Page 46 - Professional Services Networks
P. 46
The Handbook: Law Firm Networks
The directors have a more hands-on role in Level 2 networks. They may be responsible for recruiting new
members.227 There may also be a finance committee, website committee, marketing committee, and others.
Members who have an interest in these areas run the committees. The committees may use the resources of
member firms or may also hire outside professionals. This would usually be the case in the design of a
website.
Because many of these networks are international and have a significant number of members, they also have
a full-time staff person. This person takes direction from the directors and chair, and is responsible for the
website, annual meetings, and, perhaps, practice groups. There are generally no significant external
marketing efforts.
An example of Level 2 networks governance is Interlaw.228 The network does not reflect any leadership,
policies, rules, or other information on its website about the actual governance of the network. The World
Law Group229 lists its officers and directors. The presidency of the group rotates back to a former president
who was elected by a member firm and has been out of office for five years. This would indicate that there is
no succession plan. Additionally, since there have been virtually no new members in 10 years, it strongly
suggests that the group has no intention of developing into a Level 3 organization. The corporate governance
function is indicative of this perspective. While Club de Abogados230 is the oldest network, the website lists
no responsible individual. The same member has held the secretariat function for more than 20 years.
Governance issues in Level 3 networks are more complex because each of the limiting factors described in
Level 2 disappears. Level 3 accounting networks are more refined than Level 3 legal networks. For example,
the members of a Level 3 legal network are usually large firms in their respective states and countries. As
large firms, they have complex national and international practices. The firms may have branch offices that
compete with other offices’ members. The size of the firm means that significant efforts must be made for
awareness. The Level 3 networks are usually global. Cultures and different ways of performing professional
services need to be taken into consideration. The members of large firms will have other relationships. The
network will have an external interest in promoting itself to the profession, businesspersons, associations,
and others. Simply stated, Level 3 networks are global businesses that are governed accordingly.
A collaborative relationship between the members, board, executive committee, and full-time professional
staff is the hallmark of a Level 3 network. In a Level 3 organization the board functions as a board would
function in any business. Their role is advisory. The board adopts broad policies that the executives are
responsible for implementing. They advise on broad strategies and decide on members, the overall budget,
dues, and other assessments. An executive committee composed of board members and the professional staff
is responsible for general operations. The staff is responsible for recruiting, marketing, accounting, and other
business services.
If one looks at a website, it is fairly easy to determine which networks are Level 2 and Level 3 if the
governance is clearly set out. For example, on the TerraLex site,231 there is a chairman, a chair-elect, regional
directors, and directors at large. Each has been assigned a specific task and responsibility. The chief
operating officer is the chairman, who is from a member firm. An executive director supervises the staff.
This is in contrast to Meritas,232 which has a professional staff of 12. The title of the CEO is president, and
there is a member board.
227 Membership, LAWYERS ASSOCIATED WORLDWIDE, www.lawyersworldwide.com/join_law/membership_criteria/ (last visited Feb.
2, 2016).
228 INTERLAW, supra note 161.
229 THE WORLD LAW GROUP, www.theworldlawgroup.com (last visited Feb. 2, 2016).
230 CLUB DE ABOGADOS, supra note 160.
231 TERRALEX, supra note 125.
232 MERITAS, supra note 159.
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The directors have a more hands-on role in Level 2 networks. They may be responsible for recruiting new
members.227 There may also be a finance committee, website committee, marketing committee, and others.
Members who have an interest in these areas run the committees. The committees may use the resources of
member firms or may also hire outside professionals. This would usually be the case in the design of a
website.
Because many of these networks are international and have a significant number of members, they also have
a full-time staff person. This person takes direction from the directors and chair, and is responsible for the
website, annual meetings, and, perhaps, practice groups. There are generally no significant external
marketing efforts.
An example of Level 2 networks governance is Interlaw.228 The network does not reflect any leadership,
policies, rules, or other information on its website about the actual governance of the network. The World
Law Group229 lists its officers and directors. The presidency of the group rotates back to a former president
who was elected by a member firm and has been out of office for five years. This would indicate that there is
no succession plan. Additionally, since there have been virtually no new members in 10 years, it strongly
suggests that the group has no intention of developing into a Level 3 organization. The corporate governance
function is indicative of this perspective. While Club de Abogados230 is the oldest network, the website lists
no responsible individual. The same member has held the secretariat function for more than 20 years.
Governance issues in Level 3 networks are more complex because each of the limiting factors described in
Level 2 disappears. Level 3 accounting networks are more refined than Level 3 legal networks. For example,
the members of a Level 3 legal network are usually large firms in their respective states and countries. As
large firms, they have complex national and international practices. The firms may have branch offices that
compete with other offices’ members. The size of the firm means that significant efforts must be made for
awareness. The Level 3 networks are usually global. Cultures and different ways of performing professional
services need to be taken into consideration. The members of large firms will have other relationships. The
network will have an external interest in promoting itself to the profession, businesspersons, associations,
and others. Simply stated, Level 3 networks are global businesses that are governed accordingly.
A collaborative relationship between the members, board, executive committee, and full-time professional
staff is the hallmark of a Level 3 network. In a Level 3 organization the board functions as a board would
function in any business. Their role is advisory. The board adopts broad policies that the executives are
responsible for implementing. They advise on broad strategies and decide on members, the overall budget,
dues, and other assessments. An executive committee composed of board members and the professional staff
is responsible for general operations. The staff is responsible for recruiting, marketing, accounting, and other
business services.
If one looks at a website, it is fairly easy to determine which networks are Level 2 and Level 3 if the
governance is clearly set out. For example, on the TerraLex site,231 there is a chairman, a chair-elect, regional
directors, and directors at large. Each has been assigned a specific task and responsibility. The chief
operating officer is the chairman, who is from a member firm. An executive director supervises the staff.
This is in contrast to Meritas,232 which has a professional staff of 12. The title of the CEO is president, and
there is a member board.
227 Membership, LAWYERS ASSOCIATED WORLDWIDE, www.lawyersworldwide.com/join_law/membership_criteria/ (last visited Feb.
2, 2016).
228 INTERLAW, supra note 161.
229 THE WORLD LAW GROUP, www.theworldlawgroup.com (last visited Feb. 2, 2016).
230 CLUB DE ABOGADOS, supra note 160.
231 TERRALEX, supra note 125.
232 MERITAS, supra note 159.
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