Clockwise from top left: Clay Jones, Joy Fitzgerald, Sharon Harvey Davis, Tom Voss

DiversityInc Top 50 data shows a direct correlation between a CEO’s visible support of diversity—and emphasis on accountability—and results, measured in human-capital demographics and marketplace gains.

To explore successful CEO best practices on diversity management, we asked two chief diversity officers–Joy Fitzgerald, director of Diversity and Workforce Effectiveness at Rockwell Collins, and Sharon Harvey Davis, vice president and chief diversity offer at Ameren–to tell us about their relationships with their CEOs: Clay Jones, CEO of Rockwell Collins (No. 43 in the DiversityInc Top 50), and Thomas Voss, CEO of Ameren (one of  DiversityInc’s Top 5 Regional Utilities).

Synopsis: Why They Are Exemplary Diversity Leaders

Both of these CEOs are very public in their belief that diversity drives business gains. Clay Jones, chairman, president and CEO of defense contractor Rockwell Collins (who was interviewed in our last issue), vowed to earn a spot on the DiversityInc Top 50 two years ago and has succeeded, personally driving initiatives throughout his company. This year, the second in which Rockwell Collins made the list, the company is No. 43. Read our Q&A interview with Rockwell Collins’ Clay Jones and watch the video below to hear Jones speak about his diversity journey.

Tom Voss, chairman, president and CEO of St. Louis–based utility company Ameren (interviewed in our spring issue), has literally changed his organization’s corporate culture to create an inclusive and supportive environment, including LGBT rights. Read our Q&A interview with  Ameren’s Tom Voss and watch the video below to hear Voss speak on diversity and innovation.

You can read an excerpt of the 1,700-word article below. Visit DiversityIncBestPractices.com to read the full ‘Diversity Is a Leadership Expectation’: Case Studies of CEOs of Ameren, Rockwell Collins article, view the charts and watch additional videos from the roundtable.

CEO Best Practice No. 1: Holding Direct Reports Accountable
Both of these CEOs ensure their direct reports are equally supportive of diversity-management initiatives.

Rockwell Collins: It is our CEO’s commitment that diversity is a leadership expectation, not a choice. If you are going to be a leader at Rockwell Collins, you will demonstrate inclusive behaviors.

CEO Best Practice No. 2: Be a Role Model of Visible, Personal Support
These two CEOs, along with the CEOs at the top of the DiversityInc Top 50 list, are public and very personal in their consistent support for diversity as a business driver.

Ameren: Tom Voss is involved in a way that is genuine, sincere and credible. What that looks like at Ameren is that we have four female vice presidents and Tom has personally promoted three of them. We have one African-American CEO in our company, the first one. Tom personally promoted him.

CEO Best Practice No. 3: Uphold Values at All Times
When there is a fear of a backlash, some CEOs back down. These CEOs remain true to the values of inclusivity at their company.

Ameren: We have had some pushback on our support of LGBT rights. Tom not only shows up at a dinner for a local LGBT organization but he chaired the dinner and invited his direct reports to sit at his table.

CEO Best Practice No. 4: Chief Diversity Officer Has Frequent Access
Whether or not the chief diversity officer reports directly to the CEO, he or she must have frequent access and the ability to weigh in on crucial business strategies.

Rockwell Collins: I report to the senior vice president of HR, who reports to Clay Jones. I have access to Clay; he’s actively involved, not through emails or voicemails but face-to-face in his office.

CEO Best Practice No. 5: CEO Leads Executive Diversity Council
The CEO’s personal leadership of the diversity council, as well as holding senior executives accountable for company-wide results, has a direct impact on the success of the council’s goals.

Rockwell Collins: Our executive diversity council is comprised of the leadership team. Clay is very involved in helping set the strategies on a yearly basis. They meet quarterly to assess these strategies.

CEO Best Practice No. 6: Succession Planning and Continuous Support for Diversity
These CEOs know the diversity efforts must be sustainable, even after they leave the organization. They are ensuring that their successors have as deep a commitment.   

Ameren: Tom is in his 60s, and we know he will retire in the relatively near future. He has identified the potential next CEO to lead the diversity council so that if that person succeeds him, he will have a strong diversity footing in place.

