DiversityInc Top 50 Best Practices Web Seminar. Barbara Frankel Senior Vice President, Executive Editor June 19, 2012
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1 DiversityInc Top 50 Best Practices Web Seminar Barbara Frankel Senior Vice President, Executive Editor June 19, 2012
2 Assistance 2 For conference-call assistance, press *0 on your touch-tone phone. For other assistance, contact Customer Service at Thank you! DiversityInc. Reproduction Prohibited.
3 DiversityInc Top 50 3 Based only on empirical data, constantly evolving Participants DiversityInc. Reproduction Prohibited.
4 Movement on the List 4 20 moved up in ranking 3 from the 25 Noteworthy jumped onto the list 2 returned to the list 1 that never ranked made the list 1 first-time participant made the list 24 moved down in ranking 5 fell of the list DiversityInc. Reproduction Prohibited.
5 Four Areas of Measurement 5 Accountability Personal Communications Visibility Diversity Councils CEO CEO Commitment Commitment Human Human Capital Capital 5 Management Levels Promotions Into Management Promotions in Management Mentoring Resource Groups Philanthropy Consistency Effectiveness Corp. Corp. && Org. Org. Comm. Supplier Diversity Women/Minority Businesses, Lesbian, Gay, Bisexual and Transgender, People with Disabilities, Veterans Spend RFPs Accountability In the 2011 scoring process, more emphasis was placed on consistency across all 4 areas In the 2012 scoring process, more emphasis was placed on diversity councils, mentoring and resource groups DiversityInc. Reproduction Prohibited.
6 2012 DiversityInc Top 50 Companies for Diversity 6 1. PricewaterhouseCoopers 2. Sodexo 3. Kaiser Permanente 4. AT&T 5. Procter & Gamble 6. Ernst & Young 7. Kraft Foods 8. Deloitte 9. Prudential Financial 10. Colgate-Palmolive 11. Johnson & Johnson 12. Accenture 13. Novartis Pharmaceuticals Corporation 14. American Express 15. MasterCard Worldwide 16. Merck & Co. 17. IBM 18. Cummins 19. Health Care Service Corporation 20. Abbott 21. Marriott International 22. KPMG 23. CSX 24. Aetna 25. Cox Communications 26. Dell 27. Automatic Data Processing 28. General Mills 29. Eli Lilly and Company 30. Target 31. Bank of America 32. Starwood Hotels & Resorts Worldwide 33. Wells Fargo 34. WellPoint 35. jcpenney 36. Booz Allen Hamilton 37. Allstate Insurance Company 38. Medtronic 39. Verizon Communications 40. Time Warner 41. Toyota Motor North America 42. Northrop Grumman 43. Rockwell Collins 44. Monsanto 45. Chrysler Group 46. The Coca-Cola Company 47. Capital One 48. Lockheed Martin 49. Kellogg Company 50. MetLife DiversityInc. Reproduction Prohibited.
7 Stages of Diversity Management 7 Danger of raising expectations with no corresponding gains in perceived opportunity High-level and high-potential regrettable loss Increasing difficulty in recruiting Workforce Focused Firm diversity plan with actions, objectives and milestones Gains in workforce diversity and engagement Structured ERGs and mentoring Denial of opportunity to Stage 1 competitors Marketplace Focused Stage 1 Stage 2 Stage 3 Stage 4 Metrics driven accountability. Internal diversity/engageme nt metrics well above average, cutting-edge diversity management Outpacing competitors in raising cultural competency in marketing and sales efforts Innovation Focused Leveraging diversity management to create/sponsor/nu rture innovation Integrated cultural competency from recruiting to customer service Thought leadership DiversityInc. Reproduction Prohibited.
8 What 13 Years of DiversityInc Top 50 Data Reveals About Managing Diversity 8 It starts from the top. Without CEO commitment, progress does not happen Purposeful management breaks through tribal barriers Diversity council Mentoring Resource groups Regular, persistent and consistent communication Transformation has societally responsible hallmarks Philanthropy Supplier diversity DiversityInc. Reproduction Prohibited.
9 Key Best Practices Of DiversityInc Top 50 9 Compensation tied to diversity management 12.2% of bonus, up from 11.5% a year ago Diversity councils 64% of councils have rotational positions, up from 60% a year ago Mentoring 40% of managers participate, up from 38.6% a year ago Resource groups 44% track promotion rates of members vs. non-members, up from 32% a year ago Minority-and-women-owned business enterprise spend Tier I MBE 5.1%, up from 4.9% a year ago Tier I WBE 3.9%, up from 3.6% a year ago DiversityInc. Reproduction Prohibited.
