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and vital mentorship and guidance to empower their individual
transformation plans. This second Group Transformation Report for
the years 2016 and 2017 is therefore of even greater relevance than
its predecessor in gauging the success of the Group BEE standards
to inspire transformation across member firms. To fairly evaluate their
impact however, credence must be given to the context within which
law firms in South Africa have been required to transform.

Transformation pressures placed on law firms by government,
corporates and financial institutions, have shown no signs of
abating and suggest a continuing escalation in the expectations for
transformation of the legal industry. Support for this submission can
be found in the demonstrated impact of the Amended BEE Codes of Results show a
Good Practice (“Amended BEE Codes”) on measureable enterprises
across South Africa. These Amended BEE Codes have shown up dramatic increase
many law firms for failing to have their planning and transformation
strategies timeously in place. in transformation

Fortunately for member firms, the impact of the Amended BEE Codes expenditure across
has been well predicted by the Group and member firms have
had time to commence their preparations to meet its presented
challenges. Using centralised recruitment strategies, mentorship all BEE elements by
and development programmes, and soft skills training for young
professionals, member firms have expanded their sourcing and Group firms during
retention of young black professionals to transform the essence of a
law firm – its professional staff. Despite many challenges, particularly 2016 and 2017
for rural firms, results have been satisfactory with Group targets for
appointments being met and exceeded. Admittedly, firms are still
en route with their transformation plans, but results confirm the vital
progress being made by firms towards becoming black-owned law
firms.

Recognising the importance of preferential procurement under
the Amended BEE Codes, firms have also dramatically upped their
expenditure on black suppliers and increased their focus and spend
across all the elements of the BEE scorecard. Our consolidated results
available at the end of this report, confirm a dramatic increase in
transformation expenditure across the Group, driven no doubt by our
Group BEE standards and the Amended BEE Codes.

In closing, I can only express my satisfaction at the impact the Group
has and continues to make towards the transformation of the legal
industry. I have little doubt that in the absence of our standards,
support, initiatives and joint investment, transformation would not
have taken place as aggressively or extensively as is currently the
case. I am proud of each member firm and reconfirm our communal
commitment to continue to set the standard for transformation in the
legal industry.

Douglas Henney
Chair, Phatshoane Henney Group
30 January 2018

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