Page 6 - The Handbook - Law Firm Networks
P. 6
2017 Introduction
Stephen J. McGarry1
The first edition of this book was published in 2011 as Professional Services Networks – The Future of
the Accounting and Legal Professions. It was completely updated and published in 2015 under the title:
Law Firm Networks - The Future of the Legal Profession. The Handbook – Law Firm Networks has
expanded on the concepts, the models and the practicalities of network operations. The Handbook’s
objective is to provide recipes for law firm network success in the ever changing legal market.
While the new edition covers many of the same subjects, networks themselves have undergone a
tremendous number of internal and external changes. In particular, the formation of the Association of
International Law Firm Networks (AILFN)2 illustrates just how far we have come in such a short time.
AILFN represents the common interest of all networks. It has increased the status of networks through its
ability to directly market the network concept to more than 20,000 professionals. In the coming years, the
network evolution will become a revolution as networks are recognized as the only model for global legal
representation.
The rapid consolidation of the different models in the legal profession began only eight years ago with the
recession. There has been a realization that the traditional integrated law firm cannot achieve global status
or economically provide all of the services that clients require. A number of the largest law firms have
sought to reconstitute themselves with a more flexible structure that recognizes cultural and economic
differences in each market. Like the Big 4 accounting firms, they have adopted various network-type
structures in which the local firms are independent entities. Since this umbrella entity is registered in
Switzerland as an association, they commonly go by the Swiss name: verein. Recent changes in the
market reflect that these composite models are showing signs of age.3
The traditional law firm networks have also changed; many are more than 20 years old. Though as entities
they represent by far the largest segment of the legal profession, their relevance has been questioned.4
1 Stephen McGarry, B.A., M.A., J.D., and LL.M. (Taxation), founded World Services Group (WSG), a multidisciplinary
network, in 2002. As president he grew it to 150 firms that have 21,000 professionals in 600 offices in more than 100 countries.
In 1989 McGarry founded Lex Mundi, the world’s largest law firm network. As president he grew it to 160 law firms that today
have 21,000 attorneys in 600 offices in 100-plus countries. These two networks represent 2 percent of all the lawyers on earth
whose members bill their clients an estimated $20 billion dollars annually. In 1995 he founded HG.org, one of the first legal
websites. Today it is among the world’s largest sites with more than 10 million pages and 1.3 million unique users each month
who download almost 2 million pages. In 2015 McGarry initiated with the Association of International Law Firm Networks, or
AILFN, an association of the leading law firm networks whose members will have more than 300,000 lawyers in 5,000 offices,
billing clients $120 billion dollars annually.
McGarry is admitted by exam to the bars of Minnesota, Texas, and Louisiana. In 2002 American Lawyer Media (ALM)
published McGarry’s treatise, Multidisciplinary Practices and Partnerships. McGarry has authored numerous articles on
associations and international business transactions. His most recent publication, Leaders in Legal Business (2015), has been
downloaded more than 15,000 times. Observations and opinions are those of the author and not of any organization or any member of an
organization.
2 ASSOCIATION OF INTERNATIONAL LAW FIRM NETWORKS, http://www.ailfn.com (last visited Jan. 27, 2016). AILFN is a new trade association
owned by law firm networks that represents their common interests. AILFN has four purposes: (1) enhance the position and recognition of all
networks in the legal market; (2) establish common principles to maintain standards of quality; (3) provide a forum for networks to exchange
information; and (4) negotiate agreements with vendors that can increase the efficiency and effectiveness of networks and their members.
AILFN’s members will have more than 300,000 lawyers in 5,000 offices, billing clients $120 billion dollars annually.
3 Chris Johnson, Global Law Firms and Vereins: The End of the Affair? The Am Law Daily, March 22, 2017,
http://www.americanlawyer.com/id=1202781867597/Global-Law-Firms-and-Vereins-The-End-of-the-Affair?slreturn=20170229143243
,discusses the rise of the CLG as an alternative form of network that reduce risk of vicarious liability; Georgina Stanley, King & Wood Mallesons
Europe in Crisis and the British Legal Awards – the Best of Legal Week Last Week, LEGAL WEEK, Nov. 28, 2016.
