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Leading by Example
      The case for making
      diversity part of your
      business strategy



March 2012
Diversity & Inclusion: Making the Case


Align D&I Objectives with your Business Drivers

    Diversity and Inclusion Objectives are not in conflict with Business Value Drivers,
    align your organizations D&I initiatives with your business enablers


Embed the D&I Guiding Principles into your organization’s culture


    Include the guiding principles into your diversity and inclusion management plans
    and ensure that the whole organization feels accountable to them.


Keep at it!

    Identify clear metrics and track progress of Diversity initiatives against the stated
    goals. Establish accountabilities within the organization against the goals and link to
    metrics.




1                                                                       © Deloitte & Touche LLP and affiliated entities.
Today’s organizations face unique challenges that establish
the context for change
                                                     Internal Challenges
                                           Maintaining Growth and Profitability

      External Challenges                   – Businesses struggle to balance cost                    External Challenges
                                              containment with higher revenue growth and
                                              customer service
Shifting Demographics
                                           Operating in a Global Environment                    Shifts in Purchasing Power
 Worldwide, the talent pool and
  customer base is becoming more            – Companies struggle to succeed across                The buying power of minority groups
  diverse, calling for more new talent        countries and cultures                               will increase significantly in the next
  strategies and greater cross-cultural                                                            five years
                                            – The speed of global business is accelerating
  competence                                  diversity
                                           Shifting Career Expectations
Rising Retirements and Entrance
of Gen Y                                    – Taking a “resume-building” approach to their       Shortage of Critical Skills
                                              career — employees turnover more frequently
 Today’s workforce represent up to           and demand more from their jobs                     Global competition for talent is
  four different generations; A high                                                               increasing amid a shrinking pool of
  percentage of senior management is       Managing Talent within a Changing                      knowledge workers across all
  nearing retirement, while there is an     Workforce                                              industries
  influx of Gen Y                           – Top talent is becoming more difficult to attract
                                              and retain

Evolving Workplace                          – As a result, companies must challenge              Advancing Technology
                                              traditional notions of how and where work is
 Global companies need to adapt to a         conducted                                           Technology is advancing faster than
  24x7 work environment — using                                                                    ever; creating new expectations of
  technology to collaborate across         Focus on Corporate Social Responsibility               the workforce and channels for
  geographies, languages, and cultures      – Employees and customers increasingly value           engaging with customers
                                              organizations that successfully promote social
                                              responsibility




2                                                                                                      © Deloitte & Touche LLP and affiliated entities.
Achieving enhanced business results calls for a paradigm
shift
• The success of workforce diversity and inclusion efforts can no longer be measured in terms of the
  color and composition of the workforce; they must amount to real business results that create
  competitive advantage
• Understanding the global talent landscape and the potential impact of a comprehensive diversity and
  inclusion strategy can help companies shift the paradigm of corporate diversity from “the right thing to
  do” to a critical enabler in executing business strategy
                  Business Enabler

    Innovation &      New Market       Customer                                Right Thing to Do
      Creativity      Penetration       Loyalty

                                                                          Increased Diversity Representation


                       Employee
                                      Acquisition
                                                                           Equal Employment Opportunity
                      Satisfaction,                                                Compliance
     Knowledge                            and
                      Engagement
      Transfer                        Retention of
                            &
                                       Top Talent
                      Productivity                                               Diversity Programs


      Effective
     Global and          Global
                                        Brand
       Cross-          Leadership
                                      Reputation
      Cultural        Development
      Teaming




                                                     Value

3                                                                                 © Deloitte & Touche LLP and affiliated entities.
A diverse and inclusive workplace is an enabler that leads to
enhanced business performance
                                  …leveraging diverse perspectives and ideas to foster creativity and new
        Innovation & Creativity
                                  product and service innovation
                                  …utilizing talent that closely understands the needs of emerging
       New Market Penetration
                                  demographic groups
                                  …reflecting the diversity of an organization’s customer base, which enables
             Customer Loyalty
                                  better customization of products, services, and marketing efforts
                                  …facilitating knowledge transfer between baby boomers and younger
           Knowledge Transfer
                                  generations to ensure retention of critical knowledge
        Employee Satisfaction,
                                  …fostering an inclusive culture that values the diverse perspectives and
             Engagement and
                                  unique skills of individual employees
                 Productivity
     Acquisition and Retention
                                  …creating an inclusive culture where the best choose to be
                  of Top Talent
    Effective Global and Cross-   …increasing productivity and effectiveness of global teams by creating a
               Cultural Teaming   culture that recognizes and appreciates cultural nuances and values
            Global Leadership     …creating a culture that is committed to developing leaders who understand
                Development       global business and can operate in cross-cultural environments
                                  …developing a reputation as an employer who values diversity and a culture
             Brand Reputation     of inclusion, allowing them to attract the best talent and respond to changing
                                  market demands


