Shaping diversity: part two

Initiatives

In our quantitive survey of 250 in-house lawyers in the UK, agile or flexible working was perceived to be the most effective tactic in increasing diversity and inclusion.

Interestingly, this is beginning to be seen as a more effective way of working for businesses overall because it is more focused on outcomes. Indeed, many of our interviewees spoke of a more outcome-focused point of view as being transformational across the business, not just for diverse employees.

Much of this is changing the way we conceptualise work. Joan C Williams argued in her 2010 book Reshaping the Work-Family Debate that there is a mismatch between the workforce and the workplace that is fuelled by out-of-date societal norms and is one that can disadvantage men as much as women. Increasingly, flexible or agile working is seen as a solution across the organisation, and not merely a panacea to working mothers.

Barclays offers ‘dynamic working’ programmes across the bank. The name itself has also been key in reflecting a focus on an outcome-based model and trying to dispense with the notion of different forms of working as a somewhat lesser variant of the accepted norm.

Indeed, companies are looking to redefine the normal in regards to working anyhow. Sandie Okoro’s London-based legal team in HSBC Asset Management works flexibly as a matter of course and in setting up the legal team it was one of the core building blocks that reflected the way the wider asset management team is working. Okoro explained to us that making this an issue for everyone, not just certain groups, was key: ‘I structured my team in such a way that everyone can work two days a week from home. Most people take up that flexibility, and men are as keen on it as the women – it helps with work/life balance issues. Interestingly, when I recruited for my team, men were very keen on flexibility and this was something they hadn’t seen elsewhere.’

Looking at work differently becomes an issue of talent management more generally and one that gels with the different way of working increasingly associated with millennials or Generation Y. It is also a part of the general realities for companies that need to cope within a global and technologically open economy where the 9-5 rules no longer apply and disaster can strike at any moment through a number of different channels.

Technology has had a transformative effect in this regard on working practices across the board. But this has obvious benefits for those with caring responsibilities, particularly parents. Early years childcare is still overwhelmingly the responsibility of women and it has therefore had a dramatic effect on women’s ability to work at all, let alone to advance within their professions. Despite more women than men entering the profession in the UK since 1993, according to The Law Society, women are still not advancing into partnership and leadership levels at law firms in anything like the same proportion.

Traditionally in-house legal teams have benefitted at a certain stage in lawyers’ careers from the ability to be more flexible around working hours. For that reason, many in-house teams have noticeably higher demographics of female lawyers, including in senior roles, than most law firms do.

The focus on different ways of working, which many of our in-house teams and the companies where they work are using, has meant that the statistics in-house for some companies are dramatically different from law firms. For many of the in-house lawyers we spoke to, this is because of the focus on outcomes not hours, as Kerry Phillip, legal director at Vodafone told us:

‘I concentrate on the output, which means where you’re doing your work is not important; what is important is what you are delivering. Vodafone’s technology really helps here because we all have laptops and we all have mobiles. We hot desk…in the UK you can print documents at any of our locations.’

This has had obvious results on who works for Phillip as she has 50% split between men and women in her team, which includes part-time workers, job sharers and remote workers. The team has had three listings in the Power Part Time run by Timewise and as she comments, ‘That’s just fantastic recognition that you can have a senior, responsible job while not working traditional full-time hours.’

Initiatives

From our experience, diversity initiatives have the most impact when driven from the top and when they offer practical actions and tangible results.

In London, we have seen long term, sustainable change to BAME representation in our trainee and associate population. This was achieved through gaining strong management endorsement and making simple, practical changes to our hiring process. Our interventions ranged from introducing name-blind CVs and broadening the diversity of our interview panel through to introducing mandatory unconscious bias training. The BAME representation in our trainee ranks has moved from 3% in 2006 to between 20 and 35% for the last seven years.

Globally, the introduction of aspirational targets for gender diversity prompted a real shift change across the firm. Our targets not only aim to increase the gender representation within our partner population, but also to ensure that women are represented in firm and office leadership roles and committees. We have rolled out strategies both globally and at a local level to ensure we are developing and retaining female talent, and that our leaders are taking responsibility and ownership for achieving a better gender balance.

Our Global LGBT Initiative aims to ensure that every Baker & McKenzie office provides a safe space for LGBT colleagues to be themselves at work, regardless of the local climate. The initiative combines practical support ranging from bi-annual “affinity calls” and a global LGBT listening ear scheme with a robust policy stipulating a zero tolerance approach to bullying and harassment based on sexual orientation or gender identity. Perhaps most importantly, our approach has been led from the top, with our firm chair communicating our stance on LGBT equality to all staff across our global firm.

