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Profiles in
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Volume 4, Number 5 September/October 2002
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Profiles in Diversity Journal®® launches The
Six Sigma Diversity Assessment
Your Tool for Measuring Diversity’s Impact on the Bottom Line
Special Section Women and Diversity
Leadership Summit & Diversity Gala 2002
Reports from more of this year’s Leadership Award Winners including BellSouth Corporation, Motorola, Inc., The Calvert Group, JPMorgan Chase, Duke Energy, IBM Corporation, Abbott Laboratories and Verizon.
Driving Diversity
From The Top
CEO advocates are often described as “the most powerful weapon in the diversity arsenal.” Under the helm of Chairman, President and CEO Steve Miller, Shell Oil Company became a diversity
SUPER-POWER.
Plus ideas from top thought leaders ... including Simmons Associates, PRISM, and The Diversity Leadership Academy of Atlanta.
WW W.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.
©2001 Ford Motor Company
www.ford.com
®
Diversity Journal Profiles in
Sharing Workforce Diversity Experiences
PUBLISHER / MANAGING EDITOR James R. Rector
pointofview From the editorial staff of Profiles in Diversity Journal
SENIOR EDITOR Katherine Sandlin EDITORIAL CONSULTANT Laurel L. Fumic PRINTING Master Printing OVERSEAS CORRESPONDENTS Dr. Myrtha Casanova, President European Institute for Managing Diversity, Barcelona Spain Graham Shaw, Director Centre for Diversity and Business London UK LETTERS TO THE EDITOR Commentaries or questions should be addressed to: Profiles in Diversity Journal P.O. Box 45605 Cleveland, Ohio 44145-0605 All correspondence should include author’s full name, address, e-mail and phone number. DISPLAY ADVERTISING 30095 Persimmon Drive Westlake, Ohio 44145 Tel: 440.892.0444 FAX: 440.892.0737 e-mail: profiles@diversityjournal.com SUBSCRIPTIONS U.S. $49.95 one year; $89.95 two years; in Canada, add $10 per year for postage. Other foreign orders add $15.00 per year. U.S. funds only. Subscriptions can be ordered on our web site: http://www.diversityjournal.com or call customer service at 800.573.2867 from 8:00 a.m. to 5:00 p.m. EST. Profiles in Diversity Journal® is published bi-monthly by Rector, Inc., Principal Office: P.O. Box 45605, Cleveland, Ohio 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.
Committed to Excellence In support of the efforts of Diversity Best Practices and The Business Women’s Network as they host this year’s Leadership Summit & Diversity Gala, we offer you this very special issue featuring stories from many of the winners of these prestigious leadership awards. While compiling these profiles, it became apparent that two personal characteristics were woven through their stories like a common thread: the vision to recognize that change was needed, and the commitment to make that change. And while vision might make a leader, commitment makes a leader great. In his book “Living With Passion,” one of America’s masters of sales motivation, Peter L. Hirsch, describes true commitment—the kind of commitment that is the hallmark of a leader—through a simple tale: “A chicken and a pig were having a discussion,” Hirsch writes. “The chicken said, ‘I am committed to giving one egg every day.’ ‘That’s not commitment,’ the pig said. ‘That’s just participation. Giving bacon, now that’s commitment!’” There is a big, big difference between commitment and participation. Commitment is not always comfortable. Commitment takes time and effort. And while commitment is not necessarily a do-or-die affair, it is doing what you set out to do, whether or not challenges or other obligations get in the way. This has not been an easy year to stick to commitments. As we struggle with an unfriendly economy and an uneasy political climate, it is more likely that we put off efforts toward the more difficult, long-term projects in order to handle the crisis-du-jour. Some organizations have questioned whether, during this drive to better economic times, their diversity initiatives should take a “back seat.” After all, they reason, what would it matter if we scaled back our diversity efforts a little bit today? We can catch up later … can’t we? Within these pages are the stories of organizations that understand the importance of a commitment to diversity—especially today. They understand the connection between an organization’s diversity and its overall health—and bottom line. They also understand that a diverse workforce means diversity of ideas—clearly the means to keep our corporations competitive under any economic situation. One of our features, “Measuring Diversity: A Six Sigma Assessment,” by the author of the Ultimate Six Sigma, Keki Bhote, describes a corporate support tool developed in order to help you drive home the importance of diversity programs today … and every day … to the health and economic growth of your corporation. Profiles in Diversity Journal is proud to be able to offer “The Six Sigma Corporate Diversity Assessment” as a way to objectively measure the impact of your diversity efforts. To all of those whose commitment is being recognized today, congratulations. May we always be of service to you as you realize your vision.
ISSN 1537-2102
www.diversityjournal.com 1-800-573-2867
James R. Rector Publisher Profiles in Diversity Journal
• September/October 2002
Katherine Sandlin Senior Editor page 3
What’ 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 Volume 4, Number 5 • September/October 2002
Raising The Bar
Corporate and Non-Profit Perspectives
Driving Diversity from the Top . . . . . . . . . . . . . . . . . . . . . . . .10
Presenting a United Front . . . . . . . . . . . . . . . . . . . . . . . . . . .46
If a CEO is “the most powerful weapon in the diversity arsenal,” Shell Oil Company is a diversity superpower, thanks in part to the efforts of Chairman Steve Miller.
Through a unique recruitment alliance, Bernard Hodes helps five Florida corporations seeking to attract and retain diverse talent.
The Strategic Differentiator . . . . . . . . . . . . . . . . . . . . . . . . . .15
Anthem sets a strategic course for managing workforce diversity.
Navigating the New World . . . . . . . . . . . . . . . . . . . . . . . . . . .48
Inclusion is the strategy that enables BellSouth Corporation to utilize its resources and strengths, and better target and serve its customer base.
Hand in Hand with Bottom-Line Thinking . . . . . . . . . . . . . . .50
The Green Hair Dialogues . . . . . . . . . . . . . . . . . . . . . . . . . . .16
To Cingular Wireless, a successful start hinged on building a corporate environment that, through its diversity, was adaptable, creative, and accessible to the market they hoped to attract.
Motorola President and CEO Chris Galvin celebrates the diversity of thought that has kept his organization on the cutting edge.
Back to Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
It’s About Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Facing a tough new business environment, Ford shifts its approach, but not its internal focus.
IBM’s Ted Childs on the innovative vision and skills required to lead in today’s global market.
Driven by our Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56
Blueprint for Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
Diversity has always been at the core of the Synovus values system; now it becomes a formal part of the corporate strategy.
Verizon Communications’ Development and Leadership Initiative is a success story in the making.
The Changing Landscape
Ideas from Diversity’s Thought Leaders
Investing in Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
CEO Leadership: They Walk The Talk . . . . . . . . . . . . . . . . .13
Under the leadership of President and CEO Barbara Krumsiek, Calvert is helping to make a difference in the lives of women and minorities here and abroad.
Diversity Best Practices’ Edie Fraser on the commitment that makes true leaders a rare breed.
Leadership: A Process, Not a Position . . . . . . . . . . . . . . . .28
Moments of Truth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
Having the courage to self-evaluate bridges the gap between managing and leading people, reports The Stewart Management Group.
Sustainable culture change: that’s the goal of the Middle Management Engagement initiative at JPMorgan Chase.
Create Compelling Conversation . . . . . . . . . . . . . . . . . . . . . .31
Team Spirit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
PRISM International’s method of driving diversity changes with manager-led discussions.
The Diversity Team at Abbott Laboratories on meeting the challenge of building a truly inclusive environment.
Measuring Diversity: The Six Sigma Methodology . . . . . . .38
Dynamic Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
Keki Bhote, author of The Ultimate Six Sigma, on the diversity assessment tool that measures its impact on the bottom line.
Duke Energy’s commitment to building a diverse and multidisciplined team is key to the company’s success.
Ten Red Flags: The “Blah” Business Case . . . . . . . . . . . . .44
Complete Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
Simmons Associates on motivating changes in workforce behavior by transforming your business case from “Blah” to “WOW!”
Deloitte & Touche implements an ambitious strategy to help it fully reflect the diversity of offices in 100 countries worldwide.
Diversity Leadership Competencies . . . . . . . . . . . . . . . . . . .54
The Sun Never Sets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40
Making the mission-focused, requirements-driven diversity decisions that drive performance; second in a series from The Diversity Leadership Academy of Atlanta.
International cultural relations means an international diversity agenda for the the UK’s British Council.
More Than Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Diversity is about the differences that make us who we are, says PricewaterhouseCoopers, and that make us each a valuable member of the team. www.diversityjournal.com 1-800-573-2867
An Evolving Curriculum
Profiles in Diversity Journal
Setting the Curve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 Celebrating the 40th anniversary of its integration, Georgia Tech is recognized as first in the nation for African-American engineers. • September/October 2002
page 5
Raising the Bar
Shell Oil Company
CEO advocates are often described as “the most powerful weapon in the diversity arsenal.” Under the helm of Chairman, President and CEO Steve Miller, Shell Oil Company became a diversity super-power.
from the Top T DRiving DiveRSity
he adage “actions speak louder than words” certainly applied to Shell Oil Chairman Steve Miller at the Shell U.S. 2001 Women’s Conference. He not only sponsored the event, he also delivered the keynote and attended a number of the sessions. Attracting approximately 225 Shell staff, including members of the executive leadership team, the Conference offered an opportunity to network and learn about workplace challenges facing Shell women.
Rick Schroder Manager, Sustainable Development For information, contact: John Sequeira Diversity Manager Shell People Services—Americas One Shell Plaza P.O. Box 2463 Houston, TX 77252-2463 Tel: 713.241.7914 FAX: 713.241.4489
jfsequeira@shell.com page 10
John Sequeira Diversity Manager
“Steve put his weight and that of his executive leadership team behind the project,” says Senior Diversity Consultant Donna Zimmer, a member of the conference planning team. “The conference was a ‘first’ for Shell, and it would not have happened without Steve being 100 percent supportive.”
Selection criteria included “championing diversity leadership” and “plotting the growth of diversity as a business imperative.”
“Steve Miller is an exemplary CEO, because he walks the talk,” says Edie Fraser, president of Diversity Best Practices. “Many CEOs issue statements supporting diversity, are involved with their diversity councils and celebrate their employee networks. What Steve Miller has done is truly support diversity. As a result, Shell is a model company for diversity leadership.”
Miller’s decision to get directly involved with diversity work sprang from his personal experiences as a minority in majority cultures. A Protestant from North Dakota, he attended a predominantly Jewish high school in Chicago. During his career at Shell, he spent considerable time overseas managing global operations from London. This experience gave him an appreciation for inclusivity and different cultures. When Miller returned to the United States, he was intent on lending his support to diversity efforts in Shell Oil. He saw diversity not only as the right thing to do, but also as good for business.
“Diversity makes good business sense,” he explains. “Shell wants to be the preferred provider of energy Miller’s support for the women’s conference is one prod ucts to America—and a preferred employer as example of his personal leadership in advancing well. Our success will depend on our ability to diversity and inclusiveness. In the past three years, understand and leverage differences, engage with he has taken a holistic approach in championing our customers and attract and retain the talent diversity both inside and outside Shell and helping we’ll need in the future.” embed diversity into Shell’s business plan and social responsibility efforts. During his tenure, Miller made several important moves to accelerate Shell’s progress; he featured His individual efforts have attracted considerable diversity prominently in his Blueprint for Success— attention. Miller was one of seven CEOs selected the framework for Shell’s business activ ities in the to receive the 2002 Diversity CEO Leadership United States. Award, presented by Diversity Best Practices. Profiles in Diversity Journal
• September/October 2002
1-800-573-2867 www.diversityjournal.com
“If diversity is to take root, it needs high visibility throughout the organization,” Miller says. “The CEO and leadership must drive the effort, and diversity must be a key element of the business plan.” Developed by Miller and his Executive Leadership Team, the Blueprint includes four elements in which diversity plays a major role: • be a model of diversity for corporate America • help people reach their full potential • serve as a leading corporate citizen • build a strong national profile and identity. “As we state in our Blueprint, we aspire to be a model of diversity for corporate America, and not only within the energy industry,” he says. “We want to be considered an ‘employer of choice’ and build a robust talent pipeline. We want to share our best practices with other organizations, and be a strong partner to the communities in which we live and work.” “Steve’s leadership in terms of diversity being a fundamental for business success cascaded throughout Shell,” says Leadership Team member and Shell Oil Senior Vice President and General Counsel Cathy Lamboley. “Certainly, in my organization (Shell Legal Services), the Blueprint was the building block from which we developed our diversity program.” As a result, Shell’s legal program attracted national attention; in 2001, the Minority Corporate Counsel Association named Shell Legal Services an “employer of choice.” Besides making diversity part of the Shell business plan, Miller actively supported the Diversity Scorecard, used to measure Shell’s progress toward achieving diversity goals, and the Diversity Progress Report, published annually to capture Shell’s accomplishments for the year. In addition, Miller participated in numerous internal activities, including Shell’s Annual Diversity Conference where he delivered welcoming remarks in the past two years to some 300 Shell diversity practitioners and business leaders, nationally known consultants and representatives from Shell and other companies who came together to share information a nd best practices. In another internal Shell effort, Miller brought his relationship with Shell’s eight employee networks to a new level. Recognizing the networks 1-800-573-2867 www.diversityjournal.com
Steve Miller joins representatives of Shell’s eight employee networks and Diversity Practice. The employee networks represent a major accomplishment for Shell’s diversity initiative, which has the goal of being a model of diversity for corporate America. Front row, from left to right: Pinakin Jaradi, SAPENG; Steve Miller; Aleida Ghassemi, Co-chair of SHEN; and Jani Lopez, SEA Shell. Back row, from left to right: Rhonda Louque, LA WAVE; Scot Hedrick, SEA Shell; Evette Torres, Shell Diversity Practice; Neddy Perez, SHEN; Benjamin Crain, SBNG; and Tandy Ringoringo, WAVE. as excellent business resources, he met periodically with their leadership to learn about their concerns and to share information about business plans. He also attended the networks’ annual meetings. “Employee networks are part of our diversity infrastructure,” Miller says. “They provide support, enhance employee development, strengthen communication channels throughout the organization and serve as a valuable grassroots resource for the business. I have called on them for advice and consensus on a number of internal and external issues.” “One of the lessons I’ve learned from Steve was the value of consensus building, especially on tough issues,” says Rick Schroder, Manager, Sustainable Development, Shell Oil Company. “Various aspects of diversity can be tough, and Steve utilized appropriate stakeh olders when needed to help build consensus. It can be reassuring to have a broad consensus on an issue, which creates a strong foundation for the decision-making process.” Miller also committed to developing the next generation of Shell leaders in the United States. He encouraged his executive leadership team to expand talent-pipeline development efforts to
Profiles in Diversity Journal
• September/October 2002
include new college hires and experienced hires, and to examine the pipeline from a diversity standpoint. He led discussions about the importance of continually analyzing the pipeline to ensure women and people of color were making meaningful progress. His intent was to raise awareness of subtle hindrances that can prevent individuals from reaching their full potential. For example, were women and people of color remaining in their jobs longer than white males before being promoted?
2002 Leadership Summit & Diversity Gala
Driving Diversity from the Top Raising The Bar
Miller launched an effort to establish closer ties with the Hispanic community, the fastest growing segment of the U.S. population. Recognizing Hispanics would be a major source of Shell customers, employees, suppliers and neighbors, he chartered a team to determine how to forge a stronger relationship with the Hispanic co mmunity on a national level—a sustained relationship that went beyond providing products and services. Shell leaders established one-onone relationships with leaders of national Hispanic organizations in order to learn how they were advancing the progress of Hispanics. They looked for areas of common interest, such as economic and educational empowerment, and how Shell could expand its present suppor t. This effort culminated in May with the formation of the Shell Hispanic Advisory Council of page 11
2002 Leadership Summit & Diversity Gala
Raising The Bar Driving Diversity from the Top
Shell and Hispanic leaders. The Council met in May 2002 for a two-day gathering focused on building a foundation for ongoing dialogue and identifying future opportunities to collaborate. “Steve Miller was one of the first CEOs to recognize the increasing importance of the Hispanic community and to initiate this type of outreach program,” says Shell Oil board member Vilma Martinez, partner in the Los Angele s law firm of Munger, Tolles & Olson. “I’m not aware of any other CEO making this kind of effort with the Hispanic community.”
Instead of concentrating on how to market more effectively to Hispanics, Miller marshaled internal Shell resources to determine how to make Shell more attractive to this particular community. For example, he sought to make Shell an employer of choice among Hispanics. He tried to enh ance the financial prosperity of the Hispanic community through a supplier diversity program and community banking initiative. And he pushed to empower Hispanics educationally by providing access to computer equipment and instruction. Miller also has been active with other minority groups in the community, speaking before a wide range of external audiences. He was the keynote speaker at the 2002 Houston Human Rights Campaign gala and the Houston Asian Chamber of Commerce gala. These engagements provided opportunities for him to talk about Shell’s commitment to diversity and inclusiveness. He is well known in Houston’s close-knit GLBT community for his support of GLBT issues. He endorsed efforts by the mayor of Houston to include sexual orientation in the city’s non-discrimination policy. Working at the national level, he provided testimony to the U.S. Senate endorsing the Employment Non-Discrimination Act. In his role as chairman of the Greater Houston Partnership (GHP), he spearheaded efforts to establish the Minority Partnerships Council, which is developing a plan to provide greater access for minority and women business members to large company purchasing and contracting opportunities. page 12
“Investmen t in women and minority businesses has a beneficial effect on the entire region,” he told attendees at this year’s GHP annual meeting. “When we support minority- and women-owned businesses, they grow and become stronger, contributing to the economic health of their communities.” Providing leadership in the CEO community, he chaired quarterly meetings for 15 CEOs in the Houston area to discuss the progress of diversity in their organizations. Programs included presentations by minority suppliers about the difficulties they faced doing business with large Houston companies. Considered a thought leader among CEOs, Miller participated in the Executive Leadership Council’s 2001 CEO Summit. He served on a panel of more than 20 Fortune 500 CEOs discussing lessons learned, best practices and how to further d iversity. Shell was one of three companies recognized for making significant progress in diversity by the council, composed of AfricanAmerican CEOs and direct reports from Fortune 500 company CEOs. But perhaps the greatest impact of effective diversity leadership at the CEO level is best captured in the reactions of two attendees at a learning session held last December for diversity leaders fro m some 20 companies. Sponsored by Shell, this meeting focused on how to create a GLBTfriendly company. Miller gave the opening remarks, answered questions and stayed for part of the morning program. “One of the things that impressed me about Steve was his commitment,” says Sharmaine Miller, director of Diversity and Work Life, Allstate Insurance Company. “Although he’d been out of the office fighting a n illness, this meeting was important enough to him that he came. He not only gave his presentation, but he also took
Profiles in Diversity Journal
• September/October 2002
A Personal Investment: Miller addresses participants at the initial meeting of the Hispanic Advisory Council, a national gathering of Hispanic leaders and Shell executives, sponsored by Shell. The council provides a forum for ongoing dialogue between Shell and the Hispanic community. Below, visiting with representatives from three of Shell’s eight employee network groups. From left to right: Jani Lopez, Support Equality Awareness at Shell Network (SEA Shell); Steve Miller; Rhonda Louque, Louisiana Women Adding Value Everywhere Network (LA WAVE); and Pinakin Jaradi, Shell Asian-Pacific Employee Network Group (SAPENG).
questions and stayed for part of the program. All of that showed up as real commitment.” AARP’s Director of Diversity Lisa Gardner says, “It made me think about how important it is that CEOs model commitment to diversity not only through words, but also through actions. Steve Miller was the re not just to give his speech, but to participate in a dialogue that required a good chunk of his time. His behavior modeled a deeper level of involvement.” Responding to both the information he provided and to his actions, she says, “I thought he was living the example of how a CEO should support and lead an organization’s diversity effort.” Steve Miller retired September 1 from Shell Oil, but emphasizes that he will advocate for diversity and inclusiveness in his ongoing activities. “I will continue to serve as board chairman for the Greater Houston Partnership,” says Miller. “I’ll also serve as chair of the United Way of the Texas Gulf Coast and vice chair for the Points of Light Foundation, the nation’s leading organization for volunteering. Diversity is integral to everything that I do. I will take a dvantage of every opportunity to encourage organizations to raise awareness of the strength of our diversity, PDJ and the value of being inclusive.” 1-800-573-2867 www.diversityjournal.com
Diversity Best Practices
theywalkthetalk I
CEO Leadership
n December 2001, Diversity Best Practices held one of our sessions at Shell Oil in Houston. I recall how all in attendance were humbled by the deep and sincere commitment of our host, Steve Miller, as he shared with us his commitment to diversity. An active participant throughout the session, Miller shared that he commits approximately 10 percent of his time to diversity activities, as he believes the return on investment is significant. As he stated so well, “Having diversity efforts well grounded in a business case ensures sustainability and broadens support among various constituency groups who may not otherwise see the relevance. A meaningful business case can turn skeptics into change agents.” This is why CEO advocates are truly the most powerful weapon in our diversity arsenal. In each company cited as the B EST in diversity leadership, there are two components that are the driving force: a CEO champion and a strong diversity officer. Never before in a nation’s history have more CEOs been champions of diversity programs. These CEOs are increasingly responsible for hiring senior diversity officers, and are often the drivers of policy directives and proponents of network groups and succession planning.
Edie Fraser President Diversity Best Practices 1990 M Street, NW Suite 700 Washington, DC 20036 Tel: 202.463.3766 FAX: 202.466.6572
edie@bwni.com 1-800-573-2867 www.diversityjournal.com
The CE O diversity champions are believers in diversity in principle as both the right way and the smart way to do business. It is the CEO who generally signs off on and embraces the diversity mission and vision statements and is an advocate for diversity throughout the company. CEOs are central to diversity understanding and endorsement. As customers increasingly expect a company to reflect diversity in its top people, workforce, product marketing, and customer base, these CEO leaders “get it” and “walk the talk.” We salute the growing number of leaders of diversity, the champions of diversity. That’s why the Annual Leadership Summit and Diversity Gala was developed; that’s why it will be even bigger in 2002. We are faced daily with building diversity leadership and “expanding that circle” because it Profiles in Diversity Journal
makes business sense from every perspective. Our Gala salutes the leadership and change that brings people into that circle. “Changing times call for a dynamic, diverse, multi-disciplined workforce that embraces change, new ideas and collaborative problem-solving. That is the culture we continually instill at Duke Energy,” shares Rick Priory, Chairman, President & CEO, Duke Energy. He continues, “In my mind, diversity is not a lofty ideal or philanthropic undertaking. It’s about business results, economic investment, market outreach and corporate survival.”
Every CEO that is a diversity champion focuses on diversity as a business strategy. Franklin Raines, CEO of Fannie Mae (one of the most recognized companies for diversity and the winner of the Catalyst Award in 2002) states it well. “Diversity is a key business strategy. If your model is for diversity, your outlook on the market and the opportunity for growth can be a lot different. Your company can see new markets clearly.”
