... But can you walk the walk? These chief diversity officers say the best diversity practices are about more than good intentions--they're about measurable results. How does your company stack up?WHEN WE PUBLISHED OUR LIST OF THE "30 Best Companies for Diversity" in July, we learned that as much as corporate America touts the importance of diversity in business, many companies are still uncertain about how to maximize the benefits of a more creative and strategic workforce to enhance their bottom lines. They are unsure about how changing U.S. demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. as well as emerging global markets will impact how they market goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. . We've learned that even those with a "good" record in diversity still struggle with implementation. Ask Marcel T. Thomas, the 43-year-old chief executive of GE Aviation Materials, who is skeptical of General Electric Co.'s reportedly strong track record in diversity. An employee since 2001, Thomas is suing GE, claiming the company engaged in discriminatory practices against African Americans African American Multiculture A person having origins in any of the black racial groups of Africa. See Race. , underpaid un·der·paid v. Past tense and past participle of underpay. underpaid Adjective not paid as much as the job deserves underpaid adj → black managers denied them promotions, and retaliated against them when they objected. General Electric did not make BLACK ENTERPRISE's "30 Best Companies for Diversity," but 17 of the companies on our list have been the target of discrimination lawsuits within the last two years. In fact, lawsuits, complaints, and frustrations--on both sides of the table-are a result of the many challenges experts suggest will be ongoing as corporate America struggles to manage issues surrounding gender, race, and culture. "We have to remember that a corporation is actually a microcosm mi·cro·cosm n. A small, representative system having analogies to a larger system in constitution, configuration, or development: "He sees the auto industry as a microcosm of the U.S. of society," explains Essie Calhoun, vice president, chief diversity officer, and director of community affairs for Eastman Kodak Co. "So, what we are attempting to do when we come together to work is what, in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and globally, has not been successful and what society has not achieved." Recently, BE hosted a Chief Diversity Officers Roundtable at our New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of headquarters. We did this to give our readers an inside look at how corporate diversity programs work, from the leaders responsible for their execution and implementation. Calhoun and several other senior-level diversity executives came together for a candid discussion of the challenges and benefits of developing a diversity program that serves the business agenda of an organization and embraces all associates of the company. Those in attendance included Kedrick Adkins, CDO (Collaborative Data Objects) A programming interface from Microsoft for accessing MAPI-based e-mail, calendaring and scheduling servers. Originally called "OLE Messaging" and "Active Messaging," CDO wraps the Enhanced MAPI library into a COM object that provides the and country managing director for Accenture; Emmanuel Bailey, vice president and CDO of Fannie Mae Fannie Mae: see Federal National Mortgage Association. Corp.; Andre Goodlett, senior director of diversity for the Hershey Co.; Pat Harris, CDO at McDonald's Corp.; and Charlyn Jarrells Porter, senior vice president and CDO for Wal-Mart. All of the companies represented by these executives participated in BE'S most recent diversity survey. Three of the companies-McDonald's, Eastman Kodak, and Wal-Mart--made our diversity list. Although each company has had unique experiences with diversity and inclusion, these corporate diversity leaders agree that there are several components necessary in taking diversity beyond "the right thing to do" and making it integral to the operational culture of a corporation. They include having support from the CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , incorporating diversity into the business plan of the company, getting all employees to understand the business imperative of diversity, measuring accountability, developing a viable pipeline of talent, and promoting inclusion so that all employees feel important in an organization. The following discussion provides valuable benchmarks for what your employer should be doing to not just talk the talk, but walk the walk. THE BUCK STOPS WITH THE CEO Why it's important: The CEO and chairman are the visionaries and strategic leaders of an organization. They set the agenda for what plans get implemented. "Whenever you see your CEO and hear him talking about diversity," explains Charlyn Jarrells Porter, "it sends a very clear message, very quickly, to everyone about what the priorities are." The chairman and CEO are also responsible for changing the organization's culture, which sets the tone for how business is executed. As a result, says Bailey, organizational culture Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . and diversity are inextricably in·ex·tri·ca·ble