profiles in diversity journal | jan / feb 2006

8/7/2019 Profiles in Diversity Journal | Jan / Feb 2006

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Volume 8, Number 1 January / February 2006

8.95 U.S.

Also Featuring ... Waste Managements Front-Runner Carlton Yearwood Leaders on Black Leaders


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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 authors

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

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Three separate features in this, our inaugural issue of 2006, reaffirm

the importance of executive leadership as companies initiate and developdiversity practices.

First, we have an extraordinary interview with Larry C. Glasscock

chairman, president, and CEO of WellPoint, Inc.describing what it

takes to ensure the success of diversity initiatives in large corporations.

Mr. Glasscock sees diversity as a multidimensional concept that applies

to both the culture and composition of the firms workforce. It involves

everything from respecting regional differences to offering health insurance

information in a Mayan dialect for Guatemalan immigrant communities

in California. When a culture champion was needed within the company,

Mr. Glasscock took on the role himself, becoming chair of the Diversity

and Workplace Culture Executive Steering Committeea perfectexample of a leader leading.

Next, we kick off our Front-Runner series with a profile of Carlton

Yearwood, vice president of human resources, business ethics and chief

diversity officer of Waste Management, Inc. Youll like the no-nonsense

approach 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 Vince

Lombardi and Colin Powell?

Finally, Diversity Best Practices offers its list of 15 best practices

among companies with strong supplier diversity programs. It is no

surprise that high on the list is the need for top-level support within the

company. The leadership must come from the topfrom folks like

Larry Glasscock and Carlton Yearwood.

Throughout the year well be showcasing other companies whose

diversity and inclusion programs feature aggressive plans and measurable

achievements. Well 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 VP

Corporate Diversity & Community Affairs, MGM Mirage.

We have one more treat for you to kick start the year and your

thinking. Thats 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 their

heroes. Their essays were more touching, thought-provoking, and

inspiring than we dreamed possible.

Weve packed a lot of good reading into this 80-page issue. Enjoy!

John MurphyManaging Editor


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6/844 Profiles in Diversity Journal January/February 2006

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 of

diversity and inclusion programs even as the company is expanding.

Carlton YearwoodWaste Management, Inc. Vice President

of Human Resources, Business Ethics,

and Chief Diversity Officer Carlton

Yearwood describes the companys

deep-rooted commitment to diversity at

every level.

17

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CatalystStereotypesWhat you dont see or hear in the workplace hurts

women. 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 that

locks the panes of the glass ceiling in place.

Diversity Best PracticesSupplier DiversitySupplier 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

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76

departments

Leaders on Black Leaders

We asked corporate leaders to reflect on black historyand the leaders they most admire. The essays we

received were both touching and thought-provoking.58


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

understand the importance of continuing its legacy. In addition,

its 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 co

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 Dells commitment to quality and to the future. We encourage you to apply, whatever

race, gender, color, religion, national origin, age, disability, marital status, sexual orientation, or veteran status.

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

CAREERS AT DELL. CONSIDER THE POSSIBILITIES.

Jeanne Oliver uses a Dell Latitude D61with Intel Centrino Mobile Technolog

Dell recommendsWindows XP Professional


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National City TapsTerri Hamilton Brown forCorporate Diversity Post

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

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

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

Were proud Terri has decided tojoin our team, said Dave Daberko,

chairman and CEO, National CityCorporation. Terris new role under-scores our commitment to developingand implementing a corporate strategythat focuses on managing workforcediversity and inclusion. Terris talent,experience and passion will help usachieve that goal.

I am excited to be a part ofNational Citys sincere dedication tocreating a workplace defined by diversityand inclusion, said Brown. If oursuccess matches that of National Citys

other 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 andprovide direct services and real estatedevelopment activities in UniversityCircleClevelands 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 bachelorsdegree in economics from TheUniversity of Chicago and a mastersdegree 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 on

WorkforceDiversity &Inclusion for theentire organiza-tion at ExcellusBlue CrossBlue 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 of

workforce multiculturalism.In her new role, Philippe will help

shape the companys strategy on multi-cultural talent acquisition, development,and retention as well as the future work-force planning and development.

Philippes educational background

includes a doctorate degree in culturalstudies from Bircham InternationalUniversity, bachelors and mastersdegrees in economics from the CityCollege of New York, and an MBA fromC.W. Post. She is a lifetime memberof the Black MBA Association and acertified professional in HumanResources.

