Page 6 - Professional Services Networks
P. 6
2018 Introduction
Stephen J. McGarry1
The first edition of this book was published in 2011 as Professional Services Networks – The Future of
the Accounting and Legal Professions. It was completely updated and published in 2015 under the title:
Law Firm Networks - The Future of the Legal Profession. The Handbook – Law Firm Networks has
expanded on the concepts, the models and the practicalities of network operations. The Handbook’s
objective is to provide recipes for law firm network success in the ever changing legal market.
While the new edition covers many of the same subjects, networks themselves have undergone a
tremendous number of internal and external changes. In particular, the formation of the Association of
International Law Firm Networks (AILFN)2 illustrates just how far we have come in such a short time.
AILFN represents the common interest of international, regional, and specialty networks. It has increased
the status of networks through its ability to directly market. In the coming years, the network evolution
will become a revolution as networks are recognized as the only model for global legal representation.
The rapid consolidation of the different models in the legal profession began only eight years ago with the
recession. There has been a realization that the traditional integrated law firm cannot achieve global status
or economically provide all of the services that clients require. A number of the largest law firms have
sought to reconstitute themselves with a more flexible structure that recognizes cultural and economic
differences in each market. Like the Big 4 accounting firms, they have adopted various network-type
structures in which the local firms are independent entities. Since this umbrella entity is registered in
Switzerland as an association, they commonly go by the Swiss name: verein. Recent changes in the
market reflect that these composite models are showing signs of age.3
1 Stephen McGarry, B.A., M.A., J.D., and LL.M. (Taxation), founded World Services Group (WSG), a multidisciplinary network, in
2002. As president he grew it to 150 firms that have 21,000 professionals in 600 offices in more than 100 countries. In 1989,
McGarry founded Lex Mundi, the world’s largest law firm network. As president he grew it to 160 law firms that today have
21,000 attorneys in 600 offices in 100-plus countries. These two networks represent 2 percent of all the lawyers on earth whose
members bill their clients an estimated $20 billion dollars annually. In 1995 he founded HG.org, one of the first five significant
legal websites. Today it is among the world’s largest sites with more than 10 million pages and 1.7 million unique users each
month who download almost 2 million pages. In 2015 McGarry initiated with the Association of International Law Firm
Networks, or AILFN, an association of the leading law firm networks. Its project Locate Law Networks provides instant access to
more than 300,000 lawyers in 5,000 offices, billing clients $120 billion dollars annually.
McGarry is admitted by exam to the bars of Minnesota, Texas, and Louisiana. In 2002 American Lawyer Media (ALM)
published McGarry’s treatise, Multidisciplinary Practices and Partnerships. McGarry has authored numerous articles on
associations, international business transactions and taxation. His most recent publication, Leaders in Legal Business (2015), has
been downloaded more than 15000 times. McGarry is also an author of several poems in Spanish. One is on strategic planning
entitled: Juegos de Puntos. McGarry is a painter McGarry’s Gallery of Art.
Observations and opinions are those of the author and not of any organization or any member of an organization.
2 ASSOCIATION OF INTERNATIONAL LAW FIRM NETWORKS, http://www.ailfn.com (last visited Jan. 27, 2016). AILFN is a new trade association
owned by law firm networks that represents their common interests. AILFN has four purposes: (1) enhance the position and recognition of all
networks in the legal market; (2) establish common principles to maintain standards of quality; (3) provide a forum for networks to exchange
information; and (4) negotiate agreements with vendors that can increase the efficiency and effectiveness of networks and their members.
AILFN’s members will have more than 300,000 lawyers in 5,000 offices, billing clients $120 billion dollars annually.
3 Chris Johnson, Global Law Firms and Vereins: The End of the Affair? The Am Law Daily, March 22, 2017,
http://www.americanlawyer.com/id=1202781867597/Global-Law-Firms-and-Vereins-The-End-of-the-Affair?slreturn=20170229143243
,discusses the rise of the CLG as an alternative form of network that reduce risk of vicarious liability; Georgina Stanley, King & Wood Mallesons
Europe in Crisis and the British Legal Awards – the Best of Legal Week Last Week, LEGAL WEEK, Nov. 28, 2016.
v
Stephen J. McGarry1
The first edition of this book was published in 2011 as Professional Services Networks – The Future of
the Accounting and Legal Professions. It was completely updated and published in 2015 under the title:
Law Firm Networks - The Future of the Legal Profession. The Handbook – Law Firm Networks has
expanded on the concepts, the models and the practicalities of network operations. The Handbook’s
objective is to provide recipes for law firm network success in the ever changing legal market.