2002 Leadership Summit & Diversity Gala
The Changing Landscape
The work is never done. As Dwayne Ackerman, CEO of BellSouth, told us, Fortune magazine determined a clear link between diversity and performance in its annual survey of the best companies for minorities. “As a group the businesses that pursue diversity not only did well but also outperformed the S&P 500 over the previous three to five years.” And yet, Ackerman shares, no CEO champion can rest on their laurels: “Are we satisfied where we are? No, but, like America, we are a work-in-progress that, with leadership and collective will, strives for improvement.” PricewaterhouseCoopers recognized early on that support from the CEO and managing partner would drive diversity; that’s precisely why Sam DiPiazza, worldwide CEO and now U.S. Chairman, and Senior Partner Dennis Nally have worked so closely with Toni Riccardi, Chief Diversity Officer, to build a major diversity initiative. Nally has become a major advocate: “The partners and staff of PricewaterhouseCoopers recognize that our success rests upon a diverse
• September/October 2002
page 13
2002 Leadership Summit & Diversity Gala
They Walk The Talk The Changing Landscape
talent pool that reflects the face of America.” Other firms such as Deloi tte & Touche, Ernst & Young and KPMG have as well, and I’d like to acknowledge in particular Jim Copeland of Deloitte & Touche and his work with Redia Anderson and Sue Molina. Miles White, Chairman and CEO, Abbott Laboratories (March/April 2002 Profiles in Diversity Journal), admits to being the chief diversity champion. He supports Sharon Larkin, Abbott’s vice president in charge of workforce diversity and work/life integration. He is one of the CEOs clearly “walking the talk” as he chairs Abbott’s Executive Inclusion Council, pushing diversity and worklife leadership.
When Thurmond Woodard became Vice President of Diversity at Dell, he did so at the request of CEO Michael Dell and has the strong support of the president and senior officers. As Michael Dell says, Dell around the world recognizes diversit y as critical: “At Dell, recruiting and retaining highly skilled men and women with diverse backgrounds is a business performance strategy. It is also the right thing to do. Diversity enhances our competitiveness in today’s global marketplace. It fosters innovation, creativity and solutions. In a nutshell, it helps the bottom line.” How can we forget that both Coca-Cola and Pepsi have been diversity leaders for many years, not only within the workforce but also in recognizing the vitality of the growing multicultural marketplace? Coca-Cola’s leadership team is second to none; CEO Doug Daft is championing diversity along with a strong team. He advanced Charlene Crusoe-Ingram to VP, Diversity; named Juan Johnson to head up the strong leadership academy; and pushed Supplier Diversity to new heights.
Two of the financial community’s strongest CEO advocates for diversity are Bill Harrison of JPMorgan Chase and Ken Lewis of Bank of America. At JPMorgan Chase, Harrison and his team—Senior Vice President/Leadership and Organizational Development Joy Bunson and Senior Vice President/Global Diversity Steve Young—are taking their organization to a new level. As Harrison shares, “Diversity is an integral component of strengthening our ability to compete in a highly global and competitive marketplace. We are building a culture that respects the value of differences among us page 14
and encourages individuals to contribute their very best.”
Verizon as they are driven by Seidenberg as diversity champion.
Ken Lewis, CEO of Bank of America, is passionate about what diversity means to the bank and its thousands of employees. Lewis works with Bob Mandala, Vice President of Diversity. “One of the defining values of our company is that we are an inclusive meritocracy ... it simply means creating an environment where barriers to success disappear, an environment that allows all associates to contribute—not in spite of their differences, but because of them—an environment where all associates feel included, appreciated, and valued.”
The telecommunications industry has another vital advocate. Though a relatively new company, based on the joint interests of BellSouth and SBC, Cingular Wireless leads the way through the efforts of Vice President of Diversity Gloria Johnson and led by the advocate Stephen Carter, CEO. Carter says with emphasis, “Diversity at Cingular is a vital imperative. I would find it personally gratifying if business could someday take credit for having led the world to accept humanity’s vast diversity. Soon, we will be making products and selling services tailored to a single individual and we will do it millions of times a year. Business will embrace, celebrate and lead diversity and, perhaps then, the world will follow suit.”
“The good news is that there are so many CEO diversity advocates in corporate America today, and that the number is growing.” Office Depot has taken diversity and women’s issues and made a commitment across-theboard, led and championed by CEO Bruce Nelson. In the first quarter of 2002, Office Depot named a new Vice President of Diversity, Sam Ma this. In addition, Nelson named a new Executive Vice President of Marketing, Jocelyn Carter-Miller. The team again sees diversity as key to its strategy of “being the best place to work, shop and invest”—diversity with a bottom-line impact. It is made evident in their hiring and training practices, supplier diversity, their Women’s Council and annual Leadership Summit and increased focus on multicultural marketing. Nelson says, “Our commitment to diversity throughout Office Depot is critical to our long-term success. We value diversity in everything we do, whether it be in our workforce, our vendor base or customer outreach. At Office Depot, we are committed to creating an inclusive environment where all people are valued and respected. Diversity is an important dimension of respect for the individual—one of our core values—and a key to our success in a global marketplace.”
Another top leader is Eastman Kodak and the CEO, Daniel Carp, who back in 2001, named a Chief Diversity Officer, May Snowden. Carp supports diversity leadership in each area, from network groups and mentoring to advocating increased contracts through supplier diversity. He states, “It is the policy of Eastman Kodak Company to utilize small businesses to achieve diversity in our supplier and dealer base in order to expand oppor tunities for all segments of society to experience economic progress and competitive advantage.” Kodak puts its overall diversity results in writing as one of the few major Fortune 500 companies issuing an annual report on diversity. The 2001 report states “to raise the bar even higher, a Global Diversity Leadership Team was formed, composed of 34 senior managers from around the world. The team is respo nsible for implementing our comprehensive integrated diversity strategy. An external Diversity Advisory Panel was also formed in 2001. The panel will advise the company on best principles and practices, in line with Kodak’s intent to become a global leader in integrating diversity and inclusion in all aspects of its business.”
Ivan Seidenberg, CEO of Verizon, is a strong advocate on all counts including goals for workforce, multicultural marketing, philanthropy and supplier diversity. He shares internally and externally that “Diversity is not a game of quotas or headcounts. It’s a way of seeing—a broadening of the corporate vision to encompass a wider and more varied employee and customer base.” All of the efforts are strong at
The good news is that there are so many CEO diversity advocates in corporate America today, and that the number is growing. It takes strong leadership at the top and a good working relationship between the CEO and Diversity Officer to keep diversity a top priority. We need to salute these leaders and make certain that we understand the deep and valued commitment that makes them true champions of diversity. PDJ
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Raising The Bar
2002 Leadership Summit & Diversity Gala
BellSouth Corporation "Treating people fairly goes beyond meeting a minimum legal standard. It means that we recognize what is good for people is good for business." Duane Ackerman, Chairman and CEO Leadership Award Winner, 2002 Leadership Summit & Diversity Gala
strategic differentiator THE
Inclusion is the strategy that enables BellSouth Corporation to utilize its resources and strengths, and better target and serve its customer base.
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ompanies are continually searching for ways to develop strong leadership, measure return on investment, and increase profitability. They realize that these are the activities that will enable them to remain stable, productive, and poised for growth w hether the economy is booming or in decline. In BellSouth’s experience, a business practice of inclusion is one of the best business strategies a company can adopt to cultivate leaders, create a vibrant workplace, and ensure a thriving business. Since its founding in 1984, BellSouth has been building a business based on inclusion, integral to every department and aspect of our business.
Since I was app ointed to the newly created position of chief diversity officer in 2000, BellSouth has further expanded its efforts in the area of inclusion. Last year, the company implemented a training program that teaches senior-level managers the opportunity to learn the practical meaning of diversity and how to best incorporate diversity in the workplace. More than 90 percent of our senior managers completed the t raining last year.
Ronald E. Frieson Chief Diversity Officer BellSouth Corporation 1155 Peachtree St. NE Atlanta, GA 30309-3610
BellSouth soon will establish its fourth affinity or networking group. This group will serve as a forum for BellSouth’s female employees to grow professionally and personally. This group will join BellSouth Network of African American Telecommunications Professionals or BNAT, BellSouth Alianza—BellSouth Hispanic employees, and BellSouth NewANGLE—New Associates Networking for Gay and Lesb ian Equality. Membership in the three groups now is 1,800 employees strong.
But diversity is not just a workplace issue. It is a proven business strategy that has worked for some of the world’s most forward-thinking companies like Fannie Mae and Advantica. Fortune recently named both companies, along with BellSouth, to its prestigious “Best Places to Work for Minorities” listing.
BellSouth realizes that inclusion is a strategic differentiator. Strong inclusive business and employee practices provide BellSouth with a competitive advantage in today’s global marketplace. For example, two of the fastest growing Hispanic markets—Orlando and Atlanta—are in BellSouth’s nine-state region. To that end, BellSouth’s Hispanic employee affinity group, Alianza, has provided the company with its unique perspective on BellSouth’s business initiatives and how the company can best reach out to its growing Hispanic market segment. All companies have to be mindful of the demographics of their customer and potential employee base. Inclusion is a sound strategy that enables businesses to utilize their resources and strengt hs, and better target and serve their customer base. Or as BellSouth Chairman and CEO, Duane Ackerman, said in a speech at the White House, “Treating people fairly goes beyond meeting a minimum legal standard. It means that we recognize what is good for people is good for business.” Since establishing a Diversity Council (the governance body for BellSouth’s diversity efforts) in 1997, BellSouth has recorded some impressive results. More than 50 percent of new officers named at BellSouth have been minorities or women and more than 62 percent of all hires
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Motorola, Inc.
uring my travels to visit Motorola operations and customers around the world, I am frequently reminded of how fortunate I am to lead an organization with such a uniquely diverse workforce. Hardly a day goes by that I do not learn something new from the extraordinary people who surround me.
I also am reminded of how committed Motorola is to the ideal and practice of diversity. We would not be the company we are today without the different perspectives, ideas and solutions our diverse workforce brings to the table. These are the individuals who contribute to the development of new products and services, challenge accepted views and generate a dynamic synergy that helps us break into new markets and, in some cases, better understand the markets we are already in. None of this would be possible, of course, if Motorola had not, many years ago, begun to lay
Christopher B. Galvin Chairman & CEO Motorola, Inc. 1303 E. Algonquin Rd. Schaumburg, IL 60196
the foundation for fostering an environment that was centered not on statistical diversity reports but on recognizing the benefits of employing individuals with divergent perspectives and varying backgrounds and cultures. Today, we are committed to more than cultivating a climate in which all employees are included and valued. The real value lies in elevating diversity management to a seat at the stra tegic table. Along the way, we have learned that managing diversity requires discipline and a commitment to business ideals. At the same time, it has improved our ability to manage change as we continuously adapt to new situations.
Diversity Management at Motorola I celebrate our diversity of thought, which allows us to differentiate Motorola as an employer, partner, corporate citizen and business. A few years ago at our annual officers meeting, there was a lot of buzz about "the guy with the green hair." We were talking about a person—any person—with a minority opinion, one who questioned what appeared to be our old-fashioned, out-of-step or conservative thinking. One who understood the trends and movements of current social paradigms. I stood on stage and told our senior leadership: "If I wanted to l earn to snowboard instead of ski, I would probably take lessons from a greenhaired instructor, because that’s who understands such a contemporary sport. We must likewise listen to the green-haired people inside Motorola to determine our future."
Recruitment The workforce continues to grow in the number of women, multi-ethnics and people with disabilities. As a result, it is not unusual for today's recruits to ask about an organization's diversity initiatives and factor that into their employment decisions. They know that the way a company manages diversity is often a leading indicator of the kind of career opportunities and situations they can expect. It is important for us to present a strong and consistent message to potential employees as soon as they walk in the door. Rec ruits must see our diversity reflected in the faces, voices and attitudes of the people they meet during their visits to our offices. They must walk away feeling that Motorola will be a place where they will be included and valued. Our culture has earned us fame for valuing work/life balance and offering family-friendly benefits. Many recruits know that about us before they set foot in a facility. We are leveraging that strength to encompass an emphasis on community involvement, such as volunteerism. We believe this enhanced support for the nonwork life will attract an even more diverse set of candidates, as well as drive increased success in the communities where we do business.
Retention Retaining talented employees who reflect the
the greenhair dialogues
For information, contact: Joyce A. Stearn Vice President and Corporate Director Global Diversity and Compliance Tel: 847.632.3551
Motorola President and CEO Chris Galvin celebrates the diversity of thought that has kept his organization on the cutting edge.
gper15@motorola.com page 16
Today, Motorola's diversity program focuses on four areas: recruitment, retention, career development and market strategy.
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diverse cultures, tastes and preferences of global labor markets and our global customers is becoming more critical as the value of diversity grows in the business community—and the competition for those employees increases. We are committed to demonstrating to our employees every day that what they saw, heard and read during initial interviews isn't just window dressing, but an everyday part of working at Motorola. Our performance-management system encourages specific behaviors that are fundamental to good diversity management. We require quarterly dialogues between managers and each employee that include: "acknowledgment of your unique view of success and personal circumstances impacting your success." This helps move diversity issues out of the conference rooms and into the factories and cubicl es where our managers confront them head-on. Managers and HR representatives receive diversity coaching and training and have access to courses in behavioral coaching, conflict management, harassment and negotiation skills.
Career Development To retain the best employees, you must convince them that you are attuned to their unique perspectives and needs and willing to invest in their ongoing development. At Motorola we have gone beyond offering everyone a static package of courses and learning experiences. One of our most successful processes, called Leadership Supply, actively seeks out talented individuals with high leadership potential, whether they live
in the U.S., Malaysia, France, Mexico or anywhere else in the world. Motorola provides accelerated developmental opportunities to these potential leaders, and they are fast-tracked to positions where they can best benefit the company and themselves. In addition, to be promoted to any senior management position in Motorola, you must have demonstrated your commitment to our leadership behaviors, known here as the 4Es plus Always 1E - envision, energize, execute, have edge and always have ethics. The last one— ethics—is critical to diversity management. The program defines ethics in part as "conducting business ethically always and everywhere, treating all people and all cultures with respect and dignity and keeping one’s personal ambitions and emotional reactions from interfering." High-potential emp loyees complete a talent profile that includes documenting how they have demonstrated ethics in their professional lives. This profile is then used to help identify candidates for open leadership positions.
Market Strategy Motorola is committed to finding and developing the best talent around the world to lead our company into new and emerging markets. Diversity management at Motorola closely aligns with the company's larger business goals and strategies. Diversity is a required element in all operating plans. Our goal is to apply an integrated approach in which many individuals can contribute in ways that reflect their unique perspectives and abilities and fit into the larger culture of the corporation.
Diversity strategies that help reach business goals can, and often do, boost returns. For example, in the United States, we formed business councils to improve our product development, to serve market segments with strong diversity components, and to allow our employees to build relationships with diverse suppliers, consumers and communities. Around the globe, we have established diversity teams in our other operating regions of Asia/Pacific, Latin America and Europe/Middle East/Africa. Each team is bu ilding and implementing a diversity strategy based on the unique business needs of the respective region or country.
Work to Do I am pleased to report that Motorola is making progress toward our goal of gender and multiethnic diversity and leveraging the strength that diverse employees bring to the company. I believe, however, that we are on the right path and that we have the values, processes and commitment to continue making progress in this important area. We have built a business case demonstrating the value of diversity to our bottom line, and I use this case to demand an environment of inclusion for diverse thought. Managing diversity requires hard work and dedication from everyone at every level of the organization. At the same time, it is the foundation of an exciting and dynamic workplace where everyone can meet new people, hear different perspectives and learn from others. PDJ
2002 Leadership Summit & Diversity Gala
The Green Hair Dialogues Raising The Bar
Motorola Business Councils Motorola’s five business councils, funded by the company and sponsored by senior leaders, are the foundation that supports the company-wide diversity strategy. Launched in 2000, they are based on the needs identified by focus groups, benchmarking and best practices. Some recent accomplishments: The Motorola Global Diversity Team • Helped establish the Arizona Business Leadership Network. This network pulls businesses and community organizations together through education and outreach programs to address issues about employing people with disabilities. • Developed a program with the State of Arizona for blind and visually impaired adults.
• Partnered with Motorola University, our world-class customer and employee education division, to develop a leadership summit and a follow-up workshop on principle-oriented career development. Black Business Council • Sponsored monthly black cinema café events in Chicago and Atlanta that featured independent black films, as well as Motorola product displays and informational materials.
Asian Business Council Gay and Lesbian Business Council • Partnered with our University Relations group • Received an "Outie Award" on Motorola’s on a career booth for the Asian Business behalf from the Out and Equal Conference Conference at the University of Chicago. 1-800-573-2867 www.diversityjournal.com
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for significant achievement on gay and lesbian workplace issues. Latino Business Council • Sponsored festivals with product display booths, educational literature, guest speakers and raffles in Illinois, Arizona and Florida. Women's Business Council • Partnered with Motorola University on a collaboration seminar that featured female executives from customer companies AOL-Time Warner and General Electric. page 17
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Raising The Bar
IBM Corporation
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here’s a great deal of debate about the qualities needed for a successful diversity executive. “What attributes does a diversity executive need to be effective in corporations today?” is a question asked by experts and senior line executives. Others ask, “How can a diversity executive work in the corporate boardroom, but stay in touch with the various constituency groups and their needs, and still remain credible and effective?” These are good questions, and there are many good answers that address them. During my 35-year IBM career, I’ve thought about these questions often, and about the answers even more. Over and over again, I come to the same conclusion: it’s about passion and leadership.
just watching what goes on, in my opinion you’re wasting your life.” Robinson lived as he believed. From 1942-45, while in the Army and before his baseball career, Robinson challenged segregation at Camp (Fort) Hood. As he went through military channels stating his cause to superior officers, Robinson’s protest led to desegregation at the camp. He also once faced and defeated court martial proceedings, a fter refusing to move to the back of an Army bus when the driver gave the order. Robinson’s protest, a legitimate one, since Army regulations prohibited discrimination on government vehicles, eventually led to all charges being dismissed.
Robinson lays out a valuable lesson for diversity executives today. Our work is not for spectators, but for those who thrive on change. Not for change alone, but change that is a catalyst for improvement—creating fairness when it doesn’t exist, moving organizations Your success comes from separate but equal points of view to down to how you inclusiveness, and migrating people from conflict answer these ques- to collaboration. tions: Do you Competing in the global market is tricky enough. exhibit leadership Diversity leaders can also learn from the leadership Leading it demands innovative vision and solid skills in both in your of Tom Watson, Jr. When it involved IBM, he also corporate diversity. personal approach sought to live by his values as he led the business. to diversity and the In his book, “A Business and Its Beliefs,” Watson Ted Childs policies you embrace for your company, and do you said, “If an organization is to meet the challenges care about the outcome of the debates you engage of a changing world, it must be prepared to change Vice President, Global Workforce Diversity in—do you hate to lose? everything about itself except its basic beliefs as it IBM Corporation moves through corporate life. The only sacred cow North Castle Drive To answer these questions, I draw my response in an organization should be its basic philosophy Armonk, NY 10504 from two people that I have learned from and of doing business.” admire greatly. The first example comes from professional sports. The second example comes And so, he identified three basic beliefs to serve as For information, contact: from business. Both are legends. I’m talking about the cornerstone of IBM’s approach to business. Jim Sinocchi Jackie Robinson of the Brooklyn Dodgers and They were: Director, Diversity Communications Tom Watson, Jr. of IBM. 1. Respect for the individual. Tel: 914.765.6638 2. Service to the customer. FAX: 914.765.5290 “Life is not a spectator sport,” said Robinson, who 3. Excellence must be a way of life. broke the baseball color barrier in 1947. “If you’re Watson lived and led by these beliefs. And he going to spend your whole life in the grandstand walked the talk. In a personal meeting with Mr. sinocchi@us.ibm.com
it’s about leadership
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Watson in 1990, I asked him why he wrote what I believe was America’s first equal opportunity policy letter. The letter, written in 1953, communicated his commitment to fairness and inclusion. Mr. Watson replied that during negotiations with the governors of two southern states regarding the building of IBM plants, he told them that there would be no “separate but equal” racial policies at IBM. To ens ure the governors took him seriously, he wrote a letter to his management team and made the letter public. As a result, he said, both governors responded by choosing payroll and tax dollars over bad social policy—they chose progress. In our meeting, Mr. Watson also said, “My father taught me that if we take care of our people, they will take care of us.” He applied that concept to all employees. I believe that every diversity leader must be passionate about the people working for their company and their customers. Leaders must also help all people involved with their business understand that workforce diversity can be the bridge between the workplace and the marketplace. Passion is contagious, and when combined with leadership, the equation is very effective. But the most important quality for a d iversity leader is the ability to motivate others to be part of the leadership, and see it as part of their personal day-to-day performance. A leader must be able to draw others into the debate and be the catalyst who can convince others that helping to change the content and character of the workplace makes the team stronger and a better performer in the marketplace.
people of color as citizens, business owners and customers puts this issue on the social, business and political agendas of many countries.
Success must also be measured as it pertains to Second, the gay and lesbian workplace issue a company’s composition and its program conachieved legitimacy as a discussion topic in the tent. A company’s management team must ask last decade. The driving force was the debate itself: “Do we look like our customers, at all levaround whether or not to offer els of our business? Do our programs reflect an domestic partner benefits. understanding Although approximately 145 assion is contagious, of the demand Fortune 500 companies offer and when combined with for talent in a domestic partner benefits competitive today, many other companies leadership, the equation worldwide don’t. And while the is very effective.” marketplace? Is domestic partner benefits Ted Childs our business issue is still a legitimate topic Vice President, Global Workforce Diversity culture one of discussion, we need to and winner of the Diversity Lifetime Achievement Award, that fosters move forward within the Gay 2002 Leadership Summit & Diversity Gala inclusiveness Lesbian Bisexual Transgender and tolerance in each country where we do [GLBT] discussions to address issues of leaderbusiness?” And most important, are we using ship. Do we have equivalent programs to workforce diversity issues to improve marketattract, develop and retain GLBT talent as we place performance and grow shareholder value? have done for women and people of color?
P
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Are we being evenhanded? Are we ju st saying, well, gay and lesbian people work here, so we need to solve this benefits thing? Or, do we see them as a part of our core business environment—employees, leaders, and customers? We must ask the same inclusion questions about our disabled community. Is our approach to “disability” anchored in sympathy, or based on respect for the individual and a high regard for “ability?”
So, why is leadership important? Th e answer is simple: our work is not done. First, we have not solved the problems of gender and race. Women represent more than 50 percent of the world’s population, but they’re not 50 percent of our workforce and certainly have not achieved parity on our management and executive teams. They are, however, increasingly becoming members of our executive teams and owners of their own businesses. We must v iew them in a more important and inclusive context —as workforce talent and customers.
