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Also Featuring ... MGM’s Front-Runner Punam Mathur • The Many Habits of Highly Inclusive Organizations

Volume 8, Number 2 March / April 2006

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I remember not long ago when there was some clamor to have corporations pay more taxes. The prevailing sentiment seemed to be that corporations were not contributing their fair share to the treasury. Paul Harvey, the radio commentator, reminded his listeners that corporations do not pay taxes; only people pay taxes. His point, of course, was that businesses simply pass on the tax expense to consumers who end up paying higher prices for the goods or services they buy. What may be true about taxes, however, is certainly not true about diversity. It is not just individuals who advance diversity; it is corporations, too. This explains the dual nature of Profiles in Diversity Journal. We feature individuals who are change-agents—people who are advancing diversity and inclusion in both their companies and the communities in which they operate. At the same time, we showcase the companies that make these individuals’ efforts bear fruit. We do this because, while we enjoy celebrating personal achievement, we are mindful that behind every star performer is the senior management team or board of directors of a progressive, dynamic company. These companies are the ones leading the push for diversity and inclusion. They are determined to bring fairness and opportunity to the work place. They value the contribution of every individual. Exelon Corporation is an outstanding example of such a company. Diversity permeates the corporate culture and extends to suppliers and community organizations. John W. Rowe, the chairman, president, and CEO, not only leads the company, he makes time to lead one of the company’s Employee Network Groups. You’ll find plenty of other real-life examples of diversity-in-action in our feature, “The Many Habits of Highly Inclusive Organizations.” We’ve identified the diversity habits that leading organizations have in common. Better yet, you’ll get to explore ideas that may not yet have reached your own board room. And our Front-Runner this issue is Punam Mathur, vice president of diversity at MGM MIRAGE, the first company in the gaming industry to launch a diversity intiative. A star performer in every sense, Ms. Mathur gives us a look into this entertainment, hospitality, and gaming giant. Our profile begins on page 46.

John Murphy Managing Editor

PUBLISHER James R. Rector MANAGING EDITOR John S. Murphy CREATIVE DIRECTOR Linda Schellentrager DIRECTOR, MARKETING Damian Johnson CONTRIBUTING EDITOR Laurie Fumic OVERSEAS CORRESPONDENT Alina Dunaeva WEB MASTER Jason Bice

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 $15 per year for postage. Other foreign orders add $20 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.

SUBMISSIONS Reprints: profiles@diversityjournal.com Editorial:

CORRECTIONS: For the Record Due to an editor’s error, Robert Hagans Jr., chief financial officer of AARP, was misidentified in the Leaders on Black Leaders feature in the last issue of the magazine. We apologize for the mistake. 2

Profiles in Diversity Journal March/April 2006

diversityjournaledit@mac.com Photos & Artwork: diversityjournalart@mac.com


On the Cover / Special Feature

President, and CEO John W. Rowe of Exelon Corporation – 17 Chairman, is taking the company to new heights. We look at the role Exelon and its subsidiaries are playing in the diverse communities in which they provide power.

Punam Mathur MGM MIRAGE Senior Vice President of Corporate Diversity and Community Affairs Punam Mathur is on a mission to make the company’s diversity culture a role model in the hotel and gaming industry. Backed by strong support at the highest levels of MGM MIRAGE, she’s succeeding.

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Profiles in Diversity Journal March/April 2006


True strength has many faces.

At DaimlerChrysler Corporation, we work hard to design, engineer and build the best cars and trucks available. And it’s all made possible through the dedicated work of every employee. Unity does, indeed, create beautiful things.

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


The Many Habits of Highly Inclusive Organizations Inspired by Stephen Covey’s book, we asked some of the most esteemed companies to describe their diversity and inclusion programs to see if there are commonalities among them. Indeed, there are. This feature is loaded with good ideas, free for the taking.

56 departments

Diversity Who, What, Where & When

8 Catalyst

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Diversity Scorecards Diversity Scorecards can be used to measure progress, identify change drivers, keep managers accountable, and communicate successes.

Diversity Best Practices

54

Diversity Councils Senior Executive Diversity Councils are becoming increasingly important. Our feature from Diversity Best Practices explains why.

Diversity Crossword Puzzle Miles Mellor

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Profiles in Diversity Journal March/April 2006


Get more out of your career. Now at Dell. At Dell, we’re committed to bringing together individuals with diverse backgrounds, thinking, leadership and ideas, and arming them with the best tools to ensure their success. We believe this helps drive innovation and makes Dell a more dynamic company. Through career development, mentoring programs, network groups and productivity tools like the Dell Latitude D610 ® ® with Intel Centrino Mobile Technology, we offer the resources to help every employee achieve their potential. Our goal is to ensure that Dell is a great place to work, grow and aspire. Success real time. Capture it at Dell.

Dell recommends Windows® XP Professional

Trisa Thompson uses a Dell Latitude D610 with Intel® Centrino® Mobile Technology

CAREERS AT DELL. CONSIDER THE POSSIBILITIES.

How do you get started? Visit www.dell.com/pdj Dell and the Dell logo are registered trademarks of Dell Inc. ©2006 Dell Inc. Intel, Intel logo, Intel Inside, Intel Inside logo, Centrino and the Centrino logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and 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.


Stanford Is Chief Diversity Officer at AARP WASHINGTON – Dr. E. Percil Stanford is the chief diversity officer of AARP. His responsibilities include shaping and articulating the diversity and inclusion mission of the organization. For many years, Stanford was associated with San Diego State University, where he continues to serve as professor emeritus. He was professor and charter director for the university’s Center on Aging. He also served as the director for the National Institute on Minority Aging, which he founded. He is widely recognized for his expertise on issues associated with minority aging. His leadership in the field of aging includes being involved in the early development of several key aging organizations, including the American Society on Aging, where he served as president.

Brock Takes On Chapter Operations at the American Red Cross WASHINGTON – Gayle L. Brock is the diversity director for chapter operations in the American Red Cross. Prior to re-joining the Red Cross diversity team, he served for five years as the Diversity Manager for AARP. Brock first joined the Red Cross in 1996 after retiring from 26 years of service in the U.S. Army, where he worked extensively in the areas of military equal opportunity and organizational effectiveness. He completed two tours of duty in the Office of the Secretary of Defense where 8

he was primarily involved in writing equal-opportunity policy for the Department of Defense. Brock holds a Bachelor of Science degree (cum laude) in Business and Management from the University of Maryland (European Division) and a Master’s in Human Relations from the University of Oklahoma. He was certified as a Senior Professional in Human Resources by the Society for Human Resource Management in 1998 and served as the chair of the diversity committee for the American Society of Association Executives in 2004-2005.

was presented the “Millennium Pacesetter” award by the Atlanta Business League and selected as one of the “Top 100 Blacks in Corporate America” by Black Professionals magazine. “Valencia has done an excellent job of building and guiding a very thoughtful and effective diversity and inclusion strategy at our company. Her long history of service at BellSouth and in the community combined with her breadth of business knowledge make her a tremendous asset to this board,” said Duane Ackerman, chairman and chief executive officer of BellSouth.

Georgia’s Governor Sonny Perdue taps Valencia Adams for Board position

Mary Nugent Leads Technical Services at BMC Software

ATLANTA – BellSouth Corporation (NYSE: BLS) Chief Diversity Officer Valencia Adams has been named by Georgia Governor Sonny Perdue to serve on the state’s recently formed Workforce Investment Board (WIB) Coordinating Council. Adams is one of 20 Georgia business leaders to serve on the 43-member WIB which will also include local elected officials and representatives from community organizations and labor unions. The board will recommend policy to guide the state’s strategic workforce plan. Adams is vice president and chief diversity officer for BellSouth Corporation. She has oversight for diversity and inclusion strategy development and implementation across BellSouth Corporation. She has received numerous honors and awards throughout her career. She was named one of “25 Influential Black Women in Business” for 2006 by The Network Journal. Profiles in Diversity Journal included her in their list of “Women Worth Watching” in 2006. In 2005, Adams

Profiles in Diversity Journal March/April 2006

Mary Nugent, vice president, technical services, has been with BMC Software for 11 years. She has held numerous leadership positions, most recently as vice president and general manager of a $60-million line of business where she led global development labs in the United States, Europe, and India. Nugent began her career as a certified public accountant. She managed her own accounting firm before entering the world of consulting. She then moved into the IT industry, managing professional services for the oil and gas industry, before joining BMC Software. Her current position involves overseeing and leading a newly formed global organization. Nugent comes from a family of leaders. Her great-grandmother, Leonor Villegas, was involved in the Mexican Civil War and is the most decorated female citizen in Mexico. She was known for being a revolutionist and started an organization called the White Cross in Mexico.


Bring out the best in everyone,

and you can achieve great things. The men and women of Lockheed Martin are involved in some of the most important projects in the world. Though naturally diverse, our team shares a common goal: mission success. Our differences make us stronger because we can draw on the widest possible range of unique perspectives. Resulting in innovative solutions to complex challenges. Lockheed Martin. One company. One team.

www.lockheedmartin.com


Lori Cook, Vice President of Global Services, Channels, and Emerging Markets Lori Cook recently joined BMC as vice president of global services, channels, and emerging markets. She will be responsible for extending BMC’s growth in all market segments through partners, especially the emerging growth segment. Cook joins BMC after 24 years at IBM. During this time, she was responsible for delivering IBM’s $3.7 billion services revenue and $2.1 billion signings target for the western 22 United States. While at IBM, Cook created IBM’s Emerging Markets services strategy, which is still in effect today. Cook’s career includes several management and leadership positions at IBM including the development of multiple programs with business partners and emerging growth. She has a consistent track record of delivering results at IBM in every position she has held.

Denise Clolery, Senior Vice President, General Counsel and Secretary Denise Clolery has joined BMC and the company’s executive leadership team as senior vice president, general counsel and secretary. She comes to BMC from Sonnenschein, Nath & Rosenthall LLP, where she was a partner in their corporate, securities, intellectual property, and

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technology practice group. Previously, she was also with O’Melveny & Myers LLP for 17 years, and was a partner in their transactions group. Clolery graduated summa cum laude from University of California, Los Angeles, and cum laude from Harvard Law School.

Dell’s Thurmond Woodard Receives the Austin Area Urban League’s Whitney M. Young Jr. Award AUSTIN, Texas – The Austin Area Urban League (AAUL) has named Thurmond B. Woodard, Dell’s vice president of global diversity, its 2006 Whitney M. Young Jr. Award recipient. Woodard, unanimously elected by AAUL’s board of directors, has led Dell’s global diversity and ethics efforts since 2000. He has been instrumental in the company’s initiative to build diversity into its core business plan, including accessing top talent to ensure its success. Dell’s partnership with the Austin Area Urban League has helped the company meet this goal. “The contributions Thurmond has made in the community and to our organization have been key in promoting Dell to the Austin Area Urban League both financially and programmatically. Thurmond’s contributions overall have been invaluable,” said Jeffrey Richard, CEO of the AAUL. “At Dell, we’re on a mission to find, hire and develop diverse talent. Thurmond has galvanized our internal belief that to be a successful company and a great place to work, Dell must leverage the similarities and differences of employees,” said Kevin Rollins, CEO of Dell. “The Austin Area Urban League could not have picked a more deserving

Profiles in Diversity Journal March/April 2006

recipient of its 2006 Whitney M. Young Junior Award.” The Whitney M. Young Jr. Award was named for the former National Urban League executive director, considered a pioneer in community organization and advocacy for oppressed people. The award is presented annually to an individual who has proven, through their deeds, to exemplify the principles for which Young stood.

InterContinental Hotels Group Appoints Roslyn Dickerson Regional Senior VP, Diversity, the Americas ATLANTA – InterContinental Hotels Group (IHG) [NYSE: IHG], the world’s largest and most global hotel company, has appointed Roslyn Neal Dickerson regional senior vice president, diversity, the Americas. In this capacity, Dickerson will be reporting directly to Steve Porter, president of the Americas, IHG. Dickerson’s appointment represents the company’s continued focus on diversity and inclusion by focusing on internal staffing, operations, and key external relationships and partnerships with suppliers, vendors, and franchise prospects. “I am pleased to welcome Roslyn to the IHG team and know she will use her tremendous experience across multiple industries, companies, and geographies to continue the critical work of leading, developing, and implementing our diversity and inclusion strategies, including assessing our organizational needs and identifying solutions that will contribute to a more diverse and inclusive organization,” said Porter. Prior to joining IHG, Dickerson served as the corporate vice president and chief diversity officer with


Honeywell, headquartered in Morristown, N.J., beginning in 2002. Before joining Honeywell, Dickerson held various senior level positions with several financial services organizations in which she was responsible for diversity initiatives. These positions include her role as managing director, Corporate & Investment Bank for Citigroup, where as the global head of diversity, she reported directly to the CEO and was responsible for developing and executing its global diversity initiatives and establishing relationships with female and minority market participants. Dickerson has a B.S. in education and health sciences from Boston University and an M.B.A. from Johnson Graduate School of Management at Cornell University.

New Director Joins Schneider~Ross Team Schneider~Ross has appointed Freddie Alves to director, global diversity and inclusion. Alves will help drive the consultancy’s expanding global work and client base as well as lead the global diversity network. He will be able to use his five years of experience to help leading multinationals benchmark and push the boundaries of best practice. Alves brings with him a wealth of global, private sector experience, having previously worked in senior corporate diversity at Mobil and the Dow Chemical Company. His responsibilities for mainstreaming diversity and inclusion have given him an impressive track record of in-house consultancy across continents—most recently in continental Europe, the Middle East and Asia Pacific. He has played key roles in helping geographical leaders translate global vision and goals into locally relevant strategies and actions. This experience

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will be key to the consultancy work he will lead in Schneider~Ross. Having spent the last 12 years living in The Netherlands, the United States and Switzerland, he is now moving both his working and family life back to the UK. “I’m absolutely delighted to be joining the Schneider~Ross team,” said Alves. “For me, Schneider~Ross has been doing strategic diversity work in the right way for years. Now I have the opportunity to contribute my own experiences and ideas to that work and the responsibility to sustain the terrific reputation which S~R enjoys with clients. I’m ready for the challenge!”

TAC Worldwide Companies’ Staff Member Elected Board Chairman of the New England Minority Supplier Development Council DEDHAM, Mass. – Susan P. Yule, senior vice president of business solutions at TAC Worldwide Companies (TAC) in Dedham, Mass., a leading technical staffing services provider, has been elected board chairman of the New England Minority Supplier Development Council (NEMSDC). Yule will be responsible for leading the board in its role of providing direction and guidance to this organization that promotes successful relationships between corporations and minorityowned business enterprises (MBEs). NEMSDC is an association of 100 corporate members, 350 supplier companies and other institutions dedicated to facilitating business opportunities and market share growth for certified MBEs throughout New England. “Unlike other organizations in the area that support MBEs, the NEMSDC is focused on offering a strong value

Profiles in Diversity Journal March/April 2006

proposition to our corporate members while creating sustainable business opportunities between them and MBEs,” says NEMSDC President and CEO Wil Spencer. “With Susan Yule’s commitment and leadership guiding our dedicated board, I am confident we will reach the aggressive goal we have set of achieving $1 billion annually in sales between the two business entities within five years.” “NEMSDC provides a direct link between corporate America and minorityowned businesses,” adds Yule. “A significant shift in our strategy for the coming year is to focus on ‘commodity matching,’ which means working with NEMSDC-certified MBEs to ensure they are offering goods and services that our corporate members need.” A resident of West Newton, Mass., Yule is responsible for the sales and delivery of TAC’s Technology Deployment Services group and the Contact Center/Help Desk group. She oversees the strategy and quality for those product lines and is involved with the strategic development of TAC’s new business products. She has more than 20 years of human capital management experience from TAC Worldwide and Veritude in Boston, a Fidelity Investments company, and holds a Master’s of Education degree from Harvard University. TAC Worldwide Companies® is a leading provider of technical staffing services and custom workforce solutions that are designed to optimize workforce utilization and improve organizational performance. The company offers a growing network of technical staffing resources on three continents, including access to nearly two million contractors. The company’s Web site is www.tacworldwide.com.


Washington Mutual Names New National Supplier Diversity Head SEATTLE – Washington Mutual has named Johnny Lewis as vice president and manager of its National Supplier Diversity program. In this role, Lewis will oversee Washington Mutual’s national supplier diversity initiatives and further develop the company’s nationally recognized supplier diversity strategies. “Our suppliers play a very important role in our ability to offer market-leading and competitive products and services to our customers,” said Brian Powers, first vice president, Enterprise Supplier Management at Washington Mutual. “Johnny’s appointment will allow us to further develop our existing diversity vendor base and increase the number of opportunities for diverse vendors and contractors who want to do business with us.” Lewis joins Washington Mutual from Lucent Technologies, where he led the company’s national supplier diversity program, which actively promoted and purchased products and services from diverse business owners throughout the United States. Prior to this, Lewis served as vice president, Southwest regional market manager at Bank of America, where he developed, implemented and managed its national supplier diversity initiatives. Washington Mutual has been nationally recognized for its supplier diversity initiatives. In 2005, the company was ranked among Hispanic magazine’s “Top 50 Vendor Programs for Latinos;” Diversity Inc.’s “Top 10 Companies for Supplier Diversity” and Hispanic Trends’ “Top 50 Companies for Supplier Diversity.” The company’s long-term goal is to award 15 percent of its supplierrelated contracts to companies that are at

least 51 percent owned by people of color, including African Americans, Asian Americans, Hispanic Americans, Native Americans; women; and disabled veterans. Washington Mutual is a retailer of financial services that provides a diversified line of products and services to consumers and commercial clients. The company operates more than 2,600 retail banking, mortgage lending, commercial banking, and financial services offices throughout the nation and has more than $343 billion in assets.

