Category: Authentic Conversations About Difference

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Authentic Conversations About Difference

Removing the Anxiety from Your M&A Deal

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Business team during a brainstorming in a meeting

An M&A deal is a huge project, regardless of the size of your business. Some companies shy away from the prospect of a merger or acquisition because it seems too daunting. They fear their ongoing business will grind to a halt, or that all their time and effort will be wasted when the deal inevitably falls through. These fears shouldn’t dissuade you from making a deal that can help you grow or sell your business.

I had a long-time client named Miguel who, after many years, had finally found a buyer for his business. Understandably, he wanted to be sure he got the perfect deal before selling. He came to me and said, “Corey, I’ve got a buyer for my company. I want to sell it, and I want to do it as a reverse triangular merger” (the buyer creates a subsidiary company and then merges it into the company they are acquiring). He seemed more sure of the structure of the deal if he did chose to sell than the decision to actually sell his company.

In another world, Miguel would have gone ahead with the reverse triangular merger unquestioned. But, my job was to lead Miguel to his objectives in the best way possible. So, I asked him, “Okay, Miguel, I’ve done reverse triangle mergers. No problem if that is the way we end up going, but why do you want to structure it that way?”

Miguel’s response was one I had heard before, “My friend did his deal as a reverse triangular merger; it worked out really well, and he saved a bunch of taxes.” Still, I stopped him and said, “That’s great for him—but his deal is not necessarily your deal. Why don’t we talk about where you are now, and then let’s talk about your objectives and where you want to be by the end of the deal? That will get you more comfortable with the decision of whether or not to sell and then we can decide on the best structure.”

And that’s what we did. As it happened, the reverse triangular merger wasn’t the best kind of deal for what Miguel wanted to achieve. In the end, the deal looked nothing like a reverse triangular merger, but, Miguel achieved all of his objectives, and happily sold his business.

Sometimes all it takes to go from hesitation to a profitable deal is gaining clarity on your objectives and your options. I’ve identified four things you can do as an owner that can help you lose the uncertainty of doing an M&A deal and set your business up for success.

Get clear on your objectives. From the overarching goals (are you a buyer or a seller?) to more minor line items in a deal, as the principle owner, you need to take the time to do the inner-work of identifying exactly what you want your deal to accomplish before moving forward. In the above example, Miguel wanted to do three things: receive fair value for his business, limit his tax exposure, and reach terms that would ensure the continuation of his business – that it wouldn’t be stripped for parts. Once we sat down and hashed out those terms, things got easier and Miguel become more comfortable with his decision to sell.

Find a strategic counterpart. You shouldn’t jump at the first buyer or the first seller that meets your acquisition needs. They might end up being the best fit, but drilling down on your strategic vision for the deal will help ensure that you find the right partner. This is especially important because an M&A deal isn’t always an exit scenario for an owner. In any deal, but especially if you will continue to be involved in the company post-deal, you need to be absolutely sure your counterpart is a perfect fit for your long-term goals, as well as a fit culturally.

Remember that due diligence will bring it all to bear. Whatever remaining questions or concerns you have should be answered during this process. While you’re deep into the M&A process at this point, it’s rare that an unconditional offer will have even been submitted much less a deal signed before completing an exhaustive due diligence period. Meaning, if your findings don’t leave you completely comfortable (regardless of which side of the deal you’re on), you can still walk away. This due diligence process will help clarify what you should be looking out for.

Stay detached from the outcome. Probably the most difficult and most important thing you can do for your M&A deal – especially if you’re a seller. With any deal like this, there’s going to be a lot of back and forth that might push some of your buttons. Even if the relationship to this point has been completely amicable, it’s still business and we’re all negotiating with our best outcomes at heart. If an offer doesn’t come close to the value you’ve got in mind for your business, don’t take it personally. You’ve done the work to get clear on your value and objectives – it’s on the other party to come to terms. As long as you stay detached from the outcome and are willing to accept that a deal might not get done, you’ll eventually land the deal that’s right for your business whether it is the one you are currently negotiating or not.

With global M&A trends on the rise, industry leaders are expecting the biggest year for deals in recent memory. Being prepared and approaching these big deals with a calm and cool mindset can make all the difference for your business. As an entrepreneur, I’ve made sure that at Kupfer & Associates, we’re bringing sharp business acumen to the M&A negotiation process – an approach that understands the needs and goals of today’s business owners. Let’s get M&A right.

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Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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Authentic Conversations About Difference

When is the Right Time for Your M&A Deal?

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Business team during a brainstorming in a meeting

Just because the forecast on M&A this year is promising doesn’t mean you can or should make a deal. Sometimes the market won’t align with your business cycle. If you are thinking of negotiating a sale of your business or a merger/acquisition this year, make sure the time is right for you, not just the industry at large.