Third, a key emerging issue is the concept of being global. Do you envision your company as a global business? Do you see a business that is limited to conducting its day-to-day operations in your particular country, or do you have a perspective about your company that crosses borders? What are your expectations about your business’ conduct in other countries? Do you have a commitment to ensure fairness in the treatme nt of women, people with disabilities, gays and lesbians, and ethnic minorities— no matter where you do business? IBM has people in more than 70 countries, 68 of which have some form of workforce diversity related legislation. Are you taking steps to understand the workforce diversity legislation in each country where you do business?
The issue of race has been a pivotal item in our nation since its founding. Today, driven by immigration patterns, the growing presence of
Workforce diversity is a global topic—in the workplace and market place—and successful businesses will have a borderless view and an
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unyielding commitment to ensuring that workforce diversity is part of their day-to-day business conduct.
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To be successful, we must continue to look toward the future, not the past. And, I believe diversity leaders play a key role in that process. If we are to address the complex issues in the 21st century, such as the continuing core issues of race and gender, the growing issues of child and eldercare, the emerging issues of multiculturalism, tolerance of religious practices and the full inclusion of people with disabilities in the workplace, then diversity professionals must lead. They must lead because businesses cannot get there by themselves.
2002 2002 Leadership Leadership Summit Summit & & Diversity Diversity Gala Gala
It’s About Leadership Raising The Bar
I also know the world is smaller today than it was when I was a boy growing up in Springfield, Massachusett s. But one thought has guided me during my lifetime: My mother continues to tell me to always set high goals. She says, “Never reach for the mountaintop. If you fall, you may fall to the bottom of the mountain. Always reach for the stars; if you miss you may land on the mountaintop.” We still have several mountaintops worth pursuing. If reaching for the stars will help our companies have the most dive rse, talented workforce we can assemble in our respective marketplaces— then it is a goal our shareholders, customers and employees deserve we pursue. Sources: Stepping up to the Plate, by Jack E. White, Time, 1997. “He did it for greater good,” Houston Chronicle, by John P. Lopez. A Business & Its Beliefs, by PDJ Thomas J. Watson Jr., 1963.
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Verizon Communications
blueprintforsuccess VERIZON’S
DIVERSITY STRATEGY: A
“Diversity is not a game of quotas or headcounts. It’s a broadening of the corporate vision to encompass a wider and more varied employee and customer base. My responsibility as CEO is to establish values, set the cultural tone within the company and keep diversity in front of all employees. When diversity is part of a company’s culture, as it is at Verizon, everyone benefits, including customers, suppliers and employees. I can think of no better reason for putting diversity at the top of the list.” Ivan Seidenberg, CEO
A
t 35, Orlando Montan is one of Verizon Communications’ youngest vice presidents, overseeing customer relations nationwide for the telecommunications company. A year ago, Montan was a director supporting the company’s Competitive Local Exchange Carrier organization. Now, he is part of a team of nearly 200 that focuses daily on customer service.
Montan’s promotion came after he participated in an aggressive new Verizon initiative aimed at developing the leadershi p potential of the company’s diverse employees. The program, called the Development and Leadership Initiative (DLI), is part of the Verizon Diversity Strategy and supports Verizon’s mission to recruit, retain, develop and advance talented multicultural candidates.
Oscar C. Gomez Vice President Office of Diversity and Business Compliance For information, contact: Gwen Sparks Verizon Media Relations 1095 Avenue of the Americas Suite 3200 New York, NY 10036
gwen.sparks@verizon.com page 20
The Verizon Diversity Strategy—a compilation of diversity best practices from GTE and Bell Atlantic, the two companies that merged to form Verizon— supports the company’s goal to ensure diversity in all aspects of its daily business activities. The plan enhances opportunities for women, people of color, individuals with disabilities and veterans, and includes components like leadership development, professional mentoring, supplier diversity and development, diversity councils, recruitment, diversity training and philanthropy.
Verizon companies are the largest providers of wireline and wireless communications in the United States. With more than 240,000 employees and millions of customers around the world, Verizon considers diversity a competitive advantage and a key to success in today’s global "Verizon strives for diversity at every level market place. "Verizon’s a global company," said within the company, from the top down," said Gomez. "So it’s essential that we understand and Oscar C. Gomez, vice president, Office of Diversity meet the needs of all our customers. That means and Business Compliance. "The Development having a work force and supplier base that closely and Leadership Initiative enables us to tap into mirror our customer base." a diverse pool of talented employees who can help us better understand and meet the needs of Multicultural employees now comprise nearly 30 our customers." percent of Verizon’s work force and hold 16 percent of the company’s top management positions. Gomez knows about diversity first-hand. A Latino Bruce Gordon, president of the company’s Reta il whose immigrant parents spoke no English, Markets Group, has spent much of a distinguished Gomez spoke only his native Spanish until first 34-year career mentoring other African-American grade. "I worked my way through language employees. Keiko Harvey, who recently was barriers and many other obstacles that people of named one of 50 top Asian-American executives, diverse cultures go through," said Gomez. "I know began her 30-year career in an entry-level engithe importance of having a diversity plan that real- neering position, but now heads the Advanced ly makes a difference. And the Verizon Diversity Services Group, one of the company’s most visible Strategy does." business units.
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Nearly half of Verizon’s employees are women, and several, like Harvey, head key business units or hold corporate power positions. Some examples include Doreen Toben, recently appointed chief financial officer; Kathy Harless, president of Verizon Information Services, the world’s largest publisher of telephone directories; and Eileen Odum, president of National Operations, who oversees a work force of 50,000. In addition to focusing on the talents of its own employees, Verizon’s diversity strategy includes its vendors and communities. The company, which spent more than $1.5 billion with diverse suppliers in 2001, is a charter member of the Billion Dollar Roundtable, a select circle of corporations that annually spend more than $1 billion with women- and minority-owned suppliers. It’s a commitment to economic development that goes beyond supplier partnerships: the company recently increased the pension fund dollars managed by minority-owned investment organizations by $355 million. And, through the Verizon Diversity Managers program, the company now has 19 minority-owned investment firms managing $785 million of its pension fund. Verizon Foundation, the company’s philanthropic arm, supports prog rams that create innovative technology solutions, help bridge the digital divide, foster basic and computer literacy, help enrich communities and create a skilled work force. Because of its commitment to serving diverse communities, Verizon Foundation ranked number 4 of 1000 in the Fortune magazine survey of the best corporate giving programs for minorities in 2001. "We’ve made some great strides," said Gomez. "But we’ve got more to do." According to the 2000 U.S. Census, the multicultural community is growing at a faster rate than the general population, and Hispanics are leading the way. Their annual purchasing power is estimated to approach nearly 1-800-573-2867 www.diversityjournal.com
$1 trillion by 2010. More than 50 percent of the Hispanic population in the U.S. lives in Verizon’s service area. "Because we serve millions of Hispanic customers, we launched the Development and Leadership Initiative with Hispanic employees last year," said Gomez, whose office oversees the program. "Eventually, our DLI program will include all ethnicities." The DLI seeks to help employees understand th eir professional and personal goals, and provides high visibility access to top Verizon executives. Participants have discussions with company executives, receive assistance with career planning and benefit from ongoing contact with their mentor, a company executive assigned to work with them. DLI candidates are identified and selected by their supervisors when they consistently exceed performance exp ectations and demonstrate outstanding leadership skills. Since the program started in February 2001, the number of Hispanic vice presidents has more than doubled and the number of Hispanic executives and directors has increased significantly. Citing Verizon’s Development and Leadership Initiative as a successful strategy for improving the representation of Hispanics in the work force, the Hispanic Asso ciation on Corporate Responsibility (HACR) named it a Corporate Best Practice for 2002. Thirty-five year old Verizon vice president Orlando Montan illustrates the power of the Development and Leadership Initiative (DLI). "The DLI squarely places the responsibility on you to be the best and most knowledgeable in meeting your job responsibilities and the company goals," he said. "It also stresses the need to mentor others as you move forward." This successful program was named Corporate Best Practice for 2002 by the Hispanic Association on Corporate Responsibility. Program participant Orlando Montan agrees that the program opens the door to job opportunities, but it’s up to the individual to walk through. "The DLI squarely places the responsibility on you to be the best and most knowledgeable in meeting your job responsibilities and the company goals," he said. "It also stresse s the need to mentor others as you move forward."
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Bruce Gordon, president of Verizon's Retail Markets Group, will be receiving the Diversity Vision Award at the Women and Diversity Leadership Summit & Diversity Gala on October 23-24.
2002 2002 Leadership Leadership Summit Summit && Diversity Diversity Gala Gala
A Blueprint for Success Raising The Bar
As the president of one of Verizon's largest business units, Gordon is responsible for $25 billion in annual revenues and oversees a workforce of 34,000 employees in over 30 states that serve more than 44 million residential, small-business and long-distance customers nationwide. Gordon began his 34-year career in telecommunications as a management trainee with Bell of Pennsylvania, now part of Verizon. He sits on several corporate boards including the Southern Company and Office Depot; serves as trustee of Gettysburg College, the Alvin Ailey Dance Foundation and Lincoln Center; and is a member of the Executive Leadership Council, a nationwide professional organization for senior-level African-American executives.
In 1998, he was named “Executive of the Year” by Black Enterprise magazine. In July, Gordon, a Camden, N.J. native, was also named among the “50 Most Powerful Black Executives in America,” by Fortune magazine.
Professional mentoring is an important part of the overall Verizon Diversity Strategy. The company’s mentoring program pairs senior leaders with diverse employees to provide career counseling, networking opportunities and increased visibility for employees. Diversity councils across 23 Verizon business units oversee leadership development, professional mentoring and diversity training; 12 affinity groups promote personal and professional growth for employees with common interests. Verizon also holds its senior leadership accountable for the success of its diversity initiatives. The company ties executive incentive compensation directly to the program, making it clear that the Verizon Diversity Strategy is a top priority. PDJ page 21
2002 Leadership Summit & Diversity Gala
Raising The Bar
Calvert Group, Ltd.
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t’s not surprising that Barbara Krumsiek, President and CEO of Calvert, has developed a keen awareness of diversity issues during her 28-year career in the financial services industry. She is, after all, someone who knows firsthand what it means to be a pioneer.
At Calvert, however, investment success isn’t measured by numbers alone. “In our view, a truly successful investment is one that not only earns competitive returns, but also helps to build a sustainable future and to enhance the quality of life,” says Krumsiek.
“Even today, being a woman CEO is a rarity, particularly in the investment business,” Krumsiek says. “But my experience in the industry has strengthened my commitment to work ing to ensure that barriers continue to fall for all those who have been historically overlooked in the leadership structures.”
To uncover such successful investments, Calvert uses an uncommonly thorough process. Like a conventional mutual fund, Calvert begins by scrutiniz ing the financial performance of a company it is considering for investment. If the company offers the potential for attractive returns and matches Calvert’s overall investment strategy, Calvert then takes a critical second look and evaluates the company’s social performance in six broad categories—environment, workplace practices (including diversity), product safety and impact, international operations an d human rights, community relations, and the rights of indigenous peoples.
Krumsiek’s position at Calvert affords her a unique opportunity to act upon that commitment. A mutual fund
investing indiversity
The aim is to select companies that make a profit and make a company based in difference—an approach that, according to Bethesda, MD, Krumsiek, offers tangible rewards. “One of our Calvert has been a guiding principles is that the best long-term investleader in the field ment opportunities are to be found among comof socially respon- panies that recognize that today’s social and enviUnder the inspired leadership of President & CEO sible investing ronmental issues have a way of becoming tomorBarbara Krumsiek,Calvert is helping to make a difference (SRI) for more row’s economic problems,” she says. “So, choosing in the lives of women and minorities here and abroad. than two decades. companies that are committed to meeting the During her five-year challenges of the future with an expanded view of Barbara Krumsiek tenure at the firm, Kr umsiek has sought to expand corporate responsibility that includes operating the company’s long tradition of strategic corporate with integrity toward their employees, their comPresident & CEO engagement while strengthening its financial munity, and the environment is not just socially Calvert Group, Ltd. performance. Her efforts on the social front have responsible—it also makes good business sense.” 4550 Montgomery Avenue included supporting current initiatives as well as Bethesda, MD 20814 launching a number of new ones to foster diversity Committed to fostering diversity and to safeguard the rights and well-being of Calvert’s efforts to foster diversity begin with women and minorities. analyzing a company’s social record. Calvert’s For information, contact: investment criteria for workplace practices specify Elizabeth Laurienzo Investments that make a difference that the firm seeks to invest in companies that Public Relations Director Calvert today manages approximately $8.5 billion actively hire and promote minorities and women, Tel: 301.657.7047 in assets in 29 different mutual fund portfolios for and avoids companies that show a pattern of over 300,000 shareholders. violating equal employment opportunity standards concerning pay, promotion, tenure, training and benefits. www.calvert.com page 22
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According to Krumsiek, implementing these criteria is a dynamic process. “Throughout our relationship with a company we invest in, we actively engage its management to encourage them to develop, clarify and improve their diversity policies,” she says. “For example, we ask them to provide reports detailing the race and gender composition of their workforce, and request that they develop programs and polic ies aimed at recruiting and promoting women and minorities to management-level positions. We also encourage upper management to diversify the composition of its board of directors.” In addition, Calvert’s efforts focus on preventing discrimination based on sexual orientation, and increasing opportunities for persons with disabilities. Krumsiek notes that Calvert also participates in proxy voting and share holder resolutions. Since 1987, she says, Calvert has filed 69 shareholder resolutions, of which 39 were on issues ranging from the disclosure of workforce diversity data to the development of diversity programs to the elimination of the glass ceiling for women and minorities. Furthermore, Calvert has engaged hundreds of companies in a dialogue on the importance of diversity.
Recent diversity initiatives The 2001-2002 proxy season proved to be very productive for Calvert. “As a result of our dialogues and resolutions, several companies, including Peoplesoft, Lowes Companies, Robert Half, Office Depot, and McGraw Hill, not only disclosed essential diversity data, but also agreed to an in-depth analysis and audit of their diversity programs and policies,” Krumsiek says. “Each of these companies has agreed to implement our initial recommendations for improvement. We are very pleased, for example, with McGraw Hill who, as a result of our discussions, has agreed to discuss its diversity initiatives in greater detail on their website. We are working with Office Depot as the company prepares its first corporate brochure devoted to communicating its commitment to diversity.” The recent proxy season also marked C alvert’s entry into shareholder engagements on corporate governance. Calvert’s shareholder resolution seeking board independence at the Massachusetts-based technology firm EMC Corporation passed with 56% of the vote, and EMC announced that a recently vacated board seat will be filled by an outside, independent 1-800-573-2867 www.diversityjournal.com
director. “We plan to build on this success and make board independence a priority at other companies,” Krumsiek says. “We also plan to urge companies to diversify their board to ensure adequate women and minority representation.” To that end, Calvert has
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e can all contribute to the creation of a new business model based on managing concurrently to objectives that are financial, social, and ethical.” Barbara Krumsiek President & CEO, Calvert Group, Ltd. and winner of the Leadership Award, 2002 Leadership Summit & Diversity Gala
approached about 55 companies who are expanding or filling vacant board seats to ask them not only to seek independent directors, but also pay special attention to seeking women and minority applicants.
Strategies for empowering women Krumsiek is a longtime advocate of policies and programs to empower women, and Calvert reflects her passionate commitment to reaching out to women and providing the knowledge and tools they need to develop their financial strength and build a secure future for themselves and their families. “One of our recent initiatives was launched in response to September 11th and the growing awareness of the injustices suffered by women under the Taliban regime,” Krumsiek says. “We created a special section on our website to increase awareness of issues affecting women across the globe and to provide information about global organizations and nonprofits working on women’s empowerment issues.” Among the organizations included was The Afgh an Girls Fund, a special fund established by National Geographic to assist in the development and delivery of educational opportunities for girls and women in Afghanistan. Krumsiek also recently sent a letter to the Senate Foreign Relations Committee urging
Profiles in Diversity Journal
• September/October 2002
the U.S. to adopt the UN Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW). “We are concerned when economic and social actions deny women from exercising their basic rights to participate as full and equal world citizens,” Krumsiek said in her correspondence to the Senators. “If the U.S. were to embrace the principles under CEDAW, it would create a deterrent to some of the basic violations of human rights faced by women and girls today.”
2002 Leadership Summit & Diversity Gala
Investing in Diversity Raising The Bar
To expand its leadership role on women’s issues, Calvert is currently developing a set of Principles on the Global Empowerment of Women. “The Principles, which are scheduled to be released early next year, will include strong statements urging corporations to act on a range of women’s issues from economic security, health and safety, and equality and fairness to education, training and professional development,” Krumsiek says. “We will use them as a tool in our corporate engagements and dialogues with companies around the world.”
A time of transformation and opportunity The recent corporate accountability scandals notwithstanding, Krumsiek envisions a bright future for business. “I believe we are witnessing the beginning of a significant transformation in our business culture,” she says. “As we go forward into the 21st century, more and more people are realizing that our daily work is no longer separate from our inner life, and that the ethics of society are integral to its economics. The result is that we have realized that business can flourish in the 21st century only by pursuing new guidelines concerning human, natural and spiritual environments.”
Clearly, Calvert will play a role in the creation of those new guidelines. And, Krumsiek believes, so can we all. “In the years to come, each of us will have the opportunity to participate in and to contribute to this transformation as well as to benefit from it,” Krumsiek says. “We can all contribute to the creation of a new business model based on managing concurrently to objectives that are financial, social, and ethical. So let us have the courage to fully embrace our values and our deepest passions, and bring them to work with u s every morning and take them home with us every night. Let us search for new approaches, new policies, and new structures that are good for one and good for all.” PDJ page 23
2002 Leadership Summit & Diversity Gala
Raising The Bar
JPMorgan Chase
moments oftruth
Diversity Champion Behaviors
The Middle Management Engagement Initiative at JPMorgan Chase
Question: How can a diversity initiative create a sustainable culture change without the support and full engagement of mid-level managers?
been grounded in strong, deliberate senior man- JPMorgan Chase in designing solutions that push our initiatives to the next level. This Middle agement commitment and involvement, and it Manager project began by looking closely at continues today with Chairman & CEO Bill some of the feedback from prior diversity Harrison. While this commitment is critical, Answer: It can’t!! education sessions; a recurring theme was the we’ve learned that it’s only one ingredient for frustrations mid-level managers have around sustaining meaningful culture change. In 2001, JPMorgan Chase’s Corporate Diversity diversity and, more specifically, what was Council set about answering this “Middle expected of them as middle managers. We knew Getting Started Management Challenge.” While approaches the feedback from those sessions was valuable In order to keep our diversity efforts cutting vary, all successful diversity initiatives have edge, we consistently evaluate the strengths and b ecause the FutureWork team creates a safe place several key elements in common. Chief among weaknesses of our strategies to ensure that we are to freely dialogue and share concerns around these: the buy-in, support and participation of diversity. As a result, we were able to frame responding proactively to the needs of our senior management. Simply put, senior leaders workplace. The FutureWork Institute, (a the project around what was “real” for our serve as role models around inclusion. At middle managers. strategic alliance with Towers Perrin) is one of JPMorgan Chase, the diversity initiative has long our key partners; it has often worked with Combining the feedback from these classes with employee poll data painted a clear picture: most employees believed that senior management was committed to diversity. What wasn’t as clear was whether their supervisors and managers were “on board.” Acknowledging that a powerful— possibly the most powerful—lever for creating sustainable culture change was the buy-in and engagement of mid-level managers, we began talking about ways to find out what was going on.
Jane Roche Vice President Manager, Diversity Engagement & Communications JPMorgan Chase One Chase Plaza - 27th Floor New York, NY 10081 Tel: 212.552.6523
Michael Davis Consultant The FutureWork Institute (A strategic partner of Towers Perrin) 595 6th Street Brooklyn, NY 11215 Tel: 718.832.8625 FAX: 718.834.8635
jane.roche@chase.com
mdavis@futureworkinstitute.com
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As with most organizations, JPMorgan Chase’s mid-level managers are its largest functional demographic group. For this project, “middle manager” was defined very broadly as anyone with supervisory responsibility below the Senior Vice President/Managing Director level—a ballpark population of 30,000 colleagues. These colleagues have the most one-on-one contact with employees—and therefore have the greatest potential impact on staff. In essence, while senior management is key to kick-starting a diversity initiative and providing the direction and res ources needed, the middle managers “make it or break it” when it comes to creating sustainable culture change.
1-800-573-2867 www.diversityjournal.com
At JPMorgan Chase, the diversity initiative has long been grounded in strong, deliberate senior management commitment and involvement. Chairman & CEO Bill Harrison is a recipient of the CEO Leadership Award from the 2002 Leadership Summit & Diversity Gala.
included—theoretically, employees who were “being managed”—and their perspectives were used to compare and validate data gathered from the middle managers. Some key findings and action steps include:
take a look inside...
2002 Leadership Summit & Diversity Gala
Moments of Truth Raising The Bar The FutureWork Institute Diversity Learning Rooms
The FutureWork Institute has incorporated the Moments of Truth diversity champion behaviors in their existing diversity education concept of "learning rooms.” Diversity Learning Rooms are designed to be short or "chunked" diversity education experiences that focus on specific diversity issues and can be offered over time, as a curriculum, to examine diversity issues in more depth. They were designed to respond to some of the concerns around traditional one- and two-day training sessions (too much time commitment required for managers and information overload) and allow for an extended learning experience around diversity as opposed to a one-shot deal every 12-24 months.