10 Executive Compensation Tied to Diversity 10 % of Executive Compensation Tied to Diversity CEO & Direct Reports One Level Below Companies that tie more than 10% of executive compensation to diversity have 85% more Blacks, Latinos and Asians in the CEO and direct reports level and 40% more in the level below than companies that tie less than 10% DiversityInc. Reproduction Prohibited.
11 What Does a Diversity Council Do? 11 Comprised of senior management (and other select members) chaired by the CEO Most DiversityInc Top 50 councils meet quarterly, some monthly Sets goals, holds people accountable, tracks programs Goals tied to compensation of senior executives on council Term limits Rotating spots for middle managers, including resource-group leaders DiversityInc. Reproduction Prohibited.
12 Structured Mentoring 12 Mentoring as a profit center If you re not tracking results, including engagement, why do it? Casual mentoring doesn t count We are predisposed to trust people who look like us mentoring must be disciplined Senior executives must be involved Cross-cultural/gender mentor/mentee pairs 6-month rotations Training, surveys, tracking results Assessing leaders by how well their mentees do over time DiversityInc. Reproduction Prohibited.
13 Connecting Mentoring to Human-Capital Results 13 % Managers in Mentoring CEO & Direct Reports One Level Below Two Levels Below DiversityInc. Reproduction Prohibited.
14 Resource Groups 14 Start with obvious underrepresented groups Why Are All the Black Kids Sitting Together in the Cafeteria? Dr. Beverly Tatum Management Charter membership open to anyone Executive sponsor; business plan approved by senior management Leadership benefits should include mention in annual review Expansion Social media New parents Eldercare Goal: Increase engagement, drive business results DiversityInc. Reproduction Prohibited.
15 Direct Correlation Between Resource-Group Participation and Human-Capital Results 15 % Employees in ERGs Promotions INTO Management Companies with resourcegroup participation rates above 30% promoted 45%, 57%, 47% and 22% more Blacks, Latinos, Asians and women into their first management jobs than companies with resourcegroup participation rates of 20% or lower DiversityInc. Reproduction Prohibited.
16 Business Case for Supplier Diversity 16 Align with corporate objectives Policies and procedures consistent with corporate mission statement Supplier diversity is not philanthropy; more than compliance Position relative to company s broader diversity strategy Leverage internal D&I success stories/wins in highlighting supplier diversity programs USP Meet regularly with D&I staff, create champions Articulate economic value/link to bottom line Utilize metrics to measure and quantify impact Work with sales team to generate/track leads Source: Best Practices provided by HP DiversityInc. Reproduction Prohibited.
17 Institutionalizing Diversity: Recommendations 17 Clear statement of values, mission and accountability Goals set Adequate to be competitive Equity in talent development Success in diversity management has measurable bottom line results Results must be expressed in metrics-driven terms Consistent, persistent and unflinching communications DiversityInc. Reproduction Prohibited.
18 Diversity and Leadership DiversityInc Webinar June 19, 2012 Joanne McDonough Office of Diversity
19 Agenda PwC s diversity leadership structure PwC s strategic approach to diversity Cultural dexterity Early success strategies Development and advancement Best practices Sponsorship GLBT new benefit 19
20 PwC s organizational structure Matrix Our firm is organized along the following lines. 3 lines of service 18 sectors 20 geographic markets 73 offices 2,500 partners 35,000 professionals 20
21 Diversity leadership structure Senior Partner Core Leadership Team Chief Diversity Officer National Diversity Team 10 Local Diversity Managers Line of Service Partners Practice Partner Champions 3 Line of Service Directors 21
22 Our diversity and inclusion strategy Cultural dexterity Educating all our people about inclusion and the dimensions of diversity Early success strategies Expanding our pipeline for diverse employees and helping them get a strong start Development and advancement Increasing the number of diverse professionals in the pipeline, the partnership, and key client and leadership roles 22
23 Enhance cultural dexterity: definition Cultural dexterity is an important leadership skill that helps us work together and interact with our clients. It s the ability to understand, manage, coach, work and communicate effectively with people from different backgrounds and across multiple dimensions of diversity. It helps us deliver the PwC Experience to our clients and our people. Leveraging the power of our differences 23
24 Enhance cultural dexterity: Candid conversation series Insights Bringing together outside experts and thought leaders to discuss diversity in the workplace. Topics include: Being Out in the Workplace, Family Pride Credibility Gender and Negotiation Juggling Work and Motherhood White Men as Diversity Champions Women and Ambition Women of Color Women and Leadership 24
25 Enhance Cultural Dexterity Diversity Leadership Forum Partners and Clients Full day event for senior business leaders about diversity. Topics have included how to keep diversity on the agenda in a bad economy and how to manage flexibility in a hyper-connected world. Past speakers include thought leaders such as: Malcolm Gladwell Valerie Jarrett Anne Mulcahy Daniel Pink Condoleezza Rice Fareed Zakaria 25
