diversity journal - jan/feb 2006

Volume 8, Number 1 January / February 2006$8.95 U.S.

Also Featuring ... Waste Management’s Front-Runner Carlton Yearwood • Leaders on Black Leaders

2 Profiles in Diversity Journal January/February 2006

PUBLISHER James R. Rector

MANAGING EDITOR John S. Murphy

CREATIVE DIRECTOR Linda Schellentrager

ASSOCIATE EDITOR/ASSISTANT

TO THE PUBLISHER Damian Johnson

CONTRIBUTING EDITOR Laurie Fumic

OVERSEAS CORRESPONDENT Alina Dunaeva

WEB MASTER Jason Bice

LETTERS TO THE EDITOR

Commentaries or questions should be

addressed to: Profiles in Diversity Journal,

P.O. Box 45605, Cleveland, OH 44145-0605.

All correspondence should include author’s

full name, address, e-mail and phone number.

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Three separate features in this, our inaugural issue of 2006, reaffirmthe importance of executive leadership as companies initiate and develop diversity practices.

First, we have an extraordinary interview with Larry C. Glasscock—chairman, president, and CEO of WellPoint, Inc.—describing what ittakes to ensure the success of diversity initiatives in large corporations.Mr. Glasscock sees diversity as a multidimensional concept that appliesto both the culture and composition of the firm’s workforce. It involveseverything from respecting regional differences to offering health insuranceinformation in a Mayan dialect for Guatemalan immigrant communitiesin California. When a culture champion was needed within the company,Mr. Glasscock took on the role himself, becoming chair of the Diversityand Workplace Culture Executive Steering Committee—a perfect example of a leader leading.

Next, we kick off our Front-Runner series with a profile of CarltonYearwood, vice president of human resources, business ethics and chiefdiversity officer of Waste Management, Inc. You’ll like the no-nonsenseapproach this former teacher and Marine takes to diversity development.“Communicate clearly. Talk frequently. Follow up tirelessly,” he says.Would you expect anything less direct from an admirer of VinceLombardi and Colin Powell?

Finally, Diversity Best Practices offers its list of 15 best practicesamong companies with strong supplier diversity programs. It is no surprise that high on the list is the need for top-level support within thecompany. The leadership must come from the top—from folks likeLarry Glasscock and Carlton Yearwood.

Throughout the year we’ll be showcasing other companies whosediversity and inclusion programs feature aggressive plans and measurableachievements. We’ll focus on Exelon (March-April), Sodexho (May-June), Shell Oil (July-Aug.), and Waste Management, Inc. (Sept.-Oct.).Our March-April Front-Runner features Punam Mathur, Senior VPCorporate Diversity & Community Affairs, MGM Mirage.

We have one more treat for you to kick start the year and yourthinking. That’s our feature “Leaders on Black Leaders” that starts onpage 58. We asked our readers to comment about Black History Month,to share how they recognize black history, and to tell us about theirheroes. Their essays were more touching, thought-provoking, and inspiring than we dreamed possible.

We’ve packed a lot of good reading into this 80-page issue. Enjoy!

John MurphyManaging Editor


On the Cover / Special Feature

CEO Larry C. Glasscock Leads the Corporate Culture at WellPoint, Inc.WellPoint is the largest publicly traded commercial health benefits company in America.Mr. Glasscock describes the extraordinary work that goes into ensuring the success ofdiversity and inclusion programs even as the company is expanding.

Carlton YearwoodWaste Management, Inc. Vice President of Human Resources, Business Ethics,and Chief Diversity Officer CarltonYearwood describes the company’sdeep-rooted commitment to diversity atevery level.

17

46


CatalystStereotypes

What you don’t see or hear in the workplace hurtswomen. Catalyst has a new study, Women “TakeCare,” Men “Take Charge”: Stereotyping of U.S.Business Leaders Exposed. The study shows thatgender-based stereotyping may be the glue thatlocks the panes of the glass ceiling in place.

Diversity Best Practices Supplier Diversity

Supplier diversity is an area of growing interest for corporate America and for the government.Corporations are setting ambitious goals for themselves to reach out to businesses not traditionally included in the supply chain.

Diversity Who, What, Where & When

8

14

76

departments

Leaders on Black LeadersWe asked corporate leaders to reflect on black historyand the leaders they most admire. The essays wereceived were both touching and thought-provoking.58

At Dell, we respect the significance of Black History Month and

understand the importance of continuing its legacy. In addition,

it’s another opportunity to let the world know about our

commitment to diversity in the workplace. We believe in bringing

together individuals with diverse backgrounds, thinking,

leadership and ideas. Our employees are provided

with the best tools, like the Dell Latitude D610 with Intel®

Centrino® Mobile Technology, so that each individual has the

power to reach their full potential. In fact, diversity drives

innovation and makes Dell a more dynamic company.

Dell celebrates Black History Month.

Dell and the Dell logo are registered trademarks of Dell Inc. © 2006 Intel, Intel logo, Intel Inside, Intel Inside logo, Centrino and the Centrino logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.All rights reserved. Dell Inc. cannot be held responsible for errors in typography or photography. Dell is an AA/EO employer. Workforce diversity is an essential part of Dell’s commitment to quality and to the future. We encourage you to apply, whatever yourrace, gender, color, religion, national origin, age, disability, marital status, sexual orientation, or veteran status.

How do you get started? Visit www.dell.com/pdj.

CAREERS AT DELL. CONSIDER THE POSSIBILITIES.

Jeanne Oliver uses a Dell Latitude D610

with Intel® Centrino® Mobile Technology

Dell recommends

Windows® XP Professional

National City Taps Terri Hamilton Brown forCorporate Diversity Post

Terri HamiltonBrown has joinedNational City ashead ofCorporateDiversity. In hernew role, Brownacts as the singlepoint of contactfor NationalCity’s diversityand workforceinclusion pro-

grams, policies and procedures.National City Corporation (NYSE:

NCC), headquartered in Cleveland,Ohio, is one of the nation’s largest financialholding companies. The company operates through an extensive bankingnetwork primarily in Ohio, Illinois,Indiana, Kentucky, Michigan, Missouri,and Pennsylvania, and also serves cus-tomers in selected markets nationally.

“We’re proud Terri has decided tojoin our team,” said Dave Daberko,chairman and CEO, National CityCorporation. “Terri’s new role under-scores our commitment to developingand implementing a corporate strategythat focuses on managing workforcediversity and inclusion. Terri’s talent,experience and passion will help usachieve that goal.”

“I am excited to be a part ofNational City’s sincere dedication to creating a workplace defined by diversityand inclusion,” said Brown. “If our success matches that of National City’sother civic endeavors, we will haveachieved something very special.”

Prior to joining National City,Brown served as president of UniversityCircle Incorporated, a nonprofit organi-zation established to promote and provide direct services and real estatedevelopment activities in UniversityCircle—Cleveland’s premier arts, educa-tion and medical district. From 1998 to2003, Brown served as executive director

of the Cuyahoga Metropolitan HousingAuthority, where she was responsible for50,000 residents.

Brown has earned a bachelor’sdegree in economics from TheUniversity of Chicago and a master’sdegree in city planning fromMassachusetts Institute of Technology.

Marie Y. Philippe, PhD, NowLeads Workforce Diversity &Inclusion at Excellus BlueCross Blue ShieldMarie Y. Philippe, PhD, is now corpo-

rate vice presi-dent leading thecharge onWorkforceDiversity &Inclusion for theentire organiza-tion at ExcellusBlue Cross Blue Shield. Dr. Philippe hasmore than 24years of business

experience at leading firms such asGoldman, Sachs & Co., Dell ComputerCorp. and most recently as director ofculture management at Global Crossing.Dr. Philippe is trilingual and renownedfor her contribution in the areas ofworkforce multiculturalism.

In her new role, Philippe will helpshape the company’s strategy on multi-cultural talent acquisition, development,and retention as well as the future work-force planning and development.

Philippe’s educational backgroundincludes a doctorate degree in culturalstudies from Bircham InternationalUniversity, bachelor’s and master’sdegrees in economics from the CityCollege of New York, and an MBA fromC.W. Post. She is a lifetime member of the Black MBA Association and a certified professional in HumanResources.

Joan Kerr to Chair GlobalBusiness Committee

Joan Kerr, execu-tive director ofAT&T SupplierDiversityPrograms, wasnamed chair ofthe GlobalBusinessCommittee ofthe Women’sBusinessEnterprise

National Council (WBENC). The committee’s mission is to work withWBENC to build awareness of and foster education about the role ofwomen’s business enterprises (WBEs) inthe growing globalization of economies,supply chains and business opportunities.Kerr and other WBENC representativesattended a 2004 development conferencein Istanbul and met with internationalwomen’s business organizations and individual WBEs eager to pursue oppor-tunities in the private sector. Kerr’s previous involvement with WBENCincludes serving as chair of the board ofdirectors; she has served as vice chair ofthe board of directors since June 2005.

Kerr’s leadership in the supplierdiversity realm has been recognizedthrough her receipt of the Keeping thePromise Award from the CaliforniaDisabled Veterans Business EnterpriseAlliance, and her two-time receipt of theMBE Corporate Coordinator of the YearAward from the National MinoritySupplier Development Council. Shealso received the Corporate LeadershipAward from Asians for Corporate andCommunity Action, an employee-initiated organization of the former SBCCommunications, Inc.

Kerr holds a JD degree from theUniversity of California at Davis, a master of social work degree from theUniversity of Washington, and bachelorof science degrees in comparative religions and psychology from theUniversity of California at Santa Cruz.


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The Hartford Selects Medina Jett for GroupBenefits Compliance Post

SIMSBURY,Conn.—TheHartford FinancialServices Group,Inc. (NYSE: HIG)has announcedthat Medina Jett,an attorney withbroad complianceexperience, hasjoined the companyas vice presidentand chief compli-

ance officer for its Group BenefitsDivision.

The Hartford’s Group BenefitsDivision is a leading provider of groupdisability and life insurance, providing a portfolio of products to employers,associations, and affinity groups thatprotects employees, members, and affili-ates. In her new role, Jett will be respon-sible for the compliance functions forThe Hartford’s Group Benefits Divisionand will also serve on The Hartford’scorporate-wide compliance council.

“The Hartford’s long-standing commitment to integrity and the reputationthat we have earned with our customersand within our industry are among ourmost important assets,” said DickMucci, executive vice president anddirector of The Hartford’s GroupBenefits Division. “Medina’s complianceand claims management experience isvitally important in an increasingly complex regulatory environment.”

Jett brings many years of insurancecompliance experience to The Hartford.She last served as vice president andchief compliance officer for Prudential’sretirement business. Immediately priorto her work at Prudential, she held asimilar role at Cigna. When Prudentialacquired Cigna’s retirement business inApril 2004, Jett was responsible formanaging the integration of the twocompanies’ compliance organizations.

Jett received her law degree from

Georgetown University and is a graduateof Wesleyan University.

The Hartford is one of the largestfinancial services and insurance companiesin the United States, with worldwiderevenues of $22.7 billion in 2004. Thecompany is a leading provider of invest-ment products; life insurance and groupbenefits; automobile and homeowners’products; and business property-casualtyinsurance. International operations arelocated in Canada, Japan, Brazil and theUnited Kingdom.

DaimlerChrysler FinancialServices AnnouncesAppointment of Tracy L.Hackman to Vice President,General Counsel andRegional Secretary

FARMINGTONHILLS, Mich.—DaimlerChryslerFinancialServicesAmericas hasannounced theappointment ofTracy L.Hackman, whojoined the com-pany as a staffcounsel in 1987,

to vice president, general counsel and secretary for the Americas Region,effective January 1, 2006.

Hackman, who has served as associategeneral counsel and secretary since 1998,will become the first female executive inthe company’s 41-year history to leadthe Office of the General Counsel.DaimlerChrysler Financial ServicesAmericas LLC is a company of the DaimlerChrysler Financial ServicesGroup, headquartered in Berlin,Germany, which operates in 39 countrieswith an employee base exceeding 11,000and a global portfolio of approximately$135 billion. DaimlerChrysler FinancialServices is one of the leading financialservices organizations worldwide.

Hackman succeeds Christopher A.

Taravella, vice president and generalcounsel, office of the general counseland compliance services, who retired atthe end of 2005.

“We are very pleased to announcethe appointment of Tracy Hackman tolead our Office of the General Counsel,”said Klaus Entenmann, president andCEO of DaimlerChrysler Services NorthAmerica. “Tracy’s institutional knowledgeof our company and the automotivefinancial services industry, combinedwith her expertise in regulatory affairs,commercial transactions, and corporateaffairs, will serve us well in our highlycompetitive business environment.”

Hackman has held a number ofincreasingly responsible positions withinDaimlerChrysler Services andDaimlerChrysler Insurance Company.Her most recent position was associategeneral counsel and corporate secretary, DaimlerChrysler ServicesNorth America, and secretary,DaimlerChrysler Insurance Company.

She received a BA in finance (1982)and an MBA in advanced management(1996) from Michigan State University.She received a JD from the University ofDetroit School of Law in 1986.

Allstate Appoints Cynthia Hardy Young as New Encompass PresidentNORTHBROOK, Ill.—Cynthia HardyYoung has been appointed as the

president ofEncompassInsurance. She replacesDouglas R.Wendt, whoannounced hisdecision toretire after 32years of service.

“Cynthia hasthe experience

and ability to position Encompass as the carrier of choice for the independentagent,” said Edward M. Liddy, chairmanand CEO, The Allstate Corporation.


“We are confident that Encompass willcontinue to grow profitably under herleadership.”

Young joined Allstate in October,2005, as the assistant vice president ofproduct operations for Allstate Protection’sNortheast region which includesConnecticut, Maine, New Hampshire,Pennsylvania, Rhode Island, andVermont. Previously, Young was presi-dent of the personal lines division forAllmerica Financial Group. Prior to thatshe was vice president of product man-agement for the personal lines divisionof The Hartford Financial ServicesGroup, Inc., product manager and pro-fessional liability claims attorney atProgressive, and litigation associate atJones, Day, Reavis & Pogue.

Young received her bachelor of science in economics from XavierUniversity of Louisiana and her juristdoctorate from the University of NotreDame School of Law.

Encompass Insurance is a division ofAllstate Insurance Co. (NYSE: ALL)which provides insurance productsthrough independent agents. Encompassis a brand devoted exclusively to inde-pendent agents selling automobile,homeowner, and related insurance tomore than one million customersthrough a network of more than 2,800independent insurance agents.

Allstate is the exclusive administratorof Encompass personal automobile andhome insurance policies issued by theinsurance affiliates of CNA FinancialCorporation. More information onEncompass Insurance can be found atwww.encompassinsurance.com.

ChiquitaBrandsInternationalElects Dr. Clare M.Hasler toBoard ofDirectorsCINCINNATI,Ohio—Chiquita

Brands International, Inc. (NYSE:CQB) announced that Dr. Clare M.Hasler, 48, has joined its board of direc-tors. Hasler is executive director of theRobert Mondavi Institute for Wine andFood Science at the University ofCalifornia at Davis. She is a leadingauthority on “functional foods” that provide specific health benefits, such aslowering the risk of heart disease or cancer in addition to meeting basicnutritional needs.

“We are delighted to welcome Clareto Chiquita’s board,” said FernandoAguirre, chairman and chief executiveofficer. “Her extensive experience infood science, nutrition, and food safetywill help Chiquita as we continue tofocus on delivering healthy and convenient food choices.”

“Chiquita has embarked upon anexciting mission to become the globalleader in branded and value-added produce by helping the world’s con-sumers enjoy nutritional and healthyproducts,” Hasler said. “I am excited toadd my skills and experience toChiquita’s board and to work closelywith this management team.”

Hasler holds a dual doctoral degreein environmental toxicology and humannutrition from Michigan StateUniversity and a master’s degree innutrition from the Pennsylvania StateUniversity. She also earned a master’sdegree in business administration fromthe University of Illinois at Urbana-Champaign.

Chiquita Brands International, Inc.(www.chiquita.com) is a leading interna-tional marketer and distributor of high-quality fresh and value-added produce,which is sold under the Chiquita premiumbrand, Fresh Express and other relatedtrademarks. The company is one of thelargest banana producers in the worldand a major supplier of bananas inEurope and North America.

Johnson Controls ReceivesHighest Honor From NAACPMILWAUKEE, Wisc.—JohnsonControls (NYSE: JCI) has received theNAACP’s highest honor for the company’sleadership and continued support ofdiversity-based initiatives in Milwaukee.

The Working Together to Make aDifference Award was a highlight of theNAACP Milwaukee Chapter’s recentannual Dr. Martin Luther King/RosaParks Celebration.

“Encouraging diversity is an ongoingcommitment at Johnson Controls,” saidJohn Barth, chairman and CEO. “Whendiversity is achieved, everyone benefits, andJohnson Controls will continue to supportdiversity initiatives throughout Milwaukee.We are honored to receive this prestigiousaward,” Barth added.

Also recognized at the event weretwo members of Johnson Controls’ senior management team, Darlene Rose,senior vice president, corporate strategy;and Mary Dowell, director of communityrelations, for their exemplary work inencouraging corporate participation indiversity-specific programs and events.Rose was acknowledged for her work inand strategic planning of the JohnsonControls-sponsored NAACP NationalConvention held in Milwaukee last July.Dowell received the Drum Major forJustice Award, recognizing her outstandingefforts and service in Milwaukee’sminority community.

