LUKE VISCONTI: What led you to be a supporter of diversity and inclusion? How has it impacted the success of your business units?

DAVID EPSTEIN: There are two drivers for me. One is that I grew up in an atmosphere my parents created where people are people, regardless of whether they’re male, female, from any given country, religious background or sexual orientation. I’m interested in what a person can contribute, what their unique experiences are.

The second driver is that, back in 2000, Dr. Daniel Vasella [Chairman and former CEO of Novartis AG] gave me the opportunity to run Novartis Oncology, a global business unit. For the first time in my career I ran discovery, development and commercialization. We operated in more than 70 countries. I had the opportunity to build that team from scratch. I picked people based on their experiences and how I felt they treated other people. My philosophy is that you treat others in the way you expect to be treated.

I ended up with a team that came from all over the world. We had phenomenally productive discussions. At the beginning, it was very difficult because we had different cultural backgrounds and the norms within which we communicated were different, but after a while I saw the power of people with different backgrounds and what they could contribute to business ideas. Once we got that group working as a high-performing team, we were able to accomplish feats that nobody thought were possible.

The business more or less didn’t exist when I was asked to create Novartis Oncology in 2000. We pulled together what oncology products and pipeline we had within Novartis, which represented about $1.5 billion in sales. We had three products, two of which were not robust: one was going generic, and the other was a licensed product but the license was coming to an end. The business was about to disappear.

We built, over 10 years, a $10-billion business, the No. 2 oncology business in the industry. More importantly, people who work in that business say there is a unique focus on creating the environment and the atmosphere, which drives people to do what’s right for customers and patients. An environment that brings people together in a way that’s unique: People can be open, be themselves, and passion fuels what they do together.

Now, I’m trying to create that here in the bigger Pharma business. We’re making progress: You see a much more open, a much more inclusive atmosphere. You see that we’re increasingly hiring people of varied backgrounds. You’re seeing more women in management, more people from emerging markets sitting on the leadership team. It’s starting, but it’s a long road. It takes years and commitment.

Authentic Leadership

VISCONTI: When I interviewed Dr. Vasella, he said, “I love other cultures.” Do you think it was his influence, his leadership that was an inspiration? 

EPSTEIN: Daniel influenced me in a lot of ways; I found him to be a very authentic leader. I take great pride in my authenticity. When I speak, there is no hidden agenda. People around me know what I think. They know that I will listen, that I will debate. I might be the guy who makes the decision, but they’ll know where I’m coming from. It engenders a lot of trust.

If you have weaknesses as a leader, you should be willing to discuss those with your team. If you make a mistake, you should admit it, whether it was a business decision you made, the wrong person you hired, or how you treated someone.

The second thing I owe to Daniel is that he believed in me. He gave me some unique opportunities, such as running the Oncology business or being chosen as head of Pharma. If he hadn’t made that choice, I never would have had the opportunity to grow and become more worldly, more diverse, more inclusive.

VISCONTI: How do you translate the Novartis values across different cultures while respecting local traditions? 

EPSTEIN: It’s not about everybody being in the same place at the same time or having to do everything exactly the same everywhere. For me, it’s a journey. Everybody is moving along that journey to become more inclusive, to put together the best possible team, to get their teams to operate in a high-performing way. Yes, you may have to do it uniquely in China versus Japan versus somewhere else. I think that’s OK.

Sitting still is not acceptable. Having a team that all looks and sounds and thinks the same is not acceptable. How you do it will vary and, being a global company, we’re fairly adept at making those changes. Sometimes there’s friction and you have to have a discussion.

VISCONTI: I’ve heard it put that this work is fatiguing at times—a good fatigue—but that it’s also very invigorating.

EPSTEIN: For me, it’s not fatiguing. I get great satisfaction from developing people and seeing teams do great things that no one thought was possible.

You can have lots of people that look and sound like you and your organization will work fine, but you will never be great and you will never capture the upside. Or you can decide to go for a more diverse and inclusive atmosphere. If you don’t do the work, don’t have the right leadership skills and those people don’t work together, it may actually be worse than having a homogenous team. You just don’t get anything done.

On the other hand, when you lead a very diverse group of talented people and have created the right atmosphere, you’re unbeatable. So it’s worth it. As a leader, you have to have your sights on that far-off horizon.

For the person who comes into a job and thinks they’re only going to be there two or three years, it might not seem worth it. In every job I’ve taken, I have adopted the mind-set that I will be here forever. I want to leave a legacy of an extremely well-functioning organization that is delivering unique value to patients. That’s ultimately what drives me. I take personal pride in seeing people be successful.

VISCONTI: How has Novartis made efforts to address diversity in drug trials? Has this approach changed over time?

EPSTEIN: If you look back 10 years, we were a very U.S.– and Euro-centric company. That’s where the business was. That’s what we knew how to do.

Over time, we began to realize a couple of things. One is that one size does not fit all. A drug for every patient with a given disease doesn’t exist anymore. Medicine is more personalized, which forces you down the road of understanding differences in people—these differences can be genetic, dietary, about lifestyles, or many others.

