Also Featuring ... Halliburton’s Front-Runner Len Cooper • Catalyst
Volume 8, Number 4 July / August 2006
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PUBLISHER James R. Rector
Shaping Tomorrow’s Immigration Policies
MANAGING EDITOR John S. Murphy
Xenophobia and ethnocentrism are a pair of ten-dollar words you don’t
CREATIVE DIRECTOR Linda Schellentrager
hear much outside of academia. They came to mind recently as I observed the demonstrations about immigration, or, more precisely, how to keep
MARKETING DIRECTOR Damian Johnson CONTRIBUTING EDITOR Laurel L. Fumic
“illegals” out of the country. Xenophobia is the fear of foreigners. Ethnocentrism is the belief that our way of doing things is the best way, or at least the right way. It’s
OVERSEAS CORRESPONDENT Alina Dunaeva WEB MASTER Jason Bice
ethnocentric to say that all countries should conduct business the way we do in the United States. The xenophobe dislikes people who are not like us. No one disputes that every country ought to have a rational immigration policy. I just wonder how much of the rhetoric we hear is driven by
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xenophobia and ethnocentrism rather than by the desire for rational policy.
P.O. Box 45605, Cleveland, OH 44145-0605.
Both give rise to an unhealthy nationalism evidenced by a sign one demon-
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strator held that said “America is for Americans.”
full name, address, e-mail and phone number.
Too bad our society doesn’t yet embrace diversity and inclusion as well
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Profiles in Diversity Journal July/August 2006
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
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On the Cover / Special Feature
19 John Hofmeister
President, Shell Oil Company He’s driving a high octane diversity performance that everyone can admire. Here’s an inside look at a company whose challenges include a worldwide energy crisis and workers displaced by hurricanes.
Front-Runner Len Cooper Halliburton’s supply chain senior vice president describes the supply-chain programs and initiatives that keep Halliburton on the forefront of diversity.
48 departments
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Momentum Diversity Who, What, Where and When
Health Notes
16
Health Care Industry News
Catalyst
60 4
Sustaining Employee Networks
Profiles in Diversity Journal July/August 2006
“Micro-Smart is an engineering company specializing in the design and manufacture of downhole instrumentation and downhole tools. Before getting work with Halliburton, business was good—but modest. Halliburton has definitely had a major, positive impact on our growth. And they've helped us realize our goal of working for leading international companies.” Otis R. Anderson Vice President, Engineering, Micro-Smart Systems, Inc.
A t Halliburton, we’ve been well rewarded for putting significant trust— and business—in the hands of minority- and woman-owned businesses. When you partner with us, opportunity is truly a two-way street. If you have a minority- or woman-owned business, Halliburton has the energy to help. And we want to talk to you! Please contact us at supplierdiversity@halliburton.com.
HALLIBURTON
H e l p i n g
© 2006 Halliburton. All rights reserved.
t o
b u i l d
s u c c e s s
t h r o u g h
s u p p l i e r
d i v e r s i t y .
Allstate Names Anise D. Wiley-Little Chief Diversity Officer NORTHBROOK, Ill. – Anise D. Wiley-Little has been promoted to assistant vice president and chief diversity officer for Allstate Insurance Company. Previously director of diversity & worklife, Wiley-Little will continue to lead diversity efforts but will now have the opportunity to better integrate, strengthen, and expand alreadyestablished diversity strategies. This includes having direct accountability for supplier diversity. “This newly created role reaffirms Allstate’s long-standing commitment to diversity in the workplace and the communities it serves,” said Allstate CEO and Chairman Edward M. Liddy. “While we are continually recognized for our diversity efforts, we now have the opportunity to take this valuable business initiative to the next level.” Wiley-Little began her career at Allstate in 1984 and has over 20 years of experience in various human resources disciplines including compensation, organizational development and design, policy and compliance, employee communications and technology optimization. She is on the boards of the YWCA of Lake County Illinois, Corporate Voices for Working Families and the Soaring Eagle Community Development Corporation. She received a bachelor’s degree from Illinois State University and her master’s degree from the University of Illinois.
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American Cancer Society Names Aurelia “Ree” Stanley National Chief Diversity Officer ATLANTA – Aurelia “Ree” Stanley, national vice president of human resources at the Atlanta-based American Cancer Society, has been appointed to the newly created position of chief diversity officer. In this role, Stanley will manage all operations in support of the charity’s diversity initiatives. Stanley is tasked with an overall objective of ensuring that people who are fundamentally different in culture— in values, work styles and goals—work together effectively to ensure that the Society, the nation’s largest voluntary health organization, achieves its lifesaving mission. “Ree brings critical perspectives from her role as national vice president of human resources into her new role as chief diversity officer,” said John R. Seffrin, PhD, national chief executive officer of the American Cancer Society. “She will have an essential role to play if the Society is to create a truly inclusive climate in which all staff and volunteers can realize their full potential and in turn contribute to a plural organization.” Stanley began her career with the National Home Office of the American Cancer Society in 1989 as its director of compensation. In 1992, she assumed the role of national vice president of human resources and was responsible for all aspects of the human resources function. Stanley holds a bachelor’s degree in business administration from Emory University in Atlanta. She also holds the professional certification of CCP
Profiles in Diversity Journal July/August 2006
(Certified Compensation Professional). She is a member of United Way of Metropolitan Atlanta’s Diversity Council. The American Cancer Society is dedicated to eliminating cancer as a major health problem by saving lives, diminishing suffering and preventing cancer through research, education, advocacy and service. Founded in 1913 and with national headquarters in Atlanta, the Society has 13 regional Divisions and local offices in 3,400 communities, involving millions of volunteers across the United States. For more information anytime, call toll-free 1-800-ACS-2345 or visit www.cancer.org.
