2009diversityconference hubbard diversity scorecard ... - diversity... · source: the diversity...
TRANSCRIPT
A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 1
The Diversity Scorecard: How to Drive Measurable Performance and Results
Dr. Edward E. Hubbard• 10/19/2009
Hubbard & Hubbard, Inc. © 2009 All Rights Reserved. 1
Copyrights
• Copyright © 2009
B Ed d E H bb d Ph D d H bb d & H bb d• By Edward E. Hubbard, Ph.D. and Hubbard & Hubbard, Inc.
• Organization and Human Performance Consulting Corporation
• 1302 Holm Road• Petaluma, CA 94954
• All rights reserved. The reproduction or utilization of this work in any form or by any electronic, mechanical or other means, known now or hereafter invented including xerography
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known now or hereafter invented, including xerography, photocopying and recording and in any information storage and retrieval system, is forbidden without the written permission of Hubbard & Hubbard, Inc. This manual may not be changed or reprinted in any other form without written permission of Hubbard & Hubbard, Inc.
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A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 2
Introduction• This workshop is designed to help you
learn and determine what counts when measuring diversitymeasuring diversity
• All organizations, whether profit or non-profit, depend on their ability to get the best possible return on dollars invested.
• The diversity measurement approach used in this workshop will be both practical and experiential Most of our
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practical and experiential. Most of our work will involve using basic arithmetic.
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Objectives
• Learn how to select the right “mix” of measures for your Diversity Scorecard
• Understand some important considerations for linking your scorecard to strategy
• Determine what measure you might use in a four-stage diversity change model
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model• Examine a sample Diversity Scorecard
and Its Metrics
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A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 3
Building the Diversity Measurement Business Case
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Business Case
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Requests for Measurement of ROI is Increasing
• Budgets are under increasing review• Congressional mandates on federal agenciesg g• Competitive pressures on costs and
productivity in the private sector• Accountability in all functions is increasing• Managers and others are asking: “What’s the
impact of our efforts in diversity? Do they add value?
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• Top executives are requiring ROI information
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A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 4
Diversity Definitions
• Diversity> “A collective mixture characterized by> A collective mixture characterized by
differences and similarities that are applied in pursuit of organizational objectives” (Dr. Roosevelt Thomas, Redefining Diversity, 1999)
• Diversity Management> “The process of planning for, organizing,
di ti d ti th ll ti
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directing, and supporting these collective mixtures in a way that adds a measurable difference to organizational performance”(Dr. Edward E. Hubbard, How to Calculate Diversity Return on Investment, 1999)
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Sample Diversity Mixture Categories
• Workforce Diversity (Group and Situational Identities)
> Race, Gender, Ethnicity, Physical Ability, Sexual Orientation, Age, y y y gParental Status, Economic Status, Geographic Background) etc.
• Behavioral Diversity> Work Styles, Thinking Styles, Learning Styles, Communication
Styles, Aspirations, Practiced Beliefs/Values, Attitudes and Expectations
• Structural Diversity> Cross-functional Teams, Alliances and Interactions across Levels,
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Hierarchy, and Divisions, Teamwork, Acquisitions, Mergers, etc.
• Business Diversity> Diverse Customer Markets, Supplier Diversity, Global Diversity
Strategies, Diverse Community Relations, Productivity, Customer Service, Cycle Time, Innovation, Labor Market Realities, Societal Expectations, Business Cultural Norms, etc.
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A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 5
Diversity and Service Profits
G thEmployee Loyalty
Customer Loyalty
Growth &
Profits
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Employee loyalty is related to customer loyalty, which in turn is related to company growth and profits. Source:Service Profit Chain, Haskett, Sasser, and Schlesinger, 1997
Diversity & Performance
• Sears found that every 5 percent improvement in employee attitudes
1 3drives a 1.3 percent improvement in customer satisfaction and a .5 percent growth in store revenue.