When is the right time for an M&A deal? There’s no blueprint. For the most part, timing is case-by-case. That said, in my experience, there are similarities that one can point to and suggest that it could be high-time for a deal.

The life cycle of any business is relatively predictable, right? At least with small to medium-sized businesses, we have the founding/startup of the business, then rapid growth, followed by slower growth, a plateau, and then, eventually, the downturn. To identify when—in which phase—you want to seek a deal, you first need to identify your objectives. What I’d like to do next is explore the objectives that match up with each phase. The hope is that, by the end, you’re able to identify when you should look for a deal or, if you know you’re ready for a deal, what kind you should seek.

Founding/Startup

There aren’t many options for you at this point. It’s proving time. Unless you’re coming from a major shop, have a superb reputation in your industry, and are bringing with you a huge catalog of clients, you likely won’t find many buyers—assuming you want any buyer to begin with—and you likely lack the capital for any serious acquisition. Time to grind and build the value of your business.

Rapid growth

This is a tricky time. Things are on the upswing and it feels like it might never end. Still, you’ve got to take the long-view and be open to a deal. Test the waters. There’s a chance your business might be at peak value during this phase. It’s also likely when you’re feeling most prideful and optimistic about the company you created. If you find the right buyer—someone who will honor your vision and will preserve a lot of the critical aspects of your business—it might make long-term sense to sell right now, even if it feels unnecessary in the moment. Conversely, this might be a bad time for you to consider an acquisition. The process can be long and complicated. During this phase, your business needs your full attention as visionary and leader. Don’t lose that momentum unless you’ve identified a glaring need.

Slow Growth/Plateau

I consider this the “Goldilocks zone” of M&A. It’s when founders have the most clarity about their business’s value and place in the market. It’s also when founders have the most M&A options available to them. Your company’s value is probably still pretty close to its peak and, in a perfect world, you’ve reached the proverbial fork in the road. You have the assets and capital to consider an acquisition. Are you better positioned for an acquisition that leads to sales growth? Buy a competitor. You might be better positioned for market growth. Buy a complementary service. If you’re committed to continued growth, now is the time to buy and jumpstart growth again. If you feel like you’ve accomplished everything you wanted in creating this company, you can likely find a willing and suitable buyer.

Downturn

It’s important to be realistic about your business. Perpetual growth is something enjoyed by exactly zero companies. Growth is never linear, and your business will inevitably head toward a valley after it’s time at peak. At this point, you have a choice to stay strong through the downturn and consider what’s next for your business—which likely means a growth-oriented acquisition. Truthfully, it’s at this phase when many founders choose to sell their business. There’s still great value to be had in selling, and knowing entrepreneurs the way I do, it’s likely you’re eager to get onto your next project rather than pushing through something that you feel has reached a positive conclusion. If that sounds like you, start seeking potential buyers that suit your exit plan.

These observations are more than just hypothetical. They’re based on my experience working on M&A deals with businesses of all sizes and values. For a closer look at the M&A work we do at Kupfer & Associates, check out our website: http://kupferlaw.com/mergers-acquisitions/. If you’re the owner of a privately held small-to mid-market business, the halfhearted attention you’re likely to receive from a mega-firm will make it difficult to achieve your M&A objectives and get the best deal for your business. Having a dedicated team that possesses the experience and wisdom of a major firm while being committed to making you a priority can make all the difference. You need the right negotiator and deal-maker on your side.

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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Authentic Business Relationships Authentic Conversations About Difference Authentic Leadership

Mentorship: Exploring the Reverse Mentor Concept

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Business team during a brainstorming in a meeting

What we can learn from changing the status quo

I’ve really enjoyed this series on mentorship. You might have noticed that in general, I prefer serial writing. It’s because while I love sharing my thoughts and insights, the exercise also gives me some clarity and room to deepen the discussion. One thing that’s become clear to me in the ongoing discussion about mentorship is that regardless of which role you assume, it’s fundamentally about learning. Mentors learn more about their past experiences when they impart the wisdom they’ve gathered over the years. Mentees learn how they can grow and improve in the most well-directed ways.

It led me to the question: When do we stop trying to grow and improve like a mentee? Your answer should be “never.” Yet, when we think about mentorship, it feels natural that we age out of the mentee mindset, that after an arbitrary level of experience, or an even more arbitrarily decided age, we transition from mentee to mentor full time.

While I fully support anyone assuming the role of mentor, we shouldn’t let inauthentic qualifiers like age or experience exclude us from learning and growing like a mentee. I was reading a piece by Marcel Schwantes about 6 Traits Smart People Have in Common when his advice on reverse mentors crystallized this notion for me.