4                                                                                    © Deloitte & Touche LLP and affiliated entities.
Deloitte’s commitment to Diversity & Inclusion supports
strategic business outcomes

TALENT                                                CLIENTS
1. Attracting top talent – from a shrinking talent    1. The leadership of our clients is increasingly
   pool - is essential to the success of our firm        reflecting the diversity of our Canadian
2. The talent pool we draw from is continuing to         population
   become more diverse                                2. As our clients globalize, we can serve them
3. Respecting, valuing and leveraging the unique         better if our people have a global perspective,
   capabilities of all our people will improve our       knowledge and experience of different cultures
   talent experience and retention                       and languages
4. The generation entering the workplace today        3. Diversity leadership can strengthen our
   has a stronger expectation for greater                relationship with clients
   personal flexibility, different work experiences   4. Our clients are increasingly expecting us to
   and inclusiveness from their employers than           demonstrate our commitment to diversity in
   prior generations                                     our proposals and engagement teams



                                           LEADERSHIP
1. Every partner is accountable for demonstrating leadership in this area by providing visible support
   for our vision and strategies.
2. Each partners must make a conscious effort to support diversity – to move from talking about
   diversity to taking action.



5                                                                              © Deloitte & Touche LLP and affiliated entities.
A Diversity and Inclusion Management methodology can be
structured and flexible
A comprehensive approach to D&I involves assessing the current state, articulating a desired future
state based on analysis findings and leading practices, and designing a strategy and supporting
programs to achieve desired outcomes



           Plan and
                                Design                Build             Deliver                       Operate
           Assess




                                                  Talent




                                                  Clients




                                                Leadership




6                                                                              © Deloitte & Touche LLP and affiliated entities.
Our approach has revealed a number of Guiding Principles for
successful Diversity and Inclusion Management
Reflecting on our own experience and challenges, knowledge of external research and real-time
experience working with clients suggest that successful diversity and inclusion management plans
have certain strategic actions and processes in common



    • D&I governance structure that starts at the                      • Talent processes and policies are D&I
      top and cascades through all levels                                sensitive

                                                                         • D&I management is entrenched in
    • Visible support from the top                                         performance cycle through to
                                                                           retention of key talent.
                                                                               • Individual development plans
                                                                                 are that are inclusive and
    • D&I language and messages             Successful Diversity and             supportive of the diversity
      are frequent and consistent            Inclusion Management                climate; set and monitor
                                                                                 personal diversity goals

                                                                              • Awareness and development
    • Clear business rationale with                                             is enabled through learning
      intended actions and outcomes                                             and growth opportunities
    • Accountability and measurement is                                  • D&I strategy is implemented
      formalized and integrated into decision-                             through internal programs and
      making processes                                                     external partnerships




7                                                                                   © Deloitte & Touche LLP and affiliated entities.
Diversity assessment and planning is the cornerstone for
establishing accountability for results

                                                                                   Diversity Metrics

                                                      Workforce Representation - Hiring, promotions, transfers, and
             Best Practices
                                                       turnover by employee group
      Establish clear metrics                        Employee Survey Data - Employee engagement ratings
       and track progress                             Employee Development Programs - Minority and female
       against metrics                                 participation rates in employee development programs
       throughout the year;                           Executive Commitment - Leadership involvement in and
       communicate metrics                             commitment to diversity programs (i.e. BRGs, training)
       to organization to                             Internal Availability - Internal labor force with requisite skills for
       ensure alignment                                open jobs
       against goals                                  External Availability – Labor force with requisite skills in local labor
                                                       market; national labor force with requisite skills (Canadian Census
      Ensure leadership                               Data)
       accountability for                             Legal Involvement - Allegations and complaints
       progress against goals;                        Flexible Benefits Programs - Utilization rates by employee group
       link to performance                             for flexible benefits programs
       metrics                                        Supplier Diversity - Percentage of vendor budgets spent on
                                                       minority suppliers
                                                      Branding – Number of external awards or other external market
                                                       recognition; positive media hits

