MEC Magazine November 2023 by CPI Trade Media

ASIA PACIFIC

HKA’s Ben Highfield on a market full of contrasts

LEARNING

Up-close with Dubai College’s new Jafar Centre

COLLABORATION

Shawn Basler on Perkins Eastman’s project expertise NOVEMBER 2023

107

FOR THE CONSTRUCTION SPECIALIST Licensed by Dubai Development Authority

Meet the Champions of ED&I

The leaders of a new business culture

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Contents | 01

November 2023 Issue 107

Cover Story

In quest of ED&I

On the following pages, we both review the recent ED&I: Women in Construction Summit (surely the most in-depth regional debate event held on this topic?) and then preview The Diversity Report, our annual online review of how leading companies are tackling some of the most challenging aspects of an ED&I-compliant culture On Topic

UAE Q3 2023 Real Estate Market Overview UAE’s commercial real estate sector thrives amidst strong supply and demand factors: JLL

12 Close-up

From the Middle East to Asia Pacific

Insights from Ben Highfield, HKA Partner, Regional CEO, Asia Pacific, on these two major construction and engineering markets meconstructionnews.com

November 2023

02 | Contents

On Site

“It’s somewhere to feel comfortable in” ME Consultant made a site visit to the new Jafar Centre in Dubai College and spoke to its architect, Jason Burnside, Managing Partner, Godwin Austen Johnson, about the planning, objectives and successes…

In Practice

Thriving on Diversity

Shawn Basler, Co-CEO and Executive Director, Perkins Eastman, explains how the firm’s international footprint is built on collaboration, multiple perspectives and project expertise

Diversity Report

Beyond the Data

We asked international dispute resolution and risk data expert HKA to take their own look at our key set of questions - with their extremely detailed answers completing our series of ‘deep dives’ into the benefits of an ED&I-led business culture…

48 Diversity Report

Questions of Diversity

What are the issues, the strategies and the outcomes when a Fortune 500 company confronts the challenges of creating an ED&Icompliant culture head-on? Here, two key figures from global real estate titan JLL give their views November 2023

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04 | Welcome

Group MANAGING DIRECTOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5471 MANAGING PARTNER VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5713 DIRECTOR OF FINANCE & BUSINESS OPERATIONS SHIYAS KAREEM shiyas.kareem@cpitrademedia.com +971 4 375 5474 PUBLISHING DIRECTOR ANDY PITOIS andy.pitois@cpitrademedia.com +971 4 375 5473

Editorial EDITOR

Forgive me for labouring the point… Given that we’ve just successfully delivered the ED&I: Women in Construction Summit and that in this issue of the magazine we carry the official review of the event - not to mention the preview of our much-anticipated supplement, The Diversity Report - I hope you’ll forgive me if I rehash a couple of points emerging from the Summit. Firstly, there is clearly a good deal of interest around organisations getting more committed to Mentoring junior members of staff. At the Summit, we had a panel dedicated to the impact of Mentoring, and one of the most interesting themes emerging from this debate was whether or not a Mentoring function should be delinked from the HR department - with the panel overwhelmingly taking the view that yes, it should. How else, they argued, could it truly put individual interests first in an unbiased and objective way, without fear of feedback back into the organisation? Yet this view contrasted 100% with the opinions expressed in the C-Suite panel, which had taken place only one hour earlier. There, the participants felt strongly that this de-linking could potentially November 2023

PAUL GODFREY

encourage ‘maverick’ behaviour and take power away from the core management of the organisation! So it seems that no aspect of an ED&I-compliant culture is ever quite separate from the bottom line values and opinions of the leadership, however entrenched these may be… Another point to mull over. How much real power should the ED&I function have? If it is given real freedom and leeway to make ED&I values paramount across the business, in actual fact it means recalibrating the business as a whole. Nothing more or less. This is the powerful point that Adam Smith, Managing Director, Polypipe Middle East, made when he was on the C-Suite panel. Yet, how many businesses of all those represented in the ED&I: Women in Construction Summit actually put those values front and centre, from a fully strategic and operational standpoint? Plus, if that’s the case with the ‘enlightened’ businesses at the event, what about the great bulk of organisations across the GCC who have little or no awareness of ED&I values in the first place? Food for thought, right?

paul.godfrey@cpitrademedia.com +971 4 375 5470

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06 | On Topic

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London Gate to deliver 2,000 units across Dubai in six months Developer with international credentials set to focus on prime areas of Dubai, including the Marina, Al Furjan and JVT ENERGY

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Red Sea Global launches Saudi’s largest EV charging network 150 charging stations ready to power-up fleet of 80 courtesy sedans, as sustainable resort prepares for first tourists CONSTRUCTION

Damac awards US $326.7mn contract for construction of villas in Damac Lagoons Spanning 4.5m sqm Damac Lagoons is the company’s third master community development in the city and is located adjacent to Damac Hills

Delivering a Vision – The Knowledge, REGISTER NOW Engineering, Technology and nuances 29 November 2023 transforming the Kingdom Rosh Rayhaan by Rotana, Riyadh

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Miral and Emerge to develop 524kWp project in Yas Bay Waterfront

FINANCE

UAE is ranked 4th globally for renewables FDI

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Construction of world’s first energy island given the all clear

November 2023

8 | On Topic

November 2023

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On Topic | 9

UAE Q3 2023 Real Estate Market Overview UAE’s commercial real estate sector thrives amidst strong supply and demand factors: JLL

he ongoing dynamic of robust demand and limited supply of office space is driving the performance of the UAE’s office sector, further empowering landlords in both Dubai and Abu Dhabi, according to JLL’s Q3 2023 UAE Real Estate Market Overview. In the third quarter, Uptown Tower in Jumeirah Lakes Towers marked the first major completion of an office project in Dubai this year, contributing around 46,000 sq. m. of gross leasable area (GLA), bringing the total office stock in Dubai to 9.2 million sq. m. An additional 72,000 sq. m. of office space is expected to be delivered in Dubai in the last quarter of the year. In Abu Dhabi, government and semigovernment entities played a pivotal role in driving office demand as they remained key occupiers in the capital city. Abu Dhabi’s total office stock stood at 3.9 million sq. m. in the third quarter; however, the capital city is anticipated to meconstructionnews.com

see the addition of 41,000 sq. m. of office space during the rest of this year. Dubai witnessed a 11% year-on-year (Y-o-Y) increase in average Grade A rents within the Central Business District (CBD), with rates reaching AED 2,300 per sq. m. per annum. Furthermore, the office vacancy within the CBD remained steady at 10%. Occupiers in the emirate encountered increasingly stringent lease terms, leaving limited room for negotiations and necessitating prompt decision-making to avoid losing out to competing tenants. In the capital, average vacancy dropped to 22% which in turn pushed up rental rates. Abu Dhabi experienced a 13% Y-o-Y rise in average city-wide Grade A rents, amounting to AED 2,000 per sq. m. per annum. Faraz Ahmed, Associate, Research at JLL MENA, said: “With the growing number of international firms setting up their offices in the UAE, the limited availability of quality office space will add to the upward pressure on rental rates in the short term. As such, potential tenants can expect to face competition and

The region’s strongest infrastructure network and high levels of urban connectivity contribute to a buoyant real estate market.

November 2023

10 | On Topic

might encounter limited flexibility from landlords in the current market conditions. Other sectors including residential, retail and hospitality continued to experience robust growth, which is cementing the UAE’s position in the real estate industry.”

Abu Dhabi reached approximately AED 6.6 billion during the third quarter, indicating a significant increase of 50% compared to the same period last year. In Dubai, sales prices rose by 20% and rental rates increased by 22% in August compared to the same period last year. Average villa sale prices in Dubai reached a new high, surpassing the previous peak of 2014 by 8%. In Abu Dhabi, sale prices saw a 3% increase, while rental rates grew by 1% annually. During the third quarter, Dubai witnessed the completion of approximately 6,800 residential units, consequently raising the total stock to 708,000 units. Simultaneously, the capital added around 1,400 units, bringing the total residential stock to 284,000 units. In the remainder of this year, Dubai is expected to see the delivery of an additional 13,000 units, with 80% of this consisting of apartments, whereas Abu Dhabi is on schedule to complete 2,200 units, primarily comprising of apartments located within master planned communities such as Al Raha Beach, Al Maryah Island, and Al Reem Island.

UAE’S RESIDENTIAL MARKET CONTINUES TO EXPERIENCE NOTABLE GROWTH AMIDST STRONG DEMAND; DUBAI’S VILLA SALE PRICES SURPASS 2014 PEAK IN Q3 2023

The residential sector is experiencing notable growth, driven by the substantial number of off-plan projects and recent launches in key urban areas such as Maritime City, Expo City, Me’aisem Second, and the revived Palm Jebel Ali in Dubai, and within the investment zones, particularly townhouse and villa projects in Abu Dhabi. Currently, more than 50% of the upcoming supply for the next two years is concentrated in Dubai Land, MBR City, and Jumeirah Village. Nevertheless, the escalating development costs and land prices are expected to encourage real estate developers to explore opportunities in secondary locations, diversifying their portfolio and expanding their presence beyond the primary areas. According to the latest data from Quanta, residential sales transactions in

UAE’S RETAIL SECTOR WITNESSED CONSISTENT GROWTH; DUBAI AND ABU DHABI WITNESSED INCREASED RENTAL RATES

During the third quarter, UAE’s retail market demonstrated consistent growth,

Dubai Office Supply

bolstered by a rise in tourism activity and domestic demand; mall operators are introducing new concepts in food and beverage (F&B), leisure and entertainment to revitalise existing retail developments. Around 36,000 sq. m. of retail GLA was delivered in the capital city during the third quarter, increasing the total stock to 3.2 million sq. m. In the remaining quarter, an additional 17,000 sq. m. of retail space is expected to enter Abu Dhabi. Dubai’s retail market continued to evolve with mall managers repurposing areas with limited footfall in the form of vibrant service hubs that offer amenities such as co-working spaces, clinics and

Abu Dhabi Office Supply

9.2m

72k

+11%

3.9m

41k

+13%

Total stock (sq m GLA)

2023 deliveries (sq m GLA)

Average Grade A rental rates

Total stock (sq m GLA)

2023 deliveries (sq m GLA)