Second, the world has shifted. Much of the growth opportunity in healthcare comes from emerging markets. Patients in these markets need to be included in trials to make sure we are developing the right medicine for them. About six years ago, for example, we started a project in Japan. We typically launched in the United States and Europe, and five to seven years later, we’d launch in Japan. We wanted to get to the point where that gap was down to one or two years. This year, we have a drug that was approved first in Japan, the U.S. and Europe a bit later.

In the U.S., we are trying to better adapt to the needs of various ethnic groups, and we’re increasingly doing clinical work that includes them. We need to see the data for an African-American patient or a Latino or a Japanese person living in America. We look at women versus men, we look at different age groups, so all these things are being incorporated into our business. Companies that do this work have an advantage in the marketplace. They can talk with the customer and make a different kind of connection.

VISCONTI: Do you see ultimately being able to give people pharmaceuticals customized to their genetic type?

EPSTEIN: If you look at what’s in our portfolio right now, I would say close to 90 percent of the medicines moving from discovery into the clinical-trial phase are targeted based upon a person’s genetic makeup.

Our new medicines will come along with an assay, which will become a diagnostic in the marketplace. If we have three patients in the room that have a given disease—whether it be breast cancer or rheumatoid arthritis—we will be able to tell in advance, thanks to a genetic test, which patient is likely to respond. Then all the clinical trials are done with those responding patients. You can imagine how it changes the health-economics benefit. There’s no more waste. There are no longer expensive, long trials with groups of patients who simply will not benefit from a certain drug.

In our company, we’re investing in R&D and we’re driving innovation and it becomes a competitive advantage. Some companies have chosen to be more focused on short-term commercial opportunity and have not continued to evolve their innovation capability. This creates a bigger gap between us and them.

VISCONTI: Can you connect the company’s focus on diversity and inclusion, cultural awareness and cultural competency with your philosophy on research and development?

EPSTEIN: There are a couple of connections. One is we can recruit people, the best people, from anywhere in the world, which is a major advantage. And when you start to recruit these people, they bring in even more people from those regions or those backgrounds.

Working with diverse cultures and backgrounds, you’re also more likely to design your clinical trials in a way that looks for subgroups or different patient characteristics

It’s largely about talent. It’s about getting the very best people in the door and then making the investment to get them to work together in a high-performing team. That means training your leaders to be inclusive—and we do have inclusive leadership training. We just rolled out a program called Leaders as Coaches. It teaches people specific coaching skills as leaders—for example, how to have a conversation with your team members so challenges and options can be addressed openly and in a reflective manner. We also do high-performing team training where the leader and their direct team work together on a multitude of things.

When you first explain to people that we are going to do this, you get the classic reaction: “I have to take two or three days out of my schedule to do this? I have to think differently?” After they’ve been through it, something interesting happens: They say, “This has made me a better leader and it’s had an immediate impact on how we all work together and what we can achieve.

Our strategy is to win in primary care, specialty care and oncology. We want to become the best pharmaceutical company by 2016. There are four major pillars: growth, innovation, productivity and people. The people pillar is very clearly spelled out as becoming more diverse and inclusive, to invest heavily in high-performing team workshops and education so that we can bring out the best in people. We’re very explicit about it.

The post Novartis’ David Epstein: A Diverse Team Can ‘Accomplish Feats Nobody Thought Possible’ appeared first on DiversityInc.

“It was my first time working in a different country and I experienced what it was like to be an outsider,” he recalls. “I was young and I felt all the pressures to have all the answers to be Superman. I hit a wall and there was real culture shock.”

What he learned was that he had a team of experienced people on hand “and all I had to do was bring them in the room and we got much stronger decisions.”

That experience has served him well as he has moved to increasingly important HR positions, from Unilever to Bristol-Myers Squibb to Novartis, where he recently was appointed global head, Human Resources, Oncology after three years heading HR in the United States and Canada for Novartis Pharmaceuticals Corporation, No. 13 in The DiversityInc Top 50 Companies for Diversity.

The Value of Diversity

For Baert, diversity is critical to the business strategy of Novartis, and HR clearly plays a central role in recruiting, retaining and promoting diverse groups. “I have seen firsthand that a diversity of experience, cultures and individuals leads to innovation, engagement and stronger decision making,” he says.

Having worked globally, including heading the Emerging Growth Markets area, which includes China, Russia, India, Turkey, Thailand, Korea, Australia and New Zealand, he sees strong differences in U.S. and other approaches to diversity and inclusion.

“There are ways the United States is ahead and ways it is behind,” he says. “In general, the focused attention on diversity and inclusion in businesses in the United States is ahead of the world. It seems every major U.S. corporation has a dedicated function on diversity, with many senior leaders understanding the importance of diversity as part of their strategy. You will not find that easily in other parts of the world.”

However, he notes that on some issues, such as same-sex marriage, the United States is not as progressive as some other countries, and this can be a detriment to hiring. He says that he has had trouble recruiting gay/lesbian scientists to the United States because they cannot get visas for their spouses since the federal government does not recognize their marriages.

“As an employer who likes to bring in the best people, this is disappointing,” he says.

Tying Business to HR

Baert is a rare HR leader whose strategic emphasis is always focused on business goals. He started his professional life as a lawyer, which he chose because “life is not expressed in black and white and the law is a good training ground to manage ambiguity. … I am by nature very solution-oriented and I didn’t like all the fighting in law.”

