There are three categories of intelligence in the legal vertical–intellectual, emotional, and artificial. Many lawyers have elevated IQ’s, though relatively few seem to possess high EQ’s– commonly called ‘people skills’. Only the best lawyers—trusted advisers– have both. Artificial intelligence (AI), a recent entrant in the legal vertical, scores high on IQ, but the jury is still out on whether machines can develop comparable EQ.
The legal industry is known for adherence to precedent, not innovation. While precedent remains a guiding principle in the practice of law, innovation is transforming the models, methods, and players involved in the buy/sell process of legal services. Technology, process, access to institutional capital, re-reregulation, client demand for enhanced value, and changes in other professional service industry delivery models—notably medicine and accounting– are legal innovation’s principal drivers.
Mark Cohen discusses his career and the changing legal market on LegalBusiness World podcast.
Legal education has received a great deal of criticism in recent years—cost, student debt burden, declining enrollment and selectivity, a baffling building boom, graduates that are neither practice nor market ready, dismal job statistics, etc. What has been largely overlooked in the legal education discussion is the plight of a far larger segment of the legal ecosystem– practicing lawyers.
It’s A Whole New Ballgame
Lawyers are toiling in an industry that has been overhauled by a perfect storm of change agents– the global financial crisis of 2008 and its fallout; client dissatisfaction with existing delivery models; the escalating role of technology and process management in legal delivery-often referred to as ‘disaggregation’; an influx of legal service providers and the growth of in-house legal departments (read: law firm competition); and the creation of new delivery models. How will practicing lawyers receive the (re)-training necessary to survive—much less to thrive—in the new legal delivery order?
Most practicing lawyers were prepared for a legal marketplace that is vanishing. Their law school experience was steeped in doctrinal learning and, perhaps, a dollop of ‘real life’ exposure via clinics. And while that was just fine as recently as a decade ago, it’s not now. Legal delivery, once synonymous with the practice of law, is now a three-legged stool comprised of legal, technological, and process expertise. The vast majority of practicing attorneys have had little or no preparation for navigating the impact of technology and process/project management on legal delivery. Nor have they learned about collaboration, leadership, financial fluency, or other skills at law school or on the job where they are consumed by billing hours and making a living. That’s why practitioner re-education must be a part of the legal education reform discussion. It’s not just law students who must be educated for the new legal marketplace and where it’s headed; it’s practicing lawyers, too.
The rule of law is the foundation that supports the pillars of our democracy. It creates a social contract and is the arbiter of disputes as well as the insurer of basic human rights. Lofty stuff, but what exactly is the rule of law? The World Justice Project offers a four-pronged functional definition.
- The government and citizens are accountable under the law.
- The laws are clear, just, and applied evenly to protect fundamental rights, including core human rights.
- The process by which the laws are enacted, administered, and enforced is accessible, fair, and efficient.
- Justice is delivered timely by competent, ethical, and independent representatives that reflect the makeup of the communities they serve.
It’s time the U.S. legal industry puts pressure on State Bars to effect re-regulation that promotes competition, sanctions law firm investment capital for technology, process, and retention of top-flight talent, and allows ‘non-lawyers’ to invest in law firms, share profits, and take them public. Australia sanctioned such re-regulation of legal guild rules nearly two decades ago. The UK followed that path about a decade later with the passage of the Legal Services Act of 2007 (LSA) and its implementation in October 2011. Other developed nations—France, Germany, and Canada, for example—are on the cusp of some form of re-regulation. The U.S. has stood pat and has thrice rejected efforts aimed at re-regulation during the new millennium. Why? [Read more…]
The Center for the Study of the Legal Profession at Georgetown University Law Center and Thomson Reuters Legal Executive Institute recently released their 2017 Report on the State of the Legal Industry. ‘The Georgetown Report,’ as it’s commonly referred to, confirms that corporate legal buyers are directing more work away from large law firms, electing to take it in-house or to legal service providers (read: alternatives sources to the traditional law firm partnership model). [Read more…]
Our democracy is in crisis. For the first time, the Economist magazine has downgraded the U.S. in its ‘Democracy Index’ from a full democracy to a flawed one, based on its assessment of the electoral process, civil liberties, the functioning of government, political participation and political culture. The demotion centered on an ‘erosion of trust in political institutions.’ [Read more…]
My doctor-let’s call him Doug- walked into his office where my wife and I were already seated. His silver hair and crisp white lab coat were straight out of a daytime soap. Doug got right to it. “Hi guys,” he began, ‘the biopsy results confirm Mark has prostate cancer. Let’s go through what that means here, analyze some key data points, and review the options. I know you have undoubtedly read up on this and have lots of questions. Please let me give you the full picture and afterwards ask anything you like. Then we can discuss my recommendations. I encourage you to get a second or third opinion and will gladly provide some names. We should agree on our course of action within the next ten days or so. I’m confident Mark will be fine.’
Many years ago at a Finley Kumble partnership meeting a friend wryly commented, ‘We’re tents in the bazaar.’ He was right; each partner operated his/her own mini-firm– setting rates, hustling business, and engaging in non-stop origination disputes. It was by no means a collegial bazaar. Decades later, the Finley Kumble version of ‘partnership’—once anathema to white shoe firms—predominates. But in addition to the ‘bazaar’ that most large law firms are, a broader competitive marketplace also exists. Law firms once dominated the legal vertical, and there was plenty of work to go around. Those days are over. In-house legal departments and legal service providers now combine for nearly half of total legal spend. The ‘tents in the bazaar’ remain, but a new digital marketplace is also emerging. It is changing the way legal services are bought and sold.