White Paper (How to Use Law Degree) 9.18.14)

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R i c h a r d G . B r o c k , E s q . | P r e s i d e n t , L a w F i t

TABLE OF CONTENTS

THE PERCEPTION OF LAW DEGREES ......................................................................................................... 3

NEW REALITY........................................................................................................................................... 5

USING YOUR J.D. THE RIGHT WAY FOR YOU ............................................................................................. 7

FIVE STEPS TO DETERMINE THE BEST WAY TO USE YOUR LAW DEGREE: .................................................. 8

Step 1: Self-reflection ......................................................................................................................... 8

Step 2: Input from Others ................................................................................................................... 9

Step 3: Your Background and Realities of the Market ......................................................................... 10

Step 4: The Skills You Learned in Law School ..................................................................................... 12

Step 5: Application and Common Themes .......................................................................................... 14

EMPLOYMENT POSSIBILITIES WITH A LAW DEGREE: .............................................................................. 16

Working for a Non-Profit ................................................................................................................... 16

Entrepreneurship .............................................................................................................................. 16

Teaching ............................................................................................................................................ 17

Sales and Business Development ....................................................................................................... 17

Consultancy ....................................................................................................................................... 17

Human Resource Management.......................................................................................................... 17

Government and Politics.................................................................................................................... 18

Banking ............................................................................................................................................. 18

Real Estate......................................................................................................................................... 18

Journalism ......................................................................................................................................... 18

Compliance ....................................................................................................................................... 18

Management ..................................................................................................................................... 19

Counseling ......................................................................................................................................... 19

Communications................................................................................................................................ 19

Finance and Accounting ..................................................................................................................... 19

Specialty Fields .................................................................................................................................. 20

CONCLUSION ......................................................................................................................................... 21

LawFit® .............................................................................................................................................. 21

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THE PERCEPTION OF LAW DEGREES

For most of its history, the legal profession has been admired and respected. Along with that respect and admiration was the general belief that a career as a lawyer was usually one of good income and financial security. Although the general respect and admiration has been waning over the last 30 years or so, the financial benefits of practicing law remained largely intact until the recent economic downturn.

The Great Recession had a significant impact on the legal profession, affecting incomes of practicing attorneys and weakening employment prospects for law students and recent law school graduates. Additional factors such as technological advances, outsourcing, reduced demand from corporate clients and new competitors such as LPO’s have made the market more difficult for established lawyers and aspiring lawyers alike. In short, it is now more difficult to find a job as a lawyer, and for those who are employed as lawyers, it is more difficult to earn a good income than in the past.

As a result, prospective law students are now more hesitant to enter law school. Applications were down approximately 18% for the most recent law school class according to the LSAC. The best and brightest college students are asking themselves, “Is law school worth it?”

Along with the declining employment prospects and reduced income in the legal profession is the fact that law school takes three years and is very expensive. The majority of law school students pay for their legal education entirely or in part by student loans. The average law school student debt is $75,000 for public schools and $125,000 for private schools according to the ABA.

So, if incomes are down, student loan debt is up, and employment prospects are worse than they have been, what is a law degree worth? What is the real value of a law degree?

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Those who follow the legal industry know this topic has been debated at length and will continue to be debated in the years to come. On one side of the argument are the skeptics. On the other side are the law schools, bar associations, and others who believe the inherent value of a law degree is worth the cost.

The purpose of this paper is not to enter that debate for one side or the other. Many people have articulated well-reasoned arguments on both sides of the debate. Instead, this paper is going to focus on a different question.

As a law student or law school graduate, if you ask, “Was it worth it?” Our response is: you are asking the wrong question. The debate about whether law school is worth the time and money is ultimately a pointless debate if you have already spent

the time and money and have your law degree or will in the near future. A more productive exercise is figuring out how to use your degree. Rather than debating the actual value of your degree, this paper will focus on different questions: What is the best way to use your J.D.? How do you maximize the value of your law degree?

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NEW REALITY

A good place to start in determining how to best use your law degree is to look at how most law degrees were utilized up until very recently. For decades, most lawyers in private practice pursued one of two common paths to success: the “larger law firm path” and the “smaller law firm path.”