Johnson Controls is a global leaderin the production of innovative automotiveinteriors that help make driving morecomfortable, safe, and enjoyable. Forbuildings, it offers products and servicesthat optimize energy use and improvecomfort and security. Johnson Controlsalso provides batteries for automobilesand hybrid electric vehicles, along withsystems engineering and service expertise.The company employs 136,000 employeesin more than a thousand locations, servingcustomers in 125 countries. Founded in1855, the company is headquartered inMilwaukee. For additional information,please visit www.johnsoncontrols.com.

PDJPDJ

Can one person

change the world?

One did.

Rosa ParksFebruary 4, 1913 – October 24, 2005

The world is a better place because Rosa Parks lived in it.

The men and women of Lockheed Martin honor her life

and her contribution to the advancement of freedom for all.

Women hold more than one-half of all management andprofessional positions, but

there are currently only seven Fortune500 companies with women CEOs. Atthe same time, research shows thatwomen and men aspire to top positionsequally and analyses of more than 40studies show very little differencebetween women’s and men’s leadershipabilities. What can account for the startling gender gap in business leadership?

What holds the glass ceilingtogether?The “glass ceiling” has entered the collec-tive consciousness as one reason whywomen don’t advance. But for most people, the factors that actually comprisethe glass ceiling are still vague and unexplored. When pressed to name a specific component of the glass ceiling, some people might identify gender-basedstereotyping. But here again, a firmunderstanding of this concept is usuallylacking.

These deficiencies hurt womenbecause they fail to identify the specificactions and behaviors that hold womenback. And without that knowledge, it isimpossible to recommend meaningfulchanges. However, Catalyst’s new study,Women “Take Care,” Men “Take Charge”:Stereotyping of U.S. Business LeadersExposed, fills in many of the missing

pieces, and shows us that gender-basedstereotyping may be the glue that locksthe panes of the glass ceiling in place.

Gender stereotyping 101We rely on stereotypes—generalizationswe make to differentiate groups of people—to help us save time when figuring outhow to respond to people. But when theyare incorrect, as they are likely to be whenapplied to groups as diverse as womenand men, they create a system of percep-tions that has little basis in reality. In theworkplace, the reality is that there are fewdifferences between women’s and men'sleadership. Yet gender-based stereotypingis alive and well in business and plays amajor role in both women’s and men’sjudgments about women leaders.

How do they work? Gender-basedstereotypes anticipate and respond to thelegitimate differences between womenand men, helping us avoid spendingenergy determining personalities “fromscratch” whenever we meet someone.Because we are usually unaware of therole stereotypes play in our perceptions ofothers, we tend to believe that our stereotype-based judgments are based on facts. Tomake matters worse, stereotyping canelicit from people the very behaviors thatconfirm our stereotypes, and we have atendency to selectively remember actionsthat confirm our stereotypes, while wedismiss those that do not. The self-

reinforcing misperceptions that resulthave become a powerful and invisiblebarrier to women’s advancement.

Women and men stereotypeBecause of the silent and insidious natureof stereotyping, it is difficult to quantifyits existence. However, Catalyst’s lateststudy, conducted in cooperation withTheresa Welbourne, PhD, of the RossSchool of Business at the University ofMichigan, and eePulse, Incorporated,does just that, revealing that women andmen stereotype senior leaders in similarways. In the study, 296 top corporateleaders, including 101 CEOs, were askedto judge how effective women and menare on ten behaviors essential to leader-ship. The task-oriented behaviors (prob-lem-solving, influencing upward, anddelegating) were classified as stereotypi-cally masculine. The people-orientedbehaviors (supporting, rewarding, mentoring, networking, consulting,team-building, and inspiring) were classi-fied as stereotypically feminine.

Catalyst found that both female andmale corporate managers perceive womenleaders as better at “taking care” behaviorssuch as rewarding and supporting.Meanwhile, they perceive men as betterat “taking charge” behaviors such as delegating and influencing upward.Jeanine Prime, PhD, a director ofresearch at Catalyst and author of thestudy, remarks that “it’s often these

StereotypesWhat you don’t see or hear in the workplace hurts women.

By Catalyst


Profiles in Diversity Journal January/February 2006 15

‘taking charge’ skills—the stereotypically‘masculine’ behaviors—that are seen as prerequisites for top-level positions.”Misperceptions about those behaviors—and not fact-based information—frequently influence decisions that ultimately shortchange women.

Disturbing effects on womenWhile women and men judged mostleadership traits similarly, problem-solving—a hallmark trait of a CEO—wasthe behavior on which women and menmost disagreed. Women saw women asbetter problem-solvers than men, butmen saw men as better problem-solvers.Since men far outnumber women in theupper levels of the corporate world, thestereotypes they hold dominate and, ultimately, undermine women’s abilitiesto influence and motivate teams and subordinates. This may be particularlychallenging for women, who hold only15.7 percent of Fortune 500 corporateofficer positions, as they may not be ableto fall back on their status in the hierarchyof their organizations as an alternativesource of influence.

For women leaders in traditionallymasculine occupations (for example, general management, finance, sales,information technology, and research anddevelopment), the problems are evenworse. The study shows that people whoreport to women in those fields are significantly more likely to have negative

perceptions of women leaders than people who work for women in feminineoccupations such as human resources orpublic relations. This may seem counter-intuitive—after all, shouldn’t people who report to women have more factsand experience on which to base theirperceptions about women?

Not according to psychologists, whohave found that the tendency to processinformation selectively is especially likelywhen there is a status or power differencebetween the individuals involved. Sincestereotypes reinforce themselves, peoplewith women supervisors are actuallymore liable to believe that women are lesscompetent leaders. The resulting credibilitydeficit obliges women leaders to spendtime defending decisions to subordinateswhen they all could be doing more substantive work. The vicious nature ofthis situation cautions us that simply hiring more women leaders will not curbstereotyping in the workplace, especiallyin masculine occupations.

A call to actionUnless organizations take active steps toeradicate bias, women leaders will continueto be undermined and misjudged, regard-less of their talents and aptitudes.However, hiring more women executivesisn’t enough. Other changes companiesshould implement include: • Adding greater rigor to the

performance evaluation process.

• Implementing a system of checks and balances to safeguard againststereotypic bias.

• Educating managers and executivesabout the latent influence of stereotyping and ways to override it.

• Showcasing the achievements ofwomen leaders, particularly those intraditionally male-dominated fields.

By following these steps to dismantlethe network of prejudgment, assumption,and misrepresentation created by stereo-typing, companies will not only improvewomen’s productivity but also increasegeneral productivity and profits. As IleneH. Lang, president of Catalyst, empha-sizes, “until we break the spell of stereo-typing, companies will continue to suboptimize women and lose a vital talent pool—one they, frankly, cannotafford to ignore.”

Catalyst is the leading research and advisoryorganization working to advance women inbusiness, with offices in New York, San Jose,and Toronto. For more information or todownload a free copy of Women “TakeCare,” Men “Take Charge”: Stereotypingof U.S. Business Leaders Exposed, visitwww.catalyst.org. You may also sign up toreceive Catalyst’s issue-specific newsletter,Perspective, and monthly email updates [email protected].

PDJPDJ

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Diversity.It’s what drives us.

From the cadres of minority designers, engineers, and office staff to the men and women on the

factory floor and our network of minority owned dealers, we're dedicated to creating the best cars

and trucks possible. In fact, this dedication to work ethic, smarts, and quality is inherent in every

vehicle we produce. It's what makes us the proud American brands of DaimlerChrysler Corporation.

Taking up the challenge“IMAGINE BEING EIGHT YEARS OLD AND HAVING TO TRANSLATE A

DOCTOR’S COMPLICATED DIAGNOSIS TO YOUR MOTHER BECAUSE SHE

DOESN’T SPEAK ENGLISH,” CHALLENGES LARRY C. GLASSCOCK. “YET EVERY

DAY, PEOPLE ACROSS THIS COUNTRY FIND THEMSELVES IN A POSITION

LIKE THAT. IF YOU WANT TO UNDERSTAND WHERE OUR COMMITMENT TO

DIVERSITY MANAGEMENT COMES FROM, THERE’S A GOOD PLACE TO START.”

Mr. Glasscock is the chairman, president and CEO of WellPoint,

Inc., the largest publicly traded commercial health benefits company

in America. Formed in 2004 through the merger of Anthem, Inc.

and WellPoint Health Networks Inc., WellPoint now serves approxi-

mately 34 million members: Roughly one in nine

Americans carries a health benefits card from a WellPoint

company.

WellPoint carries out its commitment to diversity

at both the corporate and local levels. “It is about our

Diversity Management: A Vital Ingredient for a Healthy CorporateCulture

Putting principles

into practice

at WellPoint, Inc.


Special Feature WellPoint


communities and the people who live

there,” says Mr. Glasscock. “If you are

truly interested in meeting people’s

health care needs, you have to under-

stand their community and be a part of it.”

WellPoint is doing just that. A case

in point: the company’s October 15th

donation of $1 million to the California

Latino Medical Association (CaLMA).

The funds are directed toward attracting

and training qualified, Spanish-speaking

nurses to communities where they are

needed.

“Latinos are the most widely under-

represented minority in nursing,” says

CaLMA Executive Director Christine

Gonzalez. “They comprise the largest

number of wait-listed students, apart

from Native Americans. WellPoint’s

contribution has created an exceptional

opportunity to close the gap.”

Ms. Gonzalez applauds WellPoint’s

determination to answer a real and

pressing need.

“They came to us and said, ‘Where

is help needed most?’” she explains. “We

pointed to the language issue and said it

would take a lot of money to address it

in the proper way, and they were behind

it one hundred percent.”

Larry C. Glasscock WellPoint

A Brief History of WellPoint

WellPoint, Inc. is the product of a merger between

Anthem, Inc. and WellPoint Health Networks Inc.

Anthem, Inc. grew out of two Indianapolis-based mutual

insurance corporations formed in the 1940s that eventually

merged to form Blue Cross and Blue Shield of Indiana.

WellPoint Health Networks Inc. was formed in 1992 to

operate Blue Cross of California's managed care business;

it was spun off in 1993 as a separate publicly traded entity.

WellPoint is a licensee of the Blue Cross and Blue Shield

Association in 14 states.

Other subsidiaries include:

• HealthLink: network rental for workers' compensation

and health benefits programs in Missouri, Arkansas,

Illinois, Indiana, Iowa, Kentucky, and West Virginia

• UniCare: full-service health plan that serves medical

members nationwide

• AdminaStar Federal and United Government

Services: administrators of government health benefits

programs, primarily Medicare

• Lumenos: innovative, consumer-driven health care

products acquired by WellPoint in mid-2005

• Specialty: a wide range of benefits and services

including vision, dental, pharmacy-benefit management

and behavioral health programs


Not only will WellPoint’s contribu-

tion subsidize the training of Spanish-

speaking nurses, it will also allow existing

health care practitioners to further their

education. As Ms. Gonzalez explains,

“With more Spanish-speaking PhDs,

we will have more Spanish-speaking

teachers. And those teachers will be able

not only to help provide medical training

but also to raise cultural awareness among

nurses of all backgrounds. This program

really stands to build health care capacity

within California’s Latino community.

Even the governor is watching closely

now to see the kinds of results we

achieve.”

A community businessWhile WellPoint operates on a

national scale, its focus remains local. Its

mission is to “improve the lives of

the people we serve and the health of our

communities.” To carry out this mission,

WellPoint currently has a force of approx-

imately 42,000 associates, all focused on

balancing its “one company, one team”

core value and its national scope with a

strong local presence. And WellPoint

has made managing diversity a central

component of its corporate culture.

Setting the courseWellPoint’s leadership team recog-

nized the 2004 merger of two diverse

company cultures as an ideal opportunity

to define a new, unified corporate

culture and establish understanding of

the company’s strategic direction among

its associates.

Just weeks after the merger, the

executive leadership team, led by Mr.

Glasscock, dedicated an intensive three-

day session to defining a set of values and

guiding behaviors. Diversity manage-

ment was a strategic focus for both legacy

companies, and it was clear that it should

remain so for the new company, as an

integral element in meeting the goals set

forth in its long-term strategy.

Specifically, the WellPoint team

identified several areas in which diversity is

a core consideration:

• Integrating diversity-related values and

behaviors into the new corporate culture


WellPoint, Inc. — Company Snapshot

Business: Health benefits

Headquarters: Indianapolis, IN

Website: www.wellpoint.com

2005 Annual Revenue: approximately $45 billion

Number of Associates: approximately 42,000

Number of Members: approximately 34 million

Corporate Diversity Stats (through 2005)

Management positions held by women: 60%

Management positions held by persons of minority

background: 18%

Total promotions earned by persons of minority

background: 40%


• Fostering supplier diversity strategies

• Engaging in culturally relevant

community relations and philanthropy

• Developing leaders for tomorrow

• Equipping those leaders with the

ability to manage an increasingly

diverse workforce

• Understanding and addressing racial

and ethnic health disparities

• Addressing the needs of the diverse

mixture of the uninsured and the

under-insured.

These considerations touch on

virtually every facet of WellPoint’s

business. Mr. Glasscock took it upon

himself to personally communicate the

company’s new core values to managers

via face-to-face meetings and to all

associates via global voice and e-mail

messages—placing strong emphasis on

WellPoint’s commitment to diversity. In

fact, when it came time to appoint a

company culture champion, it was Mr.

Glasscock himself who assumed the

role. As such, he chairs the Diversity

and Workplace Culture Executive

Steering Committee, which is made up

of the chairman, president and CEO

and his direct reports.


Larry C. Glasscock, center, meeting associates from Lumenos,

which was acquired by WellPoint in mid-2005 and specializes

in innovative, consumer-driven health care products.

“We’ve said we intend to transform

health care and become the most

valued company in our industry.

Diversity management is an

integral part of that...”

—Larry C. Glasscock


Diversity management atWellPoint today

WellPoint actively cultivates oppor-

tunities for women and individuals from

minority backgrounds to advance

through the company ranks. In 2005,

60 percent of its management positions

were held by women and 18 percent by

minorities. The number of women in

management at WellPoint has climbed

more than ten percent since the turn of

the millennium, and this year alone nearly

40 percent of company promotions were

awarded to minority persons.

WellPoint also supports external organ-

izations that are focused on diversity.

It helped found the Diversity Leader-

ship Academy of Greater Indianapolis

(www.DLAGI.org) in 2003, which has

attracted national leaders such as Julian

Bond, Ray Suarez, and the late Coretta Scott

King to Indianapolis. More than 130 com-

munity and business leaders have graduated

from the academy since it was founded.

As well, WellPoint sponsors the

American Institute for Managing

Diversity (AIMD), the parent organiza-

tion that founded the Diversity

Leadership Academy. This November,

Mr. Glasscock served as co-chair of

AIMD’s 20th anniversary celebrations in

Atlanta.

The company’s focus on managing

diversity has not gone unnoticed by

external organizations, with recognition

coming from a wide range of sources

including Working Mother magazine,

Black Equal Opportunity Employment

Journal, the National Association of

Female Executives, FORTUNE, and

CAREERS & the disABLED magazine.

While this recognition is welcomed

by all at WellPoint including Mr.

Glasscock, he points to the company’s

new vision and mission as containing the

real measures of success.

“We’ve said we intend to transform

health care and become the most valued

company in our industry,” he explains,

quoting WellPoint’s vision statement.

“Diversity management is an integral part

of that: striving to mirror the markets in

which we operate and meeting the needs

of an increasingly diverse customer base.

I’m proud of the commitment our com-

pany has made. I’m excited by the steps

we’ve taken. And I’m looking forward to

continued progress in the years to come.”


Associate Julie Schlereth meeting Larry C. Glasscock

after the close of the Anthem and WellPoint merger.



WellPoint Chairman,

President and CEO

Larry C. Glasscock

shares his views on

managing diversity—

and why it’s a priority

Mr. Glasscock’s interest in—and com-

mitment to—diversity is longstanding.

And as he makes clear, his goal for

WellPoint is to ensure that diversity

management is not just an initiative, but

a fundamental way of doing business.

Part of WellPoint’s statedvision is to transform healthcare. That’s an ambitiousgoal, to say the least. Whathas motivated it?

We’ve done a great deal of research into

the state of our industry and come up

with four interrelated issues that consti-

tute what we call a ‘burning platform’—

conditions that absolutely rule out

maintaining the status quo. These are:

the growing ranks of the uninsured;

the continuing deterioration of public

health; the rising cost and declining

affordability of health care; and the need

for improvement in the safety and qual-

ity of care. These are big issues, and we

see it as our responsibility as an industry

leader to take action on them.

How do those concernsrelate to your stance ondiversity?

Diversity runs right through all of these

concerns. Recent research by organiza-

tions like the Institute of Medicine and

the American College of Physicians has

shown that there are racial and ethnic

disparities in health care. Minorities do

not always receive the same quality of

care as non-minorities. They do not

have the same access to health care, and

they’re not always well-represented in

the ranks of health professionals.

Overall, they have poorer health status

than non-minorities. We’re committed

to understanding and addressing these

issues.

What can WellPoint do tochange that?