Joan Kerr to Chair GlobalBusiness Committee

Joan Kerr, execu-

tive director ofAT&T SupplierDiversityPrograms, wasnamed chair ofthe GlobalBusinessCommittee ofthe WomensBusinessEnterprise

National Council (WBENC). Thecommittees mission is to work with

WBENC to build awareness of andfoster education about the role of

womens 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 international

womens business organizations andindividual WBEs eager to pursue oppor-tunities in the private sector. Kerrsprevious involvement with WBENC

includes serving as chair of the board ofdirectors; she has served as vice chair ofthe board of directors since June 2005.

Kerrs leadership in the supplierdiversity realm has been recognizedthrough her receipt of the Keeping thePromise Award from the CaliforniaDisabled Veterans Business Enterprise

Alliance, and her two-time receipt of theMBE Corporate Coordinator of the Year

Award from the National MinoritySupplier Development Council. Shealso received the Corporate Leadership

Award 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, amaster of social work degree from theUniversity of Washington, and bachelorof science degrees in comparativereligions and psychology from theUniversity of California at Santa Cruz.



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BE SEEN. BE HEARD. BE HIRED. Think you have the talent to click with Time Warner?Then register your minority- or women-owned business on our supplier diversity Website. If you have superior products or services and pricing, you could find yourselfworking with some of the worlds leading companies in media and entertainment.

For your opportunity, visit www.TWSupplierDiversity.com

www.TWSupplierDiversity.com

Talent meets opportu

ittyopportunitystarts hherestarts here



The Hartford SelectsMedina Jett for Group

Benefits Compliance PostSIMSBURY,Conn.TheHartford FinancialServices Group,Inc. (NYSE: HIG)has announcedthat Medina Jett,an attorney withbroad complianceexperience, hasjoined the companyas vice president

and chief compli-ance officer for its Group BenefitsDivision.

The Hartfords Group BenefitsDivision is a leading provider of groupdisability and life insurance, providinga 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 Hartfords Group Benefits Divisionand will also serve on The Hartfords

corporate-wide compliance council.The Hartfords 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 Hartfords GroupBenefits Division. Medinas complianceand claims management experience isvitally important in an increasinglycomplex regulatory environment.

Jett brings many years of insurancecompliance experience to The Hartford.She last served as vice president andchief compliance officer for Prudentialsretirement business. Immediately priorto her work at Prudential, she held asimilar role at Cigna. When Prudentialacquired Cignas 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 homeownersproducts; and business property-casualtyinsurance. International operations arelocated in Canada, Japan, Brazil and theUnited Kingdom.

DaimlerChrysler Financial

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

FARMINGTONHILLS, Mich.DaimlerChryslerFinancialServicesAmericas hasannounced theappointment of

Tracy L.Hackman, whojoined the com-pany as a staffcounsel in 1987,

to vice president, general counseland 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 companys 41-year history to leadthe Office of the General Counsel.

DaimlerChrysler Financial ServicesAmericas LLC is a company of theDaimlerChrysler 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. Tracys 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 highly

competitive business environment.Hackman has held a number ofincreasingly responsible positions withinDaimlerChrysler Services andDaimlerChrysler Insurance Company.Her most recent position was associategeneral counsel and corporatesecretary, 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 AppointsCynthia Hardy Young asNew 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 thecarrier of choice for the independentagent, said Edward M. Liddy, chairmanand CEO, The Allstate Corporation.


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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 ProtectionsNortheast 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 ofscience 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. Encompass

is 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.

ChiquitaBrandsInternationalElectsDr. Clare M.Hasler toBoard ofDirectorsCINCINNATI,OhioChiquita

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 thatprovide specific health benefits, such aslowering the risk of heart disease orcancer in addition to meeting basicnutritional needs.

We are delighted to welcome Clareto Chiquitas 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 andconvenient food choices.

Chiquita has embarked upon anexciting mission to become the globalleader in branded and value-addedproduce by helping the worlds con-sumers enjoy nutritional and healthyproducts, Hasler said. I am excited toadd my skills and experience toChiquitas board and to work closely

with this management team.Hasler holds a dual doctoral degreein environmental toxicology and humannutrition from Michigan StateUniversity and a masters degree innutrition from the Pennsylvania StateUniversity. She also earned a mastersdegree 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 theNAACPs highest honor for the companysleadership and continued support ofdiversity-based initiatives in Milwaukee.

