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.. Building & Managing Legal Incubators to
Attract New Lawyers:
Considering Different Budgets, Objectives, and Timelines
ACLEA 55th Annual Meeting
July 29, 2019
Chicago, Illinois
Anne-Marie Rábago, Director
Texas Opportunity & Justice Incubator
Law Practice Management Program
All rights reserved © 2019 State Bar of Texas
Who are you?
All rights reserved © 2019 State Bar of Texas
Coming up…
• Background on legal incubators
• New lawyers and incubators
• Budgets, objectives, and timelines
• Next Steps
All rights reserved © 2019 State Bar of Texas
So, what exactly IS an incubator?
All rights reserved © 2019 State Bar of Texas
We bridge the
access to justice gap
by assisting new lawyers
in establishing
sustainable practices
that serve low- and modest-
income Texans.
All rights reserved © 2019 State Bar of Texas
ABA Standing Committee on the Delivery of Legal Services
65 Legal Incubators in the US
All rights reserved © 2019 State Bar of Texas
107
Different
Entities
Law Schools
Legal Aid
Bar
Associations
Free-standing Libraries
Nonprofits
Firm A2J
Bar Found
Court
Operating Entities
ABA Standing Committee on the Delivery of Legal ServicesAll rights reserved © 2019 State Bar of Texas
ABA Standing Committee on the Delivery of Legal Services
The Incubator “Movement”
All rights reserved © 2019 State Bar of Texas
Where did legal incubators come from?
46776
85%
76% 77%
81%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
72%
74%
76%
78%
80%
82%
84%
86%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Graduates % Employed requiring bar passage
All rights reserved © 2019 State Bar of Texas
Another reason for legal incubators
1 in 5 low-income
2 in 5 modest-income
All rights reserved © 2019 State Bar of Texas
Another reason for legal incubators
“Corporate entities, often utilizing non-lawyers, are
stepping in to try to serve the vast sweep of Americans
we lawyers aren’t. While their activities raise profound
concerns, only saying no to them, without saying yes to
something else, is inadequate.”
Frank Stevenson
State Bar of Texas, 2016-2017 President
Texas Bar Journal, February 2016
All rights reserved © 2019 State Bar of Texas
It is working!
All rights reserved © 2019 State Bar of Texas
Since inception, TOJI lawyers:
• represented 2,196 clients in 28 areas of law,
• spent 9,893 hours serving 1,094 modest-income clients,
• provided full pro bono representation of 286 low-income clients,
• gave 3,586 pro bono hours, and
• saved Texans approximately $1,706,482 in legal fees.
All rights reserved © 2019 State Bar of Texas
As a central
Texas based
program, TOJI
has served
clients in 70
of Texas’ 254
counties.
All rights reserved © 2019 State Bar of Texas
And, the best
reason for
legal
incubators…
All rights reserved © 2019 State Bar of Texas
All rights reserved © 2019 State Bar of Texas
co·hort /‘kō-,hôrt/
noun
Definition of cohort
1 : a supportive, small community of individuals who share
similar characteristics and circumstances
// a cohort of business school students
2 : a group of warriors or soldiers
3 : BAND, GROUP
// a cohort of supports
// the cohort of people born in the 1970’s
All rights reserved © 2019 State Bar of Texas
Who are these incubator lawyers?
47%
53%
TOJI
Female
Male
36%
64%
ALL
TEXAS LAWYERS
0%
71%
24%
5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Generation Z:
1997-2012
Millennials:
1981-1996
Generation X:
1965-1980
Baby Boomers:
1946-1964
AGE DISTRIBUTION
Generation definitions from Pew Research Center
All rights reserved © 2019 State Bar of Texas
Who are these incubator lawyers?
58%
13%
11%
5%
3%
10%
TOJI
White
Hispanic/Latino
Black/African-American
Asian/Pacific Islander
American Indian/Alaska Native
Other
80%
9%
5%
4%
<1%
2%
ALL TEXAS LAWYERS
All rights reserved © 2019 State Bar of Texas
TOJI Operating Values
Service Do well by doing good
Entrepreneurial Spirit Fail fast, learn, improve, fail again
Community Find my people and my place
Wellness Secure your oxygen mask, first
Respect Treat others as you wish to be treated
All rights reserved © 2019 State Bar of Texas
Requirements to be in TOJI
• Participate and pay membership fee
• Carry malpractice insurance
• 10 pro bono hours/month
• Meet milestones and report metrics
All rights reserved © 2019 State Bar of Texas
Why be in TOJI?
