The Diversity Challenge Building an Inclusive Culture To Create Competitive Advantage. February 2015
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1 The Diversity Challenge Building an Inclusive Culture To Create Competitive Advantage February 2015
2 Agenda! The business case for diversity! Diversity & the link with Saudi Aramco strategy! Business & personal challenges Saudi Aramco: Company General Use
3 What is Diversity, Why does it matter? What is Diversity?! Beyond Equal Opportunities! Recognizes the value of differences based on culture, gender, age, physical abilities etc! Encompasses acceptance and respect Why does it matter?! Attract and retain top talent! Key element of organizational health! Foundation block of high performing organization At an Individual Level, Diversity is Fairness
4 The Business Case Better Business Performance! Over 10 year period DiversityInc s Top 50 Companies outperformed the NASDAQ by 28%! Companies with highest cultural diversity brought in nearly 15 x more sales revenue than those with the lowest levels! Gender diversity accounted for a difference of $599.1 million in average sales revenue Improve Organizational Health (turnover, absenteeism, low productivity)! 2 million people voluntary leave organizations due to perceived unfairness! $64 billion cost to US corporations each year! This figure does not include litigation and loss of reputation Institute for Entrepreneurial Thinking Ltd 2010
5 Diversity is a still a challenge globally Fortune 500 Board Diversity 2012! 16.6% Women! 13.3% Minority Men & Women! Under-25s twice as likely to have experienced age discrimination than other groups.! 35% of graduates in Asia believe they have the competence to be a manager within 18 months their managers think it will take 5 years.¹ UK Department for Work and Pensions Report 2012 CBRE Genesis Research Report Oct 2014
6 Diversity is Critical to Saudi Aramco s Strategy Markets & customer base! Understand and respond to international customers from diverse cultural backgrounds! Build a global reputation as an ethical and socially responsible company Innovation! Technology Leader! Adaptive organization Employer of Choice! Values and ethics! Level playing field to inspire high performance Saudi Aramco: Company General Use
7 How are we doing in 2014? Number of Employees Age Average Age: Women 7.1% 5.6% Culture Demographics! Fall in average age from 40 in 2009 to 35 in 2023! Women in the workforce increased 50% over the last 10 years! 10,261 Expats from 98 nationalities
8 Challenges at Organizational Level Challenges! Pride in legacy! Conformity drives efficiency! Easier Communication! Nationalization imperative! Challenges our sense of identity as a Company You have great penguin potential B J Gallagher Hateley: A Peacock in the Land of Penguins
9 Diversity is Challenging for Individuals Challenges! People like people like them! Conscious or unconscious bias based on limited experience or assumptions! Limiting self-beliefs
10 Creating an inclusive workplace culture! Saudi Aramco strategy redefines what the company will do! Redefine Corporate Brand to communicate globally to key stakeholders! HR is updating policies and programs to:! Strengthen focus on ethics and values! Enhance leadership capabilities! Increase female participation! Accelerate the development of young talent! Create a level playing field for performance management! Clearer communication of business priorities to motivate and align effort
11 What you can do to create an inclusive culture You can! Find out about others: find opportunities to work across functions and organizations! Be open minded! Help others: act as a coach or mentor! Welcome feedback and provide feedback! Challenge assumptions your own and those of others! Create diverse work teams to spark fresh thinking! Network and provide opportunities for others! Acknowledge opportunities for improvement and take action Challenge others assumptions about you
12 Some people who did just that Suhas Gopinarth Indian entrepreneur CEO of GlobalInc IT Multinational Age 17 Malala Yousafzai Wins Nobel Peace Prize 2014 Age 17 Saudi Aramco: Company General Use
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14 Saudi Aramco Assessment Center Differences Percentage Scoring in Top Category 90%# 80%# 70%# 60%# 50%# 40%# 30%# 20%# 10%# 0%# Plan#&#Organize#Work# Analyze#&#Solve#Problems# Direct#Staff#&#Delegate# Communicate#Openly#&#EffecJvely# Influence#Others# Coach#&#Develop#Talent# Lead#ProacJvely# Lead#&#Inspire# Foster#Teamwork# Drive#for#Results# Build#RelaJonships# Adapt#&#Learn# Group 1 Group 2
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