I N S I D E T H E M I N D S Building and Encouraging Law Firm Diversity Leading Lawyers on Creating and Maintaining an Inclusive Firm Culture 2016 EDITION 2016 Thomson Reuters/Aspatore All rights reserved. Printed in the United States of America. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, except as permitted under Sections 107 or 108 of the U.S. Copyright Act, without prior written permission of the publisher. This book is printed on acid free paper. Material in this book is for educational purposes only. This book is sold with the understanding that neither any of the authors nor the publisher is engaged in rendering legal, accounting, investment, or any other professional service. Neither the publisher nor the authors assume any liability for any errors or omissions or for how this book or its contents are used or interpreted or for any consequences resulting directly or indirectly from the use of this book. For legal advice or any other, please consult your personal lawyer or the appropriate professional. The views expressed by the individuals in this book (or the individuals on the cover) do not necessarily reflect the views shared by the companies they are employed by (or the companies mentioned in this book). The employment status and affiliations of authors with the companies referenced are subject to change. For customer service inquiries, please e-mail [email protected]. If you are interested in purchasing the book this chapter was originally included in, please visit www.legalsolutions.thomsonreuters.com Leadership Matters: Obstacles and Opportunities in Diversity and Inclusion Kenneth O. C. Imo Director of Diversity & Inclusion Morgan Lewis & Bockius LLP By Kenneth O. C. Imo Introduction Mental Shortcuts Influence Our Subconscious Perceptions of Who Is a Leader In five seconds or less, think about what an Army general looks like to you. It is highly unlikely you envisioned a woman because we are accustomed to seeing men in positions of military leadership, even though there are women Army generals. Most people probably would not immediately think of a person of color, a woman, or someone who is openly gay when asked to describe the characteristics of a law firm partner. This does not reveal sexism, racism, or homophobia. But both examples do reveal unconscious bias— how normal mental shortcuts related to categorization subconsciously produce and perpetuate certain prejudices. These mental shortcuts influence our subconscious perceptions of who is a leader. They also affect whom we position and, ultimately, select to lead our organizations. Advancing diversity and inclusion involves many factors and requires a multifaceted approach taken by leaders who are knowledgeable of the potential obstacles and who are adept at communicating and working toward the opportunities. So, in addition to addressing unconscious bias (as a potential obstacle), this chapter will cover early education and how it determines future lawyers; the impact of law school admissions practices on advancing diversity and inclusion efforts; how a different approach to law firm recruiting efforts could make a real change in this area; the impact of homophily (in-group preference) on developing, retaining, and promoting a diverse group of lawyers; and, finally, the role leaders play in advancing diversity and inclusion in their organizations. Each of these topics will provide context for leaders to determine how to make progress within the existing parameters or identify ways to work around them. Future Lawyers Are Made in Pre-Kindergarten Fifty years ago, the Civil Rights Act of 19641 authorized a study to describe the inequalities among educational opportunities across the United States based on race and class. The study, commonly referred to as the COLEMAN REPORT after Professor James S. Coleman, included several findings. 1 4 See 42 U.S.C.A. §§ 2000a et seq. Leadership Matters: Obstacles and Opportunities in Diversity and Inclusion Among them were significant achievement disparities based on race. The study also found that the socioeconomic status a child is born into has an impact on the individual’s success as an adult. An article published in the Spring 2016 edition of EDUCATION NEXT titled What Matters for Student Achievement states that the achievement gap has closed little in the past fifty years. At the current pace of progress, it will take 150–200 years to close the achievement gap between black and white students. Why is the achievement gap important to law firm diversity efforts? It is important because future lawyers begin their training before kindergarten. In fact, the American Bar Association’s (ABA’s) Council for Racial and Ethnic Diversity in the Educational Pipeline describes prekindergarten programs as the beginning of the legal diversity pipeline. The Widening Income Achievement Gap, published by Educational Leadership,2 states that the achievement gap is large when students enter kindergarten and attributes