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

Encouraging diversity is an ongoingcommitment at Johnson Controls, saidJohn Barth, chairman and CEO. When

diversity 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 Controlssenior 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 Milwaukeesminority 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 services

that 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


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Can one person

change the world?

One did.

Rosa Parks

February 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.


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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 womens and mens leadershipabilities. What can account for thestartling gender gap in business leadership?

What holds the glass ceilingtogether?The glass ceiling has entered the collec-tive consciousness as one reason why women dont advance. But for mostpeople, the factors that actually comprisethe glass ceiling are still vague andunexplored. When pressed to name aspecific component of the glass ceiling,some people might identify gender-based

stereotyping. 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, Catalysts 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 ceilingin place.

Gender stereotyping 101 We rely on stereotypesgeneralizationswe make to differentiate groups of peopleto 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 women

and men, they create a system of percep-tions that has little basis in reality. In theworkplace, the reality is that there are fewdifferences between womens and men'sleadership. Yet gender-based stereotypingis alive and well in business and plays amajor role in both womens and mensjudgments about women leaders.

How do they work? Gender-basedstereotypes anticipate and respond to thelegitimate differences between womenand men, helping us avoid spending

energy 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 womens advancement.

Women and men stereotypeBecause of the silent and insidious natureof stereotyping, it is difficult to quantifyits existence. However, Catalysts 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 similar ways. 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 and

male corporate managers perceive womenleaders as better at taking care behaviorssuch as rewarding and supporting.Meanwhile, they perceive men as betterat taking charge behaviors such asdelegating and influencing upward. Jeanine Prime, PhD, a director ofresearch at Catalyst and author of thestudy, remarks that its often these

StereotypesWhat you dont see or hear in the workplace hurts women.

By Catalyst



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Profiles in Diversity Journal January/February 2006 15

taking charge skillsthe stereotypicallymasculine behaviorsthat are seen asprerequisites for top-level positions.Misperceptions about those behaviorsand not fact-based informationfrequently influence decisions thatultimately shortchange women.

Disturbing effects on women While women and men judged mostleadership traits similarly, problem-solvinga hallmark trait of a CEOwas

the 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 womens abilitiesto influence and motivate teams andsubordinates. This may be particularlychallenging for women, who hold only15.7 percent of Fortune 500 corporate

officer 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 aresignificantly more likely to have negative

perceptions of women leaders thanpeople who work for women in feminineoccupations such as human resources orpublic relations. This may seem counter-intuitiveafter all, shouldnt 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. Since

stereotypes reinforce themselves, people with women supervisors are actuallymore liable to believe that women are lesscompetent leaders. The resulting credibilitydeficit obliges women leaders to spendtime defending decisions to subordinates when they all could be doing moresubstantive work. The vicious nature ofthis situation cautions us that simplyhiring 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 executivesisnt enough. Other changes companiesshould implement include: Adding greater rigor to the

performance evaluation process.

Implementing a system of checksand balances to safeguard againststereotypic bias.

Educating managers and executivesabout the latent influence ofstereotyping and ways to override it.

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

By following these steps to dismantle

the network of prejudgment, assumption,and misrepresentation created by stereo-typing, companies will not only improve womens 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 tosuboptimize women and lose a vitaltalent poolone they, frankly, cannotafford to ignore.

Catalyst is the leading research and advisory

organization working to advance women in

business, with offices in New York, San Jose,

and Toronto. For more information or to

download a free copy of Women Take

Care, Men Take Charge: Stereotyping

of U.S. Business Leaders Exposed, visit

www.catalyst.org. You may also sign up to

receive Catalysts issue-specific newsletter,

Perspective, and monthly email updates at

[email protected].

PDJPDJ


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Chrysler, Jeep, and Dodge are registered trademarks of DaimlerChrysler Corporation.

Diversity.

Its 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.


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Taking up the challenge

IMAGINE BEING EIGHT YEARS OLD AND HAVING TO TRANSLATE A

DOCTORS COMPLICATED DIAGNOSIS TO YOUR MOTHER BECAUSE SHE

DOESNT 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, THERES 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 Ingredientfor a Healthy CorporateCulture

Putting principlesinto practiceat WellPoint, Inc.


Special Feature WellPoint


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communities and the people who live

there, says Mr. Glasscock. If you are

truly interested in meeting people

health care needs, you have to under-

stand their community and be a part of it.

