Diversity Journal - Jan/Feb 2003 by Diversity Journal

Profiles in

DiversityJournal Sharing Workforce Diversity Experiences

Volume 5, Number 1 • January/February 2003

U.S. 12.95 U.S.

Living Legacies:

Dr. David A. Thomas The Harvard Business School H. Naylor Fitzhugh Professor of Business Administration on the prerequisites of successful mentoring

Diversity in Education

Special Section

International Universities on preparing the leaders of tomorrow

Leaders on Black Leadership Celebrating Black History Month in Corporate America Today

PLUS Case Studies From Deloitte & Touche Waste Management, Inc. Milwaukee Journal Sentinel Georgia-Pacific Corporation Rabobank/Netherlands, and more

Plus “Diversity and Customer Loyalty: A Six Sigma Initiative,” second in a series from author Keki Bhote.

WWW.F O R D .C O M

INGREDIENTS:

BETTER IDEA #29

D i ve r s i t y GLOBAL

The nice thing about our world is that there’s

room for everyone.

There’s something truly special about people who work tirelessly to make the world a kinder place. For this reason, we would like to offer both our thanks and appreciation to those who do so much to promote understanding. We’re proud to support you and your efforts to promote diversity. Marisela Reyes, Arvin Ramachandran, Marsialle Arbuckle, Lewis Thompson and Ellen Enloe are all actively involved in Diversity and Worklife initiatives. Making this a group that understands the importance of understanding.

www.ford.com

Profiles in

Diversity Journal

Sharing Workforce Diversity Experiences

PUBLISHER / MANAGING EDITOR James R. Rector SENIOR EDITOR Katherine Sandlin

pointofview From the editorial staff of Profiles in Diversity Journal

EDITORIAL CONSULTANT Laurel L. Fumic PRINTING Master Printing ADVISORY BOARD HONORARY CHAIR Steve Miller, former Chairman, President and CEO Shell Oil Company CHAIR Edie Fraser, President Diversity Best Practices VICE CHAIRS Carlton Yearwood, VP Business Diversity Waste Management, Inc. John Sequeira, Diversity Manager Shell People Services May E. Snowden, Chief Diversity Officer Eastman Kodak Toni L. Riccardi, Chief Diversity Officer PricewaterhouseCoopers OVERSEAS CORRESPONDENTS Dr. Myrtha Casanova, President European Institute for Managing Diversity Barcelona Spain Graham Shaw, Director Centre for Diversity and Business London UK

Laying the Foundation for our Future We kick off our first issue of 2003 with two very important features. The first, our discussion of the changes in diversity education—"Universities Tackle the Global Business Prerequisite"—reports on the new imperative to place diversity at the center of every institution’s educational and societal mission. Our cover story takes diversity education to a personal level as Dr. David A. Thomas, professor of Organizational Behavior and Human Resources Management at Harvard Business School, discusses the ins and outs of a successful mentoring program. The second of our features is our own celebration of Black History Month. “Leaders on Black Leaders of the 20th Century” represents the personal reflections of corporate leaders on the lives and events that have touched them—who they celebrate, who they emulate, and why it’s important to commemorate this history. While we may be offering two very different features, we think you’ll find that there’s really one theme: It takes strong and solid blocks to create a good foundation. Our reverence and celebration of the people and events that have made us who we are is testament to that fact. So are the preparations we make so that we can hand our torch to those who will come behind us.

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.

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It’s the basis of everything we do here at Profiles in Diversity Journal. The corporations that are profiled within these pages are in the process of building strong, inclusive corporate cultures that will be their foundation for worldwide growth in the years ahead. By sharing their stories with us, they are allowing us individually to share in their efforts, making us all stronger diversity practitioners and strengthening the foundation of corporate diversity as a whole. It’s this commitment to creating a foundation for solid growth that led to our involvement in Workforce Diversity Reader. It was behind our efforts to develop the Six Sigma Corporate Diversity Assessment. And it’s what brings this magazine to you today. We look forward to building with you in the coming year.

Profiles in Diversity Journal® is published bi-monthly by Rector, Inc., Principal Office: P.O. Box 45605, Cleveland, OH 44145-0605. James Rector, Publisher, Rector, Inc. All Rights Reserved. The views expressed in this publication are those of the authors and may or may not represent the views of the publisher. Reproduction in whole or in part without written permission is prohibited. Registered in U.S. Patent Office.

James R. Rector Publisher

ISSN 1537-2102 1-800-573-2867 www.diversityjournal.com

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January/February 2003

Katherine Sandlin Senior Editor page 3

Whatâ&#x20AC;&#x2122; s possible when 70,000 people with diverse cultural, national, and family backgrounds, skills and life experiences work together toward one common vision?

Anything. Sharon Larkin, mother of two active boys and Divisional Vice President of Human Resources.

Abbott Laboratories. www.abbott.com

contents

Raising the Bar

Corporate and Non-Profit Perspectives

Volume 5, Number 1 • January/February 2003

Owning the Initiative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Communicating goals is key to the Deloitte & Touche Diversity & Inclusion Initiative.

Diversity In Education: An Evolving Curriculum A Special Feature

Ethnic Empowerment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63

Cover Story: Why Do Most Mentoring Programs Fail to Deliver? . . . . . . .6

Rabobank Heerhugowaard’s Martin Hofstede discusses the challenges of ethnic entrepreneurs in the Dutch culture.

A thought-provoking study into the mentorship process from the noted authority on the advancement of ethnic minorities in corporate America, Harvard University’s Dr. David A. Thomas.

One Voice: How a Commitment to Values Speaks to the Community . . . . . . . . . . . . . . . . . . . . . . . . . .46 To develop a diverse workforce, Georgia-Pacific reaches to the communities in which they work in creative ways.

Universities Tackle the Global Business Prerequisite . . . .11 With Dr. Myrtha Casanova, President, The European Institute for Managing Diversity/Spain and featuring stories from: • University of Barcelona/Universitat de Barcelona/Spain • University of Jyväskylä/ Finland • Center for Diversity in Global Management, Instituto de Empresa/Spain • Cornell University/USA • University of Wisconsin Milwaukee/USA

Cultural Glue: Diversity and Ethics . . . . . . . . . . . . . . . . . . .27 An ethics program and a diversity program working closely together can act as the glue that holds a company’s efforts together to achieve financial success; from Waste Management, Inc.

Towards a More Balanced Perspective . . . . . . . . . . . . . . . .53 The administration of the Milwaukee Journal Sentinel on their efforts to truly reflect the community they cover.

Leaders on Black Leaders of the 20th Century A Special Salute to Black History Month

The Lives We Celebrate . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 Twenty organizational leaders from around the globe on how they celebrate, who they emulate and why it’s important to commemorate this history, not just in February, but throughout the year. Featuring the contributions of: Anthony W. Simmons, Simmons Associates, Inc. Barbara Koontz, Xerox Corporation Daniel Hager, Contributor to the Mackinac Center for Public Policy David Ratcliffe, Georgia Power Don H. Liu, IKON Office Solutions Donna James, Nationwide Geri Thomas, Bank of America Gloria Johnson, Cingular Wireless James Dallas, Georgia-Pacific Corporation Melanie M. Platt, AGL Resources Michael C. Hyter, Novations/J. Howard & Associates, Inc. Milton C. Anderson, Cendant Corporation Pete Nanos, Los Alamos National Laboratory Robert Marchman, New York Stock Exchange (NYSE) Roxanne Decyk, Shell Oil Company Sonja Cherry-Mendenhall, Abbott Laboratories Stephen Young, JPMorgan Chase Thomas W. LaSorda, DaimlerChrysler The Employees of BMO Financial Group Warren "Pete" Miller, Los Alamos National Laboratory

The Changing Landscape Ideas from Diversity’s Thought Leaders

Verifying Your Diversity Management: The Scorecard Approach . . . . . . . . . . . . . . . . . . . . . . . . . . .61 A discussion of the Four Approaches Model to diversity management from Roosevelt Thomas Consulting and Training.

The Link between Diversity and Customer Loyalty: A Six Sigma Initiative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 Taking steps to maximize customer loyalty leads to profitability in diversity as well, says Keki Bhote, author of "The Ultimate Six Sigma."

10 Elements for Creating a World-Class Corporate Diversity and Inclusion Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 Keys to fully utilizing corporate diversity, from Novations/J. Howard & Associates, Inc.

Legal Briefings Supplier Diversity: A Market-Driven Imperative . . . . . . . . . . . . . . . . . . . . . . . . .56 Holland and Knight LLP on the elements of a successful supplier diversity program and the competitive advantages such programs represent when managed well.

One "Ordinary Joe" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40 In this address to U.S. troops overseas, Lawrence N. Self, Director of the Office of Equal Opportunity and Diversity Management at NIH, discusses the extraordinary efforts of the African-American men and women that shaped our military history.

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Currents

Profiles in Diversity Journal

StarGazing: People in the News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65

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An Evolving Curriculum

Dr. David A. Thomas

men•tor

(men’tôr) n. See Thomas, David A. Dr. David A. Thomas, Professor of Organizational Behavior and Human Resources Management at Harvard Business School, is probably one of the most widely read researchers of the advancement of ethnic minorities in corporations today. A noted authority on the challenges of managing a diverse workforce, mentoring, minority executive development, career management and leadership, Thomas has produced an overwhelming body of work reported regularly in publications like the Harvard Business Review and the Journal of Organizational Behavior. “I like to think that my research will ultimately help people of different backgrounds bring a fuller sense of themselves page 6

to the workplace. Only then will they be as effective as possible in their organizations.” David Thomas pioneered the research that explores the influence of race on the development and effectiveness of individuals and groups in organizations. His work combines three strands of intellectual interest. His first interest, mentoring, was the core of his work in the late '80s and early '90s, when he studied the influence of race on developmental relationships in organizations. “Mentoring seems to be profoundly different in cases where lines of race and gender cross, as opposed to cases in which they do not,” says Thomas. To delve into this phenomenon, he conducted an 8-year study, surveying and

Profiles in Diversity Journal

• January/February 2003

Photo by Stuart Cahill

interviewing mentor-protégé pairs at communications companies, law firms and financial services organizations. Thomas’ work also deals with the broader question of career development and advancement of racial minorities in organizations, and how organizations shape the racial dynamics of individuals and groups within. Through his research, Thomas found facilitating positive outcomes—outcomes that benefit both the individual and company—to be the most pressing issue. “The demographics of the workforce are widening and organizations are moving toward total quality, crossfunctional integration, and empowerment,” he says. “The role of leadership is evolving 1-800-573-2867 www.diversityjournal.com

out of the ‘command and control’ paradigm. In this environment, managers are going to have to know how to address issues of diversity effectively.” A popular and respected professor, Thomas teaches and acts as Course Head for the first-year, required MBA course Leadership and Organizational Behavior (LEAD), a course which puts particular emphasis on the important task of developing wellaligned, high performance organizations and on the challenges of leading change in organizations. Thomas also lectures in several of the school's Executive Programs and participates as a core faculty in Harvard Graduate School of Education's Urban Superintendent Program and in Harvard Divinity School's Leadership Development Institute. In 2000, Dr. Thomas was named the first H. Naylor Fitzhugh Professor of Business Administration. Professor Thomas holds Bachelor of Arts, Master of Philosophy, and Doctor of Philosophy degrees from Yale University, and a Master of Arts in Organizational Psychology from Columbia University. His continued consultation and research has helped both companies and individuals leverage mentoring as a developmental tool. His book, Breaking Through: The Making of Minority Executives in Corporate America, was co-authored with Harvard Business School Professor John J. Gabarro (Harvard Business School Press 1999). Breaking Through has received critical acclaim and was the recipient of the 2001 Academy of Management's George R. Terry Outstanding Book Award. We’re delighted to have the opportunity to share with you the work of this extraordinary mentor. A Diversity Journal exclusive, “Why Do Most Mentoring Programs Fail to Deliver on Their Promise?” is a thought-provoking study into the mentorship process. 1-800-573-2867 www.diversityjournal.com

Why Do Most Mentoring Programs Fail to Deliver? An Evolving Curriculum

Why Do Most Mentoring Programs Fail to Deliver on Their Promise? David A. Thomas Harvard Business School Most mentoring programs fail to produce the benefits that their designers and champions hoped they would. Many times the mentoring effort produces unintended negative results, such as cynicism about the organization’s commitment to development and employee satisfaction. When formal mentoring programs are the outgrowth of diversity initiatives, failure can significantly undermine the entire diversity effort. So, why do most mentoring programs fail? My observation, over two decades of researching, mentoring and consulting with companies on the design and development of these programs, is that most efforts violate one or more of the seven design principles I prescribe for the successful implementation of a mentoring program.

7 Design Principles for Mentoring Programs 1. Well-Defined Target Populations 2. Clear Goals and Objectives 3. A Program Design that Aligns with the Program’s Goals and Objectives 4. Education and Support for Program Participants 5. Program Feedback and Evaluation Mechanisms that Promote Learning and Adaptation 6. Executive Sponsorship and Senior Management Support 7. Integration of the Mentoring Effort with the Broader People and Organizational Development Strategies

Principle #1: Well-Defined Target Populations One of the most frequent causes of program failure has its origins at the very Profiles in Diversity Journal

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beginning of the program. What is the protégé population that the program is trying to serve and what are the developmental needs that members of this group have in common? Single programs that attempt to serve people across multiple levels of the organization and with a broad range of tenure most often fail. This onesize-fits-all approach can send mixed signals. For instance, programs that target minorities or women as protégés often place entry-level persons and seasoned managers in the same program. It is then difficult to design a process that fits both groups’ needs and the more senior minorities often worry that they will be viewed by their mentors as less accomplished and experienced than they are. The better solution would be to have two distinct mentoring initiatives. Clarity about the target protégé population should guide the identification of the appropriate mentor population. Too often there is a mismatch between protégé needs and the criterion used to select mentors. For example, a program designed to address the socialization of entry-level employees often assigns mentors who are much too senior to their protégés. While it may seem like a wonderful perk to have a senior vice president as a mentor, such persons are often too far removed from the experience of the entry-level employee and unable to adequately help the protégé.

Principle #2: Clear Goals and Objectives The intention to create a mentoring program usually emerges from an acute sense that it will improve employees’

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An Evolving Curriculum

Why Do Most Mentoring Programs Fail to Deliver?

Photo by Stuart Cahill

experience, skills or opportunity structure and provide benefit to the organization. Too often the goals of the program never gain more clarity than this vague belief that mentoring will provide some combination of benefits. Lack of clarity about goals and objectives can also come from mentoring being identified as the most implementable solution to a large and systemic problem, such as a lack of diversity in management. Any realistic assessment of this problem reveals that mentoring is only a part of the solution. The goal to produce more seniorlevel executives provides little clarity about how the mentoring pair should approach the relationship as a developmental opportunity. The designers of these programs must step back and ask “What is the larger problem we are trying to solve?” and “How

All too often the program design is not consistent with its goals and objectives. Take, for instance, a program designed to develop high-potential managers to assume general management responsibility at a large pharmaceutical company. An explicit need was for these managers to gain a broader perspective on the organization and the various functional areas of the company. Despite the aims of the program, protégés were matched with senior managers in their own functions. This occurred because as the program coordinators began to consider the criterion for matches, they focused on issues like making it easy for mentors and protégés to meet and who

The goal to produce

Programs should always be designed around the assumption that effective engagement of the mentors and protégés with one another will result in a selfsustaining relationship. Therefore, the length of time that a pair is part of the formal mentoring program should not be left open-ended. The optimal length of time must be defined by the needs of the target population and the goals and objectives of the program. For example, a program for MBAs hired into a rotational management development program should set the duration to coincide with the training period. Similarly, a program designed to facilitate a particular skill acquisition needs to reflect the time usually required for a particular learning objective. A major reason for misalignment is that creating alignment often requires changing or challenging basic assumptions and practices in the organization. Designers of these efforts must see part of the role as being a change agent. This can require educating protégés, mentors and executive sponsors about the requirements for a successful program. It also can mean going against the preferences of participants and helping them move out of their comfort zones. Part of the education process in mentoring initiatives should be designed to address these issues.

senior-level executives provides little clarity about how the mentoring pair should approach the relationship as a developmental opportunity.

does participation in a mentoring relationship help to solve that problem?” The goals and objectives are built around the answers to these questions. Goals may then speak to issues of providing protégés expanded opportunities to network with senior executives, or increasing senior managers’ personal involvement in the development of high potential minorities. These goals and objectives then form the basis for defining the role expectations of protégés and mentors as well as the minimum level of commitment required to meet those goals. page 8

Principle #3: A Program Design that Aligns with the Program’s Goals and Objectives

might be more comfortable with whom. The designers also thought they needed to respond affirmatively to protégés’ expressed desires. As they spoke with the protégés about potential matches, they found that most of them preferred a mentor in their functional area. Lost in the decision-making process were the original goals and assessment of why the effort was needed in the first place. The end result was a loss of focus on the programs goals and misalignment of its design with them.

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Principle #4: Education and Support for Program Participants Too often, program designers assume that simply putting people together will lead to the formation of a relationship. When relationships fail to form, lack of protégé motivation or insufficient mentor commitment is the usual scapegoat. 1-800-573-2867 www.diversityjournal.com

Each explanation assumes that the parties knew what they were supposed to do in the first place. My experience is that this is seldom the case. Education should always be a part of the program design. I have never found this idea to be a hard sell, but its execution is often problematic. Frequently, program designers mistake orientation sessions for education modules. In the former, notebooks with lots of articles, forms and pronouncements are given to the participants. Attendance is voluntary and often only the protégés are invited, because the mentors are assumed to be too busy or expected to know how to mentor.

Leaving a Legendary Mark: Two careers that bridge education, leadership, and community On the cover: Dr. David A.Thomas poses before a portrait of a legendary leader of Harvard Business School, H. Naylor Fitzhugh. In 2000, Thomas was honored to be named the school’s first H. Naylor Fitzhugh Professor of Business Administration.

Photo by Richard A. Chase

Why Do Most Mentoring Programs Fail to Deliver? An Evolving Curriculum

“It was an honor,” says Thomas. “He introduced innovations in business and business education that translated into opportunities and economic benefits for African Americans. He was a counselor and mentor, and an advocate for building constructive relationships across differences of race and community. I’ve tried to pursue parallel themes in my own work, and involved myself in helping organizations better understand and successfully manage diversity.”

On the other hand, effective educational support of program participants has several Naylor Fitzhugh graduated from Harvard Business School in 1933, one of the first African features. First, it is a requirement to Americans to graduate from the prestigous school. He was a business and community leader in participate in the program regardless of his hometown of Washington, D.C., and was a member of the city’s New Negro Alliance in the role. Second, the education module should early ‘30s. He served as faculty member of Howard University for over 30 years, and was one of have a workshop format that allows the co-founders of the Howard University Business School. In 1965, he became the first and participants to explore their own assumphighest ranking black executive in corporate America as a marketing executive at PepsiCo, and tions about building developmental relais credited with conceptualizing the principles of ethnic-based marketing that are now widely tionships and creates a forum to hear from used by companies everywhere. Always the mentor, he developed “Learn and Earn,” the awardothers. Third, the curriculum should winning educational program in conjunction with the Distributive Education Clubs of America directly address specific challenges that are (DECA) that introduces high school students to business through hands-on economic education. likely to present themselves for participants. He was also the founder of the National Black MBA Association. For example, programs that are targeted toward minorities or women should address He maintained his ties to HBS, helping to found the Black Alumni Association and becoming its issues related to cross-cultural and crossfirst chairman in 1978. He passed away at the age of 82 in 1992. gender mentoring. Organizations that are about how relationships are progressing fast-paced, and high-pressure cultures with effective use of their relationship. should be assessed at several intervals unpredictable workloads, need to address Principle #5: during the program. Coordinators should time management issues. Program Feedback and use this information to evaluate how they need to support mentoring pairs. An The need to support mentors and protégés Evaluation Mechanisms that Promote Learning and Adaptation efficient intervention is to send out a seldom ends after the initial education Frequently, we discover that things are not program update that provides participants modules. There may be other points in working after it is too late. Perhaps even information about best practices and allows the program’s time frame when it makes more problematic is our failure to know them to reflect on how they can leverage sense to bring together participants for what is working and to diffuse that their relationships more effectively. Interim educational activities. Program managers knowledge across the program to program feedback is also important to should also have mechanisms in place to participants such that learning and plan educational events and modify the support individuals who need coaching or experimentation are facilitated. Feedback program design. counseling about how to make the most 1-800-573-2867 www.diversityjournal.com

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An Evolving Curriculum

Why Do Most Mentoring Programs Fail to Deliver?