this gap to poverty. Unfortunately, this is when the weeding-out process begins. Approximately 90 percent of all American children attend public schools, and racial minorities comprise more than half of these students. Poorer Children May Never Catch Up A report by the Southern Education Foundation states that 51 percent of all public school children from prekindergarten through the twelfth grade are eligible for free or reduced-price lunches.3 A consequence of having a majority poor public school student population is that these children start kindergarten behind their wealthier peers in private and public schools and may never catch up. The result is a porous diversity pipeline with a disparity in academic achievement among rich, poor, minority, and non-minority children. It also results in higher dropout and expulsion rates for African American and Hispanic/Latino students and lower scores on standardized tests. 2 EDUCATIONAL LEADERSHIP May 2013, Volume 70, Number 8. Faces of Poverty, pp. 10-16. See http://www.southerneducation.org/Our-Strategies/Research-and-Publications/NewMajority-Diverse-Majority-Report-Series/A-New-Majority-2015-Update-Low-IncomeStudents-Now. 3 5 By Kenneth O. C. Imo In The Educational Pipeline to Law School—Too Broken and Too Narrow to Provide Diversity,4 Professor Sara Redfield of the University of New Hampshire School of Law says these factors also result in disproportionately higher levels of disengaged minority and poor children. It is difficult for students facing this many obstacles to be among the pool of qualified law school applicants. Your Law School Determines Your Law Firm, but Should It? Despite the challenges mentioned above, students of color are attending law school. In fact, law schools are probably more diverse than ever (in terms of percentages, rather than headcount). This shift is partly attributable to lower-tiered law schools—i.e., schools with the lowest median Law School Admission Test (LSAT) scores for incoming students—accepting disproportionately more African American and Hispanic students, as well as the fact that fewer students are now going to law school in general. According to a report by Professor Aaron N. Taylor of Saint Louis University School of Law,5 law school student enrollment fell by 25 percent between 2010 (with a record high of 52,488 first-year students) and 2013 (with a record low of 39,675 first-year students). After analyzing LSAT scores and enrollment statistics for those two years, Professor Taylor noted that the schools with the highest median LSAT scores became less diverse, while the less prestigious schools became more diverse. Only 4 Percent of Graduates of Lower-Tiered Schools Work in Law Firms Professor Taylor attributes this development to many factors, including the need for lower-tiered schools to maintain revenue by using diversity to help accomplish this goal, as well as elite law schools using the economic downturn as an opportunity to focus more on admitting students with the highest LSAT scores. This “racial and ethnic stratification” among law schools has long-term consequences on the career paths and trajectories of minority students. For example, research by the Law and Society 4 Sarah E. Redfield, The Educational Pipeline to Law School—Too Broken and Too Narrow to Provide Diversity, 8 PIERCE L. REV. 347 (2010). Available at http://scholars.unh. edu/unh_lr/vol8/iss3/5. 5 Aaron Taylor, Diversity as a Law School Survival Strategy, 59 Saint Louis University Law Journal 321 (2015), http://goo.gl/wQYpru. 6 Leadership Matters: Obstacles and Opportunities in Diversity and Inclusion Association6 reveals that more than 50 percent of graduates from top ten law schools work either in law firms with at least 250 lawyers or in prestigious federal government positions. On the contrary, only 4 percent of graduates of lower-tiered schools work in law firms. Many of these graduates work in small solo practices or in state government jobs. According to Professor Taylor’s research, schools outside of the top fifty law schools are more diverse than schools in the top fifty. But despite shrinking levels of diversity in elite schools, top firms continue to recruit almost exclusively at these schools with the hope of getting more students who self-identify as people of color or openly lesbian, gay, bisexual, or transgender (LGBT). Perhaps it is time for top law firms to expand their pool beyond top law schools. Professor William D. Henderson of Indiana University School of Law thinks so. In Solving the Legal Profession’s Diversity Problem,7 Henderson states that tradition and past practices are among the things that drive law firm behavior— particularly with respect to recruiting. Law firms prefer students from highly selective law schools because part of the vetting process has already been done for them. Elite schools admit only students with high undergraduate grades and LSAT scores, and law firms believe these students are best equipped