December 13th 2012, London

The 30% Club has been working on a new initiative to improve the number of women partners in UK professional services firms. A group of ten law firms and seven accountancy/consultancy firms, most of whose managing partners are members of the 30% Club,
participated in a 10 week project, co-ordinated by the 30% Club and facilitated by McKinsey and Company. The purpose of the initiative was to examine why, notwithstanding the efforts of individual firms to date, progress remains limited as to the numbers of women partners in professional services firms, and suggest ideas for firms to explore to accelerate the pace of change. Key components of the initiative included interviews with senior leadership and HR managers, the provision of quantitative data on pipeline and talent processes and the participation by over 700 fee-earners in an online feedback survey, results of which were analysed on an anonymised and aggregated basis.

A key finding was that attrition was not the root cause of lack of women in partnership, nor prioritisation, with 80 per cent of firms having diversity as a strategic priority and an array of efforts being undertaken by individual firms. Rather it appeared the issue stems from inconsistent commitment to diversity at all levels in firms, questions around the partner promotion process which both men and women believe may not evaluate ability and different leadership styles in a way that furthers equality, and differences between men and women’s perceptions of being a partner and the process towards promotion. Ideas to address the challenges include embedding greater accountability for progress amongst all partners and effecting a shift from a diversity strategy focussed on women to a “talent” strategy, with a particular emphasis on sponsorship. An increased scrutiny of critical systems, such as work allocation and annual evaluation is also suggested, to ensure fairness of allocation and attribution of value to outputs in a broader range of ways. Continued collaboration and engagement with key stakeholders, including the client community, are also key, with a commitment made by these firms to reconvene to review progress on a regular basis going forward.

The findings and ideas were presented last night to an audience of over 150 people, including senior leadership and key stakeholders from the participating firms and other interested parties comprising 30% Club Chairmen, the Law Society and the ICAEW.

Helena Morrissey CBE, CEO of Newton Investment Management and Founder of the 30% Club said: “It’s reflective of just how seriously these professional firms take this issue that they came together voluntarily to analyse the causes and explore possible solutions to the paucity of women at partnership levels. With great progress being seen in the boardroom, the 30% Club has been delighted to focus on this important aspect of developing the pipeline of senior female talent. The diversity challenge facing
professional partnerships is somewhat different to that facing the boardroom, however a number of the interesting findings and new ideas raised through this particular project resonate throughout the business world. As we take the next steps towards better balanced companies, the conclusions of this intensive and collaborative initiative will help inform all of our thinking”.

Minister for Women and Equalities Jo Swinson said: “It’s a no-brainer that we need to draw on women’s talents. But the best way to do this is not through rigid regulation like the European Commission’s quotas idea.
It is about removing the barriers that hold women back. This initiative highlights the need to do this, by showing that companies with more women in executive positions perform better.

We are making real progress. For example, we’ve seen the biggest ever jump in the number of women on boards. Many of the UK’s leading companies are now sharing best practice on promoting gender equality at work, and reporting on their progress, through our Think, Act, Report initiative.”

Participating firms: