Diversity Journal - Jan/Feb 2005

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Also Featuring ... A NEW SERIES: Front-Runners in Diversity Leadership • Catalyst: Network Success

Volume 7, Number 1 • January / February 2005

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PUBLISHER James R. Rector MANAGING EDITOR Susan Larson CREATIVE DIRECTOR Linda Schellentrager CONTRIBUTING EDITOR Laurie Fumic LETTERS TO THE EDITOR Commentaries or questions should be addressed to: Profiles in Diversity Journal, P.O. Box 45605, Cleveland, OH 44145-0605. All correspondence should include author’s full name, address, e-mail and phone number. DISPLAY ADVERTISING 30095 Persimmon Drive Westlake, OH 44145 Tel: 440.892.0444 FAX: 440.892.0737 profiles@diversityjournal.com SUBSCRIPTIONS U.S. $49.95 one year / $89.95 two years; in Canada, add $10 per year for postage. Other foreign orders add $15 per year. U.S. funds only. Subscriptions can be ordered at: www.diversityjournal.com or call customer service at 800.573.2867 from 8:00 a.m. to 5:00 p.m. EST.

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pointofview From the editor of Profiles in Diversity Journal

This month, Profiles in Diversity Journal (PDJ) is focusing on the diversity leadership and momentum at Kodak, an American icon company with a global presence and an unbroken reputation for values since the days of businessmanphilanthropist George Eastman. Kodak is increasingly moving beyond its image as the ‘box camera people’, into new digital technologies for imaging used in a variety of leisure, medical, business, entertainment and scientific applications. Simultaneously, despite tremendous shifts in its products and customer base, Kodak is dedicating staff and resources to advancing its declared core value: “respect for the dignity of the individual.” A few years ago, Kodak intrepidly submitted to the scrutiny of an external diversity advisory panel and has activated measures to fulfill its recommendations. PDJ commends their willingness to share details about their commitment and initiatives, and extends the invitation and the challenge to other organizations for comparable frankness in disclosure, hoping to invigorate the field with an increased realism and practicality that goes beyond platitudes and theorizing. In an area that can sometimes be awash in best intentions and broad efforts, stirring slogans and stair-step charts, PDJ plans in upcoming issues to inquire a bit more profoundly into the finer details and demonstrations of inclusion: specific training and tracking methods; accountability measures and compensation ties; real-world people examples and hard data. Toward that end, PDJ is herein launching a new series: Front-Runners (see page 19 with Dave Sampson from Marriott). These will feature one-on-one interviews with senior executives and diversity leaders whose organizations have attracted our attention because of their track record and/or their latest best practices. In the spotlight, too, will be organizations that are not part of the standard business world—in sports, media and government—but are also facing diversity and inclusion issues. In addition, however, PDJ wants to more closely portray the individuals behind the diversity leadership roles: what makes these leaders ‘tick’; their management style(s); their career paths and influences—even their favorite music or charity (as Marriott’s Dave Sampson shares here). While some might consider such particulars to be trivial pursuits, these profiles are our way of representing the real diversity in the diversity issue: that there are many approaches to the same goal; that underlying the principles of diversity and inclusion is the uniqueness of the individual within the context of a common humanity. As with Kodak’s kaizens, we feel the best ideas and likelihood for success in diversity and inclusion will derive from hearing from an expansive range of people throughout the diversity and inclusion arena. We hope you find these Front-Runners interesting, instructive, even entertaining and inspiring, as we do.

Susan Larson Susan Larson

ISSN 1537-2102

Managing Editor Profiles in Diversity Journal

January/February 2005


Volume 7 • Number 1 January / February 2005



CEO Dan Carp and the Kodak Image of Diversity Values-driven behaviors have been part of the fabric of Kodak since the company was founded by George Eastman. Today’s Kodak Values codify how Kodak people act toward each other, customers, shareholders and all Kodak publics — first among them being “Respect for the dignity of the individual.” PDJ profiles CEO Dan Carp and VP Essie Calhoun, taking a closer look at Kodak’s developing image… Journey of Winning and Inclusiveness.


Staying the Course at Marriott A Close-up Profile of Dave M. Sampson – Senior Vice President, Diversity Initiatives – Marriott International, Inc. The first to start a diversity program, Marriott has consistently been leading the way in the hospitality industry, accumulating awards along the way, including ranking as one of Fortune’s “Best Companies.”


Sodexho’s Building Blocks for Success Integration

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Compliance Training

Awareness Building

Skills Building

Profiles in Diversity Journal January/February 2005

Diversity and inclusion comprise one of Sodexho’s six strategic imperatives for sustained business growth, both domestically and internationally. Sodexho’s Office of Diversity is leading a major effort for transforming the company into a learning organization that engages employees at all levels.

Human Equity Dividends: A Case Study


The South African Division of the world’s largest soft drink company faced special language, cultural, and racial challenges when it launched a 5-year transformational process; the goal was to build and sustain an equitable and inclusive workplace that would realize specific, measurable business dividends. This case study describes the framework, techniques and tools used; the milestones achieved; and why this experience stands out as a best practices process.

What You Do Not Know Can Hurt You: Anti-Discrimination Laws in a Global Workplace


Expansion into a globalized economy—with deployment of American workers overseas and inter-nationalization of corporate cultures—presents organizations with opportunities for growth and profits. Attorney Sandra Durant explores some legal nuances of rights and responsibilities embodied in American antidiscrimination statutes and foreign labor laws.

50 What Makes a Network Successful? by Catalyst Employee networks are an increasingly popular—and effective— vehicle for supporting greater diversity efforts in organizations and for developing a broader talent pool. Catalyst examines the range of features and benefits that make networks useful and offers guidelines for establishing a successful network.


Profiles in Diversity Journal January/February 2005








With this issue, Profiles in Diversity Journal (PDJ), the longest running magazine for business professionals on best practices and successful initiatives for diversity and inclusion, launches a new series: Front-Runners. [See page 19: Marriott’s Dave Sampson.] These feature one-on-one interviews with senior executives and diversity leaders whose organizations have attracted our attention because of their track record and/or their latest best practices. The goal of our Front-Runner profiles is to represent complex people, not merely titles or resumes; to portray the range of distinctive people concerned with diversity and inclusion as well as their singular methods for achieving success personally and on behalf of their organizations. Our in-depth interviews ask for candid answers and specific information about corporate initiatives, leadership modeling, and some personal details. Personal-profile questions endeavor to characterize the personality without being overly personal. There is also the opportunity to offer ‘mentoring’ notes—brief commentaries of advice to others facing similar challenges. These profiles will reach a global audience of 1,250,000 executives and managers (as well as employees) in Fortune 1000 companies across a broad spectrum of industries; leaders of educational institutions; and ranking officials in government, nonprofit and military organizations. PDJ invites nominations of leaders in diversity and inclusion for consideration for future Front-Runners profiles. Please contact me or the Profiles in Diversity Journal editorial office with your questions, comments or nomination. Jim Rector Publisher / Profiles in Diversity Journal profiles@diversityjournal.com editorial e-mail: edit@diversityjournal.com

Profiles in Diversity Journal

January/February 2005


Daniel A. Carp Chairman and Chief Executive Officer, Eastman Kodak Company


Eastman Kodak Company

A Journey of Winning and Inclusiveness at Kodak W

ith worldwide sales of $13.5 billion in 2004, Kodak is committed to a growth strategy focused increasingly on ‘infoimaging’: the use of technology to combine images and information for its enlarging base of products and customers. Values-driven behaviors have been part of the fabric of Kodak since 1881 when George Eastman and friend Henry A. Strong formed a partnership. In 1994, then-CEO George Fisher introduced five corporate values that codify how Kodak people act toward each other, customers, shareholders and all Kodak publics: Current Chairman and CEO Dan Carp added a six value shortly after becoming Kodak’s chief executive: 1) Respect for the dignity of the individual 2) Integrity 3) Trust 4) Credibility 5) Continuous improvement and personal renewal 6) Recognition and celebration. In keeping with the Kodak Values, the stated mission of global diversity at Kodak is to “integrate diversity and inclusion in all aspects of the business in ways that fully engage the energies of Kodak’s employees; meet competitive challenges in the marketplace; and maximize shareholder value.” PDJ here talks with CEO Dan Carp and Chief Diversity Officer Essie Calhoun, taking a closer look at Kodak’s developing image…

Dan Carp gives a Picture of the Diversity Practice at Kodak What does diversity mean at Kodak? First let me say that diversity and inclusion is a journey. It is not a project. What it can’t be is a separate entity. It’s not—“okay, let’s work on making the world’s best digital camera (as I think we have) or the best commercial printing, and then on Friday we’ll work on diversity.” It has to be a foundation that cuts across everything, what we call a Winning and Inclusive Culture. Therefore, there’s hardly a function or learning event that diversity cannot be part of. I think, if your vision is across a wide front of activity to ensure a winning and inclusive, diverse culture, that there is no rifle-shot technique. You’ve got to start somewhere; but the organization has to be a place where people bump into efforts on diversity—whether it’s Dan Carp meeting with the networks or sitting in on a kaizen, or whether it’s people reporting back that they know someone was promoted because they led a diverse activity,

Profiles in Diversity Journal

January/February 2005


Daniel A. Carp

Chairman & Chief Executive Officer

or they see more people like themselves in senior or supervisory jobs. If it’s only one aspect, then it looks like, “okay, if we’re going to have diversity, we’re going to have to get into that pipeline.” But if the inclusive culture is broad-based, the whole organization lifts up because they see diversity being pursued everywhere.

Kodak is currently a company reinventing itself. How have you been able to instill a winning and inclusive culture not just in the work environment but also in your customer and your supplier environments? Well, we do look at it in those three categories. With the broad base at Kodak we recognize that it’s both a top-down and a bottomup effort. We hold our senior managers accountable for their results on diversity, whether it’s tracked by numbers or by something we call QFAs, personal Qualitative Factors Assessments. These are one-to-one sessions where we just talk to each other bluntly about how we think each of us is doing on our diversity leadership. And then, of course, we have clearly stated that respect for the dignity of the individual is one of our Kodak Values, that we have a notolerance policy on any kind of discrimination or harassment. We have people throughout the company who are not just intellectual supporters of what we’re doing but passionate supporters of our diversity culture. One group of people called advocates really believes, and they are with us on this, and they then spread out through their organizations to help us stay accountable. There are also eight employee affinity groups or networks,


“Kodak is a believer that diversity generates the best ideas to solve business problems— big business problems or what may seem to be minor business problems.” and I meet with them once a year and our President/COO meets with them once a year at a breakfast, and we attend their education events. So we start off for employee support with aspirations and a commitment at the very core of our Kodak Values, and then reinforce that by putting time and money behind these efforts, whether it’s with advocates or with senior manager evaluations. Our supplier diversity is easier to track in terms of numbers; we set a goal of 10% by 2006 and we’re going to be there this year. We’ve gone to our suppliers and said, “You’re going to have to have diverse activity in your company, and we’re going to buy those percentages, and we’re going to buy from diverse companies.” The one area where I think we still have some work to do is in the consumer space as it relates to marketing. We’ve got an effort now underway to see if we are targeting diverse

Profiles in Diversity Journal January/February 2005

groups in the best way and, as you know, there are companies out there that are really good at that, so we can learn from them. It’s a little easier in our commercial business. The same values roll out toward our customers. If you’re in our Health Imaging division, the way to approach your customer there, in the hospital, no matter what their ethnic background or sexual persuasion, you come in with the Kodak Value stream, so that’s not too hard. We’ve still got to work on the consumer market, which comprises 2/3 now vs. 1/3 commercial; but we’re growing our commercial businesses very fast, and I think by 2006 we’ll be 50/50.

How does the report of the winning culture get around Kodak?

