Cover feature: WHEN THE GOING GETS TOUGH...

How to fight the effects of economic stress.

Lucy McNulty reports.

2009, so the financial experts say, is set to be something of a global annus horribilis as the economic turmoil, which began in 2007 and intensified significantly with the US and European banking crisis in September 2008, truly takes hold. It is a year in which we can expect yet more corporations to collapse, budgets to be slashed and hundreds of thousands face unemployment as businesses the world over struggle to keep their heads above water in an increasingly unpredictable financial tsunami. The long-term consequences of this recession on the legal profession are as yet unknown. But a leaf through any newspaper or business publication would indicate that the legal sphere is certainly feeling the pinch. Indeed, by 12 February 2009, the top 200 UK law firms had already reported a total of 2,186 redundancies1, and six major US firms had announced that, on that day alone, over 350 lawyers could face redundancy proceedings. It is undoubtedly a nerve-wracking time for those working in the profession and no more so than for women lawyers, who many are predicting to be the major victims of the crunch. For, with the average woman lawyer being 36 years old and an associate, it is feared that they will suffer the most when facing law firm lay-offs. So, how can women lawyers expect to be affected by the slowing economy? And what can they do to ensure their survival as all around them people are losing their jobs?

Trouble ahead?
The notion that female lawyers may be more affected by the fiscal downturn than their male counterparts is undoubtedly a controversial suggestion and one which some are keen to dismiss. “I don’t think it’s possible to say that the impact of the current global economic crisis on lawyers is gender specific,” says Sue Williamson, partner at Australian firm Clayton Utz, highlighting the fact that both male and female lawyers are facing unique and challenging market conditions.
And yet, to others, the link between economic strife and women lawyer lay-offs is all too apparent. “Economic downturns always exacerbate trends that are already in force, usually in a negative way,” says Holly English, of counsel at US firm Post, Polak, Goodsell, MacNeill & Strauchler PA and former president of the US-based support group, the National Association of Women Lawyers (NAWL). “This is a worry, as, even in good times, women are exposed to erratic patterns in the workplace when it comes to retention and advancement.”
It is a concern also voiced by Roberta Liebenberg, the current chair of the American Bar Association (ABA) Commission on Women in the Profession and partner at US firm Fine, Kaplan and Black RPC. “Women and minorities may be disproportionately impacted by law firms lay-offs,” she says. “As many layoffs are being attributed to performance deficiencies, we are apprehensive that bias in job evaluations may be playing a role. Care needs to be taken to ensure that such evaluations are gender-neutral.”
Certainly, in its January 2009 Women and Recession report, the UK’s national Trade Union Congress (TUC) revealed that, since the start of 2008, the female redundancy rate had increased to almost double the male redundancy rate (to 2.3 percentage points compared with the male rate of 1.2 percentage points)2. Although these figures are not specific to the legal sphere, they can do little to dispel concerns among female lawyers that they can expect tough times ahead.
“It is a fact of life that a greater proportion of women work flexibly, and there is a risk that in some organisations such roles will be seen as more dispensable,” confirms Ruth Grant, London regional managing partner at international firm Lovells. “People working reduced hours or remotely may have to make more of an effort to ensure that their full value and contribution are recognised. This can be an issue in a benign economic climate but clearly has the potential to be more of an issue in a slowing economy.”
What’s more, as Leibenberg explains, the threat of redundancy is not the only obstacle women lawyers may face in a recessive economy. “The economy may also adversely affect law firms’ diversity efforts, such as their willingness to allow women lawyers to work on a part-time or flex-time basis, and may cause cutbacks on resources allocated for women’s initiatives,” she says. “Anecdotally, we are hearing reports of firm lay-offs of their diversity officers. Also, sectors of the profession that are traditionally most hospitable to women lawyers (for example, government and non-profits) have cut back on their hiring because of the recession.” The future for women lawyers is not, it would seem, likely to be bright. So, what can be done to ease the impact of a recession?

