http://www.meritas.org/main.aspx?link=32; Success Stories, WORLD SERVICES GROUP,
www.worldservicesgroup.com/success_stories.asp.
47
