Law Firm Gender Diversity Efforts Not Enough to Ensure Meaningful Inclusion of Women of Color

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Young lawyerby Pamela Weinsaft (New York City)

As we’ve previously reported, women in law firms have traditionally lacked the advancement opportunities their male counterparts enjoy due to inadequate access to plum assignments, a dearth of sponsors and mentors, and competing demands of work and family life.  In recent years, progressive firms have taken an aggressive stance, establishing women’s initiatives and internal policies in an effort to level the playing field for female attorneys in the firms.  But, according to Catalyst’s study released last week, while those efforts have, in fact, improved the conditions for women in general, these efforts have been significantly less successful in improving the development, advancement and retention of women of color.

According to Kathy Giscombe, Ph.D., Vice President, Women of Color Research at Catalyst, “The study shows that women of color feel very excluded within the environment of the law firms.” As a result, women of color are leaving their law firms en masse –75% of women of color associates leave their firm by the 5th year of practice, with that number jumping to 86% by the 7th year, as per the American Bar Association figures referenced in the report.

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Managing the Business of Asset Management

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stone_house_-_holly_h_miller_-_photo11Contributed by Holly H. Miller, Partner, Stone House Consulting LLC

In the wake of plummeting revenue streams, particularly with client concerns over operational risk and managers’ needs to control costs, the lines between traditional investment managers and hedge funds have blurred and will continue to do so.  Traditional investment managers and hedge funds alike need to focus on the business of managing money as well as the management of the assets.  Though the industry’s historically high margins have allowed managers to pay scant attention to the decidedly unglamorous and hugely complex expense side of the business, they must do so now.  The winners will be those who manage their firms as well as they manage their clients’ portfolios.

While buy-side revenues are driven by assets under management, costs and, ultimately, profit are driven primarily by the number of accounts and secondarily by the number of products or strategies the firm offers.  Even with automation, more accounts or products equate to more people and salaries, typically the single biggest expense item.  This disconnect between revenue and expense drivers frequently went unnoticed by many senior managers because of the industry’s incredible profitability.  That clearly is no longer the case.
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Alternative Careers for Former Wall Street Women

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istock_000007854714xsmall1by Liz O’Donnell (Boston)

Is there life after Wall Street? With unemployment rates at an all time high and the financial industry in turmoil as a result of the economic downturn, some Wall Streeters are considering major career changes. Opportunities exist as long as the former investment types are willing to think outside of the traditional career trajectory to new livelihoods – counter terrorism, for example.

Recently the Central Intelligence Agency (CIA) has been recruiting ex Wall Streeters. The agency seeks economic analysts to assess illicit financial activities, including networks used by terrorist and criminal groups, financing and procurement of weapons of mass destruction, money laundering and corruption among foreign governments and companies. Backgrounds in international finance, banking, or business are part of the requirements. But displaced and discouraged workers can put their backgrounds to work in less dramatic ways too. 

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Goldman Sachs Brings Together Multicultural Women on Wall Street

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By Pamela Weinsaft (New York City)

On June 30th, Goldman Sachs’ second annual “Brokering Change: A Wall Street Multicultural Women’s Exchange” brought together women of color from firms on the Street to discuss the current financial crisis, the future of financial services, and the role that multicultural women leaders can play in the recovery and beyond.

The conference began with an entertaining keynote address by Goldman Sachs’ Global Treasurer Liz Beshel, who shared the story of the impact of the financial crisis on Goldman and her role in Goldman’s response.   She talked of the two crucial weekends last September, saying that Goldman convened a team on the first weekend of the 13th and 14th to deal with what was going on “in other people’s firms”, i.e., Merrill Lynch and Lehman.  “I spent the weekend trying to figure out what was happening in our industry while writing my daughter’s applications for private school in NYC.   The juggling of work and life in action,” she laughed. 

The second weekend was different, however, because this time she had to deal with growing concerns about Goldman.  “Going from five investment banks to two is a pretty major reduction in an industry.  So we reconvened, this time to deal with the crisis for us.   I viewed the concerns as unwarranted at the time because we had way more cash than we thought we needed for the risk on our books and we were actually making money.”  Beshel continued, “But then our stock price started declining rapidly and you heard people on CNBC talking about our impeding demise, and some people started to believe it.” 