For lawyers who succeeded on the larger law firm path, their careers typically went something like this: join a good firm out of law school; work hard as an associate for 6-8 years; make partner; continue to work hard; take advantage of the firm’s reputation and resources; do good work; stay in the same firm until retirement.

For lawyers who succeeded on the smaller firm path, their careers typically went something like this: join a small firm out of law school; work hard and remain with the small firm or possibly start a solo practice; build practice by establishing a reputation for hard work and producing good results for clients; continue until retirement.

Until recently the vast majority of lawyers in private practice pursued something similar to one of these two paths. Then things changed, and they changed quickly. Larger law firms began placing a major emphasis on business development. Being a good lawyer was no longer enough. Bringing clients in the door became a major component of success. Clients began to push back on fees and take bids for legal work. Longtime clients no longer maintained primary loyalty to their law firms. The steady, reliable streams of income were disrupted.

For smaller firms, business development also took on increasing importance as different competitors took away market share. Whereas lawyers on the smaller firm track used to build their practices through experience and reputation, advertising and marketing are now dominant factors in bringing in business. Technology has become a huge competitive force through services such as LegalZoom.com.

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Furthermore, almost every lawyer in private practice has been negatively affected by the global downturn which created a general decrease in the demand for legal

services in most sectors. LPO firms, off-shoring and other changes in the industry have also impacted the traditional paths of success in the legal profession.

The effect of these various forces is the traditional paths to success are now available to significantly fewer attorneys.

Those dreams simply will not become a reality for many lawyers, and that is a dramatic change in the legal profession.

Change is difficult. Change is hard to accept for most people. Nevertheless, the first step in maximizing the value of your law degree is to accept that things have changed. Statistically, you probably will not follow one of the traditional paths to success in private practice. Does that mean your law degree is not valuable? No, it means obtaining the most value from law degree will require you figuring out how to best use your degree in the reality of today’s market.

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USING YOUR J.D. THE RIGHT WAY FOR YOU

For a smaller number of you, the traditional larger law firm path is still available. Law firms will continue to hire a number of law school graduates for associate positions. As expected, those positions usually go to the graduates with the best grades from the better law schools. Also, some of you will still find success on the smaller firm path, in the government and in public interest law, although competition for all of these positions has increased.

For many, however, the traditional paths will not be available. You will need to figure out a different way to use your law degree. You will need to figure out how to maximize its value given the reality of today’s employment market. For some, this will be within the practice of law but for

others, you will be using your J.D. in some type of “alternative career path.”

The bottom line is law schools are expected to generate approximately 400,000 law school graduates in the present decade (2010-2020), but the economy will only create 75,000 new attorney positions in this same time frame (Source: Bureau of Labor Statistics). One does not need a Master’s degree in Mathematics to understand the implications: many people with law degrees will be doing something other than practicing law. Accordingly, any serious analysis of future employment options for law school graduates must give significant consideration to alternative attorney careers as well as traditional ones.

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FIVE STEPS TO DETERMINE THE BEST WAY TO USE YOUR LAW DEGREE:

Step 1: Self-reflection

Self-reflection is another term for thinking about yourself. This sounds easy enough. After all, if you didn’t know how to think, then you probably would not have graduated college, much less attended law school. Plus, who knows more about you than you? Not all thinking is the same, however, and many people, including very smart people, are not particularly good at self-reflection. Self-reflection is not easy. Done properly, it takes time, mental discipline and brutal honesty with one’s self.

Despite its difficulty, self-reflection is extremely important. Every case of career exploration, from your first job to your retirement career and everything in between, should begin with thoughtful deliberation about yourself, your interests, your values, your skills, and what you like to do and don’t like to do.

The purpose of this is not to find “the perfect job.” If that is your quest then you should stop right now. There is no perfect job, and every position will have favorable elements and unfavorable elements. Instead, the purpose of self-reflection is to help you find “the right job” or at least get you on the right career track.

For some of you, the “right job” currently is any job. When you do not have a job, then any position is appealing. Certainly, financial realities must be considered and almost any employment is better than unemployment. Nevertheless, to get the maximum value from your law degree, you must create and pursue a career plan that matches your individual interests and aptitudes with potential career options available to someone with a J.D.

