NGD Inclusion and Diversity Initiative Benchmarking A Monar Consulting Supplement to the NGD Inclusion and Diversity Initiative All people Learning from one another Working together Building a great organization
Executive Summary Inclusion and diversity is no longer a business fad used to satisfy government quotas. Changing workforce demographics demand organizations to consider I&D if they wish to stay competitive. Natural Gas Distribution (NGD) has several goals for its I&D initiative in its quest to become the premier energy company in the United States; these range from internal to external employee engagement to better customer relations. The comparison of the goals, actions, and outcomes of similar companies provide for benchmarking, while qualitative and quantitative means for measurement are also explored. NGD has currently implemented the first step toward the initiative with their primary inclusion and diversity survey, and moving forward, the diversity council as well as the employees must be sure to perpetuate this momentum. To be successful, NGD s I&D initiatives must stick within all aspects of the organization, and progress can be charted by a number of different survey tools and data collection methods. Getting the initiative to stick will require employees to ensure that its principles are embedded within their organization. They must provide a team of advocates and be consistent in communicating its goals between all levels, from executives to front line employees. 2 lorem ipsum :: [Date]
Introduction The corporate landscape is not a fixed environment. It is constantly evolving; it is very much a living entity. With this evolution comes the need for inclusion of different races, ages, and genders to name a few in the employee work force. Changing demographics influence both employment and strategic planning, and with projections indicating up to 85% of incoming employees being minorities, immigrants, or women, it becomes increasingly important to make the workplace an environment wherein everyone feels included (Barak, 2002). By 2020 it is predicted that 47% of the workforce will be comprised of women, 51% of employees will be between 35-54, and more than 30% of the workers will be of an ethnic or racial minority (Barak, 2002). An inclusive organizational culture affords a greater range of possible avenues to success. Companies are awarded with increased contributions from a more expansive array of skills, perspectives, and styles. Inclusion and diversity is essential in retaining a strong workplace. Maintaining a diverse and inclusive workplace involves fostering employees sense of value, fair treatment, and equality with respect to advancement opportunities. There are several advantages to the implementation of I&D into a company s philosophy: Employee satisfaction and well-being. Perceived levels of inclusion lead to higher levels of satisfaction and welfare. Employees are also encouraged to bring more of their true selves to work. Increased competitive edge. I&D helps ensure that NGD possesses the range of skills, perspectives, and cultural awareness required for overall success. A constant supply of new viewpoints is crucial for remaining competitive in today s market. Increased organizational effectiveness. With I&D, all members of the organization are empowered to do their best work. This means that inclusion increases the amount of human capital available to an organization. 3 lorem ipsum :: [Date]
The NGD Initiative Why is NGD focusing on inclusion and diversity? All people Learning from one another Working together Building a great organization NGD recognizes the compelling business case for I&D. Their inclusion and diversity approach focuses on the four P s: people, profit, performance, and perception. Through this strategy, NGD aims to create a sustainable environment where differences are valued, respected, embraced, and sought out as part of the social fabric of their company. A high performance culture relies on the inclusion and consideration of diverse viewpoints, skill sets, experiences, and perspectives. By promoting greater understanding and appreciation of the benefits of inclusion and diversity, NGD will be able to build on their efforts to establish themselves as the premier energy company. THE NGD APPROACH is manifold, and includes: Communicating more effectively and diversely with customers. Promoting a better understanding of customer cultures. Using a top-down approach to better understand the members of the corporation. Engagement of contractors and labor unions as well as improvement in general employee engagement. Education and development of employees. Through their approach to inclusion and diversity, NGD will enhance company performance, customer satisfaction, community and business relationships, and shareholder value. The first step of the initiative was positively met; the I&D survey received an impressive response rate of 73%, well above the 30% average response rate for surveys administered online (Hamilton, 2003). Overall, employees have been inspired by their leaders and are eager to see change within their organization. 4 lorem ipsum :: [Date]
