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How should professional services organizations talk about DEI at a time when even the acronym itself has become a lightning rod for controversy?

DEI programs in business and academia have been under the magnifying glass since the Supreme Court struck down race-conscious admissions at Harvard and the University of North Carolina last year. The watershed ruling emboldened DEI critics who equate efforts to increase racial diversity in the workplace with reverse discrimination.

Now the backlash is dominating headlines as corporate leaders backpedal recent commitments and DEI becomes a culture-war football in a contentious U.S. election year. It is a striking reversal of the climate just a few years ago, when George Floyd’s murder and nationwide protests over racial injustice unleashed a flood of diversity-related statements and pledges from corporate America.

This moment presents a two-fold challenge for leaders. It complicates efforts to advance diversity, equity and inclusion at their own organizations—an issue that many legal and professional services firms have struggled with for decades, particularly when it comes to representation among upper management and executive ranks. It also has ramifications for firms’ service offerings and counsel to clients on DEI-related issues, including those tied to ESG, a growing business area for legal, accounting and consulting firms.

In what follows, we’ll discuss how professional services firms can communicate effectively, and authentically, to stakeholders about DEI. Those audiences include current and future talent, as well as clients and potential clients—who may well be wrestling with similar questions themselves.

The current DEI landscape

As companies and law firms scale back DEI initiatives or quietly retool them to avoid mounting legal challenges, it’s worth considering the broader impact of the Supreme Court’s decisions on affirmative action.

From a recruitment perspective, some experts expect it to reduce the pool of diverse talent from law schools and universities, based on what’s happened in California and Michigan after state universities there eliminated affirmative action. The broader pushback could also impact corporate DEI initiatives, such as diversity fellowships for historically underrepresented groups.

While the anti-DEI movement may pose heightened risk, companies and boards should understand how current laws apply to DEI measures at their organizations before deciding to shift course. Retreating from earlier commitments could also have consequences, from impacts on talent recruitment and retention to reputational harm.

Here’s how Nell Haslett-Brousse, director of diversity, equity and inclusion at consulting firm Point B, put it in a LinkedIn post soon after the Supreme Court rejected affirmative action in college admissions last June:

“Values have been and should continue to serve as a company’s north star… In a landscape where performative DEI+J [diversity, equity, inclusion and justice] has already drawn sharp criticism, any company that’s pulling away from its bold statements or goals will be hard-pressed to find near-term benefit, let alone long-term gains from reacting so quickly.”

Understand your DEI motivations

Caution is understandable. But there’s not much to be gained from walking back a previous commitment to DEI—you risk appearing disingenuous, or worse. As my colleague Steve DiMattia has  noted, in moments like these it’s important to “draw on well-defined organizational values—what you stand for, and how you demonstrate and encourage behavior that lives up to it.”

Organizations navigating this increasingly polarized environment must reflect on why they are pursuing their DEI path. Have those drivers or goals changed? How might the more fraught political and legal environment affect your firm’s chosen approach?

After all, many see DEI both as a social issue and a business imperative, and firms have a right to decide for themselves what steps to take to ensure the long-term success of their businesses. It’s important to consider what those efforts signify to critical constituencies, such as clients and current or potential talent.

“Diversity is the most important issue facing the accounting profession because it is essential for its sustainability and success in the global economy,” Anoop Natwar Mehta, immediate past chairman, AICPA & Association of International Certified Professional Accountants, told Accounting Today. “I also believe increasing diversity will also help our pipeline challenges.”

Clients are hungry for DEI counsel, too. Greentarget and Zeughauser Group’s State of DEI Content Report (released six months before the Supreme Court’s rulings on affirmative action) found that executive decision makers want more guidance on DEI from the law, accounting and consulting firms they hire, with 69% of law firm chief marketing officers ranking DEI as the topic that attracts the most attention from clients.

As a result, organizations are unveiling service offerings directly related to DEI counsel. For example, some law firms are launching DEI-focused practice groups to help field the recent flood of queries about racial equity audits and legal challenges.

But it goes deeper. Our research also shows that executive decision makers want their service providers to make progress as well as provide counsel on inclusion and diversity—and in-house counsel rate their law firms’ DEI execution as mediocre, saying there’s more work to be done. That’s something to keep in mind when considering adjustments to DEI programs and communications.

Be transparent about what—and how—you’re doing when it comes to DEI

Diversity, equity and inclusion is a long game. Reactive pivots and retreats can signal a lack of authentic commitment that could do more damage over time, both reputationally and to your DEI goals, than staying the course. Consistency and communication matter.