Summative evaluation occurs at the end of the program and, where appropriate, may extend well beyond the program’s official end point. For example, a program with the goal of increasing employee retention might require tracking the retention of program participants for two or three years to assess whether retention is higher among those who participated in the program than those who did not in prior years. It is crucial that these summative evaluations measure behavioral and affective outcomes directly related to the program’s goals.

manager’s unit as a criteria for assessing their performance on the “developing people” leadership competency that all were measured on in the annual appraisal process. As a result, complaints from protégés about senior managers’ lack of support for the program declined precipitously. As they became more engaged, several of these senior managers expanded the mentoring effort within their units.

Where the top management is not associated with the mentoring effort, it usually fails to secure adequate resources and support from management. Successful designers of these programs understand this and often seek out an executive sponsor. The effective executive sponsor spends visible time on the program and participates as a mentor where appropriate. Often there is a need to generate support and understanding among the senior managers and bosses of protégés and mentors. These individuals are critical to sustaining long-term success. Failure can result when these individuals refuse to give participants the flexibility they need to fully engage with their mentors. Executive sponsors need to take the lead in this work. For example, when the executive sponsor of a telecom company’s mentoring program became aware that senior managers were not supporting the effort as a business initiative, he took action. The next senior staff meeting was extended by three hours to include educating the senior managers about their leadership role in the initiative. Furthermore, the executive included the success of the program in each senior page 10

Photo Tom Fitzsimmons

Principle #6: Executive Sponsorship and Senior Management Support

Programs should always be designed around the assumption that effective engagement of the mentors and protégés with one another will result in a

self-sustaining relationship.

Principle #7: Mentoring Efforts Should Complement and be Integrated with Key HR and Leadership Development Efforts Mentoring programs are most effective when they complement and are reinforced by other people, development and business practices. Mentoring alone will seldom address the root causes that make a formal program necessary. Thus, it is important to make sure that mentoring is an integrated part of a larger effort and commitment to creating a developmental culture within the organization. The Federal Reserve Bank of Chicago has effectively done this with their mentoring initiative. Several years ago

Profiles in Diversity Journal

when the new president was appointed, he saw the need to reinvigorate the culture. He began a culture change process that initially did not have mentoring as one of the key strategies. At about the same time a group looking at issues related to workforce diversity identified mentoring as a core strategy for addressing a number of issues that had emerged in their study. The president of the bank, aided by the executive sponsor for the program and the program coordinator, was diligent about making sure that the mentoring project was seen by all as part of the overall culture change strategy. Design choices for the program were also made in a manner that reinforced other aspects of the culture change. There was also attention to transferring learning from the mentoring process to other people development initiatives that were underway.

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Conclusion My research over the past two decades has consistently shown that when implemented effectively, mentoring programs can provide significant benefits to participants. Thus the message from the fact that most programs fail is not to abandon these efforts, but to make the upfront investments in design and education that will allow them to succeed on a large scale. PDJ Dr. Thomas can be reached by mail at Morgan Hall, Harvard Business School, Boston, MA 02153, or by e-mail at dthomas@hbs.edu. 1-800-573-2867 www.diversityjournal.com

An Evolving Curriculum

UNIVERSITIES TACKLE THE

global business prerequisite

TOMORROW’S LEADERS NEED FORMAL FOCUS ON DIVERSITY with Dr. Myrtha Casanova President The European Institute for Managing Diversity/Spain Instituto Europeo para la Gestion de la Diversidad

We all recognize diversity management as a business imperative. Leadership commitment is the prerequisite for the establishment of a diversity corporate policy in any company or organisation. The challenge, then, is to select and train managers and executives in the organisation—those who have the professional management competence to acquire expertise in the development of diversity policies—to contribute efficiently to corporate objectives. This is necessary because diversity techniques have not been included as a core education subject in Universities and Schools of Business Administration.

Students at Instituto de Empresa, one of the top ten business schools in Europe and where diversity management courses are an integral part of the curriculum.

1-800-573-2867 www.diversityjournal.com

Diversity management is an entrepreneurial/social science. And as such, leaders committed to implement diversity policies must deliver results aimed at: • Increasing corporate results • Fostering innovation and creativity • Reducing/optimising structural and operational costs • Including all stakeholders in the process and objectives of the organisation • Creating a supportive, inclusive Profiles in Diversity Journal

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environment for all diverse employees to balance work/life issues • Guaranteeing the sustainable success of the organisation in future scenarios. Strategies, methodologies, skills development, program design, evaluation and measurement techniques, communication systems, results analysis, mechanisms to leverage diversity policies involving internal and external stakeholders, contribution to shareholder value, social responsibility, community involvement, quality in diversity management schemes, sustainable development, diversity marketing, research and awareness development techniques ... All areas of professional expertise required by diversity leaders are mainly being acquired on the job; through experiencing, testing and then turning this acquired experience into a system. Today and in the future, companies will depend more and more on the competence and professional expertise of its diversity leaders to create inclusive environments that will drive the organisation to achieve corporate objectives. Diversity management is a

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An Evolving Curriculum Universities Tackle the Global Business Prerequisite transversal, embedded policy in the organisation, a natural and logical evolution from segmentation (focusing on minorities); to inclusion (involving all employees in present and future corporate objectives).

Given the growing demand for managers with diversity expertise, it is fundamental for Universities, Schools of Business Administration and other education centres to include diversity management as part of their curricula.

The successful contribution of diversity policies lies, then, on the awareness and commitment of all employees of the organisation—in their daily decision making, in their daily interaction with colleagues—to increase efficiency and innovation and leverage personal and collective values. It is then the company responsibility to create the supportive environment for employees to develop all their potentialities and create work/life programs which allow all diverse employees to balance personal and professional life.

The European Institute for Managing Diversity is acting as an observatory and as a catalyst of this emerging need, and collaborating with several Universities and Schools of Business Administration to introduce diversity related subjects in faculties of economics, sociology of work, international business and others, as a core transversal competence.

PDJ

Dr. Myrtha Casanova

The European Institute for Managing Diversity invites education centres to contact them and share their projects and experiences for future publications. Contact the author at mcasanova@tsai.es, or by writing The European Institute for Managing Diversity, Sant Mario 19-21, 08022 Barcelona, Spain. Tel: 00.34.418.54.15

diversity and social responsibility education UNIVERSITY OF BARCELONA/UNIVERSITAT DE BARCELONA There is a high degree of diversity in the labour market, although frequently the labour market operates taking into account traditional parameters not considered in the new socio-economic dynamics. Therefore the process of introducing new indicators, whether of diversity or those related with social responsibility, meet with a resistance to change in corporate organisational cultures. Distance learning is an essential element at different levels in this awareness process. In moments of introduction of a new focus or concept, or of new factors which foster the design of tailored programs, or in anticipation of certain situations which have an impact on the people that work in the organisation, this learning can be instrumental in leveraging the resources page 12

and optimising the full potential of the working human capital. There are departments at the University of Barcelona where there is no specific education program in diversity management and social responsibility (work/life issues), although there is a trend of introducing related concepts in business administration, economics, organisational development, sociology, political sciences and administration. Now we find that those career studies are starting to introduce subjects such as diversity management, work/life policies, and equal opportunity, focusing not only on gender but on other diversities as well. Since the early nineties, overall our faculty has researched awareness of these concepts

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and the results have become part of the curricula. Carmen Dominguez Alcón, Professor of the Sociology and Organisational Research Department of the University, promotes the inclusion of these subjects in the curricula of different faculties. Subjects include: Sociology of Women, Women and Society, Specific Public Policies, Gender Policies, and Social Policies. Dr. Dominguez Alcón has conducted research published by the Ministry of Labour and Social Affairs. The Institute for Women has also funded research as part of the National Program of Research and Development within the Sector Research Program for Women and Gender Issues. The Research focuses on conciliation of work and family life, an issue that interests 1-800-573-2867 www.diversityjournal.com

Universities Tackle the Global Business Prerequisite

An Evolving Curriculum

finland’s national imperative

UNIVERSITY OF JYVÄSKYLÄ

Anna Savileppä heads the diversity management education programs at Uniservices Ltd, a consult company owned and established by the University of Jyväskylä. She has been actively researching the development and implementation of diversity practices worldwide. For companies in Finland, diversity management is a business as well as a social imperative. Finland also has a relatively high number of companies that operate on an international level. NOKIA and KONE are but two examples of the strong entrepreneurial global vision that drives Finnish companies to leverage international opportunities and markets. To meet the need for qualified human capital, given the international projection of local companies, Uniservices Ltd offers comprehensive diversity management

programs, one of which is a two-month program in diversity management. The curriculum offers an overall view of diversity management methodology, giving particular attention to developing practical skills in day-to-day leadership, recruitment, and evaluation of diversity policies. Part of the methodology of the program includes analysing best practices of companies in Finland, Sweden, the UK, Canada and the United States, which allows the students and participants to develop benchmarking techniques as they implement diversity policies in their organisations. Individual development work contained in the program links the learning practices of one’s own working community through participatory assignments and workshops. Uniservices Ltd also offers diversity management workshops. These

the Directorate General of the European Union Equal Opportunity Commission.

Under the direction of Dr. Carmen Dominguez Alcón, Professor of the Sociology and Organisational Research In 2001, the University Department, University of of Barcelona Barcelona has begun to offer scheduled and diversity management as an approved a course on optional subject within many managing diversity as career studies. an optional subject within many career studies. Dr. Dominguez modules in all faculties. Presently a Alcón was in charge of this project. planning committee has been set up to There is no doubt regarding the interest of the University of Barcelona regarding these subjects. There is also a firm commitment to promote diversity management and social responsibility as core learning 1-800-573-2867 www.diversityjournal.com

program activities that promote these subjects through Seminars for Women and Gender Study in the Department of Sociology and Organisational Research, both under the coordination of Dr. Dominguez Alcón. Profiles in Diversity Journal

•

Anna Savileppä Program Director Uniservices Ltd workshops can be a one- or two-day session. Some sessions focus on teamwork; particularly acquiring multicultural skills to leverage group efficiency and innovation; other sessions focus on recruitment practices to support corporate diversity policies and objectives. The company also offers training sessions tailored to meet the competence PDJ needs of specific organizations. The diversity management education menu offered by Uniservices Ltd/University of Jyväskylä can be found on the website www.uniservices.fi/diversity.

These activities are being organised in coordination with the heads of faculties, particularly those more directly related with the learning in the areas of business administration, economics, business sciences, and training for organisations. These faculties recognise the vital importance of introducing diversity management and corporate social responsibility into their curricula as a way of achieving excellence, reducing costs, and creating policies that leverage the loyalty of employees. These goals improve the relations between the company and the employees, as well as other important business imperatives that influence the productivity and financial results of the PDJ organisation.

January/February 2003

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An Evolving Curriculum Universities Tackle the Global Business Prerequisite

bridging the gap between formal education and professional imperatives Center for Diversity in Global Management • Diversity of cultures, skills and genders is not only a fact in today’s corporate world, but a Celia de Anca strategy for Director Center for Diversity business in Global Management Instituto de Empresa survival. The mission of the Center for Diversity in Global Management at Instituto de Empresa is to internationally foster the integration of diversity as a tool to improve business performance.

can improve corporate and boardroom performance by introducing new voices with different, often innovative, leadership approaches. Yet, true diversity is still rare at senior management levels. Rigid attitudes of just what a leader should be continue to prevent talented individuals who don’t fit the box from reaching the top and contributing their full potential. In emerging market countries, the most critical need for harnessing the power of diversity concerns women. The inclusion of women in the economic process is a fundamental catalyst for dynamic social and economic development at the macro level, and would help make companies there more competitive at the micro level, as well. Yet, too many women remain excluded from the economic mainstream, to the detriment of their societies and their own individual lives.

The mission includes a two-pronged strategy. One focuses on getting companies in Europe and the United States to embrace diversity of cultures and skills in senior management. The other focuses on gender in emerging markets, educating women To fulfill its mission, the Center is divided from the Arab world, Latin America and the into three program areas: former Soviet bloc to be executives and entrepreneurs. Based in Madrid, the Center for Diversity in Global Management is supported by the Instituto de Empresa Fund in the United States. The Center’s mission and strategy leverage off the geographic and academic strengths of the Instituto de Empresa and respond to crucial needs. In the Western industrial world, societies themselves are becoming increasingly diverse. Companies that think strategically realize that a varied talent pool is an essential business asset. Embracing diversity page 14

Profiles in Diversity Journal

INSTITUTO DE EMPRESA The Corporate Program: Building Diversity in Management Professors and students research and write case studies of companies that do it right and wrong in promoting diversity in senior management. The case studies, plus learning tools and other applied research, form the basis for executive seminars, individual consulting contracts, curriculum development and academic conferences around the globe.

The Program for Women in Management from Emerging Market Countries: Building Entrepreneurs and Executives The target audience is women from the Arab world, Latin America and the former Communist countries of Central and Eastern Europe. Under the program, the center provides scholarships to bring women from those countries to study for an MBA at the Instituto de Empresa, or provides business mentoring for them in their home countries.

The goal is to close the gap between the education of business students and the needs of the business community regarding diversity competencies. • January/February 2003

1-800-573-2867 www.diversityjournal.com

Universities Tackle the Global Business Prerequisite “Diversities of emotions, focus, values and the perception of realities may turn into an essential resource for companies to manage in the twenty-first century. Only the leaders capable of understanding the complementary aspect of differences will leverage this potentiality. Diversity management is not a simple formula that can be applied to obtain profits, but rather is a way of perceiving the person in relation with his or her environment. It is thus a

For those on scholarship, an MBA fosters a woman’s assertiveness and communication skills, and provides professional networks that can further aid her career advancement. The women study in the Instituto’s highly international environment with top specialists in the management field.

The mentoring program helps women entrepreneurs who own micro-enterprises to grow their businesses into larger, mediumto be acquired and developed. Therefore it is compulsory for education centers to sized businesses, in the process moving from what often is the integrate diversity management as part of informal sector to the formal its curricula for students to acquire economy, generating jobs and tax the essential skills required to become excellent payments. The women themselves managers in their professional life.” are also personally empowered Maite Sarrio Catalá Secretary General, Center for Diversity in Global Management in a quest for greater equality and Instituto de Empresa more rounded lives.

competence and a skill

An Evolving Curriculum

A Global Forum In support of the two programs just outlined, the Center for Diversity in Global Management provides a global forum in which leading academics and practitioners meet regularly to share experiences and discuss results. The purpose is to shape further lines of action. This institution has a strong commitment to closing the gap between the system of education for business students and the needs of the business community for the competencies and capabilities that can contribute to the efficiency, innovation and sustainability of corporate performance in global scenarios. PDJ

Instituto de Empresa is among the top ten business schools in Europe and is a pioneer of diversity management as a core education subject. For more information, visit www.ie.edu.

a link to organizational performance

CORNELL UNIVERSITY

At the School of Industrial and Labor Relations, Cornell University focuses on some of the most important issues in the workplace: protecting jobs, increasing productivity, computerization, worker participation, labor law, international labor relations, expanding and declining labor markets, and new methods of decisionmaking in business and government. A new and highly integral part of this focus was the addition of a Diversity Management Certificate. Led by Christopher J. Metzler, Associate Director, EEO and Diversity Management Studies, Cornell’s Diversity Management Program offers students an in-depth awareness of this increasingly complex, highly specialized field. A specialty in this area helps link diversity as a concept to organizational and

work performance. Students receive foundational knowledge and expertise in diversity training, diversity strategy, diversity measurement, and other aspects of making diversity an integral component of how corporations conduct business.

1-800-573-2867 www.diversityjournal.com

Profiles in Diversity Journal

The core curriculum for the program consists of courses in the law of equal opportunity, fundamentals of diversity initiatives, leveraging diversity, strategic business thinking, and the essentials of developing and delivering diversity training. Ancillary courses include the study of influence strategies, strategic staffing, the changing work/life paradigm, promoting employee recognition, and others focused on the diversity competencies and skills required in today’s global workforce. •

Cornell University opened the Christopher J. Metzler nation’s Associate Director, EEO and first School Diversity Management Studies of Industrial and Labor Relations in 1945 and has remained the nation’s pacesetter when it comes to the tools required for dealing with the changing American workplace. The faculty—specializing in human resource management, organizational behavior, labor law, history, collective bargaining, economics, social statistics, and international labor relations—provides the largest concentration of distinguished PDJ scholars in the field. For information on the Diversity Management Program at Cornell, contact Christopher Metzler at cm277@cornell.edu.

January/February 2003

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An Evolving Curriculum Universities Tackle the Global Business Prerequisite

creating a critical link to community business The Milwaukee Center for Workplace Diversity • Located at University of Wisconsin Milwaukee School of Business Administration, the new Milwaukee Center for Workplace Diversity was created to facilitate measurable progress toward the recruitment, advancement and retention of a diverse workforce in Milwaukee and Southeastern Wisconsin. Funded in 2002 by the Greater Milwaukee Committee, in partnership with the Metropolitan Milwaukee Association of Commerce and University of Wisconsin Milwaukee, the Center was designed to serve as a “clearinghouse” for professional development, collaborative action and the dissemination of expert knowledge from area diversity scholars, providing local organizations with hands-on assistance in developing, implementing and evaluating diversity programs.

UNIVERSITY OF WISCONSIN MILWAUKEE

and professionals in Southeast Wisconsin by providing diversity training and certifications in workplace diversity, advisory services that help organizations develop and evaluate diversity programs, and by sponsoring forums and events that disseminate the Center’s research, promote networking among local organizations, and benchmark effective practices. In its role as “information clearinghouse” for the area, the Center is working to create a community-based Knowledge Bank that fosters the sharing of information among local organizations, a Talent Referral Service that increases employee diversity, and networking and mentoring activities aimed at supporting the careers of minority students and employees.

In the near future, the Center hopes to make available applied research, to provide The University serves as the “hub” of the the community with data-driven solutions Center activities aimed at developing to practical problems faced by its local organizational networks, supporting the organizations. The research arm of the careers of minority employees, and Center was designed to provide expanded pooling the expertise of diversity scholars research capabilities through consortium partnerships with other colleges and Local businesses and organizations will Local businesses and organizations will universities in receive hands-on assistance in developing, receive hands-on assistance in developing, Southeastern implementing implementing and and evaluating evaluating diversity diversity Wisconsin.

A WIN-WIN for the Community:

programs. programs. Minority Minority students students will will not not only only receive receive help entering the workforce, but help entering the workforce, but will will continue to receive the training and continue to receive the training and networking networking support support that that will will enable enable them them to advance in their organizations and to advance in their organizations and grow grow within the community. within the community. page 16

Profiles in Diversity Journal

Executive Director Amy Batiste believes The Milwaukee Center for Workplace Diversity will

• January/February 2003

Amy Batiste, Ed.D. Executive Director become a national model of a community-sponsored Center that partners with local universities in promoting and supporting a diverse workforce. Milwaukee is the first city in the nation to host such a center. Besides providing a critical link between UWM and the Milwaukee business community, the Center offers UWM students the advantages of student mentoring and internship programs. Minority students will not only receive help entering the workforce, but will continue to receive the training and networking support that will enable them to advance in their organizations. PDJ For information about The Milwaukee Center for Workplace Diversity, contact Amy Batiste (414-229-5548) or Program Manager Robert Holm (414-229-2272) by phone, or by e-mail at rholm@uwm.edu

1-800-573-2867 www.diversityjournal.com

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Raising The Bar

Deloitte & Touche

owningthe initiative

COMMUNICATING GOALS IS KEY TO THE DELOITTE & TOUCHE DIVERSITY INITIATIVE Redia Anderson National Principal, Deloitte & Touche’s Diversity & Inclusion Initiative

T he journey toward a diverse and inclusive culture is not an easy one. It is, indeed, a journey, not a short trip, as largescale organizational change is often a very slow and long process. At Deloitte & Touche, we know the journey to inclusion requires commitment, steady gains, and a defined sense of the desired outcome. We have made steady progress, and have put the mechanisms in place we believe will help us move forward so we can help our people, our clients, and our business excel. Over the past year and a half Deloitte & Touche has created and implemented a firm-specific strategy to make diversity a hallmark of our culture, success, and the way we do business. Our leadership team owns the success of our Diversity and Inclusion Initiative just as we do with any of our other business initiatives. In our experience, a key challenge proved to be communicating expectations to the U.S. practice of Deloitte & Touche, comprising more than 28,000 professionals, and creating the consistent metrics by which to gauge our success.

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At the end of the day, our people look to our leadership to set the tone and expectations through their behaviors.

At the end of the day, our people look to our leadership to set the tone and expectations through their behaviors. Rhetoric is just that. It won’t galvanize people or help them understand what is expected of them nor understand that for which they will be held accountable. It is still true that actions speak louder than words and, in this arena, this is especially true. The onus falls to leadership to articulate the case and the expectations for action, and then to hold management and individuals accountable for those actions.

