Thursday, September 18, 2014

Cassidy on Reforming the Law School Curriculum From the Top Down

Mike Cassidy at the Boston College Law School has an interesting essay on curricular reform forthcoming in the Journal of Legal Education.  Here's the abstract:

With growing consensus that legal education is in turmoil if not in crisis, law schools need to take advantage of industry upheaval to catalyze innovation in the way they train their students. Curriculum reform, long the “third rail” of faculty politics, is now essential if some law schools are going to survive the present tsunami of low enrollments and stagnant hiring. One cautiously optimistic note within this doomsday symphony is that law school deans are now in extremely strong bargaining positions with their faculties and boards of trustees with respect to curriculum innovation.

In this essay, the author proposes a pivotal reform to the third year curriculum involving team-taught “Advanced Legal Problem Solving” workshops in subject specific areas, and describes the precise structure, content and staffing of such capstone courses. He argues that such workshops would significantly enhance the preparation of law students for entry into the profession, and would create an efficient and cost-effective route for law schools to satisfy rigorous new ABA accreditation standards regarding experiential learning and outcomes assessment.

September 18, 2014 | Permalink | Comments (0)

Thursday, September 4, 2014

Artificial Intelligence and the Law

Plexus, a NewLaw law firm based in Australia, has just released a new legal product that purports to apply artificial intelligence to a relatively common, discrete legal issue -- detemining whether a proposed trade promotion (advertisement in US parlance) is in compliance with applicable law. 

In the video below, Plexus Managing Partner Andrew Mellett (who is a MBA, not a lawyer), observes that this type of legal work would ordinarily take four to six weeks to complete and cost several thousand dollars.  Mellett claims that the Plexus product can provide "a legal solution in 10 minutes" at 20% to 30% of the cost of the traditional consultative method -- no lawyer required, albeit Plexus lawyers were the indispensible architects for the underlying code. 

From the video, it is unclear whether the innovation is an expert system -- akin to what Neota Logic or KM Standards are creating -- or artificial intelligence (AI) in the spirit of machine learning used in some of the best predictive coding algorithms or IBM's Watson applied to legal problems.   Back when Richard Susskind published his PhD dissertation in 1987, Expert Systems In Law, an expert system was viewed as artificial intelligence--there was no terminology to speak of because the application of technology to law was embryonic.  Now we are well past birth, as dozen of companies in the legal industry are in the toolmaking business, some living on venture or angel funding and others turning a handsome profit.

My best guess is that Plexus's new innovation is an expert system.  But frankly, the distinction does not matter very much because both expert systems and AI as applied to law are entering early toddler stage.   Of course, that suggests that those of us now working in the legal field will soon be grappling with the growth spurt of legal tech adolescence.  For law and technology, it's Detroit circa 1905.  

September 4, 2014 in Blog posts worth reading, Current events, Data on legal education, Innovations in law, New and Noteworthy, Structural change, Video interviews | Permalink | Comments (1)

Sunday, August 24, 2014

Ahead of the Curve: Three Big Innovators in BigLaw

Nashville, TN.  It is time to put down the broad brush used to paint BigLaw as inefficient and out of touch.  At least for me, that is the big takeaway from the 2014 International Legal Technology Association (ILTA) conference, which took place this past week at the Gaylord Opryland Hotel in Nashville and included nearly 2,000 lawyers, administrators, staff, and vendors from around the world.

My takeaway is based on what I saw during the presentation session for the ILTA Most Innovative Law Firm Award.  The three finalists all qualify as big:  Bryan Cave (985 lawyers), Seyfarth Shaw (779 lawyers), and Littler Mendelson (1002 lawyers). Presenters from each firm had 15 minutes to share their innovations followed by 5 minutes of Q&A.  Afterwards, ILTA members in attendance casted ballots for first, second, and third place.

Kudos to Bryan Cave, Seyfarth Shaw, and Littler Mendelson for publicly sharing their innovations, as it demonstrates a commitment to the broader legal profession.

In this post, I will describe the salient points of each innovation. I will err on the side of detail because, when it comes to innovation in the legal space, there is a short supply of “guts of the operations” commentary.  I will then offer some macro-level observations.  As it turns out, BigLaw has on balance a surprisingly good hand to play.  Many will thrive, but at the expense of taking market share from the rest.

Bryancave

Bryan Cave

Presenter: John Alber, Strategic Technology Partner

Bryan Cave has developed an ingenious and highly efficient way to educate its lawyers on the economics of its business.  Prior to the presentation, I was familiar with the firm’s investment in a rigorous cost accounting system to guide the firm’s strategy and operations.

Yet, to get the full benefit out of such a system, the understanding needs to filter down to the individual lawyer-timekeeper level so that each lawyer-timekeeper can use the superior data to allocate time and effort in ways that strengthen the enterprise.  Even in the year 2014, many successful and skilled BigLaw lawyers confuse revenues with profit. And the confusion is understandable because portable books of business, which tend to be measured in terms of revenue, drive the valuation of lateral partners.  See Henderson & Zorn, Of Partners and Peacocks, Am. Law., February 2014.

Based on what I saw at ILTA, such confusion appears to have been substantially eliminated at Bryan Cave. No_math_arithmophobia

The core Bryan Cave innovation is a simple dashboard that tracks a variety of statistics at the lawyer, practice group, and firm level.  What is most striking about the Bryan Cave initiative is the sensitivity shown to the large percentage of lawyers who are not comfortable processing numbers (“arithmophobia” was the term used in the presentation).  The Bryan Cave innovation team dealt with this constraint in two ways.

1. The Octagon.  The Octagon is a data visualization technique that communicates eight key metrics in an octagon-shaped graphic.  Wondering what the term "data visualization" means? It's finding graphical ways to communicate complex multivariable data in a format that requires the end user, such as a lawyer, to have very little technical training.  The Octagon is a textbook example. It uses colors and distance from the center of the graphic to convey essential information related to origination, client relationships, matter management, days to bill, days to collect, hours billed, leverage, and profit margins. (There may be other octagons containing other metrics--the one we were shown appeared to be geared toward partners.)

Each lawyer each month gets a new updated Octagon; and that graphic communicates, through its shape, the lawyer’s relative contributions to the firm.  Specifically, there are distinctive patterns well known within the firm that tend to signal rainmaker, service partner, project manager, technical specialist, or some blend thereof.  The features of the Octagon also communicate how well a lawyer is performing in his or her various roles relative to his or her peers.  So, on a monthly basis, self-image confronts hard numbers.

This type of transparency is bound to have a profound effect on behavior.  (During another ILTA session I heard, from another Bryan Cave presenter, that since the introduction of the Octagon a couple of years ago, the average days to collect has fallen from 60 to 44.)

2. The Rosetta. Some lawyers are bound to prefer a story rather than a picture.  For these lawyers, the firm has created a narrative, referred to as the Rosetta, that translates the numbers into a diagnostic story of strengths, weaknesses, and, most importantly, specific prescriptive advice on how to improve.

But there is an interesting catch—the stories are all written with a computer algorithm.  How is this possible?  It’s a technology pioneered by a company called Narrative Science.  Note that computers that are fed nothing but a traditional baseball scoring sheet now routinely write sports stories that summarize the game for the local sports page.  This narrative summary accompanying the Octagon removes any lingering ambiguity regarding what the diagram means.  Further, all report generation, including practice-group level Octagon and Rosetta reports, has been entirely automated.

I am told that the Octagon and Rosetta programs can handle, and properly incentivize, work that is done on either a billable or alternative fee arrangement basis. If this is true, Bryan Cave has an innovation designed for the legal market of the future.

Some readers may be turned off that the Bryan Cave innovation may seem, on the surface anyway, entirely focused on law firm financial performance.  I am not. To my mind, this type of technology is valuable for communicating the fundamentals of the business.  This reduces the myths and false narratives that routinely take hold in data-poor environments.  This innovation is also timely because it is getting harder to give clients superior value while also delivering a strong return to the firm's owners -- the best of whom could lateral to another firm tomorrow.

The challenge of every BigLaw firm is getting all of the firm's stakeholders to row in the same direction. The combination of the Dashboard, Octagon, and Rosetta is a breakthrough in lawyer communication and, by extension, change management.  Bryan Cave attorneys have the information they need to both build their practices while also advancing the broader goals of the enterprise.

Seyfarth Shaw Seyfarth

Presenters: Kathy Perrelli, Chair of Litigation Practice; Kim Craig, Global Director of Legal Project Management.

Seyfarth Shaw’s innovation is the creation of a true Research & Development Department staffed by lawyers, project managers, technologists, and software developers.  The charge of Seyfarth’s R&D Department is to build solutions in advance of perceived client needs.  As the presenters mentioned, “we are not doing this because our clients are asking for these solutions; we are doing this because our clients will ask.”

