Legal Networks Roundtable: Talking 2020 and Beyond

Law firm networks are today a critical part of the legal industry globally. In this roundtable, senior representatives of four leading networks talk about how they are going the extra mile to get member law firms future-ready, assisting clients to cope with changing global business conditions, and setting strategies and goals for the coming years.

What are the key priorities for your member firms at present, and how have you as a network enabled them to make strides in this area?

Adam Cooke, executive director, Multilaw: A key priority for our firms is ensuring that they are fully capable of meeting the ever-increasing international needs of their respective client bases. The fact that Multilaw can offer quality coverage in over 100-plus countries (and counting) is an indispensable benefit to our member firms. Members consistently tell us that the volume of their international work is increasing and credit their membership of the network in large part for the increase.

Tim Brown, chair, TerraLex: Our member firms seek to gain competitive advantage as independent law firms over a myriad of competitors, especially the large global law firms. Research and anecdotal evidence show that often, general counsel and their teams prefer leading independent law firms for reasons such as flexibility, true local connections, responsiveness, and cost-efficiency. These firms also need to be able to support clients anywhere they need outside counsel assistance or anywhere they have a multi-jurisdictional need. By joining up with other leading, vetted independent firms through TerraLex, our members can fill their clients’ needs. In a recent general counsel panel discussion, the GCs made it clear that a virtual team of networked law firms who utilise sophisticated project management are preferable to a large global firm because there is less costly friction between independent firms, the members are better equipped to hold each other accountable, and if there is a problem with one firm, it doesn’t affect all the firms working on a project. We work closely with our members to help them identify and leverage opportunities to assist clients when they have multi-jurisdictional needs. Often our team will present to a member firm’s clients when visiting them to help those clients better understand how their outside counsel’s TerraLex membership can benefit them and make their job easier. It is a message that increasingly resonates with in-house counsel, who seek to streamline the selection of outside counsel, some-thing a network can facilitate through our vetting processes, global footprint, and quality control efforts.

Glenn M. Cunningham, chair, Interlaw: One of the core priorities for our partner firms is to retain and deepen their relationships with their clients. As independent firms, one of their key strengths is the knowledge and expertise of their local markets and cultures. As a result, they are trusted partners for their clients. Where our global legal network can make a real difference, is where our firms have clients that want to expand into new markets. As their clients’ ambitions grow, the reach of the Interlaw network ensures that our partner firms can support their clients as they “travel the world.” Thanks to the strong collaborative relationships between the firms in our network and our truly global reach, our firms are confident that they can work with fellow Interlaw firms, safe in the knowledge that their international colleagues will provide the same high-quality service and advice to their clients that they provide. Another key focus for our partner firms is growth, both domestically and internationally. Over the past year, we have concentrated on providing the right infrastructure to enable firms to confidently pitch for both international and domestic work together – work that perhaps would have been out-of-reach without being part of our network. For example, a U.S. partner firm recently successfully pitched for a project that required specific expertise in stadium development. The firm connected with two teams within other partner firms that had specific expertise in this area of law and together, they were able to pitch seamlessly to deliver a winning solution for the client. This demonstrates that, for our firms, being part of an elite global network, where they work together seamlessly in collaboration, providing clients with local expertise, specialist services and global reach - allows them to go toe-to-toe with the ‘big law’ model. Networks are increasingly agile, digitally enabled organisations that are able to service the most complex, multi-jurisdictional client needs.

With the U.S.-China trade war casting uncertainty over the global business landscapes, and conglomerates hedging their bets by establishing supply chains in new jurisdictions, what are some of the ways networks can help firms to reach across geographical distances?

