Chicago Unitedâ€™s 2005 Year in Review Sustaining Diversity: Essential Elements of Leadership
The work of Chicago United is made possible by the support of our members: Abbott Laboratories, Inc
Odell Hicks & Company
Ernst & Young
Federal Reserve Bank of Chicago
Prado & Renteria
Ariel Capital Management, Inc.
Primera Engineers, Ltd.
Azteca Foods, Inc.
Hill, Taylor LLC
Pugh, Jones, Johnson & Quandt, P.C.
Baxter International, Inc.
Hispanic Housing Development Corporation
Ralph G. Moore & Associates
Sanchez Daniels & Hoffman LLP
Blue Cross and Blue Shield of Illinois Bonaparte Corporation BP Burris, Wright, Slaughter & Tom, LLC Cabrera Capital Markets, Inc. Carrington & Carrington, Ltd. Chicago State University Chicago Symphony Orchestra Chicago Tribune Company Chicago Urban League Citibank F.S.B. Commonwealth Edison Company Crain’s Chicago Business Creative Printing Services Cub Foods David Gomez & Associates, Inc. Electronic Knowledge Interchange
Interface Computer Communications, Inc. Jewel-Osco LaSalle Bank Loop Capital Markets, LLC Marshall Field’s Mayer, Brown, Rowe & Maw Mesirow Financial Neal & Leroy, LLC NJW & Associates Northern Trust Company Northwestern Memorial Hospital Northwestern Mutual Financial Network, The Effner Group Nuveen Investments
Rush University Medical Center Sara Lee Corporation Seaway National Bank ShoreBank Corp. Sidley, Austin, Brown & Wood, LLP Smith Whiley & Company Synch Solutions Teamwerks United Airlines, Inc. United Building Maintenance, Inc. University of Chicago Hospitals Urban Retail Properties Co. USG Corporation Washington, Pittman & McKeever, LLC Winston & Strawn
Board of Directors 2005 Executive Committee Raymond McCaskey, Chairman President & CEO Health Care Service Corporation Michael O’Halleran, Vice Chair Chairman & CEO Aon Re Global Albert Grace, Secretary President Loop Capital Markets James Hill, Jr., Treasurer Founder, Managing Partner Hill, Taylor LLC Timothy Schwertfeger, Immediate Past Chair Chairman & CEO Nuveen Investments
Kevin Brookins Regional Director Exelon
Sandra Rand Manager, Supplier Diversity United Airlines
Martin Cabrera CEO Cabrera Capital Investments, Inc.
John W. Rogers, Jr. Chairman & CEO Ariel Capital Management, LLC
Robert Der Partner Ernst & Young
James Skogsbergh President & CEO Advocate Healthcare
Mike Lewis EVP, City Region President Harris
Larry Wahlstrom President
Jean Pogge Senior Vice President ShoreBank
“…to achieve economic growth through racial diversity.”
V I S I O N F R O M T H E C H A I R M A N – R AY M O N D M c C A S K E Y The vision of Chicago United is to be the preeminent organization for energizing and focusing the expertise, commitment and influence of principal corporate and civic executives to achieve economic growth through racial diversity in business leadership and governance.
Raymond McCaskey Chairman, Chicago United President & CEO, Health Care Service Corporation
“...2005 was MESSAGE FROM TH E PRESI DENT – GLORIA CASTI LLO a year of momentum; I am pleased to report that 2005 was an extremely strong year for Chicago United. On the following pages you will ﬁnd highlights of the programs, conferences, papers and a year of advocacy efforts that the members of Chicago United accomplished in 2005. You will sustaining also get a glimpse of what Chicago United is planning for 2006 and beyond. and building I expect you will be very encouraged by what you read. I hope you will be motivated to upon our past take a more active role in helping Chicago United realize our plans and move our unique achievements.” mission and vision forward. I do not use the word ‘unique’ lightly. Chicago United is the only organization of its kind
that focuses solely – without distraction – on the development of multiracial leadership in the business community. While maximizing the potential of our diverse workforce and diverse entrepreneurs is one of the most serious challenges we face as a nation, we cannot minimize how important it is to our city and our region. By working to make Chicago’s business leadership more diverse and, in effect, more successful, we will pave the ground for other cities and the nation to follow our lead. As you will see as you read through this Year In Review, 2005 was a year of momentum; a year of sustaining and building upon our past achievements. We had an aggressive and signiﬁcant agenda and met our objectives for the year. In addition, we have also better prepared our organization for the future. This success is a direct result of the dedicated member companies that make up Chicago United. In order to magnify this success, to further widen the inroads we have made in corporate diversity, we need to also expand our network of member companies and committed individuals. Please enjoy Chicago United’s 2005 Year In Review. And if not currently a member please consider joining us in “Closing the Gap Between Race and Business.”
