Page 12 - Multidisciplinary Organizatons - Law and Accounting
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The I-MDO is essentially the same as a directory with the added feature that the members must have a
certain reputation for quality. The members must also trust that the criteria for selection have been
objective. Without these common standards, developing relationships among members will not occur.
Several ethical issues are discussed in the next section.
[2]—Relationship MDP (R-MDO)
A more sophisticated concept is the relationship model where a group of independent professional service
providers themselves create a permanent entity to act as the intermediary between them, i.e. a
relationship multidisciplinary organization. Even though the MDO is easy to conceive, the American Bar
Association Commission on Multidisciplinary Practices did not mention or discuss it.32
Today there are many networks of professional firms in a single profession that provide access to
resources at the other member firms. While the firms are independent, they cooperate to provide services
to clients. In some cases, these networks function semi-autonomously. In others, they provide back-office
services to the members.33 The R-MDO, because it contains more members, could provide, as necessary,
a similar range of services that the home offices of the Big 5 provide their other offices.
The real benefit is economic since professional service firms require managing large numbers of people.
There is a disproportionate increase in the bureaucracy as the number of locations increase. The
fundamental benefit of membership in the MDO is that the client receives the services but the member
firms are not confronted with the daunting task of managing large numbers of professionals in remote
jurisdictions. They do not have to harmonize salaries and benefits among the professionals since each
member does this independently?
The R-MDO model takes the American Bar Association’s ad hoc model, which is based upon individual
networking, four steps further:
First, systematic relationships are formed in the context of multi-professional and multi-service
organization rather than being created on an ad hoc basis. Since the object is true one-stop shopping, the
number of professional groups could be substantially more than those that would be brought in-house by
the Big S. This is because the profitability of each member unit is independent. In addition, professional
services could be extended vertically so that the R-MDO could service different markets, such as
consumers and businesses.
Second, the referral base of the professionals is extended geometrically. Because lawyers are competitors,
networking, despite collegiality, may be somewhat restricted. Building coalitions is difficult because
others at the firm may practice in the same area or have different relationships with lawyers at other
32 An MDO is similar to Model 1, as described by the American Bar Association’s Commission on Multidisciplinary Practices, except it is
organizations that work together, rather than individual professionals. “Model 1: The Cooperative Model": This model retains the status quo.
There would be no changes to Model Rule 5.4. The prohibitions against fee sharing and partnerships with non-lawyers would continue. Lawyers
would be free to employ non-lawyer professionals on their staffs to assist them in advising clients. Lawyers could work with non-lawyer
professionals whom they directly retain or who are retained by the client. To the extent that the non-lawyer professionals are employed, retained,
or associated with a lawyer, the partners in a law firm and any lawyer having direct supervisory authority over a non-lawyer professional would
have to take steps "to ensure that the person’s conduct is compatible with the professional obligations of the lawyer,” especially with respect to
the obligation not to disclose information relating to the representation and the protection of work product.” American Bar Association
Commission on Multidisciplinary Practices - Final Report, Appendix C, Reporter’s Notes (July 2000). The major difference, however, is that it
presumes that the lawyer is responsible for the entire transaction when in fact the legal aspects may be relatively minor. Stratton, ABA Voted No
MDP: But What About “Virtual” MDPs, 85 Tax Notes 1122-1124 (Nov. 29, 1999).
33 The Commercial Law Affiliates (CLA) provides marketing support for its members.
certain reputation for quality. The members must also trust that the criteria for selection have been
objective. Without these common standards, developing relationships among members will not occur.
Several ethical issues are discussed in the next section.
[2]—Relationship MDP (R-MDO)
A more sophisticated concept is the relationship model where a group of independent professional service
providers themselves create a permanent entity to act as the intermediary between them, i.e. a
relationship multidisciplinary organization. Even though the MDO is easy to conceive, the American Bar
Association Commission on Multidisciplinary Practices did not mention or discuss it.32
Today there are many networks of professional firms in a single profession that provide access to
resources at the other member firms. While the firms are independent, they cooperate to provide services
to clients. In some cases, these networks function semi-autonomously. In others, they provide back-office
services to the members.33 The R-MDO, because it contains more members, could provide, as necessary,
a similar range of services that the home offices of the Big 5 provide their other offices.
The real benefit is economic since professional service firms require managing large numbers of people.
There is a disproportionate increase in the bureaucracy as the number of locations increase. The
fundamental benefit of membership in the MDO is that the client receives the services but the member
firms are not confronted with the daunting task of managing large numbers of professionals in remote
jurisdictions. They do not have to harmonize salaries and benefits among the professionals since each
member does this independently?
The R-MDO model takes the American Bar Association’s ad hoc model, which is based upon individual
networking, four steps further:
First, systematic relationships are formed in the context of multi-professional and multi-service
organization rather than being created on an ad hoc basis. Since the object is true one-stop shopping, the
number of professional groups could be substantially more than those that would be brought in-house by
the Big S. This is because the profitability of each member unit is independent. In addition, professional
services could be extended vertically so that the R-MDO could service different markets, such as
consumers and businesses.
Second, the referral base of the professionals is extended geometrically. Because lawyers are competitors,
networking, despite collegiality, may be somewhat restricted. Building coalitions is difficult because
others at the firm may practice in the same area or have different relationships with lawyers at other
32 An MDO is similar to Model 1, as described by the American Bar Association’s Commission on Multidisciplinary Practices, except it is
organizations that work together, rather than individual professionals. “Model 1: The Cooperative Model": This model retains the status quo.
There would be no changes to Model Rule 5.4. The prohibitions against fee sharing and partnerships with non-lawyers would continue. Lawyers
would be free to employ non-lawyer professionals on their staffs to assist them in advising clients. Lawyers could work with non-lawyer
professionals whom they directly retain or who are retained by the client. To the extent that the non-lawyer professionals are employed, retained,
or associated with a lawyer, the partners in a law firm and any lawyer having direct supervisory authority over a non-lawyer professional would
have to take steps "to ensure that the person’s conduct is compatible with the professional obligations of the lawyer,” especially with respect to
the obligation not to disclose information relating to the representation and the protection of work product.” American Bar Association
Commission on Multidisciplinary Practices - Final Report, Appendix C, Reporter’s Notes (July 2000). The major difference, however, is that it
presumes that the lawyer is responsible for the entire transaction when in fact the legal aspects may be relatively minor. Stratton, ABA Voted No
MDP: But What About “Virtual” MDPs, 85 Tax Notes 1122-1124 (Nov. 29, 1999).
33 The Commercial Law Affiliates (CLA) provides marketing support for its members.