Well, as I mentioned, one of the factors

contributing to health disparities for

people of color is the dearth of health

care professionals of color. The

WellPoint Foundation recently made a

million-dollar grant to the California

Latino Medical Association to fund

Dedicated to diversityinterview ::


scholarships for Hispanics and Latinos

pursuing nursing careers. We’re building

capacity in the region that will improve

access to health care and address some of

those large-scale issues identified in our

mission statement.

So it's important forWellPoint to have a diverseworkforce to make a connec-tion at the community level?

Absolutely, it is. Health care is about

people, and the people of this country

are diverse. To continue to develop a

diverse workforce, we’re looking at a

combination of external recruitment

and internal development. Both

approaches will produce some positive

short-term results, but we’re also

committed to doing the relationship-

building and branding work necessary

to stand out as an employer of choice

over the long term.

What are you doing at theleadership level to supportyour diversity efforts?

WellPoint has a dedicated Diversity and

Workplace Culture (DWC) team led by

our vice president of Diversity and

Workplace Culture, David Casey. David

reports to Randy Brown, our senior

vice president of Human Resources,

who reports directly to me. And our

Executive Leadership Team acts as the

DWC Executive Steering Committee,

and I chair that committee, so we’re all

very closely involved in determining

diversity strategies, measures and

approaches. Also, when I think about

the makeup of the company’s leadership,

I strive to ensure that there is diversity of

thought and experience at the table.

When you look at the backgrounds of

our leadership team, you will find a very

diverse set of professional experiences

and perspectives.

Do you believe the rest of thecompany understands that top-tier commitment to diversity?

There’s always education and communi-

cation to be done, particularly in a com-

pany that’s just come through a very

complex merger as we just have. But I

have to say I think our commitment and

values are understood very well through-

out WellPoint. We’ve had more than

200 associates volunteer to be Diversity

and Workplace Culture Ambassadors.

This is a very diverse group, representing

a broad range of backgrounds, job func-

tions and geographies. Group members

actively assist with training and educa-


interview ::


tion, communications and celebratory

events. They also serve as focus groups as

we assess our diversity strategies.

That sounds like a goodinclusion mechanism. Arethere other ways WellPointensures the inclusion ofemployees?

In November, we conducted our first

integrated, all-associate survey since the

merger. We’re now analyzing the survey

data from a number of different per-

spectives: ethnicity, gender, age, tenure,

business unit and location. We feel this

will provide a clear line of sight for the

development of effective action plans

and support our core value of personal

accountability for excellence.

How do you deal with thosewho think inclusion programsfor under-representedgroups are exclusionary for others?

We have a philosophy that diversity

management is about much more than

race and gender. Our strategic approach

to diversity management really is

designed to be inclusive of everyone.

It has to be, because it’s driven by our

business objectives, and we can’t afford

to be exclusionary in any regard. That

said, there will be times it is necessary

for us to specifically recruit minorities

and women—for instance, in situations

where we may not be as representative of

the market as we would like to be. And

because we are a government contractor,

affirmative action planning is a very real

and essential component of our diversity

management strategy. At the end of the

day, our overall goal is to serve our

diverse marketplace with associates who

best represent that marketplace.

How do you see that market-place changing in the future?

A key trend underway today is toward

CDHPs—consumer-driven health plans.

These are plans that allow consumers to

take a more active role in their health

and health care. By giving consumers

greater choice and responsibility,

supported by much better information

about health care options, consumer-

driven products can better meet the

needs of diverse individuals. We believe

the demand for these offerings is going

to keep growing. And it’s already chang-

ing the way we design our products and

services. For us, it’s an exciting opportu-

nity to interact closely with the end

users of our plans and products, to really

engage on the local, individual level.


:: interview

WellPoint strategies for

managing diversity

At WellPoint, ‘diversity’ is a multi-

dimensional concept. It applies in the

workplace—both culturally and in terms

of the composition of the company’s

workforce. It applies in the marketplace—

encompassing everything from respect

for regional differences to ensuring that

WellPoint’s slate of health insurance

products and services answers the full

range of consumer needs.

From WellPoint’s perspective,

diversity also has a great deal to do with

opportunity, whether it’s the opportunity

for someone from a minority back-

ground to advance professionally, or the

opportunity for Americans without

health insurance to gain access to the

care they need.

To meet its diversity-management

objectives, WellPoint engages in a wide

range of programs and initiatives, the

majority of which are intended to have a

discernable impact in the communities

where the company operates. Its strategies

are based on the four-quadrant model

established by the American Institute

for Managing Diversity. That model

involves:

1. Addressing issues of workforce

representation

2. Engaging associates through

meaningful relationships

3. Continuously assessing company

policies, systems and behaviors

4. Strategically leveraging all internal

and external diversity mixtures (which

in WellPoint’s case include customers,

shareholders, suppliers and others).

Covering all the basesWellPoint strives to ensure that its

workforce mirrors its markets by recruit-

ing and engaging a broad range of talent

across all levels of the organization.

In addition to diversity-oriented

employment campaigns via the Internet,

print and broadcast media, direct mail

and career fairs, WellPoint engages in

various educational outreach activities.

One such activity is its partnership with

INROADS, an organization that

provides business internships to promis-

ing young people of color while giving

corporations the opportunity to develop

diverse managerial talent.

WellPoint’s Core Values

One of WellPoint’s first post-merger integration projects was to articulate a new set of core values for the company. Crafted by Mr. Glasscock and his executive team over a three-dayretreat, those values were formulated as follows:

• Customer First

• Lead Through Innovation

• One Company, One Team

• Personal Accountability for Excellence

• Integrity

These core values are supportedby detailed guiding behaviors thatprovide a solid foundation for thecompany’s success.


A multidimensional approach



Together, WellPoint and INROADS

provide scholarships and internships for

minority students and also recruit new

graduates to participate in WellPoint’s

Health Insurance Professional Program

(HIPP). HIPP allows new college gradu-

ates to take part in a series of job rotations

over a two-year period, giving them a

well-rounded understanding of the com-

pany’s business and presenting valuable

opportunities for them to lead significant

projects.

Managing workforce relationships

WellPoint engages continuously in

efforts to ensure that its associates appre-

ciate the differences and similarities that

people bring to the company’s work-

place—illuminating for them the various

ways those ‘diversities’ can be put into

action for the company’s collective benefit.

Diversity training is required for all

associates and is delivered through new

hire orientation, new manager orienta-

tion, ethics and compliance training, and

corporate communications. In every case,

WellPoint seeks innovative ways to get its

message across. For example, a troupe

called Picture This Diversity Theatre acts

out real-world workforce-relationship

scenarios for participants in WellPoint’s

new manager orientation program.

Managers are then led through a facilitat-

ed dialogue about the most effective way

to work through the challenges presented

in the scenarios, learning through engage-

ment rather than by dictation.

WellPoint constantly assesses and

evaluates its policies and practices to

ensure that they support its strategic and

diversity-related aims, an effort that in

certain cases includes taking the ‘temper-

ature’ of employee opinion. During the

recent merger, for instance, WellPoint

surveyed its associates’ thoughts on the

topic of its Total Rewards program. The

end result was a market-competitive pro-

gram of benefits and rewards that offered

associates everything from flexible work

schedules and domestic partner benefits

to education assistance and more.


WellPoint engages continuously in

efforts to ensure that its associates

appreciate the differences and

similarities that people bring to the

company’s workplace—illuminating

for them the various ways those

‘diversities’ can be put into action

for the company’s collective benefit.



From the HIPP

Marcus Taylor discovered an unexpected

career opportunity through WellPoint’s

Health Insurance Professional Program

When Marcus Taylor decided to pursue acareer in health care, he pictured himself inhospital administration. That was before theHealth Insurance Professional Program(HIPP) led to a job as account manager inIndiana Large Group Sales.

“Life and leadership are about what you do to make other people’s lives better,” Mr. Taylor explained. After watching hisgrandmother struggle with the health caresystem, he knew he wanted to improveaccess to health services and how theywere delivered. So, following a stint in the Army, he pursued a degree in health policy and science at the University of Maryland, Baltimore County. He continued his education at Indiana University, earning a master’s in health administration three years ago.

That was where Mr. Taylor heard about HIPP. He immediately saw the opportunity to make his mark in a company that touched millions of health care consumers.

“One of the keys to my growth has been a combination of great mentors and leaders,” he said.“They gave me a lot of their personal, face-to-face time. They also gave me access to their ownnetworks of leaders to learn about the career paths they’ve taken.”

His first-year rotation took him to WellPoint Business Solutions and Services (BSS). In his projectmanagement role, he was involved in pre-merger integration work, identifying synergy savings for senior and state-sponsored programs.

“My second rotation was pivotal in my career,” Mr. Taylor said. His work with company leadershelped him see the industry from the inside out, including participation in the development of the Indiana Health Care Consortium and the Indiana Provider Advisory Council.

Mr. Taylor’s experience with leaders in the Indiana sales organization during that rotation helped him make a smooth transition when a position opened up in Indiana Large Group Sales earlierthis year. And although he didn’t remain in HIPP for a third rotation, he continues to be involvedas a mentor for first-year HIPP associates. He knows how difficult it can be for new professionals to find a sense of community in such a large organization and sees mentoring as a way to give back—one more way to make a difference.

Marcus Taylor

Account Manager

Indiana Large Group Sales

WellPoint, Inc.



Achievement is its own reward(But a little acknowledgement never hurts)

• Hispanic Business Magazine named

Vice President of Emerging Markets

Leonor McCall-Rodriguez one of

“80 Elite Women” in America for her

outreach to multicultural health care

markets.

• Working Mother magazine named

WellPoint one of the “Best Companies

for Women of Color” in 2005 and

featured the inspiring story of

associate Tracy Edmonds.

• The St. Louis American Foundation

honored Dale Evans-Blackmon, director

of network services for Blue Cross

Blue Shield of Missouri, with its 2005

Excellence Award for being an

outstanding African-American

health professional in her community.

• NAFE, the National Association of

Female Executives, selected WellPoint

as one of the “Top 30 Companies for

Executive Women.” (WellPoint made

the top ten for its advancement of

women into management and senior

positions.)

• Who’s Who in Black Indianapolis and

Who’s Who in Black Cincinnati

featured several WellPoint leaders in

their 2005 editions.

• During the 2004 Celebration of

Diversity Awards held by the mayor of

Indianapolis, WellPoint received the

Sam Jones Award: the top honor a

company can receive for its commit-

ment to diversity in Indianapolis.

• Black Equal Opportunity Employment

Journal named WellPoint one of the

“Top Financial Institutions and

Insurance Companies for Minorities”

for two consecutive years.

• CAREERS & the disABLED magazine

named WellPoint one of the “Top 50

Disability-Friendly Employers” for

two consecutive years.

• Hispanic Business Magazine named

WellPoint one of the “Top 25 U.S.

Companies for Minorities” for two

consecutive years.

• Next Step Magazine identified

WellPoint as “One of America’s Most

Diverse Organizations.”

• FORTUNE magazine declared

WellPoint the nation’s “Most Admired

Health Care Company” for six years

in a row.

• The Human Rights Campaign,

America’s largest advocacy group for

gay, lesbian, bisexual and transgender

Americans, gave WellPoint a rating of

86 percent on its Corporate Equality

Index in 2005; the index is the

nation’s only rating system for corpo-

rate GLBT policies.

While external recognition is not a key objective of WellPoint's diversity

initiatives, the company is proud of the attention it and its associates have

received for their efforts. The following lists some recent highlights.



Achievingimpact

Taking action

on diversity

Good intentions are wonderful,

but they don’t produce

results on their own.

Achievement comes from action. And in

the corporate world, actions taken at the

highest levels of an organization tend to

be repeated down the line.

With this in mind, WellPoint

Chairman, President and CEO Larry

C. Glasscock and his executive team

have adopted a highly visible policy of

leadership by example when it comes to

promulgating the company’s culture—

including its approach to managing

diversity.

“Everyone on our executive team

sees him- or herself as a standard-bearer

of the company’s core values,” declares

David Casey, vice president of Diversity

and Workplace Culture. “That really does

start with Larry Glasscock. And it

extends even beyond the limits of the

company walls to our support of the

Diversity Leadership Academy of

Greater Indianapolis, for example, or

Larry’s role as co-chair of the 20th

anniversary celebration of the

American Institute for Managing

Diversity.”

WellPoint’s department of Diversity

and Workplace Culture is focused

strategically on aligning the company’s

business goals with diversity best

practices in training, strategic planning,

and multicultural market development.

As such, the department serves as a

key instrument in carrying out Mr.

Glasscock’s “culture-first” approach to

doing business.

Creating the right environment

Since arising from the merger

of Anthem and WellPoint Health

Networks in 2004, WellPoint, Inc. has

worked quickly to roll out its new

corporate culture. An important first

step was the company’s Culture-Shaping

Leadership Forum last May. Led by

Mr. Glasscock, the forum gathered

WellPoint’s top 300 leaders for a discus-

sion of the critical relationship between

corporate culture and performance.

“Our associates not only have

to understand the company’s

values, they must also

appreciate where those

values come from—the

rationale behind them.

Because then they can truly

take those values to heart

and translate them into

actions.”

David Casey

Vice President of Diversity

and Workplace Culture

WellPoint, Inc.



Following the forum, 46 facilitators

from the associate population were

chosen to communicate WellPoint’s

cultural principles to a force of some

3,200 managers. In 2006, the facilitators’

efforts will extend to frontline associates

in keeping with an admittedly aggressive

schedule. WellPoint’s leaders are

convinced that this ambitious

acculturation program (and the invest-

ment it represents) is essential to estab-

lishing a foundation for the company’s

success going forward.

“Our associates not only have to

understand our corporate values, they

must also appreciate where those values

come from—the rationale behind

them,” explains Mr. Casey. “Because

then they can truly take those values to

heart and translate them into actions.”

To keep the lines of communica-

tion open, WellPoint has invited front-

line associates to serve as internal culture

and diversity ambassadors, helping

inform their peers about new and

upcoming events. More than 200 associ-

ates have volunteered thus far. To David

Casey, that’s a clear indication that

people are interested in and supportive

of the direction the company is taking.

The 2005 class of the Diversity Leadership

Academy of Greater Indianapolis was the

third class to graduate since WellPoint

helped found the academy in 2003.


Succession planning

and leadership

development with

diversity in mind

For WellPoint, as for most corporations

today, succession planning is a key

leadership-development concern. The

aging of the baby boom workforce and

the wave of retirement that is expected as

a result must be prepared for effectively.

At the same time, as a company poised

for further growth, WellPoint recognizes

the necessity of having skilled, qualified

people ready to lead as expansion occurs.

Judy Wade, director of succession

planning and executive development,

asserts that in both of the above cases

diversity is essential for WellPoint to

make an agile and innovative response.

“America is a diverse country: ethnically,

geographically, socially,” Ms. Wade explains.

“We feel very strongly that the leadership

of our company has to reflect that.”

She notes that enacting diversity

strategies—despite the complexities of

carrying out a massive corporate merger—

has proceeded successfully since 2004,

partly because both Anthem and

WellPoint Health Networks were

committed to diversity manage-

ment beforehand. Anthem had

previously established its own

department of Diversity and

Workplace Culture; and

WellPoint Health Networks main-

tained a sharp focus on diversity

management. Each company’s

diversity commitment originated

at the very top.

In August 2005, Ms. Wade

and her colleagues prepared a com-

prehensive succession planning report

for WellPoint’s board of directors—

with an eye on the diversity of

current and future leaders. Already,

WellPoint’s commitment to con-

sistently monitor the diversity of

its associates has resulted in an

11 percent increase in minority

women working in management.

“I’m proud that we already

have strong representation of

women at the highest levels of our organ-

ization,” Ms. Wade says. “Going forward,

we’ll continue to foster that and at the

same time strengthen the presence of

individuals from different ethnic and

cultural backgrounds.”

She’s quick to point out that a

successful diversity program—particularly

at the leadership level—can’t be simply

about meeting quotas.

“You can’t manufacture drive or

ambition or talent,” she explains. “What

you can do is be open to the broadest

pool of people who possess those qualities.

You have to open doors and create oppor-

tunities for the best people to be noticed,

Laying the groundwork for tomorrow


“The feedback at WellPoint’s

Emerging Leaders Program

was extremely helpful—

direct, honest and

professional.”

Dijuana Lewis

President,

Northeast Markets

WellPoint, Inc.



regardless of who they are or where they

come from. That’s my job, and I love it.

In a personal way, it gives me great satis-

faction to help someone deserving

achieve a personal or professional goal.”

Enabling leaders to emergeWellPoint is in the process of evolving

and combining its legacy leadership-

development programs into a new,

unified package of approaches suited to

the post-merger company’s expanded

needs and circumstances.

The new initiative is slated for

rollout in 2006. The legacy programs on

which it will be based include WellPoint’s

Emerging Leaders Program, which was

created to identify high-potential associ-

ates for executive roles, and the Executive

Experience Program, which grooms

future executives. Of the 30 associates to

complete the Emerging Leaders Program,

half have been women. And of the 79

participants in the Executive Experience

Program, 33 have been women.

Five participants in the company’s

Emerging Leaders Program have been

promoted to executive positions. Dijuana

Lewis, President, Northeast Markets, says

the program provided the full gamut of

leader training.

