Transcript Diversity - People Management Forum

Diversity: a Competitive
Advantage for Business
Vera Budway-Strobach
Head of Diversity & Inclusion
AGENDA
1. The Business Case for Diversity
2. Diversity & Innovation
3. Unconscious Bias
Challenges Facing 21st Century Organizations
• Technology
•
Cloud economy
Activity-based
working
Mobility
Flexibility
Social media
Digitalization
“War for talent”
Female shift
Digital natives
Ageing
society
• Social
Global competition
Shrinking markets
Innovation
Globalization of
the workplace
Low to no growth
Communities
Cultural diversity
Migration & immigration
Shared-use
Demographics
Economic
CSR & sustainability
Work-life
balance
• Cultural
Diversity is Good for Business
Broader
talent pool
New
customers
Work
environment
New
markets
Decision
making
Innovation
Diversity Drives Performance
Studies show
that
companies
with
diversity on
Boards have:
• 66% higher return on invested capital
• 56% higher EBIT margin
• 55% higher total shareholder return
• Up to 41% higher ROE
• 26% better share price performance
• Investment funds: Barclays Women in
Leadership Index, Calpers, Amazone,
Naissance Capital
Source: McKinsey „Women Matter“ series, Credit Suisse, Catalyst, Roland Berger
5
Equal participation of
women in the
economy, would add
an additional $28
trillion or 26% to
annual global GDP by
2025
SOURCE: McKinsey, “The power of parity: how advancing women´s equality
can add 12 trillion to global growth”, September 2015
Diversity & Clients
Diverisity & Innovation
Diversity is a key driver of innovation + critical for being successful on a global scale
Senior executives are recongnizing
that a diverse set of experiences,
perspectives + backgrounds is
crucial to innovation and the
development of new ideas. When
asked about the relationship
between diversity + innovation,
the majority agreed that diversity
is crucial to encouraging different
perspectives & ideas that foster
innovation.
(Forbes insights, pg 3)
LEHMAN BROTHERS SISTERS
„If Lehman Brothers had been a bit more Lehman Sisters... We would not have the
degree of tragedy that we had as a result of what happened“
Christine Lagarde
Investing 101
A diverse portfolio of risk is always better than a
concentrated portfolio
Your team is your portfolio
unconscious bias
Who would you hire?
Check your Bias
Harvard Impicit Association Test
www.implicit.harvard.edu
Test your bias in over 90 different
areas
Dealing with Personal Bias
Recognize
Observe
biased
situations
Analyze
your
perception
process
Identify
your
hidden
beliefs
Reduce
Checking for Bias in HR
Check HR
processes
Identify
key
decision
points
Anti-bias
training
Create a
culture of
calling out
bias
Develop &
implement
a D&I
strategy
Putting Diversity into Action
Target Setting &
Remuneration
• Target setting with
Board – diversity KPIs
• Monitoring diversity
indicators
• Monitor and close
the gender pay gap
Recruitmen, Retention
& Talent
• HR tools, processes
• Succession planning
• Balanced talent
pools, transparency
•
•
Culture &
Commitment
• Inclusive work
environment
• Awareness raising
Mentoring
• Corporate culture
(ethics code, CSR)
Employee Resource
Groups
• UN Global Compact /
Diversity Charter
?
Questions