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Diversity & Inclusion atDiversity & Inclusion atVeeco InstrumentsVeeco Instruments

Frank J. GagliardoFrank J. GagliardoNovember 3, 2004November 3, 2004

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Veeco Instruments Global ScopeVeeco Instruments Global Scope

United States

Asia Pacific

Europe

Japan

Over 20 Strategically located Worldwide Offices, employing over 1,400 people

Corporate Headquarters100 Sunnyside BoulevardWoodbury, New York 11797

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4 Layers of Diversity4 Layers of Diversity

Cross-Cultural

Experience

Seniority/Tenure

Work Experience

Business Unit/Department

Work Location

Management Status

Functional Classification

Trade UnionAffiliation

Job Function

ResidenceLocation

Family Status

MilitaryExperience

Languages

Political Affiliation

EducationalBackground

RecreationalActivities

Appearance

Income

ReligiousBeliefs

Ethnicity

SexualOrientation

Age

Physical Ability

Nationality

Race

Gender

Personality

Diversity is a mixture of people in our business, each with Diversity is a mixture of people in our business, each with a variety of backgrounds, experiences, styles, cultures, a variety of backgrounds, experiences, styles, cultures, skills and competenciesskills and competencies..

External Dimensions

Internal Dimensions

Organizational Dimensions

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Today’s Workforce Demographics & TrendsToday’s Workforce Demographics & Trends

Demographic TrendsDemographic Trends

• By Y2020:By Y2020:• Non-Minority (white) workforce will Non-Minority (white) workforce will

be 64.3% be 64.3% over 12% from Y2004over 12% from Y2004

• Hispanic workforce will be 16% Hispanic workforce will be 16% over 4% from Y2004over 4% from Y2004

• Asian workforce will be 6.5% Asian workforce will be 6.5% almost 5% from Y2004almost 5% from Y2004

• Females will make up 50% of the Females will make up 50% of the total workforce total workforce 4% from Y20044% from Y2004

• Y2005 – Females;Y2005 – Females;• Will receive Will receive

• 55% of all bachelor’s degrees55% of all bachelor’s degrees• 53% of all masters degrees53% of all masters degrees• 40% of all doctorates40% of all doctorates

• 64% of all married women with 64% of all married women with children under 6 are part of the children under 6 are part of the workforce workforce • 1960: 18.6% 1960: 18.6% • 1985: 53.4%1985: 53.4%

Today’s WorkforceToday’s Workforce

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Why Launch a Diversity Initiative?Why Launch a Diversity Initiative?

Business Case:Business Case:• Demographics and Customer Base Demographics and Customer Base

changeschanges

• Demand for worklife integrationDemand for worklife integration

• Diversity and worklife as a strategic Diversity and worklife as a strategic advantageadvantage

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The Business Case for DiversityThe Business Case for Diversity

• By ensuring leadership development programs By ensuring leadership development programs reach all employeesreach all employees

• By meeting the needs of diverse customersBy meeting the needs of diverse customers

• By integrating diversity into the organization’s By integrating diversity into the organization’s business strategybusiness strategy

• By increasing innovation by tapping employees of By increasing innovation by tapping employees of all backgroundsall backgrounds

• By utilizing diverse experience levels on projectsBy utilizing diverse experience levels on projects

• By using diverse employees to recruit new By using diverse employees to recruit new employeesemployees

• Not applicable: My organization doesn’t actively Not applicable: My organization doesn’t actively leverage workforce diversityleverage workforce diversity

40%

39%

35%

31%

34%

30%

30%

In what ways does your organization actively leverage its diverse workforce to gaincompetitive advantage?

Source: The Society of Human Resource Management and Fortune

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Implementing a Diversity InitiativeImplementing a Diversity Initiative

Individual attitudes, awareness

& behavior

Managementskills & practices

Organizational values, policies

& systems

Change

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Our Diversity Vision:Our Diversity Vision:

To create an To create an inclusive environmentinclusive environment that that leverages diversityleverages diversity to tobuild high-performing teams and organizations to build high-performing teams and organizations to drivedrivebusiness resultsbusiness results and gain and gain competitive advantagecompetitive advantage by by respecting respecting and valuingand valuing the unique talents and characteristics of each the unique talents and characteristics of each individual and leveraging skills, ideas and experience.individual and leveraging skills, ideas and experience.