Think about your audience—especially when it comes to talent. As Bloomberg reported in September: “While most baby-boomers don’t consider a company’s focus on DEI when applying to jobs and accepting offers, almost three-quarters of Gen Z workers want their employer to consider it a priority, according to a new global study by consultancy Ernst & Young LLP.”

Track your efforts and share where you are and what needs improvement. As Point B’s recent research on DEI+J maturity shows, “While companies have invested heavily in top-down initiatives like workforce development and recruitment, many have yet to implement the deeper, structural changes and policies needed to make a lasting impact.” Consider what metrics may be most effective to assess progress—and which ones could expose your firm to risk in the current environment. Tying DEI programs to specific business outcomes may be a safer bet than setting quotas or diversity targets, for example.

For its part, the New York State Bar Association’s Task Force on Advancing Diversity advises private employers—corporations and law firms—to communicate a continued commitment to the organization’s DEI principles, but also to evaluate how employees and external stakeholders perceive those efforts and programs. What’s more, the group recommends keeping a close eye on DEI-related communications and disclosures and ensuring that people making employment decisions understand the key legal principles that govern DEI programs.

But it’s important to note that, as DEI and corporate governance lawyers told Fortune recently, despite the headline-grabbing lawsuits alleging reverse racism, firms are more likely to be sued by employees or job seekers from historically underrepresented groups.  

DEI is here to stay

Despite the well-documented blowback, most organizations remain committed to DEI. According to new research from employment law firm Littler, 57% of the more than 300 C-suite executives surveyed say their companies have expanded diversity-related initiatives over the past year. And while nearly six in 10 (59%) say anti-DEI backlash has increased since the Supreme Court rulings, three-quarters of respondents say the decisions haven’t changed their approach. Of the 6% who did scale back DEI efforts, concerns around general legal liability and costs were the primary factors.

“We’re seeing many employers maintain—or even double down on—their commitment,” said Jeanine Conley Daves, Littler shareholder and member of the firm’s IE&D [inclusion, equity and diversity] Consulting Practice. “Demonstrating that IE&D is part of their core values, many organizations are taking the prudent step of auditing and assessing their current initiatives, rather than eliminating them amid the challenges in today’s political and legal environment.”

The stakes are high, and the challenges are real. If you’re looking to start a smarter DEI-focused conversation in a post-affirmative action world, the team at Greentarget is here to help.

About the Executive Positioning Practice

Exemplifying Greentarget’s commitment to being a trusted advisor to clients, our Executive Positioning team provides C-suite executives (managing partners, CEOs, executive committees, and boards) with insights to anticipate, understand and respond to important global and social developments, analyzing key issues that can impact reputation and compel leaders to communicate.

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Contemporary political rhetoric is rife with false binaries that make it difficult for executive leaders to know when to speak out and what to say. And in 2024, as most of the world’s population participates in elections, this challenge will only continue to grow. 

According to the Financial Times, the outcomes of more than 70 global elections, including those in eight of the top 10 most populous countries and many of the world’s oldest democracies, will play a pivotal role in framing the future of democracy as we know it. The U.S. election is particularly critical due to the position we hold in the world. Given the nature of politics in America — and the heightened tension that accompanies our collective fear around democracy’s decline — we all know just how divisive the coming months are likely to become.

The inflated rhetoric of the U.S. election will surely create moments when leaders are called upon to affirm or reject controversial positions. We know these are difficult situations, as we’ve all seen leaders caught off guard in the recent past. With the repeal of Roe v. Wade and the start of the war in Gaza, many leaders discovered that they risked alienating some segment of their core audience regardless of what they said — or whether they said anything at all.

Mindful of these recent experiences, there is no excuse for being caught off guard again. Stakeholders will demand a clear response and point-of-view from your organization. The time to decide how you will respond to the next social or political controversy is not when it lands on your doorstep. We know that it is coming, whether it’s tomorrow or in six months. The time to prepare is now.

Why Do You Need to Think About the Election Now?

We’ve all seen unprepared leaders lose control of difficult conversations. But if you can’t skillfully and adeptly navigate these pivotal moments as a leader, you risk undermining your own authority and harming your organization’s reputation. To participate skillfully in the conversations that matter most, you can’t afford to be reactive. Foresight, forethought, and careful preparation are key. 

Think back to the summer of 2022 and the conversation around Dobbs vs. Jackson Women’s Health. Despite knowing a landmark decision was coming for over six weeks, many leaders scrambled to figure out how to respond once the news broke. 

One notable exception was Ropes & Gray Chairwoman Julie Jones, who released a powerful, heartfelt and thoughtful statement just moments after the Supreme Court announced its decision. Her readiness to communicate her position set her apart.

Immigration, reproductive rights and the growing conflict in the Mideast are just a few of the issues that will take center stage in 2024. These topics are far too important to ignore — and their complexity deserves your advance consideration. 