Read the complete 1,700-word ‘Diversity Is a Leadership Expectation’: Case Studies of CEOs of Ameren, Rockwell Collins article at DiversityIncBestPractices.com for in-depth best practices, data charts and additional videos from our roundtable. The article is available to subscribers for free.

Not a subscriber? Request subscriber information and pricing for DiversityIncBestPractices.com.

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Question:

At the company my husband works for, he was told in less-than-explicit terms that although he is great at people management, unless he has a mentor who will stick by him, he should forget about growing in that role. If he does want to grow in the company and not stagnate, he should consider a technical track. Full disclosure: We are Indian Hindus. After doing some analysis, we noticed that 95 percent of people managers at my husband’s company are white and Christian and go to the same church. The couple of Indians who were people leads were told they were not doing a good job and that they would be better off on the technical ladder, then they were pushed aside.

My question is: How do you grow in a company that encourages this religious casteism and racism? And how do you deal with a situation where you really do want to manage people and are great at it but will not be given the opportunity to do so?

Answer:

I feel that culture within companies changes from the inside. There are examples of companies that change due to market pressure, but this is rare. Most companies go out of business rather than upset the status quo. Change almost always occurs when inspired leadership either overhauls the governance policies or enforces policies that are already in place.

Your situation is difficult­—you’re not the CEO, so you’re stuck with trying to change the culture of the organization using the governance policies that exist. Is this possible? Here are some things you should evaluate, as if for a report card:

1. Does your CEO have a quote about diversity on your company’s website? If so, does it read as heartfelt? Or do you think it came from the public-relations department?

2. Is his/her picture in that area? Does it look like the business part of the website (serious), or is it full of pictures of multiracial hands clasping, flowers and different-looking shoes (what I call diversity clichés).

3. Are there pictures of the board and senior executives? Are they scowling? Do their bios reflect community engagement and charitable work? Or do they look like the kind of people you’d avoid if you saw them coming? A lack of diversity among board members is typical but should be balanced by a statement of intention on diversity (see below points).

4. Is there a diversity council? Does it have significant representation of race, gender and position? How often does it meet? Does the CEO chair the diversity council?

5. Does your company have resource groups? Does your particular resource group have an executive sponsor? A business plan? Report-outs on the business plan?

6. Does your company have structured, disciplined and measured mentoring? Do you have a mentor?

7. Is your company philanthropic? Where does it disburse its charitable spend? What is the percent of gross revenue spent on philanthropy? (The DiversityInc Top 50 companies average 1.6 percent. DiversityInc itself donates more than 2 percent.) Does the charitable area of your company’s website cite hard facts and figures—or is it stale and/or full of public-relations gimmicks such as meaningless statistics, e.g., “Charitable donations rose 500 percent from 2002 to 2006”? (That could mean from $1 to $5.)

8. Is there a mission-and-values statement on your company’s website? Does it include diversity?

If you feel you can score your company positively on more than six out of the eight questions, I’d say you have a chance of inspiring change. The best way to inspire change is to leverage existing structure (diversity council, resource groups, mentoring, etc.) and to communicate in a style that is consistent with how your company expresses its most important financial information (i.e., use the same font and the same colors).

If your company has a mission-and-values statement, make sure you organize your information along the same lines. Use the same order of reasoning in your bullet points if you can. For example, here’s an area on Wells Fargo’s website where the CEO lays out the company’s mission and values. Page through the entire section. You can see how diversity is listed as one of the company’s core values—and there is an excellent explanation of what diversity means to Wells Fargo (No. 33 in the DiversityInc Top 50). There isn’t another company I’ve seen that lists its mission and values so clearly. We just had a senior executive from the company, Michelle Lee, executive vice president and Northeast region president, talk at our diversity event, and she told us that the company’s mission and values are a part of practically EVERY meeting.

I understand that most companies don’t have as clear a path as Wells Fargo, but you should look very carefully at what’s on a company’s website. As Maya Angelou said, “The first time someone shows you who they are, believe them.” Your company’s web site is a window into the leadership’s mind and heart. If there’s not much there, well, you may be working for mediocre people—and/or people who simply don’t see how strangling human capital by having unequal recruitment and talent development doesn’t translate to increased human-capital costs, lower brand equity with customers and squashed innovation.

