Page 59 - Professional Services Networks
P. 59
The Handbook: Law Firm Networks
In order for an accounting firm to do an audit, it must have access to policy manuals and checklists. One of
the reasons for joining a network is to get access to these materials. Every accounting network has a manual
and procedures for this type of referral. Only one member firm manages the audit and divides the fees among
those participating in the audit. The invoice may come from the group leader. The referral may be for the
long-term, creating a semi-permanent relationship that extends to other matters.
Many firms systematically advertise they are members of a network.271 Network membership is found on the
website, letterhead, business cards, and brochures. A creative way to use network membership would be to
conduct a client survey of their need for counsel in other states or countries. As feedback, they could
introduce fellow members. The objective is to let existing clients know they can handle their business in
different parts of the world.
Full-scale collaborative effort based upon both geographic representation and the expertise found in the
network firms is Type 4 referrals. While Type 4 referrals are similar to Type 3 referrals, in a Type 4 referral
the degree of collaboration is significantly higher. For example, member firms may wish to share offices in a
location like Washington, D.C., Brussels, or London. They may want to produce common marketing
materials to attract a particular type of client. They may put on joint presentations to common clients or
potential ones.272 They may exchange professionals as secondments. At industry trade shows they may have
a common booth. Type 4 referrals are the result of common interest and trust coupled with a financial
interest.
Types 3 and 4 referrals require that the members take the initiative.273 The network only creates the
framework for members to find common interests with other members. Members may have the same clients,
expertise, or industry specialization; how these are combined is for the members to decide. The network does
not get involved.
There are a number of issues involved in network referrals. The first is that every market is different. There
are some countries where all referrals are in-bound. However, in these countries, using network membership
can be useful in obtaining the in-bound work by being able to differentiate one firm from another. This can
be done by being able to offer to their clients the expertise found at other member firms. For example, in a
government RFP, the firms can put together a consortium of expertise using the network’s technology. In this
way, the firm that is usually an in-bound referrer becomes an outbound one. The receiving firms get a
referral not because of their location, but because of their expertise.
Networks are non-exclusive, so there is no requirement that firms refer business to one another. In the legal
profession in particular, attorneys have many other relationships. These temper the number of referrals. The
challenge for networks is how to build relationships in which members are inclined to refer cases.
Referrals are also dependent on the awareness of membership in the network. If the members are not
comfortable with one another, they will not refer business. The objective of a network must be to increase the
level of awareness and confidence. The engagement of the maximum number of professionals in the network
is important. This subject is covered in Chapter 5.
271 See BRIGARD & URRUTIA, bu.com.co/en/ourfirm/global-connections (last visited Feb. 4, 2016).
272 See Investing in Africa: Current Trends, Association of Corporate Counsel, ASS’N OF CORP. COUNS., www.acc.com/education/investing-
in-africa.cfm (last visited Feb. 4, 2016).
273 See ENSafrica Recommends Shoosmiths to Advise Truworths International on Acquisition, WORLD SERVICES GROUP,
www.worldservicesgroup.com/success_stories.asp (last visited Feb. 4, 2016) (the Brazilian and German members formed a
collaboration to attract clients from Brazil investing in Germany and Germans investing in Brazil).
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In order for an accounting firm to do an audit, it must have access to policy manuals and checklists. One of
the reasons for joining a network is to get access to these materials. Every accounting network has a manual
and procedures for this type of referral. Only one member firm manages the audit and divides the fees among
those participating in the audit. The invoice may come from the group leader. The referral may be for the
long-term, creating a semi-permanent relationship that extends to other matters.
Many firms systematically advertise they are members of a network.271 Network membership is found on the
website, letterhead, business cards, and brochures. A creative way to use network membership would be to
conduct a client survey of their need for counsel in other states or countries. As feedback, they could
introduce fellow members. The objective is to let existing clients know they can handle their business in
different parts of the world.
Full-scale collaborative effort based upon both geographic representation and the expertise found in the
network firms is Type 4 referrals. While Type 4 referrals are similar to Type 3 referrals, in a Type 4 referral
the degree of collaboration is significantly higher. For example, member firms may wish to share offices in a
location like Washington, D.C., Brussels, or London. They may want to produce common marketing
materials to attract a particular type of client. They may put on joint presentations to common clients or
potential ones.272 They may exchange professionals as secondments. At industry trade shows they may have
a common booth. Type 4 referrals are the result of common interest and trust coupled with a financial
interest.
Types 3 and 4 referrals require that the members take the initiative.273 The network only creates the
framework for members to find common interests with other members. Members may have the same clients,
expertise, or industry specialization; how these are combined is for the members to decide. The network does
not get involved.
There are a number of issues involved in network referrals. The first is that every market is different. There
are some countries where all referrals are in-bound. However, in these countries, using network membership
can be useful in obtaining the in-bound work by being able to differentiate one firm from another. This can
be done by being able to offer to their clients the expertise found at other member firms. For example, in a
government RFP, the firms can put together a consortium of expertise using the network’s technology. In this
way, the firm that is usually an in-bound referrer becomes an outbound one. The receiving firms get a
referral not because of their location, but because of their expertise.
Networks are non-exclusive, so there is no requirement that firms refer business to one another. In the legal
profession in particular, attorneys have many other relationships. These temper the number of referrals. The
challenge for networks is how to build relationships in which members are inclined to refer cases.
Referrals are also dependent on the awareness of membership in the network. If the members are not
comfortable with one another, they will not refer business. The objective of a network must be to increase the
level of awareness and confidence. The engagement of the maximum number of professionals in the network
is important. This subject is covered in Chapter 5.
271 See BRIGARD & URRUTIA, bu.com.co/en/ourfirm/global-connections (last visited Feb. 4, 2016).
272 See Investing in Africa: Current Trends, Association of Corporate Counsel, ASS’N OF CORP. COUNS., www.acc.com/education/investing-
in-africa.cfm (last visited Feb. 4, 2016).
273 See ENSafrica Recommends Shoosmiths to Advise Truworths International on Acquisition, WORLD SERVICES GROUP,
www.worldservicesgroup.com/success_stories.asp (last visited Feb. 4, 2016) (the Brazilian and German members formed a
collaboration to attract clients from Brazil investing in Germany and Germans investing in Brazil).
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