Diversity Journal - Jan/Feb 2006

Also Featuring ... Waste Management’s Front-Runner Carlton Yearwood • Leaders on Black Leaders

Volume 8, Number 1 January / February 2006

8.95 U.S.

$

Three separate features in this, our inaugural issue of 2006, reaffirm the importance of executive leadership as companies initiate and develop diversity practices.

First, we have an extraordinary interview with Larry C. Glasscock— chairman, president, and CEO of WellPoint, Inc.—describing what it takes to ensure the success of diversity initiatives in large corporations.

Mr. Glasscock sees diversity as a multidimensional concept that applies to both the culture and composition of the firm’s workforce. It involves everything from respecting regional differences to offering health insurance information in a Mayan dialect for Guatemalan immigrant communities in California. When a culture champion was needed within the company, Mr. Glasscock took on the role himself, becoming chair of the Diversity and Workplace Culture Executive Steering Committee—a perfect example of a leader leading.

Next, we kick off our Front-Runner series with a profile of Carlton Yearwood, vice president of human resources, business ethics and chief diversity officer of Waste Management, Inc. You’ll like the no-nonsense approach this former teacher and Marine takes to diversity development.

“Communicate clearly. Talk frequently. Follow up tirelessly,” he says.

Would you expect anything less direct from an admirer of Vince Lombardi and Colin Powell?

Finally, Diversity Best Practices offers its list of 15 best practices among companies with strong supplier diversity programs. It is no surprise that high on the list is the need for top-level support within the company. The leadership must come from the top—from folks like Larry Glasscock and Carlton Yearwood.

Throughout the year we’ll be showcasing other companies whose diversity and inclusion programs feature aggressive plans and measurable achievements. We’ll focus on Exelon (March-April), Sodexho (MayJune), Shell Oil (July-Aug.), and Waste Management, Inc. (Sept.-Oct.).

Our March-April Front-Runner features Punam Mathur, Senior VP Corporate Diversity & Community Affairs, MGM Mirage.

We have one more treat for you to kick start the year and your thinking. That’s our feature “Leaders on Black Leaders” that starts on page 58. We asked our readers to comment about Black History Month, to share how they recognize black history, and to tell us about their heroes. Their essays were more touching, thought-provoking, and inspiring than we dreamed possible.

We’ve packed a lot of good reading into this 80-page issue. Enjoy!

John Murphy Managing Editor

PUBLISHER James R. Rector MANAGING EDITOR John S. Murphy CREATIVE DIRECTOR Linda Schellentrager ASSOCIATE EDITOR/ASSISTANT TO THE PUBLISHER Damian Johnson CONTRIBUTING EDITOR Laurie Fumic OVERSEAS CORRESPONDENT Alina Dunaeva WEB MASTER Jason Bice

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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Profiles in Diversity Journal January/February 2006

On the Cover / Special Feature

17 CEO Larry C. Glasscock Leads the Corporate Culture at WellPoint, Inc.

WellPoint is the largest publicly traded commercial health benefits company in America.

Mr. Glasscock describes the extraordinary work that goes into ensuring the success of diversity and inclusion programs even as the company is expanding.

Carlton Yearwood

46 4

Profiles in Diversity Journal January/February 2006

Waste Management, Inc. Vice President of Human Resources, Business Ethics, and Chief Diversity Officer Carlton Yearwood describes the company’s deep-rooted commitment to diversity at every level.

Leaders on Black Leaders

58

We asked corporate leaders to reflect on black history and the leaders they most admire. The essays we received were both touching and thought-provoking.

departments Diversity Who, What, Where & When

8 Catalyst

14

Stereotypes What you don’t see or hear in the workplace hurts women. Catalyst has a new study, Women “Take Care,” Men “Take Charge”: Stereotyping of U.S. Business Leaders Exposed. The study shows that gender-based stereotyping may be the glue that locks the panes of the glass ceiling in place.

Diversity Best Practices

76 6

Supplier Diversity Supplier diversity is an area of growing interest for corporate America and for the government.

Corporations are setting ambitious goals for themselves to reach out to businesses not traditionally included in the supply chain.

Profiles in Diversity Journal January/February 2006

Dell celebrates Black History Month.

At Dell, we respect the significance of Black History Month and understand the importance of continuing its legacy. In addition, it’s another opportunity to let the world know about our commitment to diversity in the workplace. We believe in bringing together individuals with diverse backgrounds, thinking, leadership and ideas. Our employees are provided with the best tools, like the Dell Latitude D610 with Intel® Centrino® Mobile Technology, so that each individual has the power to reach their full potential. In fact, diversity drives innovation and makes Dell a more dynamic company.

Dell recommends Windows® XP Professional

Jeanne Oliver uses a Dell Latitude D610 with Intel® Centrino® Mobile Technology

CAREERS AT DELL. CONSIDER THE POSSIBILITIES. How do you get started? Visit www.dell.com/pdj.

Dell and the Dell logo are registered trademarks of Dell Inc. © 2006 Intel, Intel logo, Intel Inside, Intel Inside logo, Centrino and the Centrino logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.

All rights reserved. Dell Inc. cannot be held responsible for errors in typography or photography. Dell is an AA/EO employer. Workforce diversity is an essential part of Dell’s commitment to quality and to the future. We encourage you to apply, whatever your race, gender, color, religion, national origin, age, disability, marital status, sexual orientation, or veteran status.

National City Taps Terri Hamilton Brown for Corporate Diversity Post Terri Hamilton Brown has joined National City as head of Corporate Diversity. In her new role, Brown acts as the single point of contact for National City’s diversity and workforce inclusion programs, policies and procedures.

National City Corporation (NYSE: NCC), headquartered in Cleveland, Ohio, is one of the nation’s largest financial holding companies. The company operates through an extensive banking network primarily in Ohio, Illinois, Indiana, Kentucky, Michigan, Missouri, and Pennsylvania, and also serves customers in selected markets nationally.

“We’re proud Terri has decided to join our team,” said Dave Daberko, chairman and CEO, National City Corporation. “Terri’s new role underscores our commitment to developing and implementing a corporate strategy that focuses on managing workforce diversity and inclusion. Terri’s talent, experience and passion will help us achieve that goal.”

“I am excited to be a part of National City’s sincere dedication to creating a workplace defined by diversity and inclusion,” said Brown. “If our success matches that of National City’s other civic endeavors, we will have achieved something very special.”

Prior to joining National City, Brown served as president of University Circle Incorporated, a nonprofit organization established to promote and provide direct services and real estate development activities in University Circle—Cleveland’s premier arts, education and medical district. From 1998 to 2003, Brown served as executive director

8

of the Cuyahoga Metropolitan Housing Authority, where she was responsible for 50,000 residents.

Brown has earned a bachelor’s degree in economics from The University of Chicago and a master’s degree in city planning from Massachusetts Institute of Technology.

Marie Y. Philippe, PhD, Now Leads Workforce Diversity & Inclusion at Excellus Blue Cross Blue Shield Marie Y. Philippe, PhD, is now corporate vice president leading the charge on Workforce Diversity & Inclusion for the entire organization at Excellus Blue Cross Blue Shield.

Dr. Philippe has more than 24 years of business experience at leading firms such as Goldman, Sachs & Co., Dell Computer Corp. and most recently as director of culture management at Global Crossing.

Dr. Philippe is trilingual and renowned for her contribution in the areas of workforce multiculturalism.

In her new role, Philippe will help shape the company’s strategy on multicultural talent acquisition, development, and retention as well as the future workforce planning and development.

Philippe’s educational background includes a doctorate degree in cultural studies from Bircham International University, bachelor’s and master’s degrees in economics from the City College of New York, and an MBA from C.W. Post. She is a lifetime member of the Black MBA Association and a certified professional in Human Resources.

Profiles in Diversity Journal January/February 2006

Joan Kerr to Chair Global Business Committee Joan Kerr, executive director of AT&T Supplier Diversity Programs, was named chair of the Global Business Committee of the Women’s Business Enterprise National Council (WBENC). The committee’s mission is to work with WBENC to build awareness of and foster education about the role of women’s business enterprises (WBEs) in the growing globalization of economies, supply chains and business opportunities.

Kerr and other WBENC representatives attended a 2004 development conference in Istanbul and met with international women’s business organizations and individual WBEs eager to pursue opportunities in the private sector. Kerr’s previous involvement with WBENC includes serving as chair of the board of directors; she has served as vice chair of the board of directors since June 2005.

Kerr’s leadership in the supplier diversity realm has been recognized through her receipt of the Keeping the Promise Award from the California Disabled Veterans Business Enterprise Alliance, and her two-time receipt of the MBE Corporate Coordinator of the Year Award from the National Minority Supplier Development Council. She also received the Corporate Leadership Award from Asians for Corporate and Community Action, an employeeinitiated organization of the former SBC Communications, Inc. Kerr holds a JD degree from the University of California at Davis, a master of social work degree from the University of Washington, and bachelor of science degrees in comparative religions and psychology from the University of California at Santa Cruz.

opportunit opportunity ity starts s here h

www.TWSupplierDiversity.com BE SEEN. BE HEARD. BE HIRED. Think you have the talent to click with Time Warner?

Then register your minority- or women-owned business on our supplier diversity Web site. If you have superior products or services and pricing, you could find yourself working with some of the world’s leading companies in media and entertainment.

For your opportunity, visit www.TWSupplierDiversity.com

Talent meets opportunity

The Hartford Selects Medina Jett for Group Benefits Compliance Post SIMSBURY, Conn.—The Hartford Financial Services Group, Inc. (NYSE: HIG) has announced that Medina Jett, an attorney with broad compliance experience, has joined the company as vice president and chief compliance officer for its Group Benefits Division.

The Hartford’s Group Benefits Division is a leading provider of group disability and life insurance, providing a portfolio of products to employers, associations, and affinity groups that protects employees, members, and affiliates. In her new role, Jett will be responsible for the compliance functions for The Hartford’s Group Benefits Division and will also serve on The Hartford’s corporate-wide compliance council.

“The Hartford’s long-standing commitment to integrity and the reputation that we have earned with our customers and within our industry are among our most important assets,” said Dick Mucci, executive vice president and director of The Hartford’s Group Benefits Division. “Medina’s compliance and claims management experience is vitally important in an increasingly complex regulatory environment.”

Jett brings many years of insurance compliance experience to The Hartford.

She last served as vice president and chief compliance officer for Prudential’s retirement business. Immediately prior to her work at Prudential, she held a similar role at Cigna. When Prudential acquired Cigna’s retirement business in April 2004, Jett was responsible for managing the integration of the two companies’ compliance organizations.

Jett received her law degree from 10

Georgetown University and is a graduate of Wesleyan University.

The Hartford is one of the largest financial services and insurance companies in the United States, with worldwide revenues of $22.7 billion in 2004. The company is a leading provider of investment products; life insurance and group benefits; automobile and homeowners’ products; and business property-casualty insurance. International operations are located in Canada, Japan, Brazil and the United Kingdom.

DaimlerChrysler Financial Services Announces Appointment of Tracy L. Hackman to Vice President, General Counsel and Regional Secretary FARMINGTON HILLS, Mich.— DaimlerChrysler Financial Services Americas has announced the appointment of Tracy L. Hackman, who joined the company as a staff counsel in 1987, to vice president, general counsel and secretary for the Americas Region, effective January 1, 2006.

Hackman, who has served as associate general counsel and secretary since 1998, will become the first female executive in the company’s 41-year history to lead the Office of the General Counsel.

DaimlerChrysler Financial Services Americas LLC is a company of the DaimlerChrysler Financial Services Group, headquartered in Berlin, Germany, which operates in 39 countries with an employee base exceeding 11,000 and a global portfolio of approximately $135 billion. DaimlerChrysler Financial Services is one of the leading financial services organizations worldwide.

Hackman succeeds Christopher A.

Profiles in Diversity Journal January/February 2006

Taravella, vice president and general counsel, office of the general counsel and compliance services, who retired at the end of 2005.

“We are very pleased to announce the appointment of Tracy Hackman to lead our Office of the General Counsel,” said Klaus Entenmann, president and CEO of DaimlerChrysler Services North America. “Tracy’s institutional knowledge of our company and the automotive financial services industry, combined with her expertise in regulatory affairs, commercial transactions, and corporate affairs, will serve us well in our highly competitive business environment.”

Hackman has held a number of increasingly responsible positions within DaimlerChrysler Services and DaimlerChrysler Insurance Company.

Her most recent position was associate general counsel and corporate secretary, DaimlerChrysler Services North America, and secretary, DaimlerChrysler Insurance Company.

She received a BA in finance (1982) and an MBA in advanced management (1996) from Michigan State University.

She received a JD from the University of Detroit School of Law in 1986.

Allstate Appoints Cynthia Hardy Young as New Encompass President NORTHBROOK, Ill.—Cynthia Hardy Young has been appointed as the president of Encompass Insurance.

She replaces Douglas R. Wendt, who announced his decision to retire after 32 years of service.

“Cynthia has the experience and ability to position Encompass as the carrier of choice for the independent agent,” said Edward M. Liddy, chairman and CEO, The Allstate Corporation.

“We are confident that Encompass will continue to grow profitably under her leadership.”

Young joined Allstate in October, 2005, as the assistant vice president of product operations for Allstate Protection’s Northeast region which includes Connecticut, Maine, New Hampshire, Pennsylvania, Rhode Island, and Vermont. Previously, Young was president of the personal lines division for Allmerica Financial Group. Prior to that she was vice president of product management for the personal lines division of The Hartford Financial Services Group, Inc., product manager and professional liability claims attorney at Progressive, and litigation associate at Jones, Day, Reavis & Pogue.

Young received her bachelor of science in economics from Xavier University of Louisiana and her jurist doctorate from the University of Notre Dame School of Law. Encompass Insurance is a division of Allstate Insurance Co. (NYSE: ALL) which provides insurance products through independent agents. Encompass is a brand devoted exclusively to independent agents selling automobile, homeowner, and related insurance to more than one million customers through a network of more than 2,800 independent insurance agents.

Allstate is the exclusive administrator of Encompass personal automobile and home insurance policies issued by the insurance affiliates of CNA Financial Corporation. More information on Encompass Insurance can be found at www.encompassinsurance.com.

Chiquita Brands International Elects Dr. Clare M. Hasler to Board of Directors

Brands International, Inc. (NYSE: CQB) announced that Dr. Clare M. Hasler, 48, has joined its board of directors. Hasler is executive director of the Robert Mondavi Institute for Wine and Food Science at the University of California at Davis. She is a leading authority on “functional foods” that provide specific health benefits, such as lowering the risk of heart disease or cancer in addition to meeting basic nutritional needs.

“We are delighted to welcome Clare to Chiquita’s board,” said Fernando Aguirre, chairman and chief executive officer. “Her extensive experience in food science, nutrition, and food safety will help Chiquita as we continue to focus on delivering healthy and convenient food choices.”

“Chiquita has embarked upon an exciting mission to become the global leader in branded and value-added produce by helping the world’s consumers enjoy nutritional and healthy products,” Hasler said. “I am excited to add my skills and experience to Chiquita’s board and to work closely with this management team.”

Hasler holds a dual doctoral degree in environmental toxicology and human nutrition from Michigan State University and a master’s degree in nutrition from the Pennsylvania State University. She also earned a master’s degree in business administration from the University of Illinois at UrbanaChampaign.

Chiquita Brands International, Inc. (www.chiquita.com) is a leading international marketer and distributor of highquality fresh and value-added produce, which is sold under the Chiquita premium brand, Fresh Express and other related trademarks. The company is one of the largest banana producers in the world and a major supplier of bananas in Europe and North America.

CINCINNATI, Ohio—Chiquita

Johnson Controls Receives Highest Honor From NAACP MILWAUKEE, Wisc.—Johnson Controls (NYSE: JCI) has received the NAACP’s highest honor for the company’s leadership and continued support of diversity-based initiatives in Milwaukee.

The Working Together to Make a Difference Award was a highlight of the NAACP Milwaukee Chapter’s recent annual Dr. Martin Luther King/Rosa Parks Celebration.

“Encouraging diversity is an ongoing commitment at Johnson Controls,” said John Barth, chairman and CEO. “When diversity is achieved, everyone benefits, and Johnson Controls will continue to support diversity initiatives throughout Milwaukee.

We are honored to receive this prestigious award,” Barth added.

Also recognized at the event were two members of Johnson Controls’ senior management team, Darlene Rose, senior vice president, corporate strategy; and Mary Dowell, director of community relations, for their exemplary work in encouraging corporate participation in diversity-specific programs and events.

Rose was acknowledged for her work in and strategic planning of the Johnson Controls-sponsored NAACP National Convention held in Milwaukee last July.

Dowell received the Drum Major for Justice Award, recognizing her outstanding efforts and service in Milwaukee’s minority community.

Johnson Controls is a global leader in the production of innovative automotive interiors that help make driving more comfortable, safe, and enjoyable. For buildings, it offers products and services that optimize energy use and improve comfort and security. Johnson Controls also provides batteries for automobiles and hybrid electric vehicles, along with systems engineering and service expertise.