Average Grade A rental rates

Dubai Residential Supply

Abu Dhabi Residential Supply

708k

13k

+22%

284k

+1%

Total residential stock

Expected 2023 deliveries

Average rental rates change

Total residential stock

Expected 2023 deliveries

Average rental rates change

November 2023

meconstructionnews.com

On Topic | 11

gyms. The increase in demand has resulted in a 5% year-on-year increase in average rental rates across primary and secondary malls in Dubai. The emirate saw the addition of approximately 18,000 sq. m. of retail space during the third quarter, primarily consisting of neighbourhood malls, resulting in a total stock of 4.7 million sq. m. In the fourth quarter, an additional 65,000 sq. m. of retail GLA is scheduled for completion. In addition to accommodating new retail concepts, retailers have recognised that smaller developments, such as neighbourhood and community malls, provide a more accessible platform for

the third quarter bringing the total hotel stock to 152,000 keys, an additional 6,000 keys are expected to be delivered in the remainder of the year. Dubai’s occupancy rates increased to 76% for year-to-date (YT) August as the emirate welcomed approximately 9.83 million overnight visitors in YT July, demonstrating a moderate increase of 1% in revenue per available room (RevPAR) to USD 129. Abu Dhabi maintained a stable total stock of approximately 32,500 keys with no new hotel openings in the quarter. Focusing on becoming a year-round family friendly destination, the capital witnessed the number of hotel guests in YT July increase by an impressive 32%, with significant contributions from Indian, British, and Egyptian nationals. The influx of tourists improved the performance indicators in the capital with RevPAR experiencing significant gains, increasing by 27% to USD 91 and city-wide occupancy reached 70% in YT August 2023. As the winter season approaches, effective revenue management strategies will be crucial for hotel operators in both cities to capitalise on the growing demand and achieve their revenue targets. By applying sound strategies, operators can optimise performance and further strengthen their position in the market.

establishing and capturing local demand with homegrown concepts. Conversely, international market entrants are targeting premium retail spaces in strategically positioned super regional and regional malls. As a result, landlords are becoming more selective in tenant choice and less flexible in lease negotiations, offering fewer incentives. INFLUX OF TOURISTS SPURRING THE UAE’S HOSPITALITY SECTOR; DUBAI TO ADD SIZEABLE HOTEL KEYS IN THE LAST QUARTER

While Dubai’s hospitality sector witnessed the addition of 400 keys in

Dubai Retail Supply

Abu Dhabi Retail Supply

4.7m

65k

3.2m

17k

Total stock (sq m GLA)

2023 deliveries (sq m GLA)

Average rental rates change

Total stock (sq m GLA)

2023 deliveries (sq m GLA)

Average rental rates change

Abu Dhabi Hospitality Supply

Dubai Hospitality Supply

152k

76%

32.5k

200

70%

Total hotel keys

Expected 2023 deliveries

Occupancy YT August 2023

Total hotel keys

Expected 2023 deliveries

Occupancy YT August 2023

meconstructionnews.com

November 2023

12 | Close-up

Ben Highfield, HKA Partner, Regional CEO, Asia Pacific.

With such a strong track record in the Gulf, how did it feel moving on from this market as you took over responsibility for HKA in Asia Pacific?

n acknowledged dispute resolution expert known for his work across the Middle East, Ben Highfield took on the role of global risk mitigation consultancy HKA's operations in Asia Pacific. But, regardless of their commonalities and differences, the two markets are so closely entwined, he'll not be quitting his Dubai base anytime soon, Ben tells Middle East Consultant.

I would have mixed feelings about leaving the Middle East behind, especially at such an exciting time. But I'm still closely involved with clients operating here and will continue to be, even as Regional CEO for Asia Pacific. Dubai has been my home for 16 years. The first three I spent with consultants High-Point Rendel working on the Dubai Metro. Then, I built my career with HKA after joining its former parent company, Hill International, in 2010. As a Senior Consultant specialising in delay and quantum claims analysis, I soon realised I had an acumen for client care and could bring work into the business. It started with Japanese contractors delivering major projects in the UAE. Over the next few years, I was promoted several times and, by 2014, to Senior VicePresident. I was ambitious, saw the huge potential of the Saudi Arabia market, and was appointed Country Manager. From nothing, we developed relationships with the most significant players and became involved in massive infrastructure projects such as King Abdullah Economic City, the Financial District, and Haramain high-speed railway. Because of this Saudi success, I was asked to take over Qatar as Country Manager, turning around what was a lossmaking business in 2014-15.

From the Middle East to Asia Pacific Insights from Ben Highfield, HKA Partner, Regional CEO, Asia Pacific, on these two major construction and engineering markets November 2023

Some of our biggest deals back then were with Korean and Japanese contractors and, later, Chinese companies. This nexus between the Middle East and Asia has become increasingly important. Seoul, Tokyo and Beijing are the engines of construction in many other parts of the world. India's contractors are also spreading their wings, and their domestic market is booming. So, as well as being my home, Dubai is strategically positioned for supporting our client bases in Asia Pacific and India while also working closely with HKA colleagues in the Middle East who also serve projects being delivered by those same clients. What are the main challenges you face as Regional CEO Asia Pacific?

The region is very diverse, culturally, and national markets have their own dynamics. My role has also changed significantly. As Continent Head of Asia, I continued mainly as a work winner, as in the Middle East. Transitioning over the last 12 months to Regional CEO was a new challenge. As well as fulfilling my responsibilities to clients, I lead a growing business and a bigger team across a much larger territory. My role is to join the dots between our clients' needs and our people's capabilities. We restructured the Asia Pacific business and have a highly skilled and flexible team led by three Partners who are from the region. Managing and motivating people demands great emotional intelligence, and it is an essential part of nurturing and sustaining a collaborative culture, which is crucial. We recruit not just on capabilities but also behaviours. It does not matter where you're from, your nationality or ethnicity. As well as being highly capable, will you be collaborative and open yourself up to peer review? We know that people from different backgrounds and cultures bring their own ideas and experiences to the table. A diverse team is stronger, and that's what our Asia Pacific team looks like. meconstructionnews.com

Close-up | 13

meconstructionnews.com

November 2023

That collaborative way of working extends between teams as well as within them. We have a very effective alliance with our HKA colleagues in the Middle East. Our regional operations are not franchises protecting their own interests. They collaborate really well and ensure consistent quality for clients. So, I still work with many of the same outstanding people and clients, but in different locations across Asia, while also being on the ground in the region where many of their big projects are. How do the different cultures and ways of working in Asia Pacific influence dispute resolution?

There are many commonalities as well as contrasts between the two regions. The scale of projects is not dissimilar, November 2023

Changing market dynamics have led to Singapore becoming one of the world's leading centres of large-scale Arbitration.

The perception is that Singapore is where you want to arbitrate. It tends to be more cost-effective than European centres but relies on a very similar pool of arbitrators”

though, in Asia, designs tend to be more practical and less lavish than the landmark statements enabled by sovereign wealth funds. The approaches to contracting are also similar, and there is the same tendency to fast-track projects. The Middle East relies more on imported labour, which can give rise to workforce problems, whereas most workers in Asia Pacific tend to be indigenous. Disputes are also more common in the Gulf. The cultural preference in Asia is for negotiation, leading to amicable settlement. But both regions are moving towards arbitration, which accounts for a growing share of dispute resolution. Compared with their domestic markets, Asian contractors are competing against a wider range of international firms in the Middle East. And, due to the fallout meconstructionnews.com

Close-up | 15

a healthy pipeline of infrastructure and capital projects. As I mentioned, India is a very exciting market with a booming economy. HKA is heavily involved in rail and power projects there and in Indonesia and the Philippines, where we have a lot of experience. As well as oil and gas, there are many renewable energy projects in the pipeline, including solar and wind power. We are engaged in Taiwan and Singapore. Australia is resource-rich and another hot market where demand still outstrips local capacity. What does the advent of Saudi Arabia's gigaprojects mean for this and other regions?

from COVID-19 and economic conditions, cash is tight in Asia Pacific and clients are cost-conscious. So, we have to demonstrate how we generate real value - through all our services, not just Construction Claims and Expert Services. Our other work streams are Forensic Technical Expert Services, Forensic Accounting and Commercial Damages, and Project Advisory Services. In every case, we provide the sound and impartial advice clients need to make the right decisions. We are trusted advisors, not providers of commoditised consultancy services. Rather than transactional relationships, we build strong, ongoing partnerships with our clients. And HKA's strong track record puts us in a good place to manage current economic challenges. Asia Pacific also has meconstructionnews.com

They will have far-reaching repercussions. First, many of the contractors involved are Chinese, Korean or from other parts of Asia. This will further reinforce the connections between the two regions and our engagement with existing and new clients. The implications for capacity and supply chains are also huge. Rolling out all gigaprojects at once is overheating the Middle East market, but the effects are felt in Asia too, in local markets and in the workload of its internationally active contractors. The whole supply chain is heavily reliant on Asian producers, more so than any other region. Many projects worldwide are impacted to some extent by higher materials prices, supply bottlenecks and delays. You could say that gigaprojects involve just about every region while also driving change in contracting practices in the Middle Eastern market. Asia Pacific has major arbitration centres, including SIAC, HKIAC, KLIA and BIAC. How do these compare with those in the Middle East, such as DIAC, Saudi, etc?

Arbitration continues to grow in both regions. Singapore International Arbitration Centre (SIAC) and the Hong Kong International Arbitration Centre (HKIAC) used to have equal shares in the

Asia market. However, with the enactment of the Hong Kong national security law, SIAC has increased in popularity and appears to be taking market share from the traditional European centres. The perception is that Singapore is where you want to arbitrate. It tends to be more cost-effective than European centres but relies on a very similar pool of arbitrators – large cases are dominated by UK-based barristers. There is an abundance of exceptional lawyers in Singapore for the administration of arbitrations. Beijing has more arbitrations than any other centre in the world, but it's overlooked because they are largely China-based cases. To give you an idea of the scale of interest in Beijing, when I gave a presentation at a webinar event there, 22,000 people logged on! This Chinese workforce is prepared to upskill. What's more, there's a strong focus on impartiality and professionalism. However, the range of facilities is not quite up to the mark yet, and there's the language barrier, unlike in Singapore, where English is the lingua franca. During my time in the Middle East, the appetite for arbitration has increased steadily, notwithstanding the unexpected abolition of the DIFC-LCIA centre's administering body; this will also have increased the number of parties referring matters to SIAC. The Middle East is moving away from amicable settlement. As governments crack down on corruption, parties to public contracts are nervous about settling amicably, preferring to place decisions in the hands of a third party. Asia still has a strong cultural predisposition to amicable settlement. The region, however, is trying to move forward with other alternatives for dispute resolution – such as adjudication – in a way not seen in the Middle East. From its roots in English legislation, ostensibly to reduce subcontractor bankruptcy, adjudication has gained traction, particularly in Singapore and Malaysia. There are few other statutory alternatives to arbitration and litigation November 2023

16 | Close-up

in the Middle East. However, there is growth in the use of independent expert determination, where the parties appoint a third-party consultancy or law firm to recommend a fair settlement. We're also involved in many industries besides construction and beyond oil and gas, power and utilities – from aerospace and defence, telecoms, media and technology to financial services, manufacturing, healthcare and life sciences, and others. For example, our forensic accounting and commercial

November 2023

damages team recently worked on a very large crypto case. Do you see HKA becoming increasingly proactive by providing services at the earliest possible stage in negotiations?

