engaging diverse groups for better business results

“Engaging Diverse Groups With Cultural Intelligence To Deliver

Better Business Results”

Copyright © 2014 MFHA www.mfha.net

Our Changing World

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Agenda

• About MFHA• Learning Objectives• Diversity & Inclusion Defined• Business Case for Diversity &

Inclusion• Cultural Intelligence Approach• Best Practices & Action Steps


Learning Objectives

• Diversity & Inclusion work is about delivering better business results in the workplace & marketplace.

• Must make the business case specific and measurable to the markets you serve.

• Cultural Intelligence offers a competitive advantage with all stakeholders. Everyone can improve their cultural IQ.

• Must be intentional in your efforts. You must act on the opportunity. Talk is not enough.


My Journey- My Story• Black American of

Cape Verdean decent• Middle child- #3 of 6• Culinary school grad• Husband (34 yrs.)• Father of 3 boys• Grandfather of 6

(3+3)• Country music fan• Survivor of…


Who We Are

MFHA is an educational non-profit that delivers multicultural solutions and services to our members that help

them maximize business opportunities in the workplace and marketplace.


What We Do

We help our members and the industry effectively engage multicultural employees,

customers and communities to improve business results.


How We Do It

• EDUCATE We provide cultural intelligence and professional development training to drive business results.

• ADVOCATE We promote the career and business opportunities that exist with member companies for minority talent.

• CONNECT We help industry professionals connect with each other for informal mentoring and networking at our events and activities.


MFHA Dinner Table of Opportunity

Workforce• Increased Productivity• Diverse Recruiting Success• Improved Communication• Better Retention

Customers• Better Dining Experience• Better Lodging Experience• Improved Industry Image• Increased Business

Suppliers• Increased MBE Volume• Wider Participation• Reduced Costs• Product Innovation

Community• Improved Image• Quality Relationships• Strategic Partnerships• Cultural Understanding

If You Are Normal…

This is reverse

discrimination!

What about me?

I don’t see race.

I’ve heard this before!

I have

more

important

work to

do.

How is this going

to benefit me?

I don’t get it. Why are giving minorities

special treatment

Why are we taking this class?

“McNugget Love”Increases Sales by 20%!

YouTube: http://youtu.be/_oMGP_R4mlQ

http://youtu.be/_oMGP_R4mlQ



Definition of Diversity & Inclusion


Diversity Defined

• The things that you CAN actually see when you look at an individual, and the things that you CAN'T see.

• Diversity management initiatives are primarily about “counting heads”.

Inclusion Defined

• The act or process of utilizing someone's talents and skills for the benefit and gain of everyone.

• Inclusion is largely about “making heads count”.

Copyright © 2013 MFHA, ALL RIGHTS RESERVED

Inclusion Example

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The Business Case


I. COMPLIANCE

II. BEYOND COMPLIANCE

III. THE BUSINESS CASE

IV. EMPLOYER OF CHOICE

V. LEADER IN

DIVERSITY

Make The Business Case

THE EQUITY CONTINUUM

Where do you/company fit in a changing America?

04/10/2023“CONFIDENTIAL” -- MFHA ©

COPYRIGHT 2012 ALL RIGHTS RESERVED

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Source: Centre for Diversity and Business, Business and Diversity,2003, Ashbridge Business School, UK


Cultural Dynamics Have Changed

Cultural dynamics have always existed in the U.S.A. but they have changed because the population growth and spending power of people of color have skyrocketed!

Then: A melting pot Now: A bowl of gumbo

``


Population Projections

20Copyright © 2014 MFHA www.mfha.net

What’s Driving Multicultural Growth?