Mentoring and sponsorship

In our range of interviews, mentoring is happening via both formal and informal channels to promote diversity. In fact, mentoring may be one of the easiest ways for an individual to get involved informally. In a 2010 survey for Harvard Business Review it was reported that 59% of companies that replied offered formal mentoring programmes, suggesting it is an initiative that has gained a lot of traction. It is also very impactful. A 2011 report by the Center for Work- Life Policy (CWLP) in the US stated that people who are mentored achieve more promotions, higher salaries, more career satisfaction and even report being less stressed than those who lack such guidance.

However, a number of our interviewees who were experienced mentors advise that setting definite boundaries and expectations is key in having a successful mentoring experience.

Sandie Okoro, who mentors both formally and informally, feels that it’s important to let the mentee set the pace of the relationship but to also make sure it works for the mentor. Setting out limits, such as an initial time frame for the relationship, ensures the mentoring does not become too draining.

Interestingly, she also feels that as a mentor, highlighting failures and what can be learned from these is as important as highlighting the successes:

‘You have to be as open and honest about things that didn’t work for you as much as things that have worked. What makes a success sometimes is the ability to pick yourself up and keep going on.’

Common challenges of starting D&I initiatives?

One of the key challenges in starting any diversity initiative is identifying and clearly articulating the challenge and it’s implications. Without this, it is hard to establish a business case and to gain the support of leadership.

Some of our most successful diversity initiatives started with data – whether that was the representation of women in leadership roles in our firm, or the proportion of LGBT staff choosing not to be out at work.

While it might sound like a cliché, what gets measured gets done and in order to plan an effective diversity initiative, a key place to start is data.

Getting the match right between mentor and mentee can be one of the biggest pitfalls and something that needs care and consideration as with any significant relationship. Kristin McFetridge, who runs BT’s legal mentoring programme, told us: ‘The hardest part is matching someone with the right mentor. We’re revamping the questions we used originally, because they didn’t ask the right things and a lot of matching came down to gut feel. As a company-wide initiative we’re looking at a mentoring-matching programme, which will work like a dating app. If someone doesn’t connect with their mentor, despite all the will in the world, it will be fruitless.’

In our survey of in-house lawyers, mentoring and sponsorship were seen as less impactful than role models or championing of diversity initiatives from management. However, with sponsoring in particular, there was a high level of respondents who stated they had not seen this initiative in action. Conversely the amount of respondents who stated the importance of management buy-in and the need for targeting candidates was much higher.

Formal sponsorship seems to be less advanced in the UK than the US. However, research undertaken there by groups such as CWLP, Harvard Business School and Catalyst does suggest that sponsorship is much more effective than mentoring in producing long-term engagement and satisfaction via recognition and promotion which were often inspired by sponsorship or advocacy from more senior colleagues or managers. An interesting consideration though is whether in some cases, the championing of diversity and inclusion by senior managers and mentoring initiatives may be informally blending in the UK into something more akin to advocacy.

Networks and ally groups

Networks are used by a number of companies we interviewed to provide a tangible platform within which those groups can raise issues that are important to them and via which the company can demonstrate how serious it is about the initiatives pertaining to that group. The existence of official networks and also the related ally groups are a tangible awareness- raising tool within corporates to show that these are demographics that matters and need to have a voice.

That inclusive aspect is key to the power of networks but it is a two-way street allowing voices at the grassroots to be heard, but also showing that those who need to are listening. As Alison Gaskins at Barclays explains in regards to their very active network programmes: ‘It is not about the job title because everyone needs to feel responsible. That’s where employee networks step in, because people are deciding for themselves what works. It becomes an inclusive approach.’

The pipeline

One of the issues that many companies struggle with is ensuring the pipeline of credible diverse candidates. For many in-house teams the pipeline is still mostly private practice law firms and the issue can be trying to fix someone else’s problem. While arguably many law firms are making sterling efforts in promoting diversity and inclusion, the viewpoint from the in-house lawyers we spoke to was that it was at best a mixed bag and at worst, merely lip-service without credibility.

This means that for in-house legal teams there are two major solutions, neither of which are short on effort. Firstly, teams can try and bring on their own in-house legal trainees. This is often seen as a good way for diverse and non-traditional candidates to enter the profession. Our in-depth interviews with BT, ITV and The Guardian, all of which have legal teams of varying sizes, showed they have done this successfully. However, it still relies on the goodwill and co-operation of law firms to provide some of the training seats.

The pipeline

As a law firm, our people are our greatest asset. Ensuring we continue to evolve in a changing world means converting the diversity in our talent pipeline is critical.

