Page 52 - Vienna Meeting Materals October 4, 2015 b
P. 52
By: Stephen J. McGarry3
Chapter 1 – Introduction: What is a Network?
All businesses represent a pool of financial and human capital that creates a product or performs a service.
This capital can be configured in an unlimited number of ways to achieve specific objectives for the service
provider or manufacturer. In international professional services, the traditional delivery methods are
operations by means of a controlled entity or membership in an association of independent service
providers. These associations are commonly referred to as “professional services networks.” Law firm
networks are one type.
Professional services networks are primarily found in accounting and law. They may also be found in
investment banking, insurance, real estate, and architectural services. Every profession that operates locally
but has clients in multiple locations is a potential profession for a network. This book will focus on legal,
accounting, multidisciplinary, and specialty practice networks. Today, members of these networks employ
more than one million professionals and staff, and have annual gross revenues that exceed $200 billion.
In order to provide a broad perspective, the networks discussed will include well-known accounting
networks like the Big Four. This will allow comparisons with the better-known law firm and
multidisciplinary networks, such as Lex Mundi, World Services Group, TerraLex, and Meritas. Lastly, the
“new “ Swiss verein, patterned after the Big 4 accounting networks, used by seven law firms to offer global
legal practice through independent firms, will be discussed. In sum, all of the 170-plus existing law firm
networks will be evaluated.
The purpose of this book is to provide a broad overview of legal networks in 2015. It begins with their
history. Reviewing how networks are organized provides insight as to how they are governed and operate.
This begins with research and is illustrated by numerous examples in both law and accounting. In order for
a network to be effective, it must develop an inter-network brand for its members. External branding can
be equally important. Operations, governance, and branding have legal and regulatory consequences that
must be evaluated. Networks are affected by other externalities, such as regulations, economic conditions,
and technology. All have ramifications. Finally, the book predicts the future of law firm networks as the
world changes even more.
How does one recognize a law firm network versus a law firm?
A network is most often a legal entity in which independent law firms seek to demonstrate to clients their
relationships with other firms in order to provide services. This is important because the entity itself does
not provide legal services. This requires that the member firms either demonstrate adherence to common
3 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. In 1995 he
founded HG.org, one of the first legal websites. Today, it is among the world’s largest sites with more than 5 million pages and
900,000 users each month who download almost 2 million pages. 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 2,000 times. Observations and opinions are those
of the author and not of any organization or any member of an organization.
49 | P a g e
Chapter 1 – Introduction: What is a Network?
All businesses represent a pool of financial and human capital that creates a product or performs a service.
This capital can be configured in an unlimited number of ways to achieve specific objectives for the service
provider or manufacturer. In international professional services, the traditional delivery methods are
operations by means of a controlled entity or membership in an association of independent service
providers. These associations are commonly referred to as “professional services networks.” Law firm
networks are one type.
Professional services networks are primarily found in accounting and law. They may also be found in
investment banking, insurance, real estate, and architectural services. Every profession that operates locally
but has clients in multiple locations is a potential profession for a network. This book will focus on legal,
accounting, multidisciplinary, and specialty practice networks. Today, members of these networks employ
more than one million professionals and staff, and have annual gross revenues that exceed $200 billion.
In order to provide a broad perspective, the networks discussed will include well-known accounting
networks like the Big Four. This will allow comparisons with the better-known law firm and
multidisciplinary networks, such as Lex Mundi, World Services Group, TerraLex, and Meritas. Lastly, the
“new “ Swiss verein, patterned after the Big 4 accounting networks, used by seven law firms to offer global
legal practice through independent firms, will be discussed. In sum, all of the 170-plus existing law firm
networks will be evaluated.
The purpose of this book is to provide a broad overview of legal networks in 2015. It begins with their
history. Reviewing how networks are organized provides insight as to how they are governed and operate.
This begins with research and is illustrated by numerous examples in both law and accounting. In order for
a network to be effective, it must develop an inter-network brand for its members. External branding can
be equally important. Operations, governance, and branding have legal and regulatory consequences that
must be evaluated. Networks are affected by other externalities, such as regulations, economic conditions,
and technology. All have ramifications. Finally, the book predicts the future of law firm networks as the
world changes even more.
How does one recognize a law firm network versus a law firm?
A network is most often a legal entity in which independent law firms seek to demonstrate to clients their
relationships with other firms in order to provide services. This is important because the entity itself does
not provide legal services. This requires that the member firms either demonstrate adherence to common
3 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. In 1995 he
founded HG.org, one of the first legal websites. Today, it is among the world’s largest sites with more than 5 million pages and
900,000 users each month who download almost 2 million pages. 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 2,000 times. Observations and opinions are those
of the author and not of any organization or any member of an organization.
49 | P a g e