Three Steps to Establish Your Firm’s Communication Platform

Navigating difficult communication challenges is not for the faint of heart — and you shouldn’t go it alone. Engaging PR counsel to develop authoritative points of view before it’s time to release a statement is wise and prudent. When you get ahead of the news cycle, you’ll be able to communicate with confidence, knowing your messaging lines up with your firm’s priorities and reinforces your position as an authority worth heeding. 

A good PR partner will know how to guide you in positioning your firm for the executive communications challenges that lie ahead. At a minimum, the positioning process should involve these three steps.

1. Assemble a Representative Selection of Stakeholders 

You need a representative cross-section of stakeholders at the table to ensure your decisions reflect the values and spectrum of diversity of your firm.

The process you follow to frame a response to controversy is just as important as the response itself. After all, it will be impossible for you to please your entire audience no matter what you say. But by demonstrating that you followed a reasoned, logical process — and by communicating about it openly and transparently — you can minimize blowback and prevent the informational leaks that cause reputational harm. 

The Kalven Committee at the University of Chicago

The University of Chicago provides an instructive example of what a collaborative decision-making process can look like — and shines light on the value of thoughtful, open communication.

In 1967, then-University president George W. Beadle convened a multidisciplinary faculty committee to examine the role the University should play in social and political action. The resulting Kalven Committee report includes the following statements:

  • “The university is the home and sponsor of critics; it is not itself the critic. It is…a community of scholars. To perform its mission in the society, a university must sustain an extraordinary environment of freedom of inquiry and maintain an independence from political fashions, passions, and pressures.”
  • “The neutrality of the university as an institution arises then not from a lack of courage nor out of indifference and insensitivity. It arises out of respect for free inquiry and the obligation to cherish a diversity of viewpoints.”
  • “From time-to-time instances will arise in which the society, or segments of it, threaten the very mission of the university and its values of free inquiry. In such a crisis, it becomes the obligation of the university as an institution to oppose such measures and actively to defend its interests and its values.”  

In the span of a few pages, the Kalven Committee articulated the values the University holds dear, argued why maintaining neutrality is the best reflection of those values, and laid out the exceptions that would lead the University to set neutrality aside and take a stand.

Did some University stakeholders disagree with the outcome of the Kalven Committee’s work? Undoubtedly. But the report remains in place today and continues to prove useful in guiding the University’s actions.

2. Align Your Positions With Your Firm’s Values 

What are your firm’s values? What do you stand for? And how do your values connect you to your audience?

It’s unlikely that your firm needs to participate in every conversation or respond to every news headline. Part of communicating with authority is knowing which issues matter most to your audience and focusing your energies there.

As illustrated in the Kalven Committee example, your values and your audience’s needs should guide your communications strategy. Therefore, to decide how and when to speak out on social issues, bring the stakeholders you recruited in Step 1 together to explore questions like: 

  • Who is our audience, and what do they value? Are there factions and opposing viewpoints we need to consider?
  • What issues impact our audience most acutely? Will they expect us to respond when those issues enter the headlines? 
  • Which issues intersect with our mission as an organization? 
  • Given the multiple constituencies we serve, what do we think is the proper role of the firm in the social and political sphere?
  • What are our core values, and how have we expressed those values in the past?
  • What is our history of social and political engagement?

Sometimes the more you think about an issue, the more challenging it will be to articulate a position. That’s normal. Again, outside counsel can help you wrestle with these complexities and arrive at the best course of action for your firm.

3. Make Your Firm’s Positions Public (and Communicate Your “Why”)

Reasonable decisions made with strong rationales will still be met with pushback. That’s especially true if they’re made behind closed doors and without transparency.

That’s why it’s so important to craft a statement about how your firm will respond when public discourse is fraught. Then publish that for your internal and external audiences to see and refer to as needed throughout the election cycle and beyond. This is your foundation – it should be set in stone.

Your goal should be to communicate openly and remove the element of surprise. No matter what position you take, some portions of your audience may not like what you have to say. But removing the uncertainty goes a long way in reducing disappointment and outrage.

Your audience will want to know: 

  • Who you invited into the decision-making process 
  • The questions you asked and the nuances you considered
  • How you arrived at your conclusions 
  • Why you believe your position aligns with your firm’s mission and values
  • What your position means to stakeholders

Don’t forget to ask for feedback. Welcoming the opinions and ideas of your internal and external stakeholders — and responding to their questions and concerns — is an effective way to build trust. Furthermore, inviting your audience to critique and iterate on your ideas is a defining characteristic of true authority.

