Page 95 - The Handbook: Law and Accounting Networks and Associations 2019
P. 95
Law and Accounting Networks and Associations
refer to themselves as “Jones, Smith & Jones TerraLex” or “TerraLex Brazil.” Until this happens, law firms
are not limited in the amount of branding they can undertake to compete with the 20 largest firms.
The issue for law firm networks is that members have different interests. Accounting network members are
more homogenous because their functions of audit, tax, and financial consulting are spread throughout each
member firm. Accounting network members tend to have similar clients. Each law firm is somewhat unique
because it reflects the locations in which it operates. Because priorities are different, it can be difficult to get a
consensus.
Globalization is not just about how clients of firms do business but also the uniformity in conducting business.
On one side is global competition, which makes life more difficult for the client. On the other side are global
opportunities. The clients need their advisors’ assistance in guiding them in this direction. Network
membership is the best vehicle for this. Firms do not have to merge to provide this assistance, and different
cultures and business environments can be accommodated.
It is also very important to note that the success of a law firm network is not always associated with becoming
increasingly complex in its structure and accelerating activities. Meeting the expectations of the members is
also the objective. However, this does not mean that any network, aside from Level 1 clubs, should be
complacent. Legal networks can develop and mature if more information is available for their members. Each
network must position itself with its members ahead of members’ needs.
Predictions:
1. Law firm networks will become mainstream models for global legal services. The models will be
adopted by the large law firms in order to grow and manage their global businesses. This convergence
will affect how the traditional leading networks are perceived.
2. Law firms will increasingly brand themselves as members of a network in the same way accounting
firms currently do.
3. Networks will become increasingly sophisticated in the use of technology. The costs of dues will
increase dramatically for networks to compete with the large firm networks (in Prediction 1 above)
and with the large first-mover networks.
4. Legal networks will begin to produce products that can be used by members for serving clients.
Manuals and internal rules will dictate internal network procedures.
5. Legal networks will see that their competition and competition for the members are not other legal
networks but the largest firms, which can concentrate resources on the external development and
maintenance of clients.
6. Technology will make access to law firm network members completely transparent. This
transparency will also accelerate the growth and expansion of existing networks. With a few exception
countries, law firm networks will cover virtually every country.
Multidisciplinary Networks
Multidisciplinary networks combine the potential of the legal and accounting groups to assist in providing
clients services. In today’s world of convergence of services, they can effectively establish the highest
professional standards. This is clearly illustrated by Cyrus Freidheim.
83
refer to themselves as “Jones, Smith & Jones TerraLex” or “TerraLex Brazil.” Until this happens, law firms
are not limited in the amount of branding they can undertake to compete with the 20 largest firms.
The issue for law firm networks is that members have different interests. Accounting network members are
more homogenous because their functions of audit, tax, and financial consulting are spread throughout each
member firm. Accounting network members tend to have similar clients. Each law firm is somewhat unique
because it reflects the locations in which it operates. Because priorities are different, it can be difficult to get a
consensus.
Globalization is not just about how clients of firms do business but also the uniformity in conducting business.
On one side is global competition, which makes life more difficult for the client. On the other side are global
opportunities. The clients need their advisors’ assistance in guiding them in this direction. Network
membership is the best vehicle for this. Firms do not have to merge to provide this assistance, and different
cultures and business environments can be accommodated.
It is also very important to note that the success of a law firm network is not always associated with becoming
increasingly complex in its structure and accelerating activities. Meeting the expectations of the members is
also the objective. However, this does not mean that any network, aside from Level 1 clubs, should be
complacent. Legal networks can develop and mature if more information is available for their members. Each
network must position itself with its members ahead of members’ needs.
Predictions:
1. Law firm networks will become mainstream models for global legal services. The models will be
adopted by the large law firms in order to grow and manage their global businesses. This convergence
will affect how the traditional leading networks are perceived.
2. Law firms will increasingly brand themselves as members of a network in the same way accounting
firms currently do.
3. Networks will become increasingly sophisticated in the use of technology. The costs of dues will
increase dramatically for networks to compete with the large firm networks (in Prediction 1 above)
and with the large first-mover networks.
4. Legal networks will begin to produce products that can be used by members for serving clients.
Manuals and internal rules will dictate internal network procedures.
5. Legal networks will see that their competition and competition for the members are not other legal
networks but the largest firms, which can concentrate resources on the external development and
maintenance of clients.
6. Technology will make access to law firm network members completely transparent. This
transparency will also accelerate the growth and expansion of existing networks. With a few exception
countries, law firm networks will cover virtually every country.
Multidisciplinary Networks
Multidisciplinary networks combine the potential of the legal and accounting groups to assist in providing
clients services. In today’s world of convergence of services, they can effectively establish the highest
professional standards. This is clearly illustrated by Cyrus Freidheim.
83