to handle complex legal issues. Henderson set out to determine whether heavy reliance on law school pedigree produces a better candidate pool. His research in the area brought him to this conclusion: no. Lawyers Choose a Profession Designed to Weed People Out Henderson believes that law firms’ overemphasis on recruiting students from elite schools is misguided and potentially harmful to their diversity efforts. He describes lawyers as a “highly filtered” population because to become a practicing attorney, you need to obtain a four-year degree, score high enough on the LSAT to attend an ABA-accredited law school, complete law school, and pass a state bar examination. That means these people are highly motivated and smart. Or, as psychologists would say, lawyers belong to a “range-restricted” population because, compared to the 6 Ronit Dinovitzer and Bryant G. Garth, Lawyer Satisfaction in the Process of Structuring Legal Careers, Law & Society Review, Vol. 41, No. 1 (Mar. 2007), pp. 1-50. 7 Henderson, William D., Research Paper Number 335 PD Quarterly 2016. 7 By Kenneth O. C. Imo general population, this is a group with high cognitive ability that has endured a rigorous weeding-out process. Because lawyers choose a profession designed to weed people out, Henderson sets out to determine what impact, if any, do undergraduate grade-point averages (GPAs), LSAT scores, and law school grades have on someone’s potential for long-term success as a lawyer under these circumstances. For empirical data on this point, Henderson relied on research conducted by Professors Marjorie Shultz and Sheldon Zedeck of the University of California, Berkeley. Study Shows Modest Correlation Between Grades and LSAT Scores The Shultz-Zedeck study involved identifying twenty-six lawyer effectiveness factors as provided by industrial and organizational psychology research on attorneys. They created a survey to measure lawyer effectiveness on a scale of one to five and evaluated more than 1,000 UC Berkeley and UC Hastings law alumni and approximately 200 UC Berkeley law students. Shultz and Zedeck measured the participants’ scale ratings against their undergraduate GPAs, LSAT scores, and law school grades. The results included the following findings: For law school graduates, there was a modest, positive correlation between grades and LSAT scores and factors such as analysis and reasoning, researching the law, writing, and problem solving. There was a statistically significant negative correlation between firstyear grades and LSAT scores, and networking and community service. In the law student sample, there was no positive correlation between undergraduate GPA and any of the twenty-six effectiveness factors. Undergraduate GPA had a negative association with practical judgment, seeing the world through the eyes of others, developing relationships, integrity, and community service. Law Firms Should Focus Less on School Pedigree The Schultz-Zedeck study also assessed various job-relevant indicators of future lawyer success that cannot be captured by relying solely on academic 8 Leadership Matters: Obstacles and Opportunities in Diversity and Inclusion factors. They compared the participants’ survey ratings against performance on the Hogan Personality Inventory (HPI), a widely used personality assessment tool that is deemed a better indicator for lawyer effectiveness. HPI measures personality traits that include confidence, composure under pressure, initiative, desire for leadership roles, extraversion, tact, selfdiscipline, creative potential, and achievement orientation. Shultz and Zedeck identified correlations between the HPI and the survey they created that suggests law firms should focus less on school pedigree and more on job-relevant behavior when recruiting candidates. Furthermore, their research did not reveal performance gaps based on race and gender with respect to lawyer effectiveness. Henderson concludes the following from his research and the ShultzZedeck study: Lawyers do not need to attend elite law schools to succeed in law firms. The correlation between law school grades and future law firm performance has more to do with individual motivation than pedigree. More law school graduates have the aptitude to become highperforming partners than most law firm partners think. Law firms will see a more diverse candidate pool if they placed less emphasis on academic pedigree and more on job-relevant factors. People Gravitate Toward People Like Themselves Assuming that law firms take a different approach to recruiting resulting in greater diversity in their summer-associate and entry-level classes, how should they stem the attrition of diverse lawyers? Henderson references a study by professors from Penn State University and Massachusetts Institute of Technology (MIT) that shows a correlation between associates receiving (and doing well on) high-quality work and long-term success in their firms. This type of work generally comes from