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August 24, 2014 in Blog posts worth reading, Current events, Data on the profession, Innovations in law, Law Firms | Permalink | Comments (1)

Monday, July 28, 2014

Conditional Scholarship Retention Update for the 2012-2013 Academic Year

In comparing the conditional scholarship universe between the 2011-12 academic year and the 2012-13 academic year (with a brief look at 2013-14) there are a handful of things worth noting.

First, as shown in Table 1, the number of law schools with conditional scholarships declined between 2011-12 and 2012-13 from 144 law schools to 136 law schools, and declined again for the 2013-14 academic year to 128 law schools.  The number of law schools that do not have conditional scholarships grew from 49 in 2011-12 to 58 in 2012-13 to 66 in 2013-14.  In addition, the number of schools with just one-year scholarships declined from five in 2011-12 to four in 2012-13, where it remained for 2013-14.

 Table 1:  Changes in Number of Law Schools with Conditional Scholarship Programs

Category

2011-12

2012-13

2013-14 (indications)

Law Schools with Conditional Scholarship Programs

 

144

 

136

 

128

Law Schools with One-Year Scholarships

5

4

4

Law Schools with Scholarships that are not Conditional Scholarships

 

49

 

58

 

66

 

Second, as shown in Table 2, the number of students receiving conditional scholarships in 2012-13 declined slightly from 2011-12, from 12786 to 12470, but the percentage of first-years with conditional scholarships actually increased from 27.3% to 29.2% (given the smaller number of first-years in 2012-13 compared to 2011-12).  That said, the number of students whose scholarships were reduced or eliminated declined from 4359 to 3712, meaning that the percentage of first-years whose scholarships were reduced or eliminated dropped from 9.3% to 8.7%.

Table 2: Overall Comparisons Between 2011-12 and 2012-13

Category

2011-2012

2012-13

First-years*

46778

42769

First-years with Conditional Scholarships**

12786 (27.3% of first-years)

12470 (29.2% of first-years)

First-years whose conditional scholarships were reduced or eliminated**

 

4359 (9.3% of first-years)

 

3712 (8.7% of first-years)

Average Renewal Rate (across law schools)

69%

71%

Overall Renewal Rate Among Scholarship Recipients

65.9%

70.2%

*Drawn from first-year enrollment at the 198 law schools included in this analysis (excluding the law schools in Puerto Rico and treating Widener as one law school for these purposes) based on information published in the Standard 509 reports.
** Based on information published in the mandated Conditional Scholarship Retention charts by each law school with a conditional scholarship program.

Third, the distribution of conditional scholarship programs across tiers of law schools is even more pronounced in 2012-13 than it was in 2011-12.  Using the USNews rankings from March 2014, only 16 law schools ranked in the top 50 had conditional scholarship programs in 2012-13 and eight of those 16 had a renewal rate of 97% or higher.  Three of these law schools also eliminated their conditional scholarship programs as of the fall 2013 entering class.  (Moreover, only six in the top 25 had conditional scholarship programs, five of whom had a renewal rate of 97% or higher.)

As you move further down the rankings, conditional scholarship programs become more common and manifest lower scholarship retention rates on average.

Of the 53 law schools ranked between 51 and 100 (with three tied at 100), 37 law schools (nearly 70%) had conditional scholarship programs, of which two eliminated their conditional scholarship programs as of fall 2013.  Notably, of the 37 law schools with conditional scholarship programs, eight had a renewal rate of 91% or better (nearly 22%), while seven had a renewal rate of 65% or less (nearly 19%) (with the other 22 (nearly 60%) with renewal rates between 67% and 88%)

For law schools ranked between 104 and 146 (44 law schools in total), 35 law schools (nearly 80%) had conditional scholarship programs, of which three eliminated their conditional scholarship programs as of fall 2013.   Notably, of the 35 law schools with conditional scholarship programs, six of the 35 had a renewal rate of 93% or better (roughly 17%) while 16 had a renewal rate of 65% or less (nearly 46%) (with the other 13 (roughly 37%) with renewal rates between 67% and 88%).

Finally, among the unranked schools, 47 of 51 had conditional scholarship programs – over 92% – only five of which had a renewal rate of 91% or better (nearly 11%), while 23 had a renewal rate of 65% or less (nearly 49%) (with the other 19 (roughly 40%) with renewal rates between 66% and 88%).

Tables 3 and 4 present comparative data across law schools in different USNews rankings categories.  Table 3 describes the number of law schools with conditional scholarship programs and the distribution of scholarship retention rates among law schools.  Table 4 describes the total number of students within each USNews rankings category along with the number of students on conditional scholarships and the number of students who had their conditional scholarship reduced or eliminated.

 Table 3: Scholarship Retention Rates by USNews Ranking Categories

Category

Top 50

51-100 (n=53)

104-146 (n=44)

Unranked (n=51)

Schools with Conditional Scholarship Programs

 

16

 

37

 

35

 

47

Retention Rates of 90% or More

8

8

6

5

Retention Rates of 66%-88%

4

22

13

19

Retention Rates of 65% or Less

4

7

16

23

 Table 4: Number and Percentage of First-Year Students in 2012 by USNews Rankings Categories Having Conditional Scholarships and Having Conditional Scholarships Reduced or Eliminated

 

Top 50 Law Schools (n=50)

Law Schools Ranked 51-100 (n=53)

Law Schools Ranked 104-146

(n=44)

Law Schools Ranked Alphabetically (n=51)

Number (%) of Law Schools with Conditional Scholarship Programs

16 (32%)

37 (70%)

35 (79.5%)

47 (92%)

Total First-Years at These Law Schools

11,862

10,937

7,611

12,180

Number (%) of First-Years with Conditional Scholarships

1,587 (13.4%)

3,192 (29.2%)

3,247 (42.7%)

4,444 (36.5%)

Number (%) of Conditional Scholarship Recipients Whose Scholarships were Reduced or Eliminated

154 (9.7% of conditional scholarship recipients and 1.3% of first-years)

734 (23% of conditional scholarship recipients and 6.7% of first-years)

1,124 (34.6% of conditional scholarship recipients and 14.8% of first-years)

1,700 (38.3% of conditional scholarship recipients and 14% of first-years)

Overall, as shown in Table 5, the distribution of retention rates across law schools was as follows for the 2012-13 academic year:  18 law schools had retention rates less than 50%, 20 law schools had retention rates between 50% and 59.99%, 25 law schools had retention rates between 60% and 69.99%, 21 law schools had retention rates between 70% and 79.99%, 25 law schools had retention rates between 80% and 89.99%, and 27 law schools had retention rates of 90% or better. 

 Table 5 – Number of Law Schools with Conditional Scholarship Renewal Rates in Different Deciles

Renewal Category

Number of Schools

90% or More

27 (16 of which were ranked in top 100)

80%-89.9%

25 (12 of which were ranked in top 100)

70%-79.9%

21 (10 of which were ranked in top 100)

60%-69.9%

25 (8 of which were ranked in top 100)

50%-59.9%

20 (5 of which were ranked in top 100)

Less than 50%

18 (2 of which were ranked in top 100)

Notably, of the 52 law schools ranked in the top 100 with conditional scholarship programs, only two (four percent) had retention rates that were less than 50%, while 16 (nearly 31%) had retention rates of 90% or better.  By contrast, of the 82 (of 95) law schools ranked 104 or lower with conditional scholarship programs, 16 (nearly 20%) had retention rates of 50% or less, while only 11 (roughly 13%) had retention rates of 90% or better.

In sum then, with several schools eliminating their conditional scholarship programs as of fall 2013, less than 50% of the law schools ranked in the top 100 (47 of 103 – nearly 46%) still had conditional scholarship programs, and of those, more than 27% (13 of 47) had retention rates for the 2012-13 academic year of 90% or better while less than 22% (10 of 47) had retention rates of 65% or less.

By contrast, as of fall 2013, more than 80% of the schools ranked below 100 (79 of 95 – roughly 83%) still had conditional scholarship programs, and of those, less than 12% (9 of 79) had retention rates for the 2012-13 academic year of 90% or better and nearly half (39 of 79 – roughly 49%) had retention rates of 65% or less.

July 28, 2014 in Data on legal education, Scholarship on legal education | Permalink | Comments (0)

Tuesday, July 8, 2014

A General Counsel's Advice to A Law Firm - Circa 2004

Nothing promotes de-cluttering one's office like a move or new furniture.  A colleague is retiring; I bought his table and standup desk, and gave up the humungous thing they gave me when I showed up.  It meant tossing lots and lots of stuff I never look at anymore (and goodbye hundreds of reprints - may you recycle into something far more valuable).

763cf59eI found the notes from a talk I gave in Chicago to a 2004 meeting of the firm then called Piper Rudnick - a combination of Piper Marbury of Baltimore and Rudnick & Wolfe of Chicago soon to absorb Gray Cary, and thereafter to merge with Dibb Lupton of Great Britain to become the behemoth DLA Piper.