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Although self-reflection is not easy, it is not necessarily complicated either. It is really comprised of questions and honest, thoughtful answers. The questions you should be asking yourself are along these lines:

When does “time fly” while I am working? What am I engaged in doing? Which activities do I avoid doing or usually procrastinate before doing? What do I find truly challenging? Which activities fill me with energy when I am doing them? What type of activities drain my energy when I am doing them? What is important to me in a work setting? What type of environment? What values are essential to me in a work setting? What do I believe I am particularly good at doing? What do I believe I am not particularly good at doing? If money were not a factor at all, what type of work would I do?

As you start to really think about these questions, and write down the answers, you will begin go see patterns emerge. You will begin to get an idea of the type of work that is a good fit for you as an individual. This is the first essential step to using your J.D. the right way for you.

Step 2: Input from Others

As important as self-reflection is, it will not give you the complete picture. No one can be entirely objective about themselves, and we all have blind spots. There are some qualities about ourselves, both good and bad, that are apparent to others but that we simply do not see. Accordingly, it is vital that you get input from others about their views of you.

This is not as difficult as it may sound. Getting input from others entails speaking to a handful of people (five is a good number, but certainly more is fine) about their view of your strengths, weaknesses, skills and aptitudes. Obviously, you should choose individuals you trust, and it should be a mix of family, friends and colleagues.

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After you have compiled this input from others, in writing, you will again probably see patterns emerge. People who know you well will not have identical views of you, of course, but there will be consistencies in their remarks. These are critical pieces of information for you, especially when you compare these consistent views of you with the patterns from your self-reflection.

These exercises may confirm beliefs you have long held about yourself, or they may reveal something you had not really considered but can see about yourself upon reflection. For instance, it may confirm that you are a very cautious person by nature, and do not like to take risks. Another example would be that you have a much stronger competitive streak than you realized, and a desire to win at almost any cost. In any event, you will start to get a clearer picture of yourself and your strengths and weaknesses.

Step 3: Your Background and Realities of the Market

The two most important factors in determining your employment prospects are your specific background and the realities of the market. These two factors intersect, both positively and negatively, to create feasible opportunities for you in the job market.

Your Background. Every law school graduate has a unique background with both strengths and weaknesses as perceived in the job market. When analyzing your background, or your unique situation, the three main considerations are your academics, your experience and your personal contacts.

As every law student knows, grades are the most important criterion for many clerkship and attorney positions. The better your academics, and the higher ranked your law school, the more opportunities you will have on the traditional attorney paths. For the vast majority of law school graduates who did not graduate at the top of the class from a highly ranked law school, certain jobs will likely not be attainable.

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This is the reality of the market. Certain positions are only going to be offered to those with the best academic credentials. This does not mean, of course, that all other law degrees are somehow less valuable. It simply means that certain career paths are not available. The key is to explore and focus on the available options, and not spend time lamenting those that are not.

The second factor which comprises your unique background is your experience. If you have experience in a particular field, either before or after attending law school, that is an enormous advantage when pursuing career options. When coupled with your law degree, your experience in an industry such as real estate, banking, insurance, finance or many others can be the distinguishing factor which separates you from the competition. If you went straight from college to law school or do not otherwise have relevant experience, then that is the reality of your background. Accept it for what it is and explore other advantages you might have, such as contacts.

The third component of your unique background is your contacts. Most business is built on relationships, and the law business is no different. If you have contacts in a given city or a given industry, that is a tremendous advantage for you. When making career decisions and exploring possible job opportunities, your contacts should be a major component of your evaluation process. Contacts can include relatives, “friends of friends,” previous employers and professors, and others you may have met through various activities.

The Market. The other main factor in determining your employment prospects is the realities of the market. The market for certain jobs is largely dependent on academic achievement, as noted above. There are, however, many other aspects of the market which must be taken into account when gathering the necessary facts for career exploration. One consideration is the type and abundance of certain jobs in your preferred geographic location. If you are seeking a position in maritime law and you live in Kansas, then the market is not in your favor. In some markets, such as rural South Dakota and Iowa, there is a great shortage of attorneys (Source: New York Times, April 8, 2013). In these areas, the market is very much in favor of attorneys because of market need and a lack of competition. At the opposite end of the spectrum, there is no shortage of

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attorneys who want to represent A List celebrities or athletes in a Sports & Entertainment Law practice. This market is extremely difficult because of the volume of competition.