The company employs 136,000 employees in more than a thousand locations, serving customers in 125 countries. Founded in 1855, the company is headquartered in Milwaukee. For additional information, please visit www.johnsoncontrols.com.

PDJ 12

Profiles in Diversity Journal January/February 2006

Can one person change the world?

One did.

Rosa Parks February 4, 1913 – October 24, 2005

The world is a better place because Rosa Parks lived in it.

The men and women of Lockheed Martin honor her life and her contribution to the advancement of freedom for all.

Stereotypes What you don’t see or hear in the workplace hurts women.

By Catalyst

W

omen hold more than onehalf of all management and professional positions, but there are currently only seven Fortune 500 companies with women CEOs. At the same time, research shows that women and men aspire to top positions equally and analyses of more than 40 studies show very little difference between women’s and men’s leadership abilities. What can account for the startling gender gap in business leadership?

What holds the glass ceiling together?

The “glass ceiling” has entered the collective consciousness as one reason why women don’t advance. But for most people, the factors that actually comprise the glass ceiling are still vague and unexplored. When pressed to name a specific component of the glass ceiling, some people might identify gender-based stereotyping. But here again, a firm understanding of this concept is usually lacking.

These deficiencies hurt women because they fail to identify the specific actions and behaviors that hold women back. And without that knowledge, it is impossible to recommend meaningful changes. However, Catalyst’s new study, Women “Take Care,” Men “Take Charge”: Stereotyping of U.S. Business Leaders Exposed, fills in many of the missing 14

pieces, and shows us that gender-based stereotyping may be the glue that locks the panes of the glass ceiling in place.

Gender stereotyping 101 We rely on stereotypes—generalizations we make to differentiate groups of people —to help us save time when figuring out how to respond to people. But when they are incorrect, as they are likely to be when applied to groups as diverse as women and men, they create a system of perceptions that has little basis in reality. In the workplace, the reality is that there are few differences between women’s and men's leadership. Yet gender-based stereotyping is alive and well in business and plays a major role in both women’s and men’s judgments about women leaders.

How do they work? Gender-based stereotypes anticipate and respond to the legitimate differences between women and men, helping us avoid spending energy determining personalities “from scratch” whenever we meet someone.

Because we are usually unaware of the role stereotypes play in our perceptions of others, we tend to believe that our stereotypebased judgments are based on facts. To make matters worse, stereotyping can elicit from people the very behaviors that confirm our stereotypes, and we have a tendency to selectively remember actions that confirm our stereotypes, while we dismiss those that do not. The self-

Profiles in Diversity Journal January/February 2006

reinforcing misperceptions that result have become a powerful and invisible barrier to women’s advancement.

Women and men stereotype Because of the silent and insidious nature of stereotyping, it is difficult to quantify its existence. However, Catalyst’s latest study, conducted in cooperation with Theresa Welbourne, PhD, of the Ross School of Business at the University of Michigan, and eePulse, Incorporated, does just that, revealing that women and men stereotype senior leaders in similar ways. In the study, 296 top corporate leaders, including 101 CEOs, were asked to judge how effective women and men are on ten behaviors essential to leadership. The task-oriented behaviors (problem-solving, influencing upward, and delegating) were classified as stereotypically masculine. The people-oriented behaviors (supporting, rewarding, mentoring, networking, consulting, team-building, and inspiring) were classified as stereotypically feminine.

Catalyst found that both female and male corporate managers perceive women leaders as better at “taking care” behaviors such as rewarding and supporting.

Meanwhile, they perceive men as better at “taking charge” behaviors such as delegating and influencing upward.

Jeanine Prime, PhD, a director of research at Catalyst and author of the study, remarks that “it’s often these

‘taking charge’ skills—the stereotypically ‘masculine’ behaviors—that are seen as prerequisites for top-level positions.”

Misperceptions about those behaviors— and not fact-based information— frequently influence decisions that ultimately shortchange women.

Disturbing effects on women While women and men judged most leadership traits similarly, problemsolving—a hallmark trait of a CEO—was the behavior on which women and men most disagreed. Women saw women as better problem-solvers than men, but men saw men as better problem-solvers.

Since men far outnumber women in the upper levels of the corporate world, the stereotypes they hold dominate and, ultimately, undermine women’s abilities to influence and motivate teams and subordinates. This may be particularly challenging for women, who hold only 15.7 percent of Fortune 500 corporate officer positions, as they may not be able to fall back on their status in the hierarchy of their organizations as an alternative source of influence.

For women leaders in traditionally masculine occupations (for example, general management, finance, sales, information technology, and research and development), the problems are even worse. The study shows that people who report to women in those fields are significantly more likely to have negative

perceptions of women leaders than people who work for women in feminine occupations such as human resources or public relations. This may seem counterintuitive—after all, shouldn’t people who report to women have more facts and experience on which to base their perceptions about women?

Not according to psychologists, who have found that the tendency to process information selectively is especially likely when there is a status or power difference between the individuals involved. Since stereotypes reinforce themselves, people with women supervisors are actually more liable to believe that women are less competent leaders. The resulting credibility deficit obliges women leaders to spend time defending decisions to subordinates when they all could be doing more substantive work. The vicious nature of this situation cautions us that simply hiring more women leaders will not curb stereotyping in the workplace, especially in masculine occupations.

A call to action Unless organizations take active steps to eradicate bias, women leaders will continue to be undermined and misjudged, regardless of their talents and aptitudes.

However, hiring more women executives isn’t enough. Other changes companies should implement include: • Adding greater rigor to the performance evaluation process.

• Implementing a system of checks and balances to safeguard against stereotypic bias.

• Educating managers and executives about the latent influence of stereotyping and ways to override it.

• Showcasing the achievements of women leaders, particularly those in traditionally male-dominated fields.

By following these steps to dismantle the network of prejudgment, assumption, and misrepresentation created by stereotyping, companies will not only improve women’s productivity but also increase general productivity and profits. As Ilene H. Lang, president of Catalyst, emphasizes, “until we break the spell of stereotyping, companies will continue to suboptimize women and lose a vital talent pool—one they, frankly, cannot afford to ignore.”

PDJ

Catalyst is the leading research and advisory organization working to advance women in business, with offices in New York, San Jose, and Toronto. For more information or to download a free copy of Women “Take Care,” Men “Take Charge”: Stereotyping of U.S. Business Leaders Exposed, visit www.catalyst.org. You may also sign up to receive Catalyst’s issue-specific newsletter, Perspective, and monthly email updates at news@catalyst.org.

Profiles in Diversity Journal January/February 2006

15

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.

Special Feature

WellPoint

Diversity Management: A Vital Ingredient for a Healthy Corporate Culture Putting principles into practice at WellPoint, Inc.

Taking up the challenge “IMAGINE BEING EIGHT YEARS OLD AND HAVING TO TRANSLATE A DOCTOR’S COMPLICATED DIAGNOSIS TO YOUR MOTHER BECAUSE SHE DOESN’T SPEAK ENGLISH,” CHALLENGES LARRY C. GLASSCOCK. “YET EVERY DAY, PEOPLE ACROSS THIS COUNTRY FIND THEMSELVES IN A POSITION LIKE THAT. IF YOU WANT TO UNDERSTAND WHERE OUR COMMITMENT TO DIVERSITY MANAGEMENT COMES FROM, THERE’S A GOOD PLACE TO START.”

Mr. Glasscock is the chairman, president and CEO of WellPoint, Inc., the largest publicly traded commercial health benefits company in America. Formed in 2004 through the merger of Anthem, Inc. and WellPoint Health Networks Inc., WellPoint now serves approximately 34 million members: Roughly one in nine Americans carries a health benefits card from a WellPoint company.

WellPoint carries out its commitment to diversity at both the corporate and local levels. “It is about our

Profiles in Diversity Journal

January/February 2006

19

Larry C. Glasscock

WellPoint

A Brief History of WellPoint WellPoint, Inc. is the product of a merger between Anthem, Inc. and WellPoint Health Networks Inc. Anthem, Inc. grew out of two Indianapolis-based mutual

communities and the people who live

insurance corporations formed in the 1940s that eventually

there,” says Mr. Glasscock. “If you are

merged to form Blue Cross and Blue Shield of Indiana.

truly interested in meeting people’s health care needs, you have to under-

WellPoint Health Networks Inc. was formed in 1992 to operate Blue Cross of California's managed care business; it was spun off in 1993 as a separate publicly traded entity.

stand their community and be a part of it.”

WellPoint is doing just that. A case in point: the company’s October 15th donation of $1 million to the California

WellPoint is a licensee of the Blue Cross and Blue Shield

Latino Medical Association (CaLMA).

Association in 14 states.

The funds are directed toward attracting and training qualified, Spanish-speaking nurses to communities where they are needed.

Other subsidiaries include: • HealthLink: network rental for workers' compensation

“Latinos are the most widely underrepresented minority in nursing,” says

and health benefits programs in Missouri, Arkansas,

CaLMA Executive Director Christine

Illinois, Indiana, Iowa, Kentucky, and West Virginia

Gonzalez. “They comprise the largest

• UniCare: full-service health plan that serves medical

number of wait-listed students, apart

members nationwide • AdminaStar Federal and United Government Services: administrators of government health benefits programs, primarily Medicare • Lumenos: innovative, consumer-driven health care products acquired by WellPoint in mid-2005 • Specialty: a wide range of benefits and services

from Native Americans. WellPoint’s contribution has created an exceptional opportunity to close the gap.”

Ms. Gonzalez applauds WellPoint’s determination to answer a real and pressing need.

“They came to us and said, ‘Where is help needed most?’” she explains. “We

including vision, dental, pharmacy-benefit management

pointed to the language issue and said it

and behavioral health programs

would take a lot of money to address it in the proper way, and they were behind it one hundred percent.”

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Profiles in Diversity Journal January/February 2006

Special Feature

Not only will WellPoint’s contribu-

Setting the course

WellPoint

guiding behaviors. Diversity manage-

tion subsidize the training of Spanish-

WellPoint’s leadership team recog-

ment was a strategic focus for both legacy

speaking nurses, it will also allow existing

nized the 2004 merger of two diverse

companies, and it was clear that it should

health care practitioners to further their

company cultures as an ideal opportunity

remain so for the new company, as an

education. As Ms. Gonzalez explains,

to define a new, unified corporate

integral element in meeting the goals set

“With more Spanish-speaking PhDs,

culture and establish understanding of

forth in its long-term strategy.

we will have more Spanish-speaking

the company’s strategic direction among

teachers. And those teachers will be able

its associates.

Specifically, the WellPoint team identified several areas in which diversity is a core consideration:

not only to help provide medical training

Just weeks after the merger, the

but also to raise cultural awareness among

executive leadership team, led by Mr.

• Integrating diversity-related values and

nurses of all backgrounds. This program

Glasscock, dedicated an intensive three-

behaviors into the new corporate culture

really stands to build health care capacity

day session to defining a set of values and

within California’s Latino community.

Even the governor is watching closely now to see the kinds of results we

WellPoint, Inc. — Company Snapshot

achieve.”

Business: Health benefits Headquarters: Indianapolis, IN

A community business While WellPoint operates on a

Website: www.wellpoint.com

national scale, its focus remains local. Its

2005 Annual Revenue: approximately $45 billion

mission is to “improve the lives of

Number of Associates: approximately 42,000

the people we serve and the health of our

Number of Members: approximately 34 million

communities.” To carry out this mission, WellPoint currently has a force of approximately 42,000 associates, all focused on

Corporate Diversity Stats (through 2005)

balancing its “one company, one team”

Management positions held by women: 60%

core value and its national scope with a

Management positions held by persons of minority background: 18%

strong local presence. And WellPoint has made managing diversity a central component of its corporate culture.

Total promotions earned by persons of minority background: 40% Profiles in Diversity Journal

January/February 2006

21

Larry C. Glasscock

WellPoint

• Fostering supplier diversity strategies • Engaging in culturally relevant community relations and philanthropy • Developing leaders for tomorrow • Equipping those leaders with the ability to manage an increasingly diverse workforce • Understanding and addressing racial and ethnic health disparities Larry C. Glasscock, center, meeting associates from Lumenos, which was acquired by WellPoint in mid-2005 and specializes in innovative, consumer-driven health care products.

• Addressing the needs of the diverse mixture of the uninsured and the under-insured.

These considerations touch on virtually every facet of WellPoint’s

“We’ve said we intend to transform

business. Mr. Glasscock took it upon himself to personally communicate the

health care and become the most

company’s new core values to managers via face-to-face meetings and to all

valued company in our industry.

associates via global voice and e-mail messages—placing strong emphasis on WellPoint’s commitment to diversity. In

Diversity management is an

fact, when it came time to appoint a company culture champion, it was Mr.

integral part of that...”

Glasscock himself who assumed the role. As such, he chairs the Diversity

—Larry C. Glasscock

and Workplace Culture Executive Steering Committee, which is made up of the chairman, president and CEO and his direct reports.

22

Profiles in Diversity Journal January/February 2006

Special Feature

WellPoint

Diversity management at WellPoint today WellPoint actively cultivates opportunities for women and individuals from minority

backgrounds

to

advance

through the company ranks. In 2005, 60 percent of its management positions were held by women and 18 percent by minorities. The number of women in management at WellPoint has climbed Associate Julie Schlereth meeting Larry C. Glasscock after the close of the Anthem and WellPoint merger.

more than ten percent since the turn of the millennium, and this year alone nearly 40 percent of company promotions were awarded to minority persons.

WellPoint also supports external organizations that are focused on diversity.

AIMD’s 20th anniversary celebrations in

“We’ve said we intend to transform health care and become the most valued

Atlanta.

It helped found the Diversity Leader-

The company’s focus on managing

company in our industry,” he explains,

ship Academy of Greater Indianapolis

diversity has not gone unnoticed by

quoting WellPoint’s vision statement.

(www.DLAGI.org) in 2003, which has

external organizations, with recognition

“Diversity management is an integral part

attracted national leaders such as Julian

coming from a wide range of sources

of that: striving to mirror the markets in

Bond, Ray Suarez, and the late Coretta Scott

including Working Mother magazine,

which we operate and meeting the needs

King to Indianapolis. More than 130 com-

Black Equal Opportunity Employment

of an increasingly diverse customer base.

munity and business leaders have graduated

Journal, the National Association of

I’m proud of the commitment our com-

from the academy since it was founded.

Female Executives, FORTUNE, and

pany has made. I’m excited by the steps

CAREERS & the disABLED magazine.

we’ve taken. And I’m looking forward to

As well, WellPoint sponsors the Managing

While this recognition is welcomed

Diversity (AIMD), the parent organiza-

by all at WellPoint including Mr.

tion

Diversity

Glasscock, he points to the company’s

Leadership Academy. This November,

new vision and mission as containing the

Mr. Glasscock served as co-chair of

real measures of success.

American

that

Institute

founded

for

the

continued progress in the years to come.”

Profiles in Diversity Journal

January/February 2006

23

Larry C. Glasscock

WellPoint

interview ::

Dedicated to diversity WellPoint Chairman, President and CEO Larry C. Glasscock shares his views on managing diversity— and why it’s a priority Mr. Glasscock’s interest in—and commitment to—diversity is longstanding.

And as he makes clear, his goal for WellPoint is to ensure that diversity management is not just an initiative, but a fundamental way of doing business.

see it as our responsibility as an industry leader to take action on them.

How do those concerns relate to your stance on diversity?

Diversity runs right through all of these concerns. Recent research by organizations like the Institute of Medicine and the American College of Physicians has shown that there are racial and ethnic disparities in health care. Minorities do not always receive the same quality of care as non-minorities. They do not

Part of WellPoint’s stated vision is to transform health care. That’s an ambitious goal, to say the least. What has motivated it?

have the same access to health care, and

We’ve done a great deal of research into

to understanding and addressing these

the state of our industry and come up

issues.

they’re not always well-represented in the ranks of health professionals.

Overall, they have poorer health status than non-minorities. We’re committed

with four interrelated issues that consti-

conditions that absolutely rule out

What can WellPoint do to change that?

maintaining the status quo. These are:

Well, as I mentioned, one of the factors

the growing ranks of the uninsured;

contributing to health disparities for

the continuing deterioration of public

people of color is the dearth of health

health; the rising cost and declining

care

affordability of health care; and the need

WellPoint Foundation recently made a

for improvement in the safety and qual-

million-dollar grant to the California

ity of care. These are big issues, and we

Latino Medical Association to fund

tute what we call a ‘burning platform’—

24

Profiles in Diversity Journal January/February 2006

professionals

of

color.

