Securing top Exec talent amidst the changing leadership landscape in global law firms

Posted on Wednesday, July 31, 2024 by Andrea Prendergast

Modern leadership in global law firms
In my 26 years placing executives in top global law firms, I’ve witnessed a sector-shaking shift in what the Legal field wants from its leaders. An industry working hard to diversify, a greater spectrum of client demand, evolving markets and competitive landscapes, the weighty impact of the pandemic on day-to-day operations — these are just a few of the contributing factors which have prompted a transformation in how businesses are led, and who by.

New threats like Cyber Security and rising costs, as well as ever-advancing prospects like AI and Sustainability, have created a complex web of new-fangled issues for businesses, many of which didn’t exist back when the sector’s most senior partners could comfortably lead the way. Consequently, the priority is no longer for those at a firm’s helm to have the once golden-ticketed wealth of experience in the profession. Instead, decision-makers need to bring the acumen to respond adeptly and ethically to changing landscapes, address complex cross-departmental challenges and, crucially, diversify. 

The C-suite spot 
In recent years, law firms have recognised the appetite for leaders who bring a healthy spectrum of business dexterity and this has prompted a systemic move away from the traditional partner model. In its place? The C-suite structure. 

The C-suite is a retinue of business support execs (across HR, Finance, Tech, Marketing etc), who afford decision-makers the specialist input they need to stay ahead. This increasingly common format has benefits for the day-to-day of a busy legal office, too. By allocating leadership responsibility to C-suite execs, whose focus can be on propelling the business forward, the weight is taken off lawyers who need to handle the nitty gritty of delivering services to clients and supporting their teams.

Although the C-suite concept is not totally new, it’s a recent leap for the legal sector and its partners, who traditionally have held the reins of their organisation very tightly. Despite concerns over costs and loss of control, many law firms have caught on to this structure and consequently equipped themselves with the outside scaffolding to renovate their approach, demolish outdated processes, and bring their game into the current era of global business.

Changing priorities 
In line with the rise of the C-suite, senior legal positions are more malleable than they once were. Especially since the pandemic. Lockdown created a massive shake-up for entire businesses from the ground up, and this had a notable impact on the expectations and priorities of the people at the top. To a backdrop of remote and hybrid-working, I’ve witnessed a consistent rise in focus on flexibility, work-life balance, and wellbeing, and these are often non-negotiables for execs nowadays. In fact, a recent study found that more than 70% of C-suite heads were considering quitting their job in honour of their wellbeing!*

Purpose alignment has also grown. Amongst workforces around the world there’s a big emphasis on reconciling personal values and interests with professional endeavours, and C-suite candidates are more discerning in their search, aware of who and what they’re willing to work for.  This universal recalibration of what defines ‘success’ has led to top tier candidates prioritising purpose over financial reward and I’m consistently seeing them less inclined to have their heads turned by big salaries and high-ticket offers.

This move towards agility is evident in the scope of roles, too. Firms are thinking laterally and taking a more open approach when writing their job specs and creating titles, pushing the boundaries on rigid hierarchies. Although law firms are a bit behind the other professional services in adapting their leadership roles in this way, I’ve really noticed a change in the last 10 years. For example, where U.S. firms have grown their presence globally (and thus found themselves in need of senior leaders to spearhead their International offices) there’s been an uplift in recognition of Director of Administration positions. In some cases, and depending on how autonomously the U.S. Head Offices operate, the responsibilities of these DOA positions can now match CEO and COO level -  on this side of the pond at least! 

So, the job titles we’re seeing aren’t as definitive as they used to be, and exec candidates need to work harder to lift the lid on roles and responsibilities before assuming what a Director or Chief role really entails. A wave of newfangled C-suite positions are also emerging. The multifaceted needs of modern corporations have prompted a recognition of and need for new and emerging skill-sets, meaning firms are calling for CPOs (People), CIOs (Innovation), CTOs (Technology) and even CAIOs (AI). 

Needless to say, the routes to C-suite/Director level positions in the sector are more diverse than ever, and expanding all the time.

A new type of leader
It’s a new dawn for the leadership persona, too. In this revolutionary era of environmental and social responsibility, the value of a business lands well beyond the bottom line, extending to its softer assets. Employee wellbeing, diversity, inclusivity, sustainability, and purpose are the new gold-standards in success, and they’ve opened the door for a fresh style of leadership.

Tracing this change, the personal qualities and skills that hiring firms desire in their senior teams has evolved. Top positions are no longer just for the most experienced, goal-oriented, tenacious and resilient, and instead there’s an appetite for leaders who also demonstrate ethical decision-making, adaptability, emotional intelligence, cultural awareness, empathy, agility. 

This is a dramatic pull away from the stereotype often afforded to the outdated image of business execs – especially in the Legal sector –but the tide has turned and the qualities which once worked against an aspiring leader have become the very assets that make them desirable. Harvard Business Review wrote “the C-level person today needs to be team-oriented, capable of multitasking and leading without rank, and able to resist stress and make sure that his subordinates do not burn out. They need to do all of this with a big smile in an open plan office. In other words, we’re looking at a whole new breed of top executives.”

