Making Sense of D&I Strategy:

How to Create Plans That Engage, Motivate and Get Results Mary L. Martinéz D&I Practice Leader  2015 APT

Metrics

About APTMetrics

Global Talent Management Solutions Provider Comprised of:

• Ph.D. industrial/organizational psychologists • Human resource consultants • Information technology specialists

What Sets APTMetrics Apart:

• Professional integrity • Evidence-based approach • Technical expertise • Customer service

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• Certified as a women-owned business by WBENC • Certified as a women-owned small business by the US SBA

Global Strategies for Talent Management.

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Our Areas of Expertise

• • • • • • • • • Leader Assessment Employee Selection Litigation Support Diversity Strategy & Measurement Job Analysis Competency Modeling Performance Management Staffing for Mergers & Acquisitions Organizational Surveys

Global Strategies for Talent Management.

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Our Web-Based Solutions Platform

APTMetrics ® SelectionMetrics ® Employee Selection System LeadIN

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Leadership Assessment Suite JobMetrics ® Job Analysis System 360Metrics ® 360-Degree Feedback System SurveyMetrics ® Organizational Survey System 3

APTMetrics’ U.S. Offices

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“The essence of strategy is choosing what not to do.”

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Michael E. Porter

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Agenda for Today’s Session

D&I STRATEGY… • Where does strategy creation go wrong?

• Who should create D&I strategy, own it and execute it?

• How do you develop one without getting lost in the weeds?

• Can this process work for your company? (Let’s try it…) • Your questions?

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What Challenges Have You Faced in Developing D&I Strategy in Your Organization?

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Missteps in D&I Strategy Development

Contributing Factor

D&I/HR or non-executive Council drafts strategy without business leadership participation Insufficient definition of the goals and strategies – too high level Strategy not built from business objectives Strategy is tactical Lack of flexibility for adaptation to local needs Inappropriate or inadequate metrics

Impact

• Wrong messages re: roles • Lack of business leader ownership or understanding of the issues • Organization has difficulty translating into concrete actions for implementation • D&I actions not seen as priority or related to achieving business goals • Failure to leverage resources • People don’t “connect the dots” • Disengagement of stakeholder groups • Lack of action at local level • Measurement doesn’t drive progress on strategic objectives -- may drive undesirable behaviors

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What’s Required

• Vision and definition for the desired future state • Clear roles for business leaders v. HR/D&I • Create the structure • Identify champions in the business • Raw material for the business case (drivers; linkages) • D&I status quo against the backdrop of the business and HR strategies; gaps • Workforce • Workplace • Marketplace (customers/suppliers/communities) • Specific plans, accountabilities, and milestones derived directly from business strategy

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Most Effective Roles for Key D&I Stakeholders Business Unit Leadership and Their Teams Chief Diversity Officer

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Set strategy and goals Communicate importance of D&I for business outcomes

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Own responsibility for implementation and outcomes D&I Center of Excellence (COE)

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Provide expertise, direction, guidance, coaching and support to the business units

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Ensure partnerships between business and HR, ERGs, Procurement, Community Relations, etc.

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Why Direct, Ongoing Participation by Leadership in Strategy and Metrics Works

• Requires interaction with the data, issues and reality of D&I in the organization and the marketplace • Fosters accountability being pushed down through the organization • Sends a message that D&I is part of the business landscape – increasing sustainability of impact • Enables senior leaders to speak more knowledgeably and confidently about D&I • Ensures implementation resources

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Helps Leaders Achieve Business Goals Not Possible Without the Added Value of D&I 12

Executive and BU-Level Councils Make D&I Real for Each Business Unit

A template that can be used for the Executive Council and then within each BU

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Business Goals Talent and Business Strategies to Achieve the Goals D&I Linkages (Workforce, Workplace, Marketplace) Strategy and Actions to Optimize D&I Contribution Talent and Business Metrics and Accountability 14

Strategy Development Example: Workforce & Workplace Business Goal

Leverage social media to increase on line sales to younger buyers

HR & Strategies

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Hire additional IT staff with social media expertise Provide work environment, challenges, and rewards for IT staff with required skills D&I Linkages