The

Special Feature

Profiles in Diversity Journal

WellPoint

January/February 2006

25

Larry C. Glasscock

WellPoint

interview ::

scholarships for Hispanics and Latinos

vice president of Human Resources,

pursuing nursing careers. We’re building

who reports directly to me. And our

capacity in the region that will improve

Executive Leadership Team acts as the

access to health care and address some of

DWC Executive Steering Committee,

those large-scale issues identified in our

and I chair that committee, so we’re all

mission statement.

very closely involved in determining diversity

strategies,

measures

and

So it's important for WellPoint to have a diverse workforce to make a connection at the community level?

approaches. Also, when I think about

Absolutely, it is. Health care is about

When you look at the backgrounds of

people, and the people of this country

our leadership team, you will find a very

are diverse. To continue to develop a

diverse set of professional experiences

diverse workforce, we’re looking at a

and perspectives.

the makeup of the company’s leadership, I strive to ensure that there is diversity of thought and experience at the table.

combination of external recruitment and

internal

development.

Both

short-term results, but we’re also

Do you believe the rest of the company understands that toptier commitment to diversity?

committed to doing the relationship-

There’s always education and communi-

building and branding work necessary

cation to be done, particularly in a com-

to stand out as an employer of choice

pany that’s just come through a very

over the long term.

complex merger as we just have. But I

approaches will produce some positive

have to say I think our commitment and

26

What are you doing at the leadership level to support your diversity efforts?

values are understood very well through-

WellPoint has a dedicated Diversity and

and Workplace Culture Ambassadors.

Workplace Culture (DWC) team led by

This is a very diverse group, representing

our vice president of Diversity and

a broad range of backgrounds, job func-

Workplace Culture, David Casey. David

tions and geographies. Group members

reports to Randy Brown, our senior

actively assist with training and educa-

Profiles in Diversity Journal January/February 2006

out WellPoint. We’ve had more than 200 associates volunteer to be Diversity

Special Feature

tion, communications and celebratory

said, there will be times it is necessary

events. They also serve as focus groups as

for us to specifically recruit minorities

we assess our diversity strategies.

and women—for instance, in situations

WellPoint

where we may not be as representative of

That sounds like a good inclusion mechanism. Are there other ways WellPoint ensures the inclusion of employees?

In November, we conducted our first integrated, all-associate survey since the merger. We’re now analyzing the survey data from a number of different perspectives: ethnicity, gender, age, tenure, business unit and location. We feel this will provide a clear line of sight for the development of effective action plans and support our core value of personal accountability for excellence.

the market as we would like to be. And because we are a government contractor, affirmative action planning is a very real and essential component of our diversity management strategy. At the end of the day, our overall goal is to serve our diverse marketplace with associates who best represent that marketplace.

How do you see that marketplace changing in the future?

A key trend underway today is toward CDHPs—consumer-driven health plans.

These are plans that allow consumers to take a more active role in their health

How do you deal with those who think inclusion programs for under-represented groups are exclusionary for others?

and health care. By giving consumers

We have a philosophy that diversity

needs of diverse individuals. We believe

management is about much more than

the demand for these offerings is going

race and gender. Our strategic approach

to keep growing. And it’s already chang-

to diversity management really is

ing the way we design our products and

designed to be inclusive of everyone.

services. For us, it’s an exciting opportu-

It has to be, because it’s driven by our

nity to interact closely with the end

business objectives, and we can’t afford

users of our plans and products, to really

to be exclusionary in any regard. That

engage on the local, individual level.

greater

choice

and

responsibility,

supported by much better information about health care options, consumerdriven products can better meet the

:: interview

Profiles in Diversity Journal

January/February 2006

27

Larry C. Glasscock

WellPoint

A multidimensional approach WellPoint strategies for managing diversity

for Managing Diversity. That model involves: 1. Addressing issues of workforce representation

At WellPoint, ‘diversity’ is a multi-

2. Engaging associates through

dimensional concept. It applies in the

meaningful relationships

workplace—both culturally and in terms

3. Continuously assessing company

of the composition of the company’s

policies, systems and behaviors

workforce. It applies in the marketplace—

WellPoint’s Core Values One of WellPoint’s first postmerger integration projects was to articulate a new set of core values for the company. Crafted

by Mr. Glasscock and his executive team over a three-day retreat, those values were formulated as follows: • Customer First • Lead Through Innovation • One Company, One Team

4. Strategically leveraging all internal

encompassing everything from respect

and external diversity mixtures (which

for regional differences to ensuring that

in WellPoint’s case include customers,

WellPoint’s slate of health insurance

shareholders, suppliers and others).

products and services answers the full range of consumer needs.

From

WellPoint’s

perspective,

Covering all the bases

diversity also has a great deal to do with

WellPoint strives to ensure that its

opportunity, whether it’s the opportunity

workforce mirrors its markets by recruit-

for someone from a minority back-

ing and engaging a broad range of talent

ground to advance professionally, or the

across all levels of the organization.

opportunity for Americans without

In

health insurance to gain access to the

employment campaigns via the Internet,

care they need.

print and broadcast media, direct mail

addition

to

diversity-oriented

• Personal Accountability for Excellence

To meet its diversity-management

and career fairs, WellPoint engages in

objectives, WellPoint engages in a wide

various educational outreach activities.

• Integrity

range of programs and initiatives, the

One such activity is its partnership with

majority of which are intended to have a

INROADS,

discernable impact in the communities

provides business internships to promis-

where the company operates. Its strategies

ing young people of color while giving

are based on the four-quadrant model

corporations the opportunity to develop

established by the American Institute

diverse managerial talent.

These core values are supported by detailed guiding behaviors that provide a solid foundation for the company’s success.

28

Profiles in Diversity Journal January/February 2006

an

organization

that

Special Feature

WellPoint

WellPoint engages continuously in Together, WellPoint and INROADS

efforts to ensure that its associates

provide scholarships and internships for minority students and also recruit new graduates to participate in WellPoint’s

appreciate the differences and

Health Insurance Professional Program (HIPP). HIPP allows new college gradu-

similarities that people bring to the

ates to take part in a series of job rotations over a two-year period, giving them a well-rounded understanding of the com-

company’s workplace—illuminating

pany’s business and presenting valuable opportunities for them to lead significant

for them the various ways those

projects.

Managing workforce relationships WellPoint engages continuously in

‘diversities’ can be put into action for the company’s collective benefit.

efforts to ensure that its associates appreciate the differences and similarities that people bring to the company’s work-

out real-world workforce-relationship

certain cases includes taking the ‘temper-

place—illuminating for them the various

scenarios for participants in WellPoint’s

ature’ of employee opinion. During the

ways those ‘diversities’ can be put into

new manager orientation program.

recent merger, for instance, WellPoint

action for the company’s collective benefit.

Managers are then led through a facilitat-

surveyed its associates’ thoughts on the

Diversity training is required for all

ed dialogue about the most effective way

topic of its Total Rewards program. The

associates and is delivered through new

to work through the challenges presented

end result was a market-competitive pro-

hire orientation, new manager orienta-

in the scenarios, learning through engage-

gram of benefits and rewards that offered

tion, ethics and compliance training, and

ment rather than by dictation.

associates everything from flexible work

corporate communications. In every case,

WellPoint constantly assesses and

WellPoint seeks innovative ways to get its

evaluates its policies and practices to

message across. For example, a troupe

ensure that they support its strategic and

called Picture This Diversity Theatre acts

diversity-related aims, an effort that in

schedules and domestic partner benefits to education assistance and more.

Profiles in Diversity Journal

January/February 2006

29

Larry C. Glasscock

WellPoint

From the HIPP Marcus Taylor discovered an unexpected career opportunity through WellPoint’s Health Insurance Professional Program

When Marcus Taylor decided to pursue a career in health care, he pictured himself in hospital administration. That was before the Health Insurance Professional Program (HIPP) led to a job as account manager in Indiana Large Group Sales.

“Life and leadership are about what you do to make other people’s lives better,” Mr. Taylor explained. After watching his Marcus Taylor grandmother struggle with the health care Account Manager Indiana Large Group Sales system, he knew he wanted to improve WellPoint, Inc. access to health services and how they were delivered. So, following a stint in the Army, he pursued a degree in health policy and science at the University of Maryland, Baltimore County.

He continued his education at Indiana University, earning a master’s in health administration three years ago.

That was where Mr. Taylor heard about HIPP. He immediately saw the opportunity to make his mark in a company that touched millions of health care consumers.

“One of the keys to my growth has been a combination of great mentors and leaders,” he said.

“They gave me a lot of their personal, face-to-face time. They also gave me access to their own networks of leaders to learn about the career paths they’ve taken.”

His first-year rotation took him to WellPoint Business Solutions and Services (BSS). In his project management role, he was involved in pre-merger integration work, identifying synergy savings for senior and state-sponsored programs.

“My second rotation was pivotal in my career,” Mr. Taylor said. His work with company leaders helped him see the industry from the inside out, including participation in the development of the Indiana Health Care Consortium and the Indiana Provider Advisory Council.

Mr. Taylor’s experience with leaders in the Indiana sales organization during that rotation helped him make a smooth transition when a position opened up in Indiana Large Group Sales earlier this year. And although he didn’t remain in HIPP for a third rotation, he continues to be involved as a mentor for first-year HIPP associates. He knows how difficult it can be for new professionals to find a sense of community in such a large organization and sees mentoring as a way to give back—one more way to make a difference.

30

Profiles in Diversity Journal January/February 2006

Special Feature

WellPoint

Achievement is its own reward (But a little acknowledgement never hurts)

While external recognition is not a key objective of WellPoint's diversity initiatives, the company is proud of the attention it and its associates have received for their efforts. The following lists some recent highlights.

• Hispanic Business Magazine named

the top ten for its advancement of

• Hispanic Business Magazine named

Vice President of Emerging Markets

women into management and senior

WellPoint one of the “Top 25 U.S.

Leonor McCall-Rodriguez one of

positions.)

Companies for Minorities” for two

“80 Elite Women” in America for her outreach to multicultural health care markets.

• Working Mother magazine named WellPoint one of the “Best Companies for Women of Color” in 2005 and featured the inspiring story of associate Tracy Edmonds.

• The St. Louis American Foundation honored Dale Evans-Blackmon, director of network services for Blue Cross Blue Shield of Missouri, with its 2005 Excellence Award for being an outstanding African-American health professional in her community.

• NAFE, the National Association of Female Executives, selected WellPoint as one of the “Top 30 Companies for Executive Women.” (WellPoint made

• Who’s Who in Black Indianapolis and Who’s Who in Black Cincinnati

consecutive years.

• Next Step Magazine identified

featured several WellPoint leaders in

WellPoint as “One of America’s Most

their 2005 editions.

Diverse Organizations.”

• During the 2004 Celebration of

• FORTUNE magazine declared

Diversity Awards held by the mayor of

WellPoint the nation’s “Most Admired

Indianapolis, WellPoint received the

Health Care Company” for six years

Sam Jones Award: the top honor a

in a row.

company can receive for its commitment to diversity in Indianapolis.

• The Human Rights Campaign, America’s largest advocacy group for

• Black Equal Opportunity Employment

gay, lesbian, bisexual and transgender

Journal named WellPoint one of the

Americans, gave WellPoint a rating of

“Top Financial Institutions and

86 percent on its Corporate Equality

Insurance Companies for Minorities”

Index in 2005; the index is the

for two consecutive years.

nation’s only rating system for corpo-

• CAREERS & the disABLED magazine

rate GLBT policies.

named WellPoint one of the “Top 50 Disability-Friendly Employers” for two consecutive years.

Profiles in Diversity Journal

January/February 2006

31

Larry C. Glasscock

WellPoint

Achieving impact

Diversity

Leadership

Larry’s role as co-chair of the 20th

American

Taking action

results

on

their

produce own.

“Our associates not only have

Achievement comes from action. And in

to understand the company’s

the corporate world, actions taken at the

values, they must also

highest levels of an organization tend to be repeated down the line.

appreciate where those

With this in mind, WellPoint

values come from—the

Chairman, President and CEO Larry

rationale behind them.

Managing

and Workplace Culture is focused strategically on aligning the company’s business goals with diversity best practices in training, strategic planning, and multicultural market development.

As such, the department serves as a key instrument in carrying out Mr. Glasscock’s “culture-first” approach to doing business.

leadership by example when it comes to

Creating the right environment

take those values to heart

promulgating the company’s culture—

Since arising from the merger

and translate them into

including its approach to managing

of Anthem and WellPoint Health

diversity.

Networks in 2004, WellPoint, Inc. has

actions.”

“Everyone on our executive team

worked quickly to roll out its new

sees him- or herself as a standard-bearer

corporate culture. An important first

David Casey

of the company’s core values,” declares

step was the company’s Culture-Shaping

Vice President of Diversity

David Casey, vice president of Diversity

Leadership Forum last May. Led by

and Workplace Culture

and Workplace Culture. “That really does

Mr. Glasscock, the forum gathered

start with Larry Glasscock. And it

WellPoint’s top 300 leaders for a discus-

extends even beyond the limits of the

sion of the critical relationship between

company walls to our support of the

corporate culture and performance.

WellPoint, Inc.

32

for

the

C. Glasscock and his executive team have adopted a highly visible policy of

Because then they can truly

Institute

of

WellPoint’s department of Diversity

Good intentions are wonderful, don’t

celebration

Diversity.”

on diversity

they

of

Greater Indianapolis, for example, or

anniversary

but

Academy

Profiles in Diversity Journal January/February 2006

Special Feature

WellPoint

The 2005 class of the Diversity Leadership Academy of Greater Indianapolis was the third class to graduate since WellPoint helped found the academy in 2003.

Following the forum, 46 facilitators

come from—the rationale behind

from the associate population were

them,” explains Mr. Casey. “Because

chosen to communicate WellPoint’s

then they can truly take those values to

cultural principles to a force of some

heart and translate them into actions.”

3,200 managers. In 2006, the facilitators’

To keep the lines of communica-

efforts will extend to frontline associates

tion open, WellPoint has invited front-

in keeping with an admittedly aggressive

line associates to serve as internal culture

schedule.

are

and diversity ambassadors, helping

ambitious

inform their peers about new and

acculturation program (and the invest-

upcoming events. More than 200 associ-

ment it represents) is essential to estab-

ates have volunteered thus far. To David

lishing a foundation for the company’s

Casey, that’s a clear indication that

success going forward.

people are interested in and supportive

convinced

WellPoint’s that

this

leaders

“Our associates not only have to

of the direction the company is taking.

understand our corporate values, they must also appreciate where those values

Profiles in Diversity Journal

January/February 2006

33

Larry C. Glasscock

WellPoint

Laying the groundwork for tomorrow committed to diversity manage-

Succession planning

ment beforehand. Anthem had

and leadership

previously established its own

development with

department of Diversity and

diversity in mind

Workplace

Culture;

and

WellPoint Health Networks mainFor WellPoint, as for most corporations

tained a sharp focus on diversity

today, succession planning is a key

management. Each company’s

leadership-development concern. The

diversity commitment originated

aging of the baby boom workforce and

at the very top.

the wave of retirement that is expected as

In August 2005, Ms. Wade

a result must be prepared for effectively.

and her colleagues prepared a com-

At the same time, as a company poised

prehensive succession planning report

“The feedback at WellPoint’s

for further growth, WellPoint recognizes

for WellPoint’s board of directors—

Emerging Leaders Program

the necessity of having skilled, qualified

with an eye on the diversity of

was extremely helpful—

people ready to lead as expansion occurs.

current and future leaders. Already,

direct, honest and

Judy Wade, director of succession

WellPoint’s commitment to con-

professional.”

planning and executive development,

sistently monitor the diversity of

asserts that in both of the above cases

its associates has resulted in an

Dijuana Lewis

diversity is essential for WellPoint to

11 percent increase in minority

President,

make an agile and innovative response.

women working in management.

Northeast Markets

“America is a diverse country: ethnically,

“I’m proud that we already

geographically, socially,” Ms. Wade explains.

have strong representation of

“We feel very strongly that the leadership

women at the highest levels of our organ-

at the leadership level—can’t be simply

of our company has to reflect that.”

ization,” Ms. Wade says. “Going forward,

about meeting quotas.

She notes that enacting diversity

we’ll continue to foster that and at the

“You can’t manufacture drive or

strategies—despite the complexities of

same time strengthen the presence of

ambition or talent,” she explains. “What

carrying out a massive corporate merger—

individuals from different ethnic and

you can do is be open to the broadest

has proceeded successfully since 2004,

cultural backgrounds.”

pool of people who possess those qualities.

partly because both Anthem and WellPoint 34

WellPoint, Inc.

Health

Networks

were

She’s quick to point out that a

You have to open doors and create oppor-

successful diversity program—particularly

tunities for the best people to be noticed,

Profiles in Diversity Journal January/February 2006

Special Feature

regardless of who they are or where they

WellPoint

Spotlight on women

come from. That’s my job, and I love it.

In a personal way, it gives me great satis-

At WellPoint today, 60 percent of all management positions

faction to help someone deserving achieve a personal or professional goal.”

are held by women. More than 45 percent of company associates in director-level and higher positions are women who par-

Enabling leaders to emerge

ticipate in succession planning.

WellPoint is in the process of evolving and combining its legacy leadership-

The company is committed to offering growth opportunities for

development programs into a new,

women of initiative to advance. Flexible schedules, work-at-

unified package of approaches suited to

home and job-share arrangements, and WellPoint’s innovative

the post-merger company’s expanded

new-parent transition week are all available to support this

needs and circumstances.

commitment—even at the company’s executive levels.