The recruitment challenge
This reshaping of C-suite positions and their prerequisites inevitably sets new standards for recruitment. Alot is afoot! Law firms are searching for leaders of a different quality, execs are seeking positions to suit their new priorities, and the requirements of these roles are becoming more diverse. While all this is positive evolution for businesses and their people, it doesn’t make the hiring job easy! In 2023, Forbes reported that C-suite turnover had hit a record high, in part because of how difficult it is to place the right exec talent amidst new and changing landscapes. 

Securing the very best executive talent for your business is a really big deal. These are the people who are going to lead your firm into the future. But finding the right heads for the job is a tougher task than ever and hiring teams need to be prepared to invest in the process. (They’re also often public and high-profile hires, and so you need to get it right!)

But how?

  • Have a detailed plan for recruiting. Outline your recruitment plan in detail and ensure everyone involved is briefed. A slick process will not only appeal to the high-quality candidates, it will save time in the long run and allow you to quickly home in on the strongest talent for your business. How many interview rounds will you have and what will each stage facilitate? Will you include tasks and who will review them? What qualities are you looking for and how will you check for them? These are all things you want to have pegged down to ensure a focused and effective hiring process. 

  • Set out the timeframes upfront. As well as knowing what the process will be (inc stages, interviews, meetings), exec-level candidates like to understand how long a process is going to take, who they will meet, who the decision-makers will be and so on. Because they really do their homework! They likely will spend a lot of energy preparing for interviews, spending huge chunks of time on presentation tasks, all whilst juggling a Director or C-Suite job day-to-day. And they want to get a sense of how important this role is to the firm, too. I’ve seen employers underestimate the investment of recruiting a senior hire and/or internal recruitment teams failing to scope a process before going to market. Firms who demonstrate a commitment to the recruitment process tend to be more desirable, as it's an indicator of how things work internally and more broadly. Working with an expert consultancy who are dedicated to the job of managing your exec hire can really tip the balance on lassoing top talent.

  • Aim for diversity. As well as being ethically sound, diverse leadership teams are also more effective. According to the SRA, firms with diverse leadership teams are able to better react to market changes, benefit from creative problem-solving and achieve higher customer satisfaction*. So set your DEI stall out early and ensure it is built into comms not just around the role you’re hiring for, but across your business as a whole. Before this, though, the infrastructure to nurture diverse teams has to be in place. 

  • Remain open-minded. With diversity comes inclusion – and that warrants an open mind. Be open to flexibility within the role (knowing execs have priorities beyond financial remuneration) but also regarding the people you consider short-list. As we’ve seen, the top executive doesn’t just fit one stereotype anymore. For example, analysis of top 100 global law firms showed that 74% of leadership roles are first-time people leaders! Be clear on what skills and traits you are looking for and ensure you’re checking candidates against those rather than an archaic idea of what a leader looks like.

  • Invest in recruitment support. Often the biggest recruitment challenge is finding the time for it in the first place. When employers outsource the very big task – to a credible recruitment partner with a proven history of talent attraction – they save ample time, resource, and unanticipated costs. Finding just a handful of suitable candidates requires many hours of meticulous research, pre-screening and interviewing, and that is just the tip of the iceberg! Firms who try to do this in-house end up either cutting corners and failing to make the best hire, or burning through their resources to get the hiring job done. As well as being a smart business move, working with an experienced recruiter enables firms to uncover high-calibre talent, and can even help evolve the role itself as good recruiters should offer market insight and help clients stay competitive with their offers. 

  • Nurture post-hire. Inevitably, any new leadership model will require an adjustment period. Firms cannot expect immediate success when placing someone brand new at the top, and it's worth investing in successful integration and post-hire nurturing. This is something that good recruitment consultancies should and do offer - often right up to 6 months after the start date. 

https://www.forbes.com/sites/jacksonweimer/2022/04/22/challenges-and-strategies-of-hiring-c-level-talent-and-executives/?sh=da2a2d984462 

https://adamsons.com/insights/rise-of-the-c-suite-the-new-firm-management-model 

https://www.thelawyer.com/less-than-two-per-cent-of-law-firm-c-suite-are-black/ 

https://www.jaffepr.com/blog/value-c-suite-law-firm-setting

https://communities.lawsociety.org.uk/july-2020/role-calls/6001163.article#:~:text=Probably%20the%20next%20most%20popular,Collas%20Crill%20have%20CFOs%20today

https://www.forbes.com/sites/rhettpower/2024/04/14/revolutionizing-c-suite-recruitment-a-new-era-of-executive-search/?sh=4b48552363b4 

https://adamsons.com/insights/rise-of-the-c-suite-the-new-firm-management-model 

*https://www2.deloitte.com/us/en/insights/topics/leadership/employee-wellness-in-the-corporate-workplace.html

*https://www2.deloitte.com/us/en/insights/topics/leadership/employee-wellness-in-the-corporate-workplace.html 

 
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