Diversity Journal Sep/Oct 2004

THIS ISSUE:

BMO Financial Group is breaking down barriers for disabled employees

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Bill Ford is our Leader of the Year!

FORD SHARES HOW HIS BACK-TO-BASICS STRATEGY IS DRIVING RESULTS

ANNOUNCING OUR 2004 CEO DIVERSITY LEADERSHIP AWARD WINNERS ON THE FRONTLINES: A VISIT WITH STARWOOD HOTELS’ ANA MOLLINEDO

Bill Ford, Chairman and CEO, Ford Motor Company

CATALYST REPORTS WORKPLACE FLEXIBILITY

www.diversityjournal.com

This is not just what we believe, it’s who we are. It’s what’s imprinted in our 100 years of history. Like Henry Ford once said, “The greatest thing we can produce is character.” That’s why we must strive to create a culture that values and respects diversity. After all, different ways of thinking is what makes the world as beautiful as it is.

Embrace your differences and make your own mark.

PUBLISHER James R. Rector MANAGING EDITOR Wendy A. Hoke CREATIVE DIRECTOR David Potokar CONTRIBUTING EDITOR Laurie Fumic LETTERS TO THE EDITOR Commentaries or questions should be addressed to: Profiles in Diversity Journal, P.O. Box 45605, Cleveland, OH 44145-0605.

All correspondence should include author’s full name, address, e-mail and phone number.

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pointofview From the editor of Profiles in Diversity Journal

The current issue of Profiles in Diversity Journal is one to hang onto for years to come. We’ve packed this issue with knowledge and insights from some of today’s leading CEOs. We’re proud to introduce our first-ever Leader of the Year. Bill Ford is breaking the mold when it comes to leading the automotive industry and diversity and inclusion are a big part of his success. In fact, we learned that these are critical elements of his personal philosophy on leadership. Read more about Ford’s impact at Ford Motor Co. in our cover story on page 10.

Much of this issue is devoted to recognizing the 2004 Diversity Best Practices CEOs of the Year. We’ve packaged a lot of information about their leadership style, influences, career path, diversity challenges and successes in our story, which begins on page 30.

She may not be a CEO—yet—but Ana Mollinedo, vice president of diversity, communications and community affairs for Starwood Hotels and Resorts, is leading this noted hotel chain through global diversity efforts that are felt from the C-suite to the guest suite. Learn what drives her to succeed and how she hopes to give back to those who helped her along her journey on page 22.

Hispanics are the largest minority population and the fastest-growing group of Internet users. Collectively they represent $6 billion in purchasing power annually. So what are you doing to reach this influential market? If you’re not actively addressing this segment, you could be losing opportunities and business. Learn how to reach this market on page 60.

BMO Financial Group, based in Toronto, is creating a new corporate landscape that is equitable and accommodating to persons with disabilities. And its efforts are working to attract and retain top talent at every opportunity.

Learn how it is breaking down the barriers to those with disabilities on page 56.

Once again we present groundbreaking research from Catalyst; this month’s article discusses workplace flexibility. Employees today are striving for improved quality and effectiveness, both in their work and their personal lives. Did you know that when you help them achieve these goals, employers benefit as well? Read how on page 52.

As always, we welcome your comments, suggestions and feedback. Let us know how we’re doing by e-mailing me at whoke@diversityjournal.com.

Wendy A. Hoke Managing Editor

ISSN 1537-2102 Profiles in Diversity Journal September/October 2004

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Cover Story

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Bill Ford is our Leader of the Year!

Ford Motor Company

By Wendy A. Hoke

Features

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Journey to the Frontlines Starwood Hotels & Resorts A visit with Ana Mollinedo

By Wendy A. Hoke

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Research Workplace flexibility Catalyst Maximizing individual and organizational effectiveness

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BMO’s People Strategy BMO Financial Group Forging the link between diversity and business objectives

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Profiles in Diversity Journal September/October 2004

I am a classically trained pianist.

I enjoy practicing with my children.

And I manage a global drug development team that formulates and analyzes a drug’s lifecycle with the goal of helping people live healthier lives.

My name is Cheryl Renz. I’ve been an Abbott employee for five years.

You are passionate about what you do—an inspiration to those around you.

You want to make a difference in your world. You want the freedom to think, to dream, to see your ideas realized. And you look forward to meeting new and exciting challenges every day.

At Abbott Laboratories, you will find an environment that inspires a level of achievement seldom found in today’s workplace. An environment that recognizes and rewards individual contributions and discoveries. An environment where you can work alongside the foremost authorities in your chosen field.

Experience the inspiration that comes from having small-company freedom with big-company resources.

www.abbott.com

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Diversity At-A-Glance Awards, recognitions and news from companies

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Diversity Best Practices CEO Initiatives A conversation with the 2004 CEOs of the Year

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Sales / Marketing Reaching Hispanic markets Is your company targeting this growing market segment?

64 Global Perspectives Exaggerated productivity New study shows companies are under-performing

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Coming in the next issue …

Our third annual Women of Initiative Issue!

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•

The bar is raised once again as PDJ salutes the top women business leaders in 2004. Among this year’s honorees are women from AOL, Bausch & Lomb, Cisco Systems, DaimlerChrysler, Export-Import Bank of the U.S., KeyBank, Learning Leaders, Lockheed Martin, National City Bank, Starbucks, Wal-Mart and many more!

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In the heavily male-dominated oil industry, Shell Oil has been honored for its efforts in recognizing the achievements of women.

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Catalyst reports on tackling resistance to implementing diversity efforts.

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United States Postal Service women’s 30 year celebration.

Diversity At-A-Glance Georgia Tech retention program receives national honors Sloan Foundation funds New AAAS Center for Advancing Science and Engineering Capacity The Alfred P. Sloan Foundation has awarded AAAS a three-year, $400,000 grant to help establish a new Center for Advancing Science and Engineering Capacity in Washington, D.C. The Center will provide consulting services to individual universities and colleges seeking to increase the participation of U.S. students, especially women and underrepresented minorities, in science and engineering careers.

Daryl Chubin, former senior vice president for research, policy & programs at the National Action Council for Minorities in Engineering, will direct the new Center. With a distinguished record of scholarship, policy analysis and advocacy, Chubin has emerged as a national expert on expanding and diversifying the science and engineering workforce. He has served in the White House Office of Science and Technology Policy and has published eight books and numerous policy reports, articles and commentaries.

Researchers have found that if minorities and women participate in the science and engineering workforce in numbers proportionate to their presence in the general population, the technical workforce will be more diverse in composition and robust in talent for decades to come.

“By pulling together what we now know and setting a research agenda for the future, this Center will surely help multiply the impact of the many efforts going on around the country to increase participation in science by members of under-represented groups,” says Alan I. Leshner, AAAS’s chief executive officer and executive publisher of the journal Science.

Georgia Tech’s Challenge Program is one of four college retention programs to receive the 2004 Lee Noel and Randi Levitz Retention Excellence Award. “The honor is a reaffirmation of what we do and a recognition that we play a critical role in the lives of our students,” says S. Gordon Moore, director of Georgia Tech’s OMED Educational Services, which runs the Challenge Program. The award is given by Noel-Levitz, a higher education consulting firm, and is being presented at this year’s National Conference on Student Retention this week in New Orleans.

Chubb receives Corporate Diversity Award from International Institute of New Jersey The Chubb Group of Insurance Companies was named the first recipient of the Corporate Diversity Award by the International Institute of New Jersey at its American Dream Gala Celebration at the Marriott Glenpointe in Teaneck, NJ. The award was presented to Chubb in recognition of its commitment to recruiting and promoting individuals from many different ethnic and socioeconomic groups.

“It is only fitting that we celebrate those who have helped enrich our state and our nation, as well as those who work to keep our country open to new ideas, new cultures and the newest Americans,” says Nicholas Montalto, the institute’s president.

Chubb’s commitment to diversity is reflected in several ways throughout the organization, says Regina Blair, Chubb's diversity manager. “Our people contribute their diverse backgrounds and skills to building a greater understanding of our markets and customers around the world.”

PricewaterhouseCoopers LLP names Chris Simmons chief diversity officer PricewaterhouseCoopers LLP announced recently that Chris Simmons has assumed the position of chief diversity officer. In this role, Mr. Simmons will become a member of the office of the chairman and the firm’s core executive leadership team. Simmons, 46, succeeds Toni Riccardi, who retired in June after serving in this role for the past three years.

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Profiles in Diversity Journal September/October 2004

As part of its strategy to ingrain diversity and work/life flexibility into the firm’s culture, PricewaterhouseCoopers also appointed three partners to leadership positions within PwC’s lines of service. Patty Tilton in Advisory, Jean Hobby in Assurance and Dina Pyron in Tax will each lead diversity and work/life efforts as members of their respective leadership teams. They will work closely with Simmons.

What’s inside Dell?

Thurmond B. Woodard, Vice President of Global Diversity and Chief Ethics Officer, stays connected to customers, suppliers and his team using the performance and mobility of his Dell Latitude™ Notebook with the Mobile Intel® Pentium® 4 Processor-M.

Dell Global Diversity Thurmond B. Woodard, Vice President of Global Diversity, Chief Ethics Officer and one of corporate America’s leading diversity experts. He helps drive Dell’s vision of barrier-free opportunity by: creating a winning culture, building direct customer and supplier relationships in the global marketplace, and equipping the community for the digital world. What’s the result? Dell is the computing technology supplier of choice for customers across the United States. So, what’s inside Dell? People like Thurmond who deliver superior quality, efficiency and value in all they do.

To find out more about Dell Global Diversity, call us at 1-888-741-1633 or visit www.dell.com/diversity.

Direct relationships. Easy as

To find out more about Dell Global Diversity, call us at 1-888-741-1633 or visit www.dell.com/diversity.

Dell, Inc. cannot be held responsible for errors in typography or photography. Dell is an AA/EO employer. Intel, Intel Inside, the Intel Inside Logo and Pentium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States or other countries. Dell and the Dell logo are registered trademarks of Dell, Inc. ©2004 Dell, Inc. All Rights Reserved.

Diversity At-A-Glance

Pitney Bowes Chairman and CEO receives Human Capital Award Pitney Bowes Inc. (NYSE: PBI) has announced that its Chairman and CEO Michael J. Critelli has been named the 2004 recipient of the Human Capital Advantage Award by Hunt-Scanlon Advisors, a market research firm tracking the human capital and executive recruiting industries.

This annual award is designed to recognize a leading chief executive who has displayed excellence in human capital management while increasing shareholder value. Critelli accepted the award at Hunt-Scanlon's “Human Capital Advantage Forum: Sustaining Momentum” in New York in September.

Critelli has been chairman and CEO of Pitney Bowes since 1997, and holds four U.S. patents for mailing technology. Under his leadership, Pitney Bowes has enhanced its core business and introduced new products, services and solutions that have grown the company’s share of the $250 billion global mail and document management markets.

“We know that our success—past, present and future— is driven by the wealth of talented people we have at Pitney Bowes,” says Critelli.

“Michael Critelli has a long commitment of recognizing that human capital is critical to driving growth and success,” says Scott A. Scanlon, chairman and CEO of Hunt-Scanlon.

“His approach to attracting, retaining and developing talent has created a human capital culture that is loyal, motivated and dedicated. We could not have selected a more ideal award recipient this year.”

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Profiles in Diversity Journal September/October 2004

Public Relations Society of America launches national diversity initiative Diversity is one of the foremost issues facing corporate America today. In response, the Public Relations Society of America (PRSA) has launched Advancing Diversity, a national initiative that unites various elements to promote multiculturalism in both the public relations industry and business community.

“No other national communications, media or marketing organization has committed the resources, the expertise and the leadership that PRSA has provided to make diversity a substantive part of the organization’s present and future,” says Rosanna Fiske, APR, chair of PRSA’s National Diversity Committee.

“Advancing Diversity firmly positions PRSA as the leading organization providing professional development, career opportunities and networking for diverse professionals, for professionals who want to communicate with diverse audiences and for professionals who strongly want to change their organizations through valuing and managing diversity,” she says.

PDJ

Promoting healthy workplaces.

Starting with our own.

Most people at Excellus BlueCross BlueShield focus on the wellness of our customers. But some of us direct our attention to the core principles of a healthy company. Open opportunity and inclusive programs. We know that diversity in our offices means more understanding and compassion in the communities we serve. Learn more about our diversity program by contacting Marie Philippe at diversity@excellus.com.

Vi t a l . Va l u a b l e . E v e r y d ay .

A nonprofit independent licensee of the BlueCross BlueShield Association

SM

Ford Motor Company

LEADER O Bill Ford, Chairman and CEO, Ford Motor Company

“I truly believe there is no conflict between doing the right thing and making money. In fact, doing the right thing is the best way for a company to be profitable over time.”

— Bill Ford, Chairman and CEO, Ford Motor Company

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Ford Motor Company

OUR 2004 OF THE YEAR! BILL FORD IS DOING IT RIGHT AND DRIVING RESULTS AT FORD MOTOR COMPANY

Profiles in Diversity Journal September/October 2004

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Ford Motor Company

BILL FORD

IS LEADING THE COMPANY THAT BEARS HIS NAME INTO THE 21ST CENTURY

W

illiam Clay Ford Jr. took on the role of head of the Ford family in 2001 claiming that he bled Ford blue. In his few short years at the helm he has taken Ford Motor Company in a new direction by calling on the foundation of people and relationships that had made the company a leader in the automotive industry for decades.

He has certainly turned the heads of Wall Street with reports of Ford’s earnings exceeding analyst expectations.

His early management shakeups caused many to raise their eyebrows. And he’s attracted attention—both positive and negative—for his statements in support of the environment and the need to build more fuel-efficient cars and trucks, even as Ford is a leading manufacturer of SUV’s and trucks in the sight of environmentalists.

But with Zen-like intuition, he is gaining the confidence, trust and loyalty of those who comprise the Ford family and causing the automotive and business industry to sit up and take notice.

Profiles in Diversity Journal had the chance to learn more about Ford, his leadership style, his passion for family and his plans for this Fortune 4 company.

Q: In many of your public speeches and comments to both Ford employees and to the business press, you refer frequently to the Ford family: “Our greatest asset is the extended Ford family of employees around the world.”