The new initiative is slated for rollout in 2006. The legacy programs on which it will be based include WellPoint’s

A major opportunity for minorities

Emerging Leaders Program, which was

“It was extremely helpful to have

created to identify high-potential associ-

feedback—feedback that was direct,

ates for executive roles, and the Executive

honest and professional,” she shares. “It

To support the professional develop-

Experience Program, which grooms

was the greatest growth experience I’ve

ment of minority persons, WellPoint

future executives. Of the 30 associates to

ever had in my career.”

takes part in programs offered by

complete the Emerging Leaders Program,

Ms. Lewis is just one example of why

half have been women. And of the 79

WellPoint has been recognized by

(AHIP). AHIP is one of the most promi-

participants in the Executive Experience

the National Association of Female

nent health care associations in America,

Program, 33 have been women.

Executives as one of the top ten

and WellPoint is its largest participant.

America’s

Health

Insurance

Plans

Five participants in the company’s

companies for its placement of women

AHIP offers several fellowship

Emerging Leaders Program have been

into management and senior positions.

programs geared toward developing

promoted to executive positions. Dijuana

Seven Emerging Leaders Program partic-

minority leaders within the industry.

Lewis, President, Northeast Markets, says

ipants made lateral moves to broaden

WellPoint sponsored the involvement of

the program provided the full gamut of

their experiences and skills, and eight

13 associates in 2004-05 and another 28

leader training.

received promotions.

during 2005-06. In both cases, the

Profiles in Diversity Journal

January/February 2006

35

Larry C. Glasscock

WellPoint

company put people through AHIP’s Executive Leadership Program, which focuses on developing industry leaders through internal and external mentoring relationships.

One of WellPoint’s AHIP

“There are very few minorities in leadership in

A leading example The Diversity Leadership Academy of Greater Indianapolis

graduates is David Henley,

Perhaps one of the most visible

senior counsel at Blue Cross

indicators of WellPoint’s commitment

Blue Shield of Missouri. He

to cultivating leadership diversity—

was recently promoted to his

within and outside its own corporate

position and asserts that the

environment—is the pivotal role it

advancement “may not have

played in establishing the Diversity

happened without the Executive

Leadership

Leadership Program.” Paired with a CEO

Academy

Greater

Indianapolis (DLAGI) in 2003.

in Florida as his external mentor and with

The company committed more

the Blue Cross Blue Shield of Missouri

than half a million dollars to the academy’s

medical director as his internal mentor,

initial development, creating an innova-

Henley was able to gain valuable experi-

tive, hands-on learning program for

are a cross-section of

ence that helped him grow professionally.

building diversity-management leader-

America, just like our

“There are very few minorities in

ship skills within the Indianapolis com-

leadership in the health care industry in

munity. In a speech during the 20th

general,” says Berenice Ruhl, diversity

anniversary celebration of the American

programs manager for WellPoint.

Institute

the health care industry in general. It is imperative that our industry leaders

members.”

Berenice Ruhl, PhD Diversity Programs Manager WellPoint, Inc.

“It is imperative that our industry

(AIMD),

for

Managing

WellPoint

Diversity Chairman,

leaders are a cross-section of America, just

President and CEO Larry C. Glasscock

like our members.” Of the AHIP

explained the company’s rationale for

programs and others like them she says:

making such an investment.

“It is worth the investment. We are seeing

“Helping to launch the Diversity

more confidence in associates, more

Leadership

Academy

polished professionalism, willingness

Indianapolis was an outstanding oppor-

to take on more challenges, and

tunity for us to give back to the com-

tremendous networking.”

munity we call home to our corporate headquarters,” he said.

36

of

Profiles in Diversity Journal January/February 2006

of

Greater

Special Feature

Truly groundbreaking

WellPoint

“It is my hope and belief that we are

Indianapolis was the first city outside of Atlanta, Georgia to establish a Diversity Leadership Academy. (The

a better company as a result of our

original DLA was founded in Atlanta by AIMD in September 2001.)

relationship with AIMD.”

Open to leaders from business, government, the not-for-profit sector,

—Larry C. Glasscock

education and religious organizations, the DLAGI offers a series of five day-long classes customized to the particular business and social environment of Indianapolis. Interactive and action-oriented,

The NewsHour with Jim Lehrer, spoke at

AIMD and that organization’s founder,

it guides participants through the appli-

the welcome reception.

Dr. R. Roosevelt Thomas Jr. Mr. Glass-

AIMD describes the benefits of its

cock has called Dr. Thomas “a tremendous

Diversity Leadership Academies (of

resource in thinking about diversity man-

which there are now eight) as enhancing

agement and living out our [WellPoint’s]

130 community leaders have graduated

the readiness of participants to:

commitment to doing it well.”

from the academy, including the city’s top

• Provide leadership around diversity

cation of diversity-management principles to real community issues.

Since its establishment more than

public-safety officials as well as a number of WellPoint leaders.

Applicants are chosen to participate in the academy based on their ability to

In 2005, the organization observed its 20th anniversary. WellPoint was title

issues • Participate in and influence community dialogue on diversity issues • Address personal diversity issues such

sponsor of AIMD’s anniversary celebrations, and Mr. Glasscock served as co-chair. “It is my hope and belief that we

lead and inspire change within their

as those related to family and

are a better company as a result of our

organizations or community, and to share

neighborhood.

relationship with AIMD,” Mr. Glasscock

information about diversity management.

As well, the DLAGI training equips

The academy has attracted many

leaders with a clear understanding of the

notable speakers from the field of diversity.

effort required to improve their organiza-

The late civil rights activist Coretta Scott

tions’ ability to address diversity effectively.

Julian Bond, chairman of the NAACP,

20/20 Forum and Celebratory Luncheon in November, “and that we better reflect and serve the diversity of our associates, our customers and communities.”

King initiated the DLAGI program in 2003 with a message of inspiration;

told the audience at AIMD’s Diversity

Celebrating 20 years of inspiration

addressed the class of 2004; and last year

WellPoint came to support the

Ray Suarez, senior correspondent for

DLAGI through its association with

Profiles in Diversity Journal

January/February 2006

37

Larry C. Glasscock

WellPoint

Diversity is our business WellPoint’s understanding of diversity as a business driver

high school and college graduates—and

protecting the rights and the privacy

hire them for a three-year period. Over

of patients—as an essential step toward

that time, we train them to be independent

achieving our long-term aims. It’s

insurance agents and brokers. But more

obvious to us that, in a real way, manag-

importantly, we also train them to be

ing diversity is our business.”

successful small-business owners and operators. At the end of the three years,

Extending reach and building capacity at the same time

their employment with us ends, and

of

An important way WellPoint reaches

communities and establish themselves as

America has changed radically,” says

out to the uninsured is through personal,

independent entrepreneurs. We not only

Mr. Glasscock. “Consolidation in our

face-to-face contact via its force of agents.

subsidize

industry, technological advancement, and

“We depend on agents and brokers

evolving consumer expectations have all

to reach our markets,” says Deborah

made the environment today far more

Lachman, president, Individual and Small

WellPoint's first wave of ten

competitive than at any time in the past.”

Group, West Region. “Our agents and

Incubator Program ‘graduates’—all from

In such a context, a company’s

brokers have to increasingly represent the

the Los Angeles area—went out into the

business strategies have to be rock-solid—

diversity of the public we serve, ethnically

field in January 2005. Ms. Lachman says

especially if that company’s declared aim

and geographically. Yet generally the

the reach of the program will expand over

is WellPoint’s: to transform health care

population of agents and brokers is not

time. She’s extremely pleased with the

and become the most valued company in

growing; it’s not a career option that a lot

results so far.

the industry.

of young people are exploring.”

“The

38

approaches to gather that data—while

health

care

landscape

they’re fully equipped to go out into their

their

business

education

through this program, but also pay for their licenses.”

“We’ve helped people become bona

“We know that not all ethnic popu-

To address this deficit, WellPoint

fide entrepreneurs,” she concludes,

lations receive the same medical care, and

developed what it calls its “Incubator

“people who were already very gung-ho,

that some may be at greater risk for

Program.”

ambitious and dedicated. It’s gratifying to

particular medical conditions,” says Mr.

“The Incubator Program addresses

see how sincerely appreciative they are of

Glasscock. “However, there is little

our needs and at the same time allows us

the opportunity, and how determined

standard or centralized data about the

to give something back to the communities

they are to succeed.”

disparities and gaps in care to adequately

where

address

Lachman. “We recruit young people—

them.

We’re

developing

we

operate,”

Profiles in Diversity Journal January/February 2006

explains

Ms.

Special Feature

WellPoint

Working the issue R. Roosevelt Thomas Jr., PhD, reflects on WellPoint’s diversity commitment Since creating the Atlanta-based American Institute for Managing Diversity (AIMD) back in the early 1980s, Dr. Thomas has strived to help American organizations make the most out of the contributions of their diverse associates.

Today, he and his team look beyond workforce diversity to a broader set of management considerations including change management, functional coordination, business-line integration, and acquisitions and mergers.

Dr. Thomas created AIMD to help organizations understand why managing diversity is essential not only ethically but also from a business perspective. In the words of the organization’s Web site, AIMD was the “first national, nonprofit diversity think tank.” Engaged in research, education and corporate consultation on diversity issues, AIMD has earned the esteem of many of America’s most prominent corporations including the Coca-Cola Company, which sponsored the original DLA in Atlanta.

R. Roosevelt Thomas Jr., PhD, Founder, American Institute for Managing Diversity

Profiles in Diversity Journal spoke to Dr. Thomas recently about his work and about the experience of collaborating with WellPoint.

What has it been like to work with the WellPoint team on the creation of the Diversity Leadership Academy of Greater Indianapolis?

It’s been energizing and exciting to work with Larry Glasscock and David Casey. Their enthusiasm for the academy is genuine. You see reflected in them the desire for WellPoint to be both a good corporate citizen and a good model of strategic diversity management. And I know the academy has been well received by the community in Indianapolis.

What has been Mr. Glasscock’s role as co-chair of the 20th anniversary celebration?

He’s a committed champion of AIMD, and he was insistent that we needed to have a big celebration for the 20th anniversary. He saw it as a truly important milestone. He was an integral part of the celebration. He put in a great deal of effort. It was very impressive, given all he has on his plate.

From your perspective, what kind of opportunities does a company like WellPoint have to make real progress on diversity issues?

Diversity management really amounts to making the most of differences and similarities in the midst of complexities and tensions. WellPoint is poised to move beyond the traditional diversity foci of workforce numbers and representation. It is also poised to illustrate how the concept of diversity management can be applied to other areas of business. To be ready for sustainable progress, you have to work the issue internally and externally, and that is what WellPoint is doing: combining traditional and non-traditional approaches to strengthen its business and, as the saying goes, ‘do the right thing’. You work it inside and outside, for the good of the company and for the community it serves. That’s what I see WellPoint doing, and I think it’s really commendable.

Profiles in Diversity Journal

January/February 2006

39

Larry C. Glasscock

WellPoint

You are who you work with Suppliers are an important dimension of corporate diversity In addition to reaching out to new and diverse customer groups, WellPoint— like many leading American corporations— is seeking to make diversity a routine

Speaking the same language

component of its supplier relationships.

The company took an important step

WellPoint’s commitment to communicating with consumers in their language of choice goes beyond just English and Spanish.

The company recently began offering services in the spoken Mayan dialect Q’anjoval to connect with Guatemalan immigrant communities.

“A high percentage of the ethnic communities we serve are uninsured. For example, in California, an estimated 3.3 million of the uninsured—some 56 percent—are Latino. A lot of this is due to not understanding how insurance works and how to navigate the health care system in the United States. If we are to succeed in insuring everyone, we have to reach out in the right language and with a culturally competent way of doing business. Every market, whether it is determined by lifestyle, ethnicity or life stage, requires a distinct approach. Our responsibility is to help members and non-members understand how they can access health care.”

forward on that front in August 2005 when Brenda Burke joined WellPoint as its director of Supplier Diversity.

Ms. Burke is an undeniably apt choice for the job. As a former director of administration for the mayor of Indianapolis, she led the city’s supplierdiversity program and was recognized for the success of her efforts with the 2005 Public Service Award from the Center for Leadership Development.

She notes that “diversity touches every aspect of life, from hiring the best talent and career advancement to supplier relationships.” WellPoint believes a diverse supplier base enables it to deliver unique

Leonor McCall-Rodriguez Vice President, Emerging Markets WellPoint, Inc.

value to culturally distinct markets.

“Supplier diversity also offers diverse contracting solutions for our customers,” says Ms. Burke. “Through our

40

Profiles in Diversity Journal January/February 2006

Special Feature

WellPoint

Meeting the needs of a diverse customer base: The WellPoint product portfolio Supplier Diversity Initiative, we are dedicated to diversifying our supplier base to include businesses that are minorityowned, woman-owned, and servicedisabled veteran-owned.”

She points to the example of WellPoint’s nine IT staffing service providers: One at present is minorityowned; another is woman-owned. Ms. Burke says the company’s goal is to include diverse suppliers in every bidding opportunity.

She views her job as one of building on existing momentum. “In 2004, WellPoint spent $49.1 million with diverse suppliers. We exceeded that number in 2005. Ultimately, we want our supplier-diversity program to be best-inclass for the health care industry.”

Part of a broader movement When it comes to supplier diversity,

WellPoint continuously researches and designs products that meet the needs of diverse consumers. For example: • Tonik—individual health care coverage, currently available in California and Colorado, designed primarily for young people from 19 to 29. All Tonik plans include doctor visits with copays, as well as low-cost health screenings to encourage preventative care. Approximately 70 percent of Tonik members were previously uninsured.

• Blue Access Economy—an individual plan designed to provide a solid foundation to basic health coverage, including a range of deductible options, prescription drug card and office visit copayments. To date, 45 percent of new members were previously uninsured.

• Stepping Stones Initiatives—this innovative health and wellness education program allows WellPoint to partner with faith-based organizations in an effort to reach emerging markets at community events. WellPoint medical associates give presentations on key health issues and provide free preventative screenings.

• Senior Business—specialized products for the diverse senior-citizen population, featuring a wide range of price and health care options. WellPoint provides extensive training to its customer service representatives, improving their ability to respond to the needs of this growing population.

WellPoint also understands the value of collaborative partners. The company is a national member of the National

being a resource for women business

diverse suppliers. Some are even requiring

Minority Supplier Development Council

owners. In addition, WellPoint is a

quarterly supplier utilization reports.

(NMSDC), a leading business member-

corporate partner of the National

“Supplier diversity procurement is

ship organization that provides a direct

Association of Women Business Owners.

no longer an issue of social conscience

link between corporate America and

WellPoint is also beginning to see its

alone,” says Ms. Burke. “As we grow our

customers place greater importance on

business, we must pay attention to the

WellPoint is also a member of the

supplier diversity. Growing numbers of

importance of capturing and retaining

Women’s Business Enterprise Council,

major corporations are demanding that

the loyalty and trust of our growing and

which is dedicated to supporting and

they and their corporate suppliers utilize

diverse consumer market. That is the

minority-owned businesses.

Profiles in Diversity Journal

January/February 2006

41

Larry C. Glasscock

WellPoint

value supplier diversity brings.

job at WellPoint gives him the oppor-

Our job now is to see that it

tunity to make an enormous and

becomes institutionalized.”

far-reaching difference in the company’s

Her

“All the time, greater numbers of major corporations are demanding that they and their partners make use of diverse suppliers. The concept is out there.”

Brenda Burke Director, Supplier Diversity WellPoint, Inc.

experience

in

the

diverse communities.

Indianapolis mayor’s office has

“Our goal is to help children and

given her a realistic appreciation

families who are uninsured acquire quality

for the time, effort, and resources

medical insurance coverage. Our com-

it takes to institutionalize sup-

mitment is to help children and families

plier diversity effectively.

navigate public and private health care happen

insurance options in a language they

overnight. It takes time to really get a

understand and lead a healthy life,” he

program up and running, especially in a

explains.

“Things

don’t

corporation the size of WellPoint. But it’s worth the effort,” says Ms. Burke.

To do so, WellPoint has identified a set of three interrelated priorities:

“Supplier diversity brings us closer to our

1. Access to care

customers and potential customers and

2. Affordability

has been found to strengthen brand loy-

3. Quality health care initiatives.

alty, customer trust and commitment.”

And wellness for all...

To inform people about their health

Leadership = Responsibility Supporting communities: a core focus for WellPoint

thousands of copies of the Health Care Options Matrix, a comprehensive listing

It is almost impossible not to be

of coverage available through both public

inspired by the obvious passion Dr. Ray

programs and private insurers. WellPoint

Morales feels for his work as WellPoint’s

also maintains a 24-hour uninsured help

director of Social Investment Programs.

line providing health care options advice

Drawn to the medical profession by

in English and Spanish.

a desire to make people’s lives better, his

42

coverage options, WellPoint has distributed

Profiles in Diversity Journal January/February 2006

“Each of these is designed for a

Special Feature

WellPoint

different set of users,” Dr. Morales explains. “But the overall goal is the same: to help people determine whether they

“Our goal is to help children and families who are

qualify for state-supported health insur-

uninsured acquire quality medical insurance coverage.

ance or whether they can afford to buy

Our commitment is to help children and families navigate

into a commercial program. Once they

public and private health care insurance options in a

have the answer, they can start making

language they understand and lead a healthy life.”

decisions about how to take care of themselves and their families.”

