Lauri M. Shanahan’s tremendous success is proof that focusing on the bigger challenges that lie outside of one’s comfort zone can lead to greater achievements. Shanahan was an associate at the San Francisco law firm of Thelen, Reid and Priest with a solid practice in construction and general business litigation when an executive recruiter presented the opportunity of going in-house at Gap Inc., a retail giant that operates about 3,000 stores worldwide.
“I was really worried I was going to be pushing paper,” says Shanahan. Though it took her another three months to get her resume together, once she met with her future boss, Anne Gust, and chairman of the board and founder Don Fisher in 1992, she knew it was a perfect fit. According to Shanahan, what sold her on the idea was that she found the company to be entrepreneurial, energetic, and fun.
Hired initially as a director in the legal department, Shanahan honed her management skills and was given more and more responsibility over the years. In 1998, following her return from her second maternity leave, she was promoted to senior vice president and general counsel, and became corporate secretary in 2000. In 2001, she assumed oversight of the 90-person global compliance group, which monitors Gap Inc.’s manufacturing vendors and works to improve conditions in factories that produce apparel for Gap Inc.
Today, Shanahan is the executive vice president, general counsel and corporate secretary of Gap Inc. In this role, Shanahan is responsible for the legal affairs of the company and for the oversight of legal, corporate social responsibility and global compliance, corporate compliance and governance, government affairs and public policy, and environmental affairs functions.
As the head of a department of almost 200—including 30 lawyers—Shanahan emphasizes that a successful leader must be significantly invested in the development and success of his or her employees. But she also points out the flip side—that each individual needs to control his or her own development. “Employees must find the right company to invest in to achieve success not only in the workplace, but in their lives generally. It may be pretty gradual, but it is really important to find the right balance between home and work,” Shanahan stresses.
On reflection, she found it to be “a surprise and challenge to learn the critical necessity of leadership and management skills.” Shanahan, who holds a juris doctorate from the University of California at Los Angeles and a bachelor of science in finance from the University of Colorado, points out that these skills are not necessarily taught in law school or law firms. Luckily for her, Gap Inc. invests heavily in leadership and management training and development programs.
At Gap Inc., Shanahan has focused her teams on the idea of building and maintaining a world-class department by learning the business and building strong partnerships throughout the company. Part of that responsibility, she conveys, is training leaders to think and act from an enterprise perspective.
When asked what skills make her a good leader, Shanahan indicated, “I’ve worked hard to create a safe and open environment, where diverse perspectives are encouraged and valued. I also think my own sense of balance and perspective helps to set the right tone and give people the confidence that we will overcome our challenges.” Shanahan notes it is important to “articulate a compelling vision, effectively communicate priorities, and really listen to and read people well.” She also emphasizes the view that leadership is not only about people rising to the top of the management ladder, but valuing the strengths of individual contributors and creating a supportive environment for their personal development. In addition, as stated by Shanahan, “Self-assessment is crucial—you need to ask for, as well as give, constant, honest, and open feedback.”
While many might envy her position at the top, Shanahan does suggest some caution. “I say be careful what you wish for. I love my job, but there are a lot of people who wouldn’t. You have to develop yourself, and discover what you are good at and like to do. Take risks and be careful not to define yourself or let someone else define you as simply a lawyer.”
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From the September/October 2005 issue of Diversity & The Bar®