12 Profiles in Diversity Journal September/October 2004

By including the diverse Ford family of employees, suppliers and vendors, Ford Motor Company is rediscovering its focus—good people and good products Interview by Wendy A. Hoke Can you describe what you mean by family and how you came to view Ford Motor Company as a family?

A: “Obviously, I feel a sense of family quite literally. But many of our employees, customers, dealers and others tell me they feel an intensely personal connection with Ford Motor Company. Those are the people who make up our extended family. The feeling of family at Ford is real. It sets us apart and I believe it is a real competitive advantage.

We’re not just another nameless, faceless corporation.

“Our research shows that because of the family involvement in our company, people are more likely to believe that we are committed to our future, that we produce high-quality vehicles, that we care about our customers and employees and are committed to making their world a better place.

Our family connection makes millions of people around the world feel good about us. We work hard to live up to those expectations—and exceed them.”

Q: Why do people feel so connected to Ford? What specifically is it about the company that promotes the family feeling?

A: “I think it starts with my great-grandfather Henry Ford and our long history of family involvement in the company.

People know who we are and the contributions we’ve made to the world. There’s also a strong emotional connection to our products—they become a part of our lives. We have real family ties throughout our business, too. Many of our dealerships have been handed down from generation to genera-

Ford Motor Company

“We want all of our people to know that they are valued employees of the extended Ford family. ” — Bill Ford, Chairman and CEO, Ford Motor Company tion. And we have many third-, fourth- and even fifth-generation employees from the same family working for us.”

Q: When you became chairman and CEO, some said that working at Ford wasn’t as fun as it used to be. How have you gone about correcting that feeling—not only for employees, but for your extended family of suppliers, vendors and dealers?

A: “Like a lot of companies, we were distracted by the hype of the dot-com boom. We lost our focus on the things that had made us a great company—our products and our people. Because of that our quality suffered, employee morale went down and we damaged relationships with our dealers and suppliers.

“Two-and-a-half years ago, we refocused our efforts on improving our core automotive and automotive financing businesses. Along with our products, quality and productivity, we concentrated on improving our relationships—not only with our employees, dealers and suppliers, but also with the communities where we do business. We want all of our people to know that they are valued members of the extended Ford family. This is the strategy that continues to guide us today, and we plan to stick with it.

“Since we launched this effort we’ve seen a number of improvements in quality, market share, costs and profits, and also in our relationships with employees, dealers and suppliers.”

Q: Given that these relationships are the foundation

of your strategic pyramid, how have you gone about mending and/or solidifying those relationships? What have you done for suppliers and dealers?

A: “Employees are more involved now in every aspect of our company. We are focusing on the use of work teams to identify problems and drive results. These teams involve our suppliers. When people are more empowered and more involved, they feel better about the company and about their personal contribution to it.

“We’re also spending more time talking and listening to all our people, including our dealers. We’re using surveys, focus groups and informal meetings to find out what’s on people’s minds. And we’re putting more emphasis on communications.

“We’re in a tough, competitive business, these are tough times and the work is hard. But we’re trying to emphasize flexibility, inclusion, tolerance and respect. We want to create an environment that makes people excited about coming to work each day. There still is work to be done, but we are on the right path.

Q: In talking to other company CEOs and in reading articles about you in the mainstream press, something about you has captured the awe of the public. Your name is on the top of everyone’s “musthave CEO interview” list. How would you describe your leadership style? What have the other press and industry leaders latched on to?

Profiles in Diversity Journal September/October 2004 13

Ford Motor Company A: “I believe in surrounding yourself with strong people, having honest discussions, building consensus and working together to execute your plan. I think people respond to the fact that I’m motivated by the long-term interests of my company, the communities where we do business and the world in which we operate. I truly believe there is no conflict between doing the right thing and making money.

In fact, doing the right thing is the best way for a company to be profitable over time.”

Q: Who has shaped your thinking as a business leader and why?

A: “My great-grandfather, Henry Ford, for his vision and passion; my uncle, Henry Ford II, for his business acumen, which turned the company around after World War II; and, of course, William Clay Ford Sr., who is an outstanding businessman, community leader and father.”

Q: Your great-grandfather set the wheels in motion for diversity at Ford 101 years ago. What does diversity and inclusion mean to you personally, and as CEO of a Fortune 500 company?

A: “Many people don’t realize that Henry Ford was a diversity pioneer. By as early as 1916, he had hired people who represented 62 nationalities, as well as more than 900 people with disabilities. His $5 daily wage, which was unprecedented at the time, is often credited with helping to create the black middle class.

“We’ve tried to honor this legacy by fostering a diverse and inclusive work environment at Ford. We cultivate the

“If we want to foster a diverse and an inclusive environment here at Ford, then we had better understand there are many ways to do a job.”

— Bill Ford, Chairman and CEO, Ford Motor Company

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strengths of people who have different experiences, ideas, backgrounds, perspectives and life responsibilities. This helps us develop a more diverse range of products. In the end, our company is more successful and all our employees benefit.

“Though we’re making progress, I know we can do better. We have aggressive programs in place to address issues, including retention. But as I’ve always said, diversity is a journey, and we’re still a ways from our destination.

“On a more personal level, I have a strong belief in diversity and inclusion. People with experiences and viewpoints different from ours help us see the world in new and different ways. That’s something we all should value, personally as well as professionally.”

Q: Most company leaders will tell you that diversity drives business results. Ford’s first quarter earnings this year were $1.9 billion, twice as much as expected and far more than GM’s $1.3 billion. What role did diversity and worklife play in the bottom line earnings?

A: “I’d say diversity and worklife play a critical role in our earnings, because we would not achieve the results that we do without the contributions of every employee.

“We are, without doubt, an industry leader in diversity and worklife. I hear that our programs often serve as a benchmark for other companies. We are proud of our third place finish in the Top 50 Companies for Diversity list, published by DiversityInc. Magazine. But we know we can do better. We were first place last year, and we intend to get there again.”

“Diversity is a journey and we’re still a ways from our destination.”

— Bill Ford, Chairman and CEO, Ford Motor Company

Q: Although you have been criticized and secondguessed by analysts and the media, you appear confident in the direction you and your team have set for the company. Where does this confidence come from?

What is your vision for Ford in five years?

A: “We want to be the best automotive company in the world. We’ll do that by building great products, a strong business and a better world.

“In the last two-and-a-half years we’ve stabilized our business and gotten it back on a sound operational and financial foundation. We’re never going to abandon our intense focus on the fundamentals, but we also want to differentiate ourselves and grow our business.

“We’ve got great strengths we can leverage to do that.

For example, we want to lead in new technologies such as hybrid-electric, hydrogen and fuel cell powered vehicles.

We’ve just introduced the world’s first hybrid SUV, Escape Hybrid. It’s the world’s cleanest and most fuel-efficient SUV, and it’s getting rave reviews. We’ve also got the strongest portfolio of automotive brands in the world. And we want to leverage the advantage we have as a family based company, and the strength that our people give us.

“The people of Ford have helped us reached this point.

The key now is to build on the basics and keep the momentum going. I am confident we can do it and I’m excited about the possibilities.”

Q: You seem truly respectful of Ford’s many employees, describing with great pride how people come up to you to say their grandfather worked for your grandfather, or their uncle or aunt works at Ford. You’ve said it is the people who get you up in the morning. Your great-grandfather, like few others in our history, transformed America.

What do you feel is your role in carrying on the Ford legacy, and do you ever feel pressured by that legacy?

A: “People are passionate about Ford—not only our employees, but our customers. We saw it during the centennial, when a group of Model T owners drove here

from California to join us for our birthday. Not to mention the man who drove his ‘52 Ford here from Brazil. Or the mountains of fan letters we got, including those from people who named their babies ‘Ford’ or ‘Lincoln.’

“That kind of passion is an asset. It is a tribute to the work of my great-grandfather and the company leaders who followed him. My challenge is not only to live up to their legacy, but also to the expectations of our employees and customers. Obviously, that’s a big challenge, but it’s one that I welcome and look forward to meeting.”

Q: What does corporate citizenship mean to you?

How does Ford engage in corporate citizenship and how does it reflect the company’s diversity message?

A: “There is a reason that my vision for the future includes a better world. Corporations have a responsibility to give back to the communities where they do business and to help make the world a better place. It also makes good business sense to do so.

“Thousands of Ford employees volunteer time to companysponsored community projects each year.

Ford Motor Company Fund, made possible by our profits, contributed more than $77 million to a variety of organizations and, combined with corporate giving by Ford Motor Company, total grants were more than $85 million. Initiatives and institutions that promote education, especially in math, science, engineering and manufacturing, received the greatest portion of those funds. We give a strong preference to organizations that support and promote diversity in education.”

Profiles in Diversity Journal September/October 2004 15

Ford Motor Company

Q: You have a department known as Diversity and Worklife. Certainly, finding worklife balance is something for which we all strive. How do you lead by example in the area of worklife? Is it even possible for a CEO to achieve?

A: “To be honest, it’s difficult. I don’t know a CEO who would tell you otherwise. I do believe it’s important to maintain a balance in life. I spend a great deal of time with my family, and attend as many school and community events as possible with my wife and children. I am a hands-on father. I also love sports and try to carve out time every day to exercise.

“In some companies, no one is willing to leave for the day until the boss has left, no matter how late the hour. That’s time and effort that could be better spent reconnecting with family and friends, or catching up on some hobby or activity. I want all my employees to understand that face time isn’t important— only results.

“I’ve had many people ask me why we link diversity and worklife. To me, they are part of the same philosophy. If we want to foster a diverse and an inclusive environment here at Ford, then we had better understand there are many ways to do a job. If we don’t approach our work flexibly, if we place too many rigid constraints and demands on people, then we simply won’t attract the best candidates to our company. And even if we are lucky enough to get those talented people in the door, we won’t get their best results and they won’t be willing to stay for very long.”

Q: Your love of Ford comes through loud and clear in your statements about employees and, of course, your love of the product. Is it possible to be a member of the Ford family and NOT be passionate about cars? What is your favorite car?

A: “I don’t think it is possible to be a Ford and not have a love affair with cars. It’s in our blood. And for the record, I happen to be a Mustang fanatic. A Mustang was the first car I ever owned and I’ve had one ever since. Mustang gives you performance and fun, plus it looks cool. That’s a great combination.”

Q: Many would argue that Ford is poised on the edge of redefining what it means to be part of the automotive industry’s Big Three. Do you think this is a defining moment for Ford?

A: “I do. But I also would say that it is a defining moment for the entire automotive industry. The world economy and intense global competition have made this a much

16 Profiles in Diversity Journal September/October 2004

different and tougher business than it was a generation ago. We have to invest in new technologies and find ways to build cars and trucks that have all the features our customers want as well as less impact on the environment we all share. At the same time, we must continually improve our quality, our efficiency and our cost structure. These aren’t just challenges for Ford, but challenges for us all.

“The companies that will succeed will accomplish all these goals, and they will do it smarter, better and quicker than the competition. Do we plan to be one of those companies? You bet we do.”

Q: You’ve told Ford employees that they can expect leadership, commitment, sharper and clear focus, honesty, trust and, most importantly, an eagerness to listen to them. And you expect the same in return. How does Ford Motor Company deliver its diversity message and initiatives to a global workforce? And how do you “hear” and respond to the concerns of a global workforce?

A: Our Global Executive Council on Diversity (ECD) sets the tone and the strategies. It is made up of senior leaders, including vice presidents. So you can see that our commitment to diversity and worklife quite literally comes from the top. Our strategies and initiatives are then implemented by the Diversity and Worklife Planning Office.

“Both the ECD and the Diversity Office have regular contact with employees through the Local Diversity Councils, which are in place and very active at Ford locations throughout the world. We also have 10 Employee Resource Groups, which are made up of employees who share similar ethnicities, backgrounds and experiences.

“We communicate to employees through our internal communications network, through the ERGs and LCDs, and through our annual Diversity and Worklife Summit, which is held in the fall at Ford offices and plants everywhere. It’s a good opportunity to step away from our daily work and focus on the value of building a diverse and inclusive culture. Employees from all over the world tell me that it’s time well spent.

“Last year we also began a committee championed by Jim Padilla, our Chief Operating Officer, that’s called the Multi-Cultural Alliance. Representatives from our major divisions throughout North America join forces to make certain that we’re pursuing diversity in hiring, dealer development, credit for customers, philanthropy, media outreach and other areas. We’ve made a great deal of progress there already, and I’m expecting more.”

The Ford Fund is building community Hundreds of not-for-profit partners each year receive support from the philanthropic arm of Ford, the Ford Motor

“I want all my employees to understand that face time isn’t important— only results.”

— Bill Ford, Chairman and CEO, Ford Motor Company Employees of the Ford Motor Company walk outside the Dearborn Assembly plant within the Rouge complex in 1955

Company Fund.

Started by Henry Ford II in 1949, Ford Motor Company Fund was created precisely because of the cyclical nature of the auto industry and the economy. It was thought that a separate organization—largely funded in advance by Ford—could do a better job of providing financial stability to community organizations, and thus better serve their long-term needs.

The value of this principle has been proven the past few years, during which charitable contributions in the United States generally have declined and the demand for support has increased. Because of Ford Fund, Ford Motor Company contributed $77.5 million to a variety of organizations in 2003. Combined with corporate giving by Ford Motor Company, total grants were $86.6 million.

Education is the primary emphasis of Fund grants, says Sandy Ulsh, vice president, Ford Motor Company Fund. The Fund provides a majority of its support to organizations and institutions along the educational “pipeline” —–the path of learning that leads from preschool and elementary school to high school, college and beyond.

Special preference is given to educational programs that promote diversity, including those that encourage minority students to pursue careers in math, science, engineering

Bill Ford poses with one of the Model-T Fords that rolled off the assembly line in 1909

and manufacturing.

Summit celebrates diversity and worklife For five consecutive years, thousands of Ford employees throughout the world have participated in a weeklong series of events focusing on diversity, worklife and inclusion.

During the Diversity and Worklife Summit, activities are held at Ford locations in nearly every country and community where the company does business. These include everything from educational presentations and potluck lunches to cultural awareness exercises, team-building activities, and community service and stress reduction techniques.

The week is capped by a reward and recognition event that honors Ford employees and managers from throughout the world who are diversity and worklife leaders. This

Profiles in Diversity Journal September/October 2004 17

Ford Motor Company

“My challenge is not only to live up to (my family’s) legacy, but also to the expectations of our employees and customers.”