“It was extremely helpful to have

feedback—feedback that was direct,

honest and professional,” she shares. “It

was the greatest growth experience I’ve

ever had in my career.”

Ms. Lewis is just one example of why

WellPoint has been recognized by

the National Association of Female

Executives as one of the top ten

companies for its placement of women

into management and senior positions.

Seven Emerging Leaders Program partic-

ipants made lateral moves to broaden

their experiences and skills, and eight

received promotions.

A major opportunity for minorities

To support the professional develop-

ment of minority persons, WellPoint

takes part in programs offered by

America’s Health Insurance Plans

(AHIP). AHIP is one of the most promi-

nent health care associations in America,

and WellPoint is its largest participant.

AHIP offers several fellowship

programs geared toward developing

minority leaders within the industry.

WellPoint sponsored the involvement of

13 associates in 2004-05 and another 28

during 2005-06. In both cases, the

Spotlight on women

At WellPoint today, 60 percent of all management positions

are held by women. More than 45 percent of company associ-

ates in director-level and higher positions are women who par-

ticipate in succession planning.

The company is committed to offering growth opportunities for

women of initiative to advance. Flexible schedules, work-at-

home and job-share arrangements, and WellPoint’s innovative

new-parent transition week are all available to support this

commitment—even at the company’s executive levels.



company put people through

AHIP’s Executive Leadership

Program, which focuses on

developing industry leaders

through internal and external

mentoring relationships.

One of WellPoint’s AHIP

graduates is David Henley,

senior counsel at Blue Cross

Blue Shield of Missouri. He

was recently promoted to his

position and asserts that the

advancement “may not have

happened without the Executive

Leadership Program.” Paired with a CEO

in Florida as his external mentor and with

the Blue Cross Blue Shield of Missouri

medical director as his internal mentor,

Henley was able to gain valuable experi-

ence that helped him grow professionally.

“There are very few minorities in

leadership in the health care industry in

general,” says Berenice Ruhl, diversity

programs manager for WellPoint.

“It is imperative that our industry

leaders are a cross-section of America, just

like our members.” Of the AHIP

programs and others like them she says:

“It is worth the investment. We are seeing

more confidence in associates, more

polished professionalism, willingness

to take on more challenges, and

tremendous networking.”

A leadingexampleThe Diversity

Leadership Academy

of Greater Indianapolis

Perhaps one of the most visible

indicators of WellPoint’s commitment

to cultivating leadership diversity—

within and outside its own corporate

environment—is the pivotal role it

played in establishing the Diversity

Leadership Academy of Greater

Indianapolis (DLAGI) in 2003.

The company committed more

than half a million dollars to the academy’s

initial development, creating an innova-

tive, hands-on learning program for

building diversity-management leader-

ship skills within the Indianapolis com-

munity. In a speech during the 20th

anniversary celebration of the American

Institute for Managing Diversity

(AIMD), WellPoint Chairman,

President and CEO Larry C. Glasscock

explained the company’s rationale for

making such an investment.

“Helping to launch the Diversity

Leadership Academy of Greater

Indianapolis was an outstanding oppor-

tunity for us to give back to the com-

munity we call home to our corporate

headquarters,” he said.

“There are very few

minorities in leadership in

the health care industry in

general. It is imperative

that our industry leaders

are a cross-section of

America, just like our

members.”

Berenice Ruhl, PhD

Diversity Programs

Manager

WellPoint, Inc.


Truly groundbreakingIndianapolis was the first city out-

side of Atlanta, Georgia to establish a

Diversity Leadership Academy. (The

original DLA was founded in Atlanta by

AIMD in September 2001.)

Open to leaders from business,

government, the not-for-profit sector,

education and religious organizations, the

DLAGI offers a series of five day-long

classes customized to the particular

business and social environment of Indian-

apolis. Interactive and action-oriented,

it guides participants through the appli-

cation of diversity-management princi-

ples to real community issues.

Since its establishment more than

130 community leaders have graduated

from the academy, including the city’s top

public-safety officials as well as a number

of WellPoint leaders.

Applicants are chosen to participate

in the academy based on their ability to

lead and inspire change within their

organizations or community, and to share

information about diversity management.

The academy has attracted many

notable speakers from the field of diversity.

The late civil rights activist Coretta Scott

King initiated the DLAGI program in

2003 with a message of inspiration;

Julian Bond, chairman of the NAACP,

addressed the class of 2004; and last year

Ray Suarez, senior correspondent for

The NewsHour with Jim Lehrer, spoke at

the welcome reception.

AIMD describes the benefits of its

Diversity Leadership Academies (of

which there are now eight) as enhancing

the readiness of participants to:

• Provide leadership around diversity

issues

• Participate in and influence community

dialogue on diversity issues

• Address personal diversity issues such

as those related to family and

neighborhood.

As well, the DLAGI training equips

leaders with a clear understanding of the

effort required to improve their organiza-

tions’ ability to address diversity effectively.

Celebrating 20 years of inspiration

WellPoint came to support the

DLAGI through its association with

AIMD and that organization’s founder,

Dr. R. Roosevelt Thomas Jr. Mr. Glass-

cock has called Dr. Thomas “a tremendous

resource in thinking about diversity man-

agement and living out our [WellPoint’s]

commitment to doing it well.”

In 2005, the organization observed

its 20th anniversary. WellPoint was title

sponsor of AIMD’s anniversary celebra-

tions, and Mr. Glasscock served as

co-chair. “It is my hope and belief that we

are a better company as a result of our

relationship with AIMD,” Mr. Glasscock

told the audience at AIMD’s Diversity

20/20 Forum and Celebratory Luncheon

in November, “and that we better reflect

and serve the diversity of our associates,

our customers and communities.”


“It is my hope and belief that we are

a better company as a result of our

relationship with AIMD.”

—Larry C. Glasscock



Diversity is our business

WellPoint’s

understanding

of diversity as a

business driver

“The health care landscape of

America has changed radically,” says

Mr. Glasscock. “Consolidation in our

industry, technological advancement, and

evolving consumer expectations have all

made the environment today far more

competitive than at any time in the past.”

In such a context, a company’s

business strategies have to be rock-solid—

especially if that company’s declared aim

is WellPoint’s: to transform health care

and become the most valued company in

the industry.

“We know that not all ethnic popu-

lations receive the same medical care, and

that some may be at greater risk for

particular medical conditions,” says Mr.

Glasscock. “However, there is little

standard or centralized data about the

disparities and gaps in care to adequately

address them. We’re developing

approaches to gather that data—while

protecting the rights and the privacy

of patients—as an essential step toward

achieving our long-term aims. It’s

obvious to us that, in a real way, manag-

ing diversity is our business.”

Extending reach and buildingcapacity at the same time

An important way WellPoint reaches

out to the uninsured is through personal,

face-to-face contact via its force of agents.

“We depend on agents and brokers

to reach our markets,” says Deborah

Lachman, president, Individual and Small

Group, West Region. “Our agents and

brokers have to increasingly represent the

diversity of the public we serve, ethnically

and geographically. Yet generally the

population of agents and brokers is not

growing; it’s not a career option that a lot

of young people are exploring.”

To address this deficit, WellPoint

developed what it calls its “Incubator

Program.”

“The Incubator Program addresses

our needs and at the same time allows us

to give something back to the communities

where we operate,” explains Ms.

Lachman. “We recruit young people—

high school and college graduates—and

hire them for a three-year period. Over

that time, we train them to be independent

insurance agents and brokers. But more

importantly, we also train them to be

successful small-business owners and

operators. At the end of the three years,

their employment with us ends, and

they’re fully equipped to go out into their

communities and establish themselves as

independent entrepreneurs. We not only

subsidize their business education

through this program, but also pay for

their licenses.”

WellPoint's first wave of ten

Incubator Program ‘graduates’—all from

the Los Angeles area—went out into the

field in January 2005. Ms. Lachman says

the reach of the program will expand over

time. She’s extremely pleased with the

results so far.

“We’ve helped people become bona

fide entrepreneurs,” she concludes,

“people who were already very gung-ho,

ambitious and dedicated. It’s gratifying to

see how sincerely appreciative they are of

the opportunity, and how determined

they are to succeed.”



Working the issueR. Roosevelt Thomas Jr., PhD, reflects on WellPoint’s diversity commitment

Since creating the Atlanta-based American Institute forManaging Diversity (AIMD) back in the early 1980s, Dr.Thomas has strived to help American organizations makethe most out of the contributions of their diverse associates.Today, he and his team look beyond workforce diversity to abroader set of management considerations including changemanagement, functional coordination, business-line integration, and acquisitions and mergers.

Dr. Thomas created AIMD to help organizations understandwhy managing diversity is essential not only ethically but also from a business perspective. In the words of the organization’s Web site, AIMD was the “first national, nonprofit diversity think tank.” Engaged in research, education and corporate consultation on diversity issues,AIMD has earned the esteem of many of America’s mostprominent corporations including the Coca-Cola Company,which sponsored the original DLA in Atlanta.

Profiles in Diversity Journal spoke to Dr. Thomas recentlyabout his work and about the experience of collaborating with WellPoint.

What has it been like to work with the WellPoint team on the creation of the Diversity LeadershipAcademy of Greater Indianapolis?

It’s been energizing and exciting to work with Larry Glasscock and David Casey. Their enthusiasmfor the academy is genuine. You see reflected in them the desire for WellPoint to be both a goodcorporate citizen and a good model of strategic diversity management. And I know the academyhas been well received by the community in Indianapolis.

What has been Mr. Glasscock’s role as co-chair of the 20th anniversary celebration?

He’s a committed champion of AIMD, and he was insistent that we needed to have a big celebration for the 20th anniversary. He saw it as a truly important milestone. He was an integralpart of the celebration. He put in a great deal of effort. It was very impressive, given all he has on his plate.

From your perspective, what kind of opportunities does a company like WellPoint have to makereal progress on diversity issues?

Diversity management really amounts to making the most of differences and similarities in themidst of complexities and tensions. WellPoint is poised to move beyond the traditional diversityfoci of workforce numbers and representation. It is also poised to illustrate how the concept ofdiversity management can be applied to other areas of business. To be ready for sustainableprogress, you have to work the issue internally and externally, and that is what WellPoint is doing:combining traditional and non-traditional approaches to strengthen its business and, as the sayinggoes, ‘do the right thing’. You work it inside and outside, for the good of the company and for thecommunity it serves. That’s what I see WellPoint doing, and I think it’s really commendable.

R. Roosevelt Thomas Jr., PhD,

Founder, American Institute for

Managing Diversity


Speaking the same language

WellPoint’s commitment to communicating with consumers in their language of choice goes beyond just English and Spanish. The company recently began offering services in the spokenMayan dialect Q’anjoval to connect with Guatemalan immigrantcommunities.

“A high percentage of the ethnic communities we serve are uninsured. For example, in California, an estimated 3.3 million ofthe uninsured—some 56 percent—are Latino. A lot of this is due to not understanding how insurance works and how to navigatethe health care system in the United States. If we are to succeedin insuring everyone, we have to reach out in the right languageand with a culturally competent way of doing business. Every market, whether it is determined by lifestyle, ethnicity or life stage,requires a distinct approach. Our responsibility is to help membersand non-members understand how they can access health care.”

Leonor McCall-Rodriguez

Vice President, Emerging Markets

WellPoint, Inc.

You are whoyou work with

Suppliers are an important dimension of corporate diversity

In addition to reaching out to new

and diverse customer groups, WellPoint—

like many leading American corporations—

is seeking to make diversity a routine

component of its supplier relationships.

The company took an important step

forward on that front in August 2005

when Brenda Burke joined WellPoint as

its director of Supplier Diversity.

Ms. Burke is an undeniably apt

choice for the job. As a former director

of administration for the mayor of

Indianapolis, she led the city’s supplier-

diversity program and was recognized

for the success of her efforts with the

2005 Public Service Award from the

Center for Leadership Development.

She notes that “diversity touches

every aspect of life, from hiring the best

talent and career advancement to supplier

relationships.” WellPoint believes a diverse

supplier base enables it to deliver unique

value to culturally distinct markets.

“Supplier diversity also offers

diverse contracting solutions for our cus-

tomers,” says Ms. Burke. “Through our




Supplier Diversity Initiative, we are dedi-

cated to diversifying our supplier base to

include businesses that are minority-

owned, woman-owned, and service-

disabled veteran-owned.”

She points to the example of

WellPoint’s nine IT staffing service

providers: One at present is minority-

owned; another is woman-owned. Ms.

Burke says the company’s goal is to

include diverse suppliers in every bidding

opportunity.

She views her job as one of building

on existing momentum. “In 2004,

WellPoint spent $49.1 million with

diverse suppliers. We exceeded that

number in 2005. Ultimately, we want our

supplier-diversity program to be best-in-

class for the health care industry.”

Part of a broader movementWhen it comes to supplier diversity,

WellPoint also understands the value of

collaborative partners. The company is

a national member of the National

Minority Supplier Development Council

(NMSDC), a leading business member-

ship organization that provides a direct

link between corporate America and

minority-owned businesses.

WellPoint is also a member of the

Women’s Business Enterprise Council,

which is dedicated to supporting and

being a resource for women business

owners. In addition, WellPoint is a

corporate partner of the National

Association of Women Business Owners.

WellPoint is also beginning to see its

customers place greater importance on

supplier diversity. Growing numbers of

major corporations are demanding that

they and their corporate suppliers utilize

diverse suppliers. Some are even requiring

quarterly supplier utilization reports.

“Supplier diversity procurement is

no longer an issue of social conscience

alone,” says Ms. Burke. “As we grow our

business, we must pay attention to the

importance of capturing and retaining

the loyalty and trust of our growing and

diverse consumer market. That is the

Meeting the needs of a diverse customer base:

The WellPoint product portfolio

WellPoint continuously researches and designs products thatmeet the needs of diverse consumers. For example:

• Tonik—individual health care coverage, currently available in California and Colorado, designed primarily foryoung people from 19 to 29. All Tonik plans include doctorvisits with copays, as well as low-cost health screenings toencourage preventative care. Approximately 70 percent ofTonik members were previously uninsured.

• Blue Access Economy—an individual plan designed to provide a solid foundation to basic health coverage, including a range of deductible options, prescription drugcard and office visit copayments. To date, 45 percent of new members were previously uninsured.

• Stepping Stones Initiatives—this innovative health and wellness education program allows WellPoint to partner withfaith-based organizations in an effort to reach emerging markets at community events. WellPoint medical associatesgive presentations on key health issues and provide freepreventative screenings.

• Senior Business—specialized products for the diverse senior-citizen population, featuring a wide range of price andhealth care options. WellPoint provides extensive training to its customer service representatives, improving their ability to respond to the needs of this growing population.


value supplier diversity brings.

Our job now is to see that it

becomes institutionalized.”

Her experience in the

Indianapolis mayor’s office has

given her a realistic appreciation

for the time, effort, and resources

it takes to institutionalize sup-

plier diversity effectively.

“Things don’t happen

overnight. It takes time to really get a

program up and running, especially in a

corporation the size of WellPoint. But

it’s worth the effort,” says Ms. Burke.

“Supplier diversity brings us closer to our

customers and potential customers and

has been found to strengthen brand loy-

alty, customer trust and commitment.”

Leadership = ResponsibilitySupporting communities: a core focus for WellPoint

It is almost impossible not to be

inspired by the obvious passion Dr. Ray

Morales feels for his work as WellPoint’s

director of Social Investment Programs.

Drawn to the medical profession by

a desire to make people’s lives better, his

job at WellPoint gives him the oppor-

tunity to make an enormous and

far-reaching difference in the company’s

diverse communities.

“Our goal is to help children and

families who are uninsured acquire quality

medical insurance coverage. Our com-

mitment is to help children and families

navigate public and private health care

insurance options in a language they

understand and lead a healthy life,” he

explains.

To do so, WellPoint has identified a

set of three interrelated priorities:

1. Access to care

2. Affordability

3. Quality health care initiatives.

And wellness for all...To inform people about their health

coverage options, WellPoint has distributed

thousands of copies of the Health Care

Options Matrix, a comprehensive listing

of coverage available through both public

programs and private insurers. WellPoint

also maintains a 24-hour uninsured help

line providing health care options advice

in English and Spanish.

“Each of these is designed for a


“All the time, greater numbers of major corpora-tions are demanding thatthey and their partnersmake use of diverse suppliers. The concept isout there.”

Brenda Burke

Director, Supplier

Diversity

WellPoint, Inc.


different set of users,” Dr. Morales

explains. “But the overall goal is the same:

to help people determine whether they

qualify for state-supported health insur-

ance or whether they can afford to buy

into a commercial program. Once they

have the answer, they can start making

decisions about how to take care of

themselves and their families.”

He notes that WellPoint deliberately

does not promote its own programs

through these vehicles.

“At this level, we’re really trying to

help people understand the system, to

appreciate the kinds of options available

to them,” Dr. Morales indicates.

“Because many people really don’t know

that they have choices at all.”

Relieving the burden on the ER

Emergency rooms offer a clear illus-

tration of this fact. Significant numbers

of people without health coverage—or

who lack a clear understanding of the

health care system—turn to the ER for

basic medical care. This increases wait

times, raises overall system costs, and

ultimately has a negative impact on the

quality of care people receive.

