LWOW X Compliance & the ERC: Collaboration in Action

WELCOME

Welcome!ERC Fellows Meeting

January 14-15, 2015

Collaborative Problem Solving:

LWOW X Compliance & the ERC

Michele DeStefanoProfessor, University of Miami School of

Law

Founder + Director, LawWithoutWalls

ERC• January 2015

Road Map

Trends:

The Law Market

Legal Services Market

Changing

More Complex

And less?

Technologiz-ation

More or Less Efficient?

More or Less Connected?

More or Less Effective?

As a Lawyer, Always Available?

Globalization

Competition

The Death of Big Law??

Certainly Not the End of

Lawyers

≠

Some Truth to This Trajectory

Client Legal Process

Reengineering: DRP2

KMStandards

In-House Law Departments:

Legal Process Reengineering

• Internal legal process outsourcing

• Procurement

• Six Sigma

• Project Management

• Refined, automated, and often on-line

RFP Processes

YOU Want More

Value

You Have Been Telling Law

Firms

The Rise of the Legal Freegan

NonLawyers Offering

Law-Related Services

Professional Services Offering

Globally Integrated Business

Solutions,

Including Law Consulting

New Law Firm/Legal Services

Models• Riverview Law

• NovoLawyer

• Rocket Lawyer

• LegalForce

• Total Attorneys

• Mootus.com

• MiamiLex

• Axiom

• Burton Law

• LawDingo

• Agreement24

• Legal365

• The co-operative

legal services

• LexMundi

Truth is? Big Law is Innovating

TooClifford Chance: Wins

innovation award for using six sigma and Lean

Allen & Overy

1st firm to embrace

LPO: over 300

lawyers and staff in

Belfast hubLinklaters: Matter

management

Changes the

Lens Through

Which We View

Legal

Education

Trends:

Legal Education

Rising Costs of Legal

Education

Plummeting Law School

Enrollments

From 52,000 (2010) to 39,000

(2014)

Even Top Tier Law Schools

are impacted . . .

Seton Hall Down 43%

Hamline Down 55%

Applications down 38% 2010-2013

Harvard Law School has fewer acceptable

applications:

16% of all applicants (2012) vs. 11% (2009)

STILL:

Law Schools Produce More

Lawyers than the Market Can

Absorb

Predicting

Law School Closings

Impact on Legal Education

Different Challenges, Different

Skills, Different Tools + Different

Goals

21st Century Lawyering Skills

Problem Solving

Teaming

Technology

Entrepreneurial

Social Networking

Cultural Competency

Business Skills

New Platforms for Relationships

Law Schools are Training for

Jobs Not Even In Existence Yet

Law Schools are

Looking for a Solution

Net: Lawyers & Law Schools

Must Innovate to Survive

And Likely Best if We Do it :

Together

Multi-Disciplinary

Open Collaboration

Our Challenge

Build A Law Without Walls

LAWYERS

LAW SCHOOLS

A More Iterative Partnership

Between Law Schools + Lawyers

The Market is Ready

Part-Virtual Collaboratory

Develops 21st century lawyering skills

Law + Business + Technology + Innovation

Break Down Barriers and Hierarchies

Inspire Change

Multi-Disciplinary Teams

16 TEAMS OF:

• 2-3 Business and Law Students

• Academic Mentor

• Entrepreneur Mentor

• Practitioner Mentor

• Corporate Law Mentor

Team TopicsTeams are assigned broad topics in eitherlegal education or practice.

EXAMPLES:

Cyber Justice: Using Technology to Provide Legal Services to the Underserved Around the Globe

The Increasing Importance of Corporate Compliance: More Jobs For Law Grads or Another Threat to Lawyers’ Monopoly?

Find the Cracks and Gaps

Turn Into Opportunities

1. KickOff

2. Virtual Dynamic Teaming

3. ConPosium

Three Segments to

LawWithoutWalls

The KickOff: Segment I

Segment II Virtual Collaboration:

Part IA: Virtual Dynamic Teaming

Part IIB: LWOW LiveLaw Related Services: Legal Process

Outsourcing, Legal Consulting and Other PSF

Segment III:

LawWithoutWalls ConPosium

450+ people, 15 countries,

6 continents, and 14 time zones

New Platforms for

Relationships

Students

+

Mentors

+

Community

+

Technology

=

Connections + Opportunities

for Students

JOB JOB

Connections + Opportunities

for Law Firm Lawyer

LAWWITHOUTWALLS

Why Not All-Virtual?