— Bill Ford, Chairman and CEO, Ford Motor Company year’s summit took place September 9-22.

Engaging employees in the Ford family To promote diversity and inclusion, Ford Motor Company supports the work of two employee networks: the Ford Employee Resource Groups (ERGs) and Local Diversity Councils (LDCs).

The 10 ERGs currently active at Ford each represent employees of a common background or interest. These are: the Ford Employee African Ancestry Network (FAAN); the Ford Asian Indian Association (FAIA); the Ford Chinese Association (FCA); the Ford Interfaith Network (FIN); the Ford Parenting Network (FPN); Ford Gay, Lesbian, Bisexual or Transgender Employees (GLOBE); the Hispanic Network Group (HNG); the Middle Eastern Community (MEC); the Professional Women’s Network (PWN); and Ford Employees Dealing with disAbilities (FEDA).

The ERGs work closely with Ford to recruit new employees, assist with product development and targeted marketing campaigns and engage in an active mentoring program.

LDCs exist within nearly every Ford organization, as well as within many plants and offices. The LDCs are groups of employees who plan diversity and worklife-related events, both educational and recreational, for their colleagues.

All events are intended to support diversity, inclusion and teamwork.

Many of the ERGs and LDCs hold charity events and fundraisers, and donate hundreds of volunteer hours to the community each year.

“The ERGs and LDCs are important partners in our efforts to foster an environment at Ford that is inclusive, diverse and respectful,” says Joe Laymon, group vice president, Corporate Human Resources and Labor Affairs. “This helps to strengthen the relationship between Ford and all its employees.”

Encouraging entrepreneurs Ford Motor Company has long been an industry leader in

18 Profiles in Diversity Journal September/October 2004

helping to build diverse communities through minority entrepreneurship. By providing training, financial assistance and ongoing support, Ford has helped many people realize the dream of owning a business.

Ford currently leads U.S. automakers in the percentage of minority-owned or operated dealerships, and has more African American auto dealers than any other manufacturer, counting 209 (40 percent) of the industry’s 529 African American dealers.

Ford also is a leader in diverse supplier development. In 2003, Ford spent $3.2 billion on products and services purchased from nearly 300 minority-owned companies, earning Ford a spot on the “Billion Dollar Roundtable”—a small group of companies that have spent a billion dollars or more with diverse suppliers every year.

“We consider these businesses critical to our legacy and fundamental to our overall mission: to build better communities and a better quality of life for generations to come,” says Ray Jensen, director, Supplier Diversity Development. “It’s not only the right thing to do. It’s also good for our business.”

Family Service and Learning Centers are supporting families The Ford Motor Company Family Service and Learning Center (FSLC) program is one of the most comprehensive union-management partnerships ever negotiated to meet the needs of working families, individuals and retirees, and

Ford Motor Company

their communities.

A result of the 1999 negotiations between Ford and the UAW, the FSLC ultimately will bring services and programs to more than 29 locations throughout the United States where Ford has a large concentration of employees.

from reservations for dining and entertainment and finding recreational activities, to searches for special types of merchandise and services.

Services generally fall into three categories:

Ford Motor Company prides itself on having a great value proposition for its employees—a strong workplace, good benefits and programs, low attrition and employee loyalty.

Over the past two years, the company also has placed a new emphasis on building an inclusive environment that is focused on diversity, flexibility and respect.

The company actively works to identify issues and has developed task forces to take a deeper dive into issues that impact employees most, including retention.

“Once employees are in the door, it is our goal to keep them,” says Rosalind Cox, director, Diversity, Worklife, and Peer Review.

“Apparently, others outside our company agree with the work we have done. We’ve received many awards as an Rosalind Cox, Director, employer of choice.”

• Family and Education Services—including family services, family and adult education programs, pre-teen and teen programs, tutoring, personal development and other health and wellness activities.

• Early Childhood Education Services—including dedicated “best-in-class” childcare centers for infants through kindergartners. In addition, local networks of high-quality childcare providers will be established as needed to provide 24-hour emergency backup childcare, and to enhance the overall quality and accessibility of childcare in our communities.

• Community Service Education and Outreach— supporting individual and family activities to encourage community volunteerism, identify volunteer opportunities and offer training to volunteers.

Through the Family Service and Learning Centers, Ford also offers a convenience/concierge service that enables all active Ford and Visteon employees and spouses to get fast advice and help with tasks that cut into both work and personal time. The service offers assistance in areas ranging

Building loyalty among employees

Diversity, Worklife, and Peer Review

Profiles in Diversity Journal September/October 2004 19

Ford Motor Company

“Corporations have a responsibility to give back to the community where they do business and to help make the world a better place.”

— Bill Ford, Chairman and CEO, Ford Motor Company

Partnering in these efforts on inclusion is the MultiCultural Alliance, a high-level committee led by Jim Padilla, chief operating officer, Ford Motor Company, and chairman, Automotive Operations, that is exploring ways that Ford can become the premiere company of choice for products, services, partnerships and employment for all cultural groups.

Leveraging all of these actions will ultimately have a positive impact on all employees, resulting in a loyal and committed workforce, adds Cox. “We are working hard to develop a culture where employees feel they can maximize their professional and personal growth,” she says. “Such a culture encourages employee engagement and employee satisfaction.”

Honoring our success: Diversity and Worklife Awards Over the years, Ford has received numerous awards in recognition of its diversity and worklife efforts including DiversityInc.’s Top 50 Companies For Diversity (rated number 3) and Working Mother magazine’s 100 Best Companies For Working Mothers. Black Professionals and Hispanic Magazine have rated Ford as a Top 100 Company for African-Americans and Hispanics. This further solidifies Ford Motor Company’s status as an employer of choice.

PDJ

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Profiles in Diversity Journal September/October 2004

Journey to the Frontlines:

A visit with Starwood Hotels and Resort’s Ana Mollinedo Leading the travel and leisure industry by mirroring the world market

By Wendy A. Hoke

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Profiles in Diversity Journal September/October 2004

Feature

Starwood Hotels & Resorts

Starwood Hotels & Resorts A

Photo: Jennifer Graylock

na Mollinedo is no-nonsense when it comes to diversity and inclusion.

Not only does she make it her job to show the business imperative for embracing diversity, but she also lives and breathes it as a Cuban-American woman.

For the past two years, Mollinedo has made it her focus to expand Starwood Hotels’ global diversity and inclusion program as its vice president of diversity, communication and community affairs.

Starwood, which has only been in business for six years but encompasses the Sheraton, W, Westin, Four Seasons, St. Regis and The Luxury Connection brands, is a terrific match for Mollinedo’s skills.

“There are companies that think they know diversity, but don’t and there are those that know they need help and go after it,” she says from the Sheraton NY Hotel and Towers at 53rd Street and Seventh Avenue, in Midtown Manhattan.

Although she’s not a native New Yorker, Mollinedo is often mistaken

Ana Mollinedo, Vice President, Diversity, Communication and Community Affairs, Starwood Hotels & Resorts

Profiles in Diversity Journal September/October 2004

23

Starwood Hotels & Resorts

Photo: Jennifer Graylock

Feature

for one, a product of having grown up just north of Fort Lauderdale, Fla., in what she jokingly calls, “the sixth borough of New York.”

In her 18-year career, Mollinedo has brought a range of experiences that she now employs for Starwood.

Her first order of business is to roll up her sleeves and ask who’s here and what’s here. “We need to find out what people we need to influence,” she says.

Mollinedo started at Starwood in 2002 and says she was encouraged because the company already recognized that diversity and inclusion needed to be part of its core competency; it just wasn’t quite sure how to build it.

Although the task can be daunting, she acknowledges that having the

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support of the company’s leadership makes the job more manageable.

Meeting the players With a background in corporate affairs she was new to the hotel industry, so her first move was to meet the players. She knew the diversity and inclusion imperative needed to pervade all aspects of business since 80 percent of Starwood’s workforce are women or people of color.

“We’re not talking about diversity as an initiative, we’re talking about a corporate culture. We got it that we need to mirror our workforce and that the world is our market. The real question is how do we tie it to our business? So when our Westin brand is trying to capture market share, top

Profiles in Diversity Journal September/October 2004

of mind is the market, inclusive of a multicultural marketplace,” she says.

“If our properties are all taking ownership for serving a multicultural market, which is their market not mine, then everyone on those teams is addressing diversity, not just my team from corporate.”

Based in White Plains, N.Y., Starwood’s corporate team is designed to serve as a resource for operations. “Our message is, ‘This is your market. How can we help you create presence, capture market share and attract and retain talent?’ ” In the hotel industry diversity is more readily tied to the business because of its contact with guests.

“We see a plethora of diversity in our lobby and in the folks greeting them. If we don’t have an inclusive environment our associates are not happy and if you check into a hotel and see an associate who’s not happy on the job, it hits you on the spot. Our business is feeling the pain and it’s immediate,” she says.

“What we do is very public driven and we’ll only have a few minutes to correct the problem. In the hotel industry it’s difficult to fake it because we’re in the spotlight 24 hours a day.”

Mollinedo understands that her job isn’t always going to guarantee that she’s well liked. “I’m asking people to think differently, to step out of their comfort zone. I’m asking them to look at themselves and their biases, at why they don’t advertise in certain markets or why they don’t promote certain people faster. I’m asking them what drives them as people.

“You’re not always going to be the most liked person and you’ve got to be okay with that. In the end when you convert them it will be appreciated.

You have to keep your eye on the win-

Feature

Starwood Hotels & Resorts

Reaching people in the field “How were we going to know what resources the folks in the field need to build a better workforce, to reach out to different markets, to build different relationships in the community and from the norm if we don’t meet them where they are?” she says.

And so she became a road warrior, visiting the nine regional vice presidents. Her suggestion was to establish regional diversity councils.

“These regional vice presidents know their market better than I do or anyone in corporate. I’m here to recruit them to be a partner in the diversity function.

I’ve come to them with demonstrations, saying here’s what your market looks like, here are the cultural organi-

Photo: Jennifer Graylock

win,” she says.

Understanding what the senior leaders’ vision of success looks like is part of the initial process. “Once I get a picture of that, I tell them it’s going to get uglier before it gets pretty because I’m going to ask you for money you haven’t spent, resources you haven’t allocated, pull apart stuff that you put together before I got here and some folks are going to be challenged.”

Her first 100 days were spent meeting people, understanding the process and understanding the business. She spent a couple of weeks learning all of the brands by spending time with the maintenance people, the housekeepers and the kitchen staff.

Mollinedo’s goal is to develop a diversity structure that touches the bellmen at every hotel. Her challenge was how to deliver that message if the diversity council met at corporate once a quarter.

zations in your region, here are dates of meetings and conferences and here’s what your workforce looks like. Does it look like your marketplace?”

How well has this worked? Starwood launched a diversity page on its Intranet so that different regions can share best practices information. There’s a global diversity council based at corporate and Mollinedo says it’s important to have the executive management team on board because they control the budgets. “We have some things on the global councils that have bubbled up in a region but are so good that we want it to be worldwide,” she says.

Each regional council is comprised of representatives from human resources, procurement, general managers, department heads (housekeeping and maintenance) and the like.

“I wanted them to appoint the people on the council so it’s representative of the region and the hotels.”

Regions are given guidelines for succeeding and asked questions that drive success, including: • Who owns relationships with the Hispanic Chamber of Commerce or the NAACP? • How do you communicate to each other and other regions that you exist?

• What goals have you set up, how do you communicate those with the global council and how do you align those with business?

Inclusion training is also tied to the business. In the case of Starwood, training plays a critical role in serving the customer. After all, in most cases women are making the decisions

Profiles in Diversity Journal September/October 2004

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Feature

Starwood Hotels & Resorts

Photo: Jennifer Graylock

about where families go on vacation and where they stay. “What are we doing to capture that market because clearly in our business women are making the decisions. I suggest that, at the next procurement meeting or strategic business planning meeting, they look at how many women they have at that table.”

Starwood has built a state-of-the-art minority supplier program that is tied into national contracts negotiated at corporate and at each property. “As a company we’re already at 8.5 percent of our vendor spend with minority businesses,” she says.

She credits Randall Tucker, manager of minority supplier development, with jumpstarting the program. Tucker, 27, started at Starwood two years ago and has consistently taken on more responsibility, something that Mollinedo looks for in employees.

“Ana works at 110 percent and expects her staff to do the same,” Tucker says. “She jumps in front of as many things as possible.”

Tucker has learned a number of things from Mollinedo. Among her pearls are: • Growth hurts.

• You will make mistakes and will grow from them.

• You have to make an emotional connection, both personally and professionally, with the folks on your team in order to get buy-in.

Although he doesn’t manage direct reports, Tucker says there are a number of people he must tap into and Mollinedo has taught him the value of being able to lead across, above and below.

“I had a lot of raw talent and Ana has helped me hone that talent. I would like to be able to do that for another person,” he says.

“The best lesson she gave me was on a little card with proverb that said you may be on the right track, but if you just sit there you’ll get run over. There’s always something more you can be doing,” Tucker says.

Starwood Chairman and CEO Barry Sternlicht (center) with Sheraton associates.

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Profiles in Diversity Journal September/October 2004

In for the long haul

Feature

Photo: Jennifer Graylock

teach,” he says.

Norton describes Mollinedo as smart, very motivated, aggressive and hard working. “She has a tough role in this industry and in this company. There’s a lot of tough sledding and it took someone with all her attributes and her determination to go forward and overcome the obstacles.”

Her process is to understand what is working and how to make it better.

Tucker is a good example of someone who got the right support and opportunity to demonstrate his capabilities, says Norton.

“We’re working hard to create a culture of inclusion.

That kind of change takes time. The challenge is that we can’t go faster. We have

Starwood Hotels & Resorts

to be patient enough to let the programs work.

“I’m confident in every aspect of our program and in Ana and the rest of the global team and am also confident enough that the organization will change.

I’m not worried about the willingness to make it change,” says Norton.

Part of Mollinedo’s success is that she comes from the heart. She’s fully aware of her strengths—and her weaknesses.

“I get too focused and don’t notice what’s going on sometimes. I multitask too much. I’m impatient. We’re spread thin because we’re still hiring people. I let my staff know that they’ve got to tell me if that’s affecting them in a negative way,” she says.

