Taking Your Leaders From Buy-In to Bottom Line


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Are your senior leaders leading the charge to realizing a bottom-line payoff from diversity and inclusion? We are all aware of the need for top management “buy-in” for D&I. But turning head nods into consistent, visible and impactful actions by senior leaders is often a much greater challenge. This session will explore the missing links between verbal endorsement and active role modeling and ownership for D&I accountability. It will present ways to increase the likelihood that senior managers will make inclusive, culturally competent behaviors part of their leadership style and a “diversity lens” part of their business decision-making. We’ll suggest approaches to increase hands-on participation in strategy development, in-depth dialogue with diverse constituencies and expectation setting for their own subordinates. Potential measures of progress for this aspect of D&I change will also be discussed.

What Participants Will Learn:

What senior leader behaviors have the greatest impact on D&I progress.
How to more fully engage leaders in creating and implementing D&I strategy and in role modeling of inclusive behaviors.
What cultural competence is and why it’s important for leaders.
Approaches to measuring progress in increasing top management’s D&I leadership.

Taking Your Leaders From Buy-In to Bottom Line

  1. 1. You can listen to today’s webinar using your computer’s speakers or you may dial into the teleconference. If you would like to join the teleconference,please dial 1.650.479.3208 and enter access code: 926 080 488 #. You will be on hold until the seminar begins.
  2. 2. Speaker: Mary L. Martinéz Director, Diversity & Inclusion Practice APTMetrics, Inc.Moderator: Deanna Hartley Senior Editor Diversity Executive Magazine
  3. 3. • Q&A – Click on the Q&A icon on  your floating toolbar on the  top of your screen. – Type in your question in the  space at the bottom. – Click on “Send.”
  4. 4. Polling Polling question will  appear in the “Polling” panel.  Select your response  and click on “Submit.”
  5. 5. 1. Will I receive a copy of the slides after the webinar? YES 2. Will I receive a copy of the webinar recording? YES Please allow up to 2 business days to receive these materials.
  6. 6. Deanna HartleySenior EditorDiversity Executive Magazine
  7. 7. Mary L. MartinézDirector, Diversity & Inclusion PracticeAPTMetrics, Inc.
  8. 8. Taking Your Leaders  from “Buy‐In” to  “Bottom line” © 2013 APTMetrics, Inc.
  9. 9. Agenda for Today’s Session • Senior leader behaviors with greatest impact on D&I  • What cultural competence is and why it’s important for  leaders • A model for more fully engaging leaders in creating and  implementing D&I strategy • Approaches to measuring progress in increasing top  management’s D&I leadership9
  10. 10. About APTMetrics • Full‐service human resource process consulting  firm comprised of: • Ph.D. industrial/organizational psychologists Global  • Human resource professionals  Strategies for  • IT specialists Talent  • Diversity provider (certified by the Women’s  Management Business Enterprise National Council) • What sets our D&I approach apart: • Starts with the organization’s specific business  mission/strategy • Metrics driven • Integrated, legally sound and sustainable10
  11. 11. 11
  12. 12. “DiversityInc Top 50 data shows a direct  correlation between a CEO’s visible support of  diversity – and emphasis on accountability – and  results, measured in human‐capital  demographics and marketplace gains.” From “Diversity Is a Leadership Expectation: Case Studies of CEOs of Ameren, Rockwell Collins,” Diversity Inc. at http://diversityincbestpractices.com/ceo-commitment/2-case-studies-how-rockwell-collins-ameren-ceos-demonstrate-commitment-to- diversity-and-inclusion/12
  13. 13. D&I Objectives of Leaders in High‐Performing D&I  Companies Reflect Key Behaviors Improve global team effectiveness Increase supplier diversity Visible Assignments for W/M/NHQs Mentor W/M/NHQs Develop W/M/NHQs 0 20 40 60 80 100 High-performing D&I companies Other companies From Senior Leader Impact on Diversity: What Really Works? Industrial Relations Counselors, Inc., study conducted by ORC Worldwide, Global Equality, Diversity and Inclusion Practice, August 2008.13
  14. 14. Poll #1: What Could Leaders Do More Of? More of which one of these behaviors would have the greatest  impact on your organization’s D&I progress?  (Please select one answer.) a. Adding diversity to their own teams b. Personal involvement in deciding D&I strategy and metrics  c. Holding directs accountable for D&I actions d. Communicating personal insights about the value of D&I  e. Mentoring/sponsorship f. Aggressively championing D&I in talent reviews and succession planning14
  15. 15. Most Impactful Leader Behaviors The 2008 IRC study showed that senior leadership behaviors  with the greatest impact relate to: • Two‐way communication • Accountability • Recognition From Senior Leader Impact on Diversity: What Really Works? Industrial Relations Counselors, Inc., study conducted by ORC Worldwide, Global Equality, Diversity and Inclusion Practice, August 2008.15