Fighting back
“This recession is an opportunity for women lawyers to be ahead of the game,” says Fiona Fitzgerald, chair of the UK-based support organisation, the Association of Women Solicitors (AWS).
It is a notion with which Jane Wintringham, founder of Leading Women Lawyers, is in agreement. “In uncertain times, it is vitally important for any female lawyer to remain calm under pressure and refocus on actively managing her career, talent, quality of work and client relationships – recognising once and for all the vital part office politics and business development play,” she explains. “It is important now more than ever, that a female lawyer knows what she wants and how to get it.” Clearly, now is not the time to become complacent – demonstrating value added to a firm or organisation couldn’t be more critical. What skills should women lawyers develop and what strategies should they adopt to flourish in the present climate? Certainly, investment in marketing and relationship-building will be critical. “Women lawyers are advised to step up their marketing, strengthen important relationships within their workplaces, keep up ties with lawyers outside their workplace (to ensure swift and effective networking should they be let go) and respond promptly to any performance evaluations that include negative comments,” advises English. “They should be acutely aware that these are extraordinary times and a job is not to be taken for granted.”
According to Liebenberg, it is imperative that female lawyers demonstrate their value to their employers, through superior legal skills, client development and continued hard work. “Leadership and enhanced visibility will prove invaluable in distinguishing oneself from others,” she says. “Networking is particularly important at times like this, both to expand one’s client base and to facilitate transition to new employment if the necessity arises.”
Structured investment in client relationship management (CRM) is also key to survival. “Understanding the business needs of clients and what direction they will be taking is critical,” says Williamson. “In a high pressure environment, where clients are relying on their legal advisers to act quickly and effectively, lawyers are having to come up with innovative solutions to problems. To prosper in this market, lawyers will need to build and maintain strong relationships with their clients and be nimble and innovative.”
Such investment in CRM processes need not stop if a client is relocated. “Continuing to engage with a client who has been displaced – making sure that they are ok at a personal level and seeing if you can be of any assistance with ideas for future career opportunities – is advisable,” says Williamson. “It won’t secure an immediate source of work but will help to build a stronger relationship and widen opportunities in the future.”
Above all, advises Minter Ellison partner Sandra Di Bartolomeo, the key to thriving in tough times lies in ensuring you remain relevant in your job. “Making sure you can demonstrate how you add value to your clients, and your firm, will certainly help employers see you as a valuable asset to the firm and as being instrumental in helping them navigate these turbulent times,” she says. “Relationship-building skills, and the ability to see commercial implications to new developments in industries or the wider environment, are vital to being able to add and demonstrate value. Remember, each threat brings opportunity!”

All doom and gloom?
The times ahead may be challenging, and the world of business may appear to be changing at break-neck speed, but for female lawyers everywhere the future does not necessarily have to be all doom and gloom. A recessive economy can be a powerful catalyst to transformation both professionally and personally. As this article shows, there are a number of skills and strategies that could be implemented to ensure you flourish while those around you flounder. Indeed, as the author of the bestselling book The Road Less Travelled M. Scott Peck once wrote: “The truth is that our finest moments are most likely to occur when we are feeling deeply uncomfortable, unhappy, or unfulfilled. For it is only in such moments, propelled by our discomfort, that we are likely to step out of our ruts and start searching for different ways or truer answers.” The future may just be bright after all.

References

1 http://www.thelawyer.com/cgi-bin/item.cgi?id=135426

2 http://www.tuc.org.uk/extras/womenandrecession.pdfwomenandrecession.pdf

Top tips for women lawyers

By Jane Wintringham, founder, Leading Women Lawyers.

The current spate of redundancies has demonstrated (somewhat brutally) that the law is well and truly a business – women lawyers need to reshape their careers and demonstrate their added value to their firms once and for all. They can do this by raising their visibility, credibility and profitability. The key to success is to recognise the rules of the game and how to follow them.

Rule one – the dynamics of power within law firms is shifting
Power is shifting with the demise of the ‘old order’. Harness that shift in power to your advantage. Now more than ever it is the rainmakers, those with the ability to generate work and profit, to whom power will gravitate, not necessarily the ‘old boys’ network.

