Page 94 - The Handbook - Legal and Accounting Networks 81
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Law and Accounting Networks and Associations
Law Firm Networks
Law firm networks have much to learn from the accounting networks, which are years ahead on the
evolutionary scale. The environment for legal networks is much different from that of the accounting networks.
Legal networks face three challenges: (1) participation, (2) marketing, and (3) bridging different interests and
cultures.
Joining a network is different for law firms, which are not as leveraged as accounting firms. Participation will
be different depending on the size of the member firms. For example, the ratio of associates to partners in the
United States is 0.64; e.g., a firm with 50 lawyers would have 33 partners and 17 associates. As a firm grows,
the ratio increases so that firms of more than 150 lawyers have a ratio of two associates per partner, or 50
partners and 100 associates.396 What this means is that a medium-size law firm will be better able to
communicate with everyone in their firm about their network membership; with partners paying for dues and
other expenses, more than 50 percent of the firm will be aware of their membership.
In the larger firms of more than 150 attorneys, as the relative number of partners decreases and the number of
associates increases, the difficulty of increasing awareness of the network is compounded. Partners and
associates are not aware of network membership because they are not engaged in network activities.
Participation is delegated to specific individuals. Membership may be only a small line item on the budget.
Successful networks must evaluate the idea of involving more attorneys when creating its programs to increase
awareness and create engagement. Associates will be the partners of the future and should be provided the
opportunity to participate.
Legal networks have not been able to establish a brand or identity. Many lawyers only know that their firm
belongs to “a network” but do not recognize the name when asked. For example, there are 77 networks that
are based in Europe, but outside of the network itself no one is familiar with them. The lack of a brand is
illustrated by the amount of press that legal networks receive when there is an event that should be news
affecting the network. For example, there are large networks like Lex Mundi, World Services Group, and
TerraLex that have very large European memberships. Interestingly, a search at “The Lawyer” magazine397
revealed only 58 references to Lex Mundi over 15 years, even though it has 21,000 attorneys. The same search
for Allen Overy, a small firm in comparison to Lex Mundi, produced more than 8,000 references.
The ultimate success of law firm networks will be determined by how they can position themselves, not against
one another, but from the perspective of clients. Legal networks are in competition today with the largest law
firms, those having 30 or more offices.398 The vereins and Big 4 are beginning to see themselves as branded
networks of independent firms. However, the second-class status of legal networks will not change unless the
leading established networks actually think of themselves as huge organizations with hundreds of offices and
cumulative revenues that by far exceed the largest 10 law firms.399 If they continue to consider themselves
mere extensions of their members, they will not be in a position to compete.
While the agency law for vicarious liability applies to all networks, vicarious liability requires significant
integration of professional services providers to be liable. Accounting firms, even when they go under the same
name, use the same logo, stationary, and manuals, and have to date been able to avoid the liability. Law firm
networks have a lot of room for development under this case law. It is not likely that many law firms would
396 The average ratio of associates to partners in law firms nationwide is 0.64, i.e., 64 associates for every 100 partners. The ratio of all lawyers
(including non-equity partners, associates, staff lawyers, etc.) to equity partners is 1.32, and rises to 2.01 in firms with more than 150 lawyers. New
Survey Provides Snapshot of Law Firm Economics Across the U.S., ALTMAN WEIL,
www.altmanweil.com/index.cfm/fa/r.resource_detail/oid/87716caa-56df-4ad9-b375-
9e9366ba6d60/resource/New_Survey_Provides_Snapshot_of_Law_Firm_Economics_Across_US.cfm.
397 THE LAWYER, www.thelawyer.com .
398 See infra Appendix 2.
399 Id.
82
Law Firm Networks
Law firm networks have much to learn from the accounting networks, which are years ahead on the
evolutionary scale. The environment for legal networks is much different from that of the accounting networks.
Legal networks face three challenges: (1) participation, (2) marketing, and (3) bridging different interests and
cultures.
Joining a network is different for law firms, which are not as leveraged as accounting firms. Participation will
be different depending on the size of the member firms. For example, the ratio of associates to partners in the
United States is 0.64; e.g., a firm with 50 lawyers would have 33 partners and 17 associates. As a firm grows,
the ratio increases so that firms of more than 150 lawyers have a ratio of two associates per partner, or 50
partners and 100 associates.396 What this means is that a medium-size law firm will be better able to
communicate with everyone in their firm about their network membership; with partners paying for dues and
other expenses, more than 50 percent of the firm will be aware of their membership.
In the larger firms of more than 150 attorneys, as the relative number of partners decreases and the number of
associates increases, the difficulty of increasing awareness of the network is compounded. Partners and
associates are not aware of network membership because they are not engaged in network activities.
Participation is delegated to specific individuals. Membership may be only a small line item on the budget.
Successful networks must evaluate the idea of involving more attorneys when creating its programs to increase
awareness and create engagement. Associates will be the partners of the future and should be provided the
opportunity to participate.
Legal networks have not been able to establish a brand or identity. Many lawyers only know that their firm
belongs to “a network” but do not recognize the name when asked. For example, there are 77 networks that
are based in Europe, but outside of the network itself no one is familiar with them. The lack of a brand is
illustrated by the amount of press that legal networks receive when there is an event that should be news
affecting the network. For example, there are large networks like Lex Mundi, World Services Group, and
TerraLex that have very large European memberships. Interestingly, a search at “The Lawyer” magazine397
revealed only 58 references to Lex Mundi over 15 years, even though it has 21,000 attorneys. The same search
for Allen Overy, a small firm in comparison to Lex Mundi, produced more than 8,000 references.
The ultimate success of law firm networks will be determined by how they can position themselves, not against
one another, but from the perspective of clients. Legal networks are in competition today with the largest law
firms, those having 30 or more offices.398 The vereins and Big 4 are beginning to see themselves as branded
networks of independent firms. However, the second-class status of legal networks will not change unless the
leading established networks actually think of themselves as huge organizations with hundreds of offices and
cumulative revenues that by far exceed the largest 10 law firms.399 If they continue to consider themselves
mere extensions of their members, they will not be in a position to compete.
While the agency law for vicarious liability applies to all networks, vicarious liability requires significant
integration of professional services providers to be liable. Accounting firms, even when they go under the same
name, use the same logo, stationary, and manuals, and have to date been able to avoid the liability. Law firm
networks have a lot of room for development under this case law. It is not likely that many law firms would
396 The average ratio of associates to partners in law firms nationwide is 0.64, i.e., 64 associates for every 100 partners. The ratio of all lawyers
(including non-equity partners, associates, staff lawyers, etc.) to equity partners is 1.32, and rises to 2.01 in firms with more than 150 lawyers. New
Survey Provides Snapshot of Law Firm Economics Across the U.S., ALTMAN WEIL,
www.altmanweil.com/index.cfm/fa/r.resource_detail/oid/87716caa-56df-4ad9-b375-
9e9366ba6d60/resource/New_Survey_Provides_Snapshot_of_Law_Firm_Economics_Across_US.cfm.
397 THE LAWYER, www.thelawyer.com .
398 See infra Appendix 2.
399 Id.
82
