Page 67 - Lawyers and Accountants - The Future of the Professions
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Lawyers and Accountants 2019 -
large firms interested in corporate transactions. The Big 5 cannot do this because it is difficult to differentiate
practice areas within the same organization.
Fourth, MDOs can provide clients access to the same database and tools that members of the relationship
enterprise have at their fingertips. Since professional services, rather than the management of these set vices,
is the profit center for professionals, delegating a portion of “management” to the client would therefore
contribute to the bottom line. It would also make the client the marketing vehicle for services, which
effectively increases the referrals base for each professional.
The MDO radically changes the competitive equation making it possible for firms of all sizes to offer services
to their individual clients. It does so at a fraction of the cost of bringing all services in-house and in a way that
sets the highest standards both globally and locally.
§ 14.07 Summary
While large providers of professional services must compete with the Big 5, they now have the opportunity
to come together to create MDOs to jointly offer services. These relationship organizations can be rapidly
created because they take advantage of existing resources that are in place. They avoid the serious
bureaucratic, regulatory and ethical constraints faced by the Big 5 in particular conflicts, confidentiality and
fee splitting issues that may never be resolved. These organizations have the potential of setting standards
that, in many cases, may exceed those of the Big 5 if they can be done correctly. The most revolutionary
aspect is that the MDO can allow corporate clients to create their own teams among service providers by
permitting access to the professionals. The result is a referral potential which far exceeds that of existing
networks, which are limited to one profession.
Using the PSI, firms like John’s can offer multidisciplinary services to small business and individuals. Through
WSG, Judy can offer more services to compete with the largest MDP provide.
64
large firms interested in corporate transactions. The Big 5 cannot do this because it is difficult to differentiate
practice areas within the same organization.
Fourth, MDOs can provide clients access to the same database and tools that members of the relationship
enterprise have at their fingertips. Since professional services, rather than the management of these set vices,
is the profit center for professionals, delegating a portion of “management” to the client would therefore
contribute to the bottom line. It would also make the client the marketing vehicle for services, which
effectively increases the referrals base for each professional.
The MDO radically changes the competitive equation making it possible for firms of all sizes to offer services
to their individual clients. It does so at a fraction of the cost of bringing all services in-house and in a way that
sets the highest standards both globally and locally.
§ 14.07 Summary
While large providers of professional services must compete with the Big 5, they now have the opportunity
to come together to create MDOs to jointly offer services. These relationship organizations can be rapidly
created because they take advantage of existing resources that are in place. They avoid the serious
bureaucratic, regulatory and ethical constraints faced by the Big 5 in particular conflicts, confidentiality and
fee splitting issues that may never be resolved. These organizations have the potential of setting standards
that, in many cases, may exceed those of the Big 5 if they can be done correctly. The most revolutionary
aspect is that the MDO can allow corporate clients to create their own teams among service providers by
permitting access to the professionals. The result is a referral potential which far exceeds that of existing
networks, which are limited to one profession.
Using the PSI, firms like John’s can offer multidisciplinary services to small business and individuals. Through
WSG, Judy can offer more services to compete with the largest MDP provide.
64