Not just in negotiations, we can and do make incisive contributions before work even begins – in the preconstruction and planning phases. Our Project Advisory Services are a significant part of the HKA business in Asia Pacific. My colleagues help clients

set up their projects to succeed. With our deep understanding of what goes wrong on projects, we are best placed to advise contracting parties on mitigating risk and minimising claims and disputes. In Australia and New Zealand, for example, HKA supports national and state governments and utilities in areas ranging from engagement with the market and procurement strategies to project planning and controls. Other clients in the Asia Pacific region also understand the value of upfront investment in their projects. In China, for example, we are advising a major chemical company on how to de-risk a US$20 billion development by reviewing its systems for procurement, monitoring works, and managing interfaces between works packages. An Indian contractor with whom I've worked in the past has won $US8 billion worth of contracts in Nigeria and Saudi Arabia. They asked me how HKA could help them manage this huge increase in their workload as effectively as possible. As markets mature and project complexity increases, I expect this trend of earlier engagement to continue. Our advisory services are also being rolled out in the Middle East to support preparations for Saudi Vision 2030 gigaprojects. More widely, HKA also shares knowledge learnt from our work on distressed projects with the global construction and engineering industry. Our CRUX integrated research programme analyses the causes of claims and disputes worldwide and by region. We publish the results annually in our CRUX Insight Report. Anyone can interrogate our unparalleled dataset through the free-touse CRUX Interactive Dashboard. Our data specialists help clients calibrate risks in various sectors and new markets and benchmark performance against various parameters. CRUX is unique, but part of our purpose at HKA is to help clients make the right decisions for better commercial and project outcomes. meconstructionnews.com

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18 | In Practice

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In Practice | 19

Thriving on Diversity Shawn Basler, Co-CEO and Executive Director, Perkins Eastman, explains how the firm’s international footprint is built on collaboration, multiple perspectives and a project expertise where diversity is always front and centre…

hawn, how would you - in one sentence - describe the company’s Mission and market purpose?

“It’s very straightforward. We believe that the design should have a positive impact on people's lives and the environment.” How difficult is it to maintain that purpose

“Each of our offices around the world brings its own distinct perspective, rooted in its culture, local design ethos, and the specific challenges and opportunities inherent to its region. This diversity of viewpoints and expertise serves as a catalyst, enriching our collective knowledge and enhancing our design solutions. By harnessing these insights, we can create designs that are not only beautiful but also deeply meaningful and contextually relevant. This multifaceted approach strengthens our brand. More importantly, it allows us to connect and resonate with clients on a global scale, ensuring our solutions are both aesthetically pleasing and culturally sensitive.”

throughout the international expansion and to ensure that each branch

Is there a distinct style of project

exemplifies it? (In fact, does that purpose

work from region to region, or are we

deliberately morph in certain locations?)

going through an era where there is a

“Maintaining consistent design quality across all our global offices is absolutely paramount. We operate as a single entity, and our collaborative approach is a hallmark of our identity.”

distinctive ‘world style’?

“We are not a firm that has a specific style. Instead, our approach is rooted in adaptability and contextual understanding. While we aim for contemporary interventions in our

To what extent do the offices in the USA drive the brand; is there equally strong momentum from offices across the group? meconstructionnews.com

Shawn Basler, Co-CEO and Executive Director, Perkins Eastman.

November 2023

20 | In Practice

projects, it's crucial for us that they resonate with the local context, culture, and heritage of their location. Instead of simply focusing on the architectural form, we prioritise the integration of art, culture, people, and the essence of the place in each project. This ensures our designs are both modern and deeply connected to the communities they serve.” Tell us something about how Perkins Eastman picks its teams: for how long has there been a focus on Diversity and multiculturalism, for example?

“We look at teams holistically. We prioritise diversity, not just in terms of skills and expertise, but also in backgrounds and perspectives. A diverse team inherently brings a rich tapestry of ideas to the table, enhancing the design process. Our commitment to diversity and multiculturalism isn't recent; it's been a foundational principle, ensuring our designs benefit from varied viewpoints and experiences.”

World-class innovation combined with empathy for local cultural norms has become a Perkins Eastman trademark.

a global brand. Our 'Human by Design' approach is not confined by borders; instead, it's interpreted and applied through the perspective of a worldwide design firm, ensuring its relevance across all regions we operate in.” How do you see the ‘next steps’ in the business’ international growth?

Is there a distinctive Perkins Eastman ‘culture’? Did it originate in the USA, or was it born elsewhere and then taken up as the ‘lingua franca’?

“Perkins Eastman's culture is deeply rooted in our 'Human by Design' philosophy. While this ethos originated in the US, owing to our firm's inception here, it's essential to understand that we are now

“Our vision for global growth is expansive, with an emphasis on regions where we're witnessing rapid evolution. The Middle East remains a significant part of our practice, and our presence continues to strengthen in India and China. We're also tapping into the potential of Southeast Asia with our new office in Singapore. What's fascinating is observing how these offices

synergise, sharing expertise and knowledge to elevate our global practice. In our view, the distinction between 'International' and 'Domestic' is blurred; we operate as one cohesive global entity, united in our pursuit of design excellence.” Any current projects you are working on in the Middle East that you could share with us?

“One particularly notable project we're working on is Kuwait University. This expansive project includes five colleges, a 700-bed teaching hospital, a major research centre, a recreation centre, student and faculty commons, a mosque, and housing. Spanning six million square feet, its construction is expected to last seven to eight years. In Saudi Arabia, we're designing four new luxury hotels for Marriott. Additionally, we're eagerly anticipating the opening of another hospitality project in the UAE: the Anantara Mina Al Arab Ras Al Khaimah Resort. We're excited to celebrate this milestone with our clients.” Can you tell us a little more about yourself,

your

commitment

architecture, your ‘backstory’?

“I have been in architecture my whole life, so I’m pretty well committed to it. Right?! My whole career has been based on working globally, while my home is NYC, the most culturally diverse city in the world. I have worked on projects from Asia to the Middle East, Africa, and Latin America. This is why we believe in a firm that has a global footprint and can work anywhere in the world.” November 2023

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22 | On Site

“IT’S SOMEWHERE TO FEEL COMFORTABLE IN”

November 2023

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On Site | 23

The new Jafar Centre in Dubai College doesn’t claim to be a ‘touchstone’ space suitable for every kind of learning, but it’s designed to answer a powerful raft of student needs and make studying a natural, engaging choice. Middle East Consultant made a site visit and spoke to its architect, Jason Burnside, Managing Partner, Godwin Austen Johnson, about the planning, objectives and successes…

meconstructionnews.com

November 2023

24 | On Site

Transparency and open space are paramount in a structure designed to integrate many different learning styles.

irstly, Jason, I know that a lot of input for what the Jafar Centre should be like came from the teachers and students. What kind of input did they actually give and how was all that collated?

“The first thing I should say is that the Centre is the culmination of a good deal of work over multiple years, so there are several different research and planning aspects here. The project itself grew from a larger strategic masterplan that would answer quite complex questions about attitudes to learning, whether digital and narrative styles of study can be put together, and the style of environment that it’s best for people to learn in. “But first things first. We set about creating an online survey and we split that between students, parents and staff - and of course, we changed the questions for each group, to tease out different things. If we were going to put together a masterplan, we needed to know from everyone’s perspective what would be the key verticals on that masterplan. “One of our approaches for getting a targeted sense of direction was to remind people that in terms of scale, this plot was November 2023

occupying a very, very restricted site. So, if you only had this much space, what would be your top three priorities of how to use it and what would you put in it? We then invited student representatives from Year 7 to Year 13 to come in and present to us. Once we had synthesised these approaches, we were then under real pressure, presenting a raft of ideas back to the SLT team and then to the students themselves! We stayed in touch with the college every week, coming in and presenting new ideas, and getting on with the very practical aspects, like specifically tailoring each space to very specific ideas and functions. “The Jafar Centre as it stands today is designed to make you curious,

transitioning you from the most hi-tech subjects like Computer Science into the most avowedly analogue disciplines, like Art. But it always puts different aspects of learning first and foremost. The Centre will challenge how we should use space, but at the end of the day, you can come back, get a book, read, and relax.” Given the open plan, collaborative spaces and transparency of the Centre, how secure is it and what protection does it offer the students?

“The first thing I should say is that we are so fortunate in this region to be in such a stable country to start with. This enables us to be better-placed to respond to the students’ own requests for more meconstructionnews.com

light, more sense of an ‘outdoors being indoors’, where space can be given over to biophiliac features - and therefore always avoids being too sterile. Yet, having said that, for any learning environment in today’s world, security is front and centre, and while we have done our best to make the CCTV here less obtrusive, it is there nonetheless - a cluster of advanced systems allow teachers and admin staff to see if anyone is roaming around in the corridors, who perhaps shouldn’t be here. “Data is of course everything, and the technology harvests and analyses it ensure that the right levels of protection can always be put in place, without detracting from that strong sense of transparency and freedom.” meconstructionnews.com

What In spite of visual transparency, the Jafar Centre epitomises smart technology and sensitive use of CCTV.

The Centre will challenge how we should use space, but at the end of the day, you can come back, get a book, read, and relax”

are

the

primary

features

contributing to the building’s LEED Gold certification?

“This is actually building No. 4 in terms of the LEED Gold projects we have worked on within the education sector. Yet to meet the stringent requirements of a Gold certification doesn’t always mean that you have to create something that is bristling with technology. If you can plan and design sensibly, you don’t need a huge amount of tech to back this up. So here, for example, we wanted to put an accent on larger, biophiliac dimensions, with a large, open atrium space, which ticks so many boxes in terms of delivering sustainable values. “This open space can even be used as November 2023

26 | On Site

another classroom; students can go out there and brainstorm and come back to the actual classroom with fresh ideas. In that way, people can see these as spaces to work, rather than places to go away and hide in. Throughout, we wanted everything to be very natural, right down to the selection of the materials and the plants. This as much a part of the learning process and its environment as the physical dimensions of the classroom itself.”

The library is the absolute heart of the Jafar Centre and offers many different reading environments.

November 2023

Is the Jafar Centre generically related to other structures in the Godwin Austen Johnson portfolio and what does it tell us about your ‘signature’ approaches to project work?

