Diversity Councils. Barbara Frankel Senior Vice President, Executive Editor October 26, 2010
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1 Diversity Councils Barbara Frankel Senior Vice President, Executive Editor October 26,
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 3 The DiversityInc Top years assessing corporate America Methodology is ethical, unbiased, transparent CEO Commitment, Human Capital, Corporate and Organizational Communications, Supplier Diversity Organizations analyzed within context of industry Must have consistent strength across all four areas New surveys issued in November, due Feb. 1, 2011 Results announced at DiversityInc dinner, March 2, 2011 in D.C. 240% increase in number of companies participating DiversityInc. Reproduction Prohibited.
4 4 The 2010 DiversityInc Top 50 Companies for Diversity 1. Sodexo 2. Johnson & Johnson 3. AT&T 4. Kaiser Permanente 5. Ernst & Young 6. PricewaterhouseCoopers 7. Marriott International 8. IBM Corp. 9. Bank of America 10. Abbott 11. Verizon Communications 12. American Express Co. 13. Merck & Co. 14. Colgate-Palmolive 15. KPMG 16. Novartis Pharmaceuticals Corp. 17. The Coca-Cola Co. 18. Procter & Gamble 19. Starwood Hotels & Resorts Worldwide 20. Health Care Service Corp. 21. Cox Communications 22. Accenture 23. Time Warner Cable 46. JCPenney 24. MGM MIRAGE 47. Northrop Grumman 25. Deloitte Corp. 26. Cummins 48. Xerox Corp. 27. HSBC - North America 49. Automatic Data 28. Monsanto Co. Processing 29. General Mills 50. WellPoint 30. Aetna 31. Capital One 32. Prudential Financial 33. The Walt Disney Co. 34. JPMorgan Chase 35. Kraft Foods 36. Toyota Motor North America 37. Cisco Systems 38. Blue Cross and Blue Shield of Florida 39. Time Warner 40. Target Corp. 41. SC Johnson 42. MetLife 43. Wells Fargo & Co. 44. Ford Motor Co. 45. Comerica DiversityInc. Reproduction Prohibited.
5 Diversity Councils 5 Diversity Councils have gained traction over the past decade, especially in the last 5 years 10 years ago, only 8% of DiversityInc Top 50 companies had internal councils 5 years ago, 42% had internal councils Today, 100% have councils DiversityInc. Reproduction Prohibited.
6 What Is an Internal Council? 6 Primarily, councils have been used to set diversity strategy Increasingly, they are used to set goals and metrics and hold leaders accountable for meeting those goals DiversityInc. Reproduction Prohibited.
7 External Councils 7 Advisory, like a board of directors Added perspectives Comprised of leaders outside company; can include academics, military, retirees and current corporate executives Have external diversity council 20% 28% 5 years ago Today % of DiversityInc Top 50 Companies DiversityInc. Reproduction Prohibited.
8 Structure of Internal Councils 8 Chair of the Council CEO Standing Members of the Committee Chief Information Officer Chief Marketing Officer Chief Operating Officer Chief Financial Officer Standing Members of the Committee SVP of Human Resources Chief Diversity Officer Senior Exec. Line Mgr. Senior Exec. Line Mgr. Rotational Spots on the Committee Head of ERG Head of ERG High Potential Middle Mgr. DiversityInc. Reproduction Prohibited.
9 CEO Participation 9 5 years ago Today 72% 42% 42% 32% CEO chairs council CEO appoints members % of DiversityInc Top 50 Companies DiversityInc. Reproduction Prohibited.
10 Frequency of Meeting 10 Meeting frequently ensures council metrics and goals are being met/addressed as they come up Some companies tack diversity-council meetings onto existing executivecommittee meetings; others hold separate full-day meetings 5 years ago Today 34% 66% 26% meet monthly 8% meet less than quarterly Virtual meetings increasingly popular Council meets quarterly % of DiversityInc Top 50 Companies DiversityInc. Reproduction Prohibited.
11 Accountability 11 Councils increasingly are holding executive members responsible for diversity goals Companywide Business units Personal goals Shows personal commitment to diversity as a business driver % of bonus tied to diversity 5.6% 9.8% 5 years ago Today % of DiversityInc Top 50 Companies DiversityInc. Reproduction Prohibited.