Cunningham: Interlaw already has an established network of partner firms in more than 150 global commercial centres. This means that we have unparalleled knowledge of both emerging markets, and strong links and insight into major markets. Each of our firms is established in their jurisdictions and has both in-depth local legal expertise, and deep knowledge of the wider economic and political land-scape affecting their market. The reassurance of this valuable local insight is hugely beneficial for clients, particularly in markets that are new for their organisation. When looking at the U.S. and Asian markets, the way the network model is set up allows close working relationships to be fostered, regardless of wider political and economic factors impacting particular jurisdictions. Looking at China specifically, we hosted our annual global meeting in Beijing this year, which provided a great opportunity for our partner firms to come together in this important jurisdiction and discuss important polit-ical and legal changes. One of the many reasons our links remain strong is due to the policy of visiting with partner firms in their jurisdictions so that our lawyers understand their culture and working practices better. This leaves us in a strong position to drive collaboration when the opportunity arises and provides fully rounded international lawyers, well versed in dealing with multi-jurisdictional projects and practicing and delivering legal solutions in a multitude of locations worldwide.

Cooke: Whatever barriers geopolitical situations might throw up businesses still need to trade across borders and it is the job of our firms to ensure that that trade still happens one way or another. With their deep local connections and long histories, our firms have proved remarkably resilient in the past in the face of such challenges and I have no doubt that will continue to be the case in the future. We like to think our law firms maintain a can-do approach and make things happen.

Brown: TerraLex has an infrastructure that strongly supports our member firms reaching across geographical distances including the following:

Regional conferences that bring members together to strategize collaborative business development and innovative ways to help their clients. Our next regional meeting in the Asia-Pacific region is in March 2020 in Singapore;
More than 20 practice groups and industry sector teams. Leaders and members of these groups come from all over the globe. Their collaboration is enabled through our HighQ intranets: each team has its dedicated site. These groups also convene meetings during our global meetings, on a standalone basis, and in connection with industry trade associations;
Global meetings twice a year so members in the region also have a chance to work closely with members from every other part of the globe. There are sessions at our meetings to facilitate this collaboration, such as our Global Client Connector program;
Focused staff support. TerraLex’s marketing and business development team consists of six professionals with significant experience working with law firms. We regularly have representation in the Asia-Pacific region. Our staff develops and help members implement action plans that are specifically focused on engaging with other members across the world to benefit clients;
Thought leadership. through the practice group and industry sector teams, our members collaborate to create useful information for clients with business interests in the region. For example, our website features several cross-border guides on topics ranging from labour and employment, to mergers and acquisitions, and more. Visitors compare across jurisdictions and create a bespoke version of any guide. Early in 2020, we will launch a cross-border guide covering “Doing Business in Asia.”

Eric Staal, Vice President, Business Development, Lex Mundi: Over the past 18 months we’ve seen a significant increase in emerging markets, especially those in Central and Eastern Europe, Africa and Southeast Asia. This is particularly true with Chinese and Japanese clients, who aren’t just relocating supply chains but are also targeting new consumers in high growth areas. Indonesia, for example, which is home to the fourth-largest consumer market in the world, is of great interest to Chinese investors. So too are many of the high value, strategic infrastructure projects opening in the CEE region. Such interest represents great opportunities for our member firms in these jurisdictions, but their challenge lies in how to target clients in countries where they have no presence. This is where Lex Mundi comes in. We take a very proactive approach to help our members target cross-border business. We have a global business development team with resources in Asia, Europe, North America and Latin America, whose job it is to connect clients and firms around the world. One of the most effective ways to target overseas clients is through several firms working together, collabo-rating under the Lex Mundi umbrella, demonstrating that although each firm is independent it has truly global reach. Our boots-on-the-ground business development resources make this possible. This year, for example, our business development team has brought firms from Latin America, the CEE region and Southeast Asia come to China, putting them in front of hundreds of potential clients. The great thing is that we have such comprehensive coverage around the world, with such a tight-knit community of members, that collaboration between firms in different regions comes very easily.

What are some of the important training and development programs the network has for its member firms and lawyers?

Staai: The Lex Mundi Institute (LMI), our flag-ship professional development program, provides training in how to deliver superior results to clients. The various intensive training programs offered through the LMI are designed to assist both junior and senior associates in their cross-border practices, and new partners and firm leaders in their management and leadership roles. These custom-designed programs include both skills and substantive training and are led by carefully selected and experienced professionals from around the globe.