adj. 1. a. So intricate or entangled as to make escape impossible: an inextricable maze; an inextricable web of deceit. b. connected. Challenge: Many CEOs talk about the importance of diversity, but in a survey of 1,700 human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. executives, only 30% of their companies had diversity officers who reported directly to the CEO, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Novations/J.Howard & Associates, a Boston-based global consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a . Solutions: The CEO must be committed to direct engagement and leadership in the restructuring and implementation of diversity goals. In 2004, Calhoun says, then-Eastman Kodak CEO Dan Carp decided to have the chief diversity officer report directly to him instead of the chief administrative officer A chief administrative officer (CAO) is responsible for administrative management of private, public or governmental corporations. The CAO is one of the highest ranking members of an organization, managing daily operations and usually reporting directly to the chief executive . "I think that kind of positioning says how relevant we've proven ourselves to be." Harris reports that at McDonald's, CEO Jim Skinner and other leaders in the organization regularly meet with employee networks and affinity groups A special interest group. This is a marketing term for a group of people with similar interests. representing workers of diverse ethnicities, genders, and lifestyles. "We have roundtables with the affinity group leaders and with our president and CEO so that they can share what their particular groups are talking about and raise issues that might come up." IF IT'S NOT MEASURED, IT DOESN'T COUNT Why it's important: "The vision is important, but the vision alone doesn't do it," says Hershey Co.'s Goodlett. To be effective not just as a business initiative but as a business operation, diversity has to be applied and measured against goals and objectives like every other business function of the company. Challenges: "There are a lot of organizations that go through the process, talk about it, and describe what they would like to have happen," explains Adkins. "But to truly focus on outcomes-related to recruitment, promotion, retention, attrition Attrition The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry. Notes: , the number of minorities and women at the senior executive level-at some point, you have to demonstrate that you've actually made some progress." Solutions: According to Adkins, the results they've seen at Accenture are a result of focusing on metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. ; targets; objectives; and "taking diversity and inclusion and transitioning it to a function similar to how we look at operations, finance, and H.R. and giving it the same kind of visibility and important impact." Measurement also provides a way to make management accountable to goals and objectives, says Fannie Mae's Bailey. Jim fond of repeating a statement from our former chairman, Jim Johnson, who says, 'What gets measured gets managed.'" Bailey says Fannie Mac evaluates its managers partly on their effectiveness in coaching and developing diverse employees. All the companies represented at the roundtable tie compensation to executing and meeting diversity goals. For example, at Wal-Mart, "If officers have not achieved their diversity goal, they lose 15% of their incentive bonus," says Jarrells Porter. THE EMPLOYEES HAVE TO GET IT Why it's important: The business case is critical, stresses Adkins, because it takes diversity beyond numbers, beyond a body count, which is important in getting managers and staffto see more than just race and gender. It helps them appreciate the benefit of diverse talent. Solutions: "I can identify situations where we have won work, as a consulting organization, that can be attributed to the diversity in our team, not just in terms of the faces and the colors and genders but the creativity that emanates from that diverse team," Adkins explains. Because of the sensitivity around issues of gender, race, and culture, evaluating diversity in a business context can also redirect re·di·rect tr.v. re·di·rect·ed, re·di·rect·ing, re·di·rects To change the direction or course of. n. A redirect examination. re management styles to be more effective and results-driven. Bailey explains: "If you are not comfortable dealing with certain ethnic groups on your team, then the real issue is not about diversity. The real issue is your failing as a manager from an accountability standpoint, and how we are delineating what our expectations of you are as a manager." IS THERE A SUCCESSION STRATEGY? Why it's important: An important criteria by which we chose our "30 Best Companies for Diversity" was the area of senior management representation, which in an organization speaks not only to recruitment and retention but also the development of talent. "Until you get the diversity program connected to the succession-planning process, which is the lifeblood life·blood n. 1. Blood regarded as essential for life. 2. An indispensable or vital part: Capable workers are the lifeblood of the business. of how talent moves through the organization," says Bailey, "you're not going to be