2012 02 D&I Academy_Metrics

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Session delivered as part of The Conference Board Diversity and Inclusion New Leaders Academy aimed to train new practitioners in the D&I field about relevant metrics. Four types of metrics are covered: profitability (impact of diversity in performance), workforce representation (cascading gender goals), inclusion and flexibility.

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2012 02 D&I Academy_Metrics

  1. 1. Diversity and Inclusion Metrics Measuring what counts Uxio Malvido Principal Advisor, Diversity and Inclusion Rio Tinto Diversity and Inclusion Academy Munich, February 20121 © 2011 The Conference Board, Inc. | www.conferenceboard.org
  2. 2. Session outline PROFITABILITY REPRESENTATION Overcoming limitations of Setting meaningful local correlation studies goals FLEXIBILITY INCLUSION WORK-LIFE Measuring culture change Showing business value2 © 2011 The Conference Board, Inc. | www.conferenceboard.org
  3. 3. Profitability studies Catalyst: The Bottom Line3 © 2011 The Conference Board, Inc. | www.conferenceboard.org 3
  4. 4. Profitability studies McKinsey: Women Matter4 © 2011 The Conference Board, Inc. | www.conferenceboard.org 4
  5. 5. Profitability studies EVA Analysis: Female Leadership and Firm Profitability5 © 2011 The Conference Board, Inc. | www.conferenceboard.org 5
  6. 6. Representation targets Merck Corporate goal of increasing female representation at the top from 29% to 36% in 4 years) Objective Measure 50% 100% 200% Points Develop Diversity Index 50% 100% 200% 3 Strong Leaders Female Representation (M01-M03) 31,6% 32,1% 33,1% Baseline: 30,8% (34% - (36% - 40% - (24 F / 78 T) baseline)/4 baseline)/4 baseline)/4 Annual target6 © 2011 The Conference Board, Inc. | www.conferenceboard.org 6
  7. 7. Representation targets Rio Tinto Corporate goal of increasing female representation in senior management from 14% to 20% by 2015 Reporting Board Executive Senior Graduates Year Committee* Management 40% F by 2015 (A-E) 15% DC by 2015 20% by 2015 2009 12% or 2 F 20% F or 2 F 13% F 29% F 2010 14% F or 2 F 20% F or 2 F 14% F **27% F 8% DC 2011 14% F or 2 F 20% F or 2 F 14% F ***25% F 20%DC *Does not count CEO (18% with CEO) **DC equals country we are developing business in ***Graduate goal for 2011 numbers not final—these reflect offers made7 © 2011 The Conference Board, Inc. | www.conferenceboard.org 7
  8. 8. Cascading targets % Exec. % Managers / Pipeline % Workforce8 © 2011 The Conference Board, Inc. | www.conferenceboard.org
  9. 9. Cascading targets Goals at High Retention Executive Goals level % Managers Goals at Goals at Manager Executive and level Mger levels Low Low % High Executives9 © 2011 The Conference Board, Inc. | www.conferenceboard.org 9
  10. 10. Representation: understanding dynamics Company Marketplace Promotion _ Turnover (out) + Promotion Recruitment (in) Scenario A Scenario B _ _ 3 2 0 4 +4 -1 + 5 4 + 3 010 © 2011 The Conference Board, Inc. | www.conferenceboard.org 10
  11. 11. Inclusion: Measuring culture change Rio Tinto Concept 7 Inclusion Items Statistical Analysis • We are measuring #24. Management at Rio Tinto Inclusion Index has a Inclusion through a supports diversity and inclusion in strong reliability subset of metrics from the workplace. Cronbach alpha the Global Employee 0.87 Engagement Survey to track perceptions of #72. Most of the time it is safe to culture change. speak up in Rio Tinto. The Inclusion Index has a strong • Data from 2011 will correlation with engagement constitute the initial … and 5 other items Correlation 0.97 baseline.11 © 2011 The Conference Board, Inc. | www.conferenceboard.org
  12. 12. Flexibility: showing the business value 40% employees Engagement not satisfied with + 29% existing opportunities for those Scorecard - Culture - employees who have the flexibility Retention Women in grades they need M01-M04 less Merck – 3 points satisfied group Engagement Index Managers report Expected HH – 4 points flexibility is positive Turnover on customer x2 HR – 5 points service (59%) for those + employees who do Managers report not have the flexibility is positive flexibility they to be competitive need (75%)12 © 2011 The Conference Board, Inc. | www.conferenceboard.org 12

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