Page 21 - MDPs - Chapter 14 - Multidisciplinayr Practice and Partnershps
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want to provide a description of their respective organization — to the effect “Member World Services
Group — An Association of Independent Professional Firms and Businesses.56
§ 14.06 Competitive Implications
The professional objectives of any for-profit organization are: maintain standards of conduct; offer high-
quality, cost-effective services; and compete against the other professionals, who have precisely the same
interests, to make the most money. The MDO can make four profound changes on how professional
service providers compete.
First, information about clients and professionals can be automatically matched through databases and
further refined by the clients and professionals themselves. Professionals to find other professionals can
also use the matching function. When done systematically, a multidisciplinary team for any issue,
anywhere, can rapidly be formed. Second, the professionals geometrically expand their referral base
because the non-lawyer members are greater in size and are not reluctant to make referrals for fear of
losing a client. In addition, the number of clients represented by the MDO is vastly larger than those
represented by even the largest law firm network.
Third, professionals and clients can be matched according to their interest profiles within an organization.
This expands vertically the number of participants if each group is in a different market or provides a
different service. For example, large law firms are not interested in consumer type transactions that would
interest small- firms. This can be programmed into the matching function within the same MDO. Adding
services is inexpensive so that firms interested in consumer practice can be added to the group without
competing with large firms interested in corporate transactions. The Big 5 cannot do this because it is
difficult to differentiate practice areas within the same organization.
Fourth, MDOs can provide clients access to the same database and tools that members of the relationship
enterprise have at their fingertips. Since professional services, rather than the management of these set
vices, is the profit center for professionals, delegating a portion of “management” to the client would
therefore contribute to the bottom line. It would also make the client the marketing vehicle for services,
which effectively increases the referrals base for each professional.
The MDO radically changes the competitive equation making it possible for firms of all sizes to offer
services to their individual clients. It does so at a fraction of the cost of bringing all services in-house and
in a way that sets the highest standards both globally and locally.
§ 14.07 Summary
While large providers of professional services must compete with the Big 5, they now have the
opportunity to come together to create MDOs to jointly offer services. These relationship organizations
can be rapidly created because they take advantage of existing resources that are in place. They avoid the
serious bureaucratic, regulatory and ethical constraints faced by the Big 5 in particular conflicts,
confidentiality and fee splitting issues that may never be resolved. These organizations have the potential
of setting standards that, in many cases, may exceed those of the Big 5 if they can be done correctly. The
most revolutionary aspect is that the MDO can allow corporate clients to create their own teams among
56 Lex Mundi, an association of 160 law firms permit the members to place Lex Mundi on letter heads and other materials. However, they require
that precise words be used. Members must state: ”Member Lex Mundi, an Association of Independent Law Firms.”
16
Group — An Association of Independent Professional Firms and Businesses.56
§ 14.06 Competitive Implications
The professional objectives of any for-profit organization are: maintain standards of conduct; offer high-
quality, cost-effective services; and compete against the other professionals, who have precisely the same
interests, to make the most money. The MDO can make four profound changes on how professional
service providers compete.
First, information about clients and professionals can be automatically matched through databases and
further refined by the clients and professionals themselves. Professionals to find other professionals can
also use the matching function. When done systematically, a multidisciplinary team for any issue,
anywhere, can rapidly be formed. Second, the professionals geometrically expand their referral base
because the non-lawyer members are greater in size and are not reluctant to make referrals for fear of
losing a client. In addition, the number of clients represented by the MDO is vastly larger than those
represented by even the largest law firm network.
Third, professionals and clients can be matched according to their interest profiles within an organization.
This expands vertically the number of participants if each group is in a different market or provides a
different service. For example, large law firms are not interested in consumer type transactions that would
interest small- firms. This can be programmed into the matching function within the same MDO. Adding
services is inexpensive so that firms interested in consumer practice can be added to the group without
competing with large firms interested in corporate transactions. The Big 5 cannot do this because it is
difficult to differentiate practice areas within the same organization.
Fourth, MDOs can provide clients access to the same database and tools that members of the relationship
enterprise have at their fingertips. Since professional services, rather than the management of these set
vices, is the profit center for professionals, delegating a portion of “management” to the client would
therefore contribute to the bottom line. It would also make the client the marketing vehicle for services,
which effectively increases the referrals base for each professional.
The MDO radically changes the competitive equation making it possible for firms of all sizes to offer
services to their individual clients. It does so at a fraction of the cost of bringing all services in-house and
in a way that sets the highest standards both globally and locally.
§ 14.07 Summary
While large providers of professional services must compete with the Big 5, they now have the
opportunity to come together to create MDOs to jointly offer services. These relationship organizations
can be rapidly created because they take advantage of existing resources that are in place. They avoid the
serious bureaucratic, regulatory and ethical constraints faced by the Big 5 in particular conflicts,
confidentiality and fee splitting issues that may never be resolved. These organizations have the potential
of setting standards that, in many cases, may exceed those of the Big 5 if they can be done correctly. The
most revolutionary aspect is that the MDO can allow corporate clients to create their own teams among
56 Lex Mundi, an association of 160 law firms permit the members to place Lex Mundi on letter heads and other materials. However, they require
that precise words be used. Members must state: ”Member Lex Mundi, an Association of Independent Law Firms.”
16