The reality is, the world is changing faster now than ever before. Trends change weekly, the conversations we’re having change daily, and the skills and expertise we need to succeed are constantly evolving with the pace of technology and innovation. Fooling yourself into thinking that you can keep up with all of this on your own is a mark of ego.

Yet, there’s a generation who have grown up with this pace of change, who can transition their skills seamlessly with technology, and who speak the language of change better than more experienced generations can. It’s here that embracing a reverse mentor can make a big difference for you.

Navigating the unfamiliar dynamics of the reverse mentor relationship is certainly a challenge, but learning from a “Millennial” is in your best interest. Let’s talk about what the best reverse mentor relationships have in common.

In this context, you’re peers. The expectation of mutual respect should sustain no matter what, but approaching reverse mentorship wearing your “boss” hat is a mistake. Be humble and approach the relationship as a peer. You shouldn’t fear that it will detract from your role as a leader. Rather, seeking a reverse mentor will signal to your team how much you value learning and will set a great example. Additionally, if you do some pre-planning, you can confirm with your reverse mentor the exact dynamics of the relationship and keep your leadership intact while creating a healthy space for learning.

Accept that you don’t know what you don’t know. We stay as updated as we can, but if we think we know everything, what’s the point? It’s very likely that there are developments and technologies that we don’t even know we need to be aware of. A major part of what we can learn from a reverse mentor is emerging trends and how to track them. It’s critical that as leaders we remain aware, relevant and in tune to trends as they are emerging. A reverse mentor can position you for accelerated success when it comes to leveraging new technology, important demographic and market shifts and generational differences.

Understand it’s more than mechanical. Sure, there’s a lot to be gained from becoming more technologically savvy, but as millennials gain buying power and influence in the market, plugging into a more youthful perspective is important. Your worldview is likely very different than a Millennial’s, and appealing only to those people with a similar mindset to yours is a losing proposition. Gleaning a youthful perspective and opening yourself up to a dramatically different worldview will help you think about problems more effectively and devise more pointed solutions.

Mentorship has resulted in some of the most meaningful and impactful relationships in my life. I speak from experience when I say it’s a truly rewarding endeavor, but only with the right approach. I hope this discussion of reverse mentorship helps you abandon your misconceptions of what mentorship can be and how it has to look. We should always work to avoid limiting our learning opportunities. On that note, if you haven’t already, check out some of the mentors who shaped my life and career: https://www.coreykupfer.com/resources/

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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Authentic Business Relationships Authentic Conversations About Difference Authentic Leadership

Mentorship: How to be the Best Mentee

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Business team during a brainstorming in a meeting

You get out what you put in

As discussed last week, a mentor with the right approach is necessary for constructive and productive mentorship. Yet, even more responsibility falls on the mentee. The fact is, many mentees approach mentorship for the wrong reasons. Their motivations are often selfish and inauthentic. To many mentees, mentorship is just about playing the game and climbing the ladder.

I will tell you right now, anyone who approaches the relationship with that motivation and that inauthentic attitude won’t just fail at being a mentee but will struggle to truly succeed in their life. The goal should always be personal improvement, learning, and a genuine desire to become the best worker and person possible. That’s a context which can make mentorship a transformative exercise and lead to true success.

Aside from entering the relationship with the right context, what else can mentees do to get the most of their time with a mentor?

Fully commit to the relationship. Even with the best intentions, if you’re not all-in as a mentee, you’re not going to get out of the relationship everything you might expect. It can’t be a matter of convenience for you. If your mentor gives you an assignment or challenge, don’t put it on your backburner. Make it a priority. There’s a reason they’ve asked you to do it, and if you only accept the work you’re comfortable with, growth will remain unattainable.

Be authentic. Don’t be who you think your mentor wants you to be or who you think you need to be. Be who you are and approach the relationship with complete honesty. If you’re not your true self, how can you expect your mentor to give advice that can really have an impact? It’s only when you show your mentor who you truly are that they can help you become the person you want to be.

Have clarity. It’s not the responsibility of your mentor to define what you want to gain from their mentorship. Before you enter into the relationship as a mentee, it’s imperative that you get clear on exactly how you want to develop personally and professionally. Showing up under the delusion that you’re a blank slate is totally unproductive. Audit yourself. Creating a detailed inventory of your strengths and weaknesses, situations that have caused you problems in the past, areas in which you excel. Starting off the relationship with this kind of information to build upon will make your mentor’s advice more poignant and effective. It sets you both up for success.