I&D Company Initiative Comparison How does NGD s I&D initiative compare to those of other companies? Exelon PG&E Energy ComEdison I&D Values Exelon aims to ensure that employees respect one another and have the opportunity to grow and succeed. They also aim to attract and retain employees who best serve and represent their customers and communities, and to treat diversity as a business imperative, core value, and moral obligation PG&E recognizes the need for continued improvement in the areas of inclusion and diversity, especially among their senior leadership. They continue to enhance and monitor effective practices to attract, retain, and develop diverse talent. ComEd recognizes that their company s success depends on how effectively they develop and utilize a diverse and inclusive work force. They understand the importance of having a workplace free of discrimination in which all employees are afforded the opportunity to develop and advance. Approach Exelon has deployed Employee Network Groups, a set of voluntary, corporate-wide committees that represent various diverse communities within the corporation. These groups strengthen employee links, raise awareness, improve recruitment, and serve as a forum for education. They also work externally to strengthen corporate citizenship and alert Exelon to new market opportunities. PG&E has created a Chief Diversity Officer position to coordinate workforce, community, and supplier diversity initiatives. They have also established a Diversity and Inclusion steering committee that is comprised of senior leaders and employees representing a crosssection of their company. Their job is to review PG&E s progress on a regular basis and provide feedback on that progress. ComEd has established their Supplier Diversity Program to demonstrate their desire to provide opportunities for minority- or women-owned businesses. The program held a workshop for the Regional Alliance for Small Contractors as well as hosting the Latino Business and Job Service Rising Star Awards, attracting hundreds of businesses and diverse suppliers. Key Outcomes Exelon has been named one of the 40 best companies for diversity two years running, outperforming their peers in the areas of supplier diversity, senior management, board involvement, and employee base. Additionally, they have won several awards for their excellence in diversity initiatives over the years, and individual employees have been recognized for their efforts toward inclusion. PG&E awards diversity within their company by way of the President s Diversity Champion Award. Several of their employees have won this award and still others have earned honorable mentions for their work in the community as well as within the organization to promote diversity and inclusion. PG&E, like Exelon, has also been named one of the 40 best companies for diversity by the Hispanic Business Magazine. ComEd has had employees named in the DiversityPlus Magazine s First Ladies of Supplier Diversity. They also received awards from the Supplier Diversity Development Council and the Orange County Chamber of Commerce as well as numerous corporate sponsorship awards for their efforts.
How will NGD know when they are making progress on the initiative? How to Measure Inclusion and Diversity The measurement of inclusion and diversity cannot be reduced to a single number. Diversity success was previously measured by reaching a quota. But incorporating inclusion as well makes the measurement process more complex. Success is measured on an organization-wide basis, and therefore the measurement used must take this scope into account. Using both qualitative and quantitative approaches to measuring I&D has proven effective for tracking the progression of the initiative. NGD needs to recognize the importance of aligning diversity with strategic business objectives as well as day-to-day culture. There are several means of measuring I&D progress within a company: Employee attitude surveys Cultural audits Focus groups Customer satisfaction surveys Management and employee evaluations Customer-supplier chains Training and education surveys The following are four areas of focus to consider when measuring I&D. Focusing on these specifics will illuminate what has already been accomplished and what needs further attention. CREATING a diverse workforce VALUING a diverse workforce MANAGING a diverse workforce LEVERAGING a diverse workforce Percentage of population representation; percentage of turnover; number of job applicants, offers, and refusals; number of diverse suppliers. Cultures, values, norms, and work life satisfaction; level of commitment; number of languages in the workplace; number of practices to help those with disabilities; number of discrimination complaints; number of diverse mentors; percentage of active participants in the I&D initiative. Number of promotions; number of career path moves; number of cross-functional teams; number of cutbacks, hiring freezes, downsizing, mergers, global diversity, and acquisitions; number of growth and development opportunities at different levels of the organization. Percentage of customer satisfaction; number of market segments; percentage of supplier diversity utilization; number of community partnerships. 6 lorem ipsum :: [Date]
Below is a survey that NGD leaders can utilize to assess the current I&D standings of NGD, and to track progress moving forward. The survey has been modified for Monar s purposes, but the original can be found here: www.genderdiversity.cgiar.org How to Measure Inclusion and Diversity (continued) (1) (2) (3) (4) (5) NGD is lacking in this area NGD is inconsistent and needs to focus in this area NGD is doing this regularly NGD is doing this well, to an advanced level NGD is doing this in an exemplary way Integration within NGD I&D strategies are integral to organizational strategies and objectives. I&D is viewed as contributing to organizational effectiveness. Information flows unencumbered to those who need it to work effectively. Expertise is trapped in strategic decision-making no matter where it resides in the organization. I&D is integral to the organization s operating principles and values and these are recognized as deriving organizational behavior. I&D is recognized as