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Law and Accounting Networks and Associations
Chapter 8 – Networks and the Technology Revolution
In the 1990s, there was a general awareness in business that technology was about to change the world.363 It
was going to change how people work and live. Few could have guessed at the degrees of change that are now
reflected in computers, telecommunications, and interpersonal relationships. Networks are now being affected.
The changes in the networking environment should be the most profound because, by definition, its operation
is based upon the exchange of information.364 The information is contained in discrete location, i.e., at the
member firms and with the members’ professionals. Information technology can be seen as the liberator of this
information. It creates the ability of professionals in different locations to gain knowledge and transparently
interact with each other based upon information and interests.
A successful network is one in which members can easily collaborate to achieve common objectives.
Collaboration is a function of access to information about the network and its members from superiors to others
in organization. In the command and control organizations,365 information is filtered and disseminated on a
need-to-know basis. In a network of independent members, all members must receive information. In order for
members to collaborate, the information must be widely shared with individual professionals.
Until recently the primary role of technology was support of the organization. The technology was used for
invoicing, product design, payroll, word processing, and communications. In the last 20 years, the role of
technology has shifted from the support role to a strategic function. The technology now is part of the strategy
for the delivery of goods and services that provide a competitive advantage. This reformation of technology
was the result of four factors: intense competition, globalization, organizational changes, and the reduction in
the performance-price ratio.366
As competition for clients increases, professionals must be more cost-effective in providing services.
Technology offers new alternatives. For example, professionals can now easily collaborate online with their
clients, sharing documents and ideas. Technology such as Google can be used to provide information about
their firms directly to potential clients without going through directories like Martindale Hubbell.367 Using
technology frees up the budget for other purposes.
Globalization has been discussed extensively. It now impacts every business and individual. A legal or
accounting issue can have profound effects on the economy in every country. Each professional services
provider must have a means for recognizing the global nature of its clients and be able to respond to and meet
their needs. Technology is the vehicle to globalization.
Institutions and organizations such as the AICPA or ABA have undergone profound changes. The accounting
and legal professions, which at one time prohibited all marketing activities, now embrace marketing. Lawyers
not only advertise but also now have blogs, webinars, video, Twitter, LinkedIn, and Facebook, among others.
The accounting profession has seen the same changes. Technology has erased some of the distance between
363 “Emerging information technology (IT) has played a major role in network organizational development. Indeed a number of authors have written of
the IT-enabled network organization.” Van Alstyne, supra note 9, citing W. H. DAVIDOW & M. S. MALONE, THE VIRTUAL CORPORATION 294 (1992);
see also P. DRUCKER, THE NEW SOCIETY OF ORGANIZATIONS 95-104 (1992); see also V. P. George, Technological Intensity and Interfirm Cooperation:
An Industry Level Study of Alliance Networks of U.S. Public Firms, MIT SLOAN SCHOOL (1985-1990); see also T. W. Malone & J. F. Rockart,
Computers, Networks and the Corporation, 265 SCIENTIFIC AMERICAN 128-136 (1991); see also T. PETERS, LIBERATION MANAGEMENT: NECESSARY
DISORGANIZATION FOR THE NANOSECOND NINETIES 834 (1992);.see also W. W. Powell, Neither Market Nor Hierarchy: Network Forms of
Organization, 12 RES. IN ORG. BEHAVIOR 295-336 (1990); see also C. C. Snow et. al, Managing 21st Century Network Organizations, 20 ORG.
DYNAMICS 5, 5-20 (1992).
364 See supra Chapter 4, Organizing a Traditional Law Firm Network.
365 Command and Control, ANSWERS.COM, www.answers.com/topic/command-and-control.
366 Jagdish Sheth, Strategic Importance of Information Technology, 4 ADVANCES IN TELECOMM. MGMT 3, 3-16 (1994).
367 Martindale Hubbell has embraced this model by creating Martindale Connect, which is an online networking organization. MARTINDALE,
www.martindale.com.
