2009DiversityConference Hubbard Diversity Scorecard ... - Diversity... · Source: The Diversity Scorecard by Dr. Ed Hubbard Financial Impact To succeed financially, how should we

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

Hubbard & Hubbard, Inc. © 2009 All Rights Reserved.

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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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


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


model• Examine a sample Diversity Scorecard

and Its Metrics

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Building the Diversity Measurement Business Case


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?


• Top executives are requiring ROI information

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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


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,


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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Diversity and Service Profits

G thEmployee Loyalty

Customer Loyalty

Growth &

Profits


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)


• Source: (HBR Article: Rucci, Kirn, and Quinn, 1998)

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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


• 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


• Seven hundred and fifty times in net income growth

• Source: J. Kotter and J. Haskett, “Corporate Culture and Performance”

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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 $


People with Disabilities $_

• Write in your estimates

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Linking Diversity to Organizational Strategy




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


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




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


Business Goals / Strategies / Systems

•From Book: How to Calculate Diversity Return On Investment (DROI) -Dr. Edward E. Hubbard, 1999

Identifying What to Measure




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


$ 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


# Reasonable Accommodation

• $ Litigation Costs• % Employee Satisfaction

pp y

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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


+ % 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


Worklife Balance: Day Care Services Focus Group Feedback

Absenteeism Rate %

Enrolled



Build Your Own Scorecard


Diversity Scorecard Exercise

Creating Valuing Managing Leveraging

Your Measures Your Measures Your Measures Your Measures




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


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




Hubbard Diversity 9-S Framework


Automated Diversity Measurement and Planning




MetricLink® - Automated Performance Measurement and Tracking Software


Sample Diversity Value-Added Report

• Human Capital Dashboard





• Cross-Training Impact AnalysisAnalysis



• Turnover Reduction Impact Analysisy





• Workforce Culture Analysis


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


p , g

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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


Documents

2009DiversityConference Hubbard Diversity Scorecard ... - Diversity... · Source: The Diversity Scorecard by Dr. Ed Hubbard Financial Impact To succeed financially, how should we