This is an important part of your analysis as you consider your viable career options. If your idea of maximizing the value of your law degree is to definitely practice law regardless of location, then it makes sense for you to explore geographic areas where the market is in your favor. On the other hand, if your idea of maximizing the value of your law degree is to be an entertainment lawyer in Hollywood, then of course that is your prerogative, but you should understand the competitive challenge from the outset. The same analysis should be applied to alternative legal careers and the number of jobs available in specific career areas and geographic locations.

A great resource for this type of information, along with advice, networking connections and other types of assistance, is your law school’s Career Services Office. Whether you are a law student or alumnus, your law school’s Career Service Office is there to help you with your career issues and questions. In your efforts to maximize the value of your law degree, you should absolutely involve your law school and its career advisors.

Step 4: The Skills You Learned in Law School

Although opinions differ about the true value of a law degree, it is clear that you learn valuable skills in law school. First and foremost, you learn the law and how our legal system functions. Those who have been to law school often forget how little most people know about even the basics of our legal system. Because the legal system permeates almost every aspect of our society, understanding our laws and how they affect everyday life is an enormously valuable skill.

Additionally, law school teaches a number of other skills that are of tremendous value in almost every aspect of your life:

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Critical Thinking – it is often said that law school does not teach you how to be a lawyer but to think like a lawyer. There is certainly some truth to this. What is said less often is that learning to “think like a lawyer” has great value in workplace. Thinking like a lawyer means analyzing situations objectively; understanding both sides; and not accepting certain statements without some type of support. Many lawyers are skilled at the art of discernment. This type of critical thinking is useful in almost every professional career.

Effective written communication – You cannot succeed without the ability to communicate effectively. It is really that simple. In law school, you learn to write, and you learn to write persuasively. You learn to state facts clearly and concisely and apply legal principles to support your position. Being able to clearly state your position and support it is a skill used every day in the “real world,” regardless of field or industry.

Effective verbal communication – Whatever one thought of the Socratic Method while in law school, there is no doubt that it provides valuable training for “on your feet” thinking and verbal communication. Other facets of law school require effective verbal communication as well, such as Trial Ad classes. The ability to engage in effective verbal communication is as important as written communication skills.

Negotiation – People negotiate every day. We negotiate at work, at school, at home and elsewhere. We negotiate with our co-workers, our spouses, clients, vendors and others. Any practical training in negotiation will help in many areas of life.

Persuasion – This could be considered a subset of written and verbal communication, but it is such an important skill it is listed separately. Whether you are selling, leading, teaching, talking or writing, you are often trying to persuade someone else to accept your point of view. Learning how to persuade others more effectively is among the most valuable training you can have, and is a major component of a law school education.

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Problem-solving – The ability to understand a problem and craft thoughtful solutions is a skill that applies in countless situations in the working world. As a part of learning to “think like a lawyer,” law school helps students learn how to analyze problems objectively; think creatively about possible solutions; and apply practical options.

These are not the only skills you learn in law school, of course. In addition to the general skills learned in law school, certain classes teach specific, practical knowledge such as Tax Law or Healthcare Law. This type of knowledge is very beneficial in other professions. You do not necessarily have to work as a lawyer to utilize much of what you learned.

Step 5: Application and Common Themes

The final step is to look at your thoughts from self-reflection, the input from others, the specific attributes of your background, the realities of the market and the skills you learned in law school, and consider ways in which they overlap. Again, you should see patterns or common themes that arise. As a basic example, if you are energized by verbal communication and persuading others, and feedback from others notes that you are personable and extroverted, then a position in business development or sales could be a great fit for you. You learned communication, negotiation and persuasive skills in law school, and if these match your natural interests and abilities, then you may have discovered a career path which is an ideal fit for you.