All rights reserved © 2019 State Bar of Texas
Applying Lessons Learned
1. Craft impact opportunities
2. Build community
3. Focus on wellness
4. Create self-managed options
All rights reserved © 2019 State Bar of Texas
Questions
All rights reserved © 2019 State Bar of Texas
Objectives
Timelines
Budgets
All rights reserved © 2019 State Bar of Texas
Your Objectives
Staff Size Space Curriculum Outreach
Program Design
Your Objectives
Size
Space
Staffing
Curriculum
OutreachAll rights reserved © 2019 State Bar of Texas
What’s this going to cost me?How much time do you have?
All rights reserved © 2019 State Bar of Texas
How much dough do you have?
All rights reserved © 2019 State Bar of Texas
What’s this going to cost me?
All rights reserved © 2019 State Bar of Texas
Golden Triangle at Work
Large Mid-range Small
TOJI 2 3 4 5 6 7
Operating
Entities Bar
Association
Bar
Association
& 5 Law
Schools
Bar
Foundation
Bar
Association
Law School
Consortium
of 3 Law
School
Bar
Association
Budget
(Cash) $327,000 $286,000 $165,000 $126,500 $68,000 $44,000 $8,000
Size 20 (30 cap) 18 (30 cap) 6 13 (30 cap) 14 12 (15 cap) 4
Space Coworking Subsidized Subsidized Subsidized Donated Negotiated Leased
Staff (FTE) 2 2 1.5 1 0.5 (alloc) 0.5 (K) 0 (vol)
Launch April 2017 Mar 2016 Oct 2016 Jan 2016 June 2012 Mar 2015 Sept 2015
All rights reserved © 2019 State Bar of Texas
Large program budgets
53%
30%
11%
6%
TOJI
Staff
Rent
Marketing & Program Development
Other (Travel, Office Expense, etc.)
48%
39%
9%
4%
NO 2
All rights reserved © 2019 State Bar of Texas
Mid-range program budgets
78%
11%
9%
2%
NO 3
Staff
Rent
Marketing & Program Development
Other (Travel, Office Expense, etc.)
75%
14%
0%
11%
NO 4
All rights reserved © 2019 State Bar of Texas
Small program budgets
90%
0%
5%
5%
NO 5
Staff
Rent
Marketing & Program Development
Other (Travel, Office Expense, etc.)
91%
0%
7% 2%
NO 6
All rights reserved © 2019 State Bar of Texas
TOJI Evolution
Launch &
Scale
• April 2017 – May
2018
• Grew from 0 to 30
member lawyers
TOJI 2.0
Redesign
• May 2018 – July
2019
• Added 8 new
member lawyers
TOJI 2020
Reinvention
• August 2019 –
January 2020
• Develop virtual
delivery model &
expand statewide
All rights reserved © 2019 State Bar of Texas
TOJI 2020 Program
• Now, a 12-month program
• Phase-gate process at 6-months
• Accelerator Phase (leading to)
• Business Incubator Phase
• After 12 months, TOJI Members become TOJI Alumni
• Offerings based on business needs
All rights reserved © 2019 State Bar of Texas
Vision for TOJI
Look to TOJI for the
happiest,
healthiest,
most productive,
practicing lawyers
in the State of Texas.
All rights reserved © 2019 State Bar of Texas
Where do you go from here?
1. Return with your learnings
2. Explore your organization’s interest
3. Survey community interest/collaboration
4. Create a plan!
All rights reserved © 2019 State Bar of Texas
Questions
All rights reserved © 2019 State Bar of Texas
Never doubt that a
small group of
thoughtful, committed
citizens can change
the world; indeed,
it's the only thing
that ever has.
