ACC Chief Legal Officer Think Tank December 13, 2013 Toronto. Staff Management, Development & Succession Planning; and Driving Efficiencies
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1 ACC Chief Legal Officer Think Tank December 13, 2013 Toronto Staff Management, Development & Succession Planning; and Driving Efficiencies This Report summarizes the discussion at the ACC s CLO Think Tank session Staff Management, Development & Succession Planning; and Driving Efficiencies held in Toronto on December 13, ACC s CLO Think Tank sessions are designed to provide a forum for CLOs who wish to exert greater leadership in their companies, at the bar, in the courts, and in the halls of government on emerging issues of greatest concern. Think Tank participants were: Mr. Simon Fish Host, Executive Vice President & General Counsel Bank of Montreal Ms. Maryse Bertrand - Vice President, Real Estate Services, Legal Services & General Counsel CBC/Radio- Canada Ms. Francoise Guenette - Senior Vice President, Corporate and Legal Services & Secretary Intact Financial Corporation Mr. Mark Hemingway- Senior Vice President, Corporate Development, Governance & General Counsel CIBC Mellon Global Securities Services Company Ms. Melissa Kennedy - Vice President, General Counsel & Secretary Ontario Teachers Pension Plan Ms. Lynn Korbak - General Counsel & Corporate Secretary Morneau Shepell Ltd. Ms. Sharon Pel - Senior Vice President Legal & Business Affairs TMX Group Mr. Alan Sinclair - Executive Director & General Counsel UBS Bank (Canada) Mr. Mark Travers - Executive Vice President, Legal & Corporate Affairs Vale Canada Limited 1
2 KEY TOPICS AND EXECUTIVE SUMMARY The participants discussed the following key topics: Attracting Talent Developing Management Skills Retention Succession Planning Attracting Talent: Participants discussed talent pools and techniques for attracting talent including internal hiring and promotion; the use of recruiters; the use of law firms as a pipeline for recruitment; and do-it-yourself advertising in social media and traditional media. Participants considered the use of alternative arrangements to manage head count constraints and the difficulty in attracting talent for international positions. Development Planning: Participants discussed methods to help develop management skills. These included personality testing, outside placements, secondments to other companies or law firms, certification programs, internal company training methods, multi-disciplinary projects and international exposure. The handling of stagnant talent was also discussed. Retention: Participants briefly discussed methods that could be used to help with staff retention, particularly high potential talent. Participants recognized that helping with morale and with productivity issues could go a long way in helping with retention. Succession Planning: Participants discussed some solutions to help motivate talent in a flat department setting. The benefits of formalized succession planning processes were also discussed. Components of such processes included the creation of skill-set and development plans, use of consultants and the institution of formalized, recurring meetings to discuss and identify emerging talent. KEY TAKEAWAYS Thought leaders participating in this session described a number of ideas and practices. Listed below are some top themes and takeaways. Attracting Talent: The following techniques were used by participants: 1. Hire internally first: Talent pools include both within law departments and possibly within other areas of the company. 2
3 2. Recruiters: Some participants use recruiters almost exclusively. Recruiters can be long-standing trusted suppliers. Some participants have a standing mandate with the recruiter and are kept informed of high potential candidates regardless of the need to fill a position. 3. Law Firms: Direct knowledge of talent at law firms is the most common means to hiring. Some participants work with personal contacts at major law firms. Secondments from law firms may lead to hiring opportunities. 4. DIY Advertising and Social Media: The advantage of doing it yourself and having direct contact with candidates is that you get a much better sense of the market and what is going on in the market: a sense of salary, commission, environment, policies, training. The disadvantage is that it is time-consuming. LinkedIn: Some participants post all positions on LinkedIn and state that the quantity and quality of candidates attracted are excellent. It is a very good tool and extremely economical. This method is particularly favoured for junior level positions by various participants. Origin of Candidate: Participants indicated that generally most hires come from the major corporate full-service Bay Street law firms. Attracting international hires for international placement: This was the most challenging type of hire in geographies such as Asia and Southeast Asia. Understanding local business, culture and risks were identified as critical elements. The preference is to hire natives of the particular geography but the challenge is to find individuals who share the same values and understanding of business from a risk management perspective. The advice from one participant was to use a large global search firm and to be prepared to pay more to attract top talent. Another participant has hired natives of the particular foreign geography and seconds the hires to head office on assignments as part of their onboarding process. It was also mentioned that cross-cultural training of all involved could help in the on-boarding of international hires. Alternative arrangements: Participants referred to the challenge of getting help without adding head count. One solution is to use alternative arrangements such as those provided by companies such as Cognition in Canada (Axiom in the US). Contract positions, articling students and summer students are also used. Note on Cross Training: One participant referred to the importance of cross training lawyers so that the in-house services can continue while a position remains vacant. Succession Planning: The Flat Department: In a flat department or one with little turnover, some participants attempt to round out staff experience by giving them opportunities to learn new things and cross over to a different practice area. This allows for lateral promotions and allows for the allocations of interesting jobs/projects. 3
