Offices or Networks? Making networking work

Latin Counsel - IBA Annual Conference, Mexico City 2024,  September 19, 2024

In the legal world, alliances and law firm networks have gained relevance as client demands become more global and specialized. During the recent International Bar Association Global Conference in Mexico, leading figures from international law firms discussed the advantages and challenges of alliances and networks, offering a comprehensive view of how these connections can strengthen both practice and business relationships.

The panelists included:

• Aku Sorainen (Sorainen, Estonia)
• Carlos Bello (BGBG, Mexico)
• Luis González (Pérez Correa González, Mexico)
• Nadège Nguyen (Gide, France)
• Paul Marmor (Sherrands, UK)
• Sophia Rook-Blackstone (Alliot Global Alliance, UK)

The Evolution of Alliances

Aku Sorainen  emphasized how his firm’s strategy has evolved to build healthy and lasting relationships with international firms. However, he warned that independence could be threatened in the process. The key, he explained, lies in finding quality international law firms and establishing mutually beneficial business relationships.
Luis González  highlighted three main benefits of belonging to an alliance: first, creating a trusted environment; second, the ability to receive and send referrals with the assurance that clients will be well taken care of; and third, defending client trust and relationships through quality and passion. Moreover, he stressed the importance of connecting with smarter people who can look after clients, as relationships must be well-managed to ensure the alliance’s success.

Investing in Relationships to Gain Benefits

For Nadège Nguyen, the main benefit of an alliance is that "you get what you invest." Attending meetings and building a network is crucial. She also highlighted the importance of sharing best practices and tools among firms, and the creation of groups in specialized areas such as M&A, IT, and AI. These alliances allow firms to share compensation and management structures, fostering growth and cohesion.
Carlos Bello agreed that alliances also help create long-term friendships and trusting relationships. Friendship builds trust, which facilitates honest and transparent feedback between firms, allowing for an open exchange of ideas and strategies.
Sophia Rook-Blackstone emphasized how alliances can save time and provide credibility when advising clients in multiple jurisdictions. These relationships provide essential support, helping firms serve their clients efficiently and with quality.

Quality and Control: Key Factors in Alliances

One of the key points raised during the conference was the need for quality control within alliances. This control process is what builds trust among members. Luis González pointed out that although quality firms can be found outside alliances, referrals won’t come in the same way if you are not part of a network.
Paul Marmor added that being part of an alliance also provides credibility when attracting new talent. The relationships built within a network are key, and strong alliances can enable greater transparency and collaboration.

Challenges of Alliances

Despite the many benefits, the panelists also addressed the challenges. Carlos Bello warned that an alliance should not be exclusive, as firms need the flexibility to work with multiple partners. He also stressed that time invested in the alliance is crucial: if no time is dedicated, nothing will be gained. While this isn’t a negative aspect, it is a challenge.
Nadège Nguyen mentioned the importance of balancing independence with the cost of belonging to an alliance. Relationships require time and effort to develop, but the results can be highly rewarding.
Paul Marmor remarked that while a good alliance can be a valuable investment, firms need to be careful and strategic about the long-term costs and benefits.

Q&A

During the Q&A session, David Gutierrez (Managing Partner at BLP) asked about the experience of expelling firms for lack of quality. Sophia Rook-Blackstone responded that quality is paramount, and service expectations are very clear within alliances. As part of this control, alliances must adapt and evolve as their members do.

Nadège Nguyen added that networks like Lex Mundi conduct annual reviews, and in some cases, have asked firms to leave the network for not meeting standards.
Finally, Luis González compared alliances to a marriage or a working relationship, where both the members and the network must conduct due diligence to ensure the relationship works long-term.

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