Whenever hear something like this, I immediately think of the scene in the movie Office Space where there is a banner hanging over the staff that asks "Is This Good for the COMPANY?" The Draconian concept of stiffling innovation and individuality and relying upon following every rule and playing your part as a single cog in a great big machine. With "The Firm or The Club" question, however, I don't think it falls into this "Is this good for the Company?" category. Instead, I think it allows for creativity and innovation and discourages the collective and blindly following the rules. In fact, I would say that this question gets raised whenever new ideas and innovation are shot down rather than when new ideas are accepted. Most times when new ideas are dismissed, it tends to fall under the idea that "we can't do that because Partner X, who has been with the firm for 150 years, wouldn't like it."
So the next time you have a discussion about changing the way you are doing business, and the idea is challenged or dismissed, ask those making the decision if they are deciding upon what benefits the firm, or what benefits the club?