Page 64 - The Handbook - Legal and Accounting Networks 81
P. 64
Law and Accounting Networks and Associations
so that everyone gets something, but what may be lost is the strategic vision that brought the members together
in the first place.
Networks exist because of the self-interest of each member, which can be developed by the network. Defining
those interests in writing is what separates Level 2 and 3 networks. Most decisions will be made according to
the bylaws or by established written policies in a Level 3 network. Members may not always agree on the
objective, but the established policies provide the framework for discussion. Enforcement of these policies
against friends is difficult. In Level 2 networks this is not going to happen. For a Level 3 network, it is
imperative that enforcement of the rules takes place.
It must be recognized that the first board will be very different from the board at 10 years. The new board is a
group of strangers. The 10-year board members have known each other for a decade. If there is an executive
committee, the members may be working with each other on almost a daily basis. This creates issues as to the
allocation of responsibilities. On one hand it makes the decision easier, but on the other more difficult if there
are strong disagreements
The personality issues are very important variables as the network matures. A network can have the correct
bylaw provisions, but it is ultimately dependent on people to make it work. Small groups pressing their own
objectives may exacerbate these issues. The management and executive committee must be able to address
these issues before they become problems. Bylaws and written policies make this possible.
The network will expand to new states or countries. While the network may originally have had policies as to
the type of members that can join, the leadership can change the policies. This might be done to give
jurisdiction to a member who has a branch office or to temporally list a member in a location where they have
offices.278 There is pressure to make these decisions that may benefit a few members. This will happen in both
Level 2 and 3 networks.
There will be many forces that seek to exert their own interests. At every step of development the management
and directors must be careful of compromises that may affect the long-term viability of the network. Along the
way, members may not like the decisions that are made. However, the directors and staff must be able to
explain the underlying rationale for these decisions.
In the case of financial policies, such as the payment of dues, there can be no exception in networks. Member
should all pay the same dues based upon established policies. Once an exception is made, it undermines the
credibility of the leadership. This is even the case of those who benefit from the exception. The fact that an
exception was made diminishes its value.
As the organizations become more important, the existing member leadership will want to maintain its position.
As the network matures, more and more members are going to want to participate. Increased participation can
be accomplished by appointments to new positions such as committee or practice chair. It can also be done by
appointing others at the leader’s firm to positions on committees or the board or by bringing in new participants.
If the same firms dominate the network, openness and enthusiasm are lost and the organization cannot develop.
Participation needs to be open to all members equally, regardless of size, country, and/or practice.
This means that new structures need to be created to accommodate those who want to be active. These new
structures must be established under the umbrella of the network itself. These new structures need management.
If the new groups or committees have too much discretion, there is a risk that they will go off on their own.
278 Lawyer Search, LEX MUNDI,
www.lexmundi.com/assnfe/SearchLawyers.asp?MODE=FINDRESULTSEX&SNID=&clSearchLawyers_SearchMode=1&csSearchLawyers_Jurisdic
tion=181%2F240&clSearchLawyers_PracticeArea=-1&SUBMIT=Submit WSG; see also Member Locations, WORLD SERVICES GROUP,
www.worldservicesgroup.com/members-locations.asp?action=jurisdiction&loc=California.
52
so that everyone gets something, but what may be lost is the strategic vision that brought the members together
in the first place.
Networks exist because of the self-interest of each member, which can be developed by the network. Defining
those interests in writing is what separates Level 2 and 3 networks. Most decisions will be made according to
the bylaws or by established written policies in a Level 3 network. Members may not always agree on the
objective, but the established policies provide the framework for discussion. Enforcement of these policies
against friends is difficult. In Level 2 networks this is not going to happen. For a Level 3 network, it is
imperative that enforcement of the rules takes place.
It must be recognized that the first board will be very different from the board at 10 years. The new board is a
group of strangers. The 10-year board members have known each other for a decade. If there is an executive
committee, the members may be working with each other on almost a daily basis. This creates issues as to the
allocation of responsibilities. On one hand it makes the decision easier, but on the other more difficult if there
are strong disagreements
The personality issues are very important variables as the network matures. A network can have the correct
bylaw provisions, but it is ultimately dependent on people to make it work. Small groups pressing their own
objectives may exacerbate these issues. The management and executive committee must be able to address
these issues before they become problems. Bylaws and written policies make this possible.
The network will expand to new states or countries. While the network may originally have had policies as to
the type of members that can join, the leadership can change the policies. This might be done to give
jurisdiction to a member who has a branch office or to temporally list a member in a location where they have
offices.278 There is pressure to make these decisions that may benefit a few members. This will happen in both
Level 2 and 3 networks.
There will be many forces that seek to exert their own interests. At every step of development the management
and directors must be careful of compromises that may affect the long-term viability of the network. Along the
way, members may not like the decisions that are made. However, the directors and staff must be able to
explain the underlying rationale for these decisions.
In the case of financial policies, such as the payment of dues, there can be no exception in networks. Member
should all pay the same dues based upon established policies. Once an exception is made, it undermines the
credibility of the leadership. This is even the case of those who benefit from the exception. The fact that an
exception was made diminishes its value.
As the organizations become more important, the existing member leadership will want to maintain its position.
As the network matures, more and more members are going to want to participate. Increased participation can
be accomplished by appointments to new positions such as committee or practice chair. It can also be done by
appointing others at the leader’s firm to positions on committees or the board or by bringing in new participants.
If the same firms dominate the network, openness and enthusiasm are lost and the organization cannot develop.
Participation needs to be open to all members equally, regardless of size, country, and/or practice.
This means that new structures need to be created to accommodate those who want to be active. These new
structures must be established under the umbrella of the network itself. These new structures need management.
If the new groups or committees have too much discretion, there is a risk that they will go off on their own.
278 Lawyer Search, LEX MUNDI,
www.lexmundi.com/assnfe/SearchLawyers.asp?MODE=FINDRESULTSEX&SNID=&clSearchLawyers_SearchMode=1&csSearchLawyers_Jurisdic
tion=181%2F240&clSearchLawyers_PracticeArea=-1&SUBMIT=Submit WSG; see also Member Locations, WORLD SERVICES GROUP,
www.worldservicesgroup.com/members-locations.asp?action=jurisdiction&loc=California.
52
