Page 15 - The Handbook - Law Firm Networks 2018
P. 15
The Handbook: Law Firm Networks
will benefit its members and enhance its performance. The network’s structure reflects the activities it seeks
to promote and the underlying cultures of the members. Each accounting, legal, and multidisciplinary
network will be different. The processes define how each network achieves its objectives.
Networks are created around common specialized assets, joint control, and a collective purpose. The
specialized assets reflect the defined activities of the network. Joint control of the assets necessitates
collaboration among members. The collaboration is dependent upon a commonly understood collective
purpose: A professional services network is neither a mere extension of the members nor only a support
organization for independent professional services firms; it is an independent organization.27 It is also a
business and very different from professional associations such as the bar, accounting associations, and other
associations whose membership is generally open to all qualified professionals.28 The term “network” will be
used throughout this book to describe these grouping.29
The common objective of a network is to create a framework that can allow the members to expand their
services. Within the network they can operate to pursue their interests, which can include referrals, joint
venturing, access to expertise, developing regional expertise, publishing articles for clients, branding,
technical information exchange, market positioning, pro bono services, and more. The scope of these
interests is defined not by the members, but by the network.
As alluded to, one of the major factors influencing the need for networks is the globalization of the economy.
Supply and demand are no longer local. The price of commodities is affected by the weather halfway across
the world or by demand in developing countries. Production takes place wherever the assets and human
resources can most effectively deploy. Professional services providers must be able to reach out globally to
represent their clients. Networks are the only practical method to accomplish these objectives.
Exhibit 1 – The Need for Global Networks30
Global
Economy
Global Need for Global
Resources Global Marketing
Networks
Global
Procurement
27 Id. at 8. Networks are “long term purposeful arrangements among distinct but related for-profit organizations that allow those firms in them to gain
or sustain competitive advantage,” citing C. Jarillo, On Strategic Networks, STRATEGIC MGMT. J. (1988) at 31-41; see also Strategic Alliances, Why
Compete? Collaborate, WORLD EXECUTIVE DIG. (Oct. 1989) at 23.
28 Id. The network is a support association whose objectives are defined by the businesses it supports. It hold the registered commercial name that
members are licensed explicitly or implicitly to use. See infra Chapter 7, Regulations and Other Legal Considerations for Networks.
29 These regulations in the EU distinguish between a network and association. Id.
30 See Jagdish Sheth, Strategic Importance of Information Technology, ADVANCES IN TELECOMM. MGMT., 1994, at Volume 4, 3-16; see also B.M.
Gilroy, NETWORKING IN MULTINATIONAL ENTERPRISES: THE IMPORTANCE OF STRATEGIC ALLIANCES (1993); see also R. Gulati et. al., Strategic
Networks, 21 STRATEGIC MGMT. J. 203, 203-215 (2000); see also Tim Turley, Winning in a Polycentric World, EY,
www.ey.com/GL/en/Issues/Business-environment/Winning-in-a-polycentric-world--globalization-and-the-changing-world-of-business---Winning-in-
a-world-with-many-centers.
-2-
will benefit its members and enhance its performance. The network’s structure reflects the activities it seeks
to promote and the underlying cultures of the members. Each accounting, legal, and multidisciplinary
network will be different. The processes define how each network achieves its objectives.
Networks are created around common specialized assets, joint control, and a collective purpose. The
specialized assets reflect the defined activities of the network. Joint control of the assets necessitates
collaboration among members. The collaboration is dependent upon a commonly understood collective
purpose: A professional services network is neither a mere extension of the members nor only a support
organization for independent professional services firms; it is an independent organization.27 It is also a
business and very different from professional associations such as the bar, accounting associations, and other
associations whose membership is generally open to all qualified professionals.28 The term “network” will be
used throughout this book to describe these grouping.29
The common objective of a network is to create a framework that can allow the members to expand their
services. Within the network they can operate to pursue their interests, which can include referrals, joint
venturing, access to expertise, developing regional expertise, publishing articles for clients, branding,
technical information exchange, market positioning, pro bono services, and more. The scope of these
interests is defined not by the members, but by the network.
As alluded to, one of the major factors influencing the need for networks is the globalization of the economy.
Supply and demand are no longer local. The price of commodities is affected by the weather halfway across
the world or by demand in developing countries. Production takes place wherever the assets and human
resources can most effectively deploy. Professional services providers must be able to reach out globally to
represent their clients. Networks are the only practical method to accomplish these objectives.
Exhibit 1 – The Need for Global Networks30
Global
Economy
Global Need for Global
Resources Global Marketing
Networks
Global
Procurement
27 Id. at 8. Networks are “long term purposeful arrangements among distinct but related for-profit organizations that allow those firms in them to gain
or sustain competitive advantage,” citing C. Jarillo, On Strategic Networks, STRATEGIC MGMT. J. (1988) at 31-41; see also Strategic Alliances, Why
Compete? Collaborate, WORLD EXECUTIVE DIG. (Oct. 1989) at 23.
28 Id. The network is a support association whose objectives are defined by the businesses it supports. It hold the registered commercial name that
members are licensed explicitly or implicitly to use. See infra Chapter 7, Regulations and Other Legal Considerations for Networks.
29 These regulations in the EU distinguish between a network and association. Id.
30 See Jagdish Sheth, Strategic Importance of Information Technology, ADVANCES IN TELECOMM. MGMT., 1994, at Volume 4, 3-16; see also B.M.
Gilroy, NETWORKING IN MULTINATIONAL ENTERPRISES: THE IMPORTANCE OF STRATEGIC ALLIANCES (1993); see also R. Gulati et. al., Strategic
Networks, 21 STRATEGIC MGMT. J. 203, 203-215 (2000); see also Tim Turley, Winning in a Polycentric World, EY,
www.ey.com/GL/en/Issues/Business-environment/Winning-in-a-polycentric-world--globalization-and-the-changing-world-of-business---Winning-in-
a-world-with-many-centers.
-2-