The firm had three teams involved: strategy, equity and liquidity; Beshel was on all three teams.  She joked, “I spent most of the weekend on the elevator going from one team meeting to another, which was great because part of the time I was hyperventilating in fear between meetings.”  

As to lessons learned from the crisis and Goldman’s response, Beshel said, “You have to understand, focus on and preserve what is most important to you. For us our independence as a firm is very important… if you know what is really important you try to find a solution that preserves that.” She also stressed the value of diversity and teamwork.  “We had people from all over the firm – every business, different experiences and backgrounds – and that is what I think is the critical and differentiating factor was for us: the power of the team.”  She acknowledged the importance of creativity and communication as well.

Beshel concluded her remarks with some thoughts on work/life balance, saying: “Your career is a marathon not a sprint. You’ve got to love [your job] but you’ve got to find ways to escape it because you can’t keep that level of intensity all the time.  You‘ve got to find something that is important to you outside of work. You cannot have it all.  You’ve got to prioritize ruthlessly in both your personal and professional life.”

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From Challenge to Opportunity: Leadership Advice for Current and Future Executive Women

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Businesswoman climbing ladder.by Pamela Weinsaft (New York City)

At the “Dialogue for Leadership – From Challenge to Opportunity: Leading to the Future” panel at the 2009 Forté MBA Women’s Conference held on the 26th and 27th of June at the New York University, two of Fortune 500’s 50 Most Powerful Women – Liz Smith, President of Avon Products Inc. and Cece Sutton, President of Retail Banking at Morgan Stanley – shared some words of wisdom on climbing the corporate ladder and living a meaningful life.  Inspired by the questions posed by moderator Pattie Sellers, Editor-at-Large at FORTUNE, as well as audience members, Smith and Sutton told the stories of their careers, their struggles, and their successes, and shared the following advice on how to become powerful women in business:

