Page 90 - MASTER COPY LEADERS BOOK 9editedJKK (24)_Neat
P. 90
Leaders in Legal Business
The Need for Global Networks 9 Global
Economy
Global
Resources Need for Global
Global Marketing
Networks
Global
Procurement
From a theoretical point of view, networks are an effective model and a powerful system for enhancing services.
The members and the networks are different parts of the resource equation for providing members seamless, high-
quality, local, and global services. There is no real limit of what can be accomplished through a network when
the network and its membership work with each other. This collaboration is at the heart of the network
Internationalization was also slow to start because the legal profession was much more restrictive than
accounting in allowing foreign firms to enter and practice in their countries. There were rules requiring that the
names of the partners be present in the name of the firm. As a firm expanded, it began to use its name when
possible in as many countries as commercially feasible. The purpose was the same as in accounting: establish a
brand and attract clients to it. The downsides were that the legal profession looked down at the Baker & McKenzie
model and its own competition pejoratively characterized Baker & McKenzie as a franchise.10 The forces of the
international community converged in the late 1980s. American and English firms began establishing branches in
the primary commercial centers. This niche competition in local markets had the immediate effect of forcing local
firms to evaluate alternative ways of providing services to their international clients.
Law firms, like the accounting firms, were looking for niche markets. The difference was that U.S. law
firms focused internationally on a niche market. In the 1970s, niche markets focused on serving financial services
and then branched out to clients in manufacturing.11 The result today is that more than 100 United States law firms
have offices outside of the country.12 However, the reality is that internationalization is very limited among U.S.
law firms — among the largest 100, the average has five overseas offices.13
The New York and London firms that opened offices at first generally did not practice local law, so the
regional firms were protected and received referrals on local matters. This also changed as the number of branches
increased and the firms indigenized. With the advent of legal advertising, U.S. firms gained the opportunity to
market their services in the U.S. and, as a result, indirectly began to market themselves in each of the countries
where they had offices. Local bars to which attorneys received their licenses had severe restriction on their own
firms that were not lifted until very much later.14 For example, local partners and associates were required to be
9 Sheth, Jagdish, Strategic Importance of Information Technology, Advances in Telecommunications Management, Volume 4, 3-16, 1994. Gilroy, B.M.
(1993), Networking in Multinational Enterprises: The Importance of Strategic Alliances, Columbia, 1993. Gulati, R./Nohria, N./Zaheer, A. (2000):
Strategic Networks, in: Strategic Management Journal, Vol. 21, 2000, p. 203-215.
10 A review of major legal publications show virtually no articles or discussion of networks or developments in networks. Unlike in accounting, there is no
reporting of new members of networks, loss of members, marketing activities, etc. When a large firm loses a single partner, this is reported.
11 Carol Silver, Globalization and the U.S. Legal Market in Legal Services – Shifting Identities, 31 L & POLY INT’L BUS. 1127, 1129 (2000).
12 THE AM LAW 100 2011, AMERICAN LAWYER MAGAZINE, http://www.americanlawyer.com/id=1202550268433/The-Am-Law-100-
2011?slreturn=20150403145553 (last visited May 3, 2015).
13 HARVARD PROGRAM ON THE LEGAL PROFESSION, http://www.law.harvard.edu/programs/plp/pages/statistics.php#sotflf (last visited May 3, 2015).
14 Bates v. Arizona, 433 U.S. 350 (1977)
83
The Need for Global Networks 9 Global
Economy
Global
Resources Need for Global
Global Marketing
Networks
Global
Procurement
From a theoretical point of view, networks are an effective model and a powerful system for enhancing services.
The members and the networks are different parts of the resource equation for providing members seamless, high-
quality, local, and global services. There is no real limit of what can be accomplished through a network when
the network and its membership work with each other. This collaboration is at the heart of the network
Internationalization was also slow to start because the legal profession was much more restrictive than
accounting in allowing foreign firms to enter and practice in their countries. There were rules requiring that the
names of the partners be present in the name of the firm. As a firm expanded, it began to use its name when
possible in as many countries as commercially feasible. The purpose was the same as in accounting: establish a
brand and attract clients to it. The downsides were that the legal profession looked down at the Baker & McKenzie
model and its own competition pejoratively characterized Baker & McKenzie as a franchise.10 The forces of the
international community converged in the late 1980s. American and English firms began establishing branches in
the primary commercial centers. This niche competition in local markets had the immediate effect of forcing local
firms to evaluate alternative ways of providing services to their international clients.
Law firms, like the accounting firms, were looking for niche markets. The difference was that U.S. law
firms focused internationally on a niche market. In the 1970s, niche markets focused on serving financial services
and then branched out to clients in manufacturing.11 The result today is that more than 100 United States law firms
have offices outside of the country.12 However, the reality is that internationalization is very limited among U.S.
law firms — among the largest 100, the average has five overseas offices.13
The New York and London firms that opened offices at first generally did not practice local law, so the
regional firms were protected and received referrals on local matters. This also changed as the number of branches
increased and the firms indigenized. With the advent of legal advertising, U.S. firms gained the opportunity to
market their services in the U.S. and, as a result, indirectly began to market themselves in each of the countries
where they had offices. Local bars to which attorneys received their licenses had severe restriction on their own
firms that were not lifted until very much later.14 For example, local partners and associates were required to be
9 Sheth, Jagdish, Strategic Importance of Information Technology, Advances in Telecommunications Management, Volume 4, 3-16, 1994. Gilroy, B.M.
(1993), Networking in Multinational Enterprises: The Importance of Strategic Alliances, Columbia, 1993. Gulati, R./Nohria, N./Zaheer, A. (2000):
Strategic Networks, in: Strategic Management Journal, Vol. 21, 2000, p. 203-215.
10 A review of major legal publications show virtually no articles or discussion of networks or developments in networks. Unlike in accounting, there is no
reporting of new members of networks, loss of members, marketing activities, etc. When a large firm loses a single partner, this is reported.
11 Carol Silver, Globalization and the U.S. Legal Market in Legal Services – Shifting Identities, 31 L & POLY INT’L BUS. 1127, 1129 (2000).
12 THE AM LAW 100 2011, AMERICAN LAWYER MAGAZINE, http://www.americanlawyer.com/id=1202550268433/The-Am-Law-100-
2011?slreturn=20150403145553 (last visited May 3, 2015).
13 HARVARD PROGRAM ON THE LEGAL PROFESSION, http://www.law.harvard.edu/programs/plp/pages/statistics.php#sotflf (last visited May 3, 2015).
14 Bates v. Arizona, 433 U.S. 350 (1977)
83