He moved into HR, thinking he would work in that field for two years and switch to a business role, “but I got so passionate about HR” and its impact on the business. He was recruited by Novartis in a global role and in 2009 was asked to head up HR North America, Novartis Pharmaceuticals Corporation. In that job, he had many opportunities to drive the human-capital agenda.

In his new role, he believes the intersection of HR, diversity and innovation is crucial to the company’s success. “Our business is all about innovation,” he says. “The discoveries we make to fight diseases become ever more complex. It would be naïve to think one person singlehandedly could come up with a solution. You need to bring in many diverse backgrounds, insights and experience to work in an inclusive way because that is what will lead to a breakthrough.”

The post Novartis’ Steven Baert: Diversity of Experience Leads to Stronger Business Decisions appeared first on DiversityInc.

Novartis, No. 2 in the 2012 DiversityInc Top 50, is one of eight leading companies that presented at our “Managing Relationships Between HR & Diversity Departments” diversity event held in New York City.

The full presentation slides are available at DiversityIncBestPractices.com.

For closed captions, press the CC button in the YouTube player.

Video Minutes
0:00:00 Introduction
0:04:37 Diversity and Inclusion at Novartis
0:07:43 3 Challenges to D&I–HR Relationship
0:08:43 HR’s Responsibilities
0:10:39 D&I’s Responsibilities
0:11:50 Organizational Structure at Novartis
0:13:30 HR Versus D&I Competencies
0:15:14 Treat Each Other Like Customers
0:17:07 Alignment, Accountability, Assurance, Assessment
0:20:06 Examples of Successful Implementation
0:21:35 4 Case Studies
0:23:16 3 Takeaways

The post What HR Really Needs to Succeed appeared first on DiversityInc.

André Wyss, Novartis Pharmaceuticals Corporation:

“Now more than ever, our customers and patients we serve are counting on us for innovative breakthrough medications for increasingly complex medical needs. These include cancer, multiple sclerosis, chronic obstructive pulmonary disease, heart disease, and many others. The communities in which we work are relying on us. These are our business goals as well as a mission to do good. We also were recognized as a DiversityInc Top 50 company and are committed to doing what’s necessary to attract, retain and motivate the diverse talent we need to succeed now and in the future.”

John Bryant, Kellogg Company:

“The Kellogg Foundation gives away $360 million a year to children’s education and healthcare around the world. So we are very honored—and indebted to our founder—but honored to be part of an organization where so much of what we do goes back to kids in the communities in which we serve.  That’s in our past, but it’s also what we want to make very much true today and in our future. As we look at the Kellogg Company, we have a very special bond with our consumers. Every day around the world, millions of people bring our products into their homes and feed our products to their children. That special bond between us and our consumers, we take incredibly seriously. And our goal is to help us understand our consumers so well that every day we’re in even better position to bring our best to those consumers.”

Michelle Lee, Wells Fargo:

“Reinvestment is an integral part of our culture, and it’s one of the things I enjoy most about my job—giving back to our communities, engaging as a volunteer and serving on nonprofit boards. It’s my responsibility at Wells Fargo as a leader. Last year, we invested over $213 million in 19,000 nonprofit organizations, and 165,000 Wells Fargo team members are involved in community-development activities across the country.”

Steve Howe, Ernst & Young:

 “I can tell you that we truly do believe that inclusiveness is critical. It’s critical to us performing at a consistent, exceptional level all around the globe. It makes us better, more insightful; it helps us solve problems, manage risk and seize opportunities that much better. And we believe that driving multicultural teams is an absolute must.”

John Lechleiter, Eli Lilly and Company:

“Now, since I’m among friends this evening, I have a confession: Early in my tenure as CEO, I made a decision, based on a variety of reasons at the time, to cut back on our flexible work programs. And employee engagement suffered. In fact, when I commissioned a small team to find creative ways to strengthen employee engagement, their first recommendation was to bring flexible schedules back. At least I was smart enough to listen. And I did, and it’s one of the best decisions I’ve made.

Arne Sorenson, Marriott International:

“Marriott’s approach to diversity and inclusion is deeply rooted in our company’s purpose, which is to open doors to a world of opportunity. This includes the opportunity to build a career, the chance to own one of our hotels, or to provide products and services as one of our suppliers. For 85 years, we’ve said, ‘Take care of our associates, and they’ll take care of our guests.’ This core value of putting people first underpins our commitment to diversity, but we also believe that it drives our profitability. Hospitality is by definition a diverse industry. A couple of recent statistics: Obviously, people come from all over the world to visit New York. Last year, 2 million Mexicans came to the United States; 1.5 million Brazilians; over 1 million Chinese—and those numbers from each of those countries are up about 50 percent year-to-date from last year.”

Steve Price, Dell:

“Our purpose is to bring technology solutions to the world that enable people everywhere to grow and thrive. The one thing we know about growing and thriving: No one grows and thrives alone. We all grow and thrive in relationships. That’s why our employee resource groups are so important because this is where people come in from all walks of life and become part of a community. They get connected and become part of a relational community, irrespective of where you come from or what part of the globe you sit on. You can come to this company and you can be your best and you can do your best work.”