1) Many middle managers perceive diversity to be something additional that they have to do; something separate and distinct from their functional and management roles. Simple as it may be, this was ultimately the biggest finding. To achieve the firm’s diversity vision meant Right away, it became obvious that action becoming “surgical” about removing the plans would center on making it clearer obstacles that were keeping middle managers that at JPMorgan Chase, diversity managefrom being fully engaged and effective. ment is not about delivering a great deal of A "Diversity Moments of Truth" learning room curriculum additional effort; it’s not going to an event, There were many questions on the part of has been developed. Each learning room focuses on one or training, or making a speech. It is middle managers about what exactly their role of the diversity champion behaviors (i.e., giving feedback about doing what you already do, every was in the initiative and what a “diversity or building relationships). A variety of different learning day—providing feedback, coaching, hirchampion” really did. There was a fair amount techniques including interactive theater, role playing and ing, and developing employees—in a more of dissonance—middle managers knew they case studies will be used throughout the curriculum to were supposed to be doing something, but didn’t thoughtful and inclusive way. Diversity is allow participants to really understand and absorb the seem quite sure what it was! The firm partnered simply part of being a good leader. essence of the diversity champion behaviors. Almost everything done in response to this with The FutureWork Institute to develop a work centers on the notion of conceptually research process that could answer these comments that rang true for many colleagues questions. Fundamentally, the approach exam- “marrying” diversity with leadership. paints a vivid picture: “It’s hard to give feedback ined three questions relative to middle managers: to my mother.” As a result, we’ve begun looking 2) There is resentment regarding being held • what was working to support their efforts in at our Diversity Education curriculum to make accountable for being a diversity champion when sure it is directly aligned with what we learned managing diversity? there is a lack of understanding about what • what was getting in their way? from our middle managers and their specific exactly (in behavioral terms) a diversity • what does a middle manager “diversity support needs. champion is! cha mpion” do—in concrete, behavioral The response to the During the terms—at everyday “moments of truth” that Middle Management process, would signal to their colleagues that they Engagement project has participants are truly diversity champions and not just spurred JPMorgan Chase were able to “talking the talk?” to center nearly every define specific project on the notion of conceptually "marrying" behaviors that The project began with the full support and diversity with leadership. distinguish a involvement of a subteam from the Corporate Here, an illustration of diversity Diversity Council. Sheila Eggert, the Middle how they’ve integrated Management Engagement (MME) project leader, champion from this concept into a someone who is said, “From a strategy development perspective, firm-wide Diversity we weren’t certain where this information would not. Ultimately, Communication over 50 specific take us but we knew it was exactly where we Campaign. behaviors related needed to go.” 4) The process itself—the simple opportunity to to key management events and practices were dialogue with peers about managing diversity— compiled. These were the “moments of truth” Process and Key Learnings was extremely valuable to the participants. when an informed, inclusive perspective on Across the U.S. a total of 46 focus groups were Although the sessions were designed as focus diversity and keen self-awareness combined to conducted, with random samplings of middle groups to gather information, the discussions create more effective and powerful leadership. management representing all businesses and about what a diversity champion “really is” were functional areas of JPMorgan Chase. A similar personally invaluable for middle managers. In 3) Certain aspects of diversity are harder to process had recently been completed in Europe, session after session, participants suggested that manage than others. For example, generational Asia and Latin America, again in partnership “this class” be offered more broadly! As we’ve diversity was cited consistently as something that with The FutureWork Institute. In all regions, presented these findings at management team presents challenges. One of the verbatim several groups of individual contributors were
continued page 61
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Profiles in Diversity Journal
• September/October 2002
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2002 Leadership Summit & Diversity Gala
Raising The Bar
Abbott Laboratories
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ith leading products like life-saving antiretroviral therapies for people living with HIV/AIDS, state-of-the-art blood glucose monitors, Similac® Advance® infant formula and innovative cardiovascular devices, Abbott Laboratories is one of the largest broad-based health care companies in the world.
with Abbott’s Executive Inclusion Council. Mr. White is the company’s chief diversity champion and chairs the seven-member council that sets diversity and inclusion strategy, goals and expectations.
As Abbott’s business has grown increasingly diverse, so too has the company’s employee population. The approximately 70,000 people of Abbott serve customers across the globe and are committed to building the world’s premier health care company. Key to achieving this objective is Abbott’s employee diversity—the variety of backgrounds and experiences they incorporate into their job functions every day.
team
At all levels of its organization, Abbott continues to strengthen its diversity and inclusion efforts. Only by doing so can the company maintain its diverse business portfolio and meet the needs of its customers in more than 130 countries around the world.
spirit
The Diversity Team at Abbott Laboratories and meeting the challenge of building a truly inclusive environment. Winners of the Diversity Spirit Award, 2002 Leadership Summit & Diversity Gala
For information, contact: Sharon Larkin Divisional Vice President Abbott Laboratories 100 Abbott Park Road Abbott Park, IL 60064-6400 Tel: 847.937.6100
www.abbott.com page 26
“At Abbott, our diversity—of people and products— provides significant value. Combining these different influences in one broad-based business gives us a unique perspective that translates into a distinct competitive advantage,” said Miles D. White, Abbott’s chairman and chief executive officer.
Abbott Laboratories’ Diversity Leadership: (front, left to right) Sandra E. Burke, Ph.D., Associate Research Fellow, Cardiovascular Systems; Thomas Chen, Vice President, Pacific Asia and Africa Operations; Sharon Larkin, Divisional Vice President, Human Resource Programs and Business Integration; James Walton, Divisional Vice President, U.S. Sales, Abbott Diagnostic Division; (back row) Heather Mason, Vice President, Pharmaceutical Specialty Operations; Miles D. White, Chairman and Chief Executive Officer; Mary T. Szela, Vice President, Pharmaceutical Primary Care Operations.
In addition, each of Abbott’s divisions has its own Diversity and Inclusion Council or Action Team charged with implementing the company’s inclusion strategy and ensuring it becomes a reality deep within the organization. The divisional councils also form Diversity and Inclusion Teams to develop initiatives specific to the needs of their Abbott’s diversity and inclusion vision is centered division or location and to help drive diversity on a work environment that engages people to and inclusion within Abbott’s workforce. contribute to their full potential. This strategy is predicated upon effectively recruiting, retaining “Ultimately, it is the responsibility of every and developing a diverse and inclusive workforce. individual at Abbott to create an inclusive environment,” said Sharon Larkin, Abbott’s Ensuring momentum continues to build behind divisional vice president in charge of the all of the company’s diversity and inclusion company’s workforce diversity and work/life efforts is a team structure that starts at the top continued page 63
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Duke Energy
dynamic
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ccording to Rick Priory, chairman, president and chief executive officer of Duke Energy, diversity has everything to do with the bottom line. “In my mind, diversity is not a lofty ideal or philanthropic undertaking,” said Priory. “It’s about business results, economic investment, market outreach and corporate survival.”
Today’s world has a new business paradigm. Changing demographics in the U.S. population and workplace, as well as business expansion across global borders, create a compelling business case for diversity.
performance Duke Energy’s commitment to building a dynamic, diverse and multidisciplined team is key to the company’s success.
For Duke Energy, diversity is a core business value that is being integrated into all aspects of the business including, but not limited to, the recruitment, retention and development of diverse talent, and the creation of products and services that appeal to diverse market segments.
2002 Leadership Summit & Diversity Gala
Raising The Bar
wishes to serve, it must be prepared to relate to those markets. “We will not be successful unless we can create strategies that focus on customizing our products and services to appeal to diverse market segments and customers,” Priory said.
Duke Energy’s diversity vision is to create and establish sustainability, with clear and consistent Duke Energy is committed to identifying and accountability. “To do that we have implemented keeping the best a nd brightest talent in the marketplace—and therefore the company is an enterprisewide diversity model that builds on committed to diversity, which its leadership views our company’s tradition of integrity, ethical as an absolute bottom-line issue and imperative. standards and results orientation,” Priory said. “We know that to win in our competitive field, we have to “In my mind, diversity is not a lofty ideal or philanthropic win the talent war, so we strive undertaking. It’s about business results, economic investment, every day to attract, retain and market outreach and corporate survival." Richard B. Priory develop diverse competencies Chairman, President & CEO and leadership abilities at CEO Leadership Award Winner, every level,” said Priory.
2002 Leadership Summit & Diversity Gala
“The creative mind power of our team is Duke Energy’s greatest competitive advantage,” Priory added, “and we increase the advantage every time we expand our thinking. Changing times call for a dynamic, diverse, multidisciplined workforce that embraces change, new ideas and collaborative problem-solving.”
Richard B. Priory Chairman, President and CEO Duke Energy 526 South Church Street Charlotte, NC 28202-1904 For information, contact: Cassandra Watson Diversity, Ethics and Compliance Communications Manager Tel: 704.382.8682
cgwatson@duke-energy.com 1-800-573-2867 www.diversityjournal.com
Duke Energy knows that it is most successful at serving its customers and communities around the globe when it blends the talents and perspectives of an increasingly diverse team. “It is the culture we continually value at Duke Energy,” said Priory. “We continue to assemble a diverse, multidisciplined team that is united in purpose, and will continue to communicate to all employees the values that define our company and drive our success.” The growing global marketplace further compels the company to an inclusive, multifaceted workforce. Duke Energy knows that its portfolio of unique businesses must reflect the environments in which the business operates. Priory stated that in order to reach the markets that the company Profiles in Diversity Journal
An enterprisewide framework for diversity is provided at Duke Energy’s leadership level, but the various businesses are also granted the freedom to cre ate their own diversity models to support their business objectives and drive results. The goal is for each business unit to create its own diversity business case that is relevant to achieving its business objectives, while still complying with corporate standards and accountabilities. The diversity framework is tied directly to the business strategy and addresses diversity from the perspective of empl oyees, customers, suppliers, and stakeholders. It is composed of eight basic tenets: 1) Leadership, 2) Standards, 3) Education, 4) Communications, 5) Workplace Environment, 6) Employment and Economic Development, 7) Strategic Alliances and Partnerships, and 8) Measurement and Accountability. Business unit executives are responsible for establishing goals and objectives, determining accountability, setting measurements, and developing a reward system to support
• September/October 2002
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leadership a process ...
The Changing Landscape
The Stewart Management Group, LLC
Having the courage to self-evaluate bridges the gap between managing and leading people, between good performers and outstanding performers and between telling employees what to do and inspiring them to do their best.
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onsider the following leadership challenge: Ellen is a senior executive with a Fortune 500 company. She has been employed there for 10 years, grad ually advancing through the senior ranks. Even in 2002, many of her male colleagues have resented women moving into high leadership positions and often let her know how they feel. Based on her experience with those male executives, Ellen believes that senior male executives from the other divisions probably feel the same with respect to women in leadership roles. Now that she’s been appointed to an imp ortant initiative involving several divisions, Ellen is frustrated because it seems as though she does not have her colleagues’ support. What will it take for her to be an effective leader in this situation?
What is Leadership?
Mary L. Stewart, Ph.D. Managing Director The Stewart Management Group, LLC 332 N. Humphrey Oak Park, IL 60302 Tel: 708.383.6052 FAX: 708.383.6393
mls@stewartmanagement.com page 28
Can Managers be Leaders? While managing is often present-focused and highly task-oriented, leading requires a person with vision. So the question becomes can managers also be leaders? If they have a vision of their employees’ potential and are willing to take risks that initially may be greater than the perceived gain then, yes, they can lead. However, all too frequently, people are promoted to management positions because they excelled as individual contributors—not because they demonstrated an ability to manage, lead or necessarily cared about others. Once promoted, these new managers often forget what it was like to be an employee who feels they have little say and no power. So in Herculean efforts to ensure the new position, they repeat the mistakes of those who preceded and promoted them. As a result, many organizations are set up to fail because the organizational culture itself does not support new ideas from managers. Instead, these "leaders in the rough" are encouraged to stay in the same old rut.
Leadership is the catalytic behavior of one person that creates an environment where respect for others can live. And while it’s about developing the unrealized and untapped potential of employees, it is certainly not a value Leaders in the Rough that’s only written in the company’s annual These leaders in the rough are called to control report or posted in a prominent place in the turnover, do more with less, motivate each human resources department. The leadership employee, ensure some truth in advertising, process begins with an individual’s selftranslate the corporate vision down into the examination and ends with his or her fair and organization and ultimately keep everyone proobjective action towards the employees, the ductive and the business profitable. But do they organization represented and the customers. Although some people are called to lead because have the necessary skills or tools to effectively juggle these complex tasks? Managers are often of the circumstance in which they find themselves—a business conflict, a failed product, trained in budgeting, forecasting a nd marketing and are provided project management tools. a moral crisis, a loss of integrity, the need to But, have they been given the tools to: address issues of cultural differences and • mediate disagreements employee confidence or the loss of a significant • tap into the potential of their employees customer—others evolve into leaders through • court customers the process of self discovery, self development • handle their personal frustrations and careers and a strong desire to make the work • manage their bosses environment better for others.
Profiles in Diversity Journal
• September/October 2002
1-800-573-2867 www.diversityjournal.com
Leadership: A process ... not a position The Changing Landscape
not a position • • • •
balance their families remain flexible during chaos mentor and motivate other employees and play golf?
Creating a New Leadership Standard History tells us that followers rarely challenge their leaders, particularly charismatic ones. Many leaders’ opinions were seen as truths, their behaviors were emulated and their decisions went unquestioned. However, today’s personally empowered employees question company decision-makers and decisions. They expect their contributions to be acknowledged. They want their voices heard, and if they are not heard they will leave the job—literally or figuratively. As managers evolve into their leadership roles, they can inspire these employees to greater productivity with action. They can model risk taking, encourage creative thinking, acknowledge their m istakes, reward others’ success, work to balance their family life and demonstrate a willingness to become more self-aware. Remaining open to employees and showing that their perspectives and performance potential are valued creates a foundation on which effective leadership can be built. In an atmosphere of mutual respect and trust, managers are more likely to become successful leaders, keeping both the organizations’ interests in mind and employees’ potential maximized. Effective managers lead the employees who do the planning and the employees who do the execution forward together—in the same direction (towards the vision). Effective leaders take their role one step further and motivate everyday employees to accomplish extraordinary jobs because they never stop seeing the employee’s potential. To establish this kind of respect-based, collaborative environment, managers must first examine who they are within the organization, how they define their personal success and whether 1-800-573-2867 www.diversityjournal.com
or not they want to lead others. The Stewart Management Group teaches a personal evaluation process called Equity Checking ®, which can help managers become more effective. Broken into four steps, Equity Checking® helps minimize the effects of personal judgments about others and enables managers to more clearly see the potential in others. When making decisions, managers can use this process to organize their thoughts based on logic and fact.
Back to Ellen—What Steps Does She Take? To illustrate the steps of this process, let's examine Ellen’s situation. 1. Ellen's first step in revamping her belief is to examine the personal assumptions coloring her judgment. In this case, Ellen is assuming that she does not have the support of the male executives. 2. Next, she needs to identify what values and beliefs are driving that assumption. Ellen feels that she is justified in thinking that male executives will not support her because many of her previous male colleagues made it clear that they resented the promotion of women in general. 3. Third, Ellen needs to gather evidence to suppor t or disprove her assumption by asking herself a series of questions, such as: • Have I gathered enough information to substantiate my assumption? ("What does support look like?”, "Who are the individuals who provide it?") • What is the evidence that I am remaining objective? • Are there men who do support me? • Are there men who have supported other women? • Are there women who don’t support me? • Am I l etting my assumption affect the way I am conducting myself with all my colleagues? 4. To complete the cycle, Ellen can examine the
Profiles in Diversity Journal
• September/October 2002
impact of her behavior. Her belief that her male colleagues withheld their support altered her behavior, causing her to distance herself from male colleagues who may have been supportive, to be suspect of the feedback she received from males and ultimately to impact how she interacted with others—both male and female. Ellen’s efforts to recognize the effect of her thinking on her actions is an essentia l step in modifying her behavior.
Bridging the Gap Between Managing and Leading Self-evaluation as a leadership tool seems deceptively simple, but it takes willingness, discipline, time and practice to equity check each individual interaction. This kind of effort can go a long way toward creating collaborative, honest, more productive work relationships and a healthy environment. Having the courage to self-evaluate bridges the gap between managing and leading people, between good performers and outstanding performers and between telling employees what to do and inspiring them to do their best. Imagine creating a vibrant and healthy place to work—where employees thrive and grow and where managers have the strength to develop themselves into leaders. If you can imagine it, then you have the vision to c reate it. And while the process is not always easy, when you consider the cost of not doing it … there is only one choice to make. PDJ page 29
Raising The Bar
Deloitte & Touche
I
f we are to continue to be successful in the marketplace, we must always think globally, act locally and make our people cognizant of the infinite opportunities that can be unlocked by diverse teams—teams made up of people from different backgrounds, with different perspectives and experiences. As a leading professional services firm with over 30,000 people in the U.S. and 120,000 worldwide, we believe that in fostering an environment in which this diversity can flourish we can substantially increase our opportunities for success in the marketplace.
They also want innovative, yet practical, ideas that are backed by a commitment to quality and integrity. The only way to meet these demands is through rich, diverse teams that can provide the right solutions in a timely fashion.
leadership, people (which includes retention, recruitment, and development), education, and communications. In addition, we have instituted a mandatory one-day diversity awareness training course that is highly interactive and allows all our people across the With that in mind, over the past three years, our United States to participate in the discovery of firm has created and has been implementing a the meaning of diversity, how it enriches our firm-specific strategy to make diversity a hallmark personal lives and work, and the role diversity of our firm’s culture, success and the way we do plays in our day-to-day business environment. business. In shaping our strategy, we first Finally, we will hold our leaders and our people developed a broad definition of diversity: accountable for advancing our diversity objectives. Within two years, we expect 35 percent of Our clients are also recruiting and promoting A collective mixture of individuals, cultures, our client service professionals to be people of people from a much broader pool of applicants— and organizational expertise. It is all the color and for all of our teams—internal and not only Americans from diverse backgrou nds, differences that make each of us unique, and external—to be composed of richly diverse but also people from a host of countries in the commonalities that connect us. groups. To that end, we have commissioned an Europe, Asia, Africa, and Latin America. Our Diversity includes everyone. external advisory board made up of prom inent clients don’t want cookie-cutter solutions or leaders and authorities from the marketplace to homogenous teams from us. They want new The implementation of our strategy has not been help us monitor and track our progress and ideas, perspectives, and approaches in every as smooth as we would have hoped given the eco- results in diversity and inclusion. area—from human resources consulting to nomic and professional environments with which management solutions and from audit to tax. we have had to contend over the past year or so. Much remains to be done before Deloitte & Large scale organizational change is a process to Touche can fully reflect the global and local which we are firmly committed and one we diversity of its offices in over 100 countries expect to yield a successful outcome. That being worldwide. But, every day, we take small steps said, we have made steady and significant progress forward. We deepen our commitment and we and impressed upon our people and our leadersee both the personal and professional benefits ship the importance of diversity and inclusion accr uing to our people, our clients, and our and the depth of our commitment. business and the communities where we live After a lengthy and thorough search, we hired a nationally recognized authority on diversity and workforce inclusion, Ms. Redia Anderson. With Redia’s leadership and the commitment of our firm’s leaders, we have de veloped an internal infrastructure to bring life to our objectives. Our diversity strategy is focused on four key areas:
and work. What sustains this effort is not only the determination of our firms’ leaders, but also the fact that we are earning recognition for our commitment. That recognition also inspires people in our firm to make the extra effort. Most recently, our Florida-based partner, Kim Griffith-Hunter, was elected president of the National Association of Black Accountants.
continued page 58 William G. Parrett Managing Partner Deloitte & Touche 1633 Broadway New York, NY 10019 For information, contact: Natalie Webb Manager, National Public Relations Tel: 212.492.4037
nawebb@deloitte.com page 30
complete accountability Deloitte & Touche implements an ambitious strategy to help it more fully reflect the global and local diversity of its offices in over 100 countries worldwide.
Profiles in Diversity Journal
• September/October 2002
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The Changing Landscape
PRISM International
P
assionate, well-intending diversity managers leaders who can produce the results. Most often are struggling to engage leadership, gain commit- they do not possess the knowledge, skills and ment, drive change and measure results. They tools to initiate, communicate and incorporate know that leveraging diversity is about positioning the diversity message, strategies and tactics into their organizations for success in a rapidly their departments and teams. changing and increasingly complex workplace and marketplace. Accomplishing this goal requires Do you remember your first day of work? Were them to move forward strategically and tactically you provided with an overview of the organizawith creating, valuing, managing and leveraging tion’s traditions, policies, practices and cultures? diversity by linking and leading a large scale, Do you remember those first few weeks on your inclusive, all encompassing change effort. That’s new job? Was your manager busy, task-driven quite an order! and racing to meet deadlines? Did you find yourself being quick ly assimilated and aligned But what if a diversity manager could mobilize with your new department and team? Were you their organization’s managers, thereby extending expected to immediately contribute and prothe diversity reach and making a greater impact? duce? Over the course of your employment, you While this would require recruiting and engaging may have noted many ways that inclusion and employees who understand and support diversity diversity opportunities could have enhanced staff and inclusion as a leadersh ip competency and as involvement, commitment, idea generation, an organizational business improvement tool, quality and customer service—some that would mobilizing an army of diversity change agents have led directly to cost containment and profit. would provide tremendous payoffs. However, in the process of driving for the daily results, diversity was not being leveraged to Diversity champions and change agents can be achieve them. found at all levels of the organization. The key is to recruit, equip, engage and hold accountable the Think about your current diversity plan. Ideally, executives have set the direction and provided the commitment. Diversity is a strategic priority incorporated into the overall strategic plan of the business. You and the diversity council have scoped out the tactics and are working on them. A communication plan is in place and is being implemented. You might have even conducted some form of diversity education and training. One could wonder … with diversity and an inclusion strategy, a commitment, and a plan in place … what’s not working? Perhaps the plan failed to include the people that can make or break the success of a leveraging diversity process. Diversity managers and executives cannot drive the real change process alone. It’s directors, supervisors, coaches and leads—the managers, who are ultimately responsible for Linda Stokes meeting departmental and business unit goals. They have the most to gain and lose. It’s the President managers who determine which behaviors are
PRISM International First Sanford Tower 312 W. First Street, Suite 301 Sanford, FL 32713 Tel: 407.324.5290 FAX: 407.324.0148
linda@prism-international.com 1-800-573-2867 www.diversityjournal.com
supported, reinforced or stopped. Ultimately, they shape, create and sustain the culture. They decide how organizational values and vision around diversity are actually integrated into the daily activities and decisions. It’s the managers who know the business and behavior challenges their teams are facing; and, it is the managers who are responsible and accountable for both. Inclusion and diversity efforts cannot be fully successful without managers who are equipped to incorporate diversity concepts and tools into the jobs that they and their staff perform each day. Yet, given the time constraints of managers, they must find a quick way to incorporate diversity and inclusion into their schedules. Some organizations use PRISM’s Diversity Discussion Starters TM tool to incorporate business-relevant, bitesized diversity concepts into their staff and team meetings. The PRISM Diversity Discussion StartersTM consist of fourteen 45-minute scripted, activity-driven, businessrelated, decision-focused diversity conversations that managers include in their staff and team meetings. The real power of the tool is in the design of each meeting’s script—it enables the team to identify and make decisions within their team about leveraging diversity and inclusion to bring about bottom-line business changes. Nutritional products company Mead Johnson observes, “The power of the PRISM Diversity Discussion Starters TM lies in the decisions that we made as a result of the conversations that we held.” Let’s examine two examples: • If diversity has been discussed as a “business issue” for the business, have managers had the conversation with team members about diversity as a business issue for them?…in their own department? • If stereotypes were discussed in the organization’s overall diversity training program,
continued page 58
compelling conversation create
Driving Diversity Changes with Manager-Led Discussions Profiles in Diversity Journal
• September/October 2002
page 31
Manager-Led Diversity Discussions resulting in team decisions and real changes
“ The power of the
PRISM Diversity Discussion Starters™ lie in the decisions that we made as a result of the conversations that we held.
” Mead Johnson, Evansville, IN
“ We've done
PRISM DIVERSITY DISCUSSION STARTERS™ O RGANIZATIONS
NOW HAVE A TOOL THAT ENABLES THEIR
MANAGERS TO INCORPORATE BITE - SIZED DIVERSITY CONCEPTS INTO THEIR STAFF AND TEAM MEETINGS.