American Red Cross Taps Mori Taheripour for Vice President, Corporate Diversity Rick Pogue, senior vice president, human resources, and chief diversity officer of the American Red Cross, has announced the appointment of Mori Taheripour to vice president of corporate diversity. Taheripour will manage the day-to-day operations of the corporate diversity department, and will report to Pogue. “The response from many in the diverse community to our hurricane relief efforts over the past two years indicates to me that the Red Cross needs to take its diversity program to the next level. I am convinced that Mori is the right individual to do just that,” Pogue said in announcing the appointment. Taheripour, an exceptional communicator, has enjoyed proven success in marketing healthcare initiatives to minority communities, as well as building relationships with leading minority healthcare organizations. Since 1997,
Bring out the best in everyone,
and you can achieve great things. The men and women of Lockheed Martin are involved in some of the most important projects in the world. Though naturally diverse, our team shares a common goal: mission success. Our differences make us stronger because we can draw on the widest possible range of unique perspectives. Resulting in innovative solutions to complex challenges. Lockheed Martin. One company. One team.
www.lockheedmartin.com
she has served as the managing partner (and co-founder) of Innovative Health Solutions, Inc., a healthcare consulting firm dedicated to developing healthcare prevention and education initiatives for diverse populations. “This collective experience will guide Mori as she leads the Red Cross in deepening our ties with diverse communities and in working to create strategic partnerships on a local level,” said Pogue. Taheripour will focus on developing and overseeing the implementation of programs that engage diverse organizations and individuals in support of the Red Cross’s mission. Born in Iran, Taheripour moved to the United States in 1978. She attended high school in New Jersey and received her BA in Psychology /Premedical Studies from Barnard College of Columbia University in New York. She moved to the San Francisco Bay Area in 1992 to join her family. In 2003, Taheripour earned an MBA from The Wharton School of the University of Pennsylvania. She is a lecturer for the Negotiations and Dispute Resolution course at Wharton, at both the Philadelphia and San Francisco campuses.
Stanley Zareff Is Credit Suisse Vice President With over 17 years of experience at Credit Suisse, Stanley Zareff is a vice president in the bank’s corporate communications department, where he is a presentation skills and executive coach specialist. Zareff is currently the co-chair of Credit Suisse’s Open Network. The network addresses the issues and concerns of Credit Suisse’s LGBT community. Stanley is a founding member of the
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Open Network and has served on the steering committee since its inception in 1999. In 2004, Zareff received a Credit Suisse award for his efforts to enhance the Bank’s culture through his diversity and inclusion volunteering efforts. Zareff is also involved in numerous philanthropic activities. He serves as secretary of the board of trustees for New York City’s Lower East Side Service Center, a nonprofit social services agency, and has recently joined the board of the highly acclaimed Urban Stages theater company in New York City. The company produces works by diverse playwrights to outreach teen audiences in the five boroughs of the city. Zareff has taught acting for over 20 years in New York, Los Angeles, and London.
Deloitte & Touche USA, LLP, Names Kaplan Mobray U.S. Diversity Recruiting Leader NEW YORK – Mobray will lead the company in setting diversity recruiting objectives for campus and experienced hiring. Mobray earned his BA from the University of Pennsylvania’s Wharton School of Business and is a graduate of Deloitte’s National Diversity & Inclusion Initiative’s Breakthrough Leadership Program (BLP). “Diversity recruiting supports our efforts in building a rich and inclusive culture where everyone—regardless of gender, ethnicity, place of origin, or thinking style—can thrive to full potential,” said Mobray. As head of U.S. diversity recruiting, Mobray will work with national diversity leaders and regional diversity recruiters to create a
Profiles in Diversity Journal July/August 2006
national recruiting strategy. Prior to his new role, Mobray served as senior marketing manager for Deloitte’s national consumer business industry group, one of the largest industry practices at the organization. He was responsible for communications and eminence programs, relationships with industry boards and trade associations, marketing programs, events and public relations activities. “I look at diversity recruiting as the engine that fuels our organization with people who allow us to deliver the broadest perspectives, distinguishable solutions for growth, and innovation to address our clients’ needs and win in the marketplace,” said Mobray. Deloitte Touche Tohmatsu is an organization of member firms around the world devoted to excellence in providing professional services and advice, focused on client service through a global strategy executed locally in nearly 150 countries. With access to the deep intellectual capital of 120,000 people worldwide, Deloitte delivers services in four professional areas—audit, tax, consulting, and financial advisory services.