Give first. What have you done to prove to your mentor that you’re worth their time and attention? Simply asking someone to be your mentor isn’t enough, and it’s never how the best mentorships start. Do work that your mentor values and needs, and do it well. Giving your best effort and working hard to earn their respect is the best way to endear yourself to a potential mentor and lay the groundwork for a rewarding relationship. Ultimately, they are staking their reputation on mentoring you, because at some point in the relationship, they will be asked to sponsor you. Before you reach anything close to that point, your mentor needs to be well assured that you will represent them well.

Check your ego. Bringing your ego into mentorship is a guaranteed failure. Growth is wrought with challenges and failures. If your ego is engaged, you’re sure to be defeated by the bumps and valleys on your journey. If, however, you’re able to check your ego and approach mentorship with humility, from a context of learning, everything becomes an opportunity for development, rather than scarcity viewed through scarcity lenses like failure or setback. A primary function of your mentor will be to offer criticism and feedback, especially during the most critical and challenging times. To receive their feedback properly and apply it to your life and work in the most positive ways, your ego needs to be fully disengaged.

Mentorship has resulted in some of the most meaningful and impactful relationships in my life. I speak from experience when I say it’s a truly rewarding endeavor, but only with the right approach. Now that we’ve discussed the best of both roles—mentor and mentee—I’d love to dive into a concept I read about recently, the Reverse Mentor. In the meantime, check out some of the mentors who shaped my life and career: https://www.coreykupfer.com/resources/

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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Authentic Business Relationships Authentic Conversations About Difference Authentic Leadership

Mentorship: Being a Great Mentor

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Business team during a brainstorming in a meeting

A mentor is more than just a font of wisdom.

My first and greatest mentor was my father. His wisdom is something I carry with me always. “Make yourself as indispensable as possible to your boss, but remember nobody is indispensable,” is career advice he gave me that I will never forget. “Every morning when I think about life with your mother or without your mother, I choose your mother,” he told me of marriage. And on his deathbed, he said to me, “I traveled to 25 countries, have a great family and have done the things I wanted to do. I have no regrets. When you are in my situation, you don’t want to have any regrets,” which was when I realized that he’d won the game of life, and when I learned for certain how I wanted to live.

I’m grateful for the time I got to spend with my father and the relationship he and I shared. I know not all sons are so fortunate. The mentorship I received from my father taught me not just about life, but also about the value of having a mentor.

Being on both sides of mentorship has shaped my career, so I know that these kinds of relationships are very different than one might have with a father, friend, or colleague. There’s a different kind of work involved. Over the years, I’ve learned a few things about what makes a good mentor, both from mentors of my own and being one myself in a professional setting. If you’re interested in mentorship, here’s what I think makes a good mentor:

Setting boundaries is key. In a professional context, maintaining roles and status in the mentor-mentee relationship matters. It might seem superficial, but for both of you to get the most out of the relationship it’s important that you set boundaries. Your mentee needs to know that time is valuable, so they shouldn’t waste it with trivial concerns or problems they should be able to solve on their own. Furthermore, there should be clarity about what the two of you discuss. Setting these sorts of boundaries is necessary to remove noise from the relationship and ensure that things are always pointed in the right direction.

Don’t be afraid to challenge your mentee.

The relationship is ultimately about growth. If you’re tracking their progress and feel like they are ready, challenge your mentee. Not arbitrarily. Give them meaningful work that stretches what they think their abilities are. We learn the most when someone sees greatness in ourselves that we don’t yet see.. As a mentor, you can both push your mentee outside their comfort zone but also be there when the assignment is over to teach and offer feedback.

Seek understanding. For mentorship to really work, it has to be a two-way street. Many people approach mentorship with the idea that they are just a conduit for wisdom and lived experience. They pontificate, thinking that imparting their knowledge is the whole of the mentor’s duty. What their all-fortunate mentee does with the information is irrelevant. That’s never going to be true. A mentor needs to be sincerely interested in the career and development of their mentee. Seeking understanding is a strong way to display this commitment. When your mentee approaches you with a problem, don’t just launch into canned solutions you think they need to hear. Instead, seek understanding of what it is they’re going through and why they are experiencing this problem. There is almost always an underlying circumstance that can more deeply inform the advice you offer.

Be an advocate for them. Let’s be clear about the endgame of a professional mentorship: to help your mentee develop and advance in their career. That’s why getting it right in your role as mentor is so important. Eventually, there will come a time when you are asked to advocate for them. If your tutelage was well received, there should be no hesitation—you should be thrilled to be a zealous advocate for your mentee, whether they are seeking a promotion, pursuing a new role at a different firm or company or pitching that big client or investor as an entrepreneur. Your endorsement will matter more than nearly anyone else’s. Be willing to use your reputation and influence on their behalf if they deserve it.