• This accounted for $200 Million in a year
• Source: (HBR Article: Rucci Kirn and Quinn 1998)
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• Source: (HBR Article: Rucci, Kirn, and Quinn, 1998)
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A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 6
Cultural Competence and High Performance
• Research by Kotter and Haskett defines strong cultures that have a significant impact on a firm’s long-term economic performance as those that include at leasteconomic performance as those that include at least these elements:
• Emphasize all key managerial constituencies (customers, stockholders and employees) and leadership from managers at all levels concerning them
• Emphasizes goal alignment among all employees• Emphasize shared values and behaviors among all
employees
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• Emphasize involving people in decision making and recognizing their contributions
• Source: J. Kotter and J. Haskett, “Corporate Culture and Performance”
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Cultural Competence and High Performance
• Research by Kotter and Haskett found that over a 12 year period, companies with high performance cultureswith high performance cultures outperformed their more average peers by:
• Four times in revenue growth• Eight times in employment growth• Eleven times in stock price growth
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• Seven hundred and fifty times in net income growth
• Source: J. Kotter and J. Haskett, “Corporate Culture and Performance”
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A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 7
Diversity is a Dollars & Cents Issue
• Exercise: What is the Total Purchasing Power By Diverse yGroup?
• Asians $_______________• Hispanics $____________• African Americans $_____• Native Americans $______• Gay and Lesbian $______• People with Disabilities $
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People with Disabilities $_
• Write in your estimates
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Linking Diversity to Organizational Strategy
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A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 8
H&H Diversity Strategic Theme Worksheet Multicultural Product
DevelopmentStrategy Map Diversity Scorecard Metrics Action Plan
Diversity Objective
Measure Target Diversity Initiative Budget
Financial Perspective
•Grow Revenue from New Products
•Annual Revenue Growth in Target
+25%30%
•XX•XX
R
Adapted from the Book: The Diversity ROI Analytics Model by Dr. Edward E. Hubbard, Global Insights Publications, Petaluma, CA, 2008
pSegment•Percent Revenue from New Multicultural Products
Customer Perspective
•Satisfy Customer Needs for State-of-the-Art Capabilities
•Multicultural Customer Retention•Share of Account
80%40%
•Multicultural Relationship Management•Gain Sharing Program
$AAA$BBB
Internal P ti
•First to Market•Time to Market
75%9 Months
•Annual Multicultural Product Expo Initiative
$CCC$DDD
Revenue Growth
Innovative Products
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Perspective•Accelerate New Multicultural Product Development
•Time to Market 9 Months Product Expo Initiative•Development Cycle Time Reengineering
$DDD
Learning & Growth Perspective •Acquire, Develop, and
Retain Strategic Skills
•Specialized Competency Availability•Key Diverse Staff Retention
100%95%
•Competency Model•New Hiring & Retention Program•Diversity Training for Managers & Supervisors•Benefits Program
$EEE$FFF$GGG
Total Budget $HHH
World-Class Internal Product
Development
StableHigh-Talent Workforce
What’s Driving the Need for DROI Accountability in Your Organization?
• Key Business Accountability Drivers
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A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 9
Causal Model of Diversity Climate, Performance, and Results
Product / Process /
Environ-ment and Market Demands
Job Design
Managerial Behavior Org’l
Climate•Aroused (motivated) Behavior
Performance•Results
•Market Impact
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Business Goals / Strategies / Systems
•From Book: How to Calculate Diversity Return On Investment (DROI) -Dr. Edward E. Hubbard, 1999
Identifying What to Measure
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A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 10
Measurement Focus Areas
• Creating A Diverse Work Force% R t ti
• Valuing A Diverse Work ForceC lt V l d Wk lif• % Representation
• % Turnover• # Job offers/Refusals• Length of Stay/tenure• % Voluntary
Terminations• $ Recruiting Costs
• Culture, Values, and Wk-life - % Favorable Response
• # Language of the Workplace - Multilingualism
• Types of workers - part/full • % Utilization of work-life
benefits/ initiatives• Leadership
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$ Recruiting Costs Leadership behaviors/practices
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Measurement Focus Areas
• Managing A Diverse Work Force
• # Promotions
• Leveraging A Diverse Work Force (utilization)
• % Customer Satisfaction• # Promotions• # Movement of Career
Paths• Cutbacks/hiring freezes /
downsizing/mergers/global diversity/acquisitions
• # Succession Planning• Performance Reviews• # Reasonable
• % Customer Satisfaction• # Market segments - sales
marketing opportunities• Community/ corporate image• % Success/failure in foreign
cultures and markets• # Innovation/creativity • % Supplier diversity utilization
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# Reasonable Accommodation
• $ Litigation Costs• % Employee Satisfaction
pp y
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A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 11
Sample MetricLINK® Automated Calculations
• Revenue Factor (OE) = Revenue/Total FTE
• Diverse Candidate Accession Rate = Diverse Add Hires +
• Diversity Survival and Loss Rates = Survival: 18mos Stayers/Hires for period
• Diverse Hire Performance Impact = Avg Job Perf Rating% + % Promoted w/in 1 year
% R t i d ft
Replacement Hires / Head Count
• Human Capital Value Added = Revenue Gen - (Operating Expense -[Compensation Cost + Benefit Costs])/Total Group FTE
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+ % Retained after 1year/3
• And a wide range of additional metrics…..