Mark Clouse, Kraft Foods:

“The beauty of splitting a company like Kraft into two is that we have two organizations born of the same value of understanding—the power of diversity. Two organizations that understand that, in a world of global connections, our ability to reflect the consumers we serve—and the people and colleagues that work with us—is paramount to our success.”

The post 8 CEOs Whose Inclusive Styles Change Corporate Cultures appeared first on DiversityInc.

Recognizing Results: Diversity-Management Strategies That Worked

We honored companies in eight areas of diversity management:

• Talent Pipeline
• Global Cultural Competence
• Working Families
• Supplier Diversity
• Community Development
• Resource Groups
• Diversity-Management Progress
• Executive Development

Congratulations to our 2012 Special Awards recipients. Read more about how each company demonstrated measurable results that positively impacted both their business goals and their employee engagement at DiversityInc.com/2012specialawards.

2012 DiversityInc Top Company for Talent Pipeline

Novartis Pharmaceuticals Corporation
No. 13 in the DiversityInc Top 50
Accepting Award: André Wyss, President

“I believe [our Disability Mentoring Day, Multi-Cultural Teen Corporate Mentoring Program and Suburban Cultural Educational Enrichment Program] provide an overview of our commitment to participating in and supporting meaningful programs at the intersection of community-based outreach, philanthropy and education. They say it takes a village to raise a child. We believe that NPC has an important role to play in that responsibility.”

Novartis understands the need for a diverse workforce and pipeline to senior management, both for cultural competency in its product development and marketing and for the most innovative workplace solutions. The company has been actively donating and volunteering to help youth from underrepresented groups reach their full potential, including direct involvement from its most senior leaders. >> Read more

2012 DiversityInc Top Company for Global Cultural Competence

Ernst & Young
No. 6 in the DiversityInc Top 50
Accepting Award: Steve Howe Jr., Area Managing Partner – Americas

“Global cultural competence—for us, it’s critical. It helps us seize opportunities all that much better, and we believe that driving multicultural teams is a must. Diverse teams need that inclusion ‘glue’ to hold them together. We pride ourselves on true globalization and delivering high-performance teams, as well as exceptional customer service. All three require inclusion. We set a tone at the top. … It’s a business imperative.

As a truly global company, Ernst & Young knows how crucial the understanding and respect of local cultures is, while staying true to the values of inclusion so core to this company. Cultural-competence and harassment/discrimination training are emphasized throughout the organization, as is talent identification and development for underrepresented groups, particularly women, globally. >> Read more

2012 DiversityInc Top Company for Working Families

Eli Lilly and Company
No. 29 in the DiversityInc Top 50
Accepting Award: John Lechleiter, Chairman, President & CEO

“Helping employees integrate work and life is more important than ever as we look for ways to continuously improve productivity. … Early in my tenure as CEO, I made a decision to cut back on our flexible work programs, and our employee engagement suffered. [Bringing those programs] back is one of the best decisions I’ve made.”

This company has become a model of workplace flexibility for its employees. Globally, Lilly offers a number of programs, varying by location, to assist employees in maintaining work/life flexibility. These include flexible work arrangements, personal leaves, onsite health services/fitness centers, onsite childcare, campus credit unions and dry cleaners, and family-support programs. >> Read more

2012 DiversityInc Top Company for Supplier Diversity

Marriott International
No. 21 in the DiversityInc Top 50
Accepting Award: Arne Sorenson, President & CEO

“Diversity and inclusion is deeply rooted in our company’s purpose. It includes opportunities to build a career, own one of our hotels or do business with us as a supplier. … We are very proud of our partnerships. They have made us successful and, in turn, we enjoy watching these businesses grow and investing in their communities. In 2011, these suppliers totaled 17 percent of our total spend, and we will continue to reach higher.”

Marriott has a long and rich history of creating community wealth by using local minority- and women-owned business enterprises (MBEs and WBEs) to build and service its hotels, especially in urban areas. Marriott’s Tier I (direct contractor) third-party certified spend is 7.8 percent with MBEs and 9.5 percent with WBEs, more than 25 percent higher than the DiversityInc Top 50 average for MBEs and more than double the DiversityInc Top 50 average for WBEs. Marriott also spends 1 percent of its Tier I procurement with vendors owned by LGBT people, one of the highest percentages we’ve seen. >> Read more

2012 DiversityInc Top Company for Community Development

Wells Fargo
No. 33 in the DiversityInc Top 50 
Accepting Award: Michelle Lee, Executive Vice President, Northeast Regional President

“Reinvestment is an integral part of our culture, and it’s one of the things I enjoy most about my job—giving back to our communities, engaging as a volunteer and serving on nonprofit boards. It’s my responsibility at Wells Fargo as a leader. Last year, we invested over $213 million in 19,000 nonprofit organizations, and 165,000 Wells Fargo team members are involved in community-development activities across the country.”