  16. 16. Most Impactful Leader Behaviors Diversity Inc. research  indicates best practices  for Senior  leaders are: • Holding direct reports accountable • Being a role model of visible, personal support • Upholding values at all times • Chief diversity officer has frequent access [to leadership] • CEO leads executive diversity council • Succession planning and continuous support for diversity From “Diversity Is a Leadership Expectation: Case Studies of CEOs of Ameren, Rockwell Collins,” Diversity Inc. at http://diversityincbestpractices.com/ceo-commitment/2-case-studies-how-rockwell-collins-ameren-ceos-demonstrate-commitment-to- diversity-and-inclusion/16
  17. 17. Aspects of Direct Report Accountability Leader Holds Direct Reports 100% Accountable 75% 100% Directs Must have D&I Objectives 83% Personal Behavior Rated in 88% Performance Review 50% 0% 20% 40% 60% 80% 100% 120% High diversity performers Other companies From Senior Leader Impact on Diversity: What Really Works? Industrial Relations Counselors, Inc., study conducted by ORC Worldwide, Global Equality, Diversity and Inclusion Practice, August 2008.17
  18. 18. Poll #2: What do you evaluate? Which of the following are used as measures in holding leaders accountable?   (Please select all that apply) a. Increasing the diversity of the organization (measures related to increasing the %  of individuals from under‐represented groups) b. Success of diverse high‐potential talent (could be in terms of career  advancement, financial contribution, or other measure) c. Engagement survey results reflecting inclusion d. Personal behaviors that support a culture of inclusion e. Utilization of diverse suppliers f. Financial outcomes linked to D&I actions (e.g., revenues from targeted marketing  to a particular demographic having a unique diversity characteristic) g. Other18
  19. 19. The Necessary Foundation for All Leadership  Behaviors: Cultural Competence19
  20. 20. Poll #3:  Cultural Competence Does your organization currently evaluate cultural  competence in the assessment of leaders? a. Yes b. No  c. Considering it20
  21. 21. Example of Leadership Assessment that Includes  Cultural Competency Cultural Competence21
  22. 22. Strategy and Metrics ‐‐ The Perfect Vehicle for  Equipping and Engaging Leaders • Takes leaders from being actors in, to authors of, the D&I playbook • Enables honest dialogue on what aspects of D&I matter for the success  of the business • Avenue for  leaders to learn more about • The bigger (external) picture • The root causes of internal status quo/progress or lack of it • What the numbers mean • Their own biases and assumptions (developing cultural competence) • Opportunity to personally “connect the dots” from their own vision and  business goals to D&I • Chance to determine and own the expectations and metrics22
  23. 23. What’s Required • Clear roles for business leaders v. HR/D&I • Create the structure  • Identify champions in the business • Raw material for the business case • D&I status quo against the backdrop of the business and HR  strategies; gaps • Workforce • Workplace • Marketplace (customers/suppliers) • Communities • Specific plans, accountabilities, and milestones derived  directly from business strategy23
  24. 24. Most Effective Roles for Key D&I Stakeholders Business Unit Leadership  D&I  and Their Teams Center of Excellence (COE)  Chief Diversity Officer • Set strategy and goals • Provide expertise, direction,  guidance, coaching and  • Communicate importance  support to the business units of D&I for business  outcomes • Ensure partnerships between  • Own responsibility for   business and HR, ERGs,  implementation and  Procurement, Community  outcomes Relations, etc.24
  25. 25. Executive and BU‐Level Councils Make D&I Real for  Each Business Unit Business Head Chairperson D&I or HR Facilitator Exec Exec Team Exec Team Exec Team Exec Team Team Member Member Member Member Member D&I Influencer D&I Influencer D&I Influencer D&I Influencer A template that can be used for the Executive Council and then within each BU25
  26. 26. Why Direct, Ongoing Participation by Leadership in  Strategy and Metrics Works • Requires interaction with the data, issues and reality of  D&I in the organization and the marketplace • Fosters accountability being pushed down through the  organization • Sends a message that D&I is part of the business  landscape – increasing sustainability of impact • Enables senior leaders to speak more knowledgeably  and confidently about D&I • Ensures implementation resources26
  27. 27. Helps leaders achieve business goals not possible without the added-value of D&I27
  28. 28. The Essential Dialogue: What Are the Unique Links  Between the Business Bottom Line and D&I? A Metrics‐Driven Approach that Accelerates D&I by  Starting from the Business Strategy Talent and D&I Linkages Strategy and Talent and Business Business (Workforce, Actions to Business Strategies to Goals Workplace, Optimize D&I Metrics and Achieve the Marketplace) Contribution Accountability Goals28
  29. 29. Strategy Development Example:  Workforce & Workplace HR & D&I Gap D&I D&I Strategies Linkages Analysis Strategies Metrics • Hire  • Many of those  • Improve brand  • Perception of  Business additional IT  in target  • Don’t have  company brand  strength in  image with  Goal and Marketing  workforce are  targeted  by potential  staff with  Gen Y, from  recruiting or  hires retaining  workforce social media  diverse  • Employee  expertise backgrounds targeted  • Increase  workforce;  workplace  feedback on  • Have different  workplace  career goals/  need new  flexibility and  sources/  openness  flexibility/other  Leverage expectations  aspects of  approaches to  social • Implement new  culture recruitment  career paths for  media to and retention some functions • Hire and  increase retention stats on-line Sales to younger buyers29
