Vol.
70, No. 2, February 1997
Waking from Success
By David A. Saichek
Success is a beast. It devours incentive and creativity. Detroit imitated Rip Van Winkle until the unlikely combination of Japan and Ralph Nader awakened it, all too slowly.
We need to reexamine and reform our methods for delivering continuing
legal education. Seminars, books, tapes - everything! Why? Our CLE efforts have been a spectacular success. In
times of financial success it is challenging to envision anything other
than dollar signs. For the fiscal year ending June 30, 1996, our CLE seminars
revenue was $1.82 million. Direct expenses were $1.14 million. Gross operating
profit was $680,000. Even after "charging" that department $347,000
worth of general overhead (governance and administration), the net operating
profit was $333,000.
CLE books took in $1.35 million and had direct expenses of $957,000 for
a gross operating profit of $396,000. After being charged with governance
and administration the net operating profit was $105,000. So far in FY 1997
we are on a pace to beat last year, according to our director of finances,
Geoff McCloskey.
Our CLE departments have delivered excellent products, competitive prices,
and some measure of general satisfaction. This kind of profit allows the
Bar to use nondues revenue to fund the work of commissions and committees
concerned with delivery of legal services, independence of the judiciary,
ethics, consumer protection, defense of indigents, lawyer referral, law-related
education, outreach to media and other professions, and studies in diversity,
professionalism, technology, fee disputes, local bar relations, and assistance
to solo and small firm practitioners. Profitable CLE also helps to fund
publications that do not make a profit such as our monthly newsletter and
the Wisconsin Lawyer.
For FY 1996 our revenue from dues accounted for only 28.88 percent of
total revenue. Our total revenue in FY 1996 was $7.75 million.
The problem? If CLE revenues go down by as much as 35 percent we would
need to make drastic decisions concerning dues increases, staff layoffs,
pricing of services, and wholesale reductions of our efforts under SCR 10.02
in "improving the administration of justice" and "to promote
the innovation, development and improvement of means to deliver legal services
to the people of Wisconsin." In FY 1996 dues alone were not even enough
to fund staff salaries of $2.37 million plus benefits for a total of more
than $3 million.
Staff has grown in the last 15 years from 35 to 80. This could mean we
have failed to control costs and increase efficiency. The Bar Center's
lower level was renovated recently to add workstations and reduce meeting
space. We could "improve" ourselves into needing a new bar center
which, even if not luxurious, could be very expensive. If the idea of a
new bar center is questionable at the moment, just think how downright disagreeable
it could be if our nondues revenue went down!
We need to rethink our organizational structure, delivery of services,
and efficiency of staff and management. For something so important as CLE
and its attendant revenues the time for reexamination is now. 1 There are a fair number of members who feel that
our CLE offerings are:
- too expensive
- too inflexible
- too inconvenient
- too theoretical
- too time-consuming
How can we improve our methods of delivery? We should consider:
- doing more than scratching the surface of desktop delivery
- self-study methods
- auditing without credit at lower prices
- videotape rental
- CLE on the Internet (some courses are already available in California
and other states)
- searchable CD-ROMs containing all outlines for the previous year
- dial-up specific parts of seminars allowing the viewer or listener
to select the portions as she wants them, which has come to be known as
a "salad bar" approach
- reciprocal acceptance of CLE credits among states
Consideration of these approaches could improve our services to members
and give us a chance to preserve some profitability as we embrace the future.
Delays which might seem prudent in times of high profitability could spell
disaster when the world of online CLE passes us by.
In December your Executive Committee convened State Bar 2000, a kind
of "technology summit" facilitated by consultants with expertise
in organizational matters for nonprofit corporations and governmental units.
How might decision-making be restructured for an electronic age to deliver
services to our members more efficiently at lower cost? The Board of Governors
should assure follow-up to this conference to coordinate the necessary planning
and possible rule changes required to replace contentment with rapid progress.
This question needs to be asked of our officers, governors, Standing
Committee on CLE, Wisconsin Board of Bar Examiners, all segments of the
Bar, and you the member: Shall we actually plan for the future? Or
perhaps we prefer to take a nap.
Note
1 Defer no time, delays have dangerous ends. William
Shakespeare, 1 King Henry VI, Act 3, Scene 2.
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