New York Life Names Katherine O’Brien VP and Chief Diversity Officer NEW YORK, N.Y. – New York Life Insurance Company has announced the formal creation of a diversity office and the appointment of a chief diversity officer. Katherine O’Brien has been appointed vice president and chief diversity officer, reporting to Sheila Davidson, executive vice president in charge of Law and Corporate Administration. “New York Life is an Employer of Choice, recognized for its commitment to diversity and inclusion policies. To continue this success and propel New York Life forward, we have decided to formalize an office dedicated to diversity, with a full-time diversity officer overseeing the function,” said Sy Sternberg, chairman and chief executive officer, New York Life. “What makes New York Life ‘The Company You Keep’ is that we continually work to improve all facets of our business, and diversity is yet another area where we will not be complacent.” The diversity office will identify and implement best practices to drive the company’s continued progress in the areas of recruitment and training of a diverse workforce, development and

promotion of minority and women employees, and the maintenance of an environment of inclusion. As chief diversity officer, O’Brien will oversee this function. Also staffing this function will be Assistant Vice President Andrew Frazier, who will report to O’Brien, assisting in the achievement of diversity and inclusion goals. O’Brien and Frazier will build on New York Life’s success as a recognized employer of choice in the diversity arena. New York Life is consistently acknowledged by Andrew Frazier external diversity organizations, earning most recently recognitions from ESSENCE magazine, as an outstanding company for black women; from Family Digest, as one of the best companies for African Americans; from Profiles in Diversity Journal, as one of the top 10 companies for innovation in diversity; from Latin Business, for its commitment to diversity; from Latina Style, as one of the 50 best companies for Latinas to work for; from Diversity Inc., as one of the top 50 companies for diversity; from Hispanic magazine, as one of the top 100 companies for Latinos; and Hispanic Trends, as one of the top 50 companies for supplier diversity. O’Brien joined New York Life in 1995 as a litigator in the Office of the General Counsel and has held positions of increasing responsibility in employment litigation. Most recently she has worked with Human Resources, managing benefits compliance and administration. Prior to joining New York Life, Ms. O’Brien worked with several law firms in New York, including Christy and Viener, in general commercial litigation.

Profiles in Diversity Journal March/April 2006

PDJ 13


Diversity Scorecards Measure progress, identify drivers of change, keep managers accountable, and communicate successes. By Catalyst

I

s your organization taking steps to increase diversity and inclusion in its workforce and culture? Do you have the tools to measure your organization’s progress? Implementing diversity and inclusion initiatives is a complex task for any organization. However, diversity scorecards can easily be used to measure progress, identify drivers of change, keep managers accountable, and communicate successes.

What is a diversity scorecard? A diversity scorecard is a tool that can be used by all parts of your organization to track progress on categories such as promotion and attrition rates, perceptions of inclusion, and customer and supplier diversity. The specific measures that you include on your diversity scorecard should be carefully selected and derived from your diversity goals; your diversity goals should be derived from your overall business strategy. In order to create a practical and effective scorecard, your organization should follow five essential steps.

Identify the audience. The audience for your organization’s scorecard should be determined by the level at which your organization has chosen to concentrate its change activities. If your diversity strategy is focused on the role and influence of leadership, then your scorecard should be designed for the CEO, president, and executive committee. If your diversity strategy is focused on institutionalizing processes and policies that promote inclusion, then your audience should probably be senior- and mid-level managers. Deciding who your audience is will help you choose appropriate metrics to track.

Revisit the diversity strategy. It is crucial to review your diversity goals and your strategies for reaching them. With this information, you will be better prepared to create a diversity scorecard that reflects your goals, strategy, and culture.

Determine the categories of the scorecard. The categories that your organization chooses should reflect your diversity goals

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Profiles in Diversity Journal March/April 2006

by illuminating the impact of your diversity initiatives. To ensure that the entire organization is focused on the same diversity goals and that data can be aggregated, it is important that the categories are used consistently across the organization. Some categories may measure internal progress, such as changes in talent management, perceptions of inclusion, and employee engagement with diversity. Other categories may measure external progress, such as new market opportunities, and vendor and supplier diversity.

Determine the metrics to be used. There are two kinds of metrics: implementation (also called process or leading) metrics, and results (also called lagging) metrics. Implementation metrics measure the extent to which the action steps called for by your diversity strategy are being carried out on schedule. Results metrics measure the effects of the programs instituted by your organization—these numbers will move in response to effective strategy implementation. Using implementation and results


metrics will allow your organization to develop an understanding of both what is driving change and what change has occurred. Remember that metrics are only numbers until you assign significance to them. In some organizations, a two percent increase in women managers is a sign of significant progress; in other organizations, two percent might be a sign of deceleration. You should determine your organization’s parameters for progress by considering historical growth and change, industry benchmarks, previous attainment of goals set by management, and forecasted rates of change in your employee population.

Develop guidelines and procedures for collecting data. Establishing guidelines and procedures is key to collecting and calculating data consistently across the organization. The specific guidelines will be determined by who owns the scorecard, how frequently the scorecard will be reviewed, and the availability of the data.

Implementing and maintaining a successful scorecard. Successful adoption of the scorecard will be determined to a large degree by how it is introduced and implemented. For example, a decentralized organization may choose to launch the scorecard in one or two highly visible business units and hold off on an organization-wide launch until the tool has proven itself. A more centralized organization might find it more effective to launch the scorecard across all business units but limit reach to two or three work levels. No matter what, communication is important. Ideally, senior management will play a large role in introducing and advocating the scorecard’s use and impact. One person should be designated the scorecard owner. This person is usually also responsible for leading the design and implementation of the scorecard. Once the diversity scorecard has been introduced, it is important that the owner take responsibility for ongoing review, maintenance, communication, utilization, and periodic re-evaluation of the tool. The ideal owner should have the following resources:

• influence and exposure to the end user, • authority to access privileged HR data, and • time or a team to physically update the scorecard. Successful creation and implementation of a diversity scorecard can be an immense aid to the execution of your organization’s diversity goals. Clearly elucidating your goals, communicating them, and tracking them will help diversity become an essential part of your workplace culture. The data that a scorecard provides will show you just how far your organization has come.

Catalyst is the leading research and advisory organization working to advance women in business, with offices in New York, San Jose, and Toronto. For more information or to download a free copy of Women “Take Care,” Men “Take Charge”: Stereotyping of U.S. Business Leaders Exposed, visit www.catalyst.org. You may also sign up to receive Catalyst’s issue-specific newsletter, Perspective, and monthly email updates at news@catalyst.org.

PDJ Profiles in Diversity Journal March/April 2006

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Starwood Hotels & Resorts turns strategy into action with leadership and practical solutions developed by its

Global and Regional Diversity & Inclusion Councils.

We recognize and appreciate the diversity of people, ideas and cultures. Through diverse viewpoints, we deliver unprecedented business results.

starwood.com


Special Feature

Exelon

The diversity lights are burning brightly at Exelon An interview with John W. Rowe – Chairman, President and CEO of Exelon Corporation.

J

ohn W. Rowe has utilities in his blood. He was chairman, CEO, and president of Unicom Corporation from March 1998 until October 2000, prior to the merger of

Unicom and PECO Energy that created Exelon. He has led electric utilities since 1984, consecutively serving as chief executive officer of Central Maine Power Company, the New England Electric System, and then Unicom Corporation. Rowe is a lawyer and was general counsel of Consolidated Rail Corporation and a partner in the firm of Isham, Lincoln and Beale. Rowe is as passionate about diversity as he is about energy. He has assembled a diverse team of senior managers at Exelon who are successfully driving diversity and inclusion strategies throughout the company.

Please give your definition of diversity. We define diversity at Exelon as the many distinct characteristics that employees, suppliers, and customers bring to our organization. These include race/ethnicity/national origin, gender, age, sexual orientation, socio-economic background, physical abilities, religion, and other

ALL PHOTOS COPYRIGHT BY EXELON, UNLESS OTHERWISE NOTED. USED WITH PERMISSION.

Profiles in Diversity Journal

March/April 2006

19


John W. Rowe

Exelon

interview ::

differences that create an inclusive

associated with many talented people of

environment. And with these distinct

all backgrounds. The benefit goes well

characteristics come variations of think-

beyond the insight and perspective that

ing, communication styles, skills, and

these talented individuals have brought

behaviors—all of which enable us to

to the business. My own life has been

achieve our business goals, gain compet-

enriched, my own perspective sharp-

itive advantage, and support our

ened, by reaching out to those whose

business values.

experiences are so very different from

For me, diversity is a very personal

my own.

thing. In truth, we are all minorities on this globe. We all share common hopes, needs, and failings. The real passion, the

GLOBAL / MARKET / INDUSTRY ISSUES

real drive for what we call diversity must come from individual hearts and

Are there any particular

individual relationships.

challenges to your company

Our ambition at Exelon is to be the

20

in selling or producing

best electric and gas company in the

electric and gas services?

country. We simply cannot achieve that

How about to hiring and

ambition unless we serve all, employ all,

retaining good people?

and identify with all. We cannot be the

The cities in which we operate, Chicago

best unless we provide opportunities for

and Philadelphia, are growing in minor-

people of all racial and ethnic groups.

ity populations. It is important that we

We serve Chicago and Philadelphia, two

maintain a diverse work force that can

of the most diverse cities in the United

best serve our diverse customer base.

States. Minorities are a large part of our

Another challenge is the retirement

customer base, a growing part of our

of the baby boom generation, which

work force, and an ever more powerful

poses a major demographic challenge for

political force. It is not just about

the nation as a whole, and particularly

representation; it is about people feeling

for the nuclear industry. According to a

welcome.

2004 Nuclear Energy Institute survey,

It has been my good fortune

nearly half of nuclear industry employ-

throughout my business career to be

ees are over 47 years old, and less than

Profiles in Diversity Journal March/April 2006


Special Feature

Exelon

“For me, diversity is a very personal thing. In truth, we are all minorities on this globe.

seven percent of employees

We all share common hopes, needs, and

are younger than 32 years old. Obviously, the industry

failings. The real passion, the real drive

must take dramatic steps to respond to this issue.

for what we call diversity must come from

At Exelon, we are meet-

individual hearts and individual relationships.�

ing these challenges through active recruitment efforts (internships, scholarships,

John W. Rowe

recruiting), active retention efforts (training and mentoring), and doing everything possible to attract and advance talented

engaging all employees on the job

day.

We treat our co-workers and

people from diverse backgrounds with

through special assignments, training and

customers with respect, decency, and

technical skills.

development, and mentoring.

integrity. We encourage open discussions

We are building on a national diver-

It is important for me and for our

about diversity and why it is important. It

sity recruitment strategy developed in

senior executives to understand the issues

is up to all of us to create an environment

2004 that involves partnering with several

that are important to our employees, so

where inclusion, respect, and fair treat-

national

including

the company conducts employee feed-

ment can flourish.

the Society of Hispanic Professional

back meetings. This builds a dialog and

On a formal level, Exelon maintains

Engineers, Society of Black Engineers,

lets employees know that they have a

a Corporate Diversity Office that sets

and Society of Women Engineers. We

voice and have been heard, which is also

the strategy for the whole company.

partner with the Spanish Coalition for

a key factor in retaining employees.

We also have human resources staff in our

organizations,

business units who support and execute

Jobs and with diverse local communitybased organizations. We also recruit by

How does a company as

the strategies set forth by the diversity

partnering with colleges and universities

established and fast-changing

office.

that support diversity. Our efforts to

as yours keep up with diversity

Our Executive Diversity Council,

build a diverse work force are as focused

development throughout the

which is comprised of senior leaders from

and strategic as any of our other business-

organization?

our business units, provides input for

critical initiatives.

We have more than 100 years of history

companywide diversity efforts. Its mis-

As for retaining employees, we put

behind us. Diversity development at

sion is to recommend corporate diversity

an emphasis on valuing diversity and on

Exelon is everyone’s responsibility every

strategies to the board of directors in sup-

Profiles in Diversity Journal

March/April 2006

21


John W. Rowe

Exelon

interview ::

port of achieving the company’s business

listen to issues and experiences of the

goals. Diversity starts from the top

members of the group, including the

down, and our board of directors is

fear of disclosing their sexual orientation

made up of a diverse group of men and

to family members and co-workers.

women.

We strive to provide a supportive and

Diversity education is also vitally

inclusive workplace for all employees.

important. Our employees are exposed

“We have laid a foundation for our commitment to diversity through four key diversity strategies ... work force diversity ... supplier diversity ... a civic and social

to a variety of diversity education pro-

Are there unique opportunities

grams, from workshops to online train-

in your particular industry

ing. In addition, employees benefit

for implementing diversity

through participation in our Employee

programs?

Network Groups (ENGs), which are an

Our industry is unique in that we have a

integral part of Exelon’s diversity strategy.

regulatory obligation to serve all cus-

The groups are self-initiated, voluntary,

tomers and provide the same level of

corporate-wide and inclusive. Current

service to all, unlike, say a retail outlet

ENGs represent various communities

that may choose where to locate a new

including Asian Americans; African

store. This provides us an opportunity

Americans; Hispanics; the gay, lesbian,

to continuously improve diversity pro-

bisexual, and transgender communities;

grams to ensure that we maintain a

as well as a group for women. They

diverse work force that can best serve

establish networking opportunities,

our diverse customer base.

activities and programs to promote and support the professional and personal

and an education

events, and assist the company in diversity recruitment strategies while serving

CORPORATE LEADERSHIP What resources (financial and manpower) are allocated to diversity?

and support

as a link between employees and Exelon

I have a deep personal commitment to

to address issues of mutual interest.

diversity that is shared by our entire

growth of a particular community, host

commitment ...

strategy ...” John W. Rowe 22

educational and cultural activities and

Each group has an executive spon-

leadership team. Diversity is not just the

sor. I sponsor the gay, lesbian, bisexual

right thing to do, it is a must do—

and transgender group Exelon PRIDE. I

politically, socially, morally. Diversity

Profiles in Diversity Journal March/April 2006


Special Feature COMPANY:

Exelon

Exelon Corporation

HEADQUARTERS:

Chicago, Illinois

COMPANY WEB SITE:

www.exeloncorp.com

Exelon Corporation is one of the nation’s largest electric utilities, with approximately 5.2 million customers and more than $15 billion in annual revenues. The company has one of the industry’s largest portfolios of electricity-generation capacity, with a nationwide reach and strong positions in the Midwest and Mid-Atlantic. Exelon distributes electricity to approximately 5.2 million customers in northern Illinois and Pennsylvania and natural gas to more than 470,000 customers in southeastern Pennsylvania. Exelon trades on the NYSE under the ticker EXC.

PRIMARY BUSINESS:

Exelon is ranked 145th on the Fortune 500 list. It was named one of Fortune magazine’s “Most Admired Companies” in 2005 and 2006 and ranked number one on the electric and gas utility industry list in 2005 and 2006. INDUSTRY RANKING:

increases customer satisfaction, fosters

quality of life in the communities we

employees and to instill an awareness of

community support, and provides align-

serve. Lastly, an education and support

the value of diversity. Our developmental

ment with political representation. Our

strategy promotes effective diversity

succession-planning process for key

company must maintain a diverse work

education and training programs for all

positions in the organization provides

force that can best serve our diverse com-

of our employees.

future leadership opportunities for

Diversity just makes good

Spearheading these efforts is our

employees. Exelon ensures that our

business sense, especially for a public util-

Corporate Diversity Office and our

recruitment efforts result in a diverse and

ity that serves both Chicago and

Executive Diversity Council, with sup-

effective company by partnering with

Philadelphia, two of the more diverse

port from business unit human resources

national and local diversity organizations

cities in the United States.

staff to ensure the programs reach all levels

and colleges and universities that

We have laid a foundation for our

of our company. Our diversity policies

value diversity.

commitment to diversity through four

provide growth opportunities for all

Our diversity programs also stress

key diversity strategies. In terms of work

employees who wish to use their

the importance of having a diverse

force diversity our goal is to attract, develop

talents to make Exelon successful. On an

supplier base, and we have established a

and retain outstanding employees and

annual basis, the diversity office issues a

multi-tiered program that seeks to

leaders. With supplier diversity our goal

summary report to Exelon’s board of

increase the company’s spending with

is to help minority- and women-owned

directors outlining diversity initiatives.

diverse suppliers. Not only does this

munities.

business enterprises develop and grow. A

To ensure that an inclusive work-

benefit Exelon, it benefits the community.

civic and social commitment means that

place is developed and maintained, we

Giving back to the communities in

we contribute to civic and community

have implemented a diversity education

which we live and operate is very impor-

organizations that seek to improve the

strategy to address the needs of all of our

tant to me personally, and I know it is to

Profiles in Diversity Journal

March/April 2006

23


John W. Rowe

Exelon

interview ::

our leadership and our company as a

within our work force in comparison to

whole. In the last five years Exelon has

the availability of women and minorities

given more than $87 million in contri-

in the labor pool, and we benchmark

butions and sponsorships to nonprofit

with the best companies for diversity, as

organizations in northern Illinois,

well as share our best practices.

Pennsylvania, and the communities

During the fall of 2004, Exelon

surrounding our generating stations.

organized and hosted a two-day diversity

The company’s employee volunteers are

benchmarking summit. The event

committed to giving their time, energy,

attracted several companies recognized

expertise, and leadership to organizations

as leaders in diversity, including Abbott

to help them meet community needs.