I cannot say if the manager who gave you that reprehensible advice is following company policy or is just a rogue manager. Rogue managers doing bad things can happen at any company; a very smart governmental-relations pro at a company I enjoy visiting once asked me if I thought that it would be fair to say that 2 percent of any population would do something intentionally wrong that day. I thought the number was conservative. He responded that his company had more than 200,000 employees—which means that THOUSANDS of people at his company would do something intentionally wrong.

After all this introspection and investigation, if you feel that your entreaty will be positively received—and not damage your employment situation if you can’t afford that—my advice is to leverage the existing structures of feedback and take your change proposition through the chain of command. In my opinion, good organizations and leaders with a healthy sense of ego respond quickly to evidence that there are situations or actions that violate the stated mission and values of the company. They know that dissonance between values and actions destroys credibility, and that process destroys business because it psychologically detaches people from the satisfaction they derive from their daily work and detaches customers from their brand. Just look at what’s happened to Apple’s stock (down almost 10 percent) since workers at the Foxconn factory started rioting again. Now, there are plenty of things that go into a stock price, but over time, perception of the brand is key. I don’t feel the same way about my Apple products since learning about the abuse of workers at their assembly factories. It’s completely in conflict with their brand image.

I’m sure you know that your path won’t be easy. You will find people blocking your way—many times, petty people block good ideas because they’re not going to get credit for them. In my opinion, the cc field in an email is a little-used but very powerful management tactic.

If you don’t think an appeal to better business practices will find a happy reception, you have three choices: Stay and make the best of it, start looking for a new job—or start interviewing lawyers.

If you investigate legal redress, you’re going to need a very good lawyer, and a class-action suit is far better than going it alone. But keep in mind that settlements usually do not amount to much after attorneys are paid. So your best course of action really is to change things from the inside, if your company passes my report card, or to find another job and recruit all your friends to the new company.

Luke Visconti’s Ask the White Guy column is a top draw on DiversityInc.com. Visconti, the founder and CEO of DiversityInc, is a nationally recognized leader in diversity management. In his column, readers who ask tough questions about race/culture, religion, gender, sexual orientation, disability and age can expect smart, direct and disarmingly frank answers.

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The six CEOs and eight senior executives at our event demonstrated how their personal passion and commitment to diversity have become a critical factor in making strategic business decisions. In many cases, this helped gain traction within senior leadership and generated measurable results in workforce diversity, while sometimes improving market share.

The two-day event featured two panels with six chief diversity officers—one focused on best practices for executive diversity councils and the other on using compensation to drive diversity-management results. Additionally, DiversityInc Senior Vice President and Executive Editor Barbara Frankel presented exclusive advice on what companies need to do to improve their DiversityInc Top 50 rank.

Watch all the presentations from this event via the players below or view our YouTube playlist. Videos of all the speakers will be posted throughout the day.

Also, be sure to save the date for our upcoming 2013 DiversityInc Top 50 Companies for Diversity Announcement Dinner, April 23–24, 2013.

How New York City Drives Diversity Results
R. Fenimore Fisher, Deputy Commissioner, Chief Diversity & EEO Officer, City of New York
How does the City of New York drive diversity metrics and results? Find out from a world-class diversity expert.

Diversity in the Workplace: Leadership Counts
Jorge Benitez, Managing Director – North America, Chief Executive – United States, Accenture
This CEO really values work/life issues. He tells us how he includes spouses and encourages family priorities.

Panel: Best Practices on Executive Diversity Councils
Debbie Storey, AT&T; Rhonda Crichlow, Novartis Pharmaceuticals Corporation; Michelle Lee, Wells Fargo 
Three companies with the best practices—and results—on diversity councils talk about CEOs chairing the councils, setting goals and accountability.

Building a Strong Diversity Brand
John Bryant, President and CEO, Kellogg
The CEO of Kellogg tells us why his company has invested so much over the last two years in its diversity-management efforts.

Workplace Diversity: The Personal Connection in Leadership
Forest T. Harper, CEO, INROADS 
The son of migrant workers, who went on to be a top Pfizer executive, talks about how INROADS helps Black and Latino college students become corporate leaders. Click here to download the presentation slides.