An inclusive environment encourages VeecoAn inclusive environment encourages Veecoemployees to:employees to:• Maximize their professional and personal growthMaximize their professional and personal growth• Recognize and respect the whole personRecognize and respect the whole person• Value the differences in employees’ background, experience, Value the differences in employees’ background, experience,

knowledge, and skillsknowledge, and skills• Maximize the benefits derived from a diverse workforceMaximize the benefits derived from a diverse workforce

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Critical Success Factors for Driving ChangeCritical Success Factors for Driving Change

• Leadership Support – Top ManagementLeadership Support – Top Management• Good Communication StrategyGood Communication Strategy• Spread OwnershipSpread Ownership• Ensure alignment and accountabilityEnsure alignment and accountability• Clearly define metricsClearly define metrics

Starting Off

In Process

Review &Refine

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Veeco’s Diversity ObjectivesVeeco’s Diversity Objectives

• Diverse World Class Workforce:Diverse World Class Workforce: Attract, Develop and Attract, Develop and Retain a Diverse World Class Workforce.Retain a Diverse World Class Workforce.

• Inclusive Work Environment:Inclusive Work Environment: Champion an Inclusive Work Champion an Inclusive Work Environment.Environment.

• Diversity Image and Reputation: Diversity Image and Reputation: Enhance Diversity Image Enhance Diversity Image and Reputation.and Reputation.

• Mutual Accountability & Ownership:Mutual Accountability & Ownership: Promote Mutual Promote Mutual Accountability and Ownership for Diversity.Accountability and Ownership for Diversity.

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Leveraging Employee EngagementLeveraging Employee Engagement

• Diversity is everyone’s business. Each one of us can Diversity is everyone’s business. Each one of us can have an impact on our work environment by the way we have an impact on our work environment by the way we treat one another on a day-to-day basis.treat one another on a day-to-day basis.

• We are each ambassadors for the Company, whether We are each ambassadors for the Company, whether we know it or not… whether we want it or not…we know it or not… whether we want it or not…

• Tapping into the power and passion of our talented Tapping into the power and passion of our talented workforce is a competitive advantage!workforce is a competitive advantage!

1st LineWorkforce

Middle

TopStrategic

Tactical

Operational

Strength of a pyramid is at its base!

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Ways of Leveraging Employee EngagementWays of Leveraging Employee Engagement

• Employee NetworksEmployee Networks• Diversity CouncilsDiversity Councils• Community EngagementsCommunity Engagements

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Employee NetworksEmployee Networks

• Groups of employees that can form around the following Groups of employees that can form around the following dimensions of diversity: Gender, race, Sexual Orientation, dimensions of diversity: Gender, race, Sexual Orientation, Age, Disability, and Nationality. Membership spans across Age, Disability, and Nationality. Membership spans across Veeco organizationally and geographically. Veeco organizationally and geographically.

• Self initiated and employee driven, formally structured and Self initiated and employee driven, formally structured and aligned with Veeco’s objectives values and vision and aligned with Veeco’s objectives values and vision and diversity strategy.diversity strategy.

• Voluntary participation.Voluntary participation.• Working in partnership with Corporate HRWorking in partnership with Corporate HR• Operating under the Employee Network guidelines and Operating under the Employee Network guidelines and

principals set by the Company (to be determined).principals set by the Company (to be determined).• Not advocates for individuals, negotiators with Not advocates for individuals, negotiators with

management about wages, hours, terms of employment, management about wages, hours, terms of employment, or operating as special entities outside Veeco.or operating as special entities outside Veeco.

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What is the Business Value of Employee What is the Business Value of Employee Networks?Networks?

