Page 86 - Professional Services Networks
P. 86
The Handbook: Law Firm Networks
Chapter 8 – Networks and the Technology Revolution
In the 1990s, there was a general awareness in business that technology was about to change the world.388 It
was going to change how people work and live. Few could have guessed at the degrees of change that are
now reflected in computers, telecommunications, and interpersonal relationships. Networks are now being
affected.
The changes in the networking environment should be the most profound because, by definition, its operation
is based upon the exchange of information.389 The information is contained in discrete location, i.e., at the
member firms and with the members’ professionals. Information technology can be seen as the liberator of
this information. It creates the ability of professionals in different locations to gain knowledge and
transparently interact with each other based upon information and interests.
A successful network is one in which members can easily collaborate to achieve common objectives.
Collaboration is a function of access to information about the network and its members from superiors to
others in organization. In the command and control organizations,390 information is filtered and disseminated
on a need-to-know basis. In a network of independent members, all members must receive information. In
order for members to collaborate, the information must be widely shared with individual professionals.
Until recently the primary role of technology was support of the organization. The technology was used for
invoicing, product design, payroll, word processing, and communications. In the last 20 years, the role of
technology has shifted from the support role to a strategic function. The technology now is part of the
strategy for the delivery of goods and services that provide a competitive advantage. This reformation of
technology was the result of four factors: intense competition, globalization, organizational changes, and the
reduction in the performance-price ratio.391
As competition for clients increases, professionals must be more cost-effective in providing services.
Technology offers new alternatives. For example, professionals can now easily collaborate online with their
clients, sharing documents and ideas. Technology such as Google can be used to provide information about
their firms directly to potential clients without going through directories like Martindale Hubbell.392 Using
technology frees up the budget for other purposes.
Globalization has been discussed extensively. It now impacts every business and individual. A legal or
accounting issue can have profound effects on the economy in every country. Each professional services
provider must have a means for recognizing the global nature of its clients and be able to respond to and
meet their needs. Technology is the vehicle to globalization.
Institutions and organizations such as the AICPA or ABA have undergone profound changes. The accounting
and legal professions, which at one time prohibited all marketing activities, now embrace marketing.
Lawyers not only advertise but also now have blogs, webinars, video, Twitter, LinkedIn, and Facebook,
388 “Emerging information technology (IT) has played a major role in network organizational development. Indeed a number of authors have written
of the IT-enabled network organization.” Van Alstyne, supra note 9, citing W. H. DAVIDOW & M. S. MALONE, THE VIRTUAL CORPORATION 294
(1992); see also P. DRUCKER, THE NEW SOCIETY OF ORGANIZATIONS 95-104 (1992); see also V. P. George, Technological Intensity and Interfirm
Cooperation: An Industry Level Study of Alliance Networks of U.S. Public Firms, MIT SLOAN SCHOOL (1985-1990); see also T. W. Malone & J. F.
Rockart, Computers, Networks and the Corporation, 265 SCIENTIFIC AMERICAN 128-136 (1991); see also T. PETERS, LIBERATION MANAGEMENT:
NECESSARY DISORGANIZATION FOR THE NANOSECOND NINETIES 834 (1992);.see also W. W. Powell, Neither Market Nor Hierarchy: Network Forms
of Organization, 12 RES. IN ORG. BEHAVIOR 295-336 (1990); see also C. C. Snow et. al, Managing 21st Century Network Organizations, 20 ORG.
DYNAMICS 5, 5-20 (1992).
389 See supra Chapter 4, Organizing a Traditional Law Firm Network.
390 Command and Control, ANSWERS.COM, www.answers.com/topic/command-and-control (last visited Feb. 5, 2016).
391 Jagdish Sheth, Strategic Importance of Information Technology, 4 ADVANCES IN TELECOMM. MGMT 3, 3-16 (1994).
392 Martindale Hubbell has embraced this model by creating Martindale Connect, which is an online networking organization. MARTINDALE,
www.martindale.com (last visited Feb. 5, 2016).
