Introduction
Diversity and inclusion continue to be the legal profession's biggest challenges. While the long-term discussion justifiably continues with focus on root causes, systemic changes and barriers to progress, we are seeing signs of success. With law firms representing a highly concentrated population of lawyers, law firm diversity is a highly visible focal point for change. Often led by in-house initiatives, corporate lawyers and their law firm counterparts are creating innovative approaches that are having material impact on improving diversity on the front lines of the legal profession.
In this Quick Counsel, we will highlight three core strategies -- asking the right questions, creating positive incentives and managing for success -- that can help drive immediate and long-term impact on law firm diversity. These are based on work we have completed, observed or developed in conjunction with client companies. We've also cited examples and tips to help facilitate your efforts.
Strategy 1: Ask the right questions
Like all large law firms, Seyfarth is asked hundreds of questions about our commitment, progress and initiatives related to diversity and inclusion each year. Indeed, at least one inquiry about diversity efforts appears on a majority of requests for proposals we receive at the firm each year, of which there are many hundreds. We also answer 45-50 more in-depth requests from client companies and we participated in various industry/media surveys each year, some with as many as 130 questions about workplace policies, practices, programs, statistics and more.
While many of these requests seek information along recurrent themes, some questions and data analysis can vary wildly. While most questions make sense to us, some questions leave us scratching our heads. For example, we have seen questions asking for the 5-year attrition rate for Year 1-3 associates (which may be broadly relevant), but it makes us pause: What value or utility would this really provide to our client, and how would that information help advance their goals?
We were a thrilled a few years ago when Allstate, one of our largest clients and a leader in both legal and corporate diversity, asked us: "How would you, as a law firm, want to be evaluated by your clients on diversity and inclusion?" What a powerful and eye-opening question! Not only did it elevate the level and scope of discussion at our firm, but it also conveyed to us how much our clients respected and valued our perspective on the topic.
Allstate provided us a gift. They gave us a chance to help define what metrics mattered most for ourselves, as well as our clients. Based on an intensive review of the questions clients were asking and our analysis of questions that clients weren't asking, we created our own model, then shared and refined it with our client.
That model served as the foundation that Allstate expanded upon to create to evaluate its preferred panel firms. The early model also was adapted by BMO, the multinational financial services company, to help select preferred panel firms, and we have seen similar variations emerge from other companies.
As shown in Figure 1 ("Sample diversity scorecard for ABC Law Firm"), the model reflects a more holistic view of diversity and inclusion than basic demographic data can provide, which is crucially important to measure in large law firms (all of whom are facing the same systemic issues inherent in the profession which, in turn, impacts demographics as a whole). It includes an assessment of key factors -- such as client staffing, leadership, mentoring and development -- where the firm (and, by extension, the client) can exercise more direct and specific control than it can with firm-wide demographics. It also recommends measuring three-year trends to show progress and context that static point-in-time data does not. Three years seemed most appropriate; efforts to collect even longer-term data, e.g. 5-year trends, start to bring data integrity and relevance into question.
Perhaps the most valuable component of the model is the inclusion of a weighted scorecard approach that reflects the goals and priorities of the client. A client with a long-term firm-client relationship and staffing continuity in mind could choose to emphasize diverse staffing (30% of an overall score) and mentoring/development (20%) over the remaining five areas at 10% or less. A red-yellow-green analysis provides further clarifies performance and expectations among clients and firms.
As you think about assessing law firm diversity or taking your efforts to the next level, start by asking these questions:
- Of all the valuable data that we can assess, what matters most to us as a client? What does success look like in 1, 2 or 3 years? What will we really do with the information we collect? Which metrics can our law firms influence directly, quickly and sustainably? What success have they achieved? What innovative programs do they have?
Create shared incentives
We have found, perhaps not surprisingly, that the most productive efforts to change and improve law firm diversity and inclusion are those that engage both client and firm. It is the nature of a professional services relationship to work together toward aligned goals.
We also believe that the most effective programs include positive incentives. We advocate for positive incentives because they require a specific commitment by the client to identify and recognize success, and a commitment of action on the part of the law firm. They also set a framework for what success looks like -- a clear goal or target. They demonstrate that making a measurable difference is a priority among the legal team and the client company.
Here are examples of shared-incentive programs in which we have been, or are becoming, involved with client companies:
Connecting fees to service levels of diversity -- In developing our overall engagement and fee structure with Allstate on a large annual portfolio of multi-disciplinary work, the client asked us to establish an aggressive and achievable benchmark of work that will be performed by diverse lawyers in a year. At risk is five percent of the overall annual fee, a substantial amount given the scope of work. Successes and challenges toward achieving the benchmark goals are shared with client during overall client service progress and planning sessions.