Stating the case But why would an organization create a diversity initiative? In response, we offer our “Top Ten Reasons” for creating a diversity initiative: 10. The firm’s growth targets are aggressive. At the same time, our nation and our industry face challenging times. We must be leaders! 9. Our clients value and focus on diversity and expect the same from our firm.

Profiles in Diversity Journal

• January/February 2003

8. Our clients’ clients are diverse. 7. Clients are looking for diversity on our work teams and expecting us to bring fresh, new ideas and breakthrough solutions to the table. 6. The competition is stiff. We need to recruit the best people, bring together the best teams, develop the best ideas, provide the best service, and create brand eminence. 5. Building a culture that values diversity improves retention, and our clients benefit from greater continuity of service. 4. Our clients are globalizing and expanding, too, so we’re encountering a richer mix of people, viewpoints, talents, and experiences. 3. The firm is continuing to globalize operations and expand our client base. We need global thinkers. 2. Diversity is a core value woven into our strategic business plans and themes. It’s linked to our shared beliefs—strength 1-800-573-2867 www.diversityjournal.com

Owning The Initiative through cultural diversity—and key to the success of our mission, vision, and goals. And our number one reason: 1. We work in teams; thus, we must fully optimize the skills and talents of every member of our team. Talent does not come in any particular package.

The challenge is to leverage the differences in thinking and cultures for the benefit of the firm and our clients. Diversity within engagement teams is the way that we will win in the marketplace. Talent identification, attraction, and retention are key elements of our successful diversity strategy, and our business strategy as well.

Diversity is more than race and gender We believe that while race and gender are still keenly important to our firm and society at large, and still must be addressed effectively, they nevertheless represent only two dimensions of diversity. We compete in a national and global marketplace and, as such, we’ve developed a broad definition of diversity.

We strongly believe client service teams replete with divergent experiences, backgrounds, and perspectives provide clear benefits. The benefits are: 1) earlier identification of client issues, often due to greater cultural understanding and sensitivity; 2) better defined problems and a more focused solutions delivery; 3) increased work efficiency through greater communication; and 4) client satisfaction. Understanding, appreciating, and leveraging these differences is what continues to frame our firm’s competitive edge.

We define diversity as “…a collective mixture of individuals, cultures, and organizational expertise. It is all these differences that make each of us unique, and the commonalities that connect us.” This definition includes nonconventional dimensions of diversity, as well as many of the more traditional primary dimensions, such as age, ethnicity, gender, and national origin. (See Figure 1.)

For Deloitte & Touche, our goal is to ensure our people and our clients benefit from a strong, active commitment to diversity in the workplace and the marketplace. We’ve put in place a solid foundation. Our diversity strategy is built ROLE IN THE FIRM FUNCTION

LEVEL EDUCATION RELIGON SERVICE LINE

Figure 1 (Marilyn Loden, Implementing Diversity, McGraw Hill, New York, New York, 1996.)

MILITARY STATUS VALUES

WORK EXPERIENCE

PRIMARY

CLASS

MENTAL/ PHYSICAL ABILITY AGE

NATIONAL ORIGIN

DIVERSITY DIMENSIONS

THINKING STYLE

WORKING STYLE

RACE

INDUSTRY SPECIALIZATION

MARITAL/ ETHNICITY DEPENDENT GENDER STATUS SEXUAL ORIENTATION

APPEARANCE LANGUAGE

PREDECESSOR FIRM

GEOGRAPHIC LOCATION

CREDENTIALS

SECONDARY ORGANIZATIONAL

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REGION TENURE WITH THE FIRM

Profiles in Diversity Journal

•

upon two fundamental building blocks— infrastructure and accountability—and four strategic drivers—leadership, people, education, and communication. • Infrastructure: To ensure we continue to advance our objectives, Bill Parrett, U.S. managing partner of Deloitte & Touche, serves as champion for the initiative. We have established an internal structure of function and cluster diversity leaders and councils to ensure we continue to

We We work work in in teams; teams; thus, thus, we we must must fully fully optimize optimize the the skills skills and and talents talents of of every every member of our member of our team. team. Talent Talent does does not not come come in in any any particular particular package.” package.” Redia Anderson

Putting our strategy to work

Why do we choose to define diversity so broadly and unconventionally? Because we believe diversity includes everyone.

Raising the Bar

January/February 2003

advance and implement our initiative on a regional and local level. Business Resource Groups, which exist within some of our clusters, bring groups of people with similar interests and backgrounds together who want to share information regarding professional and personal development. • Accountability: At Deloitte & Touche, we have implemented a number of accountability practices and processes by which we hold our firm leadership and professionals responsible for achieving our diversity goals. We have also commissioned an external advisory board of prominent national leaders and authorities, who come from business, academia, and government. We’ve voluntarily created this board, and we are the only professional services firm that has done page 19

Raising the Bar

Owning The Initiative

so to drive diversity and inclusion accountability. We created this board because of the value a diverse and inclusive culture holds to us; the members will provide candid opinions and insights of our progress and make recommendations to improve our existing culture. • Leadership: Support from leadership— both on the national and local level—is critical for a successful culture change. In addition to our U.S. managing partner Bill Parrett, the national and local leadership are the champions of our initiative, and they work with our channel, function, and cluster diversity leaders and their councils to create plans annually to help our professionals advance the diversity initiative within the firm. (Bill Parrett, the firm’s champion, authored an article in Profiles in Diversity Journal’s Sept./Oct. 2002 issue.) • People: Deloitte & Touche supports recruitment, internship, and academic development programs for persons of color at the undergraduate and graduate levels. Our commitment to diversity in the workplace extends to training, development, mentoring, and succession planning for all the people of Deloitte & Touche. We track our highly talented people to ensure that they receive the appropriate training and obtain assignments to prepare them for greater responsibilities. • Education: Encouraging and indeed sometimes changing the way people view certain things affects their behaviors. Education, along with accountability, is very important to understanding and advancing any cultural change initiative.

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Diverse Perspectives, Common Goals, our diversity education course, was rolled out in December 2000. This mandatory oneday diversity awareness training course is highly interactive and allows our people— more than 28,000 across the United States, including top leadership—to discover the role diversity and inclusion plays in our day-to-day business environment, and how it enriches our personal lives as well. So far, more than 10,000 professionals have gone through the course and the feedback regarding the effectiveness of the course has been excellent. Many of our cluster offices conduct “mini-workshops” and awareness sessions on an ongoing basis as well. • Communication: At Deloitte & Touche, we have implemented a comprehensive communication plan that: -supports the business case for diversity and its link to the firm’s strategies; -highlights our progress; -defines our strategies and challenges for the future; -explains the role each of us can play in promoting inclusiveness; -reports on successes and challenges.

Diversity strategy brings recognition to Deloitte & Touche Although we still have a great deal yet to accomplish, we’ve received accolades for our results-oriented approach and our progress-to-date. DiversityInc.com ranked Deloitte & Touche as 13th in the top 50 for our diversity initiative. Black Collegian magazine ranked Deloitte & Touche fifth on its list of “Top 100 Employers for 2002” in the area of recruitment. Training magazine placed the firm in ninth place on its “2002 Training Top 100” list, the only national ranking of companies based on investment in workforce training and development. And for the sixth consecutive year, Deloitte & Touche was named to

Profiles in Diversity Journal

• January/February 2003

Fortune magazine’s prestigious list of “100 Best Companies to Work for in America,” and one of the “100 Best Companies for Working Mothers” by Working Mother magazine for the eighth consecutive year. In addition, we have won several large client engagements because of our ability to understand the importance of diversity on our engagement teams; our ability to meet the client’s needs through diverse subcontractors; and our philanthropic giving and our community relations work in the communities where we do business. Diversity and inclusion equal marketplace success. As you can see, the so-called “soft things,” read as diversity by some, can definitely have a very hard impact on your business.

The journey will continue While we are proud of our accomplishments to date, we recognize much more remains to be done before Deloitte & Touche can fully reflect and offer the national and global diversity of its offices in 141 countries worldwide. Every day, we take small steps forward. At Deloitte & Touche, we are determined to lead, to push the envelope, be original, and take risks! We’ve laid a strong foundation, and we will continue to build on this initiative through strong, sustainable processes and ideas for years to come. PDJ Redia Anderson is National Principal, Deloitte & Touche’s Diversity & Inclusion Initiative. For more information, contact Natalie Webb, Manager, National Public Relations at nawebb@deloitte.com

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It’s about valuing a variety of talents and perspectives. It’s about supporting creative efforts and opinions. And it’s about being your best, while always being yourself. To learn more about our diverse environment, products and opportunities, visit: www.kelloggs.com

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The Changing Landscape

Keki R. Bhote Associates

THE LINK BETWEEN

diversity customer loyalty A SIX SIGMA INITIATIVE

Keki R. Bhote President, Keki R. Bhote Associates and author of The Ultimate Six Sigma

them do not realize that the customer train has left the station without them. What are the facts? • The Juran Institute states that fewer than 2 percent of companies are able to measure bottom-line improvements from increased customer satisfaction levels. • 15 to 40 percent of customers, who say they are satisfied, defect from a company each year. • In the U.S. auto industry, the average re-purchase rate of satisfied customers from the same car company is less than 30 percent. The first of these articles, in the November/ • The defection rate of customers over the age of 65 is 40 percent, for those over the December 2002 issue of the magazine, age of 35 it is 60 percent, and for those focused on measuring, analyzing and between the ages of 20 to 35, it is more improving minority retention—A Six Sigma than 85 percent. Methodology. This article concentrates on • Studies have proved that there is little the all-important initiative for enhancing correlation between customer satisfaction customer loyalty and, specifically, minority and profit. customer loyalty. y article in Profiles in Diversity Journal, September/October 2002, formulated a viable survey instrument using a Six Sigma methodology for measuring the impact of diversity on business performance. It generated a great deal of interest among companies in the forefront of diversity. As a result this benchmark magazine has requested me to write a series of articles on how to—not just measure— but improve a company’s diversity score, from a lowly Three Sigma to a world class Six Sigma level.

The Inadequacy of Catering to Just Customer Satisfaction Many companies have jumped on the customer satisfaction bandwagon, yet most of page 24

• A 5 percent reduction in customer defection generates profit increases from 35 percent to 120 percent. • An increase in customer retention (the opposite of defection) of 2 percent results in reducing operating costs by 10 percent. • Loyal customers provide not only higher profits, but also more repeat business, higher market share and more referrals than do just satisfied customers. • It costs seven times more to find new customers than to retain existing customers. • One lifetime customer is worth over $850,000 to a car company (based on 10 purchases of $25,000 each, multiplied by three referrals, plus $100,000 in profits from finance charges, parts and service). There are five key disciplines for a company to maximize customer loyalty, i.e., retention and customer longevity.

Discipline 1: Measuring and Quantifying the Cost of Customer Defections Unfortunately, over 99 percent of companies do not measure the defection rate of their core customers or the cost of such defections. Worse, their pathetic financial and accounting operations do not even know how to estimate such cost. This is one of the ten most important profit leaks in a company. Contrary to conventional wisdom, customer defection is actually easier to measure than customer satisfaction. The formula is simple: one customer defection equals the loss of one sale times the number of purchases in a lifetime (say 10) multiplied by bad-mouth referrals (at least 3) plus auxiliaries (such as financing, service, parts).

What are the facts on customer loyalty? • Similar studies show a very close correlation between customer loyalty and profit.

Profiles in Diversity Journal

• January/February 2003

1-800-573-2867 www.diversityjournal.com

Diversity & Customer Loyalty Discipline 2: A Reduction of the Customer Base, or Differentiation The conventional wisdom is to sweep the floor and haul in as many customers as possible. The truth of the matter is that not all customers are worth keeping, just as all suppliers, distributors and dealers are not worth keeping. Differentiation means separating your customers by categories. • Platinum and Gold Customers constitute only 25 percent by volume but account for almost 60 percent of the profits.

“Taking steps to maximize customer loyalty/retention is a mighty discipline, long neglected by companies; and yet, if implemented, can lead to profitability as few other techniques can master.

Discipline 3: Capturing Customer “WOW” Traditionally, it is the “voice of the engineer” or the “voice of management” rather than the “voice of the customer” that determines what a customer wants. This disconnect is a sure recipe for 80 percent of new products ending up on the ash heap of the market! Instead, two proven techniques— Mass Customization and Quality Function Deployment—are used to truly determine what the customer wants, how he wants it, when he wants it and at what price. There are many elements that make up customer enthusiasm—quality, price, delivery, safety, technical “bells and whistles,” etc. But two elements are especially important: 1. Any element that is missing from your product 2. Any unexpected features that surprise and delight customers, leading to their “WOW” and capturing their loyalty.

Its potential for profitability in diversity can be equally dramatic.” Keki Bhote Author of “The Ultimate Six Sigma”

They are the crown jewels, the most loyal and the most difficult for competition to dislodge. • Silver Customers account for 35 percent by volume and almost 40 percent of the profits. They are worth cultivating but not as assiduously as the platinum and gold customers. • Bronze and Tin Customers occupy 40 percent by volume but actually create a drain on profits to the tune of 20 percent to 30 percent. If they cannot be reformed, they should be given to your competition!

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Differentiation, therefore, enables you to get rid of these stepchild customers and focus your resources and shower your attention on the core customers.

Discipline 4: “Taking the Customer’s Skin Temperature Every Day” A significant difference between a successful and an unsuccessful company is the difference between close personal partnerships with the customer versus a tepid cultivation of the customer. Konusuke Matsushita, the legendary founder of the Matsushita Empire, insisted that his sales force “take the customer’s skin temperature every day!” This entails: • Forming a win-win partnership with core customers based on mutual trust and mutual help.

Profiles in Diversity Journal

•

January/February 2003

The Changing landscape

• Keeping a constant pulse on every core customer—his needs, his concerns, his irritation—not once, but at all times and especially after the sale is consummated. • Establishing close personal relationships based on mutual trust. • Periodic visits by top management to get unfiltered customer information.

Discipline 5: Establishing a Company Infrastructure for Customer Loyalty This is the heart of measuring, analyzing and improving customer loyalty. The infrastructure consists of: • Establishing a top management steering committee to guide the maximizing of long-term customer retention • The appointment of a Chief Customer Officer (CCO) as a customer czar, in importance next only to the CEO • Developing meaningful metrics to track customer retention • Creating a high-octane SWAT team to analyze and reduce customer complaints and defections—potential and actual.

Customer Diversity Metrics: The Percentage of Increase in Minority Customers per Year There are several metrics associated with customer loyalty: • Defection rate (defecting customers as a percentage of total number of core customers) • Amount and longevity of core customers (by number, by dollars, by time) • Repeat purchases by core customers. • Referrals by core customers • Correlation of customer retention with profitability. Each of these metrics can also be applied to diversity, using core minority customers as a base. This minority base can be further subdivided, as needed, by minority page 25

The Changing Landscape

Diversity & Customer Loyalty

segmentation, such as women, African Americans, Hispanics, Asians, etc.

Six Six Sigma

Application of Customer Loyalty Disciplines for Minority Customers 1. Measuring/Reducing the Cost of Minority Customer Defections. It is important to know, as a starting point, what is the defection rate of minority customers (either in total or the core group) vis-à-vis the customer defection rate of all the customers or majority customers. Is there a gap? If so, why? Is it temporary? Is it geography? Is it by income levels? Is it by product? Are the purchasing volumes changing?

Unfortunately, over 99 percent of companies do not measure the defection rate of their core customers or the cost of such defections. This is one of the ten most important profit leaks in a company. Contrary to conventional wisdom, customer defection is actually easier to measure than customer satisfaction. 2. Reducing the Minority Customer Base. This may appear contrary to diversity promotion, but there can be undesirable, unprofitable minority customers, just as there are similar majority customers. Ship jumping, complaining, mercenary, whining and gouging customers do, unfortunately, exist in both camps. An elimination of these customers would enable a company to better serve its core minority customers, at a profit enhancement of 20 to 30 percent.

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3. Capturing Minority Customer “WOW.” If anything, getting close to minority customers is even more important than doing so for majority customers. They may have been ignored in the past, their numbers judged to be too few, their purchases too slim. But the demographics of minority customers are changing as rapidly as the general minority population. Their purchasing power is on the rise and their profile of requirements could be different from those of the majority. Mass Customization may be especially applicable to assess their needs.

4. Getting Close to Minority Customers. Given the benign neglect of the past, it is essential that a company keep a constant finger on the pulse of minority customers. Cultivating them, listening to them and acting on such inputs may well leave a competitor in the dust. 5. A Comprehensive Infrastructure. It may be, as a minority customer segment grows in importance and profitability, that a parallel infrastructure—a steering committee, CCO and SWAT team—be established to nurture minority customer loyalty. To sum up, customer loyalty/retention is a mighty discipline, long neglected by companies; and yet, if implemented, can lead to profitability as few other techniques can master. Its potential for profitability in diversity can be equally dramatic. PDJ

Profiles in Diversity Journal

• January/February 2003

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Raising The Bar

Waste Management, Inc.

culturalglue

DIVERSITY AND ETHICS Bill Prachar, Vice President, Business Ethics and Compliance Carlton Yearwood, Vice President, Business Diversity Waste Management, Inc.

ll of us who have worked in the corporate world have seen it again and again—new programs are launched to solve real business problems or “change” the way things are done, and immediately each program takes on a life of its own. Each of these new programs is carefully designed by well-meaning champions to make their company more successful and a better place to work. Unfortunately, sometimes within days, these programs begin, subtly and unintentionally, to compete with each other. Employees become confused, begin to guess on the priority each has with company leadership, and adjust their commitment levels accordingly. Interestingly, these programs are launched after carefully constructing a “business case” which justifies them on the basis that the return will far outweigh the time and expense incurred. The authors of this article, who are responsible for the diversity and ethics programs at a large corporation, have done the same thing themselves. Yet we all know that at the end of the day, ethics alone does not guarantee a successful

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An ethics program and a diversity program

enterprise. Obviously working closely together, can, in at least a small the same is true of a diversity program but effective way, act as the glue that holds all the alone, a customer various, and often seemingly unrelated, efforts satisfaction initiative together to achieve the ultimate business alone, a Six Sigma objective—financial success. quality initiative alone, or any other program taken alone.

Diversity and Ethics When we step back and try to look at this process from 50,000 feet, we see that in most companies these programs are really an attempt to create culture change. Business leaders are asking their employees to adopt new ways of doing things. For employees to “buy in” and adopt new ways, they must have a strong sense that all the pieces will fit together. We believe that diversity and ethics play a strong role in making this process successful. An ethics program and a diversity program working closely together, can, in at least a small but effective way, act as the glue that holds all the various, and often seemingly unrelated, efforts together to achieve the ultimate business objective—financial success.

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We need to change gears briefly, and talk about the relationship between diversity and ethics in the business setting. It is our belief that the relationship is symbiotic. An effective business ethics program must embody those values and ethical norms of the working population as a whole, not just one part of it, and an effective diversity (inclusion) program relies on fundamental ethical principles such as respect, fair treatment, honesty and citizenship to succeed. Let’s spend a moment looking at each side of this relationship. Does one set of ethical principles fit all sizes? Ethical absolutists would say yes, basic ethical principles are identical everywhere, in every social group. Ethical relativists, on the other hand, would suggest page 27

Cultural Glue: Diversity & Ethics

Raising the Bar

that each distinct culture or social, ethnic, racial, or gender group has its own set of ethics that stand alone, unaffected by the ethics of other groups.