“If there is one overriding approach, it’s that we always want to do our best. I started in the practice 22 years ago, and that experience here is not at all uncommon. What’s more, a lot of the people in the team are very familyoriented - and I mention this because while they bring a lot of passion to their work, they also have a good deal of very practical educational experience too. “We try to give clients something very different: we identify some part of the client’s DNA that we then try to make a

big part of the design. Also, we understand the very human scale of local vernacular architecture, and a lot of what we do is try to imagine and encapsulate how you’ll feel as a user of that building. It’s not about a shiny façade or huge scale - that’s too easy! It’s ultimately about somewhere that you feel comfortable in.” How long did the planning and construction stages last, given the sophistication of the educational objectives at stake here?

Once we identified - from collating all the research - exactly where the Jafar Centre was going, we had to bring the contractor on board quite quickly, so that we could create and manifest all these ideas in the

meconstructionnews.com

On Site | 27

Jason Burnside, Managing Partner, Godwin Austen Johnson.

context of a fully functioning school. When the timing was right, we probably designed it within 3-4 months, but we then had to build it within 10 months! This had to be done before the school reopened: for example, all the books had to be transported, with the library ready and fully fitted-out, and so on. “At the end of the day, everything was completed within budget and delivered one week early. But I have to tell you that it’s all in the planning….!”

a change, but it is designed to provoke a discussion on the theme of ‘if we did want to change, how exactly would we change’? “So, it’s about preparing for transitions and opportunities in the way we live and work. These buildings need to become

‘educators’ - giving people space to learn in the ways that you want to, so that you can relax and do what works best for you. “How do we facilitate better learning? We can create a working chassis that the students can also manipulate: and by this I mean that there is always an element that is, in a way, imperfect, and which we’ll get some more feedback on over time. It’s not done in a way that puts architecture in your face, but rather, creates lots of different environments to read and learn in, in ways that suit you best. If all that we can do is to make sure that people enjoy their time in this building, then wouldn’t that be a great mantra for the next two or three buildings? I think it would.”

To what extent does the Jafar Centre incorporate ‘Smart’ features and technology?

“There is a reasonable amount of Smart tech that is hiding behind the surface. Let me give you an example: this building is five times bigger than the one we demolished in order to build it, but we still have exactly the same electrical load. This is only possible by using as much AI-led information and data as you can possibly gather. Having said that, technology is an enabler and something that we can use to push boundaries, but it shouldn’t be all that we think about.” How does the Jafar Centre continue and extend Godwin Austen Johnson’s historic

relationship

with

Dubai

College?

“I think the best way to describe this is to say that the building is not the start of meconstructionnews.com

November 2023

28 | ED&I Summit

November 2023

meconstructionnews.com

ED&I Summit | 29

In quest of ED&I On the following pages, we both review the recent ED&I: Women in Construction Summit (surely the most indepth regional debate event held on this topic?) and then preview The Diversity Report, our annual online review of how leading companies are tackling some of the most challenging aspects of an ED&I-compliant culture. But first, let’s take an in-depth snapshot of the Summit, which took place on 31st October in the Habtoor Grand Resort, Dubai

irst things first. The day’s agenda was hosted by not one MC, but two – with well-known broadcaster Laura Naylor sharing the stage with Paul Godfrey, Head of Content, Middle East Consultant. They kicked things off with a powerful story about People of Determination as a focus for change in workplace culture - looking at no less a figure than the great American president, Franklin D. Roosevelt - and then went on to review of the key themes throughout the event, explaining why it meconstructionnews.com

represents an important milestone in lobbying for ethnic and gender equity in the GCC construction sector. The day’s keynote presentation then followed, with Chris Bernard, Partner, Global People Recruitment & Equality, Diversity & Inclusion, HKA, giving a powerful speech on the theme: ‘ED&I opportunities, road-blocks and what the data is telling us’. So, Chris asked to what extent are companies internationally taking up the benefits of an ED&I-led culture, and what areas are leading the way? Where do we see the primary obstacles and how best will they be overcome? What are the elements where best progress is being made and how can we all follow suit? As always, her presentation was packed with an excellent array of primary data and cross-referencing of the key international benchmarks and regulatory standards. There then came two innovative fireside chats, with Paul Godfrey speaking

first to Anne-Lyse Raoul, Head of Diversity, Equity, and Inclusion (DEI), Europe, the Middle East, and Africa (EMEA), JLL. Their conversation centred on the theme: ‘The hallmarks of a compliant and EDI-aware organisation’. So, as we lobby for ED&I fair play and gender equality, what are the aspects that the truly compliant business will embody? What are the corporate directives that need to be issued and followed? What is the engagement of HR, Human Capital and the main Board? AnneLyse Raoul’s stunningly inventive answers earned her a thoroughly well-deserved standing ovation - the first that the six-year history of this event has ever seen. Then, Paul spoke with Naomi Miles, Vice President of Human Resources, Middle East and Africa, AtkinsRéalis, on the theme of: ‘Bringing ED&I into the business’. Naomi explained the steps that an organisation should follow to properly ensure adoption of an ED&I compliant culture. She looked at November 2023

30 | ED&I Summit

what must come from the Board - trickling down effectively - and then, how should these initiatives be managed and acted on day-today? Furthermore, what are the additional roles that HR professionals must play? HOW DO WE REALLY ACHIEVE A CULTURE OF ED&I?

The day then turned to focus on the highly practical experiences and strategies of international architectural firm, Perkins Eastman, with an expert panel session titled: ‘Practical Steps to a Culture of ED&I’. Perkins Eastman has grown from a single office to an international and highlyrespected architectural firm. From Day One, it has placed the need for Diversity front and centre of the business - a decision reflected in its recruitment practices, client-facing teams and creative output. How does this work in practice? So, the team from Perkins Eastman tackled and explained the key issues and challenges from each of their own highly unique and perceptive standpoints. November 2023

The Perkins Eastman panelists were: Supriya Thyagarajan / Managing Principal, Mumbai / Perkins Eastman • Li Ren / Project Architect / Perkins Eastman • Carolina Godinho / Associate / Perkins Eastman • Christina Bahou / Associate / Perkins Eastman The session was moderated very ably by Preeti Mogali / Associate Principal / Perkins Eastman. Each of the panelists gave supremely personal examples of the value of creating and spreading awareness of an ED&I agenda. Carolina Godinho’s powerful story revolved around her experiences in Shanghai, where - because she was a woman - the client had completely ignored her, preferring to address her male colleague! However, that colleague was quick to reaffirm that Carolina was the real expert here, and that the client should definitely acknowledge that and speak to her first and foremost! •

Meanwhile, Li Ren had become so used to being cast in the role of the ‘Asian IT specialist’, that on arriving for his interview with Perkins Eastman, he found it hard to believe that he was encouraged to ‘think bigger’ and assume a role truly commensurate with his skillsets and aspirations. This was to result in his creating a superb portfolio of advanced and sophisticated urban planning projects in Washington DC. For Supriya Thyagarajan, working from the perspective of a senior director, incorporating ED&I values into the business wasn’t simply about ‘doing the right thing’, but was always an aspect driven by the commercial benefits of getting more diverse inputs across key aspects of vital organisational decision-making. THE ROLE OF INCLUSIVE DESIGN

The focus then shifted to the importance of designing the built environment with inclusive and mindful criteria front and meconstructionnews.com

ED&I Summit | 31

centre. Factoring in the needs of People of Determination should be a key emphasis of every aspect of commercial and residential design, and in this presentation from Dipali Shirsat, Founder, The Visual Poetry, we got to understand priorities such as how the right level and style of lighting can dramatically improve the comfort and performance of the visually impaired in the workplace. Fascinatingly, she also showed AI-led spatial experiments had helped shape workplaces to the needs of those with physical impairments, assessing the practical dimensions and dynamics that any attempt at ‘best practice’ really requires. Following on, the day’s next panel was called: ‘The Diversity Quotient: ED&I in Culture, Teams & Service’. What is preventing businesses from being more proactive when it comes to Diversity? How is it possible to formulate strong strategies for Diversity which then become a core part of company culture and are manifest across working teams? What is the impact

meconstructionnews.com

that these approaches have to client output and service values? Panelists on this powerful session were: • Lucy May / Global Head of DEI and Culture/ Cundall • Aarti Thadani / Counsel / Norton Rose Fulbright • Jennifer Stables / Associate Director / AECOM Middle East & Africa • Akhila Koroth / Quantity Surveyor / ISG • Dr. Hagir Hakim / Senior Director of Studies for Construction Management and Surveying Programmes / HeriotWatt University • Emma Jordaan / Founder/ Infinite Consulting • Manisha Dayaram / Chief Commercial Officer / The Devmark Group The panel was moderated by Sarah Saxon / Regional Head of Human Capital / Compass Project Consulting. After a break for lunch, attention turned to the all-important role of the C-Suite, with a session called: ‘The C-Suite:

what are the answers in the Boardroom?’ Led by moderator Paul Godfrey, the panel assessed how senior executives are addressing today’s most critical human capital issues – eg, why is it still endemic in the GCC that people are paid according to ethnicity, not skillsets? Why do we still see an extraordinary lack of women at Board level in the private sector? Why does leadership training remain so scarce? Does the creation of an ED&I-compliant culture add value to the business during possible M&A activity? The C-Suite panelists were: • Nicola Trivett / Commercial Director / Summertown Interiors • Adam Smith / Managing Director / Polypipe Middle East • Sarah Saxon / Regional Head of Human Capital/ Compass Project Consulting • Nicky Dobreanu / Branch Director / Omnium International Ltd. • Ralf Steinhauer / Director/ RSP • Christopher Nicolas / Director/ TBH

November 2023

32 | ED&I Summit

• •

Statia Breen / Head of People & Culture / ALEC Swati Rokade / Associate / Godwin Austen Johnson

THE IMPACT OF MENTORING

Mentoring was a theme that had already occurred several times throughout the day. There is of course no doubt that effective Mentoring can play a powerful role in securing the progress of female executives and help the rise of ethnic minorities through the ranks - and done well, it can substantially boost confidence. Yet, how is Mentoring best put in place in order to work effectively? How much does it cost in terms of time and corporate investment? Can it work across departmental, office and national boundaries? These were some of the session’s key talking points.