Freescale Taps Jignasha Amin Patel To Lead Inclusion and Diversity AUSTIN, Texas – Freescale Semiconductor (NYSE:FSL, FSL.B) has named Jignasha Amin Patel as director of inclusion and diversity. She will lead Freescale’s global workplace initiatives and drive an integrated strategy that is focused on attracting, retaining, and developing diverse talent at all levels of the organization. Patel believes that diversity and inclusion set the stage for
person ality
Is Nationwide for you? Some people have an inner desire, a compelling force that drives them to take action, deliver on their promises and continually reach beyond what’s expected. It’s this passion for greatness that makes Nationwide associates special. At Nationwide, it’s not about just filling a position. It’s about finding individuals with personality – that special blend of natural talents and innovative ideas. If words like passion, connection, commitment, vision and leadership inspire you, a career at Nationwide could be for you. A number of job opportunities are available now in Columbus. Meet with one of our representatives or apply online at nationwide.com.
Are you ready?
Nationwide is an equal opportunity employer. EOE/M/F/D/V Nationwide and the Nationwide framemark are federally registered service marks of Nationwide Mutual Insurance Company. On Your Side is a service mark of Nationwide Mutual Insurance Company. ©2005, Nationwide Mutual Insurance Company. All rights reserved.
innovation and give the company a unique and valuable understanding of the global marketplace. Her key focus in 2006 will be on awareness and education, retention and recruitment efforts, branding, and community outreach. “Freescale is committed to creating an open, diverse, high-performance culture, across our global operations,” said Kurt Twining, senior vice president, human resources. “It’s not just a goal; it is a prerequisite for success in the global marketplace. Jignasha has proven experience driving culture programs that have a direct impact on the bottom line.” Prior to joining Freescale, Patel spent more than five years at Dell in various management roles. Most recently, she led Dell’s inclusion and business diversity strategy efforts and was responsible for implementing the global inclusion initiative for Dell. Patel has practiced law in the areas of human rights, immigration and litigation management. She holds a BA in English & Spanish literature from Emory University, and a JD from the University of Miami.
Halliburton’s Global Supplier Diversity Manager Receives Women Of Excellence Award HOUSTON – Ingrid Robinson, manager of Halliburton’s global supplier diversity program, has been selected as one of the “100 Women Impacting Supplier Diversity” and as one of the 2005 “Women of Excellence” honorees by Women’s Enterprise magazine. The magazine is a national bi-monthly news publication targeted to corporate professionals and women’s business enterprises. “The ‘100 Women Impacting Supplier Diversity’ is the first and only list to honor 100 corporate women in 10
America who are recognized by their peers as best-in-class leaders and mentors in the supplier diversity arena,” said Lori Layl of Women’s Enterprise. “Honorees and their corporations were selected based on their continued presence in supplier diversity, with particular focus on efforts within the last year. Included in this group are executive women who consistently participate in and create activities to develop women business owners and companies that stand at the forefront of diversity initiatives.” Robinson joined Halliburton in 2005 with 12 years of experience in minority and women’s business development with corporate, government and non-profit organizations. In her role, she is responsible for developing and executing initiatives to enhance Halliburton’s Supplier Diversity Program. “At Halliburton, we know that for supplier diversity to truly be effective, it must be integrated seamlessly into our overall business strategy,” said Robinson. “Promoting diversity among our suppliers continues a longstanding Halliburton tradition of fostering innovation. It also gives us another opportunity to align with our customers.” Robinson has a bachelor of science degree in political science from the University of Houston and is involved in numerous professional organizations, including the National Minority Supplier Development Council and the Women’s Business Enterprise National Council and its regional affiliates in Houston, Dallas/Fort Worth, Oklahoma, Louisiana, and Southern California. Halliburton, founded in 1919, is one of the world’s largest providers of products and services to the petroleum and energy industries. The company serves its customers with a broad range of products and services through its Energy Services Group and KBR. Visit the company’s World Wide Web site at www.halliburton.com.
Profiles in Diversity Journal July/August 2006
David A. Rodriguez Named Executive Vice President At Marriott International WASHINGTON – Marriott International, Inc. (NYSE:MAR) announced today that Mr. David A. Rodriguez has been appointed executive vice president, human resources. Rodriguez succeeds Brendan Keegan, who will retire from the company in August. He will have corporatewide responsibility for human resources, including oversight for Marriott’s global portfolio of hotel and vacation ownership brands. Prior to his new role, Rodriguez held the position of executive vice president, lodging, human resources, since 2003. In this capacity, he had human resources management responsibility for North America Lodging as well as corporate-wide responsibility for the areas of talent management and organizational capability. In 2004, Rodriguez was appointed to the Board of Directors’ Committee for Excellence which focuses on diversity and inclusion. Rodriguez graduated from New York University in 1980 and also holds a PhD in industrial/organizational psychology from that institution. Marriott International, Inc. is a leading lodging company with nearly 2,800 lodging properties in the United States and 66 other countries and territories. For more information or reservations, please visit the company’s Web site at www.marriott.com.
Cathy Arnett, President, Utility Support Systems, Inc., Distribution Engineering Services; Vickley Raeford, President, Raeford Land Clearing, Inc., Grading and Right-of-Way Clearing; Rajana Savant, President, Mesa Associates, Inc., Engineering and Research Development; Elizabeth Gats, President, Stag Enterprises, Inc., Commercial and Industrial Supplies Distributor.
Y O U M I G H T B E S U R P R I S E D W H AT T H E Y C O N S I D E R W O M A N ’ S W O R K .
