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.

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March 16, 2016 | Permalink | Comments (0)