  1. Get Really, Really, Really Good at Your Job.
    “I didn’t chart my career out,” said Sutton, “but I always had a good view of what I loved doing and what the next career step might be.”   Sutton started her career in finance as a clerk with Wachovia and worked her way up through the organization over 35 years, until she left to establish the banking business for Morgan Stanley.    She added, “I’ve given advice to people I’ve mentored that if you are too focused on the next step, you are not going to do a very good job in the job you are in.  And I’ve seen that over and over again.  Get really, really, really good at the job you are in because if you are and you’ve mastered it, you will move from the next role to the next role to the next role, but if you look too far ahead, you probably won’t… People who seem to be really successful are great operators.  They get in the business and understand the business.” 
  2. Be Comfortable With Ambiguity.
    Said Smith, who, after 14 years of brand management and executive roles at Kraft Foods, was brought to Avon by Andrea Jung to help her transform the company:  “We are all taught that great leaders set the strategy and then set everybody off marching.  But, right now, nothing is more important than a general agile leader who is comfortable with ambiguity.  Let’s face it – it is going to be a bumpy and fascinating ride. We need people who are nimble and agile in their thinking who are, to some degree, comfortable with figuring it out as they go along.   We [at Avon] look for people who can handle change, who can handle the curve balls…understanding that you can’t possibly have it all figured out and being open to that.  Also, people that can communicate and inspire.  That’s always been important in leadership but now more than ever because you have to communicate and be really transparent and take people along on the journey, to say, ‘This is uncharted territory but this is where we are going.’”  Sutton agreed, adding that even her job at Morgan Stanley, which was created for her, changed shortly after she joined the company. “What I was hired to do changed in 6 months and that shifted because the environment changed.  [But it was OK because of] the belief I could make a difference.”
  3. Think of Your Career as a Jungle Gym Rather Than a Ladder.
    Moderator Pattie Sellers advised the audience of MBA women: “Don’t think of your career as a ladder, think of it as a jungle gym.  If you think of it as a ladder, you won’t have the peripheral vision to enable you see the lateral opportunities and especially today when you don’t know what the hot job is going to be tomorrow. You’ve got to keep yourself open and you’ve got to swing to the opportunities that come along.”  Smith agreed, “I believe the greatest plans are restrictive instead of instructive. Figure it out as you go along.  The only guiding principle I’ve had is to insist that my life and work have passion and purpose.  When I think about the pivotal jobs I took [like her move to Kraft’s Callard & Bowser-Suchard to handle the then-unknown Altoids brand for Kraft or the jump from being Group Vice President and President of the U.S. Beverages and Grocery Sectors in Kraft to Brand President for Avon], they really made no sense on paper.”  She continued: “Just go into everything saying – I’m going to be inspired and I’m never going to settle and go where that takes you. ”   And Sellers added, “I’m struck by women on the Fortune’s Most Powerful who’ve taken lateral moves or even taken downward moves because they wanted to expand their experiences. And that’s what pays off in the long term.”
  4. Live a Life of Passion and Purpose.
    “People see passion and purpose in other people,” said Sutton, “When I’m around others – you can see it.  So much of it rides on you and how you show up and do your job every day.”
  5. Don’t Underestimate the Value of Mentors.
    “Mentors play an important role in your career. Mentors introduce you to new ideas, new people and also provide you with great advice,” advised Sutton. Smith also attributes much of what she’s been able to accomplish to her mentors – male and female: “So when I think about the good fortune I’ve had to get to where I am, I’m very humble because I know it’s because I’ve had the mentors I’ve had – Andrea Jung, Irene Rosenfeld, Louis Camilleri, Jim Craigie.  So it is no surprise I got to where I am,” added Smith. 
  6. Find a Mentor Through Your Passion.
    Smith said that people often ask her how to find a mentor but she advises to try to find them not only in business settings.  “A mentor doesn’t have to be a professional person in the area that you think you’ll want to be in at a certain age.  Find the networking opportunities in areas that you do feel the passion and purpose. And it doesn’t have to be a business club. Get yourself involved and your authenticity will shine. Follow your heart and not just in a business sense and I promise you, you will make that connection.”  She added that she herself found a new employee via her volunteer work with Big Brothers, Big Sisters because she could see his passion for the cause.
  7. Your Destiny is in Your Hands.  Never Be a Victim.
    “There definitely have been challenges.  There definitely have been times when I’ve looked around me and felt like I was being treated differently because I was a woman versus a man.  But when that happened to me, I felt like I had to address it.  And so I didn’t let that stand in the way,” said Sutton.   Smith feels similarly: “I was launched in life by a very strong woman and a male figure who pounded into me: ‘Your destiny is in your hands.  Never be a victim.  If you don’t like something, change it.  If you think something is wrong, quit complaining and get into a position where you can do something about it.  If you don’t want to be pigeonholed, don’t pigeonhole yourself.’ I had this reinforced by a lot of terrific people growing up so I never felt like my success or failure was going to be limited or promoted by the fact that I was a woman.  The fact that I never let it enter into the equation helped.  Since I refused to, it was very hard for other people to make it an issue as well.” 
  8. Live a 360 Degree Life.
    “The first thing I decided early on was that I was going to live a 360 degree life, that I did not want work to define me and I am willing to make those tradeoffs,” said Smith. She continued, “Although I have the great privilege of having a really rewarding career that I love, my job is not the most important thing in my life – my [two kids and my husband] are.    My partner and I been juggling [work and life] for 20 years.  And some days it is like MacGyver back there with the duct tape and the paper clips to make it all appear seamless.   But I became a much better business leader when I became a mother because it forced me to be more decisive and more level headed.  I love my job but because my priority was outside the office, it made me a much more objective business leader and businessperson.  And in periods of my life of great stress, it is a great comfort to me because I always said to myself, ‘What’s the worst thing that could happen?’  If my kids are healthy, the rest is gravy.”
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Being in the Right Room: Networking Professionally for Professional Women

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Businessteam wrapping up a meeting with handshakeby Elizabeth Harrin (London)

“It’s not what you know, or who you know but who knows you,” advised Gwen Rhys to the business women and men in attendance at the Chartered Management Institute’s City Branch meeting in London last week.  “Today’s flatter, leaner structures mean it’s not about the number of people you command but the sphere of your influence.” In other words: networking. 

