CR: The topic of this year’s conference is ESG, how do you think the O Shaped Lawyer and ESG are connected?

DK: Both ESG and the O Shaped Lawyer reflect the growing importance of responsible business. It’s widely recognised, albeit not entirely accepted, that the business world is shifting with the purpose of an organisation being more than simply maximizing profits for their shareholders. The ESG agenda plays into that more modern business philosophy and aligns very much with the O Shaped Lawyer vision of realising the potential of every legal professional to create a healthier, more engaged and inclusive profession.

The social – or S – of ESG is closely aligned with the mantra of the O Shaped Lawyer which is “people first, then lawyers”. The S of ESG is all about how we treat people: our employees; our team; our clients, our supply chains, and our stakeholders. Similarly, the O advocates for a greater focus on our main asset, our people. If we create the right working environment for everyone to thrive and be the best they can be, then individuals, teams, companies, and their customers will benefit from those highly engaged, healthier employees. CR: What are professional services firms doing well in terms of the S?

DK: There are a few things at play here. Firstly, although our focus at the O has been on the legal profession, I anticipate that much of the O Shaped thinking applies equally across all professional services firms. Both ESG and the O have captured the attention of the legal profession, particularly over the last couple of years during which we have been gripped by COVID.

Remote working and video calls have enabled us all to interact on a more human, personal level. If we are going to truly embrace the social element of ESG, the increased human connections we have developed during the pandemic must be built on as we learn to live with COVID and find a new normal.

Secondly, I have been so impressed and encouraged by some fabulous leaders in professional services. Those who have been advocating for the O Shaped and social agenda, because they know it is the right thing to do by their people, are taking proactive steps to address these challenges. They recognise the benefits of a workforce that is engaged, valued, and empowered.

Finally, as more clients require professional services firms to demonstrate their social and O Shaped credentials, those firms which are currently more reactive are having to respond. Because many of their clients will be purpose-led organisations who expect their supply chain to adopt the same values they adhere to, they will look elsewhere if they aren’t seeing the same commitment from their professional advisers. CR: What do you think needs to happen for firms to really get on board with the ESG agenda?

DK: Firms will need to make some difficult choices. For law firms, traditionally measured by only one success factor - profit per equity partner – to truly embrace the ESG agenda, they will need to devote time and energy into something that doesn’t immediately increase the bottom line. They will need to focus on their purpose and in some cases that will require them to reflect on the existential question - Why do we exist? The answer can’t simply be about making money or even just servicing clients, it must go further and require them to reflect on their role in society and how they contribute to a better world.

Responding positively to the social challenge as an example will mean, in the short term, that partner drawings will reduce as they invest in their people. Firms’ leadership have a critical role to play in convincing their partners that their success must be measured by more than just PEP and that embracing ESG and O Shaped will have a more sustainable and lucrative impact in the longer term. To those partners with a steady supply of work and profit, this will be a significant challenge and will need a shift in mindset and corporate culture.

Bear in mind also that the next generation of leaders appear to value very different things than current generations. Some reports indicate that millennials will make up 75% of the workforce by 2025 and there is already plenty written about how they view the world through a different lens than the leaders of today. Those firms who think longer term will listen, learn and understand the next generation so they can build for tomorrow and not rely on what they believe works today.

CR: The O Shaped lawyer is focused on driving that change?

DK: Those who support and endorse our work are driving that change. We have built a growing community of senior in-house leaders who support the work we are doing and using their influence as buyers of services to make it happen.

However, such a holistic cultural change needs the engagement and collaboration from all parts of the eco-system. It is why we are working with law schools to deliver programmes that embed O Shaped thinking and why we are bringing law firms into the discussions with in-house counsel so they can be part of the solution. This collective buy-in will enable us to achieve long-lasting, systemic change and not be regarded as another fad that will be replaced by the next new thing. CR: And this isn’t about stopping firms from making money….

DK: Not at all. In fact, it ought to have the opposite effect in the longer term. Firms who embrace new ways of working, invest in their people, and deliver customer excellence will be much more attractive to buyers of their services.

In the long run, that will increase revenue. Not only will you have employees who really care about the organisation they're working for and feel valued, they will be more productive as a result. Your clients will look at those organisations and value how well they treat their people and the quality of their customer experience as a result.

Clients are going to stick with those firms for the long haul. But it takes time and whilst it sounds like a win/win, the potentially negative impact of profits in the short term, is a significant barrier to change across professions which are measured on annual performance only. CR: What does the O-Shaped lawyer want to achieve?

DK: Our purpose is to make the legal profession better for those who use it, for those in it and for those who are entering it. We want to ‘O Shape’ the legal profession, from legal education to leadership, so that it becomes a profession that we can be proud of rather than one which is perceived as being out of touch with the real world. This requires a shift away from an exclusive focus on the law to one which embraces a broader skill set with a more human approach. Once we have achieved that, we will bring the blueprint to other professional services firms. CR: That has caused the O-Shaped lawyer to broaden out?

DK: Yes, but very much informed by the in-house community’s needs. What started out as identifying a skills gap across the profession, including early engagement with law schools, quickly morphed into ongoing continuous development and ultimately the role of leaders across the profession.

What we learned was that so many of the challenges the professions currently face, such as DEI, well-being, ESG and talent retention, all came back to the foundational O Shaped principles we started out with.

It’s meant that the O now stands for much more of a cultural shift and not just an educational one, enabling organisations to look more broadly at their people strategy and how the foundational principles of the O can provide the basis for addressing the people-related challenges with which they are all grappling. CR: Is there a risk that firms just pay lip service to this, to give the community want it wants without driving real change?

DK: There is always that risk, but I have met enough supporters over the last couple of years who want the O to thrive and become the driver for meaningful change, not just a tick box exercise. What we are talking about can’t be seen as a bolt-on or a value add, it needs to become part of firms’ DNA. Ultimately, it’s the responsibility of those in the profession who have the influence to put it to good use. That’s why the in-house community we are continuing to build will be the change makers.

They have the desire; they have the influence, and they are counting on the O to lead the way. Like anything which starts out as a movement, it takes time to build the credibility and for observers to become part of the solution. The more we can accelerate that, the quicker we will reach the tipping point where those paying lip service will be the outliers and eventually have to take it more seriously or risk falling behind. CR: So are firms engaging with it and how?

DK: Yes, many of them are and I think we are close to reaching the tipping point I mentioned.

During 2020/21 we ran a series of pilots between in house legal teams and their external providers where we applied the O Shaped thinking to existing relationships. We produced a report in September 2021 with the output of those pilots. That report highlights the strengthened relationships between in-house teams and their law firms, including the trust that was built and sets out the value that then followed from adopting a one team approach.

Since then, a number of major firms have become much more engaged, some because it aligns with their own strategic approach and others because more general counsel are incorporating the O into their tender processes because they want to partner with law firms who are both technically capable, but will also be collaborative partners who they believe they can work closely with in the longer term. CR: What’s the one thing you want people to take away from this article?

DK: At the O Shaped lawyer, we believe in a more holistic people strategy, starting with foundational skills development which is reinforced through an ongoing learning culture within the organisation. That culture will enable organisations to better address the very real challenges here and now, such as ESG, but also including diversity and inclusion, well-being, and talent retention.

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