influential partners and provides junior lawyers with additional exposure to these partners and reputation-building opportunities. Henderson’s research on diversity and the work-assignment process does not reveal systemic gender or racial bias. However, he does acknowledge that associates and partners may naturally gravitate toward people like themselves, which disadvantages women and minority associates 9 By Kenneth O. C. Imo because there are so few women and minority partners positioned to dole out career-advancing work. Social psychologists refer to the concept of people gravitating toward people similar to themselves as homophily. Research in this area suggests that in-group favoritism is a bigger problem than overt hostility toward someone from another group because people are more likely to give opportunities to members of their own group. According to Rethinking the Baseline in Diversity Research: Should We Be Explaining the Effects of Homogeneity?, an article published in PERSPECTIVES ON PSYCHOLOGICAL SCIENCE,8 it is well documented that cognitive diversity—the variety of approaches brought to problem solving by diverse groups—improves business outcomes and prevents groupthink. However, diverse teams may also result in greater conflict when there is a lack of awareness of how to build inclusivity. According to research by psychologists on homophily—the idea that people naturally associate more with people similar to them, including being similar in race/ethnicity—people are more likely to give opportunities to members of their particular group.9 Studies have also shown that in-group preferential treatment is a stronger motive driving group conflict than out-group opposition. This preference for in-group members can also manifest in outcomes that may even be harmful to clients. Homogeneity Results in Herd Mentality One example that highlights the detrimental effects of homophily is captured in Ethnic Diversity Deflates Price Bubbles, an article published in the PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES OF THE UNITED STATES OF AMERICA (PNAS).10 Researchers selected participants who were randomly assigned to ethnically homogenous and diverse markets. The study revealed that in the homogenous market scenario, traders were more likely to accept speculative prices. Consequently, overpricing was higher, and these markets suffered more severe crashes when bubbles burst. In ethnically diverse markets, market prices fit true values 58 percent better than in homogenous markets, and, as a result, market crashes were less severe. The researchers concluded that in addition to human errors and 8 Perspectives on Psychological Science, May 2014 vol. 9 no. 3 235-244. Id. 10 PNAS December 30, 2014, vol. 111 no. 52. 9 10 Leadership Matters: Obstacles and Opportunities in Diversity and Inclusion economic climate, price bubbles may also be a consequence of the social context of decision-making. This is because ethnic diversity may foster friction resulting in beneficial skepticism. Conversely, a characteristic of homogeneity is overwhelming confidence that translates into a “herd mentality” which is often associated with pricing bubbles. Further making this point is an independent evaluation by the International Monetary Fund (IMF), assessing its role in not foreseeing or preventing the global financial crisis.11 In its report, the IMF accepted responsibility for its role in the crisis and concluded that its leadership suffered from its own homogeneity—all men from developed economies with similar credentials, who did not think large Western countries could trigger a financial meltdown. Legal Profession Is 88 Percent White Homophily is an issue in every walk of life, so one impediment to retaining and advancing a diverse group of lawyers may be a subconscious desire to offer the best career-boosting opportunities to a person’s own group. This issue can be particularly pronounced in a homogenous legal industry because, based on statistics compiled by the ABA and the National Association for Law Placement (NALP), the profession is 88 percent white, and the partnership ranks of the largest law firms are 90 percent white.12 Leaders who want to build inclusive, merit-based environments must understand how homophily and unconscious bias may influence processes that affect the retention and advancement of a diverse group of lawyers. Specifically, these cognitive issues may affect evaluations, work assignments, who receives the halo effect—i.e., labeled a superstar associate—the perceptions of associate mistakes, visibility and exposure to clients, and the sponsorship that associates receive from powerful partners—all of which influence a lawyer’s tenure and long-term success within law firms, to include succeeding as a law firm partner. 11 Excerpted from report created by the Center for Talent Innovation, How Diversity Drives Innovation: A Compendium of Best Practice, 2/1/2014. 