Wednesday, March 16, 2016

Disrupting Legal Education

Cci[by Rick Bales]

Michele Pistone and Michael Horn have just posted, on the publications page of the Clayton Christensen Institute for Disruptive Innovation, their white paper Disrupting Law School: How Disruptive Innovation Will Revolutionize the Legal World.

The take-away: just as the business of legal services is changing rapidly and radically, so too is the demand for legal education. Either law schools will redefine themselves to capture new markets or they will replaced by other institutions that will.

Here's a portion of the executive summary; the rest follows the page break. Hat tip: Rob Kleine.

Facing dramatic declines in enrollment, revenue, and student quality at the same time that their cost structure continues to rise and public support has waned, law schools are in crisis. A key driver of the crisis is shrinking employment opportunities for recent graduates, which stem in part from the disruption of the traditional business model for the provision of legal services.

Although this root problem will soon choke off the financial viability of many schools, most law schools remain unable or unwilling to address this existential problem in more than a marginal way, as they instead prefer to maintain the status quo and hope that the job market soon improves. In reaction to the growing crisis, most law schools have accordingly continued to focus their attention and energies on maintaining their existing status within the legacy model used to rank and compare law schools: the U.S. News & World Report’s annual law school rankings. In the face of the crisis, the dominant focus of law schools and their administrators has been to retain their school’s ranking so that their school can outlast competitor law schools—some of which, the argument goes, may have to shut their doors—until, in the long run they hope, the market evens out and everything returns to the pre-crisis status quo.

This is a strategy of attrition. By fixing their gaze on maintaining prestige in their juris doctor (JD) degree programs, law schools and their administrators run the risk of overlooking the longer-term impact that the disruption of traditional legal services businesses will have on the provision of legal services and, in turn, on law schools themselves. This is happening at the same time as disruption is primed to take place in legal education itself. As we have seen in industry after industry, disruptive innovations change sectors in ways that do not allow for a return to the status quo. Instead, the changes that disruptive innovations bring are so fundamental that entire products or services are marginalized or, in some cases, even displaced, never to return again.

Continue reading

March 16, 2016 | Permalink | Comments (0)

Wednesday, February 24, 2016

Development for Deans

Case

[by Rick Bales]

Tim Fisher, Kathleen Boozang, Craig Boise, and I each attended the CASE Development for Deans program in San Francisco early this week. I found the conference useful, and will be curious to see how much overlap there is with the ABA's Law School Development Conference. At both, deans are encouraged to attend with their development directors. Though the ABA conference obviously focuses on development for law schools, there was something to be gained by looking at development through the somewhat wider lens of higher education more generally.

rb

February 24, 2016 | Permalink | Comments (0)

Sunday, February 14, 2016

On the Cost of Legal Education

Up[by Rick Bales]

Why is the cost of attending law school high relative to lawyer starting salaries, and rising relative to inflation? Here are three reasons that the scambloggers never seem to mention.

The first is Baumol’s Cost Disease. The idea here is that in certain labor-intensive industries (such as education), there is little productivity growth over time. Car manufacturers automate; farmers have better equipment and pest-resistant seeds; but law school is still taught much the same way it was 50 years ago. Unless and until we see widespread adoption of online learning technology or other types of teaching-efficiency enhancements, the cost of higher education likely will continue to increase more than rate of inflation.

The second is increased reporting requirements. Twenty years ago law schools gave some basic data to the ABA and that was it. Today we collect and give a lot more data to the ABA, and then we format it exactly like they want it for our website, and we do the same for U.S. News, and the transparency movement wants still more. Many law schools now have a full-time data-reporting officer. Our Career Services Director spends almost as much time tracking student outcomes as she does helping students find jobs. Transparency is great in the abstract, and abuses in the past make today’s demands for more transparency reasonable. But all this data collection and dissemination isn’t free – it comes at a cost that ultimately must be paid from student tuition. And the fixed costs of compliance weighs particularly heavily on small law schools that are unable to distribute the costs among a large student body.

The third factor contributing to higher costs is that faculty (and decanal) salaries are influenced by the anomalous bi-modal wage distribution of starting salaries for lawyers. As this chart makes clear, lawyer salaries follow more-or-less a normal bell curve in the $45,000-85,000 range, then spike strongly in the $155,000-165,000 range. The problem for law schools is that many of the faculty we want to hire (especially the folks who can teach corporate, tax, and estate planning law) are in that right-hand spike, and to attract them we need to be at least in-the-ballpark competitive. Even so, although law faculty may earn modestly more than the average (mean, median) starting salary of a practicing lawyer, they earn far less than the lawyers on the bigfirm partnership track.

