Are Law Schools Preparing Students
for 21st Century Practice?
Terri Mottershead
Director
Griffith Law School Legal Practice Centre
ALSA Council Meeting
Brisbane
29 September 2012
1
Agenda
 The “New Normal” Legal Industry
 Impact on Law Firms
 Impact on Law Schools
 What Does the Future Hold?
 Some Thoughts to End…
2
The “New” Normal
Legal Industry
Drivers of Change
Globalization has changed the
leadership, management and business of
5
law firms
Technology has changed the
type of work lawyers do,
how the work is done and
who does the work?
6
Corporate counsel
have become legal industry
change agents
7
Impact of Change
on Law Firms
Breakdown of Law Firm Work (Circa 2011)
High
Low
Price
Sensitivity
&
Leverage
Mission
Critical
(10%)
Ordinary Course of
Business
(40%)
Value
Focus
Commodity
(50%)
High
Low
Source: Jordon Furlong, The rise of the super-boutique, August 19, 2011
9
Hildebrandt Baker Robbins, Process Management and Process Improvement Workshop (June 2010)
USA:
Source: Citi/Hildebrandt 2012 Client Advisory as in
10
Adam Smith, Esq, Growth Is Dead: Part 2 (September 10, 2012)
11
The classic business
formula:
Income – Expenses
= Profit
12
Income
Billable work
Increase by raising
rates
Increase by work
volume
but
Rate increases
minimal,
flat
or
decreasing
DIFFERENTIATE
& INNOVATE
but
More
work
staying
in-house
or going to LPOs
13
Expenses
NEW
People
Premises
Retention
Highly skilled
Highly motivated
Focus on top performers
Top performers most highly remunerated
and most quickly promoted
• Composite workforce
•
•
•
•
•
Turnover costs
Lack of skills cost
Lack of engagement costs
Absence of feedback costs
Mismatch of work to
experience level costs
• Focus on remedial action costs
• Lockstep remuneration favors mediocrity
• Up or out model costs
•
•
•
•
•
• Renegotiation?
• Fixed versus remote?
• Location?
• Relocation of
support services?
• Outsourcing
support services?
•
•
DATA TO MEASURE, MANAGE,
ANALYZE & IMPROVE
FOCUS ON EFFICIENCY &
INNOVATION
14
15
Business and Staffing Model Combinations
Tweaking the Status Quo
Business Model
Staffing Model
 Pyramid model
 Partnership track (the
 Reverse pyramid
 Of Counsel
 Diamond
main career path but also
alternative career paths)
 Professional Managers
but lawyers still very
involved
 Growth/succession
planning by:
 Lateral hiring
 Merger
 Globalization
16
Business and Staffing Model Combinations
Staffing Model
Alternative Business
Structures

Distinctive mix or sole
focus on:
 Mission critical work
 Specialist (“boutique”)
work





 Commoditized work
(LPO)

Lawyers focus on legal work
and professional managers
administer (proactive mgt)
Emphasis on using technology
Multiple career paths
Contract lawyers
Flexible work arrangements
Growth/succession planning
by recruiting and retaining
people based on work to be
performed
Globalization through law firm
alliances
17
AUSTRALIA
18
AUSTRALIA
19
UK
20
USA
21
Competencies and
Career Paths
Law Firm Competency Based Development Models
Same model but
different outcomes
for different career
paths
Career Path
Competency
Model
Career Path
23
Typical Law Firm Competencies
(Partnership Track Associates)
 Legal writing and





research
Legal knowledge
Leadership
Ethics and professional
responsibility
Problem solving
Community service
•
•
•
•
•
•
•
•
Project Management
Team building
NEW
Client service
Relationship
building/networking
Self awareness
Adaptability/flexibility/
innovation/creativity
Communication
Ownership and
accountability
Usually number around 8-16
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FRAMEWORK: Law Firm Talent Management
(Integrated Competency-Based Development Model)
Recruitment
(Talent
Inflow)
Learning
(Training)
Programs
Work
Experience
(Work Assignment)
Pro
Competencies
Bono
Benchmarks
Career Planning
& Development:
Coaching
Mentoring
Counseling
Evaluation
Ongoing
Feedback:
Succession
Planning
(Talent
Outflow)
Promotion
Compensation
Talent
Development
(Retention!)
25
The Impact of Change
on Law Schools
Changes: Law Schools Mirror Law Firms
Law Firms
Law Schools
Governance
Leadership
Competencies
Talent
Management
Curricula
Teaching
Skills
Competencies
Governance
Leadership
Practical, Practical, Practical
27
Stanford Law School
28
Emphasis on learning by doing (“multi-dimensional JD”)
Coursera
29
What Does
the Future Hold?
USA
31
Source: Adam Smith, Esq, Growth Is Dead: Part 2 (September 10, 2012)
Emerging Trends in Recruitment in
the “New” Normal
 Recruiting for new/different competencies
 Laterals versus new hires
 Must be able to “hit the ground running”
 Leveraging Gen Y
flexibility/mobility/techno-savvy/work/life
balance focus
 Target recruitment on bringing the talent
“back home” and being a place to learn
more, faster
 Managing for mobility
32
Some Thoughts
To End…
What got law firms and
law schools here, will
not get them there!
34
35
Diversity
36
Questions?
37
Thank You
38