DiversityInc Top 50 / CEO Commitment Webinar. Barbara Frankel Senior Vice President, Executive Editor June 21, 2011

Transcription

1 DiversityInc Top 50 / CEO Commitment Webinar Barbara Frankel Senior Vice President, Executive Editor June 21,

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 Stages of Diversity Management 3 Workforce Focused Marketplace Focused Out-thinking Competition Stage 1 Stage 2 Stage 3 Stage 4 Danger of raising expectations with no corresponding gains in perceived opportunity High-level and high-potential regrettable loss Increasing difficulty in recruiting Firm diversity plan with actions, objectives and milestones Gains in workforce diversity Structured ERGs and mentoring Denial of opportunity to Stage 1 competitors Metrics driven accountability. Human-capital and supplier-diversity metrics well above average, cuttingedge diversity management Outpacing competitors Innovation-based gains in market growth Thought leadership DiversityInc. Reproduction Prohibited.

4 Participation in the DiversityInc Top 50 4 DiversityInc. Reproduction Prohibited.

5 Four Areas of Measurement 5 Accountability Personal Communications Visibility CEO Commitment Human Capital 5 Management Levels Promotions Into Management Promotions in Management Mentoring Employee-Resource Groups Philanthropy Consistency Effectiveness Corp. & Org. Comm. Supplier Diversity Women/Minority Businesses, LGBT, People with Disabilities, Veterans Spend RFPs Accountability DiversityInc. Reproduction Prohibited.

6 2011 DiversityInc Top 50 Companies for Diversity 6 1. Kaiser Permanente 2. Sodexo 3. PricewaterhouseCoopers 4. AT&T 5. Ernst & Young 6. Johnson & Johnson 7. IBM Corp. 8. Deloitte 9. Kraft Foods 10. Colgate-Palmolive Co. 11. Bank of America 12. The Coca-Cola Co. 13. American Express Co. 14. Marriott International 15. Merck & Co. 16. Prudential Financial 17. CSX Corp. 18. Cummins 19. Aetna 20. Cox Communications 21. Novartis Pharmaceuticals Corp. 22. Verizon Communications 23. Accenture 24. Abbott 25. Procter & Gamble 26. Health Care Service Corp. 27. General Mills 28. Time Warner 29. KPMG 30. Dell 31. MasterCard Worldwide 32. Booz Allen Hamilton 33. SC Johnson 34. Starwood Hotels & Resorts Worldwide 35. JCPenney 36. WellPoint 37. Northrop Grumman Corp. 38. Automatic Data Processing 39. Eli Lilly and Co. 40. Wells Fargo & Co. 41. Monsanto Co. 42. Rockwell Collins 43. Allstate Insurance Co. 44. Target Corp. 45. Time Warner Cable 46. Toyota Motor North America 47. Ford Motor Co. 48. AXA Equitable Life Insurance Co. 49. Whirlpool Corp. 50. Chrysler Group DiversityInc. Reproduction Prohibited.

7 RESULTS (human capital) DiversityInc Top 50 Distribution by Industry 7 DiversityInc Top 5 DiversityInc Top 50 BEST PRACTICES (leadership, communications, supplier diversity) DiversityInc. Reproduction Prohibited.

8 DiversityInc Top 50 Representation by Industry 8 DiversityInc. Reproduction Prohibited.

9 DiversityInc Top 50 Companies Have 9 Recruiting results that are significantly more diverse than available talent pool Almost twice as many Black, Latino and Asian managers than the available talent pool 23% women directors versus 14% in the Fortune 500 More than 11% supplier diversity (MBE + WBE spend), national average is estimated at 2% Philanthropic spend of 2.4% of gross revenue. Estimated Fortune 500 average is less than 1% DiversityInc. Reproduction Prohibited.

10 CEO Commitment Comes First DiversityInc Top DiversityInc Top 50 98% 98% 72% 90% 78% 100% 42% 42% 28% 16% CEO signs off on executive compensation tied to diversity CEO chairs diversity council CEO meets with ERGs Head of diversity reports to CEO CEO has diversity quote on homepage DiversityInc. Reproduction Prohibited.

11 Why CEO Commitment Is Important 11 Visibility is personal Do as I say AND do Unparalleled cultural impact Improves internal and external messaging Accountability produces results When CEO makes this a business priority, everyone else does When CEO links results to compensation, results are demonstrable DiversityInc. Reproduction Prohibited.

12 Engagement = Visibility 12 % of Employees in ERGs Promotions Into Management (Women) 0.89 to to 1 *Ratio of promotions into management to workforce representation DiversityInc. Reproduction Prohibited.

