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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 Results show a
Codes of Good Practice (“Amended BEE Codes”) on measureable
enterprises across South Africa. These Amended BEE Codes have dramatic increase
shown up 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 all BEE elements by
challenges. Using centralised recruitment strategies, mentorship
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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