Laboratories, Allstate, Kraft Foods, Procter & Gamble, and Sprint. The

Is diversity linked to

discussion was very insightful, and we

compensation for the

learned a lot from each other.

executive management

We also solicit feedback directly

team? How do you reward

from employees to assess how we are

special initiatives?

doing and to discuss their concerns.

All Exelon executives are held account-

Exelon organizes listening forums for

able for supporting all of the company’s

senior executives with employees from

diversity initiatives.

diverse backgrounds to discuss diversity issues.

Our

ENGs

are

excellent

resources, too.

EMPLOYEE INCLUSIVENESS How does your company gauge inclusion of employees? With what tests, measurements, and benchmarks do you measure success?

24

Exelon conducts a companywide employee opinion survey every other year that features questions related to diversity. We also conduct a diversity retention study every other year to identify why high performing individuals,

We continuously review our policies,

especially women and minorities, volun-

practices, and culture for employee

tarily leave the company.

inclusiveness and our recruitment/reten-

views also provide us with additional

tion program for effectiveness. We track

information on how we are doing with

representation of women and minorities

diversity.

Profiles in Diversity Journal March/April 2006

Exit inter-


Special Feature

Exelon

Participants in the 2006 Black History Month event “Black Leadership in the Energy Sector” presented by ComEd and EAAMA (Exelon African-American Members Association): from left, Roland Martin, Chicago Defender; Tracie Boutte, Entergy New Orleans; Lisa Crutchfield, PECO; David Owens, Edison Electric Institute; Frank M. Clark, chairman and CEO, ComEd; John W. Rowe, chairman, president and CEO, Exelon; Hilda Pinnix-Ragland, Progress Energy, and board chair, American Association of Blacks in Energy; Bobby L. Rush, U.S. Congressman, House Energy and Commerce Committee; Todd Banks, vice president, EAAMA (Exelon African-American Members Association).

Sometimes diversity is

Can you name specific ways

managers, including women and minori-

referred to as a “numbers

your company supports

ties, that pairs employees with senior

game.” How does your

upward development toward

leaders to further develop the employees’

company know its culture is

management positions?

leadership skills and assist them with

not just tied up in numbers?

Our Fast Forward leadership training

career development. Since the program

Participation in our Employee Network

program targets first line supervisors,

began in April 2005, 55 leadership pairs

Groups is very strong. I am always

managers, high potentials, and execu-

have been created.

impressed by the level of participation

tives; and the Exelon Leadership Institute

and the enthusiasm our employees bring

is a best-in-class executive development

to the groups and to making Exelon a

initiative associated with Northwestern

better place to work. Each ENG has its

University. Thirty percent of the partici-

own intranet page that provides informa-

pants in our 2004 program were women.

tion on its programs and accomplish-

About 20 percent of Exelon’s execu-

ments. Its activities are often written

tive work force is female. Over the last

about in our internal publications, such

two years, Exelon Nuclear appointed the

SUPPLIER / COMMUNITY / CUSTOMERS What is the company’s commitment to minority suppliers? What measures are you taking to achieve your goals in this area?

as the companywide Inside Exelon maga-

first female vice president of a nuclear plant

Exelon’s Supplier Diversity Program is a

zine. Our internal publications also high-

site in company history, and Exelon Power

part of our company’s core philosophy

light the company’s diversity initiatives,

appointed its first female general manager

and overall commitment to having diverse

diversity awards, and civic contributions

of a fossil plant in company history.

suppliers fully represented and actively

and provide profiles of diverse company employees.

In 2005 we launched a leadership

engaged in our economic activities. Due

mentoring program for high potential

to this philosophy and our centralized

Profiles in Diversity Journal

March/April 2006

25


John W. Rowe

Exelon

interview ::

I have had great role models throughout my lifetime, including professors and friends from different backgrounds. I have also enjoyed relationships with talented women and minorities ... these

supply organization, our suppliers have

We have a very robust supplier

access to opportunities Exelon-wide.

diversity program.

Our policies and

The main focus of the program is to cre-

procedures were revised in 2004 during

ate opportunities for and strengthen our

the centralization of the supply depart-

relationships with diverse suppliers.

ment. Our databases, tracking, and per-

The program seeks to meet diversity

sonnel training were improved. A supply

expenditure goals that are set each year,

Web site was launched as part of the cor-

and I am proud to report, that we are

porate Web site to provide existing and

exceeding those goals.

new suppliers with information about

In 2005, Exelon’s diversity spend

the materials and services purchased by

goal was 8.5 percent, and the diversity

Exelon, supplier self-service, as well as

spend for the year totaled 10.8 percent.

who to contact. The site also allows for

This beats the company’s previous best

the online registration of suppliers. In

year in 2004. That year, the diversity

2005, almost half of the nearly 2,000

spend goal was 7 percent, and Exelon

suppliers who had registered online were

reached 7.9 percent total spend. Exelon’s

diverse suppliers.

2006 diversity spend goal is 11 percent.

In addition, we encourage our sup-

Exelon was recognized in 2005 by

pliers to establish supplier diversity pro-

the

Women’s

Business

Enterprise

grams of their own.

Greater

Our supply employees are actively

Philadelphia as “Company of the Year”

involved in supplier diversity organiza-

for excellence in inclusion of Women’s

tions locally and nationally. They

Business Enterprises in the supplier

include the National Minority Supplier

diversity program.

Development Council and its regional

Regional

relationships have

Council

of

Exelon has both a supplier diversity

affiliates in Pennsylvania, New Jersey,

helped broaden my

manager and coordinator who are dedi-

Delaware, and Illinois; the National

cated full-time to supplier diversity. We

Minority

perspective on

also started a Corporate Supplier

Agency;

Diversity Council in 2004 to enhance

Enterprise National Council and its

our programs. The council consists of

affiliates in Philadelphia and Chicago;

representatives from supply, finance,

and the National Trade Bureau of the

legal, and our corporate diversity office.

RainbowPUSH Coalition.

diversity.” John W. Rowe 26

Profiles in Diversity Journal March/April 2006

Business the

Development

Women’s

Business


Special Feature

Exelon

It makes good business sense to share our success with minorityand women-owned business enterprises and help them to develop and grow as we grow. We are committed to supporting supplier diversity now and in the future. We also have implemented initiatives to increase business opportunities

for

John Rowe standing next to an electric meter from the early 1900s.

minority

and female professional-services providers. Exelon’s legal department developed a formal program to

How do you promote diversity

members of our management team. I am

encourage diversity within the law firms

and inclusion to the general

proud to serve as chairman of the board of

handling Exelon matters. The program puts

public?

trustees of the Chicago History Museum,

our outside firms on notice that we will

Exelon contributes to civic and community

chairman of the Civic Committee of the

assign work to them based not only on cost

organizations that seek to improve the qual-

Commercial Club of Chicago, and chairman

and performance but also on the firm’s diver-

ity of life in our communities through exec-

of the board of directors of the Mies van der

sity commitment.

utive participation in civic groups, corporate

Rohe Society at the Illinois Institute of

Exelon’s Treasury Group has established

contributions, and employee volunteerism.

Technology. I also serve as a member of the

relationships with, and utilized the services

We focus on four areas: education, environ-

boards of the Illinois Institute of Technology,

of, minority- and women-owned banks,

ment, arts and culture, and neighborhood

the Chicago Urban League, the Field

minority-owned investment firms, minority

and economic development. The organiza-

Museum, the Art Institute of Chicago,

asset managers, and a minority-owned audit-

tions we work with are very diverse and

Northwestern University, the Edison Electric

ing firm. We will continue to implement

include the United Way, Boys and Girls

Institute, the Chicago Club, and the visiting

diversity initiatives in the professional

Clubs, Chicago Public Schools, Philadelphia

committees of the Oriental Institute, and

services arena.

Academies (school program), Spanish

the University of Pennsylvania Museum.

Coalition for Jobs, El Valor, the AIDS

Frank Clark, chairman and CEO of our

Foundation, Habitat for Humanity, and

ComEd subsidiary, is African American and

many more.

is very active in the Chicago community.

I serve on several boards, as do other

Frank is leading the development of the

Profiles in Diversity Journal

March/April 2006

27


John W. Rowe

Exelon

interview ::

Legacy Fund, a $3 million endowment

and African American advertising agen-

in partnership with the Chicago

cies to help us communicate effectively

Community Trust to broaden educa-

with those communities. Exelon’s

tion, arts, and community development

“Promises” advertising campaign, which

in the African American community. He

features diverse employees of our energy

also serves as co-chairman of the DuSable

delivery businesses ComEd and PECO,

Capital Campaign, a $24 million initia-

reinforces the companies’ dedication to

tive to expand the DuSable Museum, the

customer service, reliability, and safety.

nation’s first museum devoted to African

The ads are customized to the Hispanic

American art and culture.

and African American communities.

Our employees have been outstanding in their civic commitments through

Where does your personal

contributions and volunteerism, especial-

belief in diversity and inclu-

ly in the past year when we have seen so

sion come from? Who were

many terrible natural disasters.

your role models, or was

In Chicago, the Exelon/United Way Stay-in-School program is helping

that helped shape your view?

more than 900 at-risk students stay in

I am passionately committed to diversity.

school. We are also the primary sponsor

My passion stems from vast amounts of

of the National Hispanic Scholarship

reading and from building relationships

Directory and are especially proud of the

with individuals whose experiences are

efforts we’ve made to open up educa-

very different from my own. Recently

tional opportunities for minority stu-

I read and shared numerous copies of

dents to fulfill their career goals and per-

Eric Foner’s book Forever Free, which

haps one day join Exelon.

examines the period of Emancipation

Exelon’s

Hispanic ENG, Organization of Latinos

and Reconstruction.

at Exelon, recently raised $12,000 for its

similar types of books have helped me

scholarship fund. We already have a very

to better understand the experiences of

successful internship program that has

various racial and ethnic groups.

brought students from diverse backgrounds to work at Exelon.

28

there a pivotal experience

This book and

I have had great role models throughout my lifetime, including

Another way we promote diversity

professors and friends from different

to our customers is through multicultur-

backgrounds. I have a strong commit-

al advertising. Exelon employs Hispanic

ment to diversity because of my personal

Profiles in Diversity Journal March/April 2006


Special Feature

Exelon

“I have made it my mission to ensure that talented women and minorities serve on relationships

with

minorities

at

Exelon’s board of directors. We have men

Exelon/ComEd, including Cordell Reed,

and women who are Anglo, Asian, African

Frank Clark, John Hooker, Rey Gonzalez, and Martha Garza. I have also enjoyed

American, and Hispanic on the board.”

relationships with talented women and minorities who serve on the Exelon board of directors.

These relationships have

helped broaden my perspective on diversity.

Who has shaped your thinking as a business leader? What about their business skill or style influenced you? I have a love for history and believe we can learn from the leadership styles of past leaders, such as Abraham Lincoln and Ulysses S. Grant. I have also had three remarkable mentors:

former

Illinois Governor Ogilvie; L. Stanley Crane (Consolidated Rail Corporation); and Stanley Hillman (former trustee of the Milwaukee Railroad).

What are your specific responsibilities for advancing diversity and inclusion in your organization? What are the strategies you employ to move inclusion forward? I have made it my mission to ensure that talented women and minorities serve on Exelon’s board of directors. We have men and women who are Anglo, Asian, African American, and Hispanic on the board.

JWR

Diversity can help assure board independ-

compensation related to

ence and accountability. We also want to

diversity performance?

have a board that reflects the diversity of

My compensation is determined by the

our employees and of our customers.

independent board of directors of Exelon

To move inclusion forward, we have

that assess my performance in the areas of

a Corporate Diversity Office and through

finance and operations, strategic plan-

that office we have Employee Network

ning and implementation, succession

Groups, an Executive Diversity Council,

planning and organizational goals, exter-

and site and business unit diversity coun-

nal relations, leadership, and shareholder

cils. A vice president of diversity leads

relations.

the Corporate Diversity Office.

Over the past several years, a portion of my annual incentive has been tied to

How have you modeled your

Exelon achieving certain work force

company’s diversity and

diversity goals.

inclusion initiatives in your own team selection, manage-

Are there particular areas/

ment or development?

employee sectors you feel

Our company’s diversity and inclusion

still need improvement?

initiatives are reflected in my team selec-

We still face challenges in bringing

tion. Three of the seven senior executives

females into non-traditional roles and

who report to me are women or minori-

increasing our overall minority represen-

ties.

We will continue to implement

tation. Diversity continues to be in the

diversity initiatives at all levels of the

forefront while we deal with various

organization.

issues, including our upcoming merger with New Jersey-based utility PSEG.

How are you (as a manager)

We will continue to focus our efforts on

measured in terms of

increasing our female and minority

performance? Is your

representation.

Profiles in Diversity Journal

March/April 2006

29


John W. Rowe

Exelon

Engineering student Emern Ekong provides some information to Exelon Recruiter Maricarmen Figueroa during a job fair at the Dallas Convention Center in 2005.

Exelon’s diverse work force drives its success For a company to be successful in today’s multicultural society, diversity needs to be embraced and seen as a key component of its business strategy.

s a public utility operating in two

force diversity—the goal is to attract,

of the nation’s more diverse

develop and retain outstanding employ-

communities, Chicago and Philadelphia,

ees and leaders; supplier diversity—the

Exelon recognizes the positive impact a

goal is to help minority- and women-

diverse work force has on its business.

owned business enterprises develop and

The company has established programs

grow; civic and social commitment—to

that ensure diversity is a part of everyday

contribute to civic and community

life for its employees. Exelon’s diversity

organizations that seek to improve the

vision is to be recognized as one of the

quality of life in the communities it

most admired companies because of the

serves; and education and support—the

passion for diversity and inclusion the com-

company promotes effective diversity

pany demonstrates in all its relationships.

education and training programs for its

A

Exelon’s commitment to diversity is executed via four key strategies: work

30

Profiles in Diversity Journal March/April 2006

our employees. “Attracting and retaining a diverse


Special Feature

work force is where our diversity strategies

includes

begin. Exelon’s Corporate Diversity

partner benefits.”

Exelon

domestic

Office works closely with our recruiting

dent, diversity. “We work with a variety of

Recruiting a Diverse Work Force

internal groups, such as our Employee

A key component of

Network Groups, and external groups,

building diversity in

such as national minority organizations,

Exelon’s work force is

to help us with hiring and retention.

partnering

We’ve found that an effective way to

national organizations such as the

are actively involved in setting policy and

reach our customers is through a work

American Association of Blacks in

direction for the national organization as

force that they can relate to.”

Energy,

well as providing support and contribu-

staff to attract employees from all walks of life,” said Rey Gonzalez, vice presi-

ComEd Communications Interns Laura Lehman (right) and Teana Johnson (left) talk with ComEd Communications Manager Judy Rader (left) and Communications Specialist Liz Keating.

with

National

Black

MBA

Association, the Hispanic Alliance for

tions

diverse work force with a broad range of

Career

of

Hickman said. “As we’re about to become

perspectives enhances an organization’s

Hispanic Professional Engineers, Society

the largest utility in the country through

problem-solving abilities and innovation

of Black Engineers, and Society of

our pending merger with Public Service

skills. Exelon has found this to be true

Women Engineers. The company also

Enterprise Group (PSEG), people are

and uses diversity as a strategic business

works with the Spanish Coalition for Jobs

certainly looking to Exelon for our lead-

tool tied to goals and long-range success.

and with diverse local community-based

ership and opportunity. It’s really about

organizations.

establishing our presence and helping

Studies show that a well-managed,

“Our company looks at all of the

Enhancement,

Society

for

AABE’s

programming,”

industry colleagues understand what

dimensions of diversity,” said Gonzalez.

In 2004 Exelon hosted a Latino

“It is more than just gender or skin color.

Recruitment Series in conjunction with

The many dimensions that make up an

the

Career

Members of the Network of Exelon

individual’s personality include ethnicity,

Enhancement. Members from Exelon’s

Women (NEW) have attended the

sexual orientation, physical ability, recre-

Hispanic Employee Network Group

Society of Women Engineers conference

ational habits, educational background,

(ENG)—Organization of Latinos at

to help Exelon with recruiting. According

parental status, marital status, and more.

Exelon—were on hand to talk about the

to NEW co-founder Meg Amato, several

many career opportunities at Exelon.

NEW members have developed relation-

“There is a war for talent, and to

Hispanic

Alliance

for

we’re doing at Exelon.”

ships with young women engineers who

attract and retain the best candidates,

Stephanie Hickman, vice president

companies must offer benefits that meet

of legislative affairs at Exelon, sits on the

the diverse needs of their employees,”

national board of directors for the

Exelon also partners with colleges

said Gonzalez. “We offer a competitive

American Association of Blacks in

and universities that support diversity.

benefits and compensation package that

Energy. “By being present at the table, we

The company has developed relation-

are just beginning their careers.