13 Accountability 13 % of Managers in Mentoring Promotions In Management (Black, Latino, Asian) 0.98 to to 1 *Ratio of promotions in management to management representation DiversityInc. Reproduction Prohibited.

14 Trends in DiversityInc Top 50 Companies 45% 40% 35% % 25% 20% 15% 10% 5% 0% % managers in mentoring % employees in ERGs % philanthropy to multicultural DiversityInc. Reproduction Prohibited.

15 Diversity Management 15 DiversityInc data shows the correlation between diversitymanagement initiatives and employee performance as measured by promotion and retention Employee-resource groups Diversity councils Mentoring DiversityInc data shows the correlation between accountability and results Bonuses for diversity metrics for CEO direct reports have almost doubled in the past five years to 11.4% Align external efforts with internal efforts Supplier Diversity spend/support impacts customer/employee relations Tracking and communication of multicultural philanthropy bolsters recruitment/retention/engagement/community relationships DiversityInc. Reproduction Prohibited.

16 Why Have Executive Diversity Council? 16 Companies with executive diversity councils have 2x the number of Blacks, Latinos and Asians in management 47% more women in senior management than companies without % of DiversityInc Top 50 companies with diversity councils increased from 42% in 2005 to 98% today DiversityInc. Reproduction Prohibited.

17 Higher Mentoring Participation 17 Companies that have more than 30% of their managers participating in mentoring programs have 45% more Blacks, Latinos and Asians in senior management (CEO and direct reports) than companies with participation rates between 15 and 29% 4x times as many Blacks, Latinos and Asians in senior management than companies with participation rates below 15% 58% more Blacks, Latinos and Asians in the level below CEO and direct reports than companies with participation rates between 15 and 29% 2x as many Blacks, Latinos and Asians in the level below CEO and direct reports than companies with participation rates below 15% 98% of DiversityInc Top 50 companies have measurable goals vs. 74% 5 years ago. Those goals usually include higher promotion/retention of mentored employees DiversityInc. Reproduction Prohibited.

18 Higher ERG Participation 18 Companies with ERGparticipation rates above 25% have 18, 26, 65 and 11% higher promotions of Blacks, Latinos, Asians and women, respectively, than companies with ERG-participation rates below 15% These companies use ERGs to identify future leaders, give them leadership training and mentoring meet with senior executives to openly discuss gaps between the demographics of the workforce and the new managers 98% of DiversityInc Top 50 companies use ERGs to set up both informal and formal mentoring networks/events vs. 84% 5 years ago Interviews with more than 25 companies with ERG-participation rates above 25 percent DiversityInc. Reproduction Prohibited.

19 DiversityInc 2011 Event 19 CEOs discuss How they use diversity in the workplace to drive marketplace goals What they need and want in a chief diversity officer Other topics include Global messaging, getting through to middle-managers, quality vs. diversity vs. quantity 6 CEOs confirmed DiversityInc special awards dinner, speaker John Amaechi For tickets click here DiversityInc. Reproduction Prohibited.

20 Applying to the 2012 DiversityInc Top Surveys distributed in 4Q 2011 Deadline March 1 st Questions? Please top50@diversityinc.com Results will be announced at the April event in NY For more information, click here DiversityInc. Reproduction Prohibited.

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22 Sodexo s global footprint Worldwide Leader in Food and Facilities Management Services & Service Vouchers and Cards North America $7.7 ( 5.7) Revenue 120,000 Employees Corporate Services Defense Education Health Care Leisure Remote Sites Seniors Latin America Health Care Remote Sites Service Vouchers and Cards 33,900 sites in 80 countries Total Revenue in Billions $19 ( 14.7) 380,000 Employees Worldwide UK / Ireland $1.9 ( 1.4) Revenue 42,972 Employees Corporate Services Corrections Education Health Care Leisure Remote Sites Service Vouchers and Cards Africa, Asia, Pacific, Latin America $2.5 ( 1.9) 89,461 Employees Continental Europe $6.0 ( 4.6) Revenue 90,705 Employees Corporate Services Corrections Defense Education Health Care Leisure Remote Sites Seniors Service Vouchers and Cards Africa Asian Pacific Corporate Services Defense Education Health Care Leisure Remote Sites Service Vouchers and Cards page 22

23 North America Leading provider of Comprehensive Service Solutions in North America Over 120,000 US employees; HQ in Gaithersburg, MD We offer innovative comprehensive service solutions in Food Service Grounds-keeping Asset & Materials Mgmt Motivational Solutions Corporations Long Term Care Schools Military Government Agencies Housekeeping Plant Ops & Maintenance Laundry Services We serve over 6,000 diverse clients in North America Health Care Retirement Centers College Campuses Remote Sites

24 D&I driving the growth of our business and people Vision Statement Diversity and inclusion is an inherent part of our culture and drives Sodexo s growth. With diversity and inclusion as a competitive advantage, Sodexo is an employer and business partner of choice, enriching the quality of daily life for our employees, customers, clients, communities and shareholders globally.