Corporate Diversity at the Top: Q&A With Luke Visconti
Steve Howe, Area Managing Partner – Americas, Ernst & Young
The U.S. head of Ernst & Young discusses how corporate values drive business decisions at his firm

Diversity & Inclusion: Accountability & Your Business Future
Thomas F. Zenty III, CEO, University Hospitals
The CEO of this Cleveland hospital system tells us how outreach to Blacks and Latinos is driving hospital growth.

Workplace Diversity: Using Leadership to Save Lives & Talent by Creating Inclusive Workplaces
Dr. Eliza Byard, Executive Director, GLSEN (the Gay, Lesbian & Straight Education Network)
The head of the Gay, Lesbian & Straight Education Network (GLSEN) tells you about young lives saved through the help of corporations like yours.

Panel on Diversity Metrics: Using Compensation to Drive Results
Maruiel Perkins-Chavis, Marriott International; Joy Fitzgerald, Rockwell Collins; Chad Johnson, Sodexo
Three companies with the most effective diversity metrics tell you what’s on their diversity scorecards and how they link goals to compensation.

Corporate Diversity: A Personal Story of Why Corporate Values Matter
Michelle Lee, Executive Vice President and Northeast Regional President, Wells Fargo
This exec shares her remarkable story of how and why she became a banker and the challenges she faced as the only young, Black woman in her management-training program.

DiversityInc Benchmarking: Tips on How to Move Up on the DiversityInc Top 50 List
Barbara Frankel, Senior Vice President and Executive Editor, DiversityInc
See our tips on the best ways to answer questions on The 2013 DiversityInc Top 50 Companies for Diversity survey. Click here to download the presentation slides.

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Executive Diversity Councils: Best Practices From Kellogg Company, Comcast Corporation.

The greatest change that we’ve observed among executive diversity councils is the increasing number of CEOs chairing the council: This is true for 54 percent of DiversityInc Top 50 companies with executive diversity councils, up from 32 percent in 2005.This sends a strong message throughout the organization that this is a business priority and that the council is driving actual results (not just setting strategic direction).

In our web seminar on diversity councils, Kellogg Company Global Head of Diversity & Inclusion Mark King and Comcast Corporation Vice President of Administration Karen Dougherty Buchholz discuss the strategies and goals their companies used to create and implement effective executive diversity councils—and how they keep their council members accountable for results. (Kellogg Company is No. 49 in the DiversityInc Top 50 and Comcast is one of DiversityInc’s 25 Noteworthy Companies.)

Kellogg President and CEO John Bryant serves as chair: The nine members of Kellogg’s executive diversity and inclusion council (EDIC) oversee the company’s 12 diversity councils from its respective business divisions.

Comcast’s Joint Diversity Council oversees diversity strategy of 14 councils: Comcast/NBC Universal also leverages an external diversity council for additional guidance.

In this web seminar, you will learn:

• How to create clear diversity-council objectives
• Why resource-group members should be included on the council
• When meeting size and frequency can impact council effectiveness
• How to promote your executives’ diversity leadership throughout the organization

This 90-minute diversity web seminar is available to DiversityIncBestPractices.com subscribers. Click here to watch.

Visit our web seminar library to view our full archive of web seminars.

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Q: I’ve been giving our current diversity advisory council some thought, and it prompted a question that I’d like to get your perspective on. Have you seen companies utilize their resource-group leaders as diversity advisory-council members?

A: As resource groups have matured, they have literally earned a place at the table. That table, increasingly, is the executive diversity council. [Watch our diversity web seminar on resource groups for insights on the growing importance of these groups.]

We’ve heard from a number of companies that they are creating rotational spots on their executive diversity councils for one to three resource-group leaders. These spots usually last two years (although we’ve seen one- to four-year terms), and in some cases, the resource-group leaders are not voting members of the councils. When executive compensation is directly tied to company-wide diversity goals set by the council, the resource-group leaders usually are excluded from that. For more on resource-group leadership and selection, read DiversityInc’s exclusive resource-group research.