The incentive has helped bring diversity and inclusion to the everyday discussion of managing the engagement. It has also helped us put a stronger focus on workforce planning and long-range talent development. This is the second year of a successful effort for both firm and client.
Foster networks and relationship building with industry leaders -- Over the past four years, the Leadership Council on Legal Diversity (LCLD) Fellows Program has become a highly successful effort to connect high-performing , mid-career diverse lawyers with General Counsel and Managing Partners for a multi-tiered professional development series focused on transformational leadership and relationship building. Law firms and in-house counsel recommend and underwrite participation of their lawyers for a year-long program of on-site visits with leading legal and business leaders, professional development sessions with general counsel and managing partners, and an active Alumni program continues to grow.
LCLD is not alone. Many other organizations with whom we partner offer significant opportunity to foster networks including the Minority Corporate Counsel Association, and the California Minority Counsel Program (CMCP). Not only do this programs foster networks, but true relationship building -- as one example, CMCP offers a "Corporate Connections" program at its annual conference, as well as a newly formed Ambassador Council, a leadership group of associates and younger lawyers who are given direct access to the CMCP Board and other industry leaders.
As active supporters and participants in these programs, we have witnessed the impact it has had on creating business relationships and advancing the careers of diverse lawyers.
Select diverse lawyers to directly handle client engagements on behalf of their firm -- Clients speak, and law firms listen. If you want to help improve diversity at law firms, let your law firms know that you care about the issue.
Most recently, we have been invited to participate in a new and innovative program in legal diversity. The General Counsel of DuPont, General Mills, Verizon, and Walmart have launched the Engage Excellence program to engage diverse lawyers on significant matters and promote diversity in majority law firms. The four companies have each committed a portion of their legal spend to award work to diverse lawyers, with the intent of those lawyers advancing within their law firms.
As participants in Engage Excellence, each company will appoint diverse lawyers -- nominated from within majority law firms -- to be lead counsel on significant matters and will require each firm to assign a diverse team to those matters. The diverse lawyers will include Latino, Black, Asian, other ethnically diverse lawyers, and openly LGBT attorneys with supervisory experience across a wide variety of practice areas. The participating corporations have set as a goal that at least 50% of the lead counsel awarded work as part of Engage Excellence will be women. Law firms will certify that the diverse lead lawyer hired receives financial credit as originator of the matter.
The program was launched in spring of 2015; it is a groundbreaking approach that holds great potential. Not all corporations have to participate in this program to achieve similar results, however. Simple communication about diversity and inclusion with your outside law firm can drive change, and open new avenues for dialogue.
Strategy 3: Manage for success
The key to success in any change initiative is persistence and commitment. With diversity and inclusion efforts, a strong and supportive management approach will make a world of difference. Here are suggestions to help you manage for ongoing success:
- Lead by example. Bring your law firms together to share best practices that have made a difference in your organization. Help your law firms understand what has worked well and what has not for your team's diversity and inclusion efforts, as well as your organization's effort. These can be a source of inspiration for ideas. Ask your law firms for ideas that have worked well, and not so well, in the firm. Look for innovative approaches in mentoring, talent development and executive leader involvement. Encourage law firms to share their best practices with each other. Go visit your law firms. Meet with firm leaders, as well as relationship partners. Meet the diverse lawyers at the firm -- those who work on your business, as well as those who could work on your business. Talk with them, not only about your legal work, but seek ideas, input and share best practices about diversity and inclusion. Ask -- and keep asking -- for diverse lawyers to be put on the business. Don't just ask once, or periodically, but as a part of your ongoing conversation as matters arise and progress. "Would this be a matter that your new of-color associate could help on?" "How are we doing with adding a woman lawyer to the XYZ matter?" Secure the credit. Work to ensure that diverse lawyers who develop business with you get the appropriate billing credit with the firm. Include diversity in quarterly, or other periodic, client relationship reviews. If you conduct evaluations of law firm performance, consider adding in a component on efforts and success in diversity and inclusion. This elevates and integrates diversity/inclusion efforts with other comparable measure of law firm success -- business/legal excellence, client service, budget management and overall value. Get involved and involve others. Work with your firms to help them identify opportunities to work or recommend NAMWOLF (National Association of Minority and Women Owned Law Firms) members, to work cooperatively with leading affinity bar organizations, and look for opportunities to involve non-diverse lawyers in diversity programs.
Finally, look for help to move ahead. Begin to reach out to industry resources, such as ACC, MCCA, LCLD or CMCP. Connect with some of the affinity bar organizations, as well as your law firms to start a discussion on goals and needs.
Small steps can make a notable difference; bold steps can create a more lasting impact!