“We have blind spots, we can’t see ourselves sometimes and part of leadership is being willing to see your own.

Being successful also is being comfortable with failure. Leadership is being able to visibly fail and let people know

You can only be a good leader if you have good leadership.

“This is a marathon, not a dash. You can’t do it overnight. My boss (Dave Norton) is the shadow in all of this.

When the company gets credit it’s the face of the president you see, when it’s the program, it’s me. But he’s the one who looms in the shadows over it all. I watch him do more of the stretching and growing,” she says.

Norton, executive vice president of worldwide human resources, says he’s long been a believer that the makeup of a person is more important that specific qualifications.

“Give me someone smart, who transacts and communicates well because that is the stuff that’s hard to

Profiles in Diversity Journal September/October 2004

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Feature

Starwood Hotels & Resorts

that you can handle it,” she says.

Q&A with

Ana Mollinedo Q: Where did you develop your leadership?

A: ”It started with my father. I was born in Havana, Cuba, and came over in 1967. My parents spoke the language, but their degrees were no longer relevant in the states. Dad drove a truck for a meatpacking company and washed dishes at Pizza Hut. “We would get beat up at school because of who we were. I think back on that and the courage it takes. I never saw my parents lose their cool.

From the time I was a little kid, my father would have these long conversations, saying, ‘Don’t let anyone say you can’t do something because you are a woman or Hispanic. If you can learn to play the game by the rules of those who made it, you will be as or more successful than they have been.

Keep your eye on that. And if you don’t forgive things people say and do to you, you will become like them.’ ” Q: Who were your early influences?

A: “My father was such a huge influence on my business practices, and my mother was a huge influence on remaining a lady while I put those practices in place.

“Fortunately, my teachers at school saw something in me and invested in me. And my parents let me know that my destiny and opportunity were not going to be found sitting next them.

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When opportunities came, I took them.

“My first job was as a legislative aide for Congressman (William) Lehman. One of the things I learned is that leading is serving other people.

My role is to open doors that people at certain levels can’t open. It’s giveback time for all those people who stood on the sidelines to watch me succeed.”

Q: How do you define leadership?

A: “Leadership is about being at the meetings with the chairman and the president because they can or can’t support you depending on where your work is going. Leadership is stepping outside. But it starts with you.

“The challenge is getting people more comfortable with dealing with your team rather than you. Some people want to be the face of everything.

But it comes back to hiring great people. If you believe your people are solid and capable, others will believe it, too.”

Q: Who are your mentors?

A: “Ken Siegel, executive vice president and general counsel for Starwood, talks to me about where I need to develop and what I need to keep doing. I can turn to him and say, ‘I just had a conversation that went south and I need to understand.’

“I try to surround myself with people who are not like me. You need to tell me when I’m messing up. If you don’t, you take away my ability to grow. My dad said if I have a vision of where I want to be in life, look at the people that are there and find out where they went to school and what kinds of experiences they had.”

Q: Was there a moment when you learned a hard lesson that you’ve carried with you?

A: “In my mid-20s I was lobbying for a business group in Florida. I was the

Profiles in Diversity Journal September/October 2004

only woman on the team and the only Hispanic in the office. My boss, who was not the most progressive man, said he wanted to talk to me about my attire. I was wearing a dress, up to my neck, down to my ankles, with a big bow and my hair in a ponytail. He told me when I went back to the Capitol tomorrow to notice what the women were wearing. Then come back to the office and notice what the assistants were wearing. I noticed the women across the street were wearing skirts, pants, jackets and the secretaries were wearing dresses. He told me to think about what message I wanted to send. I have never worn a dress to work again.

“You can choose to be offended or you can choose to grow and determine what you’re going to learn from that experience that makes you better.

“Diversity, mentorship and promotion are a two-way street. It’s not just the company’s job to provide you with opportunities; it’s also your role to embrace. Sometimes you need to hear your clothes aren’t working or you need to tone down your makeup. You have to be willing to hear those messages.”

Q: What are some of the global issues facing Starwood?

A: “There are different issues of diversity and inclusion when you’re talking about things outside the United States. For example in Asia, Asian owners want to have western white guys run our hotels. We’ve suggested to them that other Asians or women could do a great job. In several cases we’ve been in between general managers and asked if it is okay if we put this female Asian in the role for the time being. Six months later in both cases, they want to keep her. It’s an educational process.”

PDJ

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CEO Initiatives

Saluting 2004’s CEOs

By Wendy A. Hoke

Edie Fraser, President and Founder, Diversity Best Practices and Business Women’s Network

D

eepening diversity efforts throughout their organizations, this year’s CEO honorees are leading the charge for inclusion, marking a key turn in the practice of diversity. As you will see from the interviews on the following pages, these CEOs have expanded the breadth and depth of their efforts. And that’s largely due to a personal commitment on the part of the CEOs, according to Steve Miller, CEO of SLM Discovery Ventures and former chairman of Shell Oil Co. “I don’t mean to disparage any past winners (including myself), but I see today’s CEOs becoming increasingly comfortable with diversity. They themselves are more deeply engaged and have increasingly internalized the idea,” says Miller, who led the panel with Diversity Best Practices and Business Women’s Network, based in Washington, D.C., that selected the honorees.

“The quality and standing of chief diversity officers are improving and increasingly they are reporting to the CEO. That is helping to elevate the quality and visibility of people serving in those positions, a trend that’s gathering steam,” says Miller.

And CEOs today are all about sharing experiences. “Certainly leading CEOs look at what their peer group is doing in an effort to learn from each other. As those experiences are shared, other companies take that as the new standard and build upon it,” he says.

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The 2004 CEO Leadership Award winners understand that the future lies in diversity.

“They are taking advantage of every opportunity to create a new business culture that is progressive, inclusive and, most important, lucrative for building the business,” says Edie Fraser, president of Diversity Best Practices and Business Women’s Network.

“These corporate CEO leaders believe in sharing best practices, benchmarking to improve performance, and expanding the potential of their businesses.”

Nothing makes a CEO more credible than when they are fully engaged in an activity themselves—whether it’s increased efficiency in the production line, customer interfaces, global competitiveness in the marketplace or diversity.

“As you engage in the subject matter, you begin to really feel it,” says Miller. A leader’s views on diversity can evolve, since it’s the kind of concept that heightens over time. But it’s tough to fake engagement.

“It’s very difficult to have a set of personal values that are contrary to the values embodied around diversity. You can only go so far before people see there’s a clash between what you officially say and actually do.

“People winning the awards this year will have spent more time in the activity than those who won the award a few years ago. They’ve simply been engaged longer and are able to better internalize the message,” he says.

But effective diversity and inclusion is also about good leadership.

“Leadership is about setting forth a vision of where you want to go and then creating the climate and the enablers so that the organization, whatever it is, can make progress toward achieving that vision.

“Articulating clearly why that vision has merit and power so the organization understands the vision of diversity is integral to success. Then it’s up to the leader to set the personal example of engagement and provide the resources, encouragement,

Profiles in Diversity Journal September/October 2004

cheerleading, and mentoring necessary to get you where you want to go,” he says.

That’s not to say there aren’t challenges to reaching the goals.

A lot of companies today struggle significantly with the issue of minority suppliers. “They can understand on a macro level the desire to work with minority suppliers. But with global services focused on cost it tends to lead companies to large suppliers (with the advantage of scale).

“The reality today is that not many suppliers are certified Minority Business Enterprises (MBE) or Female Business Enterprises (FBE). You have a conundrum as you work on the cost equation, pressures of globalization and optimization.

What can you do to be able to handle the dual requirements of your vision vis-`a-vis your productivity and supply?”

Organizations today are faced with two looming questions: How do you make minority suppliers equal in scale and development to other non-minority suppliers?

How do you grow them from small niche suppliers to bigger companies with the advantages of scale?

There also are challenges to companies as they seek to promote women and people of color into higher levels of management.

“Companies still require qualified candidates for these positions. We need to go

Steve Miller, CEO, SLM Discovery Ventures

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back into the development chain, providing learning experiences for women and minorities so they are among the highest qualified candidates at the senior-most levels,” says Miller.

And in many cases those also are societal initiatives, rooted in the educational experience. But it is an organization’s managers that can make diversity happen on a largescale basis.

“Middle managers take pride in being able to get the organization where the leadership wants it to go. Their attitude is, ‘Give me the tools, training and money to get that work done.’ You’ll always have a small minority that resists. But most are quite happy to get on with it.”

The key is putting the money where their mouth is. “It’s unfair to ask managers to do this without giving them the resources. The

litmus test is how many resources leaders put into diversity,” says Miller.

The companies that are doing it best are those in which the CEO is spending time and leading the efforts.

Following are profiles of leaders at 10 companies that are doing just that— leading diversity.

Nature or Nurture Finding the mix of talent that fosters strong leadership is a hallmark of this year’s CEO Initiative honorees Compiled by Wendy A. Hoke Are leaders born or are they made?

Most likely it’s a combination of the two. At least that’s the consensus from the 2004 CEO Initiative honorees. Each of this year’s honorees combines a sublime mix of nature and nurture in leading their organizations.

Profiles in Diversity Journal asked each of them to talk about their leadership, career path, influences and diversity efforts. Their responses were both engaging and enlightening and prove that leading global companies is about engaging a diverse workforce, customer base and supplier network— and it’s about listening and learning.

Getting to this point As children, it’s doubtful that many people think to themselves, “I’m going to be CEO someday.” The career path to the C-Suite is often a meandering one, crafted from varied experiences found within a single industry or a number of industries.

But a CEO’s sense of leadership often blooms early on. They may know that deep within they possess the very fabric of “leader.” And with the help of positive influences, good mentoring and an uncanny knack for understanding what drives people and organizations, they find their way to the chairman’s office.

“Very early, I realized that I was fortunate enough to have an intuitive

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understanding for what our consumers might want, but it was the ability to adapt to different challenges in different countries that gave me the legitimacy to lead our very international business,” says Lindsay Owen-Jones, chairman and CEO of L’Oréal.

His career began as a salesman at L’Oréal, working his way through greater responsibilities in France, Belgium, Italy and the United States.

Passion for the company and drive have led him to his current position. “I am naturally demanding of myself and ambitious for the company.”

Tom Freston, co-president and coCOO of Viacom, jumped way off the corporate ladder after his days as an ad man proved he didn’t have the hardcharging character to propel into a leadership position in that industry. So he took a trip around the world, spending eight years working in Afghanistan and India, exporting clothing for a company that he started with a partner.

“After the Soviets invaded Afghanistan, I was forced to head back to New York where, in a conscious ‘career change,’ I was fortunate to be able to combine my love of music and my entrepreneurial spirit at a place just starting out—MTV Networks.”

Freston thrived off the energy of the early MTV. “Everyone did everything and we consciously tried to hire people who had no television experience.

Profiles in Diversity Journal September/October 2004

As the company grew, people left for various reasons and more and more responsibility kept landing in my lap.

And while my rise through the ranks happened organically to some extent, I definitely had the right preparation and the right frame of mind to accept the leadership roles that were presented to me.”

Many of this year’s honorees got their start in sales, including Jack Ward, chairman and CEO of Russell Corp. He was lured back to corporate life when offered the chance to lead Russell. It was the fulfillment of a longtime dream. “I had always aspired to a position as CEO for a major corporation. Russell gave me that opportunity and also the opportunity to use my knowledge and experience to help the company transition to an organization that can operate in a global economy.”

Jim Quigley and Barry Salzberg are being recognized together for their diversity leadership at Deloitte & Touche USA LLP. It’s only fitting for these two leaders to be honored together. They and their spouses were seated at the same table in 1985 at the new partner admittance celebration— Quigley having risen on the audit side and Salzberg the tax side.

Quigley is now CEO of the U.S. operations and works closely with Salzberg, who is U.S. managing partner.

“During my career, I have not always

CEO Initiatives more offices than I can count, but I did been in what is typically seen as a ful,” he says.

Bill Swanson, chairman and CEO of learn how to sell—and not only comleadership position; nevertheless, I have always considered myself a Raytheon, says, “It has been my privi- puters. I learned how to sell myself and leader,” says Salzberg, adding that in lege to work in Raytheon as an engi- my ideas—skills I would need later in order to become a leader, you must neer on the shop floor, in materials, life.”

He took the advice of a mentor, who manufacturing, fabrication and quality, first see yourself in that role.

Anne Mulcahy, Xerox chairman and in systems integration and planning, in suggested he pursue an advanced CEO, grew up in a large family, but it was- program and general management— degree at night. “It was a good decision n’t until she was in college that she and in almost all levels of leadership. that opened my mind to the power of began to thrive on her newfound inde- These experiences have left me with a personal development.”

He joined BMC Software as a sales love for this company, its people and its pendence. representative after working for two “Looking back, I now realize that customers.”

“I’ve always had enormous respect for high-tech firms. “I was fortunate to be certain moments in life, including my experiences at Marymount (College), entrepreneurs and actually thought that I a top sales performer for consecutive are the foundation for the career I have would build and own my own company years and was promoted to sales one day. However, when I graduated manager,” adding that he progressed built,” she says. through manageHer career at Defining Leadership ment positions Xerox began as with oversight for a sales rep in strategic marketBoston, evenWhat is leadership? The short answer is that there is no one definition. Each CEO has a corporate tually moving slightly different concept of leadership. And it’s the wise ones who take a little from their ing, strategy and busiup through the experience and make it their own brand. ness developsales manageLeadership is part vision, inspiration, flexibility, humility, respect, communication and ment ranks. accountability. Here’s a snapshot of what this year’s honorees had to say about defining ment, and was senior vice presiBut then she leadership: dent of research jumped that • “Loving one’s work and getting on with other people no matter how different they may and development track to move be from oneself is just as important for success.” —Lindsay Owen-Jones before being into human • “Leadership is a ‘vibe,’ and is most powerful when it comes from the heart as opposed named president resources, a to a leadership guide.” —Tom Freston and CEO in 2001. role some • “Leadership is about making the right decisions, not the popular ones.”