Whether or not these observations are some “free space”) in a well constructed accurate (Professor Carol Gilligan at ethics program. Harvard supports these observations with her theory that women and men have On the diversity side of the equation, ethics different “moral voices”), the notion that play a key role in making inclusion work in But it is difficult to live on today’s women might bring a different perspective, any organization. Real inclusion requires technologically-shrunken planet and really that of caring, to ethical decision making recognition of the strengths of an fully accept either of these propositions. than men might bring was eye opening to individual contributor, without respect to We’d suggest, as do most of today’s leading the author. Might this not also be true of his or her ethnicity, race, cultural ethics theorists, that there is some middle African Americans, or of other groups ground. One of the authors, probably with backgrounds or from cultures because of the culture he grew up in (middifferent than traditional white, male dle class, white, Midwestern community), Americans? Arguably, for example, any Before employees will go the extra mile tended toward the absolutist position. But person from a group that has suffered for the company, the ideology was severely challenged when, oppression (as is the case with the they have to trust coaching his young daughter’s basketball majority of African Americans) will and respect their team, he noticed that young girls dealt exercise more tolerance when resolving leadership, and ethical problems than might a person have to trust and respect each who has never experienced the same other, says life experiences. These are but two Carlton Yearwood, examples where the unique history Vice President, Business Diversity. and experience of a particular group Bill Prachar, provides for a slightly different ethical Vice President, Business Ethics framework. background, or other group-identifying and Compliance, found his ideology was severely challenged when coaching his young daughter’s basketball team.

significantly differently with bad referee calls than did young boys. Recognizing this to be a great generalization, boys seemed to be upset because the bad call was unjust. There are rules, and the “ref” ought to know them and stick to them. When the apparently unjust decision was allowed to stand, the boys put it behind them and played on. Girls, on the other hand, seemed more upset because one of their teammates was being treated unfairly. They seemed to care less about the consequences of the call than how the alleged offender felt. The girls seemed to carry this concern with them after the game. page 28

In discussing global ethics, Professor Tom Donaldson of the Wharton School has suggested that, while there may be certain absolute values, there has to be some “moral free space” which recognizes differences in cultures. While cultural differences may be more extreme in the global context, very real, though often more subtle, differences in cultural ethics do exist in the domestic American setting. We believe good ethics programs in any context must recognize (or anticipate) the cultural diversity of the workforce. Consequently, an ethical framework which allows for and reflects the nuances of cultural variations in the workforce will be much more effective than one which reflects only those of the traditional white male executive workforce. These variations must be taken into account (that is, given

Profiles in Diversity Journal

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characteristic. This means that values such as respect, fair treatment, honesty and citizenship must be part of the ethical fabric of the organization. Real inclusion is not about filling quotas. It is about recognizing, respecting and integrating the skills and talents of each individual into the success of the organization. Favoritism is not part of a successful diversity equation. On the other hand, fair, honest evaluation of the skills and potential of each employee is critical to success. So is an understanding on the part of each employee that the cultural background and history of the group to which an individual employee belongs may shape his or her response to events in a way different from the way others might expect. As we can see, the fundamental elements of a good ethics program are critical to the 1-800-573-2867 www.diversityjournal.com

Raising the Bar

Cultural Glue: Diversity & Ethics

success of an effective inclusion program. Conversely, for an ethics program to be embraced by the entire workforce, it needs to allow for the ethical diversity of the entire employee base.

approach probably works better than the second, neither is sustainable over the long haul. And neither promotes much innovation.

Before employees will go the extra mile for Diversity and Ethics the company, they have to trust and respect as the “cultural glue” their leadership, and have to trust and So let’s return to all the initiatives and respect each other. This requires shared programs we see popping up in the typical values; that is to say values shared by all— large business setting. They are all designed senior management, line management and to change behavior, which, in some way, line employees. It also requires that each will improve the bottom line. The employee feels that he or she is included challenge is to get people to “buy into” in the process and that his or her these programs. This isn’t easy because contributions count for something. these initiatives almost always ask people This is what ethics and inclusion are all to change the way they have been doing about. They are the glue that binds all the something for years. business change initiatives together. One solution is to pay for cooperation. Another is threatening to replace people who can’t or won’t conform to the new requirements imposed. While the first

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Sounds easy, doesn’t it? All of us involved in ethics and diversity activities in the business community know that all these things are easier to talk and write about

Profiles in Diversity Journal

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than accomplish in reality. Introducing ethics programs and diversity programs is never met with a chorus of “We get it! Why haven’t we done this before?” In the authors’ organization, the ethics program and diversity program are separate, but report directly to the Senior Leadership Team, and have their full support. With this active leadership support the programs are highly visible. As discussed herein we are linking ethics and inclusion, and working closely with the other business improvement initiatives underway, to help create a culture where change and innovation will become the accepted norm. We’re not there yet, but we know that a diverse group of ethical employees will PDJ make great things happen. Headquartered in Houston, Texas, Waste Management, Inc. is the leading provider of comprehensive waste management services in North America. Contact the authors at 713.512.6200, or through their website at www.wm.com.

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LEADERSON BLACK LEADERSHIP of the 20th Century “It is a testament to the greatness of Martin Luther King, Jr., that nearly every major city in the U.S. has a street or school named after him,” says TIME national correspondent Jack E. White in his piece on our nation’s most prominent civil rights leader for The Most Important People of the 20th Century. Unfortunately, “it is a measure of how sorely his achievements are misunderstood,” he adds, “that most of them are located in black neighborhoods.” Many of us take just such a short-sighted view of black history. Too often, these achievements are relegated to being recognized one month a year; often such recognition is done purely in the name of marketing. Black history is important because it is our history. Imagine, if you can, how different our nations and our world would be without the contributions of people like Martin Luther King, George Washington Carver, Hank Aaron, Wilma Rudolph, Benjamin Banneker, Elijah McCoy, Harriet Tubman, Sojourner Truth, Thurgood Marshall, Frederick Douglass, Billie Holiday, Charles Clinton Spaulding, Satchel Paige … Everywhere you look, black culture, talent, and expression have played an enormous role in shaping our past, our present … and our future.

The celebration of Black History Month grew from the inspiration of a brilliant and creative African- American scholar, Dr. Carter Godwin Woodson. A Harvard trained Ph.D., Dr. Woodson stepped down from his academic assignments to devote his life to the scientific study of the African experience in America, Africa and throughout the world. Under Woodson’s direction, and with contributions from both black and white scholars, the Association for the Study of Negro Life and History was founded. He was the time’s leading historian and a prolific writer, publishing studies and texts that included his famous work The Mis-Education of the Negro (1933, reprinted in 1990). “Negro History Week” was officially launched in 1926. According to Woodson, “We should emphasize not Negro History, but the Negro in history. What we need is not a history of selected races or nations, but the history of the world void of national bias, race hate, and religious prejudice.” We’ve asked organizational leaders from around the globe to join us in just such a celebration; in the pages that follow, you’ll hear how they celebrate, who they emulate, and why it’s important to commemorate this history—our history— not just in February, but throughout the year.

Special Feature

Leaders on Black Leadership: Great Lives Remembered

greatlivesremembered

The lives and words of some of the leaders we celebrate

By Your Own Bootstraps: Booker T. Washington

stance, one that tolerated segregation and discrimination (for the moment) while appealing to white philanthropy to secure the education that would ensure blacks economic potential.

In his book The Betrayal of the Negro, Rayford W. Logan described the turn of the century as the low point (or nadir) in black history. After Emancipation, it was clear that democracy was for whites only. Segregation in schools and in public accommodations was the law throughout the South. Violence and a lack of opportunity effectively kept blacks in their place as secondclass citizens; only a few (through hard work, good fortune or both) were able to live fairly well. It was because of this time that there developed a school of thought among many black leaders to Photo from the Library of Congress Carl Van Vechten Collection adopt an accommodating

“The visionaries we honor this month helped forge a new way of thinking about diversity among corporate leaders. A truly diverse workforce is a major competitive advantage. It requires a working environment in which diversity is valued and all feel included. We at Shell have adopted a global standard on diversity and inclusiveness that clearly outlines our expectations of every Shell business; we hold respect for people as one of our key Shell values and we hold our people accountable for implementing our policies. Shell salutes the honorees and, as importantly, acknowledges the many unsung champions who are making their vision a reality in their own organizations.” Roxanne Decyk Vice President, Corporate Affairs/Human Resources Shell Oil Company

“It is quite fitting and appropriate to recognize the contributions of black leaders of the 20th century, as they have had a positively profound and lasting impact on our society. These individuals collectively preserved and struggled through some of the most difficult circumstances imaginable, yet continued to fight for their belief that our society would be better if all segments of our citizenry—not just some—were allowed to attain the American dream. Their struggle to ensure access to educational, housing, employment and business opportunities paved the way for a better tomorrow for all Americans. They demonstrated through intellectual debate and action that America would be a stronger nation if all Americans warranting opportunities through merit were afforded a chance to succeed. These pioneers of civil rights have been proven correct, as the value of diversity is quite apparent today, looking across the landscape of corporate America and seeing contributions from the likes of Richard Parsons, Kenneth Chenault, Franklin Raines, Andrea Jung, Stanley O’Neal and Oprah Winfrey. The same could easily be said about the contributions of minorities across all segments of our society, including the educational, governmental and professional sectors. By opening the doors of opportunity, the black leaders of the 20th century unequivocally contributed to making this country a better place for all regardless of race, creed or color. They are indeed deserving of a debt of gratitude.” Robert Marchman Vice President, Enforcement Division and Diversity Council Chairman, New York Stock Exchange page 32

Such a leader was Booker T. Washington. One of the last black leaders to be born into slavery, he believed that racial democracy through Reconstruction failed so dismally because it began at the “wrong end,”

Profiles in Diversity Journal

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emphasizing political means and predetermined rights rather than economic means and self-determination. Founder and head of Tuskegee Institute, a vocational school for blacks in Tuskegee, AL, Washington believed that blacks could benefit more from a practical, vocational education rather than a college education. He believed that the development of work skills would lead to economic prosperity. In his autobiography, Up from Slavery, Washington predicted that blacks would be granted civil and political rights only after gaining a strong economic foundation. His politics were truly a product of his life and times. When slavery was abolished in 1865, his family moved to Malden, WV. There, as a child, Washington worked in coal mines and salt furnaces, and as a houseboy for the leading family of Malden. He fought to get a meager primary 1-800-573-2867 www.diversityjournal.com

Leaders on Black Leadership: Great Lives Remembered Special Feature education, enough to gain his admittance to Hampton Institute. There he proved an exemplary student, teacher, and speaker; the principal recommended Washington to Alabama officials who were trying to

him advisor to Presidents, Congressional members and governors on

Would America have been America without her Negro people? W.E.B. Du Bois, The Souls of Black Folk (1903) establish a school for African Americans in their state. Thus in 1881, the Tuskegee Normal and Industrial Institute (now Tuskegee University) was founded; Washington took the helm and made the program a model of industrial education. In 1895, he gave the speech that would define the politics of accepting segregation in exchange for economic advance, called the Atlanta Compromise, before an exposition in Atlanta. In it, Washington declared: “In all things that are purely social we can be as separate as the fingers, yet one as the hand in all things essential to mutual progress.” Widely quoted, it gave him the political clout that made David Ratcliffe President and CEO Georgia Power “Martin Luther King, Jr., a fellow Georgian, gained worldwide recognition of his faith-based approach to change. His belief in the inherent good in all people continues to have tremendous appeal, and is a testament to the power of one. One person and one belief unified hundreds of thousands, and changed the world forever.”

Photo from the Library of Congress LC-USZ62-54231

policies and political appointments. Washington’s political opposition was spearheaded by W.E.B. Du Bois, a historian and sociologist. In his pivotal book, The Souls of Black Folk (1903), Du Bois criticized Washington’s educational and political philosophy and practices. While Du Bois accepted the need for industrial training in theory, he feared that the success of the industrial school might limit the development of higher education for blacks and limit their roles as leaders. He regarded Washington’s politics as a surrender of rights and human dignity for economic gain and his acceptance as a political leader dangerous. By 1910, time and change in the political climate saw Washington’s political influence waning as Du Bois and others created vehicles like the NAACP to move the nation away from the politics of accommodation. However, Washington’s influence on education and the values that determine success—hard work and determination—have not, nor will ever, change.

Booker T. Washington had a grasp of gritty economics that transcended race and ethnicity: If you make yourself valuable to others, you will be rewarded. He drilled that proposition into his students at the college he founded and directed, Tuskegee Institute in Alabama. They learned skills in work, attitudes and thinking. They fanned out after graduation to fill demands for superior individuals who knew how to produce for others and thereby benefit themselves. Washington felt anguish over those who shackled themselves into self-limiting behaviors. Learn, he preached. Know the world; know yourself. Show character. Be valuable. After his death his influence went into eclipse. But now he has been vindicated. It’s time to take his lessons into all ranges of life. He showed the way himself. As a lad after the Civil War he appeared at a school seeking admission at the end of an arduous journey by stagecoach, train and shoeleather, overnight campouts and even a temporary sojourn in a hovel underneath a wooden sidewalk. School officials balked at this grubby figure, but he pleaded for a chance to show what he could do. His defining task: Clean a schoolroom. Washington swept and dusted it with such diligence that afterwards the schoolmarm’s white-gloved fingers could not detect a speck of dirt. He enrolled as a student, expanded his universe, learned the skill of powerful oratory and went on to become one of the most respected and effective people of his age. Character has value. Character matters. Knowledge matters. Diligence matters. His message is universal. A century later, to those of whatever race, color or creed, Booker T. Washington still speaks. Daniel Hager Contributor to the Mackinac Center for Public Policy

“Bank of America celebrates Black History Month out of a deep respect for the unique culture and contributions of African Americans. We are proud of our history of supporting African-American communities, helping children of all races succeed, and providing products and services that enable individuals to control their financial destiny. From fulfilling hopes for homeownership, higher education and small-business ownership to building vibrant communities and a diverse workforce, Bank of America has a rich heritage of helping people achieve their dreams.” Geri Thomas Diversity Executive, Bank of America

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Special Feature

Leaders on Black Leadership: Great Lives Remembered “Lift Every Voice:” James Weldon Johnson An extraordinarily talented man, James Weldon Johnson is known for his contributions to two different fields. Many know of his role as poet, novelist and leading black literary figure in the early 1900s. Others know him as the leader and true momentum behind the growth of the NAACP in the 1920s. In both theatres, Johnson played an important role in shaping the attitudes and actions of both black and white Americans in the early 20th Century.

Photo from the Library of Congress LC-USZ62-54231

Johnson was born in 1871 in Jacksonville, Florida and attended

“In celebration of Black History Month, I’m reminded that the struggle for human rights is far from over—domestically and globally. I’m reminded of the sacrifices made by countless heroes in the fight for human equality—yesterday and still today.

“As I look at the African Americans who have influenced me, Colin Powell stands out in my mind. He came from a working class background and grew up in a segregated era when many options were not easily accessible to African Americans. It was not until college, when he joined the ROTC program, that he found his calling. His willingness to take risks and his learning orientation allowed him to experience things which give him the unique perspective required in his current role as Secretary of State. He understands the relationship between social networking, hard work, and leading with integrity. Secretary Powell has not let the criticism of others limit him or his commitment to do his best. And I feel strongly that our future as a country rests with his ability to rely on all of his experiences and perspectives when dealing with all of the nations around the world.” Michael C. Hyter President & CEO Novations/ J. Howard & Associates, Inc.

Rosa Parks, in particular, is one hero who stands out in my mind for having made a significant impact on human rights and racial equality. I am inspired by her belief in the power and importance of every individual. Her simple act of refusing to give up her seat gave countless others the courage to stand up for freedom and change the course of our nation’s history. She was a pioneer with tremendous inner strength and determination, the embodiment of human dignity in the face of adversity.

Our freedoms can’t be taken for granted. As I consider other parts of the world and the conflict and inequality that others live with day-to-day, I think about how fortunate I am to be an American, and how grateful I am to my ancestors for the sacrifices they endured long ago. Open communication and awareness cultivate change and understanding. Nationwide’s Black History Month observances are associate-led through an all-volunteer Black History Club. Club members plan events throughout the year with a focus on February. Using unique internal resources, the group communicates a message of inclusion, awareness and celebration of the contributions and accomplishments of African Americans. Outside speakers are invited to share their experiences and knowledge about topics that are important to employees in the workplace and as members of the larger community. As we celebrate Black History Month and the compelling influence of black leaders and visionaries on changing the world, we must all have the fortitude to stand up for equality, to remember the past with understanding and to vigilantly protect our freedoms in the future.” Donna James Executive Vice President and Chief Administrative Officer Nationwide page 34

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both high school and college with his older brother at Atlanta University, the conventional course of higher education in the day, where he pursued the study of law and gained considerable skills as both a writer and a speaker. He returned to Jacksonville in 1884 and became principal of the grammar school he had attended and in which his mother taught. Johnson worked hard to become a prominent figure and a voice in the black community in Jacksonville, founding the nation’s first black newspaper, The Daily American, and serving as one of the community’s few black lawyers. He moved to New York with his younger brother, Rosamond, and formed a successful songwriting team. Over the next several years the duo wrote over 200 songs for Broadway musicals. In 1900, Johnson penned the poem “Lift Every Voice and Sing,” which gained popularity in the ‘40s and became an anthem for black rights in America. 1-800-573-2867 www.diversityjournal.com

Leaders on Black Leadership: Great Lives Remembered Special Feature “I think everyone would agree that Dr. Martin Luther King, Jr. has had a profound influence on the world. As for me, his vision has shaped me both personally and professionally. Civil rights leader, proponent of non-violence philosophies and Nobel Peace Prize winner are just some of Dr. King’s accomplishments. He was a true visionary who was able to effect much needed cultural and social changes through non-traditional approaches. And, his ‘I Have a Dream’ speech has truly inspired me and millions of other people.” Don H. Liu Senior Vice President, General Counsel and Secretary IKON Office Solutions

branches throughout the country. Over the next four years, Johnson’s command of the position brought that membership to over 90,000. In 1920, he assumed leadership of The leadership skills he honed during his the organization, a positions in Central America, and his con- position which he held tributions to an influential black weekly until retiring in 1930. His called New York Age, brought him to the struggle for passage of the attention of the NAACP leadership in 1916. Dyer Anti-Lynching Bill The seven-year-old organization, which had will go down as one of his only 9,000 members and 7 branches at the greatest achievements in time, needed a field secretary to organize that position.

Thomas W. LaSorda Executive Vice President—Manufacturing DaimlerChrysler “Black History Month inspires DaimlerChrysler—as a global company— to deepen our appreciation of how our unique cultural diversity is a source of pride, passion and innovation for our employees and the markets we serve. As the Co-chair of the Corporation’s Diversity Council, I am inspired and honored to support and to take part in DaimlerChryslers’ celebration of Black History Month. Coordinated by the DaimlerChrysler African-American Employee Resource Group, it recognizes the collective ingenuity, creativity and cultural experience provided to our company by African-American employees and the achievements of great African-American leaders.

“Supreme Court Justice Thurgood Marshall and Air Force General Benjamin O. Davis were two extraordinary individuals that dedicated themselves to advocating social change and were deeply committed to their professions. Both succeeded in a climate of segregation and racial inequality by delivering results built on intelligence, honesty, integrity and the relentless pursuit of excellence.

At DaimlerChrysler, our success is dependent on fully appreciating and utilizing the diverse talents and strengths of all employees. To this end, we support a diverse workforce through events like the Black History Month Celebration and other ethnic celebrations. It’s part of our fundamental business strategy.”

A facet of both individuals’ character that impresses me is how neither ever sought fame, yet both were recognized for great achievements they considered simply part of doing their jobs. The deep commitment demonstrated by both men helps enable me to have the greatest possible focus on delivering sustainable results.

An American Journalist: Ida Bell WellsBarnett

Justice Marshall and General Davis also had the ability to influence the social conscience of the presidents under whom they served, Lyndon Johnson and Franklin Delano Roosevelt, respectively. I call to mind their ability to influence as I consider how to make a positive impact on those around me.

Ida Bell WellsBarnett was an American journalist, reformer and activist, known for her campaign against the lynching of blacks at the turn of the century. Born a slave in Holly Springs, Mississippi in 1862, Ida was sent to school at a young age, often

As I reflect upon Black History Month and my own contributions to society and Cendant Corporation’s Hotel Group, I remember these two legendary American icons who greatly influenced me. I think of their struggles as I make my own way and reflect on their perseverance and wisdom every day.” Milton C. Anderson Senior Vice President, Human Resources Cendant Corporation, Hotel Group 1-800-573-2867 www.diversityjournal.com

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Artist Unknown. Engraving c.1887 LC-USZ62-102002 DLC.

It was while in New York that Johnson befriended Booker T. Washington. Upon Washington’s recommendation, the State Department offered Johnson the U.S. consulship in Venezuela in 1906. His growing skills in leadership and diplomacy consequently led to appointments in Nicaragua in 1909 and the Azores in 1912. It was during these terms as consul that he penned the important novel “The Autobiography of an ExColoured Man.” This novel was one of the first accounts of a black man exploring different levels of American society by passing for white. The book sold poorly until the ‘20s, when it found acclaim during the Harlem Renaissance.

Special Feature

Leaders on Black Leadership: Great Lives Remembered

“Because of my age, the first black leader to inspire me was Martin Luther King, Jr. His non-violent approach to civil rights was very powerful. Although his battle was focused on civil rights for blacks, he took on other issues of importance. Because of the non-violent approach he was able to gain the buy-in of many whites. Because of his work I think that the issues minorities face are greatly improved today, although not ideal. I think I was 13 when Muhammad Ali won the heavyweight title. Here’s a guy that was thrust into a conflict with the government when he refused to accept induction into the Armed Forces. I think that he showed a great deal of courage in not accepting the draft. He knew that the Army would use him to fight exhibitions as opposed to carrying a rifle; however, he felt the Vietnam war represented the U.S. fighting a group of non-whites with no just cause. One of the most powerful statements that I can remember that put the war in its proper context for blacks was when Ali said, “No Viet Cong never called me ‘Nigger.’”

accompanied by her mother who was also learning to read. She was orphaned in the yellow fever epidemic in 1878, and Wells assumed the responsibility for five of her younger surviving siblings. She passed the teachers’ exam and began teaching in the local county school.