• Provides an avenue for discovery of new talent.Provides an avenue for discovery of new talent.• Increases cross-cultural awareness and Increases cross-cultural awareness and

appreciation for diversity.appreciation for diversity.• Acts as resource for attracting new talent through Acts as resource for attracting new talent through

recruitment.recruitment.• Improves employee morale and commitmentImproves employee morale and commitment• Facilitates the transfer of knowledge, skills, and Facilitates the transfer of knowledge, skills, and

experiences throughout the Company.experiences throughout the Company.• Provides a support system and opportunity to Provides a support system and opportunity to

build relationships across all Veeco business build relationships across all Veeco business units.units.

• Improves Veeco's image and reputation through Improves Veeco's image and reputation through community activities and outreach.community activities and outreach.

• Provides opportunities for exposure and chance Provides opportunities for exposure and chance to demonstrate leadership skills.to demonstrate leadership skills.

V

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Diversity Councils at VeecoDiversity Councils at Veeco

• Cross-sectional teams of company employees Cross-sectional teams of company employees who are sanctioned by local or regional who are sanctioned by local or regional management to define, develop , advocate, management to define, develop , advocate, coordinate, communicate and measure diversity coordinate, communicate and measure diversity initiatives within a specific business unit or region.initiatives within a specific business unit or region.

• Decentralized and HR Driven and supported.Decentralized and HR Driven and supported.• Comprised of a highly credible diverse mix of Comprised of a highly credible diverse mix of

members and selected by their operating members and selected by their operating company.company.

• Usually have a management champion, liaison Usually have a management champion, liaison who provides support and ensures alignment to who provides support and ensures alignment to the business.the business.

• Key role is to assess and make recommendations Key role is to assess and make recommendations to improve specific issues related to the to improve specific issues related to the organization’s culture.organization’s culture.

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Examples of Diversity Council ActivitiesExamples of Diversity Council Activities

• Monitor the pulse of the organization in Monitor the pulse of the organization in terms of progress / barriers toward diversity terms of progress / barriers toward diversity strategies.strategies.

• Sponsor organizational events that help Sponsor organizational events that help build diversity awareness and / or build diversity awareness and / or competencies.competencies.

• Work with Leadership Teams to provide Work with Leadership Teams to provide input on strategic direction for diversity that input on strategic direction for diversity that is aligned with the business.is aligned with the business.

• Serve as Diversity Ambassadors for the Serve as Diversity Ambassadors for the organization or region.organization or region.

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Personal Action PlansPersonal Action Plans

• Personal Diversity Action Plans focus on your activities as Personal Diversity Action Plans focus on your activities as an individual to continue your learning journey and to an individual to continue your learning journey and to visibly demonstrate your understanding of and visibly demonstrate your understanding of and commitment to diversity.commitment to diversity.

Criteria to consider:Criteria to consider:• Be a way to showcase your skills and interests and show Be a way to showcase your skills and interests and show

your commitment to diversity.your commitment to diversity.• Be focused on helping Veeco and your business unit Be focused on helping Veeco and your business unit

achieve its diversity objectives for better business resultsachieve its diversity objectives for better business results

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Examples of Diversity Action PlansExamples of Diversity Action Plans

Attract, Develop and Retain a World Class Diverse WorkforceAttract, Develop and Retain a World Class Diverse Workforce• Let people know about job opportunities that arise in your work groupLet people know about job opportunities that arise in your work group• Identify and look for ways to use peoples skills and interest in your Identify and look for ways to use peoples skills and interest in your

work groups.work groups.• Identify and implement ways to enhance the richness of your group’s Identify and implement ways to enhance the richness of your group’s

diversity mix (recruitment, internships, outreach programs).diversity mix (recruitment, internships, outreach programs).• Be proactive in the development of people (mentoring program, Be proactive in the development of people (mentoring program,

project teams, developmental assignments).project teams, developmental assignments).

Foster an Inclusive Work EnvironmentFoster an Inclusive Work Environment• Encourage more collaborative working relationships within and across different work groups.Encourage more collaborative working relationships within and across different work groups.• Join an employee network or diversity council.Join an employee network or diversity council.• Be a source of support to new employees or those who are less included.Be a source of support to new employees or those who are less included.• Utilizing a diverse mix of people in the business to get more creativity and improve decision quality.Utilizing a diverse mix of people in the business to get more creativity and improve decision quality.