This is probably the most challenging part of the process of maximizing the value of your law degree because it requires unconventional thinking. After all, the traditional path is to interview with a good firm as a 2L or 3L; get a job offer as a practicing attorney upon graduation and bar passage, and go to work as a lawyer. For some of you, this will be your path. For many of you, however, this path will not be an option. You will have to think creatively about how to combine your interests and aptitudes with the skills you learned in law school in order to create

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your own individual career path within the framework of your unique background and the realities of the market, whether as a practicing attorney or in an alternative career.

This will not be an easy endeavor. Finding a job in the legal field is difficult because there is heavy competition. Finding a job outside of the legal field is difficult, in part because you may lack necessary training or experience, and in part because some people outside of the legal field will wonder why you are not seeking an attorney position. But look at it this way: What other choice do you have? You are a talented, intelligent person with abilities to offer, or else you would not be a law school graduate. You can either figure out the best way to utilize what you have, and maximize the value of your law degree, or not.

Whether maximizing the value of your law degree means finding a position as a lawyer in a field or geographic location you did not originally consider, or starting a solo practice, or finding an alternative career position, it probably will be quite difficult. Difficult, however, does not mean impossible. If you are determined, persistent, positive, and open-minded, you absolutely can extract great value from your law degree.

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EMPLOYMENT POSSIBILITIES WITH A LAW DEGREE:

For the last several years, approximately 1/3 of law school graduates had not found employment as attorneys within nine months of their graduation (Source: NALP). This trend, combined with the demographic statistics previously mentioned (75,000 new attorney jobs for 400,000 law school graduates over the present decade) make alternative careers a vital topic for the legal profession. Law school graduates who are committed to maximizing the value of their law degrees must be willing to explore and seriously consider alternative careers in addition to traditional attorney career paths. There are a number of possible career options for which a J.D. is not a requirement but is certainly an asset, if used and presented correctly. Here is a representative list:

Working for a Non-Profit

In addition to Public Interest Law, which is a noble use of your law degree, many law school graduates work in other capacities for various non-profit organizations. The communication and other skills honed in law school are relevant and useful in a non-profit setting.

Entrepreneurship

46 percent of the lawyers in the U.S. are sole practitioners or belong to firms with two to five members. (Source: ABA). A solo practice is a small business. If you are running a law firm then you are an entrepreneur, and you are learning entrepreneurial skills in addition to legal experience. A number of law school graduates start other businesses, using the skills and knowledge they gained in law school and in practice to help them grow small businesses.

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Teaching

Law students learn many of the essential skills required of a successful teacher. Verbal and written communication, persuasion and critical thinking are all invaluable to a teacher. While a handful of law school graduates become law school professors, others teach at the undergraduate or high school level.

Sales and Business Development

Many lawyers are extremely effective at sales positions. The primary attributes of a good salesperson, in addition to listening skills, integrity and the ability to connect with people, are skills in communication and persuasion. Communication and persuasion skills are among the main skills learned in law school. While a number of attorneys find “sales” to be somehow distasteful, it should be realized that every business enterprise begins with sales, including law firms. In the legal industry, sales is referred to by other terms such as originations or business development. Regardless of the term used or specific industry involved, a person who is effective at sales and business development is among the most valuable players in the business world.

Consultancy

Law school graduates are well positioned to work as consultants. A person with a J.D. and an additional focus on a particular field, such as a heavily regulated field like insurance, banking or utilities, can carve out a lucrative consulting niche in the market.

Human Resource Management

With a knowledge of labor and employment laws, some law school graduates have found good career tracks in the HR field. Their knowledge of applicable laws as well as their other skills make them desirable candidates in this area.

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Government and Politics

In addition to the fact that many politicians are law school graduates, a number of lawyers work in and around government in other roles. Some work within government agencies as attorneys for the agencies or in other roles. Some work with legislators behind the scenes, and a number of lawyers find great career satisfaction as lobbyists at the state or federal level.

Banking

Law school graduates fill a number of roles within banking institutions in addition to in-house counsel. Trust department officers in particular are often comprised of attorneys. Compliance departments are another area where attorneys can be found within financial institutions.