In 1889, Wells became part-owner and reporter of the Memphis Free Speech. In March of 1892, the focus of her work changed forever when three of her contemporaries—Thomas Moss, Calvin McDowell, and Henry Seward—successful managers of a grocery in the black section of town, were lynched. Like others who shared the same fate, the story was told that the three had tried to rape a white woman; however Wells knew they had been lynched simply because the owner of a competing white grocery store wanted to eliminate the competition.

Wells moved to Memphis with two of her younger sisters and became a teacher there. Her involvement in the teachers’ association gave her the In the editorial that followed, Wells urged opportunity to write, speak and Black citizens of Memphis to leave the town debate, and she gained the which would protect neither their lives nor attention of local newspaper their property, nor give them a fair trial. editors, who offered her positions with the Evening “Despite the obstacles many of these leaders faced, each of them remained remarkably undaunted in Star and the Living Way. their drive to affect positive social change. That As the popularity of her determination and will—and their successes— writing grew, she inspires Xerox and Anthony W. Simmons Xerox employees to do our contributed articles to President and COO part to help solve community national publications Simmons Associates, Inc. problems and make the world as well. a better place. Indeed, they demonstrate the amazing “Discussions of great African Americans usually revolve around legends such as difference that just one Martin Luther King, Jr., Rosa Parks, Medgar Evers, Jesse Jackson, courageous person Booker T. Washington and so many other civil rights, political and religious leaders. can make.” They are beacons of social progress and racial balance. Barbara Koontz Director, Diversity and Staffing When I think of the African American who has influenced me the most, one name comes to Xerox Corporation mind: Sidney Poitier. Though his primary mission was not to lead the movement, nor drive new legislation, he influenced my belief that change was within my grasp. The roles he portrayed were in such stark contrast to the countless cinematic images of subservience of the time. While political and civil rights leaders extolled the need for change, Poitier depicted it in each of his roles. He allowed me to visualize images of the end result. I was inspired as he demanded respect as “Mr. Tibbs,” metamorphosed racist students as “Sir” and mesmerized the affluent parents of his white fiancée when he came to dinner. Poitier never billed himself as an advocate of change. He was, after all, merely an actor but his portrayals motivated me to make life imitate his art. His work made me a believer that we are only bound by the reach of our imagination. After living vicariously through Poitier’s future I could never be content wading in life’s safe shallow end.”

Wells went on to become a leading national figure in the African-American civil rights and women’s rights movements. She toured abroad, speaking on the plight of African Americans. Active in the women’s club movement, Wells founded the Chicago

Stephen Young Senior Vice President, Global Diversity JPMorgan Chase page 36

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She also wrote a scathing editorial attacking white female purity. Luckily for Wells, she was attending a conference in Philadelphia when the editorial appeared; the newspaper office was destroyed and threats were made against her life. She never returned to Memphis, but moved to New York and continued her exposé on lynching.

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Leaders on Black Leadership: Great Lives Remembered Special Feature Suffrage Club. Her autobiography, Crusade for Justice, was published posthumously in 1970.

“Singling out a leader from the U.S. civil rights movement is difficult, as is choosing a single person from that movement who influenced my life. I heard James Farmer with the Congress on Racial Equality in person, and who hasn’t read the speeches of Martin Luther King, Jr., seen the videos and marveled at the power of the man who led this important change in our country.

“I can accept failure. Everyone fails at something. But I can’t accept not trying.”

I’m a product of the ‘60s. The history of that period is my living memory. At some point, and I can’t say the exact moment, a monumental realization hit me: those who led the civil rights movement were fighting for what all of us, as U.S. citizens, take for granted as our rights. I recognized the gross inequities I would have had to face if not for an accident of birth. Would I, had I been placed in that position, have had the courage to fight for the rights that so many of us take for granted?

The Businessman’s Role Model: Charles Clinton Spaulding The story of Charles Clinton Spaulding, the most powerful black businessman of the first half of the twentieth century, has all the hallmarks of a Horatio Alger story. At the time of his death in 1952, his North Carolina Mutual Life Insurance Company had become the nation’s largest black-owned business and was worth nearly $40 million. Had he had Photo from the University of North Carolina at Chapel Hill a formal education or any solid business Libraries: The Upbuilding of Black Durham W.E.B. Du Bois foundation—other than an unshakeable belief in the value of hard work and deterspirit captured the mination—his story would still have been attention of his uncle and remarkable. But how Charles Clinton Durham’s only black Spaulding got there, and what he did to physician, John Merrick, better his community and to advance the partner-owners of the cause of civil rights in America, makes it North Carolina Mutual even more memorable. and Provident Association, which had Spaulding was born in 1874 on the family been founded the year farm in Columbus County, NC; his father, a before, and was already community patriarch, served as county in near-ruin. The two sheriff and ruled his family of 10 with an made Spaulding full-time iron hand. Young Charles grew up in an general manager, the environment where hard work and pride in company’s only full-time one’s accomplishments was its own reward. position, and the rest is history. At the age of 20, Spaulding left his father’s farm and moved to Durham where, under Spaulding was elevated to the tutelage of his uncle, Dr. Aaron vice president in 1908, McDuffie Moore, he worked at a series of and then to secretarymenial jobs and completed what was equiv- treasurer in 1919, when alent to a high school education. In 1889, Merrick, the first of the he became the manager of a black-owned original partners, died grocery store. There his entrepreneurial and the firm officially 1-800-573-2867 www.diversityjournal.com

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Martin Luther King touched the heart of America. Hearing his voice and his message, the majority said: “This is not fair and we don’t want to live in a country that treats people this way.” The change for the minority was a majority decision—and the right one for our country.”

Courtesy of Los Alamos National Laboratory

Michael Jordan, I Can’t Accept Not Trying (1994)

Pete Nanos Acting Director Los Alamos National Laboratory

“Dr. Mordecai W. Johnson was a great educator and leading spokesman for the importance of higher education in the achievement of black people. He was President of Howard University for many years. During his tenure, he insisted upon absolute excellence in the faculty and student body of Howard University. The University attracted outstanding educators from the broadest ranges of disciplines, from Anthropology to Zoology. The high standards he insisted upon led to a much-deserved outstanding reputation for Howard. Impressed with his mark upon Howard, I took a sabbatical, in 1979, from Los Alamos National Laboratory to serve a year on the Mechanical Engineering faculty there. I was extremely impressed with the institution. I later served on the Board of Trustees for five years when the University was under the leadership of Dr. James Cheek. Johnson’s legacy of excellence influenced institutional decision-making at Howard for decades after he left. His standard of quality had a great impact on my life in the selection and promotion of scientists at our research institution.” Warren “Pete” Miller Senior Advisor to the Acting Director Los Alamos National Laboratory

January/February 2003

Courtesy of Los Alamos National Laboratory

Negro Fellowship League, which aided newly arrived migrants from the South. She was also a women’s rights advocate, founding what may have been the first black women’s suffrage group, Chicago’s Alpha

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Leaders on Black Leadership: Great Lives Remembered

changed its name to the North Carolina Mutual Life Insurance Company. By 1920 the company had over 1,000 employees and several offices along the East Coast. Upon the death of his uncle in 1923, Spaulding became president, a position he held until his death in 1952. Although he was best noted for his business leadership, Spaulding was also involved in political and educational issues. As national chairman of the Urban League’s Emergency Advisory Council in the 1930s, he campaigned to secure New Deal jobs for African-Americans. As chairman of the Durham Committee on Negro Affairs, he engaged in voter registration efforts and worked with city officials. Spaulding also served as a trustee for Howard University, Shaw University, and North Carolina College.

Master of Diplomacy: Whitney Moore Young, Jr. In the late 1950s, the National Urban League found itself in need of a strategy overhaul. In the face of America’s emerging civil rights movement, supporters were charging that the organization dedicated to improving employment opportunities for black workers was mired in conservatism and unwilling to speak out against social issues. Funding was lagging, and the organization realized that new Photo from the Moorland-Springarn Research Center, Howard University, Washington D.C. leadership was required for a changing time. They found that leadership in Whitney Moore Young, Jr. “Cingular Wireless believes strongly in following the words of One of the greatest mediators of the civil rights movement, Whitney Moore Young, Jr. was born in Lincoln Ridge, KY, and spent his childhood at Lincoln Institute, where his parents were

“Freedom is never given; it is won.” A. Philip Randolph, from the keynote speech Second National Negro Congress, 1937

Mary McLeod Bethune, who wrote, ‘Invest in the human soul. Who knows, it may be a diamond in the rough.’ From internship programs to employee volunteerism and corporate sponsorships, Cingular embraces diversity in all aspects of our business. We will continue to offer our workforce opportunities to develop and celebrate their unique talents.” Gloria Johnson VP Diversity, Cingular Wireless

“Creating a diverse workforce and an equitable, supportive workplace is a strategic business priority for BMO Financial Group. To turn this priority into a reality, BMO’s Chairman’s Council on an Equitable Workplace is supported by internal Diversity Advisory Councils (16 in the U.S. and 8 in Canada) and Affinity Groups, which draw members from all levels of the organization. These groups fulfill a grassroots role by collecting and disseminating information to employees and providing advice and counsel to senior decision-makers. In fact, they are actively involved in increasing awareness and advocating for inclusion across the enterprise. The internal Advisory Councils reflect the organization’s own diversity: for example, there are Aboriginal sharing circles within BMO’s Canadian operations, and U.S. Affinity Groups offer mentoring and career support for African Americans, Asian Americans and Hispanics as well as a transnational group of gay, lesbian, bisexual and transgender employees. To celebrate Black History Month, BMO’s Diversity Advisory Councils and Affinity Groups are coordinating and organizing a variety of awareness-raising events. February will be filled with celebratory activities including art exhibits (pictured), ‘Lunch and Learns’ and book club discussions celebrating African-American writers.”

The experience gave Young a new direction. After his discharge, he headed to the University of Minnesota to pursue graduate study in social work. There Young was first introduced to the Urban League; in 1947, he joined the organization as director of industrial relations and vocational guidance. In 1950, he became executive director of the Omaha Urban League, and taught at area

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teachers. He graduated from Kentucky State Industrial College in 1941 and, after Pearl Harbor, joined the Army Specialized Training Program in the hope of being sent to medical school. Instead, he found himself in Europe in an all-black regiment with a white captain. Here, Young’s legendary skill as a “powerbroker” between whites and blacks was cultivated; more often than not, Young acted as a mediator between that captain and the troops, defusing racial tension.

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Leaders on Black Leadership: Great Lives Remembered Special Feature universities. In “On Jan. 8, 2003, Georgia-Pacific celebrated “AGL Resources is based in Atlanta, the home of Dr. Martin Luther 1954, he became MLK Day with a broadcast to our 400 facilities King Jr. and a cradle of the civil rights movement. Dr. King’s dream dean of the Atlanta across the U.S. During the program I spoke permeates the city’s culture, and as a leader in Atlanta’s business University School of to the students of my alma mater, community, AGL Resources is inspired by his legacy. Social Work where Booker T. Washington High School in Atlanta, he came face-to-face We have encouraged and welcomed diversity throughout our GA, where forty Georgia-Pacific employees mentor students. Dr. King also attended organization—a diversity of racial and ethnic heritage, economic with the emerging Washington High, and I described to the and educational backgrounds, even civil rights moveaudience the emphasis that he had placed urban and suburban lifestyles. We ment. He worked on education. believe that embracing a multitude of actively for social voices and opinions will make us change as a memI explained how I quit school in the eighth grade, stronger as a company and more ber of the Atlanta quickly learned what a mistake I had made, and responsive to our customers and returned to school to begin an educational our community.” chapter of the journey that changed my life. I also reminded NAACP and the students that many of the black leaders of Melanie M. Platt founded the Atlanta Senior Vice President, Business Support the past 50 years were not afforded the Committee for conveniences and opportunities that are AGL Resources Cooperative Action, available to them. My key message was that an organization of each and every student can achieve great things if they stay in young black professionals and businessmen Young said the League’s presence “says, school, focus on their and I hope loud and clear, that while who provided research and technical assisfuture, and make intelligence, maturity and strategy tance for civil rights activism. learning a cornerstone dictate that as Civil Rights agencies we of their lives.” The National Urban League asked Young to use different methods, we are all united as never before on the goal of take the helm in 1960, succeeding Lester B. James Dallas Vice President— Granger. As president, he revolutionized the securing first class citizenship for all Information Technology Americans—NOW!” inner workings of the League, restructured Chief Information Officer the national headquarters, and expanded Georgia-Pacific Corp. That march was a turning point for the scope of the work. The budget was increased tenfold, the staff quadrupled, and the League; while it was always necessary for Young to walk a the number of regional offices increased “Dr. Dorothy Height and her work as president of the diplomatic tightrope from 63 to 98. National Council of Negro Women (NCNW) has been throughout the ‘60s (his role an inspiration to me personally and professionally. Her as mediator was often In 1962, Young began to meet regularly commitment to mentoring and networking has positively misconstrued by blacks and with other civil rights leaders, among them impacted African-American women throughout the past 40 years. As someone who’s responsible for and directs whites alike) his counsel was Martin Luther King, Jr., James Foreman, sought by three administrations Public Policy for State Government Affairs of Abbott A. Philip Randolf, Roy Wilkins, and Laboratories, I am involved in several women’s leadership and by organizations across Dorothy Height. Following the groups, including Abbott’s Women’s Leadership Initiative PDJ the nation. assassination of Medgar Evers in June, networking organization, and I mentor several individuals. 1963, this group formed a formal Sources: Throughout my life—as a “Booker T. Washington and the Politics of Accommodation” by organization, the Council of United Civil single mother, and now as a Louis R. Harlan; “James Weldon Johnson and the Development of the NAACP” by Eugene Levy; “Charles married woman with a family Rights Leadership (CUCRL). Clinton Spaulding: Middle Class Leadership in the Age of Segregation” by Walter Weare; “The Lonely Warrier: Ida B. of eight—Dorothy’s work to Wells-Barnett and the Struggle for Black Leadership” by Thomas C. Holt—from Black Leaders of the Twentieth Century, promote the well-being of With demonstrations now occurring edited by John Hope Franklin and August Meier, 1982, African-American women has University of Illinois. throughout the country, the League had to The National Rites of Passage Institute www.ritesofpassage.org been a model of vision and Africa Within www.africawithin.com take an official stance. In 1963, when the The Encyclopedia Britannica www.britannica.com perseverance for myself and Martin Luther King, Jr. and Black History Month; League was asked to support the March on my family.” Selected Reference Sources from Louisiana State University Libraries, Baton Rouge, LA www. www.lib.lsu.edu Washington, Young persuaded the League’s Notable American Unitarians: Whitney Moore Young www.harvardsquarelibrary.org Sonja Cherry-Mendenhall board that sponsorship of activism was Black History Month Timeline www.infoplease.com Biography.com Celebrates Black History Month Public Policy now necessary. In his speech at the march, www.biography.com Abbott Laboratories Celebrating Black History www.time.com 1-800-573-2867 www.diversityjournal.com

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Leaders on Black Leadership of the 20th Century

The Harlem Hellfighters Photo from the Library of Congress and courtesy of “Blacks In The Military”

one “ordinary joe .” The recently appointed Director of the Office of Equal Opportunity and Diversity Management for the National Institutes of Health, Lawrence N. Self, spent a week in February participating in the U.S. Army’s Black History Month Celebrations at bases overseas. Asked to speak to servicemen at Frankfurt, Heidelberg, Arnstadt and Kaiserslautern, Germany, Self delivered a presentation honoring the achievements of the American Black Soldier in history and highlighting the achievements of the military as an agent of social change. It is this presentation that he offers us here today. During his federal career, Mr. Self spent six years in Europe serving in EEO positions, the most recent in Heidelberg, Germany. A native of Falls City, Nebraska, Self has 19 years of civilian federal service, and most recently spent two years at the Department of Commerce as Deputy Director and Acting Director of the Office of Civil Rights.

THE EXTRAORDINARY EFFORTS OF THE MEN AND WOMEN THAT SHAPE OUR MILITARY Lawrence N. Self

Director of the Office of Equal Opportunity and Diversity Management National Institutes of Health, U. S. Department of Health and Human Services

t is a pleasure to be here today. I would like to extend my sincere appreciation to the organizers of this excellent annual event to recognize the synergy of Black History Month and African-American achievement in the military.

cation of W.E.B. Du Bois’ The Souls of Black Folk, I wanted to talk briefly about the special relationship between African Americans and the U.S. military, which has been cultivated over the last century. The U.S. military, and the U.S. Army specifically, has served as both a catalyst for change in American society at

In my capacity as Director of the Office of Equal Opportunity and Diversity Management at the National Institutes of Health, I am responsible for managing NIH-wide policy formulation, implementation, coordination, and management of the civil rights, equal opportunity, affirmative employment, and workforce diversity programs. Our vision is to protect the integrity of the Equal Employment Opportunity process and to make diversity a priority at NIH.

large, and as a model for how that social change and racial justice has come about.

Today, in honor of the centennial of the publipage 40

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The last hundred years bore witness to catastrophic upheaval and violence in the world at large, and wide-scale social change in America. And at the center of all this change stood the U.S. Armed Forces as a beacon of freedom and progress. From the first shots fired by the Harlem Hellfighters in World War I to Gen. Colin Powell’s masterminding of Operation Desert Storm, African Americans have taken the brass ring of opportunity

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Leaders on Black Leadership: One “Ordinary Joe” Special Feature out on the larger, national stage by groups offered them by the military and like the NAACP. The U.S. military set an maximized their potential to the fullest. example for the rest of society to And in doing so, these African-American follow. In the Army alone, 600 black soldiers, nurses, engineers, journalists, officers were commissioned. pilots, etc., created a template for success emulated by African “The “The efforts efforts of of the the NAACP NAACP to to Americans and civil fight fight for for equality equality within within the the rights groups in the military military ... ... signaled signaled aa major major paradigm for the rest of paradigm for the rest of the the nation as a whole. 20th 20th Century: Century: advances advances made made by by African African Americans Americans in in the the military military would would serve serve as as World War I a testing ground for social a testing ground for social Positive changes in the activism activism carried carried out out on on the the position Africanlarger, larger, national national stage stage by by groups groups like like the the NAACP.” NAACP.” American soldiers held during the Lawrence Lawrence N. N. Self Self Director Director Spanish-American OEODM OEODM National National Institutes Institutes of of Health Health War of 1898, such as allowing black officers to lead black regiments and allowing black Black soldiers were still segregated from the soldiers to fight outside U.S. territory, Army at large. However, the need for ablecarried over into the First World War. bodied, skilled fighters led to the heroic While social inequities were still exploits of soldiers attached to the 92nd rampant on the home front, the military and 93rd Infantry Divisions and Harlem had proven itself an opportunity for Hellfighters. African-American men to establish themselves as equals in the defense of the nation, and afforded black soldiers the opportunity to add to the grand legacy and reputation set by the Buffalo Soldiers in the 19th Century. The sheer scope of World War I allowed opportunities for the African-American soldier to excel. Volunteerism within the black community was very high, and with the help of social activist groups like the NAACP, two major all-black units were created within the Army: the 92nd Infantry Division and the 93rd Infantry Division. The efforts of the NAACP to fight for equality within the military, which enabled African Americans to be commissioned as officers, signaled a major paradigm for the rest of the 20th Century: advances made by African Americans in the military would serve as a testing ground for social activism carried 1-800-573-2867 www.diversityjournal.com

The Harlem Hellfighters The 93rd Infantry Division saw significant action, fighting side by side with French soldiers at some of the bloodiest battles of the War such as Argonne, Chateau Thierry and Metz. The 369th Infantry Regiment of the 93rd, a National Guard outfit also known as the Harlem Hellfighters, hailing from the New York City neighborhood of the same name, were the first Americans, black or white, to reach the combat zone in France. They were the first to cross the Rhine River in the offensive against Germany, and the Harlem Hellfighters were in continuous combat for 191 days, longer than any other American Unit during World War I. One of the men of the 369th Regiment, Sgt. Henry Johnson, became the first

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American to win the French War Cross, the Croix de Guerre. In May 1918, Johnson and Pvt. Needham Roberts valiantly fought off a large German raiding party that appears to have numbered over 30 men. Sgt. Johnson is buried at Arlington National Cemetery. By the end of World War I, the reputation of black soldiers as brave, honorable, patriotic and hard-working had spread to the highest levels of the War Department. And while the U.S. Armed Forces remained segregated along racial lines, the successes of World War I resulted in an increased number of African-American officers and military career opportunities. Those black veterans who returned to civilian life faced many hurdles and discrimination. However, many of these veterans returned home with experiences and perspectives never before enjoyed by mainstream black America. These veterans applied skills learned in the military to their everyday lives, becoming professionals and leaders of their communities. These same leaders went on to effect change on the national stage with political activism.