These businesswomen have prevailed in nontraditional fields because they met challenges head-on and took advantage of opportunities that came their way. Opportunities like becoming a vendor for Georgia Power, a subsidiary of Southern Company, the South’s premier energy company. Through our Supplier Mentor Program and other diversity initiatives, we have assisted qualified female and minority-owned companies acquire the experience, knowledge, and contacts to help grow their businesses. At Georgia Power, we believe that their success will contribute to the economic success of all the communities we serve. To learn more, visit us at southerncompany.com/suppliers/diversity.asp.
MFHA Appoints Michelle Miller As Managing Director PROVIDENCE, R.I. – The Multicultural Foodservice & Hospitality Alliance (MFHA), a nonprofit organization promoting the economic and social benefits of diversity in the industry, has appointed Michelle Monique Miller to the newly created role of managing director. Miller now oversees all marketing and operational functions of the organization. “I am honored to have been promoted by our founder and president, Gerry Fernandez, and by the MFHA Board of Directors,” says Miller. “MFHA is in an important growth stage and it is rewarding to shape strategy and talent together with the MFHA management.” A native of Boston, Mass., Miller holds a bachelor’s degree in Chinese and Asian studies from Harvard University and a master’s degree in higher education administration from Boston College. Her interest in marketing emerged upon moving to Shanghai to teach English in 1991, when multinational companies were just beginning to make a return to the China market after the Tiananmen Square uprising. She worked with McCann-Erickson as a consultant on market entry strategies and ran focus groups in Chinese. She served as group account director for PepsiCo’s Asia Pacific division and as marketing director for Reebok /Rockport International. This year is MFHA’s tenth anniversary, and Miller will guide the organization’s gala dinner and 2006 leadership conference. Community leaders and industry members from around the nation will gather in August in Cambridge, Mass., to celebrate MFHA’s accomplishments of the past decade and to strategize for even greater success in the next. Founded by Gerry Fernandez in 1996, MFHA’s business model centers
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around the image of a dinner table of opportunity with four seats, each representing an industry component: workforce, customers, community and suppliers. MFHA’s goal is to create programs and develop strategies for the needs and challenges of each “seat,” allowing each component to help the industry advance, remain competitive, and attract the best talent. To learn more about MFHA, visit www.mfha.net.
Symbol Technologies Promotes Four Jan Burton has been appointed vice president for Symbol in Europe, the Middle East, and Africa (EMEA) operations. Burton will oversee EMEA operations, spearheading the development of Symbol’s sales and services capabilities in the region, and continue to deliver strategic and consistent business velocity. She has been vice president of worldwide channels for Symbol since June 2003, and has grown the channel business to more than $1 billion (U.S.), and increased Symbol’s channel centricity from 45 percent to nearly 70 percent. Boris Metlitsky, a 25-year veteran of Symbol, has been named senior vice president of the global products group. Dr. Metlitsky is responsible for strategy, development and technology innovation in the mobile computing, wireless, advanced data capture, radio frequency identification (RFID) and mobility software product divisions, as well as industrial design. Metlitsky has a PhD in electrical engineering and holds more than 60 patents.
Profiles in Diversity Journal July/August 2006
Ray Martino, Jr., a 19-year veteran of Symbol, was named vice president and chief technology officer. Martino will guide Symbol’s strategy in the development of new technologies and next-generation products and services, to maintain the Company’s position as the innovation leader in enterprise mobility. Most recently, he has worked with Symbol’s global sales, product and marketing teams to define customer needs and develop end-to-end solutions to best address these needs. Anthony Bartolo has been named vice president and general manager of the RFID division. He will be responsible for Symbol’s global RFID programs and go-to-market strategy. Bartolo will also continue his role as general manager of Symbol’s wireless infrastructure division, a position he has held since 2004, where he has played an instrumental role in the Company attaining a market-leading position in wireless local area network (WLAN) switches. He has a bachelor’s degree in electronics and communications engineering from the Royal Melbourne Institute of Technology in Melbourne, Australia. Founded in 1975, Symbol Technologies holds more than 900 patents in all areas of mobile technology, including mobile computing, wireless infrastructure, radio frequency identification, mobility software, services and advanced data capture. To learn more, visit www.symbol.com.
Face the Challenges…Build Your Future • Gerry Fernandez, President and Founder of MFHA, and Leah Chase, co-owner and chef at New Orleans’ landmark restaurant, “Dooky Chase”, will deliver the opening speech and welcome keynote
• Industry panels and workshops will create the opportunity to share ideas, to address concerns, and to suggest solutions on diversity issues when building your career
• Meet Chef Jeff and listen to his fascinating and unique story on how the restaurant industry offered a life-changing opportunity for him
• Register online at www.mfha.net
MFHA’s Straight Talk Symposium Career Enhancement Workshops October 4-5, 2006 in New Orleans at the Sheraton New Orleans Hotel MFHA premier sponsors
Gandarillas Honored by Ohio Commission On Hispanic / Latin Affairs Rich Gandarillas, a 25-year veteran of Nationwide, has been named Distinguished Hispanic Ohioan from the Ohio Commission on Hispanic / Latino Affairs. Gandarillas volunteers with several organizations, including the Big Brothers and Big Sisters and Kiwanis International. “I appreciate the support and wisdom given by others to enhance the
S O C I E T Y
F O R
Latino community,” Gandarillas said. “I am pleased to say that Nationwide is an advocate for the work among the diverse consumer population and sees it as an opportunity to bridge the gap.” In commenting on the award to Profiles in Diversity Journal, Gandarillas said, “At Nationwide, we have established a number of affinity groups to engage diverse thinking and enable our associates to experience their cultural heritage within the corporate environment. One of those groups that is part of my passion is the RISA Club (Raising Interest in Spanish Awareness). This group is for those interested in building a more inclusive environment through education and social and business
H U M A N
R E S O U R C E
networking. The members participate in a variety of activities including: mentoring Hispanic students, child car seat inspections, job fairs, festivals, and other educational and cultural events. “I am extremely proud of the awards and accomplishments that have been bestowed upon me. But the real value is breaking down the barriers of race, politics, and social economic issues to better our society and our future. “The sacrifices that my parents made for me encourage me to make a sacrifice for a cause so important and vital to strengthening not only the Latino community, but all communities.”