It happens two ways. One is a structural way, with our intranet, where we share our Winning and Inclusive Culture success stories and work to bring more employees into the process. But it’s also embedded in the Kodak Operating System; one of the KOS tools to solve problems, under the umbrella of a winning and inclusive culture, is the kaizen events. Every area of Kodak is participating one way or another in some kaizen event, whether it’s manufacturing, finance, or human resources. Really, now it’s so pervasive across the company that everybody knows about them and they also know that it starts with a winning and inclusive culture.

Can you explain kaizens? [kaizen, from the Japanese expression meaning continuous improvement, or, to take apart and make new ] Kodak is a believer that diversity


Eastman Kodak Company

Kodak CEO Dan Carp shares a moment with Kodak employees and guests at the National Urban League celebration in New York. Carp joined the NUL board of trustees in November 2004. generates the best ideas to solve business problems—big business problems or what may seem to be minor business problems. And we have obvious proof points from the senior management level where a diverse set of people around the topic comes to what we believe is a better answer, down to the factory floor where diverse teams are put together to perform kaizens. It’s about finding a more productive way to get the job done. It can be something that sounds mundane—for example, to shorten the number of miles they walk during the day to get their job done, or changing the way we load products on pallets, and things like that. The way a kaizen works is, a team is brought together to solve a problem— let’s say the way we mix chemicals to put on film, or the way we distribute our digital cameras, or the way we get our digital radiography machines to the customer on the right day at the right time. The kaizen team members are a diverse team that has people from within whatever the function is, but also what we call ‘new eyes’, or people who haven’t worked there. They come together, and they’re given a week to achieve a goal that is enormous, something like cut the delivery time for something in half. They take a week, and on Friday afternoon, the manager who challenged them comes back in and does a debrief to see where they are and approves them (most of the time) or asks for a test. Most times, there are breakthrough ideas that occur at the end of that week. Now, you can imagine that on Monday, it sounds like a fun game; but by Thursday afternoon, the stress is really high on this team. And nobody is looking at who says what, they’re just looking at what everybody says. And that’s another advantage

of the kaizens: that people learn “just get the best ideas around the table and you win.”

It’s got to be very energizing for your employees. It’s very energizing for the managers, too. I tell you, if I want to have a good weekend, I’ll go sit in on some of these at the end of the day on Friday.

Have you had positive results tracked in terms of dollars and cents or do any synergies develop between various departments because of these kaizens and the overall culture being created? We don’t add it up for the whole company; that would be make-work. But every problem that’s being solved has an economic implication on it. What happens is, to really get a big breakthrough on a problem, it’s very unlikely that you can just look at the specific function you’re working on. So these diversely inclusive teams tend to map the process much wider than within single departments. And when that happens, they see that working together with other groups results in 1 plus 1 equals 5; and that’s how the synergies occur.

What initiatives do you think your employees rely on or find most useful? That’s hard to answer because we’ve got, as I said, a broad-based set of applications or tools. The participation in kaizens is a proof point of the value of a winning and inclusive culture. Our Resolution and Support Services mean a lot to the few people who use it (to raise concerns regarding workplace issues and policies). Our networks touch a whole lot of people, but there are also people who aren’t part of the networks who are still with us on the diversity and inclusion initiatives. And finally there are people who are watching senior management, and they think senior management actively involved in this journey is a positive event for them.

You’ve described the process of incorporating diversity throughout Kodak’s operations as a ‘journey’ – what have been the highlights of the trip so far? Now we’ve been recognized by external organizations and we’ve gotten good outside press coverage from publications such as Fortune, The

Profiles in Diversity Journal

January/February 2005


Daniel A. Carp

Chairman & Chief Executive Officer

Marc Morial (left), president of the National Urban League, welcomes Kodak CEO Dan Carp to the NUL board of trustrees.

operations, whether manufacturing or sales or marketing, in about 30 countries around the world. Clearly Nilde is someone who illustrates how we draw on individuals with multicultural experience and insights, and develop talent in our leadership on a global level.

You had an External Diversity Advisory Panel a few years ago; what’s been the outcome of that effort? New York Times, The Washington Post, and others. Most of all, though, I believe if you really have this commitment to diversity, you can look at your people, people you work with, and see if they’re with you or not. And, as I look into the eyes of Kodak’s leaders and people, I can see they’re with us on this. I’m not just a ball dragging the leadership; they’re pushing with me.

Can you talk about creating upward draft in the context of helping people boost their capabilities for rising to higher levels? There are a couple ways that we approach that. There are no rosters or quotas; I want to say that right up front. But part of that whole succession and management development process is identifying and mentoring diverse candidates, and that, frankly, is in keeping with the Board of Directors Resolution, based on the recommendation of our external diversity panel, which said that diversity has to be a consideration when staffing the top 20 positions in the company. Our leaders are really being challenged to identify and develop and mentor high-potential candidates in their own organizations; because the people are there.


For example, one of the current members of our Senior Executive Diversity & Inclusion Council is Nilde Passanesi (General Manager, Global Sites, Global Manufacturing & Logistics, and Kodak Brazil Site Manager). Nilde’s been with Kodak for about two decades. She’s risen through the company, has worked both in Brazil and in Rochester, New York, so she got to see, experience and work in our manufacturing operations here, share her insights, and then take some of what she experienced back to Brazil. Meanwhile, she brings an external, non-U.S. perspective to the whole discourse on diversity and inclusion. Here in the U.S., talk about diversity, to some degree, often focuses on people of color—Asian American, Native American, Hispanics, African American—and gay-lesbian-bisexual transgender matters. In other parts of the world, diversity and inclusion concerns are more gender-oriented issues involving cultural change. Nilde can lend her perspective and insights to our discourse as one of the three rotating executives who serve a twoyear stint on the council and then will be succeeded by other leaders from other parts of Kodak’s world. We have

Profiles in Diversity Journal January/February 2005

Well, we brought in an A-list of people from outside of Kodak who committed for two years, and they met maybe ten times. They had free access not just to the management; they went out on the factory floor and looked at how we were doing on diversity: were we making enough progress; did we have a broad-based acceptance of what we were trying to do. And we got really good marks from the Diversity Advisory Panel, although we’ve got some things to work on; after their report in 2003, the Board enacted a resolution on some of the areas they advised. Our Board’s Governance Committee is responsible now for ensuring that we stay on track on our diversity programs, and we do report to them on a regular cycle about how we’re doing. If I had to characterize our Board, I would say they’re proud and pleased with where we are on our diversity journey; they are not satisfied that we are at anything close to an endpoint. And I think that’s the right attitude.

Can you name a couple of the items that Kodak was tasked to work on? One category was leadership and human capital; there were some


“If you really have this commitment to diversity, you can look at your people and see if they are with you or not. And as I look into the eyes of Kodak’s leaders, I can see that they’re with us on this.” specific line items there. Another was on globalization efforts. Kodak has maybe a little less than half our people in the United States, so this cannot just be a U.S. issue, although the U.S. is pretty much in the lead of this discussion. But if it’s going to be a Kodak culture, then we must get it around the world. It means different things in different parts of the world. But the fundamental of building an inclusive culture where everybody is respected and feels that they can contribute works in every country in the world. And then, preparing for the workforce of tomorrow was a third major category because obviously the population trends and the makeup of the diversity of your workforce today will change. So we’re working not just on what it looks like today, but we’re also bringing in people who will be part of the makeup of the world as we go forward.

You spoke of “looking into the eyes” of management and

seeing the mirroring of the enthusiasm for inclusiveness. Is that included in your interview process when you consider new management coming from the outside? Absolutely. I believe people can get more enthused every day on diversity. I’m not saying everybody has to come in here with the same level of enthusiasm about the benefits to the company of pursuing diversity that I have. But they have to come in here with a commitment to diversity and to continuing on this journey.

Do your executive learning events help to keep management involvement high? We have a couple of ways, including executive learning events. We have a global leadership forum for the top 200 people (usually held in February) and I guarantee you there’s a module in that two-day meeting around the Winning and Inclusive Culture. Recently, our chief operating officer,

Eastman Kodak Company

Antonio Perez, took an afternoon with his direct reports, a few dozen people; and in September 2004, our Chief Diversity Officer, Essie Calhoun, did a training for an executive learning event on diversity for about 60 of our managers in the greater Asia region; and last summer, an executive learning day-and-a-half event involved about 100 managers. I want to make certain you understand it is not a once-a-year thing. These events involve the seniormost people in the company, and we really work on what does diversity mean at Kodak, what do we have to do, where are we successful, where are we not.

As you say, it’s a process and journey, not a static endpoint. Are there any other areas that you personally feel you’d like to push ahead? The broad base of our journey is what I believe in … so my personal push is to make sure that it remains broad based. But I will tell you that I don’t think you can stop diversity right now. Not only from the leadership but from the grassroots. If somebody stood up and said “We’re going to put our diversity journey on the sidetrack for two years,” I think there would be a mass pushback from the workforce. And to me, that’s the most gratifying.

Any messages for other CEOs? No, I long ago learned that I have enough trouble doing my own job without trying to give advice to other CEOs.

Profiles in Diversity Journal


January/February 2005


Essie Calhoun

Vice President, Chief Diversity Officer

Managers in Kodak’s Greater Asia Region took part in a diversity learning event in Shanghai, led by GAR Chairperson Karen Smith-Pilkington (blue shirt, front row) and Chief Diversity Officer Essie L. Calhoun (black suit, front row).


Profiles in Diversity Journal January/February 2005


Eastman Kodak Company

“Pleased but not Satisfied” Meet Essie Calhoun — Leading the Diversity Journey at Kodak How do you explain the business case for Kodak’s commitment to a Winning and Inclusive Culture?


ell, for one thing, we positioned it and it’s embedded in the terminology itself. It’s always important to win in the marketplace, but for us, with this business transformation we’re going through, winning is even more critical. So, when we think about our culture and what we want to be about as a company, we think in terms of winning and inclusion. When you think of a company’s success, the success depends on the people. And the way to maximize the potential of your people is to have people really feel included; when people feel included you get more productivity out of them, you Essie Calhoun get more ideas out of them, you get more teamwork and collaboration, Vice President; Chief Diversity Officer and that leads to your being in a position to win in the marketplace. & Director, Community Affairs, Our business case makes some reasonable assumptions, based on Eastman Kodak Company our knowledge of manufacturing, markets, human resources, and business practices. We found that when we market to multicultural customers, there’s more revenue potential. When we ask employees to commit to a Winning and Inclusive Culture Kodak Global Diversity and at Kodak, producCommunity Affairs Mission: tivity rises. And when we create an environment The Global Diversity strategy is simple: to that values each engage employees, suppliers, shareholders and employee and does not tolerate other constituencies in Kodak’s journey of diverharassment, we sity and inclusion. This reinforces a key Kodak increase retention. Value: Respect for the Dignity of the Individual. This is why diversity and inclusion are a By creating an environment in which respect and business imperatrust thrive, employees can put their creativity to tive at Kodak. Our business case helps work developing new products and services, and us achieve a comincreasing productivity and customer delight. mon understanding among our man-

Profiles in Diversity Journal

January/February 2005


Essie Calhoun

Vice President, Chief Diversity Officer

agers that diversity and inclusion generate a sizeable return on investment.

How does Kodak develop ‘skin in the game’ among its managers globally? One of the keys to developing skin in the game, something that probably sounds cliché, is “it begins at the top.” It’s about leadership, leadership, leadership. And I think that having a Chairman and President who absolutely are in sync and very clear about the fact that diversity and inclusion is a business imperative for us, is a beginning. The other piece is working with your leaders to see how this is of value to their business and making sure that you have mechanisms in place to make sure that they are developing strategy and including in their business plans diversity and inclusion—or as we call it “winning and inclusive culture.” And then, as you well know, what


gets measured gets done. So having some accountability measures in place I think is important: it’s setting that expectation, it’s working with them, it’s bringing them along, it’s being clear about the fact that we understand that this is a journey, and we are committed to the journey.