WellPoint is currently reaching out

to the 230,000 people who live within

the L.A. Housing Authority, circulating a

Spanish/English educational comic book

by celebrated cartoonist and radio host

Martha Montoya. The book’s message is

that everyone should find and depend on

a primary medical caregiver.

“The point of it is this: You need to

have a doctor you can go to for routine

medical issues,” says Dr. Morales.

“Reserve the emergency room for true

emergencies.”

WellPoint works with business

partners and policy makers to control the

costs of health coverage by providing

educational materials that help parents

and children learn about the simple,

healthy habits they can cultivate to

prevent illness and injuries. These range

across issues from childhood obesity and

physical fitness to smoking cessation

for teens.

Building bridgesWellPoint is also partnering with

the American College of Physicians

Foundation to produce a white paper

advocating for the standardization of

prescriptions across the United States.

The goal is to reduce medical errors and

improve outcomes. Dr. Morales cites a

simple but compelling example to illus-

“Our goal is to help children and families who are

uninsured acquire quality medical insurance coverage.

Our commitment is to help children and families navigate

public and private health care insurance options in a

language they understand and lead a healthy life.”

Ray Morales, MD

Director of Social

Investment Programs

WellPoint, Inc.




trate why this is necessary.

“You might have a prescription

that calls for a particular medicine to

be taken once a day,” he says. “The

word ‘once’ in English means one

time. The same word in Spanish

means eleven. Obviously, all sorts of

confusion can arise from something as

simple as that.”

In addition, WellPoint is partici-

pating in efforts to encourage medical

students to become primary caregivers

rather than specialists—filling a need

that grows greater every year. The

company works with the Association

of Family Physicians to have medical

students spend time in rural areas

shadowing primary caregivers, and

hopefully to gain a sense of the need

and the rewards of working in a

diverse community.

On a similar front, the company

recently donated $1 million to a

collective of the California Latino

Medical Association, the National

Association of Hispanic Nurses, LINC

Telacu, and the Hospitals Association

of Southern California to address the

shortage of nurses within the Latino

community.

“The bottom line is that, from a

diversity perspective, we’ve aligned our

social-investment resources with our

business objectives to achieve the

greatest possible impact on health-

related social issues. It’s part of our

broader mandate as a company, and

I for one am extremely proud to be

part of it,” said Dr. Morales.

Looking forward

To a future in which

diversity management

is the norm

WellPoint is well positioned to

lead the way with respect to diversity

management. People are its business,

after all, and making diversity a priority

within the company will ultimately

enable WellPoint to better reflect the

diversity of the markets it serves.

What seems clear from the com-

pany’s experience to date is that the best

way to implement diversity strategies is

to fully and fundamentally internalize

them: to treat diversity management as

a standard business practice. By embed-

ding diversity values and management

approaches directly into its new

corporate culture, WellPoint has done

exactly this.

As David Casey, vice president of

Diversity and Workplace Culture,

sums up: “We’re looking forward to a

time when diversity management is

the norm throughout corporate

America. We’re proud to be in a position

to help lead the way in that regard, to

show how you can take action on diver-

sity and improve the vitality of your

company—creatively and competitively—

as a result.”

“We’ve aligned our social-

investment resources with our

business objectives to achieve the

greatest possible impact on health-

related social issues. It’s part of our

broader mandate as a company, and

I for one am extremely proud to be

part of it.”—Dr. Ray Morales

PDJPDJ


Waste Management, Inc. (WMI)provides integrated wasteservices in North America.

Through subsidiaries, the company pro-vides collection, transfer, recycling andresource recovery, and disposal services.Waste Management also develops, operatesand owns waste-to-energy facilities in theUnited States.

The company ranks 168th onFortune’s Top 500 list for 2004 with totalrevenue of $13.07 billion and nearly$21.1 billion in assets.

Its almost 100 renewable energyprojects produce enough electricity topower more than 800,000 homes andsave the equivalent of 8.2 million barrelsof oil a year.

Waste Management Recycle America(WMRA) is North America’s largest recy-cler, handling 5 million tons of com-modities each year, saving more than 26 million trees in newspaper recyclingalone.

The company’s landfills providemore than 16,000 acres of protected landfor wildlife.

About D&I at Waste ManagementPlease give your definition of diversity, of inclusion.We embrace diversity and inclusion astwo sides of the same coin. We’re practicalpeople at Waste Management, so ourteam doesn’t split hairs about these.Together, they mean that our people, atevery level and location, are always treatedwith dignity and respect. And that the

Waste Management work environ-ment constantly improves at encour-aging, allowing and rewarding eachperson to contribute optimally totheir own and our business’ success.

Tell us about your company’sglobal presence: numbers ofemployees, international businesses/branches, marketshare, potential: Waste Management, Inc.’s operations—in the United States, Canada and PuertoRico—consist of 431 collection operations, 381 transfer stations, 286active landfill disposal sites, 17 waste-to-energy plants, 119 recycling plants,and 90 beneficial-use landfill gas projects.Our 52,000 employees deliver excellentservice to nearly 22 million customers.

What are the components of yourcompany’s approach to the globalworkplace? The global marketplace? Is overall D&I management largely U.S.-based or present throughout theworldwide organization?We embrace a global philosophy at the local level. Even though WasteManagement is a North American companywe consciously approach our work knowing that our business universe isextremely diverse. In any of our markets,you’ll encounter several languages, several distinct cultures and value sets. Both ourcustomers and our employees come fromthese environments. So the sensitivityand understanding our leaders must haveare extraordinary. This is the view weinstill in our leadership team.

In today’s marketplace, does yourcompany have any particular challenges to selling or producingyour products/delivering services?Absolutely. We succeed only by beingsensitive and responsive to people, community, and social issues. That’s ourdaily challenge, and it’s a big one. Ourissues touch on environmental responsi-bility—landfills, recycling, and the like.Not only does everyone have an opinion,but there are layers of laws and regula-tions that guide what we do.

And our business networks crossNorth America, with some 21-millioncustomers in diverse communities spreadout across the landscape.

People in Waste Management uniforms and vehicles make a visual andphysical statement about us each andevery day. We want every one of thoseimpressions to be ethically sound, positive for the company, and satisfyingto our customers. That really is our substantial challenge. To our greatadvantage, our profile in the communityis solidly diverse. We reflect in most waysthe customer bases we serve.

Inside Waste Management, Inc.

Carlton Yearwood—vice president of human resources, business

ethics and chief diversity officer—takes us into the culture of Waste

Management and describes the company’s deep-rooted commitment

to diversity at every level. If you think this Marine isn’t serious,

think again.

Interview Carlton Yearwood Waste Management


What challenges do you face with hiring and retaining good people?Getting and keeping top talent is ourhighest goal; it’s also our biggest challenge. You know, all businesses arecompeting for the same human capital no matter what the industry. Successdepends on using every innovative business tool we have.

We target the best people in each ofthe communities we serve. Wherever wedo business, our goal is to be considereda neighborhood business. That’s an assetfor us—people think of us as a home-town choice. But that fact also places achallenge squarely in front of us: Wemust stay tuned in to the communitieswe serve. We need to anticipate how anyarea may change and forecast that rippling through the available workforce.

We’ve also found that our associationwith NASCAR on diversity and brandingactivities has delivered benefits on thepeople side as well. In reaching out tominority audiences—women, African-Americans and Hispanics—our motor-sports initiatives introduce us as a positivecompany to important segments whomay not have considered us as a place

to work. And we find that these sameactivities elevate us in the eyes of peoplewho already work here.

How does a company as young/established/fast-growing/ fast-changing as yours keep up with diversity development throughout the organization?Communicate clearly. Talk frequently.Follow through tirelessly. Especially in abusiness like ours, with many issues competing for attention, it’s essential forpeople to know your diversity agenda.Our message about diversity is clear andsimple. We talk about it frequently sopeople know it and embrace it. And wereinforce it constantly.

Are there unique opportunities inyour particular industry for imple-menting diversity programs?Our industry has great opportunities forthoughtful diversity programs to make adifference. Our business geographycounts more than 1300 locations wherewe operate truly as a neighborhood business. Our close to 52,000 employeesinteract with not only clients and customers, but also with their ownvibrant networks of friends, family, andrelations. These connections drive deeplyinto the foundations of local communi-ties. So our diversity successes quickly arereflected in the full fabric of communitylife. It may be quite obvious, like ourspending with local minority suppliersand our payroll contributing to localeconomies. And it can be less visible, too,like our contributions to improving thequality of life.

Do international issues ever get inthe way of corporate support fordiversity objectives and processes?What kinds of strategies does the company employ in dealing with them?International boundaries and varying

cross-cultural perspectives magnify differ-ences, so core values and behaviors needto be constant. So we are solid—as aleadership team and as a company—around the fundamental understandingsof our business. That means that any-where in our operating territory—any-where in North America—we treat peoplewith dignity and respect, we encourageeach to contribute to his or her fullpotential, and we do everything underour Code of Ethics.

Do you have any examples of howtapping employee diversity has yieldedsignificant product or profit break-throughs? Inter-business synergies?We manage diversity as a strategic tool to directly affect our stakeholders. Ourkey groups are customers, employees,environment, community, and shareholders.We see diversity as an important, activelymanaged agent to reach corporate objectives. That mindset is from the topdown as well as from the bottom up.

Corporate LeadershipCan you give us a specific example of your company's leadership commitment to diversity? Whatresources (financial and manpower)are allocated on diversity? Waste Management’s diversity commit-ment is clear with our leadership profile.Five positions on our top leadership teamare held by people of diverse back-grounds. I’m absolutely proud to be partof that. But I’m energized even more inknowing that my company has a philoso-phy of bringing the best people possibleto every job. That will inevitably promote diverse individuals into the mostchallenging work.

My own department is a good casestudy. When I came to WM about threeyears ago, I had the charge to build thediversity and inclusion effort. Today, ourgroup numbers close to ten people, each



dedicated to pursuing an important partof our overall work.

What qualities do you look for whenhiring management? How do youmeasure attitudes or assess theirpast performance in diversity/inclusion?We look for people who anticipate as wellas adapt. Managers who are fluid andflexible in style, decisions and perform-ance jump out of the pack. They’re thekind of people we need today. The paceof change is astoundingly quick. Theentire operating approach to business canalter seemingly overnight. So individualswho take well to these situations do best.

And we probe intelligently aboutevery person’s commitment to diversityand inclusion. Besides the usual due diligence reference checks, a face-to-faceinterview quickly tells you the substanceof a person. Every key person we hirealways talks to several of us first.

Is diversity a linked/compensableannual objective for the executivemanagement team? How do youreward special initiatives? Whataccountability do you employ to meet objectives?If you want performance, pay for it. Ifyou want a result, measure it. We doboth for diversity and inclusion at WasteManagement. As part of an overall annualevaluation that affects compensation,every leader is accountable for objectiveshe or she sets related to progress on diver-sity. We have a rigorous measurementprogram in place called the Ethics andDiversity Inclusion Indicator that clearlylays out results for our executives. And Ipersonally present quarterly summaries ofour progress or or lack of it to our leadersand corporate governance group.

How does your organization dealwith/train for cross-cultural competencies for its leadership? Waste Management leaders live andbreathe diversity and inclusion. We

have workshops and retreats designedspecifically to bring our leaders together.We examine our progress, and test ourthinking. But more than anything, ourleadership team shapes their ideas andperceptions by sharing time with employees.We do a lot of walking around our facilities and sites, meeting people, talking with them, understanding theirpoints of view.

Do you create and maintain management continuity rosters for promotable individuals? How do you ensure diversity candidatesare included? Harnessing succession planning is essential;it’s a key change agent. What we’ve donerecently is to identify promotable, talentedindividuals early in their career path.That’s in line with WM’s culture whereevery person contributes fully and to hisor her highest potential. We review needsand candidates carefully. There can beintervention if somehow diversity andinclusion goals are left wanting—just asattention goes to any business objectivethat may fall short.

Can you give us an example of a program getting “off track,” and whatdid you learn from that experience?Our diversity metric took longer than Iwould have expected or liked to get traction.What the team and I learned from that isthat people weren’t really getting the connection to the business. Everyonebelieved measuring our performance indiversity and ethics was critical, but thedashboard we developed defined diversityand ethics in a broader way, which leftpeople a little confused about what wewere trying to do. I cannot over empha-size the importance of communicationand never assuming people understandyour good intentions and hard work.

How are decisions about diversity made in your organization? Is there a diversitycouncil and who is on it?

Our leadership team models the behaviorwe want for diversity and inclusion.Their actions are a beacon for the wholecompany. Waste Management leaders arecontinually involved in diversity issues. I spend a good portion of my time personally explaining, presenting—andeven defending—what paths the companyshould take. This constant interaction ata significant level is important.

But the backbone of our effort is anetwork of diversity councils that arealigned with each of our operating units,a total of eight. Through these we engageand enroll our 52,000 employees indiversity and inclusion matters. Thecouncils are in touch with employees andlocal communities and surface thoseissues which are affecting life and busi-ness at the personal level. Each councilsets its own agenda, with some overallcorporate guidelines in place, of course.

What makes you confident that youand your team have developedmomentum for the organization inthe right direction? What is the visionfor the company in five years?We keep getting more work! And goodpeople are staying here. We are invited toparticipate in more decisions, to helpother parts of the WM organization usediversity as a way to improve. I’d saythat’s validation at the ground level, andit is, frankly, very gratifying to see. AsHuman Resources leader, I also noticethat our workforce is changing, that it isbecoming more visibly diverse.

That’s a real payoff to our efforts.We hope to do more of the same in theyears ahead, making Waste Managementa recognized and awarded leader.

Employee InclusivenessHow does your company gauge inclusion of employees? What are the tests, measurements and bench-marks that indicate where the company is on the inclusion graph?


Personal Profile Carlton Yearwood Waste Management


Carlton YearwoodTitle, Company:Vice President, Human Resources, Business Ethics and Chief Diversity Officer,Waste Management, Inc.

In Current Position: About three years.

Education:I went directly from my high school graduation into the Marine Corps. Thatwas a full education in itself! On returning, I majored in business and inner-city studies at the City University of New York. Then I moved into on-the-joblearning full-time.

First Job:My first job was actually in teaching. I taught classes about government toboth high school students and other teachers. The perspective you have as ateacher—that there’s something to shine in every person—is something Icarry with me even today.

Philosophy:Make the most of your opportunities . . . clear and simple. Life brings only so many chances to move ahead. Some you makehappen yourself, others come by other avenues. But jump at every opening to make a difference, to move toward new horizons.Sure, there’s often discomfort involved. You move from a secure, safe, and recognized position to someplace where you need toprove yourself again. That’s how you grow, both as a person and as a contributor.

What I’m Reading: Frankly, mostly Blackberry messages! But I do like to keep pages open on a couple of books at any one time. One popular business tome I’d recommend is The World Is Flat by Thomas Friedman. It’s an eye-opener about the impacts of global diversityon everything we do. Another is The Art of the Strategist, by Bill Cohen, who’s a retired Air Force major general. Good directionon creating objectives and achieving them.

Family:My family is my refuge, my inspiration and cements me to what’s real. Like a lot of people in my position, I’m on the road a lot.And my wife is professionally active in her career, too. So we make time almost every day to talk about the binding connectionsin our lives. These days, it mostly means chatting about the adventures of our daughter as she ladders up through school. Butboth our families are blessed with colorful relatives, so we always have “Guess what Auntie did last week” stories to share.

Interests:I find being near water both invigorating and calming at the same time. I know, it’s a paradox. So sailing is high up on my free-time list. We enjoy doing it as a family. We also find foreign travel a good investment of our time. It’s fraught with hassle,but visiting another country is simply not like reading about it. Usually, you learn more on the cab ride from the airport than from any textbook or travel guide. And I do enjoy food, both eating and cooking. Unfortunately, that also demands becoming aregular at our local work-out club.

Childhood Hero:I put Vince Lombardi on a pedestal when I was growing up; he’s still there for me now. He possessed a unique collection of traitsin building teams, motivating performance and winning challenges. That’s really a lot about what we do both in business, andback at home.

Favorite Game:Well, with a legendary coach as a hero, it shouldn’t be surprising that I do like to catch a professional football game on TV when-ever I can. I'll admit to being a Monday Night Football junkie.

Lunch Guest:Colin Powell would be my hope for a dream table companion. Imagine spending two hours or so with this gentleman where hecould share informal stories about these recent years of history, even if he’d have to leave out many names! In a time when somany public leaders are stained by their own personal choices, he stands out for being honest to himself, his friends and family,and his country.

“Best” Film/Art:Our household enjoys art in its many forms, but I’m no artist, for sure. Both the Museum of Contemporary Art and the SamuelAkainyah art gallery are located in Chicago. They both have wonderful multicultural collections, and both indoor and outdoorexhibits. Every visit there we find some artwork that challenges our senses or perceptions. To attend an unveiling at AkainyahGallery is a history lesson, an art appreciation lesson, and a draw on your emotions. They are all indescribable and unique.

Our managers have precise, measured,and comparable information about diversity.An important tool we’ve developed is theEthics and Diversity Inclusion Indicator.It gives our managers—and our leaders—specific insights about their progress inkey diversity, inclusion and ethics dimen-sions. Our people understand it becausewe talk about the same things—the samesix specific measures—at every point inour company, from the board room tooperating sites. It really helps our peopleunderstand the complex web of relation-ships that is the basis for all that we do.