~ Margaret Mead
All rights reserved © 2019 State Bar of Texas
Shameless plug
Join me TOMORROW for
End User Experience:
Hearing from New Lawyers Who Participated in an Incubator Program
10:00am in Zurich F
For more information
• Contact me at Anne-Marie.Rabago@Texasbar.com
• Visit us online at http://txoji.com
• Follow us on social media for news and program updates
Building & Managing Legal Incubators to
Attract New Lawyers:
Considering Different Budgets, Objectives, and Timelines
ACLEA 55th Annual Meeting
July 29, 2019
Chicago, Illinois
Anne-Marie Rábago, Director
Texas Opportunity & Justice Incubator
Law Practice Management Program
All rights reserved © 2019 State Bar of Texas

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Building & Managing Legal Incubators to Attract New Lawyers: Considering Different Budgets, Objectives, and Timelines

  • 1. .. Building & Managing Legal Incubators to Attract New Lawyers: Considering Different Budgets, Objectives, and Timelines ACLEA 55th Annual Meeting July 29, 2019 Chicago, Illinois Anne-Marie Rábago, Director Texas Opportunity & Justice Incubator Law Practice Management Program All rights reserved © 2019 State Bar of Texas
  • 2. Who are you? All rights reserved © 2019 State Bar of Texas
  • 3. Coming up… • Background on legal incubators • New lawyers and incubators • Budgets, objectives, and timelines • Next Steps All rights reserved © 2019 State Bar of Texas
  • 4. So, what exactly IS an incubator? All rights reserved © 2019 State Bar of Texas
  • 5. We bridge the access to justice gap by assisting new lawyers in establishing sustainable practices that serve low- and modest- income Texans. All rights reserved © 2019 State Bar of Texas
  • 6. ABA Standing Committee on the Delivery of Legal Services 65 Legal Incubators in the US All rights reserved © 2019 State Bar of Texas
  • 7. 107 Different Entities Law Schools Legal Aid Bar Associations Free-standing Libraries Nonprofits Firm A2J Bar Found Court Operating Entities ABA Standing Committee on the Delivery of Legal ServicesAll rights reserved © 2019 State Bar of Texas
  • 8. ABA Standing Committee on the Delivery of Legal Services The Incubator “Movement” All rights reserved © 2019 State Bar of Texas
  • 9. Where did legal incubators come from? 46776 85% 76% 77% 81% 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 72% 74% 76% 78% 80% 82% 84% 86% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Graduates % Employed requiring bar passage All rights reserved © 2019 State Bar of Texas
  • 10. Another reason for legal incubators 1 in 5 low-income 2 in 5 modest-income All rights reserved © 2019 State Bar of Texas
  • 11. Another reason for legal incubators “Corporate entities, often utilizing non-lawyers, are stepping in to try to serve the vast sweep of Americans we lawyers aren’t. While their activities raise profound concerns, only saying no to them, without saying yes to something else, is inadequate.” Frank Stevenson State Bar of Texas, 2016-2017 President Texas Bar Journal, February 2016 All rights reserved © 2019 State Bar of Texas
  • 12. It is working! All rights reserved © 2019 State Bar of Texas
  • 13. Since inception, TOJI lawyers: • represented 2,196 clients in 28 areas of law, • spent 9,893 hours serving 1,094 modest-income clients, • provided full pro bono representation of 286 low-income clients, • gave 3,586 pro bono hours, and • saved Texans approximately $1,706,482 in legal fees. All rights reserved © 2019 State Bar of Texas
  • 14. As a central Texas based program, TOJI has served clients in 70 of Texas’ 254 counties. All rights reserved © 2019 State Bar of Texas
  • 15. And, the best reason for legal incubators… All rights reserved © 2019 State Bar of Texas
  • 16. All rights reserved © 2019 State Bar of Texas
  • 17. co·hort /‘kō-,hôrt/ noun Definition of cohort 1 : a supportive, small community of individuals who share similar characteristics and circumstances // a cohort of business school students 2 : a group of warriors or soldiers 3 : BAND, GROUP // a cohort of supports // the cohort of people born in the 1970’s All rights reserved © 2019 State Bar of Texas
