Is lateral partner hiring a game of musical chairs that law firms can’t win? Anecdotes about unsuccessful lateral hires abound. You hear stories about high-profile partners moving from Firm A to Firm B, often lured by huge guarantees, only to leave Firm B a few years later, after failing to integrate or deliver the expected business.
And some of the most successful firms in all the land, places with immense prestige and sky-high profits, do very little lateral hiring. Their refusal to engage in the lateral market hasn’t seemed to hurt them.
When it comes to lateral hiring, should firms “just say no”? Well, that’s not what’s actually happening in the marketplace. Last year, lateral partner hiring climbed, suggesting that it must be working out — at least for some firms….
“One of the well-known facts about law school is it never took three years to do what we are doing; it took maybe two years at most, maybe a year-and-a-half,” Larry Kramer, the former dean of Stanford Law, said in a 2010 speech. The continuing existence of the third year of law school is generally held to be one of the basic structural defects in our current legal education model, alongside the contracted job market and soaring tuition. There have been efforts to address the problem, the latest being NYU’s announced overhaul of its third year curriculum.
Yet these attempts to redefine what the 3L year means appear to many like half-measures at best, “lipstick on a pig” at worst. As we noted back in November, Professor Bill Henderson of Indiana/Maurer has made a sweeping proposal that calls for a special new program for 3Ls by a coalition of willing law schools. The 3Ls would embark on a skills-based, teamwork-heavy course of study in partnership with law firms who agree to employ the students, albeit at a reduced rate. Also, there is a proposal currently before the New York Bar that would allow students to take the bar exam after two years. These students would not obtain a J.D. unless they return for their third year, but would be eligible for a bar card.
In assessing the NYU proposal (basically an increase in study abroad and specialty courses), Professor Kenneth Anderson argues that law schools have allowed educational incentives (i.e., learning to how to be a lawyer) and credentialing incentives (i.e., becoming an attractive job candidate) to drift apart: “The problem lies in how very, very unattractive we’ve institutionally made [students’] incentives – and the price tag attached to what is essentially a bet rather than investment. It’s a bet with many more bad payoffs than good ones.”
All the discussion and debate about the three-year law school model focuses, understandably, on the utility of that third year. We thought it would be interesting to have a look at our survey data to get a sense of how the experience of law students changes over time. The ATL Insider Survey asks law students and alumni to rate their schools in academic instruction, career counseling, financial aid advising, practical/clinical training, and social life. We wondered how, if at all, these perceptions differ between 1Ls and 3Ls….
This is the time of year, every year, where most of us pause and reflect a bit on the past year, the year ahead, and what really matters anyway (see, e.g., this guy). And with the horror and pain of last week still fresh, this need for reflection is bound to be more pronounced.
Many thoughtful people are urging serious reflection on the part of the legal industry about how to address its basic structural problems. Not to put too fine a point on it, but does anybody disbelieve that the industry — both its educational and professional wings — is facing a sort of existential crisis? As has been endlessly rehearsed here and elsewhere, the cost of legal education is, for most, completely, utterly out of whack with the potential ROI. And longstanding assumptions underlying the business model of law firms are being challenged by technological advances, commoditization, and the growth of LPOs.
One concept threading through any discussion of the legal industry is this nebulous thing called “prestige.” Generally speaking, lawyers as a group dislike uncertainty, and “prestige” serves as a sort of organizing principle, letting everyone know where they stand. For instance, the U.S. News “T14” shows no sign of ever being shaken up. And the Biglaw hive mind consistently orders firms in precise ways. The Vault rankings are remarkably stable from year to year, to such a degree unlikely to be attributable to some self-reinforcing cycle caused by the rankings themselves. An arbitrary and typical example: Schulte Roth, which came in at #77 overall in 2010, ranked 80, 77, 76, and 82 over the previous four years. Another: Alston & Bird, which came in at #55, ranked 57, 61, 59, and 57 over the same period.
But apart from its role as a social validator or organizer, this idea of “prestige” can be used as a dubious metric in driving some truly momentous decisions. Law students make hugely important career choices based on little else but the Vault and U.S. News rankings. Some law schools lie in order to game the U.S. News rankings. It is at least partially underlying Dewey & Leboeuf’s push to join the more rarefied ranks of the S&C’s and Cravath’s. (Meanwhile, the ATL commentariat goes beserk at the slightest whiff of “TTT” anywhere within its sights.)
After the jump, let’s hear from a couple disparate sources about the baleful effects of prestige-obsession on the legal industry, and then let’s have the Harvard guy defend it….
Ed. note: This is the first in a new series, “Across the Desk,” from Bruce MacEwen and Janet Stanton of Adam Smith Esq. and JDMatch. “Across the Desk” will take a thoughtful look at recruiting, career paths, professional development, human capital and related issues. Some of these pieces will have previously appeared, in slightly different form, on AdamSmithEsq.com.
As noted in the American Lawyer recently, the lateral recruiting boom of recent years continues unabated. As the Am Law article points out, “At the same time [as they’re focused on hiring lateral partners], firms appear to be homing in on their poor performers. Nine out of 10 survey respondents said their firm has ‘unprofitable’ partners, and seven out of 10 said their firms have partners at risk of being deequitized or ‘put on performance plans.’ As one survey respondent put it: ‘There are too many partners without sufficient billable work.’”