4 Norman Clark, Does Your Network Deliver External Value? WORLDVIEW BLOG (April 27, 2014), www.walkerclark.com/worldview-
blog/previous-worldview-posts/123-does-your-network-deliver-external-value.html; Michael Hatchwell, Legal Networks Should Not Be
vi
Stephen J. McGarry1
The first edition of this book was published in 2011 as Professional Services Networks – The Future of
the Accounting and Legal Professions. It was completely updated and published in 2015 under the title:
Law Firm Networks - The Future of the Legal Profession. The Handbook – Law Firm Networks has
expanded on the concepts, the models and the practicalities of network operations. The Handbook’s
objective is to provide recipes for law firm network success in the ever changing legal market.
While the new edition covers many of the same subjects, networks themselves have undergone a
tremendous number of internal and external changes. In particular, the formation of the Association of
International Law Firm Networks (AILFN)2 illustrates just how far we have come in such a short time.
AILFN represents the common interest of all networks. It has increased the status of networks through its
ability to directly market the network concept to more than 20,000 professionals. In the coming years, the
network evolution will become a revolution as networks are recognized as the only model for global legal
representation.
The rapid consolidation of the different models in the legal profession began only eight years ago with the
recession. There has been a realization that the traditional integrated law firm cannot achieve global status
or economically provide all of the services that clients require. A number of the largest law firms have
sought to reconstitute themselves with a more flexible structure that recognizes cultural and economic
differences in each market. Like the Big 4 accounting firms, they have adopted various network-type
structures in which the local firms are independent entities. Since this umbrella entity is registered in
Switzerland as an association, they commonly go by the Swiss name: verein. Recent changes in the
market reflect that these composite models are showing signs of age.3
The traditional law firm networks have also changed; many are more than 20 years old. Though as entities
they represent by far the largest segment of the legal profession, their relevance has been questioned.4
1 Stephen McGarry, B.A., M.A., J.D., and LL.M. (Taxation), founded World Services Group (WSG), a multidisciplinary
network, in 2002. As president he grew it to 150 firms that have 21,000 professionals in 600 offices in more than 100 countries.
In 1989 McGarry founded Lex Mundi, the world’s largest law firm network. As president he grew it to 160 law firms that today
have 21,000 attorneys in 600 offices in 100-plus countries. These two networks represent 2 percent of all the lawyers on earth
whose members bill their clients an estimated $20 billion dollars annually. In 1995 he founded HG.org, one of the first legal
websites. Today it is among the world’s largest sites with more than 10 million pages and 1.3 million unique users each month
who download almost 2 million pages. In 2015 McGarry initiated with the Association of International Law Firm Networks, or
AILFN, an association of the leading law firm networks whose members will have more than 300,000 lawyers in 5,000 offices,
billing clients $120 billion dollars annually.
McGarry is admitted by exam to the bars of Minnesota, Texas, and Louisiana. In 2002 American Lawyer Media (ALM)
published McGarry’s treatise, Multidisciplinary Practices and Partnerships. McGarry has authored numerous articles on
associations and international business transactions. His most recent publication, Leaders in Legal Business (2015), has been
downloaded more than 15,000 times. Observations and opinions are those of the author and not of any organization or any member of an
organization.
2 ASSOCIATION OF INTERNATIONAL LAW FIRM NETWORKS, http://www.ailfn.com (last visited Jan. 27, 2016). AILFN is a new trade association
owned by law firm networks that represents their common interests. AILFN has four purposes: (1) enhance the position and recognition of all
networks in the legal market; (2) establish common principles to maintain standards of quality; (3) provide a forum for networks to exchange
information; and (4) negotiate agreements with vendors that can increase the efficiency and effectiveness of networks and their members.
AILFN’s members will have more than 300,000 lawyers in 5,000 offices, billing clients $120 billion dollars annually.
3 Chris Johnson, Global Law Firms and Vereins: The End of the Affair? The Am Law Daily, March 22, 2017,
http://www.americanlawyer.com/id=1202781867597/Global-Law-Firms-and-Vereins-The-End-of-the-Affair?slreturn=20170229143243
,discusses the rise of the CLG as an alternative form of network that reduce risk of vicarious liability; Georgina Stanley, King & Wood Mallesons
Europe in Crisis and the British Legal Awards – the Best of Legal Week Last Week, LEGAL WEEK, Nov. 28, 2016.
4 Norman Clark, Does Your Network Deliver External Value? WORLDVIEW BLOG (April 27, 2014), www.walkerclark.com/worldview-
blog/previous-worldview-posts/123-does-your-network-deliver-external-value.html; Michael Hatchwell, Legal Networks Should Not Be
vi