12 http://www.americanbar.org/content/dam/aba/administrative/market_research/lawyerdemographics-tables-2016.authcheckdam.pdfhttp://www.nalp.org/0116research. 11 By Kenneth O. C. Imo Clients Often Base Retention Decision on Social Relationships In Which path to power? Workplace networks and the relative effectiveness of inheritance and rainmaking strategies for professional partners, 13 Professors Forrest Briscoe and Andrew von Nordenflychtsought to determine how inheriting someone’s practice or building your own (rainmaking) had an impact on partners’ careers in professional services firms. Both strategies rely on a partner’s ability to establish meaningful internal and external relationships that position them for long-term success to eventually generate client revenue. Because professional services require the application of customized knowledge to client problems, it is difficult for clients to assess the quality of the service either before or after it has been performed. As a result, according to Briscoe and von Nordenflycht, clients base the decision to retain a lawyer on at least two factors: their ability to trust the attorney based on that person’s reputation for providing quality work and social relationships that have developed over time between senior client executives and individual partners in the firm. The inability to assess work quality effectively means that clients will continue working almost exclusively with the lawyer with whom they have always worked. This dynamic makes the rainmaking strategy incredibly difficult, but not impossible, and the inheritance strategy depends entirely on the senior partner’s desire to pass off his (because they are mostly men) practice to a focal partner. Based on homophily, that is likely to be someone from a background similar to that of the senior partner. Leaders Create Change or React to It: MLB, US Military, and NFL Diversity and inclusion are about power, change, and making sure we give everyone a fair shot to compete on a level playing field. Leaders intent on making meaningful, sustainable progress in diversity and inclusion will create change or react to change in ways that benefit their organizations. This section will examine steps taken by leaders in sport and the military to address the obstacles they faced in pushing diversity and inclusion forward. In 1947, Jackie Robinson became the first African American in Major League Baseball (MLB). Robinson was a great baseball player and is a Hall of Famer, 13 Journal of Professions and Organization, 2014, 1, 33-48. 12 Leadership Matters: Obstacles and Opportunities in Diversity and Inclusion but he was not the best African American baseball player of his era. There were many talented black ball players, but there were few visionary and courageous baseball executives, all of whom were white, who would give African Americans the opportunity to compete at the highest level. Branch Rickey, president and general manager of the Brooklyn Dodgers, demonstrated courageous visionary leadership when he sought to become the first and only baseball executive to challenge baseball’s unwritten rule of barring African American baseball players. Law Firm Leaders Can Learn from Rickey According to Lee Lowenfish’s BRANCH RICKEY: BASEBALL’S FEROCIOUS GENTLEMAN,14 Rickey knew that to be competitive and dominant for the long term, he had tap into an unused talent pool. He also knew that because African Americans served the country during World War II to fight against oppression and bigotry abroad, it became harder to justify segregation in the MLB. Rickey, who was deeply religious and an ardent believer in capitalism, also knew integration made good business sense, and it was the right thing to do. So he and a small group of trusted advisors identified Robinson after secretively scouting black ball players, fostering buy-in from Dodgers’ ownership to recruit Robinson, and recruiting various key constituents within the community to support Robinson. Rickey immediately became a friend of and advocate for Robinson after signing him. He brought in private coaches to shore up particular weaknesses in Robinson’s game; he persuaded the team announcer, a supporter of racial segregation who was the voice of Brooklyn Dodger’s baseball, to set aside his bias and be impartial in evaluating Robinson’s play. When a group of white Dodgers players threatened to leave the organization if Robinson signed, Rickey personally intervened to thwart their revolt. Rickey’s deliberate actions laid the foundation for Robinson’s individual success and the team’s success. Robinson was naturally gifted and proved he could play at the highest level. But Rickey, a leader keenly aware of the potential impediments to Robinson’s success, took actions to ameliorate and where possible eliminate those 14 Lee Lowenfish, Branch Rickey: Baseball’s Ferocious Gentleman, University of Nebraska Press, 2007. 