Debate:

Ain’t Nothing Like the Real

Thing

Depends on the Real Thing

On-Line & Synchronous May Be

More Up Close & Personal

Upsides: Low Cost

Compared to Blended

Upsides: Convenient

Upsides: Talent

Upsides:

Equalizing

LWOW X Pilot 2014:

A Success

Why Compliance & Ethics?

And WHY ERC Fellows?

LAWWITHOUTWALLS

Trends:

Compliance & Ethics Industry

More & More Corporate Scandals

Despite Budget Freezes . . .

Corporations are Investing in

Managing the Legal Risk of

Business

Changes in Legal Landscape

• Economic Downturn

• Globalization

• Enhanced complexity of regulatory

environment

• Changing corporate criminal liability rules

• Enhanced Federal Sentencing Guidelines

• Aggressive settlement and consent decree

requirements

Corporations Around the Globe

Facing Challenges

Substantive Sweet Spot

Introducing . . .

Our

Charge:

Teach

Students

about

Compliance

& Ethics &

Build an

Internationa

l

Community

Our

Charge:

Solve

Problems

Facing

Compliance

Industry

Role:

LWOW X Compliance

ERC Fellows Working Group

ERC LWOW X Working Group:

Chief Ethics & Compliance Officers

From• BP

• Lockheed Martin

• Boeing

• Bechtel

• Merck

• KPMG

• UTC

• Deloitte

• Ernst & Young

Benefits: Real Topics/Real

Problems1.Effective Strategies to Prevent Retaliation for

Reporting Misconduct

2. Managing Ethics and Compliance Risk

Downstream through the Supply Chain

3. Building Effective Anti-Corruption Initiatives

that Target Third Party Intermediaries

4. Anti-Trust Compliance Issues in an

International Context

5. Ambiguous Legal Issues Associated with

Investigations and Audits

Benefits: Real Topics/Real

Problems6. Developing Effective Communications

Strategies for Ethics and Compliance Topics

7. Dealing with the Effects of Mental Health

Issues on Ethics-Related Conduct

8. Managing Conflicts of interest Between

Companies and Regulators

9. In a Glocal World, How do Corporations

Reduce the Dark Zone of Unknown Corporate

Misconduct?

So How Will It Work?

Identify a Real ProblemTopic: In a Glocal World, How do Corporations Reduce the Dark Zone of Unknown Corporate Misconduct?

Problem/Target Audience: Many corporations around the world do not have compliance departments or integrated programs. Students could research and identify what efforts are made by corporations to make corporate misconduct visible for these companies?

So How Will It Work?

Final Product - Not a White

Paper

Solution:

• Develop a compliance tool/app for

corporations that do not have compliance

programs that helps these corporations

uncover corporate misconduct that lead to

internal investigations.

– include an anonymous reporting function that

enables video, sound, and written information

to be provided in a secure and private way.

So How Will It Work?

Identify a Real Problem• Topic: Forget the Public vs Private

Enforcement Debate: Consider Open or Crowd-Sourcing Compliance

• Problem/Target Audience: Police are often taking advantage of their power and treating the public inappropriately during stops and arrests

– Minorities

– Large venues/occasions e.g., football games

So How Will It Work?

Final Product - Not a White

Paper

Solution:

• Crowd-sourced app that allows

bystanders and victims of the abuse

to upload photos and information

about incidents that occur and to

identify certain officers that

misbehave

Benefits: LWOW LIVE

Real Debates With GCs &

CCOsThe Never-ending Debate: Compliance, Ethics, or Both?

Legal versus Business: Who Should Win the Turf War in the Compliance Oversight?

A Comparative Approach to the Compliance Industry: Interviews with CCOs in U.S., Europe, & Asia

The Compliance & Ethics Function Within Law Firms: Better Late Than Never or Before Its Time?

Global Corporations in a World of Local Market Specifics: How to Create a Glocal Identity of

LWOW Live: 14 CCOs & GCs

as Thought Leaders

Benefits:

Collaboration Around the Globe

9 teams

26 Students

36 mentors

Benefits:

7 Countries - 10 SchoolsBucerius

Ecolehead

Indiana University

Osgood/Schulick

STL

Pontifical Catholic

UCL

Leipzig

Miami

Montreal

Michele DeStefanoProfessor, University of Miami School of Law

Founder + Director, LawWithoutWalls

[email protected]