Rhys was speaking on board HQS Wellington, moored alongside Temple on the Thames in London, England.  Around 100 people had come to the breakfast event, including the Lady Mayoress Lin Luder, and representatives from financial and consulting firms across the city. 

Rhys, founder of Women in the City, explained that leaders have a knack of knowing who to tap for information and when.  In today’s economy, successful networking is important, not least because research shows that women with strong networks earn more. 

Employees with effective networks can settle into new situations more easily because they have a global support framework.  This makes them easier to recruit, and it doesn’t take them as long before they are contributing to the organisation in a highly productive way. 

Rhys also explained how networking ensures you are on ‘the inside track’ and it will help you come to sound conclusions because you have open and useful communication channels.  For example, she cited the situation many women find themselves in when reaching senior positions: falling off the Glass Cliff, a term coined by Dr Michelle Ryan at Exeter University.  The Glass Cliff, an updated version of the glass ceiling concept, refers to the fact that women and members of other minority groups are more likely to get leadership positions in which it is hard to succeed.  Women do well to achieve these positions but fall at the last hurdle, and Rhys believes this is because men have already turned these opportunities down, knowing them to be “the job from hell.”  Women, who are less likely to have the insider information to make the same conclusions, say yes to the precarious management role and end up failing, with all the knock-on implications for their own confidence and the likelihood of their organisation to promote other women. 

Networking is also about being able to connect cross- and inter-departmentally, and trans-nationally.  Having a strong network allows you to benchmark your performance against other people and raise your profile at the same time.  In difficult times, breaking down organisational silos can be the right way to get things done, and networking can help with that.  Mentors and coaches can be sourced through networking, and you can find the right type of mentor for you.  Research shows that when women have female mentors the greatest benefit they report is the increase emotional support.  When women have male mentors, they report that the greatest benefit is access to his network and knowledge.  Having a wide network will mean you can choose different mentors for different reasons.  

In short, if you don’t network, you’re not likely to ever make it to the top. 

However, networking is not just handing out your business cards to everyone you meet.  While there is a social element, the overall objective is to seek out and become acquainted with new people for your professional goals. 

“It’s less about working the room and more about being in the right room,” said Rhys.  It’s the quality of the relationship which means you can leverage the opportunity, she explained.  A business card in your purse does not equal a relationship – but if you can sustain relationships with those people who are the best fit for your professional goals you will no doubt reap the rewards later. 

The language of networking can put people off: after all, who wants to be ‘networked’ by someone else?  Rhys herself tries to steer clear of the word, preferring to talk about “building and leveraging relationships.” 

The purpose of the breakfast event was to gather to listen to Rhys and the open Q&A session afterwards in which the attendees debated flexible working and the pay gap amongst other things, but also to network with the other people present.  From the sound of the conversations, some of the attendees – from completely different organisations and industry sectors – greeted each other as if they already had established professional relationships.  Notes were swapped and phone numbers of other people passed on, which just proves that a fat contacts book is only half the story when it comes to getting the most out of networking.

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Investment Bankers Lend a Helping Hand on the Gulf Coast

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Team Fun putting up siding at a Habitat for Humanity build

Team Fun putting up siding at a Habitat for Humanity build

by Pamela Weinsaft (New York City)

In August 2005, Hurricane Katrina ravaged the Gulf Coast of the United States, destroying countless homes and neighborhoods and displacing hundreds of thousands of people throughout Louisiana and Mississippi.    The images were all over the news.  There was an outpouring of money and support.  And some, including Caroline Finley and a group of her colleagues from the internal audit department at Credit Suisse in New York, headed down to personally help with the clearing and rebuilding efforts.

“My manager decided to get a group together to go down to help with the Katrina relief effort.  In January 2006, about half of our internal audit department – approximately 30 employees – flew down to New Orleans and then went by bus to Biloxi, Mississippi.”    A portion of the group slept in a local church, while Caroline and some others slept in tents behind the church.   “That was actually my first time in a tent.  I actually surprised myself that I could sleep in a tent for 3 nights,” she joked.  They did mostly demolition work during that trip, tearing down structures and piling up debris.