GLoria Castillo President, Chicago United
Chicago United 2005 Business Leaders of Color. “Each one of us becomes a proof point that people of color can succeed at > the highest levels.”
Renatta McCann Chicago United 2005 Business Leader of Color Award Recipient Chief Executive Ofﬁcer, The Americas, Starcom MediaVest Group
Bi-annually we identify and celebrate Chicago’s Business Leaders of Color. The purpose of this effort is to reveal the rich talent pool of Chicago’s corporate community and to put faces on the minority leaders that help to grow our local economy and increase the prominence of our city and our region in the nation’s eyes.
The hardest part of the task was paring down list for the many impressive and respected minority leaders that exemplify the dual qualities of inclusiveness and vision.
The foundation piece for our 2005 Business Leaders Of Color Awards was a sixty-page publication. This booklet included a powerful message from Ray McCaskey, biographies of each of the forty-ﬁve
2005 Business Leaders of Color Award recipients and, most impressively, an aggregate listing of the
hundreds of association and organizations that directly beneﬁt from these leaders’ personal efforts. If forty-ﬁve individuals have made such a huge impact, imagine the impact the entire minority community is making.
The 2005 Business Leaders of Color publication was sent out to the entire Chicago business community as part of Crain’s Chicago Business on October 31, 2005, and individually mailed to many of the nation’s most prominent politicians, CEOs, diversity leaders and community advocates.
The 2005 Business Leaders of Color reception was hosted by LaSalle Bank on October 4, 2005.
The room overﬂowed with the city’s top corporate and civic leaders – all there to celebrate and better appreciate the importance of minority leaders to our entire business community. Anyone in attendance could see the respect afforded our 2005 Business
Leaders of Color Award recipients, as well as how much richer and more integrated our business community is becoming. The reception was a preview of the presentation of the Business Leaders of Color at the Bridge Awards Dinner on November 2, 2005.
To build on this success, as well as to help develop tomorrow’s leaders of color, Chicago United has forged a collaboration with
the Chicago Public Schools, Scholarship Chicago and a number of our 2005 Business Leaders of Color to create a program called
A Legacy of Leadership…Lessons in Leadership, Life Choices and Learning. This initiative will engage high school students in
lesson plans that explore the underlying tenets of leadership and lead them to develop their own abilities. The most qualified and committed students will earn a 2-year paid summer internship opportunity with the companies represented by our
participating Business Leaders of Color. The scholarships will provide these students with a wonderful opportunity to earn
needed funds for college while benefiting from the guidance of our city’s role models. The Legacy of Leadership program, overall, will help discover and empower future leaders.
The 2nd Annual Changing Color of Leadership Conference and Bridge Awards Dinner. “We have only just begun our journey to mirror what our great > country looks like.”
Jeff Noddle Chairman and CEO, SuperValu Inc. The 2005 Chicago United National Bridge Award Recipient
2005 also marked Chicago United’s 2nd Annual Changing Color of Leadership Conference and Bridge Awards Dinner.
This conference included an array of workshops and networking sessions to explore the
event’s theme, Sustaining Diversity: Essential Elements of Leadership. The Changing Color
of Leadership Conference provided actionable information and insights as well as twoway communications among the participating business executives and organizers. The
conference’s goal is to help develop and foster both corporate and individual leadership strategies to transform diversity goals into diversity realities.
Presented by Ariel Mutual Funds on November 2, 2005, the conference and dinner attracted more than 600 CEOs, business managers and diversity advocates for an engaging, encouraging session, as well as a celebration of our 2005 Business Leaders of Color and our Bridge Award winners.
The Bridge Awards Dinner, the culmination of the 2005 Changing Color of Leadership Conference, was held on the evening of
November 2nd. The Bridge Award honors the accomplishments of the CEO of a publicly-held corporation who has inspired and implemented diversity at the board of directors level.
The winner of the National Bridge Award was Jeffrey Noddle, chairman and chief executive ofﬁcer of SUPERVALU INC. The inaugural Chicago Bridge Award was presented to John W. Rowe, chairman and chief executive ofﬁcer of Exelon Corporation.
We look forward to the 2006 Changing Color of Leadership Conference, and to honoring our 2006 Bridge Awards nominees and recipients.
2005 Bridge Awards Dinner
Allison Chung, President, TeamWerks, Inc. 2005 Conference Opening Session
Jeffrey Noddle, Chairman and CEO SUPERVALU 2005 Bridge Awards Dinner
Chicago United Race and Business Forums.