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Examples of Diversity Action PlansExamples of Diversity Action Plans

Enhance Diversity Image and ReputationEnhance Diversity Image and Reputation• Volunteer in schools to promote the development of a diverse labor Volunteer in schools to promote the development of a diverse labor

pool in the sciences and engineering.pool in the sciences and engineering.• Participate in community events that promote diversityParticipate in community events that promote diversity

Promote Mutual Accountability & Ownership for DiversityPromote Mutual Accountability & Ownership for Diversity• Be a role model for others by continuing to look for ways to demonstrate your commitment to Be a role model for others by continuing to look for ways to demonstrate your commitment to

diversitydiversity• Share your learning’s with your work group during diversity momentsShare your learning’s with your work group during diversity moments• Seek updates on diversity best practicesSeek updates on diversity best practices• Provide honest feedback to HR. Challenge things when you are noticing exclusion.Provide honest feedback to HR. Challenge things when you are noticing exclusion.

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Diversity Metrics & MeasurementsDiversity Metrics & Measurements

Strategies & Objectives

2004 HR Company Wide Programs / Projects

Diversity Metric Timeframe Organization Impact

1. Affirmative Action Plans All Plans to be completed / Progress reported at Op's Review to Sr. Management

End of Q1 / Quarterly

2. Link underutilization (AAP) with recruitment

Placement & promotions of women and minorities (focusing in underutilized areas) at each business unit

On-going

3. Measure Employees input on Diversity at Veeco

Include questions as part of Employee Survey

2nd Quarter

4. Diversity Awareness Training

Managers & Employees 2nd Quarter

5. Better utilization of Internship Program

One Intern per 100 employees per Business Unit

By the end of 2nd Quarter

6. Diversity Employee Networks

Establish Employee Networks 3rd Quarter

7. Diversity Council Establish One Diversity Council company-wide

4th Quarter

STRATEGIC DIRECTION PERFORMANCE MANAGEMENT

Diverse workforce reflective of customers and local population demographics.Respectful & Inclusive Work Environment

Implement Diversity Initiative & Raise Diversity Awareness

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Personal Guiding PrinciplesPersonal Guiding Principles

• Keep the Vision in sightKeep the Vision in sight• Stay connected to the organizationStay connected to the organization• Persevere and be patientPersevere and be patient• Take the lead by role modelingTake the lead by role modeling• Modify goals and actions, as neededModify goals and actions, as needed• Celebrate every successCelebrate every success

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Veeco Instruments: The FutureVeeco Instruments: The Future

• Use diversity as a foundational element for our Use diversity as a foundational element for our revitalization actions and future challenges and revitalization actions and future challenges and endeavorsendeavors

• Fully embrace the diversity among employees, Fully embrace the diversity among employees, customers, suppliers, dealers and communitiescustomers, suppliers, dealers and communities

• Continue strong commitment to diversity and Continue strong commitment to diversity and work lifework life

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Action Plan / Next Steps for ImplementationAction Plan / Next Steps for Implementation

Action Plan Timeframe Status Owner

1. Present Quantitative Analysis to Executive Management

September 9, 2004 F. Gagliardo

2. Attend 3-Day Diversity Conference hosted by SHRM (Chicago, Ill)

October 25, 2004 – October 27, 2004

F. Gagliardo

3. Present Strategic Plan to Executive Management

November 3, 2004 F. Gagliardo

4. Present Quantitative (BU specific) and Strategic Plan to GM’s and HR

December, 2004 Scheduled F. Gagliardo

5. Diversity Training: Management Employees

1st Quarter, 2005 To be scheduled

HR Team

6. Measure Progress toward AA Goals Quarterly (2nd Quarter, 2005)

Quarterly Op’s Review

HR Team Corporate HR

7. Incorporate Diversity Questions into Employee Survey

2nd Quarter, 2005 To be scheduled

Outside Consultant

8. Employee Networks & Diversity Council

3rd Quarter, 2005 Sr. Management

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Changing Our CultureChanging Our Culture

Ghandi:Ghandi:

““You must become the changeYou must become the changeyou wish to see in the world”you wish to see in the world”