The company’s commitment to the Black, Latino, Asian, American Indian and LGBT communities is remarkable for the depth of its efforts to reach suppliers, youth and low-income people. Sixty-five percent of the executives in the top two levels of the company sit on the board of a multicultural nonprofit. >> Read more

2012 DiversityInc Top Company for Resource Groups

Dell
No. 26 in the DiversityInc Top 50
Accepting Award: Steven Price, Senior Vice President, Human Resources

“I’m really proud of the work our company has been doing around diversity and inclusion because it’s authentic. It’s core to who we are as a company. Our purpose is to bring technology solutions around the world that help everyone. No one grows and thrives alone; we all need relationships. That’s why our resource groups are so important … to develop a sense of community.”

In the past two years, Dell has placed a major emphasis on increasing employee participation in its resource groups, creating and expanding global groups, and using these groups to further its business. Dell has seven global resource groups. Three have chapters outside of the United States: WISE (Women in Search of Excellence) in the Asian Pacific Japan region and Europe, the Middle East and Africa; PRIDE (for the LGBT population) in Brazil, and True Ability (Employees or Family Members of Employees with Special Needs/Disabilities) in Brazil. >> Read more

2012 DiversityInc Top Company for Diversity-Management Progress

Kellogg Company
No. 49 in the DiversityInc Top 50
Accepting Award: John Bryant, President & CEO

“As we look at the Kellogg Company we have a very special bond with our consumers: Every day people bring our products into their homes and feed their children. Our goal is to help us understand our consumers so well that every day we’re in an even better position to bring our best to those consumers. And to do that, we need not just a diverse organization, but an environment which is inclusive, where the ideas of that organization can come into our products, so we can create even better products for our consumers.”

Kellogg’s progress in all four areas of diversity management that we measure has been considerable in the past year and shows every indication of being sustainable. This progress put Kellogg on the DiversityInc Top 50 list this year. >> Read more

2012 DiversityInc Top Company for Executive Development
Kraft Foods
No. 7 in the 2012 DiversityInc Top 50
Accepting Award: Mark Clouse, President of U.S. Snacks Business Unit

“One of the hallmarks of Kraft is a belief in healthy dissatisfaction. The world in which we live changes on a daily basis: If you stop moving forward, you’ll find yourself behind. … Any program of diversity that’s built into a company needs to understand that it starts from day one and travels with those individuals throughout their career. The representation of the collegues working with us will reflect all of the countries working with us.”

Talent development and the use of diversity training, resource groups and mentoring to maximize potential have been priorities for Kraft Foods in recent years—and the results are impressive. Following a recent split into two separate entities, the resource groups and talent-development initiatives will be even more critical to the companies’ ability to connect with its increasingly multicultural consumer base. >> Read more

The post 2012 Special Awards: What Makes These 8 Companies Best at Diversity Management? appeared first on DiversityInc.

We honoring companies in six areas we have noted in the past three years—Community Development, Talent Pipeline, Working Families, Global Cultural Competence, Resource Groups and Diversity-Management Progress—plus one new area: Supplier Diversity. View previous DiversityInc Special Award winners.

These companies demonstrate through their data and their documented achievements measurable results that positively impact both their business goals and their employee/community populations.

Additionally, Dr. Cornel West spoke at the Special Awards dinner. Dr. West is the author of Race Matters and Democracy Matters and is a professor of Philosophy and Christian Practice at Union Theological Seminary in the City of New York.

2012 DiversityInc Top Company for Global Cultural Competence

Ernst & Young
No. 6 on the DiversityInc Top 50 list
Accepting Award: Steve Howe Jr., Area Managing Partner – Americas

As a truly global company, Ernst & Young understands how crucial the understanding and respect of local cultures is, while staying true to the values of inclusion so core to this company. Cultural-competence and harassment/discrimination training are emphasized throughout the organization, as is talent identification and development for underrepresented groups, particularly women globally.

James Turley, chairman and CEO, told DiversityInc last year that it’s best to tailor a company’s initiatives by geography so diversity strategies remain central to local customs and beliefs. Once established, diversity leaders can then look to incrementally push the boundaries.

Ernst & Young has global resource groups for professional women, LGBT employees and Black professionals in several countries. The groups have executive sponsors and meet during the workday.

Ernst & Young is a founding member of WEConnect International, a corporate-led nonprofit that helps to empower women business owners to succeed in global markets. The firm is working with WEConnect on development of a national certification process for women-owned businesses in India, while its employees in Canada and the United Kingdom are actively involved with WEConnect.

2012 DiversityInc Top Company for Community Development

Wells Fargo
No. 33 on the DiversityInc Top 50 list 
Accepted Award: Michelle Lee, Executive Vice President, Northeast Regional President

“Wells Fargo is only as strong as the communities we serve,” the financial-services company states. The company’s commitment to the Black, Latino, Asian, American Indian and LGBT communities is remarkable for the depth of its efforts to reach suppliers, youth and low-income people. Sixty-five percent of the executives in the top two levels of the company sit on the board of a multicultural nonprofit. Some examples of its philanthropy:

• In 2008, Wells Fargo achieved its goal to lend $1 billion to Black-owned small businesses and extended the goal to $2 billion by 2018.
• In 2010, Wells Fargo provided $61.1 million in grants to nonprofits focused on community development in distressed communities, including affordable housing, homeownership counseling, financial education, workforce development and job creation.
• The company has an online financial-literacy program in English and Spanish and teams with local Latino organizations to host free, bilingual programs on money management.
• Wells Fargo is a founding sponsor of the Asian & Pacific Islander American Scholarship Fund. Since 2004, the bank has given $500,000 for scholarships for college-bound students from underrepresented Asian and Pacific Islander communities interested in pursuing careers in banking and financial services.
• In 2010, Wells Fargo invested $219 million in 19,000 nonprofits nationwide.