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Many of those in target IT workforce are Gen Y, from diverse backgrounds Have different career goals/ expectations Measure Current State D&I Strategies Measure Progress Gap Analysis

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Don’t have strength in recruiting or retaining targeted workforce; need new sources/ approaches to recruitment and retention

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Improve brand image with targeted workforce Increase workplace flexibility and openness Implement new career paths for IT function

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Perception of company brand by potential hires measured via survey Increased usage of Flex options; feedback from employees Hire and retention stats for targeted groups 15

Strategy Development Example: Marketplace & Community Business Goal Business Strategies Leverage social media to increase on line sales to younger buyers

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Update online brand image to appeal to 25-35 market Pilot crowdsourcing for product enhancement D&I Linkages

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Target market has significant racial/ethnic diversity – will need to assess impact on product branding and marketing vehicles Measure Current State

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Don’t currently have adequate market segment data Few linkages to on-line communities attracting targeted segments Gap Analysis D&I Strategies

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Conduct further research, starting with tapping Young Professionals ERG, who can also provide links to virtual (and actual) communities Measure Progress

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Market share increases Response rates to social media marketing # of ideas implemented from ERG suggestions 16

Strategy Should Be Integrated Across the Organization Business Unit

YEARLY

Individual Leader

Goals Set Through:

Diversity Councils/ERGs Corporate D&I Strategic Plan (3 year)

D&I Goals/ Action Plan Key Behavior Objective set in individual PM plan

Goals Measured In:

D&I Goals/ Action Plan BU and Corporate Scorecards Performance Appraisal Diversity Council Evaluation

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Worksheet for Development of BU D&I Strategy 18

Examples of Business-Led D&I Initiatives

• Medical devices company enhanced its brand in the Hispanic community by hiring a Spanish-speaking community liaison to educate on healthy living for those with diabetes • B-B organization in business services desiring to expand market share in mid-sized companies built diversity targeted marketing into its strategy with significant results • Operations business unit in a utility provides language cards to its field staff so they can inform customers of onsite work being done – even if they don’t speak their language

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Areas for Measurement

• Workforce Profile • How many? What trends? What patterns?

• Programs/Processes • How many? How well? What impact? • Diversity Climate • How fair, flexible, engaging, and open to differing perspectives?

• Business Impact • How much more (productivity, sales/market share, cost savings)?

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Incorporate Metrics Into a Comprehensive D&I Dashboard ) Tailored to reflect the organization’s goals, strategy and priorities for change… 21

Metrics and Accountability Example: Financial Services Company

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Goals and means for achievement: Establish clear direction for managers

Ensure managers focused on:  Growing headcount  Driving revenue growth  Supporting trainee development  Encouraging teaming opportunities

Promote metrics based results

 Develop specific measures based on historic performance and desired outcomes  Supply detailed reporting to managers to enable regular tracking and identification of opportunities

Enhance accountability

 Utilize a carrot and stick methodology to encourage desired results  Reward those who reach significant, objective measures of success •

Four key measures:

• Changes to representation of women and minorities • Changes to team representation • Growth in $ results of diverse employees • Results of diverse employees versus results of unit overall

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Let’s Try It Out…

Business Goals Talent and Business Strategies to Achieve the Goals D&I Linkages (Workforce, Workplace, Marketplace) Strategy and Actions to Optimize D&I Contribution Talent and Business Metrics and Accountability In groups of three or four, try applying this model to an actual business goal of one of the companies represented in your group. Based on the business goal you choose to work on, select one talent or business strategy • • that is critical to reaching the goal and identify: What the D&I linkages are, and For one of the linkages, determine one strategy, one action related to the strategy, and suggest how it could best be measured

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Your Comments? Questions? Ideas?

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Contact Information

APTMetrics, Inc.

One Thorndal Circle Second Floor Darien, CT 06820 203.655.7779 TalentSolutions@APTMetrics.com

www.APTMetrics.com

Global Strategies for Talent Management.

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