Meet the 2024 Election Cycle Head-On

Savvy executives scan the horizon for looming threats and proactively put strategies in place to mitigate them. There’s no question that the 2024 election will bring plenty of communication challenges for your firm to overcome.

You might not know exactly what will precipitate the need for your firm to engage in a high-stakes conversation. But with the election news cycle ramping up, you can’t afford to wait for that moment to come. Let’s work together to figure it out now.

About the Executive Positioning Practice

Exemplifying Greentarget’s commitment to being a trusted advisor to clients, our Executive Positioning team provides C-suite executives (managing partners, CEOs, executive committees, and boards) with insights to anticipate, understand and respond to important global and social developments, analyzing key issues that can impact reputation and compel leaders to communicate.

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With anti-ESG rhetoric on the rise — and as greenwashing accusations abound — communicating effectively about environmental, social, and governance issues is more challenging than ever.

One piece of the puzzle is the tension between whether a firm is more responsible to its stakeholders or to its shareholders. On one hand, some argue that firms should balance the interests of a company’s stakeholders — employees, customers, and even the environment — against the need to drive bottom line growth. By contrast, those in favor of shareholder primacy assert that firms should prioritize increasing profits above all else.  

Complicating the issue further, the SEC is preparing to release stricter climate impact disclosure requirements for all publicly traded companies. And of course, ESG-related issues will undoubtedly become points of contention and political posturing in the leadup to the 2024 elections.

Given these very real pressures and the risks they present, how should executive leaders at professional services firms respond?

It may be tempting to stay silent. But if you want to be seen as an authority in your industry, you must be someone who is both trusted and heeded. The best way to earn that status is to contribute to a smarter conversation around the issues that matter most to your audience. Here’s what it takes to do that in regard to ESG.

Be Authentic About Your Firm’s Approach to ESG 

It should go without saying that a key part of communicating effectively is to do so from a place of authenticity. After all, one reason organizations come under fire is that their public statements about ESG don’t match up with their organization’s mission, vision, and values — or with their actions. 

To that end, consider your position on ESG through the lens of who you are as a business and what you’re trying to accomplish. It can be helpful to explore questions like:

  • Are we able to make tangible progress on our ESG commitments — and are we reporting on that progress on a regular basis? Even when the numbers or narrative aren’t as positive as we’d like?
  • How might the ESG work we’re doing strengthen and de-risk our business for the long run? Could our ESG commitments contribute to a healthier bottom line?

How Your Commitment to ESG Can Contribute to Business Success

Let’s take a closer look at that last question in particular — and at the false equivalency that’s inherently present in the “stakeholder vs. shareholder” debate. There’s an assumption that deepening your firm’s commitment to ESG will automatically detract from profitability. But the opposite is often true. In fact, making business decisions through the lens of environmental, social, and governance concerns may play an instrumental role in your company’s long-term success.

My colleague Steve DiMattia puts it this way: “Companies with weak ESG performance often find themselves in situations that can lead to a decline in valuation. If a company is cutting corners on safety protocols, harming the environment, or exploiting its workers, there’s a much greater likelihood it’ll eventually be sued, fined, or otherwise penalized, which can negatively impact its stock price.”

Therefore, making an authentic commitment to the causes that matter most to your firm — and talking about those commitments in terms of how they’ll make your company stronger — is an excellent way to frame your ESG narrative.

Embrace Transparent Communication (Even if You Know You’ll Get Backlash)

In a polarized society like ours, there are good reasons to shy away from topics that are known to spark backlash. And there are certainly people who may decry whatever you have to say about ESG. But if your ESG efforts are truly a core part of driving your business forward, communicating transparently is non-negotiable.

The good news is many clients and stakeholders are increasingly seeking ESG-aligned partners. Since they want smart counsel on ESG issues and are looking for partners who walk the talk, it’s only logical to talk about your ESG offerings and commitments with confidence. 

As socially conscious Gen Zers age and become business leaders in their own right, it will become even more paramount for your firm to establish unique positions of authority about ESG. Demonstrating an authentic and transparent position on the issues that matter most to these emerging stakeholders is an essential part of building trust and winning their future business. 

That doesn’t mean you have to talk about ESG-related issues all the time. Nor do you have to publish an official CSR (corporate social responsibility) report each and every year. Rather, look for naturally recurring opportunities to shine light on the progress you’ve made toward your ESG goals. Let your audience know what’s gone well and what steps you still need to take to get where you want to go. And if you’re a publicly traded company, tell a good and true story about how ESG affects your earnings. 

Still uncertain about whether it’s wise to communicate openly and transparently about your firm’s ESG efforts? Perhaps this will assuage your fears. According to The Financial Times, anti-ESG funds are failing to attract investors and assets. Polls show voters aren’t swayed by attacks on sustainable investing options, either. These articles illustrate that, in many cases, the anti-ESG bark is far worse than its bite.