DistributionCurve2014

rb

February 14, 2016 | Permalink | Comments (2)

Saturday, February 6, 2016

Yellen Leaves Loyola-Chicago for Presidency of Marist College

Yellen[by Rick Bales]

Congratulations to dean extraordinaire (and Law Deans blogger) David Yellen on his appointment, announced today, as President of Marist College in Poughkeepsie, New York. Here's the Marist press release. Marist is a prestigious college on the Hudson River, halfway between Albany and Manhattan, known for its leadership in the use of technology to enhance the teaching and learning process.

David attended Cornell Law School (where he met his wife Leslie), and taught and deaned at Hofstra before becoming dean at Loyola-Chicago where he has served for 11 years. The deans will miss his leadership, wisdom, and wit, as I know will his colleagues at Loyola.

Michael Kaufman (Professor and Associate Dean for Academic Affairs, Director of Education Law and Policy Institute, Director of Institute for Investor Protection) will serve at Loyola as interim dean.

rb

February 6, 2016 | Permalink | Comments (0)

Growing the Pie II: Making a Case for the GRE

Gre[by Rick Bales]

Christine Hurt (BYU) makes a a compelling case at Conglomerate Blog for allowing law schools to use the GRE as a substitute for the LSAT. Here's a quick summary:

[A] lot of stellar undergraduates are choosing not to apply to law school (and not to take the LSAT)... [M]any of them are taking the GRE and going to a different graduate program.  If you could get that cohort to apply to law school easily, then you might be able to persuade them that law is still a great career path... In addition, recruiting folks already in graduate programs or who have completed graduate school to apply may be easier if they don't have to take a different test.  Even trying to recruit someone who has taken neither test to apply to law school would be easier if they could take the GRE.  The GRE is given on a rolling, year-wide basis around the world and even on your own computer.  I just looked online, and I could take the GRE as early as Monday (less than a week from now) a few miles from here or even sooner if I drove 30-45 minutes.  I would have my scores in 10-15 days.

rb

February 6, 2016 | Permalink | Comments (0)

Friday, February 5, 2016

Glocking Bunnies

Bunny[by Rick Bales]

The president of Mount Saint Mary College apparently told some faculty members they need to change the way they think about struggling students, saying “This is hard for you because you think of the students as cuddly bunnies, but you can’t. You just have to drown the bunnies … put a Glock to their heads.” The quote went viral and the president has caught a lot of flak.

But what he’s describing isn’t uncommon in higher education – he was trying to game his college’s numbers by encouraging struggling students to leave before they affected the college’s retention rate. And as bar pass rates drop (at least in part because of declining admissions and entering-student credentials), pressure will increase on law schools to attrit the students most at risk of failing the bar exam before they have a chance to affect the school’s bar-pass numbers. This can be accomplished by dropping the grading curve or by raising the minimum GPA required for continued enrollment.

A reasonable rate of academic attrition is the price of providing opportunities to applicants on the application bubble and enforcing high expectations on current students. But the danger is in using the “opportunity” label to self-interestedly admit students who have little chance of success so the school can fill an entering class. The “opportunity school” approach may have been appropriate 50 years ago when the cost of legal education was, in real terms, much lower than it is today. But asking students to take on mortgage-sized debt for a low-percentage “opportunity” is a different matter entirely.  And disclosure doesn’t cure, because every applicant is confident she will outperform her predictors.

rb

February 5, 2016 | Permalink | Comments (0)

Friday, January 29, 2016

Growing the Pie

Int'l[by Rick Bales]

I found this chart from a recent article in The Economist surprising -- the U.S. significantly lags Australia, Britain, and Canada in the percentage of higher-education students hailing from foreign countries -- and this despite the fact that Britain is actively discouraging foreign students from coming to Britain.

The problem in the U.S. is our visa system. The Economist explains that the U.S. "visa rules are needlessly strict and stress keeping out terrorists rather than wooing talent. It is hard for students to work, either part-time while studying or for a year or two after graduation."

Our system of legal education is widely seen as the gold standard throughout the world. Our law schools need more students. Perhaps this is an area where Access Group can lobby Congress to help ease student visa restrictions and grow the pie for American law schools and all of American higher education.

rb

January 29, 2016 | Permalink | Comments (0)

Tuesday, January 12, 2016

Henderson/McEntee/Shepard Propose Changes to US News' Methodology

Kyle McEntee of Law School Transparency has an interesting post today at Above the Law.  It discusses a letter he, Bill Henderson and former Chief Justice of the Indiana Supreme Court Randall Shepard (who was also the Chair of the ABA's Task Force on the Future of Legal Education) sent to US News in 2014 proposing some changes to the rankings methodology. 