When you talk about measurement and accountability, are you referring to the Qualitative Factors Assessments? Yes, that’s one of our measures; and of course we have our quantitative measures around representation and around supplier diversity; but having that instrument in place helps us to actually help the leaders. It gives them some clear-cut ideas about behaviors that we’re looking for and areas where we want them to be leading when it comes to diversity and inclusion.

You mentioned in your speech (Sept 2004 to the Greater

Profiles in Diversity Journal January/February 2005

Rochester Diversity Council) that a diversity officer wears many hats—can you elaborate on the role of CDO? I believe that people perform better in any area they have passion around. So as a chief diversity officer you need to have passion around and be an advocate for diversity and inclusion. Another thing that helps lead to success or moving along the journey, is being a partner with your leaders, and I don’t just mean whoever’s in a leadership role. There are many folks inside the organization who, for whatever reason, become leaders around diversity and inclusion. So we must partner with them, having everybody understand that we’re on this journey together and we all must work on this together. Being a counselor—sometimes people just need some advice; or, if they are having a misstep, having somebody to say “You know, that’s not really the behavior that we’re looking for. That’s not a part of our culture here.”


Eastman Kodak Company

Essie leads executive learning events throughout Kodak’s global network.

Being a friend is one of the trickiest parts, I think; not being seen as an adversary, particularly as you’re working with your leaders. Again, it’s important to create that kind of rapport, even though you might be holding somebody accountable. When you create that kind of relationship, they understand you’re still in this with them.

others in the organization. And then of course, being a trainer. At Kodak, we talk about having diverse leaders but also having diversity-competent leaders, who are building their own competencies around leading a very diverse and inclusive organization.

This sounds much like ‘coaching’. That was going to be one of my next ones: serving as a coach: being an ambassador both internally and externally for your company as far as diversity and inclusion are concerned.

Yes. Speaking of training the trainers, we really are looking for our leaders to be leaders. So when you talk about integrating diversity and inclusion into the businesses, you want not just the diversity person or the HR person, but each leader needs to be out front speaking and communicating around diversity and inclusion, or a winning and inclusive culture in our case.

Being a role model—we have to model the behaviors. We’re not perfect as chief diversity officers, but clearly we have to continually check ourselves and make sure that we’re modeling the behavior that we’re trying to influence in others. Another hat that we wear is being a mentor both to individuals who are helping us to lead these efforts and to

A training-the-trainers kind of thing?

Can you name specific ways your company supports upward development toward management positions for employees? Let me give you an example of something at our Kodak parts facility.

We have a leadership academy program there: if an individual in that environment would like to be a leader, they can self-declare that they’re interested in a leadership role. They have an opportunity to then answer a questionnaire, which gives them a chance to jog their thoughts and give them a better feel for what leadership really entails. If they still want to go forward they can go the next step and enroll in a phased leadership training. And if they make it through all of the phases, they join a pool of eligible leaders in that environment, based on people who’ve declared that they’d like to be in a leadership role. This training doesn’t guarantee them a position, but it does give us this pool of individuals who are interested in leadership. That’s one of the things which really opens leadership up to everyone, which means that it opens it up to a wide array of diverse people. And then, of course, we have our own development plan, where we find our high-potential talent and track and look at their development. We do

Profiles in Diversity Journal

January/February 2005


Essie Calhoun

Vice President, Chief Diversity Officer

have an education development process in place for all of our employees; but then we also have this talent pool identified: we are monitoring these individuals, constantly looking at their development, and looking at how to get them into great assignments. We work to make sure we give them the appropriate moves to develop them along the way as they prepare to move into leadership roles. This high-potential program (which we call our ‘GOLD Program’), I want to be clear, is different from the first one I described that’s open to self-nomination.

Please describe how you orient new people coming into the organization, particularly globally; how do you let new hires know what is expected of them? We do have a formal orientation that HR takes care of. At our facilities outside the U.S. there is emphasis on giving particularly new hires and highpotentials an opportunity to interface with managers. And here in the U.S. we also have something called the New Hire Connection. It’s aligned with our corporate staffing function, and about 20 volunteers make it run, through activities to connect new employees and help them network and experience Kodak’s commitment to a diverse and inclusive workplace. The New Hire Connection provides information on the basics of getting started at Kodak—whom to contact; where to find information; and learning about Kodak’s products, services, and key strategic initiatives. The New Hire Connection’s goal is to ultimately increase retention of new talent at Kodak.

Are your networks, then, actually one of your tools for interaction with the community? Our eight employee networks are a tremendous asset to us, and we use


them in a number of ways that educate and promote diversity and inclusion. There’s one for African Americans, one for Hispanics, one for Native Americans, one for the differently abled employees, one for the military Veterans, one for the GLBT community, one for women and one for Asian Americans. They hold lunch-and-learning events, events in the evening, and they provide an opportunity for educating the rest of us about their cultures. In this way they are a really great resource for us in educating the general population but also having interface with our senior managers. Each one of our affinity groups, as well as the networks, has a senior management champion of that entire affinity group who partners with the sponsor for that network, and both are executive level people, leaders we put in place from the very top of the company to help support our networks. In fact last night I was at an event for our Asia-Pacific Islander network with their senior management champion Charlie Brown [Charles S. Brown, Jr., Kodak’s Chief Administrative Officer].

Please describe Kodak’s global presence in terms of numbers. In 2004, Kodak had 54,800 employees worldwide, with 29,200 in the U.S. The company has sales offices around the world, with key manufacturing centers in Rochester, NY; Windsor, CO; Guadalajara, Mexico; Sao Jose dos Campos and Manaus, Brazil; and several cities in China. Even though it’s a journey, we’ve started the globalization of our diversity and inclusion. Some of our networks actually have affiliates outside the U.S. In fact there’s a women’s forum affiliate in Japan, and some countries have just one diversity network combining diverse groups (such as our Diversity Forum in our Latin

Profiles in Diversity Journal January/February 2005

America Region). In July 2004, we held a learning event with our senior leaders, after which the chairperson of our China region (Karen Smith-Pilkington) actually went back and did a follow-up with all of the leaders in the greater Asia region. They’ve customized this and started to move it down in the organization and throughout the region and they’ve had about ten events already. Though we thought that the Asia Region might have been a place where we’d go later, that’s actually one of the first places that took off on this and said, “Wow; we’d really like to get engaged here.” I know that there’s also some planning for work that we’ll be doing in our European region, so it’s a global initiative for us. Because it’s a journey, we’re at different points in different parts of the world, but we are engaged in our entire company.

You’ve been CDO about 16 months. How has your role as the chief diversity officer facilitated the company’s diversity and inclusion journey? A lot of this groundwork was here prior to me. I’ll have to really give credit to our Chairman, Dan (Carp)’s leadership; even though we’ve had some kind of diversity office over the past decade, in 2000 he decided to have a Global Diversity Office that was reporting at a much higher level and redefined the organization—really strengthening the office and giving it different resources. One of the big things Kodak did was forming a Global Diversity Leadership Team: 33 executives from all the functions and businesses across the company that actually put together the company’s three-year strategy. They are responsible for being advocates and leaders of the strategy and the initiatives, and monitoring on a quarterly basis, and they are now revising that strategy for the next three years. And then in 2004, we formed a


Senior Executive Diversity and Inclusion Council, which followed up on the external Diversity Advisory Panel feedback. So it’s no one person; there’s just a lot of energy and leadership from the top and we’re all working together to raise the level of where we are as a company.

Your department now has about 25 people. What functions are your team members performing? We’re a strategic team and we work with a lot of partners. We partner very closely with human resources, and on our supplier diversity we partner very closely with Worldwide Purchasing’s supplier diversity office, and we are responsible for developing the strategy with the Global Diversity Leadership Team around implementation, and there is some learning engagement that we have. We do provide some education and training. The conflict resolution group which we call Resolution Support Services is a part of my team. And we are responsible for compliance and metrics, the government-regulated aspects as well as the accountability for our senior leaders.

And then, as I mentioned, the learning event in the greater Asia region got even better results. And so I’m really pleased about taking us to that next level of engaging our senior leaders in building their competency. But the most important thing— answering those who view diversity and inclusion as a numbers game— our theme is rather a ‘winning and inclusive culture’, so changing the culture is really what’s important to us. As we transform our business, the other transformation that we’re

Eastman Kodak Company

focused on is a cultural transformation. And it really is all about our people. If you’re going to win in the marketplace, your people are going to win for you, and so having people feel really valued and having them feel included is what’s going to help us to win. We’re moving along in the journey. I don’t want us to be portrayed as having arrived. As Dan says, “we’re pleased with our progress, but we’re not satisfied.” PDJ

What are your favorite corporate programs? What would you consider the best effort? You know, I don’t think of this as programs. And that’s really important. There are programs within what we’re doing, but it’s more important to think in terms of how we integrate this into the fabric of the company. What I am very proud of, though, is how that learning event last July got our senior leaders engaged, because we have a lot of new senior leaders coming into the company due to the change in our business. It was an extremely successful event; over two-thirds of our participants completed our survey and over 90% said it was of great value.

Profiles in Diversity Journal

January/February 2005


! w e N


Marriott International, Inc.

Staying the Course at Marriott A Close-up of Dave M. Sampson Dave M. Sampson Senior Vice President, Diversity Initiatives – Marriott International, Inc.


irst in the hospitality industry to start a diversity program, Marriott has consistently led the way, accumulating appreciation and awards—including ranking as one of Fortune’s “Best Companies.” In this first in our new series, Front-Runners, PDJ presents a close-up of Dave Sampson. Dave describes Marriott’s diversity initiatives and their business results; in addition, he recounts his own path to leadership and allows us insight into his management style and individuality.

The Marriott Way

How do you explain Marriott’s commitment to the corporatewide culture of diversity and inclusion? Diversity is an organic part of Marriott’s culture that is demonstrated

Profiles in Diversity Journal

January/February 2005


“Accuracy is very important in any task: in all situations, make sure that you thoroughly do your research to make certain that all facts are correct relative to the project or endeavor you are managing. throughout all businesses—the leisure group/association segment, the business-transient segment. Our successes, particularly supplier diversity and our outreach to the community, prove that we have a track record as a leader in the industry: we were the first to start a diversity program, and we’ve been especially successful in the association segment, whether it’s a Hispanic, African-American, or Asian organization. Marriott has been tremendously successful in capturing that business and expanding our share of these markets due to the relationships we have cultivated with our consumers and partners.

some of their other initiatives with recruitment and small businesses. In turn, they have, over the next five years, made us one of their preferred hospitality providers. Marriott’s CEO serves on their board of trustees, his third year there now. This has really added to what we call a ‘good faith agreement’ partnership. In emerging markets, particularly in top ten urban locations where we are developing hotel and lodging projects, our leadership position in diversity helps us from a competitive standpoint to secure deals, especially when there are any incentives that municipalities and government entities are contributing.

How are the new lodging project in Harlem and the award from the Urban League reflective of Marriott’s diversity partnerships?

Please describe your company’s global presence and numbers.

We have partnerships with a few organizations, and the National Urban League is one of the key organizations. We are involved with various programs including their Black Executive Exchange program and


Dave Sampson

We have more than 2,600 lodging properties in the United States and 64 other countries and territories, with approximately 133,000 associates. In fiscal year 2003 we did $9 billion in sales—that’s billion with a B, and we’re very proud of that. We have been very successful in terms of our business customer, our preference,

Profiles in Diversity Journal January/February 2005

and our brand recognition, including Marriott, JW Marriott, The RitzCarlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Ramada International. We have a tremendous opportunity to increase our market share internationally and are looking very much to expand in many areas.

How do you address global diversity either regarding staffing or your presence? We feel that our ability to truly integrate Marriott into the communities where we do business adds to our competitive value. We do a great deal of training of our executives and our managers in diversity, multicultural communication, and cultural sensitivities. We believe making sure we are inclusive and mindful of being part of the communities in which we do business really lends to our success.

