Page 7 - Transformation Report 2023

Introduction 5

With this fifth Group Transformation Report covering the periods 2022 and 2023, it is important to
remind oneself that 2022 was still in many ways dominated by the long tail of the Covid-pandemic.
2023, as the first post-pandemic year, found the legal profession suffering from a post-Covid
hangover and trying to acclimatise to reduced staffing, remote working, technology changes and
other disruptions that accompanied the pandemic.

This same period saw a rapid escalation in cyber-attacks on law firms as they were unprepared
for a virtual working environment, and in their haste to move online, neglected to harden their
technology environments to outside attack. Such weaknesses left firms vulnerable to exploitation
by opportunistic cybercriminals targeting ‘soft’ targets in the legal profession, and forcing law
firms to rapidly invest in cyber cover and security measures to combat this growing risk and meet
client demands for increased law firm cyber security.

South Africa, in this same window, came under fire from the international community for failing to
meet international standards in the fight against terrorist financing and money-laundering, leading
to South Africa’s greylisting in 2023. The impact of the greylisting reverberated through the legal
profession as firms had to align virtually overnight with new Financial Intelligence Centre controls
and procedures to address the demands of the international community for law firm compliance.
Considering these occurrences against the backdrop of international instability, local political
uncertainty, a looming global economic recession, increased client price sensitivity, the threat
of alternative service providers, and even artificial intelligence, it paints a bleak picture and one
that is focused on survival and not growth. This has also impacted on transformation goals as
appointments, expenditure and even investment in skills and staff development have suffered
across the legal profession.

The PH Group has been no different, with member firms faced with the same realities. However,
the commitment to transformation by member firms has never wavered and despite these trib-
ulations, I believe, my report will confirm the continuing investment and focus on transformation
goals by our member firms.

In this report, I highlight the ongoing escalation in the appointment of black and female candidate
legal practitioners as well as legal practitioners by member firms, an important metric, and one
which I believe will in time contribute to transformation across all professional levels. Appoint-
ments have been supported by the PH Group’s centralised recruitment efforts, Virtual Open
Week, Bursary Programme and Careers Portal; all initiatives intended to position the PH Group
as an attractive option for graduate talent across South Africa. The impact of these initiatives
in the overall recruitment and transformation of member firms, including firms in remote rural
areas, should be apparent from this report with support to such appointments and staff retention
provided by the Group’s professional development training webinars, Knowledge Centre and
extensive electronic legal resources available to young professionals at member firms.

I believe my report makes a strong case that the PH Group, with its structures and initiatives,
embolden member firms to not sit idly by, but to embrace diversity and transformation at their
firms and so continue to set the standard for the transformation of the legal profession.

GROUP