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Critical Success Factor Audit Map
Diversity Initiatives / Objectives Critical Success Factor Key Indicator MetricsGraphic MetricCSFCSFCSF
Name of the Initiative / Objective
Metric
Graphic
Metric
Metric
Metric
CSF
CSF
CSFCSFCSF
Number and % of ChildrenEnrolled
Percent of Utilization Quality of Care Rating %
Employee Satisfaction
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Worklife Balance: Day Care Services Focus Group Feedback
Absenteeism Rate %
Enrolled
A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 12
Build Your Own Scorecard
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Diversity Scorecard Exercise
Creating Valuing Managing Leveraging
Your Measures Your Measures Your Measures Your Measures
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A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 13
Source: The Diversity Scorecard by Dr. Ed Hubbard
Financial ImpactTo succeed financially,
how should we appear to our
shareholders?”
Objectives
sMeasures
TargetssInitiatives
Diverse Customer / Community PartnershipTo achieve our
vision, how should we
appear to our diverse
customers and
Objectives
sMeasures
TargetssInitiatives
customers and the
community?
Workplace Climate / CultureTo motivate
our workforce, how will we
sustain a productive
work climate?
Objectives
sMeasures
TargetssInitiativesVision
and Strategy
Workforce ProfileTo meet customer
needs, what
should ourworkforce
reflect?
Objectives
sMeasures
TargetssInitiatives
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Learning and GrowthTo achieve our
vision, how will we sustain our ability to change and improve?
Objectives
sMeasures
TargetssInitiatives
Diversity Leadership CommitmentTo achieve our vision,
how will we sustain
leadership accountability?
Objectives
sMeasures
TargetssInitiatives
The Diversity Change Measurement Strategy
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A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 14
Hubbard Diversity 9-S Framework
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Automated Diversity Measurement and Planning
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A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 15
MetricLink® - Automated Performance Measurement and Tracking Software
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Sample Diversity Value-Added Report
• Human Capital Dashboard
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A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 16
Sample Diversity Value-Added Report
• Cross-Training Impact AnalysisAnalysis
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Sample Diversity Value-Added Report
• Turnover Reduction Impact Analysisy
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A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 17
Sample Diversity Value-Added Report
• Workforce Culture Analysis
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Creating a Diversity Scorecard Will Allow You To…..
• Assess progress, urgency, and impact• Increase awareness, skill, and productivity
Impro e str ct res processes and s stems• Improve structures, processes and systems• Discontinue / expand initiatives• Approve diversity initiatives/projects (if pilots)• Build database on diversity results• Enhance management understanding and support• Improve measurement skills of diversity staff • Achieve corporate, business unit and individual goals
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p , g
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A Presentation by Dr. Edward E. Hubbard
Copyright (c) 2007 by Hubbard & Hubbard, Inc. All Rights Reserved. 707-763-8380 Confidential and Proprietary Property of Hubbard & Hubbard, Inc. 18
How to Reach Us
• Web: www.HubbardNHubbardInc.com•• Hubbard & Hubbard Inc• Hubbard & Hubbard, Inc.• International Organization and Human Performance Consulting
Corporation• 1302 Holm Road• Petaluma, CA 94954• Tel. 707-763-8380• Fax: 435-674-1203
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