v4 news 20 nov dec 05 - the conference board · diversity consulting. 4 5. ellen galinsky,...

In this IssueDiversity Conference ...................................................................... 1

New Research• Managing Mature Workers ...................................................... 3• Evaluating Corporate Citizenship

Performance ................................................................................................................... 7

Council News• Financial Executives and Controllers .......... 4• Corporate Strategy ................................................................................. 4• Corporate Communications ......................................... 5• Purchasing and e-Procurement ......................... 6• Corporate Responsibility and

Sustainability ............................................................................................................ 7

Upcoming Events

• EU Conference on the Business

Case for Diversity ......................................................................................... 8• Sustainability Forum ........................................................................... 8

1. Melissa Lamson, Diversity Expert, SAP AG2. Kene Umeasiegbu, Group Inclusiveness Manager, Cadbury Schweppes,

moderating a panel session on diversity of age, ethnicity and sexual orientation at the 6th Work-Life and Diversity Conference in Paris.

Confronting the Issues

Confronting the Issues

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DiversityDiversity

How can we run an economy within the old paradigms of work if the number of pensioners is higher than of those in employment? How do we deal with the cultural and social challenges posed by increasing numbers

of immigrants in Europe? How do we review our benefit schemes in the light of non-traditional family structures?

These were some of the questions posed by Kene Umeasiegbu, Group Inclusiveness Manager, Cadbury Schweppes, introducing a session entitled: “Having the courage to confront the issues” at the 6th annual conference on Work-Life and Diversity, held in Paris on 19-20 October. A panel of three speakers focused specifically on the issues of age, ethnicity and sexual orientation.

Age DiversityThe ageing workforce is high on the European social policy agenda, said Robert Anderson from the European Foundation for the Improvement of Living and Working Conditions, an EU agency charged to provide information for policy-making, specifically at EU level. He observed that there is a momentum for change in some organisations, but attitudes and commitment must also change. It is not enough to change exit and retirement policies. There needs to be investment in a changing workforce. Age management demands new models of working, learning and caring over the life course, and companies need to develop integrated strategies.

Volume 20 • Number 11/12 • November/December 2005

Board EuropeA newsletter for members of The Conference Board in Europe

www.conference-board.org 1

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DiversityA specific example of such a stra-tegy was provided by Sharon Harris, UK Head of Diversity, Deutsche Bank. She pointed out that, for new products and services to be successfully created, the changing age demographics of the bank’s customers needs to be reflected in the age diversity of its employees.For Deutsche Bank, age diversity includes all age groups, not just those aged 50+. Knowledge management is an integral part of teamwork, based on the assumption that younger and older workers can learn different things from each other. Knowledge transfer (of client relationships, for example) between experienced and junior employees is critical for busi-ness success, and life-long learning is an integral part of Deutsche Bank’s personal development concepts. The bank has developed a scheme whereby retiring employees can continue to work on a consultancy or part-time basis. This ensures that their valuable experience and client knowledge is not lost.

Ethnicity

Surinder Sharma is National Director for Equality and Human Rights, Department of Health and the National Health Services (NHS), UK, which employs 1.5 million people, of which 200,000 (14%) are from black and minority ethnic communities. The NHS “wields huge economic muscle,” being the biggest purchaser of goods, facilities and services in the UK and often the largest local employer. Surinder believes that the workforce

must reflect the diversity of those it serves in order to provide appropriate services and to promote equality. He stressed that “commitment to diversity must be part of the base values of your organisation, or they will always be on the periphery.”

Sexual OrientationMichael Stuber of Mi-st European Diversity Consulting, referred to research data which shows that sexual orientation receives the lowest attention of all six core dimensions (the others being gender, age, disability,

racial or ethnic origin, religion or belief). Michael made the point that “Everyone has a sexual orientation, but none of these are chosen. Heterosexual assumptions prevail in the work place and market place.” Sexual orientation shares common issues with the other diversity dimensions: prejudices on a personal level, exclusion on an organisational level, lack of information and awareness, reluctance to accept “special treatment”, and the fact that the issue is mainly driven by interest groups. However, some companies are tackling the issue head-on and running employee networks, internal events, outreach programmes, marketing activities and product advertising campaigns.

Diversity Drives Innovation“Why is innovation so impor-tant?” asked keynote speaker Frans Johansson, author of The Medici Effect, named one of the top ten best business books of 2004 by Amazon, “because the world is changing fast and every company is facing increasing pressure.” Frans drew the audience’s attention to a forecast by PricewaterhouseCoopers

that 70% of today’s manufacturing sales will be obsolete by 2010. The best ideas for new products often come from innovative and unu-sual connections between different fields, cultures and industries, and these connections come about when diverse teams are working together. He drew analogies with the Medici family, who sponsored creative individuals and brought them to Florence, creating the initial spark for the Renaissance movement.