The panelists involved here were: Jude Wilson-Brown / Marketing and Communications Director, Middle East and Africa / HKA • Alison Eslick / Senior Associate, Energy & Natural Resources Group / Reed Smith • Marina Kindelan / Director of Facades – Middle East / AESG • Nicolina Nedialkova / Site Operations Manager/ SSH • Kathren Salah / Senior Consultant / TBH • Roxy Reynolds / Senior Commercial Manager/ Omnium International Ltd. • Alia Saleh / Finance Director, South East Asia & Middle East / ISG The session moderator was Marianna Piccolo / CEO and Founder / MY PICK ONE. •

One of the most interesting themes emerging from this debate was whether or not a Mentoring function should be delinked from the HR department - with the panel overwhelmingly taking the view that yes, it should. How else, they argued, could it truly put individual interests first in an unbiased and objective way, without fear of feedback back into the organisation? Yet this view contrasted 100% with the opinions expressed in the C-Suite panel - where the participants felt strongly that this de-linking could potentially encourage ‘maverick’ behaviour and take power away from the core management of the organisation! So it seems that no aspect of an ED&I-compliant culture is ever quite separate from the bottom line values and opinions of the leadership, however entrenched these may be…

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DIVERSITY AND INCLUSION 2.0: CREATING COURAGEOUS ORGANISATIONS What are the practical steps that businesses of different sizes and aspirations can take in order to put a Diversity-led culture front and centre – and then reap the commercial and operational benefits that it will entail? Here, Katarina Uherova Hasbani Partner and Global Director of Strategy and Advisory at AESG, describes the workable toolkit that an organisation will need

e are working and living transformational times that asks for a fresh way of thinking. We need new ideas, new leadership approaches and new ways to motivate our people to bring the best of themselves to the everyday challenges that life and work throws at them. November 2023

The business of sustainability in the built environment requires our teams to think differently, to act differently and to be persistent in the face of rejection. We want them to design and develop buildings that will be resource efficient, with high quality of indoor comfort and digitally enabled to take advantage of the latest technological innovations. We need courage, purpose and passion to create organisations that will take on this challenge and create a sustainable built environment that people will want to spend their time in and in alignment with the natural environment around them. Courage means our people step forward with new ideas to resolve

engineering and management questions of integrating sustainability. Courage means to research, identify and propose a new solution that hasn’t been considered. Courage means to do all that when you are younger, of different gender, nationality and background than most of the interlocutors in your meeting. As leaders, we need to create a space where courage expands. Purpose means our people understand their role and contribution in making sustainable buildings happen. It takes huge teams of architects, engineers, social scientists and artists to create a new project. Their purpose, individually, needs to be interconnected and shared. We need to make sure that our people find their own personal objective in what we deliver as an organisation. As leaders, it is our responsibility to break down the business vision into individual objectives of our employees that will be different for a young graduate, a parent with children or a seasoned manager. Passion means that every day we show up with the same consistency and pursue the work. The energy of passion for making sustainability happen is what will make the difference when the work gets tough. Passion cannot be created, as leaders we must find it and nurture it, make it grow. Passion appears in the most unpredictable places in our organisations and it is fuelled by encouragement and collaboration. Diversity and Inclusion practices create conditions where courage, purpose and passion can thrive. Diversity and Inclusion toolkit, when applied in our organisations will contribute to building sustainably via provision of learning and mentoring opportunities anchored in working conditions that foster a courageous organisation. Learning is what creates growth from within an organization. Our people are our resource and providing them with an opportunity to acquire new knowledge, skills and perspective is what will take our business further. We can provide guidance, we can provide a training budget while the meconstructionnews.com

The Diversity Report | 35

final choice should be with the specific person. Empowering learning choices, including in terms of format (in person, online, etc.) can be the bridge between learning and implementation in everyday business. Employees will ultimately become trainers themselves and transfer their expertise within the organisation. (Thought leadership created within an organisation is a good example. See https://aesg.com/perspectives/) Mentoring is what creates a support mechanism for our people to receive

meconstructionnews.com

what they need. Our organisations are a complex web of policies, processes and hierarchy where an individual may get lost. Mentoring is what can bring an employee back to a place where courage, purpose and passion grows. We can provide an annual system of mentoring opportunities where employees can connect across

It is important to remember that Diversity objectives are reachable and attainable for different sizes of enterprise, as long as certain steps are followed.

levels. Reverse mentoring can be particularly impactful in our business of sustainability where senior employees benefit from new perspectives from junior members of the organisation. (Reverse mentoring pairs younger employees with executive team members to mentor them on various topics of strategic and cultural relevance. See https://hbr.org/2019/10/ why-reverse-mentoring-works-and-howto-do-it-right) Working Conditions is the tool that can transform the people and the organisation

November 2023

36 | The Diversity Report

we are creating. Our people will emulate what they live in on an everyday basis and the conditions of working will impact directly on their delivery. We don’t have a one model fits all solution. We don’t have the perfect answer. What emerges from the past years of changing workplace is flexibility as an imperative. This means providing employees with conditions that fit their individual circumstances so that they produce the best results. Conducting regular surveys paired with one-onone feedback sessions may provide the insights required to define the working conditions that fit your organisation and the level of courage, purpose and passion you want your employees to develop. (70% of employees could quit their jobs due to lack of flexibility. See https://fastcompanyme.com/news/surveyshows-70-employees-in-the-middle-eastwill-quit-jobs-due-to-lack-of-flexibility/)

CONCLUSION: CREATING YOUR SUSTAINABILITY FOCUSED ORGANISATION 2.0

We are building the future we want to see and it starts with our organisations. Architecture and design firms, engineering companies, construction and EPC firms, we all need more courage, purpose and passion to meet the challenge of sustainability. Our people are who will get us there, via the route of diversity and inclusion. Let’s create the courageous organisations we want to see. Together! SUSTAINABILITY 2.0 : SETTING UP YOUR GROUP FOR SUCCESS

How can we integrate sustainability effectively and widely? How can we go into the organisations’ core business and factor in principles of environmental sustainability, social equity and corporate governance? Scale is what will make a difference for sustainability efforts.

GOVERNANCE - FRAMEWORK - PERFORMANCE DIGITAL

GOVERNANCE

FRAMEWORK

SUSTAINABILITY IMPROVEMENT

KEY PERFORMANCE INDICATORS

OUTCOMES: November 2023

PERFORMANCE

CERTIFICATIONS AND STANDARDS

COST

PROFIT

RISK

Portfolio companies and conglomerates have scale and yet, sustainability may be a daunting task given the volume of the requirements across different division companies and assets. Portfolio companies and conglomerates require a tailored sustainability architecture that provides group-level corporate governance and cascading hierarchy of roles and responsibilities. The architecture should allow for progressive integration of sustainability requirements across the organisation, safeguard compliance and drive performance improvement. The three building blocks of sustainable architecture are board governance, organisational level framework and performance management that encourages evolution and innovation. This article outlines briefly each of these blocks. BOARD GOVERNANCE: EDUCATE, ASSESS AND REPORT

Boards are playing an essential role in driving sustainability integration. However, they themselves need to be ready and Board members with sustainability knowledge are short in supply. Only 29% of board directors surveyed by the recent INSEAD report feel knowledgeable enough to challenge sustainability execution. In the GCC, the corporate Boards are getting an increasing exposure to sustainability and climate change on the basis of government announcements and strategies. The mandate is for the private sector to follow government targets, with Net Zero commitment leading the way for example in the UAE. The Boards locally similar to their counterparts globally, require more training and continuous education to stay on top of the requirements, including reporting, possible future legal compliance and internal company policies on ESG issues. Finally, Boards can drive change via key performance indicators and remunerations decisions which attract and retain the right sustainability talent in the organisation. Boards need to take a long-term view on sustainability KPIs to allow for absorption meconstructionnews.com

The Diversity Report | 37

an original internal policy document as its maturity and knowledge of sustainability grows. PERFORMANCE MANAGEMENT

capacity to take its course within an organisation as internal capacities mature and develop.

Katarina Uherova Hasbani, Partner and Global Director of Strategy and Advisory, AESG.

ORGANISATIONAL LEVEL FRAMEWORK: CERTIFY, STANDARDISE AND CREATE POLICIES

Integration of sustainability across a complex organisation will be determined by the choice of an overall level framework that will govern performance. Practice shows that portfolio and holding companies adopt a few different routes: Certifications, internal standards or internal policy. Certifications approach is immediately available because it draws on existing standards in place. These can be based on adoption of an existing ISO standard, e.g. ISO 140001 for environmental management or PAS 2080 for carbon management in infrastructure. The process involves gap assessment, improvement roadmap and finally audit by an assigned certification consultant. The organisation will need to set up a governance framework meconstructionnews.com

as required by the certification standard which makes the alignment process smoother. Internal standard or internal policy involves more preparation internally and at the same time it may result in more robust outcomes. The process involves assessment of the organisation's needs against international standards or frameworks, identification of specific requirements and drawing up of a corporate standard or document. Internal governance will need to be set out for the implementation phase. This way portfolio companies or conglomerates can create their own, adapted environmental, energy, water, waste or carbon management standards or policies. These two avenues, certification and internal standard or policy don’t have to be mutually exclusive. A business might start with a certification and later transition into

You can’t manage what you can’t measure and that is true also for sustainability implementation. Businesses will need to include key performance indicators (KPIs) into their corporate scorecards in the form of lagging and leading indicators. In sustainability, lagging indicators dominate the debate: Reduction in energy consumption, volume of waste diverted from landfill or reduction in water losses. Yet, these indicate the final state after a successful implementation effort. Organisations that are starting their sustainability journey require more leading indicators to put them on the sustainability path and set them up for success. For energy management, this can be the percentage of energy consumption monitored via smart meters, for waste management, it can be the percentage of waste management contracts with diversion rate KPIs incorporated. Tracking of the progress in implementing will provide a truthful of the expected outcome. When defining KPIs, identifying the leading and lagging KPIs for sustainability will enable your business to measure speed of progress. It will also allow for an early detection of necessary interventions to achieve more successful lagging KPI outcomes. For a group of companies, this can provide a platform to map performance across its portfolio and create comparable indicators. KEY TAKEAWAYS

Sustainability can be a transformation tool. Using your Board, creating organisational framework and performance management will provide you with a leverage to push across initiatives at scale that will transform your organisation. It’s not only about reporting on sustainability indicators, it’s about doing the sustainability work with your teams. The frameworks in this article allow you to do exactly that. November 2023

38 | The Diversity Report

results, either commercially or in terms of strategy execution?

irst things first. Isn’t it true that if businesses want to benefit from Diversity, they also need good access to the right talent pools?

“I think it’s good to take another view, the narrative that businesses have to ‘benefit’ from diversity or only expect ROI from it can be single sided. As human beings we should want to pursue it because no human should be mistreated based on aspects of their background or character (unless they’re a parking warden or just a bad dude!).” What statistics do you have which show that executive teams featuring Diversity actually deliver better

“McKinsey research found that Companies in the top quartile for racial and ethnic diversity are 35% more likely to have financial returns above their respective national industry medians. While there’s a wealth of statistics and data available, one can’t escape the fact that better results are part and parcel of successful commercial and strategic results. However, the real challenge lies in not just acknowledging the message conveyed by the data, but also wholeheartedly embracing diversity initiatives at all levels, irrespective of financial performance.” What data is there globally to show that companies in the top quartile for Gender diversity commercially outperform

those

the

lower

quartiles?