When you are bringing in new hires, particularly for management positions at the different properties, is past history with diversity and inclusiveness a consideration, and once they are aboard, how do you monitor that for advancement? Managing diversity is very much part of our overall advancement process at Marriott; people are held accountable for their actual results in terms of development of people, participation, external organization, etc. We have a very strong training culture: new managers coming into our system go through training programs, videos, and CD-rom components in “new hire orientation,” designed to help them understand the business and Marriott International’s commitment to diversity as regards customers, workforce, suppliers, etc. as part of the fiber of our culture.

How do you spread the word


in-house about the fiber of your culture—particularly good practices or experiences? Our very good internal communications department helps us recognize diversity in our various relationships and shares the news with our employee network via vehicles such as our in-house online system or newsletter to reach across all of our hotels. We celebrate our internal and external diversity successes companywide: for instance, when people are promoted within our system we recognize them, and talk about their career path; or a new supplier like Tronex, an AsianAmerican company that is one of our latex glove suppliers.

Have Marriott’s inclusiveness and diversity initiatives produced better operating efficiencies or results affecting the bottom line? I have a perfect example. In a number of our hotels, 30 or 40 different languages are spoken. This capability equips us to better serve our international global customer base from virtually any corner of the world. Not only that, we usually have our associates indicate their home country on their name badges. Our customers can immediately see and begin to communicate in their native language, making it that much easier and enhancing our guests’ experience at the hotel. Another example is family reunions, which are very big in the African-American community and the southeast; we’ve been successful in developing great family reunion packages and really getting our arms around that business. We also have similar success in the Latino market in Miami and L.A, with weddings and events. As I said before—really being a part of the communities where we are doing business is key, particularly considering the demographics at our

Dave M. Sampson Marriott International, Inc.

major urban centers. We see it as adding value to our bottom line. Clearly, the ability to provide a better experience for our customers because we have associates who can communicate, relate to, and understand the culture that much better is a competitive advantage for us.

Exactly how does Marriott support upward mobility of its people from staff to management and leadership positions? We have a couple of initiatives that we’re very proud of at Marriott. One is the Women’s Leadership Series, where some of our senior executives participate in a day and a half of celebration and workshops on leadership style and conflict resolution. These events are geared towards developing our younger female managers to be that much better prepared to take on leadership roles, develop their management styles, and be that much more successful in our company. In 2004, I think we had 10 to 15 Women’s Leadership Series workshops and events across the country. Our Chief Operating Officer and our regional team members—senior vice president and vice presidents, both women and men—go out and meet, get to know, network with, and have some positive feedback for our rising women managers. We also do human capital reviews, where we go out and meet with our executives, assess the areas where they are really strong, the areas they need to work on, and how we as an organization can help them improve. We do a lot of training and development of our people and we are known in the industry for our upward mobility programs. We’re very proud of the fact that approximately 40% of our managers started with Marriott in hourly positions, close to 50% of our managers are female, and

we have I think close to 26% minority managers.

Do you feel Marriott has developed diversity and inclusion within its board of directors as well? If we’re not the leaders, I’d be very surprised. Three of the 11 members on the Board of Directors now are minority: two AfricanAmerican females and a Hispanic male; and I don’t think another hospitality company in the world can make that statement. We’re very excited about that-these are very impressive people with business experience and financial acumen; their resumes would blow your socks off.

Professional Profile

Focusing now on your work style and outlook, what/who were some of the early influences shaping your relationships with other people? I was raised in Manhattan, in fact in Harlem, and went to a Catholic high school in the Bronx, where, out of a graduating class of about 650 young men, I think there were maybe five to ten minorities. Being one of a few in a large student body was very enlightening. I learned very much the differences of our world, so to speak. I didn’t have any problems, but indeed I was coming from a different world, realizing differences and realizing at the same time we had many similarities. That’s probably the first impression and influences that helped me shape my outlook. I also came from an area in Harlem that was referred to as ‘Sugar Hill’, a middle class community where education, hard work, faith, and family were very strong values I was raised with. People in my community also really felt they had an obligation to give back and to help others pull

Profiles in Diversity Journal

January/February 2005


“It is very important to understand the value of relationships, faith, family and hard work. You have to create an environment where people can be successful so that you can tap into their potential. Fostering a productive and positive team environment is key. It is also critical to never forget where you came from...this will move you down the path to success.” Dave Sampson 22

themselves up by their bootstraps, so to speak, too. So those would be the two influences: the community I was raised in and most definitely the education that I was exposed to. But I believe that when we talk about diversity it’s really the thinking that we’re talking about. If I view someone’s difference as being a deficiency, then my thinking is what needs to be corrected and adjusted.

How did your career path develop into being a chief diversity officer? Was there a mentor whose path you were following? Well, my title actually is Senior Vice President of Diversity Initiatives. I have the second highest ranking of a minority in our company, and am one of 42 corporate officers. My career started in the New York City Department of Employment as human resources director. I’ve been with Marriott for more than 23 years, and my first eight years were in HR on assignments including employee relations, director of resources, and regional director of human resources for 30 hotels. Then I came to corporate headquarters, starting as the Director of EO and then becoming Vice President of Public Relations. At that point, almost seven years ago now, I had responsibility for Marriott’s diversity program. I’ve probably had four or five mentors throughout my 23 years here—so many mentors who really took time to help me understand what leadership truly is. But of them, a gentleman by the name of Cliff Ehrlich who was the Executive Vice President, of Human Resources, provided a lot of direction to me, and counsel and support when I came from the market and started here at corporate, which is much different than working in a hotel.

Profiles in Diversity Journal January/February 2005

Speaking of leadership, how would you describe your style or concept of leadership? My leadership style, number one, is to create an environment where people can be successful; meaning: there’s a high level of trust and a strong work ethic. I have been very fortunate in 23 years to have good people working with me, not working for me. In the last 10 to 15 years I’ve learned the difference. I prefer people to work with me, and I think my staff and the people I work with very much know that I roll my sleeves up; there’s no aristocracy so to speak. I’m very mindful of where I came from and the many blessings that I have, and I try to exude that. So I think my style is really creating an environment, not taking it too seriously, and creating trust and worklife balance. You can probably get away with something with me; but don’t attempt to do anything to my staff. I’m not going to have it. Supporting my folks and working closely with my staff is very important to me.

So you’re looking out for their well-being? Yes, I think by and large most people want to be successful, and you can set parameters, make sure they understand the requirements and expectations, and give them the tools and the skills development, and ninety times out of a hundred people will be very successful. But you create that type of environment—give them the tools, and the training.

Are there any rallying points for developing the microculture within your team? We get together for lunches, we make sure to have department meetings where we look at our MBOs and our objectives for the year, making


sure that we’re focused on what we’re supposed to do, but at the same time we have fun, so it doesn’t become too formal. Going back to our company, over the years, one saying of Marriott’s success has been “if you take care of the associate, the associate will take care of the customer.” And I think most of the managers and the folks that I work with would say that we have been able to develop that in our culture. For instance, we have what we call an open door policy. We’ve had a few associates over the years who have had some medical problems and some other real challenges or traumatic family losses. I think we’ve been very sensitive to them and flexible in scheduling and being supportive of whatever it was—putting in temporary staff, not being rigid. Because in those kinds of situations people need support; they don’t have any control over it. And I think they’re very comfortable coming in and making me aware of different personal challenges— without our trying to get too much into their personal business, of course, but just their knowing that they could get some help. It’s very much a team approach. By no means is it just Dave Sampson, and it doesn’t even have to be requested or even stated—people on my team just rally to support each other because they have the level of candor and that kind of relationship. There are days when you will have some conflicts; this is the nature of the workplace. But when you have trust, a level of candor, among people, negative perceptions don’t grow; people feel comfortable sharing their feelings, how certain behaviors make them feel; I think that just adds to the level of communication of the team.

Could you describe your staff and its level of diversity? My senior director is a white male,

Dave M. Sampson Marriott International, Inc.

Michael Tobolski, and there is diversity in many other areas in our department; Priscilla Hollman, vice president of diversity relations, is an AfricanAmerican female; Nancy Quintero, my assistant, has been with me 16-17 years, and she is Hispanic; and I have another African-American woman, Louise Rosamont, manager of diversity initiatives, who has been with us now about three years. As a team, we have 95 years of Marriott experience among us. We have a great team, and I think we work very well together, and I would hope they would say the same.

Along the way, have there been any experiences that discouraged you or taught you hard lessons about diversity or things you’d try instead? I think, when we started our diversity program 17 years ago, it was very human resource focused in terms

of promotions and providing opportunities for women and minorities to progress in our organization. In hindsight, one of the components that was initially not as well thought out was the education of our management about the business case for diversity, myself included. At that time, we were not really focusing much on the market aspect of revenue and sales, but just internally focused. We have learned over the last 17 years about the business of diversity— and the importance of tying it into the normal course of business. Your program, or your process or your journey, better stated, will be that much more successful, when people understand the business motivation for what we do. “Women’s business organizations spent X-millions of dollars at Marriott last year? OK, I’m in support; I understand why we’re participating.” When we go into a development project in an urban setting, or testify in a public

Profiles in Diversity Journal

January/February 2005


Dave Sampson Marriott International




Senior Vice President, Diversity Initiatives


BS in Business Administration, Savannah State University; Master’s in Management, University of Maryland EDUCATION:


File clerk with Sperry-Hutchinson


Always do the right thing.



Tuesdays with Morrie, by Mitch Albom

Wife June and two adult children (son, Alusani, and daughter,

Ayanna) Church, sports (basketball), volunteering (my wife’s non-profit Celebrate Education Travel Study program takes disadvantaged children to Africa for two weeks at school break to help expand their perspective on different countries and eliminate stereotypes about Africa). INTERESTS:

Baseball great Jackie Robinson



Big Country with Gregory Peck or One-Eyed Jacks with



Jazz and Blues




M&Ms® with peanuts

My wife’s foundation (Parenting Plus Associates)

and Catholic Charities I would like to talk with Former Secretary of State Colin Powell about his leadership, accomplishments, and experiences with world leaders.



Profiles in Diversity Journal January/February 2005

hearing, or talk about Marriott’s recognition from external organizations, you can see the body language of the city council change, become very positive: “Oh, I didn’t realize Marriott was doing all of that. I didn’t realize Marriott was recognized by the NAACP and Hispanics Today, etc.” That’s when you really see your programs reaching a level of maturity; they have a competitive advantage and the real business of diversity can be seen.

Has there been a personal proud moment? I think my proudest moments have been when I see a successful young manager, whether a minority or female or non-minority, rise because of our training and development and particularly the support and mentoring. It is always great when I’ve seen that person be successful in our system, continue to grow and be able to add to the community, provide a better life for their family. Or a small business that comes to us and we help nurture and educate them about how to do business with us, and begin to see them grow and hire more people, adding more value to the community, which they are proud of. Those two—a person we help develop and be successful, or a small business; I don’t think there’s anything that I get more satisfaction from. I really know I’m doing my job well when I see that happening.

Are there aspects of diversity that might transform your company in the marketplace? I think it is important that we can continue to develop relationships in emerging markets, because the demographics as we now know, are going to continue to change in our country-the political and the economic influence of women particularly, minorities in this coun-


try—these markets continue to increase daily. So I think the more that we are attuned, in any one of our segments (business transient, leisure or group/association business), the more success we will have as a company. We are building relationships, and making sure that people know that we have a level of appreciation for all markets and different nontraditional groups. This is an evolving strategy for us to continue to stay focused on that.

How do you and/or your staff develop that level of appreciation globally? We do it by working toward the development of our people as well as our regional international teams, which have been run by one of the top executives in our industry, Ed Fuller, since 1990. These individuals are very experienced and very knowledgeable about doing business in a global marketplace. We are also very cognizant of the fact that, the more we can develop our managers so they have experience, both domestically and internationally, we have that much more of a seasoned executive pool.