Tailor Your ESG Messaging to Your Primary Stakeholders

Although you’ll need to be mindful of crafting your ESG communications in ways that align with regulatory demands, it’s also important to remember that regulators are not your primary audience. Your clients and employees are. 

So rather than worry about coming under fire for communicating about ESG, consider who your audience is and what they care about. What do they need to hear from you? What messages will resonate with them? And how can you tell your ESG story in a way that furthers their commitment to and enthusiasm for your firm? 

For example, we recently worked with a law firm to create a communications platform to reach key stakeholders at a time when the firm was under enormous pressure from special interest groups and anti-ESG lawmakers to abandon its ESG endeavors. This platform enabled the firm to amplify the ESG-related counsel it offers clients and provide insight into how it helps firms navigate the very issues and challenges it was also facing.

Reaching your audience with the messages that matter to them should be the primary goal of all your executive communications strategies.

Don’t Be Afraid To Speak Out About the Issues That Matter to Your Firm

It takes courage to speak your firm’s truth in the face of almost certain criticism and backlash. And since anything you do say is subject to fiscal, regulatory, and political scrutiny, it’s absolutely essential to communicate your messages judiciously and effectively. 

Greentarget can help.

Our consultants know how to objectively assess whether or not your ESG efforts are truly an authentic representation of your firm’s values and actions. We can help you craft succinct and precise messages about why you’re doing what you’re doing. And we’d love to work with you to develop unique perspectives and positions of authority that translate into added value for your clients and other priority stakeholders.

So when you’re ready to cut through the ESG-related noise and advance a smarter, more thoughtful narrative, let’s talk.

About the Executive Positioning Practice

Exemplifying Greentarget’s commitment to being a trusted advisor to clients, Greentarget’s Executive Positioning team provides c-suite executives (managing partners, CEOs, executive committees, and boards) with insights to anticipate, understand and respond to important global and social developments, analyzing key issues that can impact reputation and compel leaders to communicate.

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Your high net worth clients can take their assets anywhere at any time. To attract and retain their business, your firm needs to be positioned to win. 

As an executive in this highly competitive and fragmented landscape, you know there are four essential ingredients to attract registered investment advisors (RIAs) and their clients to your platform:

  • Access to investment alternatives that will yield higher returns
  • High-touch client service 
  • Banking services to complement wealth management services
  • Attention from a broader team who can take over the book of business if and when the lead RIA leaves or retires

But since excellent service and performance are mere table stakes, these four elements might not be enough to achieve and maintain a winning standard. Your wealth managers must offer a fifth fundamental ingredient: authority.

Greentarget is a PR firm serving clients in a variety of professional services industries. As such, we regularly talk to wealth managers about the challenges they’re facing. Here’s a look at what we’ve heard from them — and why we think carving out unique positions of authority is key to transforming your industry challenges into growth opportunities.

Challenge 1: Investor Demographics Are Shifting 

Now more than ever, wealth managers play a personal role in their clients’ lives. As people live longer, face the effects of long-term inflation on their assets’ purchasing power, and experience increasingly fragmented family lives, it’s common for RIAs to become confidantes and friends to the clients they serve. 

In light of this, wealth managers also have the opportunity to become trusted authorities on the issues that matter most to their changing clientele. 

What do we mean by the word authority? As we explain in our Manifesto, authority is different from thought leadership. Whereas thought leaders share ideas, authorities know. They draw on their distinct perspective and proven experience — and then deliver clear, succinct insights that are supported by fact, narrative, and cutting-edge data. 

How could your wealth managers become true authorities who are not just heard, but also heeded and implicitly trusted by clients? Here are a few examples of ways your RIAs could make their mark:

  • Put resources in place to support older women and protect them from manipulation and abuse.
  • Help clients of all ages plan for their post-retirement lives, including navigating the nuances of moving to a continuing care retirement community or otherwise making provisions for future long-term care.
  • Offer business succession planning for family-owned businesses to transfer ownership from one generation to another.
  • Create an avenue to serve HENRYs (high earners, not rich yet) and help them grow their wealth from the ground up.

The world is changing fast. Women in particular are an underserved demographic who need advice specific to their circumstances. And if your firm is not taking steps to carve out unique points of view on the issues that matter to your changing clientele, someone else will. 

Challenge 2: Emerging Technologies Like ChatGPT Threaten Disruption

At first glance, the rise of emerging technologies — especially generative AI — presents a formidable challenge to the wealth management industry. But while it’s true that AI-powered tools like ChatGPT can develop a diversified portfolio in seconds, many clients are reluctant to rely solely on AI-generated recommendations. 