World War II America began to prepare for the Second World War, 2.5 million African Americans registering for service in the first peacetime draft in U.S. history. Over 1 million African Americans were serving in the combined Armed Forces; 75 percent of black military personnel enlisted in the Army. Once again, the valor of black soldiers was continued by the 92nd Infantry Division in both the Pacific and European Theaters. The numerous Silver Stars and other awards of valor for the men of the 92nd are too numerous to list here, but I wanted to share with you the extraordinary exploits of one “ordinary Joe.”

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Leaders on Black Leadership: One “Ordinary Joe”

Private Woodall I. Marsh, of Pittsburgh, PA, was the first black to win the Silver Star in Italy. He got it for taking 12 wounded paratroopers from the front lines to safety in his truck, after officers said it could not be done.

group came the first African American General, Benjamin O. Davis, Sr., as well as his son Benjamin Davis, Jr. who would reach the rank of General in 1965.

When he was told that he could not make it because the water of a raging torrent he had to ford to get to the wounded paratroopers was too deep, Private Marsh replied: “Well, there’s dirt underneath, ain’t there?” and he proceeded to cross it. Under terrific enemy fire, he drove his truck through water up to the hubs of the wheels to get to the wounded men. On the return trip, he tried another route, but it turned out to be just as bad. He had to dig his truck out of the muck and mire again and again under heavy mortar and artillery fire. Black soldiers like Private Marsh amassed over 12,000 decorations and citations of valor and bravery during the Second World War.

The valiant actions of black soldiers along with momentum gained by civil rights activists following World War II led President Harry S. Truman to issue an Executive Order on July 26, 1948 ending segregation in the Armed Forces. The Order called for “equality of treatment and opportunity for all persons in the Armed Services without regard to race, color, religion, or national origin.” The President also established a commission to determine the best way to eliminate segregated military units. With the breakout of the

Perhaps the greatest success achieved by African-American combatants was that of the Tuskegee Airmen of the Army Air Force. The formation of the Tuskegee 99th Pursuit Squadron came not long after Gen. H.H. Arnold had proclaimed that “no Blacks would ever pilot a plane in the upcoming war.” Pressure brought to bear upon the War Department by groups such as the NAACP helped break the color barrier to pilot training, and the first all-black flight school at Tuskegee was created. In a very short time, the pilots of the Tuskegee squadron proved themselves combat ready and finally, in 1944, African Americans saw their first air combat in campaigns in Italy and Romania. The Tuskegee Airmen were famed for their almost superhuman feat of avoiding casualties. Their skill won them both the respect of allies and foes alike. From this 1-800-573-2867 www.diversityjournal.com

The End of Segregation and the Korean Conflict

The black soldier of today is not fighting a battle to fit into the military,

she or he is the military.

that a quota on black participation was unnecessary.” By the end of the war the Army had eliminated 300 all-black units; more than 300,000 African-American soldiers were integrated into previously all-white units. By 1954 the last black unit had been disbanded and African Americans were accepted into the military without a quota system. The desegregation of the U.S. military was a spark that led to the movement to desegregate the American society at large. On the heels of the desegregation of the Armed Forces, Thurgood Marshall, again representing the NAACP, won a groundbreaking ruling before the Supreme Court in Brown vs. The Board of Education of Topeka, Kansas, the case that essentially ended legal segregation in public schools. The 1950s also witnessed the heroic acts of Rosa Parks on the public buses of Montgomery, AL and the establishment of the Southern Christian Leadership Conference by black leaders such as the Rev. Martin Luther King, Jr., a major force in organizing the civil rights movement.

While the battle for equality is ongoing, the military will continue to be the model of Vietnam and the Ascent of Africanequal opportunity for all American Power within the Military as we move forward The 1960s witnessed tumultuous change, both on the home front with the civil rights into the 21st Century. Korean Conflict and the rising threat of the Cold War, American leaders realized that it would take all of our resources and people working together to defend freedom around the world. A Presidential Commission concluded “that military efficiency would be improved with full utilization of blacks and that segregated units were an inefficient use of black resources.” An independent study conducted by Johns Hopkins University concluded that “racially segregated units limited overall Army effectiveness while integration enhanced effectiveness, and

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movement, and abroad with the escalating conflict in Vietnam. In July of 1964, President Lyndon B. Johnson signed the Civil Rights Act into law, making segregation in public facilities and discrimination in employment illegal. In 1965 Congress passed the Voting Rights Act, making it easier for Southern blacks to register to vote. Literacy tests and other such requirements that tended to restrict black voting became illegal. 1965 also marked the point where America widened its level of commitment in page 43

Leaders on Black Leadership: One “Ordinary Joe” Special Feature Vietnam to that of a full-scale war. While the home front was still struggling with the issue of legal desegregation, black soldiers in the military took full advantage of opportunities in education, housing, and employment still not readily available to the African-American population at large. In Vietnam, African Americans found themselves represented in all branches of the military, and in all ranks including Colonels, Admirals, and Generals. Black Americans found in the military a place where they were recognized for their skill, valor and bravery just like any other American serving their country. In both Korea and Vietnam, AfricanAmerican women began to take full advantage of the opportunities given to them, as well. Chief Warrant Officer Doris Allen recalled: “As a senior intelligence analyst in Vietnam, I was recognized as having been responsible, through production of one specific intelligence report, for saving the lives of ‘at least’ 101 United States Marines fighting in Quanq Tri Province. During my years of service I survived many prejudices against me—as a woman, as a WAC, me as a soldier with the rank of specialist, me as an intelligence technician and as a black woman; but all of the prejudices were overshadowed by a wonderful camaraderie.” On July 15, 1964, Margaret E. Bailey became the first black nurse promoted to lieutenant colonel in the Army Nurse Corps and would later become the first black colonel. Hazel W. Johnson became the first black woman general officer in 1979, when she assumed the position of Chief of the Army Nurse Corps.

Corps. John E. Warren, First Lieutenant, U.S. Army, Company C, 2nd Battalion (Mechanized), 22nd Infantry, 25th Infantry Division was awarded the Medal of Honor posthumously for his actions in Tay Ninh Province in January, 1969. Leading his men to within 6 feet of one of the enemy bunkers, an enemy grenade was suddenly thrown into the middle of his small group. Thinking only of his men, 1st Lt. Warren fell in the direction of the grenade, thus shielding those around him from the blast. His action, performed at the cost of his life, saved 3 men from serious or mortal injury. First Lt. Warren’s ultimate action of sacrifice to save the lives of his men was in keeping with the highest traditions of the military service and reflects great credit on him, his unit, and the U.S. Army. From the end of the Vietnam conflict through the decades of the 1970s and 1980s, black Americans continued to enjoy the fruits of serving in the Armed Forces. Representation of African Americans in the military was proportionally higher than any other population group. Blacks continued to climb the ranks of power inside the military culminating with Army General Colin Powell, the Chairman of the Joint Chiefs of Staff during the Persian Gulf War. General Powell masterminded the first 21st Century-style war with the coordination of logistical strategies, precision computerized weaponry, massive air support, and monitoring devices. Of the 400,000 U.S. and international troops serving in the Gulf War, 113,000 were African American. From a group making up 12 percent of the U.S. population, over 28 percent of our fighting force in Iraq was American.

up 20 percent of the military, they make up a far smaller percentage of troops in combat jobs on the front line. This trend marks a tremendous shift in the role of African Americans in the military. The black soldier of today is not fighting a battle to fit into the military, she or he is the military. Blacks play a pivotal role in all levels of the Armed Forces and the government. Society is still following the lead of the military. African Americans are entering the middle and upper middle class at record numbers, and like their counterparts in the Armed Forces, black civilians are making inroads in corporate America, too. While the battle for equality is ongoing, the military will continue to be the model of equal opportunity for all as we move forward into the 21st Century. In closing, as you all prepare for possible conflict in the Middle East, I would like to say thank you on behalf of all Americans. The great legacy of those who have served in the past is with you today. To quote President Bush from his State of the Union Address, “The success of our cause will depend on you. Your training has prepared you. Your honor will guide you. You believe in America, and America believes in you.” PDJ Thank you, and God Bless. Sources: “African-American Freedom Fighters, Soldiers for Liberty,” written by Melvin Sylvester to accompany an exhibit in honor of Black History Month in the B. Davis Schwartz Memorial Library at the C. W. Post Campus of Long Island University, February, 1995. www.liu.edu/cwis/cwp/ “History of the 92nd Infantry Division,” www.indianamilitary.org “Women in Military Service for American Memorial,” www.womensmemorial.org “Korean War History,” www.africana.com “Real African-American Heroes,” www.raaheroes.com

The Vietnam Conflict resulted in an unprecedented 20 African Americans being awarded the Medal of Honor—15 from the U.S. Army and 5 from the U.S. Marine page 44

As we ramp up for what may very well be a second conflict in the Persian Gulf, a recent article in USA Today (January 21, 2003) revealed that while blacks currently make

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“NAACP Timeline,” www.naacp.org “Civil Rights Movement Timeline,” www.infoplease.com “USAToday,” www.usatoday.com

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Raising The Bar

Georgia-Pacific Corporation

ONE VOICE HOW A COMMITMENT TO VALUES SPEAKS TO THE COMMUNITY

Texanna Reeves Manager, Workforce Strategies and Programs, Georgia-Pacific Corporation

foundation of values helps create a company that meets the needs of its customers, employees, shareholders and the hometowns in which it operates. At Georgia-Pacific, employees are committed to the company’s values to work safely, maintain the highest integrity, treat everyone with dignity and respect, build value for their customers, and be excellent in all they do. “Our values support and strengthen the positive environment at Georgia-Pacific. I am committed to creating a work environment that will help us attract, develop and retain the very best diverse talent. We can supply better products and services to our customers with a diverse workforce,” said A. D. “Pete” Correll, Chairman and CEO. “To develop that workforce, we are page 46

reaching out to potential employees—and the communities where we operate—in creative and exciting ways. We are enhancing our support of minority suppliers, and continuing to strengthen the links between our diverse workforce and our community programs,” Correll concluded. The company strives to create and maintain an environment where employees will appreciate the value of diversity and community. A good example of building this type of environment was the hosting of our second annual Martin Luther King, Jr. Celebration on January 8, 2003. This program, held in the Georgia-Pacific Center in Atlanta, Georgia, was broadcast to the 400 Georgia-Pacific facilities across the U.S. via satellite broadcast. The featured

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• January/February 2003

speaker, the honorable Andrew Young, told employees, “I can learn from your viewpoint while you can learn from my viewpoint” supporting the Georgia-Pacific call for diversity and inclusion. “This resonated with our employees who, in our 76th year of business, continue to provide leadership and guidance in their hometowns,” said Pat Barnard, Executive Vice President, Human Resources. “This celebration is the result of the partnership between senior leadership and our diversity council. It not only celebrates the holiday, and Dr. King’s life and teachings, but it also celebrates the people at Georgia-Pacific who make a difference,” said Barnard.

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“This celebration is the result of the partnership between senior leadership and our diversity council. It not only celebrates the holiday, and Dr. King’s life and teachings, but it also celebrates the people at Georgia-Pacific who make a difference.” Pat Barnard Executive Vice President—Human Resources

The M. Agnes Jones Elementary school choir (left) was featured at the 2003 Martin Luther King, Jr. Celebration. Since 1998, employees have been involved in a “Buddy” partnership with the school; two hundred employees visit the school regularly and tutor their “buddies” in reading, math and life’s lessons. Below, Pete Correll, Georgia-Pacific Chairman and CEO; Heather Moreland, Accounts Manager and Jim Bostic, Executive Vice President confer with speaker Andrew Young before the celebration event.

One Voice: A Commitment to Values Speaks to the Community life’s lessons. This partnership has been underway since 1997. At Washington High, 40 Georgia-Pacific employees provide students guidance on SAT preparation, managing money, interviewing skills and other important life skills. During this year’s MLK Celebration, James Dallas, Vice President, Information Resources was at the school watching the program with students. Dallas, who graduated from the school in the early ‘70s, was quick to point out to the students that opportunities exist and they can have a great future if they are willing to work hard. “While these schools are in Atlanta, Georgia-Pacific facilities also ‘adopt’ schools in their communities across the country,” reported Carin Wiggins, Manager, Community Programs. “Georgia-Pacific employees are working with schools and community organizations to make their communities stronger and more vibrant. We support these employees and their efforts every way that we can.”

This year’s program featured both the M. Agnes Jones Elementary and Washington High school choirs. These school choirs were chosen because of the relationship their students have with the Georgia-Pacific employees in Atlanta. The M. Agnes Jones Elementary is a “Buddy” school for Georgia-Pacific employees; two hundred employees visit the school and tutor their “buddies” in reading, math and

The MLK Celebration is also videotaped and the tapes shared with community organizations. In 2002, Coretta Scott King was the guest speaker; over 300 copies of the tape were shared with local schools, churches and community organizations in areas where Georgia-Pacific has facilities. Leadership for diversity and community involvement starts at the top. Chairman and CEO Pete Correll was one of the community leaders who led the way in community awareness and fundraising to

STRONG, VIBRANT COMMUNITIES Georgia-Pacific employees at the Green Bay West facility in Green Bay, Wisconsin partnered with their community to hold a community-wide MLK Celebration. In addition to a financial contribution, Georgia-Pacific contributed materials for a poster/essay contest that was held in local schools. Winners of the contest received U.S. Savings Bonds presented to the students during the celebration. 1-800-573-2867 www.diversityjournal.com

Raising the Bar

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January/February 2003

Andrew Andrew Young Young speaks speaks at at the the Georgia-Pacific MLK Celebration Georgia-Pacific MLK Celebration save the Ebenezer Baptist Church where Martin Luther King, Jr. was a pastor. What else is in store for Georgia-Pacific? Continuing to identify and partner with minority suppliers; to invest in more female and minority owned businesses; attracting, developing and retaining the very best employees; and havTexanna Texanna Reeves Reeves ing those Manager, Manager, Workforce Workforce employees Strategies Strategies and and Programs Programs provide leadership in making their hometowns and communities great places to live and work. At Georgia-Pacific, we welcome and embrace the things that make us different because those different perspectives help us make better decisions to serve our customers around this diverse world in which we live and work. Georgia-Pacific will continue to provide a work environment that expects inclusion, creativity and honoring our values. Georgia-Pacific is one of the world’s leading manufacturers and distributors of tissue, paper, packaging, building products, pulp and related chemicals. Contact the author at 414.652.5125 or by e-mail at tmreeves@gapac.com. PDJ page 47

Please use the source code ADDDJ when submitting a resume.

The Changing Landscape

Novations/J. Howard & Associates, Inc.

10elements FOR

CREATING

WORLD-CLASS C O R P O R A T E

DIVERSITY & INCLUSION PROGRAM Michael C. Hyter, President & CEO Novations/J. Howard & Associates, Inc.

Recently, in a large company we work with, a manager who went through diversity and inclusion training was assigned the job of putting together a task force to improve sales. This manager, reflecting upon the training he had just received, included an employee on the task force whom he wouldn’t have thought of before. This person made a crucial recommendation that ended up increasing sales by over a million dollars. The lesson here is that this person was already at the company and the diversity existed, but the decision to include this person was what made the difference to the bottom line.

# 2: Make the Business Case for Inclusion

It’s clear that inclusion is a business issue once diversity and inclusion are understood and to ensure that those individuals are ost organizations today to be a means by which an organization appropriately represented in all functions understand the necessity of can ensure that all employees are given the fully tapping the contributions and at all levels. This is an important of a wide variety of people in order to meet focus, but on its own it is often insufficient opportunity to stretch their skills and capabilities. Any company that can the needs of an increasingly diverse, global in meeting an organization’s desire to increase the skill set and contributions of marketplace. So most organizations want to expand its competitive advantage. the majority of its workforce enjoys a true ensure that their diversity initiatives are To truly ensure that expanding the range of competitive advantage. Seen in this light, planned and implemented in a manner diversity isn’t addressed only because it is that allows them to attract and leverage the differences enhances an organization’s performance and productivity the business the “right thing to do,” or because a positive contributions of a broad pool of talent. and proactive approach to diversity is the needs to focus on inclusion. By that we There is a set of key components in mean that an organization needs to ensure best defense against bias-related litigation. creating diversity programs that support Rather, implementing diversity and incluthat it not only attracts a diverse group of organizations to utilize their diversity to sion programs has a positive effect on the employees but that it provides them— become more productive—elements that hold true across all industries, regardless of regardless of which group they belong to— bottom line. They are a means to increase with challenging tasks, real authority within profits and productivity by tapping the geography, size or history. contributions of a broader pool of talent, their span of control, and the support to not simply an awareness exercise. grow and develop. This approach to #1: Understand the Difference Inclusion initiatives, focused on supporting Between Diversity and Inclusion including all employees, in whatever ways employee development, improve employee Although the terms diversity and inclusion possible, in the important work of the performance, increase productivity, reduce business is what stimulates people to are often used interchangeably, when turnover, and make the company more stretch their skills and increase their planning an initiative it’s helpful to attractive to potential employees and differentiate between the two. Focusing on capacity to contribute to the business— customers. and it’s what enables companies to get diversity typically means that the the best return on their investment in organization works to expand the number of individuals from various groups—more human capital. women, Hispanics, people of color, etc.—

M 1

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page 49

10 Elements For Creating a World-Class Program

# 3: The CEO and Leadership Team Must Accept Diversity as Their Personal Responsibility As with any other serious business objective, the CEO and leadership team must not

# 4: Assess Needs and Formulate a Specific Diversity Plan

It’s important to start by identifying the issues that need to be addressed. Often, an organization will be aware that there are

The Changing Landscape

By looking at specific problems and attempting to address them, a company will achieve greater success than it can by merely “going through the motions” of a general diversity program.

# 5: Define “What’s in it for Me?”

“In today’s today’s marketplace marketplace people people “In represent the only compelling represent the only compelling competitive advantage advantage for for competitive companies. It is in the best companies. It is in the best interest of of the the company company and and the the interest leadership team not only to head leadership team not only to head diversity initiative, initiative, but but to to make make aa diversity all employees aware of the real all employees aware of the real importance of of diversity diversity to to the the importance success of the business as a success of the business as a whole.” whole.” Michael Hyter Hyter Michael President & & CEO CEO President

only buy in to the diversity and inclusion initiative, but also take personal responsibility for its success. Too often diversity is viewed at various levels in an organization as a purely HR issue to be lumped in with other, more expendable, “feel good” programs. Yet senior leaders rarely take such a hands-off approach to items seen as critical to the bottom line—creating a new brand, opening a new market, a major cost-cutting effort. In today’s marketplace, people represent the only compelling competitive advantage for companies. It is in the best interest of the company and the leadership team not only to head a diversity initiative, but to make all employees aware of the real importance of diversity to the success of the business as a whole. Leaders need to model what’s expected, provide a clear vision, and hold others accountable— in other words play all the roles they would play in any other initiative important to the bottom line.

page 50

diversity-related problems, but will have trouble in identifying and addressing what those problems are. This is why needs assessment and careful strategy development are crucial. When faced with serious diversity issues it’s easy to “try something, try anything,” but that approach is seldom successful. Taking the time to locate and address the specific needs of your company will help a diversity program succeed. For example, if African Americans in mid-level management feel that they’re being kept from moving up as quickly as their white counterparts, a needs assessment can investigate if there is indeed a gap and what interpersonal and organizational factors may be getting in the way of advancement. Once the causes are understood it is easier to put together a targeted initiative that gets at the real issues. It’s unlikely that such a problem (or a host of other issues) can be solved by a blanket diversity initiative that merely trains all staff about the importance of diversity.

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Too often, diversity is viewed as an issue of race or gender—and therefore not of any real benefit to a large percentage of the corporation. Once employees understand that the emphasis is on supporting the development of all employees, they’re more likely to understand they have something to gain from the initiative and embrace its objectives. Once diversity is viewed in terms of not just race and gender, but also of age, sexual orientation, level of education, geography and other factors, it is much easier for employees to accept its importance as a business issue. However, having defined diversity broadly, it’s essential that leaders not take their eye off the ball with respect to women and people of color. Historically those two groups have felt the greatest impact from the lack of development and positioning.

