1. Organizational Climate and Performance Implications for Diversity in Law FirmsJim Burruss & CC Clark

2. 1 © 2007 Hay Group. All Rights Reserved Objectives By the end of this session you should be able to: Describe the link between Organizational Climate and Performance Explain the relevance of Climate dimensions for Managing Diversity Assess your own experience with Organizational Climate Identify areas where this group can improve the impact of Climate on Diversity in your firms Draft some Action Steps for what you can do differently to drive performance

3. 2 © 2007 Hay Group. All Rights Reserved Schedule Day I Introduction and Overview Organizational Climate: Concept and Dimensions Research Findings on Climate & Performance Implications for Diversity Diversity Study Findings Survey Feedback for Participants Small Group Action Planning for Change Follow-up Strategy and Implications

4. 3 © 2007 Hay Group. All Rights Reserved Causal Links to Performance

5. 4 © 2007 Hay Group. All Rights Reserved Organizational Climate: Definition People’s perceptions of “what it’s like to work here.” Aspects of the environment that have been demonstrated to be directly related to a person’s ability to do his/her job well.

6. 5 © 2007 Hay Group. All Rights Reserved Organizational Climate Flexibility Responsibility Standards Rewards Clarity Team Commitment

7. 6 © 2007 Hay Group. All Rights Reserved Flexibility The feelings employees have about constraints in the workplace The degree to which they feel there are no unnecessary rules, procedures, policies, and practices that interfere with task accomplishment The feeling that new ideas are easy to get accepted

8. 7 © 2007 Hay Group. All Rights Reserved Responsibility The feeling that employees have a lot of authority delegated to them The degree to which they can run their jobs without having to check everything with their boss The degree to which they feel fully accountable for the outcome

9. 8 © 2007 Hay Group. All Rights Reserved Standards The emphasis that employees feel management puts on improving performance and doing one’s best The degree to which people feel that challenging but attainable goals are set for both the organization and its employees The extent to which mediocrity is not tolerated

10. 9 © 2007 Hay Group. All Rights Reserved Rewards (Performance Feedback) The degree to which employees feel that they are being recognized and rewarded for good work The degree to which recognition is directly and differentially related to levels of performance The degree to which people know where they stand in terms of their performance

11. 10 © 2007 Hay Group. All Rights Reserved Clarity The feeling that all employees know what is expected of them, and... They understand how those expectations relate to the larger goals and objectives of the organization

12. 11 © 2007 Hay Group. All Rights Reserved Team Commitment The feeling that people are proud to belong to the organization, and... Will provide extra effort when needed, and... Trust that everyone is working toward a common objective

13. 12 © 2007 Hay Group. All Rights Reserved 100 90 80 70 60 50 40 30 20 10 0 100 90 80 70 60 50 40 30 20 10 0 Flexibility Responsibility Standards Percentiles Rewards Team Commitment ClarityTotal Actual Ideal Actual-Ideal Discrepancies > 20%

14. 13 © 2007 Hay Group. All Rights Reserved Time 2 Climate Percentiles 100 90 80 70 60 50 40 30 20 10 0 100 90 80 70 60 50 40 30 20 10 0 Flexibility Responsibility Standards Rewards Team Commitment ClarityTotal Actual Ideal

15. 14 © 2007 Hay Group. All Rights Reserved Client X: Preliminary Update Suggests that Climate Predicts Future Performance Managing Directors (n = 21) 2001 Business Results (millions) Gross MarginProfit Margin Revenue Growth High Performance Climates (n = 11) $1,880$1,1360 Neutral/Demotivating Climates (n = 10) $900$425$200 Value of Positive Climate $980$711

16. 15 © 2007 Hay Group. All Rights Reserved Diversity Climate in Your Firm Which climate dimension do you feel is the most critical obstacle to diversity in your Firm? Flexibility___ Responsibility___ Standards___ Rewards (Feedback)___ Clarity___ Team Commitment___

17. 16 © 2007 Hay Group. All Rights Reserved Typical Climate of Diversity Constituents

18. 17 © 2007 Hay Group. All Rights Reserved Organizational Climate Survey: People You Lead

19. 18 © 2007 Hay Group. All Rights Reserved Climate and Diversity Consistently, the largest discrepancy for Diversity constituents is in the area of REWARDS. This reflects the ongoing frustration these individuals have with getting the QUALITY and SPECIFICITY of FEEDBACK they need to grow and develop in the organization.