  • 18. Who are these incubator lawyers? 47% 53% TOJI Female Male 36% 64% ALL TEXAS LAWYERS 0% 71% 24% 5% 0% 10% 20% 30% 40% 50% 60% 70% 80% Generation Z: 1997-2012 Millennials: 1981-1996 Generation X: 1965-1980 Baby Boomers: 1946-1964 AGE DISTRIBUTION Generation definitions from Pew Research Center All rights reserved © 2019 State Bar of Texas
  • 19. Who are these incubator lawyers? 58% 13% 11% 5% 3% 10% TOJI White Hispanic/Latino Black/African-American Asian/Pacific Islander American Indian/Alaska Native Other 80% 9% 5% 4% <1% 2% ALL TEXAS LAWYERS All rights reserved © 2019 State Bar of Texas
  • 20. TOJI Operating Values Service Do well by doing good Entrepreneurial Spirit Fail fast, learn, improve, fail again Community Find my people and my place Wellness Secure your oxygen mask, first Respect Treat others as you wish to be treated All rights reserved © 2019 State Bar of Texas
  • 21. Requirements to be in TOJI • Participate and pay membership fee • Carry malpractice insurance • 10 pro bono hours/month • Meet milestones and report metrics All rights reserved © 2019 State Bar of Texas
  • 22. Why be in TOJI? All rights reserved © 2019 State Bar of Texas
  • 23. Applying Lessons Learned 1. Craft impact opportunities 2. Build community 3. Focus on wellness 4. Create self-managed options All rights reserved © 2019 State Bar of Texas
  • 24. Questions All rights reserved © 2019 State Bar of Texas
  • 26. Your Objectives Staff Size Space Curriculum Outreach Program Design Your Objectives Size Space Staffing Curriculum OutreachAll rights reserved © 2019 State Bar of Texas
  • 27. What’s this going to cost me?How much time do you have? All rights reserved © 2019 State Bar of Texas
  • 28. How much dough do you have? All rights reserved © 2019 State Bar of Texas
  • 29. What’s this going to cost me? All rights reserved © 2019 State Bar of Texas
  • 30. Golden Triangle at Work Large Mid-range Small TOJI 2 3 4 5 6 7 Operating Entities Bar Association Bar Association & 5 Law Schools Bar Foundation Bar Association Law School Consortium of 3 Law School Bar Association Budget (Cash) $327,000 $286,000 $165,000 $126,500 $68,000 $44,000 $8,000 Size 20 (30 cap) 18 (30 cap) 6 13 (30 cap) 14 12 (15 cap) 4 Space Coworking Subsidized Subsidized Subsidized Donated Negotiated Leased Staff (FTE) 2 2 1.5 1 0.5 (alloc) 0.5 (K) 0 (vol) Launch April 2017 Mar 2016 Oct 2016 Jan 2016 June 2012 Mar 2015 Sept 2015 All rights reserved © 2019 State Bar of Texas
  • 31. Large program budgets 53% 30% 11% 6% TOJI Staff Rent Marketing & Program Development Other (Travel, Office Expense, etc.) 48% 39% 9% 4% NO 2 All rights reserved © 2019 State Bar of Texas
  • 32. Mid-range program budgets 78% 11% 9% 2% NO 3 Staff Rent Marketing & Program Development Other (Travel, Office Expense, etc.) 75% 14% 0% 11% NO 4 All rights reserved © 2019 State Bar of Texas
  • 33. Small program budgets 90% 0% 5% 5% NO 5 Staff Rent Marketing & Program Development Other (Travel, Office Expense, etc.) 91% 0% 7% 2% NO 6 All rights reserved © 2019 State Bar of Texas
  • 34. TOJI Evolution Launch & Scale • April 2017 – May 2018 • Grew from 0 to 30 member lawyers TOJI 2.0 Redesign • May 2018 – July 2019 • Added 8 new member lawyers TOJI 2020 Reinvention • August 2019 – January 2020 • Develop virtual delivery model & expand statewide All rights reserved © 2019 State Bar of Texas
  • 35. TOJI 2020 Program • Now, a 12-month program • Phase-gate process at 6-months • Accelerator Phase (leading to) • Business Incubator Phase • After 12 months, TOJI Members become TOJI Alumni • Offerings based on business needs All rights reserved © 2019 State Bar of Texas
  • 36. Vision for TOJI Look to TOJI for the happiest, healthiest, most productive, practicing lawyers in the State of Texas. All rights reserved © 2019 State Bar of Texas