The PRISM Diversity Discussion Starters™ consist of fourteen, 45-minute scripted, activity-driven, business-related, decision-focused, diversity conver sations that managers include in their staff and team meetings. The real power of the tool is in the design of each meeting's script - it enables the team to identify and make decisions within their team about leveraging diversity and inclusion to bring about bottom-line business changes. Using the PRISM Diversity Discussion Starters™ in regularly scheduled staff meetings extends the diversity message and drives the diversity commitment, vision and mission through the organization in a way that creates real change.
For more information, call 1.888.997.7476 or visit us online at www.prism-international.com connecting diversity for results
diversity awareness training but it wasn't until we utilized the PRISM Diversity Discussion Starters™ in our staff meetings that our organization fully understood and connected diversity to our business case.
”
Honeywell Space Sys., Clearwater, FL
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.
An Evolving Curriculum
Georgia Institute of Technology
L
ast year Georgia Tech celebrated the 40th anniversary of its integration by being recognized as first in the nation in the graduation of African-American engineers at all degree levels by Black Issues in Higher Education. The agenda established for diversity over the last five years at Georgia Tech has been and continues to be an exercise in leading change. It has been nurtured by a series of calculated maneuvers, designed to evolve diversity into a strategic partner. As a result of comprehensive efforts to improve the ways that people study and work together, recognition has come in many forms.
• establish and endow The Goizueta Foundation Scholars Fund for Hispanic students whose families currently reside in the United States, $2 million; • establish and endow The Goizueta Foundation Faculty Chair, $1.5 million; • establish and endow The Goizueta Foundation Junior Rotating Faculty Chair, $500,000; and, • to fund a comprehensive Hispanic Recruitment and Retention Initiative, $250,000.
Georgia Tech is one of eight universities that received a multi-year ADVANCE grant of $3.7 In an effort to support continous improvement in million from the National Science Foundation the Hispanic student population, Georgia Tech (NSF). The ADVANCE institutional transforrecently received a $4.25 million gift from The mation award is a component of an NSF proGoi zueta Foundation for recruitment and reten- gram that supports new approaches to improve tion of Hispanic students. The Goizueta the climate for women faculty in U.S. academic Foundation gift will be used to: institutions and to facilitate their advancement to the highest ranks of academic leadership. The gran t is a comprehensive effort to diversify the science and technology workforce. The Research Institute’s efforts with this grant will serve as models that may be replicated by other institutions throughout the nation. Georgia Tech Research Institute (GTRI) is the nonprofit applied research arm of the Georgia Institute of Technology. GTRI employees perform or support approximately $100 million in research yearly for more than 200 clients in industry and government.
Pearl J. Alexander Director Office of Diversity Management Georgia Institute of Technology 490 10th Street Atlanta, GA 30332-0435 Tel: 404-894-0300 FAX: 404-894-8141
www.gtdiversity.gatech.edu page 34
GTRI plans and conducts focused programs of innovative research, education, and economic development that advance the global competitiveness and security of Georgia, the region, and the nation. The Georgia Tech Research Institute collaborates with Historically Black Colleges and Universities (HBCUs) and minority institutions to increase research interactions. These connections have made an impact at the K-12, undergraduate, and graduate levels, resulting in multiple proposals to various agencies and several on-going projects. These efforts build the capacity of minority institutions to contribute to the research needs of our nation, and to build the capacity of Georgia Tech to more effectively contribute to the resolution of problems, which cross disciplinary and institutional boundaries. All of the Institute’s efforts were recognized last fall when the U.S. Department of Labor awarded Georgia Tech the 2001 Exemplary Voluntary Efforts (EVE) award. The national EVE award honors federal contractors and associations for their innovative efforts to increase employment opportunities for minorities, women, the disabled and veterans.
The Vision Dr. Wayne Clough, President of the Georgia Institute of Technology, requires that the Institute continue to excel in all areas. When it comes to diversity management at Georgia Tech, he is quoted as saying, “To be a leading institution in the world you have to be a diverse
setting the curve
Georgia Tech
IN DIVERSITY MANAGEMENT
Georgia Tech Tech was was named named first first in in the the nation nation in in the the graduation graduation of of Georgia African-American engineers engineers at at all all degree degree levels levels by by Black Black Issues Issues in in Higher Higher African-American Education, and and celebrated celebrated the the 40th 40th anniversary anniversary of of its its integration integration with with Education, minority student student enrollment enrollment of of 34 34 percent. percent. aa minority
Profiles in Diversity Journal
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Setting The Curve in Diversity Management An Evolving Curriculum
institution. Our overarching goal at Georgia Tech, to be the institution that defines the technological university of the 21st Century, captures diversity. Building diversity—from the bottom up and the top down—in all of our programs means everybody is exposed to what we believe are the right concepts about valuing diversity on our campus.”
u p w a r d
The Right Angles for Success Cross sectional and organizational communication is critical: the diversity leadership network at Tech keeps information and ideas flowing by including leadership from the various campus constituencies: students, faculty and staff. The administrative structure for diversity management includes the Diversity Forum, composed of student and faculty leadership; the Diversity Council, comprising student, faculty and staff representation; and the Institute Steering Committee on Diversity, chaired by the President and including top Institute officials. This model provides an opportunity for a variety of inputs when seeking feedback or designing initiatives. Other communications vehicles include a new website for diversity which will début this fall, a diversity video, and a variety of diversity training. Making a difference one person, policy or process at a time: as an institution of higher education, Georgia Tech is a complex organization with multiple responsibilities to the community where it resides. Those in leadership understand that change in behavior and attitudes is a lengthy process. Strategic planning, establishing and updating policies and periodic assessment of the organizational climate best facilitate change. In many instances quantitative data and anecdotal examples provide the motivation for improvement. But, sometimes opportunity for change is best presented one person at a time. This is where programs such as MentorTech are invaluable. Mentor Tech is a mentoring program for staff that pairs seasoned Georgia Tech employees with those seeking guidance in advancing their careers. Although the formal program lasts approximately nine months, the benefits last a lifetime. Research 1-800-573-2867 www.diversityjourna l.com
t r a j e c t o r y
(left) The Women’s Leadership Conference was started four years ago to provide a means to celebrate, recognize, and learn more about the strong leadership exhibited by women of the Georgia Tech community. This year's theme was “Defying Definition,” which focused on breaking away from set stereotypes, shattering outdated thinking and exploring the realm of the new. (below) The Office of Diversity Management and President Clough accept the EVE (Exemplary Voluntary Efforts) award from the OFCCP. The national EVE award honors innovative effort to increase employment opportunities for minorities, women, the disabled and veterans.
(left) The Diversity Forum hosts a town hall meeting on the State of Georgia Flag. The mission of the forum is to capture the voice of the campus community relative to diversity issues.
has shown that people who have mentors are more successful in their careers. This has proven to be true of participants in our mentoring program even with the program in its infancy. According to Chuck Donbaugh, AVP, Human Resources, “Diversity has become an integral part of our business model. Programs such as Mentor Tech help us meet the challenges of leadership succession and broad campus involvement which positions us to be an employer of choice in the educational community.” Georgia Tech has placed significant emphasis on employee development and training. This emphasis allows faculty and staff to hone their skills and, in turn, help the Georgia Tech community fulfill its mission of research, education, and public service. There is a vast array of training and development options so
Profiles in Diversity Journal
• September/October 2002
that there is something for everyone. Climate assessments have been conducted in various campus units by the Office of Diversity Management and the Office of Organizational Development. Climate assessments are used to collect feedback to address priority findings, which will improve the work environment within campus units. These undertakings underscore the commitment of the administration and management to enhance the work experience for all of our employees. Setting the upward trajectory of the curve in diversity management means each and every member of the Tech community must realize his or her value and purpose within the organization. As Tech continues to study ways to improve and enhance the ways people learn and work together, these efforts will continue to be rewarded. PDJ page 35
HE'S OPTIMISTIC ABOUT HIS FUTURE, BUT REALISTIC ABOUT HIS INCOME. HE'S ENRICHED BY HIS CULTURE, BUT INSPIRED BY HIS FAMILY. HE'S MANY THINGS YOU MAY NOT UNDERSTAND, AND MANY THINGS THAT YOU SHOULD. HE'S YOUR TARGET AUDIENCE. YOUR FUTURE. AND WE THINK IT'S TIME YOU MET.
Diversity, by virtue of its own definition, means different things to different people. But no matter what your diversity objectives, your ability to capture your audience greatly depends on your understanding of their attitudes, media habits and career selection criteria. At Bernard Hodes Group, our Diversity Services Consultants give you the insights and expertise you need to reach the right audience with the right message. And every step of the way, we make it our business to understand yours. Bernard Hodes Group is more than a leader in integrated recruitment communications and staffing solutions. We're a partner. A stakeholder that provides you with the answers you seek, the experience you need and the service you deserve. Discover how our expertise can impact your own. Call 888.438.9911
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The Changing Landscape
Keki Bhote MEASURING DIVERSITY:
The Six Sigma METHODOLOGY
Profiles in Diversity Journal commissioned Keki Bhote, author of The Ultimate Six Sigma, to design the ultimate diversity assessment tool—one that measures the effectiveness of your diversity efforts by measuring their impact on the bottom line. The Six Sigma Phenomenon In the 1980s, our team at Motorola launched our renowned "Six Sigma" initiative to propel the company toward the summit of quality excellence. Harnessing our Six Sigma techniques, we improved Motorola quality by a factor of 800:1— an already low defect level of 15,000 ppm (1.5%) to a miniscule 20ppm (0.002%) in ten years. In the process of this astounding quality achievement, we registered a savings of $9 billion! Our Six Sigma fame spread all over the world, with hundreds of companies following in our footsteps.
Keki R. Bhote President Keki R. Bhote Associates 493 Woodlawn Avenue Glencoe, IL 60022 Tel: 847.835.2983 FAX: 847.835.1989
krbhote@msn.com page 38
conservatism in the same cause is no vice. In The Ultimate Six Sigma, I paraphrased Goldwater to make the point of the Six Sigma approach: the pursuit of quality for the sake of quality alone is no virtue and the pursuit of quality for customers and long-term profit is no vice. History is replete with examples of companies nearly shipwrecked on the rocks of a narrow quality focus while paying little a ttention to customers, employees, or bottom-line results. The inoculation against this virus is the Ultimate Six Sigma approach.
Af ter eleven years launching and nurturing Six Sigma at Motorola, I retired and formed my own This same focus must be applied in order to consulting company. The experiences of mentoraccurately measure the effectiveness of your ing organizations on four continents compelled diversity efforts. Tying your organization’s diversity me to research and expand the horizons of our Six to the customers, employees—and the bottom Sigma thrust from just quality excellence to total line—is the goal of the Six Sigma methodology. business excellence—a Six Sigma excellence for customers, corporate leadership, organizations, employees, suppliers, and design and service Building the Case industries. My book, The Ultimate Six Sigma, for Six Sigma Corporate Diversity Assessment published in 2001, became a best-seller. The need to assess the quality and effectiveness of diversity efforts within organizations is based upon Why Apply a Six Sigma Methodology six principles: To Diversity? 1. The impact of diversity upon business The concept of measuring the effectiveness of a performance can and should be measured. corporation’s diversity efforts is far from new. 2. There should be a linkage between diversity However, many of the measurement vehicles today achievement and business performance. seem to concern themselves with either Quantity 3. The assessment of diversity effectiveness can Alone (celebrating the metric, rather than the end be quantified. result) or Quality for the Sake of Quality Alone. 4. The assessment process can be repeated None seem to make the leap to measuring the each year to measure longitudinal progress impact of a corporation’s diversity efforts on that in diversity. corporation’s customers and long-term profit. 5. Diversity metrics should include financial performance. In his historic acceptance speech at the 1964 6. However, in order to provide a balance between Republican Convention, Barry Goldwater stated financial performance and diversity progress, that the pursuit of liberalism, in the cause of the role of a company's constituencies— human betterment, is no virtue and the pursuit of Profiles in Diversity Journal
• September/October 2002
1-800-573-2867 www.diversityjournal.com
Measuring Diversity: The Six Sigma Methodology A Changing Landscape distributors and the public—must be considered.
The Six Sigma Project at Profiles in Diversity Journal It’s been a pleasure to assist Profiles in Diversity Journal as they undertake an ambitious project to assess the effectiveness of America’s leading companies in terms of diversity using a Six Sigma yardstick. A comprehensive survey instrument has been designed to score these companies on a 1-100 point scale, as follows: The diversity survey instrument is patterned
key areas impacted by diversity considerations are linked together for a maximum score of 100. These are: 1. Leadership 5. Competition 2. Employees 6. Public 3. Processes 7. Financials 4. Customers and Results
Each of the above seven areas have several success factors by which the degree of diversity achievement can be gauged. In total, there are 26 success factors for an assessor to evaluate. Each success f actor is assigned Diversity Equivalent Equivalent importance on a Score Business Health Sigma Level scale from 1 to 5, 80 to 100 Robust health 6 Sigma with 1 being the least important 60 to 79 Good health, but periodic checks needed 5 Sigma and 5 being the 40 to 59 Poor health, continuous monitoring needed 4 Sigma most important. The assessor 20 to 39 Major surgery needed 3 Sigma within each <20 Terminally ill 2 Sigma company will be after the well-known Malcolm Baldrige requested to rate each success factor by answerNational Quality Award guidelines and my ing a series of questions, which will help your popular Ultimate Six Sigma assessment. Seven organization attach quantifiable values to your
diversity efforts. The distribution of weights (points) given to each area, as well as the weight of importance of each issue, will be the responsibility of Profiles in Diversity Journal. Final scores will be computed by the magazine’s editorial committee with results and designations being awarded each year. I was pleased to accept the challenge of designing an assessment of diversity effectiveness in corporate America and am proud to be associated with Profiles in Diversity Journal’s efforts to stimulate and sustain the efforts of the many companies who have launched meaningful diversity initiatives. PDJ
What effect are your diversity efforts having on your bottom line? The Six Sigma Corporate Diversity Assessment process is now available. For information, contact Profiles in Diversity Journal at 1-800-573-2867.
th wi y l l ita nses g i s D ice ue se L s is U re iplea h t l S Mu
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• September/October 2002
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Raising The Bar
British Council—UK
sun never sets
the
T
INTERNATIONAL CULTURAL RELATIONS MEAN AN INTERNATIONAL DIVERSITY AGENDA FOR THE BRITISH COUNCIL
he British Council is one of the United Kingdom’s largest charities and is its international organisation for educational and cultural relations. Established by Government in 1934, it aims to win recognition abroad for the UK’s values, ideas and achievements, and to nurture lasting, mutually beneficial relationships with other countries.
Defining cultural relations
Broadly speaking, our definition of cultural relations is about deepening relationships with other countries through culture and education, part of this being the ways in which different cultures engage and communicate with each other. This requires a workforce that appreciates, understands and questions their own cultures and identities, while recognising the specific and Cultural relations is perceived by many as a some- relative nature of these. It requires excitement what nebulous activity and, as the British Council’s through rapprochements between cultures, while Head of Equal Opportunity and Diversity, I am valuing and celebrating the diversity of cultural frequently asked to explain what we do. The differences; commitment to the process of British Council has offices in 109 countries, a staff learning and change, which the work of cultural of 7,300 and a turnover of £430 million. We relations constantly brings; political and social receive an annual government grant, which was astuteness; and an understanding of how politics £141 million in 2000–01; the rest of our income is and society are intertwined with cultural relations earned from teaching English, providing examina- rather than being p eripheral to it. tion services, and fees from contract work. Our work is part of the UK public diplomacy effort but Dispelling tired notions we work at arm’s length from government and are Current notions of Britishness are linked to coloapolitical and have an independent Board of nial images and our own research has shown that Trustees. We do not impose our agenda but work the UK is seen and experienced by some as classcarefully to identify shared issues, difficulties and ridden, unwelcoming to foreigners, and weak in achievements. the area of human qualities and social relations.
Fiona Bartels-Ellis Head of Equal Opportunity and Diversity British Council 10 Spring Gardens London SW1A 2BN UK Tel: +44 (0) 207.389.4187 FAX: +44 (0) 161.957.7188
The British Council’s work includes teaching English; running information centres; promoting British education and training; demonstrating the innovation, creativity and excellence of British science, arts, literature and design; and working closely with governments and nongovernmental organizations (NGOs) on reform and good governance. In the area of governance, we promote the development of open, democratic and accountable government institutions through our work in human rights and justice, gender equality, economics and management—including in areas of anti-corruption, corporate governance and standards in public life and participative democracy.
www.britishcouncil.org/diversity page 40
Profiles in Diversity Journal
An ongoing challenge for us in the British Council is the task of changing the unhelpful and erroneous perceptions of the UK with which we are often encumbered. In addition, there is the challenge of developing an organisational culture—in particular a leadership—that supports an internal management more aligned to the standards and behaviours governing so many of our external relationships with clients, customers and partners.
The task in hand Our more formal diversity agenda is premised on mainstreaming, so that we minimise the chance of it falling by the wayside. We are striving for equality and diversity to become integral to policy
• September/October 2002
1-800-573-2867 www.diversityjournal.com
The Sun Never Sets Raising The Bar development and review processes and for widely shared responsibility.
Diversity renewal Four main initiatives—by no means all those we have embarked upon—have provided the platform for our renewed work in the area of diversity. These are underpinned by a revised Equal Opportunities Policy that applies in the UK and globally wherever local conditions allow, and by a new Diversity Strategy. The initiatives are: UK race and gender senior-level targets—We set these targets in July 2001 to address underrepresentation at senior levels and can report significant progress in under a year. Targets outside the UK, where appropriate, are part of our Diversity Strategy. New disability reporting targets have been set to account for significant under-reporting of disability status before considering further ta rgets in that area. Diversity job objectives—We are encouraging all staff to include an objective within their job plan that focuses on diversity. We believe this will significantly help our ultimate aim of mainstreaming diversity. Again we can report progress and examples of such objectives from a growing number of colleagues.
Monitoring and evaluation— Without these, progress cannot be measured and the basis of plans and decisions might be unsound. Substantial revisions have been made to the monitoring of aspects of personal data. Work in this area is likely to be extended, since European Union Directives are now in the pipeline. Using an external consultant, we recently Building lasting relationships: completed an (From the top) In the month of June, evaluation of how football (or in the U.S., soccer) and effectively we cultural diplomacy become inseparable. In represent aspects Tokyo, Japan, fears of rowdy English fans of the diversity of were dispelled by a concentrated effort by the UK in our the British Embassy and British Council. work in Israel Center, celebrating with local residents on the streets of and South Dakar, Senegal as their team wins their opening game. Africa. Below, the Graduate Fashion Week program offers students of fashion design the opportunity to experience Inclusivity new cultural influences, while opening channels of We are communication between designers and educational undertaking institutions in the UK and other countries. substantial work in order to develop a more inclusive organisation that makes better use of the considerable talents of all staff. We want more transparent, fair and flexible human resource policies that can meet the needs of an international organisation in uncertain, competitive times and the demands for accountability and results. So there will be significant revisions that seek, for example, to harmonise terms and conditions for staff and clarify development and progression opportunities.
Diversity network—A network of colleagues outside the UK will help develop our knowledge and understanding of diversity issues and ensure that our work does not concentrate inappropriately on the UK. We are acutely aware of the “them and us” split between those colleagues who are appointed locally—that is, in the countries in which we have offices—and those who are appointed in Our diversity activity over the years the UK and posted to particular countries. We The British Council has had a number of believe that a diversity agenda relevant to the under-reported initiatives in place for many whole organisation must formally involve and draw on colleagues outside the UK. Diversity issues come alive in the British Council’s new interactive Equality and Diversity CD. Released in September, the CD creatively illustrates the Council’s policy on flexible working arrangements, disability, race and gender. Here, Mr. Pompous-Smythe, the opinionated recruitment manager, during an interview gone badly: “Introducing women to the workplace was an idea doomed to failure,” he says.
years. These don’t attract the fanfare of recent diversity activity but exemplify attempts over the years to nurture an inclusive, fair organisation befitting our work in cultural relations. They include: • Benevolent Fund—This was set up to provide immediate and acute financial help in the form of grants and loans to serving and retired staff world wide and, if relevant, to their widowed partners. It responds to people caught up in disasters and is frequently used for support with medical bills. • Families Association—This is open to the partners of those British Council staff who work outside their home country. It briefs members before outward postings, provides a welcome-back pack for those returning to the UK, organises social groups, seminars, workshops and training in the UK and administers a partners’ vocational training grant scheme. • Ethnic minority UK employee network—This network supports the full inclusion and participation of visible ethnic minorities within the organisation. • Local staff associations—These groups establish a dialogue between British Council staff employed overseas and management regarding improvements to relationships and
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Profiles in Diversity Journal
• September/October 2002
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Raising The Bar
I
PricewaterhouseCoopers
n turbulent times a diverse workforce is not just nice to have. It’s an absolute necessity for corporate success. A longstanding belief within our company—one that has become almost fashionable among the spheres of people who follow diversity—is that the balance sheet is tied to diversity. I wholeheartedly agree— good hiring and retention practices beget a solid bottom line.
But it’s just as necessary, it seems, for those companies to remember that diversity consciousness cannot be mandated into a corporate system from on high. Instead, it must be reflective of a belief firmly held by most employees that all employees have something to offer.
EEOC lawsuit settlement, or results of an internal employee audit. Increasingly, other companies are just now seeing how diversity can be a decisive business advantage. A Fortune magazine piece a year ago found that businesses that pursued aggressive diversity programs had outperformed the S&P 500 over the previous three-year and five-year spans. At the same time, a recent University of Michigan study showed that the IPOs of companies with female executives are initially valued higher than those with all-male management teams.
The numbers linking diversity and performance will continue to roll in. The companies that put a premium on inclusiveness will watch the Diversity as Business Advantage numbers closely—and rightfully so. But it’s Many companies are mindful of the importance incumbent upon workers and business leaders of diversity in the workplace, whether by virtue of in the U.S. to realize that diversity isn’t just a visionary management team, an impending ab out race, gender, age or sexual orientation. It’s about differences in the way we think about, see and communicate with one another.
