How has the pandemic and the flexi-working revolution affected the network model?
A feature
of our network has always been close personal relationships. We meet as a group twice a year and many members meet up both professionally and socially in between so not being able to get together was a challenge. Like individual firms we tried to keep in touch with online meetings. Although it was good to see people it was certainly not the same as physically getting together and having the “water cooler” moments between formal meetings that are the natural result of a physical meeting. Online meetings tended to be more formal and focussed which meant that some of the serendipitous opportunities were missed. One good thing that did come out of this was that we all became more adept at managing online meetings and realised their potential. Post covid although our normal meetings have returned we have continued to use regular online meetings for subject specific working groups
How are networks adapting to fit into the post-covid world?
We have definitely seen some changes. Many firms have reassessed their business model and in some cases have sought to change the focus of their work or to seek mergers. A number of older partners have decided to retire and tragically one of our members lost a number of colleagues to covid. We have to address not only a desire for different working models within our firms but also that clients have changed how they want to work. Business has become less formal and much more has moved online. Because of the ease of bringing people together online we are seeing more teams coming to the “meeting” when in the past it might be just one or two people. While this may have advantages in some situations it does tend to make meetings longer!
What are the key differentiators your network offers?
Cicero has a close relationship with Clarkson Hyde Global an accountancy network greatly simplifying cross border deals. We also have a Junior League where up and coming lawyers who are not yet partners can start to develop the global network to support their future careers. They
can learn about other jurisdictions and in some cases spend some time in the offices of other members. There is an added advantage for juniors in smaller firms in that it gives them people of their own age to share ideas and concerns with that they may not be so comfortable discussing with older people in their own firm
· Have client perceptions of networks shifted in recent years? Clients are becoming more cost conscious which will naturally guide them towards networks rather than going to a major international firm with its own offices around the world as they perceive that as being more expensive but if they do choose a network they want to be confident that the project can still be run smoothly and that their usual lawyer who knows their business can oversee the international aspects.
What are some of the key issues currently facing clients and how are networks positioned to deal with them?
Costs are probably the biggest concern for most clients. They are looking to work smarter and want to see that their advisors are too. The growing costs of doing business may mean they are looking to structure their deals differently or may have put off hiring additional people so may be struggling to handle the logistics of the transaction. A lawyer who really knows their business can help them explore their options and can also take on much of the management of the transaction. Midsized businesses may only go to a major global firm occasionally so no matter how engaged that lawyer they are unlikely to understand the business in the same way as their usual lawyer however if that usual lawyer is active in a network then they can provide those services directly and there is no need to bring in a global firm
What do networks offer that global firms do not?
A network can offer more choice. A global firm will normally be obliged to send work to its own colleagues in other countries while with a network the client’s usual lawyer that knows their needs can make a judgement as to whether the network partner is suited to addressing that issue or whether an alternative supplier should be instructed – often with the help of the local partner who can help identify someone with the appropriate skills. There is also usually a cost benefit in going to a network where you can expect to be charged at local rates and not at a blended international rate
What types of work are increasingly being won by networks over firms without such connections?
This will vary from market to market but ambitious companies who are looking to grow from their home territory but perhaps lack the overseas contacts to hire lawyers locally are attracted to firms that can handle that for them. Even if they do not yet have international work they may well be planning for the future and see outward looking firms as reflecting their own ambitions and able to handle their work over the long term
How are networks changing the way that they promote themselves?
At one time I think there was a tendency to promote a network by the number of members it had or the number of jurisdictions it covered but clients are much more sophisticated now and are more interested in whether the network will work for them rather than the fact that it can offer support in a country they are unlikely to ever trade in. What you need to show is that the firms in the network have key features in common so that if a client is happy with one firm they can be confident that they will get the same sort of service from similar firms in the rest of the network.
There is of course the whole question about whether you promote the network or the individual firm. This is something that we have discussed as a network and the clear preference was to promote individual firms rather than the network. One of the strengths of the network is that our members while sharing common values have distinct personalities of their own and we would not like to lose that with everyone subsumed under the same branding Membership of our network is a feature of our member firms rather than the individual firms being features of the network. Our clients tend to be independent businesses with hands on owners and they are attracted to our more boutique individualistic members
What types of firms should be considering joining a network?
If you have clients with international ambitions then a network may be beneficial for you. Being able to offer clients assistance around the world from people that you actually know well rather than firms you have found through a directory or occasionally at conferences is hugely valued by clients. As with most things however you get out what you put in. More active members tend to reap greater benefits – other members get to know them and what they can offer however it goes beyond referrals. Being an active member of a network is an opportunity to learn from others, to organise joint events and tenders and to pick up new ideas. It may also be seen as a defensive move: firms in small jurisdictions are unlikely to pick up as many referrals as say a US member but by showing clients that they are outwards looking and can cover cross border projects they give themselves an advantage over others in their home market
What is the future for the network model – which networks are best positioned to thrive in future?
Firstly you need to consider what do you mean by thrive? It has to be more than just having a large group of members or counting how many referrals are made. A thriving group has to have members that are active and that are getting value from their membership. This could be from overseas in comparison to local competitors or it could be from the sharing of business ideas with similar firms. We like to think it is a combination of all these things and are constantly looking as a board at how we increase value.
Your England-based member firm is currently Surrey-based firm Downs Solicitors. Tell us more about that relationship – would you ever consider adding other English firms to the network?
Our articles prohibit more than one member per country other than in the US where we are currently represented on both the east and west coast however that said Downs are a terrific member with a wide ranging practice so we really have no need to look elsewhere. They are used to working with international clients and provide an excellent service. Cicero rules do not oblige a member to send work exclusively to other members of the network so if some specialist service was required that Downs could not provide or if they were conflicted on a particular project the work could be referred and Downs would assist the other member in finding appropriate representation if the other member did not have a suitable contact
Cicero is affiliated with accounting network Clarkson Hyde Global. What does that relationship offer your law firm network, and how closely do the two work together?
Having a relationship with an international accounting network is very helpful as it means we can quickly pull teams together for cross border projects. The relationship has grown over the years and we now share marketing resources and attend each others conferences and social events. This autumn we are taking the relationship a step further with a joint conference in Vilnius where in addition to our own sessions we will be offering local businesses an opportunity to meet and get advice from lawyers and accounts from across our two networks. This is an exciting innovation and has come out of the close working relationship between our respective member firms in Lithuania. In many countries our offices are regular collaborators as one can open doors to the other. In Norway the two businesses even share offices
What have been the most recent law firm additions to the network, and what was the thinking behind those moves?
Our most recent additions have been Morris Law in Sweden and Lex Ajia in India. Morris Law are regular collaborators with Hulaas, our Norwegian member so when a vacancy arose it was natural that we should invite them to join us. They are well known for the quality of their work and are totally aligned with our values so we were thrilled when they agreed to come on board. Lex Ajia approached us when they noticed our previous member had left due to a merger with a much larger firm. They are a young firm with strong ties with Japan where we are also seeing business growth so we look forward to their insights on the potential there too.