25 Sodexo s diversity journey continues

26 Ten Key Elements for systemic culture change

27 Commitment from the top CEO Increasing diversity & inclusion is one of our 6 strategic imperatives The CDO reports to the CEO CEO chairs the Diversity Leadership Council, personally reviews diversity results and holds the ET accountable Launch of the external Diversity and Inclusion Advisory Board Ongoing diversity education for the Executive Team Each Market segment has a Diversity VP and the corporate diversity team supports the market segments Executive Team involvement as Mentors, Network group sponsors, and community engagement

28 Business Case Diversity and inclusion is key to our growth strategy and success: BUSINESS Marketplace differentiator Important to our clients Changing customer base/increasing purchasing power TALENT Rigorous diversity branding & recruitment Targeted development programs to attract & retain top-decile talent Cross-cultural competencies to manage and work with multicultural teams Innovative solutions for clients and customers

29 Sodexo DiversityInc Rankings 2011 Number 2 Top 50 Companies for Diversity Number 1 Top 50 Companies for Diversity Number 6 Top 50 Companies for Diversity Number 12 Top 50 Companies for Diversity Number 13 Top 50 Companies for Diversity Number 14 Top 50 Companies for Diversity DiversityInc survey participants over the years Each year the competition to be at the top continues to grow

30 Sodexo: Keys to success CEO and senior leadership commitment CEO and executive commitment drive diversity through each of our Business Units Executives are required to role model diversity behavior through direct involvement each year Diversity Leadership Council provides oversight of diversity strategy and progress Consistency does not mean complacency Each year Sodexo strives to raise the bar and set the standard for diversity Employee Network Groups and mentoring continue to show growth with survey results and ROI Success in key areas has not meant the work is complete Continuous evaluation of our demographics, programs and initiatives Ongoing benchmarking with others to incorporate best practices Linkage with Sodexo s Business Case Diversity is woven throughout Sodexo s culture and strategies Diversity has been leveraged for the success of our business through retention of clients and access to C-Suite Using the DiversityInc ranking to serve as a strategic asset for securing new business. Measurement and Accountability Diversity Scorecard provided monthly to leadership, gives status of progress and next steps Promotion ratios for women and minorities have consistently increased Management is held accountable to scorecard results through incentives Diversity programs and initiatives are measured for success and Return on Investment Partnership with HR programs and metrics to help ensure the success for our employees page 30

31 Diversity learning strategy 2008 Sodexo. All rights reserved. This information is Confidential and Proprietary to Sodexo. page 31

32 Customized Learning Labs 2008 Sodexo. All rights reserved. This information is Confidential and Proprietary to Sodexo.

33 Building a Culture of Mentoring 2008 Sodexo. All rights reserved. This information is Confidential and Proprietary to Sodexo.

34 Cross Market Diversity Council Focused on operational strategy and localized implementation Four Committees: Covering six regions: COMMUNICATIONS HUMAN CAPITAL Mid Atlantic South Midwest West BUSINESS PARTNER COMPETENCY Central Northeast

35 Employee Network Groups Launch Road Show Social Media 101 Generations Web Based Training Virtual Annual Meeting External Relations with PFLAG and GLESEN National PRIDE parades WiNG Signature Program Community Outreach Race for the Cure Women s Mentoring Circles AALF Signature Program AALF Scholarship Black Executive Exchange Program (BEEP) Serving our Community Serving our Business Se de Saber Program Habitat for Humanity Partnership Hispanic Scholarship Toastmasters Leadership Webinar Series Frances Nam Scholarship Serving Our Membership Launched: 11/11/09 Membership Drive and Chapter Launch Disabilities Online Awareness Training Regional Recruitment Partnership with National Organization for Disabilities 2008 Sodexo. All rights reserved. This information is Confidential and Proprietary to Sodexo.

36 36 Measurement and analytics are key to navigating our diversity journey however, numbers alone will not dictate the path we travel.