Their purpose on the council is twofold; they give the council insights into the middle layers of the organization and specific insights from their own affinity groups, which are incredibly valuable in determining business-related strategies to reach more employees, customers, investors and suppliers from these groups. The council experience is also a major talent-development initiative for the resource-group leaders and exposes them to interactions with the senior-most executive in the company. Kathryn Collins, former vice president of associate recruitment and inclusion & diversity, jcpenney, explains more about resource-group structures in the video below.

We started asking the question of what percentage of The DiversityInc Top 50 Companies for Diversity has resource-group rotational positions on their executive diversity councils in the 2011 survey. The answer was 34 percent. We expect to see that percentage increase this year. The percentage of CEOs of DiversityInc Top 50 companies who meet regularly with resource-group leaders (defined as specific small-group meetings, not speaking engagements to large audiences sponsored by resource groups) is 88 percent, twice what it was five years ago.

So you see specifically where the trend is and why. You can get more information on this from our diversity web seminar on diversity councils, featuring IBM and jcpenney, and our recent roundtable on diversity councils, featuring KPMG, American Express and Aetna.

For more on the benefits of resource groups, read How Kraft Increased Promotions of Women in Sales by 39%. In the roundtable, Kraft’s Vice President of Diversity Jim Norman explains how resource groups not only helped the company increase its retention of Black, Latino, Asian and women employees (as shown in the video below) but also promote more women into its management ranks.

The post What Your Resource Groups Are NOT Telling You appeared first on DiversityInc.

MasterCard’s diversity leader, Donna Johnson, details at our diversity event how the company works with HR, legal and diversity to improve its talent-development efforts. Watch the video below. The full presentation slides are available on DiversityIncBestPractices.com.

Video Minutes

0:04:00 Strong Foundation for a D&I Policy

0:05:27 Setting Measurable Evaluation Criteria

0:06:32 Governance & Accountability

0:09:10 MasterCard’s Eight Business Resource Groups

0:11:56 D&I as Part of Law and Franchise Integrity

0:16:28 Public Policy, Philanthropy, Ethics & Compliance

0:28:04 The Evolution of a Global Policy

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During this 90-minute web seminar, Joanne McDonough, PricewaterhouseCoopers’ former Office of Diversity Director, and Debbie Storey, AT&T’s Senior Vice President of Talent Development and Chief Diversity Officer, explain how integrating diversity management into every facet of a business can increase market share and business innovation. PwC rose to No. 1 on the 2012 DiversityInc Top 50 list, up from No. 3 in 2011 and No. 6 in 2010. AT&T (No. 4) has maintained a ranking in the top five since 2009, rising from No. 22 in 2008.

Data from our survey show that excellence in diversity management is directly correlated to five best practices:

1. Linking compensation to diversity management.
2. Having diversity councils with rotational positions.
3. Establishing cross-cultural mentoring programs with senior-management participation.
4. Using resource groups for recruitment and understanding the marketplace.
5. Increasing supplier-diversity spend.

During the web seminar, you will learn:

• How PwC’s diversity-department structure is set up to achieve maximum effectiveness.
• How the Candid Conversation Series enhanced cultural dexterity at PwC with all employees.
• The business advantage in adopting LGBT tax-equalization benefits for employees.
• The innovative types of resource groups AT&T is launching that directly tie into its business process.
• How AT&T was able to increase its spend with diverse suppliers by 31 percent in one year.

This 90-minute web seminar is available to DiversityIncBestPractices.com subscribers. Please log in to watch the presentation and download the slides.

Not a subscriber? Buy this web seminar now, or request subscriber information and pricing for DiversityIncBestPractices.com.

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Talent-Development Best Practice No. 1: Have an Executive Diversity Council With Accountability for Results

Companies that want a dramatic escalation of the diversity of their human-capital numbers, especially in senior-management ranks, have found that a strong executive council, led by the CEO, has the quickest and most sustainable results.