At the time I was the general counsel of Great Lakes Chemical Corporation.  Piper had done a lot of our work under the various EPA-administered statutes that regulated household and other chemicals - TSCA, RFRA (the one dealing with rodenticides and fungicides, not the one dealing with religion), etc.  It had succeeded in securing more work through a "Preferred Provider Program" our terrific Associate GC, Joanne Smith, organized.  In Chicago, I was on a panel with the general counsel of AON, a senior lawyer from Boeing, and one other I can't recall now.  I do remember it was a big room with a lot of people in the audience.

Ten years later, there isn't much here that I'd change - other than I wouldn't have notes on lined paper but would instead have used the Speeches app on my iPad.  A reconstruction of the talk from my notes follows the break.

[Cross-posted at PrawfsBlawg and Legal Profession Blog]

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July 8, 2014 | Permalink | Comments (0)

Tuesday, June 17, 2014

So, A Rough Cartoon Always Says Much....*

HeminwayVia Facebook, I saw that my friend Joan Heminway had some interesting things to say about the private-public distinction in securities law over at our sister blog, Business Law Prof.  I heartily recommend it.

But with my usual instinct for avoiding the import of a serious presentation and jumping immediately to the trivial and irrelevant, it dawned on me I had never known that the Crowdfund Act of 2012 was really the CROWDFUND Act of 2012.  

My cartooning skills are not up to what they were in my productive peak thirty-five to forty years ago during my brief stints at the Michigan Daily and the Stanford Law Journal,** but I was inspired to grab my crutches, hop up to the second floor,* get a sharp pencil and some paper and sketch this:

Acronym Cartoon

* I suffered a complete rupture of my achilles tendon pretending I was a lot younger than I am and find that I now have a lot of time on my hands.

** This was the student newspaper, not the law review, something I noted on my resume for many years.

June 17, 2014 | Permalink | Comments (1)

Obama, Law School, and Interdisciplinarity

Graphic-RodriguezDanielB._v2012-01-05;053739Dan Rodriguez, Northwestern University Law School dean and current president of the AALS, has some typically thoughtful commentary at PrawfsBlawg on the news that President Obama is not recommending law school as the grad school of choice, suggesting instead that we need more STEM professionals than lawyers.  

If I may characterize Dan's comment, he's not taking issue with the President's comment as much as suggesting the real name of the game is in interdisciplinarity, and lawyers and law degrees have something to contribute on that score.

I commented on his post over at Prawfs, but thought I'd reprint it here as well.

The business world is at least twenty (and probably more, given the structural and institutional problems with interdisciplinary work in academia) years ahead of universities in this. It's not to say that disciplinary and functional silos don't exist out there; they still do. But the fundamental insight of lean enterprise and continuous improvement was that research, engineering, manufacturing, and marketing all had to talk to each other from the outset, or you ended up with designs nobody could build, or products nobody wanted.

So who teaches interdisciplinarity? Louis Menand's "The Marketplace of Ideas" and Michele Lamont's "How Professors Think" are about as good as it gets in nailing what my casual empiricism tells me: there's a tension between dilettantism and disciplinary rigor every time you venture out into the space between disciplines (which by the way are something WE create and don't necessarily or even contingently cut fields of knowledge at the joints). The paradox, of course, is that once you establish peer review or other disciplinary standards in the new space you've replicated the original disciplinary problem.

So in academia, what you have to do is forge ahead notwithstanding the cautious naysayers (i.e. risk being called a dilettante, which ain't easy if you are pre-tenure) but at the same time do the best you can in finding like minded souls from the other discipline to afford you some check on rigor, mix it all together and hope for the best.

Finally, the particular hallmark of disciplinary rigor among both academic and practicing lawyers is attribution of blame as the focus of cause-and-effect in the world (from Honore & Hart to Moore to "all you say is 'no'"). That's usually one of the first things that effective business lawyers manage to shed, oftentimes to the dismay of lawyers' lawyers.

June 17, 2014 | Permalink | Comments (0)

Sunday, June 1, 2014

NewLaw, Innovation, and the Importance of Failure

FurlongJordan Furlong is one of the first-rate commentators on the legal industry. He is an excellent observer, a deep thinker, and skilled and stylish communicator.  

Over at Law 21, Jordan has written a set of companion essays that explain the ferment that is now taking hold in the legal industry.  Check them out if you need or want the seemingly complex made simple.

The first essay is a highly useful reference guide to NewLaw (#NewLaw), a category coined by the Australian consultant George Beaton.   Jordan modestly titled the essay "An Incomplete Inventory of NewLaw," but its alleged incompleteness does not distract from its usefulness.  Complicated things like new business models need to be organized and simplified before we can get our heads around them.  Here, Jordan creates a elegant typology and fills it out with example after example.  Before Jordan's essay, few of us could be sure we were discussing the same ideas or concepts.

One of Jordan's most noteworthy observation is that the talent side of NewLaw is appears to be growing faster in the UK (new models of organizing and delivering legal services and content) while the US seems to be getting the most traction in legal tech.  The former is likely due to liberalization of regulations that flow from the UK's Legal Services Act of 2007 and the latter from the proximity to venture funding.  To have similar legal ecosystems developing in different ways is bound to trigger consequences and interactions that we cannot fully anticipate. 

Jordan's second post is on the failure of legal innovation, which he points out is nothing more than the precursor long-term success.  See  "The Failure of Legal Innovation," Law 21, May 29, 2014.  I definitely agree.  When I look at the legal innovation space in 2014 -- and my frame for reference is LegalTech, LexRedux, ReInvent Law, some of the ABA Legal Rebels, and a lot of shoe-leather research on my part -- I think of Detroit in 1905.  There were roughly 125 car manufacturers and hundreds more in other parts of the country, as Detroit was not yet car capital of the world.  All of those business owners were right about one thing:  The car is the future.  But they wistful optimists about something else -- their car company is the future. 

A start-up is like a sapling in the woods -- the odds are against it ever growing to the treeline. Fortunately, in the start-up ecosystem good ideas and talented entrepreneurs never really lose.  Instead, they are rolled up into competitors to form the types of companies that can truly shape an entire new industry.  Along these lines, if I were working in investment banking these days, I would be trying to specialize in the legal sector, as the roll-ups in this space are going to be fast and furious in the years to come.  

Let's fasten our seatbelts.  The next several years are going to be time of great tranformation.

June 1, 2014 in Blog posts worth reading, Cross industry comparisons, Important research, Innovations in law, New and Noteworthy, Structural change | Permalink | Comments (1)

Tuesday, May 27, 2014

Another Datapoint for the Laptops Debate

In my inbox this morning was the HBS Daily Stat with the title, "You'll Absorb More if You Take Notes Longhand."  Here is the accompanying explanation:

College students who take notes on laptop computers are more likely to record lecturers’ words verbatim and are thus less likely to mentally absorb what’s being said, according to a series of experiments by Pam A. Mueller of Princeton and Daniel M. Oppenheimer of UCLA. In one study, laptop-using students recorded 65% more of lectures verbatim than did those who used longhand; a half-hour later, the laptop users performed significantly worse on conceptual questions such as “How do Japan and Sweden differ in their approaches to equality within their societies?” Longhand note takers learn by reframing lecturers’ ideas in their own words, the researchers say.

SOURCE: The Pen Is Mightier Than the Keyboard: Advantages of Longhand Over Laptop Note Taking (emphasis in the original)

Wouldn't the same analysis almost surely apply to law students?  Experience tells me that many law students would argue that they are in the minority who learn better through computer transcription.  But what if, given a choice, over half decide to use laptops?  It would be likely that many, if not most, would be making the wrong tradeoff.

Data rarely changes hearts and minds.  As a result, there is likely a gap between maximum learning/knowledge worker productivity and what we are able to accomplish in an education or  workplace setting.  Why?  People like what they are used to and rationalize why data does not apply to them.  There is a solution to dilemma, I suspect.  We just have not found it yet. 

May 27, 2014 in Blog posts worth reading, Cross industry comparisons, Data on legal education, Fun and Learning in the classroom, New and Noteworthy | Permalink | Comments (2)

Thursday, May 22, 2014

New Study Tool - "SeRiouS" Learning Platform


Logo-184e34c8eec23e71d5723ff536ff6a43Most of us would agree that the essence of lawyering consists of seeing the issues embedded in the narrative, and translating the narrative into legal argument.  That's a hard thing to teach.

But you still have to know the language into which you are translating the narrative.  And learning language - whether we like it or not - involves cramming a lot of stuff into our memories.  Particularly before the bar exam.

My friend and colleague at Suffolk, Gabe Teninbaum, has created a new learning platform with which law students and bar preppers can address this latter issue.  He calls the product “SeRiouS,” which stands for Spaced Repetition Systems.  Gabe is making the program available for free in beta mode at SpacedRepetition.com (at least) through the July 2014 bar exam. Gteninbaum   

Although the very thought of cramming sends chills down my spine, sometimes you gotta do it (I took the MPRE to be admitted to the Massachusetts bar seven years ago and it was an unpleasant flashback!).  Crammers know what the studies bear out:  you forget most of what you crammed (66%) within 24 hours, and almost all of it (79%) within a month.

