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second-tier, or even third-tier. It is these factors and others that have led to a number of the leading networks
forming AILFN.
Throughout the book the accounting profession will be referred to as a reference point. They have been elevated
to a higher position as a comparative model for the legal profession. Accounting networks and associations are
already the future of the accounting profession. There are no large accounting firms that are not members of a
network or an association of independent firms. This is very different from the legal profession, where more
than 100 of the largest law firms do not belong to any network or association. As globalization continues, this
may change through consolidation and by outside forces that will require membership. These factors and forces
will be analyzed.
The clash and redefinition of models has produced issues in the legal profession beyond cosmetics. It affects
how clients perceive those from whom they are purchasing services. This is not the case in accounting and
consulting, where the Big 4 are networks of independent firms. Being a network has not limited their ability
to provide services; on the contrary, two of them have annual of revenues of more than $30 billion. The Big 4
are proud of their network status, referring to themselves as “professional services networks.”6 In the legal
profession, the traditional business model for being recognized has been the law firm. This is reflected in
terminology, rankings, ethics, and the media. In the legal profession networks are still seen as being a less
robust model than a law firm. As demonstrated by the Big 4, providing services through a network is no
different than through an integrated firm. Network status does not detract from being a firm in terms of the
broad definition.
Because each law firm or network is unique, the terminology has led to misunderstandings and
mischaracterizations as to the nature of the various models.7 This has in a sense limited any discussion about
innovation. For this reason the Handbook will analyze the fundamental structural components of the models
for providing legal services, rather than focusing only the descriptions that have characterized firms in the
past.8 In other words, the focus is on the operations and activities of the organizations. The network model
itself has no limitations in terms of how it can be designed and operated, even with some systemic issues that
are cultural and economic. It is simply a model reflecting that the members are independent legally and at the
same time can operate as a cohesive unit, provided they are well managed and have a strategic direction. This
is why networks are the ideal model for global business.
This book discusses in detail how networks function, either in their traditional form or with new models that
are being developed. Underlying the analysis is the fact that global practice requires agility that is not inherent
in large law firms. Agility is not possible with the command and control9 of integrated law firms because
economic and management challenges are effectively too great.
Professional services networks are already the future. The objective of this Handbook is to be a detailed
guide to networks. Law firm networks seeking to go to the next levels in their evolution can use it as map. Of
course, writing about something is very different than doing something. I hope my experience contributes to
the enhancement of networks and benefits all of their clients.
6 Accounting Networks and Associations, WIKIPEDIA, en.wikipedia.org/wiki/Accounting_networks_and_associations.
7 Brian Dalton, About Time Too….World’s Biggest Law Firm Wants To Blow Up The Whole Am Law 100 Rankings, PRACTICE SOURCE,
practicesource.com/about-time-too-worlds-biggest-law-firm-wants-to-blow-up-the-whole-am-law-100-rankings/.
8 The common names are Big Law, Magic Circle, White Glove, Big 4, vereins, mid-tier, and other variations.
9 R. E. Miles & C. C. Snow, Organizations: New Concepts for New Forms, 28 CAL. MGMT. REV. 62, 62-73 (1986).
iv
forming AILFN.
Throughout the book the accounting profession will be referred to as a reference point. They have been elevated
to a higher position as a comparative model for the legal profession. Accounting networks and associations are
already the future of the accounting profession. There are no large accounting firms that are not members of a
network or an association of independent firms. This is very different from the legal profession, where more
than 100 of the largest law firms do not belong to any network or association. As globalization continues, this
may change through consolidation and by outside forces that will require membership. These factors and forces
will be analyzed.
The clash and redefinition of models has produced issues in the legal profession beyond cosmetics. It affects
how clients perceive those from whom they are purchasing services. This is not the case in accounting and
consulting, where the Big 4 are networks of independent firms. Being a network has not limited their ability
to provide services; on the contrary, two of them have annual of revenues of more than $30 billion. The Big 4
are proud of their network status, referring to themselves as “professional services networks.”6 In the legal
profession, the traditional business model for being recognized has been the law firm. This is reflected in
terminology, rankings, ethics, and the media. In the legal profession networks are still seen as being a less
robust model than a law firm. As demonstrated by the Big 4, providing services through a network is no
different than through an integrated firm. Network status does not detract from being a firm in terms of the
broad definition.
Because each law firm or network is unique, the terminology has led to misunderstandings and
mischaracterizations as to the nature of the various models.7 This has in a sense limited any discussion about
innovation. For this reason the Handbook will analyze the fundamental structural components of the models
for providing legal services, rather than focusing only the descriptions that have characterized firms in the
past.8 In other words, the focus is on the operations and activities of the organizations. The network model
itself has no limitations in terms of how it can be designed and operated, even with some systemic issues that
are cultural and economic. It is simply a model reflecting that the members are independent legally and at the
same time can operate as a cohesive unit, provided they are well managed and have a strategic direction. This
is why networks are the ideal model for global business.
This book discusses in detail how networks function, either in their traditional form or with new models that
are being developed. Underlying the analysis is the fact that global practice requires agility that is not inherent
in large law firms. Agility is not possible with the command and control9 of integrated law firms because
economic and management challenges are effectively too great.
Professional services networks are already the future. The objective of this Handbook is to be a detailed
guide to networks. Law firm networks seeking to go to the next levels in their evolution can use it as map. Of
course, writing about something is very different than doing something. I hope my experience contributes to
the enhancement of networks and benefits all of their clients.
6 Accounting Networks and Associations, WIKIPEDIA, en.wikipedia.org/wiki/Accounting_networks_and_associations.
7 Brian Dalton, About Time Too….World’s Biggest Law Firm Wants To Blow Up The Whole Am Law 100 Rankings, PRACTICE SOURCE,
practicesource.com/about-time-too-worlds-biggest-law-firm-wants-to-blow-up-the-whole-am-law-100-rankings/.
8 The common names are Big Law, Magic Circle, White Glove, Big 4, vereins, mid-tier, and other variations.
9 R. E. Miles & C. C. Snow, Organizations: New Concepts for New Forms, 28 CAL. MGMT. REV. 62, 62-73 (1986).
iv