Yet, sometimes diversity is referredto as a “numbers game.” How doesyour company know its culture is notjust tied up in numbers? How do thehuman stories circulate in-house andhow do you celebrate success?Numbers can be great, but negative“buzz” stops things dead. So we take careto grow our diversity and inclusion culture on solid perception, good communication, and positive motivation.I interact personally with as many peopleas I possibly can—at all levels. Believeme, people jump at the chance to tell yousomething’s not right. Or to complimentan effort that’s going well. I encourageeveryone on my staff to get networked inthe same way, to get involved with other

employees everywhere. And on occasion,we bring people together around anevent. We put together a Minority andWomen Network Conference a shorttime ago—the first ever company-widegathering. The feedback was great! It elevated our work, and people started tothink about how our work could helpthem do their job. That’s perfect.

Are employees more involved in thecompany than they were two yearsago? In what ways?Everything we do is designed to engageour people around diversity in thoughtfulways. In the years I’ve managed the function, we’ve elevated diversity andinclusion substantially. We have best-in-class programs that involve peoplemeaningfully in activities that relate totheir work and life. Our people reach outto partners nationally and locally, becoming players in decisions beyond ourbusiness walls.

How are their opinions solicited andvalued? Do you have an employeesuggestion box system, and whomonitors and responds?People’s voices need to be heard, so weencourage it. We look first to ourIntegrity Help Line. It’s a component ofour Ethics and Diversity Indicator

process, and an immediate gauge as toany ‘hot spots’ in the company. We alsohave a new employee idea program calledWMIdea XChange that helps drive collaboration deeper into the organiza-tion—all the way to the front line. Ourcorporate culture is an open-door onethat encourages people to simply walk-inand talk. That’s what generates honest com-munication and ideas that we can act on.

Have you encountered/how do youdeal with those who perceive inclu-sion programs for underrepresentedgroups as being exclusionary for others?When your top focus is encouraging success, people don’t undermine that.We really don’t encounter much of thisnay-saying about our work. And I believethat’s because the benefits are obviousand relevant to our company and people.

Please describe your method for orienting new hires into your culture,for enriching employees’ awarenessor introducing new issues.My job is as much about orienting thecompany to cultural diversity in our markets as it is about successfully includingpeople from our markets in the business.It’s a two-way proposition. To build




employees’ awareness of our culture,we’ve developed materials and trainingthat acquaint them with behavior expec-tations. We rely to a good degree on ourpublished Code of Conduct, which ourgroup reviewed and reissued a short timeago. We have an orientation modulefocused just on it, for example. But weexpect new people to bring into the com-pany new perspectives and approachesthat will help us evolve organizationallyinto an ever-improving business.

Can you name specific ways yourcompany supports upward develop-ment toward management positions? We support people challenging them-selves personally and professionally. Wehave a system—both formal and informal—that encourages people at every posi-tion within Waste Management to seekcontinual improvement. Besides havingjob postings and internal job fairs, ourannual review process builds in ways toassess training that people want and needand to recommend moves in the organi-zation that would build a person’s skill set.

How does the company includewomen and minority employees intothe fabric of the organization?Women and minorities weave into ourcorporate fabric through performance,

contribution, and teamwork—like every-one else. Our culture encourages everyemployee to grow, and we take everyeffort to make that philosophy work. Wedo help in a number of ways. One is by encouraging formal and informal networking where people can learn fromothers, develop mentoring relationships,and get on the road to acquiring the personal tools each needs for success.

Supplier/Community/CustomersWhat is the company’s commitmentto minority suppliers?Waste Management’s Supplier DiversityProgram is sound strategic business. Ithelps us and our partners grow. We havea future goal of a ten percent spend ratewith these firms. We’re not there yet, butwe are making progress each quarter.

How do you educate/promote diversityand inclusion for vendors, customers,or the general public?Outreach is not enough for supplierdiversity; you need to nurture these busi-nesses as potential partners. So beyondthe usual initiatives like vendor validationand Web site sign-up, a key element inour Supplier Diversity Program is our

topline approach: We look at how diversesuppliers might help us maximize ourown business opportunities. This means,then, that we work closely with firms.We show them how to work with us,where they may need to improve productand process. And, for some, we evenmutually agree to a timeline with somebenchmark achievement targets.

Executive-ProfessionalProfileWhere does your personal belief indiversity and inclusion come from:who were your role models, or wasthere a pivotal experience thathelped shape your view?My commitment is simply a big part ofwho I am. I can’t say that I’ve experi-enced any singularly defining momentsabout diversity and inclusion. But I’mboth an involved participant and an acuteobserver of all that’s gone on in businessdiversity for close to 30 years. I’ll say thatat the core I have strong values aboutequality, worth, and opportunity. Butevery day brings circumstances that testthose beliefs in varying and sometimesunique ways.

How did you get to your present position? What was your career path?


Carlton Yearwood with team members

Dawn Ripley, senior manager corporate staffing,

and Derrick Hanilton, director strategic staffing.


My path to this position came from othergood jobs at other excellent businesses,Allstate and PriceWaterhouseCoopers.At both of those companies, I manageddiversity groups and activities. The expe-riences were all gratifying, rewarding, andcertainly challenging. I use what Ilearned in those earlier jobs every day.When the position at Waste Managementwas offered to me, I accepted because itseemed to be both a cultural fit, and onein which I could contribute significantly.

Who were/are your mentors? Whatabout their business skill or styleinfluenced you? How did they help inyour professional and personal life?Are you mentoring anyone today?Without hesitation, my Mom had thegreatest effect on my life in a lot of ways,and that’s saying something from an ex-Marine. Not that my Mom ran aboot-camp at home. Not at all. Shealways encouraged me to push myself, tomake the most of my ability. She instilleda value system of what’s clearly right andwhat’s clearly wrong. And that workinghard is just fine. I remember telling mymother one morning, in an attempt toskip school, that my back hurt. Her

response was I didn’t have a back, that I only had gristle back there, that onlypeople who worked had a back. I remem-ber that as if it was yesterday. What shewas telling me is that working hard buildscharacter and strength.

What business books or journals doyou read regularly or recommend for aspiring leaders?Profiles in Diversity Journal, for sure! It’simportant to stay on top of things inbusiness, the profession and your indus-try—whatever it may be. So the rightmix of periodicals is going to vary, butHarvard Business Review and Fortune orBusiness Week should be part of the must-reads every issue. A good book I’d rec-ommend right now is The World Is Flatby Thomas Friedman. It’s an eye-openerabout the effects of global diversity.

I also love How to Think LikeLeonard Da Vinci by Michael J. Gelb. It isabout finding and unleashing one’s owngenius. I think it is great. Most recently,I have been recommending The MediciEffect by Frans Johansson. We are puttingthis on our reading list for diversity councils.It is an excellent piece on diversity andinnovation.

How would you describe your concept and style of leadership?Think boldly, commit personally and actaccountably. Diversity needs to moveahead with agendas larger than the tradi-tional. Most often, you can do this yourself.So do so. And then stand by the results.

What are your specific responsibilitiesfor advancing diversity and inclusionin your organization? What are thestrategies you employ to move inclusion forward?It’s important to create ways that leadersand managers can personalize diversityand inclusion. That means bringingactivity to a level that individuals canrelate to and implement. So our processesat Waste Management place a premiumon finding ways to engage people in whatwe’re doing, and then to enroll them as individuals who can change things for the better.

Have you any “mottos” to rally yourteam regarding D&I?Look your work in the eye every morning.


Carlton Yearwood and Steve Neff (left),

vice president, strategic business

development, collaborate

on marketing programs that

ensure continued commitment

to the company’s diversity

and inclusion efforts.


How have you modeled your company’sdiversity and inclusion initiatives in your own team selection, management or development?You do have to “walk the talk.” It’s essen-tial that leaders model behaviors youwant the organization to have. So, yes,I’ve taken that into mind when staffingmy team. Everyone who works on thediversity and inclusion group is a bigevangelist for our philosophy, both inword and action.

How are you as a manager measuredin terms of performance? Is your compensation related to diversityperformance?We measure for results and pay for them.Like everyone else at Waste Management,my performance is measured against veryspecific objectives. And my compensa-

tion is based on those results. That’s whyyou need to develop a process that buildsconfidence. We’ve done that.

What has been your proudest momentas leader in this company?I hope I haven’t experienced my proudestmoment yet. I want to believe that mynext contribution to leadership is goingto be my best.

Are there particular areas or employee sectors you feel stillneed improvement?Every organization should improve constantly. We take that to heart atWaste Management. I recently spenttime with our employees in New Orleans,dealing with the many needs there fromHurricane Katrina. I was overwhelmedwith the generosity, good will, and easy

communication. Those are traits I wantto extend more earnestly throughout ourcompany’s diversity and inclusion work. I’llfind a way.

Do you have any words of advice toanyone who wants to rise in theirorganization? What do you say topeople you mentor?Believe in yourself and in your potentialto change yourself and to make changehappen. Good things happen in businesswhen people have an idea, commit to it,and then make it a reality. There’s a wealth of meaningful diversity andinclusion activity that has preceded you.Build on it. Improve it. Use it as athoughtful legacy to launch yourself.


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At AARP we are involved in the daily lives of more Americans in moreways than you can imagine. We provide them with information, promoteindependence and protect their health and financial security. We alsoencourage them to work and volunteer. Our goal is to improve the lives ofAmericans over 50 by making them healthier, happier and better informed.


JOHN M. BELL VERIZON

WILLIE BROWN STATE FARM INSURANCE

JOHN C. COMPTON QUAKER-TROPICANA-GATORADE,

A DIVISION OF PEPSICO

DONALD DUGGAN BANK OF THE WEST

MONICA E. EMERSON DAIMLERCHRYSLER CORPORATION

EMERSON U. FULLWOOD XEROX CORPORATION

ALBERT L. GAYLOR SYSCO CORPORATION

GLORIA JOHNSON GOINS THE HOME DEPOT

TIANE MITCHELL GORDON AMERICA ONLINE, INC.

BOB HAGANS JR. AARP

KEVIN N. HILL EXCELLUS BLUECROSS BLUESHIELD

TERRY HOWARD TEXAS INSTRUMENTS

GERALD JOHNSON GENERAL MOTORS

MARCIA JOHNSON SOUTHERN CO.

EVON JONES BAUSCH & LOMB

LEE KARBOWSKI NORTHROP GRUMMAN

PAUL D. MCKINNON DELL INC.

BRENDA J. MULLINS AFLAC WORLD HEADQUARTERS

D. ERIC POGUE AMERICAN RED CROSS

GEORGE PYNE NASCAR

STEPHEN W. ROCHON U.S. COAST GUARD

SONYA V. STEWART LOCKHEED MARTIN

KAREN D. TAYLOR RELIANT ENERGY, INC.

MICHAEL A. WATSON NEW YORK LIFE INSURANCE COMPANY

SHEILA W. WELLINGTON NEW YORK UNIVERSITY,

LEONARD N. STERN SCHOOL OF BUSINESS

ANISE D. WILEY-LITTLE ALLSTATE INSURANCE COMPANY


Bob Hagans Jr.CHIEF FINANCIAL OFFICERAARP

During Black History Month,I look for inspiration to

leaders who develop their ownpath where no path exists; whomaintain their integrity andresilience in the midst of adver-sity and obstacles; and who havetrue vision for our future. Of thethree leaders who immediatelycome to mind, two are well-known to everyone—NelsonMandela and General Colin Powell.

The third, Robert Randall, isnot familiar to most people, but he has had a profound effect onmy life and leadership style. Born in 1922, he graduated first inhis high school class and was awarded a four-year scholarship toYale University, where he was the only African American in hisclass. The support of his family and community made it possiblefor him to endure racism. He graduated with a bachelor’s degreein mathematics and became an officer in the Air Force with thefamous 99th Squadron in Tuskegee, Alabama.

Mr. Randall returned to civilian life and in 1952 became thefirst African-American actuary in the United States and the firstAfrican American to achieve the status of Fellow with the Societyof Actuaries. He was the first African-American employee ofMutual Life Insurance Company of New York, a vice presidentand actuary of the Equitable Life Insurance Society, and he founded and served as the first president of Intra-American LifeInsurance Company of New York. There are as many as 100African-American actuaries today in the United States and Mr.Randall was truly a trailblazer for them all.

Brenda J. MullinsSECOND VICE PRESIDENT,HUMAN RESOURCES, DIVERSITY OFFICERAFLAC WORLD HEADQUARTERS

Dr. Martin Luther King Jr. was one of the most influ-

ential visionaries of the 20th century. He dreamed of an Americawhere equality existed for everyone.At Aflac, our commitment todiversity reflects Dr. King’s dream.

As our nation prepares to celebrate Black History Month, Aflacrecognizes the significant contributions that African Americanshave made to corporate America. We’re ever mindful and supportive of the efforts of Dr. King and others who paved theway for justice and equality.

Aflac Chairman and CEO Dan Amos is the 2004 recipient ofthe Dr. Martin Luther King Jr. Unity Award presented annually atthe MLK Unity Breakfast held at the Columbus Convention andTrade Center in Georgia. In accepting the award Dan Amos said,“We must always remember the magnitude of Dr. King’s contribution to this country.”

In January 2005, Aflac announced a $1 million gift to theMartin Luther King Jr. National Memorial Project Foundation toconstruct a memorial commemorating Dr. King’s life and work.To preserve the rich heritage and culture of African Americans,Aflac presented a $1 million check in June 2005 to the NationalMuseum of African American History and Culture, which will belocated on or near the National Mall in Washington, D.C.

Anise D. Wiley-Little DIRECTOR, DIVERSITY ANDWORK LIFE ALLSTATE INSURANCECOMPANY

As a black woman in corpo-rate America, I have choices

and opportunities that did notprevail in my parents’ generation.Many strong black Americans

have paved the way for me to reach as far as I desire. This freedomof opportunity and choice allows me and my husband to set thetone for the freedom of choice for our son and daughter. They arelimited only by the choices they make and not by those makingchoices for them. I remind my children that black history shouldbe celebrated each and every day that they wake up in a freeAmerica and make a choice about how they live their lives.

There are many African Americans to admire who have stoodstrong to share their art, vocal abilities, business skills and numerous other talents. I cherish each of them for giving me whatI have today. But, most of all, I admire my father, a finance executive, who never allowed me not to achieve because of mygender or the color of my skin—a man who grew up at a timewhen the Little Rock Nine stood up to the burning lights of themedia cameras and the jeers and taunting of those not wantingthem to have equal opportunity through education.

MFHA 10THANNIVERSARYCONFERENCECELEBRATE A DECADE OF DIVERSITY

1996 • Gerry Fernandez, a General Mills executive, gathers 17 companies to form an organization dedicated to the advancement of people of color in the industry

1997 • Magaly Penn, formerly of Denny’s, named MFHA’s first Chair

1998 • MFHA hosts its inaugural National Conference in Atlanta

1999 • First Diverse Supplier Directory published for the foodservice and hospitality industry

2000 • Showcase of the Stars™, an industry career exploration program for students, launched in Chicago

2001 • The Coca-Cola Company and Nation’s Restaurant News pilot a Benchmark Survey of Diversity Practices

2002 • Joe Lee, Chairman & CEO of Darden Restaurants, wins the Ernest H. Royal Pioneer Award

2003 • Alice Elliot, CEO of the Elliot Group, chairs CEO Panel at MFHA’s inaugural Symposium in Dallas

2004 • Bill Groux, CEO of Retention Education, launches Sed de Saber (electronic ESL kit) at MFHA’s national conference in Washinton DC

2005 • Pat Harris of McDonald's passes the torch of leadership to incoming Chair Catalina Ganis of The Elliot Group

2006 • Celebration of the 10th Anniversary Conference

For more information visit www.mfha.net

AUGUST 6-8, 2006 • HYATT REGENCY • BOSTON, MA


D. Eric Pogue SENIOR VICE PRESIDENT,HUMAN RESOURCES,CHIEF DIVERSITY OFFICERAMERICAN RED CROSS

The advent of Black HistoryMonth 2006 highlights the

opportunity to reflect on the contributions of those whohelped bring us this far. The list

of leaders from all walks of life is long and continues to growbecause of the actions of those who have gone before us.

One of the things I particularly enjoy doing is spotlighting theaccomplishments of selected leaders with my college-age son. Partof the significance of this month for me is to identify these rolemodels to my son as examples of the limitless possibilities of careers he ultimately may choose. I point to contemporaryleaders, such as Ken Chenault from the private sector and BarackObama from the political arena. At the same time, I like to talkabout Ossie Davis from the entertainment industry and Dr.Charles Drew from the medical field. This is how we emphasizehistory and pave the way for ever greater developments.

Tiane Mitchell GordonVICE PRESIDENT, OFFICE OF DIVERSITY AND INCLUSIONAMERICA ONLINE, INC.

In the 50 years that I’ve beenon this planet, I’ve seen a lot

of change. That change hascome because there are peoplewho put stakes in the ground.During Black History Monthand throughout the year I askmyself, “Am I living a life worthyof the sacrifices that others havemade before me?”

One leader I emulate is MaryMcLeod Bethune, the educatorwho founded Bethune-

Cookman College. The youngest of 17 children born to formerslaves, she devoted her life to ensuring education for blackAmericans—particularly African-American girls in the South. Awoman of grace and deep faith, Mary Bethune overcame greatchallenges to improve the lives of others. She spoke at my mother’shigh school graduation and this ignited my mother’s own passion

about education. My parents almost named me Mary Bethuneso that her spirit of service would be with me. It is anyway.