WellPoint is doing just that. A cas

in point: the companys 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, say

CaLMA Executive Director Christine

Gonzalez. They comprise the larges

number of wait-listed students, apar

from Native Americans. WellPoint

contribution has created an exceptiona

opportunity to close the gap.

Ms. Gonzalez applauds WellPoint

determination to answer a real and

pressing need.

They came to us and said, Where

is help needed most? she explains. W

pointed to the language issue and said i

would take a lot of money to address i

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


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Not only will WellPoints 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 Californias Latino community.

Even the governor is watching closely

now to see the kinds of results we

achieve.

A community business

While 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 course

WellPoints 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 companys 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

Special Feature WellPoin

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%


24/84


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 WellPoints

business. Mr. Glasscock took it upon

himself to personally communicate the

companys new core values to managers

via face-to-face meetings and to all

associates via global voice and e-mail

messagesplacing strong emphasis on

WellPoints 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.

Weve 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


25/84


Diversity management at

WellPoint 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

AIMDs 20th anniversary celebrations in

Atlanta.

The companys 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 disABLEDmagazine.

While this recognition is welcomed

by all at WellPoint including Mr.

Glasscock, he points to the companys

new vision and mission as containing the

real measures of success.

Weve said we intend to transform

health care and become the most valued

company in our industry, he explains,

quoting WellPoints 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.

Im proud of the commitment our com-

pany has made. Im excited by the steps

weve taken. And Im looking forward to

continued progress in the years to come.


Associate Julie Schlereth meeting Larry C. Glasscockafter the close of the Anthem and WellPoint merger.


26/84



WellPoint Chairman,

President and CEO

Larry C. Glasscock

shares his views on

managing diversity

and why its a priority

Mr. Glasscocks interest inand com-

mitment todiversity 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 WellPoints stated

vision is to transform healthcare. Thats an ambitious

goal, to say the least. What

has motivated it?

Weve 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 outmaintaining 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 concerns

relate to your stance on

diversity?

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

theyre not always well-represented inthe ranks of health professionals

Overall, they have poorer health status

than non-minorities. Were committed

to understanding and addressing these

issues.

What can WellPoint do to

change 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

million-dollar grant to the California

Latino Medical Association to fund

Dedicated to diversityinterview::


27/84





scholarships for Hispanics and Latinospursuing nursing careers. Were 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 for

WellPoint 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, were looking at a

combination of external recruitment

and internal development. Both

approaches will produce some positive

short-term results, but were 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 support

your 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 ou

Executive Leadership Team acts as the

DWC Executive Steering Committee,

and I chair that committee, so were all

very closely involved in determining

diversity strategies, measures and

approaches. Also, when I think about

the makeup of the companys leadership,I strive to ensure that there is diversity of

thought and experience at the table.

When you look at the backgrounds o

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?

Theres always education and communi-

cation to be done, particularly in a com-

pany thats 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. Weve 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::


29/84Profiles in Diversity Journal January/February 2006 27

tion, communications and celebratoryevents. They also serve as focus groups as

we assess our diversity strategies.

That sounds like a good

inclusion mechanism. Are

there other ways WellPoint

ensures the inclusion of

employees?

In November, we conducted our first

integrated, all-associate survey since the

merger. Were 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 those

who think inclusion programs

for under-represented

groups 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 its driven by our

business objectives, and we cant afford

to be exclusionary in any regard. That

said, there will be times it is necessaryfor us to specifically recruit minorities

and womenfor 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 theday, 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

CDHPsconsumer-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 its already chang-

ing the way we design our products and

services. For us, its 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


30/84

WellPoint strategies for

managing diversity

At WellPoint, diversity is a multi-

dimensional concept. It applies in the

workplaceboth culturally and in terms

of the composition of the companys

workforce. It applies in the marketplace

encompassing everything from respect

for regional differences to ensuring that

WellPoints slate of health insurance

products and services answers the full

range of consumer needs.

From WellPoints perspective,

diversity also has a great deal to do with

opportunity, whether its 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 mode

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 WellPoints case include customers,

shareholders, suppliers and others).

Covering all the bases

WellPoint strives to ensure that it

workforce mirrors its markets by recruit-

ing and engaging a broad range of talen

across all levels of the organization

In addition to diversity-oriented

employment campaigns via the Internet

print and broadcast media, direct mai

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.

