Transcript Slide 1

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:
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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
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Global
Strategies
for Talent
Management.
Our Areas of Expertise
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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
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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
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“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/
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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.
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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?
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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.
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Most Impactful Leader Behaviors
Diversity Inc. research indicates best practices
for Senior leaders are:
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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/
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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.
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Poll #2: What Do You Evaluate?
Which of the following are used as measures in holding leaders accountable?
(Please select all that apply)
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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
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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.
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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.
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But It’s Not Just An International Issue
• Almost all developing countries are seeing shifts in
their workforce and marketplace profile
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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
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Poll #3: Cultural Competence
Does your organization currently evaluate cultural
competence in the assessment of leaders?
a. Yes
b. No
c. Considering it
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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
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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
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• 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
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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
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Workforce
Workplace
Marketplace (customers/suppliers)
Communities
• Specific plans, accountabilities, and milestones derived
directly from business strategy
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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
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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
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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
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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
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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
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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
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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
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Metrics Case Example 2: Sodexo
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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
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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.
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Let’s Encourage Leaders to:
Stop
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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
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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
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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?
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Contact Information
APTMetrics, Inc.
One Thorndal Circle
Second Floor
Darien, CT 06820
203.655.7779
[email protected]
www.APTMetrics.com
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Global
Strategies
for Talent
Management.