They would get rid of the "faculty resources" factors (the parentheticals are the weight currently given in the rankings to each factor):

  1. Expenditures per Student (9.75%): The amount spent on instruction, library and supporting services divided into total J.D. student enrollment.
  2. Modified Expenditures per Student (1.5%): The amount spent on instruction, library and supporting services, plus financial aid, divided into total J.D. student enrollment.
  3. Student-Faculty Ratio (3%): The ratio of students to faculty members, according to the ABA definition.
  4. Library Resources (0.75%): The total number of volumes and titles in the school's law library.

In their place, they suggest that US News use either:

  1. Expenditures per High-Quality Job; or
  2. Tuition Revenue per High-Quality Job

Expenditures are a very poor measure of any type of academic quality.  Worse, over the years, this factor has undoubtedly contributed to tuition increases, since spending more money on anything marginally helps in the rankings.  My preference would be to get rid of any factor related to expenditures at all.  But given the reality that US News likes to appear "scientific" and probably wants to keep some form of expenditure data, a link between expenditures and job outcomes, however imperfect, would probably be an improvement.

January 12, 2016 | Permalink | Comments (0)

Monday, January 11, 2016

Will Law Firms Go the Way of Kodak?

That is the important question raised by a new report from the Center for the Study of the Legal Profession at the Georgetown University Law Center.  There are important forces at work - globalization and technology in particular - which will shape the legal profession and legal education in the decades ahead.  We in legal education have a real stake in law firms' success.  We need a more productive dialogue than has generally been taking place. 

January 11, 2016 | Permalink | Comments (0)

Friday, January 8, 2016

Some Observations From AALS

I cannot believe it is January already, and that the AALS annual meeting is in full-force. While I have been a critic of the AALS in the past, I am happy to see the progress Judith Areen has made with the organization, since she took over as executive director. The organization has finally embraced technology under her leadership, and she seems genuinely interested in listening to, and working with the member schools. Furthermore, the organization is actively trying to reduce the expenses of those attending the meeting this year. SEALS has always been aggressive in its negotiations with conference hotels, and this year is the first year I felt that AALS negotiated on behalf of its membership.

Some other observations:

  • It is heartening to see that this year's conference has broadened participation by those new to legal education, and that the panels seem to be more inclusive than ever. 
  • The publishing companies and other vendors in the exhibition hall have definitely scaled back on their promotional items, and their receptions for authors have been scaled back, as well. 
  • The publishing companies are much more focused on electronic access, than on hard-copy publication. They have unveiled new products to help law schools with the formative assessment now required by the ABA.
  • CALI continues to be the leader in providing free casebooks, with a goal of cutting student costs. CALI has been the voice in the wilderness for many years.
  • UC Irvine was granted membership in the AALS on January 7. Congratulations to that school for its continued success during challenging times.

January 8, 2016 | Permalink | Comments (0)

Monday, January 4, 2016

Jerry Organ Analyzes Conditional Scholarships

Jerry has posted another interesting analysis, this time of changes in the prevalence of conditional scholarships since the ABA began requiring disclosure of renewal rates.  Again, I would ask you to consider how common this approach to scholarship assistance would be if it were not for U.S. News?  Still, it is a good thing that prospective students now have information about the renewal rate at each school, so they can make more informed decisions.

January 4, 2016 | Permalink | Comments (0)

Tuesday, December 29, 2015

Jerry Organ Analyzes the Law School Transfer Market

Very interesting look at the data.  This year, about 2000 law students transferred.  As a thought experiment, how much lower do you think that number would be if transfer students were counted in U.S. News data?

December 29, 2015 | Permalink | Comments (0)

Sunday, December 27, 2015

NY Times Article on Two Year JD

The NYT has an article noting the lack of success of the 2-year JD movement. http://www.nytimes.com/2015/12/26/business/dealbook/the-2-year-law-education-fails-to-take-off.html

December 27, 2015 | Permalink | Comments (0)

Thursday, December 17, 2015

New Experiential Training Requirement for Admission to NY Bar

The press release is here and the new rules are here.  As a general matter, I do not like the proliferation of state-by-state requirement beyond the ABA Standards for admission to the bar.  I particularly don't like NY's pro bono requirement, which I think is unfair to law students.  I would first impose a pro bono requirement on admitted lawyers.  I do have some sympathy for skills requirements like these new rules because they are closely linked to one's ability to practice law competently and the ABA has been slow to evolve in this area.    I wonder, though, if Pathway 1 in NY will swallow up the rest of the rule.  What law school will not certify that its graduates are ready to practice?