    Source: Diversity and Inclusion Best Practice, Deloitte Consulting LLP, 2009
8                                                                                                      © Deloitte & Touche LLP and affiliated entities.
Sustainability requires ongoing enhancements to the diversity
plan outcomes

       Plan Elements                                      Intended Actions and Outcomes


                          •   Establish accountability for creating goals and plans to address barriers to an inclusive work
     Accountability for
                              environment; roll up goals to firm-wide scorecard to measure progress against plan
         Results          •   Be diligent about diversity sensitive policy review, development and application


                          •   Develop a robust strategy, framework and curriculum for diversity education and learning needs
                              for all levels and all services including “catalogue” of available courses and learning
    Diversity education       opportunities
                          •   Seek out, participate in and encourage the participation of others in learning and growth to
                              increase awareness and create an inclusive environment in every office


                          •   Build D&I into role competencies, particularly for leaders and coaches
                          •   Contribute to improved retention of talent by actively supporting development programs for High
         Targeted             Potential individuals in our diverse populations
       Development        •   Establish mentorship programs connecting people with different backgrounds to support
                              advancement of our diverse populations and further educate leadership on differences
                          •   Enable and track sponsorship relationships for the development of non-traditional talent


     Leadership in the    •   Participate in and/or sponsor community events and develop relationships with organizations to
    Business Community        encourage broader uptake of diversity initiatives


    Communication and     •   Encourage dialogue about diversity issues – keep it on meeting agendas!
       Awareness          •   Be diligent about recognition for D&I champions and advocates at all levels

9                                                                                              © Deloitte & Touche LLP and affiliated entities.
Our call to action: 2011 Dialogue on diversity


• The question? Why aren’t we fully and more effectively integrating
  skilled immigrants into the Canadian workforce?
• The result? A series of thought-provoking and insightful discussions
  on how Canada can do a better job
• Participants focused on these topics:
  – How can businesses harness
    the diversity of newcomers for
    business growth and innovation?
  – What barriers exist to fully
     integrating new immigrants?
  – What do businesses need to do
     overcome the barriers?




10                                                      © Deloitte & Touche LLP and affiliated entities.
What we learned: Taking Action


Participants highlighted key areas where organizations needed to make
changes:
• Review policies and practices, especially related to recruitment
• Develop internships – a great way to “test drive” the relationship, for
  both the employer and foreign-born worker
• Focus on cultural connections
• Leverage employee resource
  groups
• Mentoring – inside and outside
  your organization
• Education for employees and
  skilled, foreign workers




11                                                      © Deloitte & Touche LLP and affiliated entities.
Find out more


• Visit this link to read the Deloitte white paper, Welcome to Canada. Now
  what?
• Use the recommendations in the
  report to drive your
  organization’s agenda
• Let’s keep the discussion going.
  Share your feedback on my
  external iDeas blog:
  http://ideas.deloitte.ca/category/1#diversity-deloitte-canada




12                                                     © Deloitte & Touche LLP and affiliated entities.
Leading by Example: The Case for Making Diversity part of your Business Strategy by Kate Morican, Associate Partner, Deloitte.

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Leading by Example: The Case for Making Diversity part of your Business Strategy by Kate Morican, Associate Partner, Deloitte.