Profiles in Diversity Journal

March/April 2006

31


John W. Rowe

Exelon

ships with several schools

engineering

including Howard University,

Interns go through orientation, mentor-

Tuskegee University, North

ing, and goals assessment, just as a regu-

Carolina A&T State University,

lar employee would. The interns are pro-

and the University of Puerto

vided an experience that the company

Rico.

hopes will make them want to return to

“Our

“Attracting and retaining a diverse work force is where our diversity strategies begin. We work with a variety of internal groups, such as our Employee Network Groups, and external groups, such as national minority organizations, to help us with hiring and retention. We’ve found that an effective way to reach our customers is through a work force that they can relate to.”

employees

are

to

communications.

work for Exelon after graduation.

actively involved in career fairs

Erin Malone is a recent intern suc-

and getting out to meet

cess who made the transition to full time

students at their schools to tell

employee as an Exelon Generation com-

them about career opportuni-

munications associate. “The Exelon

ties at Exelon, our Employee

summer internship provided me with

Network Groups, and what we

real world experience of what life after

are doing to advance diversity,”

college would be like. The people here

said Gonzalez.

mentored me and exposed me to every-

“Partnerships at the community

day situations. It was invaluable.”

level really help us to identify top-level,

Another element in attracting a

diverse candidates while providing us

diverse work force is how Exelon com-

with visibility in the community,” said

municates its diversity through multi-

Bob Corbett, director of recruiting and

cultural advertising in the communities

human resources support for Exelon.

in which it operates. Diverse employees

“At career fairs, we often have recent

of Exelon’s energy delivery businesses,

new hires on hand to give potential can-

ComEd and PECO, reinforce the com-

didates a feel for what working at Exelon

panies’ dedication to customer service,

is all about. A recruiter can only say so

reliability, and safety. The ads are cus-

much about what the job of a nuclear

tomized to the Hispanic and African

engineer is like, but someone who actu-

American communities and reinforce

ally holds that job at Exelon can give a

that Exelon is an employer that values

much broader, day-to-day perspective for

diversity.

those looking to work at our company.” Talented individuals also come

Rey Gonzalez Vice President, Diversity Exelon

32

from Exelon’s internship program. The

Retaining Talent

program offers a wide variety of intern-

Once talented individuals are hired,

ship

Exelon has strategies for developing and

Profiles in Diversity Journal March/April 2006

opportunities,

from

nuclear


Special Feature

Exelon

ComEd Meter Reading Supervisor Bruce Douglas (right) offers some advice to ComEd Meter Reader Dave McCormick.

that are recognized as diversity leaders as well as share our own best practices.” In 2004, Exelon organized and hosted a two-day diversity benchmarking summit. Several companies recognized as leaders in diversity attended the event including Abbott initiative

associated

Laboratories,

with

Allstate,

retaining them. The company places an

opment

emphasis on valuing diversity and on

Northwestern University. Women repre-

Kraft Foods, Procter & Gamble, and

engaging employees on the job through

sented 30 percent of the participants in

Sprint.

special assignments, training and devel-

the 2004 program.

The company conducts an employee

Employees also are provided with

opinion survey every other year to

diversity training and introduced to

identify areas for improvement. In

opment is a key factor in retaining

the

employees, so we have initiated programs

support

opment, and mentoring. “We’ve found that employee devel-

that

offer

addition, Exelon conducts a diversity

of

varied

retention study to understand why high

that keep employees engaged and moving

backgrounds. Current groups represent

performing employees would voluntarily

upward in the organization,” said S. Gary

Asian Americans; African Americans;

leave the company. Part of the study

Snodgrass, executive vice president and

Hispanics; the gay, lesbian, bisexual, and

examines the unique factors that con-

chief human resources officer at Exelon.

transgender communities; and women.

tribute to minorities and women leaving

“We’ve established a successful leadership

Exelon’s ENGs offer an excellent oppor-

Exelon. Exit interviews also provide the

mentoring program for high potential

tunity for employees to network, improve

company with valuable information on

managers, including women and minorities,

their business literacy skills, and provide

retaining talented people.

that pairs employees with senior leaders.”

feedback to leadership.

company’s to

ENGs

employees

The importance of recruiting and

Exelon’s Fast Forward leadership

“We consistently review our policies

retaining talented individuals cannot be

training program targets first-line super-

and practices to track progress against our

overstated in today’s global marketplace.

visors, managers, high potentials, and

objectives for recruiting and retaining

Exelon recognizes its efforts to develop a

executives; and the Exelon Leadership

diverse employees,” said Snodgrass. “We

diverse work force are as important as any

Institute is a best-in-class executive devel-

also benchmark against top companies

other business initiative.

Profiles in Diversity Journal

March/April 2006

33


John W. Rowe

Exelon

Creating opportunities for MWBEs is the heart of Exelon’s Supplier Diversity Program Creating opportunities for and strengthening relationships with minorityand women-owned business enterprises (MWBEs) is the focus of Exelon’s Supplier Diversity Program.

s one of the four pillars of the com-

nent of Exelon’s overall supply organiza-

pany’s diversity strategy, the

tion,” said Craig Adams, senior vice pres-

Supplier Diversity Program seeks to meet

ident and chief supply officer at Exelon.

diversity expenditure goals that are set

“Spending with diverse suppliers is

each year.

increasing, not only as a result of the cen-

A

“Another way in which the company

tralization of the supply organization in

expresses its commitment to diversity and

2004, but also because of a more strategic

to the economic development of the

focus around our supplier diversity and

communities we serve is through supplier

sourcing efforts. We aim to provide as

diversity. We have a strong Supplier

many opportunities as possible for

Diversity Program that is embraced by

MWBE suppliers and beyond. The

corporate executive management and

program has now expanded from focus-

supported in the supply organizations

ing not just on opportunities for

and business units. Our efforts are paying

MWBEs, but to advocate expansion of

off, and we have been pleased that our

opportunities for minority professionals

diversity spend has exceeded the goals for

in majority-owned professional service

two years in a row. We anticipate that in

firms doing business with us.”

2006 that trend will continue,” said

A first stop for many would-be

Emmett Vaughn, manager of supplier

suppliers is the supply Web page on

diversity at Exelon.

Exelon’s corporate Web site (www.exelon

In 2005, Exelon’s diversity spend

corp.com) that provides existing and new

goal was 8.5 percent, and the diversity

suppliers with information about the

spend for the year totaled 10.8 percent.

materials and services purchased by the

This beats the company’s previous best-

company, supplier self-service tools, and

year in 2004. That year, the diversity

who to contact. Businesses register their

spend goal was 7 percent, and Exelon

information online to be added to the

reached 7.9 percent. Exelon’s 2006

supply organization’s database. In 2005,

diversity spend goal is 11 percent.

almost half of the nearly 2,000 suppliers

“The program is a central compo34

Profiles in Diversity Journal March/April 2006

who had registered online were diverse


Special Feature

suppliers. An internal search engine tool

Supply personnel are encouraged to

was also created to make it easier for the

participate in supplier diversity organi-

supply organization to search for quali-

zations both locally and nationally. They

fied diversity suppliers in the database.

include the National Minority Supplier

Exelon

Development Council and its regional

About the Supplier Diversity Program

affiliates in Pennsylvania, New Jersey,

Exelon’s Supplier Diversity Program is

Minority

multi-tiered and based on primary and

Agency;

secondary diversity suppliers.

Enterprise National Council and its

Delaware, and Illinois; the National Business the

Development

Women’s

Business

“We encourage our primary suppli-

affiliates in Philadelphia and Chicago;

ers to develop their own supplier diver-

and the National Trade Bureau of the

sity programs in subcontracting Exelon-

RainbowPUSH Coalition. There are

“Exelon has made great

related work.

They are required to

several regional supplier diversity advo-

progress in increasing our

report back to us on their expenditures

cacy organizations in the Exelon mar-

diversity spend and in

on a regular basis,” said Vaughn.

ketplace that are supported in the com-

creating opportunities for

pany’s outreach.

MWBEs with the company.

Vaughn, along with Supplier Towanda

In 2004, Exelon established a

McNeil, lead the diversity charge in

Corporate Supplier Diversity Council to

accomplish, and we will

supply. Both are dedicated to designing,

identify key opportunities and develop

continue to work diligently

executing, coordinating, implementing,

action plans to increase spend with

to improve our programs

monitoring, and evaluating Exelon’s

diversity suppliers. The council is com-

to be world class in

Supplier Diversity Program.

prised of executive leadership represent-

supplier diversity.”

Diversity

Coordinator

“The program is very thorough and

ing different departments including

involves written supplier diversity poli-

legal, supply, finance, and members of

cies and procedures, procurement

the corporate diversity office.

expenditure goals, third-party certifica-

council is responsible for improving

tion, and an extensive community out-

methods of reporting, measuring and

reach effort,” said Vaughn.

assessing diversity spend data, partner-

The

Supplier diversity management and

ing with external organizations to devel-

representatives participate in events and

op diversity suppliers, and forging effec-

meetings to reach out to agencies, organi-

tive relationships between Exelon and

zations, companies, and individuals to

suppliers.

increase awareness of Exelon.

There is still more to

Emmett Vaughn Manager, Supplier Diversity Exelon

“The cross-functional Supplier

Profiles in Diversity Journal

March/April 2006

35


John W. Rowe

Exelon

Diversity Council helps to foster a culture

three components: awareness, action, and

“We want to promote the impor-

of ownership throughout Exelon,” said

assessment to promote the utilization of

tance of creating opportunities for diverse

Delia Stroud, vice president, supply busi-

diverse staff by MWBE law firms and

suppliers, and recently exhibited at the

ness operations and governance, and the

non-MWBE firms.

National Minority Supplier Develop-

council’s executive sponsor. “Its key ini-

ment Council. The council has asked us

tiatives are critical to achieving a world-

example

Business

to be one of only 11 national companies

class supplier diversity program.”

Enablement initiative within supplier

to serve on a task force to create models

diversity at Exelon. Profile data is com-

for supplier diversity excellence,” said

Minority-Owned Businesses and Community Outreach

piled for the firms, and they are encour-

Vaughn.

aged to build teams of outstanding

Exelon was honored by the Women’s

Examples of Exelon’s commitment to

lawyers from diverse backgrounds for

Business Enterprise Regional Council of

supplier diversity include its work with

staffing Exelon work. Exelon holds the

Greater Philadelphia as “Company of the

MWBE banks and law firms.

firms accountable for their institutional

Year” for its support of Women Business

diversity as well as for the diversity of staff

Enterprises in 2005.

agreement with minority and community

working on Exelon projects.

Exelon’s

finalist for the “Corporation of the Year”

banks for $50 million in Philadelphia,

legal department measures each firm’s

award from the Minority Supplier

Chicago, and other regions served by the

progress through reports that outline

Development Council of Pennsylvania,

company. The new agreement replaced a

diversity demographic data.

New Jersey, and Delaware, and received

In 2005 Exelon renewed a credit

of

the

Diverse

Exelon was also a

$45 million arrangement made in 2004.

Exelon’s legal department’s own

an award for exceptional contribution

The banks include Asian Bank of

diversity efforts and profile are supplied

at their Midwest Regional Business

Philadelphia; Banco Popular, with loca-

to the outside firms as part of the program.

Opportunity Conference in 2005. This

tions in Philadelphia and Chicago;

Each year Exelon will announce an honor

year Exelon has been named by Hispanic

Washington D.C.’s Adams National Bank

roll to acknowledge outside firms that

Trends magazine as one of the “Top 50

(the nation’s largest women-owned bank);

display an outstanding commitment to

Companies in America for Supplier

the United Bank of Philadelphia; City

diversity and inclusion.

Diversity.”

“The program puts our outside firms

“Exelon has made great progress

on notice that we will make decisions on

in increasing our diversity spend and in

In addition to spending over

the level of work assigned to each law

creating opportunities for MWBEs with

$900,000 with minority-owned law

firm based not only on the traditional

the company.

firms, Exelon’s legal department encour-

factors of cost and performance, but also

accomplish, and we will continue to work

ages diversity within its specialized and

on the firm’s diversity commitment,” said

diligently to improve our programs to be

full-scale legal services providers through

Sylvia Bateman, assistant general counsel

world class in supplier diversity,”

an initiative launched in 2005 called the

for Exelon and diversity coordinator for

said Vaughn.

AAA Diversity Program, that focuses on

the legal department.

National Bank of New Jersey; and Citizens Trust Bank in Atlanta, among others.

36

The AAA Diversity Program is an

Profiles in Diversity Journal March/April 2006

There is still more to


Special Feature

Exelon

PHOTO • JOHN WEINSTEIN, FIELD MUSEUM

Patti White, manager, corporate citizenship, Exelon, poses with girls from the Field Ambassador school program at the ticket launch event at The Field Museum for Tutankhamun and the Golden Age of the Pharaohs, opening May 26, 2006. Exelon is the Chicago presenting sponsor.

Exelon’s commitment to the community extends beyond just providing power; through contributions and volunteerism, Exelon is making a difference. xelon has a strong tradition of con-

ment, and arts and culture. Corporate cit-

tributing to civic and community

izenship activities include contributions,

organizations that are committed to

sponsorships, employee volunteer activi-

and PECO, believe

improving the quality of life in the

ties, executive involvement on outside

that being an industry

communities where we operate. In the

nonprofit boards, and in-kind donations.

leader means not only

last five years, we’ve given more than

“Our company has a history of over

$87 million to nonprofit organizations,”

100 years of service, and community

said Steve Solomon, senior manager of

involvement has always been a part of the

provider of energy

corporate citizenship at Exelon. “Our

company’s culture,” said Solomon.

services, but also

employees have given their time and

“Exelon’s commitment to the community

money to support numerous charitable

starts at the top with our CEO John

activities that have brought significant

Rowe. He is a strong supporter of

part of the diverse

benefits to communities in northern

Exelon’s corporate citizenship program

communities in

Illinois, Pennsylvania, and the communities

and gives his time as a board member to

which it

surrounding our generating stations.”

several nonprofit organizations, including

Exelon and its subsidiaries, ComEd

being a reliable

being an important

provides power.

“E

Through its “Energy for the

service as chairman of the board of

Community” program, Exelon and its

trustees of the Chicago History Museum,

employees provide support in four

chairman of the Civic Committee of the

keys areas: neighborhood and economic

Commercial Club of Chicago, and chair-

development, education, the environ-

man of the board of directors of the Mies

Profiles in Diversity Journal

March/April 2006

37


John W. Rowe

Exelon

van der Rohe Society at the Illinois Institute of Technology.”

Neighborhood and Economic Development To help strengthen communities, the company supports a variety of local civic organizations such as Access Living of Metropolitan Chicago, Habitat for Humanity of the Delaware Members of NEW (Network of Exelon Women) at the 2005 Avon Walk for Breast Cancer in Chicago. Members raised $50,000 for breast cancer research.

Valley, Philadelphia and Chicago Cares, and Big Brothers/Big Sisters. Exelon’s employees are key intranet site.

munities through their volunteerism.

Network Groups (ENGs) are also a great

Each year hundreds of employees support

source for employees who want to volun-

“We go beyond just serving in our

the Philadelphia and Chicago “Serve-A-

teer, as they are involved with many local

local communities to help those in need

Thons,” volunteer days for employees to

organizations in terms of community out-

in other parts of the country and the

improve schools and community centers

reach and fundraising.

world. After Hurricane Katrina, our

for research for a cure for the disease.

Members of the Organization of

employees stepped up to assist, not only

Latinos at Exelon (OLE) represented

through monetary contributions, but by

“Employees have shown remarkable

Exelon at the 2005 Spanish Coalition for

volunteering.

leadership in community service by

Jobs annual fundraiser. The Exelon

whom are members of our ENGs, helped

repeatedly reaching out to help those in

African-American Members Association

to staff phone lines at the Salvation Army

need, from food drives to fundraising,”

(EAAMA) is focusing its 2006 agenda

Disaster Command Center in suburban

said Solomon.

on education, supporting mentoring and

Chicago,” said Meg Amato, manager of

To make it easier for employees to

literacy programs. Exelon volunteers in

corporate citizenship for Exelon and

identify where help is needed, Exelon

Philadelphia participate annually in the

founding officer of NEW.

works with Volunteer Match to provide

American Cancer Society’s Making Strides

In addition, the company sponsors

employees with easy access to volunteer

Against Breast Cancer Walk. Twenty-one

an array of family-centered events includ-

opportunities with over 36,000 organiza-

members of the Network of Exelon

ing the Lincoln Park Zoo Lights Festival

tions across the country. Employees can

Women (NEW) participated in a similar

in Chicago, PECO Primates zoo exhibit

access the page through the company’s

event, the Avon Walk for Breast Cancer in

in Philadelphia, and the Chicago and

in neighborhoods that have otherwise been neglected.

38

Exelon’s Employee

Chicago. NEW members raised $50,000

to developing relationships within com-

Profiles in Diversity Journal March/April 2006

Employees, several of


Fort Lee outdoor film festivals, as well as

Academy program,

family events at the Philadelphia

which strives to

Wachovia Complex.

improve school

Exelon

PHOTO • MARK A. LOVRETIN, PSEG

Special Feature

public students’

Education

academic

Exelon’s focus on education is an invest-

occupational skills.

ment in the future of the communities in

Ninety percent of

which it operates. Exelon and its sub-

graduates from the

sidiaries fund educational initiatives that

program continue

encourage students to stay in school; pro-

with higher educa-

mote math and science education through

tion or successful job placements.

and

Tom Oliver, executive director and CEO, NAHP Foundation; Rey Gonzalez, vice president, diversity, Exelon; Jeanette Ramos, deputy mayor of Newark; and Antonio Ibarria, publisher of El Especial; at the launch of the 2005 National Hispanic Scholarship Directory.

tional investment during the past five

partnerships; and foster development

Exelon also works with the Spanish

years by matching nearly 4,200 employee

through scholarships, mentoring, and

Coalition for Jobs and has been a long-

donations to educational institutions

internships.

time supporter of El Valor, an organiza-

totaling more than $1.2 million.