“Two key studies present a compelling argument here. The Peterson Institute for International Economics completed a study in 2016 across 21,000 global firms and found that companies with

EMBRACING DIVERSITY

a higher representation of women in leadership roles tended to have a higher return on equity. Of course, as previously mentioned, McKinsey backs this up, finding that companies in the top quartile for gender diversity are 15% more likely to have financial returns above their respective national industry medians.” Is there a ‘tipping-point’ at which the percentage of female executives can be seen to contribute substantially better performance? Is this dependent on where in the organisation those women actually are?

“I don’t think there is a straight answer to this question. It won’t be the same for everyone. But if businesses can determine that more innovation, effectiveness, and efficiencies are being generated because of diversity then this is the sign that critical mass could be building. Several studies suggest that reaching a 30% representation of women in leadership should drive the above results, however, the impact of this target largely depends on the level of influence these women have at decision-making. Their ability to garner buy-in and effectively voice their ideas can significantly vary based on their respective roles and positions.” What data is there globally to show that companies in the top quartile for Ethnic diversity commercially outperform

If ED&I initiatives are truly to be seen as more than a ‘nice to have’, shouldn’t their benefits and advantages pan out in terms of cut-and-dried enhancements to the bottom line and better competitive advantage? Middle East Consultant spoke to Sarah Saxon, Regional Head of Human Capital, Compass Project Consulting… November 2023

those

the

lower

quartiles? How does this compare to the effects of Gender diversity, for example?

“Key research by McKinsey, Deloitte and BCG demonstrates the positive impacts, particularly on innovation, often a crucial component for businesses to be competitive and succeed. However, while it’s an important topic, it has not been as extensively studied as gender diversity. Regardless, diversity across all paths kills groupthink and nurtures the cultivation of fresh ideas.” meconstructionnews.com

Does a strong ED&I profile mean that a company is better at winning talent and indeed, at keeping their top performers?

“I believe it does. With so many new businesses emerging from the pandemic, embracing the digital age and AI become more present, younger companies can immediately break away from traditional and stuffy corporate images which have typically put people from different backgrounds off. More than 40% of Gen Z are now classed as coming from diverse backgrounds. This new workforce cares about purpose, fairness and wants to feel like they belong in a company. Having a meconstructionnews.com

A strong ED&I profile can mean that companies have better retention of top talent and more satisfied employees.

strong ED&I profile will be a huge beacon of attraction for them.” Is there any evidence to show that having

diverse

teams

actually

improves the quality of decision making?

When a woman sees another woman in the boardroom, it sends a message that “I too can be that person”

“Yes, and it is substantial. Studies have shown that it positively affects decision making that impacts risk management, critical thinking, groupthink, ethics, innovation and problem-solving. Diverse teams are more likely to make better decisions in complex and rapidly changing environments, which is the world we live in today. It also means that organisations November 2023

40 | The Diversity Report

are better positioned to navigate challenges and seize opportunities.”

Sarah Saxon, Regional Head of Human Capital, Compass Project Consulting.

To what extent - in terms of the hard data available - does ED&I help drive employee motivation and satisfaction?

“Motivation and satisfaction are like the holy grails in HR. There has been so much research into this field for over 70+ years, much of which is not focused on ED&I. However, and I speak from first-hand experience, when a woman sees another woman in the boardroom, it sends a message that “I too can be that person”. It’s the same with race and disability. If a

Diversity across all paths kills groupthink and nurtures the cultivation of fresh ideas”

person in an organisation truly believes that each day they come to work and have a fair chance at getting better and growing and being recognised despite their gender or race etc., then that individual will engage as opposed to shut down. In terms of hard data - and if we look at drive the other way round - the CIPD have found that a mere 18% of organisations have implemented robust strategies for ED&I. The lacklustre adoption of these initiatives has been shown to negatively impact motivation and overall employee satisfaction. Especially if too much lip service is paid. If companies want to talk the talk, they need to walk the walk.”

CMY

November 2023

meconstructionnews.com

Oﬃce Location: Millennium Plaza Tower 14th Floor, Sheik Sayed Road P.O.Box 26290, Dubai, UAE www.intertek.com

42 | The Diversity Report

QUESTIONS OF DIVERSITY What are the issues, the strategies and the outcomes when a Fortune 500 company confronts the challenges of creating an ED&Icompliant culture head-on? Here, two key figures from global real estate titan JLL give their views - Anne-Lyse Raoul, Head of DEI EMEA, and Kabira Bhatporia, Head of HR - MEA and Turkey

these platforms allows for a wider range of profiles and ensure potential candidates that diversity is a priority. Kabira: In addition to the available platforms, we emphasize the importance of their application and usage. Therefore, we provide inclusive recruitment and unconscious bias training to hiring managers. We also highlight the significance of diversity within the organization, as our employees serve as ambassadors to attract talent. Approximately 17.7% of our total hiring in the EMEA region (Europe, the Middle East, and Africa) is sourced through internal references. Within the MEA region specifically, this accounts for around 7.2%. What statistics do you have which show that executive teams featuring Diversity actually deliver better results, either commercially or in terms of strategy execution?

irst things first. Isn’t it true that if businesses want to benefit from Diversity, they also need good access to the right talent pools? Anne-Lyse: In a fast-changing world where

job profiles are rapidly evolving alongside technology and client needs, access to the right talent pool is crucial. However, it's equally important to re-think what talent looks like. We need to consider the skills and capabilities required for current and future roles and explore non-traditional talent pools to find the right fit. Moreover, it is our responsibility to expand and diversify the talent pool by raising awareness about our industry and November 2023

facilitating access for underrepresented groups to our industries and professional roles. Diversity, equity, and inclusion (DEI) are core to our purpose of shaping the future of real estate for a better world. Our vision is to foster a culture where differences are valued, people feel a sense of belonging, and authenticity thrives across our communities where we live, work and play. Diversity to us means recognizing, acknowledging, and accepting the unique differences, identities, and experiences that each individual brings to JLL. Diversity does not comprise only gender or ethnic background, it also encompasses abilities, neurodiversity, culture, personality types, age and various other dimensions. When considering the talent pool, it is also important to maintain consistent communication with schools and universities to establish a stronger connection with tomorrow's workforce. Or exploring specific job boards and recruitment platforms that cater to diverse talent, such as those targeting parents or individuals with disabilities. By leveraging

Kabira: Asserting tangible commercial

benefits that directly stem from particular initiatives, especially those involving employees, isn’t always that straight froward. However, there are various touch points that provide confidence and indicate how diversity supports and enables commercial growth. Some of these touch points include: • Company growth trajectory: Evaluating the overall progression and achievements of the company, including revenue growth, profitability, market expansion, and enhanced market visibility, can serve as indicators of the positive influence of diversity on commercial outcomes. For instance, certain departments within the MEA region have experienced a remarkable business growth of over 70% within the past 3 years, accompanied by a 30% increase in headcount. • Market share: Monitoring and analyzing market share metrics can provide insights into how diversity contributes to capturing a larger share of meconstructionnews.com

The Diversity Report | 43

meconstructionnews.com

November 2023

44 | The Diversity Report

the market. This could include increases in customer base, market penetration, or market recognition. • Employer of choice: Being regarded as an employer of choice by top talent is a strong indicator of the positive effects of diversity. When diverse individuals actively seek out employment with the company and consider it a desirable place to work, it demonstrates that diversity is seen as an asset and can attract high-quality talent. • Retention of key talent: Examining the retention rates of valuable talent can provide insights into the positive outcomes resulting from diversity initiatives. Higher retention rates signify employee satisfaction and engagement, contributing to the organization's overall success. Notably, we have achieved an approximate 75% retention rate among high-potential individuals, and those who have transitioned from our organization have secured senior positions with our clients, reinforcing our strong market relationships. Additionally, we are committed to advancing female leadership in senior roles, and currently, within the MEA region, we have achieved a representation of 31%. Furthermore, we prioritize diverse skills and nationalities to foster a comprehensive perspective, embracing approximately 65 nationalities within the MEA region. Nevertheless, diversity should not be approached as a standalone topic; rather, it should be the foundation that governs business operations. When we consider leaders, it is evident that no individual leader is without limitations. No one person possesses the perfect balance, and there are always gaps that require external contributions to bridge. In leadership, it is important to assess what is effective in today's context. Traditional notions of a single person at the helm are outdated and may not always align with current needs. To illustrate this, we successfully implemented a different approach in one of our markets in the MEA region. We appointed two leaders who complement November 2023

Kabira Bhatporia, Head of HR - MEA and Turkey, JLL.

Examining the retention rates of valuable talent can provide insights into the positive outcomes resulting from diversity initiatives”

each other remarkably well — one excelling in financial and business acumen, while the other is people and culture-oriented. Together, they formed a balanced and cohesive unit. This transformation at the executive level has shattered the confines of onedimensional thinking in business. It has enabled other leaders to think creatively and gain a competitive advantage in the market. This collaborative leadership model provides guidance, support, and upholds JLL's values, including inclusion. Having a female leader supported by her male counterpart (and vice versa) has allowed them to establish diverse meconstructionnews.com

The Diversity Report | 45

relationships and build extensive networks that surpass what a single individual can achieve. By adapting and being flexible in various settings, we have attracted a different client base and fostered an engaged culture where team members feel valued. Clients and staff have peace of mind, knowing they are in capable, experienced, and genuine hands. Moreover, this unique leadership model has attracted and retained individuals with diverse skill sets. While success always relies on a team effort, these two leaders serve as the driving forces towards achieving one shared goal. What data is there globally to show that companies in the top quartile for Gender diversity commercially outperform those in the lower quartiles? Anne-Lyse: According to McKinsey,

organizations

that

embrace

gender

diversity consistently demonstrate better performance compared to less diverse companies. Their 2019 analysis revealed that companies in the top quartile for gender diversity on executive teams had a 25 percent higher likelihood of achieving above-average profitability, compared to companies in the fourth quartile – up from 21 percent in 2017 and 15 percent in 2014. Similarly, Morgan Stanley research discovered that greater gender diversity, as measured by a higher Holistic Equal Representation Score (HERS), led to outperformance in firms. They found that more gender-diverse companies outperformed less gender-diverse companies (with lower HERS rankings) by 1.6% in 2022, consistent with the performance in 2021 and the long-term average prior to the COVID-19 pandemic. Interestingly, Harvard Business Review

(HBR) reports that those findings are only valid in places where gender diversity is viewed as a norm rather than not truly accepted. As they phrase it “beliefs about gender diversity create a self-fulfilling cycle. Countries and industries that view gender diversity as important capture benefits from it. Those that don’t, don’t. At JLL, our commitment towards DEI has played a pivotal role in driving our business performance. This is the fourth consecutive year where JLL has been named to Bloomberg's Gender-Equality Index (GEI), which tracks the performance of public companies dedicated to reporting gender-related data. This reference index measures gender equality across five pillars: leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, anti-sexual harassment policies, and external brand.

HIGH-LEVEL PROGRAM STRUCTURE

The program to be customized for each role based on the critical skills required for the successful delivery of the role, however it will consist of the following activities: TOPIC

ACTIVITY

ACCOUNTABILITY

In depth induction

Must be fully aware of the value proposition and various departments services

Human Resource

Buddy Program

A previous graduate or equivalent member to be assigned

Line Manager & Human Resource

Mentoring & Reverse Mentoring Program

Senior leadership member to be assigned to guide/ inspire

Business Unit Lead & Human Resource

Coaching

Excom member to be a coach throughout the program

Excom & Business Unit Lead

Formal Trainings

• Softskills training • Functional training • E-learning (LI learning) • Cross cultural exposure (secondment with MENA/EMEA)

Human Resource & Business Unit Lead

Monthly feedback on job related progress

Line Manager & Business Unit Lead

Ongoing feedback to be considered based on various activities

Line Manager, Business Unit Lead & Human Resource

Mid term & end term progress report

meconstructionnews.com

November 2023

46 | The Diversity Report

We also continue to be recognized in the Fortune magazine's World's Most Admired Companies list which is a major authority on corporate reputations compiled each year by Fortune and Korn Ferry through a survey of global executives, directors and analysts. This is the 7th consecutive year where JLL is recognized for exceptional social responsibility and global competitiveness within the real estate industry. Additionally, we have been placed at number 190 on the prestigious Fortune 500 list, which ranks the 500 largest companies by total revenue for their respective fiscal years. Is there a ‘tipping-point’ at which the percentage of female executives can

It is our responsibility to expand and diversify the talent pool by raising awareness about our industry and facilitating access for underrepresented groups to our industries and professional roles”

be seen to contribute substantially better performance? Is this dependent on where in the organisation those women actually are? Kabira: In my view, there is no singular

tipping point or formula to assert that a specific combination is a winning and sustainable growth plan. Instead, we believe that by adopting multiple approaches within our organization enables us to create an environment that fosters a comprehensive and inclusive approach, leading to sustainable growth for our organization. Our focus lies in achieving a balanced and inclusive view by incorporating the following elements: • Balanced male/female gender ratio • Diverse nationality and language • Age For example, in one of our Middle East businesses, their year-on-year growth remained slow without significant changes, while the potential in external markets was evident. To address this, the following conscious steps were taken: • Hiring talent with niche skills: We have actively sought individuals with specialized expertise to enhance their capabilities in key areas. • Balancing young talent and senior experience: The hiring strategy included November 2023

a mix of young talent and experienced professionals to bring fresh perspectives and depth of knowledge. • Investment in local talent: There was a deliberate effort to strengthen the team by hiring local talent, tapping into their understanding of the market and cultural nuances. • Mindful consideration of diverse factors: We considered factors such as local, regional, and global experience, gender balance, nationality, and language were carefully assessed based on the specific needs of clients. • Workshops for team input: We conducted workshops where members could share their insights, enabling the development of a comprehensive strategy that incorporated different perspectives. • Culture of inclusivity and equal opportunity: A key driver within the team was a culture of listening, inclusivity, and providing equal opportunities for all team members to contribute their ideas and expertise. This strategic approach allowed the team to leverage their strengths and capitalize on market opportunities. The diverse talent within the team has positioned the organization as one that understands

and meets the needs of clients effectively, leading to business growth. Does a strong ED&I profile mean that a company is better at winning talent and indeed, at keeping their top performers? Anne-Lyse: Talent is changing, and with an

aging workforce it is becoming increasingly common to see multiple generations coexisting in the workplace, alongside a diverse range of multicultural employees. Newer generation seeking inclusivity: The younger generation entering the workforce today actively seeks inclusive work environments where they feel valued, respected, and have equal opportunities for growth and advancement. Support for the aging workforce: With an aging workforce, it is crucial to create an inclusive work environment that allows older employees to continue working and feel included, providing support during their transitional stage in life. Kabira: Country-agnostic working: As work becomes more globalization-focused, with employees based in the UAE, for example, but serving broader roles within the company, creating a culture of equal opportunity based on skills and ability to deliver becomes paramount. This also allows employees to grow in their careers without the need for frequent family relocations. Early careers: We also believe in nurturing talent from a young age, which is why we have made a deliberate effort to hire nationals in the UAE and KSA. As part of this initiative, we have developed a comprehensive program that allows them to grow within JLL and enhance their skills. Is there any evidence to show that having diverse teams actually improves the quality of decision making? Anne-Lyse: Referencing "Rebel Ideas"

by Matthew Syed, it is evident that for simple decisions, diverse perspectives may not be essential. However, as problems become increasingly complex, the need for creative solutions and different viewpoints meconstructionnews.com

The Diversity Report | 47

becomes crucial in order to address unforeseen risks. As highlighted by Mihir Shah, co-CEO of JLL Technologies, a team with diverse backgrounds and experiences plays a critical role in driving innovation, especially within the rapidly evolving field of technology. Embracing a culture of diversity enriches the collaborative experience among colleagues and ultimately benefits clients. To what extent - in terms of the hard data available - does ED&I help drive employee motivation and satisfaction? Kabira: Based on our recent global employee survey, we achieved a meconstructionnews.com

Anne-Lyse Raoul, Head of DEI - EMEA, JLL.

Embracing a culture of diversity enriches the collaborative experience among colleagues and ultimately benefits clients”

participation rate of 70%, an increased engagement score to 79. This placed us in the top 25% of companies, as determined by the benchmark provided by our survey administrators. The survey insights are used to gauge how well employees understand and feel about our evolving business strategy, purpose and commitments. Results show that our people value career development and recognition, as well as our commitments to DEI, well-being and safety. In the MEA region, we attained a score of 79.6, surpassing the external benchmark of 74. Furthermore, Going Beyond, our global digital recognition platform, allows employees to publicly thank colleagues. The platform notifies managers when a direct report receives recognition for exceptional work and allows colleagues from their ‘work circle’ to celebrate in their success. In 2022 alone, 79,400 Going Beyond awards were issued to 44% of our global workforce. Showing appreciation is essential for creating an inclusive workplace and a brighter way of working. Recognition also helps us retain and inspire an engaged workforce. Last year, we implemented two global surveys designed to gain insights from both new recruits and departing employees. These surveys were conducted to understand the factors that attract individuals to join our firm and the motivations behind their decision to move on. By adopting a data-driven approach to review the survey results, we obtain valuable information that helps us shape our people and DEI strategy. It also enables us to ensure that we have the right talent in the right positions at the right time. Our analysis involves advanced diagnostic and predictive techniques, allowing us to evaluate the effectiveness of our processes, validate the outcomes of our strategies, and take necessary steps to enhance the overall employee experience. This comprehensive approach not only helps us attract top talent but also supports our efforts in retaining the best professionals in the industry. November 2023

48 | The Diversity Report

included and are treated with dignity. Our Headhunter service providers must share the same commitment to diversity in principle and practice. And tracking the entire process – from long-listing through to appointment decisions – allows us to measure progress. That’s how we know that we are attracting more applications from diverse groups. What statistics do you have which show that executive teams featuring irst things first. Isn’t it true that if

Diversity

businesses want to benefit from

results, either commercially or in terms

Diversity, they also need good access

of strategy execution?

to the right merit-based diverse

The research I’ve seen shows not only that the business case for diversity is robust, but over time, the companies led by diverse teams are more likely to outperform less diverse competitors. While several of these studies focussed on gender balance, some also shed light on the benefits of wider diversity, such as ethnicity, and having a diverse and inclusive culture. One example points to what we might call a ‘diversity dividend’. A corporate ranking of 500 listed companies in the US by the Wall Street Journal – as reported in 20201 – found that the top 20 with the most diverse and inclusive cultures had higher operating profits. The average margin was 12% for the diversity leaders, against 8% for the least diverse group, which is a significant performance gap. This competitive advantage was maintained over both fiveyear and ten-year periods. The diverse companies also enjoyed a share price premium, as you’d expect, given their superior financial performance. Research cannot necessarily prove a causal link between diversity in large companies and their financial performance, but the correlation tends to be strong. For this reason, I found another study, by the Harvard Business School, particularly interesting. This purposely looked at the venture capital (VC) sector because the impact of the investment partners on outcomes is more direct than in large, complex corporates.2 It’s also a male-dominated sector.

talent pools?

Absolutely, access to all potentially available talent should be the goal of every business. To be competitive, innovative and agile, you need the best people. It’s all the more critical in tight labour markets and industries competing for talent with other sectors seen as more attractive by younger generations. So, the business case is clear, before we even take account of the ethical imperative of ensuring equal opportunities in society and the rising expectations of corporate environmental, social and governance (ESG). Many employers realise that they have lost out in the past by failing to reach certain groups or by putting talented individuals off, often inadvertently. Talent attraction strategies need to ensure that we draw from as wide a pool as possible. All processes must support that end. As a firm serving a traditionally maledominated industry – construction and engineering is one of our core markets – we take special care to ensure the language used in job postings and elsewhere is gender-neutral. Also, imagery should show that the sector is not all about macho men and machines. If companies send out signals that they are not inclusive, potential applicants will infer ‘This organisation is not for people like me’. We also provide learning and development to upskill everyone involved in selection and interviewing processes, so we weed out unconscious bias, and ensure applicants feel November 2023

actually

deliver

better

For a world-leading risk data specialist, such as HKA, the Diversity agenda is part and parcel of a targeted best practice model.

BEYOND THE DATA We asked international dispute resolution and risk data expert HKA to take their own look at our key set of questions - with their extremely detailed answers and footnoted references completing our series of ‘deep dives’ into the practicalities and benefits of an ED&I-led business culture… meconstructionnews.com

The Diversity Report | 49

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November 2023

50 | The Diversity Report

Again, it was found that diversity, across multiple aspects including gender, made a real difference. Only 8% of all investors were women. When firms increased their number of female partners by 10%, they saw a 1.5% spike in average returns and 9.7% more profitable exits (something achieved by only 29% of all investments). Other aspects of diversity had even stronger effects. Where VC partners had gone to the same school, for example, the success rate of their firms with acquisitions and IPOs (initial public offerings) was 11.5% lower than that of teams drawn from different educational backgrounds. The authors concluded that varied teams not only make better decisions, but also superior investments. What data is there globally to show that companies in the top quartile for Gender diversity commercially outperform those in the lower quartiles?