2012 DiversityInc Top Company for Working Families

Eli Lilly and Company
No. 29 on the DiversityInc Top 50 list
Accepted Award: John Lechleiter, Chairman, President & CEO

This company has become a model of workplace flexibility for its employees. As Lechleiter stated: “Lilly recognizes the critical importance of work-life integration tools to address the diverse needs, expectations, lifestyles and work styles of employees allowing them to be the most effective.” Globally, Lilly offers a number of programs, varying by location, to assist employees in maintaining work/life flexibility. These include flexible work arrangements, personal leaves, onsite health services/fitness centers, onsite childcare, campus credit unions and dry cleaners, and family-support programs.

Flexibility is a productivity tool that allows for adaptation of how, when and where work is completed. Supervisors discuss with their employees the needs of the individual and the work group, as well as the types of flexible work arrangements that are appropriate for a particular position. For employees, flexible work schedules are about lower stress levels, better health, a stronger focus on work while working and greater trust—all leading to loyalty, inspiration and innovation. For Lilly, flexibility is about being able to recruit and retain the best talent in a competitive marketplace, preparing for the changing environment and reducing the cost structure related to absenteeism, and healthcare—all leading to improved levels of engagement, which drives productivity.

2012 DiversityInc Top Company for Diversity-Management Progress

Kellogg Company
No. 49 on the DiversityInc Top 50 list
Accepted Award: John Bryant, President & CEO

Kellogg’s progress in all four areas we measure in diversity management has been considerable in the past year and shows every indication of sustainable forward motion. This progress put Kellogg on the DiversityInc Top 50 list this year, in the highly competitive consumer-packaged-goods industry.

The effort starts at the top. President and CEO John Bryant chairs the Executive Diversity & Inclusion Council and has instituted the first linking of diversity-management goals, both quantitative and qualitative, to executive compensation. The council reviews on a quarterly basis the company’s hiring, promotion and turnover activity reports and addresses trends with recommendations and actions.

Bryant and four of his direct reports serve as the executive sponsors of Kellogg’s six resource groups. The company’s resource groups are available to all U.S. employees and are utilized for recruitment, mentoring, talent development, retention, diversity training, marketing and community outreach.

The company’s supplier-diversity program, in existence for more than two decades, has experienced an almost six-fold increase in spending in the last 10 years and now supports more than 200 vendors owned by Blacks, Latinos, Asians, American Indians, women and veterans with disabilities. The company recently added businesses owned by LGBT people to its supplier database and will begin tracking them this year.

2012 DiversityInc Top Company for Talent Pipeline

Novartis Pharmaceuticals Corporation
No. 13 on the DiversityInc Top 50 list
Accepted Award: Andre Wyss, President 

Novartis Pharmaceuticals Corporation understands the need for a diverse workforce and pipeline to senior management, both for cultural competency in its product development and marketing and for the most innovative workplace solutions. The company has been actively donating and volunteering to help youth from underrepresented groups reach their full potential, including direct involvement from its most senior leaders. A few examples:

• Each fall, areas of the business and members of the Diversity & Inclusion Councils and resource groups participate in its Disability Mentoring Day. In 2011, more than 100 employees volunteered to participate in the event focused on disability awareness and career opportunities for more than 50 high-school students and 10 college students/veterans who attended. The keynote address was by Rohan Murphy, a double amputee who became a Division 1 wrestler at Penn State University.
• In April 2011, Novartis Pharmaceuticals Corporation brought nearly 150 students from 32 junior and senior New Jersey high schools to its East Hanover campus for its Annual Multicultural Teen Corporate Mentoring Program. Structured activities included a welcome from André Wyss; panel discussions with eight senior leaders; and a mock product-marketing challenge.

2012 DiversityInc Top Company for Supplier Diversity

Marriott International
No. 21 on the DiversityInc Top 50 list
Accepted Award: Arne Sorenson, President & CEO

Marriott has a long and rich history of creating community wealth by using local minority- and women-owned business enterprises (MBEs and WBEs) to build and service its hotels, especially in urban areas.

Marriott’s Tier I (direct contractor) third-party certified spend is 7.8 percent with MBEs and 9.5 percent with WBEs, more than 25 percent higher than the DiversityInc Top 50 average for MBEs and more than double the DiversityInc Top 50 average for WBEs. Marriott also spends 1 percent of its Tier I procurement with vendors owned by LGBT people, one of the highest percentages we’ve seen.

Supplier diversity is included in RFPs (requests for proposals), procurement-management compensation is tied to supplier-diversity results, and Marriott provides mentoring, financial education and financial assistance in the form of more favorable payment terms to its suppliers from underrepresented groups.