13 By Kenneth O. C. Imo obstacles. Rickey’s approach to integrating baseball is relevant today because law firm leaders must also be keenly aware of what can impede their ability to create a diverse partnership. When Rickey sought to integrate baseball, he assessed each potential obstacle and developed a plan to address it. He became a student of race issues and of the burgeoning civil rights movement of the 1940s to increase his level of empathy and to gain a better understanding of the challenges he and Robinson (in particular) would endure on and off the field. Rickey served as a sponsor and coach to Robinson, two things junior lawyers need from senior lawyers to advance their careers. He had a vested interest in seeing Robinson succeed. Not only would it cement Rickey’s legacy, but also, Robinson’s success would inspire generations of baseball players after him, changing the complexion of MLB forever. Minorities Significantly Underrepresented in Combat Arms Branches The US military recognized that minority officers were not afforded the same opportunities for career advancement as white officers and addressed this by taking deliberate targeted measures. General Eric Shinseki, former chief of staff of the Army, ordered the service to conduct a study identifying the root cause of the lack of minority general officers. A report by Colonel Anthony D. Reyes titled “Strategic Options for Managing Diversity in the U.S. Army,” found, in part, that minorities were significantly underrepresented in combat arms branches, the largest pipeline for promotion to general officer ranks. The Army then took deliberate steps to ensure minority officers were at least being considered for this branch and began to aggressively recruit them for combat arms positions. The American Forces Press Service reported that Admiral Mike Mullen, former chairman of the joint chiefs of staff, took similar steps to ensure that minority officers were on equal footing to compete for admiral, the Navy’s highest officer rank. Admiral Mullen once said, “we know how to make [general officers] … we’ve been doing it a long time … You put [people] in the right jobs, and if they do well, they get promoted.” So, in 2005, when Mullen became chief of naval operations, he made increasing diversity a top priority and changed the assignment process to ensure that the Navy considered more minorities for positions that put them on the path to senior leadership. Mullen created accountability by requiring his direct reports (other senior officers) to provide him with regular diversity updates. 14 Leadership Matters: Obstacles and Opportunities in Diversity and Inclusion NFL Created Diversity Committee to Promote Minority Hiring In 2011, 25 percent of head coaches in the National Football League (NFL) were minorities (eight of thirty-two). This is significant because from 1920 to 2000, only six of the 400 head coaches hired during that time were racial minorities. The NFL’s lack of diversity in its head-coaching ranks garnered attention from the late criminal defense attorney, Johnnie Cochran, who threatened to file a race discrimination lawsuit against the league. The NFL responded by creating a diversity committee led by Pittsburgh Steelers’ owner Dan Rooney, who was charged with examining the league’s hiring practices and developing recommendations based on his findings. Rooney’s group determined that overt racism did not preclude African Americans from getting opportunities, but that NFL owners and other senior executives placed a great deal of emphasis on social relationships in making hiring decisions. African Americans seeking head coaching positions did not belong to the same social or professional circles as the decision makers. As a result, when openings became available, they were often long shots for getting the job. To address this issue, Rooney’s group decided that the league had to create a way to insert minority candidates in the pipeline to, at a minimum, be considered for coaching vacancies. Their proposal required each team to interview at least one minority candidate for every head-coaching vacancy and suggested that the league impose a fine on teams that did not comply. The NFL adopted this proposal, which later became known as the Rooney Rule. Diversity Efforts Require Active Support A salient theme in each of these examples is the acknowledgment of people in positions of authority who are not women, minorities, or LGBT, who see the importance of promoting diversity and inclusion, and who used their authority to address obstacles that impeded progress. Often, diversity is seen as an issue that should be championed exclusively by ethnic/racial minorities, women, or people who are openly gay. It is unfair to these people and their organizations for them to carry the load alone because they may not have the capital in their organizations to make a meaningful difference without the backing of people with gravitas. And, based on a recent study by the ACADEMY OF MANAGEMENT JOURNAL titled Does diversity-valuing behavior 15 By Kenneth O. C. Imo result in