We carefully review people data on a regular basis by diversity strand, to identify any particular themes or trends based on recruitment, progression and attrition. As a call to action to improve female representation at senior levels, we were one of the first firms to introduce global targets for gender diversity. We regularly review progress against these targets on a firm-wide, local and departmental basis.

Can diversity only be achieved by the generations coming through? No. Law firms have been taking great strides for a number of years now to ensure greater diversity at entry level. We have a responsibility as a profession to support, develop and ultimately promote that diverse talent.

The other route is via lobbying law firms to be more proactive around their pipelines and working with them on initiatives that do that, and a number of the companies we spoke to for this report are involved in this. ITV and BT both work on the PRIME social mobility initiative alongside a number of large law firms with the aim of encouraging more social mobility in the profession.

Social mobility remains a significant issue in the UK legal profession. According to our research this is due to a range of factors, such as an inadequate pipeline of viable candidates and the issue of self-deselection from the career path before application for training contract or even before university.

There has been a habit of focusing on particular universities and grades in the selection of candidates, and traditionally most candidates who did not attend The Russell Group or Oxbridge were deselected for any law firms’ criteria automatically. Another factor has been the lack of visibility of social mobility role models. In some cases, people have had to make a tangible choice to identify as socially mobile as it may not be outwardly visible or identifiable. This issue has historically been further compounded by the fact that by the time socially mobile candidates ‘make it’ they may feel the pressure, either actual or perceived, to fit in and hide their roots.

One of the recent significant advances in this area is the adoption of contextual recruitment by many law firms to avoid the arbitrary list of diverse talent via a fixed set of criteria of grades and university choice. Instead, contextual recruitment looks more holistically at the candidate’s achievements via the context of both personal and educational factors.

A huge issue in regards to pipelines is making sure that candidates don’t self-select themselves out. As Barry Matthews of ITV comments, in the cohort of young people in the Legal Social Mobility Partnership (LSMP), a significant amount of focus has been developed to consider issues of confidence and resilience, often via the use of sports and performance psychology training.

As Matthews told us, if a socially mobile candidate is unsure of their career choice anyhow, and then receives a rejection from a training contract application, they may consider it just proof they should not pursue a career in law. A more socially affluent candidate who knows people in the legal sector will probably know that this is part of the process and just move into the next application. This is where, as pointed out by Sandie Okoro in regards to mentoring, teaching about failure is as important as teaching about success.

What 18 years in-house taught me about how to advise clients

In late 1998, I stepped onto the seventh floor of Eleven Madison Avenue in New York City. I was interviewing for a job in the litigation group at Credit Suisse First Boston. At the time, I was an assistant United States attorney, thoroughly enjoying my in-court experience and proud to be representing the U.S. government in the federal trial and appellate courts. But my wife and I were expecting a child and we had just bought a house. It was time to find a job in the private sector.

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GC Roundtable: Business as usual? Middle East

With a fall in commodity prices prompting fiscal pressures for businesses around the globe, it comes as no surprise that companies in the oil-rich Middle East are feeling the financial pinch. While a number of those in attendance were bullish about medium- term prospects, with factors like the lifting of sanctions and opening up of Iran to trade cited as reasons for optimism, the short-term was undoubtedly a more challenging time with cost pressures a topical issue, irrespective of sector.

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Shaping diversity: part three

The role of the in-house lawyer

One thing which interested us in this research is how much the lawyer in a company is uniquely placed to be a driving force for diversity and inclusion. A number of interviewees, who are highly visible advocates for diversity and inclusion, do feel that lawyers are particularly well-placed to drive this agenda forward. On a conceptual level this is partly because, ‘it is fundamental to the DNA of a lawyer’, according to Tim Hailes of J.P. Morgan. ‘There is just an inherent dislike of injustice, discrimination and unfairness that speaks very powerfully to equality of opportunity and fair treatment of all people.’

Kristin McFetridge at BT echoes this, bringing the perspective of the importance of lawyers in realising change in the US in regards to civil rights.‘I think back to the US case [Brown v Board of Education, concerning segregation in education] where it was decided that ‘separate but equal’ was no longer binding law. The judiciary really needed to bring about change. Lawyers need to be critical thinkers about what is right and fair and just, and so personally I think we do need to set a standard.’

The role of the lawyer

Now more than ever before, partners have a responsibility to actively support diversity and to ensure they are inclusive leaders.