Does that mean that you are cross-training people from your various markets? We have many different ways of cross-training people. What we’re doing in China is so new; we are developing very quickly there. But let me give you an appropriate example— when a project was being developed in Bermuda, we actually went to Bermuda, recruited a group of people, and brought them back to the U.S. for about 18 months. We helped them find housing, trained them in our hotels, and developed them to learn our systems so that they would be that much more successful. Several were even promoted when they went back to Bermuda into director and executive level positions. And we’ve done

Dave M. Sampson Marriott International, Inc.

that in different countries, exposing people to our Marriott system. Another thing that we do very well is to take a task force of Marriott employees and management and train onsite. Several years ago, for instance, we had tremendous success in Poland by having our employees work with the people there to really train them thoroughly in our systems. There were some questions as to how successful that would be, but it was not only a phenomenal hotel opening, to this day it’s been a very successful hotel for us. We have so many examples of that type of successful global mentoring and expansion, whether it’s South America, Asia, or the United Kingdom— opening hotels and working within diverse cultures, making sure that we are truly a part of the culture. I don’t want to sound like I’m bragging, but I guess to some extent I am. We just are very proud of seventy-odd years of experience in this industry and the leadership that Marriott provides every day, of taking care of our associates, and making sure that we’re creating a good hospitality experience for our customers.

Are there other ways Marriot encourages its people to participate in community programs or outreach? One program that we are very proud of, called Spirit to Serve, is by far one of the most progressive employee involvement programs in our industry. Whether it’s Habitat for Humanity, or Food Kitchen, or Children’s Miracle Network, our hotels allow employees to take time off, and we support programs financially to some degree. We make sure that our managers work in the communities we serve as well, like teaching and working with students in local schools.

How has Marriott been a diversity leader?

our industry to establish a formal supplier diversity program about eight years ago. After its first year, we were doing about $40 million with minority and women-owned businesses; last year we did over $150 million—that’s one of the programs that has showed measurable success we’re very proud of. I also think when you look at our executive leadership we have done a much better job as relates to women and minorities: we have more AfricanAmerican vice presidents than any hospitality company in the country, and we have some of the highest ranking Hispanic women in the industry. Kristine Gagliardi is the general manager of the San Francisco Marriott Hotel, one of the top revenue— producers in our system. And Charlotte Allo-Collier in Dallas, who got her start with Marriott in 1982 in an hourly position, is now a Senior Vice President running a $1.5 billion region with close to 100 hotels. So we have a lot of living examples of upward mobility, people being very successful within the Marriott system. The nature of our business is that we’re open seven days a week, 365 days a year. But if a person does not mind working hard, enjoys working with people, does not run a nine-tofive schedule, and doesn’t insist on weekends off, they will most likely be very successful with us. And giving back, and helping to develop others and being trailblazers— there’s a tremendous pride in our culture in Marriott that is very strong and really adds to our competitive advantage. We have been the first in many areas: childcare, diversity, our Pathways program helping the unemployed develop skills to get jobs; our Bridges program helping people with disabilities find gainful employment. Again and again, we’ve been leading our industry. (You can tell I don’t have very much passion around this issue, can’t you?).


I think that we were the first in

Profiles in Diversity Journal

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Profiles in Diversity Journal January/February 2005


Sodexho USA, Inc.

Developing Competency in Diversity: Sodexho’s Building Blocks For Success Diversity Learning as a Business Imperative by Kim Weaver and Bryan Gingrich


odexho USA (www.sodexhoUSA.com) is the leading provider of food and facilities management in the United States, with $6 billion in annual revenue and 110,000+ employees. Sodexho USA offers innovative outsourcing solutions in food service, housekeeping, groundskeeping, plant operations and maintenance, asset management, and laundry services to more than 6,000 corporations; health care, long term care and retirement centers; schools; college campuses; military and remote sites in North America. Headquartered in Gaithersburg, MD, Sodexho USA proudly serves as the official food service provider for the U.S. Marine Corps. At Sodexho, diversity and inclusion comprise one of our six strategic imperatives for sustained business growth domestically and internationally. To successfully penetrate these markets and achieve the desired growth targets, Sodexho has 1) strategically defined and targeted its efforts; 2) prepared to address these markets with a diverse and culturally competent workforce; and 3) enhanced the diversity awareness and management competencies of its leadership to enable them to be successful in these markets. Toward that end, Sodexho’s Office of Diversity is leading a major effort for transforming Sodexho into a learning organization that engages employees at all levels in continuous understanding and application of diversityrelated knowledge, awareness and skills. To clarify the level of diversity knowledge, awareness and skills expected of all managers, Sodexho’s Office of Diversity partnered with its Human Resource Department to identify Diversity Competencies that serve to drive the Dick Macedonia development of the President and CEO, Sodexho, Inc. Diversity Learning

“I clearly understand the link between increasing diversity and inclusion and profitable growth for our business and our people. It is a strategic imperative for us and fundamental to our mission and values.”

Profiles in Diversity Journal

January/February 2005


building blocks

for diversity learning strategy Integration

Clarifying Business Case & Gaining Buy-In from Executives and Senior Leadership

Compliance Training

Awareness Building

Progressive Development and Implementation


Profiles in Diversity Journal January/February 2005

Skills Building

Concurrent Delivery

Building Internal Capacity


Sodexho USA, Inc.

“We know our business is a people business, and our ability to differentiate ourselves from the competition is the power of our teams and their diversity.” Rohini Anand, PhD Senior Vice President and Chief Diversity Officer

Strategy—Sodexho’s approach and plan for educating and developing employees in the area of diversity and inclusion. Sodexho identified some key competencies that its managers should be capable of demonstrating, including: • Understanding and internalizing the business case for diversity and inclusion; • Being aware of the diversity ‘angles’ of every business challenge, and using diversity management decision-making skills to address and create business opportunities; • Creating and maintaining a diverse and inclusive environment by developing management practices that drive hiring and promotion, and foster the retention of talent; • Building self awareness and awareness of others’ diversity dimensions, and knowing how to leverage diversity as a competitive advantage; • Managing an increasingly diverse workforce by developing and leveraging the talents of all employees, and channeling their efforts toward achieving Sodexho’s business goals and objectives; • Engaging in culturally competent relationship management and customer service to secure and

retain diverse customers;



• Partnering effectively with women and minority businesses to deliver culturally competent food and facility management services.

Sodexho’s Diversity Learning Strategy To build the diversity competencies of our managers and work toward achieving the desired outcomes, Sodexho has developed its multi-year Diversity Learning Strategy. Six building blocks represent primary areas of concurrent and progressive design, implementation, and assessment of training and development efforts for employees at all levels of the company. The business case for diversity and inclusion is the foundation for Sodexho’s Diversity Learning Strategy, which takes a sequential approach to ongoing learning opportunities that facilitate full integration of diversity into the company culture: • Clarifying the business case and gaining buy-in from executives and senior leadership • Compliance training • Awareness building • Skills building • Integration • Building internal capacity.

Building Block #1: Foundation Clarifying the Business Case and Enrolling

Senior Leadership in the Diversity Change Efforts

To ensure the success of the Diversity Learning Strategy, the senior leadership of Sodexho were engaged in aspects of the diversity change efforts, including • clarifying the business case for diversity and inclusion at Sodexho; • creating the diversity strategy; and • taking an active role in leading the implementation of the strategy. Sodexho’s senior leadership continually participate in diversity learning and professional development conferences and sponsor employee network groups and diversity councils, as well as other corporatewide diversity initiatives like mentoring and work-life-balance initiatives. This top-down approach focuses on enhancing each executive’s knowledge of diversity and inclusion by clarifying how critical diversity and inclusion are to our sustained business growth, development, and profitability. Additionally, the development and delivery of a Champions of Diversity training curriculum further facilitates the engagement of leaders in owning and driving the diversity initiative at Sodexho. A key component of this effort is the CEO Diversity Video, which was shown to all 16,000 managers in Sodexho USA; it clearly articulates the CEO’s commitment to this strategic

Profiles in Diversity Journal

January/February 2005


Sodexho employees Priscilla Loges, Casandra Singleton, Sandra Samahon, David Pollack, Tanya Cardoza, and Wynn Watkis participate in a lively, interactive activity in Sodexho’s Spirit of Diversity Training.

Spirit of Diversity Feedback: “I just attended the Spirit of Diversity training and I am so proud of where our company is going. I appreciate diversity and inclusion and now I have the tools to manage it in my unit. All my managers will attend this training even if it is not mandatory because I see a true light at the end of the tunnel. Thank you for your efforts.” —General Manager

“It was fabulous. We had a group of 26 very diverse participants in our class and the discussions were lively and I think caused a lot of people to stop and think. YEA!” —Director of Operations

“I attended the diversity training last week with a group of about twenty managers (cross-divisional). I thought the training was excellent and I heard the same feedback from other managers who were at the training.” —District Manager


Profiles in Diversity Journal January/February 2005


Sodexho USA, Inc.

In Sodexho’s Spirit of Diversity class, participants learn about stereotypes and how to build effective relationships with others. Sodexho employees, from left to right: Jerry Davis, Tanya Cardoza and Casandra Singleton.

imperative and his expectations of managers. This fundamental focus on the business case for diversity and inclusion and engagement of leaders in implementing the diversity strategy has resulted in resounding support for diversity and inclusion as a strategic imperative. Senior leadership commitment and ownership have helped the company to implement the other building blocks of the strategy.

Building Block #2 : Meeting Legal Requirements Compliance Training

To ensure that all Sodexho managers understand their responsibilities and are in compliance with EEO and affirmative action legal parameters, Sodexho trained all of its 16,000 managers in EEO/AA over an 18-month

period. The required education for management employees clarifies the concepts of EEO and affirmative action; outlines managers’ responsibilities for ensuring equal employment opportunities and for implementing affirmative action plans; and affirms company policies and commitment. This compliance education provides the foundation and is now the prerequisite for diversity training; recertification is required every three years through an online training course. Additionally, as a Federal government contractor, Sodexho goes beyond the requirements of the OFCCP by requiring all managers of more than 50 employees to participate in mandatory training to help them better understand and implement their affirmative action plans. To further drive understanding of EEO and affirmative action throughout

the organization, training has been developed for all front-line employees on their equal employment opportunity rights and Sodexho’s EEO complaint process. Our General Managers deliver this interactive video-driven training module that explains Sodexho’s Promise of Respect and Fair Treatment, and front-line employees can engage in discussions around several video vignettes.

Building Block #3 : Heightening Awareness of Self and Others Spirit of Diversity Course

After establishing an understanding of EEO/AA compliance and related responsibilities for managers, Sodexho then turned its attention to building awareness through development of diversity presentations and a course called “Spirit of Diversity” that reflects

Profiles in Diversity Journal

January/February 2005



Sodexho USA, Inc.

Keys to Success There have been several keys to Sodexho’s success in the area of diversity and learning— • development of a comprehensive multi-year strategy rather than making diversity an isolated training event; • engagement of a broad base of key stakeholders in the design, development, and delivery of learning methodologies; and • building internal capacity to sustain its efforts for years to come. The learning strategy has support from our CEO and members of the Executive Team, who have committed significant resources to ensure its success. They are committed to diversity and inclusion as part of Sodexho’s six strategic imperatives, and as fundamental to how we conduct our business, and the learning strategy ensures that this commitment gets internalized throughout the organization. The foundation established over the last few years continues to drive excellence in our operations and pave the way for sustained business growth.