December 17, 2015 | Permalink | Comments (0)

Friday, December 11, 2015

Crisis in Chicago

If you interested in what has been going on in Chicago since the release of the video of the shooting of Laquan MacDonald, I did a BloggingheadsTV discussion with Glenn Loury. 

December 11, 2015 | Permalink | Comments (0)

On College Presidents and Closing Law Schools

Sale[by Rick Bales]

I wanted to riff on a couple of David Yellen's recent posts, one noting the relative paucity of law school closures given recent application/enrollment declines, and the other noting the increase in the hiring of non-academic university presidents.

Regarding law school closures, I think the real question is not why more law schools haven't closed, but why more law schools haven't moved or been sold. Texas A&M's acquisition of the former Texas Wesleyan law school, discussed extensively in the most recent Journal of legal Education, shows this can be done, and at great profit to the selling institution. Among other things, I suspect that a sale would allow the selling institution to monetize the present value of much of the sold law school's endowment. More importantly, it would move law schools to parts of the country that are underserved legal education markets (and where a law school would be a valuable acquisition for a university) from parts of the country that have too many law schools relative to population and demographic trends, where the current value of a law school to a university is financially negative. Yes, there are regulatory/accreditation hurdles to overcome, and alumni will have to be assuaged, but neither are by any stretch insurmountable obstacles. 

Regarding college presidents, in my very limited experience, the most obvious academic stepping-stone to a college presidency is being a college provost. But at least at the institutions with which I am most familiar, the skill set required of a successful provost (accreditation, curriculum, acute attention to detail)  is radically different from the skill set required of the modern college president (external/alumni relations, fundraising, budgeting, big-picture vision, ability to balance the university as a business with the university as an institution of public service). Except for the last of these, all of these skills seem to align better with someone who has leadership experience in the business world -- or leadership of a relatively autonomous professional school like a law school -- than with someone who has experience as a provost. Maybe universities are looking for presidents in all the wrong places.

rb

 

December 11, 2015 | Permalink | Comments (0)

Thursday, December 10, 2015

Why Are Fewer College Presidents Academics?

Interesting article in The Atlantic.  Of course, we have seen a similar trend in the hiring of law school deans.  My completely unscientific observation is that law school deans who have come from outside of the academic world have a "success rate" roughly the same as that of deans from within the academic world.  I wonder if that is really true, and whether there is a difference in the success rate of outsiders for Presidents and Deans.

December 10, 2015 | Permalink | Comments (0)

ABA Approves William Mitchell/Hamline Merger

Here.  Will there be other similar moves, or school closures?  It is pretty remarkable that no law school has closed during this crisis.  Compare that with dental schools, which experienced a dramatic decline in applications and enrollment from the late 1970's to 1980's.  During that time, 6 of the 60 dental schools closed.  In recent years, though, applications have been increasing (almost back to the level of the late 1970's) and some new schools have opened.  Are Universities just more committed to "waiting it out" with law schools?

December 10, 2015 | Permalink | Comments (0)

Tuesday, December 8, 2015

Student Demands at Harvard Law School

In case you missed it, here are the demands that a group of students and staff presented to Harvard Law School on Friday.  The "deadline" for the school to agree to the demands passed yesterday.  It is hard to imagine that Harvard will be the last law school to face this type of challenge.

December 8, 2015 | Permalink | Comments (0)

Friday, December 4, 2015

Loyola Chicago's New Part Time JD Program: Alternate Weekends Blended With Distance Learning

I am pleased to announce, that we (Loyola Chicago) are transitioning our part-time program from an evening based model to a flexible weekend, blended learning model.  The main features are these:

*students will attend classes on campus seven weekends per semester;

*1/3 of the work for each course will be done through distance learning.  This will include lectures, chats, assessment activities, etc.;

*a broad curriculum, taught by full-time faculty and including a range of experiential learning opportunities, will be offered

We have been offering online Masters of Jurisprudence and LL.M degrees for five years.  We have learned that online teaching, when done properly, can be as effective as in-class instruction.  We believe that this flexible format will appeal to modern, busy adults interested in pursuing a law degree part-time.  As structured, the program is in compliance with all current ABA Standards.

More information is available here.  Stay tuned!

December 4, 2015 | Permalink | Comments (0)