PDJ
M A N A G E M E N T
WORKPLACE DIVERSITY CONFERENCE & EXPOSITION New Challenges, New Opportunities October 16-18, 2006 // The Century Plaza Hotel & Spa Los Angeles, California
Join leaders in the field of diversity management at the SHRM Workplace Diversity Conference & Exposition—an excellent learning and networking opportunity for all professionals who are responsible for diversity in small, medium and large organizations. For more information, visit us online at www.shrm.org/conferences/diversity or call SHRM at (800) 283-7476 (U.S. only) or +1 (703) 548-3440 (International). 06-0400
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Profiles in Diversity Journal July/August 2006
If only you could package this kind of passion...
...actually, you might say we already have.
Inclusion + Insights = Innovation and Growth Buzzwords? Hardly. Diversity and inclusion are central to how we do business, from our ever-expanding portfolio of brands, to our people who market and sell them across the globe. Harnessing our employees' unique perspectives and backgrounds drives our businesses and helps our people grow. Do you want to make the difference? For information on joining PepsiCo, visit www.PepsiCoJobs.com.
UnitedHealthcare Brings New Plan Options To Small Business Owners With Benchmark Solutionssm New health plan portfolio now available for sole proprietors and businesses with 2 – 99 employees
MINNEAPOLIS – UnitedHealthcare, a UnitedHealth Group (NYSE:UNH) company, has introduced UnitedHealthcare Benchmark Solutionssm—a new suite of affordable, consumer-centric health plans designed specifically to meet the needs of small-business owners, who rank medical costs as their No. 1 concern. Small-business owners who take advantage of UnitedHealthcare Benchmark Solutions can offer employees affordable health care, as well as put
access to important health care tools at their employees’ fingertips. All Benchmark Solutions plans include access to UnitedHealthcare’s useful, practical tools, incentives and services that give members up-to-date information about their plan, as well as the ability to more actively participate in programs that help improve their health and well being. Developed for individuals and for small businesses that employ 2 – 99 employees, Benchmark Solutions offers small-business owners a menu of health plan choices ranging from traditional benefits to consumer-driven plans that provide a new, alternative approach to health care. The suite of plans includes access to the increasingly popular health savings accounts (HSAs) and health reimbursement accounts (HRAs) that give consumers greater control of their
health care dollars with savings and investment options. Small-business owners and sole proprietors interested in more information on UnitedHealthcare Benchmark Solutions can go directly to www.uhc.com and click on “Get a Quote.” UnitedHealthcare (www.unitedhealthcare.com) provides a full spectrum of consumer-oriented health benefit plans and services, helping more than 25 million individual consumers nationwide achieve improved health and well-being through various health service systems. UnitedHealthcare arranges access to quality, affordable care with more than 500,000 physicians and care professionals and 4,600 hospitals across America. UnitedHealthcare is one of the businesses of UnitedHealth Group, a diversified Fortune 50 health and well-being company. PDJ
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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Profiles in Diversity Journal July/August 2006
The Winters Group, Inc. Mary-Frances Winters • Founder, Chief Executive Officer 877-546-8944 • www.wintersgroup.com
www.boeing.com
There’s a place where everyone is welcome. Where everyone is treated the same. Boeing strongly supports Profiles in Diversity Journal in their never-ending mission to ensure that every workplace is that welcome place.
Special Feature
Shell Oil Company
Shell Oil Company
Despite his strong background in human resources, Shell Oil Company President John Hofmeister sees diversity and inclusiveness as business issues, not just HR issues. This company has a track record of success that reflects his thinking. Shell’s business principles include a commitment to sustainable development—meeting the world’s energy needs in ways that are environmentally and socially responsible. How does your diversity strategy flow from this commitment? The way I would describe it, our sustainable development and diversity strategies both flow from an understanding that we have a responsibility to the society in which we operate. In its simplest terms, it comes down to doing the right thing. We also recognize that acting in ways that are socially responsible is in our best interest and ultimately strengthens our shareholder value.
Profiles in Diversity Journal July/August 2006
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John Hofmeister
President and CEO
interview ::
“Energy is a global industry, and our diversity is an incredible source of strength in developing and working with markets abroad. I know of instances where members of our diversity networks, through their participation in external affinity groups, have brought us significant new business opportunities.”