Sodexho’s culture, policies, and practices. This full-day program heightens awareness, builds skills, and clarifies the expectations and responsibilities of managers to create and maintain a diverse and inclusive workplace. The customized curriculum includes lecturettes, interactive exercises, role plays, games, video vignettes and in-depth discussions. Sodexho’s rigorous screening and selection process identified the best external diversity trainers to facilitate the classes. The comprehensive, five day, train-the-trainer process not only prepped selected trainers on the materials, but also immersed them in the Sodexho culture through site visits and team-building activities. The several months invested in the curriculum design and development and selection of the trainers was time well spent because the most common sentiment of managers attending the Spirit of Diversity training is “It’s the best course I’ve ever taken.” Sodexho’s Office of Diversity also partnered again with Sodexho University to develop a video-driven diversity awareness training module for front-line employees. This training continued on page 34

“I am proud of our unique and comprehensive approach to building our diversity learning strategy.” Kim Weaver Director, Corporate Diversity, Sodexho, Inc.


Profiles in Diversity Journal January/February 2005

Diversity. It’s what drives us.

From the cadres of minority designers, engineers, and office staff to the men and women on the factory floor and our network of minority owned dealers, we're dedicated to creating the best cars and trucks possible. In fact, this dedication to work ethic, smarts, and quality is inherent in every vehicle we produce. It's what makes us the proud American brands of DaimlerChrysler Corporation.

Chrysler, Jeep, and Dodge are registered trademarks of DaimlerChrysler Corporation.


Sodexho USA, Inc.

“The Spirit of Diversity training has helped us to develop the cultural competence that our clients and customers want to see in their business partners.” Bryan Gingrich, PhD Senior Director, Diversity continued from page 32 module features the CEO and Chief Diversity Officer expressing their commitment to Diversity; it also includes a series of video vignettes designed to help employees both to interact effectively with one another in a multicultural setting and to provide culturally competent customer service. The video used English, French, and Spanish actors to create three distinct language-specific versions and is being presented to all front-line employees by their managers.

Building Block #4: Developing Skills in Diversity Management and Leadership Learning Labs and Professional Development Conferences

While heightened awareness is one component of competence in diversity, skills for adapting one’s behaviors and interacting and managing in a culturally competent manner are needed by all managers in today’s diverse workplace. The fourth building block in the Diversity Learning Strategy at Sodexho involves more in-depth awareness and skills building experiences, each based on a particular dimension of diversity. Learning lab topics—including Genderflex, MicroInequities™: The Power of Small, (developed by Insight Education Systems), Generations in the Workplace, Sexual Orientation, 34

Culturally Competent Recruiting, and Cross Cultural Communications—are presented on-line and via conference calls and instructor-led training. Participants use models, lecturettes, video vignettes, role plays, and facilitated dialogue to deepen their awareness and practice skills for effective interactions. As a primary vehicle for continuous learning, the learning labs are conducted for intact work teams, diversity council meetings, and network group meetings with executive team members. Another key vehicle of ongoing learning is Sodexho’s Professional Development Conferences, sponsored by the employee network groups and designed to enhance employees’ leadership skills and their diversity competence. Professional Development Conferences are conducted regionally, targeting area managers.

Building Block #5 : Sustaining Diversity Learning and Management Integration

One of the true measures of success of any major change initiative is the seamless integration of the new behaviors and standards into existing programs, policies, and day-to-day practices of the organization. Full integration involves weaving diversity and inclusion tenets into all formal and informal learning experiences and

Profiles in Diversity Journal January/February 2005

interactions throughout the company: diversity no longer as separate and distinct classes, but as an integral component of the corporate culture. Diversity and inclusion principles have been integrated into existing training including Beginning Your Career (Sodexho’s orientation course for new managers), and the General Manager Development series. To mesh diversity into business practices, diversity has been incorporated in key HR systems including competencies, performance management, and succession management objectives, as well as through a Diversity Scorecard that measures each manager’s effort in advancing the diversity commitment.

Building Block #6 : Developing Diversity Expertise Internally Building Internal Capacity

A key goal in the implementation of the learning strategy is to ensure that within Sodexho is a critical mass of diversity champions who have the knowledge and expertise to engage others in these learning efforts. We are building internal capacity for sustaining us as a learning organization in the area of diversity and inclusion: a trainer certification process is building a network of employee trainers and subject matter experts to facilitate our diversity education curriculum. PDJ

Dell celebrates Black History Month.

At Dell, we respect the significance of Black History Month and understand the importance of continuing its legacy. In addition, it’s another opportunity to let the world know about our commitment to diversity in the workplace. We believe in bringing together individuals with diverse backgrounds, thinking, leadership and ideas. In fact, diversity drives innovation and makes Dell a more dynamic company. This month, Dell salutes the extraordinary contributions African Americans have made to our world, as well as our company.

Jeanne Oliver uses a Dell Latitude X300 with Intel® CentrinoTM Mobile Technology


Visit www.dell.com/diversity or call 1.888.741.1633. Dell and the Dell logo are registered trademarks of Dell, Inc. © 2005 Dell, Inc. Intel, Intel Inside, the Intel Inside Logo, Intel Centrino and Intel Centrino Logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States or other countries. All rights reserved. Dell Inc. cannot be held responsible for errors in typography or photography. Dell is an AA/EO employer. Workforce diversity is an essential part of Dell’s commitment to quality and to the future. We encourage you to apply, whatever your race, gender, color, religion, national origin, age, disability, marital status, sexual orientation, or veteran status.

Will your organization make the list?

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INNOVATION in Diversity

2nd Annual International Innovation in Diversity Awards May/June 2005 For application and information visit www.diversityjournal.com or call 1.800.573.2867.

Profiles in Diversity Journal 2005 International Innovation in Diversity Awards OVERVIEW The annual Profiles in Diversity Journal International Innovation in Diversity Awards honor individuals and teams working in organizations and institutions anywhere in the world that have developed innovative solutions offering measurable outcomes in the area of workforce diversity and inclusion. Our objective is to encourage and increase the number of businesses and institutions implementing innovative programs, projects, or practices that will help to improve workforce diversity/inclusion excellence.

The 2004 Innovation in Diversity Award Winners: First Place: BMO Financial Group, Second Place: Bausch & Lomb, Third Place: Eastman Kodak

Ten organizations will be selected as honorees. In defining innovation, we use Webster’s definition as “effecting a change in the established order; the creating of something new.” Innovations can be in the form of new ideas, methods, services, or processes that improve the quality of life or enhance productivity within an organization. Diversity includes variations among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and any other human distinction. These awards will recognize innovations within the organization that have been launched within the past two years, and have had an influence and delivered a positive outcome on diversity management, staff recruitment, and/or toward inclusiveness and improved equity in the workplace. Any one idea or project qualifies so long as the ensuing results are already making a greater impact on diversity management and/or business and institutional diversity/ inclusion excellence than anything prior.

THE AWARDS AIM TO: • Encourage and share best practices in innovation in diversity • Recognize and reward innovations in diversity • Increase the profile of innovative diversity practices within organizations • Inspire organizations and institutions to take innovative approaches to diversity management.

SELECTION CRITERIA INCLUDE: • Ease of implementation • Effectiveness in improving diversity awareness/management, staff recruitment, employee retention and/or inclusiveness and improved equity in the workplace • Evidence of commitment and involvement from senior management and employees • Genuine measurable outcomes (tangible and/or intangible) due solely, or primarily, to that innovation.

Profiles in Diversity Journal 2005 International Innovation in Diversity Awards BENEFITS OF APPLYING FOR AWARDS:

Entering the Profiles in Diversity Journal 2005 International Innovation in Diversity Awards will provide you with a number of benefits. Working through the application process will enable you to: • Showcase your innovations in diversity • Observe your team’s performance from a different point of view • Help gain support and recognition for your team’s initiatives from a broader audience.

BENEFITS TO AWARD WINNERS: • Publication of your accomplishment. The acknowledgement you and your project deserve will be part of a special feature in the May/June 2005 issue of Profiles in Diversity Journal. • Top Awards: Gold (First Place), Silver (Second Place), and Bronze (Third Place) will be recognized, and all 10 organizations will receive a plaque of recognition. • Your achievement will be publicly recognized in the wider business community through press releases promoting the Awards winners. • Accomplishments and winners will be highlighted on the Profiles in Diversity Journal web site for an entire year with links to the winning organizations’ web sites. • Winners receive a copy of the Profiles in Diversity Journal 2005 International Innovation in Diversity Awards logo for their advertising and web site.


Nominations are made in the form of a case study of no more than 1,500 words, plus photos and/or background documentation. • Mail application to: 2005 Innovation in Diversity Awards, Profiles in Diversity Journal P.O. Box 45605, Cleveland, OH, 44145, USA

DEADLINE: The deadline for submitting the nominating application and supporting material is April 18, 2005.

APPLICATION CHECKLIST: √ Case study name: The title of your project/initiative, date first introduced, and a one-sentence explanation of what the innovation in diversity is. √ Profile of your organization/institution: A brief description of your organization/institution, what you do, number of employees, and your work group’s role.

√ What is your innovation: Explain in detail your innovation in diversity. What is particularly novel or noteworthy about your innovation in diversity?

√ Aim: What was the issue/problem that your innovation was seeking to address? How did your innovation address this issue/problem? √ Organizational support: What was the level of commitment and involvement from Senior Management? Employees? √ Resources used: The resources that were needed to implement your innovation in diversity. Examples could include management support, funding, staff time, communication tools, meeting time etc.

√ Business outcomes: The beneficial changes that your innovation has made in your organization. For example; what were the indicators that the innovation was effective? Are there measurable outcomes that demonstrate a link between the innovation and the aims of your organization?

√ Future plans: How will you further develop or review your innovation? √ Notes for practitioners: What did you learn in developing your innovation that could assist others who may want to implement a similar strategy? √ Contacts: The people who should be contacted for more information. √ Quotes: Include at least one quote from someone who has benefited from your innovation. √ Web site (optional): Details of a web site that contains information related to your innovation. √ Charts and other diagrams (optional) √ Prints, slides or digital photos with captions: these will help to illustrate your innovation.

APPLICATION Profiles in Diversity Journal 2005 International Innovation in Diversity Awards 1. CHIEF EXECUTIVE OFFICER ENDORSEMENT I fully support and endorse this nomination for the 2005 International Innovation in Diversity Awards, and agree to publication of the case study in Profiles in Diversity Journal and the Profiles in Diversity Journal Web site.


Position and Organization/Institution:










4. CASE STUDY In 1,500 words or less describe your initiative in plain English (in Times New Roman 12 point black in an MS® Word compatible format). Please use the checklist provided as a guide when completing your application. 5. EVALUATION GUIDELINES When completing your case study, consider the selection criteria that will be used by the selection board in determining the Awards. • Ease of implementation • Effectiveness in improving diversity awareness/management, staff recruitment, and/or inclusiveness and improved equity in the workplace • Evidence of commitment and involvement from Senior Management and employees • Genuine measurable outcomes (tangible and/or intangible) due solely, or primarily, to that innovation. 6. SUBMISSION Nomination Forms must be received by April 18, 2005. Please complete and return the application and send any supporting documentation: • Mail application to:

2005 Innovation in Diversity Awards, Profiles in Diversity Journal P.O. Box 45605, Cleveland, OH, 44145, USA

7. INQUIRIES For information on the awards process, contact Jim Rector, Publisher, at 1.800.573.2867 or by email at profiles@diversityjournal.com

Human Equity Dividends: A Case Study by Susan Larson


n 2001, the South African Division of the world’s largest soft drink producer and distributor (the Division) launched a transformational process to build and sustain an equitable and inclusive workplace that would enhance its business

results dramatically. Part of the challenge (and what makes this case study noteworthy) lay in implementing this change in a country with over ten official languages, even more cultures, and a long and globally scrutinized history with racial issues. The goal of the five-year effort was to transform the Division into an inclusive, equitable work place and realize specific, measurable business dividends by 2006. To date, the Division has been rewarded for its initiatives with one coveted award for achieving best business results world-wide in 2003 (beating approximately 100 other divisions in both business volume and profitability) while simultaneously increasing their employee engagement scores by over one third (the highest survey results in the global parent organization). What follows is a description of the framework used to achieve these results, some of the techniques and tools used, the milestones achieved, and why this experience stands out as a best practices process.