He notes that WellPoint deliberately does not promote its own programs

Ray Morales, MD Director of Social Investment Programs WellPoint, Inc.

through these vehicles.

“At this level, we’re really trying to

quality of care people receive.

educational materials that help parents

help people understand the system, to

WellPoint is currently reaching out

and children learn about the simple,

appreciate the kinds of options available

to the 230,000 people who live within

healthy habits they can cultivate to

to

indicates.

the L.A. Housing Authority, circulating a

prevent illness and injuries. These range

“Because many people really don’t know

Spanish/English educational comic book

across issues from childhood obesity and

that they have choices at all.”

by celebrated cartoonist and radio host

physical fitness to smoking cessation

Martha Montoya. The book’s message is

for teens.

them,”

Dr.

Morales

Relieving the burden on the ER

that everyone should find and depend on

Building bridges

a primary medical caregiver.

Emergency rooms offer a clear illus-

“The point of it is this: You need to

WellPoint is also partnering with

tration of this fact. Significant numbers

have a doctor you can go to for routine

the American College of Physicians

of people without health coverage—or

medical issues,” says Dr. Morales.

Foundation to produce a white paper

who lack a clear understanding of the

“Reserve the emergency room for true

advocating for the standardization of

health care system—turn to the ER for

emergencies.”

prescriptions across the United States.

basic medical care. This increases wait

WellPoint works with business

The goal is to reduce medical errors and

times, raises overall system costs, and

partners and policy makers to control the

improve outcomes. Dr. Morales cites a

ultimately has a negative impact on the

costs of health coverage by providing

simple but compelling example to illus-

Profiles in Diversity Journal

January/February 2006

43

Larry C. Glasscock

WellPoint

“We’ve aligned our socialinvestment resources with our business objectives to achieve the greatest possible impact on healthrelated social issues. It’s part of our broader mandate as a company, and I for one am extremely proud to be part of it.”

—Dr. Ray Morales

Looking forward To a future in which diversity management is the norm WellPoint is well positioned to lead the way with respect to diversity management. People are its business, after all, and making diversity a priority within the company will ultimately enable WellPoint to better reflect the

trate why this is necessary.

recently donated $1 million to a

“You might have a prescription

collective of the California Latino

What seems clear from the com-

that calls for a particular medicine to

Medical Association, the National

pany’s experience to date is that the best

be taken once a day,” he says. “The

Association of Hispanic Nurses, LINC

way to implement diversity strategies is

word ‘once’ in English means one

Telacu, and the Hospitals Association

to fully and fundamentally internalize

time. The same word in Spanish

of Southern California to address the

them: to treat diversity management as

means eleven. Obviously, all sorts of

shortage of nurses within the Latino

a standard business practice. By embed-

confusion can arise from something as

community.

ding diversity values and management

“The bottom line is that, from a

approaches directly into its new

In addition, WellPoint is partici-

diversity perspective, we’ve aligned our

corporate culture, WellPoint has done

pating in efforts to encourage medical

social-investment resources with our

exactly this.

students to become primary caregivers

business objectives to achieve the

As David Casey, vice president of

rather than specialists—filling a need

greatest possible impact on health-

Diversity and Workplace Culture,

that grows greater every year. The

related social issues. It’s part of our

sums up: “We’re looking forward to a

company works with the Association

broader mandate as a company, and

time when diversity management is

of Family Physicians to have medical

I for one am extremely proud to be

the norm throughout corporate

students spend time in rural areas

part of it,” said Dr. Morales.

America. We’re proud to be in a position

simple as that.”

shadowing primary caregivers, and

to help lead the way in that regard, to

hopefully to gain a sense of the need

show how you can take action on diver-

and the rewards of working in a

sity and improve the vitality of your

diverse community.

company—creatively and competitively—

On a similar front, the company 44

diversity of the markets it serves.

Profiles in Diversity Journal January/February 2006

as a result.”

PDJ

Interview

Carlton Yearwood Waste Management

Inside Waste Management, Inc. Carlton Yearwood—vice president of human resources, business ethics and chief diversity officer—takes us into the culture of Waste Management and describes the company’s deep-rooted commitment to diversity at every level. If you think this Marine isn’t serious, think again.

W

aste Management, Inc. (WMI) provides integrated waste services in North America.

Through subsidiaries, the company provides collection, transfer, recycling and resource recovery, and disposal services.

Waste Management also develops, operates and owns waste-to-energy facilities in the United States.

The company ranks 168th on Fortune’s Top 500 list for 2004 with total revenue of $13.07 billion and nearly $21.1 billion in assets.

Its almost 100 renewable energy projects produce enough electricity to power more than 800,000 homes and save the equivalent of 8.2 million barrels of oil a year.

Waste Management Recycle America (WMRA) is North America’s largest recycler, handling 5 million tons of commodities each year, saving more than 26 million trees in newspaper recycling alone.

The company’s landfills provide more than 16,000 acres of protected land for wildlife.

About D&I at Waste Management Please give your definition of diversity, of inclusion.

We embrace diversity and inclusion as two sides of the same coin. We’re practical people at Waste Management, so our team doesn’t split hairs about these.

Together, they mean that our people, at every level and location, are always treated with dignity and respect. And that the 48

Waste Management work environment constantly improves at encouraging, allowing and rewarding each person to contribute optimally to their own and our business’ success.

Tell us about your company’s global presence: numbers of employees, international businesses/branches, market share, potential: Waste Management, Inc.’s operations— in the United States, Canada and Puerto Rico—consist of 431 collection operations, 381 transfer stations, 286 active landfill disposal sites, 17 wasteto-energy plants, 119 recycling plants, and 90 beneficial-use landfill gas projects.

Our 52,000 employees deliver excellent service to nearly 22 million customers.

What are the components of your company’s approach to the global workplace? The global marketplace?

Is overall D&I management largely U.S.-based or present throughout the worldwide organization?

We embrace a global philosophy at the local level. Even though Waste Management is a North American company we consciously approach our work knowing that our business universe is extremely diverse. In any of our markets, you’ll encounter several languages, several distinct cultures and value sets. Both our customers and our employees come from these environments. So the sensitivity and understanding our leaders must have are extraordinary. This is the view we instill in our leadership team.

Profiles in Diversity Journal January/February 2006

In today’s marketplace, does your company have any particular challenges to selling or producing your products/delivering services?

Absolutely. We succeed only by being sensitive and responsive to people, community, and social issues. That’s our daily challenge, and it’s a big one. Our issues touch on environmental responsibility—landfills, recycling, and the like.

Not only does everyone have an opinion, but there are layers of laws and regulations that guide what we do.

And our business networks cross North America, with some 21-million customers in diverse communities spread out across the landscape.

People in Waste Management uniforms and vehicles make a visual and physical statement about us each and every day. We want every one of those impressions to be ethically sound, positive for the company, and satisfying to our customers. That really is our substantial challenge. To our great advantage, our profile in the community is solidly diverse. We reflect in most ways the customer bases we serve.

Interview

to work. And we find that these same activities elevate us in the eyes of people who already work here.

How does a company as young/ established/fast-growing/ fast-changing as yours keep up with diversity development throughout the organization?

Communicate clearly. Talk frequently.

Follow through tirelessly. Especially in a business like ours, with many issues competing for attention, it’s essential for people to know your diversity agenda.

Our message about diversity is clear and simple. We talk about it frequently so people know it and embrace it. And we reinforce it constantly.

What challenges do you face with hiring and retaining good people?

Getting and keeping top talent is our highest goal; it’s also our biggest challenge. You know, all businesses are competing for the same human capital no matter what the industry. Success depends on using every innovative business tool we have.

We target the best people in each of the communities we serve. Wherever we do business, our goal is to be considered a neighborhood business. That’s an asset for us—people think of us as a hometown choice. But that fact also places a challenge squarely in front of us: We must stay tuned in to the communities we serve. We need to anticipate how any area may change and forecast that rippling through the available workforce.

We’ve also found that our association with NASCAR on diversity and branding activities has delivered benefits on the people side as well. In reaching out to minority audiences—women, AfricanAmericans and Hispanics—our motorsports initiatives introduce us as a positive company to important segments who may not have considered us as a place

Are there unique opportunities in your particular industry for implementing diversity programs?

Our industry has great opportunities for thoughtful diversity programs to make a difference. Our business geography counts more than 1300 locations where we operate truly as a neighborhood business. Our close to 52,000 employees interact with not only clients and customers, but also with their own vibrant networks of friends, family, and relations. These connections drive deeply into the foundations of local communities. So our diversity successes quickly are reflected in the full fabric of community life. It may be quite obvious, like our spending with local minority suppliers and our payroll contributing to local economies. And it can be less visible, too, like our contributions to improving the quality of life.

Do international issues ever get in the way of corporate support for diversity objectives and processes?

What kinds of strategies does the company employ in dealing with them?

International boundaries and varying

Carlton Yearwood Waste Management

cross-cultural perspectives magnify differences, so core values and behaviors need to be constant. So we are solid—as a leadership team and as a company— around the fundamental understandings of our business. That means that anywhere in our operating territory—anywhere in North America—we treat people with dignity and respect, we encourage each to contribute to his or her full potential, and we do everything under our Code of Ethics.

Do you have any examples of how tapping employee diversity has yielded significant product or profit breakthroughs? Inter-business synergies?

We manage diversity as a strategic tool to directly affect our stakeholders. Our key groups are customers, employees, environment, community, and shareholders.

We see diversity as an important, actively managed agent to reach corporate objectives. That mindset is from the top down as well as from the bottom up.

Corporate Leadership Can you give us a specific example of your company's leadership commitment to diversity? What resources (financial and manpower) are allocated on diversity?

Waste Management’s diversity commitment is clear with our leadership profile.

Five positions on our top leadership team are held by people of diverse backgrounds. I’m absolutely proud to be part of that. But I’m energized even more in knowing that my company has a philosophy of bringing the best people possible to every job. That will inevitably promote diverse individuals into the most challenging work.

My own department is a good case study. When I came to WM about three years ago, I had the charge to build the diversity and inclusion effort. Today, our group numbers close to ten people, each

Profiles in Diversity Journal

January/February 2006

49

Interview

Carlton Yearwood Waste Management

dedicated to pursuing an important part of our overall work.

What qualities do you look for when hiring management? How do you measure attitudes or assess their past performance in diversity/inclusion?

We look for people who anticipate as well as adapt. Managers who are fluid and flexible in style, decisions and performance jump out of the pack. They’re the kind of people we need today. The pace of change is astoundingly quick. The entire operating approach to business can alter seemingly overnight. So individuals who take well to these situations do best.

And we probe intelligently about every person’s commitment to diversity and inclusion. Besides the usual due diligence reference checks, a face-to-face interview quickly tells you the substance of a person. Every key person we hire always talks to several of us first.

Is diversity a linked/compensable annual objective for the executive management team? How do you reward special initiatives? What accountability do you employ to meet objectives?

If you want performance, pay for it. If you want a result, measure it. We do both for diversity and inclusion at Waste Management. As part of an overall annual evaluation that affects compensation, every leader is accountable for objectives he or she sets related to progress on diversity. We have a rigorous measurement program in place called the Ethics and Diversity Inclusion Indicator that clearly lays out results for our executives. And I personally present quarterly summaries of our progress or or lack of it to our leaders and corporate governance group.

How does your organization deal with/train for cross-cultural competencies for its leadership?

Waste Management leaders live and breathe diversity and inclusion. We

50

have workshops and retreats designed specifically to bring our leaders together.

We examine our progress, and test our thinking. But more than anything, our leadership team shapes their ideas and perceptions by sharing time with employees.

We do a lot of walking around our facilities and sites, meeting people, talking with them, understanding their points of view.

Do you create and maintain management continuity rosters for promotable individuals? How do you ensure diversity candidates are included?

Harnessing succession planning is essential; it’s a key change agent. What we’ve done recently is to identify promotable, talented individuals early in their career path.

That’s in line with WM’s culture where every person contributes fully and to his or her highest potential. We review needs and candidates carefully. There can be intervention if somehow diversity and inclusion goals are left wanting—just as attention goes to any business objective that may fall short.

Can you give us an example of a program getting “off track,” and what did you learn from that experience?

Our diversity metric took longer than I would have expected or liked to get traction.

What the team and I learned from that is that people weren’t really getting the connection to the business. Everyone believed measuring our performance in diversity and ethics was critical, but the dashboard we developed defined diversity and ethics in a broader way, which left people a little confused about what we were trying to do. I cannot over emphasize the importance of communication and never assuming people understand your good intentions and hard work.

How are decisions about diversity made in your organization? Is there a diversity council and who is on it?

Profiles in Diversity Journal January/February 2006

Our leadership team models the behavior we want for diversity and inclusion.

Their actions are a beacon for the whole company. Waste Management leaders are continually involved in diversity issues.

I spend a good portion of my time personally explaining, presenting—and even defending—what paths the company should take. This constant interaction at a significant level is important.

But the backbone of our effort is a network of diversity councils that are aligned with each of our operating units, a total of eight. Through these we engage and enroll our 52,000 employees in diversity and inclusion matters. The councils are in touch with employees and local communities and surface those issues which are affecting life and business at the personal level. Each council sets its own agenda, with some overall corporate guidelines in place, of course.

What makes you confident that you and your team have developed momentum for the organization in the right direction? What is the vision for the company in five years?

We keep getting more work! And good people are staying here. We are invited to participate in more decisions, to help other parts of the WM organization use diversity as a way to improve. I’d say that’s validation at the ground level, and it is, frankly, very gratifying to see. As Human Resources leader, I also notice that our workforce is changing, that it is becoming more visibly diverse.

That’s a real payoff to our efforts.

We hope to do more of the same in the years ahead, making Waste Management a recognized and awarded leader.

Employee Inclusiveness How does your company gauge inclusion of employees? What are the tests, measurements and benchmarks that indicate where the company is on the inclusion graph?

Personal Profile

Carlton Yearwood Waste Management

Carlton Yearwood Title, Company: Vice President, Human Resources, Business Ethics and Chief Diversity Officer, Waste Management, Inc. In Current Position: About three years.

Education: I went directly from my high school graduation into the Marine Corps. That was a full education in itself! On returning, I majored in business and innercity studies at the City University of New York. Then I moved into on-the-job learning full-time.

First Job: My first job was actually in teaching. I taught classes about government to both high school students and other teachers. The perspective you have as a teacher—that there’s something to shine in every person—is something I carry with me even today.

Philosophy: Make the most of your opportunities . . . clear and simple. Life brings only so many chances to move ahead. Some you make happen yourself, others come by other avenues. But jump at every opening to make a difference, to move toward new horizons.

Sure, there’s often discomfort involved. You move from a secure, safe, and recognized position to someplace where you need to prove yourself again. That’s how you grow, both as a person and as a contributor.

What I’m Reading: Frankly, mostly Blackberry messages! But I do like to keep pages open on a couple of books at any one time. One popular business tome I’d recommend is The World Is Flat by Thomas Friedman. It’s an eye-opener about the impacts of global diversity on everything we do. Another is The Art of the Strategist, by Bill Cohen, who’s a retired Air Force major general. Good direction on creating objectives and achieving them.

Family: My family is my refuge, my inspiration and cements me to what’s real. Like a lot of people in my position, I’m on the road a lot.

And my wife is professionally active in her career, too. So we make time almost every day to talk about the binding connections in our lives. These days, it mostly means chatting about the adventures of our daughter as she ladders up through school. But both our families are blessed with colorful relatives, so we always have “Guess what Auntie did last week” stories to share.

Interests: I find being near water both invigorating and calming at the same time. I know, it’s a paradox. So sailing is high up on my free-time list. We enjoy doing it as a family. We also find foreign travel a good investment of our time. It’s fraught with hassle, but visiting another country is simply not like reading about it. Usually, you learn more on the cab ride from the airport than from any textbook or travel guide. And I do enjoy food, both eating and cooking. Unfortunately, that also demands becoming a regular at our local work-out club.

Childhood Hero: I put Vince Lombardi on a pedestal when I was growing up; he’s still there for me now. He possessed a unique collection of traits in building teams, motivating performance and winning challenges. That’s really a lot about what we do both in business, and back at home.

Favorite Game: Well, with a legendary coach as a hero, it shouldn’t be surprising that I do like to catch a professional football game on TV whenever I can. I'll admit to being a Monday Night Football junkie.

Lunch Guest: Colin Powell would be my hope for a dream table companion. Imagine spending two hours or so with this gentleman where he could share informal stories about these recent years of history, even if he’d have to leave out many names! In a time when so many public leaders are stained by their own personal choices, he stands out for being honest to himself, his friends and family, and his country.