How does Shell’s diversity
The energy industry has
strategy contribute to share-
typically been a fairly cyclical
holder value?
business, and throughout
I believe that our strategy makes us more
the 1990s there was limited
competitive both as an employer and as
hiring taking place in U.S.
a marketer. As an employer, having an
energy companies. How has
inclusive workforce strategy helps us to
that affected your ability to
attract and retain talented people from
make progress in workforce
all segments of society. And it’s not just
diversity?
about hiring and promotions—being
I am very proud of the strides Shell has
inclusive means being open to new
made in workforce diversity and inclu-
approaches and ideas that people of
siveness over the past ten years. It’s not
diverse backgrounds bring to the work
just a matter of changing the demo-
environment. That pays off in greater
graphics of the organization—although
creativity and innovation—elements we
we have accomplished a great deal in
critically need if we are to address the
that area—but about changing the
energy challenge we face today.
culture, so that diversity and inclusive-
As a marketer, a diverse workforce
ness are embedded in everything we do,
and diverse supply chain strengthen our
from our business decision processes to
ability to market to an increasingly
our community relations activities.
diverse customer base, both in the
I don’t think we or any company can
United States and abroad. Energy is a
use lack of hiring opportunities as a
global industry, and our diversity is an
rationale for not moving forward on
incredible source of strength in develop-
diversity initiatives.
ing and working with markets abroad. I know of instances where members of
Now things have come
our diversity networks, through their
around 180 degrees, and
participation in external affinity groups,
Shell is in a very competitive
have brought us significant new business
hiring environment. What are
opportunities.
the challenges you face now? The biggest challenge we face on the
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Profiles in Diversity Journal July/August 2006
Special Feature
hiring front is that there are not enough
Before you moved into your
students pursuing math and science
current role, you headed
studies. And the gap is even more pro-
Shell’s global human
nounced among women and minorities.
resources function. How
It’s an issue right now and one that will
does your human resources
reach a crisis point in the next few years
background shape your
if the trend doesn’t change. That’s why
leadership approach?
we are focusing our social investment
At their core, most leadership issues are
dollars on workforce development initia-
people issues. I think that perspective
tives—many of them focused on urban
has been valuable to me in addressing
schools—that we hope will encourage high
the challenges we have had to face since
school and college students to consider
I became president of Shell Oil
math and science careers and get elemen-
Company last year. As one example, the
tary and middle school students excited
Gulf hurricanes, Katrina and Rita, dis-
about these subjects.
placed 4,600 of our employees in Texas
Shell Oil Company
:: interview
and Louisiana, and we had no estab-
How would you assess
lished policies to cope with the reloca-
Shell’s success in its diversity
tion and assistance issues that we faced.
initiatives at this point?
We had to react quickly, and we were
We’ve done extremely well in some
able to do so because we made a decision
areas—the number of women in senior
up front to “do the right thing” for
leadership roles, the extent and success
our employees and communities—to
of our employee networks, and our sup-
respond to the human needs and not get
plier diversity programs are three areas
overly bogged down in bureaucracy.
where I think Shell sets the standard
You might expect me to say that I
for our industry. We have not been
take a particular interest in diversity
as successful in increasing the number of
issues because of my human resources
people of color—both male and
background, but diversity and inclusive-
female—in our senior ranks, and that
ness are not just human resources issues;
continues to be an area of focus for our
they are business issues. That is one
diversity initiatives going forward.
thing I think we at Shell have ingrained
“At their core, most leadership issues are people issues. I think that perspective has been valuable to me in addressing the challenges we have had to face since I became president of Shell Oil Company last year.”
Profiles in Diversity Journal July/August 2006
23
John Hofmeister
President and CEO
interview ::
in all of our leaders—that diversity and
Now, we are working with different
inclusiveness are not things that are
approaches, including collaborative net-
“nice to do” after the other business
works and second-tier partnerships, that
objectives are accomplished—they are
give minority and women suppliers
business imperatives that enable us to
more opportunities.
accomplish all of our objectives.
“When we purchase goods and services, it is our responsibility to be good stewards with our company’s funds. There is a misconception that using minority and women suppliers is not necessarily the most cost-effective solution. But the truth is that we have found a diverse supply chain often gives us more agility and a better line of sight into emerging market needs and trends.”
What are the unique chal-
lenges of addressing diversity in supplier development in a global organization?
efforts, strengthening the
Shell’s diversity initiatives began in the
ability of minority- and
United States, and when we took them
women-owned businesses
to a global level, we realized that we
to do business with Shell.
needed to redefine what we were trying
What is the return on this
to accomplish, because diversity issues
investment?
vary from country to country, but the
When we purchase goods and services, it
principle of inclusiveness is universal.
is our responsibility to be good stewards
We found, for example, that in a global
with our company’s funds. There is a
organization, diversity and inclusiveness
misconception that using minority and
mean creating opportunities for devel-
women suppliers is not necessarily the
opment and leadership for local people
most cost-effective solution. But the
working in Shell companies around the
truth is that we have found a diverse
globe, where traditionally the top lead-
supply chain often gives us more agility
ership positions in local companies had
and a better line of sight into emerging
been filled by Europeans.
market needs and trends. It gives us
Supply chain diversity is another
more flexibility and stronger relation-
area where we have begun to create new
ships in the communities where we
models on a global basis. In the recent
operate. And we can achieve these bene-
past, we looked for large suppliers who
fits at competitive costs.