4 Titles v. Salary increases: In instances where salaries are capped, various titles/levels are used to help motivate staff. For example: from legal counsel one can move to senior legal counsel which requires the demonstration of a higher level of skill but which does not necessarily come with a salary increase. Next is the title of Expert where one reaches the pinnacle of expertise. This position has no direct reports and no administrative or managerial responsibilities. Other categories for those demonstrating management potential include Division General Counsel, and Assistant General Counsels. These are people who manage a business or a group. Titles are reflected on business cards. This has been found to be very important to staff. Generally, participants agreed title was important when compensation is flat. Formalized Succession Planning Processes: 1. Skill-set and Development Plans: Some participants implement a formal planning process that identifies key talent, skill-set gaps and development plans. Development plans may involve exposure to different files or specific training and workshops. For example a future CLO candidate requiring corporate secretarial experience will be taking ICD courses, will be attending board meetings and will spend time with the Assistant Corporate Secretary. 2. Consultants: Talent management and succession planning consultants may be used. 3. DIY: Some succession planning processes discussed also included a selfidentifying component. Talent is asked to self-identify for promotion and also to create their own development opportunities. 4. Succession Planning Meetings: One very disciplined succession planning process discussed for a very large department involved weekly leadership meetings dedicated to talent development and succession planning. Emerging leaders are discussed in detail about 3 to 4 times per year. The process involves a matrix that sets out candidates that are ready to be promoted now, in 3 years and in 5 years. Views about high potential candidates are obtained from the CEO and senior executives and business managers (depending on the position/candidate being discussed). Young talent are provided with mentors and sponsors who help to bring them through the organization. Developing Management Skills: Lawyers are advised to be more than good transaction lawyers: they must also become good managers, they must show that they can develop their people. The sentiment expressed by some is that staff is also responsible to develop themselves with the encouragement of a supervisor. Development methods discussed included: 4
5 1. Personality Testing: One participant mentioned that as part of their succession planning program the emerging leadership group underwent several assessment sessions with trainers who use scientific assessment processes comprised of aptitude and personality testing that resulted in a report which quite accurately reflected the strengths, opportunities and readiness of personnel. 2. Outside placements: Some participants place talent with law firms for several months in order to learn or hone a new area of expertise. 3. Secondments to other companies: Discussion turned to a new proposition of seconding in-house counsel to other non-competing companies. This idea was viewed as an interesting way to help keep high potential and currently promotable talent from leaving when there is no promotion available. It has the potential to keep talent interested and motivated. 4. CCCA Certification program: one participant has identified one member of her team to attend the CCCA program. Participants stated that the program outline looks excellent but that it is expensive. 5. Internal in person and on-line training courses: one participant indicated their company has invested in internal on-line training courses but that the best development tool, from a course work perspective, is to actually attend the company s 2 day essential management course. Company personnel teach the course so it is not expensive and it is very effective. Similarly other participants have off-site development sessions which last 3-4 days. Talent at the sessions engage with their peers as well as higher level personnel allowing for crosspollination of people from different areas of the business, not just legal. Talent will meet a peer dealing with similar management issues in a different group. This helps to break the isolation that may be typical of a legal role. 6. Multi-disciplinary projects: High potential candidates are placed on multidisciplinary projects. This helps the candidate understand different perspectives and gets the candidate involved in client senior leadership teams thus integrating the candidate into the business. 7. International exposure: Placing talent in region offices around the world is highly recommended to help develop key talent where possible. Exposure to different cultures, environments and challenges in a deliberate manner is an excellent development tool. Training goal: To get in-house lawyers to understand that the value of in-house counsel is to be a savvy business partner; that is, in-house counsel must not only effectively apply legal skills but must also understand the business. In house counsel must understand the business strategy and goals of the company and find legal solutions that accomplish these ends which may involve taking calculated risks. 5
6 Stagnant Talent: Individuals who are doing an adequate job but are unlikely to progress further in their careers were referred to as blockers. What does one do with the adequate senior person? Underperformers are moved out. Others may be moved outside the legal group into compliance or the business side. The Compliance department is also used as a good training ground for managerial skills. Some participants have candid discussions with high performers advising that they will not be offended if these high performers chose to leave to be a GC elsewhere. Additionally, participants ensure that staff is provided different opportunities, and help to increase staff profile, for example, by motivating them to take speaking engagements Retention: Participants noted that some very simple things are effective to help with staff retention, such as: 1. Increasing Morale: increase morale through simple ergonomics; that is, keep lawyers comfortable and invest in equipment that helps achieve this. An example provided was that of a computer platform that rises and falls allowing one to work standing up. 2. Help with Productivity: Bring in a productivity planner to help ease the burden of simple repetitive tasks. One participant hired a planner to demonstrate how to handle more efficiently. Another participant spoke of ACC s Value Challenge and indicated that their department is running an innovation challenge around productivity. Conclusion and Future Topics: The group felt the session was a great success. The information discussed was very useful and would have practical application for several attendees. The group did not have time to discuss the Driving Efficiencies portion of the agenda and it was felt that this could be a future topic. Simon and Melissa also suggested that Diversity might be considered as a future topic for a think tank. All in all participants are looking forward to the next session. 6
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