Infusion and Inclusion Diversity is not only the underpinning of our country’s growth as an international business leader in the last 50 years. Statistics show that as the Baby Boomers move into retirement fully 85 percent of the workforce will be composed of women or minorities. This is reflective of the demographic trend in most urban areas toward populations in which blacks and Latinos, traditionally minorities, are actually in the majority. The infusion—and inclusion—of women and minorities into the workplace has meant more
Toni L. Riccardi Chief Diversity Officer PricewaterhouseCoopers One North Wacker Drive Chicago, IL 60606 Tel: 312.298.6401 FAX: 312.298.8771
toni.l.riccardi@us.pwcglobal.com page 42
opportunity as the halo of diversity affects every element of the business process. Philosophies of inclusion and commitment to employee diversity affect the hiring of top talent, working with suppliers, delivering new products and services, and attracting customers. The direct links between sales, the service delivery structure and diversity makes a good diversity program mandatory. In the spirit of diversity, our people were proud to learn l ate last year that PricewaterhouseCoopers was selected one of the top ten places for working mothers by Working Mother magazine. We are the first professional services firm to be named to Working Mother’s Top 10 list. In addition, for seven years in a row, PricewaterhouseCoopers has been recognized as a Top 100 company, a tribute to the leadership of people like Robert Daugherty, Leader, U.S. Human Capital for the firm. This is especially important for us because women account for more than 45 percent of the work force and, according to the U.S. Bureau of Labor Statistics, women will become a majority of workers soon. A study released by the American Management Association and the Business and Professional Women’s Foundation found that companies whose senior management is composed of members of ethnic bac kgrounds, diverse ages and both genders achieve “superior corporate performance.” The study found that firms with a majority of senior executive positions held by women showed the largest sales growth (in 1997, the last year surveyed), averaging 22.9 percent, compared with an average 13 percent
more thannumbers
The numbers linking diversity and performance will continue to be counted, and rightfully so. But it’s incumbent upon workers and business leaders in the U.S. to realize that diversity isn’t just about race, gender, age or sexual orientation. It’s about the differences that make us who we are—that make us each valuable members of the team.
Profiles in Diversity Journal
• September/October 2002
1-800-573-2867 www.diversityjournal.com
More Than Numbers Raising The Bar sales growth in firms where men predominated on the senior management team. In addition, firms with top management team members of non-European descent grew an average of 20.2 percent in the same time frame. Embracing and building upon the critical importance of infusion and inclusion, while recognizing their impact on today’s successful business model, PricewaterhouseCoopers has established a slate of programs designed to nurture the special needs of a diverse workplace. Our firm intends to send a positive, forceful message to the marketplace about the value of our people, our most valued asset. Ever evolving, these programs have come to focus on a number of key areas.
Development, Retention and Rewards PricewaterhouseCoopers has developed an extensive program for generating feedback from its employees. A key element of the firm’s business strategy is creating a developmental culture, a culture where meaningful upward and peer feedback for those in a supervisory role furthers this goal. Using a “one firm” approach, the program generated 74,000 individual feedback forms and feedback reports to 1,755 partners and 5,935 staff in fiscal year 2002. In addition, our “people strategy” dictates that we listen to our associates regularly and that we incorporate accountability for staff satisfaction in our Balanced Scorecard. Toward that end, the firm developed a Pulse Survey and deployed it to 50% of our employee population, achieving a 55% response rate. Through this feedback, we learned that our employees appreciate our connectivity and teaming initiatives and up to 60% agreed that the teaming initiat ive had a positive impact on morale in their group. Finally, the firm’s compensation philosophy links rewards with individual performance, firm strategy and business results.
Campus Recruiting It is certainly no secret that the accounting profession has taken its lumps in the wake of national scandal and the ever-probing eye of the news media. PricewaterhouseCoopers has devised a recruiting strategy aimed at improving the image of the profession while continuing to attract the very best talent. Multi-faceted in its approach, the recruiting campaign features high school outreach programs reaching more than 600,000 students through our participation in Making College 1-800-573-2867 www.diversityjournal.com
Count, an e-mail newsletter, and Junior Achievement; through a recruiting marketing campaign targeting Generation Y; through a Quality Project study on 1998/1999 recruiting classes and the last three years of partner admissions; and through a new minority recruiting strategy in which the firm had a 95% INROADS Intern Conversion Rate to full-time hires.
Learning and Education The concept of “managing workplace diversity” strives to ensure that when individuals are hired, they should be able to feel comfortable that they were chosen because of their unique qualifications. Bearing this in mind, PricewaterhouseCoopers has made a significant investment in professional development experiences. These experiences include PwC University with the New Partner Experience and the Partner Residential Experience. These events have created real momentum for renewing the partnership culture and facilitating new behaviors. The firm has also implemented improved new joiner programs and has completed a strategic assessment of our Learning and Knowledge environment. The result has been a stronger framework for learning and a yield of specific recommendations for improving the impact of learning on the business performance of th e firm. Along these lines, we believe that companies need to build the systems that expose all employees to diversity issues. At PricewaterhouseCoopers, on-line diversity awareness training programs are being supplemented by weaving diversity issues into existing courses, showing their relevance to all components of the business process.
Diversity and WorkLife The shifting economic tide is forcing professional services firms to heed some of the same advice that they dispense to clients regarding employee personal development and job flexibility for workers. PricewaterhouseCoopers’ approach to Diversity and WorkLife issues has resulted in strategies that support an inclusive work environment while respecting individual perspectives and diversity. Towards this end, the firm launched seven new “Minority Circles,” part of an internal initiative designed to help women and minority employees achieve their personal career goals. The “Minority Circles” have given me a fresh avenue to reach out to other female colleagues. The circles provide role
Profiles in Diversity Journal
• September/October 2002
Toni L. Riccardi, Chief Diversity Officer of PricewaterhouseCoopers, and Michael J. Weiss, renowned demographer and author of The Clustered World and The Clustering of America, will present the results of a new study, "The Diversity Survey," at the PricewaterhouseCoopers Chief Diversity Officer Summit, October 23-24, 2002 at the National Press Club in Washington, D.C. The survey, conducted for PricewaterhouseCoopers by NFO research, is based on mailed interviews of 1,930 Americans drawn from a randomly selected national sample of 5,000 people. It explores the "state of diversity" at U.S. companies and organizations today. The 2002 Summit is the eighth annual Executive Roundtable Diversity event hosted by PricewaterhouseCoopers. A complete narrative report on the 2001 and 2000 Executive Roundtables can be viewed or downloaded by visiting www.diversityroundtable.net. models, mentors and networks to women staffers across all lines of service, involving more than 400 employees in 16 locations across the United States. Our firm also produ ced an instructional CD on “Mentoring Across Differences” which has been added to the PwC University web site. In addition, the firm launched the Diversity Index to improve services in areas such as representation, conversion of interns and communications. Another program, “Mentoring Partnerships,” helps higher performing women and minorities as they ascend into partnership roles in the firm. It also prov ides one-on-one mentoring and career development by matching women and minority managers with partner leaders. Our firm has a stated goal that women will make up 30 percent of our new partner class by 2004. Just as important is the role of diversity in our leadership structure. It has been my privilege to serve PricewaterhouseCoopers in the position of Chief Diversity Officer (CDO). The position is strategic and gives me the necessary latitude to help assure that diversity issues are recognized and measured internally and externally. Above all, diversity is about appreciating the differences in how we all think, see and interact with each other. Cultural and cross-cultural understanding is essential to understanding not only others, but who we are as individuals. Valuing diversity means recognizing tha t every individual needs to be accepted, understood, valued and well utilized. Only then will the foundation be in place for a company to soar in its valuation—both on Wall Street and as a PDJ corporate citizen. page 43
The Changing Landscape
Simmons Associates, Inc.
ten redflags
in a diversity initiative Flag #2: The “Blah” Business Case If you’ve worked hard on a diversity initiative, have made some progress, but aren’t seeing adequate results ... if your CEO has said all the right things and blessed your plan, but other executives and mid-level managers are sti ll stalling ... a likely culprit is the lack of a business case. More specifically, the lack of a compelling business case. The difference is crucial.
most use to gauge progress, had changed little— particularly at senior levels. Diversity surveys and focus groups indicated that perceptions of disparities were alive and well. Why? Because line management wasn’t changing. Why? In short, because theories are not compelling to business people. Facts are.
To keep things in perspective, there was a time when most companies didn’t have a stated business case for diversity. Only within the last 10 years have practitioners realized that, without showing the bottom line impact, diversity would be relegated to a “nice to do” not “need to do” effort. So we developed and shared the theories of the connection between diversity and the bottom line.
Practitioners return to us today, even more frustrated. They report, “We realized we needed more data, so we gathered stronger, more explicit data from published reports that supported our claims—with dollars attached. As a result, the executives did pay greater attention. We developed and submitted plans with a vision, definition and business case—even detailed action steps and timelines. The executive team approved the plans and presented them publicly. The CEO disseminated a letter, and we presented the information in diversity training, which every manager attended. Leadership agreed to include diversity goals (still mostly representation—a problem addressed in our previous article, Red Flag #1, March/April 2002) in our performance plans, and tie results to managers’ bonuses.”
Circa 1995:
Terrence R. Simmons Founder, Chief Executive Officer and Managing Partner Peggy Hazard Managing Director and Executive Committee Member Simmons Associates, Inc. 31 N. Sugan Road, P.O. Box 712 New Hope, PA 18938 Tel: 215.862.3020 FAX: 215.862.1457
www.simmonsassoc.com page 44
The business case for diversity theories emerged and went something like this: “The demographics are changing (haul out the Hudson Institute’s Workforce 2000 Report), projecting a significant increase in the diversity of the U.S. labor pool. In order to compete, therefore, we need to learn to appreciate diversity and be inclusive. Business is now global, so we need to improve our understanding of other cultures. If we do not value diversity, our minority employees will have poor morale, which in turn will lower productivity. Our public image will be impacted if we don’t come out as a diversity-friendly organization.” And then, of course, there are those pesky, but very real issues of legal suits and retaining government contracts (those never needed much explaining). These theories were successful in gaining some acceptance that diversity initiatives might be a good idea. Departments were set up, councils were created, employee networks formed, etc. After a few years, however, it was clear not much of substance had really changed. Employees still struggled with the same issues. Representation, which Profiles in Diversity Journal
Circa 2002:
All this effort, they say, and still one critical problem remains: “Leadership stands behind the concept (we really feel they ‘get it’) but middle management is inert. Oh, they say the right things and act in a way that placates us (Human Resources)—or whichever executive is actively supporting the effort—then summarily ignore the topic, until ‘the HR police’ come to call to ‘check on the numbers.’ Then the managers say to us, ‘This is great—really, I’m all for it, but I’m crazy busy.’ And invar iably, ‘How can we become more diverse when you don’t give us diverse slates?’” What you’ll note is what the managers are really thinking: “Your business case for diversity sounds
• September/October 2002
1-800-573-2867 www.diversityjournal.com
Ten Red Flags The Changing Landscape good, I see the corporate intent here, but frankly, I still don’t see how it’s going to help me do my job better. Blah. Back to my real job.” Let’s think of it this way: with a diversity initiative, what we’re essentially asking managers to do is change their behavior. If you have read “Who Moved My Cheese?” you’ll recognize that we live in the land of Hem and Haw Managers! They aren’t changing because the reports you’ve been giving them essentially say, “the cheese is going to dwindle!” or “Look! The cheese is dwindling (over there)!” or “In five years there will be no cheese!” and ultimately the connection, “Diversity will protect our cheese!”
Blah
vs.
WOW! Business Case
Recruiting/Retention The war for talent requires us to be an employer of choice for the new (more diverse) workforce.
Recruiting/Retention Client A: Women make up 50% of our annual entry level hires. Within 10 years, that number has consistently dwindled to 25 percent. The cost of this turnover, including training, recruiting, etc., is $4 million per year. We expected this to be a work/family issue, but focus groups indicate that women perceive a glass ceiling.
By 2008 70 percent of the new entrants to the workforce will be women and people of color.
Individual department head: The turnover among women who meet or exceed their performance expectations in your department is 35 percent higher than the rate for comparable men. You need to find a way of saving the company approximately $281,000, the amount you are costing us in turnover of female talent.
If we are not diversity friendly, employees will leave. Turnover costs can reach 1.5-2 times salary.
Client B: We’ve faced significant turnover since 1995, especially among older store managers. Turnover is costly, and buyers aren’t productive until the 2nd year of service. In one-on-one interviews, executives reveal that we have to inflate our offers (20 percent above the market) due to our "insular" reputation. Additional costs are incurred because we have inflated raises to retain diverse employees, who say they feel marginalized. The total amount we lost averages $450,000 per year.
But Hem and Haw aren’t moved, because they are surrounded by cheese! Or at least they are so The difference between a busy they don’t have time to worry Blah and a WOW Business Case— about minor reductions or general These WOW cases are examples from Client C: Exit interviews indicate that a majority of regrettable losses in trends. They’re thinking “This actual client situations. It’s not a the Finance department indicated that their manager lacked the skills to doesn’t hold a candle to meeting coincidence that in each of these cases, appreciate and fully utilize their skills. Diverse employees were the ‘xyz’ quota that the boss checks significant changes were made. 40 percent more likely to state this. This last year the turnover costs for on every week.” They don’t even know the department were $320,000. anyone who has lost cheese, except the lowermiddle level manager who was foolish enough to sexually harass all three women Sales/Customer Service Sales/Customer Service who reported to him. “You’re telling them to Customers are more Client A: Within 12 months of initiating a marketing campaign, including change, to scurry around based on what in diverse and we need to new packaging, point of purchase materials and advertising targeted at the effect appears to be baseless. Not only that, understand their needs. Hispanic market, our main competitor gained $12 million in incremental but it’s change in an area that will be In order to do so we revenue. especially difficult, being that it involves a need diverse people in subject I’m really not comfortable discussing. our organization. Client B: After a recent sales presentation, our prospect informed us that Nah. I’ll keep my head down until it passes.” they had selected another vendor. When asked why, they noted that while There are significant our proposal was impressive, our team was non-diverse, and that did not To motivate behavior change, you need a dollars to tap among reflect their values. WOW business case: one that shows Hem diverse populations. and Haw that their cheese is dwindling, how The purchasing power Client C: (Regional Sales Manager—Southern Territory) In our retail it’s dwindling, at what rate, and the connecof diverse groups: business in the South, 30 percent of the customers speak Spanish, and little tion between that and diversity—that’s a African American English. We do not have the staff to assist them, and are having trouble WOW business case! Imag ine applying the $572 Billion recruiting and retaining employees who could do so—since they don’t want illustration to the right to teamwork, morale Latino/Hispanic to be “alone.” Also, frustrated customers usually leave the store. If we could and productivity, public image or global $452 Billion solve this problem, we could increase the store’s traffic by at least 20 percent. business efforts. Asian American $253 Billion So what to do to get to a WOW Business Case? Get specific. Is this a long, arduous process? You bet. But Gay/Lesbian Imagine applying Six Sigma rigor to diversity issues. Go through every it is one of the most important investments $445 Billion department, every functional area, and drill your data collection and analysis you will make to insure a successful diversity Over 1.7 Trillion dollars down to every managerial level. Review the results with each manager and, to initiative. One final note: if, after conducting between diversity and every extent possible, quantify the impact of diversity on their particular area. a rigorous analysis—whether company-wide the bottom line, we Then show them how their actions affect the numbers, and what or within a department—if neither you nor recommend you abandon, they might do to make improvements. your manager fi nd a compelling connection or at least postpone, your efforts. PDJ 1-800-573-2867 www.diversityjournal.com
Profiles in Diversity Journal
• September/October 2002
page 45
Raising The Bar
Bernard Hodes Group
presenting
a united front R Five Florida corporations seeking to attract and retain diverse talent find power—and economy—in a unique recruitment alliance.
esearch on diversity has yielded an indisputable fact: prospective employees seek out jobs where people like them hold senior-level jobs. Given that more than 13.3 million immigrants arrived in the U.S. during the 1990s, and that the pop ulation growth in the U.S. over the next 25 years will be concentrated among people of color, filling posts within the dated modus operandi of homogenized work cultures is simply bad business. Failing to capitalize on the best practices of diversity nowadays means jeopardizing your company’s bottom line.
While much can be said for the positive changes made in the hiring and recruitment policies of the co rporate community and the nation at large, there are many areas for improvement. According to Catalyst, a nonprofit research and advisory organization working to advance women in business within the Fortune 500 companies, only 417 have women on the board of directors. Only 177 (35 percent) have two or more women on the board, and 83 companies (17 percent) have no women at all on their boards.
Annette Merritt Cummings Vice President and National Director Diversity Services Bernard Hodes Group 209 Mallet Hill Road Columbia, SC 29223 Tel: 954-816-5031 FAX: 803-462-9374
acummings@hodes.com page 46
There is als o the glaring fact that very few of these board members are women of color. According to “Barriers to Workplace Advancement experienced by African Americans,” a report by the Sloan School of Management, Massachusetts Institute of Technology, over the last 10 years, the proportion of African-American men and women holding management positions has only ranged between five and seven percent. So how does one b est seize on the valuable resources of today’s multi-ethnic and multiracial talent pool? Best practices indicate that diversity research is essential. Research has been called a “loss of innocence;” it is a critical first step to the development of a diversity communications or diversity-branding plan. The key to developing a Profiles in Diversity Journal
strategy is finding out what current employees think about the existing diversity attitude in the company, and about their experiences both before and after hire.
Once those benchmarks have been established, the next step is developing an on-target diversity message that effectively positions your company as an employer of choice. In South Florida, Ryder, Royal Caribbean Cruises Limited, Office Depot, Inc., NCCI Holdings, Inc., and Florida Power & Light Co. wanted to do just that. They were faced with perceived and actual barriers to the recruitment and retention of minority candidates and they were all working with a limited budget. The objective was to attract and retain a diverse staff to the area in a cost-effective manner. Our strategy entailed the formation of a Florida corporate recruitment alliance: The South Florida Avenue Coalition. This unification would prove more effective for exhibition at national professional association meetings, conventions, and career fairs—specifically those sponsored by Hispanic and African-American associations. Creating the coalition would also maximize exposure of Florida-based corporations, while achieving cost benefits resulting from economies of scale. We n eeded to create interest in the cultural activities and family oriented environment that could be found in the area, propelling individuals to consider relocation to and career opportunities in Florida. The coalition attended and marketed their unified image at the 2000 and 2001 National Black MBA Association and National Society of Hispanic MBAs. We promoted the participation of The South Florida Avenue Coalition to conference attendees with special advertising and public relations activities, and branded the companies as employers committed to building diversity. On
• September/October 2002
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Presenting a United Front Raising The Bar both occasions a section of the exhibition halls was converted into “South Florida Avenue.” Booth space, advertising, and public relations displayed a consistent message, which branded the coalition and their commitment to diversity. “It is a business imperative that our company reflects the growing diversity of our global community and enriches our customers’ experience by drawing from each individual’s unique perspective on life and the business environment. The South Florida Avenue is one approach that assists us in achieving this effort,” said Ann Byron, senior vice president of human resources, The Sports Authority, Inc. The South Florida Avenue Coalition established strong relationships between the candidates, NBMBAA, NSHMBA, and the coalition companies. They also made eight hires by the first quarter of 2002, and at a much lower cost than if they had used executive search firms. Even more notable was their ability to expand the reach of individual recruiters by sharing resumes collected at the conferences. Dionne Hall, 28, decided to leave her previous employer for lifestyle reasons to accept an offer from Coalition member Florida Power & Light Company. She began work as a human resources consultant in February 2002. Hall earned her MBA from American University and in 2001 met recruiters from FP&L while attending the National Black MBA Career Fair and strolling down the South Florida Avenue. “I was seeking opportunities in the Southeast and didn’t know a thing about FP&L when I attended the National Black MBA. I spoke with several other companies but FP&L responded to my interest most seriously,” said Hall.
South Florida Avenue. Garrett used that meeting at the National Black MBA Career Fair to begin the dialogue with the company. “When I met Connie Goldman on the South Florida Avenue in 2000, it was my first exposure to Office Depot. I had been living and working in Michigan for 12 years and targeted Florida corporations for lifestyle reasons,” said Garrett. Garrett was offered his current position, mana ger of stores finance, just prior to September’s National Black MBA Career Fair, and began working for Office Depot shortly thereafter. He earned his MBA in 1986 from the University of North Carolina at Chapel Hill and attended many career fairs seeking a position.
Dionne Hall met recruiters from coalition member Florida Power & Light Company while attending the 2001 National Black MBA Career Fair and strolling down the South Florida Avenue. She now works as their human resources consultant. By the first quarter of 2002, the Coalition had made eight new hires, and at a much lower cost than if they had used executive search firms. Even more notable was their ability to expand the reach of individual recruiters by sharing resumes collected at the conferences. “It is a business imperative that our company reflects the growing diversity of our global community and enriches our customers’ experience by drawing from each individual’s unique perspective on life and the business environment. The South Florida Avenue is one approach that assists us in achieving this effort,” said Ann Byron, senior vice president of human resources, The Sports Authority, Inc.
“This has been a very positive and successful venture for NCCI,” said Therese Swanberg, chief human resources officer, NCCI Holdings, Inc. “The united effort of the seven companies demonstrates that Florida is more than a vacation spot—we’re a serious business community with great opportunities. For people who are relocating it drives home the fact that they and their spouses have multiple options.” The year 2002 marks the third year in a row the seven South Florida-based corporations are leading change and improving the diversity in their ma nagement ranks through their diversity recruitment coalition.
Augustine Garrett, 42, met Office Depot recruiter Connie Goldman in 2000 during the first year of the company’s participation in the 1-800-573-2867 www.diversityjournal.com
This year the Coalition includes: Burger King Corporation, Citrix Systems, Inc., Florida Power & Light Company, JM Family Enterprises, Inc., NCCI Holdings, Inc., Office Depot, and The Sports Authority, Inc. Representatives from most of the seven companies will attend both career fairs: in September the National Black MBA Association in Nashville and in November the National Society of Hispanic MBAs in Phoenix.
Profiles in Diversity Journal
• September/October 2002
For the members of South Florida Avenue, the Coalition met the needs and challenges of each of their companies. In our role as solutions providers to our clients, we are often asked for best practice solutions. Of course, our solutions are based on the individual client company culture, needs and objectives, and on a thorough assessment process. PDJ With over 22 years of experience, Annette Merritt Cummings holds an MBA from the University of Detroit-Mercy and a bachelor’s degree in communications from Cleveland State University. She has completed her diversity practitioner training at the American Institute for Managing Diversity and the National Multicultural Institute. She recently authored an article, “Diversity and Change Management,” for the July issue of Black Enterprise and is featured in the Rising Stars section of that same issue. page 47
Raising The Bar
Anthem Blue Cross and Blue Shield
navigatingthe
New World
ANTHEM IS SETTING A STRATEGIC COURSE FOR MANAGING WORKFORCE DIVERSITY
T
he business world has changed dramatically in the past decade and will continue to undergo major transformation. Among Americans age 70 and up, there are roughly five Caucasians to every one person of color. For Americans under 40, that ratio is 2-to-1. For children, who are now under 10 years, the ratio is even smaller—1.5-to-1. Today, women and people of color make up the majority of the workforce, even though men still fill the majority of leadership positions. By 2008, women and people of color will represent about 70 percent of new entrants to the workforce (Bureau of Labor Statistics).
David L. Casey Diversity & College Relations Manager Anthem Blue Cross and Blue Shield 220 Virginia Avenue Mail Point IN21A-503 Indianapolis, IN 46204 Tel: 317.287.5617 FAX: 317.287.8642
david.casey@anthem.com www.anthem.com page 48
Similarities are defined as a set of core values that people strive to live on a daily basis. Differences are defined as the opportunities to internalize those values and relate them to who associates are, both on and off the job.