Because Lex Mundi member firms from all juris-dictions send their most promising and accomplished lawyers to the LMI, the interaction among participants is an exceptionally professional and multi-cultural experience. During their week spent together, participants can establish valuable professional networks and lifelong friendships. These relationships are all the more relevant when lawyers from client organisations attend (as often happens) – not only do they provide valuable insights from the client perspective, but the networks formed at the programs help smooth future working together. In addition, the skills learned on the programs are invaluable resources for in-house lawyers to take back with them to their departments and colleagues.

Cooke: Our Young Lawyers Group is generating real excitement in the network. They have a mandate to be bold and disruptive and I see that group as being key to ensuring the network remains relevant in a fast-changing legal environment.

Brown: We offer many opportunities for lawyers to develop through TerraLex and will launch even more next year through a catalogue of training that is presently in development. Some of our recent offerings include a bespoke leadership training program held in conjunction with Harvard Law School’s Executive Education division that included 40 TerraLex members. Similar programs are in the planning stages - our practice groups and industry sector teams routinely bring in guest speakers and trainers to address their groups. Additionally, members co-conduct webinars on substantive legal topics, which are open to any other members and their clients. One to two times per year we also host a business development forum to train lawyers and other professionals in this area. Our most recent program included speakers from Acritas discussing sector marketing. We have a mentoring program through our Women’s Global Connection, through which individuals are paired with other members in another jurisdiction and they meet regularly through virtual means to assist each other with professional and personal development. Finally, TerraLex hosts a Managing Partner’s Roundtable twice a year, giving the leaders of our member firms a chance to learn from industry-leading experts on subject of interest. For instance, this year, Terri Mottershead, Executive Director of the Centre for Legal Innovation, covered Reinventing Legal Practice with the group.

Cunningham: Using the scale of our network, Interlaw has been able to develop bespoke world class training programs, designed to elevate partner firms above their direct competitors and equip them with the tools needed to compete in their local markets as well as on the global stage. This is a key benefit of being part of the Interlaw network, and we provide a full suite of tools for our partner firms – both online and offline. For example - in 2018, in partnership with The Møller Institute at Churchill College at the University of Cambridge, Interlaw developed and launched its first executive education curriculum for partner firms. The first course took place in September 2019, and as a result of its success, we will be running a second course in 2020. Targeted at partner-level lawyers, the residential three-day program is designed to give access to the highest calibre leadership training to support our partners and colleagues in the growth and development of their firms and the Interlaw network. Each year, we also review and set a theme to give additional structure to our annual meeting program. In 2020, this theme will be ‘project management’, which will support our continuing focus on collaboration between partner firms to deliver seamless service to clients. We also continue to run a highly immersive events program, which puts clients front and centre - giving member firms the opportunity to hear first-hand about the challenges and needs faced by multinational corporations, as well as building closer connections with member firms and their clients. Our global events give clients a plat-form to discuss the issues facing their businesses as well as giving our partner firms useful insights from a commercial perspective.

As the legal market rapidly changes, what are some of the strategies you plan to put in place to (a) develop the reach and influence of the network and (b) better assist member firms in the coming years?

Brown: We have many strategies in place and will also conduct a review of our strategic plan in the coming months to identify any further areas of opportunity. Currently in place and developing are the following:

We have added business development and sales personnel whose role it is to help our members maximise client opportunities, as well as to increase member to member engagement. Already our member collaboration is at an all-time high and building.
Our members and their clients are committed to a diverse and inclusive (D&I) industry. We recently partnered with Acritas (now part of Thomson Reuters) to conduct a global study of D&I, with close to 100 law firms participating. Following the recent presentation of findings at a TerraLex Global Meeting, we are now developing a white paper that helps our members understand the client perspective and expectations for D&I and helps them learn best practices from each other.
We have related initiatives in place or about to be launched such as a women’s mentoring program, training, and peer-to-peer idea and information sharing through our HighQ technology platform.

Cooke: As the needs of clients become increasingly more sophisticated it is imperative that our firms can rely on each other to deliver to the same high standard wherever the firms are located around the world. It is imperative when the network is looking at new firms that our due diligence process is thoroughly adhered to and that we have robust quality control measures that apply to our existing members.