While the new edition covers many of the same subjects, networks themselves have undergone a
tremendous number of internal and external changes. In particular, the formation of the Association of
International Law Firm Networks (AILFN)2 illustrates just how far we have come in such a short time.
AILFN represents the common interest of international, regional, and specialty networks. It has increased
the status of networks through its ability to directly market. In the coming years, the network evolution
will become a revolution as networks are recognized as the only model for global legal representation.
The rapid consolidation of the different models in the legal profession began only eight years ago with the
recession. There has been a realization that the traditional integrated law firm cannot achieve global status
or economically provide all of the services that clients require. A number of the largest law firms have
sought to reconstitute themselves with a more flexible structure that recognizes cultural and economic
differences in each market. Like the Big 4 accounting firms, they have adopted various network-type
structures in which the local firms are independent entities. Since this umbrella entity is registered in
Switzerland as an association, they commonly go by the Swiss name: verein. Recent changes in the
market reflect that these composite models are showing signs of age.3
1 Stephen McGarry, B.A., M.A., J.D., and LL.M. (Taxation), founded World Services Group (WSG), a multidisciplinary network, in
2002. As president he grew it to 150 firms that have 21,000 professionals in 600 offices in more than 100 countries. In 1989,
McGarry founded Lex Mundi, the world’s largest law firm network. As president he grew it to 160 law firms that today have
21,000 attorneys in 600 offices in 100-plus countries. These two networks represent 2 percent of all the lawyers on earth whose
members bill their clients an estimated $20 billion dollars annually. In 1995 he founded HG.org, one of the first five significant
legal websites. Today it is among the world’s largest sites with more than 10 million pages and 1.7 million unique users each
month who download almost 2 million pages. In 2015 McGarry initiated with the Association of International Law Firm
Networks, or AILFN, an association of the leading law firm networks. Its project Locate Law Networks provides instant access to
more than 300,000 lawyers in 5,000 offices, billing clients $120 billion dollars annually.
McGarry is admitted by exam to the bars of Minnesota, Texas, and Louisiana. In 2002 American Lawyer Media (ALM)
published McGarry’s treatise, Multidisciplinary Practices and Partnerships. McGarry has authored numerous articles on
associations, international business transactions and taxation. His most recent publication, Leaders in Legal Business (2015), has
been downloaded more than 15000 times. McGarry is also an author of several poems in Spanish. One is on strategic planning
entitled: Juegos de Puntos. McGarry is a painter McGarry’s Gallery of Art.
Observations and opinions are those of the author and not of any organization or any member of an organization.
2 ASSOCIATION OF INTERNATIONAL LAW FIRM NETWORKS, http://www.ailfn.com (last visited Jan. 27, 2016). AILFN is a new trade association
owned by law firm networks that represents their common interests. AILFN has four purposes: (1) enhance the position and recognition of all
networks in the legal market; (2) establish common principles to maintain standards of quality; (3) provide a forum for networks to exchange
information; and (4) negotiate agreements with vendors that can increase the efficiency and effectiveness of networks and their members.
AILFN’s members will have more than 300,000 lawyers in 5,000 offices, billing clients $120 billion dollars annually.
3 Chris Johnson, Global Law Firms and Vereins: The End of the Affair? The Am Law Daily, March 22, 2017,
http://www.americanlawyer.com/id=1202781867597/Global-Law-Firms-and-Vereins-The-End-of-the-Affair?slreturn=20170229143243
,discusses the rise of the CLG as an alternative form of network that reduce risk of vicarious liability; Georgina Stanley, King & Wood Mallesons
Europe in Crisis and the British Legal Awards – the Best of Legal Week Last Week, LEGAL WEEK, Nov. 28, 2016.
v