Profiles in Diversity Journal January/February 2005

Case Study

Framework/Milestones 2001-2002 : Visioning

Division’s leadership realized six milestones:

At the foundation of the transformation for the Division was a staged organizational change process (developed by consultant, TWI) called The The Total Equity Solution (TES). The Division’s vision was to be recognized as the best division in the global organization by doubling their revenue contribution over five years and becoming a preferred employer to retain and attract the top talent they would need to reach their goal. In this phase, the link between reaching aggressive business goals and tapping the potential of a diverse workforce had to be put on the Division’s leadership agenda: for the President and his direct reports, people issues could no longer be just concerns for Human Resources; they represented a competitive advantage. Becoming a ‘great place to work’ became a new people strategy, critical to increasing future business volumes and profitability. To this end, during the first stage, the

1) Developing a common vision of a ‘great place to work’ that integrated the concept of fair treatment of all employees. Leadership set aside their conventional notion of equal treatment of people and embraced a new concept based on equity as well as respecting, accommodating, and valuing differences. 2) Articulating a compelling business case. They wanted to achieve two outcomes: (1) to attract, develop, and retain the talent needed to deliver the growth that would make them ‘number one’; and (2) to build a workforce that reflected their customers so as to better understand and satisfy customers’ diverse needs. This conversation moved the rationale for diversity well beyond representation to bottom-line business measurements. 3) Gathering data and setting goals necessary to demonstrate dividends

Profiles in Diversity Journal

January/February 2005


Proper metrics would be essential for demonstrating dividends from the business case to garner sustainability from leadership long-term. ...This initiative, however, took the extraordinary measure of also exploring the attitudes and competencies of divisional leaders, collecting data to use as a basis for leadership accountability. 42

from their business case. Senior leaders evaluated how the organization was currently operating in terms of supporting an equitable work environment, compared it with their vision, and established goals for moving towards their ideal. For this, they used The Equity Assessment, a tool that scores an organization along a five-point equity continuum. Executives rated the organization just below Level 2 (addressing historically disadvantaged groups is the right thing to do) and set the goal of moving to Level 4 (equity is a core organizational value that is fully integrated and sustainable) by 2006. 4) Establishing a clear understanding of the role and responsibilities they, as leaders, would have to play in the transformation process. Leadership recognized that their personal involvement was critical to keeping the vision alive if they were to move along the equity continuum to Level 4. The President (the first South African-born employee to hold the position) and the VP responsible for diversity became enthusiastic, impressive agents of change, and their commitment influenced the other members of the executive team. 5) Creating an infrastructure and allocating funds to support and drive the change process. The Division formed a high-level steering committee, chaired by the VP for diversity, with the President acting as executive spon-

Profiles in Diversity Journal January/February 2005

sor. In this way, they strengthened the credibility of the diversity function and ensured regular access to the top of the organization. The steering committee, in turn, reached out to the employees and invited participation in a Diversity Advisory Council. 6) Building a broad base of understanding and buy-in, first among all managers and then among all employees. An organization-wide communication plan was highlighted by a series of awareness workshops held over a period of six months in 2002. One hundred managers and 400 associates attended a two-day training program where consistent messages around the vision, the meaning of equity, the business case, and the executive team’s commitment were explained.

2002 : Validation The next stage of the change process involved collecting quantitative and qualitative data as a baseline for ongoing measurement. The Division recognized that proper metrics would be essential for demonstrating dividends from the business case to garner sustainability from leadership long-term. Data collection tools helped assess the fairness of organizational policies and processes—a common practice of HR audits and employment system reviews. This Division’s initiative, however, took the extraordinary measure of also exploring the

Case Study

attitudes and competencies of divisional leaders, collecting data that it was prepared to use as a basis for leadership accountability. The Division took advantage of awareness training sessions to leverage data gathering, using two primary tools: • An Equity Assessment contrasted managers’ and employees’ perceptions of the current organization with those of the executive team. (Not surprisingly, there were significant differences in the way groups positioned the company on the equity continuum.) • A Diversity Quotient measured levels of employee satisfaction and perceptions of fairness across a wide range of policies and practices. Some of the most interesting findings addressed discrimination and perceptions of opportunities for advancement for different groups in the organization. In addition, the President and his direct reports completed various tools to assess their effectiveness as equitable leaders and to better understand the talents required to be successful in the Division. For example, each member of the leadership team completed a 360 assessment tool designed to measure seven core competencies related to effectively leading in a diverse work environment. Results pointed to dignity and respect as a needed key competency for the executives (scores were lower than norms).

Because data gathering in the fall of 2002 coincided with an organization-wide employee Engagement Survey, the leadership benefited from the integration of all results for a comprehensive snapshot of the overall Division. Once feedback was studied by the President and his direct reports, it was shared with front-line managers; the most credible source of information for employees. Managers used a comprehensive support package in their listening sessions with employees, and lunch-and-learn discussions were held to augment the process and gather employee feedback.

2003 & 2004 : Opportunity With all the data collected and analyzed, senior leaders faced some brutal facts not only about their organization but about their individual behaviours. In early 2003 they began the process of identifying key opportunities for change, with five areas as priorities: • Satisfaction with work • Leadership • Communication • HR policies and procedures • Discrimination The executive team considered obstacles and developed strategies that would bridge the gap to a Level 4 organization by 2006. An Equity Index provided them with an accountability framework for four types of goals to be achieved, each with specific objectives, timetables and success metrics:

“We’ve launched a major transformation process within this organization, and I’m delighted with the results so far. Our strategy clearly contributed to our outstanding business results in 2003 and I’m excited about working to achieve our longer-term objectives.” -Division CEO

Profiles in Diversity Journal

January/February 2005


Case Study

Summary/Status While the Division has made significant progress and been recognized for its outstanding achievements, major gaps still remain to reach all the equity index measurements and Level 4 by 2006. Many elements of the transformation plan will break new ground for both the organization and its leaders. In 2005, a strategic sourcing initiative will allow the organization to access and build a pipeline of diverse talent to populate leadership and feeder groups based on organizational ‘fit’ as well as skills and


• Increase representation of target groups to parity • Improve retention for all demographic groups • Dramatically reduce number of harassment and discrimination complaints • Increase the diversity of feeder and management groups Q UA L I TAT I V E

• Improve engagement scores with a focus on communication, leadership, and commitment to diversity • Achieve Level 4 on the Equity Continuum

An extensive and comprehensive HR policy and practices audit was led by the Division’s Diversity Advisory Council. A new policy manual has been prepared along with a communication plan to ensure all managers and employees have access to the updated document. The policy and practices environment now represents ‘best practice’ for the African continent and the global organization. Building equitable leaders will be an ongoing feature of the roadmap. Quarterly executive meetings with the President continue; team building and coaching are now fully integrated into the leadership agenda. PDJ


• Achieve top ten ranking in External

experience. Ongoing reviews and realignment will be important over the next two years to keep the organization on track. In 2004, the Division resurveyed using employee engagement and diversity quotient instruments as checkpoints for qualitative measurements on the equity index. The equity assessment will be used in both 2005 and 2006 to monitor progress along the equity continuum, and in 2005 the organization will also apply to be recognized externally as one of the top 10 employers in South Africa.



• Comply with Employment Equity legislation • Surpassing Equity Continuum norms MICRO INTERNAL

• Achieve Level 4 on the seven core competencies of equitable leadership for all managers. With the goals and success metrics identified, the Steering Committee and Diversity Advisory Council set out to build a three-year roadmap to detail the action plans and annual milestones to be achieved.

2004, 2005, 2006 : Transformation & Sustaining Success At this point, the roadmap to Level 4 has been written, and several key elements have already been executed in the transformation process and subsequent sustenance:

Profiles in Diversity Journal January/February 2005

Based on an interview with Trevor Wilson, President, TWI Inc., the consultant working with the Division on this transformation. Trevor Wilson is one of Canada’s leading consultants on issues of equity in the workplace, and most recently authored Diversity at Work: The Business Case for Equity (John Wiley & Sons).

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of you. And people you care about .” People define our success. Diverse perspectives and talents allow us to provide

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What You Do Not Know Can Hurt You: Application of AntiDiscrimination Laws in a Global Workplace By Sandra B. Durant Ms. Durant is an attorney (JD, Columbia University 1973) and a founding partner in Durant and Associates, New York.


n an increasingly globalized economy, American companies have created subsidiaries, joint ventures, and other business structures to exploit foreign markets, leading to a concomitant expansion of overseas job opportunities for American employees. America’s major commercial enterprises are generally educated concerning their responsibilities and rights under our nation’s anti-discrimination laws, prominent among which are Title VII of the Civil Rights Act of 1964 (“Title VII”),1 the Americans with Disabilities Act (“ADA”),2 and the Age Discrimination in Employment Act (“ADEA”).3

Limits of Section 109 However, with the expansion of foreign work sites, the employeremployee relationship has become more complex. Section 109 of the 1991 Civil Rights Act, entitled “Protection of Extraterritorial Employment” (“Section 109”), amended Title VII and ADA to extend protection to American citizens working abroad for an American employer or for a foreign corporation controlled by an American employer. Despite its expansion of coverage, Section 109 does not extend to foreign nationals working abroad for American or foreign corporations.4 Nonetheless, the defense of an extraterritorial work assignment cannot be interposed to avoid application of the anti-discrimination statutes to essentially domestic employment.5 Section 109 also does not protect Americans working abroad for foreign enterprises. Finally, Section 109 provides a legal defense for violation of Title VII and ADA where an employer’s compliance with either provision would cause it to violate the law of the country in which the workplace is situated. Through earlier amendments to ADEA, it likewise has been interpreted to extend to extraterritorial employment, and to afford a foreign law defense.6 Significantly, in its determination of corporate identity, the Equal Employment Opportunity Commission (“EEOC”),

... discrimination by the foreign company will be imputed to the domestic parent.


Profiles in Diversity Journal January/February 2005


the agency charged with interpreting Section 109, will examine the place of incorporation, which will frequently be dispositive.7 Where the employer at issue is not incorporated, additional criteria must be considered, including (1) nationality and location of officers and directors; (2) nationality of substantial shareholders; (3) location of primary facilities such as offices and factories.8 No single factor is dispositive, and any evaluation necessitates a fact-intensive analysis. The conclusion that the company is not American nevertheless does not exhaust the statutory inquiry. Section 109 also extends to Americancontrolled foreign companies. The courts and the EEOC have applied the joint employer/integrated enterprise test to satisfy the control standard. Accordingly, the determination of whether the law applies is premised upon the entities’ (1) interrelationship of operations; (2) common ownership or financial control; (3) centralized control of labor relations; (4) common management.9 Where these factors are found to exist, discrimination by the foreign company will be imputed to the domestic parent.10

Foreign Law Defense Despite Congress’ intention to protect American citizens working abroad for American or American-controlled companies, it nonetheless recognized the principles of international comity. To avoid conflict with the laws of other countries, Section 109 affords a foreign law defense: it provides that it shall not be unlawful for the employer

The burden of persuasion on the foreign law defense rests with the employer.

to take otherwise-prohibited action if compliance with the anti-discrimination statute would violate the law of the host nation where the workplace is located.11 To rely upon the foreign law defense, the employer must demonstrate that the proscribed employment action would be implemented abroad, and that the employer, were it to comply with the relevant anti-discrimination provision, would violate the law of the jurisdiction where the workplace is located.12 Besides American law, there may be in-country provisions which cover an American employee’s work environment. Prudence therefore compels that all companies involved familiarize themselves with the domestic labor law applicable to the work site. Because this defense applies only to the laws of foreign countries, it cannot be asserted to govern employment relationships in any of the fifty states, the District of Columbia, or U.S. territories.13 The burden of persuasion on the foreign law defense rests with the employer. Additionally, courts have shown an intense unwillingness to defer to foreign prejudices as a substitute for law, regulation, or international protocol.14