Facing the FutureThe closing session at the conference debated the question “Can we find a business model that delivers business success and quality of life?” from both a European and US perspective. Enrique Fernandez from the European Foundation for the Improvement of Living and Working Conditions, underlined the long-hours culture in some EU countries which is giving rise to stress, health problems and increased costs for companies.

Ellen Galinsky, Co-Founder and President of the Families and Work Institute in New York, spoke of growing

3. Surinder Sharma, National Director for Equality and Human Rights, Department of Health and the National Health Services (NHS), UK.

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4. Michael Stuber of Mi-st European Diversity Consulting.

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5. Ellen Galinsky, Co-Founder and President of the Families and Work Institute

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6. Lively interchange of ideas, inside and outside the main conference room.

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dissatisfaction in the workplace, with 89% of employees agreeing somewhat or strongly that their jobs require them to work very hard and/or they never seem to have enough time to get everything done. A business model that can deliver business success and quality of life requires shared responsibility between the organisa-tion, managers and employees.

Award Presentations

During the conference dinner hosted by Michelin at the Château de Chantilly, the European Work-Life and Diversity Council presented its second annual Media Award to ARTE, the Franco/German cultural television channel, for having most advanced the cause of work-life management and/or diversity in the European public

forum. Dr Hans Walter Schlie, ARTE’s Director for Strategic Development and Coordination, is seen here accepting the award.

The Council also presented a Lifetime Achievement Award to Rhona Rapoport, former director of the Institute for Family and Environmental Research in London. For over 20 years, Rhona worked as a consultant to the Ford Foundation and has published numerous papers and books. She is a co-author of The Myth of Work-Life Balance, soon to be published by Wiley. Rhona (below, right) received the award from Edith Jonkers (left), Manager of Workforce Diversity, IBM EISC. Gisela Erler (centre), Work-Life and Diversity Conference and Council Co-Director, looks on.

Managing Mature Workers

The rapidly ageing global workforce is both a challenge and major opportunity for corporations, according to a recent report by The Conference Board. The study is based on the findings of a working group of executives from such major companies as BP America, Ernst & Young LLP, Ford Motor Company, IBM, JP Morgan Chase, and Shell International.

Some 64 million baby boomers (over 40% of the US labour force) are poised to retire in large numbers by the end of this decade. In industries already facing labour and skills shortages, forward-thinking companies are recruiting, retaining, and developing flexible work-time arrangements and/or phased retirement plans for these workers (55 years of age or older), many of whom have skills that are difficult to replace. Such actions are putting these companies ahead of competitors who view the ageing workforce largely as a burden putting strains on pension plans and healthcare costs.

“The maturing workforce is often seen as an issue to be dealt with instead of a great opportunity to be leveraged,” says Lorrie Foster, Director of Research Working Groups at The Conference Board. The report recommends a series of strategic ideas and actions to foster effective management of any “retirement risk” to the business posed by a potential exit wave of mature workers.

Managing the Mature WorkforceReport 1369-05

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8. Participants shared experiences with experts at the “Good Practices Bazaar”

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7. From left to right: Britt van den Berg, Director Global Diversity and Inclusion, Philips International; Patricia Bussey, Director, Diversity and Inclusion, Sara Lee/DE International; and Sweet Joy Hachuela, Consultant, The Conference Board.

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Copenhagen, Denmark

15-16 September

The theme of the meeting was building a

strong world class finance function, and

members shared best practices in how

they make best use of available talent.

Graham Sparks, Talent Manager- Global

Finance for Shell gave insights into

Shell’s approach to developing talent.

The company believes that it is the

responsibility of the individual to develop

his/her skills and ultimately to manage

their own career, obviously under the

guidance of managers and the human

resource talent review process.

Clive Wright, Partner at Mercers Human

Resource Consulting Practice, spoke on

the topic of cross border

personnel development

and practical issues.

He explained why com-

panies felt international

experience was valuable.

There are several busi-

ness needs for making

international transfers, ranging from

developing mid/senior employees to

exerting adequate management con-

trol. He talked about different types of

assignments from short-term to per-

manent and the stages in between.

Members learned about the “balance

sheet” package to calculate benefits and

compensation to maintain expatriated

employees at comparable levels while

on assignment.

Council host was A. P. Møller Maersk.