  • 37. Where do you go from here? 1. Return with your learnings 2. Explore your organization’s interest 3. Survey community interest/collaboration 4. Create a plan! All rights reserved © 2019 State Bar of Texas
  • 38. Questions All rights reserved © 2019 State Bar of Texas
  • 39. Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has. ~ Margaret Mead All rights reserved © 2019 State Bar of Texas
  • 40. Shameless plug Join me TOMORROW for End User Experience: Hearing from New Lawyers Who Participated in an Incubator Program 10:00am in Zurich F
  • 41. For more information • Contact me at Anne-Marie.Rabago@Texasbar.com • Visit us online at http://txoji.com • Follow us on social media for news and program updates
  • 42. Building & Managing Legal Incubators to Attract New Lawyers: Considering Different Budgets, Objectives, and Timelines ACLEA 55th Annual Meeting July 29, 2019 Chicago, Illinois Anne-Marie Rábago, Director Texas Opportunity & Justice Incubator Law Practice Management Program All rights reserved © 2019 State Bar of Texas

Editor's Notes

  1. Who is here at ACLEA for the first time? Second? 3x? How many of you have attends a talk about Incubators, here at ACLEA in the past? Who are our United States folks? Canadians? Other international representatives? Who are our Programming people? Publications? Technology? Marketing? Consultants? Vendors? In-house? Other? Who here is a lawyer? How many of you went to LS (at least in some part) to help people?
  2. The concept of positioning businesses together in shared office space with shared resources, training, and mentorship was created by an industrious New Yorker in 1959. According to the National Business Incubator Association, Joe Manusco was responsible for the very first incubator which counted among its initial tenants: a winery, a charity, and a chicken company. While trying to attract new businesses to the venture, Manusco referred to their complex as “the incubator,” in jest, because of all the chickens. Today, incubators are found across numerous industries from technology to healthcare to energy to fashion, and now, the legal industry. In 2007, another industrious New Yorker started the first legal incubator at the City University of New York School of Law (CUNY).
  3. These programs tend to share two main goals: assist new solo and small firm attorneys with launching successful legal businesses; and provide pro bono and affordable legal services to underserved populations within the community.
  4. As of JUNE 15, 2018 this was the geographic landscape
  5. This chart shows just 65 currently active programs across the US, but does not include approximately 6 programs that opened and have now closed or the 4 international programs located in Spain, Dominican Republic, Pakistan, and India for a total of 75 incubator programs
  6. 59 of the 107 entities are law schools…The recession sent people to law school (rather than the workforce). Meanwhile, law firms tightened their belts and jobs for new graduates hit record lows. Incubators no longer have to do with NOT GETTING A JOB. I want to change this perception – 100%!
  7. Access to justice, to lawyers, to legal services! ONLY 20% of LI & 40% MI Americans with Civil Legal Needs are able to find lawyers to help them.
  8. Lawyers have an interest in bridging this justice gap as more and more states consider allowing “limited practice by nonlawyers and/or investment by nonlawyers.
  9. How do I know?!?!?!
  10. Still a lot of work to do: We pick up where most legal aid leaves off (125% of the Federal Poverty Guideline) and span the modest-income space up to 400%. Based on US Census Bureau data and a 2017 study published by the Henry J. Kaiser Family Foundation, we estimate there to be more than 12.7 million or 44.4% of the Texans in the modest-income space. Remember: That is not including the 5.3 million or 18.6% that qualify for legal aid (where in TX only about 100,000 are served each year).
  11. And we are looking forward to turning this whole map yellow! Proves theory: Ability to serve clients in rural areas REMOTELY!