Gabe's claim (give it a try!) is that SeRiouS improves the memory retention rate to 92% for as long as the student is using the system, and takes less time than traditional methods.

To slow the rate at which users forget, SeRiouS shows them online flashcards and, after each one, prompts the user to report how well he or she knew the answer after flipping it over.  If the user knew it well, the card won't reappear for a longer time; if the user struggled to remember, SeRiouS will shown it again sooner. Based on these  answers, SeRiouS’s algorithm customizes itself to the user’s personal rate of forgetting, and then uses that information to prompt studying at just the right time. 


With spaced repetition, as with any other cramming, it’s “garbage in, garbage out.”  In other words, if the content of the flash cards stinks, so will the memorized result.  Currently, SeRious  has 600+ law professor-created flashcards on the topics most likely to be tested on the Multistate Bar Exam and in core law school courses. 

The system works on any device as long as there’s internet access.  SeRiouS updates constantly based on users’ work, and individual users’ data is stored in the cloud.  

I don't endorse commercial products, but this one is free for the time being.  You can also reach Gabe with questions, comments or feedback.

May 22, 2014 | Permalink | Comments (1)

Sunday, May 4, 2014

"Verbatim: What is a Photocopier?"

The New York Times has is publishing a new series of short documentaries films called Op-Docs.  The Op-Doc below is a dramatization of a deposition, albeit the script is a verbatim rendition of an actual deposition transcript. The plaintiff's lawyer is trying to establish whether the witness's office (which happens to be the Recorder for Cuyahoga County Court of Common Pleas) has a photocopy machine.  Simple question, right?

The video is quite funny, but suffice it to say the verbatim transcript does not cast litigation in a favorable light.  The fact that the Ohio judiciary is the defendant is even more troubling.  Mediums like a documentary on the Times website seems like a promising change catalyst. 

May 4, 2014 in Blog posts worth reading, Current events, New and Noteworthy | Permalink | Comments (0)

Thursday, May 1, 2014

What Ails the Large Law Firm? Will the Real FutureFirm Please Stand Up

TimeinabottleFive years ago this April, I helped organize a novel experiment on how to reengineer the modern law firm.  The occasion was FutureFirm 1.0, a collaborative competition in which teams of law firm partners, associates, and in-house lawyers to create a strategic plan for the fictional firm of Marbury & Madison (M&M).  The goal was a new business model that would enable the firm "to survive and thrive over the next 20 years."  See M&M Fact Pattern.   

We planned FutureFirm 1.0 in the fall of 2008, but by April 2009, things looked pretty unstable.  Deal flow had ground to a halt, and corporations were reluctant to fund noncrucial litigation.  Law firms in turn were rescinding offers to thousands of law students.  Further, the specter of law firm failure hung in the air.  Suffice it to say, the timing was not right for sharing the results of FutureFirm.  As a result, my analysis of the event, "What Ails the Large Law Firm?  Will the Real FutureFirm Please Stand Up," was never published or circulated.  

With five year anniversary of FutureFirm 1.0, I decided to uncork my time-in-a-bottle essay and post it on SSRN and JDSupra.  

Having not read this essay for five years, I am surprised at how well the FutureFirm analysis holds up.  Yet, the biggest takeaway from my FutureFirm experience is not the specifics of the analysis, but acclimating myself to the permanence of new change dynamic, much of which I can see through the participants of FurtureFirm 1.0.   

  • Two law firm partners subsequently left to start their own boutiques, one of which is aggressively moving into managed services in South Africa.  
  • Another law firm partner became a judge in King County, Washington (Seattle).
  • Several summer associates joined BigLaw only to leave within three or four years to become sophisticated in-house lawyers who are themselves driving change.
  • Several people in all roles have switched over to the business side.  Indeed, new legal businesses are actively being planned.

In the spring of 2014, the new normal is here to stay, and it has no froth.  FutureFirm was probably a fringe activity back in 2009.  Now, an event like FutureFirm would be one of the key places to go for answers.  Indeed, I have very serious senior in-house lawyers at Fortune 100 companies who want to run this type of colloborative competition to help better design tomorrow's legal departments.  So stay tuned for that.

I hope you are sufficiently curious to do a bit of time travel and give "What Ails the Large Law Firm?" a read.  I would welcome your thoughts and feedback. 

May 1, 2014 in Data on the profession, Innovations in law, Law Firms, Legal Departments, Structural change | Permalink | Comments (0)

Monday, April 28, 2014

Critiquing Law Schools -- Some Perspective

Humblepie-e1288647520854Every few months, whether I like it or not, I get served a slice of humble pie.   I thought those tiring of the steady stream of law school critiques might find this slice particularly tasty, as someone else (me) is ingesting it.

Over the last few years, I have begun reading books on management and leadership.  My interest in this topic is driven partly by my belief that law schools will be tooling up in this area in the years to come; and partly by a desire to learn about, and acquire, what I hope to teach. 

The finest resource I have found on this topic is Management and Leadership: A Group of Letters to an Industrial Organization.  This book was originally published in 1948 by Carl Braun, a prominent industrialist of the early and mid-20th century.  Braun wrote this book, and several others, for the benefit of his managers at C.F. Braun & Co., which was an engineering company that designed and built many of the nation's oil refineries.  I was drawn to Braun because his company was such a spectacular and enduring success.  

The success, however, not not merely financial.  What made C.F. Braun so successful for so long was Braun's relentless drive to maximize the potential of every person in his organization.  

Now let's think about that -- reaping large profits by putting your people first.  For Braun, this was not a abstraction.  It was, in fact, the company's track record over a period of several decades.  In 1989, 35 years after Carl Braun's death, C.F. Braun & Co. was sold to what is now Kellogg Brown & Root (KBR).  And today, people who worked there are still reminiscing over the positive impact the company had on their lives and the lives of their families.  If you think I am exaggerating, check out the C.F. Braun Alumni Group on LinkedIn.

I have read Management and Leadership several times.  Without exception, each time I put the book down I feel both challenged and inspired.  Well, this last time, I read the following passages in one sitting -- and suffice to say, the contrast hit be pretty hard.  You be the judge.

Below in a section titled "The Doers Must Teach," Braun implores his managers to accept their role as teachers, as our nation's schools, including colleges and universities, lack the practical orientation of modern industry.

Our field of endeavor, industry, unlike medicine for instance, is one of those fields in which the teachers are not the doers. Our teachers, whether in grade-school, high school, or college, seldom have had industrial experience. Few have had even slight contact with industry. And fewer still have current contacts. Not understanding industry, they too often judge it by its worst members, and so develop for it an active disrespect.

The result is that, with rare exceptions, teachers do not find out from industry what industry needs from them. Nor do they seek from industry the teaching-methods that the better industrialists have developed.  The gap is enormous between the abstract teachings of our schools and the concrete needs of industrial man. It is this gap that we industrial leaders must fill. We must fill in what's missing. And we must make the whole a living growing thing.

Well, as I am reading the above passage, my mind is quickly drawing a parallel between Braun and numerous incisive and trenchant critiques of legal education.  See, e.g., Legal Education's Ninety-Five Theses, Legal Whiteboard, Feb 1, 2012; Harry Edwards, The Growing Disjunction Between Legal Education and the Legal Profession, 91 Mich L Rev 34 (1992).   Yes, I thought to myself, these authors, like Braun, really know what they are talking about.

But that was not what Braun had in mind.  About 20 pages later, Braun focuses on legal education and the case system as a beacon that will lead us to a better way. 

The law schools have the right idea. They used to bore law students by droning at them from Blackstone - that encyclopedic treatise on law theory. But now they teach from concrete cases - and they've done it for eighty years. The student studies adjudicated cases - cases that are real, typical, modern. From these cases, with the help of his teacher, the student builds up the guiding rules.

This is the right method. Let it be our method. Let's shake ourselves free of the horrible methods we have been brought up on in our schools.  Let's have no dogmatic rules in our teaching.  Let's have no silly and artificial examples that nobody ever uses. Let's be sure that in all our teaching we start with concrete cases -- cases that are real, that are applicable to our purposes, and that preferably are within the practical experience of our learner.

Of course, in 1947, the year before Braun would extol law schools to his audience of engineers, the influential legal realist, Jerome Frank, published an incisive critique that called for the near complete overthrow of the 80-year tradition. See Frank, A Plea for Lawyer-Schools, 56 Yale L J 1301 (1947).

Alas, we humans often find the deepest faults with what is close and intimate, and greatest virtue  with what is mythical and far away.  How often a sense of accurate proportion eludes us.   After several years traveling the country discussing legal education reform, I have gradually concluded that if I want to maximize my influence on change, I need to build and encourage, not criticize and debate.   