“Education allows people to see their

tion that develops Latino leadership and

full potential and opens doors to career

promotes educational excellence among

Environment

and

Hispanic Americans.

Improving and preserving the environ-

life

opportunities,”

said

Rey

For the past three years, Exelon has

ment is another key focus area of Exelon’s

Exelon, partnering with the United

been the primary sponsor of The

corporate citizenship program. Exelon

Way, sponsors the Exelon/United Way

National Hispanic Scholarship Directory.

supports organizations and initiatives

Stay-in-School program in Chicago that

This directory compiles all scholarships

that improve and protect the environ-

aims to keep at-risk students in school.

available to Hispanic students through-

ment and biodiversity. Its focus is on

The program reaches out to select area

out the United States, and by its support,

environmental education, conservation,

high schools in an effort to reduce drop-

Exelon hopes to encourage Hispanic stu-

and preservation; developing cleaner

out rates for African American and

dents to achieve their educational and

sources of energy; protecting endangered

Latino students. The goal of the program

career goals. In 2005, The National

species; and beautifying neighborhoods.

is to keep the 909 students in school and

Hispanic Press Foundation, which com-

Organizations that the company

help them transition to the next grade

piles the directory, presented Exelon with

works with include the Chicago Park

level, and hopefully go on to attend col-

an appreciation award in recognition of

District, The Nature Conservancy, and

lege. Last year, all 909 participating stu-

its support of the Hispanic community’s

the

dents achieved the goal of staying in

education efforts.

Conservation and Natural Resources,

Gonzalez, vice president, diversity.

Pennsylvania

Department

of

In Philadelphia, Exelon has a

Through its Matching Gifts for

which the company is working with to

partnership with Philadelphia’s public

Education Program, the company has

replace millions of trees lost to develop-

school system through the Philadelphia

leveraged employee support for its educa-

ment in the Philadelphia five-county

school.

Profiles in Diversity Journal

March/April 2006

39


John W. Rowe

Exelon

region. In Chicago, the company

in Chicago beginning in May. Our

provided $5.5 million to fund the

sponsorship of exhibitions with the

solar-powered Exelon Pavilions in

museum is just one of many diverse

Millennium Park.

cultural organizations that we fund,”

In 2004, members of OLE partici-

“In the last five years, we’ve given more than $87 million to nonprofit organizations. Our

pated in the Annual Humboldt Park

Exelon supports numerous multi-

Clean-up in Chicago as part of Earth

cultural programs in Philadelphia and

Day activities. The company supports

Chicago. These sponsorships include

environmental education for children

the Mexican Fine Arts Center Museum,

and families through a partnership with

the DuSable Museum of African

the Chicago Park District. As a part of

American History, and Puerto Rican

the partnership, the company estab-

Arts Alliance’s Puerto Rican Cuatro

lished the Exelon Environmental Fellow,

Festival.

the industry’s only environmental

Exelon has been nationally recog-

fellowship position. The program offers

nized for its community service and

an innovative teaching approach to

commitment to diversity. In 2005 and

math and science for Chicago Public

2006, Fortune ranked Exelon the most

School students.

admired electric and gas utility in the

employees have given their time and money to support numerous charitable activities that have brought significant benefits to communities

In 2005 Mayor Richard M. Daley

communities surrounding our generating stations.” Steve Solomon Senior Manager of Corporate Citizenship Exelon

40

nation, with highest marks in social

first

responsibility; Forbes named Exelon to

“Environmental Excellence Award”

its 2005 list of the most charitable com-

from the city of Chicago for environ-

panies; Latin Business Magazine listed

mental leadership and its partnership

Exelon in its 2005 Corporate Diversity

with the Chicago Park District.

Honor Roll; and Crain’s Chicago Business

presented

Exelon

with

the

in northern Illinois, Pennsylvania, and the

said Solomon.

highlighted

Exelon

on

its

2005

Arts & Culture

Corporate Giving List.

“Supporting arts and cultural institu-

Rowe was recently recognized by

tions attracts business, people, and

Chicago State University for his leader-

tourism. The areas in which we operate

ship in diversity and community efforts.

have a rich artistic and cultural heritage

“Communities contribute to the

that we are proud to support. This year,

growth of our businesses, and in turn,

we are thrilled to be the Chicago

Exelon believes in contributing to the

sponsor of Tutankhamun and the Golden

improvement and growth of the

Age of the Pharaohs at The Field Museum

communities we serve,” said Solomon.

Profiles in Diversity Journal March/April 2006

CEO John


Special Feature

Exelon

ComEd Chairman and CEO Frank M. Clark introduces the guest speakers at the 2006 Black History Month event “Black Leadership in the Energy Sector,” presented by ComEd and EAAMA (Exelon African-American Members Association).

Diversity education and support flourish at Exelon through its employee network groups employees to connect with one another,

The groups are self-initiated, volun-

discuss cultural nuances in the workplace,

tary, corporate-wide, and inclusive.

and identify common issues and experi-

Current ENGs represent various commu-

ences. They provide a positive forum

nities, including Asian Americans;

for open discussion about diversity and

African Americans; Hispanics; the gay,

provide senior leadership with feedback

lesbian,

T

on diversity issues.”

communities; and women.

Exelon’s commitment to diversity

The ENGs serve as a resource to the

Each group operates under a consti-

and support the company’s belief that

company and to its employees, strengthen-

tutional foundation with an elected lead-

diversity is a business imperative. They

ing employee links, raising diversity aware-

ership structure. Each group has an exec-

provide education and support to

ness, sharing knowledge, improving recruit-

utive sponsor who is at the vice president

Exelon’s diverse work force. With their

ment and retention, promoting personal

level or above. The sponsor serves as a

help, Exelon is transforming its culture

growth, and bringing insight to Exelon’s

mentor and sounding board for group

and its future to become the best electric

strategies and goals. They also serve as a

initiatives, while being an advocate

and gas company in the country.

forum for education, communication, and

within senior management.

An integral part of Exelon’s diversity strategy is its Employee Network Groups (ENGs). hese groups are the embodiment of

bisexual

and

transgender

“We need to have representation,

professional development. Externally, they

“Our CEO John Rowe is the execu-

but we must go beyond representation so

work to strengthen corporate citizenship,

tive sponsor for Exelon PRIDE, the gay,

that all of our employees feel valued and

alert the company to new market oppor-

lesbian, bisexual and transgender ENG,”

respected,” said Rey Gonzalez, vice presi-

tunities, and build ties to the communi-

said Gonzalez. “The company has a

dent, diversity. “Our ENGs are a way for

ties in which the company operates.

tremendous commitment to diversity

Profiles in Diversity Journal

March/April 2006

41


John W. Rowe

Exelon

stemming from his genuine passion for

At this year’s roundtable, ENG

diversity.” Rowe has been honored for

members took part in a focus group dis-

his diversity efforts with El Valor

cussion about the documentary “Ties

Corporation’s

Visionary

That Bind.” The documentary, which

“Corporate

first aired in 2004, profiles women from

Leadership Award” from the Spanish

Chicago’s spiritual communities who

Coalition for Jobs in 2002, and with the

have come together to connect commu-

Anti-Defamation League’s “World of

nities across faith, race, and nationality.

Difference” award in 2000. In 2005 he

Exelon provided funding for the docu-

received the CEO “Ambassador Award”

mentary and is also providing funding for

from Boardroom Bound®, which honors

the discussion guide. The feedback from

business leaders who recognize that a

the ENGs and from other groups and

diverse boardroom is a business imperative.

companies will be used to develop the

In developing their annual objec-

discussion guide that will be available at

tives, ENGs must consider the company’s

town hall meetings nationwide in con-

strategic diversity goals and define how

junction with the national syndication of

their proposed objectives support the

the documentary this year on the fifth

constituency within the company.

anniversary of September 11th.

Award”

in

“Corporate 2003,

the

“The ENGs have been a great sup-

Common programs among all

meetings are a great way

port to the communities we serve. For

ENGs include networking for group

for our employees to net-

example, the Organization of Latinos at

members; roundtables that are held quar-

work not only with their own

Exelon have a scholarship fund that ben-

terly to solicit feedback from members;

ENG members, but also with

efits Hispanic students and promotes

and mentoring to help less experienced

members of different ENGs.”

education,” said Gonzalez.

members to assist with career develop-

Groups are required to submit their

ment. Guest speaker sessions are held

goals and objectives to the diversity office and

with experts from a variety of fields to

their executive sponsor. Quarterly and year-

provide expertise on specific diversity or

end reports are submitted to the diversity

business issues, and members assist with

office and distributed to senior leaders.

recruiting efforts for targeted groups.

Martha Garza Director, Diversity Exelon

to celebrate cultural awareness months.

“Annually, the Corporate Diversity

The ENGs encourage attendance at

Office hosts an ENG roundtable discus-

conferences that are geared toward pro-

Community

sion designed to identify common issues

fessional development and leadership,

(AACES), hosts an annual Asian Heritage

between ENGs,” said Gonzalez. These

and members contribute to civic and

month event called Taste of Asia. Asian

meetings have identified partner organi-

community programs and activities.

food is served, and artifacts from different

zations and emerging trends in the workplace, among other things.

42

“These [quarterly business]

The groups also cultivate cultural pride, and special activities are organized

Profiles in Diversity Journal March/April 2006

Exelon’s Asian group, Asian American for

Exelon

Success

Asian countries are displayed. Beginning in 2004, the diversity


Special Feature

Exelon

office teamed with the ENGs to sponsor

Individual group intranet pages share

“We’ve developed relationships with

quarterly business literacy workshops.

information on events and volunteer

other companies’ women’s groups, such

Past workshops have featured senior leader-

opportunities, business literacy, and meet-

as

ship presentations on the company’s

ing minutes. The pages feature discussion

PricewaterhouseCoopers, so it makes for a

“Exelon Way” business model for integra-

boards, photos from past group events, and

great networking opportunity,” said Amato.

tion and centralization and about national

newsletters to keep members connected.

those

from

GE,

KPMG,

and

OLE

energy policy.

NEW

Exelon’s Hispanic ENG, Organization

ing quarterly business meetings at which

The Network of Exelon Women (NEW)

of Latinos at Exelon (OLE), continues

senior leaders speak on a variety of busi-

is very active in professional develop-

to grow in membership, drawing

ness topics. Two ENGs will work togeth-

ment, personal development, and com-

employees

er to organize the meeting, which is open

munity service. Meg Amato, manager of

company. OLE emphasizes the impor-

to all employees to attend.

corporate citizenship at Exelon and one

tance of education to advancement.

“These meetings are a great way for

of the founding officers of the group and

Through various fundraising events,

our employees to network not only with

a past president, says that being a mem-

OLE raised $12,000 for its scholarship

their own ENG members, but also with

ber has been an enriching experience.

fund in 2005.

members of different ENGs,” said Martha

“We help each other as well as the com-

Hispanic Leadership Institute (USHLI)

Garza, director of diversity for Exelon.

munity. For instance, we’ve instituted an

scholarship fund was awarded a $2,500

annual mentoring outing with employ-

donation from OLE. Scholarship dona-

ees, known as the Mentoring Road Trip.

tions also were provided to the Hispanic

The ENGs also collaborate on hold-

It’s not all work and no play; the groups also host social outings such as

from

throughout

the

The United States

parties and picnics. Groups have enjoyed

Our focus in the community has

outings to Exelon-sponsored cultural

been breast cancer. Last year our team

(HACE); La Voz Latina, an organization

events such as the annual Puerto Rican

raised more than $50,000 at the Avon

benefiting the Hispanic community;

Cuatro Festival and the GIANTS: African

Walk for Breast Cancer in Chicago.

and Joliet Junior College foundation—

Dinosaurs exhibit in 2004.

We’ve been fortunate to have great lead-

Latino Unidos.

“All of the groups come together with members of senior leadership at our annu-

ership from our executive sponsor Ruth Ann Gillis.”

Alliance

for

Career

Enhancement

A recent example of how the ENGs have been a resource for company business

al ENG diversity galas,” said Garza. “We

Gillis, senior vice president of Exelon

initiatives is the role OLE members played in

hold one in Chicago and one in

and president of Exelon Business Services

the launch of Spanish language content on

Philadelphia. They are jointly planned and

Company, has been a great resource for the

Exelon’s Web site, www.exeloncorp.com.

attended by the ENG members, and it

group and is particularly active in organiz-

Several OLE members reviewed copy

is a wonderful opportunity to get together

ing NEW’s annual leadership panel.

and provided input on the content of the

and celebrate diversity at Exelon.” CEO

Senior-level women executives from some

Web site.

John Rowe is the keynote speaker at the

of the region’s top corporations are guest

annual galas. Last year, nearly 1,500 people

speakers. The event is open to the business

AACES

attended the events.

community to attend.

Members of Asian Americans Community

Profiles in Diversity Journal

March/April 2006

43


John W. Rowe

Exelon

Exelon PRIDE Exelon PRIDE is the company’s gay, lesbian, bisexual and transgender (GLBT) ENG.

According to Joe

Powers, process manager for the Customer Contact Center at ComEd and PRIDE president, the group gives members a feeling of connectedness. “Our members are pleased with the advancements that have been made for NEW Co-Founder Meg Amato, right, with speakers at the recent NEW panel, Cathy Coughlin, middle, President and CEO AT&T Midwest, and Linda Heagy, left, Managing Partner, Heidrick & Struggles, Chicago.

GLBT employees within the company, and Exelon PRIDE continues to work with our management to ensure that Exelon is an attractive workplace for

for Exelon Success (AACES) participated

this

Month.

members of the GLBT community.

in an event with Chicago Park District

Activities included a literary event with

Our executive sponsor is John Rowe, and

kids at the Exelon-sponsored Splendors of

nationally recognized authors and a

he has been extremely supportive of all of

China’s Forbidden City: The Glorious

blood donation drive with the American

the ENGs, particularly of PRIDE,” said

Reign of Emperor Qianlong exhibit at

Red Cross.

Powers.

Black

History

AACES

“Our 2006 EAAMA agenda is

PRIDE works closely with the diver-

members helped to teach the kids about

focused on sponsoring education-based

sity office to provide feedback on areas of

Asian culture. The group also hosts guest

initiatives in the community and increas-

improvement for GLBT employees as

speaker events. In 2004, local TV anchor

ing the business acumen of our member-

well as on sponsorship activities. In June

Judy Wang of CLTV in suburban

ship.

We’re working on an adopt-a-

2005, Exelon PRIDE organized a semi-

Chicago addressed the group.

school program, mentoring, and literacy

nar called “Out in the Workplace” as part

The AACES 2006 agenda includes

programs. EAAMA will also sponsor an

of Chicago’s Citywide PRIDE activities.

community service, such as a toy drive

essay contest for junior high school stu-

Citywide PRIDE aims to bring together

and a day with the elderly. AACES also

dents from Chicago’s south side. The con-

GLBT employee affinity groups from

plans personal development and financial

test will focus on why Martin Luther King

different companies to learn from one

planning seminars.

Jr.’s legacy is still important today. A sav-

another and discuss issues important to

ings bond prize will be awarded to the

the GLBT community.

Chicago’s

44

year’s

Field

Museum.

EAAMA

first, second, and third place winners,”

Exelon’s ENGs continue to grow and

The Exelon African-American Members

said Jerome Cole, human resources man-

thrive as they work to create an inclusive

Association (EAAMA) planned an exten-

ager for Exelon subsidiary ComEd and

work place and give back to their

sive series of events and programs around

president of EAAMA.

communities outside of the workplace.

Profiles in Diversity Journal March/April 2006

PDJ


Profiles in Diversity Journal

March/April 2006

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Interview

Punam Mathur MGM MIRAGE

Diversity is a sure bet at MGM MIRAGE With diversity a core business value at MGM MIRAGE, Punam Mathur, senior vice president of corporate diversity and community affairs, makes it her business to put its principles into practice. Here, Punam talks about her work to keep diversity at the forefront of the organization. Backed by strong support at the highest levels of the company, she’s on a mission to make the diverse, inclusive culture of MGM MIRAGE a role model in the hotel and gaming industry.

Please give your definition of diversity and inclusion. At MGM MIRAGE, our mission for diversity is as follows: In order for MGM MIRAGE to be first and best, we accept the accountability to acknowledge and value the contributions of all people.

GLOBAL / MARKET / INDUSTRY ISSUES Describe your company’s global presence, including the numbers of employees, international businesses and branches, market share, and potential. MGM MIRAGE, one of the world’s leading and most respected hotel and gaming companies, owns and operates 23 properties in Nevada, Mississippi, and Michigan and has investments in four other properties in Nevada, New Jersey, Illinois, and the United Kingdom. MGM MIRAGE also has announced plans to develop Project CityCenter, a multibillion-dollar mixed-use urban development project in the heart of Las Vegas, its headquarters, and has a 50 percent interest in MGM Grand Macau, a 48

hotel-casino resort currently under construction in Macau, a Special Administrative Region of China. The company has approximately 70,000 employees and ranks 44th on the Fortune 1000 list. MGM MIRAGE supports responsible gaming and has implemented the American Gaming Association’s Code of Conduct for Responsible Gaming at its properties. MGM MIRAGE also has been the recipient of numerous awards and recognitions for its industry-leading diversity initiative and its community philanthropy programs. How does a company as fastchanging as yours keep up with diversity development throughout the organization? Diversity is a core business value at MGM MIRAGE. To institutionalize this work, the company launched Diversity Champions, the first in-depth educational program of its kind in the gaming industry. Today, almost 1,200 employees throughout our enterprise have received intense training, becoming certified champions or ambassadors who

Profiles in Diversity Journal March/April 2006

impart the values of diversity within their respective departments. Additionally, many of these employees are the public’s first interface with our company, and, as such, their presence and demeanor communicate our company’s commitment each day. Are there unique opportunities in your particular industry for implementing diversity programs? In 2000, MGM MIRAGE became the first company in the gaming industry to launch a voluntary diversity initiative. Subsequently, the American Gaming Association (AGA) instituted its own effort on behalf of the industry. There is ample room and opportunity for diversity within our industry.