“Best” Film/Art: Our household enjoys art in its many forms, but I’m no artist, for sure. Both the Museum of Contemporary Art and the Samuel Akainyah art gallery are located in Chicago. They both have wonderful multicultural collections, and both indoor and outdoor exhibits. Every visit there we find some artwork that challenges our senses or perceptions. To attend an unveiling at Akainyah Gallery is a history lesson, an art appreciation lesson, and a draw on your emotions. They are all indescribable and unique.

Profiles in Diversity Journal

January/February 2006

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Interview

Carlton Yearwood Waste Management

Our managers have precise, measured, and comparable information about diversity.

An important tool we’ve developed is the Ethics and Diversity Inclusion Indicator.

It gives our managers—and our leaders— specific insights about their progress in key diversity, inclusion and ethics dimensions. Our people understand it because we talk about the same things—the same six specific measures—at every point in our company, from the board room to operating sites. It really helps our people understand the complex web of relationships that is the basis for all that we do.

Yet, sometimes diversity is referred to as a “numbers game.” How does your company know its culture is not just tied up in numbers? How do the human stories circulate in-house and how do you celebrate success?

Numbers can be great, but negative “buzz” stops things dead. So we take care to grow our diversity and inclusion culture on solid perception, good communication, and positive motivation.

I interact personally with as many people as I possibly can—at all levels. Believe me, people jump at the chance to tell you something’s not right. Or to compliment an effort that’s going well. I encourage everyone on my staff to get networked in the same way, to get involved with other

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employees everywhere. And on occasion, we bring people together around an event. We put together a Minority and Women Network Conference a short time ago—the first ever company-wide gathering. The feedback was great! It elevated our work, and people started to think about how our work could help them do their job. That’s perfect.

Are employees more involved in the company than they were two years ago? In what ways?

Everything we do is designed to engage our people around diversity in thoughtful ways. In the years I’ve managed the function, we’ve elevated diversity and inclusion substantially. We have bestin-class programs that involve people meaningfully in activities that relate to their work and life. Our people reach out to partners nationally and locally, becoming players in decisions beyond our business walls.

How are their opinions solicited and valued? Do you have an employee suggestion box system, and who monitors and responds?

People’s voices need to be heard, so we encourage it. We look first to our Integrity Help Line. It’s a component of our Ethics and Diversity Indicator

Profiles in Diversity Journal January/February 2006

process, and an immediate gauge as to any ‘hot spots’ in the company. We also have a new employee idea program called WMIdea XChange that helps drive collaboration deeper into the organization—all the way to the front line. Our corporate culture is an open-door one that encourages people to simply walk-in and talk. That’s what generates honest communication and ideas that we can act on.

Have you encountered/how do you deal with those who perceive inclusion programs for underrepresented groups as being exclusionary for others?

When your top focus is encouraging success, people don’t undermine that.

We really don’t encounter much of this nay-saying about our work. And I believe that’s because the benefits are obvious and relevant to our company and people.

Please describe your method for orienting new hires into your culture, for enriching employees’ awareness or introducing new issues.

My job is as much about orienting the company to cultural diversity in our markets as it is about successfully including people from our markets in the business.

It’s a two-way proposition. To build

Interview

Carlton Yearwood Waste Management

Carlton Yearwood with team members Dawn Ripley, senior manager corporate staffing, and Derrick Hanilton, director strategic staffing.

employees’ awareness of our culture, we’ve developed materials and training that acquaint them with behavior expectations. We rely to a good degree on our published Code of Conduct, which our group reviewed and reissued a short time ago. We have an orientation module focused just on it, for example. But we expect new people to bring into the company new perspectives and approaches that will help us evolve organizationally into an ever-improving business.

Can you name specific ways your company supports upward development toward management positions?

We support people challenging themselves personally and professionally. We have a system—both formal and informal —that encourages people at every position within Waste Management to seek continual improvement. Besides having job postings and internal job fairs, our annual review process builds in ways to assess training that people want and need and to recommend moves in the organization that would build a person’s skill set.

How does the company include women and minority employees into the fabric of the organization?

Women and minorities weave into our corporate fabric through performance,

contribution, and teamwork—like everyone else. Our culture encourages every employee to grow, and we take every effort to make that philosophy work. We do help in a number of ways. One is by encouraging formal and informal networking where people can learn from others, develop mentoring relationships, and get on the road to acquiring the personal tools each needs for success.

Supplier/Community/ Customers What is the company’s commitment to minority suppliers?

Waste Management’s Supplier Diversity Program is sound strategic business. It helps us and our partners grow. We have a future goal of a ten percent spend rate with these firms. We’re not there yet, but we are making progress each quarter.

How do you educate/promote diversity and inclusion for vendors, customers, or the general public?

Outreach is not enough for supplier diversity; you need to nurture these businesses as potential partners. So beyond the usual initiatives like vendor validation and Web site sign-up, a key element in our Supplier Diversity Program is our

topline approach: We look at how diverse suppliers might help us maximize our own business opportunities. This means, then, that we work closely with firms.

We show them how to work with us, where they may need to improve product and process. And, for some, we even mutually agree to a timeline with some benchmark achievement targets.

Executive-Professional Profile Where does your personal belief in diversity and inclusion come from: who were your role models, or was there a pivotal experience that helped shape your view?

My commitment is simply a big part of who I am. I can’t say that I’ve experienced any singularly defining moments about diversity and inclusion. But I’m both an involved participant and an acute observer of all that’s gone on in business diversity for close to 30 years. I’ll say that at the core I have strong values about equality, worth, and opportunity. But every day brings circumstances that test those beliefs in varying and sometimes unique ways.

How did you get to your present position? What was your career path?

Profiles in Diversity Journal

January/February 2006

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Interview

Carlton Yearwood Waste Management

Carlton Yearwood and Steve Neff (left), vice president, strategic business development, collaborate on marketing programs that ensure continued commitment to the company’s diversity and inclusion efforts.

My path to this position came from other good jobs at other excellent businesses, Allstate and PriceWaterhouseCoopers.

At both of those companies, I managed diversity groups and activities. The experiences were all gratifying, rewarding, and certainly challenging. I use what I learned in those earlier jobs every day.

When the position at Waste Management was offered to me, I accepted because it seemed to be both a cultural fit, and one in which I could contribute significantly.

Who were/are your mentors? What about their business skill or style influenced you? How did they help in your professional and personal life?

Are you mentoring anyone today?

Without hesitation, my Mom had the greatest effect on my life in a lot of ways, and that’s saying something from an ex-Marine. Not that my Mom ran a boot-camp at home. Not at all. She always encouraged me to push myself, to make the most of my ability. She instilled a value system of what’s clearly right and what’s clearly wrong. And that working hard is just fine. I remember telling my mother one morning, in an attempt to skip school, that my back hurt. Her

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response was I didn’t have a back, that I only had gristle back there, that only people who worked had a back. I remember that as if it was yesterday. What she was telling me is that working hard builds character and strength.

What business books or journals do you read regularly or recommend for aspiring leaders?

Profiles in Diversity Journal, for sure! It’s important to stay on top of things in business, the profession and your industry—whatever it may be. So the right mix of periodicals is going to vary, but Harvard Business Review and Fortune or Business Week should be part of the mustreads every issue. A good book I’d recommend right now is The World Is Flat

by Thomas Friedman. It’s an eye-opener about the effects of global diversity.

I also love How to Think Like Leonard Da Vinci by Michael J. Gelb. It is about finding and unleashing one’s own genius. I think it is great. Most recently, I have been recommending The Medici Effect by Frans Johansson. We are putting this on our reading list for diversity councils.

It is an excellent piece on diversity and innovation.

Profiles in Diversity Journal January/February 2006

How would you describe your concept and style of leadership?

Think boldly, commit personally and act accountably. Diversity needs to move ahead with agendas larger than the traditional. Most often, you can do this yourself.

So do so. And then stand by the results.

What are your specific responsibilities for advancing diversity and inclusion in your organization? What are the strategies you employ to move inclusion forward?

It’s important to create ways that leaders and managers can personalize diversity and inclusion. That means bringing activity to a level that individuals can relate to and implement. So our processes at Waste Management place a premium on finding ways to engage people in what we’re doing, and then to enroll them as individuals who can change things for the better.

Have you any “mottos” to rally your team regarding D&I? Look your work in the eye every morning.

Interview

Carlton Yearwood Waste Management

How have you modeled your company’s diversity and inclusion initiatives in your own team selection, management or development?

You do have to “walk the talk.” It’s essential that leaders model behaviors you want the organization to have. So, yes, I’ve taken that into mind when staffing my team. Everyone who works on the diversity and inclusion group is a big evangelist for our philosophy, both in word and action.

How are you as a manager measured in terms of performance? Is your compensation related to diversity performance?

We measure for results and pay for them.

Like everyone else at Waste Management, my performance is measured against very specific objectives. And my compensa-

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tion is based on those results. That’s why you need to develop a process that builds confidence. We’ve done that.

What has been your proudest moment as leader in this company?

I hope I haven’t experienced my proudest moment yet. I want to believe that my next contribution to leadership is going to be my best.

Are there particular areas or employee sectors you feel still need improvement?

Every organization should improve constantly. We take that to heart at Waste Management. I recently spent time with our employees in New Orleans, dealing with the many needs there from Hurricane Katrina. I was overwhelmed with the generosity, good will, and easy

Profiles in Diversity Journal January/February 2006

communication. Those are traits I want to extend more earnestly throughout our company’s diversity and inclusion work. I’ll find a way.

Do you have any words of advice to anyone who wants to rise in their organization? What do you say to people you mentor?

Believe in yourself and in your potential to change yourself and to make change happen. Good things happen in business when people have an idea, commit to it, and then make it a reality. There’s a wealth of meaningful diversity and inclusion activity that has preceded you.

Build on it. Improve it. Use it as a thoughtful legacy to launch yourself.

PDJ

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JOHN M. BELL

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STATE FARM INSURANCE

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A DIVISION OF PEPSICO

DONALD DUGGAN

BANK OF THE WEST

MONICA E. EMERSON

DAIMLERCHRYSLER CORPORATION

EMERSON U. FULLWOOD

ALBERT L. GAYLOR

XEROX CORPORATION

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GLORIA JOHNSON GOINS

TIANE MITCHELL GORDON

BOB HAGANS JR.

THE HOME DEPOT

AMERICA ONLINE, INC.

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KEVIN N. HILL EXCELLUS BLUECROSS BLUESHIELD

TERRY HOWARD

TEXAS INSTRUMENTS

GERALD JOHNSON

GENERAL MOTORS

MARCIA JOHNSON

SOUTHERN CO.

EVON JONES

BAUSCH & LOMB

LEE KARBOWSKI

NORTHROP GRUMMAN

PAUL D. MCKINNON DELL INC.

BRENDA J. MULLINS

AFLAC WORLD HEADQUARTERS

D. ERIC POGUE

AMERICAN RED CROSS

GEORGE PYNE

NASCAR

STEPHEN W. ROCHON

SONYA V. STEWART

KAREN D. TAYLOR

U.S. COAST GUARD

LOCKHEED MARTIN

RELIANT ENERGY, INC.

MICHAEL A. WATSON

NEW YORK LIFE INSURANCE COMPANY

SHEILA W. WELLINGTON

NEW YORK UNIVERSITY,

LEONARD N. STERN SCHOOL OF BUSINESS

ANISE D. WILEY-LITTLE

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ALLSTATE INSURANCE COMPANY

Profiles in Diversity Journal January/February 2006

Profiles in Diversity Journal January/February 200

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Bob Hagans Jr. CHIEF FINANCIAL OFFICER AARP

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uring Black History Month, I look for inspiration to leaders who develop their own path where no path exists; who maintain their integrity and resilience in the midst of adversity and obstacles; and who have true vision for our future. Of the three leaders who immediately come to mind, two are wellknown to everyone—Nelson Mandela and General Colin Powell.

The third, Robert Randall, is not familiar to most people, but he has had a profound effect on my life and leadership style. Born in 1922, he graduated first in his high school class and was awarded a four-year scholarship to Yale University, where he was the only African American in his class. The support of his family and community made it possible for him to endure racism. He graduated with a bachelor’s degree in mathematics and became an officer in the Air Force with the famous 99th Squadron in Tuskegee, Alabama.

Mr. Randall returned to civilian life and in 1952 became the first African-American actuary in the United States and the first African American to achieve the status of Fellow with the Society of Actuaries. He was the first African-American employee of Mutual Life Insurance Company of New York, a vice president and actuary of the Equitable Life Insurance Society, and he founded and served as the first president of Intra-American Life Insurance Company of New York. There are as many as 100 African-American actuaries today in the United States and Mr. Randall was truly a trailblazer for them all.

Brenda J. Mullins SECOND VICE PRESIDENT, HUMAN RESOURCES, DIVERSITY OFFICER AFLAC WORLD HEADQUARTERS

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r. Martin Luther King Jr. was one of the most influential visionaries of the 20th century. He dreamed of an America where equality existed for everyone.

At Aflac, our commitment to diversity reflects Dr. King’s dream.

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Profiles in Diversity Journal January/February 2006

As our nation prepares to celebrate Black History Month, Aflac recognizes the significant contributions that African Americans have made to corporate America. We’re ever mindful and supportive of the efforts of Dr. King and others who paved the way for justice and equality.

Aflac Chairman and CEO Dan Amos is the 2004 recipient of the Dr. Martin Luther King Jr. Unity Award presented annually at the MLK Unity Breakfast held at the Columbus Convention and Trade Center in Georgia. In accepting the award Dan Amos said, “We must always remember the magnitude of Dr. King’s contribution to this country.”

In January 2005, Aflac announced a $1 million gift to the Martin Luther King Jr. National Memorial Project Foundation to construct a memorial commemorating Dr. King’s life and work.

To preserve the rich heritage and culture of African Americans, Aflac presented a $1 million check in June 2005 to the National Museum of African American History and Culture, which will be located on or near the National Mall in Washington, D.C.

Anise D. Wiley-Little DIRECTOR, DIVERSITY AND WORK LIFE ALLSTATE INSURANCE COMPANY

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s a black woman in corporate America, I have choices and opportunities that did not prevail in my parents’ generation.

Many strong black Americans have paved the way for me to reach as far as I desire. This freedom of opportunity and choice allows me and my husband to set the tone for the freedom of choice for our son and daughter. They are limited only by the choices they make and not by those making choices for them. I remind my children that black history should be celebrated each and every day that they wake up in a free America and make a choice about how they live their lives.

There are many African Americans to admire who have stood strong to share their art, vocal abilities, business skills and numerous other talents. I cherish each of them for giving me what I have today. But, most of all, I admire my father, a finance executive, who never allowed me not to achieve because of my gender or the color of my skin—a man who grew up at a time when the Little Rock Nine stood up to the burning lights of the media cameras and the jeers and taunting of those not wanting them to have equal opportunity through education.

MFHA 10TH ANNIVERSARY CONFERENCE CELEBRATE A DECADE OF DIVERSITY AUGUST 6-8, 2006 • HYATT REGENCY • BOSTON, MA 1996 • Gerry Fernandez, a General Mills executive, gathers 17 companies to form an organization dedicated to the advancement of people of color in the industry

1997

• Magaly Penn, formerly of Denny’s, named MFHA’s first

1998

• MFHA hosts its inaugural National Conference in Atlanta

1999

• First Diverse Supplier Directory published for the

2000

• Showcase of the Stars™, an industry career exploration

2001

• The Coca-Cola Company and Nation’s Restaurant

2002

• Joe Lee, Chairman & CEO of Darden Restaurants, wins

2003

• Alice Elliot, CEO of the Elliot Group, chairs CEO Panel at

2004

• Bill Groux, CEO of Retention Education, launches Sed

2005

• Pat Harris of McDonald's passes the torch of leadership

2006

• Celebration of the 10th Anniversary Conference

Chair

foodservice and hospitality industry

program for students, launched in Chicago

News pilot a Benchmark Survey of Diversity Practices

the Ernest H. Royal Pioneer Award

MFHA’s inaugural Symposium in Dallas

de Saber (electronic ESL kit) at MFHA’s national conference in Washinton DC

to incoming Chair Catalina Ganis of The Elliot Group

For more information visit www.mfha.net

D. Eric Pogue SENIOR VICE PRESIDENT, HUMAN RESOURCES, CHIEF DIVERSITY OFFICER AMERICAN RED CROSS

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he advent of Black History Month 2006 highlights the opportunity to reflect on the contributions of those who helped bring us this far. The list of leaders from all walks of life is long and continues to grow because of the actions of those who have gone before us.

One of the things I particularly enjoy doing is spotlighting the accomplishments of selected leaders with my college-age son. Part of the significance of this month for me is to identify these role models to my son as examples of the limitless possibilities of careers he ultimately may choose. I point to contemporary leaders, such as Ken Chenault from the private sector and Barack Obama from the political arena. At the same time, I like to talk about Ossie Davis from the entertainment industry and Dr. Charles Drew from the medical field. This is how we emphasize history and pave the way for ever greater developments.