April 28, 2014 in Blog posts worth reading, Cross industry comparisons | Permalink | Comments (0)

Sunday, March 30, 2014

Review of The Lawyer Bubble and Tomorrow's Lawyers

Harper_SusskindReaders might enjoy my forthcoming essay, Letting Go of Old Ideas, 112 Mich L Rev _ (2014), which reviews two important new books on the legal profession, Steven Harper's The Lawyer Bubble and Richard Susskind's Tomorrow's Lawyers. If you want to know why the legal profession circa 2014 is such a rich topic for study, here is a useful clue: Harper and Susskind both critically examine this topic yet come to dramatically different conclusions that neither overlap nor conflict with one another. The complexities run that deep.

Thanks to his prolific commentary in the legal press, Harper's critique is familar to many readers. He is angry with the elite legal establishment -- large law firms and the legal professoriate -- for succumbing to "a culture of short-termism" that focuses obsessively on the AmLaw and US News league tables.  As someone in the target group, I confess that I don't remember making a conscious decision to sell out.   Yet, here is the problem.  When all the facts in the public domain are arrayed by a skilled trial lawyer, the question can be asked, "why didn't you stand up to this nonsense?"  This is a classic example of diffusion of responsibility. When we are all equally responsible for upholding good behavior, no one is responsible.  Collective denial sets it, and the profession gets a black eye.  

Yet, to my mind, there is an avenue for at least partial redemption -- reading Richard Susskind's slender 165 page book.  In my Counterpoint essay, I lay out the mounting evidence that the legal industry is in the early stages of a sea change.  The best theoretical treatment of this sea change is Susskind's Tomorrow's Lawyers.  Yet, I am amazed at how many lawyers and law professors know essentially nothing about Susskind's work.  Tomorrow's Lawyers was written for law students.  It is a short, accessible book.  After reading the first two paragraphs, I doubt anyone with a long-term time horizon in the legal industry will put it down without finishing it:

This book is a short introduction to the future for young and aspiring lawyers.

Tomorrow’s legal world, as predicted and described here, bears little resemblance to that of the past. Legal Institutions and lawyers are at a crossroads, I claim, and are poised to change more radically over the next two decades than they have over the last two centuries. If you are a young lawyer, this revolution will happen on your watch. (p. xiii).

If you have not read Tomorrow's Lawyers, you may be setting yourself for a Kodak moment. 

March 30, 2014 in Blog posts worth reading, Current events, Important research, New and Noteworthy, Scholarship on legal education, Scholarship on the legal profession, Structural change | Permalink | Comments (2)

Tuesday, March 18, 2014

PROJECTIONS FOR LAW SCHOOL ENROLLMENT FOR FALL 2014

 

This is the first part of a likely two-part posting regarding projections for Fall 2014 first-year enrollment. In this posting I estimate the likely total applicant pool, the likely number of admitted applicants, and the likely number of matriculants for Fall 2014.  In the coming weeks, I hope to post a second part, in which I analyze how the nature of the applicant pool is likely to impact the first-year enrollment and entering class profiles across law schools.

 

APPLICANTS

Reviewing the 2013 Cycle -- For the three-year period from 2010-2012, the number of applicants in each admissions cycle represented an average of 92.9% of the tests administered in June/October of the preceding year.  There were 63,003 June/October test-takers in 2012.  I noted in November 2012 that if the 2012-13 admissions cycle resulted in 92.9% of June/October test-takers turning into applicants, law schools could anticipate there being roughly 58,530 applicants to law schools for fall 2013.

 

In January 2013, that estimate seemed like it might be high, as LSAC projections were running more in the 53,000 to 54,000 range. 

 

Current Volume Summary

Applicants

% of Cycle

Projected Total Applicant Pool

Estimate Based on 92.9% of June/October 2012 Test Takers

 

58,530

Jan. 25, 2013

30,098

56%

53,750

Mar. 8, 2013

46,587

84%

55,460

May 17, 2013

55,764

95%

58,700

End of Cycle

 

 

59,426

 

By May 17, 2013, however, the Current Volume Summary already showed 55,764 applicants, at a time in the cycle that represented 95% of the preliminary final applicant count in the previous year.  That meant there had been an increase in applicants in March, April and May 2013 compared to the same period the previous year.  If the May 17 count truly represented 95% of likely applicants, we could have expected roughly 58,700 applicants for fall 2013.  As it turns out, however, late applications continued to come in at numbers higher than in the previous year, such that the final applicant count ended at 59,426, nearly 4,000 more than was projected as of March 8, and representing 94.3% of the total June/October 2012 test takers.

 

Thoughts on the 2014 Cycle Applicants are down again according to the LSAC Current Volume Summary.  Al Brophy has been tracking the Current Volume Summary over at The Faculty Lounge.  He has noted the following: The December 6, 2013 Current Volume Summary showed 14,171 applicants at a point in time that represented 28% of the cycle last year.  That projected to a total applicant pool of 50,611.  The January 31 Current Volume Summary showed 29,638 applicants at a point in time that represented 58% of the cycle last year.  That projected to a total applicant pool of 51,110.  The March 7 Current Volume Summary shows 42,068 applicants at a point in time that represented 79% of the cycle last year.  That projects to a total applicant pool of 53,250.  Over the course of three months, therefore, the projection for the applicant pool increased by over 2,500.

 

If you use the June/October test-takers formula described above, there were 23,997 June 2013 test-takers and 33,673 October 2013 test-takers, for a total of 57,670.  The four-year average for the applicant pool as a percentage of June/October test-takers is 93.2%.  If the fall 2014 applicant pool ends up being 93.2% of June/October 2013 test-takers, that would project to a total applicant pool of 53,748 applicants.  In three of the last four years, however, the actual percentages have been 94.2%, 94.3% and 94.5%.  If the fall 2014 applicant pool ends up being 94.3% of June/October 2013 test-takers, that would project to a total applicant pool of 54,383.

 

Accordingly, I think one conservatively could estimate that the final applicant pool will be roughly 54,000.  This would reflect a decrease in applicants of roughly 9% from the total applicant pool of 59,400 for fall 2013.  

 

On the other hand, however, the final applicant pool in 2013 grew by nearly 13,000 after March 8, 2013, resulting in a final applicant pool with 4,000 more applicants than had been projected as of March 8, 2013.  If the pool of applicants grows by 13,000 after March 7, 2014 this year, that would give us roughly 55,000 applicants, a decline of roughly 7.4% from the 2013 total.  If the pool of applicants grows by 4,000 more applicants than had been projected as of March 7, 2014, that would give us roughly 57,000 applicants, a decline of roughly 4% from the 2013 total.  (But that would mean 15,000 additional applicants after March 7, 2,000 more than in 2013, which seems unlikely at the moment.)

 

Current Volume Summary

Applicants

% of Cycle

Projected Total Applicant Pool

Dec. 6, 2013

14,171

28%

50,611

Jan. 31, 2014

29,638

58%

51,110

March 7, 2014

42,068

79%

52,250

Estimate Based on 93.2% to 94.3% of June/Oct. 2013 Test-Takers

 

53,700–54,400

Estimate Based on Growth of 13,000 Applicants after March 7, 2014 (2013 Growth)

 

55,000

 

Are we more likely to end up in the 54,000 range or the 55,000 range?   There has been steady growth in the projection for total applicants since December.  There was a late “surge” of applications last year after March 8.  Will we see a similar surge this year?  LSAC recently released the February 2014 test takers noting an increase by 1.1% over February 2013 test takers, from 19,246 to 19,499.  Notably, this includes those in Puerto Rico who took the new Spanish LSAT.  If the Spanish LSAT takers are excluded, the total February 2013 test takers would be 19,085, a decrease of 1.1% from February 2013.  In either event, it is the smallest decline (or the first increase) year-over-year in test takers in 14 test administrations dating back to October 2010.  That suggests to me that we are more likely to see continued growth in applicants in the coming months, somewhat comparable to what happened in 2013, pushing us more toward 55,000 applicants (or slightly higher) when all is said and done.

 

ADMITTED APPLICANTS – Notably, the LSAC Volume Summary shows that from 2003-2011, law schools never admitted fewer than 55,500 applicants, but also never admitted more than 71% of applicants.  For 2012, however, law schools admitted only 50,600 applicants out of 67,900.  This was the smallest number admitted in the previous decade, but also the highest percentage admitted at 74.5%.  For 2013, law schools only 45,700 applicants out of 59,400 applicants – an admit rate of 76.9% -- once again generating the smallest number of admitted students in the last decade and the highest admit rate in the last decade.

 

What number/percentage of applicants will be admitted for fall 2014?  Even as many law schools move closer to open enrollment, the reality is that some percentage of applicants is truly inadmissible – with significant character and fitness issues and/or LSAT/GPA profiles that are just too low to believe the applicant can be successful in law school and on the bar exam.  Perhaps 3% of applicants have significant character and fitness issues (between 2008 and 2011, at least 3% of applicants with an LSAT of 170 or higher were not admitted).  In addition, several thousand applicants have an LSAT below 145, many with GPAs that are less than 3.0, resulting in indices that should be problematic for law school admissions officers attentive to whether applicants can be successful in law school and on the bar exam.  In the 2010-11 cycle, 59% of applicants with LSATs of 145-149 were admitted; in the 2012-13 cycle, 73% of applicants with LSATs of 145-149 were admitted.  Similarly, in the 2010-11 cycle, only 28% of applicants with LSATs of 140-144 were admitted; in the 2012-2013 cycle, 51% of applicants with LSATs of 140-144 were admitted.  This trend is likely to continue – the overall admit rate may not reach 80%, but it will inch even closer to 80%.