CORPORATE LEADERSHIP Can you give specific examples of leadership commitment to diversity at MGM MIRAGE? What financial and human resources are allocated to diversity? It is best to discuss how our company is organized for diversity. Our chairman


Interview

Punam Mathur MGM MIRAGE

Punam Mathur, with J. Terrence Lanni, Chairman & CEO, MGM MIRAGE, and Alexis M. Herman, chair of the MGM MIRAGE diversity committee.

and CEO made diversity a moral and business imperative in May 2000. In doing so, he established a board-level diversity committee. Alexis Herman, the 23rd U.S. secretary of labor, chairs the committee, which is charged with developing policy and governing the implementation of diversity within the company. As such, the company has specific policies in place, including those that require minority participation in construction and purchasing bids. A dedicated department, Corporate Diversity and Community Affairs, was established, with reporting authority to the chairman and CEO. The company also created a Corporate Diversity Council, which meets to establish annual diversity goals and objectives. Is diversity a compensable annual objective for the executive management team? How do you reward special initiatives? What accountability do you employ to meet objectives? Presidents of each of the MGM MIRAGE properties are required to include specific diversity goals in their annual business plans. This strategy is

aimed at driving diversity values deeper into our operations. How does your organization train its leadership in cross-cultural competencies? Our industry-leading Diversity Champions training is an important tool in this regard. Several of our property presidents are participating or have participated in the training with their respective management teams. How are decisions about diversity made in your organization? There is a Corporate Diversity Council. Additionally, specific divisions also have diversity councils respective to their business focus, such as our Construction Diversity Council and Purchasing Diversity Council. Currently, some of our property presidents are creating diversity councils. What factors make you and your team confident that momentum is moving in the right direction? MGM MIRAGE continues to be recognized by external organizations for its

industry-leading practices in diversity. Our company and members of our company team have received national and local acclaim for our support of diversity both within our organization and beyond, and in our host communities and nationwide. (See sidebar on page 51 for some of the honors received in 2005.) We feel very strongly that we are moving in the right direction with regard to diversity and inclusion strategies. The many awards and honors we receive are evidence that the communities we serve recognize and applaud our efforts.

EMPLOYEE INCLUSIVENESS Are employees more involved in the company than they were two years ago? In what ways? Diversity Champions training is one of the most popular training initiatives within our enterprise. Currently, there is a waiting list through 2006 for this training. Have you encountered those who perceive inclusion programs for underrepresented groups as being

Profiles in Diversity Journal

March/April 2006

49


Personal Profile

Punam Mathur MGM MIRAGE

COMPANY: MGM MIRAGE TITLE: Senior Vice President, Corporate Diversity and Community Affairs YEARS IN CURRENT POSITION: 10 EDUCATION: Studied special education, University of British Columbia, Vancouver, British Columbia FIRST JOB: Automated car wash. At age 13, I was an accomplished vehicle dryer. PHILOSOPHY: Say what you mean. Do what you say. Live a lot. Love a lot. Laugh a lot. Enjoy life in its many vivid dimensions. Remember that we only go around once. WHAT I’M READING: John Grisham FAMILY: Two extraordinary boys, Richard, 16, and Joseph, 7, and one spectacular daughter, Tai, 6 INTERESTS: Family

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Profiles in Diversity Journal March/April 2006


Interview

Punam Mathur MGM MIRAGE

MGM MIRAGE 2005 Diversity Awards

exclusionary for others? How do you address this? We recognize education as a critical element for overcoming misperceptions and misunderstanding. Thus, our Diversity Champions training is a key tool to help our work force, suppliers, and community partners understand the value of diversity within our organization. Please describe your method for orienting new hires into your culture, enriching employees’ awareness, and introducing new issues. The company offers all-day orientation sessions to all new employees. All new employees also are eligible for Diversity Champions training. Can you name specific ways your company supports development toward management positions? The company has a number of training initiatives, including 1) REACH, an intensive six-month supervisory training program designed and conducted in collaboration with Nevada Partners and the Culinary Union’s Training Academy in Las Vegas; 2) TAKE FLIGHT, a six-month training program that helps develop leadership skills by exposing first-level management participants to senior executives at Primm Valley Resorts; and 3) Bellagio’s Executive Mentoring Program, a nine-month program designed to prepare high-potential management-level employees for advancement to executive management positions. We also have established the Management Associate Program (MAP), a six-month training program designed to prepare recent college graduates for careers in management. Overall, these programs provide eligible employees with mentors, classroom instruc-

tion, job shadowing opportunities, and hands-on experience. These programs have contributed to the increase in diversity within the supervisory and management ranks of the company. How does the company include women and minority employees into the fabric of the organization? According to the 2004 Diversity Report, women comprise just over 50 percent of our work force. Additionally, female managers and those at higher levels comprise more than 42 percent of our work force. MGM MIRAGE is the only property on the Las Vegas Strip to name a woman president: Rene West, Excalibur Hotel and Casino.

• MGM MIRAGE, along with its employeefunded Voice Foundation, received the “Outstanding Corporation/Foundation of the Year” award from the Las Vegas Chapter of the Association of Fundraising Professionals (AFP).

• MGM MIRAGE was named among leading companies for gay and transgender employees by the Human Rights Campaign Foundation.

• Punam Mathur, senior vice president of corporate diversity and community affairs, was among 10 Nevada business leaders inducted into the Hall of Fame of the Women’s Chamber of Commerce of Nevada.

• Hispanic Business Magazine named the

SUPPLIERS / COMMUNITY / CUSTOMERS What is the company’s commitment to minority suppliers? MGM MIRAGE is committed to working with minority, women, and disadvantaged business enterprises. Since launching our Supplier Diversity Program, the amount of money spent with these groups has increased by 218 percent and is growing.

company one of the “Top 40 Companies for Hispanics.”

• The Texas Association of Mexican American Chambers of Commerce awarded the first “Chairman’s Minority Procurement Award” to MGM MIRAGE.

• Black Enterprise Magazine named MGM MIRAGE to its inaugural list of the “30 Best Companies for Diversity.”

• B’nai B’rith International gave its Distinguished Achievement Award to MGM

How do you promote diversity and inclusion outside MGM MIRAGE and demonstrate your commitment to working with minority vendors? Our supplier diversity team regularly participates in trade shows and expositions throughout the United States in an effort to reach and educate minority, women, and disadvantaged business enterprises about our business needs.

MIRAGE for its “Unwavering Commitment to Promote Diversity in the Workplace.”

• Moms in Business Network and International Association of Working Mothers named MGM MIRAGE the “National Company of the Year.”

• The Nevada Minority Business Council named MGM MIRAGE the “Corporation of the Year.”

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Interview

Punam Mathur MGM MIRAGE

EXECUTIVE / PROFESSIONAL About her role Where did your personal belief in diversity and inclusion originate? Who were your role models? Was there a pivotal experience that helped shape your view? Seven years ago, I realized a lifelong dream of becoming a foster parent. I went on to adopt three children, each from a different cultural background. As a multicultural family, diversity became a core and driving value for me personally. Four years ago, when given the privilege by our chairman to pursue diversity professionally, my avocation and my vocation aligned. How did you advance to your present position? What was your career path? How did you come to be working at MGM MIRAGE? Were you aware of its diversity and inclusion policies? I was recruited into the industry 10 years ago into a government affairs and community relations position, following a six-year stint as senior vice president of the local chamber of commerce. Chairman Terry Lanni voluntarily declared diversity a business imperative for MGM MIRAGE, and my portfolio was expanded to include it. Who are your mentors? What qualities about their business skill or style influenced you? How did they help you in your professional and personal life? Are you mentoring anyone today? I have enjoyed many mentors at different stages of my career and

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Profiles in Diversity Journal March/April 2006

personal life who have inspired and provided valuable input. I am most grateful for female mentors who achieved significant professional success while proudly relishing their role as a mom. Today I strive to “pay it forward” by being responsive to those who reach out to me. What business books or journals do you read regularly or recommend for aspiring leaders? I prefer conversation to reading as a way of reinvigorating my own perspectives. I have always made it a priority to connect with people I respect to benefit from their views. How would you describe your concept and style of leadership? I thoroughly enjoy watching others discover their capabilities. As a leader, I believe it is my responsibility to provide clear vision, sufficient tools, support, and coaching and then allow sufficient autonomy for people to chart their own course of action. How have you modeled your company’s diversity and inclusion initiatives in your own team selection, management, or development? Corporate Diversity and Community Affairs is a small, 24-member department that is among the most diverse in the company. What has been your proudest moment as a leader in this company? National recognition and accolades are a source of pride and affirmation for us; however, the source of our greatest inspiration and pride is found in the success of individual suppliers and employees who take full advantage of our diversity programs to actualize their dreams.


Interview

Punam Mathur MGM MIRAGE

Company Profile COMPANY: MGM MIRAGE HEADQUARTERS: Las Vegas, Nevada WEB SITE: www.mgmmirage.com PRIMARY BUSINESS: Gaming and hospitality NUMBER OF EMPLOYEES: Approximately 70,000 MARKET PRESENCE: Owns and operates 23 properties in Nevada, Mississippi, and Michigan; has investments in four other properties in Nevada, New Jersey, Illinois, and the United Kingdom; announced plans for a multibillion-dollar urban development project in Las Vegas; has a 50 percent interest in MGM Grand Macau, a hotel-casino resort currently under construction in China. INDUSTRY RANKING: 44 on Fortune’s 1000

MGM MIRAGE: UNITED THROUGH DIVERSITY™PDJ Diversity Strategists • Celebrating 22 years in business Our Clients include: Constellation Energy Blue Cross/Blue Shield of Florida

Inspiring Ingenuity from the Workplace to the Marketplace

Eastman Kodak Company Ernst & Young Exelon Corporation Exxon Mobil Corporation Harrah's Entertainment Inc. HCA Inc. Hewitt Associates LLC National GeoSpatial Intelligence College Nationwide Mutual Insurance Company Sodexho, USA Starbucks Corporation The Annie E. Casey Foundation University of Michigan Institute for Social Research YWCA of Greater Pittsburgh

The Winters Group, Inc. Mary-Frances Winters • Founder, Chief Executive Officer 877-546-8944 • www.wintersgroup.com

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Diversity Councils Senior Executive Diversity Councils are becoming increasingly important. Diversity Best Practices explains why. By Edie Fraser, Diversity Best Practices

M

any people believe it is an individual—the Chief Diversity Officer, for example—who is the major champion of any diversity program. However, leading diversity is often a group effort, which is why Senior Executive Diversity Councils are becoming increasingly important. Because they give the Chief Diversity Officer a sounding board, such councils are growing in number, as are diversity councils within business units and external advisory committees. What are the functions of such a council? Diversity Councils are the diversity governors. They are leaders with oversight at each level. They provide the executive support for the Diversity Officer. Accountability is key to success. The councils review the systems, measurements, and achievements on a regular basis. Success goals and stretch goals are now most often presented at least annually to the board of directors or a committee of the board.

The Facts from our Survey: • Nearly 82 percent of Diversity Best Practices companies have Diversity Executive Councils. • Half of the councils are led by the CEO or other C-level officer, and 90 54

percent are staffed by the Diversity Officer. To be effective, Diversity Councils must set standards and raise the bar to drive diversity throughout the business while insuring that diversity alignment is achieved. The Executive Diversity Council sets policy and reviews the results of representation, management pipeline success, and supplier diversity results. The makeup of the Executive Diversity Council is distinct: Senior managers, often from operating companies, who are generally appointed by the CEO and/or other members in the “C” suite. Councils that operate effectively are true examples of cross-functional teams. The council’s top level normally consists of the CEO or COO and other top executives. The operating level for diversity strategy and implementation is that of the CDO and team. They are responsible for the day-to-day oversight of the diversity program. An Executive Diversity Council requires six key elements to succeed: • active business leadership at the top • clearly defined roles and responsibilities • representative council structure • ongoing communication

Profiles in Diversity Journal March/April 2006

• diversity metrics and measurement • strong accountability There are actually five different types of councils, and we have found that our Best Practices companies have at least two of the five types cited. The five types are: 1. Executive Diversity Council staffed with senior-level executives from a variety of functions. What is compelling about the council is its ability to bring together cross-functionality and assist in the process of making the diversity program a well-organized program benefiting all functions. 2.Diversity Council: With mid-level representation or inclusive of broader representation. 3. Operating Company or Division Councils. 4. Affinity groups or networks. 5. External Diversity Council. An increasing number of companies are forming advisory diversity councils made up of outside leaders. In order to achieve its mandate, the council needs clarity, purpose, and accountability. The members can make a concerted effort to play an important role in the diversity program and oversee an effective


plan. This works if the members of the council have different backgrounds and perspectives and are committed to diversity as a business imperative. Coca-Cola and many other companies are naming such councils.

What does it take to create a Corporate Diversity Council? You should begin with a mission and objectives. For example, a mission to provide executive leadership and direction to the diversity initiative will require integrating diversity into the business strategy, communicating those objectives throughout the company, aligning human resources, and creating or supporting other diversity structures. Our research also underscores the importance of selecting an executive who has internalized the values of diversity to champion or lead the Executive Diversity Council. Members of the council are role models, cheerleaders, and diversity culture change agents. They integrate diversity into the company’s strategy, values and business measures and review business plans for representation, marketing, philanthropy, and supplier diversity. How large should such a council be? We recommend from 8 to 20 members and a review of the membership partici-

pation each six months. Some of the members should rotate off the team on an annual basis. The Councils typically meet monthly or quarterly at the Executive Level. They meet monthly at the Local Diversity Council level. In some cases, they meet at least once a month initially to establish priorities, assign tasks, and ensure early positive impact. Funding is also important, especially early on. All of the executives we talked to agreed that for diversity leadership, it is essential to “allocate necessary funds to support the activities” of the council. Finally, review your progress regularly. Is your Diversity Executive Council the major champion of your diversity program? How effective is the Council in oversight, monitoring and reviewing success of the diversity plans and representation results? Careful, regular review will help you stay on the path to success!

Diversity Councils are the diversity governors. They are leaders with oversight at each level. They provide the executive

PDJ Diversity Best Practices (DBP) is a membership-based service that is pioneering new ways to achieve business results through diversity. Since its inception over 200 Fortune 1000 companies, federal government agencies, and nonprofit organizations have participated in its benchmarking programs and services. To learn more, visit DBP’s Web site at www.diversitybestpractices.com.

support for the Diversity Officer.

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Featuring perspectives from these leading executives ... Valencia Adams BellSouth • Rohini Anand, PhD Sodexho • John Browne BP, p.l.c. Steven A. Burd Safeway, Inc. • Angie Casciato Credit Suisse • Mary Cofer American Electric Power Margot James Copeland KeyCorp • Rosalind Cox Ford Motor Company • Emily Duncan Hewlett-Packard Monica E. Emerson DaimlerChrysler Corporation • Mike Eskew UPS • John D. Finnegan The Chubb Corporation Gary D. Forsee Sprint Nextel • Gary Fraundorfer AT&T • Amy George PepsiCo • Charles A. Harvey Johnson Controls John D. Hofmeister Shell Oil Kenneth O. Klepper Medco Health • J. Wayne Leonard Entergy Corporation Janet Marzett DaimlerChrysler Financial Services Americas • Punam Mathur MGM MIRAGE Richard G. Miles Government Employees Hospital Association, Inc. • Brenda Mullins Aflac Katherine O'Brien New York Life Insurance Co. • Mary George Opperman Cornell University Clayton Osborne Bausch & Lomb • Rose M. Patten BMO Financial Group Maruiel Perkins-Chavis Marriott International Marie Y. Philippe, PhD, SPHR Excellus BlueCross BlueShield Rosie Saez Wachovia • Jonathan Schwartz Sun Microsystems May Snowden Starbucks • Richard K. Templeton Texas Instruments Anthony J. Vegliante USPS • Eric Watson Food Lion, LLC Jim Weddle Edward Jones Elaine Weinstein KeySpan Energy Anise D. Wiley-Little The Allstate Corporation

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Profiles in Diversity Journal March/April 2006


S

tephen Covey’s wonderful book, The Seven Habits of Highly Effective People, is the inspiration behind this question: What are the habits of highly inclusive organizations? We asked some of the most esteemed organizations in the country to describe their diversity and inclusion programs to see if there are commonalities among them. The response was overwhelming. Damian Johnson, our director of marketing, carefully analyzed 170 strategies from 38 companies and determined that yes, there are indeed 10 habits of highly inclusive organizations. They are: 1. Leadership commitment 2. Diversity and inclusion business-case strategy 3. Diversity and inclusion training 4. Mentoring programs 5. Surveys and scorecards to measure success 6. Recruiting and retention programs 7. Affinity and network groups 8. Supplier diversity programs 9. Diversity and inclusion communication programs 10. Diversity events, celebrations, and award ceremonies Profiles in Diversity Journal

March/April 2006

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We have combed through the many ideas sent to us and present some of the most interesting ones to you here. Each organization’s contribution begins with the name of a diversity and inclusion program or strategy, followed by a brief description. We may have chosen a program far down the list of each company’s offerings, but we did so only to avoid being redundant. Perhaps you will find an idea here to bring to your own organization. If you do, then we have succeeded. After all, what better way is there to celebrate our diversity of thought than to learn from one another? Here then, in alphabetical order by organization name, are the many habits of highly inclusive organizations.