Foreign Companies Here Foreign employers operating in the United States are generally subject to American anti-discrimination law. The courts have held that where such companies avail themselves of the advantages of the national marketplace, it is not unreasonable to expect

them to accept legal responsibilities, not unlike domestic enterprises.15 In some limited circumstances, however, a foreign corporation, in reliance upon a treaty or protocol, may discriminate in hiring limited categories of employees. Where the foreign employer can invoke a Treaty of Friendship, Commerce and Navigation (“FCN treaty”), it may employ its own citizens as technical experts, executive personnel, attorneys, agents, and other specialists of its choosing.16 Ordinarily such provisions are reciprocal. Formerly, these treaties could be relied upon by a company incorporated abroad. Recent court decisions have gone further, finding that wholly owned U.S. subsidiaries can also assert the treaty rights of the parent company, at least where the parent mandates the discriminatory employment action.17 In examining whether an FCN treaty is applicable in the particular workplace, the court will determine whether there is a public, published document satisfying treaty standards that identifies the category of employee to which it extends. If the treaty does not cover the type of employer or the category of employee raising a claim, a discrimination action may still be brought. As the decision in Wickes v. Olympic Airlines 745 F.2d 363 (6th Cir. 1984) made unequivocally clear, FCN treaties do not provide a blanket

Profiles in Diversity Journal

January/February 2005



immunity from domestic labor laws, or a carte blanche opportunity to discriminate. However, if the treaty applies, an anti-discrimination action must be dismissed. Besides FCN treaties, some foreign embassy or governmental entities operating in the U.S. may also be exempt from the anti-discrimination laws. As a result, some of their American employees may have no protection under Title VII, ADA, or ADEA. In those instances, the employer will ordinarily invoke the Foreign Sovereign Immunities Act (“FSIA”), 28 U.S.C. section 1602, et seq., which exempts foreign sovereigns and their instrumentalities from suit except where the nature of the activity conducted is commercial. Despite the exemption, employees engaged in commercial activities, like clerical staff, are protected under the anti-discrimination statutes.18 However, the description of an employee’s job title is not dispositive. Instead, courts will examine the employee’s actual job responsibilities on a case-by-case basis. Where the duties are by their nature akin to those of civil service, diplomatic, or military staff, the immunity provides a complete defense, and the action must be dismissed.

CONCLUSION The advent of a globalized economy and the relocation of American workers overseas present tremendous possibilities for the growth of American corporations. However, these opportunities are not without pitfalls. A successful American or American-controlled foreign employer will be familiar with the rights and responsibilities embodied in American anti-discrimination statutes and conversant with foreign labor laws, all of which may apply to its expatriate employees. Familiarization with these laws is critical for successful management and maximized profits.19 PDJ


Endnotes / References 1. TITLE VII, 42 U.S.C. SECTIONS 2000E ET SEQ., AS

8. ID.










69 F.3D 1235 (2D CIR.1995); KANG V. U LIM


AMERICA. INC. 296 F.3D 810 (9TH CIR. 2002) -U LIM









2. ADA TITLE I, 42 U.S.C. SECTIONS 12101, ET SEQ.,

11. TITLE VII, 42 U.S.C. SECTION 200E-L(B), ADA, 42


U.S.C. SECTION 12112(C)(L) AND ADEA, 29 U.S.C.


SECTION 623(F)(L).


12. SEE, MAHONEY V. RFE/RL INC. 47 F.3D 447 (D.C.









SECTION 12112 (A)].

CORP., 577 F. SUPP. 1196 (N.D. TEX. 1983), AFFD. 746


F.2D 810 (5TH CIR. 1984) -PILOT WHO WILL NOT




















MEDICINE. 581 F. SUPP. 1570 (S.D. TEX. 1984),









THIS CHAPTER [29 U.S.C. SECTION 623(A)(L) - (3)].

OIL CO. 653 F.2D 1273 (9TH CIR. 1981) -SOUTH




STRYKER CORP., 59 F. SUPP. 2D 600 (N.D.TEX. 1999);




76 F. SUPP. 2D 476 (S.D.N.Y. 1999); SHEKOVAN V.





SUPP. 231 (M.D. ALA. 1988); EEOC V. KLOSTER


CRUISE. LTD. 888 F. SUPP. 147 (S.D. FLA. 1995);





MACHINES CORP., 213 F. SUPP. 2D 390 (S.D.N.Y. 2002)

MORELLI V. CEDEL. 141 F.3D 39 (2DCIR. 1998).




F.2D 1135 (2D CIR. 1988), CERT, DENIED. 493 U.S.




17. SEE, FORTINO V. QUASAR CO. 950 F.2D 389 (7TH










MINATOME CORP., 138 F.3D 1053 (5TH CIR. 1998) -

















SAUDI ARABIA. 111 F. SUPP. 2D 457 (S.D.N.Y. 2000).






Profiles in Diversity Journal January/February 2005





(S.D.N.Y. 2002), AFFD. 360 F.2D 106 (2D CIR. 2004).

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Profiles in Diversity Journal January/February 2005

Catalyst / www.catalystwomen.org

The Evolution of Network Initiatives Employee networks are an increasingly popular— and effective—vehicle for supporting greater diversity efforts in organizations and for developing a broader talent pool. By Catalyst


omen consistently identify several barriers which impact their ability to move ahead: lack of mentors and role models; exclusion

from informal networks; stereotypes about their desires and abilities; and a work culture that does not support them. Many employee groups—people of color, gay and lesbian employees, disabled employees, among others— who are not well represented in the inherent power structure of most large organizations experience similar difficulties. Employee networks have arisen as a tangible means to counter these effects. They provide a source of mentors, role models, and sponsors as well as access to information about opportunities and advancement. Networks can also play a role in busting the myths and stereotypes that surround diverse groups and in so doing help transform the culture of an organization. Profiles in Diversity Journal

January/February 2005


The most important success factors What is a network? A network is a group of people from a particular constituency (i.e, female, African-American, gay/lesbian, Gen-X, etc.) within an organization, formed to act as a resource for both members and the organization. Often networks begin as informal gatherings of like people and develop into formalized networking groups. Organizations may support networks in many ways—through administrative and budgetary support, permission to meet on organization time and premises, technological services (establishing an intranet or list serve) and, perhaps most importantly, leadership commitment.

Who benefits from networks? Of course, by definition, employee networks provide the opportunity to build relationships and to network, often providing a way to connect employees who may be in small numbers in different parts of the company. Networks often help employees build skills that help them better deliver in their jobs and more effectively manage their careers. Other benefits for network members include: • Finding/becoming mentors— making informal connections and building relationships

understanding and meeting member needs. • Providing events or other programs designed to expand knowledge and skills • Increasing the number of contacts in personal networks through meeting and sharing information. Network leaders get opportunities to develop their leadership skills and gain visibility with senior management by working with executive sponsors and diversity councils. They are also able to make connections that would be beyond the context of their regular work. Within the organization, a network can play various beneficial roles: • Forum for building key relationships and sharing career development information • Advisory body to management on issues relating to the constituent group

• Identifying leaders and role models for more junior group members in the organization

• Platform for leadership and visibility opportunities for members

• Reducing a sense of isolation— often a strong benefit for people of color in organizations

• Resource for business development.

• Learning about opportunities and strategies for advancement


for networks are

Networks can partner with the organization in recruiting and retaining valuable employees. They can be critical to changing the culture for the better and creating an

Profiles in Diversity Journal January/February 2005

environment that supports diversity of background, thought, and perspective. They can provide a constructive forum for feedback and help to improve the lines of communication. Networks can also help organizations to develop and keep clients: they

Catalyst / www.catalystwomen.org

parent organizations: helping to identify and to retain talent. Networks help employees succeed and feel like they belong, thus convincing them to stay with an organization.

What makes networks successful?

provide a means for employees to forge relationships with community organizations and to favorably impact the perception of the employer. Finally, perhaps the greatest impact of employee networks is mutually beneficial to their members and their

Through our work with networks, Catalyst knows what works and why. Here are some success factors to keep in mind as you begin, maintain, or rejuvenate an employee network. A clearly articulated business case answers the question, Why have a network? A business case is formed by distilling the following information: • the demographics of the employee group at key levels within the organization • the demographics of the client base including market trends and purchasing power • feedback on the internal environment through avenues such as focus group data or survey data • benchmarking information against competing and/or best-in-class organizations. It is important for the network to articulate how both members and the organization will benefit. Often the business case is developed in collaboration with HR and line leaders so that the network is aligned with business needs and its value is clearly communicated and understood. The most important success factors for networks are understanding and meeting member needs. In collecting information about potential member issues and interests, the goal is to narrow the broad array of possibilities and hone in on where your network group wants to focus and have impact. Network leaders must understand the scope and be very clear

about what the network is and is not. Diversity in leadership says a lot, so it is important that the network leadership team is reflective of—or maps to—the targeted membership. For example, if the network is targeting women at multiple levels, the network leader team should have women at several key levels represented. Sometimes employee networks struggle to obtain the participation of particular employee groups. Ensuring that the key targeted groups have representation on the network leadership team can help to mitigate this challenge. Well-managed communication is critical to a network’s success as well as its survival. Network leaders must share their vision and help active members and the organization at large understand why their work is important. They must celebrate the hard work of network leaders, champions, and members, as well as the accomplishments of the network. When it comes to communicating about events, they should be clear on the purpose, the target audience, and the intended benefits. Like most organizational initiatives, networks are most successful when they have support from the top. Executive sponsors can support networks by sending out network event invitations through their e-mail; participating in events, including speaking

Network leaders must understand the scope and be very clear about what the network is and is not.

Profiles in Diversity Journal

January/February 2005


Catalyst / www.catalystwomen.org on panels; giving guidance on the network’s plans and goals; providing funding for network activities; and giving updates about the network’s activities at leadership meetings. It is important to do a periodic evaluation of what is or is not working. It is also important for the organization and network leaders to follow up with network members to make sure their changing needs and concerns are understood, as well as to learn from their ideas and suggestions. Catalyst advises conducting an annual or bi-annual survey to keep network leaders in touch with member priorities and needs. Networks are another tool—a highly effective, fresh, and innovative tool—for improving the bottom line while bringing employees together to help each other and the organization get

Networks are another tool—a highly effective, fresh, and innovative tool— for improving the bottom line while bringing employees together to help each other and the organization get ahead.

ahead. Success can be significant for the network organizer, colleagues, and the company, and each step is relatively simple. Regardless of how much time is available, employee networks can be successful if goals and activities tailored to distinct needs and environments are chosen—and enough like-minded people are found to help. PDJ With offices in New York, San Jose, and Toronto, Catalyst is the leading research and advisory organization working with businesses and the professions to build inclusive environments and expand opportunities for women at work. For more information about Catalyst’s research, products, and services focusing on employee networks, visit www.catalystwomen.org. You may also sign up to receive Catalyst’s issue-specific newsletter, Perspective, and monthly email updates at news@catalystwomen.org.


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Profiles in Diversity Journal January/February 2005

The Drive for Diversity and Inclusion starts right here.



s a proud sponsor of NASCAR’s “Drive for Diversity” initiative, Waste Management is racing toward the same goals as you are. From Bill Lester behind the wheel of his Number 22 Waste Management Toyota Tundra to our constant efforts to recruit and support a diverse workforce, we are truly committed to speeding past today’s conventions of diversity and inclusion. Waste Management salutes the many other workplaces that are on the same track as we are. By working together, we already find ourselves on the road to a more diverse, inclusive tomorrow. From everyday collection to environmental protection, Think Green. Think Waste Management. ®

NASCAR® is a registered trademark of the National Association for Stock Car Auto Racing, Inc. ©2004 Waste Management, Inc.


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