37 Diversity Scorecard Accountability & Rewards Executive Team 25% 25% of Executive Team Bonus connected to performance on Diversity Scorecard Diversity Scorecard Incentive Sodexo s Commitment: Pay out regardless of financial performance of Company Senior and Mid-Level Managers 10-15% 10-15% of Management Bonus connected to performance on Diversity Scorecard page 37

38 The journey to inclusion continues... The Road Ahead 38 Building the pipeline Embedding deeper in the organization Leveraging diversity in business growth Front Line development and engagement Measuring ROI Global Diversity

39 DIVERSITY ACHIEVING OUR MISSION AND GROWING THE BUSINESS THROUGH THE NATIONAL DIVERSITY AGENDA PRESENTERS: Martin Portillo, MD, FACP :: Physician Director, Multicultural Services June 21, 2011

40 A Rich Tradition of Diversity Diversity efforts during the pre-civil rights era: Hiring women and racially/ethnically diverse physicians Providing medical care in racially integrated facilities These acts set industry precedents in equal employment and affirmative action

41 About Kaiser Permanente Nation s largest nonprofit health plan Integrated health care delivery 8.7 million members 15,000 physicians WA 164,000 employees OR Serving 9 states and DC 35 hospitals and medical centers CA CO OH VA MD DC 450+ medical offices GA $42.1 billion annual revenues (2009) HI

42 Market Leadership Market Leadership Value Culturally Competent Care Understanding Differences MARKETPLACE NATIONAL DIVERSITY AGENDA CARE DELIVERY Affirmative Action Time

43 Health Initiatives; Best Care to Everyone Set Quality Standards Influence Public Policy Ensure Safety, Quality, and Equity Health Disparities Elimination and Health Equity Improvement Culturally Competent Care Products and Resources Language Concordance: Research and Development Workforce and Community Capacity Building and Partnerships Quality Translations and Technological Innovations Example Initiatives and Programs Member Demographic Data Collection Unconscious Bias LGBT Health Initiative Institute for Culturally Competent Care Centers of Excellence in Culturally Competent Care National Linguistic & Cultural Programs Clinician Cultural and Linguistic Assessment Qualified Bilingual Staff Model and Program Health Care Interpreter Certificate Training Program Translations Infrastructure quality, consistency, affordability

44 Cultural & Linguistically Appropriate Services (CLAS) 14 national recommended standards Inform, guide and facilitate Three themes: Culturally competent care Language access Organization supports cultural competence Mandates, guidelines and recommendations

45 Centers of Excellence in Culturally Competent Care Community Individual and Family Health Systems Commitment to equitable health outcomes through the application of the principles and practice of cultural competence in the health care delivery system. Contribute new knowledge through population-based research that provides evidence about how culture, race and ethnicity impact health outcomes in the clinical setting. Disseminate, inside and outside of KP, advances in clinical practice, program expertise and innovation that offer contributions to the reduction of health disparities.

46 Value Compass and Diversity Strategy CLINICAL Diverse Patients COMMUNITY Diverse Communities WORKFORCE Diverse Physicians & Staff

47 Samples of Culturally Competent Care Resources Provider Handbook Series Language & Culture Learning Series Diversity and Health Film Series

48 Senior Leadership Accountability Diversity Executive Agenda Cascaded down from senior leadership level to supervisors and incorporated into performance reviews: Supplier Diversity Executive Mentoring Program Executive Workforce Diversity Member Demographic Data Collection Labor-Management Partnership unit-based teams CEO Communications weekly celebration letters often reinforcing the organization s commitment to diversity Annual Reaffirmation of Equal Opportunity, Affirmative Action and Diversity Policy

49 Diversity Leadership Development Program Programwide LDDP Gender Demographics LDDP Race/Ethnicity Demographics 2% 2% 32% Male Female 33% 45% African-American Latino/Hispanic Asian Native American 68% Caucasian/European 18% Systematic process to identify and develop diverse candidates for future leadership positions Increasing the percentage of diverse candidates in management and leadership roles

50 Increased Representation of Board Diversity Women Board Directors Race/Ethnicity Diverse Women Board Directors 40% 35% 36% 40% 35% 30% 25% 20% 21% 30% 25% 20% 24% 15% 15% 10% 5% 10% 5% 7% 0% %

51 Increased Representation of Executive Physician Diversity Diverse Women Executive Physicians Diverse Men Executive Physicians 16% 14% 12% 11.8% 16% 14% 12% 11.3% 13.6% 10% 10% 8% 8% 6% 4% 3.7% 6% 4% 2% 2% 0% %

52 Send In Your Questions! 52 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.

53 Remaining 2011 Webinar Schedule 53 Diversity Councils July 26 Diversity Metrics/Accountability Sept. 20 Mentoring Oct. 18 Talent Development Nov. 15 DiversityInc. Reproduction Prohibited.

54 Thank You for Attending the Webinar 54 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.