Diversity is that aspect of the organization that represents the different thought processes, backgrounds, characteristics and skill sets that each associate brings to the pursui t of the company’s common mission. Anthem recognizes human diversity as the personal preferences, life experiences and physical qualities of its associates, including race, gender, differently-abled, It’s a New World order, and at Anthem Blue Cross marital/family status, sexual orientation, ethnicity, and Blue Shield, a new kind of diversity manageage, and military experience. Anthem recognizes ment philosophy will guide the organization today cultural diversity as the fundamental beliefs, and in the future. attitudes, assumptions, values and personal characteristics of associates, including language, "As the dynamics of the workforce continue to learning style, historical differences, cross-cultural increase in complexity, it is imperative that we communication, religious beliefs, work style, life create and sustain an organization that works style and ethics/morals. naturally for everyone, encompassing and valuing our human and cultural differences. Our ability "I joined Anthem in March 2002. I am visually to effectively manage that diversity will greatly impaired and Anthem has been very accommodatenhance our ability to realize the full potential ing for my impairment. They have provided me of all our associates," said President and CEO with the adaptive equipment to do my job. Larry C. Glasscock. "We subscribe to common Anthem is a great place to work for people with values and a shared commitment to improve the disabilities," said Michael Francisco, a social workhealth of the people we serve. The result is that er in Utilization Management in Ohio. both associates and our organization achieve the highest standards of performance and po tential." When a staff is representative of a company’s diverse customer base, it represents an opportunity Anthem is the nation’s fifth largest publicly traded to truly understand the challenges customers face health benefits company, with 10.8 million and to bring unique perspectives to conducting customers in nine states and 19,000 associates. daily business. The company is committed to creating and sustaining a culture appropriate for the full Developing the plan utilization of a diverse workforce, thereby The goal of affirmative action is upward mobility enhancing the company’s competitive advantage. for women and minorities. The goal of diversity This commitment is grounded in the company’s management is full utilization of human resources definition of diversity as "any collective mixture in an environment that works naturally for all that is characterized by similarities and differences associates, ideally eliminating the need for facilitaand a true desire to make the most of those tive efforts targeted to women and minorities. similarities and differences." For Anthem, the foundation of its new diversity
Profiles in Diversity Journal
• September/October 2002
1-800-573-2867 www.diversityjournal.com
Navigating The New World Raising The Bar management plan is already in place. One of the company’s four strategic objectives is to become an employer for whom people want to work and one of the company’s six operating imperatives is to develop its associates. For the past four years, Anthem has conducted an annual survey through the Great Place to Work Institute.® The survey of associates asks how the company is doing overall, and by the division or department where they work. The company demonstrates its commitment to associates not only by asking and measuring how associates feel, but also by reporting the results to them, taking action, and then showing improvement over time. Creating a three-to-five-year strategic plan to manage diversity was a logical next step. Development began at top management meetings, where baseline expectations about diversity management were set and the team’s commitment secured. Meetings were held with associates from around the country, at all levels of the organization, to share information and gather thoughts and ideas about managing diversity. External research was conducted on today’s business environment—what is and isn’t working for companies. Best practices were benchmarked from Fortune magazine’s "Best Companies for Minorities" and the best companies for diversity as recognized by Diversityinc.com. Research was also conducted through the American Institute for Managing Diversity, a leading think-tank in diversity management. From the meetings and research, a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) of the company’s current culture around workforce diversity was prepared. More feedback was gathered and the plan developed. Anthem’s key strategies include the following: • Ensuring companywide conceptual clarity of the issues involving workforce diversity; • Understanding the current cultural climate across the organization; • Fostering a long-term perspective; • Identifying and engaging change agents/ champions; and • Planning for the necessary people and financial resources to carry out this effort. 1-800-573-2867 www.diversityjournal.com
While it’s great to have a plan, it won’t do you any good if you can’t implement it. Getting commitment for such a plan from the company’s executives is key for any organization. Anthem President and CEO Larry Glasscock is a visible and vocal supporter of the company’s new initiative. After gaining commitment from Glasscock and the company’s executive team, the strategic plan was presented to Anthe m’s larger executive cabinet, which comprises the company’s top 50 executives, and subsequently announced to associates via internal communications vehicles.
"As the dynamics of the workforce continue to increase in complexity, it is imperative that we create and sustain an organization that works naturally for everyone, encompassing and valuing our human and cultural differences.”
• Outreach and relationship building for college recruiting is ongoing through programs such as INROADS. Anthem has employed INROADS interns in Human Resources, Finance and Corporate Communications. INROADS helps businesses gain greater access to diverse talent through the continuous leadership development and placement of outstanding students of color in internships at North America’s top corporations, firms and organizations. • Workforce diversity education has been included in Anthem’s new hire and new manager orientation programs. • A "diversity council" has been convened in Anthem’s East region that includes the states of Connecticut, New Hampshire and Maine. Five subcommittees of the council will examine staffing, best practices, communications, culture/associate development and policies and pro cedures. Once fully functional, the council model will be replicated in the company’s other regions; ultimately, delegates from each regional council will comprise a national diversity council.
Larry C. Glasscock President and CEO Anthem provides financial support for Coinciding with this diversity-related initiatives in the communities renewed effort to manage workforce diversity is it serves. These work alongside health-related the launch of Anthem’s Culture Forum. The community sponsorships and include the mission of the Culture Forum is to encourage support of: associates to live Anthem’s core values in their • Training, Inc., a nationa l not-for-profit everyday work life, contributing to a unifi ed, organization that provides un- and underpositive and productive culture. Its slogan, employed individuals with job and life skills "Spirit of One, Strength of Many," speaks to training, equipping them to become Anthem’s commitment to diversity and demonself-sufficient, and strates the importance the company places on • The United Negro College Fund, which individuals, as well as their collective strength as enhances the quality of education by a unified team. providing financial assistance to deserving students, raising operating funds for member Milestones of success colleges and universities, and increasing access Anthem’s goal is to be recognized as a company to technology for students and faculty at whose culture fosters workforce diversity as an historically black colleges and universities. integral part of its business strategy—a strategy that recognizes that the company’s customers There is no set measure for managing a diverse will be best served by a workforce that not only workforce, but there are measurements for the reflects the markets in which Anthem does practices that drive it. For Anthem, progress will business, but is also empowered. This is be measured through goals related to desired demonstrated by strategies that enable the levels of diversity throughout the organization, acquisition, retention, development and hiring, turnover, retention and absenteeism empowerment of a diverse associate population. rates, and even better associate satisfaction ratings. There will be some challenges along While some initiatives, such as the Great Place to the way. However, Anthem remains focused Work Institute® survey, have been ongoing, on meeting the needs of its associates and activities outlined in the diversity management the challenges of a dynamic and changing plan are well underway: marketplace. PDJ
Profiles in Diversity Journal
• September/October 2002
page 49
Raising The Bar
handinhand
Cingular Wireless DIVERSITY
at CINGULAR:
W
WITH BOTTOM-LINE THINKING
hen I was asked to be the first President and CEO of Cingular Wireless, I realized I was handed a once-in-a-lifetime opportunity. I could create an entirely new co mpany from topto-bottom, a company with no legacy holdovers in terms of policy, culture, structure and—most important of all—staff.
develop as wide a frame of reference as possible. I also wanted the best talent I could find. What we ended up with was not only a staff of individuals at the top of their game, but with a broad range of professional backgrounds as well.
For example, Thaddeus Arroyo, our Chief Information Officer, who is Hispanic, oversees our internal IT infrastructure. But Thaddeus is not just an analytical type. He spent several years as a senior marketing executive for an airline reservation company. Joaquin Carbonell, our General Counsel, is from Cuba originally. He’s our ranking expert on all matters legal and regulatory, but he also brings a business background from the wireless operations he supervised in Europe and Latin America. Mark Feidler, our Chief Operating Officer, contributes a wide-ranging background that includes investment banking, corporate finance and corporate law. Of the three women on For me the solution was to field a staff that was as our executive staff, two have operations experidiverse as the nationwide market we were trying to ence, although their current responsibilities lie in reach. I felt that only through a diverse staff could other areas. Kathleen Dowling is our Senior Vice we hope to develop a corporate environment that President of Customer Relations, and Virginia Vann is our Chief Marketing Officer. And Carol was as adaptable as it was creative, that could Tacker, our Corporate Secretary, brings the unique create services that ordinary consumers and businesses, as well as the technical-minded, could perspective of a Native American. Rickford Bradley, who is African-American and our Senior be comfortable with. Vice President of Human Resources, also has a diverse professional background that includes Now, I don’t claim to be a great student of diversity. Quite frankly, I was drawing on my own operations, finance, and business development. personal experience. I was born and raised in London, which becomes immediately apparent as Put all of these people together, which we do soon as I speak. In fact, when I first arrived in the every Monday morning for our weekly staff meeting, along with the other members of our U.S., I had the impression that most Americans widely experienced staff, and you get a group of expected me to quote Shakespeare. people who challenge each other constantly. As Like many immigrants, I tried to make a virtue of Rick Bradley told me recently, he never fails to necessity. I realized as a newcomer that I could see marvel at the wealth of perspectives that these meetings produce. things with an entirely new frame of reference. And time and again this different perspective added value to my contribution. So, when it came To ensure this level of diversity throughout the to putting the Cingular staff together, I wanted to company, Rick and Gloria Johnson, our Vice Cingular, of course, is a joint wireless venture of SBC Communications and BellSouth, and when it first breathed life in October 2000, it was absorbing 11 brand names from around the country, such as Cellular One and SNET. But my mission was to create a new entity, a na tionally recognized company. The firm had to hit the ground running, and it had to create instant excitement about the Cingular brand. This was no easy task in an industry that was changing by the month, and in a market that asks consumers to embrace a technology that can be confusing and complex.
Stephen M. Carter President and CEO Cingular Wireless Glenridge Highlands Two 5565 Glenridge Connector Atlanta, GA 30342 For information, contact: Jennifer Bowcock Cingular Wireless Public Relations Tel: 404.236.6319
jennifer.bowcock@cingular.com page 50
Profiles in Diversity Journal
• September/October 2002
1-800-573-2867 www.diversityjournal.com
Hand in Hand with Bottom-Line Thinking Raising The Bar President of Diversity, have helped us set up a road map for the goals and directives we want to achieve in our employee mix. Basically, those goals can be boiled down to three key areas: demographics, knowledge and values. Demographics, of course, is what is classically known as diversity. It denotes the range of origins, creeds, race and gender that make up a society. Knowledge includes experience and educational background. Our goal in this area is to have the kind of depth throughout the company that we are so fortunate to have at the highest levels of management.Values, the third area, runs the gamut of human experience. This key area is perhaps the hardest to define because it is so dependent on the individual. Basically, it’s a sense that whoever you are and whatever ideas you bring to the company, you will feel that you are in an environment where your contributions are welcome and appreciated.
We know that one size doesn’t fit all. Our communications infrastructure may be singular, or Cingular in our case, but we will adapt that infrastructure to the individual, not the other way around. We will work to make the individual customer comfortable. Or, as some of our staff members put it, we are a fun and approachable company. We also know a healthy work environment is instrumental in achievin g this comfort level. Brand loyalty begins at home, and if our employees feel good about what they are doing, if they feel they are in an environment that welcomes their ideas and their individuality, then these positive feelings will be reflected in our products.
Last November we surveyed our 35,000 employees to see if indeed we had created that kind of environment. We wanted to know how we ranked aga inst the culture of diversity that we were trying to achieve, and how well we satisfied We have engaged diversity consultants to the expectations of employmake sure we are on the right track. ees. Some 70 percent of And we are continually taking the “Of course, this kind of success all employees has a lot to do with making a measure of our work to make responded. As we big splash in the areas of sure it is paying off—both in anticipated, we still terms of a healthy work envihad room for advertising and marketing. ronment and our bottom line. improvement. But But it has even more to do with Because when all is said and the overwhelming making an infinite number of done, the ultimate gauge of our response was very little splashes among consumers efforts is the profi tability of our positive. Remarks company. If we can retain and grow and businesses everywhere.”such as, "I feel really our customer base—that is, if we are engaged here," "This is a good successful in a very diverse marketplace—it place to be," and, "This business is very means we are succeeding as a diverse company. balanced," represented the general tenor of the survey. We asked the responders to identify In regard to the bottom-line part of the equathemselves by gender and race so that we could tion, we have no doubt it is working. Today, get a sense of how we were doing among Cingular is a well-known brand with 22 million various groups, and to our great encouragevoice and data customers. We are in 43 of the ment, the level of positive responses was similar top 50 markets nationwide and cover more t han across all groups. In fact, our results compare 93 percent of the key urban areas. We rank favorably with companies touted among the number 2 in the industry in terms of customers, best places to work. and have our sights set on becoming number 1. Other metrics also indicate that we’re on the Of course, this kind of success has a lot to do right track. Ou r overall numbers in terms of with making a big splash in the areas of demographics stand up very well to any compaadvertising and marketing. But it has even ny our size, particularly at the highest levels of more to do with making an infinite number of management, such as I described above. little splashes among consumers and businesses (Cingular would rank among the Fortune 150 everywhere. Our message—from our custome r companies if it were publicly owned.) offerings to the orange splash stick man that is our logo—is that we are there to fit Despite our young age as a company, we’ve the individual. received a number of awards for our diversity 1-800-573-2867 www.diversityjournal.com
Profiles in Diversity Journal
• September/October 2002
efforts. These include the Eagle Award from the National Disability Rights Advocates, and the Corporate Star Award from INROADS, an organization that identifies and places talented minority students in business and industry. And in certain sensitive areas, we have been very aggressive about establishing a fair and equitable policy. For instance, before the company was even a year old, we instituted domestic partner benefits, which applies to unmarried or same-sex couples. Some two-thirds of Fortune 500 companies have this benefit, but only onethird of those apply it to same-sex couples. In years to come, diversity will be even more important for Cingular, especially given the prospects of our industry. Despite the vast progress made recently in telephony, we are still on the brink of the communications revolution. Soon those little phones that people carry around will do much more than just bring them the voices and data they need; these phones will be the means toward constantly widening our worlds, providing us with new experiences, new cultural interactions and new opportunities. At the same time, as computing power accelerates, our personal phones will become more and more like portable offices and private dossiers. In other words, our phones will become much more connected with who we are as individuals and how we wish to live our lives. With this exciting future in mind, Cingular is looking forward to playing a major role in what is going to be a sea change in commerce and human interaction. But we can only do so if we mirror the variety of people who comprise this marketplace. Only if we are constantly attuned to the widest range of perspectives available can we respond to the current requirements of our customers and anticipate their future needs. And the only way to do this is with a workforce that is diverse not just in terms of demographics but in terms of knowledge and values as well. This is the approach we take at Cingular. Diversity has been our lifeblood, the thing that has made us a success—we see no separation from our work to maintain our divers ity and our efforts to improve our bottom line. And as we work toward becoming the best wireless company in the world, we are betting our future on a team in which every staff members feels that his or her contributions have an impact PDJ and move us forward. page 51
Raising The Bar
Ford Motor Company
back to
basics
Facing a tough new business environment, Ford shifts its approach, but not its internal focus—only a diverse and talented workforce can generate the ideas and energy to turn its business around.
T
his has been a difficult year for automotive manufacturers. The turbulent North American economy, international tensions and increasing competition have been factors in the evolution of a tough new business environment. At Ford Motor Company, we’ve certainly experienced our share of financial and other challenges—and we’re in a fight to regain both profitability an d customer confidence. To accomplish these goals, we have embraced a "back to basics" approach to our business. This major corporate transformation has focused our efforts and attention around a vital few priorities essential to designing, building and marketing great cars and trucks. As part of this process, we’ve reaffirmed our commitment to the values and practices that have allowed us to be an industr y leader for nearly 100 years. "Back to Basics" already has led to many major changes within our company.
Nick Scheele Chief Operating Officer Ford Motor Company One American Road Dearborn, MI 48126-2798 For information, contact: Rosalind Cox Manager, Diversity and Worklife Planning Tel: 313.248.7505
rcox4@ford.com page 52
The connection between these employees and the future of our business is clear. Only a diverse and talented workforce can generate the ideas and energy that have the power to turn our business around. Our ability to leverage those differences is what we believe will define Ford in the future. This is why we never considered shifting our focus on diversity. To the contrary, we have accelerated our efforts. The Executive Council on Diversity, which I co-chair, has identified five areas for action, all of which focus on strengthening the bond between employees and Ford. These include: • Leadership within the corporation. With direction and guidance from senior management, all employees are responsible for driving diversity and worklife. • Valuing a diverse work force, which reflects the available talent pool and ensures competitive advantage.
Naturally, employees have many questions about the decisions we are making along the way. Some of these questions are about diversity. As a leading advocate for diversity and worklife initiatives at Ford, I am often asked whether we will lose sight of our diversity commitments in this changing and ch allenging environment. My answer is quite simple: Diversity remains a top priority at Ford Motor Company, in good times and in bad. In fact, I’d go so far as to say that diversity is essential to our long-term success. I am convinced that establishing our leadership in this area is critical to building strong relationships with employees. If we hope to attract and retain the best and brightest, we must honor the differences each employee brings to the Company. Profiles in Diversity Journal
• September/October 2002
Ford Celebrates Diversity at their Annual Summit This September, Ford Motor Company celebrated their third annual summit with the theme “Rebuilding The Business Through Relationships.” 1-800-573-2867 www.diversityjournal.com
Back to Basics Raising The Bar • Building a respectful and inclusive work environment, which forges commitment and engagement through fairness, dignity and respect. • Valuing worklife integration through active support of work practices and behaviors that promote flexibility.
The summit, like all our diversity initiatives, challenged each of us to explore our personal commitments to diversity and worklife. To examine the ways that we can apply these concepts in our offices and our plants and make them work for us, each and every day.
It’s a journey toward greater understanding of our world and of each other. I continue to believe that it is a journey with the power to change our workplace, our company and PDJ our world.
• Developing external partnerships through corporate citizenship. This connects the company with dealers, suppliers, communitybased and professional organizations, schools and universities, government and regulatory agencies and the media for the benefit of the communities where we do business. We’ve put a network of metrics in place to tell us whether we are living up to our promises. Our "Diversity Dashboard" includes tracking processes that tell us whether we are "walking the talk" in these key areas. These five themes also were the focus of the third annual Diversity and Worklife Summit, "Rebuilding the Business through Relationships,” which was observed beginning in early September at Ford locations worldwide. Expanded this year to cover six weeks, the summit also celebrated our successes, including the eight individuals and nine teams who are leading by example in the areas of diversity and worklife.
Thinking Globally, Acting Locally. Connecting with the communities where we live and work is a major part of developing external relationships, as shown by these employees participating in the annual Rouge River Clean-Up in Dearborn, Michigan. Each May for four years now, hundreds of employees take a break from their normal responsibilities to get their hands dirty preserving the environment for future generations. Whether in sunshine or rain, they are living examples of the company’s philosophy of thinking globally and acting locally.
Part of the six-week-long company-wide celebration features executive panel discussions of diversity and worklife issues (left) and dramatic interpretations (above). Community involvement is one of the summit’s highlights: (right) emphasizing the importance of developing an inclusive environment, members of the Detroit High School for the Fine and Performing Arts performed “Don’t Bother Me, I Can’t Cope” for last year’s Summit participants. At this year’s celebration, Ford honored 17 teams or individuals who exemplify the company’s commitment to diversity and worklife. 1-800-573-2867 www.diversityjournal.com
Profiles in Diversity Journal
• September/October 2002
page 53
The Changing Landscape
The Diversity Leadership Academy of Atlanta The Diversity Leadership Academy (DLA) offers resources to business and community leaders for building diversity management leadership competencies. These competencies not only contribute to their ability to successfully lead their organizations’ diversity agendas; they also enhance their ability to lead their organizations in general.
In part two of our series, Juan Johnson, President of the Diversity Leadership Academy, helps us uncover the thought processes we’ll need to build these competencies. Here we’ll further examine a scenario set forth in our last issue. We’ll review possible responses and their outcomes, and delve further into the development of diversity mature behaviors.
diversityleadership
competencies
“Mission-Focused, Requirements-Driven” Decision Making: Second in a Series
What would you do? You manage a store in a large retail chain that has a busy electronics department. The store is located in a predominantly Korean neighborhood, and you have hired members of the Korean community to work in the store as clerks, cashiers and sales people. Televisions and radios in the store are tuned to Korean channels that can be heard throughout the store all day, especially in the computer department. Your best salesman in the computer department is African American and complains constantly about unintelligible Korean language and music blaring out of the electronics department. He says he’s even dreaming in Korean at night. He’s fed up and wants to transfer to another store in a different neighborhood. What do you do?
Juan D. Johnson Vice President, The Coca-Cola Company President, Diversity Leadership Academy American Institute for Managing Diversity, Inc. 50 Hurt Plaza, Suite 1150 Atlanta, GA 30303 Tel: 404.302.9226 FAX: 404.302.9252
jdjohnson@na.ko.com jjohnson@aimd.org page 54
A) Call the manager of another store in a different neighborhood to see if there is a job for a good computer salesman. B) Instruct the staff in the electronics department to lower the sound levels on the televisions and radios. C) Direct the electronics department staff to tune the televisions to multiple channels, giving customers a broader sense of various picture and sound qualities. D) Let the African-American salesman know that you understand how he feels and remind him that you r core customer base is the Korean community. The televisions and radios will remain on Korean stations.
Profiles in Diversity Journal
I
t has been argued here that a “do the right thing” model is insufficient to guide leaders’ decisions on diversity issues in today’s complex workforce, workplace and marketplace. Beyond traditional personal diversity dimensions like race, gender, age, ethnicity, physical/mental abilities, and sexual orientation, it is now understood that organizational dimensions and societal dimensions drive individua ls’ perspectives and needs and result in tensions which leaders must resolve to create engaged and productive workgroups.
Tensions between headquarters cost centers and field profit centers are not drawn along racial or gender lines. Likewise, the needs of union and non-union employees or permanent and contract workers are not driven by ethnicity or sexual orientation. The leadership skills and compe tencies required to make quality decisions in the midst of these and other tensions are the essence of diversity management. Indeed, whenever a leader is making a decision among varied perspectives, diversity management is at work. Regardless of whether the variations in perspectives are driven by personal, organizational, or societal dimensions, the leader’s job is the same: to make quality decisions that further the organization’s mission. Previously, the scenario on the left was presented to demonstrate the diversity complexities inherent in today’s workforce, workplace and marketplace. Examine the difficulty of making a decision in this scenario based on the “do the right thing”
• September/October 2002
1-800-573-2867 www.diversityjournal.com
Diversity Leadership Competencies The Changing Landscape model. Also, consider how you would respond utilizing other commonly referenced models: fairness and equality; awareness and sensitivity; valuing differences. The point of the exercise is not to challenge existing models—all are applicable in the right context. Rather, it is to highlight the fact that today’s increased diversity and complexity require a degree of flexibility and a close examination of “context” to ensure quality decision making. And that after satisfying legal and ethical mandates, the ultimate context for decision making is the organization’s overarching mission and its attendant requirements. This “mission-focused, requirements-driven” approach to decision making is key to both supporting enhanced performance and avoiding negative unintended consequences.