Tiane Mitchell Gordon

about education. My parents almost named me Mary Bethune so that her spirit of service would be with me. It is anyway.

Donald Duggan EXECUTIVE VICE PRESIDENT AND CHIEF TECHNOLOGY OFFICER BANK OF THE WEST

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any African-Americans have had a profound impact on our society, and it’s important for us to remember their contributions. Despite all of the challenges and obstacles that they encountered, they remained committed to their goals for social change and equality.

Let us make sure that we’re providing role models and success stories for our children. It’s important for them to know that the color of their skin should not impede their ability to set and reach goals and to be successful in life.

We also must continue to push for equality in the workplace.

Individuals should be judged on their contributions to their organizations and not by the color of their skin, their nationality or their gender. Our society should strive to display the same strength, commitment and patience that Dr. Martin Luther King Jr. showed during his campaign for equality for all people.

VICE PRESIDENT, OFFICE OF DIVERSITY AND INCLUSION AMERICA ONLINE, INC.

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n the 50 years that I’ve been on this planet, I’ve seen a lot of change. That change has come because there are people who put stakes in the ground.

During Black History Month and throughout the year I ask myself, “Am I living a life worthy of the sacrifices that others have made before me?”

One leader I emulate is Mary McLeod Bethune, the educator who founded BethuneCookman College. The youngest of 17 children born to former slaves, she devoted her life to ensuring education for black Americans—particularly African-American girls in the South. A woman of grace and deep faith, Mary Bethune overcame great challenges to improve the lives of others. She spoke at my mother’s high school graduation and this ignited my mother’s own passion

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Profiles in Diversity Journal January/February 2006

Evon Jones CIO BAUSCH & LOMB

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he contributions of African Americans are present every day of the year. Black History Month reminds us to pause and consciously reflect on our history and contributions to society.

This year marked the passing of Rosa Parks, an ordinary person who made an extraordinary difference, bringing to the forefront of our consciousness the impact that one individual can have on an entire society. She acted on what she believed. The lesson here is that we all can make a difference regardless of who we are.

U.S. dignitaries such as Colin Powell and Condoleezza Rice, the former and current secretary of state, demonstrate the

influence African Americans can have on the world stage. They motivate us to achieve, and they confirm that we can.

The field of African-American leaders is vast and rich. I try to emulate a little of the greatness of each—from the leadership of Dr. Martin Luther King Jr. to the focus and determination of Marcus Garvey.

During Black History Month, I spend time educating my children about our rich history and contributions. It’s important for them to know about the journey taken, not only by AfricanAmericans, but also by society as a whole, to get us where we are now. Black History Month reminds us of how far we’ve come and how much we can contribute going forward.

Monica E. Emerson EXECUTIVE DIRECTOR, CORPORATE DIVERSITY OFFICE DAIMLERCHRYSLER CORPORATION

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ove is the only force capable of transforming an enemy into a friend,” Dr. Martin Luther King Jr. once said.

These few words strung together so eloquently form a prophetic statement.

Dr. King’s contribution to society symbolizes what can be accomplished with one person’s determination. He courageously led the cause for civil and human rights driven not by hate for those who lacked understanding, but by his unquestionable love for all people, regardless of difference.

Black History Month is a time to focus and reflect on the contributions that all Americans have made to shape our nation’s rich history. Individuals and groups—all with different backgrounds but working together—have produced amazing inventions, great technological advances, and extraordinary feats of accomplishment.

Dr. King’s principles exemplify the level of cooperation and understanding that is needed to succeed not just in business, but in society as well. His work has inspired me to lead by example and leave a legacy built upon the foundations of community that I can call my own. “

Paul D. McKinnon SENIOR VICE PRESIDENT, HUMAN RESOURCES DELL INC.

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ell’s commitment to diversity is integral to our corporate values year-round.

However, we are especially mindful of the importance of our diverse workforce, suppliers, customers and community partners when we celebrate Martin Luther King Jr. Day and Black History Month.

By continuing to drive diversity initiatives throughout Dell, we unleash each individual’s full potential, provide a superior customer experience, tap the best and brightest talent, improve operating results, become a better place to work and further our global citizenship efforts in the many cultures we call home.

Much of the credit for Dell’s culture of diversity and appreciation for the African-American community belongs to the black leader that I most admire, my friend and colleague, Thurmond B. Woodard, Dell’s chief ethics and compliance officer and vice president of global diversity. As the catalyst for diversity at Dell, Thurmond ensures that our approach to diversity is global in its inclusion and in its respect for the many people and cultures we encounter every day through our business operations worldwide.

Thurmond combines the principles of doing what’s right with doing what’s smart business. He has galvanized our internal belief that in order to be a successful company and a great place to work, Dell must leverage the similarities and differences of all team members.

This is my tribute to Thurmond and to all wonderful black leaders who have and continue to help build the greatness of corporate America.

Kevin N. Hill PRESIDENT AND CHIEF OPERATING OFFICER EXCELLUS BLUECROSS BLUESHIELD

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his month we honor many remarkable men and women who have made groundbreaking contributions. Among them is General Colin Powell, a visionary who inspires me, not

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Profiles in Diversity Journal January/February 2006

only for his many great contributions to our country, but also for his thought-provoking observations.

General Powell once said, “Organization doesn’t really accomplish anything. Plans don’t accomplish anything, either. Theories of management don’t much matter. Endeavors succeed or fail because of the people involved. Only by attracting the best people will you accomplish great deeds.”

This principle lies at the core of Excellus BlueCross BlueShield’s values. For us, diversity is a compelling business priority. We recognize, respect and appreciate the valuable and different perspectives that each of us brings. Our goal is to create an environment that maximizes the contributions of all employees and to make sure that diversity is woven into all of our day-today business practices. Treating each individual with dignity and respect is a commitment we make to our employees, our customers and the communities we serve.

This month, as we celebrate the accomplishments of now familiar names and faces, Excellus BlueCross BlueShield gratefully acknowledges the accomplishments of the heroes in our work force.

Gerald Johnson MANUFACTURING MANAGER, CHAIR OF THE GM AFRICAN ANCESTRY NETWORK GENERAL MOTORS

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he month of February is one of celebration among members of the GM African Ancestry Network (GMAAN), one of nine internal affinity groups formed at General Motors to create professional development opportunities for group members and to serve as an information resource to the corporation on issues that affect each constituency. Affinity groups play an important role in the success of GM as a global corporation.

GMAAN has several events planned for Black History Month.

These include increasing awareness of great African Americans using GM’s closed-circuit TV, featuring guest speakers at the Lunch & Learn series, displaying African-American art, and showcasing soul food items on cafeteria menus at participating GM locations throughout the country. Highlights of the month also include an essay and coloring contest for GM employees’ children and a wrap-up celebration at the Charles H. Wright Museum of African-American History, the largest museum of its kind in the country.

Black History Month honors the African-American leaders who have contributed to the strength of this nation. I have 66

Profiles in Diversity Journal January/February 2006

always admired the strong leadership qualities of General Colin Powell, former U.S. secretary of state. His ability to lead under duress has had a great impact on my capability to face the many opportunities and challenges in leading seven GM manufacturing facilities.

Gloria Johnson Goins VICE PRESIDENT OF DIVERSITY AND INCLUSION THE HOME DEPOT

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rom a professional standpoint, Black History Month should be a time to develop and implement company events that showcase the contributions African Americans have made to our society. In addition, it is an opportunity to bring key community leaders inside the company to share their viewpoints.

Personally, I like to take this time and reflect on my accomplishments and then focus on the values that I want to impart to my children.

If there is one black leader I emulate, then I would say it is Oprah Winfrey. She is a self-made success—perhaps the most notable television personality in our lifetime—yet her generosity to everyone she encounters is so visible and admirable.

I think it is important to commemorate black history yearround because black history is American history. There are innumerable accomplishments by African Americans whose contributions have benefited our country and the entire world. For instance, an African American was the first person to successfully perform open-heart surgery. There are many facts like this one that are not common knowledge, and it is important to have a full understanding of these significant accomplishments.

Sonya V. Stewart PROGRAM DIRECTOR, GLOBAL MISSION SOLUTIONS, TECHNICAL OPERATIONS LOCKHEED MARTIN

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here is not one black leader who informs me, but many, each at different times and circumstances. For me, the celebration of black history

transcends the pages of books, intellectual knowledge and special celebrations, as it has become a living spirit within me.

All the black leaders of yesterday and today inform and inspire me as I seek to emulate the best of each. Dr. Charles Drew inspires tenacity and dedication when the solution seems elusive.

Madam C. J. Walker redirects focus onto the value of the practical coupled with creativity to enrich the bottom line.

General Colin Powell and Oprah Winfrey offer a primer on retaining one’s character and values while negotiating a seat at the table of power, influence and wealth.

I aspire to the vision of leadership, character and excellence exhibited by my ancestors. Dr. Martin Luther King Jr. articulated the vision for leadership in his 1957 speech, “Facing the Challenge of a New Age.” He said that we need “intelligent, courageous and dedicated leadership … leaders not in love with money but in love with justice; leaders not in love with publicity, but in love with humanity; leaders who can subject their particular egos to the greatness of the cause.”

By faith, I am the hope for which my ancestors lived; and by faith, I am laying the new road over which future generations will travel. For they are the hope for which I live today.

George Pyne CHIEF OPERATING OFFICER NASCAR

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ASCAR’s biggest event, the Daytona 500, coincides with Black History Month, which allows us the opportunity to celebrate on a large stage. We use the opportunity to raise awareness about the contributions of African Americans in NASCAR and the opportunities that exist today for participation in the sport as prospective employees, partners or fans.

The black leaders most admired and emulated are the athletes who have been leaders in their respective sports and in life, setting examples for all of us. First, in our own sport, Wendell Scott, who drove in 495 races over a 12-year career, was a pioneer and earned the respect of his fellow competitors. Earvin “Magic” Johnson, who serves with me as the co-chair of

NASCAR’s Executive Committee for Diversity, redefined the NBA, became a leader on social issues and is a remarkable businessman. The others include Arthur Ashe, Frank Robinson and Ozzie Newsome.

It is important to commemorate and recognize the values of Black History Month not only in February, but also throughout the year, because diversity makes our sport better and makes all of us as a community better.

Michael A. Watson FIRST VICE PRESIDENT AND GENERAL COUNSEL NEW YORK LIFE INSURANCE COMPANY

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ince childhood, I have always paid particular attention to programming that told the stories of famous African Americans. I was proud that New York Life Insurance Co. was the sole sponsor last February of the PBS series, “Slavery and the Making of America,” which put the notion of slavery at the epicenter of the founding of the United States. As author James Horton said when asked about the series, “Slavery was no sideshow; it was the main event.”

As a lawyer, I emulate Justice Thurgood Marshall, the first African American on the U.S. Supreme Court, and his teacher Charles Hamilton Houston, who taught us to use law as a means to social change. I live and work by Houston’s philosophy, “A lawyer who is not a social engineer is a parasite.”

I take daily inspiration from Frederick Douglass, who was born a slave and rose to become a counselor to two U.S. presidents— Abraham Lincoln and Ulysses S. Grant. I also admire the work of the Rev. Jesse Jackson, who revolutionized the American political scene by proving that an African American could be a credible candidate for the U.S. presidency.

Sheila W. Wellington CLINICAL PROFESSOR OF MANAGEMENT NEW YORK UNIVERSITY, LEONARD N. STERN SCHOOL OF BUSINESS

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am the least athletic person I know. I do not swim. I do not ride a bike. I do not play

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Ping-Pong. Yet, the hero that I choose for Black History Month, for any month, is Jackie Robinson.

When I was that nonathletic little girl growing up in New York City, my older brother took me to a Dodgers game at Ebbitts Field. He told me to applaud when he did and to yell, “Yea, Jackie,” whenever he did. When the Dodgers came out on the field, half the stadium booed and cursed and threw things onto the field. The other half cheered. My brother and I cheered.

I got the picture of what was going on pretty fast. Jackie Robinson was the one black man out there, the object of all the commotion. I can remember that sight to this day. To my utter amazement, Jackie Robinson did nothing. He was an island of calm and purpose. He just played baseball.

What a feat of heroism! By not responding to the jeers in the crowd, the petition that his fellow players circulated against him, the death threats he received in the mail, Jackie Robinson changed baseball and began a process that changed America.

That process, of truly diversifying this nation, remains incomplete. But for those of us who began our commitment to equal rights so long ago, it remains a challenge ignited on a baseball field by a man who looked hatred in the face and gave us lessons in courage and diversity.

Lee Karbowski INFORMATION TECHNOLOGY’S DIRECTOR OF WORKPLACE RELATIONS AND DIVERSITY NORTHROP GRUMMAN

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n light of Rosa Park’s recent passing, this courageous black leader comes to mind as one of the many leaders I emulate. In the words of Rosa Parks, “Our mistreatment was just not right, and I was tired of it.”

Indeed, Rosa Parks’ frustration over racial inequalities and the overall treatment of black people sparked the civil rights movement, which led the way to freedom for all.

Her courage, devotion and vision for a better America encourage the people and leaders of our organization to be inclusive and to do the right thing.

One of our company values is the inclusion of all people.

We have an environment where these values are displayed by everyone, each and every day. It is important to celebrate the legacy of Rosa Parks and all civil rights leaders not only during Black History Month, but also as we carry on their legacy in all aspects of our lives.

Northrop Grumman’s strong commitment to work force diver-

sity encourages inclusion of all people by maintaining a work environment supported by policies and procedures that foster a nondiscriminatory workplace. The strength of our company is greater than the sum of its extraordinary parts— people, customers, suppliers and communities—combining to form a synergy of diversity that promotes innovative thinking.

John C. Compton PRESIDENT AND CEO QUAKER-TROPICANAGATORADE, A DIVISION OF PEPSICO

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t PepsiCo, we strive to recognize the accomplishments of our past, present and future African-American leaders by integrating diversity and inclusion into every fiber of our business and values. As CEO of PepsiCo’s QTG division, I’m extremely proud to serve as executive sponsor of our AfricanAmerican employee networks. Our networks have a voice at the table, helping to make our associates heard and our business stronger.

One particularly inspirational leader was Harvey C. Russell, former PepsiCo executive. Harvey’s ascension to his position as one of the first African-American vice presidents of a Fortune 500 company caused the Ku Klux Klan to organize a national boycott against Pepsi. The company held fast, standing by Harvey and its decision.

To honor Harvey’s passion for corporate citizenship, PepsiCo’s annual Harvey C. Russell Award recognizes employees and partners who have demonstrated excellence in advancing diversity and inclusion.

But it’s not just Harvey’s story that’s so inspiring. There are African-American heroes everywhere—and many of their stories have yet to be told. They’re quietly carrying forward with the courage and conviction to shape our collective future.

Karen D. Taylor SENIOR VICE PRESIDENT, HUMAN RESOURCES, AND CHIEF DIVERSITY OFFICER RELIANT ENERGY, INC.

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hen my son was in grade school, he selected a black leader to research for Black 70

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History Month. His selection of Dr. King caused me to read the famous speech, “I Have a Dream,” joining the many thousands of people who have read those words and heard the passion for equality, felt the pain of past wrongs and joined the call to the nation to deliver upon its most basic promise—freedom. And for the first time, I was able to reflect on how Dr. King has influenced my own personal and professional life.

Growing up in North Louisiana in the ’60s and ’70s, I experienced firsthand some of the changes that Dr. King championed. I was in high school when the predominantly white and black high schools were integrated. Prior to that time, I had known only one person of color who was my age. I did not realize until then how narrow my experiences and relationships had been.

And now, as a professional, I have a strong commitment to learning about other cultures, sharing those discoveries with others and making a difference in my own life and work force.

At Reliant Energy, we aspire to Dr. King’s dream for his own children—that we might live and work “. . .in a nation where they will not be judged by the color of their skin but by the content of their character.”

Marcia Johnson CHIEF DIVERSITY OFFICER SOUTHERN CO.

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uring the 1960s, I started to understand that how history is told is based on who is telling it. I learned that major events could be distorted or even omitted in accounts of history.

Just as African-Americans own the telling of our history, we own the power to connect past, present and future. We own the responsibility for our children and their children knowing their heritage. We own a legacy of greatness, intellect, courage, vision, perseverance and resilience as we write tomorrow’s history today.

Weaving the true history and vast contributions of AfricanAmericans into the rich fabric of the American story is essential to any telling of U.S. history. Black History Month highlights our history for a concentrated period of time. The real power of our history takes place not only as we tell it, but also as we make it and shape it through our daily actions.

Black History Month is a limited time that highlights unlimited pride in who we are as a people. It is a public testament to the daily private acknowledgements of many ordinary people who

make extraordinary contributions. For me, it is a time to be reenergized by the work and life of people like Nannie Helen Burroughs. It is a time to be buoyed by her motto for the school she founded: “We specialize in the wholly impossible.”