Donald DugganEXECUTIVE VICE PRESIDENTAND CHIEF TECHNOLOGYOFFICERBANK OF THE WEST

Many African-Americanshave had a profound

impact on our society, and it’simportant for us to remembertheir contributions. Despite all

of the challenges and obstacles that they encountered, theyremained committed to their goals for social change and equality.Let us make sure that we’re providing role models and successstories for our children. It’s important for them to know that thecolor of their skin should not impede their ability to set andreach goals and to be successful in life.

We also must continue to push for equality in the workplace.Individuals should be judged on their contributions to theirorganizations and not by the color of their skin, their nationalityor their gender. Our society should strive to display the samestrength, commitment and patience that Dr. Martin Luther KingJr. showed during his campaign for equality for all people.

Evon JonesCIOBAUSCH & LOMB

The contributions of AfricanAmericans are present every

day of the year. Black HistoryMonth reminds us to pause andconsciously reflect on our historyand contributions to society.

This year marked the passingof Rosa Parks, an ordinary person who made an extraordinarydifference, bringing to the forefront of our consciousness theimpact that one individual can have on an entire society. Sheacted on what she believed. The lesson here is that we all canmake a difference regardless of who we are.

U.S. dignitaries such as Colin Powell and Condoleezza Rice,the former and current secretary of state, demonstrate the


influence African Americans can have on the world stage. Theymotivate us to achieve, and they confirm that we can.

The field of African-American leaders is vast and rich. I try toemulate a little of the greatness of each—from the leadership ofDr. Martin Luther King Jr. to the focus and determination ofMarcus Garvey.

During Black History Month, I spend time educating mychildren about our rich history and contributions. It’s importantfor them to know about the journey taken, not only by African-Americans, but also by society as a whole, to get us where we arenow. Black History Month reminds us of how far we’ve comeand how much we can contribute going forward.

Monica E. EmersonEXECUTIVE DIRECTOR,CORPORATE DIVERSITY OFFICEDAIMLERCHRYSLERCORPORATION

Love is the only force capableof transforming an enemy

into a friend,” Dr. MartinLuther King Jr. once said.These few words strung together

so eloquently form a prophetic statement.Dr. King’s contribution to society symbolizes what can be

accomplished with one person’s determination. He courageouslyled the cause for civil and human rights driven not by hate forthose who lacked understanding, but by his unquestionable lovefor all people, regardless of difference.

Black History Month is a time to focus and reflect on the contributions that all Americans have made to shape our nation’srich history. Individuals and groups—all with different back-grounds but working together—have produced amazing inventions, great technological advances, and extraordinary featsof accomplishment.

Dr. King’s principles exemplify the level of cooperation andunderstanding that is needed to succeed not just in business, butin society as well. His work has inspired me to lead by exampleand leave a legacy built upon the foundations of community thatI can call my own.

Paul D. McKinnonSENIOR VICE PRESIDENT, HUMAN RESOURCESDELL INC.

Dell’s commitment to diversity is integral to our

corporate values year-round.However, we are especiallymindful of the importance ofour diverse workforce, suppliers,customers and community part-ners when we celebrate MartinLuther King Jr. Day and BlackHistory Month.

By continuing to drive diver-sity initiatives throughout Dell,we unleash each individual’s full

potential, provide a superior customer experience, tap the bestand brightest talent, improve operating results, become a betterplace to work and further our global citizenship efforts in themany cultures we call home.

Much of the credit for Dell’s culture of diversity and apprecia-tion for the African-American community belongs to the blackleader that I most admire, my friend and colleague, ThurmondB. Woodard, Dell’s chief ethics and compliance officer and vicepresident of global diversity. As the catalyst for diversity at Dell,Thurmond ensures that our approach to diversity is global in itsinclusion and in its respect for the many people and cultures weencounter every day through our business operations worldwide.Thurmond combines the principles of doing what’s right withdoing what’s smart business. He has galvanized our internal beliefthat in order to be a successful company and a great place towork, Dell must leverage the similarities and differences of allteam members.

This is my tribute to Thurmond and to all wonderful blackleaders who have and continue to help build the greatness of corporate America.

Kevin N. HillPRESIDENT AND CHIEFOPERATING OFFICEREXCELLUS BLUECROSSBLUESHIELD

This month we honor manyremarkable men and

women who have made ground-breaking contributions. Amongthem is General Colin Powell, avisionary who inspires me, not

“


only for his many great contributions to our country, but also forhis thought-provoking observations.

General Powell once said, “Organization doesn’t really accom-plish anything. Plans don’t accomplish anything, either. Theoriesof management don’t much matter. Endeavors succeed or failbecause of the people involved. Only by attracting the best peoplewill you accomplish great deeds.”

This principle lies at the core of Excellus BlueCrossBlueShield’s values. For us, diversity is a compelling business priority. We recognize, respect and appreciate the valuable anddifferent perspectives that each of us brings. Our goal is to createan environment that maximizes the contributions of all employeesand to make sure that diversity is woven into all of our day-to-day business practices. Treating each individual with dignity and respect is a commitment we make to our employees, ourcustomers and the communities we serve.

This month, as we celebrate the accomplishments of now familiar names and faces, Excellus BlueCross BlueShield gratefullyacknowledges the accomplishments of the heroes in our work force.

Gerald JohnsonMANUFACTURING MANAGER,CHAIR OF THE GM AFRICANANCESTRY NETWORKGENERAL MOTORS

The month of February is oneof celebration among mem-

bers of the GM African AncestryNetwork (GMAAN), one of nineinternal affinity groups formed at

General Motors to create professional development opportunitiesfor group members and to serve as an information resource to the corporation on issues that affect each constituency. Affinity groups play an important role in the success of GM as a global corporation.

GMAAN has several events planned for Black History Month.These include increasing awareness of great African Americansusing GM’s closed-circuit TV, featuring guest speakers at theLunch & Learn series, displaying African-American art, andshowcasing soul food items on cafeteria menus at participatingGM locations throughout the country. Highlights of the monthalso include an essay and coloring contest for GM employees’children and a wrap-up celebration at the Charles H. WrightMuseum of African-American History, the largest museum of itskind in the country.

Black History Month honors the African-American leaderswho have contributed to the strength of this nation. I have

always admired the strong leadership qualities of General ColinPowell, former U.S. secretary of state. His ability to lead underduress has had a great impact on my capability to face the manyopportunities and challenges in leading seven GM manufactur-ing facilities.

Gloria Johnson GoinsVICE PRESIDENT OF DIVERSITYAND INCLUSIONTHE HOME DEPOT

From a professional stand-point, Black History Month

should be a time to develop andimplement company events thatshowcase the contributionsAfrican Americans have made to

our society. In addition, it is an opportunity to bring key community leaders inside the company to share their viewpoints.Personally, I like to take this time and reflect on my accomplish-ments and then focus on the values that I want to impart to mychildren.

If there is one black leader I emulate, then I would say it isOprah Winfrey. She is a self-made success—perhaps the mostnotable television personality in our lifetime—yet her generosityto everyone she encounters is so visible and admirable.

I think it is important to commemorate black history year-round because black history is American history. There are innu-merable accomplishments by African Americans whose contribu-tions have benefited our country and the entire world. Forinstance, an African American was the first person to successfullyperform open-heart surgery. There are many facts like this onethat are not common knowledge, and it is important to have afull understanding of these significant accomplishments.

Sonya V. StewartPROGRAM DIRECTOR, GLOBALMISSION SOLUTIONS, TECHNICAL OPERATIONS LOCKHEED MARTIN

There is not one black leaderwho informs me, but

many, each at different timesand circumstances. For me, thecelebration of black history

transcends the pages of books, intellectual knowledge and specialcelebrations, as it has become a living spirit within me.

All the black leaders of yesterday and today inform and inspireme as I seek to emulate the best of each. Dr. Charles Drewinspires tenacity and dedication when the solution seems elusive.Madam C. J. Walker redirects focus onto the value of the practical coupled with creativity to enrich the bottom line.General Colin Powell and Oprah Winfrey offer a primer onretaining one’s character and values while negotiating a seat atthe table of power, influence and wealth.

I aspire to the vision of leadership, character and excellenceexhibited by my ancestors. Dr. Martin Luther King Jr. articulatedthe vision for leadership in his 1957 speech, “Facing theChallenge of a New Age.” He said that we need “intelligent,courageous and dedicated leadership … leaders not in love withmoney but in love with justice; leaders not in love with publicity,but in love with humanity; leaders who can subject their particular egos to the greatness of the cause.”

By faith, I am the hope for which my ancestors lived; and byfaith, I am laying the new road over which future generationswill travel. For they are the hope for which I live today.

George PyneCHIEF OPERATING OFFICERNASCAR

NASCAR’s biggest event,the Daytona 500,

coincides with Black HistoryMonth, which allows us theopportunity to celebrate on a large stage. We use theopportunity to raise awareness

about the contributions of African Americans in NASCAR andthe opportunities that exist today for participation in the sport asprospective employees, partners or fans.

The black leaders most admired and emulated are the athleteswho have been leaders in their respective sports and in life, setting examples for all of us. First, in our own sport, WendellScott, who drove in 495 races over a 12-year career, was a pioneer and earned the respect of his fellow competitors. Earvin“Magic” Johnson, who serves with me as the co-chair of


NASCAR’s Executive Committee for Diversity, redefined theNBA, became a leader on social issues and is a remarkable busi-nessman. The others include Arthur Ashe, Frank Robinson andOzzie Newsome.

It is important to commemorate and recognize the values ofBlack History Month not only in February, but also throughoutthe year, because diversity makes our sport better and makes all ofus as a community better.

Michael A. WatsonFIRST VICE PRESIDENT AND GENERAL COUNSELNEW YORK LIFE INSURANCECOMPANY

Since childhood, I have alwayspaid particular attention to

programming that told the stories of famous AfricanAmericans. I was proud that

New York Life Insurance Co. was the sole sponsor last February ofthe PBS series, “Slavery and the Making of America,” which putthe notion of slavery at the epicenter of the founding of theUnited States. As author James Horton said when asked about theseries, “Slavery was no sideshow; it was the main event.”

As a lawyer, I emulate Justice Thurgood Marshall, the firstAfrican American on the U.S. Supreme Court, and his teacherCharles Hamilton Houston, who taught us to use law as a meansto social change. I live and work by Houston’s philosophy, “Alawyer who is not a social engineer is a parasite.”

I take daily inspiration from Frederick Douglass, who was borna slave and rose to become a counselor to two U.S. presidents—Abraham Lincoln and Ulysses S. Grant. I also admire the work ofthe Rev. Jesse Jackson, who revolutionized the American politicalscene by proving that an African American could be a crediblecandidate for the U.S. presidency.

Sheila W. WellingtonCLINICAL PROFESSOR OFMANAGEMENTNEW YORK UNIVERSITY,LEONARD N. STERN SCHOOLOF BUSINESS

Iam the least athletic person I know. I do not swim. I do

not ride a bike. I do not play

Ping-Pong. Yet, the hero that I choose for Black History Month,for any month, is Jackie Robinson.

When I was that nonathletic little girl growing up in New YorkCity, my older brother took me to a Dodgers game at EbbittsField. He told me to applaud when he did and to yell, “Yea,Jackie,” whenever he did. When the Dodgers came out on thefield, half the stadium booed and cursed and threw things ontothe field. The other half cheered. My brother and I cheered.

I got the picture of what was going on pretty fast. JackieRobinson was the one black man out there, the object of all thecommotion. I can remember that sight to this day. To my utteramazement, Jackie Robinson did nothing. He was an island ofcalm and purpose. He just played baseball.

What a feat of heroism! By not responding to the jeers in thecrowd, the petition that his fellow players circulated against him,the death threats he received in the mail, Jackie Robinson changedbaseball and began a process that changed America.

That process, of truly diversifying this nation, remains incom-plete. But for those of us who began our commitment to equalrights so long ago, it remains a challenge ignited on a baseballfield by a man who looked hatred in the face and gave us lessonsin courage and diversity.

Lee Karbowski

INFORMATION TECHNOLOGY’S DIRECTOR OF WORKPLACERELATIONS AND DIVERSITYNORTHROP GRUMMAN

In light of Rosa Park’s recent pass-ing, this courageous black leader

comes to mind as one of the manyleaders I emulate. In the words ofRosa Parks, “Our mistreatment wasjust not right, and I was tired of it.”Indeed, Rosa Parks’ frustration overracial inequalities and the overalltreatment of black people sparkedthe civil rights movement, whichled the way to freedom for all. Her courage, devotion and vision

for a better America encourage the people and leaders of our organiza-tion to be inclusive and to do the right thing.

One of our company values is the inclusion of all people. We have an environment where these values are displayed byeveryone, each and every day. It is important to celebrate the legacy of Rosa Parks and all civil rights leaders not only duringBlack History Month, but also as we carry on their legacy in allaspects of our lives.

Northrop Grumman’s strong commitment to work force diver-


sity encourages inclusion of all people by maintaining a workenvironment supported by policies and procedures that foster a nondiscriminatory workplace. The strength of our company is greater than the sum of its extraordinary parts—people, customers, suppliers and communities—combining toform a synergy of diversity that promotes innovative thinking.

John C. ComptonPRESIDENT AND CEOQUAKER-TROPICANA-GATORADE, A DIVISION OFPEPSICO

At PepsiCo, we strive to recognize the accomplish-

ments of our past, present andfuture African-American leadersby integrating diversity andinclusion into every fiber of our

business and values. As CEO of PepsiCo’s QTG division, I’mextremely proud to serve as executive sponsor of our African-American employee networks. Our networks have a voice at thetable, helping to make our associates heard and our businessstronger.

One particularly inspirational leader was Harvey C. Russell, former PepsiCo executive. Harvey’s ascension to his position asone of the first African-American vice presidents of a Fortune 500company caused the Ku Klux Klan to organize a national boycottagainst Pepsi. The company held fast, standing by Harvey and itsdecision.

To honor Harvey’s passion for corporate citizenship, PepsiCo’sannual Harvey C. Russell Award recognizes employees and part-ners who have demonstrated excellence in advancing diversityand inclusion.

But it’s not just Harvey’s story that’s so inspiring. There areAfrican-American heroes everywhere—and many of their storieshave yet to be told. They’re quietly carrying forward with thecourage and conviction to shape our collective future.

Karen D. TaylorSENIOR VICE PRESIDENT,HUMAN RESOURCES, ANDCHIEF DIVERSITY OFFICERRELIANT ENERGY, INC.

When my son was in gradeschool, he selected a black

leader to research for Black

History Month. His selection of Dr. King caused me to read thefamous speech, “I Have a Dream,” joining the many thousands of people who have read those words and heard the passion forequality, felt the pain of past wrongs and joined the call to thenation to deliver upon its most basic promise—freedom. And for the first time, I was able to reflect on how Dr. King has influenced my own personal and professional life.

Growing up in North Louisiana in the ’60s and ’70s, I experienced firsthand some of the changes that Dr. King championed. I was in high school when the predominantly whiteand black high schools were integrated. Prior to that time, I hadknown only one person of color who was my age. I did not realizeuntil then how narrow my experiences and relationships had been.

And now, as a professional, I have a strong commitment tolearning about other cultures, sharing those discoveries with others and making a difference in my own life and work force.At Reliant Energy, we aspire to Dr. King’s dream for his ownchildren—that we might live and work “. . .in a nation wherethey will not be judged by the color of their skin but by the content of their character.”

Marcia JohnsonCHIEF DIVERSITY OFFICERSOUTHERN CO.

During the 1960s, I startedto understand that how

history is told is based on whois telling it. I learned thatmajor events could be distortedor even omitted in accounts ofhistory.

Just as African-Americansown the telling of our history,we own the power to connectpast, present and future. Weown the responsibility for our

children and their children knowing their heritage. We own alegacy of greatness, intellect, courage, vision, perseverance andresilience as we write tomorrow’s history today.

Weaving the true history and vast contributions of African-Americans into the rich fabric of the American story is essentialto any telling of U.S. history. Black History Month highlightsour history for a concentrated period of time. The real power ofour history takes place not only as we tell it, but also as we makeit and shape it through our daily actions.

Black History Month is a limited time that highlights unlimitedpride in who we are as a people. It is a public testament to thedaily private acknowledgements of many ordinary people who


make extraordinary contributions. For me, it is a time to be reenergized by the work and life of people like Nannie HelenBurroughs. It is a time to be buoyed by her motto for the schoolshe founded: “We specialize in the wholly impossible.”

Willie BrownEXECUTIVE VICE PRESIDENTSTATE FARM INSURANCE

To celebrate Black HistoryMonth, I listen to speeches

of Dr. Martin Luther King Jr. In hearing his voice and his words, I know that his heart was free ofhate and full of good will and love

for all. I also honor Black History Month by helping othersbecome the best they can be. The more people I can help, themore joy it brings to my heart.

Obviously, I admire leaders such as General Colin Powell, thelate Ron Brown and the late Barbara Jordan, but I’ve only seenthem on television or read about them. The person I try to emulate is a colleague of mine, Greg Jones. Greg started at entrylevel at State Farm and is now a senior executive in charge ofState Farm’s California operations.