could meet our needs around the world. 24
Shell has been instrumental
Profiles in Diversity Journal July/August 2006
We are fast approaching the day
Special Feature
Shell Oil Company
Shell Oil Company is the U.S. affiliate of the Shell Group, a global group of energy and petrochemical companies. With the world’s largest single-brand retail network, Shell operates in more than 140 countries and territories. Approximately 22,000 Shell employees are based in the United States. Including its consolidated companies and its share in equity companies, Shell Oil Company is one of America’s leading oil and natural gas producers, natural gas marketers, gasoline marketers, and petrochemical manufacturers, and a recognized pioneer in oil and gas exploration and production technology. Shell places great importance on making a difference in the environment in which people live and work, fostering and maintaining relationships with communities, taking care to be a good neighbor, and contributing to sustainable development initiatives. Shell’s businesses in the United States: • Shell Oil Products US refines, distributes, and markets fuels and lubricants. • Motiva Enterprises (a joint venture between Shell and Saudi Refining, Inc.) refines, distributes, and markets oil products in the eastern and southern United States. • Shell Exploration & Production Company acquires, explores, develops, and produces oil and gas. • Shell Chemical LP produces petrochemicals used to make many of the essential materials of our modern world. • Shell US Gas & Power provides access to U.S. terminals and markets that support Shell’s global leadership position in liquefied natural gas. • Shell Global Solutions provides cutting-edge consulting and technology services to the petrochemical and processing industries. • Shell Renewables develops commercial opportunities in solar energy and wind energy. • Shell Trading trades approximately six million barrels per day of hydrocarbons to support Shell’s refining and marketing businesses. • Shell Hydrogen develops business opportunities in hydrogen and fuel cell technology. Profiles in Diversity Journal July/August 2006
25
John Hofmeister
President and CEO
For John Hofmeister, a diverse workforce is a critical element in marketing to an increasingly diverse customer base.
interview ::
“The process of becoming more inclusive has led our organization to become more open to new ideas. Whether they are women, African Americans, Generation Xers, or members of any other affinity group, I think our people feel that they can speak up and be
when the United States will be a “majority-
the statistics but the culture change we
minority” country—when those we tra-
have undergone. The process of becom-
ditionally think of as “minorities” will
ing more inclusive has led our organiza-
compose the largest percentage of our
tion to become more open to new ideas.
population. The real return on our
Whether they are women, African
investment is the value of the equity we
Americans, Generation Xers, or mem-
are building in these communities,
bers of any other affinity group, I think
where strong supplier relationships
our people feel that they can speak up
translate into customer relationships
and be listened to. They can challenge
and brand value for the Shell name. At a
the status quo. They can share different
reception we hosted a while back for the
perspectives and be respected.
U.S. Hispanic Chamber of Commerce,
I look at how we work together and
one attendee put this into words very
I see a difference. One example is the
directly. He said that chamber members
way our networks work collaboratively
should do business with the corpora-
in the community. To have all our
tions that support Hispanic businesses,
networks walking side by side to support
and that means “buy Shell gas.” That
breast cancer research really shows
kind of endorsement, when we become
that we have come a long way in our
the vendor of choice, is a measurable
diversity journey.
return on investment.
Looking ahead, what is your
listened to. They can Shell has been recognized
vision for Shell’s diversity
challenge the status quo.
for its diversity efforts by
journey?
They can share different
organizations such as
The easy answer is to say I see a future
Catalyst. What are you most
perspectives and be
where we no longer need to hold people
proud of in Shell’s diversity
accountable for diversity and inclusive-
respected.”
efforts?
ness behavior because it will be second
I think what I am most proud of is not
nature. But we’ve got a ways to go as a
26
Profiles in Diversity Journal July/August 2006
Special Feature
Shell Oil Company
society and as a company before we reach that state. I would like to see greater progress on increasing the number of people of color in our leadership, and I am excited by the potential for shaping our future by attracting more women and people of color into the energy industry and particularly into math and science roles. We’re at a turning point in the energy industry as we focus our attention on solving the challenge of supplying the world’s growing energy needs while protecting our fragile environment. We need a diversity of people with talent and passion to help us address this challenge. Those people— men and women, Anglos and people of color, people from around the globe— will shape not just Shell’s future but the future of all of us who count on having sustainable energy. That’s a huge challenge, and my vision is that our journey will enable us to meet that challenge successfully.
External recognition for Shell’s diversity initiatives includes:
Lynn Elsenhans, Executive Vice President, Shell Global Manufacturing, accepted the 2006 Corporation of the Year Award from the Houston-area Women’s Business Enterprise Alliance in June.
America’s Top Corporations for Women’s Business Enterprises Women’s Business Enterprise National Council 2003, 2004, 2005 Corporation of the Year Houston Area Women’s Business Enterprise Alliance 2004, 2005 Advocate of the Year Patricia Richards, Manager of Supplier Diversity and Diversity Outreach Houston Area Women’s Business Enterprise Alliance 2005 Procurement Champion of the Year Rick Mahon, Procurement Manager, Shell Oil Products US Houston Minority Business Council 2005 Corporate Volunteer of the Year Kelly White, Coordinator of Supplier and Diversity Outreach Houston Area Women’s Business Enterprise Alliance 2005 Catalyst Award 2004 Corporation of the Year Houston Minority Business Council 2004 Corporation of the Year Louisiana Minority Business Council 2004 Top 5 Companies for Supplier Diversity DiversityInc.com 2003
PDJ
Woman of Excellence Patricia Richards, Manager of Supplier Diversity and Diversity Outreach Women’s Enterprise Magazine 2003 Profiles in Diversity Journal July/August 2006
27
John Jefferson
Director of Diversity
The Lessons We Have Learned John Jefferson, director of diversity for Shell Oil Company, ensures alignment of diversity and inclusiveness efforts across the U.S.