- 74 -
Chapter 8 – Networks and the Technology Revolution
In the 1990s, there was a general awareness in business that technology was about to change the world.388 It
was going to change how people work and live. Few could have guessed at the degrees of change that are
now reflected in computers, telecommunications, and interpersonal relationships. Networks are now being
affected.
The changes in the networking environment should be the most profound because, by definition, its operation
is based upon the exchange of information.389 The information is contained in discrete location, i.e., at the
member firms and with the members’ professionals. Information technology can be seen as the liberator of
this information. It creates the ability of professionals in different locations to gain knowledge and
transparently interact with each other based upon information and interests.
A successful network is one in which members can easily collaborate to achieve common objectives.
Collaboration is a function of access to information about the network and its members from superiors to
others in organization. In the command and control organizations,390 information is filtered and disseminated
on a need-to-know basis. In a network of independent members, all members must receive information. In
order for members to collaborate, the information must be widely shared with individual professionals.
Until recently the primary role of technology was support of the organization. The technology was used for
invoicing, product design, payroll, word processing, and communications. In the last 20 years, the role of
technology has shifted from the support role to a strategic function. The technology now is part of the
strategy for the delivery of goods and services that provide a competitive advantage. This reformation of
technology was the result of four factors: intense competition, globalization, organizational changes, and the
reduction in the performance-price ratio.391
As competition for clients increases, professionals must be more cost-effective in providing services.
Technology offers new alternatives. For example, professionals can now easily collaborate online with their
clients, sharing documents and ideas. Technology such as Google can be used to provide information about
their firms directly to potential clients without going through directories like Martindale Hubbell.392 Using
technology frees up the budget for other purposes.
Globalization has been discussed extensively. It now impacts every business and individual. A legal or
accounting issue can have profound effects on the economy in every country. Each professional services
provider must have a means for recognizing the global nature of its clients and be able to respond to and
meet their needs. Technology is the vehicle to globalization.
Institutions and organizations such as the AICPA or ABA have undergone profound changes. The accounting
and legal professions, which at one time prohibited all marketing activities, now embrace marketing.
Lawyers not only advertise but also now have blogs, webinars, video, Twitter, LinkedIn, and Facebook,
388 “Emerging information technology (IT) has played a major role in network organizational development. Indeed a number of authors have written
of the IT-enabled network organization.” Van Alstyne, supra note 9, citing W. H. DAVIDOW & M. S. MALONE, THE VIRTUAL CORPORATION 294
(1992); see also P. DRUCKER, THE NEW SOCIETY OF ORGANIZATIONS 95-104 (1992); see also V. P. George, Technological Intensity and Interfirm
Cooperation: An Industry Level Study of Alliance Networks of U.S. Public Firms, MIT SLOAN SCHOOL (1985-1990); see also T. W. Malone & J. F.
Rockart, Computers, Networks and the Corporation, 265 SCIENTIFIC AMERICAN 128-136 (1991); see also T. PETERS, LIBERATION MANAGEMENT:
NECESSARY DISORGANIZATION FOR THE NANOSECOND NINETIES 834 (1992);.see also W. W. Powell, Neither Market Nor Hierarchy: Network Forms
of Organization, 12 RES. IN ORG. BEHAVIOR 295-336 (1990); see also C. C. Snow et. al, Managing 21st Century Network Organizations, 20 ORG.
DYNAMICS 5, 5-20 (1992).
389 See supra Chapter 4, Organizing a Traditional Law Firm Network.
390 Command and Control, ANSWERS.COM, www.answers.com/topic/command-and-control (last visited Feb. 5, 2016).
391 Jagdish Sheth, Strategic Importance of Information Technology, 4 ADVANCES IN TELECOMM. MGMT 3, 3-16 (1994).
392 Martindale Hubbell has embraced this model by creating Martindale Connect, which is an online networking organization. MARTINDALE,
www.martindale.com (last visited Feb. 5, 2016).
- 74 -