Willie Brown EXECUTIVE VICE PRESIDENT STATE FARM INSURANCE

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o celebrate Black History Month, I listen to speeches of Dr. Martin Luther King Jr. In hearing his voice and his words, I know that his heart was free of hate and full of good will and love for all. I also honor Black History Month by helping others become the best they can be. The more people I can help, the more joy it brings to my heart.

Obviously, I admire leaders such as General Colin Powell, the late Ron Brown and the late Barbara Jordan, but I’ve only seen them on television or read about them. The person I try to emulate is a colleague of mine, Greg Jones. Greg started at entry level at State Farm and is now a senior executive in charge of State Farm’s California operations.

While working at State Farm, Greg put himself through college, earning a bachelor’s degree and MBA. He worked hard to learn the insurance business, the art of leadership and how to develop people. Greg did all this with grace and dignity.

Throughout his career, Greg has never stopped reaching back to lend a helping hand.

Black history is American history. We can’t talk about or study American history without including black history. American history is replete with the good, the bad and the ugly of what makes America the greatest country ever. America wouldn’t be America without the many significant contributions of black Americans. We need to celebrate and honor these contributions 12 months of the year, not just in February!

Diversity Strategists • Celebrating 22 years in business Our Clients include: Constellation Energy Blue Cross/Blue Shield of Florida

Inspiring Ingenuity from the Workplace to the Marketplace

Eastman Kodak Company Ernst & Young Exelon Corporation Exxon Mobil Corporation Harrah's Entertainment Inc. HCA Inc. Hewitt Associates LLC National GeoSpatial Intelligence College Nationwide Mutual Insurance Company Sodexho, USA Starbucks Corporation The Annie E. Casey Foundation University of Michigan Institute for Social Research YWCA of Greater Pittsburgh

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The Winters Group, Inc. Mary-Frances Winters • Founder, Chief Executive Officer 877-546-8944 • www.wintersgroup.com

Profiles in Diversity Journal January/February 2006

Albert L. Gaylor VICE PRESIDENT, INDUSTRY RELATIONS AND DIVERSITY SYSCO CORPORATION

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s a young person growing up in Natchez, Miss., my parents encouraged me to recognize and celebrate Black History Month, which at that time was referred to as Negro History Week. Today, as a resident of Houston, Texas, I carry on this tradition of celebration by attending local cultural events, including community plays, citywide parades and worship services dedicated to the recognition of Black History Month. I am keenly aware and proud throughout the year of the many sacrifices and contributions my ancestors have made toward building our nation.

Looking across the landscape of African-American leaders, it is vitally important that individuals such as Dr. Martin Luther King Jr., a pioneer in the struggle for civil rights, be recognized and celebrated. Contemporary achievers, such as the late John H. Johnson, founder and publisher of Ebony and Jet magazines, also should be recognized for vision and leadership. Recipient of the Medal of Freedom, the nation’s highest civilian honor, Mr. Johnson embodied the American Dream. One of his close colleagues said, “Considering the depth from which he came and the height he climbed and the obstacles he overcame, he was the greatest of all American publishers, black or white.”

As we celebrate Black History Month, SYSCO remains committed to diversity and inclusion. By supporting and embracing diversity, we gain new ideas and learn new ways to approach challenges. This allows us to make better business decisions that have far-reaching and lasting benefits for everyone our business touches: our customers, our associates and the communities in which we live and work.

blocks away on Columbus Avenue. The closer I got, I realized that the apartment building in flames was number 320, where my brother Mike shared an apartment with MIT doctoral student Ronald E. McNair. Against my better judgment, I leaped over the yellow barricade tape and bolted up the steps fully intending to get to the third floor to assess any damage done to Mike and Ron’s apartment. I only made it to the first floor stairwell.

There sat Ron McNair clutching a baseball bat in his hands, blocking access and entry to any of the apartments on the low level floors. His explanation? “Most of the people in this apartment building are as broke as I am. I’m just trying to help protect their stuff.” That incident, permanently etched in my mind, embodied in so many ways what Dr. Ronald E. McNair was really all about.

In The Spirit of Ronald E. McNair, Astronaut—An American Hero, written by his brother, Carl McNair, superbly captures in written form the short life of an incredible man whose life was snuffed out prematurely during the space shuttle Challenger disaster 20 years ago.

Without doubt, there are scores of anecdotes, words, and images conjured up by the many people who knew and were somehow touched by Ron McNair. My image would be of someone who lived on the edge, raised the bar, and pushed the envelope; all of which are perfect descriptive companions to Ron’s “failure not an option” credo.

I stare off into space as I write this in the same way, I’m sure, that Ron did during his first shuttle flight in 1984. I’m seeing the image of a young black boy sprawled out on his back in a field in tiny Lake City, South Carolina, staring at the sky and the heavens, and seeing the many possibilities, his heart filled with both a dare and a dream to get there one day. And that, he did.

Dr. Ronald E. McNair joined immortality on the cold morning of January 28, 1986, and now sits in his rightful place next to the truly great ones, not only in African-American History, but in history period!

Stephen W. Rochon Terry Howard

DIRECTOR OF PERSONNEL MANAGEMENT U.S. COAST GUARD

WORLDWIDE DIVERSITY DIRECTOR TEXAS INSTRUMENTS

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rom Boston’s Copley Square I could see flames shooting up from an apartment building a few

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very February, I am uplifted by events highlighting the achievements of AfricanAmerican leaders. These great leaders share common denominators of high values, ethical behavior, integrity, passion and a determination to succeed—

qualities that my mother and grandfather instilled in me early in life. One in particular has provided a compass to me in navigating through my career—Richard Etheridge, a former slave.

In 1896, Richard Etheridge and his brave crew were stationed at the U.S. Coast Guard Lifesaving Station on Pea Island off the Outer Banks of North Carolina. As station keeper, Etheridge’s professionalism, leadership and preparedness were severely tested when he and his all-black crew faced a raging hurricane to save nine souls who were clinging to a grounded schooner. For this feat, Etheridge and his crew posthumously were awarded our nation’s Gold Lifesaving Medal 100 years later. Their legacy lives on today as America witnessed modern day Coast Guard rescuers from all cultural backgrounds respond admirably to the devastation of Hurricane Katrina.

There were no cameras on Pea Island to capture the heroics of Etheridge and his brave crew, but Black History Month gives us a unique opportunity to tell their story and to celebrate their greatness. In the immortal words of my former mentor and renowned author, Alex P. Haley, I make use of February and every other month to “Find the good and praise it!”

John M. Bell SENIOR VICE PRESIDENT, DOMESTIC TELECOM HR VERIZON

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lack history is American history. We should celebrate it every day, not just once a year.

Answer the telephone, open a refrigerator, turn on a computer, flip a light switch or stop at a traffic signal and you’re benefiting from African-American innovation. The contributions of people of color are undeniable.

At Verizon, we value these contributions. We’re committed to ensuring an inclusive environment that leverages the talents of all employees. As an industry leader, we count on the innovation and creativity of a diverse work force to help us enhance our customers’ lives.

Celebrating Americans of African descent—whose faith, courage and perseverance opened doors for so many of us—is important. We reached for our dreams standing on their shoulders.

Many of them were everyday people like my father, John Bell.

He only got as far as the fifth grade. But he taught himself the rest and led by example. Through his work ethic and pride, he showed his children that there were no limits to what we could accomplish. And he was right.

Yet, in 2006, there is still reluctance by some to recognize the value of diverse perspectives. So our challenge every day is to bring to the table the full weight of our experiences, thoughts, ideas and energy. By doing so, we honor and repay the unsung heroes who came before us and pave the way for generations yet to come.

Emerson U. Fullwood EXECUTIVE CHIEF STAFF AND MARKETING OFFICER FOR THE NORTH AMERICA GROUP XEROX CORPORATION

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n celebrating Black History Month, Xerox recognizes the power of diversity to help change the world and secure a competitive advantage in the marketplace. I’ve witnessed this power because Xerox has embraced diversity from the beginning in the visionary leadership of our first CEO, Joe Wilson.

I often reflect on the legacies of past heroes—Nelson Mandela, Martin Luther King Jr., Jackie Robinson, Rosa Parks— and also recognize that we have great role models today. For example, Stan O’Neal, chairman and CEO of Merrill Lynch, was among the first black students to integrate Atlanta’s West Fulton High School. Ken Chenault, chairman and CEO of American Express, worked his way through Bowdoin College and Harvard Law School.

Each of us, too, needs to carry the torch of diversity. We must take the road in front of us farther than it extends today, and we must also pave it and make it smoother for those who will follow us. Take clear action: mentor people; promote education; fight for more inclusive business policies; hold people accountable for our shared values. Action will determine success, and our actions must continually drive efforts to make diversity a vital intellectual and technical force.

PDJ Profiles in Diversity Journal

January/February 2006

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Supplier Diversity Gains Traction Among Supplier diversity is an area of growing interest for corporate America and for the government. Corporations are setting ambitious goals for themselves to reach out to businesses not traditionally included in the supply chain.

By Diversity Best Practices

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ccording to Washington, DCbased Diversity Best Practices, 97 percent of the Fortune 500 and all government departments and agencies have set goals and assigned a supplier diversity manager or executive, often a vice president, to support the function.

Diversity Best Practices has compiled a list of the 15 best practices for supplier diversity.

1. Gain executive commitment from CEO, the Diversity Council, the top executive for Procurement and others in the leadership for the overall supplier diversity program. The establishment of top executive support is significant to success.

2. Prepare a written vision statement as the program must be “good for business” with commitment to leadership.

3. Commit staffing and budget for the program. Assign responsibility and accountability clearly including the procurement leadership, diversity officer and council, and operating business heads.

4. Write a clear mission statement and business plan.

5. Set goals and measure results. Review goals on both dollar spend and 76

percentage spend. Review how to achieve these and report results on a regular basis. Make the success public internally and externally.

Dartmouth program of the Amos Tuck School with the Women’s Business Enterprise Development Council.

6. Assure clear policies and review them on regular basis. Prepare and educate on written procedures.

11. Integrate your suppliers into your educational programs; showcase suppliers on your Web site and in your materials and advertisements.

7. Review the certification program and relationships with third parties that certify. Use third-party certification wherever possible.

8. Participate with leading organizations supporting certified women and minority entrepreneurs and attend supplier diversity events.

9. Ensure that the Internet site is userfriendly for suppliers; update your Web site for suppliers.

10. Build mentoring and executive education programs. Many companies are choosing to support their suppliers, perhaps by decreasing the total number of suppliers but increasing the dollars spent with major women and minority firms. Two excellent education resources are the advanced training programs offered by the Kellogg School of Business at Northwestern University in cooperation with the National Minority Supplier Development Council, and the

Profiles in Diversity Journal January/February 2006

12. Tie your suppliers to your community program and have them participate in events and conferences with you.

13. Consider what makes an awardwinning program and build success factors.

14. Assure that communications and education are part of the program.

15. Measure and report. Measure and report. Set the bar higher. Report results.

PDJ Diversity Best Practices (DBP) is a membership-based service that is pioneering new ways to achieve business results through diversity. Since its inception over 200 Fortune 1000 companies, federal government agencies, and nonprofit organizations have participated in its benchmarking programs and services. To learn more, visit DBP’s Web site at www.diversitybestpractices.com.

Fortune 500 Firms

Trends in Supplier Diversity • Staffing for supplier diversity is increasing; on average, there are two to three people assigned to the function throughout most leading companies. Within General Motors, Daimler-Chrysler, SBC and Verizon, for example, DBP finds as many as 10-15 people assigned to support supplier diversity.

• Budgets for the supplier diversity function are growing as personnel, programs, advertising and marketing, training, conferences and seminars increase.

• Ancillary programs, such as mentor-protégé and training, will grow. DBP finds that many companies are adding mentorship programs to support minority suppliers.

• As the supplier function grows, the pressure will increase as report cards are sent to corporate CEOs, shared with government officials, and published in the media. Awards and recognition in this area are on the rise. Magazines and communications vehicles cover results and the awards for being the best in supplier diversity are being given by minority and women’s organizations and the media.

Profiles in Diversity Journal January/February 2006

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The 2006 Profiles in Diversity Journal 3rd Annual International Innovation in Diversity Awards will honor ten organizations and institutions that have developed innovative solutions offering measurable outcomes in the area of workforce diversity and inclusion.

2005 Winners: SODEXHO • FORD MOTOR COMPANY • DAIMLERCHRYSLER • GEORGIA POWER • ENTERGY CREDIT SUISSE • PEPSICO • GM • SHELL INTERNATIONAL • NEW YORK LIFE INSURANCE

Download your application today!

OVERVIEW

The annual Profiles in Diversity Journal International Innovation in Diversity Awards honor individuals and teams working in organizations and institutions anywhere in the world that have developed innovative solutions offering measurable outcomes in the area of workforce diversity and inclusion. Our objective is to encourage and increase the number of businesses and institutions implementing innovative programs, projects, or practices that will help to improve workforce diversity/inclusion excellence.

Ten organizations will be selected as honorees. In defining innovation, we use Webster’s definition as “effecting a change in the established order; the creating of something new.” Innovations can be in the form of new ideas, methods, services, or processes that improve the quality of life or enhance productivity within an organization.

Diversity includes variations among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and any other human distinction.

These awards will recognize innovations within the organization that have been launched within the past two years, and have had an influence and delivered a positive outcome on diversity management, staff recruitment, and/or toward inclusiveness and improved equity in the workplace. Any one idea or project qualifies so long as the ensuing results are already making a greater impact on diversity management and/or business and institutional diversity/ inclusion excellence than anything prior.

THE AWARDS AIM TO: • • • •

Encourage and share best practices toward innovation in diversity Recognize and reward innovations in diversity Increase the profile of innovative diversity practices within organizations Inspire organizations and institutions to take innovative approaches to diversity management.

SELECTION CRITERIA INCLUDE: • Ease of implementation • Effectiveness in improving diversity awareness/management, staff recruitment, employee retention and/or inclusiveness and improved equity in the workplace • Evidence of commitment and involvement from senior management and employees • Genuine measurable outcomes (tangible and/or intangible) due solely, or primarily, to that the checklist

Go to www.diversityjournal.com for full information, or call Jim Rector at 800-573-2867.

Entry deadline: April 21, 2006 78

Profiles in Diversity Journal January/February 2006

What’s missing?

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AARP Services, Inc. www.aarp.org

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Bank of the West www.bankofthewest.com

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Bausch & Lomb www.bausch.com

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BellSouth Corporation www.bellsouth.com

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The Boeing Company www.boeing.com

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DaimlerChrysler Corporation www.daimlerchrysler.com

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Dell, Inc. www.dell.com

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Eastman Kodak Company www.kodak.com

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Ford Motor Company www.ford.com

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Georgia Power www.southernco.com/gapower

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Halliburton www.halliburton.com

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Ivy Planning www.ivygroupllc.com

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Lockheed Martin www.lockheedmartin.com

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MFHA www.mfha.net

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MGM Mirage www.mgmmirage.com

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Nationwide Insurance www.nationwide.com

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PepsiCo, Inc. www.pepsico.com

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Sodexho www.sodexhousa.com

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State Farm Insurance Companies 73 www.statefarm.com Time Warner, Inc. www.twsupplierdiversity.com

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Waste Management, Inc. www.wm.com

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WellPoint www.wellpoint.com

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Whirlpool Corporation www.whirlpool.com

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Winters Group www.wintersgroup.com

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Who believes it takes many points of view to make a company with vision?

Think Green.®

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illions of customers a week see our green trucks and green-uniformed employees. Naturally, when you are as involved with the community as we are – you get a unique insight into the world. That’s why Waste Management is working harder to become a more forward-looking, forward-thinking company every day. We’re creating a culture that makes the most of every employee’s potential. We’re bringing together a workforce that reflects the communities we serve. In all, we’re building a framework for a more inclusive, diverse company.

As a FORTUNE 200 company with over $11 billion in annual revenues, Waste Management is breaking new ground by creating opportunities where everyone is treated equally – with dignity and respect.

So when you think of a national leader of diversity and inclusion, Think Green.®

From everyday collection to environmental protection, Think Green.® Think Waste Management.

www.wm.com

©2006 Waste Management, Inc.

At WellPoint, we celebrate the diversity of our workforce. We are the leading health benefits company in the nation serving the needs of 34 million members.

A FORTUNE 50® company, we are strengthened by the commitment and dedication of our associates. If you’re looking to join a company where you will see your ideas in action - where what you do helps others live better, consider a career with us.

Visit our Web site to search opportunities throughout the United States at: www.wellpoint.com/careers

What does it take to be named FORTUNE magazine’s Most Admired Health Care Company six years running? ®

People like you.

Opportunities may be available in the following areas: • Actuarial • Administrative/Clerical • Advertising/Marketing • Claims/Membership/Customer Service • Compliance • Corporate Communications • Finance & Accounting • Human Resources • Information Technology • Legal • Management • Nursing/Case Management • Pharmacy • Provider Network Development • Sales • Training • Underwriting

SM

EOE. SM Service Mark of WellPoint Inc. FORTUNE and FORTUNE 50 are registered trademarks of FORTUNE magazine, a division of Time Inc. ©2004 WellPoint Inc. All rights reserved.