Oscar Rosendahl, the company’s

Executive Vice President, Human

Resources, gave an overview of how the

company manages its human resources

with emphasis on the finance function.

Berkhamsted, UK

8-9 September

The September meeting took place at

Ashridge Management College, a leading

business school. Andrew Campbell,

Director of the Ashridge Strategic

Management Centre, spoke about his

ideas on seeking new business growth,

contained in the book, The Growth Gamble,

which he co-authored with Robert Park.

More and more corporations are

experiencing a ‘growth gap’ when the

natural growth of their core businesses is

not enough. Nearly every company tries to

create new legs for its mature portfolio;

yet as many as 99% of companies fail to

create successful new growth platforms.

The Growth Gamble examines the

toughest challenge in management -

finding, getting into and growing new

businesses. It contains practical tools to

help managers make the right choices

and enter only the most promising and

profitable sectors for their company’s

strengths. The Traffic Lights Toolkit is a

powerful screening and strategic

thinking tool that helps managers

identify real opportunities and learn to

“only Go On Green.”

Andy Morrison, Global Director, New

Business Development, BOC plc,

addressed the practical challenges of

implementing the lessons from The Growth Gamble, with particular reference to the

approaches currently being taken by BOC.

A review of corporate venturing was

given by Andy Gaule, Head of the Henley

Incubator. He talked about trends,

expected returns and remuneration

models for executives, and was joined

by Phil Renshaw in his discussion of the

approach and experience of Unilever.

Members also learned about the Philips

Technology Incubator from Jelto Smits,

and the results of a study on innovative

companies and leaders from Tim Jones

of Innovaro.

Building a World-Class Finance Function

Financial Executives and Controllers

The Growth GambleCorporate Strategy

11. Members of the European Council of Finance Executives and Controllers at their meeting in Copenhagen.

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12. Ashridge Management College, Berkhamsted, UK

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13. Corporate Strategy Council members pictured outside the college. Andrew Campbell, Director of the Ashridge Strategic Management Centre, is second from the right. Behind him is Joachim Heins-Bunde of SGL CARBON AG, Council Co-Chairman.

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Council News

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Weinheim, Germany

13-14 October

When Freudenberg became a decen-

tralised company in 1996, building

an organised structure for its many

brands was not one of the company’s

top priorities. Over the last few years,

it has been necessary to clearly define

the relationship between the corpo-

rate brand and the various sub-brands,

creating order and clarity from chaos.

Wolfgang Orians, Freudenberg’s Head

of Corporate Communications, and

Iris Wilke, Corporate Brand Manager,

described how Freudenberg is devising

and implementing an effective brand

architecture best suited to this decen-

tralised, international company.

Dirk Neubauer of Henkel told a similar

story. He said that the company’s

750 product brands were “all over

the place”, and there was a need to

re-create a strong corporate “umbrella”

brand to convey the company’s identity.

The corporate slogan “Henkel – a Brand

like a Friend” positions the company as

a brand that customers and consumers

can trust, and conveys the message

that Henkel’s products can enhance

people’s lives.

What can you do to ensure that

consumers see your brand differently

from those of your competitors? The

challenge for UPS, when it changed its

logo and brand identity in 2003, was to

convey the new company personality

behind the brand, reflecting the fact that

UPS had become not only the world’s

largest package delivery company,

but also a leading global provider

of specialised transportation and

synchronised logistics services. Gerda

Hammel, Internal Communications

Manager, UPS Europe, explained that

the new brand positioning was founded

on the company’s core attributes:

intelligence, innovation, human spirit and

operational excellence, all underlining

the key activity: “Synchronising the

world of commerce.”

New Media Tools

Accredited communication practitio-

ner Neville Hobson said that the new

media tools (blogs, wikis, RSS, pod-

casts, videocasts/vlogs, moblogs and

MMS) all serve to facilitate communi-

cation, engagement, transparency and

trust. They are complementary to tra-

ditional communication activities, and

are increasingly used by organisations

that recognise the social characteristics

of effective communication. Blogging

allows a company to build a genuine

community, personalise customer rela-

tionships, provide thought leadership,

test new product ideas, facilitate

knowledge management, and improve

search engine rankings. With podcasts,

companies can reach niche audiences

and attract new, younger customers.

The new media tools are not without

risks for employer and employee.

It is important to set ground rules and

guidelines to avoid trouble. But there is

no doubt that they are rapidly changing

the way people create and consume

news and information.

This meeting was hosted by Freudenberg

in Hermannshof, Weinheim, and included

a very enjoyable and informative visit to

the company’s own winery. Jörg Sost,

Member of the Managing Board and

General Partner, Freudenberg & Co.,

presented an overview of Freudenberg,

a family-owned, diversified and global

company, founded in 1849.