Michael W. Lewis EVP / President, City Region Harris 2005 Race & Business Forum I
2005 Race & Business Forum I
2005 Race & Business Forum I Panel
The Race and Business Forums are Chicago United’s signature initiative. Designed to promote sustainable diversity in the city’s business leadership, the 2005 Race and Business Forums were a 3-part series focused around the central theme of ‘Chicago’s Multiracial demographics: Shifting from Conﬂict to Collaboration.’
2005’s forums were hosted by Harris Bank on March 2nd, June 16th, and September 22nd and were moderated by National Public Radio Commentator and Chicago Sun-Times Columnist Laura Washington.
The Race and Business Forums present subject experts and practicioners so that our guests beneﬁt from the talents and views of the city’s leading business executives.
The year’s forums addressed issues such as: • Projecting job growth and the disparities within our communities • The changing multiracial demographics and its impact on the hiring and retention practices of major corporations • Confronting and overcoming the challenges of being an MBE • How trends such as importing overseas talent and employee network groups affect employee development Looking forward, our 2006 forums are themed “Chicago: A Global City, A Global Perspective on Diversity.” These forums will focus on the integral role that diversity in business leadership plays in Chicago’s ability to compete in the global marketplace. Again designed
as a 3-part series, to be hosted this year by The Northern Trust, the ﬁrst Race and Business Forum will take place at 7:30 am – 9 am
on March 10. Conﬁrmed panelists for this forum include Paul O’Connor, executive director of World Business Chicago; Saskia Sassen, author of “The Global City” and professor of sociology at University of Chicago; and William Testa, vice president, Federal Reserve Bank of Chicago.
The second and third forums will be on April 7, 2006 and May 4, 2006, respecitvely. We hope all of our members and interested nonmembers will attend one or more of these forums.
Chicago United Employee Network Group Summits The biggest value of our Employee Network Group (ENG) Summits is providing a powerful opportunity for constituents of member companies and non-member companies alike to discuss diversity issues and best practices.
In 2005, there were three ENG Summits, which took place on February 11th, June 10th, and September 15th. The themes and goals for these summits included such critical topics as fostering dialogue among ethnic/racial afﬁnity groups, promoting mentoring and professional development efforts, and fostering positive community relations.
These summits attract up-and-coming, self-selected leaders who share ideas and impart their unique experiences and perspectives. More importantly, our ENG Summits provide a less structured format for Chicago’s present and future leaders to help create a work environment where all points of view are welcome, as well as facilitate the professional development of themselves and others.
For Chicago United, the ENG Summits show that our overall message resonates well outside of our member companies and CEO and Leader Councils.
Celebrating those who lead. Advocating others to follow. February’s Black Enterprise “The 50 Most Powerful Women in Business” issue featured Chicago’s Renetta McCann on its cover. Included in the Black Enterprise list of the nation’s 50 Most Powerful businesswomen were a number of Chicagoans, including three of Chicago United’s 2005 Business Leaders of Color: McCann, Desiree G. Rogers and Paula Sneed. The list also featured one 2003 Business Leader of Color: Mellody Hobson. This shows that Chicago’s female business leaders of color are also among the nation’s leaders. The issue reported, however, that despite the progress women executives have made, recent data ﬁnds that an abysmal 1.1% of black female executives reach corporate ofﬁcer or top-earner status (Source: Catalyst, 2005).
Chicago United research inspires member action. Chicago United’s Professional Services Model (PSM): A business management tool for large corporations to address the problem of limited utilization of minority professional service ﬁrms.
This has been a very strong year for Chicago United’s advocacy efforts, highlighted by our groundbreaking Professional Services CEO Summit and the adoption of our Professional Services Model (PSM) as a pilot program in ﬁfteen member companies.
Based on a document created in 2004, Chicago United created a business management tool to help large corporations address the problem of limited utilization of minority professional services ﬁrms. We then facilitated an executive summit with the goal of developing a list of member companies to adopt this model.
These ﬁrms will benchmark the model’s success ongoing and help us in our efforts to promote our model to the nation’s Fortune 100 companies.
Co-chaired by Tom Patrick, the CEO of Peoples Energy Corporation, and Manny Sanchez, a partner at Sanchez Daniels & Hoffman LLP, the Professional Services Model Initiative (PSMI), will create tangible change in the selection process of professional service ﬁrms in large corporations.
It is important to point out that Chicago is the ﬁrst city with ﬁfteen CEOs who are members of a leading organization committing to an effort such as the PSM. It not only represents a major shift in business practices, but also highlights the respect business leaders have for the Chicago United strategy developed by their peers.
“The top 10 U.S. corporations pension funds total approximately $585 billion. > MBE participation in handling those funds is less than 1%.”
Martin Cabrera President Cabrera Capital Markets, Inc.
Chicago United’s Board Trend Analysis: What Happens to Corporations When Boards are Diverse? “It just makes good business sense for us to be supportive of our > communities.”
