d & i value model

THE DIVERSITY AND INCLUSION VALUE MODEL

Creating Customer Value Through Diversity and Inclusion

Quantum Associates, Inc 1

D & I Value Model… …the components of a successful D & I Process

At a high level Y= f(x)...where x1 to xn are the elements that affect Y

D & I ∫= OrganizationalComposition

+ OrganizationalCulture

+ Organizational Performance

•Workforce demographics•Promotions• Separations• Hiring

•Climate surveys•Employee surveys•EEO complaints•Grievances•Employee Turnover•Disciplinary actions

•Business objectives•Outcome metrics• Customer response time• Productivity• Profitability

OrganizationalMeasuresOf Success

•Career Goals•Experiences•Networks•Education•Talent•Skills

•Mentoring•ERG’s•Interdependent Teamsand Projects•Self- and Cross Accountability

•Current Job Goals•Performance Execution•Skill Development

IndividualMeasuresOf Success

2Quantum Associates, Inc

Measure Organizational Performance

Profits

Before After

Talent Acquisition/Turnover Costs

Before After

Internal & External Customer Satisfaction

BeforeAfter

Productivity

AfterBefore

According to Gallup Workplace Studies diversity and inclusion leads to employee engagement which creates better performance in the following KPIs• Profitability• Talent Acquisition/ Turnover• Customer Satisfaction• Productivity

Baseline each of the metrics before D & I implementation and measure during and after sustained implementation.


Components of each Metric

Metrics co-developed by Gloria Cotton and Willie Carter


Talent Acquisition and Turnover Costs

Disciplinary ActionsRecruitmentEmployeeTurnover

Customer Satisfaction

EEO ComplaintsMorale

Legal ConcernsGrievances

Productivity

Innovation

Impact on Profit


PROFITS

Productivity

Customer Satisfaction

Talent Acquisition & Turnover Costs

Innovation

Morale

Grievances

Legal

Concerns

Recru

itmen

t

Em

plo

yee

Tu

rno

ver

Linking Lean to D&I Process Current Organizational process

Evaluate current state for customer value creation Create Complexity Value Stream Map and identify

non-value-added (NVA) activities Identify cost impact of removing NVA activities

Redesign process –create waste free future state Simplify process by removing NVA (waste) Establish quantitative metrics and ways to monitor

progress


Lean D & I

Linking Lean to D&I Process

Future Organizational Process Design process around speed and

simplicity and creating internal and external customer value

Establish quantitative and qualitative metrics and ways to monitor progress


Lean D & I

Goal: Simplify the D & I Process

NVA

NVA

NVA

VAVAVA

NVA

NVA

NVA

NVA

NVA NVA

Input Output

NVA

NVA

NVA

VAVAVA

NVA

NVA

NVA

Input Output

NVA VAVAVA

NVA

Input Output

Current StateRed = Non-value-added stepsBlue = business non-value-added stepsGreen = Value-added steps

Future StateLower Work In Progress (WIP), non-value-add cost and lead time

Ideal StateLowest WIP, non-value-add cost, and lead time


The Impact of the Eight Lean Wastes on Managing People Overproduction: Producing work or providing a service prior to

it being required or requested. Training employees far in advance of applying the newly learned skills

Waiting: Waiting for anything, people, signatures, or information Waiting to work together or postponing team formation to accomplish

a higher level of business performance; lack of empowerment, trust and appropriate authority

Motion: Extra steps taken by people. Any movement of people or information which does not contribute to adding value to the product or service

The wasted motion of focusing on people flaws and weaknesses rather than their strengths; not utilizing or developing strengths; creating negative competition

Transportation: Transporting something further than necessary; movement of work that does not add value

Scattered or unplanned routes connecting knowledge and application of the knowledge; not knowing or leveraging current resources


The Impact of the Eight Lean Wastes on Managing People Over-processing: Putting more effort into work than is

required by the internal or external customer Spending too much time creating barriers to intellectual discourse

and team problem solving; using a “one-size-fits-all” approach in product development and marketing

Inventory: Excess inventory that is not required for current customer use

Excess/misdirected/incomplete information that do not directly support work being performed.