# 6: No Blame— Shared Responsibility A common mistake in addressing diversityrelated issues is to seek to assign blame or guilt for the past historical ills and current mistreatment of some groups or individuals. While a particular event or mindset might be the very reason why a diversity initiative was undertaken in the first place, it’s not productive to single out those employees who have made mistakes in the past or induce guilt for past social wrongs. The purpose of a diversity program is to foster shared responsibility for increasing understanding and improving future relationships. The purpose of a diversity

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The Changing Landscape

10 Elements For Creating a World-Class Program

initiative and diversity training should be to mobilize, not polarize.

# 7: Set Clear Expectations and a System of Accountability If everyone is to share responsibility for an initiative’s success, it’s critical that everyone be clear about the expectations for their contribution. What are the standards for respectful interaction? How are managers expected to coach and develop others? How will interpersonal conflict be resolved? Whatever the expectations, the company needs to use all the channels regularly employed to communicate expectations around other important initiatives. There also needs to be a system for holding people accountable. This could include incorporating standards for inclusive behavior into the performance review process or tying some portion of a manager’s bonus to employee survey results. Behavior that is clearly out of line with the expectations must be addressed quickly. Regardless of which items are included in a performance management document, if employees see a pattern of disrespectful behavior that is allowed to continue, it sends a clear message about the real expectations and level of accountability.

# 8: Create Measures to Assess Progress An important step to take to make sure a diversity program is not just a surface level objective is to set specific goals and then assess progress. It’s not enough to simply feel that a change has occurred and that there are no longer problems. A diversity program must be treated in the same way that any other business objective is treated, with a clearly set starting point that can be referred to as a benchmark and then a means for tracking progress over time. Often organizations already collect data related to levels of productivity, morale and

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retention that could be incorporated into a diversity measurement. The key step is to assess how the company’s efforts toward inclusion affect these measures and then reinforce those things that are effective and revise those that are not.

# 9: Create a Broad-ranging Initiative Diversity isn’t a stand-alone issue, and needs to be central to an organization’s employee development strategy. Diversity cannot be achieved by a one-day training event. Just as diversity is a complex and involved issue, the plan used to address it must be similarly in-depth. Strategic planning, assessment, measurement over time, links to other initiatives, policy and practice review, training and mentoring must all be used to effectively create and maintain a diversity program.

By inclusion, we mean that an organization needs to ensure that it not only attracts a diverse group of employees but that it provides them—regardless of which group they belong to—challenging tasks, real authority within their span of control, and the support to grow and develop. One of the most common stumbling blocks in building a diversity program is to place too much emphasis on recruitment as the solution to a lack of diversity and inclusion. While hiring more diverse employees may make it seem on the surface that the “problem is solved,” just hiring people to meet a quota does not facilitate true inclusion. While hiring is surely important, it’s just the first element of an inclusion program. Effective inclusion also involves retention, development, mentoring, and advancement.

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January/February 2003

# 10: Provide Sufficient Resources and an Appropriate Infrastructure Just as with any other business objective, the financial and human resources required must be made available. Holding diversity training sessions alone is not a sustainable method by which to build diversity and inclusion. It is important to build an infrastructure—to have the organizational practices, personnel, and budget necessary to develop a broader pool of talent. A simple diversity program might seem like a cost-effective way of quickly addressing the issue of diversity, but it will not achieve the desired goal of increasing business success. By providing an infrastructure to build a diversity and inclusion initiative, and carefully forming a company-specific approach, organizations can utilize their diversity to ensure future business success. Being sure that the right practices, employee development activities and rewards systems facilitate the development of all—in alignment with the business objectives—is the key to a successful initiative. In today’s uncertain economic environment, the one undeniable competitive foothold is a company’s capacity to develop a broader population of talent to the highest standards. Diversity is an important business objective that must be dealt with as such and not treated as an awareness exercise or “the right thing to do.” By understanding a broad definition of diversity, providing an infrastructure to build a diversity initiative, and carefully forming a company-specific diversity initiative, organizations can utilize their diversity to ensure future PDJ business success. Michael C. Hyter is President and CEO of Novations/J. Howard & Associates, Inc., an international provider of diversity and human resource development solutions. Contact him at 617.254.7600, or online at www.jhoward.com. page 51

Raising The Bar

Milwaukee Journal Sentinel

balancedperspective TOWARDS A MORE

NEWSPAPER’S DIVERSITY

REFLECTS

THE COMMUNITY IT COVERS

Marilyn Krause, Senior Editor/Administration Sentinel is published by Journal Sentinel Inc., which employs about 1,600 people.

and be aggressive.” He cited looking for non-traditional journalists, such as medical school students for future health or science “Our company is committed to the cause of reporters, as an example. diversity,” said Keith Spore, Journal Sentinel president and publisher. “Our newsroom is Causey believes that many young African one of only twenty in the country whose Americans do not consider journalism as a percentages of minorities exceeds the career because they do not know anyone in population in the community. Finding and the field. To help develop the careers of retaining a talented, diversified workforce young journalists, several Journal Sentinel is critical.” news employees mentor college students.

he newspaper is a powerful medium within a community. To provide the best news coverage, the many different voices of the community must be included to share diverse perspectives and to make the content relevant to all readers. The Milwaukee Journal Sentinel, a daily newspaper read by more than 675,000 adults in the Milwaukee, Wisconsin metro area, strongly embraces this philosophy. Hiring, retaining, developing and empowering a diverse employee group are essential for the newspaper to put this principle into practice. The Journal Sentinel is widely recognized as one of the top newspapers in the country with regard to racial diversity. It recently ranked 16th out of the top 200 newspapers in reflecting the minority representation of the community it serves. The Journal

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The Journal Sentinel continually looks for new ways to achieve its diversity goals. For example, newsroom employees helped organize the 2002 National Association of Black Journalists Convention, held in Milwaukee. The event attracted 2,000 African-American journalists from all over the United States. “We want to find talented minority journalists,” said James Causey, a Journal Sentinel assistant city editor. “Overall, our newspaper is doing well in terms of the number of African-American journalists, but it could be even better. We have to change our way of thinking and set goals

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Local news, local talent “Recruiting and retaining qualified candidates is a challenge on both the news and the business sides of the company,” said Verona Morgan, manager of workplace diversity for Journal Sentinel Inc. “Attracting and keeping talent is a top priority, but competition for that talent comes from newspapers across the country.”

In 1999, Jim Spangler, vice president of human resources and labor at Journal Sentinel Inc., received the Media Human Resources Association’s Catalyst Award, the organization’s highest honor, for his newspaper-related diversity and human resources contributions. “Awards are an indicator that we are doing some good things,” Spangler said. “Nevertheless, the whole subject of diversity is something we are always learning and trying to do better.”

January/February 2003

James James Spangler Spangler Vice Vice President President Human Human Resources Resources and and Labor Labor page 53

Raising the Bar Towards a More Balanced Perspective The Journal Sentinel has launched programs to attract more Wisconsin students of color to journalism in order to identify and grow local talent, increase opportunities for minorities and improve the newspaper’s coverage of the community. “We need to create opportunities that allow students to experience journalism and grow at it,” said Martin Kaiser, Milwaukee Journal Sentinel senior vice president and editor. With that perspective, the company has created a partnership with Marquette University in Milwaukee and it sponsors a summer internship program for college students. Among newsroom efforts to promote diversity among the staff and in the newspaper’s content is the annual Time Out for Diversity and Accuracy program sponsored by the American Society of Newspaper Editors, the Freedom Forum and the Maynard Institute. The most

frequented by hip twentysomethings, a south side neighborhood of Hispanic families and businesses, and a birding expedition. “Regional newspapers are important because media are becoming so fractured,”

“Regional newspapers are important because media are becoming so fractured. There are radio, TV and cable TV stations and an increasing number of Internet sites, but they seem to reflect only selective audiences. Papers like the Milwaukee Journal Sentinel are the last, best chance

to reflect the diversity

The newsroom staff also works with minority high school students who contribute to Jump, a weekly page written by and for teens from throughout Wisconsin. Last summer, six students took part in a threeweek job shadowing program and several have entered college journalism programs since writing for Jump. In all areas of the company, the goal is to move persons of color up through the organization to increase diversity at all levels. To accomplish this, jobs are posted internally before being advertised publicly. Having men and women fill nontraditional roles also is a focus: for example, hiring more men for clerical positions and more women in the pressroom. An internship program with Milwaukee’s Bradley Technical High School and apprenticeships are helping attract more women to pressroom jobs.

of a metropolitan area.”

“Having a diverse workforce always has seemed like a common sense approach to me,” said Steven J. Smith, chairman of the board of Journal Sentinel Inc. “Managers who don’t think about this concept may simply hire people who look and behave like themselves. In doing so, they will limit the potential of the business Keith Spore Verona Morgan Martin Kaiser President & Publisher Manager, Workplace Diversity because our local Senior Vice President/Editor communities are mosaic, recent program suggested community tours Kaiser said. “There are radio, TV and cable not one-dimensional.” as a way to get reporters and editors into TV stations and an increasing number of areas they might never have seen before. Internet sites, but they seem to reflect only Above-average results selective audiences. The Journal Sentinel’s minority hiring It was a huge success and the newsroom record is above industry average according plans to repeat it in a few months. Staffers “Papers like the Milwaukee Journal Sentinel to a report that combines full-time and took colleagues on tours along their beats are the last, best chance to reflect the part-time employees across all departor places that were of interest. Among the diversity of a metropolitan area.” ments. Morgan said 21.6 percent of all hits: The Cool Tour—clubs and cafes employees are minorities, 31 percent are page 54

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Raising the Bar

Towards a More Balanced Perspective

women and 25.4 percent of all female employees are minorities. “We have an established pool of women and minorities that we can draw from in the internal job posting process. That helps our company stay ahead in terms of a diverse workforce.” Morgan believes that for a business to be committed to diversity, the leadership of the organization must set the tone. Strategic measurements are used to gauge the effectiveness of the company’s initiatives. Executive-level diversity MBO (Management by Objectives) demonstrates the company’s commitment to ensuring that diversity goals are met; reaching the objectives accounts for a portion of an executive’s management bonus. Training also is important for implementing a change in company culture. Morgan cites the “Communicating Across Differences” and the “Leading Effectively Across Differences” training that was given in 2000 to Journal Sentinel employees as key factors in creating a more inclusive work environment.

Role model Locally and nationally, the company has been recognized for its efforts. Project Equality of Wisconsin, a coalition of businesses and organizations that collaborate with employers to achieve fair employment practices, presented the Journal Sentinel with its 2002 Pride and Excellence Employer Momentum Award for its commitment to creating a workplace that supports diversity. In 2001, the company was recognized as one of the best places to work in Milwaukee by the “Milwaukee Magazine.” The magazine noted that Journal Sentinel Inc.’s executive committee includes two 1-800-573-2867 www.diversityjournal.com

women and two minorities and named the company first in “Best Community Involvement” for its sponsorship of ethnic, charitable and community events. “Managers who don’t think about this concept may simply hire people who look and behave like themselves. In doing so, they will limit the potential of the business because our local communities are mosaic, not one-dimensional.”

Milwaukee Magazine also named the Journal Sentinel as “Best Employee Voice” for its Diversity Council and other internal committees. The Journal Sentinel Diversity Council serves as an adviser to the executive committee. “We take issues to the executive committee. Steven J. Smith, Chairman of the Board Journal Sentinel Inc. They generally take our recommendations and let us move forward,” “The real challenge is how to keep the Morgan said. “We have our own line-item message of diversity fresh,” said Morgan. budget that has been increased every year.” “We need to come up with innovative ways to make people aware of the needs.” Part of Community outreach that effort has been the creation of an Promoting social and economic equality in-house Web page, participation in through diversity workforce principles is also a significant objective of the company. employee orientations and sponsoring fundraisers, Cultural Awareness Day, The Journal Sentinel’s coaching and Community Service Day, an ethnic cookmentoring programs and its community off and the company’s holiday celebration outreach programs have received recognithat highlights the cultures of ethnic tion from the Milwaukee Urban League. groups. Ideas also are received through e-mail to the Diversity Council and via Morgan oversees and participates in suggestion boxes that are located many community activities. This throughout the company’s facilities. brings her to high schools, colleges and community-based organizations. “I use the opportunities to enhance recruitment of candidates from all backgrounds,” she explained. To evaluate the company’s progress, Morgan relies on quantitative data from the Milwaukee Metropolitan Statistical Area report that measure the demographics of the customer service area, and Equal Employment Opportunity metrics that evaluate the composition of the firm’s work force. Also important is qualitative data gathered from surveys, focus groups and exit interviews with departing employees.

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In the next five years, the Journal Sentinel’s diversity goals include broadening the diversity program to a process of inclusion, increasing diversity at all levels and in all job groups, and increasing the internship program. “The strengths at Journal Sentinel are the support from executives and the representation on the council that is balanced across different departments,” summed up Morgan. “Diversity is part of PDJ the company culture.” Contact Marilyn Krause at mkrause@journalsentinel.com page 55

Legal Briefings

Holland & Knight LLP

supplierdiversity A MARKET MARKET-DRIVEN A DRIVEN IMPERATIVE

Weldon H. Latham Senior Partner, Holland & Knight LLP

n recent years, supplier diversity programs have become essential components of every comprehensive corporate diversity strategy or program. Once a company has addressed the various human resource issues1 related to diversity, supplier diversity is the next most important component of a comprehensive plan. Obviously, workforce related diversity efforts are internal commitments to the company’s employees, and supplier diversity programs are external commitments to the minority and women’s marketplace. Corporate America’s inclusion of minority- and women-owned business enterprises (“MWBE”) in its procurement strategy demonstrates a savvy business approach and an investment in a growing and important segment of the national economy. Most supplier diversity programs began as small and so-called “disadvantaged” business programs required by the federal government of its contractors in the 1970s. The government established goals for federal contractors to subcontract with small and disadvantaged businesses. Indeed, such programs, and the accounting and monitoring infrastructure they spawned, became indispensable to government contractors. page 56

Any company seeking to become a leader in corporate diversity must embrace supplier diversity as a vital component of its diversity program. An in-depth review of the elements of a successful supplier diversity program—and the competitive advantages such programs represent when managed well.

American companies now spend billions of dollars in contracts solely with minority businesses. For example, McDonald’s Corporation spent 27 percent ($3 billion), SBC Communications spent 22 percent ($3.4 billion), and General Motors Corporation spent nearly $2.5 billion of their 2001 procurement budgets with minority-owned businesses. Virtually all advocacy groups, trade associations, and civil rights organizations interested in corporate diversity issues routinely inquire about supplier diversity performance when rating a company’s overall diversity performance. Fortune magazine is no exception; it solicits data on supplier diversity achievements and considers it in determining its annual 50 Best Companies for Minorities. The fundamental shift in the motivation for establishing and expanding supplier diversity programs over the past 30 years has been from a government mandate (solely for government contractors) to a business imperative (for most competitive companies). In short, years of experience with diverse suppliers have confirmed the

Profiles in Diversity Journal

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business benefits and competitive advantage they generally represent.

Elements of a Successful Supplier Diversity Program Through the successes, mistakes, and lessons learned from companies around the country that have been experimenting with and improving their supplier diversity programs for many years, the following essential success factors have emerged: 1. Strong, Sustained, Visible Support and Leadership of the CEO and Senior Management. The critical foundation for every successful supplier diversity program (like most other major corporate initiatives) is a strong, visible, sustained commitment from the CEO and other senior management. Companies that are successful in increasing competitive contracting opportunities for MWBEs have CEOs who have made supplier diversity programs a real priority.

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Supplier Diversity: A Market-Driven Imperative 2. Promulgation and Publication of a Corporate Supplier Diversity Policy Statement. A formal corporate policy is an indispensable element of successful supplier diversity programs. The policy should be: (1) issued by the CEO, with a designated company executive responsible for its management; (2) included in all appropriate business plans company-wide; (3) visible on the Website and distributed throughout the company; and (4) supported by objective and quantifiable goals against which all executives responsible for any phase of the company’s procurement process will be judged. 3. Creation of a Supplier Diversity Department. Successful supplier diversity programs are led by supplier diversity departments, and managed by someone with the phrase “Supplier Diversity” in his/her title and adequate budget and staffing resources. The primary function of the department and its manager is to serve as the focal point for information, initiatives, outreach, data collection, and other activities related to administration of the supplier diversity program. The responsibility for the ultimate success of the program must remain with all executives responsible for any phase of the company’s procurement process. 4. Establishment of Goals. The essential goal for company-wide supplier diversity performance is typically stated as a percentage of the company’s total procurement budget spent directly with diverse suppliers. As noted above, companies seeking recognition as diversity leaders spend significant sums, both absolutely and as a percentage of their total purchasing budget, on minority-owned businesses. For 1-800-573-2867 www.diversityjournal.com

Raising the Bar

example, the Supplier Diversity Business Roundtable consists of ten major companies that each spend more than $1 billion annually on minority-owned suppliers.2

follow-up studies to determine methods of improvement. Systems differ, but in general any supplier diversity accounting system should be capable of generating a spreadsheet, with accompanying graphs and charts, that presents “Successful supplier diversity programs must reach and the following informaidentify qualified MWBEs tion: (1) total dollars producing the goods and services spent year-to-date their companies need. This is an on all procurements; important component of (2) total dollars spent ‘re-education’ for supplier year-to-date with diversity—effectively heightening minority-owned the awareness of buyers that many required products suppliers, by ethnic and services can be procured group; (3) percentage of from MWBEs.” dollars spent year-toWeldon H. Latham date with minoritySenior Partner owned suppliers, by 5. Accountability for Meeting Goals. As ethnic group; (4) total dollars spent with other corporate financial objectives year-to-date with women-owned (e.g., revenue, profit, margin enhancesuppliers; (5) percentage of dollars ment, expense reduction, market share, spent year-to-date with women-owned etc.), accountability is a prerequisite to suppliers; (6) total number of active the achievement of supplier diversity engagements with minority-owned goals. The importance of linking suppliers; (7) total number of active performance evaluations for buyers, engagements with women-owned sourcing managers, procurement agents, suppliers; (8) progress against goals for their managers and superiors (i.e., all minority- and women-owned business personnel responsible for any phase of expenditures; and (9) same data for the company’s procurement process) to second-tier expenditures. Of course, their success in accomplishing supplier metrics are good only if they are used. diversity goals, cannot be overstated. Therefore, it is recommended that all Bonuses and awards for exceeding business unit leaders receive regular, i.e., goals—and penalties for serious at least monthly, reports, and that the failures—are effective means of CEO receive at least quarterly reports incentivizing procurement executives and semi-annual briefings. and achieving company-wide minority supplier procurement goals. 7. Training of All Purchasing Personnel. 6. Meaningful Metrics and Effective Reporting. Metrics provide the means by which a company measures the success or judges the impact of its supplier diversity program. They allow companies to identify shortcomings, prioritize action items, and then conduct

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It is imperative that buyers, sourcing managers, procurement agents, and others in the purchasing process are knowledgeable about applicable supply management principles, company supplier diversity objectives, and standard operating procedures. Thus, all affected personnel should be trained on page 57

Raising the Bar

Supplier Diversity: A Market-Driven Imperative

all aspects of the program. Additionally, of upcoming activities; and other tactical programs should be established to assist publication of the operations of supplier in the development of diverse suppliers diversity. External communications by mentoring and helping promising include the Website; advertising in minority and female suppliers to grow business and trade journals; and prosper. The larger and more presentations at seminars and successful each protégé MWBE company conferences; and distribution of becomes, the better it can satisfy your supplier diversity brochures to company’s requirements—presumably interested vendors. at increasingly more competitive rates. 10. Interactive Website. An effective supplier diversity Website can be a 8. Effective Supplier Outreach Program. critical component to the success of Successful supplier diversity programs a supplier diversity program. All stakemust reach and identify qualified holders, including customers, business MWBEs producing the goods and servpartners, and prospective vendors, are ices their companies need. This is an becoming increasingly sophisticated in important component of “re-education” the use of Websites. This vehicle can for supplier diversity—effectively heightbecome invaluable to the diversification ening the awareness of buyers that many of your supplier base. required products and services can be procured from MWBEs. It is generally no longer true that “I can’t find an Competitive Advantages: MWBE” that provides whatever good or Supplier Diversity Programs service a company is seeking. Major The highest rated “model diversity corporations that are serious about companies” implement and publicize their creating or enhancing a successful effective supplier diversity efforts and supplier diversity program should seek major accomplishments as part of their help from experts in this field. overall diversity program. They recognize the following benefits: 9. MWBE Communications Plan. The company should publicize its supplier diversity program both internally and externally as well as its successes, challenges, and opportunities. Internally, this would include regular publication of a newsletter; frequent articles on the intranet; announcements

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1. Doing business with minority- and women-owned companies provides access to a larger market and can be the basis to build relationships with minority leaders and communities. 2. Impressive supplier diversity performance can create the competitive edge in marketing and recruiting that distinguishes “best in class” companies to prospective customers and minority/ female recruits.