  12. 152 Texas lawyers have applied join TOJI These are the 38 Trailblazers…Disruptors…Mavericks…that fit bill. They are all solos practitioners, but they are not alone…they have each other (and the support of the State Bar of Texas)
  13. My favorite is #2 – “a group of warriors” because I think of these incubator lawyers as JUSTICE WARRIORS
  14. 61 million Gen Z (born 1997 or after) the oldest are 22 and headed our way
  15. Diversity & Inclusion – Being invited to the dance, being asked to dance, and dancing like no one is watching! Elimination of bias in the profession 5% foreign trained lawyers 11% US military veterans
  16. As a prerequisite to joining the program, TOJI lawyers agree to focus a substantial portion of their practices on serving modest-income clients. Structure and accountability Flexibility & autonomy, but want to belong and feel part of something (maybe bigger than themselves) Life long learning – access to free CLE Group training – business planning, marketing, productivity, finance, and more Personalized coaching - feedback and recognition
  17. It starts with wanting to help people – make a difference…make an impact…change the world The lawyers I have the privilege to work with do what they do for purpose (and, yes, passion) “Work life balance” is not a thing, think WL “blend” or “integration” - they wish to achieve personal, professional and charitable goals on a continuous spectrum of life experiences. Financial security doesn’t exist - psychological and emotional security – arguably more stable to bet on yourself According to NALP, overall salaries for new lawyers did NOT increase from 2007 to 2016. 2017 was the first time that salaries rose for young lawyers. During this time the cost of education has outpaced inflation. Extreme sports level student loan debt makes hanging a shingle HARD – lower barrier to entry (cost savings of $25,000 versus going it alone) Not having experience or education in owning/operating a business makes it seem impossible
  18. According to a PricewaterhouseCoopers study, millennials are committed to personal learning and development, care about maintaining a work/life balance, and look for strong diversity. Deloitte published a landmark survey of millennials in 2014 which painted a picture of the group as highly motivated with a social conscience. They value ethics, seek innovation, and desire opportunity.
  19. In your materials, you will find a table that lays out options fo these five components AND links to resources that will help. “[T]here is no need to reinvent the wheel for any of these steps! Many incubators have come before you and are happy to share their resources.”
  20. Less time likely means investing more dollars upfront. If 1 year or less, consider: Hiring a director - fast or bringing on a contractor (or a few) Launch with a small group of lawyers (2 or 3 to start) Forego SPACE or virtual office or turnkey coworking space Borrow curriculum or inventory what can be repurposed
  21. If low on funds, more time is needed. Consider investing that time to: Identify volunteers Carefully recruit and select a group of 8-10 member lawyers Forego space OR seek out a donated or subsidized space Create a structured program for delivering legal services (pro bono and/or affordable)
  22. Launch & Scale April 2017 1st Cohort (10 Lawyers) September 2017 2nd Cohort (10 Lawyers = 20 total) March 2018 3rd Cohort (10 Lawyers = 30 total) 2 lawyer attrition – 10% TOJI 2.0 Added staff (1 FTE) – another lawyer Reimagined space 6-month “Accelerator” followed by 12-month Incubator with 1) High touch & accountability 2) Just-in-time training & development January 2019 4th Cohort ( 8 Lawyers = 38 total) TOJI 2020
  23. Beginning in January 2020, we will expand our reach by opening the TOJI program to innovative and entrepreneurial lawyers all across the State of Texas. In addition, we will market to 0-10 year licensure and entertain applications from those who are professionally transitioning – addressing two critiques of the program. Accelerator Phase – Intense 6-months ending in a Pitch event to move into the Business Incubator Phase Business Incubator Phase – Hyper-focus on Growth, best practices, and preparation to leave the nest before “senior-itis” sets in Alumni Engagement –focus on turning the lawyers into the mentors they wish they had. Through virtual delivery of experiential learning and collaboration, participating lawyers receive training, coaching, and resources to help move their businesses forward while making a difference in their communities.
  24. In this panel discussion moderated by the Director of Chicago-Kent College of Law Solo and Small Practice Incubator, you’ll hear first-hand from participants from that program, as well as the Chicago Bar Foundation’s Justice Entrepreneur Project. They’ll be joining us to share their real-world perspectives on incubators and serving up access to justice while practicing law using innovative new models.