a long- term organizational investment that naturally involves complexity and constructive conflict. Total /30 Commitment and Satisfaction Employee issues are raised and heard with respect and honesty, and are resolved in an effective, timely manner. Individuals hold themselves accountable for their actions. I&D objectives are set and met from the top to the bottom of the organization. Organizational issues and personnel grievances are resolved effectively with active, appropriate input and participation from all levels. The organization continually assesses and learns about the dynamics of I&D and their impact on the people and the work of the organizations. Total /25 Leading by Example Managers take ownership for the strategy by setting visible goals and by serving as positive role models. Mangers are rewarded for integrating I&D objectives and practices within their work initiatives and programs. Total /10 Recruitment, Hiring, and Promotion People of diverse backgrounds work in all levels and departments of the organization. I&D is an explicit goal in recruitment strategies. There is equity in employment actions and systems. Total /15 Representation The organization is viewed by its employees, clients, and other stakeholders as an ethical player in its professional area and in the community where it is located The organization is viewed as a benchmark for best practices in diversity by employees and the public. The organization s products and outputs reflect a broad and diverse client base and partner network. Total /15 7 lorem ipsum :: [Date]
Increasing the Stickiness Factor of Inclusion and Diversity Once the I&D initiatives are implemented, how do employees ensure that they stick? Define the compelling reason for change. Develop a team of advocates. Challenge current organizational assumptions. Incorporate I&D in all aspects of business. Often, change is unclear and overwhelming. This can lead to exhaustion and burnout on the part of your employees. It s important to establish clarity and direction right away to prevent the loss of momentum. Aim to share stories of employee successes and invoke an emotional response on the part of the employees. Create a path for your employees and tell them how they can contribute to the initiative. Provide them steps, not leaps toward change and success. It is crucial that the advocates establish consistent habits with respect to the initiative. They need to make the behavior contagious. Be on the lookout for acts of I&D. Seek out employees that act as I&D role models. Reaffirm that their actions are positive by telling them exactly what it was that they did well. And reward these advocates. The rewards do not necessarily have to be material; just make sure they know that their efforts are appreciated and valued. The company culture will not change overnight. Tearing down the barriers to change is a perfect first step. Create opportunities for people to get to know one another through intranet, focus groups, or forums. Share the milestones of the initiative s success. Show how NGD is fairing competitively and create a sense of shared pride among employees as they strive to become the premier energy company. Create small wins at each level that are meaningful and contribute momentum. Inclusion and diversity is not just an initiative. It is a culture change, and it must be known that NGD understands this. I&D should appear from recruitment to exit interviews. The message should be kept simple and clear to preserve and disseminate the principles of the initiative. And provide others with the necessary tools to continue fostering I&D well into the future. Encourage them to be role models themselves. **Most importantly, keep an open mind. Change takes time, and you might experience pushback on the part of your employees. Be prepared for this, and do not let this discourage you while bringing this initiative forward. 8 lorem ipsum :: [Date]
Summary In today s economy, organizations need to catch the competitive edge wherever they can. Inclusive and diverse organizations have more engaged employees, increased innovation, and better customer relations, which all lead to a very convincing business case. NGD has led off strongly in the first leg of the race to become the premier energy company, but the momentum must grow exponentially to carry I&D into the internal culture of the organization. NGD strives to break beyond the barriers of race and gender in creating an inclusive and diverse organization, but this makes measurement much harder than comparing company statistics against government regulations. Qualitative and quantitative means for measurement are important at each stage of the initiative. Little gains in areas such as employee productivity and customer satisfaction represent big steps in the right direction and should be celebrated. The most important and difficult step in implementing a successful I&D initiative is making it stick in the company culture. I&D represents a change in the organization and will naturally produce an initial resistance from employees at all levels that will threaten its ability to survive. To combat this resistance, leaders within NGD must embed I&D in all aspects of business and become its advocates. They must demonstrate to front line workers that this initiative will create a better working environment where all people are valued, and, above all, create a sense of pride in working for the premier energy company. Goals must be clear and simple and success stories publicized. Once it sticks, I&D can generate its own momentum as employees at all levels become advocates for its sustainability. 9 lorem ipsum :: [Date]
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