The Future of Law. Since 1818. 1

Diversity: How to create and benefit from a diverse workforce

2 LexisNexis

Diversity: How to create and benefit from a diverse workforce

On 20 February 2014, the Lexis In-house Advisory Board met to discuss a topic that has recently received a high level of press attention, and which is high on the agenda of businesses and the legal profession alike: how to create and benefit from a diverse workforce.

The conversation was facilitated by Dana Denis-Smith, CEO of Obelisk, a leading legal outsourcing business that has built a highly-skilled pool of talent by offering experienced lawyers a more flexible way to work.

Obelisk was born when Dana began to explore why legal work was being sent offshore and how it might be brought back. At the start, the focus was just on gender diversity; female talent was dropping out of City firms, usually never to return, because of family commitments. Now Obelisk is a home for lawyers who want to follow their passion and get back into work; and for law firms and in-house legal teams who are looking for different, cost-effective resourcing models.

Key topics discussed and covered in this paper:

– What is diversity and what is driving change in this area?

– What are the benefits of a diverse workforce?

– What are the challenges to building a diverse team?

– Recommendations on how to approach building a diverse team

What is diversity, and what is currently driving change?

“There are more women than men working in in-house legal teams – a trend that is reversed in private practice.”

The group explored how one practical aim of diversity is the opening up of opportunities for everyone – regardless of social background, gender, ethnicity, age, disability, belief, marital status, pregnancy or sexuality, for example.

In the corporate world, changing societal values and a wider recognition of the business benefits have recently contributed to a greater focus on and commitment to diversity.

At the same time, in the context of the legal profession, new regulations have turned the spotlight onto diversity – particularly reporting. The SRA now requires law firms and in-house teams to provide diversity data, which they aggregate on and report on across the profession as a whole.

They also require law firms to publish this data (in such a way that no individual is identified) across their firm; you

can find this either on law firms’ websites or by request. The Law Society has also signed up a number of firms from across the profession to its Charter on Diversity & Inclusion (see “Further reading” below for full url).

This data collection has resulted in increased transparency and easier benchmarking between organisations. This benchmarking has in turn raised some interesting questions. For example, the latest figures reveal that there are more women than men working in in-house legal teams – a trend that is reversed in private practice.

Similarly, in both the corporate and legal worlds, there is a significant loss of female talent at the top of organisations. A recent study by consultancy Green Park (see “Further reading” for full url) found that only twelve out of two hundred plus holders of the Chairman, CEO or FD roles in the FTSE 100 are women. At the time of writing, there is only one senior female partner in the top 20 global and UK law firms (Penelope Warne at CMS Cameron McKenna). Representation of ethnic minorities in positions of power is similarly sparse.

One reason that diversity seems to be higher among in-house teams than law firms might be that it can be easier

The Future of Law. Since 1818. 3

and quicker for corporates to realise the benefits of different ways of working – allowing them to create a business case for change and to build on their successes. In law firms, client service is seen as paramount - and potentially in conflict with a flexible working environment.

“Working together with their firms, in-house counsel have a role to play in driving change.”

An example often cited is that if working parents are not available in the office at any hour, there is a risk that a client would move their work, as they’re not getting the service they expect. This attitude leads to a culture of presenteeism and long hours that excludes working parents, particularly mothers, and contributes to the drain of female talent at partner and senior partner level.

Working together with their firms, in-house counsel have a role to play in driving change by making their expectations clearer; and questioning whether traditional ways of working, governed by the billable hour, really deliver the best result for both client and firm.

What are the benefits of a diverse legal workforce?

While there is a robust body of research that links greater gender diversity to improved business performance and increased per capita earnings on a national basis, to date there is a lack of empirical research on the benefits of diversity within the legal profession, especially in terms of improvements to service provision.

During the Advisory Board’s conversation, it was recognised that a detailed research report, or case studies, would help to demonstrate how a more diverse legal profession would lead

to quantifiably better outcomes for businesses.

The group felt that for in-house legal teams, likely benefits would include:

• More innovation and creative problem-solving, derived from a greater blend of perspectives and opinions.

• In-house lawyers handle a variety of management, communication and business issues (above and beyond their technical legal work). A well-managed diverse team is likely to perform better in this changing environment, given the link between diversity and improved problem-solving and resilience.

• An increased ability for the team to build relationships with business colleagues (who are also likely to have a diverse profile).

At the same time, the group could see significant potential benefits for those law firms who embrace diversity:

• There is a strong business case based on the fight to attract and retain the talent required to survive and thrive.

• An increased ability to build relationships with, and understand the pressures of, in-house lawyers and their business colleagues.

• As with in-house teams, an increased uptake of innovative ideas and creative solutions, leading to the development of new business models and improved competitiveness.

“A well-managed diverse team is likely to perform better in this changing environment, given the link between diversity and improved problem-solving and resilience.”

4 LexisNexis

Challenges to building a diverse team; and some suggested approaches

For most in-house legal teams and law firms, the journey towards a truly diverse workforce is only just beginning. There are some strategic, practical and cultural barriers to progress.