Mentorship has resulted in some of the most meaningful and impactful relationships in my life. I speak from experience when I say it’s a truly rewarding endeavor, but only with the right approach. This week we covered how to be the best mentor. Next week’s blog will discuss how mentees can best approach mentorship. In the meantime, check out some of the mentors who shaped my life and career: https://www.coreykupfer.com/resources/

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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Authentic Conversations About Difference

How Law Firms Can Embrace Diversity: Part Three

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Business team during a brainstorming in a meeting

“No problem can withstand the assault of sustained thinking.”

-Voltaire

In the last two posts, we discussed the problems that allow the lack of diversity in law firms to persist and why we should care. It’s clear that they are largely entrenched systemic issues. To many, that might be enough to shrug and concede, thinking that the problems are too big and too immovable.

You know what I love about problems, though? No matter how complex and challenging, there is always a solution if you make the effort to find it. That’s what I want to do in this post. Find and discuss the solutions that I think more law firms need to not just think about, but enact.

First, it’s important we acknowledge that no single firm can bring about change at an industry scale. If that’s how we approach diversity initiatives, failure is inevitable. At that point, the problem is too big. But, if we focus on our own firms, and make changes to the way we do things under our own roof, that can be powerful. The more firms that make similar changes, the more the industry will change. So, start small.

Second thing before I get to specific solutions is, you don’t have to make every single change all at once and immediately. Yes, I think the need for changes in this area, in my industry, are urgent, but if we don’t do it right all of our efforts will be counter-productive. Focus on the solutions that you think can really work for your firm, plan the roll out of different initiatives well, and commit to seeing them through. Rushing this process helps no one as does approaching this as a sprint, quick fix or solely for compliance or PR reasons. This requires a long-term sustained commitment.

Now, what can your firm do to embrace diversity?

Understand that it all starts with culture. This is probably the biggest challenge, right? There’s a way you do things, those processes work, and you’ve enjoyed success doing things a certain way. In some ways (at least in the short-term, opening up to diversity can seem like a solution in need of a problem. I understand that mindset. I own my own firm, so I know exactly what’s at stake. Even so, there’s always room for growth and change in the short-run and over even the medium term you will lose ground if you don’t keep up with what the market increasingly demands. While adding diversity and inclusion to your firm’s core values is great, it is not close to enough. Doing so only sends a powerful message to current associates and partners, as well as candidates and clients if your firm lives those values and they permeate all that you do. It also lays the foundation for a culture that is open, respectful, and inclusive.

Prioritize diversity when hiring. The kneejerk reaction to this suggestion for many is to recoil at the notion of preferential treatment. Yet, that’s already what’s going on across the industry, except minorities are rarely on the receiving end of that preference. Many just don’t realize this because of in-group, often unconscious bias. There are studies showing that the same exact resume with a black sounding name gets significantly fewer interview opportunities than one with a white-sounding name. You may not even realize that you are discriminating – that is the nature of unconscious bias. Consciously making diversity a priority when hiring is a first step towards equity, and challenges the rigid objectivity so many claim to lionize above all else when reviewing candidates, which rigidity does not account for unconscious bias.

Prioritize inclusion when onboarding (and always). What’s more, you can’t treat new hires like quotas. They need to be onboarded with the idea that they will be valued, long-term members of your team. Creating support programs, providing regular feedback, and trusting new hires with meaningful work are all things we can do to develop a sustained culture of diversity and inclusion that benefits all. And more importantly, a culture of diversity that doesn’t stop at HR.

Make time for authentic conversations about differences. This is a place many companies are unwilling to go, but it is crucial – true diversity and inclusion will not be achieved without it. Diversity and inclusion cannot be a performative salve for the close-minded. That only perpetuates feelings of division and otherness. Rather, view this as an exercise about sharing the lived experiences and perspectives of all team members. If you make authentic conversations about differences a part of your best practices, not only will diversity feel natural, but a lack of diversity would be noticeable and uncomfortable. If you need a framework to support authentic conversations about difference, at Authentic Enterprises we have some great materials available for free download that can help you personally to start having the right conversations immediately: http://www.authenticconversationsaboutrace.com/. As a leader, use those materials to deepen your understanding and experience and so that you can model what you want your team to do. Those free materials are for individual use only, though. If you would like to train your team using Authentic Conversation About Difference, contact us. We can help.

If you’re able to implement some of these changes to your firm, I’m confident that you’ll notice the positive impact. The hardest part is always getting started, but we now understand the fundamental problem, the mechanisms that entrench the problem, and most importantly, we’ve identified solutions. If you have read this three-part blog series, it seems to me like you’ve already started. Now it’s time to take bold action!