12 Council Agendas 12 Typically one-day meeting Benchmarking Review of goals/demographics recruitment, retention, promotions, external recognition, suppliers Internal structure issues ERGs, mentoring, training Review of short-and longterm strategy, goals DiversityInc. Reproduction Prohibited.
13 Diversity & Inclusion and EEO D&I Leadership Council Briefing DiversityInc Webinar October 26, 2010 Sylvester Mendoza Corporate Director, Diversity & Inclusion and EEO Mark pages according to the proprietary level of information as described in Company Procedure J103 (or remove)
14 Northrop Grumman Today $33.8 billion sales in 2009 $69 billion total backlog 120,000 people, 50 states, 25 countries Leading capabilities in: Cybersecurity Systems integration C 4 ISR and battle management Information technology and networks Homeland security Defense electronics Naval shipbuilding Space and missile defense 14 Performance Culture 14 HEADER / FOOTER INFORMATION (SUCH AS NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I)
15 Northrop Grumman Diversity & Inclusion Our Roadmap Sustainability Accountability/ Integration Strategy & Infrastructure Creating Awareness and Building Foundation Focus on Values, Ethics and EEO/AAP >
16 Key Stakeholder Roles & Responsibilities Board of Directors and Shareholders Review strategy and direction Reinforce D&I culture change CPC Leadership responsibility for implementation Building accountability for the execution of D&I plans HR & A Thought leadership Strategic link to the businesses Diversity & Inclusion Leadership Council Lead advocate D&I Approve the D&I strategy Approve companywide ERGs Establish, review and assess goals and objectives Corporate Office Diversity &Inclusion and EEO Implement strategies of the DILC Partner with Diversity & EEO Committee Innovate and implement better practices Manage companywide ERGs Sector Diversity & Inclusion Councils Supported by local Diversity & EEO Office Employee Resource Groups Advocate sector D&I strategy Exercise local relevance Help advance D&I Vision Provide counsel to DILC Drive intercultural communications Establish, review and amend sector goals and objectives Manage sector ERGs Help support recruiting strategies Be ambassadors for NGC at various venues 16
17 D&I Leadership Council Infrastructure CEO & President and Sector President Co-Chairs Corporate Office Diversity & Inclusion and EEO NGC Diversity & Inclusion Leadership Council HR&A Organization Sector Diversity & Inclusion And EEO Office Diversity & Inclusion Action Plans Sector Diversity & Inclusion Councils Corp AS ES IS SB TS 17
18 D&I Leadership Council Purpose Co-Sponsors Chief Executive Officer & President and Sector President Develop and evolve the diversity & inclusion strategy across the corporation and produce plans to achieve objectives and initiatives with accountability measures Lead transformational change management for diversity & inclusion as a core management practice Extract and leverage the value of diversity & inclusion to achieve business growth through the diversity of its people and organizations Approve annually the diversity & inclusion strategy and implementation plans Review performance against goals, sector plans, objectives, and results Report annually the state of the diversity & inclusion to stakeholders 18
19 D&I Leadership Council Membership Co-Chairs CEO & President and Sector President Corporate Office Corporate Vice President and Chief Human Resources and Administrative Officer Corporate Vice President of Corporate Responsibility Designated representatives from: Communications Business Management Law Department Government Relations Sector Line/Staff Executives Membership The CEO & President will appoint sector and staff executive members to serve a two year term. Co-Chair will be rotated among the sector presidents 19 Meetings Agenda Minutes Four times a year or as required. Guests may be invited to attend portions of meetings to make presentations or participate in discussions in their areas of expertise and responsibility, e.g., best practice company representatives, executive sponsors of ERGs, etc. Developed by the Co-Chairs and supported by VP, Corporate Responsibility Members submit proposed items at least one month before each meeting Approved by the Co-Chairs and supported by Corporate Director of Diversity & Inclusion and EEO
20 Diversity & Inclusion Leadership Council Member Characteristics & Attributes Seen as a champion of diversity & inclusion at the sector Able to challenge and help advance diversity & inclusion Are well respected Are open to a diversity of experiences and opinions Are on a path of personal growth in the area of cultural competence Are coalition builders Model cultural competence Are comfortable communicating about diversity issues Represent the voices in the organization 20