  30. 30. Strategy Development Example:  Marketplace & Community Business Goal Leverage Social Business Media to Strategies D&I Linkages Gap Analysis D&I Strategies D&I Metrics Increase On-line • Update online  • Target market  • Do not  • Conduct  Sales to brand image to  has significant  currently have  further  • Market share  younger appeal to 25‐35  racial/ethnic  adequate  research,  increases buyers market and economic  market  starting with  • Response rates  diversity – will  segment data tapping Young  to social media  need to assess  • Few linkages  Professionals  marketing impact on  to on‐line  ERG, who can  communities  • # of ideas  product  also provide  implemented  attracting  branding and  targeted  links to virtual  from ERGs marketing   segments (and actual  vehicles  communities) 30
  31. 31. Examples of Business‐Led D&I Initiatives • Business case workshop  for medical devices company that  produced action list for business and functional leaders • B‐B organization in business services desiring to expand  market share in mid‐sized companies built diversity‐ targeted marketing into its strategy with significant results31
  32. 32. Accountability Case Example 1: Financial  Services • Premises: • Increasing sales of financial services offerings is the desired  outcome – the numbers are what matter in our environment • We hire the best of the best, but they are not all producing at the  same level  • We are wasting money, time and talent by not managing all  employees to maximize productivity and success (theirs and the  organization’s) • We evaluate and reward managers based on financial outcomes  • Solution:  • Create metrics that drive the desired underlying managerial  behaviors  related to productivity from diverse teams, AND  • Tie results directly to financial rewards – plus or minus impact32
  33. 33. Accountability Case Example #1 (continued) • Goals and means for achievement: Establish clear direction Promote metrics based Enhance accountability for managers results Ensure managers focused • Develop specific measures • Utilize a carrot and stick on: based on historic methodology to encourage performance and desired desired results • Growing headcount outcomes • Reward those who reach • Driving revenue growth • Supply detailed reporting to significant, objective • Supporting trainee managers to enable measures of success development regular tracking and • Encouraging teaming identification of opportunities opportunities • Four key measures: • Changes to representation of women and minorities • Changes to team representation • Growth in $ results of diverse employees • Results of diverse employees versus results of unit overall33
  34. 34. Metrics Case Example 2: Sodexo34
  35. 35. Poll #4:  Linkage between D&I and rewards Does D&I performance by managers in your organization  currently have compensation‐based consequences? a. Yes b. No  c. Considering it35
  36. 36. Recognition Mechanisms Tied to Higher  Diversity Performance Linking >5% of bonus to diversity E-mails/publications to ees Diversity awards Recognition in mgt meetings 0 50 100 150 High-performing companies Other Companies From Senior Leader Impact on Diversity: What Really Works? Industrial Relations Counselors, Inc., study conducted by ORC Worldwide, Global Equality, Diversity and Inclusion Practice, August 2008.36
  37. 37. Let’s Encourage Leaders to: Stop Start Continue • Shifting responsibility for  • Digging deeper to  • Asking for evidence of  D&I over to HR understand the D&I  D&I contribution and  • Leading from a distance status quo progress • Failing to connect D&I to  • Being primary drivers in  • Affirming D&I as an  products, customers,  making the specific  organization value in  suppliers, innovation and  linkages between D&I  public statements and  process improvement and the business through participation in  • Delegating D&I to  • Looking for examples of  external initiatives that  subordinates without D&I’s contribution to the  focus on diversity and  holding them  business – and publicly  inclusion accountable recognizing those who  • Expanding their role as  • Focusing solely on  make it happen active agents of D&I  workforce demographics  • Holding directs  change as measure of success accountable for D&I  behaviors and results  that are tied to THEIR  business outcomes 37
  38. 38. Your Comments?  Questions?  Ideas?38
  39. 39. For more information, contact: Mary L. Martinéz Director, Diversity & Inclusion Practice APTMetrics, Inc. 4625 Highway A1A, Suite 3A Vero Beach, FL 32963 mmartinez@aptmetrics.com Office: 1-203-202-2400 Ext 1011 Mobile: 1-203-295-1581 www.APTMetrics.com Global Strategies for Talent Management.39
  40. 40. Mary L. MartinézDirector, Diversity & Inclusion PracticeAPTMetrics, Inc.
  41. 41. Join Our Next TM WebinarTalent Analytics: Building Actionable Business Intelligence Across the Employee Lifecycle Thursday, May 30, 2013TM Webinars start at 2 p.m. Eastern / 11 a.m. Pacific Register for upcoming TM Webinars at www.talentmgt.com/webinars Join the Talent Management magazine Network http://network.talentmgt.com/