Non-whites represented almost 37% of the U.S. population in the 2010 U.S. Census; however 50% of all babies born were non-white for the first time in U.S. history

Source: The U.S. Census


Buying Power Growth

• In the past decade, the buying power of the multicultural market has surpassed the majority market buying power

• The buying power of people of color is growing at a faster rate than Caucasians (213%)

Segment2010

Buying Power

1990-2015 Growth

Rate

Hispanics/Latinos

$1 trillion 605%

African-Americans

$957 billion 294%

Asian-Americans

$544 billion 571%

Native Americans

$68 billion 362%

Source: Selig Center for Economic Growth


The Future of the U.S. Workforce

• In 2012, number of women

in the labor force grew by

14.3% compared to 10% for

men

• Increase in # of wired,

connected Millennials will

change the way we

motivate employeesSource: U.S. Department of LaborU.S. Census Bureau

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A Changing Customer Profile


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Key Industry Facts• All multicultural consumers over index in

the food categoryKey food categories

– Spices– Extracts– Dried Vegetables– Seasonings – Condiments– Sauces

Source: Nielsen


Key Industry Facts

• In recent years, spending on eating away from home in African American and Hispanic households has increased 43.6 % an 34.3%, respectively


Hispanic/Latino Key Demographics

• Buying power of approximately $1.3T!

• Hispanics make up approximately16 percent of the total U.S. population, representing 50.5 million people

• In the last decade, Hispanics accounted for 1 out of every 2 individuals added to the U.S.

• 10 states with largest Hispanic markets:California, Texas, Florida, New York, Illinois, New Jersey, Arizona, Colorado, New Mexico, Georgia

Sources: Selig Center for Economic Development and The U.S. Census


Hispanic/Latino Lifestyle & Culture• Hispanics/Latinos are an ethnically and racially diverse

population with the majority being Mexican Americans (65%)

• A large majority (76%) of the Hispanic/Latino community speaks English, and 71% speak Spanish at home

• Hispanics/Latinos are brand loyal, but tend to be price conscious

• Almost 1/3 of Hispanics/Latinos work in service industries• Hispanics are family centered

– The extended family plays a major role• Religion plays a central role in the lives of Hispanic/Latino

Americans

Sources: The Pew Center, National Council of La Raza (NCLR) and CEPR

Sources: The Pew Center and National Council of La Raza (NCLR)

African-American Key Demographics

• African-Americans have approximately $957B in buying power!

• Despite being the hardest hit by the current recession, the African-American buying power is projected to rise to $1.2T by 2015, an increase of 25%

• African-Americans represent approximately 13% of the population, or 38 million people in the U.S.

• Between 2010 and 2015, African-Americans will grow 38 people/hour

• 10 states with the largest African-American markets:

New York, Texas, Georgia, California, Florida, Maryland, Illinois, North Carolina, Virginia, New Jersey

Sources: The Selig Center for Economic Growth, The U.S. Census and Geoscape

Sources: Selig Center for Economic Development and The U.S. Census


African-American Lifestyle & Culture• African-Americans are brand conscious and the

most brand loyal• African-Americans are consumer trendsetters• The majority of African-Americans are spiritual people• 54% of African-Americans are educated, ranging

from some college(34%) and up to a master’s degree (21%)

• Most preserve traditions associated with music, culture and food

• African-Americans trust Black media more than any other institution, and many are distrustful of main stream media

• Most prefer businesses that give back to the Black community

Sources: 2008 Radio One/Yankelovich Study and Target Market News


Asian-American Key Demographics• Asians have nearly $544B in buying power!

• By 2015, Asian buying power is expected to grow 42 percent to $775 billion

• The nation's 14.5 million Asian-Americans are nearly 5% of the U.S. population

• The majority of the population consists of Chinese/Taiwanese; Asian Indians; Filipino, Vietnamese and Korean

• Three -fourths of Asian workers were born outside the United States; but 71.4% of Asian workers are U.S. citizens

• 10 states with the largest Asian consumer markets:

California, New York, Texas, New Jersey, Illinois, Hawaii, Washington,Florida, Virginia, Massachusetts

• Asians are the fastest growing multicultural race

Sources: The Selig Center for Economic Growth , The U.S. Census and Geoscape


Asian-American Lifestyle & Culture

• Asian-Americans are more likely to look at products and features before making a purchase (value concious)

• Asian American households tend to be larger, with more workers and several generations living under one roof

• The largest single industry for Asian-American men is restaurants

•

• Asian Americans tend to live two distinct socio economic lifestyles among their population

– High income earners– Low income earners

• The ‘Asian Pacific American’ umbrella includes over 45 distinct ethnicities speaking over 100 language dialects

Sources: CEPR, Pew Research Center and Nielsen


The Disability Market

Represents a strong dining and travel market:More than 75% of PWD dine out at least

once per week. PWD spend nearly $35 billion a year dining

away from home and $14 billion a year on travel.