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Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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How Law Firms Can Embrace Diversity: Part Two

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Business team during a brainstorming in a meeting

How Law Firms Can Embrace Diversity: Part Two

And Why They Need To

In our ongoing discussion about diversity in law, we’ve covered the present reality and the systemic forces that keep diversity numbers low at law firms. In this piece, I will discuss the benefits to your company of committing to diversity. In our last installment, next week, we will identify some valuable approaches and solutions to get you started on making critical changes at your firm.

It’s valuable to start this discussion by asking: why should your firm make diversity a priority? To me, it’s an ethical imperative (and an increasingly crucial road to more business success). It’s something that gets beyond the industry. It’s our duty to society. If we’re not striving to make the world a better place, what are we really doing?

I believe in giving people the benefit of the doubt, and if you’ve been reading along, my guess is you care deeply about this topic, like myself. Furthermore, I believe most of us understand the problem beyond the surface level and have a natural inclination toward the greater good. In a vacuum, I don’t doubt that we’d all make the right decision and our industry would be perfectly equitable.

I’m also an entrepreneur and understand that any major changes need to make business sense. That’s not cynical either. It’s reality, and a balance we have to strike daily. What good does a diversity program do if the business doesn’t sustain?

That’s a bit of a straw man, but we’re always guarding against an uncertain future, so let me make the business case about why your firm needs to embrace diversity.

Inclusivity is good for all. It creates a culture of openness that allows all people to be their true selves at work. What a huge step into making authenticity a central part of your business and one that has truly transformative potential. When your people are comfortable to be themselves, it will show in their work, it will show in better outcomes, it will show in success. What’s more, inclusivity sends a powerful message to clients about your company and your values, making your organization more attractive to a wider network of businesses.

Cultivating different backgrounds, perspectives, and experiences adds value. When you have a team full of unique viewpoints and opinions, it can improve problem solving and conflict resolution, hone your messaging internally and market-facing, spur creativity, and drive innovation. In today’s world, if you are pushing forward with a homogeny of perspectives and opinions, your firm is likely doomed. Our economy is global now, and increasingly, so is our culture. Your team needs to be reflective of this reality, not just for the sake of diversity, but to ensure success well into the future.

It allows you to recruit better talent. Diversity is rightfully becoming a sincere societal value, especially with millennials. If your company puts diversity at the core of its culture and recruiting policy, you’re sure to have an easier time recruiting top, young talent. The present reality is that company culture and values matter more to today’s workforce than in any previous generation. If you want your company at the forefront, embrace diversity. Internally, strong diversity practice can open the eyes of your recruiting team. Oftentimes, we get so bogged down in our ways that we don’t know what we don’t know. We think we’re casting a wide net when we’re fishing in a tide pool. Diversity breaks down the systemic barriers that we didn’t realize were holding our firm back, and limiting eminently qualified candidates.

There’s a lot of great literature out there on strategies for improving your diversity policies and making it a priority. For your efforts to succeed, it not only needs to be sincere, but you’ll need an implementation plan that works for your business. If handled right, it could be a great benefit to your organization, and society. This is a topic that inspires me daily, and I’m looking forward to continuing our discussion in next week’s final installment. For further research on fostering diversity, check out the free downloadable materials available from Authentic Enterprises: http://www.authenticconversationsaboutrace.com/

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Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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Authentic Conversations About Difference

Part One: How Law Firms Can Embrace Diversity

During-Brainstorming-24
Business team during a brainstorming in a meeting

And Why They Need To

“No problem can be solved from the same level of consciousness that created it.”
— Albert Einstein

We’ve identified that there is a diversity problem in law firms. It’s been a conversation for a long time, and many firms—with the best intentions—have tried to make diversity a serious aspect of their culture and business plan. However, the numbers are still lagging seriously behind other industries.

I have some ideas for how we can improve as an industry, but before we go into solutions, I think it’s important to discuss some of the things that are keeping law firms across the country from fully embracing diversity.

Unconscious Bias

When we’re surrounded by our in-group, we inevitably perceive those like us more favorably. For the most part it’s an evolutionary remnant—a survival instinct for when venturing outside our tribe could mean death. The stakes aren’t quite so high nowadays. Instead, women and minorities get unintentionally left on the periphery of informal networks that build out a firm. Furthermore, in a profession that aims to be meritocratic, white male partners might favor the work of white male associates without intending to, even if you control for quality. After a while, those instances add up, and when it’s time to give promotions, guess who’s getting picked?

Fear of Change

A big reason law firms are lagging behind is a cultural issue. Corporations are more responsive to diversity initiatives not just because they can offer positions that capture a wider range of talents, but also because the cultures of larger corporations are often more malleable. At large law firms, conformity is key to efficiency. Consequently, leaders fear that diversity can lead to instability. The hours and work are supremely demanding. There is the assumption that people all the way up the ladder have all done their time, put in the hours, and will continue doing so as needed. Their fear of change stems from an unwillingness to compromise on any aspect of the status quo. Unfortunately, this fear is inauthentic, based on the snowball fallacy that if exceptions are ever made for any one person or group, where does it end? It overlooks the exceptions given every day.