diminished performance ratings for nonwhite and female leaders?,15 they may be judged harshly for being perceived as promoting diversity. As a result, it is critical that diversity and inclusion efforts have active and visible support at the highest levels of your organization. Leaders Leverage Diversity In addition to making their organizations more diverse and inclusive, leaders will look for opportunities to leverage diversity as a competitive advantage. In Examining the Link between Diversity and Firm Performance: The Effects of Diversity Reputation and Leader Racial Diversity, Professors Quinetta M. Roberson and Hyeon Jeong Park16 state that corporate reputation—how organizations are perceived to create value relative to their competitors—is among the most important intangible business assets. Because buyers and sellers have asymmetric information in market transactions, selecting a seller with a positive corporate reputation gives buyers comfort in their decision. In short, corporate reputation is a signal about an organization that consumers use to infer positive or negative attributes to a certain good or service. Corporate reputation includes a law firm’s diversity commitment and ability to build and maintain an inclusive environment. Law students use reports that track law firm diversity statistics to help them distinguish firms, and clients give outside counsel exhaustive surveys that include detailed questions about diversity and the composition of lawyers working on their matters. Likewise, American Lawyer A-list ranks firms based on their law firm culture (diversity and pro bono) and financial performance, and organizations such as the Association of Corporate Counsel, the Minority Corporate Counsel Association, and the NALP track diversity statistics and performance. Firms Need to Be Proactive in Their Inclusion Efforts The examples above—that is, the way law firms currently showcase their diversity commitment—require law firms to be reactive in how they present their diversity and inclusion efforts. The next step in leveraging diversity to 15 ACADEMY OF MANAGEMENT JOURNAL, March 3, 2016 amj.2014.0538. Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resources Studies (CAHRS). See http://digitalcommons.ilr.cornell.edu/cahrswp/402. 16 16 Leadership Matters: Obstacles and Opportunities in Diversity and Inclusion distinguish a firm is to determine how they can proactively demonstrate their diversity commitment to clients (and, by extension, law students and other organizations). One example is client pitches. Not only should firms be mindful of diversity on pitch teams, but firms could also research the client’s diversity commitment and proactively use this information during the meeting as one way to demonstrate shared values. Another example is to follow up with clients after completing their diversity-related surveys to discuss how better to address their diversity needs and expectations and to provide them with additional information about your law firm’s diversity program. Inclusive Leadership Necessary to Combat Homogeneity Law firm leaders will also see an opportunity in leveraging diversity in the professional development of their lawyers and will proactively seek to identify high-performing associates who have clearly distinguished themselves. Global firms committed to diversity will insist on creating initiatives that raise awareness about the importance of cultural competence and how to gain an advantage from it in a diverse, global legal marketplace. Law firms that are committed to having a more diverse partnership will recognize the potential for homophily to negatively impact the career progression of diverse lawyers. To combat the influence of homophily, firms could create programs that raise awareness of this issue in a practical way that demonstrates how it affects the work assignment process, access and exposure to influential partners and institutional clients, and how junior partners are positioned for long-term success within their firm. Firms striving to leverage diversity in a multicultural legal market may see these initiatives as steps toward avoiding the IMF’s mistake—i.e., falling victim to its own homogeneity. Inclusive leadership is necessary to combat homogeneity and the other obstacles that impede progress so that law firms can reap the full benefits of their diversity and inclusion efforts. Inclusive leaders are diplomatic influencers open to diverse perspectives and are aware of the obstacles and opportunities that accompany diversity and inclusion efforts. According to 17 By Kenneth O. C. Imo a study by the Center for Talent Innovation,17 the inclusive leader empowers others to contribute, is open to advice and to implementing feedback, and shares credit for team success. These behaviors foster innovation by encouraging a range of perspectives and viewpoints from everyone, potentially resulting in the best work product possible. Moreover, they set the tone for