20. 19 © 2007 Hay Group. All Rights Reserved Climate in Sample of Law Firms

21. 20 © 2007 Hay Group. All Rights Reserved Climate Results for this Group [Insert Climate results for this group]

22. 21 © 2007 Hay Group. All Rights Reserved Conditions that Arouse and Sustain the Achievement Motive Clear Standards of Excellence

23. 22 © 2007 Hay Group. All Rights Reserved Conditions that Arouse and Sustain the Achievement Motive Clear Standards of Excellence Personal Responsibility for the Outcome

24. 23 © 2007 Hay Group. All Rights Reserved Conditions that Arouse and Sustain the Achievement Motive Clear Standards of Excellence Personal Responsibility for the Outcome Immediate, Concrete Feedback from a Credible Source

25. 24 © 2007 Hay Group. All Rights Reserved Giving feedback OutcomesActivitiesCompetencies Outstanding Typical

26. 25 © 2007 Hay Group. All Rights Reserved Giving feedback OutcomesActivitiesCompetencies Revenue Profit Utilization Signings Client Calls Oversight of Engagements Management Meetings Initiative Analytical Thinking Achievement Orientation Outstanding Typical

27. 26 © 2007 Hay Group. All Rights Reserved Giving feedback OutcomesActivitiesCompetencies Revenue Profit Utilization Signings Client Calls Oversight of Engagements Management Meetings Building Capability Development & Coaching Initiative (4) Analytical Thinking (5) Achievement Orientation (5) Strategic Thinking (3) Collaborative Influence (3) Revenue Profit Utilization Signings Client Calls Oversight of Engagements Management Meetings Initiative (3) Analytical Thinking (4) Achievement Orientation (3) Outstanding Typical } x10

28. 27 © 2007 Hay Group. All Rights Reserved “Coaching” Performance Management Outcomes Activities Competencies Professional Development

29. 28 © 2007 Hay Group. All Rights Reserved Demonstration

30. 29 © 2007 Hay Group. All Rights Reserved What Just Happened? What did you, the audience, take away from that? What was the associate’s performance? How do you think the associate felt about the feedback session? For those who received feedback, what did you take away from that? How are you feeling? What are the messages that you received? What are you thinking?

31. 30 © 2007 Hay Group. All Rights Reserved My Intended Message Verná Doing a very solid job as a third year in terms of capability on matters Partners like working with her Significant gap between current performance and expected fourth year performance Intended Message: You are valuable, you need to step up your game a little bit.

32. 31 © 2007 Hay Group. All Rights Reserved My Intended Message Arnie Doing an excellent job as a third year in terms of capability on matters Sometimes seems to have a bit of a chip on his shoulder Thought of as among the top associates in his class year – really functions more like a fourth year Intended Message: Doing a top notch job on your work. Would really hate to lose you.

33. 32 © 2007 Hay Group. All Rights Reserved Depth of Feedback Outcomes: What happened as a result of your work Activities: What you did Competencies: How you did it/How much of it you did

34. 33 © 2007 Hay Group. All Rights Reserved Giving feedback – Mid Level Associates OutcomesActivitiesCompetencies You billed 200 hours over the minimum standard You were the associate most in demand in your practice area Clients ask to have you remain on their matters (and were perfectly willing to pay your rate) We never have to write off any of your time You drafted more interrogatories than any other associate in your year You took 2x depositions You drafted 5x briefs Research (3)  Identified new research needs and did thorough research Knowledge of Law (3)  Used knowledge of procedural or statutory frameworks to create arguments Written Advocacy (4)  Produced complex dispositive motions and opinion letters You billed the expected number of hours You are “on track” for your class year Your work was very good or, even, your work was excellent You drafted x interrogatories You took x depositions You drafted x briefs Research (2)  Performed legal and factual research that was thorough Knowledge of Law (2)  Knowledgeable on procedural or statutory framework Written Advocacy (2)  Work products needed only minor editing Outstanding Typical

35. 34 © 2007 Hay Group. All Rights Reserved Giving feedback – Senior Associates/Non-Equity Partners OutcomesActivitiesCompetencies Brought in a new, referenceable client Second chaired a trial with a 7 figure verdict “Great job, you helped the firm meet our goals and positioned us for the future.” Pulled together teams that had the right mix of skills and served as case manager on two matters Worked on depositions, soup to nuts, including leading a team of attorneys and non attorneys who reviewed documents and prepared notes Analytical thinking (3)  Devised the right case strategy because you could see multiple causal links and analyze the relationships among several parts of problems Influence (3)  Influenced by being strategic through understanding the business and creating opportunities Provided Value to the Client (4)  Provided value to the client by proactively providing helpful insights Increased the revenue from an existing institutional client On a team that brought in a new client (didn’t initiate the contact or close the deal) You met your hours for the year “Good job this year, you helped the firm meet its goals.” Case manager on two matters Took depositions as assigned Analytical thinking (2) See cause and effect between 2 aspects of a situation and you prioritize well. Influence (1) Influenced clients by being astute enough to take advantage of opportunities when they arose. Provided Value to the Client (2) Provided value by keeping clients informed and being in constant communication with them Outstanding Typical

36. 35 © 2007 Hay Group. All Rights Reserved Individual Tasking What do you feel members of your Firm can do to make a significant improvement in these climate dimensions for diversity constituencies? What can you do?

37. 36 © 2007 Hay Group. All Rights Reserved Climate Improvement: Opportunities

38. 37 © 2007 Hay Group. All Rights Reserved Next Steps

39. 38 © 2007 Hay Group. All Rights Reserved Climate Improvement: Small Groups Flexibility:Responsibility: Standards:Rewards: Clarity:Team Commitment: