Realizing Potential Realizing Potential

The Business Case for DiversityHow a diverse workforce drives drive How a diverse workforce drives drive business successbusiness success

Fiona MullanHR Director

Microsoft Ireland 9th June 2009

Today’s ObjectivesToday’s Objectives

Provide my perspective onProvide my perspective onThe business case for Diversity within The business case for Diversity within global organisationsglobal organisations

Microsoft approach to Diversity & Microsoft approach to Diversity & InclusionInclusion

Challenges & opportunities Challenges & opportunities

Dimensions of Diversity

Diversity includeseveryone! Age

Multiculturalism

Gender

SexualOrientation

Accessibility

Education

Work Background

MilitaryBackgroun

d

MaritalStatus

ParentalStatus

ReligiousBeliefs

GeographicLocation

EconomicStatus

Primary Language

ThinkingStyle

Job level

Job Functio

n

Immigration

Diversity is the unique Diversity is the unique attributes & experiences we attributes & experiences we

each have….Its one thing we all each have….Its one thing we all have in commonhave in common

Inclusion is the work Inclusion is the work environment & the degree of environment & the degree of openness for us to offer our openness for us to offer our

unique perspectives to benefit unique perspectives to benefit the business the business

Diversity is not an Diversity is not an either/oreither/or way of way of

working….its an working….its an and/bothand/both approach!approach!

What does this all mean What does this all mean to a business like to a business like Microsoft?Microsoft?

……and why does it make business and why does it make business sense for us to build a diverse & sense for us to build a diverse & inclusive culture? inclusive culture?

1996 Saudi1996 Saudi1998 Abu Dhabi1998 Abu Dhabi

1998 Kuwait1998 Kuwait

1998 Lebanon1998 Lebanon

1999 Pakistan

2001 Oman2001 Oman

2001 Jordan2001 Jordan

2003 Bahrain2003 Bahrain

2003 Qatar2003 Qatar

2002 Kazakhstan2002 Kazakhstan

1992 South Africa1992 South Africa

1995 Egypt1995 Egypt

1995 Kenya1995 Kenya

1996 Ivory Coast1996 Ivory Coast1996 1996 Nigeria

1997 Mauritius1997 Mauritius1998 Namibia1998 Namibia

1999 Tunisia1999 Tunisia2000 Algeria2000 Algeria

1993 Czech Rep.1993 Czech Rep.1993 Hungary1993 Hungary

1993 Poland1993 Poland

1993 Russia1993 Russia

1994 Slovenia1994 Slovenia

1995 Slovakia1995 Slovakia

1996 Croatia1996 Croatia1996 Romania1996 Romania

1993 Turkey1993 Turkey

1999 Bulgaria1999 Bulgaria

2002 Cyprus2002 Cyprus

2002 Yugoslavia2002 Yugoslavia

2002 Ukraine2002 Ukraine

2003 Malta2003 Malta

1983 Germany1983 Germany1983 UK1983 UK

1983 France1983 France

1985 Spain1985 Spain

1985 Norway1985 Norway

1985 Denmark1985 Denmark

1987 Portugal1987 Portugal

Microsoft: 25 Years in EMEAMicrosoft: 25 Years in EMEA

1989 Israel1989 Israel

60 offices, 56 nations 4 major R&D centres 17,000 employees Rated “No 1 Best

Workplaces” in Europe – 2008 and 2009

60 offices, 56 nations 4 major R&D centres 17,000 employees Rated “No 1 Best

Workplaces” in Europe – 2008 and 2009

2003 Iceland2003 Iceland

1985 Ireland1985 Ireland

Internal - MS Ireland Internal - MS Ireland OverviewOverview

Strategic footprint and multi-skilled talent pool

550 FTE’s 550 FTE’s100 FTE’s

1,200 FTEs (+ 700 vendors)Average age = 36 yrs64% male / 36% female25% from 40 countries

Average length of service - 6 yrsEmployee Satisfaction = 81%5% attritionNo 1 Company to Work for in Ireland

Core to our Culture Core to our Culture

The MythsThe Myths• XboxXbox• Massage therapyMassage therapy• Chill roomsChill rooms• Family daysFamily days

The RealityThe Reality• The myths are true, The myths are true,

ANDAND• Hard workHard work• Deadline and results Deadline and results

drivendriven• Performance based Performance based

cultureculture• Expect the Expect the

impossible!impossible!KEY TO INCLUSION…Refreshingly informal

Genuine focus on people

Passionate and committed

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Why Diversity Matters at Why Diversity Matters at Microsoft…Microsoft…

Talent Attract and retain the best and

brightest employees to gain a competitive advantage in the new emerging markets.

Innovation  Build innovative products

using the diverse talents, ideas and

perspectives for an increasingly diverse

customer base.

Customers   If we truly want to have a

compelling value proposition for our

customers, we must understand the rich diversity within our

customer base.

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The Business Case for Global Diversity & The Business Case for Global Diversity & InclusionInclusionOur consumer base has changed dramatically and will continue to grow more diverse Our consumer base has changed dramatically and will continue to grow more diverse

in the years ahead, so:in the years ahead, so:

• Need to anticipate, respond and serve the needs of the changing consumer Need to anticipate, respond and serve the needs of the changing consumer marketplace.marketplace.

• Emerging markets (China, India, Russia, Brazil) will experience technology sales surge Emerging markets (China, India, Russia, Brazil) will experience technology sales surge through the next 5 years.through the next 5 years.

• Use D&I to better serve specific existing markets— e.g., tech-savvy women purchase Use D&I to better serve specific existing markets— e.g., tech-savvy women purchase $55 billion in consumer technology products.$55 billion in consumer technology products.

• Culturally competent workforce required to deliver superior performance.Culturally competent workforce required to deliver superior performance.

Our Global Village

0

50

100

150

200

250

300

350

400

2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

Non-Minority Minority

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The Business Case for Diversity – U.S.

In the U.S. Market, Minorities are Becoming the “Emerging Majority”M

illion

s

U.S. Population by Minority/Non-Minority Group: 2000-2050

Source: The Minority Business Development Agency

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The Business Case for The Business Case for Diversity – U.S.Diversity – U.S.Diverse Customers Hold Immense Buying Power in the U.S. Diverse Customers Hold Immense Buying Power in the U.S.

MarketplaceMarketplace

Women $2.4 Trillion

Baby Boomers $1.6 Trillion

Disabled $1 Trillion

Hispanics $653 Billion

Blacks $631 Billion

Gays/Lesbians $485 Billion

Pre-Boomers or Matures $430 Billion

Asians $344 Billion

Gen Y or Millennials $172 Billion

Gen X $125 Billion

Native Americans $45 Billion

Clear and Compelling Business Clear and Compelling Business Case for DiversityCase for Diversity

Microsoft Ireland is the operations hub for Microsoft Ireland is the operations hub for 100 countries across EMEA100 countries across EMEA

We localise 35+ products into 40+ We localise 35+ products into 40+ languageslanguages

Talent pool for certain skills is pan-Talent pool for certain skills is pan-European and sometimes globalEuropean and sometimes global

Hiring managers demandHiring managers demand

Language and cultural capabilityLanguage and cultural capability

Diversity of thoughtDiversity of thought

AND we want the best talent no matter AND we want the best talent no matter what!what!

Philosophy Philosophy

Maximise the potential of all Maximise the potential of all employeesemployees

Diversity and Inclusion are not Diversity and Inclusion are not separate programs – woven separate programs – woven throughout our people processes and throughout our people processes and prioritiespriorities

Leverage people processes to drive Leverage people processes to drive changechange

We need to Deliver A Compelling Employee Value Proposition

to engage all of our employees (and people we would like to hire!)

Our Approach to Diversity & Our Approach to Diversity & Inclusion – Four StrandsInclusion – Four Strands

• Core to our CultureCore to our Culture

• Focus on Employee EngagementFocus on Employee Engagement

• Vehicle for Employee InvolvementVehicle for Employee Involvement

• Integrated with Corporate Social Integrated with Corporate Social ResponsibilityResponsibility

Lessons Learned…Lessons Learned…

Representation countsRepresentation counts

Policies and programs don’t create Policies and programs don’t create change – managers and leaders dochange – managers and leaders do

Make it easier for managers Make it easier for managers

Retaining talented women in the Retaining talented women in the work force demands flexibilitywork force demands flexibility

Stop thinking only about the majority Stop thinking only about the majority of people onlyof people only

Initially, working in diverse groups is Initially, working in diverse groups is hard but the benefits do materialisehard but the benefits do materialise

Results? Results?

Results at Microsoft?Results at Microsoft?No1 Best Company to work for in No1 Best Company to work for in EuropeEurope

Employee feedback trending upEmployee feedback trending up83% Overall Employee Satisfaction83% Overall Employee Satisfaction

92% proud to work for Microsoft92% proud to work for Microsoft

93% My manager treats employees with dignity 93% My manager treats employees with dignity and respect and respect

91% I would recommend Microsoft as a great 91% I would recommend Microsoft as a great place to workplace to work

Developing the businessDeveloping the businessConstant innovation and continuous Constant innovation and continuous improvementimprovement

Flexibility in workforceFlexibility in workforce

Questions?Questions?

© 2005 Microsoft Corporation. All rights reserved.© 2005 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.