Transcript BT Leader Meeting

Bringing Life to the Diversity
Business Case
Through the Voice of All Employees
Dr. Theresa M. Welbourne
President and CEO, eePulse, Inc.
Executive Education, Ross School of Business,
University of Michigan
Copyright, © 2005, eePulse, Inc.
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Agenda
• Introduction to Data and Dialogue
Driven Leadership™
• Research and Theory: The case of
women in business
• Data and Dialogue Tools: Simple way
to bring life to the diversity business
case
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Scientific Research
and
eePulse Proprietary
Technology Led to Discovery:
Data and Dialogue
Driven Leadership™
Which is our “lens” for diversity
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Research
• 18 years of study on what predicts longterm firm and individual performance
• Over 100 firms and hundreds of thousands
of employees in research
• Includes weekly and monthly data
collection in firms such as Citigroup,
Washington Mutual Bank, GM, Toyota,
British Telecom, InterFirst, Amazon.com,
and more
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Simple Process That Works
“Always
look for
the simple
solution”
• eePulse tracks employee energy as
frequently as weekly (trends and variance
hold predictive power)
• Comments gathered; give employees
“voice” via technology
• Managers receive results instantly
• Managers take action on key problems and
new opportunities; employees feel valued;
someone listened
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Results
• $17m ROI in 10 month project
• Reduce turnover by 26% in 6 months
• Stock price increase for new CEO in
6 months
• Change management initiatives
accelerated
• Merger success
Diversity is at the heart of the solution ...
but we may define it differently
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Define Diversity
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Our bias:
Performance Bias
and
Science Lens
Theory
and
Empirical Data
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Summary
Research and Theory
What we know:
Lack of diverse ideas
can destroy
organizations
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Economic Theory
• Agency theory perspective
– Organization suffers when information not
in hands of owner
• Information asymmetry problem
– Management can solve problem and
increase performance
• By giving employees VOICE
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Empirical Study on Firm
Performance
• Initial public offering (IPO)
research:
– What predicts long-term firm
performance?
– IPOs = the “fruit flies” of
management
IPOs are going through change; today almost every firm
we work with also is going through change. They are
large, small, and global organizations.
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Why Study Women in IPOs?
Women in Top Management of IPO Companies (By Year)
50
43
45
% Firms with Women
40
37
37
1996
1998
35
27
30
25
20
15
10
5
0
0
1988
1993
1999
Year
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Is there an effect?
• Regression analysis for 1993 data
• Controlled for “other” factors
• Having women on top team had
positive and significant effect on
initial IPO price, stock price growth,
Tobin’s Q growth (market/book), and
growth in EPS
– Study conducted with data that went out
both 3 and 5 years after the IPO
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Some additional facts
• Distribution of 93 sample
– 1% of firms had 50% or more
women on their top teams
– 9% between 20% and 49%
– 17% reported 8% to 19%
– 73% had no women
• Tobin’s Q for firms with women
was 6.70, without women = 2.21
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Additional research
• Replicated findings for 1996,
1998, and 1999
• 1999 – Women as CEOs started
to show up
– 505 firms went IPO
– 217 had women in their teams
– 25 had women CEOs
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Diversity
• Diversity of ideas
• Diversity of thought
• Brought in by diversity of
people ... in this case women
• Next, more on women in
business – but from a “within
firm” perspective
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Energy
• Research shows energy is key
to success
• But .. energy is something that
is optimized – not maximized
• Energy fluctuates considerably
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Energy Trended
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Sample Results
With Zone Status
Purple = My energy pulse for females
Yellow = Perception of others energy
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eePulse Data
Company Data
Blue line = men; yellow line = women; purpose = all company
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Across Clients
• We find that female scores on
energy are “below their zone”
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The “Below Zone” Phenomenon
• Being busy NOT = in the zone
• Stacking work NOT = prioritizing
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Other data points
• Percentage of time interacted with manager in the
last week – highest choice was 3 to 5 times
– Men = 40%
– Women = 26%
• Percentage of time you want to interact with your
manager
– Men = 37%
– Women = 22%
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Catalyst / eePulse Study (April, 2005)
FEMALE/MALE MANAGERS
Leader Behavior
Female
Male
Pl
an
ni
Su
ng
p
Pr
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ob
rt
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g
m
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in
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ild
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on
ito
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te
rin
lle
Co
g
ct
ns
ua
ul
lly
tin
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g
im
ul
at
in
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g
en
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M
od
el
in
De
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ga
tin
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In
flu
s
en
pi
rin
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g
U
pw
ar
d
8
7.5
7
6.5
6
5.5
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Women are “showing up” at work
We know that, in IPOs at least, there is a positive impact when
women are on the management teams.
But, what does the within-company data and stereotype data say
about the female experience at work?
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Diverse People Not Enough
Diverse people cannot help
performance IF these “diverse”
employees will not or cannot
share what they know
• Will not = environment poor;
manager problems; burnout
• Cannot = no time; no opportunity; no
power
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What eePulse team has learned
• Not safe to speak up “out there”
• Managers do not listen equally
• Data and Dialogue Tools can
help managers learn to listen
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Diverse Idea and Opinion Process
Cannot Be Program of the Month
If you want success – or to sustain energy, you need to
give all employees voice and then take action on data.
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Diversity via Data and Dialogue
Driven Leadership
• Diversity is part of day-to-day practice
• Diverse opinions and ideas are gathered all
the time
• When diverse ideas and options are
ABOUT THE BUSINESS and drive
performance; business case is not an issue
Language of Diversity Changed to
Language of Business
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Dialogue?
Insights?
Questions?
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