Brenda Mullins SECOND VICE PRESIDENT HUMAN RESOURCES, EMPLOYEE RELATIONS DIVERSITY AFLAC

services. Programs vary throughout the country and are tailored to the specific needs of the employees to help them effectively balance work and personal responsibilities.

Mary Cofer

Aflac’s Diversity Week Diversity encompasses much more than just outside appearances. Therefore, the Diversity Week was created to celebrate all differences. This is a remarkable week that highlights working parents, military personnel, various generations, and women. The final day of celebration is a culmination of all distinct groups featuring song, music, dance, and display booths.

Anise D. Wiley-Little DIRECTOR OF DIVERSITY AND WORK LIFE THE ALLSTATE CORPORATION

Balancing Work and Personal Responsibilities Allstate work life programs allow employees to perform at their maximum potential and help to recruit and retain a diverse workforce. Programs include flexible work hours, the ability to work at home and/or telecommute, competitive pay, child and dependent care assistance, adoption assistance, tuition reimbursement, on-site education programs, and concierge

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Profiles in Diversity Journal March/April 2006

DIRECTOR OF DIVERSITY AND CULTURE AMERICAN ELECTRIC POWER

Diversity Events and Celebrations Diversity committees across the AEP system celebrate the contributions of our employees through local speakers and activities. These events include Women’s History Month; Black, Hispanic, Asian and Native American Heritage Month observances; Veteran’s Day; and the International Food Festival. These events provide an opportunity to learn about diverse cultures and acknowledge the contributions of our workforce.

Gary Fraundorfer VICE PRESIDENT HUMAN RESOURCES AT&T

Prime Supplier Participation Program AT&T promotes diversity initiatives among the company’s first-tier suppliers by encouraging suppliers with contracts over $500,000 to prepare and submit detailed supplier diversity annual participation plans and quarterly reports. AT&T provides training guides and workshops to help prime suppliers develop their own supplier diversity programs to meet their stated numerical goals.


Clayton Osborne VICE PRESIDENT OF HUMAN RESOURCES AND CHIEF PRIVACY OFFICER BAUSCH & LOMB

Leveraging Diversity of Thought Bausch & Lomb has established diversity of thought as its platform for its diversity and inclusion initiative in order to leverage the unique differences reflected in all of our employees. We believe that to truly leverage diversity of thought, the Bausch & Lomb workplace should be represented by the widest diversity of people possible. We are confident that this strategy facilitates high levels of innovation and creativity and provides us a clear competitive advantage. Teams currently use the Myers-Briggs Type Indicator and the Social Styles instruments to assess the levels of diversity of thought existing in the company. Increasingly, the Kirton AdaptionInnovation Inventory will be used to complement the other instruments.

Valencia Adams VICE PRESIDENT AND CHIEF DIVERSITY OFFICER BELLSOUTH

Develop and Implement a Companywide Communications Strategy Clear, effective communication is a critical, yet often overlooked, aspect of the diversity process. If done well, it can dispel myths, help avoid backlash and position the process itself for success. To ensure its success, the case for the diversity initiative must be made clearly and concisely. It must also be communicated with a sense of honesty and integrity. Strong, consistent communications are necessary to demonstrate BellSouth’s commitment to diversity. Leadership must be seen and heard championing diversity issues—both internally and externally. As high-level support for the success of the initiative is evidenced, a momentum of buy-in and commitment is created that ultimately drives the desired change.

Beyond explaining the why of diversity, the communication plan must seize every opportunity to impart incremental understanding of BellSouth’s inclusive definition of diversity. It is especially critical to emphasize that diversity is far more than race and gender and that it encompasses multiple dimensions of similarity and difference. Communication that educates helps all involved see themselves as part of the diverse mix and as mutual beneficiaries of the initiative.

Rose M. Patten SENIOR EXECUTIVE VICE PRESIDENT HUMAN RESOURCES AND STRATEGIC MANAGEMENT BMO FINANCIAL GROUP

Establish Effective Communication Channels Throughout the Organization At BMO, employee communication is a critical platform within a wider employee engagement strategy as a means for creating an inclusive organization. One way of maintaining high levels of engagement and inclusion is through open channels of communication. Communication is a key priority across the organization. For example, some of BMO’s senior-most leaders provide monthly updates and context on what is taking place throughout the organization. Their messages not only inform, but also help employees take proactive measures to enhance customer experiences, improve productivity and increase company performance. The employee voice also is measured on a variety of issues through the feedback provided on our Annual Employee Survey. Employees also can download a 2006 Holiday and Multicultural Calendar directly into their Outlook calendar. This is designed to help BMO Financial Group employees schedule conferences, appointments, meetings, and other events, so they do not coincide with major dates of religious observance celebrated by colleagues. Detailed descriptions of major holidays and observances are also available on BMO’s intranet site. We believe that a culture of inclusion is facilitated through increased awareness of the holidays and events that are important to one another.

Profiles in Diversity Journal March/April 2006

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John Browne CEO BP, p.l.c.

Global Path to Diversity and Inclusion BP’s Global Path to Diversity and Inclusion aims to further prepare the company for the 21st century global marketplace by continuing to diversify its employee base, with particular emphasis on local representation in varied geographic markets. BP understands that what constitutes diversity varies greatly across regions and encompasses characteristics such as gender, race, ethnicity, nationality, language, sexual orientation, gender identity, religion, and tribe. Led by a team of Diversity & Inclusion (D&I) practitioners, the inclusion efforts comprise a range of programs, including career development offerings for diverse, high-potential employees; a diversity and inclusion index which tracks employees’ perceptions of the work environment; global diversity networks; and dynamic workshops on issues related to gender, race, and nationality. Accountability measures are rigorous and transparent: Performance contracts rate executives on behaviors (including those related to D&I) and business results, and these ratings directly impact bonus pay. In addition, all D&I targets are tracked quarterly; if goals are not met, leadership intervenes. The success of BP’s Global Path to Diversity and Inclusion is clear: Women’s representation among the 600 most senior leadership positions—the first stage in its change process—increased from 9 percent to 17 percent between 2000 and 2005.

John D. Finnegan CHAIRMAN, PRESIDENT, AND CEO CHUBB GROUP OF PROPERTY AND CASUALTY INSURANCE COMPANIES

Reach Up, Reach Out, and Reach Down Chubb’s diversity initiative, “Reach Up, Reach Out, and Reach Down,” is a comprehensive effort that focuses on building an inclusive culture in which employees are empowered to take 60

Profiles in Diversity Journal March/April 2006

charge of their careers, while reaching out and coaching those around them. This is facilitated by (1) high-potential identification programs; (2) an array of learning and development offerings; and (3) powerful Employee Resource Groups (ERGs) like the Minority Development Council, Women’s Development Council, Gay and Lesbian Network, and AsianAmerican Business Network. These ERGs identify external business opportunities, act as a leadership development training ground, and regularly communicate with senior leadership. In addition to strong communication and senior leadership support, Chubb utilizes many formal accountability mechanisms to achieve success. Employees are responsible for driving the culture of inclusion. All managers are expected to demonstrate diversity efforts on their annual performance evaluations, with ratings affecting their merit increases and bonuses. Senior managers set objectives around developing and promoting diverse candidates, and report progress to the CEO and board of directors. The managers who demonstrate the most improved and the most balanced diversity results for the year receive a sizeable bonus to re-invest in a diversityrelated program. Finally, Chubb’s bi-annual employee engagement survey measures attitudes on work environment, including perceptions of diversity and inclusion. While Chubb’s initiative has built an inclusive culture to benefit all employees, it has notably worked to advance women into leadership. Women’s representation at the senior vice president level increased from 16 percent in 2001 to 23 percent in 2005; at the executive vice president level, women’s representation increased from 0 to 17 percent during this time.

Mary George Opperman VICE PRESIDENT FOR HUMAN RESOURCES CORNELL UNIVERSITY

“Sandbox Socials” and “Life Cycles” Workshops — Targeted Social Programming Cornell University created targeted programming that addresses the interests of our diverse community. The Life Cycles Series of workshops offers employees the opportunity to attend free programs that address issues in categories such as parenting skills, enhancing relationships, life transitions, and work-life integration.


Monthly Sandbox Socials connect individuals of color to the social fabric of Cornell and the Ithaca community. Concerts, bus tours and other entertaining venues provide opportunities for individuals to learn more about regional resources while developing personal and professional relationships with colleagues.

Angie Casciato MANAGING DIRECTOR AND HEAD OF GLOBAL DIVERSITY AND INCLUSION CREDIT SUISSE

Client-focused Events Credit Suisse hosts events that bring together our employees and our diverse client base. These events provide the bank with the opportunity to highlight the broad spectrum of our diversity and inclusion initiatives in a way that impacts the business and strengthens our client relationships. Client-focused events are among nearly a dozen strategies employed by Credit Suisse to ensure that all employees value diversity as a core part of our business strategy.

Leadership Commitment to Diversity display, signed by the entire Leadership Council, hangs in the entrance of every facility in North America.

Monica E. Emerson

Janet Marzett

EXECUTIVE DIRECTOR CORPORATE DIVERSITY OFFICE CHRYSLER GROUP

VICE PRESIDENT HUMAN RESOURCES AND ADMINISTRATIVE SERVICES DAIMLERCHRYSLER FINANCIAL SERVICES AMERICAS

Leadership Commitment to Diversity The Chrysler Group’s commitment to diversity starts at the top, with a diversity statement penned by the president and CEO. The DaimlerChrysler Leadership Commitment to Diversity display, signed by the entire Leadership Council, hangs in the entrance of every facility in North America. The signatures serve as a visual commitment of the company’s leadership to create an environment where all people are respected, valued, and inspired to perform at optimal levels by serving as role models of inclusive, respectful behavior.

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The DaimlerChrysler

Profiles in Diversity Journal March/April 2006

Financial and Social Responsibility Through our inclusive culture, we understand the importance of reaching out to our communities. We focus on four areas: education and financial education, community advancement, arts and culture, and public policy. The community relations motto is “Invest. Empower. Involve.” It guides our interests in our communities to invest our resources, help people help themselves, and involve our employees. We rely on our employee volunteers as they help to transfer skills and knowledge within our company to other members in the communities where we live and work.


Jim Weddle

After the leadership strategy

MANAGING PARTNER EDWARD JONES

Avoid “One Size Fits All” Education Edward Jones recognizes that inclusion requires a process, not a single training program or series of events. After the leadership strategy was communicated, the firm cascaded inclusion training throughout all levels of the organization, including education for a very large field sales group. Inclusion 2020™ workshops, designed and conducted by outside firm Simmons Associates, provided a strong, shared framework and were tailored to address the particular issues and needs by country and culture. This is important, because Edward Jones has operations in the United States, Canada, and the United Kingdom. Using the Vectors™ problem solving tool, the sessions are designed to sharpen leaders’ ability to remove the subtle, often hidden forces that can impede associates’ engagement and performance. Again demonstrating the firm’s commitment to accountability, participants work on their own specific action plans to support the inclusion objectives at a team and individual level.

J. Wayne Leonard CEO ENTERGY CORPORATION

Companywide Diversity Scorecard The Diversity and Inclusion Scorecard is a collaborative effort developed by line managers, the Talent Management and Inclusion department, and members of the company’s 20-plus employeeled diversity and inclusion councils. The scorecard serves as an umbrella mechanism to measure, coordinate, and track progress on the company’s numerous diversity initiatives, including diversity training, the establishment of business unit diversity and inclusion councils, and leadership initiatives that create an inclusive workforce and promote diversity in the communities the company serves.

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was communicated at Edward Jones, the firm cascaded inclusion training throughout all levels of the organization. Marie Y. Philippe, PhD, SPHR VICE PRESIDENT, DIVERSITY AND INCLUSION EXCELLUS BLUECROSS BLUESHIELD

Close Encounters Many companies have allowed the functional hierarchies to build barriers between their most vital resources. We wanted to dispel these often unspoken myths such as “Good ideas only come from the top,” or “Voices from minority employees are filtered,” while reinforcing organizational inclusion. To accomplish this, small meetings with the COO and other senior leaders are held monthly with employees who would not, in their ordinary course of activities, have direct conversations with senior executives.


Better vision is everyone’s birthright. From sutureless cataract surgery that can save an infant’s sight to a contact lens that corrects vision overnight, Bausch & Lomb is at the forefront of eye health. Working with the world’s foremost optometrists and ophthalmologists, we’re innovating a future with one goal in mind: Perfecting Vision. Enhancing Life.™

© 2006 Bausch & Lomb Incorporated. ™ denotes trademark of Bausch & Lomb Incorporated. MIS0206002


Eric Watson VICE PRESIDENT OF DIVERSITY AND INCLUSION FOOD LION, LLC

Retail Management Training (RMT) Program This program begins with the identification of core colleges and universities for recruitment, including historically black colleges and universities (HBCUs). We established a Retail Management Training Program with the Central Intercollegiate Athletic Association (CIAA), which is comprised of twelve HBCUs in our operating area. We also focused on the retention and development of 13 associates from diverse backgrounds who are a part of our Retail Management Training Program. The outcome of this program has been especially gratifying. We are growing strong relationships with HBCUs in our operating area and increasing the talent and diversity of our company’s workforce.

Among Ford’s initiatives is the establishment of a mentoring roundtable consisting of managers from each organization to share best practices, develop new tools, and promote mentoring overall.

Rosalind J. Cox DIRECTOR, DIVERSITY AND WORK LIFE FORD MOTOR COMPANY

Operationalizing the Diversity Strategy – Moving to an Inclusive Mindset Senior leaders at Ford use Business Review Questions and Key Messages regularly to drive an understanding of diversity and inclusion into standing meetings and business discussions. These questions address our company’s strategic areas of focus and help identify those organizations and leaders who follow processes designed to build diverse and inclusive teams. Among our other initiatives, we have established a mentoring roundtable consisting of managers from each organization to share best practices, develop new tools, and promote mentoring overall. We also support employee resource groups that offer us fresh business and consumer insight and support our recruiting and community outreach efforts.

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Richard G. Miles CEO GOVERNMENT EMPLOYEES HOSPITAL ASSOCIATION, INC. (GEHA)

The Idea Chain GEHA’s Idea Chain is an employee suggestion policy offering rewards based on the value of an employee’s suggestion instead of the employee’s pay grade. The company’s hiring policy provides clear directives giving preference to internal qualified candidates to meet all goals and objectives for internal mentoring and career development. I credit the diversification of the company’s product offerings as well as the development of additional services and process improvements to the contributions of a diverse group of talented employees at various levels within the organization.


What’s missing?

Ivy Planning Group is known by the company it keeps. Corporate giants like MetLife, L’Oreal, Nike, Lockheed Martin, Paramount Pictures, JP Morgan Chase, Hilton Hotels, Lehman Brothers, and Viacom; government agencies and nonprofits who are serious about diversity choose Ivy. They understand that selecting the right consulting and training firm makes all the difference in building and sustaining a successful diversity initiative.

BALANCING STRATEGY, DIVERSITY AND THE BOTTOM LINE Serious about your diversity initiative? Call today...1.877.448.9477


Emily Duncan VICE PRESIDENT, CULTURE AND DIVERSITY HEWLETT-PACKARD COMPANY

Expanding the Diversity of Our Workforce We’re accelerating the achievement of our companywide diversity goals by supporting HP leaders in attracting, developing, and retaining a diverse workforce. We’ve established strategic partnerships with professional organizations and executive search firms; actively recruited candidates through conferences, career fairs, and events; and expanded the entry-level talent pool through campus and university recruiting. HP ensures that diversity is embedded into our talent management programs. Creating a work environment where people want to stay and grow, engaging our employee resource groups, and broadening our diversity and inclusion training portfolio help us retain a diverse workforce.

Charles A. Harvey VICE PRESIDENT, DIVERSITY AND PUBLIC AFFAIRS JOHNSON CONTROLS

M.E.E.T. on Common Ground: Diversity and Inclusion Training This program teaches employees and managers how to recognize and respond to workplace situations professionally and with respect. The program introduces an easily learned four-step process that is supported with real-life vignettes. Behavioral skills are presented to help participants evolve from traditionally biased behaviors to those that are receptive and open, avoiding pitfalls such as patronizing behavior and overaccommodation. M E E T

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Make time to discuss. Explore differences. Encourage respect. Take personal responsibility.

Profiles in Diversity Journal March/April 2006

HP ensures that diversity is embedded into talent management programs, creating a work environment where people want to stay and grow.

Bottom line: Pre- and post-testing of employees indicated that 95 percent left the training with the confidence that they could independently resolve workplace conflicts.

Margot James Copeland CHAIR OF KEY FOUNDATION EXECUTIVE VICE PRESIDENT AND DIRECTOR OF CORPORATE DIVERSITY AND PHILANTHROPY KEYCORP

Domestic Partner Coverage Domestic partner coverage is a component of Key’s broader strategy to compete for talent. It’s a competitive advantage creating an enhanced environment where employees can carry out their careers. Key began offering domestic partner coverage in 2001 and was one of the first financial-services companies to do so in the nation.