Profiles in Diversity Journal

• January/February 2003

3. Successful supplier diversity performance can enhance corporate reputation, image, and visibility. 4. Minority suppliers can be “faster, better, cheaper.” 5. Corporations doing business with federal, state, and local governments are typically required to subcontract to MWBEs, and major corporations are increasingly demanding similar requirements of their vendors as well. “Reinventing the wheel” can be avoided by utilizing experts familiar with supplier diversity programs and “best practices” who can assist a major company in bringing its supplier diversity program into the 21st Century. In today’s highly competitive U.S. market, a productive supplier diversity program is an essential part of any major corporation’s comprehensive diversity program. Implementation of a new, or enhancement of an existing, supplier diversity program can result in substantial improvement in a company’s relations with minority and female suppliers, employees, recruits, customers, and other stakeholders as well as with women’s groups and the PDJ minority community at large. 1

Human resource “diversity matters” generally relate to improving diversity in corporate governance, senior management, and the workforce, as well as relevant training. In addition, world-class supplier diversity programs often require that their prime contractors spend 5 to 20 percent of their contract dollars on second tier contracts with MWBEs, and regularly report their results and extent of success in this regard.

Weldon Latham is a senior partner and Practice Area Leader of the Holland & Knight LLP Corporate Diversity Counseling Group. He serves as Counsel to the Coca-Cola Procurement Advisory Council; Chair, Deloitte & Touche LLP Diversity Advisory Board; and General Counsel, National Coalition of Minority Businesses. www.hklaw.com . 1-800-573-2867 www.diversityjournal.com

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At Williams, we believe that when individuals are allowed to maximize their own potential, we all win. That’s why we strive to treat everyone with dignity and respect. It’s more than just a business philosophy or a management style. It’s the Williams way.

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The Changing Landscape

Approach #2

Roosevelt Thomas Consulting and Training

The second approach, Understanding Differences (UD), is more qualitative, and it too focuses on diversity in the workforce— raising understanding for greater workforce harmony. After organizations began hiring significant numbers of women and minorities, they soon recognized the need to help new entrants assimilate. Hence, the apparent need for sensitivity training became all too obvious, and organizations applied this type of training to aid workers with getting along and working together. Other important initiatives have evolved through the years to create a work environment where better understanding was fostered—events, special holidays, observances, policy and benefit changes, celebrations, training, etc.

Understanding Differences

verifying your management DIVERSITY

THE SCORECARD APPROACH

Hal O. Jones Vice President/COO, Roosevelt Thomas Consulting & Training

s we begin the dialogue with prospective clients, often we are asked “How will we know if our diversity effort is truly effective—are there predictive measures?” Most corporate leaders brace themselves for a response they have often heard, “Diversity has numerous qualitative aspects that one can measure.” We offer up a different response. While companies have for decades been measuring “how many,” meaning the number of minorities and women hired, we posit that there are numerous other measurable criteria that should be added to the corporate diversity yardstick. In order for companies to gain insight into these other measurable criteria, we have formulated a scorecard from the Four Approaches Model to Diversity Management, developed by Dr. R. Roosevelt Thomas, Jr. This model, pictured to the right, represents the following approaches: Approach #1

Ensuring Representation The first approach, Ensuring Representation (ER), is very quantitative, focusing on the 1-800-573-2867 www.diversityjournal.com

traditional workforce view of diversity. “How many of what representative work groups (race, gender, age, management, non-management and work category) exist within our workforce?” The aim of Ensuring Representation has historically been to comply with Equal Opportunity Employment statutes and Affirmative Action dictates. Late twentieth century

Approach #3

Managing Workforce Diversity The third approach, Managing Workforce Diversity (MWD), incorporates both quantitative and qualitative aspects and challenges corporations to go beyond the two traditional workforce formulas formerly described. MWD looks at how

The Four Approaches MANAGING WORKFORCE DIVERSITY Focuses on accessing talent

STRATEGIC DIVERSITY MANAGEMENT Focuses on all internal and external diversity mixtures that impact the business

DIVERSITY Any collective mixture of differences and similarities

UNDERSTANDING DIFFERENCES Focuses on relationships

ENSURING REPRESENTATION Focuses on inclusion

Effective diversity management requires all four approaches to diversity companies have approached the representation element for somewhat different reasons that range from “we want to resemble our customers/clients” to “we want to be reflective of community demography.”

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organizations are accessing all workforce talent, but it goes further—it focuses on workplace elements such as the systems, practices and policies that either support or thwart workforce performance. One such example from this approach might be a promotion policy. How does the policy work page 61

The Changing Landscape

Verifying Your Diversity Management

for workers from different backgrounds, education, gender, race, age and so on? It’s not enough to look at getting workers

“Through this type of an evaluation, companies learn how their organization is either supporting or hindering workforce members’ full contributions.” Hal Jones Vice President/COO

review the cultures of two differing organizations to appraise the sticking points and synergies that exist. Diversity management principles aid in navigating this diversity mixture—to consummate the deal, or to abandon it and look for a better match. Other such internal or external mixtures might include brands, community groups, thought, vendor and supplier, distributor and more. Grounded in the Four Approaches, Roosevelt Thomas Consulting & Training (RTCT), a diversity consultancy in Atlanta, Georgia (founded by R. Roosevelt Thomas, Jr., pioneer of the diversity management movement), has devised the Organizational Diversity Management Scorecard (ODMS),

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Organizational analysis data is collected in the following ways: - Interviews with leaders whose support to the diversity initiative is mission critical

Below, sample findings and suggestions from the scorecard output. Actual results of the ODMS are much more extensive. The findings are listed generically to conceal the identity of our clients. Diversity management dimensions with representative illustrative recommendations for improvement are listed.

STAGE OF DEVELOPMENT Talking the Talk

Thinking the Talk

Walking the Walk

- Key finding: business strategy embraced diversity management as a key business rationale; studies showed that as the company reflected its customers, improvement increased

- Suggested senior leaders develop a management succession plan; recruitment goals, objectives and actions established for each division and department

- Recommended the organization hold itself accountable for results— through the addition of diversity management to senior leader and midmanagement performance management goals/rewards & incentives

Understanding Differences Organization B: Imports

- A proclamation was set forth declaring multi-ethnic customers/clients and employees as a growth imperative

- Organization performed a study on the needs of various ethnic audiences; goals they would have to attain to meet targets within these audiences

- Recommended widespread communication and training to shift workforce mindset to new ethnic marketing objectives

Managing Workforce Diversity Organization C: Energy

- This company had set a goal of being on Fortune’s “Best Places To Work” list

- Engaged in a cultural audit and organizational scorecard to discern work environment supports & hindrances

- Offered short and long term recommendations to maintain strengths and shore-up vulnerabilities

Strategic Diversity Management Organization D: Retail

- Senior leaders had - Suggested a detailed articulated a value of study of potential vendors including more minorityfor respective service lines and women-owned vendors and suppliers - Organization was in - Through our research, we process of performing unveiled that leadership due diligence, inclusive of desired to acquire new lines cultural compatibility of business with one new/different business line

Approach #4

The fourth approach, Strategic Diversity Management (SDM), having both qualitative and quantitative aspects, calls for the application of diversity management principles to all types of diversity mixtures both inside and outside the organization— even into the marketplace. You might ask, “How could the analysis of diversity mixtures pertain to a marketplace mixture?” One example immediately comes to mind: take, for instance, a merger & acquisition. The due diligence phase is a very important period in which organizations can fully

Methodology for the scorecard

continued page 66

across the work portal and counting them, as in Approach #1, Representation, but it is important to see how this internal system works for all members in pursuit of the organization’s objectives and their APPROACH career objectives simultaneously. Through this type of an evaluation, companies learn Ensuring Representation Organization A: Healthcare how their organization is either supporting or hindering workforce members’ full contributions.

Strategic Diversity Management

a tool that employs both quantitative and qualitative measures to aid organizations in looking at their diversity management strengths and vulnerabilities.

Profiles in Diversity Journal

• January/February 2003

- Study showed need for new policies and practices relating to minority- and women-owned suppliers and vendors - Held (real-time issue) application sessions with divisional leaders involved in acquisitions; optimized integration focus

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Raising The Bar

Rabobank Heerhugowaard/Netherlands

offers ethnic entrepreneurs tools to help them improve their business and marketing skills. It also provides access to networks, which is very important because many ethnic entrepreneurs have little access to networks outside their own ethnic community.

ethnic empowerment Martin Hofstede, MBA RM CEO, Rabobank Heerhugowaard

AM Insurance opened for business in December of 2000. The company specializes in providing insurance policies to small businesses and households of Turkish origin. Two entrepreneurs of Turkish origin, Abdurrahman Kulup and Murat Karaulu, formed the partnership with the idea to sell insurance policies to clients of their own ethnic background. Murat had worked in a large Dutch insurance company, called RVS, and was a member of a Turkish taskforce, selling exclusively to clients of a Turkish background. “I learned a lot, during my period in RVS, but I also knew I did not use my skills totally. I saw other and more possibilities,” says Murat. The idea of owning his own insurance business was never far from his mind. In the summer of 2000 he started to write his business plan and, with his partner Abdurrahman, he started the company a few months later. It was a small office, but things went well. An ethnic market-driven business such as Murat’s is not unusual in Rotterdam. 1-800-573-2867 www.diversityjournal.com

Rotterdam is one of the largest cities in the world, and has the world’s largest port. Ships from all over the world dock here to deliver their goods for Western Europe. Many of the major oil companies, like Shell and Exxon, have their refineries in Rotterdam. Almost 50% of the population of Rotterdam has a non-Dutch ethnic background. Interestingly enough, many Dutch-orientated companies have difficulties in reaching the non-Dutch ethnic population—they just are not able to modify their marketing to better reach a multicultural market. Erol Poyraz, who is also of Turkish origin, owns CIBIT, the Crossnational Institute for Business and Information Technology. Businesses like Murat’s make CIBIT a success—they specialize in helping businesses address marketing to a multicultural market, multicultural human resources management, communications, and the development of business concepts. One of CIBIT’s most successful projects, Frontiers, is a consulting service that

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Imagine the challenge of running a business that is active between suppliers of a Turkish cultural background in a Dutch business culture. Martin Hofstede, a member of the Diversity Board of Rabobank Group, interviews Murat Karaulu, one of the owners and CEO of TAM Insurance, and Erol Poyraz, owner and CEO of CIBIT, one of TAM’s consultants. Ethnic empowerment: the key to TAM’s success The idea behind the business of TAM Insurance is to connect Dutch insurance companies, who have little success marketing to ethnic markets, with households of Turkish origin. Many of the non-Dutch ethnic households have no or insufficient insurance coverage. This is especially true for Turkish businesses; in the Turkish cultural tradition, insurance is not necessary, as they help each other in times of difficulties, as in after a fire, etc. But times have changed; today, more people realize they need insurance to be protected against high financial risks, but many have no knowledge of this business practice and they just don’t know what kind of insurance they really need. Murat Karaulu realized the possibilities when he started his business just over two years ago. “It is true,” he says, “that second and third generation Turks in The Netherlands do speak Dutch, so there is no direct need to sell my products in the Turkish language. But we have learned page 63

Raising The Bar

Ethnic Empowerment Acting between two cultures

that the younger generation likes to be informed in their own language and— more importantly—in a way that is customary in their culture.” CIBIT’s Erol Poyraz agrees. Most organizations do not realize the significant differences between the Dutch and the Turkish cultures. “If you do not accept this and if you do not adjust to the way your clients want to be approached, all your efforts will fail. It is that simple,” Erol says. What is the story of the success of TAM? Most Turkish entrepreneurs take their idea and just start their business. They are merely learning by doing and, of course, failures are to be expected. A survey in The Netherlands showed the major reasons why many ethnic companies go bankrupt within a few years: 1. Insufficient professional knowledge 2. Insufficient knowledge of marketing 3. Insufficient knowledge of management practices 4. Insufficient substantiated financial plan 5. Small number of potential clients (often only within their own ethnic background) 6. Unacquainted with all the rules and laws regarding starting a business. TAM’s partnering team took all the right steps before beginning their business. They realized how important it was to invest in planning and improving their own skills before they started. Murat’s experience in this type of business meant he had all the professional knowledge to sell insurance policies required by Dutch law. But he did more; he also used CIBIT like a coach, helping him to learn more about the special needs of the clients of his own ethnic background.

indirectly. This was a difficult concept at the start, for the employees saw both Murat and Abdurrahman as owner and boss. But they also saw them as Turkish and did not expect them to act Dutch. However, they both wanted to conduct their business as a Dutch organization; they realized this would be a very important issue to the Dutch insurance companies with which they wanted to work.

TAM’s business acts as a kind of intermediary between the Dutch insurance companies and clients of Turkish origin — you could say they act Dutch at the back door (in contacts with their suppliers) and Turkish in the market (selling the products to their Turkish clients). The culture in the offices is a mix of Dutch and Turkish. The style of management is Dutch and the language in the offices is an alternation of Dutch “Almost 50% of the and Turkish. The population of Rotterdam employees accept a has a non-Dutch ethnic phone call in Dutch background. Interestingly and then switch to enough, many Dutch Turkish if it is a orientated companies have Turkish client calling difficulties in reaching the them. non-Dutch ethnic population—they just are The Dutch not able to modify their management style marketing to better reach a is different and quite multicultural market.” an adjustment for

Martin Hofstede Turkish employees. CEO In Dutch-owned Rabobank Heerguowaard companies the The organization of the office is the same employees expect a Dutch management style, but TAM has Turkish owners and all as any other well-organized Dutch office. the employees are of Turkish origin, so the This was recognized immediately by the Dutch insurance companies, which employees expected a Turkish style in instilled confidence towards TAM right managing the business. “We did not enough realize this at the start and we had from the start. But TAM sells in the Turkish culture, so that their clients feel at some problems at that time,” says Murat. home in the office. “Some of the newer colleagues had other expectations and thought they would work in a Turkish business culture. As we work more with this, our new people know what is to be expected,” Murat explains. The Dutch management style is more open and more direct in communication, but most importantly, it is not in any way hierarchical in nature. The Turkish management style is hierarchical; the manager communicates

The atmosphere in the TAM office is a mix of Dutch and Turkish; the Dutch style of running an office and the Turkish style of doing business with your clients. This gives confidence to both the suppliers, delivering the policies, and the clients of TAM, who are buying them.

continued page 66 page 64

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stargazing

people in the news

Valencia Adams Named BellSouth Chief Diversity Officer Duane Ackerman, BellSouth’s Chairman and CEO, has named Valencia Adams as Chief Diversity Officer, responsible for inclusion strategy development and implementation across BellSouth, including collaboration with the Chairman’s Diversity Council. Adams, who will report to Ackerman in her new role, replaces Ron Frieson, who has been named to the position of Vice President, Transition and Strategy for Consumer Services. Adams brings more than 30 years of BellSouth operations experience to her new role, including numerous positions in Consumer Services, Human Resources and

Marketing. Most recently, she served as the Chief Operating Officer for Consumer Services. In that role, Adams was responsible for leading an 8,000-member team in planning, developing and implementing strategies to service the residential market in BellSouth’s region. She led BellSouth’s recent strategy to enhance customer service delivery through the implementation of a Consumer Services operations transformation initiative.

“Valencia’s strong leadership, passion and expertise will be a tremendous benefit to the company as she works to further BellSouth’s diversity and inclusion strategy,” said Ackerman. “Ron has left a strong foundation on which Valencia can build to further enhance our commitment to inclusion.” She currently serves as a trustee for the Georgia Council on Economic Education, sits on the boards of the BellSouth Foundation, Prevent Child Abuse Georgia, and the Possible Woman Foundation, and is a long time volunteer for Junior Achievement. Adams is a graduate of Georgia State University with a Bachelor’s in Business Administration. In his new role, Ron Frieson will lead phase two of the Consumer Services Division as they focus on employee engagement, sales transformation and implementing their bundling strategy. PDJ

1-800-573-2867 www.diversityjournal.com

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page 65

stargazing

people in the news

Congressman Elijah E. Cummings Elected Chair of the Congressional Black Caucus U.S. Representative Elijah E. Cummings of Maryland will lead the 39-member Congressional Black Caucus during the upcoming 108th Congress. He will succeed the current CBC Chair, Representative Eddie Bernice Johnson of Texas. Re-elected recently to serve his fifth term in the Congress, the 51-year-old lawyer and Phi Beta Kappa graduate of Howard University serves on the Democratic Policy Committee and the House Task Force on Health Care Reform. He is the senior Democrat on the House Criminal Justice, Drug Policy and Human Resources Subcommittee and Co-Chair of the House AIDS Working Group. As Chairman for the 108th Congress, Congressman Cummings will head a new CBC leadership team that includes Representatives Sheila Jackson-Lee of Texas (1st Vice-Chair), Corrine Brown of

scorecard

Florida (2nd Vice-Chair), Danny Davis of Illinois (Secretary), and Barbara Lee of California (Whip).

The CBC will advance a legislative agenda that focuses on the challenges that the American people face in their everyday lives. During the next two years, the CBC will hold a series of fact-finding forums on a wide range of pressing economic and social policy issues in the home districts of the 39 CBC members.

The 39member CBC will again benefit from the nationally-recognized leadership of Representatives John Conyers of Michigan (senior Democrat on the House Judiciary Committee), Charles Rangel of New York (senior Democrat on the House Ways and Means Committee), and James Clyburn of South Carolina (Vice-Chair of the House Democratic Caucus).

“Our role, as elected representatives, is to empower people’s ability to participate in their government,” the Chair-elect noted. “These CBC forums in home towns throughout America will give people the access to their leaders and the information that will help them to participate more PDJ effectively in their government.”

The Caucus also will include rising congressional stars like Representatives Chaka Fattah of Pennsylvania and

Rabobank/Netherlands

Continued from page 62

Roosevelt Thomas Consulting & Training - Focus groups with a sampling of the workforce; this includes both management and staff/employees - A full investigation of corporate practice through documentation review. All of the information gathered in the research phase is synthesized by RTCT and a report, including a narrative on the organization’s diversity maturity journey, as well as a scoring on the organization’s diversity management strengths and vulnerabilities, is produced. Both short- and long-term recommendapage 66

Stephanie Tubbs Jones of Ohio, as well as newly-elected Representatives Frank Ballance of North Carolina, Artur Davis of Alabama, Denise Majette of Georgia, Kendrick Meek of Florida, and David Scott of Georgia.

tions are provided for each of the Four Approaches. RTCT offers additional follow-on support to assist the client with implementation, change management, and further milestone measurement and PDJ calibration, as needed. Roosevelt Thomas Consulting & Training (RTCT) offers coaching on diversity strategy, strategic thinking and planning, organizational cultural analysis, and other services to enable organizational leaders to create the culture, systems, and practices necessary to sustain a competitive advantage. Reach the author at 404.212.5015 or online at www.rthomasconsulting.com. © 2001-2002 R. Thomas & Associates, Inc. All Rights Reserved.

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• January/February 2003

ethnic

Continued from page 64

The results TAM Insurance is now discussing expansion into other major Dutch cities, like The Hague and Rotterdam. Their product line has expanded as well; they now offer mortgages and financial planning services. The first year of the business saw a profit and business is growing fast. Executive management teams from several large insurance companies have visited TAM to learn their special approach to the multicultural market. TAM now conducts business with all major insurance companies and banks in PDJ The Netherlands. Martin Hofstede, MBA RM, is CEO of Rabobank Heerhugowaard, The Netherlands, and the author of “Ontkiemend Zaad (Growing Seeds): Ethnic Marketing & Ethnic Human Resource Management.” Contact the author at admaho.nl@planet.nl. 1-800-573-2867 www.diversityjournal.com

jp morgan

working here takes you places Exceptional performance is driven by exceptional people — working at a place where they can leverage their experiences, strengths and perspectives. At JPMorgan Chase, we’ve created an environment where everyone can reach their fullest potential. Our people build strong networks, meet new challenges head-on, grow their careers and take themselves — and our firm — to new heights.

© 2001 J.P. Morgan Chase & Co. All rights reserved. J.P. Morgan Chase & Co. An Equal Opportunity and Affirmative Action Employer M/F/D/V. JPMorgan Chase is a marketing name for J.P. Morgan Chase & Co. and its subsidiaries worldwide.