73
Chapter 8 – Networks and the Technology Revolution
In the 1990s, there was a general awareness in business that technology was about to change the world.363 It
was going to change how people work and live. Few could have guessed at the degrees of change that are now
reflected in computers, telecommunications, and interpersonal relationships. Networks are now being affected.
The changes in the networking environment should be the most profound because, by definition, its operation
is based upon the exchange of information.364 The information is contained in discrete location, i.e., at the
member firms and with the members’ professionals. Information technology can be seen as the liberator of this
information. It creates the ability of professionals in different locations to gain knowledge and transparently
interact with each other based upon information and interests.
A successful network is one in which members can easily collaborate to achieve common objectives.
Collaboration is a function of access to information about the network and its members from superiors to others
in organization. In the command and control organizations,365 information is filtered and disseminated on a
need-to-know basis. In a network of independent members, all members must receive information. In order for
members to collaborate, the information must be widely shared with individual professionals.
Until recently the primary role of technology was support of the organization. The technology was used for
invoicing, product design, payroll, word processing, and communications. In the last 20 years, the role of
technology has shifted from the support role to a strategic function. The technology now is part of the strategy
for the delivery of goods and services that provide a competitive advantage. This reformation of technology
was the result of four factors: intense competition, globalization, organizational changes, and the reduction in
the performance-price ratio.366
As competition for clients increases, professionals must be more cost-effective in providing services.
Technology offers new alternatives. For example, professionals can now easily collaborate online with their
clients, sharing documents and ideas. Technology such as Google can be used to provide information about
their firms directly to potential clients without going through directories like Martindale Hubbell.367 Using
technology frees up the budget for other purposes.
Globalization has been discussed extensively. It now impacts every business and individual. A legal or
accounting issue can have profound effects on the economy in every country. Each professional services
provider must have a means for recognizing the global nature of its clients and be able to respond to and meet
their needs. Technology is the vehicle to globalization.
Institutions and organizations such as the AICPA or ABA have undergone profound changes. The accounting
and legal professions, which at one time prohibited all marketing activities, now embrace marketing. Lawyers
not only advertise but also now have blogs, webinars, video, Twitter, LinkedIn, and Facebook, among others.
The accounting profession has seen the same changes. Technology has erased some of the distance between
363 “Emerging information technology (IT) has played a major role in network organizational development. Indeed a number of authors have written of
the IT-enabled network organization.” Van Alstyne, supra note 9, citing W. H. DAVIDOW & M. S. MALONE, THE VIRTUAL CORPORATION 294 (1992);
see also P. DRUCKER, THE NEW SOCIETY OF ORGANIZATIONS 95-104 (1992); see also V. P. George, Technological Intensity and Interfirm Cooperation:
An Industry Level Study of Alliance Networks of U.S. Public Firms, MIT SLOAN SCHOOL (1985-1990); see also T. W. Malone & J. F. Rockart,
Computers, Networks and the Corporation, 265 SCIENTIFIC AMERICAN 128-136 (1991); see also T. PETERS, LIBERATION MANAGEMENT: NECESSARY
DISORGANIZATION FOR THE NANOSECOND NINETIES 834 (1992);.see also W. W. Powell, Neither Market Nor Hierarchy: Network Forms of
Organization, 12 RES. IN ORG. BEHAVIOR 295-336 (1990); see also C. C. Snow et. al, Managing 21st Century Network Organizations, 20 ORG.
DYNAMICS 5, 5-20 (1992).
364 See supra Chapter 4, Organizing a Traditional Law Firm Network.
365 Command and Control, ANSWERS.COM, www.answers.com/topic/command-and-control.
366 Jagdish Sheth, Strategic Importance of Information Technology, 4 ADVANCES IN TELECOMM. MGMT 3, 3-16 (1994).
367 Martindale Hubbell has embraced this model by creating Martindale Connect, which is an online networking organization. MARTINDALE,
www.martindale.com.
73