PWD make up fifteen percent of the sales in full service restaurants.

Sources: PRN Newswire, 2003; National Restaurant News, 2003; In Business Las Vegas, 2007, U.S. Census 2000


Has been instrumental in increasing company profits: Embassy Suites added $13M to their gross revenue,

within 3 years, by providing a disability customer service training program for their staff.

Inter-Continental (InterContinental, Crowne Plaza, Hotel Indigo, Holiday Inn, Holiday Inn Express) estimated that accessible rooms accounted for 3.4M room nights sold in 2010, based on reservations.

Microtel Inns and Suites reported that ADA room bookings were up by 275%; net revenues by more than 260%; and internet bookings increased more than 400%.

The Disability Market


There’s A McDonald’s for Everyone

35Copyright © 2014 MFHA www.mfha.net

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Ethnic Consumers Want to Know

• Do you have products that are relevant to my background and culture?

• Are you supportive of my community?• Do you hire people who look like me

and are they successful?• Do you support minority & women

owned businesses?


Supplier Diversity • A meaningful company commitment to

expanding its base of minority & women owned suppliers.

• An effort to create & develop a marketable advantage with an increasingly diverse consumer base.

• To foster economic health in the communities in which a company operates.


Supplier Diversity• Good for Business Helps gain access to

ethnic markets, increases competition, and creates wealth in the community

• Demonstrates a full circle commitment to diversity and inclusion

• The Smart Thing to Do Reciprocity, corporate image, relationship building

• Compliance Federal and/or state government and customers require it


Workforce Customers

Community Suppliers

• Increased Productivity• Diverse Recruiting Success• Improved Communication• Better Retention

• Better Dining Experience• Better Lodging Experience• Improved Industry Image• Increased Business

• Increased MBE Volume• Wider Participation• Reduced Costs• Product Innovation

• Improved Image• Quality Relationships• Strategic Partnerships• Cultural Understanding

Dinner Table of Opportunity

MBE’s must do more!


Top Performing Companies


Multicultural Matters

• Domestic multicultural markets are increasingly less-White and less-American-Born

• Success in multicultural markets requires knowledge, skills and connectivity to be successful with consumers, guests and employees

• The increase in multicultural purchasing power and demographic changes make the business case


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Cultural Intelligence


Build Your Cultural Intelligence


CI Defined

Cultural Intelligence (CI) is having the knowledge, skills, and abilities

necessary to effectively engage people from different cultural backgrounds to

deliver better business results.


Benefits of CI

• Increase sales and reduce costs• Improve customer service• Deliver better results with

multicultural teams• Drive positive employee engagement

scores• Gain wider access to multicultural

markets


Engaged EmployeesHighly engaged employees are those who have high commitment levels to one or more of these:

• Job

• Co-workers

• The Boss

• The Company

High commitment occurs when an employee feels valued by their manager, team and company

Source: 2013 Gallup Business Journal, Inc.


Engaged Employees

• Engaged employees give 40-80% more discretionary effort in their jobs than low commitment employees

• Moving an employee from low commitment to high commitment decreases their turnover rate by 80%

Source: 2013 Gallup Business Journal, Inc.Copyright © 2014 MFHA

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Cultural Intelligence Competencies

• Cultural Self Awareness • Cross-cultural Communication• Conflict Management• Authentic Coaching • Empathetic Engagement


Example: Cultural Norms & ValuesHigh Explicit High ImplicitWhat I say is what I mean Non-verbal behaviors are as

important as what I say

Quick relationships, short-term duration, perhaps long-term

Get to know you then long-term relationship after trust

established

Hierarchy, Individual is paramount

Collective, Group is paramount

It’s the truth Saving Face is importantDirect conversations Indirect conversationsConflict is okay Harmony is desiredPersonal space Shared space


Example: Difference in Values Latino Values Eurocentric Values

Interdependence Independence

Family First Me First

Family helps Family Helping self helps family

Humility Self-Expression

Work Hard Work Smart

Sacrifice Pay Your Dues

Stability What’s New? What’s Next?