creating a firm that proactively seeks opportunity in diversity, which may positively affect how law firm colleagues interact with each other and their clients. Conclusion: Status Quo Is Not an Option As mentioned previously, several factors influence an organization’s ability to move diversity forward, some of which are in your control—e.g., recruiting, retention, and advancement efforts—and others are not—e.g., disparities in early education. Despite these factors, law firms are making progress in this area. Although it often feels incremental at best so it is easy to become frustrated—which is understandable—acceptance of the status quo is not an option. A better approach is to have a complete grasp of the potential impediments to progress in your firm and then develop a specific plan to address them. For example, is your firm beholden to a certain course of action steeped in tradition that is not resulting in the change you want? If so, then perhaps it is time to try something different. Some initiatives will work, and others will not—which is acceptable. But we cannot afford to do nothing, or to keep doing the same thing, and expect a different result. Key Takeaways Our subconscious perceptions of what a leader looks like ultimately influences whom we position and select to lead our organizations. The diversity pipeline for the legal profession begins in prekindergarten, which is where the weeding out process begins due to an achievement gap that disproportionately affects poor and minority children. Tradition and past practices may inhibit law firm diversity recruiting efforts; greater diversity in the candidate pool may be 17 How Diversity Drives Innovation: A Compendium of Best Practice, Center for Talent Innovation report, February 1, 2014. 18 Leadership Matters: Obstacles and Opportunities in Diversity and Inclusion developed by focusing more on job-relevant factors and less on academic pedigree. Research by psychologists on homophily (in-group favoritism) reveals that people are more likely to give opportunities to members of their own group; in the law firm environment, homophily may affect evaluations, the work assignment process, succession planning, and the type of mentorship and sponsorship necessary for long-term success in your firm. Law firm leaders who want meaningful and sustainable progress in diversity and inclusion must be keenly aware of the potential obstacles—e.g., tradition, unconscious bias, homophily—to adopt initiatives that seek to accomplish a desired outcome—e.g., recruiting, retaining, and advancing a diverse group of lawyers. Kenneth O. C. Imo is the firm-wide director of diversity and inclusion (D&I) for Morgan Lewis & Bockius LLP. In this capacity, he works closely with firm leaders to ensure that D&I play a central role in client and community engagement and in the recruitment, career development, retention, and advancement of lawyers of all seniority levels. Prior to joining Morgan Lewis & Bockius LLP, Mr. Imo led the diversity efforts of another large international law firm, and before that, he practiced law at another firm, where he represented clients on D&I matters. Before going into private practice, he served as a captain in the US Air Force Judge Advocate General’s (JAG) Corps. A graduate of Wake Forest University School of Law, he received a BA in economics and history from Southern Methodist University, where he was a scholarship athlete on the football team. Mr. Imo is often asked to speak and write on D&I and has received national awards and recognitions for his work. He was awarded the ABA Law Practice Division’s prestigious Robert P. Wilkins Award for Best Feature Article in Division Publications. The National Advocates named him to its Top 40 Under 40 list, and he was included among On Being A Black Lawyer’s Power 100 List, “The Ten to Watch.” 19 Aspatore Books, a Thomson Reuters business, exclusively publishes C-Level executives and partners from the world's most respected companies and law firms. Each publication provides professionals of all levels with proven business and legal intelligence from industry insidersdirect and unfiltered insight from those who know it best. Aspatore Books is committed to publishing an innovative line of business and legal titles that lay forth principles and offer insights that can have a direct financial impact on the reader's business objectives. Each chapter in the Inside the Minds series offers thought leadership and expert analysis on an industry, profession, or topic, providing a futureoriented perspective and proven strategies for success. Each author has been selected based on their experience and C-Level standing within the business and legal communities. Inside the Minds was conceived to give a first-hand look into the leading minds of top business executives and lawyers worldwide, presenting an unprecedented collection of views on various industries and professions.
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