WellPoints Core Values

One of WellPoints 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 supported

by detailed guiding behaviors that

provide a solid foundation for the

companys success.


A multidimensional approach



31/84Profiles in Diversity Journal January/February 2006 29

Together, WellPoint and INROADS

provide scholarships and internships for

minority students and also recruit new

graduates to participate in WellPoints

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-

panys 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 companys work-

placeilluminating for them the various

ways those diversities can be put into

action for the companys 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 WellPoints

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

companys workplaceilluminating

for them the various ways those

diversities can be put into action

for the companys collective benefit.


32/84



From the HIPP

Marcus Taylor discovered an unexpected

career opportunity through WellPoints


When Marcus Taylor decided to pursue a

career in health care, he pictured himself in

hospital administration. That was before the


(HIPP) led to a job as account manager in

Indiana Large Group Sales.

Life and leadership are about what you

do to make other peoples lives better,

Mr. Taylor explained. After watching his

grandmother struggle with the health care

system, he knew he wanted to improve

access to health services and how they

were 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 masters 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 own

networks of leaders to learn about the career paths theyve taken.

His first-year rotation took him to WellPoint Business Solutions and Services (BSS). In his project

management 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 leaders

helped 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. Taylors 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 earlier

this year. And although he didnt remain in HIPP for a third rotation, he continues to be involved

as 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 backone more way to make a difference.

Marcus TaylorAccount Manager

Indiana Large Group SalesWellPoint, Inc.


33/84



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

Hispanic Business Magazinenamed

Vice President of Emerging Markets

Leonor McCall-Rodriguez one of

80 Elite Women in America for her

outreach to multicultural health care

markets.

Working Mothermagazine 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.)

Whos Who in Black Indianapolisand

Whos Who in Black Cincinnatifeatured 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 EmploymentJournalnamed WellPoint one of the

Top Financial Institutions and

Insurance Companies for Minorities

for two consecutive years.

CAREERS & the disABLEDmagazine

named WellPoint one of the Top 50

Disability-Friendly Employers for

two consecutive years.

Hispanic Business Magazinenamed

WellPoint one of the Top 25 U.S.

Companies for Minorities for two

consecutive years.

Next Step MagazineidentifiedWellPoint as One of Americas Most

Diverse Organizations.

FORTUNEmagazine declared

WellPoint the nations Most Admired

Health Care Company for six years

in a row.

The Human Rights Campaign,

Americas largest advocacy group for

gay, lesbian, bisexual and transgenderAmericans, gave WellPoint a rating of

86 percent on its Corporate Equality

Index in 2005; the index is the

nations 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.


34/84



Achievingimpact

Taking action

on diversity

Good intentions are wonderful,

but they dont 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 companys culture

including its approach to managing

diversity.

Everyone on our executive team

sees him- or herself as a standard-bearer

of the companys 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

Larrys role as co-chair of the 20th

anniversary celebration of the

American Institute for Managin

Diversity.

WellPoints department of Diversity

and Workplace Culture is focused

strategically on aligning the companys

business goals with diversity best

practices in training, strategic planning,

and multicultural market development.

As such, the department serves as

key instrument in carrying out Mr.

Glasscocks 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 companys Culture-Shaping

Leadership Forum last May. Led by

Mr. Glasscock, the forum gathered

WellPoints top 300 leaders for a discus-

sion of the critical relationship between

corporate culture and performance.

Our associates not only have

to understand the companys

values, they must also

appreciate where those

values come fromthe

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.


35/84



Following the forum, 46 facilitators

from the associate population were

chosen to communicate WellPoints

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. WellPoints leaders are

convinced that this ambitious

acculturation program (and the invest-

ment it represents) is essential to estab-

lishing a foundation for the companys

success going forward.

Our associates not only have to

understand our corporate values, they

must also appreciate where those values

come fromthe 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, thats a clear indication that

people are interested in and supportive

of the direction the company is taking.

The 2005 class of the Diversity LeadershipAcademy of Greater Indianapolis was the

third class to graduate since WellPointhelped found the academy in 2003.


36/84


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

strategiesdespite 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 companys

diversity commitment originated

at the very top.

In August 2005, Ms. Wade

and her colleagues prepared a com-

prehensive succession planning report

for WellPoints board of directors

with an eye on the diversity of

current and future leaders. Already,

WellPoints commitment to con-

sistently monitor the diversity of

its associates has resulted in an

11 percent increase in minority

women working in management.