Nepotism

Sometimes, it really is about who you know. On average, white lawyers have an easier time switching law firms and are more likely to transfer with a friend or colleague. African American lawyers on the other hand have a more difficult time changing firms and are more likely to do so on their own. This trend perpetuates the naturally occurring selection systems and ad hoc filters that help people advance their careers. As these networks grow, the results become exponential. Partners are more likely to hire friends or people that trusted colleagues have vouched for. When women and minorities are underrepresented, so are their opinions and those for whom they would advocate. This is part of how lack of diversity becomes self-perpetuating.

Idealism

It seems counter-intuitive. Diversity is the idealistic notion we’re discussing, but that’s not how many lawyers think. Their idealism about the law actually obscures their perception of diversity. Lady Justice is blindfolded for a reason. Race or gender simply aren’t relevant factors for the practice. It sounds great. We’ve moved past white law and black law and women’s laws and men’s laws. The simple fact that those distinctions in the law ever existed at all dictates the necessity for diverse voices and experiences in firms of all sizes. In a perfect society, the law would be an objective concept, but the truth is that—even today—the law affects certain people and groups differently than others.

In the next entry, we’re going to unpack how law firms can overcome these entrenched behaviors and discuss some of the solutions I think would be most impactful for the future of diversity in the industry.

Diversity and authenticity are inextricable to me. If you’re living an authentic life and have accessed your inner truth, embracing diversity isn’t a choice so much as a by-product of realizing that we’re all part of one human family. The differences we perceive are conceptions of fear and rooted in attitudes of scarcity. Overcoming our biases is not only crucial to living a full life, but also to Authentic Negotiating success. Are you ready to transform your life and business? Download free materials, from the Authentic Conversations About Race project, that will get you started on fostering constructive dialogue around diversity.

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Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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Authentic Conversations About Difference

Introduction: How Law Firms Can Embrace Diversity

During-Brainstorming-25
Business team during a brainstorming in a meeting

And Why They Need To

“If we cannot now end our differences, at least we can help make the world safe for diversity.”
— John F. Kennedy

Law is a hyper-specialized profession. In an age where information brokerage is no longer the exclusive purview of the experts, law still retains its authority as a calling.

That also means law firms—in most cases—feel justified in hiring and building out their teams based on rigid meritocracy. Considering what’s at stake in many cases, few could blame them for sticking to such a system.

Unfortunately, they also use it to rationalize a lack of diversity, only paying lip service to it in mission statements and web copy. The reality is that diverse perspectives and experiences would make their firm stronger.

Statistics from the National Association for Law Placement (NALP) indicate a need for robust and aggressive diversity initiatives across the industry. Despite graduation rates among men and women being a near 50/50 split, the representation of female associates as of 2015 was 44.68 percent, the lowest level since 2006. The higher up the ladder we move, the more skewed the numbers get. Only 21.6 percent of women are partners at major law firms, and just 17.4 percent are equity partners.

Though improved of late, the statistics among minorities are even more discouraging. Per the NALP, even though minorities represented 27 percent of the graduating class in 2014, only 13.97 percent went onto become lawyers at large firms. What’s more, minorities were less likely to be hired full-time than non-minorities, and African Americans were less likely to enter into private practice than any other minority group. Only 22 percent of minorities become associates at large firms, while just 7.52 percent advance to become partners. Most tellingly, only 2.5 percent of partners at larger firms were minority women (infographic: minority statistics; infographic: women statistics).

Striking, right? Surely, there are extenuating circumstances that can explain some of the disparity, but not close to all if it. Additionally, I’m not putting other law firms on trial here for conscious discrimination. I don’t believe that there’s been any malicious intent for the far majority. That doesn’t mean we shouldn’t be self-critical and strive to improve as unconscious bias, institutional racism and lack of commitment to effective action run rampant. I’m constantly seeking feedback and making efforts to improve myself; it shouldn’t be a radical notion to expect the same of my industry.

My personal commitment to diversity reached an even deeper level after spending time in villages in Ghana, Uganda, and India in the late 90s and early 2000s. The perspectives of the people from these places astounded me. They taught me so much. These were people with so little but who had so much joy, and sense of connection. From then on, I redefined myself as a world citizen connected to all of humanity. It’s why I connect to the quote above. Our differences will never end, but we can always seek understanding. Creating safe spaces for diversity should be a priority for every profession, especially the legal industry.