Cathy Arnett, President, Utility Support Systems, Inc., Distribution Engineering Services; Vickley Raeford, President, Raeford Land Clearing, Inc., Grading and Right-of-Way Clearing; Rajana Savant, President, Mesa Associates, Inc., Engineering and Research Development; Elizabeth Gats, President, Stag Enterprises, Inc., Commercial and Industrial Supplies Distributor.

Y O U M I G H T B E S U R P R I S E D W H AT T H E Y C O N S I D E R W O M A N ’ S W O R K .

These businesswomen have prevailed in nontraditional fields because they met challenges head-on and took advantage of opportunities that came their way. Opportunities like becoming a vendor for Georgia Power, a subsidiary of Southern Company, the South’s premier energy company. Through our Supplier Mentor Program and other diversity initiatives, we have assisted qualified female and minority-owned companies acquire the experience, knowledge, and contacts to help grow their businesses. At Georgia Power, we believe that their success will contribute to the economic success of all the communities we serve. To learn more, visit us at southerncompany.com/suppliers/diversity.asp.


Elaine Weinstein

By bringing technology

SENIOR HUMAN RESOURCES OFFICER KEYSPAN ENERGY

to the home setting, Medco

Making the Business Case for Diversity

provides new options

To meet the varied needs of our diverse customers, KeySpan recently established a Multicultural Marketing Campaign, with two pilot programs targeting Chinese- and Hispanic-Americans. To make the campaign effective, we called on our diverse employees to serve as Multicultural Marketing Ambassadors. Customer + Employee Inclusiveness = Real Business Value.

for those who may be challenged in managing the costs and inconveniences involved in commuting

Maruiel PerkinsChavis VICE PRESIDENT, WORKFORCE EFFECTIVENESS AND DIVERSITY MARRIOTT INTERNATIONAL

Women’s Leadership Initiatives The Women’s Leadership Development Initiative (WLDI), which the company began in 1998, seeks to increase the presence of women in the highest level of management and in other key decision-making positions. WLDI has a powerful framework built on three critical components: leadership, networking and mentoring, and workforce effectiveness. The first component focuses on developing and supporting Marriott’s current women senior leaders and on building a strong pipeline of future women leaders. In the second critical component, women and minorities learn valuable skills in building reciprocal value relationships that enable them to seek mentoring relationships throughout their careers. The third component is workforce effectiveness. We have a long-standing tradition of providing strong work life support and programs to all of our associates at Marriott. We understand and value that our female employees must approach their lives with the dual need to prioritize their work and personal life responsibilities. This initiative has resulted in notable accomplishments. For example, Marriott has more than tripled the number of women in executive positions.

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to work. Kenneth O. Klepper EXECUTIVE VICE PRESIDENT CHIEF OPERATING OFFICER MEDCO HEALTH SOLUTIONS

Medco Work@Home Consistent with its strategy to optimize operations, assets and information technology, Medco subsidiaries have 500 employees—primarily associated with call centers—participating in Work@Home programs in various areas of the country. To date, the results have been overwhelmingly positive, with increased job satisfaction and high-quality performance. Medco has Work@Home programs in New Jersey, Texas, Ohio, Nevada, and North Carolina. Medco provides the information systems required to perform the job responsibilities, including computer, security and telephone equipment, and specialized programs unique to Medco. By bringing the technology to the home setting, Medco provides new options for those who may be challenged in managing the costs and inconveniences involved in commuting to work.


Punam Mathur

Amy George

SENIOR VICE PRESIDENT, CORPORATE DIVERSITY AND COMMUNITY AFFAIRS MGM MIRAGE

VICE PRESIDENT, GLOBAL DIVERSITY AND INCLUSION PEPSICO

Engaging Multicultural Interests to Drive ROI As part of our strategic plan, MGM MIRAGE dedicated a professional sales position to help develop relationships with meeting and convention planners for multicultural and emerging markets. Also, the Multicultural Advisory Council, comprised of representatives from diverse groups and organizations, offered its insight to help shape our company’s efforts. As a result, marketing materials specifically targeting diverse consumers were created; we increased our participation in relevant multicultural trade shows; and advertising and marketing materials were adapted for production in Spanish and English.

Katherine O’Brien VICE PRESIDENT AND CHIEF DIVERSITY OFFICER NEW YORK LIFE INSURANCE COMPANY

Maintain Clear Communication of Inclusion It is critical to have a wellarticulated corporate business case for diversity and inclusion that explains “how and why” diversity and inclusion can help the company achieve its business objectives. Ongoing communication of this business case is needed so that it continues to be part of corporate culture and philosophy. Inclusion principles must be directly integrated into the culture and company mission by top leadership. At New York Life the diversity office, led by the chief diversity officer, reports to the executive vice president in charge of law and corporate administration and has regular interaction with the executive management committee, which is a group of company executives who establish management policies.

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Ensuring Leader-led Commitment Senior level sponsorship is essential to winning with diversity. Each of our chairman’s direct reports has responsibility for an employee group, with all groups represented—including white males. For example, the CEO of Frito-Lay is responsible for understanding the experiences of Latinos at PepsiCo. This ensures opportunities are surfaced, and every group has a voice at the most senior level.

Steven A. Burd CHAIRMAN, PRESIDENT AND CEO SAFEWAY, INC.

Championing Change for Women: An Integrated Strategy Safeway’s Championing Change for Women: An Integrated Strategy pairs comprehensive career development and mentoring programs with rigorous tracking and accountability systems, a combination that has resulted in the substantial advancement of women— including women of color—to management positions. Driven by an emphasis on advancing all talent and monitored through rigorous tracking and accountability systems, the initiative features such innovative elements as a mentoring program that requires all managers to mentor diverse talent, and the Retail Leadership Development program, which trains retail employees to be store managers, a path which can lead to corporate management. This emphasis on accountability ensures results: Since 2000, there has been a 40 percent increase in the representation of women in store management ranks, a 34 percent increase in the representation of white women and a 65 percent increase in the representation of women of color. The representation of women at the vice president level rose from 12 percent in 2000 to 25 percent in 2005.


person ality

Is Nationwide for you? Some people have an inner desire, a compelling force that drives them to take action, deliver on their promises and continually reach beyond what’s expected. It’s this passion for greatness that makes Nationwide associates special. At Nationwide, it’s not about just filling a position. It’s about finding individuals with personality – that special blend of natural talents and innovative ideas. If words like passion, connection, commitment, vision and leadership inspire you, a career at Nationwide could be for you. A number of job opportunities are available now in Columbus. Meet with one of our representatives or apply online at nationwide.com.

Are you ready?

Nationwide is an equal opportunity employer. EOE/M/F/D/V Nationwide and the Nationwide framemark are federally registered service marks of Nationwide Mutual Insurance Company. On Your Side is a service mark of Nationwide Mutual Insurance Company. ©2005, Nationwide Mutual Insurance Company. All rights reserved.


John D. Hofmeister PRESIDENT, U.S. COUNTRY CHAIR, VICE PRESIDENT CORPORATE AFFAIRS/HUMAN RESOURCES SHELL OIL

employee network groups; and Bridge, an informal mentoring initiative within our operating divisions for new managers. Our mentoring initiative is an opportunity to strengthen organizational relationships across divisions and functions, align people and processes, enable people to achieve their full potential, and enhance diversity in the leadership pipeline.

Employee Networks Employee Networks play a vital role in promoting understanding, engagement, and accountability at Shell. They orchestrate programs and activities at the business and department levels, including mentoring, diversity awareness, professional development, and work/life support. Network groups organize activities and events to help improve the work environment and provide development opportunities for women and people of color. Examples of network activities include workshops and panels at which senior women share career experiences with more junior women. Networks also have played a vital role in helping leadership understand the demographic composition of the workforce and cultural differences. Each network has a president who is accountable for the group’s achievement of goals and objectives mutually agreed upon between the network and the Corporate Diversity Office, which fully funds all network activities. There are eight active employee networks at Shell: Asian-Pacifics; Blacks; Women; Gays, Lesbians, Bisexual and Transgendered; Hispanics; Generation X Employees; Louisiana African-Americans; and Louisiana Women. Each network has business-related goals and a scorecard to track performance.

Dr. Rohini Anand SENIOR VICE PRESIDENT AND CHIEF DIVERSITY OFFICER SODEXHO

Building a Culture of Mentoring Mentoring is a key component of employee development, and Sodexho is committed to developing a culture that supports it. We have implemented three mentoring programs which include Impact, a formal initiative connected to succession management for high-potential employees; Peer2Peer, an informal initiative which operates through our 74

Profiles in Diversity Journal March/April 2006

Gary D. Forsee PRESIDENT AND CEO SPRINT NEXTEL

A Holistic Approach to Inclusion and Diversity Sprint Nextel focuses not just on traditional (though important) diversity aspects such as race and gender, but expands the scope to include such areas as diversity of thought, experience, job level, and location. This inclusive thinking is present as we reach out to our employees, customers, suppliers, and the community. Recently, Sprint Nextel launched a groundbreaking new Black History Month campaign, sending daily text messages about important African-Americans to interested parties. Sprint Nextel also offers innovative services for deaf and hard-of-hearing users.

Sodexho’s mentoring initiative is an opportunity to strengthen organizational relationships across divisions and functions, align people and processes, enable people to achieve their full potential, and enhance diversity in the leadership pipeline.


MFHA 10th Anniversary Conference celebrate a decade of diversity leadership August 6-8, 2006 in Boston at the Hyatt Regency Cambridge

MFHA premier sponsors

Gerry Fernandez, MFHA President and Founder, will deliver a “State of Diversity” keynote address

Celebrating the industry’s achievements and milestones over the last decade

MFHA 2006 award winners

Log onto www.mfha.net for sponsorship and early registration opportunities


May Snowden VICE PRESIDENT, GLOBAL DIVERSITY AND INCLUSION STARBUCKS COFFEE COMPANY

Ensure a Great Work Environment by Leveraging Diversity We strive to create an inclusive and high-performance work/life environment in which all partners are fully utilized and effective. By designing and implementing global diversity and inclusion learning solutions, we foster a sustainable framework of change and transformation that supports the Starbucks strategic plan. Our diversity and inclusion strategies enhance relationships with community leaders and external audiences and embody the Starbucks corporate vision: Embrace diversity as an essential component in the way we do business.

Starbucks’ diversity and inclusion strategies enhance relationships with community leaders and external audiences and embody the corporate vision: Embrace diversity as an essential component in the

Jonathan Schwartz PRESIDENT AND CHIEF OPERATING OFFICER SUN MICROSYSTEMS

Global Inclusion, Branding and Communication Sun's messaging platform has evolved from one focused on diversity and individual careers to one that conveys Sun’s commitment through brand, messaging, global community involvement, and talent pipeline partnerships that foster internal and external reputation. Sun’s network computing vision demands that we first grow and nurture the most important network of all—our employee community. At the core of Sun’s staffing processes, inclusion is transparent. This allows the company to embed inclusive practices into the talent management system, ensuring that talented people, wherever they are in the world, can participate at every level of our pipeline. In that way, Sun becomes the employer of choice for people around the globe.

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way it does business.

Richard K. Templeton PRESIDENT AND CEO TEXAS INSTRUMENTS INCORPORATED

Monthly Diversity Column and Diversity Tipsheets Each month, the diversity director writes and posts a diversity and inclusion article electronically. Subjects span the entire range of issues—race, gender, culture, and sexual orientation. The article also has delved into issues relating to workplace bullying, building trust, religion, and defining inclusions. The newsletter is accessible to employees worldwide. The diversity office also periodically issues diversity tips, each no longer than two pages. They augment the monthly column by offering “how-tos” relative to specific issues.


Mike Eskew CEO UPS

Black Executive Exchange Program (BEEP) Designed to provide a new perspective on business and to broaden the career aspirations of African-American college students, the National Urban League’s Black Executive Exchange Program presents an exciting opportunity for all participants. Since UPS began participating in the program in 1989, 125 senior managers have served as role models. UPS also has developed a Welfare to Work program. The program helps move individuals from welfare to work by placing them in jobs at UPS. UPS’s success is largely due to partnerships with government and nonprofit agencies across the country. UPS has programs in 40 locations across the country and has hired almost 66,000 people previously on welfare rolls.

Anthony J. Vegliante CHIEF HUMAN RESOURCE OFFICER AND EXECUTIVE VICE PRESIDENT UNITED STATES POSTAL SERVICE

Multicultural Business Opportunities The USPS has developed relationships with its multicultural customer base. A small business marketing council has been created to focus on developing this vital sector’s ability to grow and prosper by using mail as a business and marketing vehicle. The council is comprised of the National Small Business Foundation; the National Black, Hispanic and Pan Asian chambers of commerce; Association of Women Business Owners; Association of Small Business Development Centers; and the American Society of Association Executives. DiversityBusiness.com ranked the USPS the top government agency for multicultural business opportunities. The Postal Service focuses on the entire business community when searching for quality equipment, supplies, and services for our

operational needs. Small, minority-owned, and women-owned businesses are integral to our supplier base. The Postal Service is seeking to provide all suppliers with equal access to purchasing and business opportunities.

Rosie Saez SENIOR VICE PRESIDENT, DIRECTOR OF DIVERSITY INTEGRATION PRACTICES WACHOVIA

Annual CEO Diversity Review This program holds leaders at all levels of the company accountable for achieving measurable results on the diversity components of their business plans. We conduct an annual CEO diversity review with all operating committee members. The review uses reporting processes to monitor results, identify areas for improvement, and leverage best practices. It ensures that departments such as human resources, corporate marketing, corporate relations and supplier diversity integrate diversity goals and programs into their go-to-market efforts.

The United States Postal Service focuses on the entire business community when searching for quality equipment, supplies, and services for operational needs. Profiles in Diversity Journal March/April 2006

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ACROSS 1. Management 7. 2004 Profiles in Diversity Journal Leader of the Year 10. Expert, for short 12. Look after and allow to grow 14. Oil company and diversity supporter 16. ___ Mex! 17. Soldier 18. Leveled 19. Recognize as having the standards for professional employment, for example 23. World 24. Characterized by, suffix 25. Self executed, for short 26. Oil company that supports diversity in the workplace 28. Senior 30. Light type

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DOWN 1. Program that is helping women receive equitable treatment in the workplace 2. Another word for diversity 3. Way to go 4. Top 5. Near, for short 6. Drinks company supporting diversity in the workplace 8. Boat mover 9. Dunk-worthy food 11. Academic qualification 13. Wrong color for the books 15. Compete 19. ____-in! 20. Radio band, abbr. 21. Executed 22. Drink cooler 23. Kind quality 26. Convince 27. ___ polloi 29. Secures, a position for example 30. Nope! 32. Success 34. Set aside 35. Twist or North? 36. Mature 40. Testing ground 41. Life goal 42. Helpful suggestions 43. Oversee 46. Twofold 52. Greeting (slang)

Enthusiasm Trusted counselor Promotion “The One” star Jet Don't ___ on my parade! Management quality A ___ - do person I have, abbr. Tech giant supporting diversity in the workplace Freedom President 1st Asian American woman appointed to a President’s cabinet ( ____ Chao) Advice Ocean Attempt Listens to The solution can be found Succeeds, with “it”

on page 80.


SHRM2006 The Washington Convention Center | Washington, D.C.

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Society for Human Resource Management Annual Conference & Exposition June 25–28, 2006 Washington, D.C.

Special Discount Available Five or more individuals traveling from the same country (other than the United States) will receive a 20 percent discount on each full conference registration fee. Note: All registrations must be paid by a single form of payment and accompanied by all completed registration forms for each attendee.

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Bank of the West www.bankofthewest.com

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Bausch & Lomb www.bausch.com The Boeing Company www.boeing.com

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DaimlerChrysler Corporation www.daimlerchrysler.com

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Dell, Inc. www.dell.com

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Eastman Kodak Company www.kodak.com

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Exelon Corporation www.exeloncorp.com

back cover

Ford Motor Company www.ford.com

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Georgia Power www.southernco.com/gapower

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Halliburton www.halliburton.com

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Ivy Planning www.ivygroupllc.com

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Lockheed Martin www.lockheedmartin.com

G E N D E R D I V E R S I T Y

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MFHA www.mfha.net

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MGM MIRAGE www.mgmmirage.com

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Nationwide Insurance www.nationwide.com

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PepsiCo, Inc. www.pepsico.com

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Sodexho www.sodexhousa.com

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Society for Human Resource Management 79 www.shrm.org Starwood Hotels www.starwoodhotels.com

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WellPoint www.wellpoint.com

cover 3

The Winters Group www.wintersgroup.com

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At WellPoint, we celebrate the diversity of our workforce. We are the leading health benefits company in the nation serving the needs of 34 million members. A FORTUNE 50® company, we are strengthened by the commitment and dedication of our associates. If you’re looking to join a company where you will see your ideas in action - where what you do helps others live better, consider a career with us. Visit our Web site to search opportunities throughout the United States at: www.wellpoint.com/careers

What does it take to be named FORTUNE magazine’s Most Admired Health Care Company six years running? ®

People like you.

Opportunities may be available in the following areas: • Actuarial • Administrative/Clerical • Advertising/Marketing • Claims/Membership/Customer Service • Compliance • Corporate Communications • Finance & Accounting • Human Resources • Information Technology • Legal • Management • Nursing/Case Management • Pharmacy • Provider Network Development • Sales • Training • Underwriting

SM

EOE. SM Service Mark of WellPoint Inc. FORTUNE and FORTUNE 50 are registered trademarks of FORTUNE magazine, a division of Time Inc. ©2004 WellPoint Inc. All rights reserved.



Diversity Journal - Mar/Apr 2006