Todd Brown Chicago United 2005 Business Leader of Color Award Recipient Vice Chairman ShoreBank Corporation
Chicago United has a history of producing position papers based on academic research. The goal of these papers is to develop actionable tools for corporate diversity efforts, as well as to help us determine Chicago United’s future initiatives.
Produced in 2005, Chicago United’s Board Trend Analysis: What Happens to Corporations When Boards are Diverse? reviewed the
current body of literature. Using eight respected corporate boards of directors as case examples, this document detailed how board governance diversity positively affects ﬁrm performance, increases shareholder value and attracts a larger shareholder base. The study brought immediate national attention to Chicago United and serves as qualitative validation that our efforts to increase the diversity levels of Chicago’s corporate boards will directly improve the value of Chicago’s businesses.
Econometric Model econometric (adj.) – of or relating to the application of mathematics, especially statistics, to economic data In 2005, we also laid the groundwork for our 2006 advocacy. We formed a partnership with the Center for Urban Economic Development (CUED) at the University of Illinois at Chicago and developed an impressive task force chaired by James Tyree, Chairman and CEO, Mesirow Financial to begin creating our Chicago United Econometric Model.
The goal of the Econometric Model is to measure the impact of corporate spending on minority business enterprises in the Chicago area. We plan to measure the multiplier effect of the current level of spend and create an equation to help businesses predict the economic impact of their focused corporate spending, especially within the minority business community.
As with the Professional Services Model, we envision developing an executable program based on the Econometric Model that we can pilot in progressive member companies.
For Chicago United, our research, especially the upcoming Econometric Model, is far more than an academic exercise. It helps us provide tangible value to our member companies and directs where we spend our time and energy moving forward.
Strengthening our infrastructure to better support our goals. “Hearing what other companies are doing to foster greater diversity at all levels.”
The year also marked some signiﬁcant changes to Chicago United’s Board Structure and many new additions to our CEO Council. We believe that the new leaders and leadership structure directly contributed to the phenomenal success reported earlier in this Year In Review document.
Chicago United’s new board structure looks more like a board of directors you would ﬁnd at a successful, streamlined corporation. There is now an executive committee and leaner reporting mechanisms than existed in the past.
“Very diverse audience and senior level executives.” This has resulted in more involvement from the Board and faster approvals of initiatives. We also believe it has provided the leadership with a greater amount of empowerment and impact, spurring increased dedication and overall appreciation of our organization.
The CEO Council participates in CEO Strategy Breakfasts, which have been modiﬁed to become more focused on providing pinpoint
strategies to realize the speciﬁc components of the board’s initiatives. These quarterly breakfasts are open only to members of the CEO Council and have experienced a considerable increase in attendance in recent months.
“The quality of the speakers and presenters.”
Responses to the question What did you like most about the conference? from the e-survey that followed our 2005 Changing Colors of Leadership Conference.
Success requires two-way communications… Response Percent
Do you plan to attend this conference again next year? Yes No
Would you recommend this conference to others? Yes No
Our e-survey tools reveal how well we engaged attendees, and show the likelihood of the success of future events and initiatives.
Chicago United is in demand and in discussion. We know this from the sheer number of outside events at which we are asked to speak and present our papers, ﬁndings, and experiences. We know this from the increased attendance and interaction at our events. We know this from the strength of the submissions we receive for our Business Leaders of Colors.
We also know this from the qualitative e-survey tools we use to assure our events are engaging and meeting the speciﬁc needs of
our constituents. The e-survey tools point out exceedingly high satisfaction levels for the conferences as well as provide input on how to make future events even more engaging and valuable.
To capitalize on this growing enthusiasm and focus, Chicago United is developing its ﬁrst Strategic Plan in more than 5 years. We
have engaged an outside ﬁrm to help us assess our mission, positioning and direction. Our goal is set future initiatives to assure Chicago United remains meaningful to the Chicago landscape and that our efforts provide as much value as possible to our members and the greater communities we and they serve.
…and many hands. All in all, we could not have accomplished so much without the active and dedicated participation of our member companies and their most senior level ofﬁcers.
Chicago United looks forward to the increased commitment of each member company, both in terms of individuals involved and also in terms of attendance at a greater number of events.
We also welcome and strongly encourage business leaders of other eminent companies to consider helping us with our many initiatives.
You can learn more by visiting chicago-united.org, attending one of our open events, or contacting Gloria Castillo, Chicago United’s President, at 312.977.3067 or email@example.com.
Address: 300 East Randolph Street Mail: 11 East Pedway Drive, Chicago, IL 60601-5083
Phone: 312-977-3060 Fax: 312-977-3089 www.chicago-united.org