While working at State Farm, Greg put himself through college, earning a bachelor’s degree and MBA. He worked hardto learn the insurance business, the art of leadership and how todevelop people. Greg did all this with grace and dignity.Throughout his career, Greg has never stopped reaching back tolend a helping hand.

Black history is American history. We can’t talk about or studyAmerican history without including black history. American history is replete with the good, the bad and the ugly of whatmakes America the greatest country ever. America wouldn’t beAmerica without the many significant contributions of blackAmericans. We need to celebrate and honor these contributions12 months of the year, not just in February!

Our Clients include:

Constellation Energy

Blue Cross/Blue Shield of Florida

Eastman Kodak Company

Ernst & Young

Exelon Corporation

Exxon Mobil Corporation

Harrah's Entertainment Inc.

HCA Inc.

Hewitt Associates LLC

National GeoSpatial Intelligence College

Nationwide Mutual Insurance Company

Sodexho, USA

Starbucks Corporation

The Annie E. Casey Foundation

University of Michigan Institute forSocial Research

YWCA of Greater Pittsburgh

Inspiring Ingenuity from theWorkplace to the Marketplace

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877-546-8944 • www.wintersgroup.com

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Albert L. GaylorVICE PRESIDENT, INDUSTRYRELATIONS AND DIVERSITYSYSCO CORPORATION

As a young person growing upin Natchez, Miss., my par-

ents encouraged me to recognizeand celebrate Black HistoryMonth, which at that time wasreferred to as Negro History

Week. Today, as a resident of Houston, Texas, I carry on this tra-dition of celebration by attending local cultural events, includingcommunity plays, citywide parades and worship services dedicat-ed to the recognition of Black History Month. I am keenly awareand proud throughout the year of the many sacrifices and contri-butions my ancestors have made toward building our nation.

Looking across the landscape of African-American leaders, it isvitally important that individuals such as Dr. Martin LutherKing Jr., a pioneer in the struggle for civil rights, be recognizedand celebrated. Contemporary achievers, such as the late John H.Johnson, founder and publisher of Ebony and Jet magazines, alsoshould be recognized for vision and leadership. Recipient of the Medal of Freedom, the nation’s highest civilian honor, Mr.Johnson embodied the American Dream. One of his close colleagues said, “Considering the depth from which he came and the height he climbed and the obstacles he overcame, he was the greatest of all American publishers, black or white.”

As we celebrate Black History Month, SYSCO remains com-mitted to diversity and inclusion. By supporting and embracingdiversity, we gain new ideas and learn new ways to approachchallenges. This allows us to make better business decisions thathave far-reaching and lasting benefits for everyone our businesstouches: our customers, our associates and the communities inwhich we live and work.

Terry HowardWORLDWIDE DIVERSITYDIRECTORTEXAS INSTRUMENTS

From Boston’s Copley Square Icould see flames shooting up

from an apartment building a few

blocks away on Columbus Avenue. The closer I got, I realizedthat the apartment building in flames was number 320, wheremy brother Mike shared an apartment with MIT doctoral stu-dent Ronald E. McNair. Against my better judgment, I leapedover the yellow barricade tape and bolted up the steps fullyintending to get to the third floor to assess any damage done toMike and Ron’s apartment. I only made it to the first floor stairwell.

There sat Ron McNair clutching a baseball bat in his hands,blocking access and entry to any of the apartments on the lowlevel floors. His explanation? “Most of the people in this apart-ment building are as broke as I am. I’m just trying to help protect their stuff.” That incident, permanently etched in mymind, embodied in so many ways what Dr. Ronald E. McNairwas really all about.

In The Spirit of Ronald E. McNair, Astronaut—An AmericanHero, written by his brother, Carl McNair, superbly captures inwritten form the short life of an incredible man whose life wassnuffed out prematurely during the space shuttle Challenger disaster 20 years ago.

Without doubt, there are scores of anecdotes, words, andimages conjured up by the many people who knew and weresomehow touched by Ron McNair. My image would be ofsomeone who lived on the edge, raised the bar, and pushed theenvelope; all of which are perfect descriptive companions toRon’s “failure not an option” credo.

I stare off into space as I write this in the same way, I’m sure,that Ron did during his first shuttle flight in 1984. I’m seeingthe image of a young black boy sprawled out on his back in afield in tiny Lake City, South Carolina, staring at the sky and theheavens, and seeing the many possibilities, his heart filled withboth a dare and a dream to get there one day. And that, he did.

Dr. Ronald E. McNair joined immortality on the cold morningof January 28, 1986, and now sits in his rightful place next tothe truly great ones, not only in African-American History, butin history period!

Stephen W. RochonDIRECTOR OF PERSONNELMANAGEMENTU.S. COAST GUARD

Every February, I am upliftedby events highlighting the

achievements of African-American leaders. These greatleaders share common denominators of high values,

ethical behavior, integrity, passion and a determination to succeed—


qualities that my mother and grandfather instilled in me early inlife. One in particular has provided a compass to me in navigatingthrough my career—Richard Etheridge, a former slave.

In 1896, Richard Etheridge and his brave crew were stationedat the U.S. Coast Guard Lifesaving Station on Pea Island off theOuter Banks of North Carolina. As station keeper, Etheridge’sprofessionalism, leadership and preparedness were severely testedwhen he and his all-black crew faced a raging hurricane to savenine souls who were clinging to a grounded schooner. For thisfeat, Etheridge and his crew posthumously were awarded ournation’s Gold Lifesaving Medal 100 years later. Their legacy lives on today as America witnessed modern day Coast Guardrescuers from all cultural backgrounds respond admirably to thedevastation of Hurricane Katrina.

There were no cameras on Pea Island to capture the heroics of Etheridge and his brave crew, but Black History Month givesus a unique opportunity to tell their story and to celebrate theirgreatness. In the immortal words of my former mentor andrenowned author, Alex P. Haley, I make use of February andevery other month to “Find the good and praise it!”

John M. Bell SENIOR VICE PRESIDENT,DOMESTIC TELECOM HR VERIZON

Black history is American his-tory. We should celebrate it

every day, not just once a year.Answer the telephone, open arefrigerator, turn on a computer,flip a light switch or stop at atraffic signal and you’re benefiting

from African-American innovation. The contributions of peopleof color are undeniable.

At Verizon, we value these contributions. We’re committed to ensuring an inclusive environment that leverages the talents of all employees. As an industry leader, we count on the innovation and creativity of a diverse work force to help usenhance our customers’ lives.

Celebrating Americans of African descent—whose faith,courage and perseverance opened doors for so many of us—isimportant. We reached for our dreams standing on their shoulders.Many of them were everyday people like my father, John Bell.He only got as far as the fifth grade. But he taught himself therest and led by example. Through his work ethic and pride, heshowed his children that there were no limits to what we couldaccomplish. And he was right.

Yet, in 2006, there is still reluctance by some to recognize thevalue of diverse perspectives. So our challenge every day is tobring to the table the full weight of our experiences, thoughts,ideas and energy. By doing so, we honor and repay the unsungheroes who came before us and pave the way for generations yetto come.

Emerson U. Fullwood EXECUTIVE CHIEF STAFF ANDMARKETING OFFICER FOR THE NORTH AMERICAGROUPXEROX CORPORATION

In celebrating Black HistoryMonth, Xerox recognizes the

power of diversity to helpchange the world and secure a

competitive advantage in the marketplace. I’ve witnessed thispower because Xerox has embraced diversity from the beginningin the visionary leadership of our first CEO, Joe Wilson.

I often reflect on the legacies of past heroes—NelsonMandela, Martin Luther King Jr., Jackie Robinson, Rosa Parks—and also recognize that we have great role models today. Forexample, Stan O’Neal, chairman and CEO of Merrill Lynch, wasamong the first black students to integrate Atlanta’s West FultonHigh School. Ken Chenault, chairman and CEO of AmericanExpress, worked his way through Bowdoin College and HarvardLaw School.

Each of us, too, needs to carry the torch of diversity. We musttake the road in front of us farther than it extends today, and wemust also pave it and make it smoother for those who will followus. Take clear action: mentor people; promote education; fightfor more inclusive business policies; hold people accountable forour shared values. Action will determine success, and our actionsmust continually drive efforts to make diversity a vital intellectualand technical force.

PDJPDJ


According to Washington, DC-based Diversity Best Practices, 97percent of the Fortune 500 and

all government departments and agencieshave set goals and assigned a supplierdiversity manager or executive, often avice president, to support the function.

Diversity Best Practices has compileda list of the 15 best practices for supplierdiversity.

1. Gain executive commitment fromCEO, the Diversity Council, the topexecutive for Procurement and othersin the leadership for the overall sup-plier diversity program. The establish-ment of top executive support is significant to success.

2. Prepare a written vision statement asthe program must be “good for busi-ness” with commitment to leadership.

3. Commit staffing and budget for theprogram. Assign responsibility andaccountability clearly including theprocurement leadership, diversityofficer and council, and operatingbusiness heads.

4. Write a clear mission statement andbusiness plan.

5. Set goals and measure results. Reviewgoals on both dollar spend and

percentage spend. Review how toachieve these and report results on aregular basis. Make the success publicinternally and externally.

6. Assure clear policies and review themon regular basis. Prepare and educateon written procedures.

7. Review the certification program andrelationships with third parties thatcertify. Use third-party certificationwherever possible.

8. Participate with leading organizationssupporting certified women andminority entrepreneurs and attendsupplier diversity events.

9. Ensure that the Internet site is user-friendly for suppliers; update yourWeb site for suppliers.

10. Build mentoring and executive educa-tion programs. Many companies arechoosing to support their suppliers,perhaps by decreasing the total num-ber of suppliers but increasing thedollars spent with major women andminority firms. Two excellent educa-tion resources are the advanced train-ing programs offered by the KelloggSchool of Business at NorthwesternUniversity in cooperation with theNational Minority SupplierDevelopment Council, and the

Dartmouth program of the AmosTuck School with the Women’sBusiness Enterprise DevelopmentCouncil.

11. Integrate your suppliers into youreducational programs; showcase sup-pliers on your Web site and in yourmaterials and advertisements.

12. Tie your suppliers to your communityprogram and have them participate inevents and conferences with you.

13. Consider what makes an award-winning program and build successfactors.

14. Assure that communications andeducation are part of the program.

15. Measure and report. Measure andreport. Set the bar higher. Reportresults.

Diversity Best Practices (DBP) is a membership-based service that is pioneering new ways to achieve businessresults through diversity. Since its incep-tion over 200 Fortune 1000 companies,federal government agencies, and nonprofitorganizations have participated in itsbenchmarking programs and services. Tolearn more, visit DBP’s Web site atwww.diversitybestpractices.com.

Supplier diversity is an area of growing interest for corporate America and for thegovernment. Corporations are setting ambitious goals for themselves to reach out to businesses not traditionally included in the supply chain.

By Diversity Best Practices

Supplier Diversity Gains Traction Among

PDJPDJ


Fortune 500 Firms

Trends in Supplier Diversity

• Staffing for supplier diversity is increasing; on average, there are two to three people

assigned to the function throughout most leading companies. Within General Motors,

Daimler-Chrysler, SBC and Verizon, for example, DBP finds as many as 10-15 people

assigned to support supplier diversity.

• Budgets for the supplier diversity function are growing as personnel, programs,

advertising and marketing, training, conferences and seminars increase.

• Ancillary programs, such as mentor-protégé and training, will grow. DBP finds that

many companies are adding mentorship programs to support minority suppliers.

• As the supplier function grows, the pressure will increase as report cards are sent to

corporate CEOs, shared with government officials, and published in the media. Awards

and recognition in this area are on the rise. Magazines and communications vehicles

cover results and the awards for being the best in supplier diversity are being given by

minority and women’s organizations and the media.


The 2006 Profiles in Diversity Journal3rd Annual International Innovation in Diversity Awards

will honor ten organizations

and institutions that have

developed innovative solutions

offering measurable outcomes

in the area of workforce

diversity and inclusion.

OVERVIEWThe annual Profiles in Diversity Journal International Innovation in Diversity Awards honor individuals and teams working in organizations and institutions anywhere in the world that have developed innovative solutions offeringmeasurable outcomes in the area of workforce diversity and inclusion. Our objective is to encourage and increase thenumber of businesses and institutions implementing innovative programs, projects, or practices that will help toimprove workforce diversity/inclusion excellence.

Ten organizations will be selected as honorees. In defining innovation, we use Webster’s definition as “effecting achange in the established order; the creating of something new.” Innovations can be in the form of new ideas, methods, services, or processes that improve the quality of life or enhance productivity within an organization.Diversity includes variations among people with respect to age, class, ethnicity, gender, physical and mental ability,race, sexual orientation, spiritual practice, and any other human distinction.

These awards will recognize innovations within the organization that have been launched within the past two years,and have had an influence and delivered a positive outcome on diversity management, staff recruitment, and/ortoward inclusiveness and improved equity in the workplace. Any one idea or project qualifies so long as the ensuingresults are already making a greater impact on diversity management and/or business and institutional diversity/inclusion excellence than anything prior.

THE AWARDS AIM TO: • Encourage and share best practices toward innovation in diversity• Recognize and reward innovations in diversity • Increase the profile of innovative diversity practices within organizations• Inspire organizations and institutions to take innovative approaches to diversity management.

SELECTION CRITERIA INCLUDE:• Ease of implementation• Effectiveness in improving diversity awareness/management, staff recruitment, employee

retention and/or inclusiveness and improved equity in the workplace• Evidence of commitment and involvement from senior management and employees• Genuine measurable outcomes (tangible and/or intangible) due solely, or primarily, to that the checklist

Go to www.diversityjournal.com for full information, or call Jim Rector at 800-573-2867.Entry deadline: April 21, 2006

2005 Winners:SODEXHO • FORD MOTOR COMPANY • DAIMLERCHRYSLER • GEORGIA POWER • ENTERGY CREDIT SUISSE • PEPSICO • GM • SHELL INTERNATIONAL • NEW YORK LIFE INSURANCE

Download your application today!

What’s missing?

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the right consulting and training firm makes all the difference in building and

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AARP Services, Inc. page 57www.aarp.org

Bank of the West 80www.bankofthewest.com

Bausch & Lomb 71www.bausch.com

BellSouth Corporation 69www.bellsouth.com

The Boeing Company 55www.boeing.com

DaimlerChrysler Corporation 16www.daimlerchrysler.com

Dell, Inc. 7www.dell.com

Eastman Kodak Company 5www.kodak.com

Ford Motor Company cover 2www.ford.com

Georgia Power 67www.southernco.com/gapower

Halliburton 65www.halliburton.com

Ivy Planning 79www.ivygroupllc.com

Lockheed Martin 13www.lockheedmartin.com

MFHA 61www.mfha.net

MGM Mirage 63www.mgmmirage.com

Nationwide Insurance 45www.nationwide.com

PepsiCo, Inc. 3www.pepsico.com

Sodexho 11www.sodexhousa.com

State Farm Insurance Companies 73www.statefarm.com

Time Warner, Inc. 9www.twsupplierdiversity.com

Waste Management, Inc. cover 3www.wm.com

WellPoint cover 4www.wellpoint.com

Whirlpool Corporation 56www.whirlpool.com

Winters Group 72www.wintersgroup.com

illions of customers a week see our green trucks and green-uni-formed employees. Naturally, when you are as involved with the

community as we are – you get a unique insight into the world. That’s whyWaste Management is working harder to become a more forward-looking,forward-thinking company every day. We’re creating a culture that makesthe most of every employee’s potential. We’re bringing together a workforcethat reflects the communities we serve. In all, we’re building a frameworkfor a more inclusive, diverse company.

As a FORTUNE 200 company with over $11 billion in annual revenues, Waste Management is breaking new ground by creating opportunities where everyone is treated equally – with dignity and respect.

So when you think of a national leader of diversity and inclusion, Think Green.®

From everyday collection to environmental protection, Think Green.® Think Waste Management.

M

www.wm.com

©2006 Waste Management, Inc.

Who believes it takes many points of view to make a company with vision?

Think Green.®

What does it take to be namedFORTUNE® magazine’s MostAdmired Health Care Company six years running?

People like you.

At WellPoint, we celebrate the diversity

of our workforce. We are the leading

health benefits company in the nation

serving the needs of 34 million members.

A FORTUNE 50® company, we are

strengthened by the commitment and

dedication of our associates. If you’re

looking to join a company where you will

see your ideas in action - where what you

do helps others live better, consider a

career with us.

Visit our Web site to search opportunities

throughout the United States at:

www.wellpoint.com/careers

Opportunities may be available in the

following areas:

• Actuarial

• Administrative/Clerical

• Advertising/Marketing

• Claims/Membership/Customer Service

• Compliance

• Corporate Communications

• Finance & Accounting

• Human Resources

• Information Technology

• Legal

• Management

• Nursing/Case Management

• Pharmacy

• Provider Network Development

• Sales

• Training

• Underwriting

SM

EOE. SM Service Mark of WellPoint Inc. FORTUNE and FORTUNE 50 are registered trademarks of FORTUNE magazine, a division of Time Inc. ©2004 WellPoint Inc. All rights reserved.

diversity journal - jan/feb 2006

Documents

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diversity development

diversity best practices

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