Partners must be aware that junior colleagues look to them as role models, mentors and sponsors. Support of diversity and inclusion goes beyond joining employee networks or attending diversity events, but it stretches into everyday life; adapting to work with an increasingly diverse workforce, thinking about how you allocate work and to whom, finding ways to include those who do not speak up in meetings and calling out or challenging behavior which is not inclusive.

In practical terms the in-house lawyer often has a good oversight of the entirety of the company and can bring the perspective of what is legal and ethical to bear. The in-house legal function can also assist proactively with training initiatives by situating this very firmly in the context of inclusivity not only being desirable but that it is illegal to discriminate. As Jorge Roche at PageGroup describes: ‘We have successfully delivered a number of legal workshops to the business on D&I, equal opportunities training and actively support our different networks… my team supports many different regions where policy and legislation regarding equal opportunities differ. We have helped the business understand policy context and to develop the attitudes and beliefs that will allow them to see the value of working with people who are different to themselves.’

Sandie Okoro at HSBC Asset Management describes the lawyer’s ability to put theory into practice: ‘Lawyers have a skillset of seeing what’s not there; we can see the gaps and draw the necessary threads together. In a group situation, we may be more attuned to unconscious bias because we are simply used to looking for the gaps. You can ask lawyers those very simple questions about how to embed something and take it from the theory to the practice. We’re good at that because that’s our everyday job − we can help organisations get to a better place.’

One of the main ways in which in-house lawyers are potentially effecting change via their roles is in their capacity as purchasers of legal services. Our interviewees point to the fact that this imperative is currently less developed in the UK than it is in the US but that, nonetheless, it remains a key way in which clients can force change and engagement whether that is explicit or implicit. It’s a tactic that some are embracing. As Funke Abimbola told us: ‘a significant proportion [of law firms] won’t [change] unless it hits them in the pocket. On one level, we should set aside the business case and things that the McKinsey report have found and focus on the fact that this is the right thing to do, bringing a broader mix of talent. Clients are more diverse anyway, and you could be missing out on the top talent.’

This view was echoed by respondents to our survey, of which 61% felt fielding a diverse team was important for legal suppliers.

Avoiding box-ticking

Authenticity is a term that came up again and again during our interviews and is seen as being crucial to the success of diversity and inclusion in companies. This cuts two ways, in regards to how seriously organisations take D&I and the resources of those who work for them.

A common theme in our research was that diverse candidates also need to be the best candidates for the job, and prioritising diverse access over quality will ultimately move the case for diversity and inclusion backwards. As Raphael Mokades of Rare Recruitment comments: ‘People have to get in on their own merit but if the system to hire them is broken then they won’t get in at all.’ Tim Hailes at J.P. Morgan expands on this, saying professional credibility and achievement comes first. ‘That then makes the diversity conversation resonate more effectively and more strategically within an organisation.’

Avoiding box-ticking

It is critical that inclusion and diversity initiatives are not seen as a ‘box-ticking’ exercise. Perhaps the best way to avoid this is to ensure that diversity initiatives are carefully mapped out, have clear objectives and tangible results.

Baker & McKenzie were one of the first employers in any industry to adopt Rare’s contextual recruitment system in 2015. The system enables candidates to share an additional set of data, putting their achievements and academic performance into socio-economic context. Far from being a box-ticking exercise, this intervention has prompted very real change – both in our hiring process and in who we have hired.

Our intention in using the system was to identify stand-out candidates who in previous rounds may not have stood out on paper. Each member of our interview panel attended Unconscious Bias training, delivered by Rare, and we adopted school blind interviewing to alleviate any risk of bias during our recruitment process. At the end of our first hiring round, 10% of those hired would not have been selected for interview in previous rounds.

Getting in is only part of the process; a variety of research suggests that unless minorities progress then there is a lack of engagement and retention, as Lesley Wan of Lloyds remarks: ‘If diverse colleagues are not making it through the ranks, then business leaders should reflect on why this is happening and provide training to upskill those colleagues so they can proceed on an equal footing.’

This is really where diversity becomes inclusion. The variety of initiatives we consider in this report become meaningless if diverse candidates enter through the front door and exit through the back.

An implicit and, in some cases, explicit finding was that unless there is true ownership and engagement from leadership, then it’s hard to make diversity and inclusion really become a cultural imperative and part of the company’s DNA. As Patrick Rowe of Accenture summarises it:

‘Demonstrate and promote the right things, because diversity isn’t soft and fluffy, or an adjunct to HR, but it is an essential business priority. Someone very senior has to own it. We have someone who is responsible for it in the executive committee, not in HR, but a senior business leader, in addition to her day job, but then all executive members are accountable for tracking and measuring “what are you doing differently, how are you making a step change?”’