Building a Credible Brand & The Influence of BloggingCorporate Communications

15. Jörg Sost, Member of the Managing Board and General Partner, Freudenberg & Co., meeting host.

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14. Neville Hobson (left) continues the conversation about new media technology with Markus Renner of Novartis.

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16. Members enjoying Freudenberg’s own wine at dinner.

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Council News


The Real Economics of OffshoringWhat springs to mind when people

talk about offshoring? “Cheap labour,”

“moving the existing factory,” “The India

Thing” and “economic loss” are some

of the usual associations for many peo-

ple. In fact, the offshoring phenomenon

has much wider and deeper implications.

Noshir Kaka of McKinsey, addressing

a meeting of the European Councils on Purchasing and e-Procurement in

Bangalore, India, in October, talked about

the real economics of offshoring. He

said that every dollar previously spent

in the US and now offshored to India

delivers 33 cents in value to India via

taxes, revenues and business for local

suppliers, and 67 cents in savings and

returns to the US. An additional 45 to

47 cents of new value is created from

re-employing US labour, and thus “the

global pie is that much bigger,” standing

at 1.45 to 1.47 times the original dollar

offshored.

This was the first time the two European

Councils had met in India, a reflection

of the fact that sourcing, procurement

and supply management are increasingly

being seen as strategic functions in

many companies. Bangalore is one of the

world’s main centres in this fast-

developing industry, and the event

gave participants the opportunity

to visit rapidly growing Business

Process Outsourcing (BPO) and

IT companies. The meeting was

jointly hosted by Mats Agervi,

Vice President, Global Delivery,

IBM Global Services and Frank

Suetterlin, Head of Corporate

Purchasing, SAP.

India Booming...By 2050, India will be the world’s

third-largest economy, behind the

US and China, with a GDP of $27

trillion, according to Goldman

Sachs’ BRIC report in 2003. In addi-

tion, UNCTAD’s World Investment

Report of 2005 states that India is

ranked as the world’s second most

attractive location by 51% of corpora-

tions. Sankar Ramamurthy, Country Head

of Mercer Consulting, pointed out that

it is not only the IT and telecommunica-

tions sectors that are booming. There

is rapid growth in several other sectors

such as real estate, pharmaceuticals and

biotechnology, auto and automotive

components, and R&D.

...But Enterprises Face ChallengesSankar also pointed to some important

demographic trends. India’s population

of 1.3 billion is currently growing at

2.14% per year, and 54% are under 25.

Despite the fact that one quarter of

the world’s youth lives in India, and

there is a large reservoir of intellectual

capital, certain sectors are experiencing

difficulty in attracting quality talent.

Noshir Kaka pointed out that usually

only 5% of candidates interviewed by

call centres are directly recruitable, and

the majority cannot be trained to work

for the industry. He believes that most

companies have barely scratched the

surface of the opportunities offered

by outsourcing and offshoring to

India, but there is too much similarity

in their business models. The offshore

“stampede” is creating significant

challenges for enterprises, and the

imminent shake-out in the provider

community will force an increased

emphasis on strategic focus and

differentiation.

Sourcing, Out-Sourcing and Settling in IndiaPurchasing and e-Procurement

Bangalore, India

12-14 October

17. Jan Buter (left), Director of Procurement Practice, IBM Nederland, in conversation with Mats Agervi, Vice President Global Delivery, IBM Global Services.

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18. Some members of the European Councils on Purchasing and e-Procurement at their meeting in Bangalore.

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Council News

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The meeting was the first formal

meeting of the Council, formed

from a merger of the former Council

on Sustainability Reporting and

the Working Group on Corporate

Citizenship. It was hosted at the

BASF Sustainability Centre in

Berlin at the kind invitation of

Lothar Meinzer, who accepted the

invitation of Council members to

become Chair of the Council for the

next two years.

Karina Litvack, Head of Governance

and Socially Responsible Investment

at F&C Asset Management, outlined

the activities of F&C, one of the

top five asset managers in the UK

which invests globally. She made

clear that F&C adopted a practical

stance to lobbying – recognizing it

as an important activity.

Dr Lothar Meinzer, Director of

the BASF Sustainability Centre,

presented some brief facts and

figures about BASF, the world’s

leading chemical company, and then

went on to share the BASF view

on CSR and sustainability through

a presentation made to investors.

One of the challenges facing BASF

was dealing anew with issues, for

example in the Far East, which

had been dealt with and solved

many years ago in Europe, such

as community relations and road

safety. Other challenges included

the REACH (proposed legislation

on the registration, evaluation and

authorisation of chemicals) and

emissions trading, although BASF

considered itself well-prepared for

both issues.

