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.

Continue reading “GC Roundtable: Business as usual? Middle East”

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?”

Diversity toolkit

One aspect we felt was key in approaching this project was to have a certain amount of practical guidance. We asked all of our interviewees for some tips when we spoke to them.

We have synthesised these into some thoughts and frameworks for approaching the different aspects of diversity and inclusion.

Diversity is more than what can be seen

It’s easy to think of diversity and inclusion as something about ‘them’ – but the reality is, diversity is all about you. Diversity is a much broader issue and will impact the vast majority of people in their careers.

Top Tip: Start with you. Why is this important to you? If you can clearly articulate that and make that central to your message, it will be easier to convince others.

Ask yourself if you have the time, energy and commitment to make your idea a reality.

Lesley Wan from Lloyds Bank has run a number of D&I projects, including some independently of her organisation. Her advice is: ‘Be agile in your thinking and flexible as to how you structure your project.’

Set a clear vision

Think – what does a diverse and inclusive workplace look like?

Approach other thought leaders, think tanks or charities to help define and refine your vision and understand what best practice really is.

Understand what best practice might look like for your company.

It’s not about building quotas or hitting numbers, but rather, creating an environment where the message is embedded in your corporate DNA. Tim Hailes of J.P. Morgan advised to keep thinking about the ‘soft cultural indica.’

Targets and measures can be helpful but are often more effective when approached as a product of, or in tandem with, cultural change.

Top Tip: Start with one definable project such as a networking group, mentoring programme or work experience project.

Getting strategic buy in

If diversity is truly to take root within an organisation, it has to be a core business initiative – not an addendum tacked onto the tail end of a human resources policy. To achieve that, strategic buy-in from the top table is essential.

Knowing the touch points for your industry and business is crucial here. Decide what will be more compelling – internal or external drivers.

From an internal perspective, embracing diversity and inclusion in the workplace has been proven to improve employee engagement, creativity and innovation.

Ask yourself:

Do you need sponsorship for your project? Will this be internal or include external sponsorship? External sponsorship can assist in helping to gain traction with internal buy-in. Look at your current network and make a target list of potential sponsors/supporters who can help you.

Do you need funding? Be clear in what you need to start and what it will be being used for before you make approaches. Be prepared to show potential return on investment even if this is only hypothetical. Figures from consultants such as McKinsey (see below) can be helpful with this.

Top Tip: What tends to be universally convincing – regardless of the business and industry – is the overall effect on the bottom line. When McKinsey & Co investigated the effect of diversity on the composition of boardrooms in Europe, those which ranked in the top quartile for executive diversity handily outperformed their less-diverse peers, earning on average 53% higher ROE (return on equity) and 14% higher EBIT (earnings before interest and tax).

Take stock of where you stand now

How do your current policies operate in practice – both soft and hard rules? There is sometimes a gap between policy and practice so be aware of both sides when evaluating the picture.

Consider all policies which relate to the employee life cycle; recruitment and attraction, on-boarding, performance assessment, training and development, and career advancement. Think – how do these align with the organisation we are now and the diverse and inclusive organisation we want to be?

Surveys and focus groups may help with this process of evaluation.

Top Tip: Set limits and rules for this evaluation process so it does not spiral out of control.

Track, monitor and re-evaluate

It’s an old management cliché, but ‘what gets measured, gets done.’ Start with a baseline level to work from and goals for the organisation in place – both aspirational and tangible.

Remember though, you have to be counted to count, and diversity goes far beyond our visible differences. While characteristics like race and gender are more outwardly evident, factors like sexuality, socio-economic background and disability are not necessarily obvious.

Be prepared to engage in a constant process of evaluation, re-evaluation and repositioning the goal posts. Diversity is a fluid process and it will take time to adjust.

Top Tip: Don’t let the measurements obscure the importance of more subjective indicators and the need for cultural change. The numbers can be good but the experience can be awful if cultural change has not really taken root.

Creating an inclusive workplace

When people don’t feel comfortable being their true self, they’re investing emotional energy into censoring themselves and adjusting their behavior to fit in. That energy and thought power could be harnessed far more effectively into productive areas, once those barriers are removed.

‘Be prepared to engage in a constant process of evaluation, re-evaluation and repositioning the goal posts.’

Top Tip: Role models are key here. Role models show the possibility of success and are a fantastic way to inspire hope.

Network groups are a good means of creating a dialogue with key identity groups.

But remember network groups don’t just have to talk about diversity and inclusion. Some companies use their networks as a great way to get employees’ perspectives on key strategic issues and approach problems in a different way. This can then be a clear example of the strategic benefits of diversity in avoiding ‘group think.’

Ally programmes show that the initiatives are about everyone and are fundamental in promoting the idea of a safe workplace. This can be especially key in jurisdictions where for legal or cultural reasons, certain identity groups have to be less visible.

Develop strong role models

Are there any obvious role models already within the organisation?

According to Sandie Okoro of HSBC Asset Management, telling the story from a place of authenticity is the real crux of being a role model. This can be done on a small scale initially and then potentially used as part of a larger project down the line.

Top Tip: To get strategic buy-in and make any D&I project truly meaningful it’s got to be seen to be about merit – highlighting role models that are good at their job first, and who happen to be diverse second.

Discover the different paths to leadership in the management of your organisation. There may be interesting stories you don’t know as not all diversity is visible.