Which did you choose?
Answer C would seem to apply the “do the right thing” or “fairness and equality” approach. This decision, it could be argued, puts everyone in the same situation. Korean sales staff, customers and other ethnicities would all have to listen to other languages and styles just as the African American does. However, this solution could also, at least in part, be solving the wrong problem. After all, customers and other employees are not complaining. And it’s quite possible that you would inadvertently take away one of the key factors attracting customers to your store. This answer is therefore wellintended but sub-optimal. Answer D would seem to be consistent with a “valuing differences” approach. Though acknowledging that you “understand how he feels,” you are essentially telling the salesman that he must accept the differences in language and taste of the Korean customers and simply deal with it. The unintended consequence of this decision is the high likelihood that the talented African-American salesman will leave the company. This answer is therefore suboptimal as well, because it sacrifices talent that is contributing to the company’s success.
Answer B clearly demonstrates “sensitivity” to the complaints of your African-American salesman. However, it is also unlikely to resolve the issue since customers will invariably adjust the sound levels as they inspect the electronic devices. 1-800-573-2867 www.diversityjournal.com
Answer A is the recommended solution. In seeking another opportunity for the salesman within the company at large, you not only demonstrate respect and sensitivity to both the African-American salesman and your Korean customers, but you also strive to retain talent that is contributing to the company’s success. Importantly, this solution is most likely to: 1) continue the successful sales pattern of your e lectronics department; 2) retain a talented computer salesman within the company at large; and 3) enhance a valued employee’s level of engagement in the business. This response represents an example of “mission-focused, requirementsdriven” decision making.
audit function which reports to the board of directors. Historically, the group’s travel rate has approximated 95 percent. After announcing a commitment to diversity, including diversity of perspective, diverse needs, work/life balance, et cetera, the company is challenged as to the “fairness” of its auditor travel policy. One auditor explains to the audit director: “I have colleagues in general ledger accounting that only travel about 5 percent. If you’re serious about diversity and work/life balance, shouldn’t everyone have the same travel expectations so that we all can have quality time with our families in our home communities?”
In this scenario, if the leader of the audit function is skilled in “mission-focused, requirements-driven” decision The mission is the making, she would explain over-arching A powerful benefit of “mission-focused, to the auditor the purpose of the requirements-driven” decision making is that it organization. differentiates treating everyone the same from treating function’s mission of It is the everyone fairly. The organization has an ethical and protecting the comp any’s assets through ultimate accountlegal obligation to do only the latter. effective and efficient audits ability that while keeping costs to a minimum. And organization leaders have to that accomplishing this mission “requires” that stakeholders. With the exception of legal and the firm maintain a staff of qualified auditors ethical mandates, decisions should always favor who are prepared to travel 95 percent. It is a the alternative which best supports the requirement for the job and that requirement organization’s mission. In diversity is consistently communicated during the management, the challenge is to develop the recruiting process before the candidate accepts leadership skills and competencies to analyze the job. In this case although the comp any issues in the context of the mission. Effective would not have treated everyone exactly the leaders then make and communicate the same, it has indeed treated everyone fairly, with decision while maintaing staff engagement. fairly being defined as everyone being This is where the concept of “requirements” susceptible to the requirements for achieving becomes critical. the organization’s mission. “Requirements,” as defined by A powerful benefit of “mission-focused, Dr. R. Roosevelt Thomas, Jr. of the American requirements-driven” decision making is Institute for Managing Diversity, are those that it differentiates treating everyone the things that are absolutely essential to the same from treating everyone fairly. The accomplishment of the mission. Leaders who and legal organization has an ethical codify and communicate requirements and obligation to do only the latter. enroll their staffs in the link between requirements and organization mission The ability to make “mission-focused, have a powerful tool for decision making and requirements-driven” decisions can be employee engagement. developed through training, experiential learning and practice. Although senior leaders One of the diversity management issues that sometimes invest less in their own leadership leaders frequently experience is the challenge to development than their staff’s, the diverse and demonstrate their commitment to diversity in complex environments facing today’s businesses the face of seemingly competing business suggest that such investment will yield high directives. Consider the case of the large returns to b oth the individual leaders and multinational manufacturing organization their organizations. with business units spread across the globe. PDJ The organization has a centralized independent
Profiles in Diversity Journal
• September/October 2002
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Raising The Bar
Synovus
drivenby our vision FORMALIZING
THE DIVERSITY INITIATIVE
Diversity has always been at the core of the Synovus value system; now it is formally a part of the corporate strategy for sustaining the culture that has epitomized this company for over a hundred years.
E
Audrey D. Hollingsworth SVP, Director, Diversity/Workforce Compliance Synovus Financial Corp. P.O. Box 120 Columbus, GA 31902 For information, contact: Bob Tomayko Senior Project Leader, Diversity Tel: 706.649.5784 FAX: 706.649.5797
arly in 2000, Synovus, a diverse financial services company headquartered in Columbus, Georgia, made a commitment to formalize its company-wide focus on workforce diversity. A natural part of our culture and our commitment to the individual, Synovus integrated the new strategic Diversity Initiative into an existing and highly successful initiative which we call Personally Developing Everyone (PDE). The PDE initiative is at the core of the Synovus value system—it is our corporate strategy for sustaining the values we live by and the culture that has epitomized this company since 1888. PDE encompasses such varied elements as: • Leadership training programs like Leadership Institute and Foundations of Leadership • The new team member orientation program called Right From the Start • Our Talent Management initiative to focus on leadership development by creating a formalized approach for identifying, knowing, developing and managing talent throughout the Synovus family of companies • Right Steps for Performance Development, our performance appraisal system that focuses more on linking performance to Company goals and determining specific areas of development. Valuing diversity plays a key role in these efforts and in the company’s overall success. “To become the finest financial services company in the world and the leader in global commerce solutions, our workforce and our customers must be a reflection of the communities and markets we serve,” says James H. Blanchard, Synovus Chairman of the Board and CEO. Our diversity strategy is also an integral part of our company vi sion. To achieve our corporate vision at Synovus, we have designed
our strategic plan for diversity to achieve the following objectives: • Fully utilize and maximize the potential and talent of every team member • Increase our customer/client base by reflecting the diverse communities and markets we serve • Enable them to respond to customers’ interests with a representative workforce • Develop and evaluate programs and practices that will sustain a diverse workforce by continuously aiming to meet their needs • Attract and retain the broadest choice of exceptional talent. The emphasis on making diversity an integral part of the business strategy has contributed to keeping Synovus Financial Corp. on Fortune magazine’s annual listing of “The 100 Best Companies To Work For in America” for five straight years. (Synovus was No. 11 on the “Best Companies” list in 1998, No. 1 in 1999, No. 5 in 2000, No. 8 in 2001, and ranked No. 5 again this year.) Today, there are five primary areas of focus for our Diversity Initiative at Synovus. The areas include: • Workplace Practices—strategies that support an atmosphere of fairness and equality in recruiting, hiring, and promotion practices to ensure that Synovus is creating and meeting the needs of a diverse workforce. • Representation—providing a vehicle through which we can position the company to better meet the needs of our changing markets and collect data to help measure the progress of our Workplace Practices strategy. • Business Partnerships—a diversity plan to provide opportunities to diverse business partners through strategic alliances and potential joint ventures with supplier groups. • Education—embedding diversity training for
BobTomayko@sfcts.com page 56
Profiles in Diversity Journal
• September/October 2002
1-800-573-2867 www.diversityjournal.com
Driven by our Vision Raising The Bar leaders and team members in our existing an integral part of the company business stratecourses and programs, as well as offering a gy, an important focus of the leadership goals, new training curriculum that includes courses and a central element of every such as Diversity as a Competitive Advantage, team member’s performance Valuing Differences, and Managing a Diverse and development plan (called Workforce. Right Steps at Synovus). • Development—using informal mentoring to sustain a diverse, highly skilled, “To become the finest financial services company in the and talented world and the leader in global commerce solutions, our workforce. workforce and our customers must be a reflection of the communities and markets we serve.” Many James H. Blanchard corporate-wide Synovus Chairman of the Board and CEO activities highlight and celebrate diversity at Synovus. Like many organizations, Diversity 2002 provides the our internal divisions host celebrations and direction for a coordinated, yearlong effort to educational programs during Black History and make diversity a real part of the everyday workHispanic Heritage months. Synovus also hosted place activities and not just a one-dimensional, this year’s Governor’s Small Business Supplier major event. This effort covers all five major conference and sponsored the Georgia Women areas of focus for the Diversity Initiative. Entrepreneur’s Conference to help give womenowned and minority-owned suppliers the The initiative has four distinct elements: opportunity to network with business leaders 1. Developing goals and measures and showcase their serv ices. We also organized 2. Working to achieve goals a “True Colors” art contest, displaying a variety 3. Measuring progress of team member artwork, to emphasize the 4. Recognizing and rewarding success diversity of talent within the organization. In addition, the diversity team prepares Further, Diversity 2002 provides specific guidemonthly articles for distribution on the lines for three levels—Executive management company Intranet that focus on various aspects (CEOs and Senior managers), the Leadership of diversity such as geographic, cultural, and team (all managers, supervisors, and team lea dgenerational differences. ers), and for individual team members. The company’s diversity team provides support in But, diversity is more than just corporate all phases of the initiative. programs or slogans at Synovus. It is an everyday part of a team member’s work life. To Using the process, executives set company diveremphasize that point Synovus introduced sity goals and the goals for their leadership team Diversity 2002, an ongoing process to encourage (direct reports). In turn, the leadership team individual responsibility and measurement (managers and supervisors) creates goals for around diversity. their division or department and for their direct reports. Team members develop potential According to Audrey Hollingsworth, Senior Vice diversity goals to discuss during their Right President and Director of Diversity and Steps planning meetings. Managers and team Workforce Compliance at Synovus, “Diversity members base their goals on the appropriate 2002 is a sustaining force behind valuing the tools at each level. These tools include a worth of every team member. We wanted to market-based business plan, annual progress formalize our efforts with real emphasis on reports, an affirmative action plan, previous accountability for leaders and all team memcompany goals, and the new Measurement and bers. Our goal is to ensure that we create and Accountability guidelines document. Goals maintain an environment where each person cover any or all of the five areas of focus and can achieve optimal performance, grow, and include s pecific measurement criteria for each be successful.” action item. Managers and team members detail their goals and actions to achieve results The purpose of Diversity 2002 is to link diversi- in the appropriate Right Steps documentation. ty to every aspect of the business, to be seen as Goals can be simple, yet effective. For example, 1-800-573-2867 www.diversityjournal.com
Profiles in Diversity Journal
• September/October 2002
a goal around the education focus could read, “Teach your work team about diversity. Coordinate diversity activities throughout the year—at least one per month. Use the Diversity ... A Lifetime of Learning calendar for ideas, suggestions, and background material. Keep a written record of your meetings, subjects, and activities for review at year’s end.” The bulk of the time invested in Diversity 2002 comes in the “Working to Achieve Goals” stage. Here managers and team members use the tools and support elements found in each of the five key areas of focus for our diversity initiative. As with any other performance or project objective, they work to achieve the desired end results. New tools for 2002 include a diversity education calendar and a supplier database. Managers and team members measure progress during Right Steps, periodic updates and other formal and informal review sessions. Existing measurement tools provided by the Diversity Team include quarterly progress reports and Af firmative Action plan updates. Additionally, Diversity 2002 provides two new measurement tools—a diversity “report card” for the leadership team level and a diversity self-assessment tool for team members. As with any goal, the managers and team members recognize and celebrate the successful achievement of the desired end result. This year Diversity 2002 provides new ways to reward and recognize depar tments, work teams and individual managers, leaders, and team members. While Diversity 2002 is a new approach, Synovus hopes to build on the foundation and continue to promote every team member’s acceptance of differences and the search for common ground. We hope to collect success stories and share “what’s worked” through a series of feature articles on the company Intranet. While at Synovus we have come a long way since formalizing our Diversity Initiative in 2000, we still feel that the journey has just started. And Diversity 2002 is a giant step in the ongoing process at Synovus to make diversity, and the valuing of diversity, an essential element of the workplace fabric. PDJ page 57
accountability
Continued from page 30 Deloitte & Touche Her efforts, and those of countless other employees worldwide, too many to name, speak not only to the importance of individual efforts but also to the need to create the right environment for people to thrive at work and within the larger community to which we all belong. Past experiences and success with another important initiative also encourage us in implementation of our diversity strategy. Al most ten years ago, our firm realized that we were losing a host of talented women who, for one reason or another, decided that Deloitte & Touche did not offer them the opportunities or provide the support necessary for them to reach both their personal and professional goals. After careful study, the firm put in place a rigorous program to attract, retain and promote talented women who could enhance the depth of our firm’s skill sets and bring new perspectives to our clients and our people. Our ongoing Women’s Initiative has also served to sharpen our focus on the broader area of human resources and has bolstered our determination to find new ways to improve the work environment. As a result of this initiative, the firm continues to attract the best women professionals and offers them opportunities to r ise through the ranks of our firm to become, in increasing numbers, partners and top leaders in the firm. We now lead the profession in terms of the percentage of women partners. Our success with our Women’s Initiative along with our heightened awareness and attention to employee issues have progressively sharpened our determination to become the employer of choice. Five years ago, when it was first ann ounced, our firm submitted an application for Fortune magazine’s list of “100 Top Companies to Work for in America.” We made the list on our first try and have made the list ever since. We are the only professional services firm to appear for five consecutive years on the list and one of twenty-five companies to have appeared every year. And of those twenty-five, only four other companies have ranked higher than us. Going forward, we intend to make good on our commitment to diversity with the same determination with which we address all our professional and business issues. That kind of commitment is intrinsic to our culture and to our success. PDJ page 58
conversation
PRISM International
Continued from page 31
have managers talked with employees about stereotypical comments that might be occurring in their own department? Has the impact to their productivity, customer relations, quality and profit been discussed? Most importantly … what have they decided to do? How will they act differently as individuals and as a team? And how will they hold each other accountable?
led discussions that result in team decisions and real change.
When diversity becomes aligned with the daily departmental business realities it can be leveraged to achieve greater overall organizational business results. The strategic direction, the commitment, the advertising, the promises and the tactics become real for employees, customers These types of conversations enable manag ers to and all stakeholders. Everyday words, behaviors and decis ions begin to reflect the organization’s enlist the support of and partner with their commitment, vision and mission. With the employees to create and sustain change. Using the PRISM Diversity Discussion StartersTM in reg- departments aligned, the organization is ularly scheduled staff meetings extends the diver- positioned to leverage diversity for results in both the workplace and marketplace. sity message and drives the diversity commitPDJ ment, vision and mission by providing manager-
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BellSouth Corp.
Continued from page 15
in 2000 were minorities or women. In 2001, 41 percent of all corporate officers were minorities or women. Throughout BellSouth’s history, the company has strived to educate and train employees to understand the meaning of diversity and what it means to their future and the future of BellSouth. This year, one of the main focuses is to get BellSouth’s inclusion strategy message out to all employees. We are making solid progress toward fully implementing inclusion initiatives and reaping all of the rewards. At BellSouth, diversity isn’t the “program du jour” or a program that we can arbitrarily abandon when the economic tides turn for better or worse. BellSouth is making a lasting commitment t hat will have a far-reaching, positive impact on how we conduct business. We know that, regardless of the economic climate, a solid inclusion program strengthens our employee base and, ultimately, helps us provide better products and services to all of our customers. PDJ
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moments of truth
JPMorgan Chase
Continued from page 25 meetings, diversity council sessions, and other launched in February 2002, essentially providing forums, we’ve done so in a way that promotes managers with tools for talking to their teams exactly this kind of dialogue. about diversity in a way that looks far beyond cultural differences. In February the focus was The beauty of this process is that it is adaptable “Giving Feedback;” in May it shifted to “Peer for any culture. After the first phase in the U.S., Coaching.” Carl Watson, Organizational & we continued the work in the Asia, Europe, Career Development Manager, reports that, “The Middle East, Africa and Latin America regions Diversity Leadership Series provides us with the and have found it globally relevant. This opportunity to localize diversity. It is powerful, approach provides a platform that really does not only because it allows us to be specific about transcend geography—it’s about behavior, the champion behaviors, but also because employe es routine exchanges between colleagues that mean see their manager engaged in diversity. Those so much! At JPMorgan facilities around the thousands of conversations each month really world, the focus now centers on integration— define diversity for the majority of our making sure that management development pro- employees.” grams, training, coaching and other initiatives are aligned with what we learned from our The work continues in the form of purposeful middle managers. integration of these learnings. Stephen Young, Director of Diversity for JPMorgan Chase, Making It Real reflects: “When the project began, I probably Chase Cardmember Services (CCS), the would have anticipated some kind of a large scale JPMorgan Chase credit card function, has intervention or strategy shift. That wasn’t the developed an interesting approach to integrating case. Rather, we set about methodically looking the Middle Manager Engagement project learnat how we can integrate these champion ings. The CCS Diversity team created a behaviors into what we already do to support “Diversity Leadership Series” guide for managers, middle managers. It’s been subtle, but powerful. using the “Moments of Truth” as a platform for We are making progress and changing PDJ discussion about diversity. The program behaviors where it means the most.”
Profiles in Diversity Journal
• September/October 2002
page 61
dynamic
Duke Energy
Continued from page 27
Duke Energy’s global diversity effort. “They are leading the way and displaying real commitment and support in making Duke Energy a leader in diversity,” Priory added, “which in turn drives leadership positioning in other business performance measures.”
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Abbott Laboratories
Continued from page 26
integration programs. “We are building an inclusive environment where each individual can reach their full potential through training, emphasizing growth and development and providing work/life programs to succeed on and off the job.”
environment where every individual contributes, it is our goal to bring nearly seventy thousand diverse backgrounds together as one Abbott.”
sun never sets Continued from page 41
British Council
conditions of service, within an overarching concern for the efficiency of the organisation. • Partner recognition—For some time now we have accorded the same status to all partners of For Mr. White, diversity and inclusion was a British Council staff, whether or not they are top priority long before he filled the company’s married, including same-sex partners. The team focus on top post. More than 15 years ago, Mr. White • Work/life balance—In the UK a range of flexible building an inclusive hired the first y providing an environment working policies are in place to support staff to culture and environment female into the achieve work/life balance. is making progress. where every individual contributes, company’s Today, minorities make it is our goal to bring nearly seventy national Sticking to principles up nearly one-third of accounts sales thousand diverse backgrounds together The challenge of working sensitively with many the company’s U.S. organization. as one Abbott.” cultures and of being such a culturally mixed workforce. Abbott also He later Miles White, Chairman and CEO organization requires a continual examination of has substantially Abbott Laboratories promoted the increased the number of company’s first the attitudes and values that we bring to our work and the paradigms underpinning it. minorities and women in management, African-American research and development This is perhaps especially so at times of conflict increasing the number of minorities in vice president. As chief executive officer, he and change. A programme of training and management by 106 percent in the last five built a $10 million on-site child care center, development will help support this challenge and years and increasing the number of women in raised the bar on the company’s support staff to be effective “cultural conduits” management in the United States by commitment to workplace flexibility and who are able to communicate helpful attitudes 84 percent in the same time period. launched the Abbott Women’s Leadership and behaviours. These in turn will reinforce Initiative, a mentoring and networking principles of equality of opportunity and “Our company’s success largely depends upon organization for the company’s managing and valuing diversity. the wide variety of viewpoints and experiences female managers. PDJ PDJ we share,” said Mr. White. “By providing an
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1-800-573-2867 www.diversityjournal.com
Profiles in Diversity Journal
• September/October 2002
page 63
IntroduCIng thE CorporatE ExECutIvE SErIES A Vital Opportunity for Top Leaders
SENIOR EXECUTIVES • DIVERSITY COUNCIL MEMBERS • CHIEF MARKETING OFFICERS BUSINESS UNIT PRESIDENTS • ENGINEERING CHIEFS • GENERAL COUNSELS • CHIEF FINANCIAL OFFICERS AIMD’s Diversity Leadership Academy introduces the Corporate Executive Series, a new resource for senior management champions of diversity. While there are scores of resources available for practitioners who make diversity their day-to-day jobs, few resources exist for the top-level managers who are held accountable for managing diversity and its impact on business results. Now there is a resource for executives seeking the leadership competencies and skills needed to champion this increasingly critical component of effective organizations. The Corporate Executive Series is an intensive five-day program, taught in two and a half day segments, that gives participants a unique opportunity to develop cutting-edge, practical leadership competencies in a peer-to-peer setting exclusively for top-level corporate executives. Participants in the Spring 2003 session include: • A senior partner in a big five accounting firm • The Chief Financial Officer of an $8 billion manufacturing and marketing firm • The Chief Operating Officer of a national advertising agency • A division president of a global manufacturer of electronic instruments The series prepares organization leaders to: • Build organization cultures that support all-inclusive work environments • Access varied talents and perspectives and challenge conventional wisdom when attacking complex business issues • Manage complex non-traditional diversity mixtures and tensions like integrating disparate business functions, global expansion, post-merger/acquisition transition, union/non-union labor issues, business/brand portfolio resource allocation, etc. The first Corporate Executive Series program will be held March 18-20 and May 20-22, 2003 in Atlanta, Georgia. Tuition is $5,295. To request registration and application information, visit www.aimd.org, email aimd@aimd.org, or call 404302-9226. Dr. R. Roosevelt Thomas, Jr., the nation’s foremost thought leader in diversity management and president and founder of the American Institute for Managing Diversity, leads the Corporate Executive Series. Dr. Thomas has been at the forefront of diversity research for over two decades and is recognized internationally for his groundbreaking work in the field of effective diversity management. He is the author of several published books including Beyond Race and Gender: Unleashing the Total Power of Your Workforce by Managing Diversity, Redefining Diversity and Designing a House for Diversity: A Blueprint for Personal Diversity Effectiveness.
Creating the of Diversity
Please mail inquiries to: Diversity Department, Ref Code 801PID, P.O. Box 10000, Lake Buena Vista FL 32830-1000 The Walt Disney Company and its subsidiaries and affiliated companies are equal opportunity employers. We encourage diversity in all aspects of our business. ŠDisney
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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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hen you’re the world’s leading team in environmental protection, you hire the world’s leading talent. Men and women from all walks of life join in contributing to our overall success – people committed to being their best and achieving professional goals in a culture that respects and recognizes our unique ideas and perspectives. Look to the NEW Waste Management for truly equal opportunity. Waste Management. Diversity Proud. www.wm.com Waste Management is proud to be an equal opportunity/affirmative action employer.