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As presented at: SHRM 2014 Tri-State Pre-Conference Diversity and Inclusion Summit Taking Your Leaders From Buy-In to Bottom Line Mary L. Martinéz D&I Practice Leader APTMetrics, Inc. 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 Diversity Supplier • Certified as a women-owned business by WBENC • Certified as a women-owned small business by the US SBA 1 Global Strategies for Talent Management. Our Areas of Expertise • • • • • • • • • • 2 Leader Assessment Employee Selection Litigation Support Diversity Strategy & Measurement Job Analysis Competency Modeling Performance Management Staffing for Mergers & Acquisitions Organizational Surveys Public Sector Services Global Strategies for Talent Management. APTMetrics’ U.S. Offices 3 Agenda for Today’s Session • Senior leader behaviors with greatest impact on D&I • What cultural competence is and why it’s important for leaders • A model for more fully engaging leaders in creating and implementing D&I strategy • Approaches to measuring progress in increasing top management’s D&I leadership 4 “DiversityInc Top 50 data shows a direct correlation between a CEO’s visible support of diversity – and emphasis on accountability – and results, measured in human-capital demographics and marketplace gains.” From “Diversity Is a Leadership Expectation: Case Studies of CEOs of Ameren, Rockwell Collins,” Diversity Inc. at http://diversityincbestpractices.com/ceo-commitment/2-case-studies-how-rockwell-collins-ameren-ceos-demonstratecommitment-to-diversity-and-inclusion/ 5 D&I Objectives of Leaders in High-Performing D&I Companies Reflect Key Behaviors From Senior Leader Impact on Diversity: What Really Works? Industrial Relations Counselors, Inc., study conducted by ORC Worldwide, Global Equality, Diversity and Inclusion Practice, August 2008. 6 Poll #1: What Could Leaders Do More Of? More of which one of these behaviors would have the greatest impact on your organization’s D&I progress? 7 a. Adding diversity to their own teams b. Personal involvement in deciding D&I strategy and metrics c. Holding directs accountable for D&I actions d. Communicating personal insights about the value of D&I e. Mentoring/sponsorship f. Aggressively championing D&I in talent reviews and succession planning Most Impactful Leader Behaviors The 2008 IRC study showed that senior leadership behaviors with the greatest impact relate to: – Two-way communication – Accountability – Recognition From Senior Leader Impact on Diversity: What Really Works? Industrial Relations Counselors, Inc., study conducted by ORC Worldwide, Global Equality, Diversity and Inclusion Practice, August 2008. 8 Most Impactful Leader Behaviors Diversity Inc. research indicates best practices for Senior leaders are: – – – – – – Holding direct reports accountable Being a role model of visible, personal support Upholding values at all times Chief diversity officer has frequent access CEO leads executive diversity council Succession planning and continuous support for diversity From “Diversity Is a Leadership Expectation: Case Studies of CEOs of Ameren, Rockwell Collins,” Diversity Inc. at http://diversityincbestpractices.com/ceo-commitment/2-case-studies-how-rockwell-collins-ameren-ceos-demonstrate-commitment-to-diversityand-inclusion/ 9 Aspects of Direct Report Accountability 100% Leader Holds Direct Reports Accountable 75% 100% Directs Must have D&I Objectives 83% 88% Personal Behavior Rated in Performance Review 50% 0% 20% High diversity performers 40% 60% 80% 100% 120% Other companies From Senior Leader Impact on Diversity: What Really Works? Industrial Relations Counselors, Inc., study conducted by ORC Worldwide, Global Equality, Diversity and Inclusion Practice, August 2008. 10 Poll #2: What Do You Evaluate? Which of the following are used as measures in holding leaders accountable? (Please select all that apply) 11 a. Increasing the diversity of the organization (measures related to increasing the % of individuals from under-represented groups) b. Success of diverse high-potential talent (could be in terms of career advancement, financial contribution, or other measure) c. Engagement survey results reflecting inclusion d. Personal behaviors that support a culture of inclusion e. Utilization of diverse suppliers f. Financial outcomes linked to D&I actions (e.g., revenues from targeted marketing to a particular demographic having a unique diversity characteristic) The Necessary Foundation for All Leadership Behaviors: Cultural Competence 12 Sr. Leader Cultural Competence is Critical to the Overall Organization’s Global Agility From Cultural Agility Organizational Climate, 2013 Global Benchmarking Study, Global Aspect Human Capital Advisors, LLC and Caligiuri & Associates, Inc., copyright 2012. 13 The Global Competence Gap • 76 percent believe their organizations need to develop global-leadership capabilities, but only 7 percent think they are currently doing so very effectively1 • 30 percent of US companies admit that they have failed to exploit fully their international business opportunities because of insufficient internationally competent personnel.2 1 Developing the Global Leader of Tomorrow, a joint project of Ashridge Business School as part of the European Academy of Business in Society (EABIS) and the United Nations Global Compact Principles for Responsible Management Education (PRME), based on a survey conducted in 2008. 2 Shirley Daniel and Ben L. Kedia, US Business Needs for Employees with International Expertise, Conference on Global Challenges and US Higher Education at Duke University, Durham, NC, January 23–25, 2003. 