Role models don’t necessarily have to be part of the community or group they are championing – in fact, sometimes the opposite can be even more powerful. For example, at PageGroup the champion of Pride@Page, their LGBT network, is a straight man.

But be sensitive as to how non-community role models are presented. Best practice advice from internal sources, network groups, other organisations and think tanks for example can all be helpful here.

The pipeline

It’s not you, it’s me…

Start with yourself. If you are responsible for hiring, make sure you are always asking for or considering a diverse pool.

If your company sees diverse candidates but they don’t make it though the interview process, consider unconscious bias training to assess whether there are factors with how candidates are viewed.

If you cannot find diverse candidates, ask why?

Are your criteria wrong?

Interrogate the criteria in place – is a 2:1 from a Russell Group university essential or nice to have?

Try and think laterally in terms of what skills the roles require outside of academic qualifications.

Top Tip: Consider techniques such as blind CVs and contextual hiring.

Are you looking in the wrong places?

Outreach programmes and work experience programmes with schools can be key here. Support is available from organisations such as The Sutton Trust, PRIME and LSMP.

Our interviewees who run work experience all counsel that it is less work than you may think. Once you develop a programme it can be re-used year on year and refined each time. You don’t have to reinvent the wheel with every intake.

The infrastructure and CSR capability of law firms you use can be a significant help.

What is your messaging like? Is there a photo of a white man in a suit on all job adverts? A picture can speak a thousand words.

Agility – changing the way we work

Often we don’t think about how we are working and make assumptions that this is just how it has always been and how it will always be. Consider how traditional working practices may be impacting your attraction and retention of talent.

What is needed to get your job done – what’s the optimum mix working on a computer versus face-to-face interaction?

‘Be aware of cultural differences in communication styles when mentoring.’

Technology is crucial for this, so evaluate whether your workplace is currently set up to allow for truly agile or flexible working.

Thinking about jobs in terms of hours worked over a week or a month, rather than on a daily basis can be liberating in determining what is needed to do a job; as can focusing more on projects or outcomes.

How much does it come down to outcomes versus time? Increasingly companies are focusing on outcome-based approaches versus time in the workplace.

Top Tip: Agile working can be a way of being truly inclusive, as most successful companies we spoke to use it on a universal basis. These include Barclays, Unilever and Accenture. This can have other benefits such as impacting space needed in the workplace, as well as real estate costs.

Mentoring

Top Tip: Individual fit between the mentor and mentee is the most significant aspect. Don’t skimp on the time and energy invested in this part of the process. Kristin McFetridge of BT tells us: ‘If someone doesn’t connect with their mentor, despite all the will in the world, it will be fruitless.’ Talk to architects of successful mentoring programmes to find out what works.

Think laterally, as mentors don’t have to be in the same business line as their mentees. In certain cases, going outside of the organisation may even be best.

Make sure you set really clear boundaries for both time and outcomes. As Sandie Okoro cautions: ‘People come to you because you have been successful and they want to share that success. Being a mentor is not the same as being a sponsor, so make sure they are very clear that they are your mentee.’

Don’t come with preconceived ideas as a mentor or assume that the only right way is the way you have chosen.

Be prepared to talk about failure as well as success as a mentor.

Let the mentee set the pace of communication but also be aware of your own limitations in regards to time.

Be aware of cultural differences in communication styles when mentoring. Double check that the other person has understood you and that there is no misunderstanding by checking in with neutral questions.

Setting a reasonable but finite time boundary for the relationship can be helpful in terms of both manageability and measuring effectiveness. Most of our interviewees found a year worked well as an initial starting point.

Don’t go it alone

Use your own network and beyond; reach out to other companies who have programmes you admire and think could work within your own organisation.

Remember that diversity is all about inclusion – so don’t be afraid to engage one of the multitude of external organisations which exist to support diversity. Whether it’s looking for the facts, figures and metrics that help build a strong strategic case for management, or support with implementing diversity initiatives within your business – there is no shortage of organisations willing to provide assistance and resources to help get diversity across the line.

Diversity groups

  • Stonewall (LGBT), www.stonewall.org.uk, 020 7593 1850
  • The Sutton Trust (social mobility), www.suttontrust.com, 020 7802 1660
  • Scope (disability), www.scope.org.uk, 020 7619 7100
  • The Diversity Group, www.diversitygroup.co.uk, 0845 077 9300
  • Age UK (elderly), www.ageuk.org.uk, 0800 169 2081
  • Disability Rights UK (disability), www.disabilityrightsuk.org, 020 7250 8181
  • PRIME (broadening access to legal profession), www.primecommitment.org
  • Diversity UK, www.diversityuk.org
  • Race Equality Foundation, www.raceequalityfoundation.org.uk, 020 7428 1880
  • Shaw Trust (disability), www.shaw-trust.org.uk, 01225 716300
  • Everywoman, www.everywoman.com, 020 7981 2570
  • Social Mobility Foundation, www.socialmobility.org.uk, 020 7183 1189
  • enei (Employers Network for Equality and Inclusion), www.enei.org.uk,
    020 7922 7790

Our great leader: unraveling the process of choosing the right candidate for the top job

‘Some are born great, some achieve greatness and some have greatness thrust upon them’, muses Malvolio, a steward in Shakespeare’s Twelfth Night and the victim of a cruel prank whereby he believes he might be elevated to his mistress’s side as consort. Continue reading “Our great leader: unraveling the process of choosing the right candidate for the top job”