successful." Many of the executives on the roundtable discussed the importance of creating a viable pipeline that extends far enough into the organization to acquire a "critical mass of folks," says Goodlett. Challenges: Too many companies have only token representatives of a diverse group. The whole concept of pipeline, Goodlett explains, eliminates token candidates. "The [current] thought process is, if I lose one I've got to bring another one in." The other concern is tracking results. "If you're not tracking that people are moving up in the organization, you won't get the result," says Calhoun. Solutions: Goodlett and many of the other CDOs agreed that having a robust pipeline supports a range of diverse candidates, even if one or two leave the organization. The two highest-level executives for McDonald's U.S. business are minorities: president Ralph Alvarez Ralph Alvarez (born 1955 in Cuba) is a Cuban-American businessman and the current President and COO of McDonald's Corporation. Prior to becoming President and Chief Operating Officer, Mr. Alvarez served as President, McDonald's North America. , a Hispanic, and CO0 Don Thompson Donald Thompson, Donald Thomson, Don Thompson or Don Thomson are names shared by the following individuals:
Fannie Mae selects candidates by first identifying the core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
NOT JUST DIVERSITY, BUT INCLUSION Why it's important: As a work environment becomes more diverse, it becomes increasingly necessary for everyone in the organization to feel like an important and contributing member. Calhoun says it requires an organization to build a diversity competency. "I believe it is even more critical, the more diverse we become," she explains, "because we then have to take all of these different people that we put in the workforce together and make sure now that we really do have teamwork." Challenges: In many companies, there is the perception that the business emphasis has become consumed with supporting minorities, which has left some feeling alienated al·ien·ate tr.v. al·ien·at·ed, al·ien·at·ing, al·ien·ates 1. To cause to become unfriendly or hostile; estrange: alienate a friend; alienate potential supporters by taking extreme positions. in the workforce. "We had some backlash from white males last year," explains Jarrells Porter, "because to them, it re@ seemed like we were focusing primarily on minorities and women." Solutions: Many organizations provide forums to discuss the concerns of those who may feel alienated by diversity efforts. "We have a white male forum that is facilitated by white males, and it provides them with an opportunity to talk about what diversity and inclusion means in a comfortable setting, where they are not intimidated in·tim·i·date tr.v. in·tim·i·dat·ed, in·tim·i·dat·ing, in·tim·i·dates 1. To make timid; fill with fear. 2. To coerce or inhibit by or as if by threats. by women or people of color Noun 1. people of color - a race with skin pigmentation different from the white race (especially Blacks) people of colour, colour, color race - people who are believed to belong to the same genetic stock; "some biologists doubt that there are important who might say, 'You're racist' or 'You're sexist sex·ism n. 1. Discrimination based on gender, especially discrimination against women. 2. Attitudes, conditions, or behaviors that promote stereotyping of social roles based on gender. ,"' says Harris. "That helps because when they say 'Well, we are not included,' we say 'Well, yes you are.'" The participants did admit that for all their efforts, they and their companies are indeed on a journey to overcome the challenges and fine-tune their diversity agenda. They also agreed that diversity is everybody's responsibility. "In a culture of accountability," says Goodlett, "I am as accountable for my interactions with my boss as my boss is accountable for his interactions with me." It is incumbent upon individual employees to seek out opportunities, investigating the companies that are serious about measurable track records on diversity. Career advancement, however, is also determined by how effectively candidates can build their communications vehicle within their company and industry. And by how well the match competencies with those required by their organization. It will also be imperative for African Americans to build alliances and a business network of diverse contacts here and internationally as companies expand into emerging regions. Globalization globalization Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation , U.S. population shifts, and the bottom-line demands of business and industry will continue to drive and formulate how diversity and inclusion become a profitable tool for progressive organizations. Companies concerned about diversity conduct business well, taking their cues from the marketplace. "We have to continually change and evolve what we do to stay relevant," says Adkins, "so that we can support our businesses and support the objective." As a result, the corporate environment will indeed become more competitive, but it will also provide tremendous opportunities for African Americans and other minorities who are also flexible and able to stay relevant. |
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