21 Committee Structure Committees will be formed around key strategic focus areas: Diversity-to improve the representation of diverse talent at all levels of the organization by driving the talent acquisition and management practices to achieve results Inclusion/Engagement-to create an inclusive work environment that fosters creativity and innovation and promotes colleague engagement Work Life Integration-to facilitate employees pursuit of work-life success on-the-job programs that increase opportunities for flexible work schedules that better accommodate employees personal lives Committees chairs will be appointed by the Co-Chairs Committees will undertake studies to evaluate current status, conduct benchmarking, and make recommendations, as appropriate, for policy and procedural changes to the Diversity & Inclusion Leadership Council 21
22 D&I Leadership Council Key Goals Business Case Develop, evolve and socialize a compelling Northrop Grumman-specific D&I business case, including but not limited to representation goals Sponsorship Enable our top leaders, and especially the Diversity and Inclusion Leadership Council and other D&I executive sponsors, to effectively articulate and champion our D&I business imperative Representation Ensure that workforce representation at Northrop Grumman reflects the changing demographics of our national workforce at large Inclusive Leadership Adopt an inclusive leadership mindset and inclusive behaviors that engage all employees to contribute at higher levels, versus the status quo of relying on a few go-to employees Strategic and Tactical Plans Define concrete D&I goals and plans Accountability Implement metrics and other accountability mechanisms that support D&I progress. 22 Mark pages according to the proprietary level of information as described in Company Procedure J103 (or remove)
23 Mark pages according to the proprietary level of information as described in Company Procedure J103 (or remove)
24 Prudential DiversityInc Webinar Diversity Councils October 26, 2010 Emilio Egea VP HR and Chief Diversity Officer Prudential - Confidential
25 Prudential Background 50 million individual and institutional customers Offering a variety of products and services: - life insurance - investment management - annuities - retirement related services - mutual funds - real estate services $37 B revenues $690 B assets under management 40,000 employees (20,000 domestic) Became a public company in December of 2001 (listed on NYSE) 2 Prudential - Confidential
26 Business Case for Diversity 3 Key Drivers Marketplace Competitive Environment for Talent Organization Effectiveness 3 Prudential - Confidential
27 Diversity Background A new dialogue began with the Senior Leadership team who wanted to: Be proactive by personally determining the areas of diversity measurement Hold people accountable and incorporate Human Resources results (including diversity) into the Performance Contract (bonus plan) Be world class by identifying and aspiring to external benchmarks (i.e., DiversityIncTop 50 Companies for Diversity, etc.) 4 Prudential - Confidential
28 Diverse representation Understand and meet customer needs Business Excellence Company Goal: To achieve market leadership by creating a work culture 5 that capitalizes on the diversity of our employees and client base.
29 Impact Personal participation - Executive sponsors for Business Resource Groups (BRGs) - Forums Multicultural marketing Diversity practitioners - Professional development Mentoring Support of BRG conferences - Attendance - Letter to all managers of people Presentations/dialogue at meetings - Alternative work arrangements, etc. Employee Opinion Survey - Results improvements - Reduction in gaps (rank, race, gender) Prudential - Confidential 6
30 Send In Your Questions! 30 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.
31 Remaining 2010 Webinars 31 Nov. 16, 2010 Lessons Learned From the DiversityInc Top 50/Employee Engagement Wells Fargo, Kaiser Permanente Dec. 14, 2010 Supplier Diversity Walmart, HP DiversityInc. Reproduction Prohibited.
32 2011 Webinar Schedule 32 Talent Development Tuesday, Jan. 25 Mentoring Tuesday, Feb. 22 Work/Life Tuesday, March 22 Recruitment Tuesday, April 26 Mentoring Tuesday, May 17 DiversityInc Top 50 Best Practices Tuesday, June 21 Generations in the Workplace Tuesday, July 26 Global Diversity Tuesday, Aug. 23 Employee-Resource Groups Tuesday, Sept. 20 Diversity Councils Tuesday, Oct. 18 Lessons Learned From the DiversityInc Top 50 Tuesday, Nov. 15 Supplier Diversity Tuesday, Dec. 13 Benchmarking customers will receive customized monthly reports on these topics DiversityInc. Reproduction Prohibited.
33 Thank You for Attending the Webinar 33 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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