Defects: All the processing required in creating a defect and the subsequent activity required to correct it

Behavioral defects caused by disrespecting the differences in people

Underutilization of People: Not utilizing people’s skills and talents to the fullest extent possible

Not cross training employees; not knowing the skill, etc., having an environment where it isn’t safe to reveal strengths or needs


Proposed Solutions for Eliminating the Waste of Our Human Resources Define the operational objective before

beginning to design your organization Determine how you want the process to work Actively drive organizational values throughout

the organization that address how individuals will work together

Understand the activities, connections, and flows (org, dept., and individual) of your processes

Build your organizational design around the most efficient ways to make those connections and flows work


Proposed Solutions for Eliminating the Waste of Our Human Resources

Design your organization around the process that you want Prioritize the process flow around stable and predictable

outcomes Create behavioral competencies for each role that

demonstrate organizational values; link to performance standards and measures

Clearly understand the supporting activities and connections within the work.

Design your organizational structure, and the roles and responsibilities, around an understanding of the process, including exceptions and problems within the process.


Customer Send RFQ

Sales Rep 1Start QEF

Check Inventory

Estimator Finish QEF

Sales Rep 2Generate Quotation

CustomerLog time

RFQ RFQ RFQ Q

QEF QEF


Develop teams as a supporting structure Teams in a lean environment need the following:

A common drive provided by vision, mission, metrics, and goals; Link departmental, team, project and individual VMMG to those of the organization

A common language, common principles, and common tools while acknowledging, honoring and leveraging differences

They need to design the work around them, addressing all technological, learning and communication style needs (vs. visually alone) so that there is high agreement about what work must be done and how it should be done — and immediately exposing problems so that they may be resolved.



Establish and communicate the metrics These metrics should support daily decision

making The metrics should point in a steady and

consistent direction toward achieving the ideal state

Develop metrics that address all language, technology and learning & communication style needs

Communicate the metrics with visual dashboards posted prominently in your organization



Communicate across boundaries Improve your communications, particularly

across boundaries such as departments, function, culture, language, generation and other organizational and human diversity dimensions

Process focus takes priority over functional focus Clarify and communicate each employee’s role

Clarify each of your employee’s roles and responsibilities and clarify link to project, team, departmental and organizational vision, mission, values, metrics and goals

Maintain role clarity as these roles dramatically change during the lean transformation



Acknowledge and celebrate successes Make sure objectives remain clear so your

employees will feel, experience and be able to articulate accomplishment

Clearly define quantitative and qualitative milestones linked to the VMMG, communicate progress toward them, and celebrate successes along the way.

Develop and align reward and recognition systems appropriate for defined milestones


The D & I Cost Assessment

Objective of the Assessment Develop a baseline of D & I costs Tool to assess non-value-added

activities (waste) in D & I process Follow on study to measure

improvement in D & I cost elements



Step 1: Selecting a D & I Cost Assessment Team Choose a cross-functional team of 5-8 members

representative of the organization or each of the departments to be assessed, as well as an accounting team member to help quantify the costs.

Step 2: Conduct D & I Cost Team Overview The overview will minimally consist of:

Review of standard list of cost element definitions Examination of the detailed cost elements within the

chosen categories Determining departmental examples of D & I activities

and processes that illustrate the cost elements Methods/techniques for collecting D & I cost data



Step 3: Planning the Assessment Prepare an organization or departmental listing of D

& I cost elements Establish accounts for these elements (optional) Select interviewees for each department

Step 4: Kick-Off Meeting Hold meetings for each department being assessed

to explain the purpose of the study, the type of information the team wants to collect, and answer any questions. This is essential for creating buy-in by the departments prior to conducting the assessment.



Step 5: Conducting the Assessment Team members work with respective departments

to complete D & I cost assessment by interviewing the selected candidates and record data collected.

Step 6: Compiling and Analyzing the Information Compile the data collected on the departmental

worksheets. Develop material cost and expense information needed to measure the waste and non-value-added activities driven by D & I process.

Classifying the various cost elements into controllable and uncontrollable categories



Step 7: Presenting the D & I Cost Assessment Results to Top Management After the D&I cost information is collected and

analyzed the results should be presented to top management. The presentation should be structured as follows:

The purpose of the assessment Assumptions used in the assessment Results of the assessment Actions needed to be taken Benefits to the organization if action is taken Bottom line impact of the information