Rule two – treat your career as a business
Adopt a business mindset towards your career and plan. Develop your career options both in terms of direction but also opportunities. Protect yourself – have a plan B or escape route. Begin to develop expertise in another area.

Rule three – identify your personal brand and unique selling point
What is unique about the way that you deal with clients? Raise your profile and actively increase your visibility inside and outside the firm. Promote your expertise – write articles and increase your expert status. Become recognised as the font of all knowledge.

Rule four – tackle your networking and business development gremlins once and for all
Start to ‘work your network’. Plot your long-term value to the firm in terms of work you have generated. Network with your strengths in mind. Why not start your own women’s business club with the focus on developing skills and allegiances within that group? Become known as the matchmaker of both people and business opportunities.

Rule five – follow Pareto’s Law
This is the theory that 20 per cent of your efforts produces 80 per cent of your results. Strengthen your profitability both in terms of your own productivity and business development opportunities. Identify the 20 per cent of your clients or potential clients who produce the 80 per cent profits and concentrate on them.

Rule six – keep your head
Stress affects your ability to think clearly and decisively. Actively manage your stress levels – boost your brainpower: work in concentrated bursts.

Jane Wintringham is founder of Leading Women Lawyers, the UK-based support organisation for women lawyers. She can be contacted at jane@leadingwomenlawyers.co.uk

The secrets to survival

By Andrea Kennedy, founder, Andrea Kennedy consulting.

1. Be flexible
Make a calculation as to how much you are prepared to compromise – professionally, financially, and personally – in order to stay employed. Law firms don’t want to fire people en masse if they can help it. Many are, therefore, looking at creative ways to cut costs but keep as many staff as they can. These are just a few options that you might consider:

Do a job share;
Work a four-day week;
Take a sabbatical (anywhere from three months to a year);
Transfer to another practice group; or,
Work in a support role (business development, human resources or CRM).

It may be a good strategy to volunteer to take any of these options, rather than to wait to see what is offered.

2. Be visible and creative
Many female lawyers, particularly those with children, adopt the strategy of working hard, keeping their heads down and not making waves. Now may be the time to abandon such a strategy. You need to show the firm that you represent added value to them above and beyond fee earning. You might, for example, volunteer to revamp the marketing materials, produce a new brochure or page for the website, or give a talk to clients. If you are shy about giving presentations, think about being part of a panel during the question-and-answer session of a seminar. Or simply design a training module for clients and get someone else to present it. Draw upon your creative and empathetic side. Put yourself in your clients’ shoes and think about what they want and then help to deliver it. You don’t have to work harder. Just work smarter!

3. Be confident
It is hard to stay confident in such troubled times. Even in the best of times, a lot of professional women can be self-deprecating and unwilling to blow their own trumpets. I am amazed to listen to some of my coaching clients, women (and many men) who have reached the top of their profession and yet still suffer from what is commonly called ‘imposter syndrome’. They have a sense that if they are not careful, someone will find out that they really aren’t as talented as they think they are. But, if you don’t truly believe in yourself, neither will your current or a prospective employer.

4. Jump before you are pushed
If you think your job is at risk, you need to calculate whether you would prefer to take redundancy and any associated payment or whether you should start looking elsewhere while you still have a job. You may find that being made redundant is just what you need to take a break and re-evaluate your career.

5. Use this time wisely
Look at your strengths, weaknesses, opportunities that might present themselves and threats to your current position. Talk to people in similar situations. Use your contacts. If you are looking for a job, you are just as likely to find one through networking as via a recruitment agent. Finding the right position for you can be as much about timing and luck as anything else. You may even find that to truly flourish you are better off finding a job outside the law. And take time for yourself.

6. Be optimistic
You are not alone and this is not going to last forever. A ‘glass-half-full’ attitude is far more likely to serve you well than being pessimistic. It’s during the tough times that the ability to see the good in even the worst situations is so important. An optimistic attitude benefits not only your mental health, but your physical well-being as well.

Andrea Kennedy is founder of the legal business development training and mentoring organisation Andrea Kennedy Consulting. She can be contacted at andrea@akennedyconsulting.co.uk and www.akennedyconsulting.co.uk