14 But It’s Not Just An International Issue • Almost all developing countries are seeing shifts in their workforce and marketplace profile • • • • Age shifts Immigration impacts Female participation rates The “culture” of technology, networking, virtual work, and crowdsourcing of ideas • Leaders who are culturally agile recognize the need to factor these changes into business strategies 15 Poll #3: Cultural Competence Does your organization currently evaluate cultural competence in the assessment of leaders? a. Yes b. No c. Considering it 16 Strategy and Metrics -- The Perfect Vehicle for Equipping and Engaging Leaders • Takes leaders from being actors in, to authors of, the D&I playbook • Enables honest dialogue on what aspects of D&I matter for the success of the business • Avenue for leaders to learn more about • The bigger (external) picture • The root causes of internal status quo/progress or lack of it • What the numbers mean • Their own biases and assumptions (developing cultural competence) • Opportunity to personally “connect the dots” from their own vision and business goals to D&I • Chance to determine and own the expectations and metrics 17 Most Effective Roles for Key D&I Stakeholders D&I Center of Excellence (COE) Business Unit Leadership and Their Teams Chief Diversity Officer • Set strategy and goals • Communicate importance of D&I for business outcomes • Own responsibility for implementation and outcomes 18 • Provide expertise, direction, guidance, coaching and support to the business units • Ensure partnerships between business and HR, ERGs, Procurement, Community Relations, etc. 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 19 What’s Required • Clear roles for business leaders v. HR/D&I • Create the structure • Identify champions in the business • Raw material for the business case • 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 20 The Essential Dialogue: What Are the Unique Links Between the Business Bottom Line and D&I? A Metrics-Driven Approach that Accelerates D&I by Starting from the Business Strategy Business Goals 21 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 Strategy Development Example: Workforce & Workplace HR & Strategies Business Goal Leverage social media to increase on-line Sales to younger buyers 22 Hire additional IT and Marketing staff with social media expertise D&I Linkages Many of those in target workforce are Gen Y, from diverse backgrounds Have different career goals/ expectations Gap Analysis • Don’t have strength in recruiting or retaining targeted workforce; need new sources/ approaches to recruitment and retention D&I Strategies Improve brand image with targeted workforce Increase workplace flexibility and openness Implement new career paths for some functions D&I Metrics Perception of company brand by potential hires Employee feedback on workplace flexibility/other aspects of culture Hire and retention stats Strategy Development Example: Marketplace & Community Business Goal Leverage Social Media to Increase On-line Sales to younger buyers 23 Business Strategies Update online brand image to appeal to 25-35 market D&I Linkages Target market has significant racial/ethnic and economic diversity – will need to assess impact on product branding and marketing vehicles Gap Analysis D&I Strategies D&I Metrics • Do not currently have adequate market segment data • Few linkages to on-line communities attracting targeted segments Conduct further research, starting with tapping Young Professionals ERG, who can also provide links to virtual (and actual communities) Market share increases Response rates to social media marketing # of ideas implemented from ERGs Helps leaders achieve business goals not possible without the added-value of D&I 24 Examples of Business-Led D&I Initiatives • Business case workshop for medical devices company that produced action list for business and functional leaders • 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 25 Accountability Case Example 1: Financial Services • Premises: • Increasing sales of financial services offerings is the desired outcome – the numbers are what matter in our environment • We hire the best of the best, but they are not all producing at the same level • We are wasting money, time and talent by not managing all employees to maximize productivity and success (theirs and the organization’s) • We evaluate and reward managers based on financial outcomes • Solution: • Create metrics that drive the desired underlying managerial behaviors related to productivity from diverse teams, AND • Tie results directly to financial rewards – plus or minus impact 26 Accountability Case Example #1 (cont’d) Goals and Means for Achievement: Establish clear direction for managers Ensures manager focus on: Growing headcount Driving revenue growth Supporting trainee development Encouraging teaming opportunities Promote metrics-based results Enhance accountability Develop specific measures based on historic performance and desired outcomes Utilize a carrot and stick methodology to encourage desired results Supply detailed reporting to managers to enable regular tracking and identification of opportunities 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 27 Metrics Case Example 2: Sodexo 28 Poll #4: Linkage Between D&I and Rewards Does D&I performance by managers in your organization currently have compensation-based consequences? a. Yes b. No c. Considering it 29 Recognition Mechanisms Tied to Higher Diversity Performance Linking >5% of bonus to diversity E-mails/publications to ees Diversity awards Recognition in mgt meetings 0 High-performing companies 50 100 Other Companies 150 From Senior Leader Impact on Diversity: What Really Works? Industrial Relations Counselors, Inc., study conducted by ORC Worldwide, Global Equality, Diversity and Inclusion Practice, August 2008. 30 Let’s Encourage Leaders to: Stop • • • • • 31 Shifting responsibility for D&I over to HR Leading from a distance Failing to connect D&I to products, customers, suppliers, innovation and process improvement Delegating D&I to subordinates without holding them accountable Focusing solely on workforce demographics as measure of success Start • • • • Digging deeper to understand the D&I status quo Being primary drivers in making the specific linkages between D&I and the business Looking for examples of D&I’s contribution to the business – and publicly recognizing those who make it happen Holding directs accountable for D&I behaviors and results that are tied to THEIR business outcomes Continue • • • Asking for evidence of D&I contribution and progress Affirming D&I as an organization value in public statements and through participation in external initiatives that focus on diversity and inclusion Expanding their role as active agents of D&I change Your questions and comments? 32 Contact Information APTMetrics, Inc. One Thorndal Circle Second Floor Darien, CT 06820 203.655.7779 [email protected] www.APTMetrics.com 33 Global Strategies for Talent Management.