— Jack Ward S t e p h e n advised her • “True leaders earn the respect of others through their example—what they stand for Sanger, chairman was risky. and how they live their beliefs.” —Jim Quigley and CEO of “(The move) • You can’t communicate enough. “Good people aligned around a common set of General Mills, gave me objectives can do almost anything.” —Anne Mulcahy began his career insights into • “A leader must believe so much in what they are doing and how they do business, that as a product manthe corporation they would be willing to give it all up without any regrets, if asked or forced to ager, moving up that I was not compromise the greater good for individual gain.” —J. Wayne Leonard the ranks through exposed to in marketing. “I did the field. It also piqued my interest in operations— from college in 1982, I found the employ- not count on being named CEO, but I what keeps the global enterprise tick- ment environment to be very difficult. always expected to ultimately become Houston was experiencing the worst of one of the leaders of the company.” ing each hour, each day.”

J. Wayne Leonard, CEO of “I developed a reputation as a ‘fix-it times with the oil industry collapse. I was executive’ and was recruited to Waste unemployed, broke and newly married,” Entergy, started out as an accountManagement in 1999 after an account- says Bob Beauchamp, president and ant. He was fortunate to find himself, at the age of 32, reporting to ing and insider trading blowup,” says A. CEO of BMC Software Inc. It was a harsh wake-up call, but also the chairman and CEO, a person Maurice Myers, chairman of Waste Management. After 10 years as CEO of gave him the fortitude he would need who fast became his mentor. “He Aloha Airlines, he left that role to tackle to succeed on the job. After a few wanted me to prepare for the day I turning around troubled companies. months, he landed a job selling word might become the CEO. I had no “(It) presented considerably more per- processors. “It was a classic door-to- aspirations beyond a finance position sonal risk, and more reward if success- door sales job. I was thrown out of in middle to upper management. He

Profiles in Diversity Journal September/October 2004

33

CEO Initiatives set up a program where I spent two years out of the corporate offices and in the field working with our craft employees (linemen) and interfacing with customers. When offered the job, I had a lot of soul-searching to do on whether I could do this and do right by all the people who were counting on me; including our employees, our owners, our customers and my family,” says Leonard.

But doing right is what these CEOs are doing. Part of the reason for that is having a clear model for developing their leadership and the willingness to listen and learn on the job.

Style and early influences So who and what are the early influences on the lives of today’s corporate leaders? Although parents were typically the earliest influences, there are many others who provided inspiration.

Some lead by intuition, preferring to give employees the freedom to take risks, make decisions and captain their own ship. Others prefer building consensus. But each leader molds these qualities to best serve his or her company.

“I am a believer in a more casual and collegial management style: I put a lot of focus into setting the kinds of cultural values important for this kind of creative organization,” says Freston. “I am a big believer in decentralization, which can be daunting for those accustomed to a top-down approach. I continually emphasize the importance of our ability to be nimble, humble and smart and stress the importance of being a first choice place to work.

That’s the way to attract and keep the most talented people.”

For Quigley and Salzberg, leadership is about empowering others to govern themselves and being open to different perspectives.

When asked what business books have influenced them, several CEOs mentioned “Good to Great” by former Stanford University professor Jim Collins. The premise of his book was

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that the quality of leadership is what can take a company from good to great. “The difference between good leaders and great leaders is a paradoxical blend of personal humility and professional will,” says Mulcahy.

“Great leaders are self-effacing.

They deflect adulation and they give credit to others. Yet they have a stoic resolve to do whatever it takes to make their company great. Their ambition is first and foremost about the company, not about themselves. If you focus on the institution, your contributions are much more likely to be lasting ones.”

When it comes to making decisions, Myers believes that although it’s important to hear from the best brains, it is ultimately the CEO’s responsibility to make the best decision. “One of a leader’s most important talents is the ability to draw a solution out of a set of ambiguous data or information,” he says.

An engineer by training, Swanson believes process drives solutions by creating an environment that encourages dialogue, learning and intellectual curiosity. “I have high expectations that we do the right thing. I expect everyone on the team to treat the company name as if it were his or her own,” he says. His method is to listen, anticipate response and follow through, using the highest ethical standards.

Building consensus is what Sanger works toward daily. “I do not allow pre-meetings where issues are brought up for the first time or postmeetings where issues are privately pre-sold. If a new issue or point requires discussion we reconvene the entire group. I make it clear we live by no secrets and no surprises,” he says.

“My parents are loving people who taught me right from wrong, compassion and respect for others and gave me a strong sense of self-respect,” says Beauchamp. “My grandparents also were powerful role models. I aspire to be the man my grandfather was, and that will not be easy. He was

Profiles in Diversity Journal September/October 2004

never rich with money, far from it; but he displayed all the values that today I hold most dear—honesty, compassion, loyalty, joyfulness and self-discipline.”

He also finds inspiration from history. “ ‘Battle Cry of Freedom: The Civil War Era,’ by James M. McPherson opened my eyes to the powerful leadership of Abraham Lincoln—a perfect blend of pragmatist and ideologist. He sustained his love for humanity and for his country while knowing that conquering evil and saving a nation would require the ultimate sacrifice.”

Role of mentoring Part of a leader’s responsibility is to give back, to pass on his or her knowledge and insight to another generation of leaders. Most of today’s highly effective leaders had someone along the way nudging them in the right direction.

Perhaps it was the coaching of talent, or discovery of what lies within.

Regardless, someone took the time.

And in this hectic world, when leading a company leaves so little time, the good leaders are still nurturing talent.

“The whole L’Oréal culture is about transmitting know-how from one generation to another,” says Owen-Jones.

“The beauty business is an art, not a science, and experience counts enormously, so all of us spend our whole professional lives first learning from others and then transmitting this knowhow to the next generation. Every day I have breakfast or lunch with one of our young managers just to hear out his problems and help him put them into perspective. For many of them this is more precious than all the formal reporting systems and meetings.”

There are individuals and organizations that make an impact on you at various points in your life. It can be your parents, teachers, bosses, colleagues and friends.

Quigley also credits his family and his wife Bonnie and the chance to work directly with Global CEO Mike Cook. “I saw first-hand the inner work-

©2004, Fannie Mae. All rights reserved. The house logo is a registered mark of Fannie Mae.

At Fannie Mae, we value diversity.

That’s why we’re committed to working with minority- and women-owned businesses.

Diversity is a core value at Fannie Mae. That’s why we’re committed to developing innovative partnerships with more minority- and women-owned businesses.

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CEO Initiatives ings of the firm and observed our finest professionals at work. It’s impossible to overestimate the value of that experience.”

Although there are formal mentoring programs in place at Deloitte, Quigley says it is expected to assist others whenever possible.

Since he has personally benefited from mentoring, Salzberg has returned the favor in kind. “I have had people who have helped me define my career, have helped me take stock of where I was and have assessed me objectively.” He mentors those who work directly with him and others who seek his advice on a less formal basis.

Myers is preparing to retire soon and so his time now is spent mentoring the senior leadership team at Waste Management. But he also acknowledges what he has learned.

“I feel I have learned most from all of the successful managers I have come in contact with over the years. I have learned from failures as well as from successes,” he says.

Mentoring is not only important; it also is key to the development of diverse employees, according to Beauchamp. “People need to be able express their fears, concerns and ideas in a non-threatening environment to others who have ‘seen around corners’ that they cannot yet see around.”

Mentoring is an ongoing state at Raytheon. “We’re launching a mentoring effort with Tuskegee University through which some of our female executives at Raytheon will be mentoring female engineering students at Tuskegee,” says Swanson, who believes, “There’s tremendous value in mentoring, not only for the individual being mentored, but

also for the person doing the mentoring.”

Leonard understood, from an early age, the value of hard work and that no work was “beneath” any man. “Nothing in life ever came easy to my parents but they were always grateful for work and for food on the table. As scarce as things were, I never saw my parents turn away from a person in need.”

And he was fortunate to have Al Barker, CEO of PSI Energy, recognize his future was in leading an energy company. Barker helped Leonard understand the business, not just the numbers. “He wanted me to know how real people used our product (electricity) and how difficult and dangerous it is to work with high voltage electricity, particularly during adverse weather. He was a man of uncommon wisdom and virtue.”

Diversity challenge Lindsay Owen-Jones, L’Oréal Title: Years in current position: Company headquarters: Primary business: 2003 revenues: Education: First job: Family: Interests:

Chairman and Chief Executive Officer 16 Paris, France Cosmetics $15.5 billion University of Oxford, England; Insead, France 1969 begins career with L’Oréal as a product manager Wife; one daughter Sailing, motor racing

Although this year’s CEOs are being honored for leading diversity efforts, they also acknowledge the challenges ahead. And that’s what is driving them and their decisions today.

L’Oréal “With such a continued growth in the size and complexity of diversity in the world today, our biggest challenge is to stay ahead of the expectations of all our customers and all our

Q: Beauty means different things in different cultures. How do you apply L’Oréal’s notion of beauty to such a diverse (global) market segment?

A: “Before entering any new market we spend a surprising amount of time listening and anticipating. These are key qualities to understanding the diverse needs of our customers.”

NAME: Lindsay Owen-Jones AGE: 58 TITLE: Chairman and CEO COMPANY: L’Oréal

36

Profiles in Diversity Journal September/October 2004

— Lindsay Owen-Jones, chairman and CEO, L’Oréal

The L’Oréal family of brands includes:

®

OUR COMPANY CULTURE FOSTERS AND VALUES DIVERSITY. TO A LARGE EXTENT, OUR STRENGTH IS THE DIVERSITY OF OUR TEAMS.

DIVERSE BRANDS. DIVERSE THINKING. Visit

www.lorealusa.com today to learn more.

Equal Opportunity Employer

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Q: Is MTV selling an American brand of music to the world or bringing the world’s music to Americans? Is there a balance between the two?

A: “Eight out of 10 MTV viewers reside outside the United States … each of our 96 channels is locally programmed by a staff of local employees who intimately know the tastes and culture of their audience and they alone are responsible for making the programming choices. Increasingly, their choices are for local artists and local musical styles.”

NAME: Tom Freston AGE: 57 TITLE: Co-President/Co-COO COMPANY: Viacom

employees,” says Owen-Jones.

Understanding what women and men want in different markets is L’Oréal’s expertise.

“We invest in local knowledge gathering—with the manufacturing of products done locally (more than 95 percent of all L’Oréal products are manufactured by L’Oréal employees in L’Oréal plants around the world), and with the development of international

— Tom Freston, Co-president & Co-COO, Viacom International; former CEO & chairman of MTV Networks

research centers (in France, Chicago and soon in China); local test centers; local and global trends monitoring; anticipation; and analysis.”

Owen-Jones recognizes that in order to be globally successful, a company must first be global from within, and so the company continues to recruit a diverse workforce.

“We have chosen to ensure that diversity is recognized as a key, meas-

Tom Freston, Viacom Title:

Co-President and Co-Chief Operating Officer, Viacom International—formerly, CEO and Chairman, MTV Networks Years in current position: One at Viacom; 17 at MTV Networks Company headquarters: New York, N.Y. Primary business: Viacom is a leading global media company, with preeminent positions in broadcast and cable television, radio, outdoor advertising and online.

MTV Networks owns and operates many of the most popular basic cable television programming services, including MTV: Music Television, VH1, Comedy Central, Nickelodeon, CMT, TV Land, Nick at Nite, Spike TV and MTV2.

2003 Revenue: Viacom was $26.6 billion 2003 Fortune 500 ranking: 64 Education: Bachelor’s degree from St. Michael’s College; MBA from New York University.

First job: Advertising, accounts management Family: Wife; two sons

38

Profiles in Diversity Journal September/October 2004

urable element of everything we do.

“Our entire investment in our business model is centered around the respect that we have for the diverse cultures of the world. We have never sought to impose a single model of beauty. Our goal, therefore, has been to create a diverse portfolio of brands that offer our customers a choice of brands with different cultural origins and that are adapted to meet the specific needs of different cultures.”

In 2003 L’Oréal developed the L’Oréal Institute for Ethnic Hair and Skin Research in Chicago, the first and only center in the world dedicated entirely to advancing knowledge of the unique properties and specific needs of the hair and skin of people of African descent. Within the next year, it plans to open a similar Institute based in China to better understand Asian hair and skin.

“As a company with its origins in science, we also understand the necessity and richness of diversity of gender related to the study of science. It is for this reason that we support and invest heavily in the L’Oréal UNESCO for Women in Science program, dedicated to promoting and encouraging women and the study of science around the world.”

mtv networks

where individuality resonates

Be heard. Be challenged. Be able to express .yourself in a diverse, creative atmosphere.

Š 2004 MTV Networks. All rights reserved.

mtvncareers.com

EOE/M/F/D/AAP

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MTV Networks “The biggest challenge now is to keep the momentum going,” says Freston.

“We have invested a tremendous amount of resources and time in getting diversity and inclusion to become part of the fabric of life at MTV Networks in its entirety. But as new leaders come in and others move on, we must continue to educate and ensure that everyone realizes just how crucial diversity is to our continued success.

“I lead the company’s diversity efforts and have made it a priority for all of the senior leaders.

“For the past two years we have had renowned diversity expert, Rosalyn Taylor O’Neale, on staff as our executive vice president of diversity. And, while she is leaving soon, Rosalyn has trained eight

diversity leaders on my senior management team to manage a well-organized diversity infrastructure.

“We are completely committed to creating a diverse and inclusive workplace and will spend whatever it takes to ensure that is a continuing part of working at MTV Networks.

“I think it is absolutely crucial that a communications company be a reflection of its audience and be able to authentically speak the language of its viewers.

“Creativity and our ability to create distinctive programming that connects with our audiences in deep and meaningful ways is the absolute key to our success. So, by that measure, diversity affects our bottom line in a very clear and direct way.”

Russell Corp. / NYSE: RML

Jack Ward, Russell Corp.

Title: Years in current position: Company headquarters: Primary business: 2003 revenues: Education: First job: Family: Interests:

Chairman and CEO Six Atlanta, Ga. Athletic wear and sporting goods $1.186 billion Bachelor’s degree and MBA from Cornell University Working at summer camps; after college was a sales representative for Procter & Gamble Wife; two grown daughters; one grandson Travel, tennis, reading, roller-blading

Q: Are you mentoring anyone today?

A: “One of the programs we adopted at Russell is a reverse mentoring program where I am actually mentored by someone with a very different background and, in my case, it is a single mother.”

NAME: Jack Ward AGE: 61 TITLE: Chairman and CEO

— Jack Ward, chairman and CEO, Russell Corp.

COMPANY: Russell Corp.

40

Profiles in Diversity Journal September/October 2004

“Our biggest diversity challenge today involves moving our diversity initiative to the next level,” says Ward.

“We have made excellent progress, but we know that excellent progress is not the same as excellence. We still have locations where diversity is not as fully implemented as it should be for Russell to reach its potential.

“Our Diversity Scorecard, which includes training, representation and supplier diversity, is a bonus standard for all bonus-eligible employees.

“We have a corporate Diversity Steering Team, which I chair, that includes a diverse group of senior managers who represent all major businesses. The Diversity Leadership Team (DLT) is comprised of people from all background, levels, divisions and locations within the company.

“The Diversity Steering Team sets the objectives but diversity recommendations are made by the DLT and also by the networks. The DLT, with the support of the Diversity Steering Team, develops and implements action plans for those strategies. Our Corporate Vice President of Diversity is responsible for overseeing all of these efforts along with our corporate emphasis on education, representation and minority purchasing. That position reports directly to me.

“Working with the Diversity Department and the various groups involved in the initiative, we agree on a budget each year. Currently, the department has four full-time employees.

“Our diversity efforts help us recruit and retain the best and brightest talent and create a more inclusive work environment for all of our employees. It also has developed into an effort that provides major measurable business activities, such as our partnership with 30 historically black colleges and universities in three conferences.”

Deloitte & Touche USA LLP “The challenges we face in recruiting, training and retaining our people are the same that have always exist-

CEO Initiatives

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Q: Did you always see yourself in a position of leadership?

A: “I grew up in rural Utah where being responsible and working hard were important and expected.

Leadership is something you do rather than think about or aspire toward.”

NAME: Jim Quigley AGE: 52 TITLE: CEO

— Jim Quigley, CEO, Deloitte & Touche USA LLP

COMPANY: Deloitte & Touche USA LLP

Jim Quigley, Deloitte & Touche USA LLP Title: Years in current position: Company headquarters: Primary business: 2003 revenues: Education: First job: Family: Interests:

CEO 15 months New York, N.Y. Professional services firm $6.5 billion Bachelor’s degree from Utah State University Haskins & Sells Wife; three children; eight grandchildren Boy Scouts of America, American Institute of Certified Public Accountants, the NYC2012 Olympic Committee and Junior Achievement of New York City

ed—we want the best people, and the best people are always in demand,” says Quigley. “To attract and retain the best talent, we strive to benefit from and provide opportunities for diversity

throughout all levels of management.

“Barry Salzberg and I champion our Diversity & Inclusion and our Women's Initiatives. We also lead an external Diversity & Inclusion Advisory Board

Q: Who are your mentors?

A: “My wife has great insight into people and the business and is a tremendous help to me.

As long as I’ve known her, she has never been afraid to voice her opinion, tell me I’m wrong or convince me that I could do something better.”

NAME: Barry Salzberg AGE: 51 TITLE: Managing Partner COMPANY: Deloitte & Touche USA LLP

42

— Barry Salzberg, U.S. managing partner, Deloitte & Touche USA LLP

Profiles in Diversity Journal September/October 2004

and an external Council on the Advancement of Women.

“Considerable resources are dedicated to ensuring that our Diversity & Inclusion Initiative moves forward. Our most significant investment is the time and energy we devote to demonstrate our commitment, share our passion and encourage others. Barry and I regularly visit offices and give talks around the country and within the firm to emphasize the importance of diversity and inclusion.”

“I think one of diversity’s biggest challenges is getting companies to understand the importance of diversity on their bottom line and that succeeding in the marketplace requires companies to support a diverse work culture,” says Salzberg. “Deloitte’s commitment to diversity, both in the firm and on our engagement teams, is actually a big factor in our ability to win clients in the marketplace. Clearly, clients want to work with a team that reflects the make-up of their own organizations.

“Other challenges include language and environment, which can create obstacles when global organizations, such as ours, work across borders.

For example, we have member firms in 140 countries, often working together on different aspects of engagements with multinational clients. We have also opened offices of the U.S. firm in India; a move that we believe will improve our efficiency and profitability. The challenges that language and environment may create can be overcome through thoughtful action and visible commitment.

“I believe that our accomplishments are much more important than our expenditures. In 1998, 12.4 percent of our managers were people of color; by 2003 that percentage had grown to 22.3 percent.

“The turnover gap for people of color has dropped from 4.4 percent in 1998 to a negative 0.7 percent in 2004.

“In 1998, people of color represented

Different perspectives.

Diverse minds create solutions.

At Deloitte & Touche USA LLP, diversity isn’t just a philosophy – it’s how we do things. It’s incorporating ideas from our people with different backgrounds, experiences, and skills. It’s giving our clients a 360º perspective on complex business issues they face, from assurance and tax to financial advisory and consulting. Our teamwork invariably produces the best results and helps us build strong, enduring relationships with our clients – who appreciate our multidisciplinary, multidimensional approach to their business issues.

To learn more about Deloitte & Touche USA LLP, visit us at www.deloitte.com/us.

www.deloitte.com/us About Deloitte Deloitte, one of the nation’s leading professional services firms, provides audit, tax, consulting, and financial advisory services through nearly 30,000 people in more than 80 U.S. cities. Known as an employer of choice for innovative human resources programs, the firm is dedicated to helping its clients and its people excel. “Deloitte” refers to the associated partnerships of Deloitte & Touche USA LLP (Deloitte & Touche LLP and Deloitte Consulting LLP) and subsidiaries. Deloitte is the U.S. member firm of Deloitte Touche Tohmatsu. For more information, please visit Deloitte’s Web site at www.deloitte.com/us.

Deloitte Touche Tohmatsu is an organization of member firms devoted to excellence in providing professional services and advice. We are focused on client service through a global strategy executed locally in nearly 150 countries. With access to the deep intellectual capital of 120,000 people worldwide, our member firms, including their affiliates, deliver services in four professional areas: audit, tax, consulting, and financial advisory services. Our member firms serve more than one-half of the world’s largest companies, as well as large national enterprises, public institutions, locally important clients, and successful, fast-growing global growth companies.

Deloitte Touche Tohmatsu is a Swiss Verein (association), and, as such, neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other’s acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names “Deloitte,” “Deloitte & Touche,” “Deloitte Touche Tohmatsu,” or other, related names. The services described herein are provided by the member firms and not by the Deloitte Touche Tohmatsu Verein. For regulatory and other reasons, certain member firms do not provide services in all four professional areas listed above.

Member of Deloitte Touche Tohmatsu Copyright © 2004 Deloitte Development LLC. All rights reserved.

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Barry Salzberg, Deloitte & Touche USA LLP Title: Years in current position: Company headquarters: Primary business: 2003 revenues: Education:

First job (full time): Family:

Managing Partner 15 months New York, N.Y. Professional services firm $6.5 billion Bachelor’s degree from Brooklyn College; Juris Doctor from Brooklyn Law School; LLM in taxation from the New York University School of Law Haskins & Sells (part-time: NYC Board of Education) Wife; two sons

A. Maurice Myers, Waste Management Title: Years in current position: Company headquarters: Primary business: Fortune 500 Ranking: 2003 revenues: Education: First job: Family: Interests:

Chairman Five years on Nov. 10, 2004 Houston, Texas Environmental services 170 $11.6 billion Bachelor’s degree from California State University at Fullerton and MBA from Long Beach State University Began career with Ford Motor Co. in its financial management-training program Wife; three married daughters; seven grandchildren Golf, fly fishing, being outdoors

4.7 percent of our partners; that number rose to 5.1 percent in 2003. For women over that same period, that number rose from 10.4 percent to 17 percent.”

Waste Management / NYSE: WMI “To understand our challenges, we must look at the history of our company and understand that four years ago, we were tasked with turning the company around. At that time, we were focused on putting IT systems and business processes in place. Now that we’ve accomplished those goals, we can start to focus on enabling other key business practices such as diversity.

“One of our recent assessments shows that we need to make a particular effort to build diversity in nontraditional jobs—specifically in driver, mechanic and heavy equipment jobs.

We’ve also noted that there is plenty of diversity on our front line, but not as much in senior management. One of our challenges is to communicate the business need for diversity throughout the organization.

“On supplier diversity, we are committed to a three-year strategy to achieve a Tier 1 supplier diversity spend of 10 percent. We expect to be

Q: What qualities do you seek in leaders?

A: “Intelligence, the ability to clearly communicate, a record of success in all facets of life, a high level of energy and unquestioned integrity.”

NAME: A. Maurice Myers AGE: 64 TITLE: Chairman Chairmann COMPANY: Waste Management

44

Profiles in Diversity Journal September/October 2004

— A. Maurice Myers, chairman Waste Management

Diversity.

It’s what drives us.

From the cadres of minority designers, engineers, and office staff to the men and women on the factory floor and our network of minority owned dealers, we're dedicated to creating the best cars and trucks possible. In fact, this dedication to work ethic, smarts, and quality is inherent in every vehicle we produce. It's what makes us the proud American brands of DaimlerChrysler Corporation.

Chr ysler, Jeep, and Dodge ar e r egister ed trademarks of Daimle rChr ysler Corporatio n.

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CEO Initiatives

Q: What is your definition of leadership?

A: “I believe there are four qualities to leadership— confidence, dedication, integrity and love. Love from the standpoint that true leaders have self-sacrifice.”

NAME: William H. Swanson AGE: 55 TITLE: Chairman and CEO

— William H. Swanson, chairman and CEO, Raytheon

COMPANY: Raytheon

William Swanson, Raytheon Title: Years in current position: Company headquarters: Primary business: 2003 revenues: Education: First job: Family: Interests:

Chairman and CEO One Waltham, Mass.

Defense $18 billion Bachelor’s degree from California Polytechnic State University Engineer Wife Golf, cooking, wine, reading, education

at 4.5 percent by the end of 2004, 6.5 percent in 2005 and 10 percent in 2006. In addition, we hired a Director of Supplier Diversity to help promote our strategy, internally and externally.

“I believe our most important goal is to raise the level of importance of diversity and inclusion so it is part of every manager’s daily job as opposed to looking at diversity and inclusion as an initiative or project.

“Our chief diversity officer, Carlton Yearwood, is part of our senior team and participates in making major decisions for the company. He keeps diversity and inclusion ‘top of mind’, every day and in everything we do.

“Senior executives throughout Waste Management are assigned specific goals regarding diversity and inclusion in their own operations. Part of their annual incentive bonus is dependent on meeting those goals.

46

“We approach diversity and inclusion as a value proposition. This approach leads to clear and unqualified understanding about the positive contributions a diverse workforce delivers. It also highlights the value any individual can provide our customers, shareholders and employees. Diversity must be an active player in a company’s

business strategy. Diversity also must define how it can help grow a company’s revenues and increase profit margins.

“A successful diversity and inclusion program means happier, more productive employees. It also means more business with suppliers and customers who share our diversity and inclusion values. These are all positives for the bottom line.”

Raytheon / NYSE: RTN “For our organization, the greatest challenge is helping people understand that diversity goes beyond race and gender and sexual orientation and all of the diversity traits that first come to mind. We talk about diversity in the context of diversity of thought. Our goal is to create an inclusive culture that engages every stakeholder in our mission of customer success. I’ll know we’ve truly achieved our diversity goals when the opinions of individuals on the shop floor up through my office are equally valued.

“We face the same challenges as any highly competitive company in recruiting the best and the brightest, but we’re working hard at that. One of the things that, perhaps, is more unique to the defense industry in that regard is that we’re restricted from recruiting foreign nationals due to ‘classification’ requirements on many of our contracts and so our candidate pool is more limited.

Anne Mulcahy, Xerox Corp.

Title: Years in current position: Company headquarters: Primary business: Fortune 500 Ranking: 2003 revenue: Education: First job: Family: Interests:

Profiles in Diversity Journal September/October 2004

Chairman and CEO, Xerox Corp.

Chairman and CEO since January 2002; CEO since August 2001 Stamford, Conn.

Document technologies, products and services 130 $15.7 billion Bachelor’s degree from Marymount College in Tarrytown, N.Y. Xerox sales representative Husband; two sons Spending time with family

CEO Initiatives

Q: What resources (financial and manpower) are spent on diversity?

A: “The Diversity Department consists of six full-time employees. Two are dedicated to supplier diversity, two are responsible for workforce diversity and for experienced diverse recruiting. There is one administrator and also a vice president of diversity and staffing. We have a supplier diversity commitment of $225 million. This year’s budget is just over $1.4 million.”

NAME: Stephen W. Sanger AGE: 58 TITLE: Chairman and CEO

— Stephen W. Sanger, chairman and CEO, General Mills

COMPANY: General Mills

“Our structure includes a director of global diversity who reports to the senior vice president of human resources, who reports to me. This is a position that used to be rotational, but is now permanent. We also have a Diversity Champion who chairs our Executive Diversity Council and works in partnership with the Diversity Director. Our Diversity Champion is a senior leader of my team. It’s a rotational assignment, providing my Leadership Team members with the opportunity to be well-steeped in this area.

“We have a robust diversity infrastructure including our Executive Diversity Council (EDC), our Human Resources Diversity Council (HRDC) and Employee Resource Groups.

There’s tremendous dialogue about

Stephen W. Sanger, General Mills Title: Years in current position: Company headquarters: Primary business: Fortune 500 Ranking: 2003 revenues: Education: First job:

Chairman and CEO Nine Golden Valley, Minn.

Food Manufacturing 186 FY2004 $12.3 billion Bachelor's degree from DePauw University; MBA from the University of Michigan Marketing and sales positions with Procter & Gamble

diversity and decisions are made collaboratively across the organization.

resources to our Employee Resource Groups and we do diversity advertising

“We provide financial support to a number of major conferences and we spend a significant amount of money on supplier diversity. We provide financial

to attract talent to our organization.”

General Mills / NYSE: GIS “Decisions regarding corporate diversity are ultimately made by myself, Mike Peel, senior vice presiQ: What do you see is the value in dent, human resources and Lisa mentoring?

Novotny, vice president, diversity and staffing, with input from A: “As a female executive, I understand the the Diversity Department and need to serve as a role model for other any of a variety of internal diverwomen to achieve their highest potential. sity related groups,” says I’ll know that women have really made it in Sanger. “These groups include the business world when the appointment of our Employee Networks and a female CEO makes headlines not forums as well as ad hoc teams, because of her gender but because of such as the Diversity Scorecard her accomplishments as a team, tasked with addressing successful leader.” diversity opportunities.”