Follow these steps:

• Have the diversity council chaired by the CEO to send the clear message that this is a top priority
• The diversity council should be comprised of senior executives, direct reports to the CEO and others who have a clear interest in diversity management’s outcome on the business, including the head of procurement, the head of sales and the head of HR
• The chief diversity officer should also be a member of the diversity council
• If the organization has developed resource groups to assist in business and talent-development goals, taking two resource-group leaders every year and giving them rotating positions on the council brings fresh ideas from a different perspective
• The diversity council should meet at least quarterly and should have monthly updates on diversity-management progress
• The diversity council, at the beginning of the year, should set overall goals for its diversity efforts, including human-capital goals but also goals for procurement, set-up and participation in resource groups, mentoring participation, community philanthropy to multicultural organizations, and other diversity-related initiatives
• Diversity-council members’ compensation should be linked to the overall success of these diversity-management goals and individual diversity goals set for them

Talent-Development Best Practice No. 2: Make Formal Cross-Cultural Mentoring Available to All Managers

Both academic studies and DiversityInc Top 50 data show a direct correlation between formal, cross-cultural mentoring and promotions of underrepresented groups in management levels. Follow these steps:

• Include the top three levels of your organization in the mentoring program and make participation part of senior executives’ performance evaluation
• Expand your cross-cultural mentoring program to as many managers as possible throughout the organization, using flexible options such as virtual mentoring and group mentoring
• Create as many cross-cultural pairings as possible
• Ensure both mentors and mentees have cultural-awareness and diversity training before they start the formal relationship
• Monitor the relationships every three months to ensure they are working smoothly
• Have finite periods for mentor/mentee relationships, usually one year
• Measure engagement, retention and promotion of mentees versus non-mentees

Talent-Development Best Practice No. 3: Use Resource Groups to Find & Develop Talent

Resource groups are the best way to find that hidden talent—people who may have leadership potential but don’t have the right education or experience to be considered. Resource groups can encourage them to progress and give them confidence to ask for more.

Follow these steps:

• Ask resource-group leaders to identify talented people within their midst and invite them to take on leadership positions within the resource group
• Give the talent potentials cross-functional assignments within the group so they learn new skills
• Pair them with experienced leaders
• Ensure they have cross-cultural mentors within the organization
• Track their engagement, retention and promotion and publicize their success stories so others seek out similar talent-development opportunities

For more best practices for equitable talent development, read Increasing Diversity in Talent Development.

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The sessions were led by chief diversity officers at companies especially chosen for their success in these specific areas, demonstrated by human-capital results. They are: Jennifer Christie, American Express (No. 14 in The 2012 DiversityInc Top 50 Companies for Diversity), on Resource Groups; Kathy Hannan, KPMG (No. 22), on Diversity Councils; Billie Williamson, Ernst & Young (No. 6) on CEO Commitment; and Ron Glover, IBM (No. 17), on Talent Development/Mentoring.

They shared their best practices in facilitated discussions on what other organizations are doing and what common concerns—and innovative solutions—are available.

Read the exclusive, four-part report, “Networking & Sharing on ERGs, Diversity Councils, CEO Commitment, Talent Development, Mentoring,” on DiversityIncBestPractices.com.

DiversityInc features highlights from their conversations in stories and video excerpts:

• Resource Groups: Why They Are Business-Resource Groups
  They bring in talent, help develop innovative people and connect with communities to drive sales 

• Diversity Councils: Why They Move the Needle
  Public support from the top and clearly defined goals link directly to business results 

• CEO Commitment: Why Visibility & Accountability Matter
  Senior executives are held responsible for results; middle managers buy in

• Talent Development/Mentoring: How to Find & Develop Hidden Gems
  Involve the entire organization in the process; use resource groups as key sources

The post Networking & Sharing on Resource Groups, Diversity Councils, CEO Commitment, Talent Development, Mentoring appeared first on DiversityInc.

In Role of Chief Diversity Officer With Diversity Council, diversity leaders from five of The DiversityInc Top 50 Companies for Diversity—Aetna (No. 19), AT&T (No. 4), Automatic Data Processing (No. 38), Cox Communications (No. 20) and Sodexo (No. 2)—discuss their roles and responsibilities with their organizations’ diversity councils.

Readers will learn:

• How often these diversity councils meet to discuss goals and progress
• Which companies have multiple councils to better focus on strategy versus implementation initiatives
• Which metrics rank the highest on companies’ scorecards and are discussed at meetings
• How companies bring in external support to help devise action plans

Read Role of Chief Diversity Officer With Diversity Council on DiversityIncBestPractices.com.

For more on diversity-council best practices, read Why Diversity Councils Move the Needle for Business Results and Effective Diversity Councils: A DiversityInc Roundtable.

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