  • 1. Leading by Example The case for making diversity part of your business strategy March 2012
  • 2. Diversity & Inclusion: Making the Case Align D&I Objectives with your Business Drivers Diversity and Inclusion Objectives are not in conflict with Business Value Drivers, align your organizations D&I initiatives with your business enablers Embed the D&I Guiding Principles into your organization’s culture Include the guiding principles into your diversity and inclusion management plans and ensure that the whole organization feels accountable to them. Keep at it! Identify clear metrics and track progress of Diversity initiatives against the stated goals. Establish accountabilities within the organization against the goals and link to metrics. 1 © Deloitte & Touche LLP and affiliated entities.
  • 3. Today’s organizations face unique challenges that establish the context for change Internal Challenges  Maintaining Growth and Profitability External Challenges – Businesses struggle to balance cost External Challenges containment with higher revenue growth and customer service Shifting Demographics  Operating in a Global Environment Shifts in Purchasing Power  Worldwide, the talent pool and customer base is becoming more – Companies struggle to succeed across  The buying power of minority groups diverse, calling for more new talent countries and cultures will increase significantly in the next strategies and greater cross-cultural five years – The speed of global business is accelerating competence diversity  Shifting Career Expectations Rising Retirements and Entrance of Gen Y – Taking a “resume-building” approach to their Shortage of Critical Skills career — employees turnover more frequently  Today’s workforce represent up to and demand more from their jobs  Global competition for talent is four different generations; A high increasing amid a shrinking pool of percentage of senior management is  Managing Talent within a Changing knowledge workers across all nearing retirement, while there is an Workforce industries influx of Gen Y – Top talent is becoming more difficult to attract and retain Evolving Workplace – As a result, companies must challenge Advancing Technology traditional notions of how and where work is  Global companies need to adapt to a conducted  Technology is advancing faster than 24x7 work environment — using ever; creating new expectations of technology to collaborate across  Focus on Corporate Social Responsibility the workforce and channels for geographies, languages, and cultures – Employees and customers increasingly value engaging with customers organizations that successfully promote social responsibility 2 © Deloitte & Touche LLP and affiliated entities.
  • 4. Achieving enhanced business results calls for a paradigm shift • The success of workforce diversity and inclusion efforts can no longer be measured in terms of the color and composition of the workforce; they must amount to real business results that create competitive advantage • Understanding the global talent landscape and the potential impact of a comprehensive diversity and inclusion strategy can help companies shift the paradigm of corporate diversity from “the right thing to do” to a critical enabler in executing business strategy Business Enabler Innovation & New Market Customer Right Thing to Do Creativity Penetration Loyalty Increased Diversity Representation Employee Acquisition Equal Employment Opportunity Satisfaction, Compliance Knowledge and Engagement Transfer Retention of & Top Talent Productivity Diversity Programs Effective Global and Global Brand Cross- Leadership Reputation Cultural Development Teaming Value 3 © Deloitte & Touche LLP and affiliated entities.
  • 5. A diverse and inclusive workplace is an enabler that leads to enhanced business performance …leveraging diverse perspectives and ideas to foster creativity and new Innovation & Creativity product and service innovation …utilizing talent that closely understands the needs of emerging New Market Penetration demographic groups …reflecting the diversity of an organization’s customer base, which enables Customer Loyalty better customization of products, services, and marketing efforts …facilitating knowledge transfer between baby boomers and younger Knowledge Transfer generations to ensure retention of critical knowledge Employee Satisfaction, …fostering an inclusive culture that values the diverse perspectives and Engagement and unique skills of individual employees Productivity Acquisition and Retention …creating an inclusive culture where the best choose to be of Top Talent Effective Global and Cross- …increasing productivity and effectiveness of global teams by creating a Cultural Teaming culture that recognizes and appreciates cultural nuances and values Global Leadership …creating a culture that is committed to developing leaders who understand Development global business and can operate in cross-cultural environments …developing a reputation as an employer who values diversity and a culture Brand Reputation of inclusion, allowing them to attract the best talent and respond to changing market demands 4 © Deloitte & Touche LLP and affiliated entities.
  • 6. Deloitte’s commitment to Diversity & Inclusion supports strategic business outcomes TALENT CLIENTS 1. Attracting top talent – from a shrinking talent 1. The leadership of our clients is increasingly pool - is essential to the success of our firm reflecting the diversity of our Canadian 2. The talent pool we draw from is continuing to population become more diverse 2. As our clients globalize, we can serve them 3. Respecting, valuing and leveraging the unique better if our people have a global perspective, capabilities of all our people will improve our knowledge and experience of different cultures talent experience and retention and languages 4. The generation entering the workplace today 3. Diversity leadership can strengthen our has a stronger expectation for greater relationship with clients personal flexibility, different work experiences 4. Our clients are increasingly expecting us to and inclusiveness from their employers than demonstrate our commitment to diversity in prior generations our proposals and engagement teams LEADERSHIP 1. Every partner is accountable for demonstrating leadership in this area by providing visible support for our vision and strategies. 2. Each partners must make a conscious effort to support diversity – to move from talking about diversity to taking action. 5 © Deloitte & Touche LLP and affiliated entities.