Cunningham: Now more than ever, elite global networks can offer a real alternative to the inter-national law firm model. Our research has shown that general counsel are less concerned about the delivery model, they just want to be confident they will receive quality advice in the jurisdictions in which they operate. That’s why it’s been important for us to focus heavily on strengthening the existing connections and relationships between our partner firms around the world. While we still have ambitious plans for expansion, we must have infrastructure in place to facilitate seamless collaboration between our firms that will serve the needs of the client now and into the future. During the past three years, we have invested significantly in our infrastructure to foster a true culture of collaboration across the network. We introduced a market-leading digital client management platform that allows live-tracking of projects and works being carried out collaboratively around our network. It also includes a central hub of expertise where our partner firms can share knowledge. As a best practice tool, we believe this will also support our partner firms’ digital ambitions. It’s a ground-breaking change, which we believe is a first for a global network - allowing the network model to fulfil its potential and to provide clients with an alternative legal solution to international law firms. We also created an Interlaw app and a new website, with an easy-to-use ‘connect to a lawyer’ button, which allows instant access to our experts across the world. We now operate in a world where clients want borderless, tech-savvy, enterprising and accessible legal services providers that can combine global reach with in-depth local expertise. This means, that while growth is important, we need to make sure that it is done in a sustainable way – and we’ll do this by providing the best-in-class infrastructure for our partner firms to seamlessly collaborate.

Looking ahead into the new year, what are some of your plans and projects for 2020?

Cunningham: The past three years have been about implementing a truly transformational digital infra-structure to allow our partner firms to collaborate seamlessly. The results of this in terms of increased collaboration on successful pitches and the sharing of expertise – is now coming to fruition. In 2019, our focus was on providing our firms with the tools and platforms they needed to work together to win inter-national pitches. 2020 will see an evolution of this, as well as a new global training program, including webinars, online learning and events - focusing on effective project management. We will also have the second intake of our highly successful partner-ship with the Møller Institute at Churchill College, University of Cambridge. We are committed to investing in our network to provide the best possible platform to enable our partner firms to compete on a global stage.

Brown: We will begin the year by refreshing our strategic plan. The results of that work will direct our focus, besides whatever is determined after listening to our members and their clients. We are launching a unique technology-based referral tracking system, that is the first of its kind for a law firm network. We will also launch a member and client app, designed to make important contacts and information readily available through mobile devices. Additionally, we have more than ten regional meetings already on the schedule and expect to add a few more. There are two global meetings planned (Oslo and Mexico City). We will also implement TerraLex’s new training and education program for our members. Additionally, we will continue to build our brand through a variety of programs and initiatives. Our outreach to the general counsel and client community will deepen through our continued involvement with the Association for Corporate Counsel (ACC) and our direct outreach, and we expect to add up to five new members in various locations across the globe.

Cooke: We are celebrating our 30th anniversary in 2020 and we will have a new look and feel with an emphasis on video. We aim to look forward and want to engage more with general counsel and others around the world we haven’t reached yet who might benefit from the services we can offer clients with international needs.

Staal: Much of our focus for 2020 will be around technology. Lex Mundi is the first and only network to have dedicated professional resources supporting member firms - both individually and collectively - to accelerate their update of new technology and innovation approaches to the delivery of legal services. The starting point for Lex Mundi is excellence in cybersecurity; in 2020 we will be once again updating our Core Standards and Recommended Practices for member firms and continuing to offer user awareness training (now in four languages) at no charge to member firms. Consideration is also being given to conducting website security reviews as part of a monitoring program. We have additional staff resources and funding in 2019; as a result we will expand a number of initiatives including: Our use of HighQ’s Collaborate to support member firms working together to serve clients and sharing knowledge between firms; expand the number of member firms piloting the use of Diligen’s contract review; conducting an “heat map” inventory of which member firms are using what technologies – and where they are interested in new software; a set of “knowledge packs” providing digital resources to support member firms in matter scoping, matter management, and matter feedback. Stay tuned for significant new announcements that will be made in early 2020 about how member firms will be lever-aging technology and processes to better serve clients in cross-border matters.