Where next?

In our quantitative survey we asked what in-house lawyers in the UK thought was the future challenge for diversity and inclusion in their organisations, and the responses broke down thus:

    • Gender – 22%
    • Social Mobility – 17%
    • Ethnicity – 15%
    • Mental Illness – 15%
    • Disability – 14%
    • LGBTQA – 8%
    • Age – 2%
    • All will equally continue to be a challenge – 6%
    • There isn’t a challenge/Not sure – 3%

Interestingly, despite a lot of focus on gender, the majority of our respondents still feel there is work that needs to be done.

The focus on social mobility also echoes a range of recent studies which show this is a pertinent issue for the legal industry in Britain. A 2015 study by The Sutton Trust and PRIME showed that about half of partners at top law firms were privately educated, compared with 7% of the population as a whole. Indeed, the research also confirmed that social mobility hasn’t improved substantially within the law since the 1980s.

The picture in-house according to our research seems a little rosier, with a number of our interviewees working on initiatives to bring socially disadvantaged young people into the industry, via work experience, mentoring and even in-house training contracts. But in many cases it’s a question of making sure these efforts are started early enough to ensure the pipeline is there and candidates do not self-censor. A further consideration is that the increasing cost of higher education is making it more and more challenging for candidates from a working class background to consider this pathway and face years of debt.

While we feature a number of examples of companies proactively looking at social mobility, disability (including mental health) is something that was on the radar of many of the companies we spoke to, but is an area where work and focus is still developing. National Grid has had an initiative running for some years and group GC Alison Kay is now looking at ways to extend this to legal:

‘Within National Grid, we have been bringing in people with learning disabilities as part of an initiative called EmployAbility. We have partnered with local schools and taken young people who would have possibly gone into unemployment when finishing school, and instead have given them the opportunity to intern with us. We have kept the vast majority on full-time and are looking at how we can use these interns most effectively. We can and should bring them into our legal team and I’m convinced they would add richness and diversity to our work. The transformation of these people is absolutely outstanding; they come to us very shy, very nervous, unable to make eye contact, and they “graduate” with a vastly improved skillset and a growing confidence.’

Where next?

In addition to a clear and sustained focus on gender, ethnicity, LGBT equality and social mobility, we are seeing a growing focus on mental resilience and a will to create environments where those suffering from mental health conditions feel able to speak, free from stigma.

Diversity of course encapsulates diverse thought and ways of working and generational diversity – pitching a tech-savvy generation alongside partners steeped in traditional ways of working will present challenges.

One thing is for sure – inclusion and diversity will continue to be a high priority for law firms, and their clients, for many years to come.

It’s a focus that is significant for a number of companies – PageGroup plans to roll out its Ability@Page initiative at the end of this year which will include a focus on mental health and wellbeing.

It’s a focus that is prescient – certainly according to our survey and also corroborated by external studies. An oft-cited 1990 study by John Hopkins University found that lawyers were nearly four times more likely to suffer from depression than the general population. The continuing focus on the issue of well being in the legal profession suggest this demographic may not have significantly changed.

Inclusion

Really the most significant challenge is inclusivity, and changing culture so that none of this matters.

Our work in this report suggests that making sure there is a truly viable pipeline of candidates, and that the barrier for entry is not stacked against them, is vital. Barriers to entry may include implicit bias, self-censorship by the candidates themselves, or hiring practices which fail adequately to judge potential to actually perform as a lawyer versus past academic performance.

We discuss both initiatives and in the final section of this report consider the practical building blocks which are needed to make these work. We also, via our interviews, consider the importance of viable authentic role models and true consistent championship of diversity at leadership level. Also fundamental is the retention and upward movement of diverse candidates into leadership positions.

What all of these things essentially speak to is a truly fundamental cultural shift. That then becomes the litmus test of an inclusive company. As diversity consultant Vernå Myers puts it:

‘Diversity is being asked to the party; inclusion is being asked to dance.’

Ghost in the machine: AI, law, ethics – what does it mean for you?

There’s change afoot out there in the world, a world in which any remaining Luddites can no longer sit with their hands over their ears in a state of denial. We are in a period of digital technology which is so disruptive that the only thing that comes close to it in human history has been the first industrial revolution. That movement overturned the trajectory humans had been on through various contemporaneous developments in mechanical engineering, chemistry, metallurgy, and other disciplines, and its advancements altered the landscape of human history. Our digital revolution will effectively lay waste to that landscape created by the first industrial revolution and something entirely new will have to take its place.

Continue reading “Ghost in the machine: AI, law, ethics – what does it mean for you?”