— Anne Mulcahy, NAME: Anne Mulcahy AGE: 52 chairman and CEO, TITLE: Chairman and CEO Xerox Corp. / NYSE: XRX Xerox Corp.

COMPANY: Xerox

Profiles in Diversity Journal September/October 2004

47

HONOREES

CEO Initiatives J. Wayne Leonard, Entergy Title: Years in current position: Company headquarters: Primary business: Fortune 500 Ranking: 2003 revenues: Education: Family: Interests:

Chief Executive Officer Six New Orleans, La. Utility 217 $9.1 billion Bachelor’s degree from Ball State University; MBA from Indiana University Wife; three daughters Running

“One of the things that I think sets us apart is Xerox’s longtime focus on diversity and inclusion, dating back to the mid-1960s, and the fact that our commitment has been so consistent over time,” says Mulcahy. “It’s not a short-term program but a long-term way of life at Xerox. ”I focus more on how we can effectively work together and get things done rather than on where lines happen to fall on an organization chart.

“This company’s commitment

to supporting a diverse, inclusive work environment, in the broadest of ways, is clear and extends well beyond my office and direct reports into every aspect of Xerox operations.

“Our Executive Diversity Council is chaired by our chief staff officer, Hector Motroni, who does report directly to me, as do several members of the Council. ”This issue is not about numbers as much as about role-modeling leadership behaviors and communicating clearly and frequently what is expected within Team Xerox. Elements of diversity are built into so many aspects of

Q: What are your biggest diversity challenges today and why?

A: “Our biggest diversity challenge is knocking down the barriers to upward mobility in the organization. We hire good people, but too many still get hired away before they reached their potential because others have identified them and are offering better opportunities sooner, or we have segments of the organization that have not fully embraced the ‘spirit’ of diversity.”

— J. Wayne Leonard, chairman and CEO, Entergy NAME: J. Wayne Leonard AGE: 53 TITLE: CEO COMPANY: Entergy

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Profiles in Diversity Journal September/October 2004

Xerox: from leadership development, to recruiting, to supplier/vendor relationships, to community outreach and philanthropy efforts. ”The business benefits of diversity are obvious. People with different backgrounds and experiences bring different skills and ideas to solve problems, are better able to address the needs of customers in a global, competitive business environment, and make the workplace more inclusive and adaptive. I believe the energy and creativity of our people give us a competitive advantage.”

Entergy / NYSE: ETR “Our biggest diversity challenge is knocking down the barriers to upward mobility in the organization.

“The Office of the Chief Executive (OCE) is responsible for setting the overall direction for Entergy’s Diversity and Inclusion Initiatives.

“The chief diversity officer, Robert Spencer, reports to the Senior Vice President of Human Resources and Administration who is also a member of the OCE. “The OCE creates diversity action plans, sets goals and provides leadership for the entire organization. Through interaction with the chief diversity officer, we keep abreast of trends and develop strategies to accomplish Entergy’s Diversity Vision.

“Each business unit and major employment center has a diversity council; the chairs of these councils come together and comprise the Inclusion Steering Committee.

“There are three full-time staff resources dedicated to diversity: two exempt and one non-exempt. The inclusion budget is about $500,000. In addition, we are currently having all 15,000 employees in our company attend diversity training. When completed, this training will have been an expense in excess of $2 million.

“Our definition of diversity and inclusion makes it easier to understand how the program impacts the

Responsibility

POWER Our responsibility as a Fortune 500 company and one of America's largest electric utilities is more than providing power. It's using our energy and leadership to cultivate the strength of an inclusive work environment. To provide opportunity and maximize the potential inherent in a world of diversity. To do everything in our power to make life better.

Entergy’s employees salute this year's recipients of the CEO Leadership Award. Your commitment. Your vision.

Your leadership.

1-800-ENTERGY (368-3749) • ©2004 Entergy Corporation

www.entergy.com

CEO Initiatives bottom line. We believe that employees cannot be expected to face the challenges, take the risks or endure the long road unless they are supported, valued and appreciated as unique human beings with individual differences. Supporting employees positions them for success; and when the individuals are successful the company is successful. That success is reflected in the bottom line.”

Leveraging diversity to improve the bottomline is what makes these leaders tops in 2004.

NAME: Bob Beauchamp AGE: 44 TITLE: President and CEO COMPANY: BMC Software

Q: What is a great leader to you?

A: “Great leaders are people you trust. Great leaders have vision. I believe great leaders lead from the front.

People need to see the person driving the vision. Leaders must be able to attract highquality talent. While someone may be a good individual performer, he or she must be able to build a strong team in order to lead. Great people won’t work for poor leaders for long.”

— Bob Beauchamp, president and CEO, BMC Software Inc.

BMC Software / NYSE: BMC “One of the biggest—if not the biggest—challenges every company faces is managing change. Companies today are either going to be able to transform themselves continually or they will be left behind. Implementing diversity is a change in process and a change in culture. And change is hard.

“Every business would agree that its employees are the foundation of its success, but when you’re in the software business, you really depend on your intellectual capital. BMC doesn’t have natural resources or reserves in the ground. We don’t have manufacturing plants around the world; all we have are people’s ideas. We must be able to take these ideas and turn them into software and get that into the hands of tens of thousands of customers around the world,”

PDJ

Bob Beauchamp, BMC Software Inc. Title: Years in current position: Company headquarters: Primary business: Fiscal 2004 Revenues: Education:

First job: Family:

50

says Beauchamp.

“The challenge for BMC is to consistently attract, retain and develop the best talent in the software industry. To do this, you must prove to current and potential employees that everyone has the opportunity to contribute, to grow and to reach their potential. You must encourage all voices to be heard and give all employees the opportunity to be all that they can be. Our business is global and our talent must reflect the diversity of our customers so that we can better understand the nature of their businesses.

“We’ve made progress in a number of areas and have a very diverse employee base. When I assumed my current role, our board was comprised of white males. We’ve diversified the board to bring a range of experience with fresh perspectives and new ideas.

“In fiscal year 2004, 19.8 percent of our discretionary spend went to diverse suppliers, including minority- or women-owned businesses. We’re beginning fiscal year 2005 on a pace to increase this spend to 22.3 percent.

Currently we’re focusing our efforts on developing diverse sources for professional services, such as financial and legal.

“We have a diversity office that reports to the senior vice president of administration. Four global action teams are working on key areas: mentoring, work life balance, advancing

Profiles in Diversity Journal September/October 2004

President and CEO Three Houston, Texas Enterprise management $1.4 billion Bachelor’s degree in finance from University of Texas-Austin; master’s degree in management from Houston Baptist University Sales representative Wife; four sons

16125 Diversity Journal ad.qxd

9/9/04

5:33 PM

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Charging Employees to Creatively Tackle Diversity.

Just as we employ diversity of thought to solve our customer’s challenges, we also wanted to nurture and drive diversity in our workforce. So, we challenged our employees to help craft a powerful, comprehensive diversity program called Diversity @ BMC. The program convened multiple “Diversity Action Teams,”—comprised of a broad cross-section of our employees—to address critical diversity issues. The teams were charged with implementing changes by completing and executing short-term, results-oriented projects. By making the drive toward diversity inclusive, the process itself is part of the solution.

And, to be sure, the business case for nurturing diversity is a strong one because diverse companies consistently develop greater intellectual capital and are better positioned to meet the needs of today’s marketplace.

BMC Software is an Equal Opportunity Employer. BMC Software, the BMC Software logos, and all other BMC Software product or service names are registered trademarks or trademarks of BMC Software, Inc. All other trademarks belong to their respective companies. © 2004 BMC Software, Inc. All rights reserved.

Catalyst

Research

Building a flexible workplace.

In today's business world,

workplace flexibility is a powerful tool for maximizing individual and organizational effectiveness.

By Catalyst

T

here has been a great deal of talk lately about how the changes and demands of today’s workplace are affecting employees’ lives. Adapting to these changes and demands—as well as to company growth goals— requires employees to work smarter, improving their work practices to be more effective and productive.

Employees are striving for improved quality and effectiveness, both in their work and their personal lives.

When employees achieve these goals, their employers benefit as well.

Why employees use flexibility

A number of recent changes affecting the corporate world have increased the need for workplace flexibility and helped move flexibility to the forefront of organizations’ agendas. First of all, technological tools—such as e-mail and voicemail—make it possible for employees to work anytime and anywhere, but at the same time, diminishing boundaries between work and personal time often lead to overwork.

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Profiles in Diversity Journal September/October 2004

Catalyst

Globalization and the resulting shift toward operating across geographic and time boundaries have increased work hours and business travel for many employees. In order to increase productivity without increasing headcount, employees have also expanded their work hours and are taking less vacation in order to respond to increasing demands.

Demographic shifts—such as the influx of women into the workplace and the dramatic increase in dual-career couples in the workplace—have changed the profile of the typical employee and his or her work/life needs. In the midst of all of these trends, the new generation of employees comes to work with different expectations about what work means to them, the role it plays in their lives and how work is defined.

Flexibility is used by many employees—men and women alike—for a wide variety of work and personal reasons, such as: • To have uninterrupted time to complete certain tasks and to accommodate urgent work requests • To be available to colleagues and clients in other time zones • To address life interests and needs put aside during periods of heavy workload • To avoid long commutes • To care for children or sick family members • To exercise, engage in hobbies and community activities • To transition from full-time work to retirement • To pursue additional education or certifications

The benefits of workplace flexibility Flexibility is a powerful—and often underused—tool for becoming an employer of choice and increasing work productivity and effectiveness. Offering flexibility allows companies to recruit the best talent and retain experienced and valuable employees. It also helps to boost employee satisfaction, engagement and morale.

A flexible work environment can be the difference between employees that feel energized, committed and ready to go to bat for you and those that feel burned out, unsupported and ready to walk out the door the first chance they get. In addition, flexibility simplifies work processes and focuses on output. In doing so, it encourages employees, managers and work groups to work more creatively and effectively.

Flexibility shines the spotlight on leadership capabilities such as crystallizing and communicating priorities, setting the stage for thoughtfully executing plans, encouraging teamwork and coordination, and harnessing employee talents to drive results.

Research

The business case for flexibility The best place to start in incorporating flexibility into your workplace is to think specifically about your organization’s goals and difficulties, and to understand how flexibility can address them. Identify the compelling reasons for using flexibility to help employees—as well as your organization as a whole—be more effective.

Historically, flexibility has been treated as an accommodation created in response to an individual’s needs. But Catalyst finds that when businesses approach flexibility proactively, they can design flexible arrangements that suit the needs of both the individual and the business. Below are some questions that can guide managers in thinking about flexibility as a business tool.

• How, when and where does work currently get done?

In what ways is this system effective? In what ways could it be improved?

• What do employees get rewarded for in the organization?

• Do you have flexibility policies on the books that are unused? If so, why? Are employees penalized?

• Who do you consider to be the most talented employees? Who are the most effective employees?

Are they the same? Why or why not?

• Why do valuable employees leave the organization?

Why do they stay?

• In what ways could work be structured differently for the benefit of both employees and the organization?

• Do employees have a forum for sharing their ideas, and are they encouraged to do so?

“When businesses approach flexibility proactively, they can design flexible arrangements that suit the needs of both the individual and the business.”

Profiles in Diversity Journal September/October 2004

53

Catalyst

Research

How managers create and support flexible work cultures Clearly, workplace flexibility is more than a change in schedule. It is a way of thinking and working that seeks to help employees make their best contributions and simultaneously manage their personal lives. Companies that understand the business rationale, engage their employees in identifying innovative solutions, and create tools for managers and individuals will excel in this time of great change. The following tips are suggestions for helping managers create and support the most effective kind of flexibility.

• Learn about your company’s flexibility policies, programs and resources, and disseminate information to educate your employees about what is available.

• Develop strong and consistent messaging about flexibility as a work-effectiveness tool, communicating your organization’s support for flexibility.

• Initiate open, honest discussions about workplace flexibility and effectiveness with your team and empower your employees to suggest alternative ways of working to better address work/life needs.

• Evaluate management practices and challenge unspoken norms that reward “face-time” over results.

• Adapt organizational systems to ensure that performance is measured based on outcomes, not hours.

• Provide adequate organizational supports for managers and employees to work and manage more flexibly.

• Become a champion for working more flexibly and effectively. Demonstrate your commitment to improving work/life quality by role modeling smart ways to work.

Flexibility is about being creative and staying focused on what’s important. Organizations now have the challenge— and the opportunity—to use flexibility as a means to improve outmoded work practices.

With offices in New York, San Jose, and Toronto, Catalyst is the leading research and advisory organization working with businesses and the professions to build inclusive environments and expand opportunities for women at work. For more information about Catalyst’s research, products, and services focusing on workplace flexibility, visit www.catalystwomen.org to see our newly launched website. You may also sign up to receive Catalyst’s issue-specific newsletter, Perspective, and monthly e-mail updates at news@catalystwomen.org.

PDJ

54

Profiles in Diversity Journal September/October 2004

“Flexibility shines the spotlight on leadership capabilities such as crystallizing AND communicating priorities…and harnessing employee talents to drive results.”

Feature

BMO

BMO’s People Strategy: FORGING THE LINK BETWEEN DIVERSITY AND BUSINESS OBJECTIVES

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Profiles in Diversity Journal September/October 2004

Feature

BMO Financial

F

orging the link between strategy and people steers BMO Financial Group’s Human Resources’ mandate. This means that its people strategies must clearly result in outcomes, which enable BMO to successfully execute customer-focused business strategies.

BMO’s people strategies focus on the importance of talented, engaged and high-performing employees. Developing an equitable and supportive workplace, which reflects the diversity of the communities in which BMO lives and does business, is an objective that is explicitly aligned with strategic initiatives from the top.

The commitment to becoming a leader in establishing and sustaining a diverse workforce and an equitable, supportive workplace was first articulated in 1989’s Corporate Strategic Plan. In 1992, BMO initiated a Task Force on Employment of People with Disabilities to clearly identify the barriers facing employees with disabilities. The report led to innovative action plans, which continue to provide direction and focus to BMO’s efforts in creating an equitable and supportive workplace.