This isn’t surprising when you consider the demographic shifts we’ve discussed already. Clients — especially older audiences — don’t want to be served by an algorithm. They want a personalized touch that only humans can provide, particularly when it comes to managing their wealth. So as AI continues to evolve, wealth managers must strike a delicate balance between automation and personalized service to meet sky-high expectations while remaining efficient and competitive.

In addition to ChatGPT, the proliferation of robo advisors and the digitization of assets further complicates the wealth management landscape. Robo advisors offer a low-cost alternative to traditional wealth management, making it more challenging for human advisors to compete. The digitization of assets, on the other hand, introduces complexities related to security, compliance, and data management. Wealth managers must adapt to these digital advancements by incorporating them into their service offerings, all while ensuring that clients’ assets remain safe and that their financial goals are met.

So how can your wealth managers stay ahead of the technology-related curve? Again, they must become authorities on these issues and solidify a unique point of view that differentiates them from all the other voices clamoring for attention. 

A forward-looking, creative POV on emerging technology and its role in asset management can drive interest and goodwill among current and potential clients.

Challenge 3: Economic and Security Concerns Have Investors on High Alert

As you well know, investors continue to be highly concerned about their assets as a result of the extended period of economic uncertainty we’re all experiencing. Even so, this macro-level financial insecurity and banking industry turmoil comes with an opportunity. 

While big-name brands like Wells Fargo and FTX continue to suffer from the far-flung ramifications of serious reputational crises, your financial services firm has the chance to build a highly respected and trusted reputation. 

To build your growing firm’s brand, your wealth managers must demonstrate:

  • Integrity. Can clients trust that your firm will do the right thing at all times?
  • Stability. Especially in the midst of industry consolidation through mergers and acquisitions, do your clients know your firm is stable? 
  • Security. In an age of cybersecurity attacks, phishing schemes, and scams galore, is your asset custody platform strong and impenetrable? 
  • High-touch service. Since big-name wealth management firms struggle to offer proactive, intentional communication, are there ways you can position your firm to stand out by offering ultra-personalized, excellent service?

You may not be able to build the kind of solid, unimpeachable brand reputation JP Morgan enjoys overnight. But with time and intentional, proven PR strategies, you can create a name for your firm that becomes synonymous with integrity and excellence.  

Invest in PR to Position Your Wealth Management Firm for Success 

Trust is the currency on which your firm is built. So when it comes to staying ahead of the competition in an industry like yours, positioning your wealth managers as trusted authorities becomes its own kind of ROI.

But in your fast-moving industry, it can already feel challenging to keep up with the daily demands of managing the assets of high-net-worth clients. Establishing and articulating unique positions of authority via owned media and earned media channels is unlikely to rise to the top of your wealth managers’ priority lists — unless they have expert help. 


That’s where Greentarget comes in. We’ve worked with hundreds of professional services firms to build their brand, hone authoritative positions, and overcome their particular industry challenges. We’d love to help you, too. So let’s talk.

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No matter what business you’re in, everyone’s talking about the promise—and peril—of artificial intelligence.

But as executives weigh the efficiency of AI against cybersecurity and other risks, they must remember one key fact: AI is also a communications challenge.

Meeting that challenge requires balancing the need for transparency and guidance with the agility and flexibility necessary to keep pace with a swiftly evolving technology. This is especially important for leaders at professional services firms, whose reputations can depend on providing authoritative counsel on emerging issues like generative AI—which, unlike traditional AI, uses unsupervised models to create new content and data.

In what follows, we’ll assess the current AI landscape for professional services firms and map out the communications obstacles (and opportunities) those organizations may encounter as the technology advances.

AI in Professional Services: New Opportunities, New Concerns

From legal to consulting and accounting firms, professional services providers are tapping into the power of AI to help speed workflows, improve efficiency, and generate data-driven insights.

Internally, our law firm clients have already been using AI and machine learning for functions like eDiscovery—and some are now testing out generative AI in content creation (e.g., job postings, social media posts, document production). Consultants and accountants are using it for everything from predictive analytics to automation of back-office functions and more. At the same time, these firms are also bringing AI into in client-facing offerings: consulting on legal and operational risks related to the technology, helping organizations adopt AI themselves, and/or deploying it to improve client processes and services.

For professional services organizations, it’s not only an efficiency play—it’s also a business imperative, one that clients are increasingly demanding as they look to lower outside spend and operational costs. As one GC told us, “Law firms should be figuring out how they’re going to use AI tools to help their clients rather than sticking their heads in the sand and saying it would be inappropriate for us to use them.”