One of the most often quoted studies is by management consultants McKinsey.3 It last reported in 2019 on more than 1,000 large companies in 15 countries (outside the Middle East), and it followed previous analyses in 2017 and 2014. The main finding was that companies in the top quartile – for gender-diverse executive teams – were 25% more likely to have above-average profitability than those in the fourth quartile. This was an increase compared with its previous studies – up from 21% in 2017 and 15% in 2014. Indeed, the likelihood of outperformance also increased with the level of female representation. The gap widened to 48% between the most gender-diverse companies and the most male-dominated. Another global study by the Credit Suisse Research Institute was even larger, analysing 3,000 companies across 46 countries, with 33,000 senior executives. Again, its CS Gender 3000 report for 2019 reinforced the think tank’s previous findings. It confirmed the positive correlation between gender diversity in leadership positions and superior returns on capital, stock market valuation, and environment, November 2023

social and governance (ESG) performance. This latest report also “highlighted that the best-performing companies display superior diversity in both the boardroom and the C-suite”. So, it’s not just a question of numbers, but also representation at the highest levels of an organisation. The pattern across time was clearest for operating profits. Comparing average margins since 2010, there was a 1.6% profitability gap between companies over a 20% diversity threshold, compared with those below 15%. This advantage increased with each ascending tier of diversity over time. Is there a ‘tipping-point’ at which the percentage of female executives can be seen to contribute substantially better performance? Is this dependent on where in the organisation those women actually are?

That Gender 3000 report showed a pattern of progressively higher performance as the

Access to all potentially available talent should be the goal of every business. To be competitive, innovative and agile, you need the best people”

proportion of senior women managers increased. As I mentioned, the more senior their leadership position, the greater the influence we can expect women to have on their company’s results. Even then, if they’re in a very small minority, it might be assumed they’d have little or no measurable effect. However, there’s a growing body of research that suggests otherwise. Three women on a corporate board may represent the tipping point, according to investment research specialists MSCI. They analysed US companies over five years (2011-2016). For those that began the period with at least three women on the board, the median increase in their return on equity was 10%, and earnings per share grew by 37%. In contrast, the comparable changes for companies without female directors were a 1% reduction in returns and 8% fall in earnings. Similar MSCI research in 2015 had found that global companies with strong female leadership enjoyed returns of 10.1% versus 7.4% for those without.4 Why should the appointment of a few women make such a difference? A more recent study, reported in 2021, provides at least part of the answer. The researchers tracked executive appointments at 163 multinational firms based in Europe over a 13-year period. Focussing on strategic innovation, they discovered a shift in strategic thinking and long-term strategy following the appointment of women.5 Analysis of company announcements suggested a paradox – after women joined meconstructionnews.com

The Diversity Report | 51

The difference in investment success rates between ethnically diverse and monocultural teams was in the 26-32% range. However, the lesson should not be that one type of diversity is more important than other. Rather, that gender, ethnicity, educational and social background, and other factors – from sexual orientation to neurodivergence – all contribute to a diverse and inclusive workplace culture. And this, in turn, encourages creativity, sharing of ideas, and greater engagement within teams and across an organisation. the C-suite, openness to change increased, while propensity for risk-taking decreased. The effect on strategy was significant. It shifted from ‘knowledge-buying’ – mergers and acquisitions – to ‘knowledge-building’ based on internal research and development. As women became well integrated within the top management team, they had more influence over decision-making and were better able to champion new strategies for creating value and managing the risks associated with change. These studies again underline the point that it’s not enough to achieve gender balance in ‘doing’ roles; it’s vital to address imbalance in the most senior decisionmaking and strategic positions.

Does a strong ED&I profile mean that a company is better at winning talent and indeed, at keeping their top performers?

Ultimately, this is the key point, I believe, if companies want to sustain their success. More research might increase our understanding of the relationship between different aspects of diversity and financial performance. But even if that question hasn’t already been fully answered, then it has been supplanted by this more important issue of attraction and retention. I speak to candidates every day and, when

asked what’s important to them when joining a new firm, without fail they talk about the culture of the employer organisation. People want to work in an environment where they feel valued and respected, their work is recognised, they have the opportunity to develop, collaborate with colleagues, and, in short, feel they belong. Workplace culture and diversity are important to millennials and increasingly so with Generation Y and Z. Millennials and Gen Z professionals are avoiding companies without a diverse workforce, a clear promotion track and commitment to confronting systemic racism in their ranks.6 They research a company’s ED&I profile before they consider applying to join. They want to see reviews and what people say about the employer. And millennials are no longer first-jobbers, they are now moving into management, team leadership and client-facing roles. Millennials are the most prevalent generation of workers set to dominate the global workforce, making up almost 75% by 2025. This generation of employees expects diversity in the workplace, and they will help drive cultural

What data is there globally to show that companies in the top quartile for Ethnic diversity

commercially

outperform

those in the lower quartiles? How does this compare to the effects of Gender diversity, for example?

Two of the studies already mentioned explicitly assessed the impacts of ethnic diversity as well as gender. In both cases, ethnicity had an even greater effect. McKinsey found that the top-quartile ethnically diverse companies were 36% more likely to outperform on profits than those in the bottom tier; (for gender, the increase was 25%). Among the venture capital firms, the boost was even greater. Ethnic diversity almost tripled the effects of having investors who were female or from different schools. meconstructionnews.com

November 2023

52 | The Diversity Report

change, but the best employers already foster a diverse and inclusive culture. This is as important for retention as it is for attraction. If we are to continue growing as a company, we need to keep our best people in the business. ‘Regretted attrition’ is a crucial metric for HKA. The rate for the year to date is 3%, well below the 8% limit we have set. And we need to remember that a company’s ED&I profile is about much more than gender and ethnicity. A straight, white male feels the same need to be valued and belong. It matters to everyone, whether you have a diverse trait or not, which is why at HKA we have adopted the strapline in all our communications – ‘Equality for everyone, Diversity valued, Inclusion always’. Is there any evidence to show that having diverse teams actually improves the quality of decision making?

As we’ve seen, studies indicate that gender, ethnic and diversity generally are associated with various and significant benefits. With financial performance and innovation, the improvements may stem at least partly from behavioural factors. Employees and teams are more engaged and motivated, and their output is greater or of higher quality. To cite another example, inclusive companies have been found to generate 2.3 times more cash flow per employee.7 And they are also more likely (this time by 1.7 times) to be innovative. Such innovation probably stems from the fact that people from different backgrounds bring their own perspectives and insights to bear in solving problems. This obviously makes sense to younger generations of workers. Three out of four millennial employees (74%) believed, in the previously mentioned Deloitte survey, that their organisation was more innovative when it had an inclusive culture.8 That greater inventiveness will feed through into decision-making. Some of the research I mentioned on gender, ethnic and educational background indicated that diversity influenced decision-making with respect to investment, risk management and also strategy. November 2023

It may be hard for researchers to prove causation or show how diversity improves decision-making, but the reasons seem pretty clear and logical. The people in charge of shaping a service or product need to understand the needs and priorities of their clients or customers. It helps if the decision-makers are more representative of the markets they serve. Half the users of a building or transport system may be female, so it might be more attuned to their tastes and needs if the design team isn’t exclusively male. Management style is an important factor too. Women don’t have a monopoly on emotional intelligence and many men are caring and inclusive leaders. But there is a lot of anecdotal evidence at least that women managers are often able foster an open and collaborative culture in organisations that brings the best out of people, including their male colleagues. To look at it another way – if the management of an organisation is lacking in diversity (gender, ethnic and social and cultural backgrounds) the decision-makers are going to be more prone to groupthink. That is not a formula for an agile, innovative and successful company competing in a dynamic world disrupted by fast-changing technologies and facing multiple risks and uncertainties.

fail to live up to those expectations repel able candidates and lose good people. In the same survey, nearly half of Black and Hispanic employees and job seekers (47% and 49%, respectively), said they had quit a job after witnessing or experiencing discrimination at work; the equivalent proportion for white employees was 38%. Such research cannot easily capture the effects on morale and engagement among colleagues and team members. My belief that an inclusive culture should and does matter to most or all employees, irrespective of their own background, is borne out in day-to-day interactions within our company and in staff surveys. In our 2022 global employee engagement survey, our colleagues recognised HKA’s efforts to maintain a diverse workforce and create an environment where every individual feels included, awarding us a score of 8.1 out of 10. This aligns with our overall engagement score of 8.0/10. Both are highly positive ratings, but we know we have more work to do across various aspects of our ED&I agenda. We are focused on sustaining improvement to achieve 10/10 in our diversity scores, helping us attract the best people, keep them and make the most of all our talent too.

To what extent - in terms of the hard data available - does ED&I help drive employee motivation and satisfaction?

There is data showing that employees generally, and not just those from minority groups, are more motivated and engaged when working within an organisation that embraces diversity and inclusion. Millennials are 83% more likely to be engaged at work at inclusive companies, according to that earlier Deloitte study. It can also be inferred from the many surveys showing that equality and diversity are what most of today’s workers want and expect. In a 2020 poll, 76% of employees and job seekers in the US said a diverse workforce was an important factor for them when evaluating companies and job offers.9 If diversity and inclusion are pull factors, then it’s no surprise that employers who

1. https://www.forbes.com/sites/ forbesinsights/2020/01/15/diversity-confirmed-to-boostinnovation-and-financial-results/?sh=1a2a153cc4a6 2. https://hbr.org/2018/07/the-other-diversity-dividend 3. https://www.mckinsey.com/featuredinsights/diversity-and-inclusion/diversitywins-how-inclusion-matters#/ 4. https://www.msci.com/www/research-report/ research-insight-women-on/0263428390 5. https://hbr.org/2021/04/research-adding-womento-the-c-suite-changes-how-companies-think 6. Washington Post: For younger job seekers, diversity and inclusion in the workplace aren’t a preference. They’re a requirement. Jennifer Miller, February 18, 2021 7. Diversity & Inclusion: ‘Why Diversity and Inclusion has become a business priority,’ by Josh Bersin. First published Dec 7, 2015; updated March 16, 2019 (https://joshbersin.com/2015/12/wht-diversityand-inclusion-will-be-a-top-priority-for-2016) 8. https://www2.deloitte.com/content/dam/ Deloitte/us/Documents/about-deloitte/usinclus-millenial-influence-120215.pdf 9. https://www.glassdoor.com/blog/glassdoorsdiversity-and-inclusion-workplace-survey/ meconstructionnews.com

Ÿ Threat & Risk Assessment Ÿ Gap Analysis Ÿ Security System Design Ÿ IT/AV Design Ÿ Master Planning & Development Ÿ Operational Requirements

Ÿ Testing & Commissioning Ÿ Control Room Design Ÿ System Integration Ÿ Policies & Procedures Ÿ Site Surveys & Audits Ÿ Crisis Management