Improving Retention and Promotion of Diverse Talent Ken Payson, Partner and Hiring Chair, Davis Wright Tremaine LLP and WID Chair, Moderator The Honorable Veronica Alicea-Galvan, Judge, King County Superior Court Jessica Andrade, Shareholder, Polsinelli, PC Kelly Harris, Chief of the Criminal Division, Seattle City Attorney’s Office Lisa Tanzi, Corporate Vice President and Deputy General Counsel, Microsoft Corporation LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington

Retention and Promotion Remain Greatest Challenges Minority representation at record high Minority lawyers represent 16% of law firm associates, partners, and counsel Numbers have increased among women and men Women of color now slightly outnumber men of color LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington Source: Vault/MCCA Law Firm Diversity Survey 2017 Report

Retention and Promotion Remain Greatest Challenges Minority representation at record high Progress most evident in incoming associate classes 31% of 2L summer associates who accepted offers in 2017 to return as full time associates were members of racial/ethnic minority groups 10 years ago closer to 25% LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington Source: Vault/MCCA Law Firm Diversity Survey 2017 Report

Retention and Promotion Remain Greatest Challenges Minority representation at record high Minority partner level has increased by more than 2% since 2007 BUT, even though 1 in 4 law firm associates is a person of color, more than 90% of equity partners are white And women of color represent 13% of associates, but less than 3% of equity partners LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington Source: Vault/MCCA Law Firm Diversity Survey 2017 Report

Retention and Promotion Remain Greatest Challenges Despite higher overall minority representation, attrition among minority lawyers is also higher In 2016, almost 22% of all attorneys and 27% of associates who left firms were minorities Both figures exceed those reported in previous 10 years LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington Source: Vault/MCCA Law Firm Diversity Survey 2017 Report

Retention and Promotion Remain Greatest Challenges Representation of women at record high 35% of law firm attorneys are women Highest figure in 10 years LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington Source: Vault/MCCA Law Firm Diversity Survey 2017 Report

Retention and Promotion Remain Greatest Challenges Strong recruitment of women 49% of 2L summer associates 44% of all new lawyers hired LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington Source: Vault/MCCA Law Firm Diversity Survey 2017 Report

Retention and Promotion Remain Greatest Challenges BUT retention of women at firms remains poor About 40% of lawyers who left firms were women Fairly constant figure in past 10 years And 11% of lawyers who left firms were women of color LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington Source: Vault/MCCA Law Firm Diversity Survey 2017 Report

Retention and Promotion Remain Greatest Challenges Growing number of openly LGBTQ attorneys 2.5% of law firm attorneys are openly gay, lesbian, bisexual, or transgender 4.6% of summer associates are openly gay, lesbian, bisexual, or transgender Some gains may be attributable to more widespread reporting LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington Source: Vault/MCCA Law Firm Diversity Survey 2017 Report

Retention and Promotion Remain Greatest Challenges Data constraints for attorneys with disabilities Underreporting remains an obstacle for capturing reliable data for attorneys with disabilities 30% of law firms surveyed do not track or report disability information The numbers reported—though quite small, under 1%—are trending upward LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington Source: Vault/MCCA Law Firm Diversity Survey 2017 Report

Retention and Promotion Panel Overview Specific retention and promotion challenges What our respective organizations are doing or have tried to address those challenges What has worked, what has not worked How we can help each other leverage better outcomes LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington

Specific Retention and Promotion Challenges Implicit bias Lack of critical mass Inequitable allocation of high-value vs. low-value work Inequitable inclusion in formal and informal social and/or networking opportunities Resulting isolation, lack of mentors/sponsors, lack of opportunities LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington

What Our Respective Organizations Are Doing Affinity groups Reduce isolation/boost morale Safe space for sharing/letting down “mask” Training programs Implicit bias training “Dialogue across differences”—discuss scenarios where differences can appear in workplace and how members of underrepresented groups might feel Encourage engagement with outside organizations, such as minority/specialty bar associations LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington

What Our Respective Organizations Are Doing Sponsorship/mentorship 1:1 Mentoring rings—one mentor to several mentees Monitoring allocation of high-value and low-value work Considered in attorney review process for both work assignees and assignors Participation of D&I committee in attorney review process to discern possible impact of implicit bias or inequitable opportunities LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington

What Our Respective Organizations Are Doing Ensuring diverse case teams Law firms’ self-imposed requirements Measure and publish results Better if tied to partner compensation Client incentives Bonus potential for law firm meeting client diversity goals of meaningfully diverse case teams, e.g., underrepresented group members as 1st or 2nd chair Requiring underrepresented group members among proposed case team leadership in pitch proposals Including diversity in succession planning LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington

What Our Respective Organizations Are Doing Book clubs focused on different lived experiences to understand how members of underrepresented groups might feel LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington

Resources Vault/Minority Corporate Counsel Association (MCCA) Law Firm Diversity Survey 2017 Report https://www.mcca.com/wp-content/uploads/2017/12/2017-Vault-MCCA-Law-Firm-Diversity- Survey-Report.pdf National Association for Law Placement (NALP) 2017 Report on Diversity in U.S. Law Firms https://www.nalp.org/uploads/2017NALPReportonDiversityinUSLawFirms.pdf MCCA Recommended Diversity Practices for Law Firms https://www.mcca.com/wp-content/uploads/2017/04/Book-2Blue.pdf MCCA Study of Law Department Diversity Best Practices https://www.mcca.com/wp-content/uploads/2017/04/Book8-Lime-Green.pdf ABA Diversity in the Legal Profession the Next Steps https://www.americanbar.org/content/dam/aba/administrative/diversity/next_steps_2011.authch eckdam.pdf Diversity, Equity, and Inclusion Action Grid (though not focused on the legal profession, very applicable and comprehensive resource from Obama White House archives) https://www.whitehouse.gov/sites/whitehouse.gov/files/images/Documents/Diversity%20Equity% 20Inclusion%20Action%20Grid.pdf LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington

Resources WSBA Diversity & Inclusion Resources Directory of Washington State and National Minority and Specialty Bar Associations https://www.wsba.org/connect-serve/other-bars/minority-bar- associations LEGAL EXECUTIVES DIVERSITY SUMMIT The Next Level: Moving Forward on Diversity and Inclusion May 23, 2018 Seattle, Washington