Helen Simpson looks at the value of law firm networks and areas for collaboration between firms


The success of a network can be measured by the success of its firms and vice versa. Some networks are profit-making, others are mutual; some have a periodic turnover of members, whereas others sustain longer-term relationships. If your firm is not part of a network, some benefits of them are considered below.



A few larger, international networks represent 20,000 lawyers across 160 firms. A UK network such as LawNet represents 3,000 lawyers across 62 firms. As you might imagine, the requirements and objectives can differ enormously. International networks primarily facilitate cross-border work referrals, using the brand value of the network's name to engender confidence.



Smaller, national networks facilitate competitive advantage for members in their local and national markets through access to valued-added services and the opportunities of participation in a 'value network'. Each geographic location is represented by one member firm, maximising the potential for knowledge-sharing and collaboration within a non-competitive framework.



Value networks

Value networks allow flexibility for knowledge innovation and energy, and are not constrained by functions and processes. A professional service network can be viewed as a value network, which comprises relationships that deliver tangible and intangible value.



Tangible value:

- Reports or marketing materials, brochureware, copy;

- Practice support and business development (BD) tools - group purchasing of professional indemnity insurance, legal libraries, precedents, digital dictation and so on;

- Training - tailor-made, can be delivered at cost in a non-competitive forum;

- Work referrals - internal panels or cross-border associations such as Eurojuris, a European network of member country associations;

- Quality standard - Lexcel or ISO.



Intangible value:

- Reciprocal information exchanges - policies, procedures, presentations, marketing ideas, expertise;

- Know-how - IT infrastructure, systems, HR, finance, BD;

- Recommendations - suppliers, products and services, consultants;

- Collaborations - joint or multiple bids, sub-network clusters such as LawNet East Midlands - five regional firms sharing resources, from knowledge to staff - combined procurement exercises and increasing regional leverage;

- Access to human competence within specialist groups - such as employment lawyers or practice managers, each of which group has 300+ members - tapping into resources within the network.



Areas for collaboration

Do not tackle all the topics below at once - identify three common issues between firms and pursue each one collaboratively.



So, visit another firm or firms and share information on:

- Billing procedures - how they manage lock-up and work in progress, compare recovery rates, identify best practice;

- Staff recruitment and retention;

- Marketing campaigns;

- Succession planning;

- Use of case management and digital dictation systems - how do they utilise resource and work-flow?;

- Business planning (see opposite page);

- Clients - how do they capture client data, cross-sell services, and deliver different types of service?;

- Staffing - could you share resources to cover peaks, holidays and absences?;

- Disaster recovery - reciprocal contingency to use each other's premises/equipment;

- Stationery and other consumables - combined purchasing;

- Training needs - joint training in-house, sharing costs;

- Joint marketing campaigns, seminars, opportunities to offer niche services that complement one another's practice.



You can set up email groups for risk, marketing, HR, IT and finance, share best practice and identify joint opportunities. You can also begin benchmarking - do not just look at what other law firms are doing; look sideways to other service providers, such as banks, accountants, independent financial advisers and surveyors.



You get out what you put in

Whether you choose to form an informal, regional network that is self-administered or pursue national membership with external administration, legal networks can only operate effectively if people engage with the principles of community spirit. Those firms that invest time in building relationships across all levels, sharing knowledge and resources, find the intangible benefits can far outweigh the tangible value. This needs a high degree of trust, participation and transparency between network and member firm.



Helen Simpson is director of member services at LawNet