 

For fall 2013, law schools found nearly 14,000 applicants to be inadmissible, down from 17,300 applicants who were not admitted in fall 2012. If we assume that the number of inadmissible applicants shrinks further – that collectively law schools will find only 12,000 to be truly inadmissible -- that would leave roughly 42,000 to 43,000 admissible applicants depending upon whether the applicant pool is 54,000 or 55,000.  Assuming everyone who is deemed admissible is admitted somewhere, that would be a national admit rate of roughly 78% -- once again the smallest number admitted and the highest percentage admitted.

 

MATRICULANTS - If you look at the LSAC Volume Summary, the average rate at which admitted students became ABA first-year students between 2003 and 2013 was roughly 87%. If the assumptions about the numbers of admitted students set forth above are accurate, and if the admit-to-matriculant rate remains at 87%, then the 42,000 to 43,000 likely admitted applicants would translate into roughly 36,500 to 37,400  first-year students law schools should expect to matriculate this fall, an enrollment decline of somewhere between 5.7% and 8% from the 39,675 first-year matriculants in fall 2013.

March 18, 2014 | Permalink | Comments (4)

Monday, March 17, 2014

A Counterpoint to "The most robust legal market that ever existed in this country"

There is a line in Professor Reich-Graefe's recent essay, Keep Calm and Carry On, 27 Geo. J. Legal Ethics 55 (2014), that is attracting a lot of interest among lawyers, law students, and legal academics: 

[R]ecent law school graduates and current and future law students are standing at the threshold of the most robust legal market that ever existed in this country—a legal market which will grow, exist for, and coincide with, their entire professional career.

This hopeful prediction is based on various trendlines, such as impending lawyer retirements, a massive intergenerational transfer of wealth that will take place over the coming decades, continued population growth, and the growing complexity of law and legal regulation.

Although I am bullish on future growth and dynamism in the legal industry, and I don't dispute the accuracy or relevance of any of the trendlines cited by Reich-Graefe, I think his primary prescriptive advice -- in essence, our problems will be cured with the passage of time -- is naive and potentially dangerous to those who follow it.

The Artisan Lawyer Cannot Keep Up

The primary defect in Reich-Graefe's analysis is that it is a one-sided argument that stacks up all impending positive trendlines without taking into account the substantial evidence that the artisan model of lawyering -- one-to-one consultative legal services that are tailored to the needs of individual clients -- is breaking down as a viable service delivery model.  

Lawyers serve two principal constituencies--individuals and organizations.  This is the Heinz-Laumann "Two-Hemisphere" theory that emerged from the Chicago Lawyers I and II studies.  See Heinz et al, Urban Lawyers (2005). The breakdown in the artisan model can be observed in both hemispheres.

  1. People.  Public defenders are understaffed, legal aid is overwhelmed, and courts are glutted with pro se litigants.  Remarkably, at the same time, record numbers of law school graduates are either unemployed or underemployed.  Why?  Because most poor and middle-class Americans cannot afford to buy several hours of a lawyer's time to solve their legal problems.  
  2. Organizations.  The most affluent organizations, multinational corporations, are also balking at the price of legal services.  As a result, foreign labor, technology, process, or some combination thereof has become a replacement for relatively expensive and unskilled junior lawyers.

The primary driver of this structural shift is the relentless growth in legal complexity.  This increase in complexity arises from many sources, including globalization, technology, digitally stored information, and the sheer size and scope of multinational companies. 

But here is a crucial point:  the complexity itself is not new, only its relative magnitude.  A century ago, as the modern industrial and administrative state was beginning to take shape, lawyers responded by organizing themselves into law firms.  The advent of law firms enabled lawyers to specialize and thus more cost-effectively tackle the more complex legal problems. Further, the diffusion of the partner-associate training model (sometimes referred to as the Cravath system) enabled firms to create more specialized human capital, which put them in an ideal position to benefit from the massive surge in demand for legal services that occurred throughout the 20th century.  See Henderson, Three Generations of Lawyers: Generalists, Specialists, Project Managers, 70 Maryland L Rev 373 (2011). 

The legal industry is at the point where it is no longer cost effective to deal with this growing complexity with ever larger armies of artisan-trained lawyers.  The key phrase here is cost effective.  Law firms are ready and willing to do the work.  But increasingly, clients are looking for credible substitutes on both the cost and quality fronts. Think car versus carriage, furnace versus chimney sweep, municipal water system versus a well.  A similar paradigm shift is now gaining momentum in law.

The New Legal Economy

I have generated the graph below as a way to show the relationship between economic growth, which is the engine of U.S. and world economies, and the legal complexity that accompanies it.

Complexity
This chart can be broken down into three phases.

1. Rise of the law firm. From the early twentieth century to the early 1980s, the increasing complexity of law could be capability handled by additional law firm growth and specialization. Hire more junior lawyers, promote the best ones partner, lease more office space, repeat.  The complexity line has a clear bend it in.  But for most lawyers, the change is/was very gradual and feels/felt like a simple linear progression.  Hence, there was little urgency about the need for new methods of production.

2. Higher law firm profits. Over the last few decades, the complexity of law outpaced overall economic growth.  However, because the change was gradual, law firms, particularly those with brand names, enjoyed enough market power to perennially increase billing rates without significantly improving service offerings.  Corporate clients paid because the economic benefits of the legal work outweighed the higher costs.  Lower and middle class individuals, in contrast, bought fewer legal services because they could not afford them. But as a profession, we barely noticed, primarily because the corporate market was booming. See Henderson, Letting Go of Old Ideas, 114 Mich L Rev 101 (2014).

3. Search for substitutes.  Laws firms are feeling discomfort these days because the old formula -- hire, promote, lease more space, increase rates, repeat -- is no longer working.  This is because clients are increasingly open to alternative methods of solving legal problems, and the higher profits of the last few decades have attracted new entrants.  These alternatives are some combination of better, faster, and cheaper.   But what they all share in common is a greater reliance on technology, process, and data, which are all modes of problemsolving that are not within the training or tradition of lawyers or legal educators.  So the way forward is profoundly interdisciplinary, requiring collaboration with information technologists, systems engineers, project managers, data analysts, and experts in marketing and finance.

Why is this framework potentially difficult for many lawyers, law firms, and legal educators to accept?  Probably because it requires us to cope with uncertainties related to income and status.  This reluctance to accept an unpleasant message creates an appetite for analyses that say "keep calm and carry on."  This is arguably good advice to the British citizenry headed into war (the origin of the saying) but bad advice to members of a legal guild who need to adapt to changing economic conditions.

There is a tremendous silver lining in this analysis.  Law is a profoundly critical component of the globalized, interconnected, and highly regulated world we are entering.  Lawyers, law firms, and legal educators who adapt to these changing conditions are going to be in high demand and will likely prosper economically.  Further, at an institutional level, there is also the potential for new hierarchies to emerge that will rival and eventually supplant the old guard.

Examples

Logo-kcuraOne of the virtues of lawyers is that we demand examples before we believe something to be true.  This skepticism has benefited many a client.  A good example of the emerging legal economy is the Available Positions webpage for kCura, which is a software company that focuses exclusively on the legal industry. 

The current legal job market is terrible, right?  Perhaps for entry-level artisan-trained lawyers.  But at kCura, business is booming. Founded in 2001, the company now employs over 370+ workers and has openings for over 40 full-time professional positions, the majority of which are in Chicago at the company's LaSalle Street headquarters.  Very few of these jobs require a law degree -- yet the output of the company enables lawyers to do their work faster and more accurately.  

What are the jobs?

  • API Technical Writer [API = Application Programming Interface]
  • Big Data Architect - Software Engineering
  • Business Analyst
  • Enterprise Account Manager
  • Group Product Manager
  • Litigation Support Advice Analyst
  • Manager - Software Engineering
  • Marketing Associate
  • Marketing Specialist -- Communications
  • Marketing Specialist -- Corporate Communications and Social Media
  • Product Manager -- Software and Applications Development
  • QA Software Engineer -- Performance [QA = Quality Assurance]
  • Scrum Team Coordinator [Scrum is a team-based software development methodology]
  • Senior SalesForce Administrator 
  • Software Engineer (one in Chicago, another in Portland)
  • Software Engineer (Front-End Developer) [Front-End = what the client sees]
  • Software Engineer in Test [Test = finds and fixes software bugs]
  • Technical Architect
  • Technical Architect - Security
  • VP of Product Development and Engineering

kCura operates exclusively within the legal industry, yet it has all the hallmarks of a great technology company. In the last few years it has racked up numerous awards based on the quality of its products, its stellar growth rate, and the workplace quality of life enjoyed by its employees.