Im proud that we already

have strong representation of

women at the highest levels of our organ-

ization, Ms. Wade says. Going forward,

well continue to foster that and at the

same time strengthen the presence of

individuals from different ethnic and

cultural backgrounds.

Shes quick to point out that a

successful diversity programparticularly

at the leadership levelcant be simply

about meeting quotas.

You cant 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 WellPoints

Emerging Leaders Program

was extremely helpful

direct, honest andprofessional.

Dijuana Lewis

President,

Northeast Markets

WellPoint, Inc.


37/84



regardless of who they are or where they

come from. Thats 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 emerge

WellPoint 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 companys expanded

needs and circumstances.

The new initiative is slated for

rollout in 2006. The legacy programs on

which it will be based include WellPoints

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 companys

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

feedbackfeedback that was direct,

honest and professional, she shares. It

was the greatest growth experience Ive

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

Americas 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 WellPoints innovative

new-parent transition week are all available to support this

commitmenteven at the companys executive levels.


38/84



company put people through

AHIPs Executive Leadership

Program, which focuses on

developing industry leaders

through internal and external

mentoring relationships.

One of WellPoints 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 leadingexample

The Diversity

Leadership Academy

of Greater Indianapolis

Perhaps one of the most visible

indicators of WellPoints commitment

to cultivating leadership diversity

within and outside its own corporate

environmentis 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 academys

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 companys 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.


39/84


Truly groundbreaking

Indianapolis was the first city out-

side of Atlanta, Georgia to establish aDiversity 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 citys 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 diversityissues

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 theeffort 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 organizations 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 [WellPoints]

commitment to doing it well.

In 2005, the organization observed

its 20th anniversary. WellPoint was title

sponsor of AIMDs 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 AIMDs 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


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Diversityis our business

WellPoints

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 companys

business strategies have to be rock-solid

especially if that companys declared aim

is WellPoints: 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. Were developing

approaches to gather that datawhile

protecting the rights and the privacy

of patientsas an essential step toward

achieving our long-term aims. Its

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

ing diversity is our business.

Extending reach and building

capacity 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; its 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 graduatesand

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

theyre 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 graduatesall from

the Los Angeles areawent out into the

field in January 2005. Ms. Lachman says

the reach of the program will expand over

time. Shes extremely pleased with the

results so far.

Weve helped people become bona

fide entrepreneurs, she concludes,

people who were already very gung-ho,

ambitious and dedicated. Its gratifying to

see how sincerely appreciative they are of

the opportunity, and how determined

they are to succeed.


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Working the issueR. Roosevelt Thomas Jr., PhD, reflectson WellPoints 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-lineintegration, and acquisitions and mergers.

Dr. Thomas created AIMD to help organizations understandwhy managing diversity is essential not only ethically butalso from a business perspective. In the words of theorganizations 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 Americas mostprominent corporations including the Coca-Cola Company,which sponsored the original DLA in Atlanta.

Profiles in Diversity Journalspoke 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?

Its 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. Glasscocks role as co-chair of the 20th anniversary celebration?

Hes a committed champion of AIMD, and he was insistent that we needed to have a bigcelebration 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 hason 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. Thats what I see WellPoint doing, and I think its really commendable.

R. Roosevelt Thomas Jr., PhD,Founder, American Institute for

Managing Diversity


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Speaking the same language

WellPoints commitment to communicating with consumers in

their language of choice goes beyond just English and Spanish.

The company recently began offering services in the spoken

Mayan dialect Qanjoval to connect with Guatemalan immigrant

communities.

A high percentage of the ethnic communities we serve are

uninsured. For example, in California, an estimated 3.3 million of

the uninsuredsome 56 percentare Latino. A lot of this is due

to not understanding how insurance works and how to navigate

the health care system in the United States. If we are to succeed

in insuring everyone, we have to reach out in the right language

and 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 members

and non-members understand how they can access health care.

Leonor McCall-Rodriguez

Vice President, Emerging Markets

WellPoint, Inc.

You are who

you work withSuppliers are animportant dimensionof 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 a

its director of Supplier Diversity.

Ms. Burke is an undeniably ap

choice for the job. As a former directo

of administration for the mayor o

Indianapolis, she led the citys 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 touche

every aspect of life, from hiring the best

talent and career advancement to supplie

relationships. WellPoint believes a diverse

supplier base enables it

profiles in diversity journal | jan / feb 2006

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