Real Estate

Law graduates possess two skills that are quite valuable in the real estate market: negotiation and an intricate knowledge of applicable laws. Practical knowledge gained through relevant law school classes, such as property, contracts and tax, are clearly beneficial in a real estate career.

Journalism

Many active journalists are law school graduates. Research, fact checking and writing are the key skills required of a journalist and these are taught at law schools.

Compliance

Numerous industries are heavily regulated, and compliance is an essential function within them. With a background in the law and the skills to interpret complex regulations, attorneys often fill compliance positions in healthcare

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organizations, insurance companies, utilities, financial institutions and many others.

Management

Management positions are frequently associated with businesses. While law schools typically do not teach management skills, they do teach the laws which are highly relevant to businesses such as corporate law, tax law, bankruptcy, contracts, intellectual property and more. With this background in relevant laws which impact business, a law school graduate with the right aptitudes to manage people has an inherent advantage over someone without a J.D.

Counseling

Nearly all lawyers engage in some type of counseling. The ability to effectively give advice to a person in a challenging situation is a learned skill which begins in law school. A lawyer who has enhanced this skill through experience has the fundamentals in place to work as a counselor. Certainly, some types of counseling will require additional education and/or training, but the basic skill set will have been established.

Communications

The field of Communications includes a variety of positions in which writing and speaking are the primary functions, such as work for online or print publications, and public speaking or broadcasting. Communication skills in general are among the most valuable skills one can have in the workplace. Lawyers receive intense training in both written and verbal communication skills during law school.

Finance and Accounting

A law school graduate with an aptitude for numbers has an advantage over many competitors because of the tax law courses and other training provided in law

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school. Some CPA firms as well as banks and other entities hire law school graduates who work on accounting, finance and tax issues.

Specialty Fields

A law degree is a versatile degree, and when it is combined with a focus on a particular field it can be especially attractive in the job market. Whether through experience gained before or after law school, additional education or other training, a law school graduate who is a “specialist” in certain fields is valuable in the job market. Fields that have a heavy legal component, such as healthcare, real estate, construction and insurance are viable career paths for the law school graduate who has or can obtain a specialty.

This list is by no means exhaustive. There are law school graduates working in countless alternative careers throughout the country. These careers are in the private sector, with non-profits and at almost every level of government. For most law school graduates in these positions, their J.D. is at minimum a valuable asset, and frequently is the distinguishing factor which launched them on their alternative career path.

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CONCLUSION

Landing any professional level job in today’s market, within the practice of law or in an alternative career, takes hard work, a consistently positive attitude and persistence. This is true with or without a law degree. A law degree can make a big difference, however, and is usually very helpful in the quest for good, interesting career options. At the end of the day, obtaining the maximum value of your law degree is largely up to you and how you use it.

Richard G. Brock, Esq.

President and Co-founder, LawFit®

Richard Brock is a consultant, attorney recruiter, attorney coach, entrepreneur and former practicing lawyer. Prior to launching LawFit, he was the CEO and Co-founder of American Legal Search, a national legal recruiting firm. He has worked with numerous law firms, corporations and hundreds of attorneys across the country on strategy, growth initiatives, business development and career issues.

LawFit®

The LawFit® Career Assessment is online test designed to help lawyers and law students make better career decisions. It was created specifically for lawyers and law students to help them answer two questions:

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Which legal practice areas are the best fit for my career? Which general (non-legal) career fields are the best fit for my career?

The LawFit® Career Assessment measures interests, preferences, values and what a person likes to do. Our unique test then matches those measurements with your most compatible career options, both within the practice of law and outside of the practice of law. The assessment also provides detailed insight into your personal motivators and preferred work environment, both of which are critical to your work life. It is an extremely valuable career guidance tool for those who believe career satisfaction is an essential part of professional success.

Specifically, LawFit® helps lawyer and law students:

Conduct more effective, focused job searches Explore numerous practice areas and career fields in a time-efficient

manner Improve networking and interviewing skills by creating greater self-

awareness Work more productively with their law school career advisors

The LawFit® Career Assessment is the only assessment designed specifically for lawyers and law students. Our assessment was created for you to help you find your calling.

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White Paper (How to Use Law Degree) 9.18.14)