KCuraawards

That is just what is happening at kCura.  There are many other companies positioning themselves to take advantage of the growth opportunities in legal, albeit none of them bear any resemblance to traditional law firms or legal employers.

LexRedux-Eventbrite-headerIn early February, I attended a meeting in New York City of LexRedux, which is comprised of entrepreneurs working in the legal start-up space.  In a 2008 essay entitled "Legal Barriers to Innovation," Professor Gillian Hadfield queried, "Where are the 'garage guys' in law?"  Well, we now know they exist.  At LexRedux, roughly 100 people working in the legal tech start-up space were jammed into a large open room in SoHo as a small group of angel investors and venture capitalists fielded questions on a wide range of topics related to operations, sales, and venture funding.

According to Angel's List, there are as of this writing 434 companies identified as legal start-ups that have received outside capital.  According to LexRedux founder Josh Kubicki, the legal sector took in $458M in start-up funding in 2013, up from essentially zero in 2008.  See Kubicki, 2013 was a Big Year for Legal Startups; 2014 Could Be Bigger, Tech Cocktail, Feb 14, 2014.

The legal tech sector is starting to take shape.  Why?  Because the imperfections and inefficiencies inherent in the artisan model create a tremendous economic opportunity for new entrants.  For a long period of time, many commentators believed that this type of entrepreneurial ferment would be impossible so long as Rule 5.4 was in place.  But in recent years, it has become crystal clear that when it comes to organizational clients where the decisionmaker for the buyer is a licensed lawyer (likely accounting for over half of the U.S. legal economy) everything up until the courthouse door or the client counseling moment can be disaggregated into a legal input or legal product that can be provided by entities owned and controlled by nonlawyers. See Henderson, Is Axiom the Bellwether of Legal Disruption in the Legal Industry? Legal Whiteboard, Nov 13, 2013.

The Legal Ecosystem of the Future

Book-tomorrows-lawyersIn his most recent book, Tomorrow's Lawyers, Richard Susskind describes a dynamic legal economy that bares little resemblance to the legal economy of the past 200 years.  In years past, it was easier to be skeptical of Susskind because his predictions seemed so, well, futuristic and abstract.  But anyone paying close attention can see evidence of a new legal ecosystem beginning to take shape that very much fits the Susskind model.

Susskind's core framework is the movement of legal work along a five-part continuum, from bespoke to standardized to systematized to productized to commoditized.  Lawyers are most confortable in the bespoke realm because it reflects our training and makes us indispensible to a resolution.  Yet, the basic forces of capitalism pull the legal industry toward the commoditized end of the spectrum because the bespoke method of production is incapable of keeping up with the needs of a complex, interconnected, and highly regulated global economy. 

According to Susskind, the sweet spot on the continuum is between systematized and productized, as this enables the legal solution provider to "make money while you sleep."  The cost of remaining in this position (that is, to avoid commoditization) is continuous innovation.  Suffice it to say, lawyers are unlikely to make the cut if they choose to hunker down in the artisan guild and eschew collaboration with other disciplines.

Below is a chart I have generated that attempts to summarize and describe the new legal ecosystem that is now taking shape [click-on to enlarge].  The y-axis is the Heinz-Laumann two-hemisphere framework.  The x-axis is Susskind's five-part change continuum. 

Ecosystem
Those of us who are trained as lawyers and have worked in law firms will have mental frames of reference that are on the left side of the green zone.  We tend to see things from the perspective of the artisan lawyer.  That is our training and socialization, and many of us have prospered as members of the artisan guild.

Conversely, at the commoditized end of the continuum, businesses organized and financed by nonlawyers have entered the legal industry in order to tap into portion of the market that can no longer be cost-effectively serviced by licensed U.S. lawyers.  Yet, like most businesses, they are seeking ways to climb the value chain and grow into higher margin work.  For example, United Lex is one of the leading legal process outsourcers (LPOs).  Although United Lex maintains a substantial workforce in India, they are investing heavily in process, data analytics, and U.S. onshore facilities.  Why?  Because they want to differientiate the company based on quality and overall value-add to clients, thus staving off competition from law firms or other LPOs.

In the green zone are several new clusters of companies:

  • NewLaw.  These are non-law firm legal service organizations that provide high-end services to highly sophisticated corporations.  They also rely heavily on process, technology, and data.  Their offerings are sometimes called "managed services." Novus Law, Axiom, Elevate, and Radiant Law are some of the leading companies in this space. 
  • TechLaw.  These companies would not be confused with law firms. They are primarily tool makers.  Their tools facilitate better, faster, or cheaper legal output.  kCura, mentioned above, works primarily in the e-discovery space.  Lex Machina provides analytic tools that inform the strategy and valuation of IP litigation cases.  KM Standards, Neota Logic, and Exemplify provide tools and platforms that facilitate transactional practice.  In the future, these companies may open the door to the standardization of a wide array of commercial transactions.  And standardization drives down transaction costs and increases legal certainty -- all good from the client's perspective.
  • PeopleLaw.  These companies are using innovative business models to tap into the latent people hemisphere.  Modria is a venture capital-financed online dispute resolution company with DNA that traces back to PayPal and the Harvard Negotiations Workshop.  See Would You Bet on the Future of Online Dispute Resolution (ODR)?  Legal Whiteboard, Oct 20, 2013.  LegalForce is already an online tour de force in trademarks -- a service virtually every small business needs.  The company is attempting to translate its brand loyalty in trademarks into to new consumer-friendly storefront experience.  Its first store is in the heart of University Avenue in Palo Alto.  LegalForce wants to be the virtual and physical portal that start-up entrepreneurs turn to when looking for legal advice.

Conclusion

When I write about the changes occurring in the legal marketplace, I worry whether the substance and methodology of U.S. legal education provides an excellent education for a legal world that is gradually fading away, and very little preparation for the highly interdisciplinary legal world that is coming into being. 

Legal educators are fiduciaries to our students and institutions. It is our job to worry about them and for them and act accordingly.  Surely, the minimum acceptable response to the facts at hand is unease and a willingness to engage in deliberation and planning.  Although I agree we need to stay calm, I disagree that we need to carry on.  The great law schools of the 21st century will be those that adapt and change to keep pace with the legal needs of the citizenry and broader society.  And that task has barely begun.

[PDF version]

March 17, 2014 in Blog posts worth reading, Current events, Data on legal education, Data on the profession, Innovations in law, Innovations in legal education, New and Noteworthy, Scholarship on legal education, Scholarship on the legal profession, Structural change | Permalink | Comments (16)

Saturday, March 15, 2014

Dean David Levi Speaking at UNLV

From our friend Nancy Rapoport at UNLV:
 
The UNLV William S. Boyd School of Law 
presents the inaugural 
Judge Lloyd D. George Lecture 

on the Judicial Process

David F. Levi
Dean and Professor of Law, Duke Law School 

The Grand Challenges for the Legal Profession and Judiciary 

April 3, 2014
4:00-5:30 p.m.
Thomas & Mack Moot Court
UNLV William S. Boyd School of Law 
Reception to follow

This event is free and open to the public, but registration is required. 
For more information and to RSVP, go to law.unlv.edu/JudgeGeorgeLecture2014.

David F. Levi became the 14th dean of Duke Law School on July 1, 2007. Prior to his appointment, he was the Chief United States District Judge for the Eastern District of California with chambers in Sacramento. He was appointed United States Attorney by President Ronald Reagan in 1986 and a United States district judge by President George H. W. Bush in 1990.

A native of Chicago, Dean Levi earned his A.B. in history and literature, magna cum laude, from Harvard College. He entered Harvard’s graduate program in history, specializing in English legal history and serving as a teaching fellow in English history and literature. He graduated Order of the Coif in 1980 from Stanford Law School, where he was also president of the Stanford Law Review. Following graduation, he was a law clerk to Judge Ben C. Duniway of the U.S. Court of Appeals for the Ninth Circuit, and then to Justice Lewis F. Powell, Jr., of the U.S. Supreme Court.

About Judge Lloyd D. George 

Judge Lloyd D. George was appointed United States District Judge for the District of Nevada by President Ronald Reagan in May 1984. He served as Chief United States District Judge from 1992 to 1997, and assumed senior status in December 1997. Judge George was a pilot in the United States Air Force. He received his bachelor of science degree in 1955 from Brigham Young University, and his J.D. degree in 1961 from the University of California at Berkeley (Boalt Hall). Upon graduating, he returned to Las Vegas where he built a successful private practice.

 

March 15, 2014 | Permalink | Comments (0)

Monday, March 3, 2014

Call for Papers - Teaching Accounting, Finance, and Tax in the Basic and Advanced Business Law Courses

For those of you for whom the foregoing discussion of Hans Kelsen's jurisprudence might be too esoteric (I don't think so, but reasonable minds may differ), this one may be more attractive.  