It tracks, then, that in a recent survey by our client Womble Bond Dickinson, only 13% of executives (including those from professional services firms) said that they are not investing in AI or are unsure; over half are already making investments or plan to do so in the next year. Asked about key obstacles around the use of AI, respondents cited issues including ethical concerns, a lack of understanding about AI, legal risks, costs, and a lack of qualified personnel.

But these aren’t the only concerns for professional services firms. Some GCs want their outside counsel to use ChatGPT to lower billable costs, while firm leaders are worried about the impact of generative AI on training the next generation of talent. The evolving regulatory environment also poses potential issues, though as a new Littler survey notes, most employers have not changed their AI usage as a result.

Key Executive Positioning Challenges

As demonstrated by the above, professional services firms, like other businesses, are moving forward with AI despite widespread risk and uncertainty.

Communication from the top—be it internal policies and guidance or external stakeholder communications (e.g., with vendors, clients, investors, talent, etc.)—is therefore critical. Yet only 37% of the HR professionals and in-house counsel that Littler surveyed report providing policies or guidance to employees on the proper use of AI tools in the workplace. The majority are also underutilizing AI vendors or outside counsel to assess risk.

Clearly, there’s room for improvement. As we learned during the pandemic, moments of flux demand proactive, transparent, and authentic communication. Better to overcommunicate, even if you don’t have all the answers, than leave stakeholders guessing.

Here are a few questions executive communicators should be asking themselves when it comes to AI:

  • Cyber/privacy risk. Do you have a communications plan in place as part of a broader cyber incident response strategy? How are you communicating to external stakeholders about the steps you’re taking to safeguard their data and privacy with new AI tools? How are you delivering guidance to those using AI tools within your organization?
  • Policies. Do you have a usage policy for generative AI (and/or other AI tools)? Are you effectively communicating that to your employees in a way that balances brevity, support for employees, and risk mitigation? Is there a steady cadence of communications to ensure these policies are implemented?
  • Talent. As AI use stokes fears about job displacement—one Goldman Sachs study says generative AI could automate almost half of legal tasks—how are you communicating to current and prospective employees about how AI tools can help them in their work? How are you ensuring effective interpersonal communication between mentors and mentees as technologies like AI continue to throw up obstacles to in-person connections?
  • Operations. Given the range of different functions AI will impact across your business, are you convening the right group of people to make these communications decisions? Who should be involved, and when? Is there a process in place to communicate quickly and with flexibility?
  • Business goals. Perhaps most importantly, are you proactively articulating the value of AI to your employees, clients, and other stakeholders (e.g., how it might cut down on costs or free up bandwidth for more creative or substantive work)? How does it align with your overarching business objectives?

When it Comes to Communicating About AI, There’s No Time Like the Present

AI will change the nature of professional services work. But how your clients, employees, and other stakeholders react to these changes is up to you. Proactive, transparent, and authentic communications—utilizing clear, consistent, focus-group-tested messaging—can build trust in moments of flux and uncertainty.

Now is the time to get started. Learn more about how Greentarget can help by clicking here.

About the Executive Positioning Practice Exemplifying Greentarget’s commitment to being a trusted advisor to clients, Greentarget’s Executive Positioning team provides c-suite executives (managing partners, CEOs, executive committees, and boards) with insights to anticipate, understand and respond to important global and social developments, analyzing key issues that can impact reputation and compel leaders to communicate.

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If you’re struggling to know how your firm should speak out about current world events, you’re not alone. I’m a leader in the PR and communication field who advises clients on how to communicate about difficult, tense, uncomfortable situations every day. And even I find it challenging to find the exact words to address a situation as terrible and complex as the one that’s unfolding in Israel and Gaza.

One thing is certain. Professional services firms need to know how to communicate effectively and authentically about issues that matter to their employees, clients, and stakeholders. This is important all the time, not just when heartbreaking headlines and images capture our collective attention. 

But here’s the reality that comes into stark relief at times like this. When leadership and communications teams lack diversity of race, religion, gender, sexual orientation, experience, and opinion, it’s incredibly difficult to craft a full picture of any given situation. Without a holistic point of view, you’re more likely to alienate your audience than contribute to a smart, informed conversation.

It’s not enough to wait for sensitive issues to arise to begin — or renew — a sustained commitment to DEI at your firm. Here’s what to bear in mind as you work toward strengthening that commitment.

An Authentic Commitment to DEI Is Good for Business  

There’s plenty of empirical evidence supporting the business case for diversity, equity, and inclusion. For example, McKinsey’s “Diversity Wins: Why Inclusion Matters” report found that:

  • Companies with high levels of gender diversity on their executive teams were 25 percent more likely to experience above-average profitability than peer companies in 2019, up from 21 percent and 15 percent in previous studies.
  • Companies with high levels of ethnic diversity on their executive teams outperformed those with low levels by 36 percent in terms of profitability in 2019, slightly up from 33 percent and 35 percent in previous years. 