Respect for Authority Challenge Authority

Modesty Toot Your Horn

God Loves the Poor God Loves the Rich, Too

I Accept Life’s Problems I Solve Life’s Problems

Whatever God Wants The Sky is the Limit

I Hope to Achieve I Believe I Will Achieve

Give Respect Earn Respect


KFC Example


YouTube: http://youtu.be/GpqTqtDT6t8

http://youtu.be/GpqTqtDT6t8



Best Practices & Action Steps


Darden Marketing Example(Red Lobster)


YouTube: http://youtu.be/LZ9DpW9b2eM

http://youtu.be/LZ9DpW9b2eM

http://youtu.be/LZ9DpW9b2eM

Darden Best Practice

• All senior executives must serve on a board of a group unlike themselves.

• Drives traffic to the restaurants

• Build talent pipeline for company

• Visual give back to the community


Diverse Campus Involvement

26 Core Relationships on 29 Campuses

– 18 NSMH Chapters– 6 Historically Black Colleges &

Universities – 3 Hispanic Serving Institutions– 7 Asian Institutions– 2 Career Opportunities for

Students with Disabilities Chapter Colleges

– 1 Tribal College

College Association Relationships• Strategic plan for each association• Operators, recruiters, and executives

participation• National and regional board memberships• Build top talent pipeline for openings and

internships NSMH

• Industry Partner 2000-2014• National Conference, 5 Regional Meetings• Talent Advisory Council & operations leadership

attendance


Best Practices

Growth in Latino Affinity Leadership Programs– Latino Leadership Institute at UCLA– Latino Executive Program at SMU (NHCC)– National Hispana Leadership Program– Women of ALPFA– Corporate Director Program at Harvard

University– Corporate Executive Program at HACR– Sodexo, General Mills, McDonald’s, Publix,

Walmart


Cultural Intelligence Action Steps

• Learn to lean into discomfort• Use a different lens to see the

world • Be intentional about wanting to

learn • Be color conscious, not color blind• Challenge stereotypes


Engage With Cultural Intelligence

• Engaged employees have higher commitment to their job, co-workers, boss & the company.

• High commitment occurs when an employee feels valued by their manager, team & the company– Ask a Asian/Black/Latino employees what it is like

working there as a person of color.

– Ask them where they feel they are included the most in company activity.

– Ask them to give you three specific actions you can take to help them make stronger connections in the company.


Engage With Cultural Intelligence

• Read about Asian/Black /Latino workforce issues on the internet.

• Ask multicultural employees in your company to mentor you on multicultural issues in the workplace.

• Trust and Respect are the MOST important values.• Read books “Striving While Black” or “Hispanics in

the Workplace”– Integrate lunches and the Links– Manage perceptions in the workplace– Avoiding stereotypical behavior– Building & nurturing a support network


Coach With Cultural Intelligence

• Talent Coaching - Educate employees on the nuances for effectively coaching Latino talent– Tend to share a lot of personal information– Tend to avoid prolonged eye contact– Focus more on team accomplishments – May lack a 3-year career plan – May be hesitant to move away from family– Difficulty talking about greatest strengths


Manage With Cultural Intelligence

• Be proactive about wanting to know more about other cultures.– Seek a broader perspective by using websites,

periodicals and personal interaction• Build trust through consistent, fair and inclusive

actions.– Minorities often times feel misunderstood and

under appreciated– Providing specific and honest feedback in a

caring “I want you to get better” fashion is more important for minority groups.


Manage With Cultural Intelligence

• Recognize and address the perspective of multicultural employees.– They may lack an orientation of corporate

America– Must deal with sense of race/ethnic identity at

work – Often feel a sense of isolation; sense of being

the “token”; expected to “speak for the group”– Feel tremendous pressure to assimilate; yet

they may feel guilty for not bringing their “whole-self to work”


Summary• Diversity & Inclusion work is about delivering

better business results.• Must make the business case specific and

measurable to the markets you serve.• Cultural Intelligence offers a competitive

advantage with all stakeholders. Everyone can improve their cultural IQ.

• Must be intentional in your efforts. You must act on the opportunity. Talk is not enough.

Thank you!

[email protected]/mfhanetfacebook.com/mfha.netSlideshare.com/mfhaCI


http://www.mfha.net/

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