Despite its progress, BMO carefully monitors its success on a regular basis. “Our commitment to create a diverse workforce and equitable, supportive workplace is part of the fabric of our organization,” says Rose Patten, executive vice-president human resources and head, Office of Strategic Management.

“Basically, we’re trying to be a leader in creating a new corporate landscape—a landscape that is equitable and accommodating to persons with disabilities so that BMO can attract and retain top talent, at every opportunity,” says Patten. “We insist on respect for everyone and encourage all to have a voice.”

BMO has taken a number of steps to ensure success.

In 1992, it appointed a vice-president of equity and employee engagement to lead all of BMO’s workplace equity initiatives and established direct reporting relationships between this executive and BMO’s most senior management group.

The CEO’s Council on an Equitable Workplace was established to support ongoing equity activities both within BMO and the communities in which it does business. Diversity Councils (employees organized by line of business) and Affinity Groups (employees organized by issue, i.e., blind and visually impaired, people with physical disabilities, and deaf, deafened and hard of hearing) were created to raise awareness, foster dialogue and model inclusive behavior.

Working in partnership with BMO’s leadership, these groups are fundamental to creating a fully inclusive environment.

Profiles in Diversity Journal September/October 2004

57

Feature

BMO Financial

Recruitment of top talent A goal identified by the 1992 Task Force was to increase the number of qualified job applicants among people with dis- abilities. In order to recruit talented employees, BMO engages in specific outreach and recruitment activities to attract applicants with disabilities, working in partnership with community agencies such as the National Educational Association of Disabled Students, Canadian National Institute for the Blind, the Canadian Council on Rehabilitation and Work and the Canadian Hearing Society.

In addition, BMO participates in job fairs and campus recruitment, also sponsoring and supporting many organizations and events.

In 2001, BMO was the Gold sponsor of the international conference “Inclusion by Design,” which was a first for a Canadian company. The movement is based on the concept that all products, environments and communications should be designed to accommodate the greatest possible number of users.

In 2003, BMO was an official corporate sponsor of the Abilities Fair, hosted

by Future Abilities and Creative Employment.

Other sponsorships include Chicago’s annual Employment Fair for People with Disabilities, Terry Fox Hall of Fame, People in Motion and the Great Valentine Gala.

Workplace accessibility Another major goal identified by the Task Force was workplace accessibility.

The report recommended that BMO provide workplace modifications, alternative

58

Profiles in Diversity Journal September/October 2004

work tools and individual assistance, which would enable people with disabilities to compete and contribute equitably and effectively to the business. Since 1992, BMO has made significant progress in workplace accessibility.

A Reasonable Accommodation Policy governs BMO’s activities to provide accommodation to enable employees and applicants to contribute fully to their success. Employees/applicants work collaboratively with the Office of Diversity and Workplace Equity to identify any accommodation required.

BMO’s dedication to workplace accessibility is reinforced by leading-edge standards, “Beyond the Code,” which guide BMO’s nationwide efforts to accommodate customers and employees with physical disabilities in corporate and retail premises. BMO is also working toward the development of “talking” Automatic Banking Machines (ABMs) to facilitate the ease with which these machines are used. It is in the process of upgrading and replacing its current ABMs to make them audio-ready.

To ensure BMO’s workplace is technically inclusive, BMO established an Adaptive Technology Services (ATS) team. ATS’ mandate is to create a technically inclusive, barrier-free environment by establishing standards and processes and implementing systemic technical solutions. This innovative team was awarded Profiles in Diversity Journal’s first place in the first-ever International Innovation in Diversity Awards this year.

At the very heart of BMO’s ongoing initiative to build a fully inclusive and supportive workplace and diverse workforce is an unwavering commitment to improve the status of designated group members. It is this determination that energizes the company, allowing it to reap the benefits of an engaged and diverse workforce—and it’s called leading by example.

If you are interested in pursuing a position with BMO Financial Group, PDJ

www.xerox.com/careers

Xerox Corporation, Mailstop 205-99E, 800 Phillips Road, Webster, NY 14580, Attn: Corporate Recruiting Drawing on the diversity of a global workforce and offering an equal opportunity to achieve success. EOE M/F/D/V Copyright © 2004 Xerox Corporation. All Rights Reserved. XEROX®, The Document Company®, the stylized X®and eXpress yourselfTM are trademarks of the XEROX CORPORATION.

Individually we’re different. Collectively we’re great.

At Xerox, we employ people of every race, creed, gender and nationality. Why? Because we believe that individualism creates unity and breeds success. Just ask any of our 30% African-American, Latino, Asian and Native American employees and they’ll tell you that our differences challenge us and free us from convention. Ready to join professionals who are individually great and as a group unstoppable? Then you’re ready for a career at Xerox.

www.xerox.com/careers

Sales / Marketing

Hispanic Markets

Reaching the Hispanic market If you’re not actively targeting this population, you could be losing big business

A

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Profiles in Diversity Journal September/October 2004

ccording to 2000 U.S. Census figures, there are more than 35 million Hispanics in the United States, an increase of 58 percent since the 1990 census, representing 40 percent of the total population growth from 1990 to 2000.

And that makes Hispanics the largest minority segment in the country.

There’s plenty of research identifying their consumer characteristics, buying power and cultural values. So that begs the question: Why wouldn’t you try to reach this market?

The answer, according to Annette Taddeo, president and CEO of Miami-based Language Speak, is largely a lack of understanding and education on the part of businesses.

“This bubble is growing so strongly, but it was only through the 2000 census that the size and power of this group became known,” she says. Four years later, many companies still haven’t digested the wealth of data that exists.

“It is sad to say that advertisers dedicate less than 5 percent of budgets to reaching this market,” she says, adding that’s a huge lost opportunity. Consider that Language Speak, which provides translation services across a spectrum of industries, has grown more than 200 percent the last three years.

Hispanics represent $6 billion in purchasing power and 75 percent of that demographic prefer to receive information in Spanish. That’s where marketing efforts can run into trouble.

“Neutrality of the language is extremely important,” says Taddeo. “That’s the biggest misconception. There are 20 different countries represented in the U.S. Hispanic market. The largest majority is Mexican, so many people opt to market using Mexican Spanish. But if you do that, you are potentially alienating the remaining 19 cultures.

Compare that to how news anchors sound on air. You don’t hear a specific New York or Boston accent. You hear a neutral accent. That’s what you need to portray when trying to reach Spanish-speaking people—neutrality.”

A DIVERSITY OF GREAT TECHNOLOGY AND SOLUTIONS STARTS WITH A DIVERSITY OF GREAT PEOPLE.

At Raytheon, an inclusive culture is one of the things we believe gives us a competitive advantage. By recognizing the uniqueness of individuals, empowering employees, and truly valuing their input, our company consistently performs beyond all expectations. It’s a philosophy we’ll always embrace. It’s right for people, and it’s right for business. To learn more about opportunities with Raytheon, visit www.rayjobs.com

We’re proud to feature Raytheon employees in our ads. To join them in a rewarding career, visit

www.rayjobs.com © 2004 Raytheon Company. All rights reserved. Raytheon is an equal opportunity, affirmative action employer and welcomes a wide diversity of applicants. U.S. citizenship and security clearance may be required.

Sales / Marketing

Hispanic Markets

“Think about it,” says Taddeo; “whoever gets there first Consumer characteristics By and large, most U.S. Hispanic households are younger is going to get that loyal business.” and larger than non-Hispanic households, with a median Reaching Hispanics where they are age of 27.6 versus 37.2. And while the average U.S. nonSpanish is spoken in 89 percent of U.S. Hispanic Hispanic household has 2.5 children, the average U.S. Hispanic household has 3.4, according to Nielsen 2002 households, according to census figures. Of those households, 75 percent prefer to receive communication in Spanish.

Universe Estimates.

“Data shows that communication is more successful Hispanics are active in their community, socially oriented, prefer to travel and participate in activities in groups and are when it is presented in Spanish,” says Taddeo. The family oriented. Religion is a big part of their lives and they problem with that is that you can’t always translate literally.

“Sometimes there is no way to get the literal translation tend to maintain a strong connection to their Hispanic herof a product or service, so it’s essential to understand what itage, embracing their culture through language, food, the company is trying to portray and then say it in a music and celebrations. different way that still retains the meaning,” Education is a priority for Hispanic famishe says. lies and they tend to be hard working and Spanish-language For example: a financial services firm was entrepreneurial. While non-Hispanics tend marketing is 61 crafting a direct mail piece promoting its to be more individualistic, Hispanics percent more effective retirement services. Taddeo says that the embrace collectivism. The family comes at increasing Spanish synonym for retirement is retido. first and group or family satisfaction ranks awareness; 57 “This is acceptable, but Hispanics see above all else. They are conformist in percent more ‘retirement’ as a negative thing. The better nature and tend to honor traditions and effective in message word is ‘jubilacion,’ which is a celebration of respect authority. comprehension; and the fruits of your labor and more closely Hispanic women are still the primary four-and-a-half times aligned with the American meaning of caregivers, but increasingly they also are more persuasive than retirement. If you’re selling retirement taking on responsibilities outside the home.

English-language funding, it’s important to understand how In fact, careers are now seen by Hispanics marketing. this one word can convey something as a viable option for women. completely different.”

Research from Roslow Research Group shows that Purchasing power Hispanics are interested in looking good and projecting among Hispanics, Spanish-language marketing is 61 percent status and those attitudes play into their buying decisions. more effective at increasing awareness; 57 percent more The purchasing power of this demographic is projected to effective in message comprehension; and four-and-a-half grow four times that of the rest of the population, from 51 times more persuasive than English-language marketing.

Marketers also should consider online marketing, since percent in 2005 to 126 percent in 2010, with even more dramatic increases in major markets such as Miami, Los Hispanics are among the fastest-growing group of Internet users. Computer ownership among Hispanics grew 153 perAngeles and Houston.

Hispanics are extremely cent from 1997-2001, while computer ownership among loyal to brands. In fact, non-Hispanics grew 100 percent during the same period.

Although they tend to be a little hesitant about buying they are interested in online, research from AOL has found that a significant porbuying the best and brand loyalty is a reflec- tion of Hispanic online consumers find online advertising tion of their desire to informative (41 percent) versus U.S. online consumers achieve status and look (24 percent).

Of those surveyed, more than half (53 percent) good—60 percent of Hispanics state: “I’m of Hispanic online consumers who have ever made willing to spend more to a purchase online report that they have recommended a get the best,” according specific shopping Web site to a friend or family member.

The U.S. Hispanic market is largely underserved by to research. marketing efforts, but a little research and smart marketing Annette Taddeo, could make this demographic a loyal and growing customer President and CEO, base for years to come.

Language Speak

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www.pillsbury.com

www.bettycrocker.com

www.cheerios.com

www.yoplait.com

We know what’s important in your life.

When you’re shopping for the most important people in your life, you want brands you can trust.

www.boxtops4education.com

www.greengiant.com

That’s where we come in.

www.generalmills.com

Global Perspectives

New research shows workforce productivity gains are

e x a g g e r at e d

L

Study shows companies are underperforming and lack knowledge of workforce skills

arge corporations are not effectively using their workforces, and they are losing revenue and market share potential as a result. That’s according to the results of a new study announced in late September by Convergys Corp.

(NYSE: CVG) and conducted by Saratoga/ PricewaterhouseCoopers LLP, in conjunction with the University of Michigan Business School.

Even though the U.S. Labor Department reports that the productivity of American workers rose at an annual rate of 2.9 percent last spring, 84 percent of executives surveyed admitted they were unable to take advantage of their workforce’s full potential, and half of all HR executives acknowledged they did not have enough information about their workforce to remain competitive in their industry.

For the 2004 Convergys survey, more than 300 senior executives in HR, finance and operations at U.S. and European companies with revenues of greater than $1 billion were interviewed, both in person and via telephone, in March and again in August. In-person interviews were all conducted with Fortune “Most Admired” companies.

The results show that 65 percent of corporate executives surveyed said they face an increased demand for a flexible workforce to remain competitive in today’s global market. Despite

64

this awareness, the Convergys research showed that companies have trouble retaining key talent, don’t have systems in place to identify skilled employees and aren’t providing more training and development for their most strategic employees—all factors which contribute to low productivity.

The Convergys 2004 “Workforce Agility” study outlines the major obstacles companies face in maximizing their return on human investment (ROHI). For example, the corporate executives surveyed admit that gaps between workforce strategy and business strategy are common.

Moreover, the ability to mobilize their workforce to meet business demands with speed, precision and agility remains an elusive goal. When asked to describe their company’s ability to reallocate people to projects across lines of business or teams, more than 45 percent of respondents rated their company as rigid, while only 16 percent rated their company as flexible.

Even companies that are known for employing best practices estimate that they are overspending by at least 10 percent on their workforce, yet their employees are underperforming by 10 percent. As a result, companies could be leaving a significant percentage of their revenue on the table.

For example: For a $10 billion company, a 10 percent decrease in workforce costs and a 10 percent improvement in productivity would represent

Profiles in Diversity Journal September/October 2004

nearly $1.25 billion in annual savings.

While these results point to the need for financial discipline in overseeing HR, only 27 percent of companies in the U.S. say they have a human resources controller.

Most significantly, the Convergys 2004 “Workforce Agility” study highlights a real gap between human resource needs and business goals, indicating that 55 percent of respondents claim that work structured around jobs versus skills and competencies is a major barrier to optimizing their key talent.

In addition, 80 percent of senior executives emphasized the need to focus on retention and development of their strategic employees and most skilled talent. Paradoxically, less than 20 percent of HR executives rate their company as highly proficient at either of these.

“Companies are beginning to recognize the need to put a stronger emphasis on more strategic HR processes to manage and retain key talent,” says Philip Fersht, senior analyst at Yankee Group. “The tough business climate is driving many medium-sized and large organizations to scrutinize how they measure, monitor and manage their human capital.”

For more information about the Convergys “Workforce Agility” study, visit www.convergys.com.

PDJ

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As one of the nation’s leading health care benefits and insurance companies, we’re excited about the future and how we’ll get there. Our commitment to hiring the best talent and developing strategic supplier relationships is key to ensuring our expectations come true.

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Explore a healthy partnership with Anthem Blue Cross and Blue Shield by visiting our Web site today. EOE.

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