Many firms will make much of their diversity policy, but ultimately it requires urgent action. As an industry there needs to be an ethic of “practice what you preach.” At Kupfer & Associates, we’ve made diversity a priority and it’s proven invaluable to our firm and business. I’ve learned so much from my team over the years, and our diversity has helped us approach deals with fresh perspectives and fearless creativity.

Diversity and authenticity are inextricable to me. If you’re living an authentic life and have accessed your inner truth, embracing diversity isn’t a choice so much as a by-product of realizing that we’re all part of one human family. The differences we perceive are conceptions of fear and rooted in attitudes of scarcity. Overcoming our biases is not only crucial to living a full life, but also to Authentic Negotiating success. Are you ready to transform your life and business? Download free materials, from the Authentic Conversations About Race project, that will get you started on fostering constructive dialogue around diversity.

—

Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!

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Authentic Conversations About Difference Authentic Negotiating

How to Negotiate Across Cultures

During-Brainstorming-30
Business team during a brainstorming in a meeting

Cultural barriers shouldn’t cause negotiations to stall out.
Karen was assigned to a team that had to negotiate a sizable deal with a Japanese company. As a young associate, she was eager to help her firm, achieve their objectives, and hopefully sustain a lasting relationship with an international partner.

She had done her preparation and then some. Karen knew the ins and outs of this company, knew the decision makers, had a good grasp of what the Japanese were trying to achieve, and how the two parties could come together on a mutually beneficial agreement.

When the Japanese arrived, Karen was feeling confident and ready to negotiate. Pleasantries were exchanged, and one of the important members of the Japanese team handed Karen his business card.

She glanced at it briefly, acknowledging the exchange, then slid it into her pocket as she’d done hundreds of times before. People were always giving Karen their business cards. She had a pile of them on a neglected end table in her apartment. She expected this card to join them there once she got home.

Karen had made a fatal mistake.
In Japanese culture, the way you accept a person’s business card is a very different ritual. You receive it with both hands and hold it in front of you. You read it. You look at the person and acknowledge that they have given it to you. Then you put it down on the conference table in front of you.

If you don’t follow this protocol, the Japanese consider it an insult. In all of her in-depth preparation, Karen had neglected to research cultural customs, and it was threatening to derail their negotiations before the parties had even sat down.

What can you do to avoid Karen’s snafu and keep cultural differences from stalling your negotiations?

Do Your Research.

There’s a ton of great work on this topic, especially in an increasingly globalized economy. Whichever society you are working with, there are certain touch points that you’ll want to keep in mind. This video from the Harvard Business Review is a good example of an easily digestible summary of how to approach deals with certain cultures.

Hold the Right Context.

For the most part, your context entering these negotiations should be one that seeks understanding. While there are certain cultures that will have a lot of overlap with yours, many others will have significant departures and it’s in the interest of both parties to approach the first meeting with a context of building a relationship rather than hammering out a deal.

Focus on Body Language and Tonality.

This is especially key if there is a language barrier of any kind. When significant cultural differences are in play, words aren’t always the most reliable form of communication. Certain words can imply different meanings depending upon the culture, which can result in crossed wires and botched negotiations. Body language and tone are harder to misinterpret. Fidgeting is a human response with no cultural origin. A stern or anxious tone is identifiable in any language, and it means the same thing in Japan as it would in America.

Be Patient and Open.

Negotiating across cultures can be a real challenge, and if your approach is to make the most expedient deal possible, you’re going to get frustrated. It’s important to avoid jumping to conclusions. I discuss in my book that something like the use of the quivering quill—a manipulative tactic in American negotiating—could be a cultural norm for someone else. In that case, you need to remain connected to your CDE—Clarity, Detachment, and Equilibrium—and not get triggered just because your counterpart is acting naturally. Be patient and remain open to the possibility that the behaviors that are tripping you up aren’t manipulative, just a cultural difference that can be overcome through understanding.

Have an Authentic Conversation About Differences.

If you seem to be hitting wall after wall, drop all pretext and sit down with the other side’s decision maker for an authentic conversation about the differences that are stalling talks. It might be tough at first, but these conversations can be rewarding and help get your deal back on track. I’ve laid out the ideal approach to these kinds of conversations in a previous blog, “Negotiating Our Differences.” Instead of letting these differences inflame frustrations and harm future relationships, an authentic conversation about your differences invites understanding and strengthens this relationship for future deals.

A high cultural IQ is critical for authentic negotiating success. Ignoring culture and forcing your own tactics is an inauthentic approach guaranteed to fail. There’s no easy way to reach understanding, but the authentic negotiator doesn’t let cultural differences threaten their objectives. Instead, they seek cultural information and understanding that can help them achieve those objectives. It’s a lot of external prep and inner-work, but I can tell you it pays off. How close are you to being an authentic negotiator? Take my quiz.

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Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.

If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!