As an example, Marriott partnered with a U.S.-based woman-owned business to help grow her capacity and distribution channels to provide the design, production and fulfillment of training materials for its managed hotels around the world. Marriott also helped her share her expertise with other women-owned businesses.

Marriott has been honored by the Women’s Business Enterprise National Council, the Women Presidents Educational Organization and the U.S. Hispanic Chamber of Commerce for its supplier-diversity efforts.

2012 DiversityInc Top Company for Resource Groups

Dell
No. 26 on the DiversityInc Top 50 list
Accepted Award: Steven Price, Senior Vice President, Human Resources

In the past two years, Dell has placed a major emphasis on increasing employee participation in its resource groups, creating and expanding global groups, and using these groups to further its business.

Dell has seven global resource groups. Three have chapters outside of the United States: WISE (Women in Search of Excellence) in the Asian Pacific Japan region and Europe, the Middle East and Africa; PRIDE (for the LGBT population) in Brazil, and True Ability (Employees or Family Members of Employees with Special Needs/Disabilities) in Brazil.

The groups are available to all U.S. employees. Each group provides a charter of its strategy and mission annually, with a strong value proposition for its members, communities and Dell’s business goals. Programs include a Cross ERG Leadership Series and brown-bag sessions to help members learn software and social-media applications.

Business-relevant uses include:

• GenNext generational group providing feedback into product development and packaging. GenNext offered expertise on the launch of internal social-media vehicles.
• Adelante Latino group developed a process in which Spanish-speaking individuals deliver product briefings to prospective Latin American customers.
• The Asians in Motion group translated materials into languages for customers across Asia.
• The True Ability ERG has been engaged in product development for customers with disabilities.

Top Company for Executive Development
Kraft Foods
No. 7 in the 2012 DiversityInc Top 50
Accepted Award: Mark Clouse, President of the U.S. Snacks Business Unit

Talent development and the use of diversity training, resource groups and mentoring to maximize potential have been priorities for Kraft Foods in recent years—and the results are impressive.

Kraft’s Vice President of Diversity Jim Norman and retired executive Wayne Canty presented the company’s JumpStart program at our winter Innovation Fest! The initiative helps new managers, especially those from underrepresented groups, understand the corporate culture and the subtle signals of bias that can derail a career. For the video and presentation of this innovation, go to www.DiversityInc.com/innovationfest.

As the company undergoes a split this year into two separate entities, the resource groups and talent-development initiatives will be even more critical to its ability to connect with its increasingly multicultural consumer base.

Essential to that connection are its 10 resource groups, which are available to all U.S. employees, including hourly workers. The groups are used for recruitment, engagement, talent development, leadership training, marketplace research/connections, and diversity training. Resource-group members serve as facilitators for Kraft’s “The Power of Differences” internal training.

The groups’ success is measured through increased referral/rate of hires of people from traditionally underrepresented groups, retention of talent from those demographics, and increased promotion rates.

Almost three-quarters of its managers are involved in its formal mentoring program, which includes group mentoring, mentoring for new hires and traditional one-on-one mentoring. Seventy percent of the mentoring pairs are cross-cultural.

–Barbara Frankel

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Diversity leaders and HR experts from eight leading companies shared their proven strategies at our “Managing Relationships Between HR & Diversity Departments” diversity event held in New York City, revealing take-away best practices for maximizing organizational-behavior implementation and the successful navigation of corporate cultures.

Companies included: Sodexo, Toyota Motor North America, Novartis Pharmaceuticals Corporation, General Motors, KPMG, Accenture, Ernst & Young, and MasterCard.

Watch videos of the presentations in the player below. (For closed captions, press the CC button in the YouTube player.)

Click on the links below to view the presentations’ PowerPoint slides, available on DiversityIncBestPractices.com.

Managing Relationships Between HR & Diversity Departments

Should Diversity Report to HR?
Dr. Rohini Anand, Senior Vice President and Global Chief Diversity Officer, Sodexo

Working Collaboratively With HR
Recruitment & Talent Development: Dana Green, National Manager, Corporate Diversity & Inclusion, Toyota Motor North America

What HR Really Needs to Succeed
Rhonda Crichlow, Vice President and Head, U.S. Diversity & Inclusion, Novartis Pharmaceuticals Corporation

Navigating Large Organizations
Cindy Brinkley, Vice President, Global Human Resources, General Motors

Can Diversity & HR Leave Room for Organizational Development?
Dr. Walter McCollum, Senior Director, Organizational Development, Sodexo

HR, Diversity & Mentoring
Dana Foote, Partner, Member of Diversity Advisory Board, Co-Chair, Abilities in Motion Network, KPMG

HR, Diversity & Resource Groups
Pedro Suriel, Senior Executive, Accenture

HR & Communications
Karyn Twaronite, Partner, Americas Inclusiveness Officer, Ernst & Young

HR & Legal—Setting Goals
Donna Johnson, Chief Diversity Officer, MasterCard Worldwide

Panel on How to Build Synergy Between Diversity Departments & HR
Dr. Rohini Anand, Sodexo; Dana Foote, KPMG; and Pedro Suriel, Accenture

The post Managing Relationships Between HR & Diversity Departments appeared first on DiversityInc.