Perhaps even more compelling, McKinsey discovered that DEI “laggards” — those in the bottom quartile of diverse representation — are more likely to underperform median industry profitability measures by 40 percent. 

Looking Beyond DEI Metrics

However, as HBR argues, “increasing diversity does not, by itself, increase effectiveness; what matters is how an organization harnesses diversity, and whether it’s willing to reshape its power structure (emphasis mine).

In other words, it’s not enough to merely take action to boost your diversity numbers. Your audience and stakeholders want and need to see an authentic commitment to DEI — one that extends to every aspect of your organization. Case in point: prospective employees (especially members of Gen Z) are looking for evidence that your DEI efforts are genuine. And you’re likely being asked about DEI in RFP processes as well. 

To compete for talent and clientele, you need more than a performative “check-the-box” mentality. To make strides, your firm must make a real and concerted effort to listen to and learn from those with diverse heritages, experiences, and outlooks. 

In the article referenced above, HBR calls this the “learning-and-effectiveness paradigm.” The authors argue that “cultivating a learning orientation toward diversity—one in which people draw on their experiences as members of particular identity groups to reconceive tasks, products, business processes, and organizational norms—enables companies to increase their effectiveness.”

This transformative approach is the best way to position your firm for the future. And it’s an essential part of equipping your organization to communicate effectively about the issues that matter most to your audience.

Staying Silent Calls Your Firm’s Authority Into Question 

When people groups are violently and hatefully targeted, other members of that group need to know their friends, colleagues, and employers stand with them. 

Your firm’s silence can speak louder than words. And that silence is particularly noteworthy if your employees, clients, and community stakeholders look to you as a trusted authority and advisor. If your firm abstains from discourse, your lack of participation in active, important, timely conversations might make your audience wonder what you stand for. 

That was and is true for Muslim Americans who have faced anti-Islamic rhetoric and prejudice post-9/11.

It was and is true for the Black community in the wake of George Floyd’s murder – and so many others before and after his.

It was and is true for the Asian community when acts of violence against Chinese, Korean, and Japanese Americans increased during the pandemic.

It was and is true for members of the LGBTQIA+ community, who face discrimination and vitriol in schools and in the workplace.

And it was and is true for Jewish people, especially in light of the extreme violence and terror recently unleashed by Hamas.

When you participate skillfully in the conversations that matter, you can reinforce your authority and strengthen your firm’s relationship with your audience. 

You’ll greatly increase your chances of getting your messaging right when your leadership and communications teams are made up of people with diverse ethnicities, genders, and points of view. Still, saying something — even if it’s imperfect and requires later clarification (like this internal memo from Progressive CEO Tricia Griffith) — is far better than saying nothing at all.  

Acknowledging Your Personal Biases Opens the Door for Deeper Connection 

Communicating effectively about difficult issues requires humility and openness. After all, we all come to the table with our own personal biases and ways of looking at the world. That’s not inherently a bad thing. But it’s crucial to acknowledge those biases and intentionally set them aside in order to learn from the people around us and develop a broader point of view. 

The situation in Israel and Gaza is a salient example. The terrorist attacks by Hamas and the ensuing images of war impact different individuals in profoundly different ways. Some have religious and cultural ties to Israel, and the violence against their people stirs up reminders of Hitler’s reign of terror leading up to and culminating with the Holocaust. Those with personal connections to Palestine are challenging us to confront the underlying humanitarian crisis in the Gaza Strip while considering the ways in which Israel’s response to Hamas affects countless civilians. 

As leaders, the more information we have about how our employees and clients are experiencing world events, the better positioned we are to build deeper connections with them. We can’t unravel 75+ years of conflict in the region — but we can offer empathy, compassion, and solidarity. And we can provide resources that support our people where they are. 

To do that, we first have to look at these issues through multiple lenses and invite deeper discourse on subjects that are hard to talk about.

Don’t Shy Away From DEI — Now’s the Time To Dig Deeper 

As a leader at a professional services firm, you have a responsibility to participate thoughtfully in the conversations that matter most. The only way to do that effectively is to embrace diversity, equity, and inclusion in a full-hearted way. 

To that end, now is the ideal time to recommit to strengthening your firm’s DEI initiatives. Challenge personal biases. Work toward reshaping your firm’s norms, hiring, and power structures. Commit to continuous learning. 
And remember: If you need guidance about how your firm should communicate about global and social issues, just reach out. We’d love to help.

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