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Underrepresented Minorities in Tech: African-American and Latina Women at Double Disadvantage

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African-American Woman with computerby Pamela Weinsaft (New York City) 

 

Last week, the Anita Borg Institute for Women and Technology released an eye-opening report. Entitled  “Obstacles and Solutions for Underrepresented Minorities (URM) in Technology”, the report examines why women—and men— from underrepresented minority (URM) backgrounds, namely African-American/Black; Hispanic/Latino, Native American, or Native Hawaiian/Pacific Islander, are generally in few in number in computer science and engineering fields.

 

Dr. Caroline Simard, Ph.D., Director of Research and Executive Programs at the Anita Borg Institute spoke with The Glass Hammer about her findings. 

 

The report states that [URM] represent 27% of the US population, hold 46 18% of Bachelor’s degrees in computer science, and 12% of engineering degrees,” but are only 6.8% of technical employees. Also, “since 1995, the representation of African-American and Hispanic/Latina women among computer science degree recipients has remained flat—Hispanic women earn less than 2% of computer science bachelor’s degrees. Despite the growth of the Hispanic population in the US, only 0.03% of all female Hispanic freshmen planned to major in computer science in 2006, the lowest of all Science and Engineering disciplines.”

 

Native American women are lagging as well: they represent less than 1% of computer science degrees. And, according to the report, “African-American women represent 4.8% of the graduate enrollment in computer science, yet they represent 7% of the US population.”

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Linda Cook: Another Female Executive Feels the Effect of the Gender Recession

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linda_cook_cut_out.jpgby Caroline Shannon (Dayton, Ohio)

Early last week, Linda Cook, one of just two women on the Royal Dutch Shell board of directors, announced her decision to step down from her position at the company. The reason? Cook, a 29-year veteran of the company, was nixed for consideration as Royal Dutch Shell’s new chief executive officer, a position that is currently held by Jeroen van der Veer. The top spot will instead be filled by Peter Voser, the company’s current chief financial officer.

Cook’s relinquishment means she will be giving up the $1.26 million loyalty bonus she would have received had she stayed on board until 2011. Now, no one is suggesting the making of anti-men propaganda. The company said Ms. Cook left as part of a mutual agreement and will continue to advise the company until her new successor is implemented.

Instead, the real concern is the economic recession and the steadily declining tally — better known as women in the workplace — that is following close behind. But can the two be linked? Marilyn Tam, a global corporate consultant and executive director of the Us Foundation, says while it may be subconscious, the pair show a definite relationship. “In times of crisis people often revert to what they are most familiar with,” Ms. Tam said. “In the case of corporate America that frequently would mean that people gravitate towards people who look and think like themselves. Since the predominant number of top positions are filled by men, this can place women business leaders in a vulnerable position.”

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Just Add Women: Ensuring Executive Women Have a Place at the Negotiating Table

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iStock_000007484696XSmall[1]_1.jpgby Liz O’Donnell (Boston)

“One of the things I’m worried about is the impact of the economy on women’s initiatives,” says Carol Frohlinger, Esq. Frohlinger is the cofounder of Negotiating Women Inc. and co-author of “Her Place at the Table: A Woman’s Guide to Negotiating Five Key Challenges to Leadership Success.” Negotiating Women provides negotiation and leadership training for women at every stage of their career.

As budgets are slashed at law firms nationwide, the fate of many employee programs, including women’s resource groups and initiatives, are uncertain. “Law firms, in particular, are fragile,” says Frohlinger. That’s because most women’s initiatives have only recently been started at legal firms. To help firms maintain the momentum of nascent initiatives, Negotiating Women, Inc. is launching the “Just Add Women® Meeting Toolkit Series”. This prepackaged program offers a solution for law firms and affinity groups that are committed to implementing professional development programs for women lawyers but can’t afford the time and money to create their own in this economy.

The Just Add Women® Toolkit comes with ready-made meeting agendas, facilitator’s guides, PowerPoint presentations, meeting checklist s and even sample email invitation describing the sessions. Topics include building a strategic network, positioning yourself for high visibility assignments, building client relationships and getting the resources you need. Negotiating Women, Inc. offers complimentary facilitator training for staff and organization members as part of the Just Add Women® Meeting Toolkit Series too. “I think people need to understand that support for this is critical,” says Frohlinger. “Women are crying out for substantive content.”

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