Call For Papers

AALS Section on Agency, Partnerships

LLCs, and Unincorporated Associations 

Bringing Numbers into Basic and Advanced Business Associations Courses:

How and Why to Teach Accounting, Finance, and Tax

2015 AALS Annual Meeting

Washington, DC

            Business planners and transactional lawyers know just how much the “number-crunching” disciplines overlap with business law.   Even when the law does not require unincorporated business associations and closely held corporations to adopt generally accepted accounting principles, lawyers frequently deal with tax implications in choice of entity, the allocation of ownership interests, and the myriad other planning and dispute resolution circumstances in which accounting comes into play.  In practice, unincorporated business association law (as contrasted with corporate law) has tended to be the domain of lawyers with tax and accounting orientation.  Yet many law professors still struggle with the reality that their students (and sometimes the professors themselves) are not “numerate” enough to make these important connections.  While recognizing the importance of numeracy, the basic course cannot in itself be devoted wholly to primers in accounting, tax, and finance.

            The Executive Committee will devote the 2015 annual Section meeting in Washington to the critically important, but much-neglected, topic of effectively incorporating accounting, tax, and finance into courses in the law of business associations.  In addition to featuring several invited speakers, we seek speakers (and papers) to address this subject.  Within the broad topic, we seek papers dealing with any aspect of incorporating accounting, tax, and finance into the pedagogy of basic or advanced business law courses.

            Any full-time faculty member of an AALS member school who has written an unpublished paper, is working on a paper, or who is interested in writing a paper in this area is invited to submit a 1 or 2-page proposal by May 1, 2014 (preferably by April 15, 2014).  The Executive Committee will review all submissions and select two papers by May 15, 2014.  A very polished draft must be submitted by November 1, 2014.  The Executive Committee is exploring publication possibilities, but no commitment on that has been made.  All submissions and inquiries should be directed to Jeff Lipshaw, Chair.

Jeffrey M. Lipshaw
Associate Professor Suffolk University Law School
jlipshaw@suffolk.edu
617-305-1657

March 3, 2014 | Permalink | Comments (0)

Call for Papers - Hans Kelsen in America - June 27-28, 2014

Jeremy Telman (Valparaiso) has organized a dynamite conference, even if he has included me. Call for Papers

March 3, 2014 | Permalink | Comments (0)

Sunday, March 2, 2014

THOUGHTS ON FALL 2013 ENROLLMENT AND PROFILE DATA AMONG LAW SCHOOLS

DECLINING ENROLLMENT – Between fall 2012 and fall 2013, the 199 law schools in the 48 contiguous states and Hawaii (excluding the Puerto Rican schools) accredited by the ABA’s Section for Legal Education and Admissions to the Bar, experienced the following first-year enrollment changes:

25 schools had a decline in first-year enrollment of 25% or more,

34 schools had a decline in first-year enrollment of 15%-24.99%,

44 schools had a decline in first-year enrollment of 5% to 14.99%,

62 schools had “flat” first-year enrollment of -4.99% to 4.99%,

19 schools had an increase in first-year enrollment of  5% and 14.99%, and

15 schools had an increase in first-year enrollment of 15% or more.

Overall, more than half (103) had a decrease in first-year enrollment of at least 5%, while roughly 17% (34) had an increase in first-year enrollment of at least 5%.

Across these 199 schools, first-year enrollment declined from 42,590 to 39,109, a decrease of 8.2%.  The average decline in first-year enrollment across U.S. News “tiers” of law schools was 2.6% among top 50 schools, 8.2% among schools ranked 51-99, 7.7% among schools ranked 100-144 and 7.9% among schools ranked alphabetically.

            Between fall 2010 and fall 2013, the 195 law schools in the 48 contiguous states and Hawaii fully-accredited by the ABA’s Section for Legal Education and Admissions to the Bar as of 2010 (excluding Belmont, LaVerne, California-Irvine, and Massachusetts-Dartmouth), experienced the following first-year enrollment changes:

            28 schools had a decline in first-year enrollment of 40% or more,

            29 schools had a decline in first-year enrollment of 30% to 39.99%

            43 schools had a decline in first-year enrollment of 20% to 29.99%

            43 schools had a decline in first-year enrollment of 10% to 19.99%

            36 schools had a decline in first-year enrollment of 0% to 9.99%

            10 schools had an increase in first-year enrollment of 0.01%to 9.99%

            6 schools had an increase in first-year enrollment of 10% or more.

Overall, more than half (100) had a decrease in first-year enrollment of at least 20%, while only roughly 8% (16) had any increase in first-year enrollment.

            Across these 195 schools, first-year enrollment declined from 50,408 to 38,773, a drop of 23.1%.  The average decline in first-year enrollment across U.S. News “tiers” of law schools was 14.7% among top 50 schools, 22.5% among schools ranked 51-99, 22.8% among schools ranked 100-144, and 26.8% among schools ranked alphabetically. 

 

DECLINING PROFILES -- Across the 195 law schools in the 48 contiguous states and Hawaii fully-accredited by the ABA’s Section for Legal Education and Admissions to the Bar as of 2010 (thus excluding Belmont, LaVerne, California-Irvine, and Massachusetts-Dartmouth) the entering first-year class average LSAT profile fell one point at all three measures between 2012 and 2013, from 159.6/157/153.5 to 158.6/156/152.5.  The entering first-year class average LSAT profile fell roughly two points at all three measures between 2010 and 2013, from 160.5/158.1/155.2 to 158.6/156/152.5. 

The average decline in median LSAT scores between 2012 and 2013 across U.S. News “tiers” of law schools was .98 among top 50 schools, 1.18 among schools ranked 51-99, .72 among schools ranked 100-144, and 1.13 among schools ranked alphabetically. 

Notably, 133 law schools saw a decline in their median LSAT between 2012 and 2013, with 80 down one point, 38 down two points, 12 down three points, one down four points, one down five points and one down six points, while 54 law schools were flat and 7 saw an increase in their median LSAT. 

In terms of schools experiencing “larger” declines in median LSAT scores between 2012 and 2013, five schools in the top 50 saw a three point decline in their median LSAT, five schools ranked 51-99 saw at least a three point decline (of which one was down four points), three schools ranked 100-144 saw a three point decline, and two schools ranked alphabetically saw large declines – one of five points and one of six points.

The average decline in median LSAT scores between 2010 and 2013 across U.S. News “tiers” of law schools was 1.54 among top 50 schools, 2.27 among schools ranked 51-99, 2.11 among schools ranked 100-144, and 2.79 among schools ranked alphabetically.  If one were to unpack the top 50 schools a little more, however, one would discover that the top 20 schools saw an average decline in their median LSAT of 1.05 between 2010 and 2013, while the bottom 15 schools in the top 50 saw an average decline in their median LSAT of 2.53.

In terms of schools experiencing “larger” declines in median LSAT scores between 2010 and 2013, three schools in the top 50 have seen declines of four or more points, nine schools ranked 51-99 have seen declines of four or more points, 11 schools ranked 100-144 have seen declines of four or more points and 17 schools ranked alphabetically have seen declines of four or more points. 

When looking at the 2012-13 data in comparison with the 2010-2013 data, one sees that lower ranked schools have had more of a sustained challenge in terms of managing profile over the last few years, while schools ranked in the top 50 or top 100 had been managing profile fairly well until fall 2013 when the decreased number of high LSAT applicants really began to manifest itself in terms of impacting the LSAT profiles of highly ranked schools.

The overall decline in the LSAT profile of first-year students also can be demonstrated with two other reference points.  In 2010, there were 74 law schools with a median LSAT of 160; in 2013, that number has fallen to 56.  At the other end of the spectrum, in 2010, there were only 9 schools with a median LSAT of less than 150 and only one with a median LSAT of 145.  In 2013, the number of law schools with a median LSAT of less than 150 has more than tripled to 32, while the number of law schools with a median LSAT of 145 or less now numbers 9 (with the low now being a 143).

 

CONCLUDING THOUGHTS – Over the last three years, few schools have had the luxury of being able to hold enrollment (or come close to holding enrollment) and being able to hold profile (or come close to holding profile).  Many schools have found themselves in a “pick your poison” scenario.  A number of schools have picked profile and made an effort to hold profile or come close to holding profile by absorbing significant declines in first-year enrollment (and the corresponding loss of revenue).  By contrast, a number of schools have picked enrollment and made an effort to hold enrollment or come close to holding enrollment (and maintaining revenue) but at the expense of absorbing a significant decline in LSAT profile.  Some schools, however, haven’t even been able to pick their poison.  For these schools, the last three years have presented something of a double whammy, as the schools have experienced both significant declines in first-year enrollment (and the corresponding loss of revenue) and significant declines in profile. 

March 2, 2014 in Data on legal education, Scholarship on legal education, Structural change | Permalink | Comments (0)