26 Integrating diversity: Early success strategies Education We embedded diversity in our milestone courses, which reach everyone at the firm at different points along their career path (e.g. onboarding, new manager training, coaching clinics etc.) We also developed specific courses to target particular populations: Vanguard Accelerate Select Senior 26
27 Development and advancement Education We embedded diversity in our milestone courses, which reach everyone at the firm at different points along their career path (e.g. onboarding, new manager training, coaching clinics etc.) We also developed specific courses to target particular populations: Diamond Breakthrough leadership GLBT personal branding 27
28 Best practices Sponsorship GLBT Tax equalization 28
29 Increase sponsorship Mentorship vs. Sponsorship Partners required to identify 3 diverse professionals in their partner plans Annual performance review includes discussion of specific sponsorship activities Created videos and a sponsorship guide, by line of service, to demonstrate the behavior All 2,500 partners received this message from their business leader 29
30 GLBT new tax benefits As of January 2012: PwC provides tax equalization benefits to all staff with domestic partners covered under the firm's medical plans. Domestic partner benefits, unlike spousal benefits, are taxed at a federal, state, and local level. The firm is taking this step to level the cost for all our people. PwC is the first Big Four firm to extend this benefit to staff with same-sex or opposite-sex domestic partners. "In the past, my partner was on her employer's plan even though the benefits aren't quite as good because the taxes could cost an extra three or four thousand dollars per year. It's so complicated to manage separate plans. We have different networks, doctors, copays and deductibles. It was nice to click the 'family' button and feel like there was no difference between my family and anyone else's." 30
31 Dialogue and questions This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, [insert legal name of the PwC firm], its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it All rights reserved. In this document, PwC refers to PricewaterhouseCoopers LLP which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.
32 a culture of diversity leadership and accountability Debbie Storey Senior Vice President Talent Development & Chief Diversity Officer AT&T 32
33 AT&T Strengths CEO Commitment Supplier Diversity Employee Resource Groups 33
34 A Legacy of Diversity and Inclusion 1870: First female operators 1968: Launched Supplier Diversity 1987: First-ever LGBT ERG 90s: Introduced Benefits parity 34
35 It Starts at the Top A diverse workforce and inclusive culture are essential to AT&T. They allow us to attract and retain the best and the brightest to develop the most innovative products and solutions to meet our customers' needs. Randall Stephenson, AT&T Chairman & CEO 35
36 Oversight and Leadership Drive Accountability and Results Two Board Committees Chairman s Inclusion Council Compensation tied to results CDO Forum Business Unit Diversity Councils 36
37 Achieving Excellence in Supplier Diversity Diverse suppliers reflect the diversity of our customers, employees and the communities we serve! 37
38 Growth Achieved through Focused Planning $12B in diversity spend 23% of total 31% increase from 2010 Minorities $8.7B Women $3.2B Disabled Vets $176M 38
39 Targeted Programs Identify and Nurture Diverse Supplier Relationships Prime Supplier Business Development Building Executive Scholarships Operation Hand Salute Meet the Matchmaker 39
40 Leveraging Employee Resource Groups to Achieve Results Focus: Personal & Professional Development Community/Philanthropy Business Growth National Conference ERG Academy Develop people Connect communities Drive results ERG Value Proposition Through active participation in Employee Resource Groups, AT&T employees have the opportunity to realize their full potential as individuals and as professionals. Our ERGs are valued business partners that deliver programs to develop people, connect communities and drive results. 40
41 HACEMOS and OxyGEN ERGs Impact the Business HACEMOS High Technology Day 1,800 high-school students nationwide Webcasts to classrooms. Exposure to STEM opportunities OxyGEN Youngest ERG: Launches Aug Launched Economic Value Add 41
42 42
43 Send In Your Questions! 43 You may submit your questions via the web by using the text chat box on your screen. Simply type in your question and click send. DiversityInc. Reproduction Prohibited.
44 Remaining 2012 Web Seminars 44 Talent Development July 17, 2012 Mentoring Sept. 18, 2012 Diversity Councils Oct. 16, 2012 Succession Planning Nov. 20, 2012 DiversityInc. Reproduction Prohibited.
45 DiversityInc Events 45 DiversityInc s second Innovation Fest! Sept. 12 in New York City Managing the Relationship Between HR & Diversity Departments Sept. 13 in New York City 2012 DiversityInc Special Awards & Top Regional Companies for Diversity Oct in New York City For more information on all upcoming events, visit DiversityInc. Reproduction Prohibited.
46 Thank You for Attending the Web Seminar 46 You will receive a follow-up from us containing the link to download this presentation for future reference The presentation will be available approximately 72 hours after this event Questions? Call (973) DiversityInc. Reproduction Prohibited.
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