Some of these challenges emerged during the discussion, and the group suggested some ways to overcome them:

Challenges Suggestions

Balancing the need to deliver a fast and responsive service to clients; and the need for a flexible working environment

For example:

• Take instructions• Undertake initial research• Apply findings to situation• Deliver advice

Exceptional client service and different working models need not conflict – think creatively about how both aims might be achieved.

For example, you may wish to consider:

• The number of FTEs dedicated to each category.• The level of experience necessary to perform each category.

It can be difficult to understand how the current make-up of the team, and the team environment, drive specific outcomes.

Explore what the benefits of a more diverse team have been for others. Speak with your peers, learn and share best practice.

Map out your team and the working environment, and try to build links to existing practices and outcomes. How might these be improved?

Current social thinking and biases can still be a barrier – for example a negative perception of someone who is returning to work after parental leave.

As the leader of the team, communicate and consistently demonstrate your commitment to diversity.

Understand where your own biases lie. Everyone has unconscious biases, recognising and proactively managing your own can help you make better decisions about recruitment and selection. As a start point, try Harvard’s Implicit Association tests here (see “Further reading” for full url).

Focus on the strengths that come from a diverse team, not the weaknesses. Remember that diversity is a commercial imperative, not solely a moral one. Encourage open dialogue and mutual respect across your team, to get the most business benefit in terms of idea generation and problem-solving.

Managing a more diverse team can re-quire new skills and more attention on the part of the manager

Speak to your HR team for help with diversity training for you and your team.

Pay attention to the different needs of everyone in your team. For example, one Advisory Board member spoke of how she changed her team’s social activities so that they worked for a Muslim member of the team. Treating people fairly means being flexible, not treating everyone in exactly the same way.

Think about the things that make your team gel –and focus on strengthening them. Consider using a tool like Myers-Briggs or Insights to learn more about the different personalities in your team and how you can work better together.

Social mobility is a particular challenge for in-house lawyers since new resource has typically been pre-selected by law firms.

True, but in a sense in-house lawyers have more of an opportunity to take a leadership role on diversity within their businesses, and among their law firms.

Consider providing structured work experience to school students from disadvantaged backgrounds, mentoring or speaking at careers events.

Consider taking on your own trainees, and think about diversity policy as you recruit.

The Future of Law. Since 1818. 5

Challenges Suggestions

When selecting law firms, it can be difficult to get a true measure of diversity; and also to prioritise diversity criteria alongside those of cost, quality of service and existing relationships.

All law firms are required by the SRA to report on diversity so you can ask your firms for a copy of their report. You can also find a list of signatories to the Law Society’s Charter on Diversity & Inclusion here (see “Further reading” for full url).

Ask to see pitch presentations from diverse teams and ask senior partners to explain their diversity policies and initiatives.

Consider ways in which a law firm with a diverse team might be more successful in meeting your demands for cost, quality and relationships.

It is your responsibility to be open about what is acceptable – for example, with lawyer availability. The law firm might think that more is required than is necessary to remain competitive.

It can be difficult to sustain the impact of diversity policies; for example when the economy recovers.

Make sure that the infrastructure and support is in place to enable continued access to opportunities.

Showcase role models and trail-blazers within your team; and demonstrate what they have brought to the business.

Further readingLaw Society Diversity and Inclusion Charter

A list of signatories to the Law Society Diversity and Inclusion Charter

Green Park Leadership 10,000: A Review of Diversity Among The UK’s Most Influential Business Leaders (NB. Requires registration).

Harvard’s Implicit Association Tests

About Dana Denis-Smith

Dana is an entrepreneur, former Linklaters lawyer and international journalist. She founded Obelisk to keep ex-City lawyers working flexibly around their family or other personal commitments, and to provide clients with an affordable and flexible quality legal support solution onshore.

Obelisk has since been recognised as leading change and innovation in the legal market; most recently, in 2014, the firm’s focus on creating a leading legal business led to it winning the “Best Strategic Leadership” Award at the Managing Partners Forum Awards for Management Excellence.

Dana is also a regular commentator, writer and speaker on issues such as the economic value of human capital, innovation in the professions and the legal sector generally.

LexisNexis has been supporting in-house counsel for over 10 years to demonstrate commercial acumen, drive personal development and shape and influence business success with unique and unparalleled business skills content.

From exclusive guidance to develop management, financial and leadership skills, to sharing best practice from fellow in-house counsel and experts through interviews, discussion papers and selective networking events.

RELX (UK) Limited, trading as LexisNexis®. Registered office 1-3 Strand London WC2N 5JR. Registered in England number 2746621. VAT Registered No. GB 730 8595 20. LexisNexis and the Knowledge Burst logo are registered trademarks of RELX Inc. © 2017 LexisNexis SA-0917-026. The information in this document is current as of September 2017 and is subject to change without notice.

Find out more about how we can help you increase your influence and demonstrate

your value to the business.

Follow us on Twitter

Follow us on LinkedIn

Subscribe to the LexisNexis In-house blog