2015 APTMetrics

Taking Your Leaders FromBuy-In to Bottom Line

Mary L. MartinézD&I Practice Leader

As presented at: SHRM 2014 Tri-StatePre-Conference Diversity and Inclusion Summit

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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

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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APTMetrics’ U.S. Offices

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• 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

Agenda for Today’s Session

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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-demonstrate-commitment-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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More of which one of these behaviors would have the greatest impact on your organization’s D&I progress?

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

Poll #1: What Could Leaders Do More Of?

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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 BehaviorsDiversity 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-diversity-and-inclusion/

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Aspects of Direct Report Accountability

Personal Behavior Rated in Performance Review

Directs Must have D&I Objectives

Leader Holds Direct Reports Accountable

0% 20% 40% 60% 80% 100%120%

50%

83%

75%

88%

100%

100%

High diversity performers Other companiesFrom 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)

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)

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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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• 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.

The Global Competence Gap

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• 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

But It’s Not Just An International Issue

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Poll #3: Cultural Competence

Does your organization currently evaluate cultural competence in the assessment of leaders?

a. Yesb. No c. Considering it

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• 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

Strategy and Metrics -- The Perfect Vehicle for Equipping and Engaging Leaders

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Most Effective Roles for Key D&I Stakeholders

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

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

Business Unit Leadership

and Their Teams

D&I Center of Excellence

(COE)

• Set strategy and goals

• Communicate importance of D&I for business outcomes

• Own responsibility for implementation and outcomes

Chief Diversity Officer

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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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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

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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

A Metrics-Driven Approach that Accelerates D&I by Starting from the

Business Strategy

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

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Strategy Development Example: Workforce & Workplace

Leverage social

media to increase on-line

Sales to younger buyers

Hire additional IT

and Marketing staff with

social media expertise

Many of those in target

workforce are Gen Y, from

diverse backgrounds

Have different career goals/ expectations

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

Improve brand image with targeted

workforceIncrease

workplace flexibility and openness

Implement new career paths for some functions

Perception of company brand

by potential hiresEmployee

feedback on workplace

flexibility/other aspects of culture

Hire and retention stats

Business Goal

HR & Strategies

D&I Linkages

Gap Analysis

D&I Strategies

D&I Metrics

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Strategy Development Example: Marketplace & Community

Business Goal

Business Strategies D&I Linkages Gap Analysis D&I Strategies D&I Metrics

Leverage Social

Media to Increase On-line Sales to younger buyers Update

online brand image to

appeal to 25-35 market

Target market has significant

racial/ethnic and economic

diversity – will need to assess

impact on product

branding and marketing vehicles

• 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 increasesResponse

rates to social media

marketing# of ideas

implemented from ERGs

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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

· 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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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. Yesb. No c. Considering it

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Recognition Mechanisms Tied to Higher Diversity Performance

Recognition in mgt meetings

Diversity awards

E-mails/publications to ees

Linking >5% of bonus to diversity

0 20 40 60 80 100 120

High-performing companies 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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Let’s Encourage Leaders to:

Stop• 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

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Your questions and comments?

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