Now, wouldn’t you think it would make sense — if firms are worried about underperformers — to pay some attention to associates as well as partners? After all, some of those associates should, speaking theoretically at least, be your future partners.
Yet there’s unrebutted evidence that firms look at the wrong criteria when hiring associates….
Greetings from San Francisco, home of the world champion Giants, surprisingly noisy trolley cars, and the faint smell of cannabis pretty much everywhere. We’re in town to attend Ark Group‘s conference on “The Brave New World of Entry-Level Recruiting,” which examines how the world of law student recruiting by firms has changed (and will continue to evolve) since the onset of the Great Recession. Moderated by Bruce MacEwen, who kicked off the proceedings by framing the day as an opportunity for “frank conversation” between schools and firms, the conference featured an absolute Murderers’ Row of industry thought leaders, including Orrick‘s Ralph Baxter, legal academia’s apostate Paul Campos, NALP’s Jim Leipold, Indiana/Maurer‘s Bill Henderson, three Biglaw hiring partners, and deans from Berkeley, Stanford, and Hastings.
Read on for some highlights and takeaways from yesterday’s conference.
There’s actually some data driving this discussion. According to Chen, citing research by Professor Henderson, graduates of Loyola University Chicago School of Law are six times more likely to make partner at a major law firm than graduates of the higher-ranked University of Chicago Law School, located just a few miles to the south. It seems that even though Chicago Law grads may have an easier time breaking into Biglaw than their Loyola – Chicago counterparts, the Loyola folks who do make it in the door tend to have longer-lasting law firm careers.
Let’s not pick on U. Chicago. There are other elite law schools with even higher Biglaw “washout” rates….
He probably would have made a great modern law professor, but Aristotle would be a crappy practicing attorney.
Here’s an argument you don’t hear everyday: law firms who hire the smartest people are hurting their business.
That’s the gist of the argument by Bill Henderson, a professor at Indiana University’s Maurer School of Law who studies the legal profession (and whom we’ve quoted often in these pages). At least if we define “smart” as people who did very well on the LSAT and go to the “best” (as in highest-ranked) law schools. Henderson says that there are a lot of different skills that go into being a profitable lawyer, and being a slightly better standardized test taker than somebody else is not the most important of those skills.
Hey, you know what Aristotle says: “I know enough to know that being able to quote myself makes me an over-educated douche who can barely balance my abacus.”…
Late last month, we posed a question: Can Stanford overtake Harvard and Yale and become the #1 law school? We consulted our Magic 8 Ball, which gave this answer: “Outlook Not So Good.”
And it’s not just the Magic 8 Ball. Professor Bill Henderson, one of the leading academics studying the legal profession, constructed a simulation model of the U.S. News rankings. He used this model to figure out what Stanford Law School would have to do to top the list.
For starters, it would need to get its hands on at least $350 million dollars….
A college graduate without student loan debt is akin to reading a kind quote about Kim Kardashian in a tabloid—it’s rare.
In the past eight years, student loan debt has nearly tripled to a whopping $1.1 trillion, and in the past 10 years, the percentage of 25-year-olds with such debt has risen from 25% to 43%
It’s gotten so bad, in fact, that New York Fed economists warned last month that the burden of student debt could stilt consumer spending by twentysomethings, as well as further hamper the recovery of the housing market and economy.
To get a better idea of what massive student loan debt (we’re talking over $100,000 massive) looks like, we talked to an attorney who graduated with a large student loan debt. We also consulted LearnVest Planning Services CFP® Katie Brewer to see just how their repayment plans stack up.
S. Fischer, 36, Attorney Graduated: 2001
How Much I Borrowed: $100,000
What I Still Owe: $45,000
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Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past six years. You can reach them by email: firstname.lastname@example.org.
Deal flow has clearly picked recently up for most US associates, counsels and partners in Hong Kong/China and Singapore. We are on the phone with a lot of these folks on a daily basis, many of whom we have known for years. Further, the head of our Asia team, Evan Jowers, and Kinney’s founder and president, Robert Kinney, frequently meet in person with leading US partners in Asia to assess their needs and keep on top of the inside scoop at as many firms as possible. The need for legal recruiting help in Asia from experienced recruiters appears to be live and well. In March, Evan and Robert were in Beijing at such meetings, in April, Evan was in Hong Kong, and for half of June Evan will be in Shanghai and Hong Kong. Thus its pretty easy for us to tell when there has been an across-the-market pick up in capital markets and corporate work.
On an average day in Asia when Evan and Robert visit firms, they typically have 5 to 9 meetings a day, mostly with US partners in the market. The reason they have these meetings is not simply because Kinney makes a lot of US attorney placements in Asia and that a particular firm may have openings; instead these are just visits with friends. After years of working together as business partners, the folks at Kinney are actually these peoples’ friends. The firms Kinney work closely with in Asia (which is just about every law firm – call us if you want to know the one firm in the world we will never place anyone with again, ever, and why) look forward to the visits, or at least act like they do. After seven years in the market, many of the client partners are former associate candidates. Also, these US partners see Kinney as a very good source of market information as well, because they know how deep their contacts are in the market and how frequently they are speaking to counterparts at peer firms.
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