  • 7. A Diversity and Inclusion Management methodology can be structured and flexible A comprehensive approach to D&I involves assessing the current state, articulating a desired future state based on analysis findings and leading practices, and designing a strategy and supporting programs to achieve desired outcomes Plan and Design Build Deliver Operate Assess Talent Clients Leadership 6 © Deloitte & Touche LLP and affiliated entities.
  • 8. Our approach has revealed a number of Guiding Principles for successful Diversity and Inclusion Management Reflecting on our own experience and challenges, knowledge of external research and real-time experience working with clients suggest that successful diversity and inclusion management plans have certain strategic actions and processes in common • D&I governance structure that starts at the • Talent processes and policies are D&I top and cascades through all levels sensitive • D&I management is entrenched in • Visible support from the top performance cycle through to retention of key talent. • Individual development plans are that are inclusive and • D&I language and messages Successful Diversity and supportive of the diversity are frequent and consistent Inclusion Management climate; set and monitor personal diversity goals • Awareness and development • Clear business rationale with is enabled through learning intended actions and outcomes and growth opportunities • Accountability and measurement is • D&I strategy is implemented formalized and integrated into decision- through internal programs and making processes external partnerships 7 © Deloitte & Touche LLP and affiliated entities.
  • 9. Diversity assessment and planning is the cornerstone for establishing accountability for results Diversity Metrics  Workforce Representation - Hiring, promotions, transfers, and Best Practices turnover by employee group  Establish clear metrics  Employee Survey Data - Employee engagement ratings and track progress  Employee Development Programs - Minority and female against metrics participation rates in employee development programs throughout the year;  Executive Commitment - Leadership involvement in and communicate metrics commitment to diversity programs (i.e. BRGs, training) to organization to  Internal Availability - Internal labor force with requisite skills for ensure alignment open jobs against goals  External Availability – Labor force with requisite skills in local labor market; national labor force with requisite skills (Canadian Census  Ensure leadership Data) accountability for  Legal Involvement - Allegations and complaints progress against goals;  Flexible Benefits Programs - Utilization rates by employee group link to performance for flexible benefits programs metrics  Supplier Diversity - Percentage of vendor budgets spent on minority suppliers  Branding – Number of external awards or other external market recognition; positive media hits Source: Diversity and Inclusion Best Practice, Deloitte Consulting LLP, 2009 8 © Deloitte & Touche LLP and affiliated entities.
  • 10. Sustainability requires ongoing enhancements to the diversity plan outcomes Plan Elements Intended Actions and Outcomes • Establish accountability for creating goals and plans to address barriers to an inclusive work Accountability for environment; roll up goals to firm-wide scorecard to measure progress against plan Results • Be diligent about diversity sensitive policy review, development and application • Develop a robust strategy, framework and curriculum for diversity education and learning needs for all levels and all services including “catalogue” of available courses and learning Diversity education opportunities • Seek out, participate in and encourage the participation of others in learning and growth to increase awareness and create an inclusive environment in every office • Build D&I into role competencies, particularly for leaders and coaches • Contribute to improved retention of talent by actively supporting development programs for High Targeted Potential individuals in our diverse populations Development • Establish mentorship programs connecting people with different backgrounds to support advancement of our diverse populations and further educate leadership on differences • Enable and track sponsorship relationships for the development of non-traditional talent Leadership in the • Participate in and/or sponsor community events and develop relationships with organizations to Business Community encourage broader uptake of diversity initiatives Communication and • Encourage dialogue about diversity issues – keep it on meeting agendas! Awareness • Be diligent about recognition for D&I champions and advocates at all levels 9 © Deloitte & Touche LLP and affiliated entities.
  • 11. Our call to action: 2011 Dialogue on diversity • The question? Why aren’t we fully and more effectively integrating skilled immigrants into the Canadian workforce? • The result? A series of thought-provoking and insightful discussions on how Canada can do a better job • Participants focused on these topics: – How can businesses harness the diversity of newcomers for business growth and innovation? – What barriers exist to fully integrating new immigrants? – What do businesses need to do overcome the barriers? 10 © Deloitte & Touche LLP and affiliated entities.
  • 12. What we learned: Taking Action Participants highlighted key areas where organizations needed to make changes: • Review policies and practices, especially related to recruitment • Develop internships – a great way to “test drive” the relationship, for both the employer and foreign-born worker • Focus on cultural connections • Leverage employee resource groups • Mentoring – inside and outside your organization • Education for employees and skilled, foreign workers 11 © Deloitte & Touche LLP and affiliated entities.
  • 13. Find out more • Visit this link to read the Deloitte white paper, Welcome to Canada. Now what? • Use the recommendations in the report to drive your organization’s agenda • Let’s keep the discussion going. Share your feedback on my external iDeas blog: http://ideas.deloitte.ca/category/1#diversity-deloitte-canada 12 © Deloitte & Touche LLP and affiliated entities.