Novartis reports that the strategy led to more than $2 million in savings on market research and helped it reach more than 30 million consumers last year. Employee participation in the resource groups has also increased substantially. Novartis Pharmaceuticals Corporation is No. 13 in the 2012 DiversityInc Top 50.

Watch the presentation by Steve Millerman, director of cross cultural marketing for Novartis Pharmaceuticals Corporation, below to learn more about these resource groups. Presentation slides are available on DiversityIncBestPractices.com.

View the other Innovation Fest! presentations from our event at www.diversityinc.com/innovationfest.

For more best practices on resource groups, view our Diversity Web Seminar on Resource Groups: Connect With Customers for Top Sales Results.

The post How Resource Groups Saved This Pharma $2 Million appeared first on DiversityInc.

Data from the DiversityInc Top 50, as detailed in our exclusive Resource-Group Report, shows that these resource groups are crucial to business success with multicultural communities.  When used effectively, they increase diversity in recruitment and promotions as well as improve overall employee engagement. Resource groups also are used increasingly to reach customers, clients and vendors and to help in product development.

Here, DiversityInc provides the best of our resource-group success stories, exclusively available to DiversityInc Best Practices subscribers, that offer case-study examples to help you replicate their significant results.

Resource Groups Web Seminar
One culturally competent word from American Express’s Latino group resulted in a new bestselling product and significant revenue.

Our First Innovation Fest! 10 Companies Use Diversity to Drive Change
Novartis saved millions of dollars in research when it relied on its own resource groups, while McGraw-Hill’s digital group boosted employee productivity and cross-departmental collaboration.

How Kraft Increased Promotions of Women in Sales by 39%
One of 12 case-study examples: Kraft shares how to leverage employee-resource groups to increase representation of women, especially in senior management.

Ways to Use Resource Groups
JCPenney’s Asian resource group reveals that a simple cultural custom at the point of sale can improve customer satisfaction and loyalty.

Why Resource Groups Are Business-Resource Groups
Latino and African-American resource groups enhanced WellPoint’s quality of service to consumers with an increased awareness of family models.

For more best practices and case studies, read our other resource-group articles and watch our web seminar on resource groups, featuring insights from MasterCard and Aetna.

The post Top 5 Ways to Use Your Resource Groups appeared first on DiversityInc.

Novartis Pharmaceuticals Corporation (No. 13 in the 2012 DiversityInc Top 50) is a company that both globally and in the United States has made a major effort to end discrimination in drug trials and increase availability and utilization of its life-saving products to emerging markets. Internally, the company has developed programs in diversity management to give women more opportunities for P&L jobs.

The current challenge for Crichlow, who started in November, is to increase the visibility and results of the company’s diversity-management efforts as Novartis Pharmaceuticals Corporation, US General Medicines, undergoes a major restructuring.

“I want to move the needle at a time when there’s some discomfort,” she says. “As a result of the realignment, we’re going to be losing some associates, and I need to keep the focus on diversity and inclusion.”

A Window of Opportunity

For Crichlow, who joined the company in 2006 as executive director of philanthropy and community development, taking over the top diversity slot is both a personal and an organizational fit.

“It’s an opportunity to be involved in something that helps me understand the business and drives goals and objectives throughout the organization,” she says.

This career path wasn’t always that apparent to her. When her predecessor, Marilyn Priestley, announced plans to retire last year, Crichlow didn’t think of applying. “Diversity wasn’t something on my radar screen,” she says. “I was more linear in my thinking of what I knew and was thinking more about legal opportunities.”

But when approached by senior leadership, she saw the potential. Both Priestley and her predecessor, Michelle Gadsden-Williams, had a significant impact on the organization, and President André Wyss is a major diversity proponent. Crichlow’s background—as a lawyer who is able to reach consensus across broad constituencies and as a corporate leader who handled grant-making and community renewal—gives her the platform to take diversity management to the next level.

Her Unique Qualifications

Crichlow has a deep understanding of what motivates people to succeed, what legal barriers exist and how to effect organizational change.

She grew up in the Washington, D.C., area where her parents, who had moved up from the South, struggled to make ends meet. Neither of her parents finished high school; her dad was in the military and then worked at the Veteran’s Administration while her mother was a homemaker.

Crichlow was an excellent student. Her mother pushed her to get an education. She attended The George Washington University, double majoring in psychology and sociology, but she later became interested in policy and societal improvements. She attended Duke University and received a graduate degree in public policy. Pursuing law school seemed a natural next step, and she attended the University of Virginia Law School.

She started her career as a tax lawyer, enjoying the intellectual rigor and the policy component. But she longed “to have a career that would allow me to come to work and leave each day recognizing I had made a contribution to helping others.”

She became a legal consultant for the Office of the Monitor, which was overseeing the consent decree in the nationwide class action brought by Black farmers alleging racial discrimination in the U.S. Department of Agriculture’s farm credit program. “It was one of the most rewarding things I’ve ever done. The petitions you would review were heart-wrenching. So many of these folks just lost their entire livelihood,” she recalls.

She also did a lot of volunteer work, including grant making, and realized she was drawn to philanthropy. A mentor led her to Novartis, where she is using her experience, skills and passion for change to make a significant difference.

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