Renate Hornung-Draus, Director

European and International

Affairs, BDA (German Employers

Association) traced the recent

history in the development of CSR

in Germany against the context

of the strong tradition of social

legislation in Germany. CSR had

become a political issue in Germany,

and what should be a voluntary

activity led by individual companies

had become linked to legislation

and hence the interest of industry

bodies such as BDA and BDI in

Germany. Smaller companies, which

are very significant in Germany,

were coming under increasing

pressure on CSR issues as suppliers

to international companies.

Responsible Lobbying and a German Perspective on CSRCorporate Responsibility and Sustainability

Berlin, Germany

6-7 October

The Measure of SuccessEvaluating Corporate Citizenship Performance

This is the second of two major publications resulting from the Measure of Success project, a research project of The Conference Board in collabora-tion with the Committee to Encourage Corporate Philanthropy (CECP), funded by the Ford Foundation. The project is designed to explore the current corporate perspective on and practices in measur-ing corporate citizenship performance. The first publication, entitled Corporate Citizenship Reporting: Best Practices (see September/October issue of Board Europe), showed how successful global companies are integrating the reporting of their corporate citizenship activities into their firms’ basic business missions. This second report, The Measure of Success: Evaluating Corporate Citizenship Performance, looks at the evolution of corporate citizenship and how the political debates surround-ing the topic have influenced meas-urement practice. It gives an over-view and inventory of commonly used measurement techniques; and presents a discussion of measurement as a management tool in the design and implementation of corporate citizenship programmes.

The report concludes that the true meas-ure of a citizenship programme’s success is the viability of the company’s products and services in the marketplace, the continuing productivity and innovation of its employees, and the ways in which the conduct of the business contributes to the welfare of society. “These are the true and enduring measures.”

The Measure of SuccessReport 1372-05-RR

19. The European Council on Corporate Responsibility and Sustainability was hosted by BASF for its October meeting in Berlin. Dr Lothar Meinzer, Director of BASF’s Sustainability Centre, is second from the right. On the extreme right is Robin Aram, Council Director, who until recently was Vice President, External Relations, Policy and Social Responsibility, Shell.

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Council News


“Business Lessons Learned and New Challenges” will focus on how companies are responding to the increasing

public concern about sustainability, and re-thinking the design, development and marketing of their new products,

processes and services.

Speakers from leading companies will advise on how to meet public expectations of sustainable corporate performance

and how companies should interact with NGOs. They include Howard Chase, Director European Affairs, BP Europe;

Conrad von Kameke, Director Commercial Acceptance Europe/Africa, Monsanto; and Frank van Ooijen, Corporate

Communications Director & CSR Officer, Nutreco Holding NV.

To download a full programme and register please visit: www.conference-board.org/EUsustainable.htm

The Forum is organised in conjunction with the January meeting of The Conference Board’s European Councils on:

• Environment and Product Stewardship • Corporate Responsibility and Sustainability

• Corporate Governance and Board Effectiveness

The newsletter Board Europe is published six times a year by The Conference Board Europe, 130 Chaussée de La Hulpe, box 11, 1000 Brussels, Belgium (Tel. 32/2 675 54 05,

Fax 32/2 675 03 95, e-mail: [email protected]) and is edited by Sandra Lester. Opinions published in Board Europe shall not be construed as representing those of

the Board's European Associates. All rights reserved. Reproduction in whole or in part permitted subject to due acknowledgement.

Sustainability Forum

Business Lessons Learnedand New Challenges

Upcoming Events

The Conference Board Europe joined forces with Focus Consultancy Ltd to undertake research on behalf of the European

Commission about good corporate practices in work place diversity.

The resulting report, “The Business Case for Diversity: Good Practices in the Workplace,” will be launched during

an “invitation only” conference in Brussels on 28-29 November.

Confirmed speakers include: Meg Munn MP, Deputy Minister for Women and Equality, UK Government; Vladimir Spidla,

European Commissioner for Employment, Social Affairs and Equal Opportunities; and Odel Quintin, Director General, DG

Employment, Social Affairs and Equal Opportunities, European Commission.

28 - 29 November 2005

Marriott Hotel

Brussels, Belgium

11 - 12 January 2006

Brussels, Belgium

Hosted by T0TAL

The Business Case for Diversity:Good Practices in the Workplace

European Conference

Vol


v4 news 20 nov dec 05 - the conference board · diversity consulting. 4 5. ellen galinsky,...

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