Gotham's key business strategies
were to:
- Establish a presence in three new markets (two
commercial and one consumer) and build market share.
- Increase
R&D
and manufacturing productivity to reduce time-to-market
by at least three months, consistent with the trend
toward shorter product life cycles.
- Increase R&D and marketing innovation
to provide new features popular with the intended new
customers. Simultaneously, Gotham expected the new
features would help retain current customers.
- Increase retention of key
people in specific types of jobs that were in high demand
and where Gotham was losing people to the competition.
Given
these priorities, the next step was to understand the
workforce and work environment changes needed to help
achieve those key business priorities. The VP conducted
an assessment to define appropriate initiatives and metrics.
With the idea in mind of designing accountability into
the diversity strategy, the VP interviewed the CEO and
senior leadership for input about the business strategy,
workforce and work environment. The resulting themes
guided the rest of the work.
Somewhat to the VP's surprise,
almost everyone spoke openly and at length. They were
happy to see someone asking for their input! This approach
garnered valuable information. It also demonstrated the
VP of Global Diversity's capacity to work as a business
partner.
Senior leadership's challenge, though,
was rethinking diversity and inclusion. The approach made sense. They
needed the right workforce and work environment to achieve
their business objectives. These conversations suggested
diversity and inclusion might contribute directly to
their business results.
Choosing to Accept Accountability
At this point, the VP
of Global Diversity had an "aha
moment" about
his role in "marketing" and "selling" Gotham's
diversity strategy. What? Diversity and inclusion are
not about "building a better mouse trap" and
hoping they will use it? It takes active, targeted marketing
and sales to get people across the company to accept
their personal accountability for any strategy.
Faced
with how to make this happen, it always helps to go back
to basics. The VP consulted the dictionary and found
accountability described as "an
obligation or willingness to accept responsibility or
account for one's actions."
Getting employees to
choose to accept accountability meant appealing to their
sense of either obligation or willingness. Practically
speaking, this leads to the two fundamental equations
of accountability:
Obligation = wallet
Willingness =
ego
Both work, but the compensation budget for annual
bonuses isn't always big enough to make a difference
in everyone's compensation. Ego, on the other hand, is
more practical. We certainly can appeal to everyone's
ego, their sense of self and self esteem.
The VP of Global
Diversity thought about putting this into action. One
part of the strategy called for each business unit to
increase productivity and/or innovation through diversity and
inclusion. The metrics were percent increases in the relevant
employee survey questions and whether the unit achieved
best-in-class performance.
As we worked this process, how
to design accountability into this part of the strategy
became clear — appeal to ego through the leaders'
and managers' zest for competition. The VP created a quarterly
report that compares the progress of all the units.
The
CEO would send a copy of the report to each business unit
leader with a note of encouragement. Some read, "Thanks
for your leadership in helping make this important change
happen." Some read, "Your unit seems to be lagging
a bit. This objective is important to me personally. I
look forward to your renewed focus and to stronger results."
Which
would you prefer to receive? Would you be motivated to
get the first one? Effective up-front design of metrics
and reporting helps ensure that people choose to accept
accountability for achieving results.
A Potential Champion
and Role Model Emerges
Now that planning was in action,
the question arose, "How do I make this real?" The
VP realized he needed a business unit leader who could
serve as a champion and role model. The VP of Research & Development
(R&D) was probably the most skeptical member of the
senior leadership team.
When they met he said, "R&D
must improve its productivity and ability to innovate.
This is crucial to providing the ongoing rapid introduction
of new products so important to the company's continued
business success. Can you help me achieve this?"
As
they spoke, three core needs surfaced:
- Some members of
the R&D leadership team had difficulty relating to
members of the highly diverse R&D team.
- Parts of the
organization were experiencing conflict manifested as
ineffective working relationships.
- Product development teams seemed
to discard novel ideas and focused on the "tried
and true."
The VP of Global Diversity observed, "The
first two needs you mentioned are about managing effective
relationships in diverse teams. The third one relates to
how a diverse team discusses ideas and makes decisions."
These
are excellent examples of how the right diversity and inclusion
initiatives will address critical business issues. He provided
more background and explained that R&D's
excellent work achieving a diverse workforce had expanded
the pool of knowledge, skills, life experience, perspectives
and expertise. Productivity and innovation are about making
effective use of this capacity.
He emphasized the importance
of building team effectiveness, and using interpersonal
skills and decision making to drive inclusion. By building
on everyone's ideas through creative problem solving the
team could generate more effective business results.
The
VP of R&D said, "I hear you. How do we do it?" The
VP of Global Diversity explained, "We develop individual
intercultural competence to effectively understand and
communicate with people of different backgrounds. We have
validated instruments available to measure individual and
group fundamental worldview orientation to cultural differences,
or how they react to and work with people who are different."
The VP of Global Diversity suggested they address the first
two needs. First, they decided to measure the intercultural
sensitivity of each member of the R&D leadership team.
Then, by providing developmental coaching and feedback tailored
to their needs, they could build competence at reacting to,
understanding and working with team members of differing
cultural backgrounds.
Second, for the team members experiencing
conflict, they decided to do something similar except the
feedback would be to the group rather than to individuals.
They agreed to focus on building the team's ability to work
effectively as a team. This approach was more cost effective
than providing individual feedback and the group would still
benefit from the experience and learning.
Third, they identified
that the product development team needs were a bit different. "My
sense is that these folks are comfortable with difference
although they need some tools to improve their decision making," explained
the VP of Global Diversity.
For this group they assembled
a tool kit that each team leader could use to conduct a meeting.
The team would watch a video about how other teams have worked
well together and achieved great results. The team leader
would also explain what diversity and inclusion means here
at Gotham. The group would then initiate action planning
to come up with specific ways they would change their team
discussions and decision-making processes to better include
everyone's perspectives.
The VP of R&D admitted, "I'm
still a bit skeptical although I've got to admit this sounds
promising. You're focusing on my business needs and you're
sensitive to expense. I'd like to give this a real try. Come
to my next staff meeting. I'll introduce the subject and
what we need to accomplish. I'll also summarize our conversation
today and ask you to give more details. We'll get my team
engaged in deploying this throughout R&D. I expect, though,
to see some meaningful results within a year. OK?"
The
VP of Global Diversity was absolutely delighted. Here was
a budding champion. This process and the resulting success
stories could become the core of his company-wide communications
plan. Other members of the senior leadership team would be
calling asking to be next.
In Conclusion
The VP of Global
Diversity reflected on all that had been accomplished. Past
diversity efforts had raised awareness very well although
they had no clear benefit to business results. Surveys showed
little lasting impact for employees. Taking this into account,
he took an entirely different approach — starting from
business objectives and working back to identify the appropriate
areas of focus for a new diversity strategy. Initial results
seemed promising.
Leaders were beginning to think of diversity,
inclusion and corporate culture in entirely new ways. They
seemed to "get" the link to business. Leaders were
engaged. So were middle managers. This seemed sustainable,
given ongoing communications and a commitment to stay aligned
with evolving business needs.
Can this work in your organization? In my experience the
answer is a resounding YES. Shifting your own and your leadership
team’s perspective about diversity and inclusion to
think of it as a core business initiative may be challenging.
The potential benefit to your business and to everyone in
the company is enormous.
--------------------------
Endnotes
1. Business-AlignedSM
is a Service Mark of MDB Group, Inc.
2. This is a case study
of a hypothetical global corporation based upon an amalgam
of the author's professional experience.
3. Merriam-Webster's
Collegiate Dictionary, Eleventh Edition, 2004.
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