F
or Shell Oil Company, building a culture of diversity and inclusiveness has been a continuous journey, one that began formally in the mid-1990s with a small team’s
mission “to understand the human and business possibilities of a culture in which all types of differences are valued—a culture in which diversity is appreciated as a means to high performance rather than an obstacle.” More than a decade later, Shell continues to work toward becoming a model of that culture. The energy company has been recognized nationally for its success in transforming from an organization in which employees viewed the criteria for senior leadership as “white, married, and male,” to one in which diversity and inclusiveness are not only visible at the senior management level, but also incorporated into the way business is conducted at every level of the organization. “We don’t spend much time internally talking about the ‘business case’ for diversity anymore,” says John Jefferson, director of diversity for Shell Oil Company. “It has become accepted throughout our culture. We continue to evolve in terms of achieving our goals, but I think there is universal understanding and acceptance of our diversity process across the company.” The case for diversity is especially powerful in an industry that is competing globally for the best minds in science and technology—people who can help to
28
Profiles in Diversity Journal July/August 2006
Special Feature
Shell Oil Company
solve the world’s growing imbalance in
obvious in the mid-1990s, when the ener-
1996, the company’s CEO outlined the
energy supply and demand.
gy industry was struggling with an envi-
drivers for change, and made a commit-
about
ronment of low and declining oil prices,
ment that set the tone for Shell’s ongoing
enabling our businesses to attract, retain,
operating with lean staffs and few new
diversity effort: to set and track measura-
and develop the people we need to exe-
hires. But forward-looking leaders within
ble goals. “Without accountability, we
cute our business plan,” says Jefferson. “It
Shell recognized that both internal and
will continue to select people just like us,
is essential to our success.”
external factors were signaling the need
and we won’t change fast enough,” he said.
the
for change. Internally, employee feedback
That accountability has become one
geosciences and other technical areas,
showed women and employees of color
of the backbones of Shell’s diversity and
recruiting “the best of the best” is a chal-
felt dissatisfied with opportunities for
inclusiveness efforts. Businesses are held
lenge, because the number of candidates
development. Externally, the demograph-
accountable annually through a “diversity
is limited and the number of women and
ics of the labor market were shifting.
scorecard,” and leaders’ compensation is
people of color entering these fields is
Clearly, if Shell continued on the path it
tied in part to their individual perform-
even smaller. Being able to demonstrate
was on, the company would not be able
ance relative to D&I goals. Performance
to these candidates that they will be
to attract and retain the people it needed
measures are not limited to hiring and
entering a work environment that is sup-
for the future.
promotion statistics, but also include
“Workforce
Jefferson
diversity
notes
that
is
in
portive and welcoming is crucial. The business imperative was not as
At a diversity awareness seminar for Shell Oil Company management in
participation in diversity programs and utilization of diverse outside suppliers.
Profiles in Diversity Journal July/August 2006
29
John Jefferson
Director of Diversity
Point of view: Frank Glaviano As Vice President Production, Americas, for Shell Energy Resources Company, Frank Glaviano oversees 1,000 Shell people involved in producing oil and natural gas: engineers and business professionals, as well as operations workers. We asked for his perspective based on a 30-year career with Shell: On accountability: “You can’t hold people accountable for their beliefs, but you can hold them accountable for their actions. Our measures focus on behaviors. As we embed those behaviors in the organization, we open up people’s minds to the value of diversity and create more fertile ground for changing their heads and hearts.”
A second key component of Shell’s diversity process is its employee network groups. Although informal employee networking had been in place for many years, in 1997 Shell created formal guidelines for the networks to serve two roles: as resources for leadership on diversity issues, and as a support system for development and information sharing among their members. While sanctioned and funded by the company, the networks are managed entirely by
On how Shell’s diversity initiative has changed the culture: “Beyond demographics, there’s more acceptance of diverse ideas anywhere in the organization. We’re much less hierarchical. It used to be that if you were a new engineer you didn’t speak in a meeting. Now, if you are in the room, we want to hear you. That means we challenge established norms and get all the best ideas on the table.” On reaching a tipping point: “Recruiting is a challenge right now because we’re in a hot industry—there’s a lot of hiring with a limited supply of new professionals coming into the field. As we recruit women and people of color, they are looking at our current workforce demographics. The more diverse we are, the more appealing we are as a place for them to build a career. We’re approaching a tipping point where diversity becomes self-perpetuating. We’re not there yet, but every new hire helps.” On the diversity journey: “It’s been a long and sometimes slow journey. In the beginning we basically had to teach the organization how to spell diversity. Now we’re past the awareness phase—or should be—and it’s about making diversity a part of everything we do.” On diversity and Hurricane Katrina: “In the days and weeks following Katrina, there was a feeling of family. I didn’t see any differentiators or labels—we all pulled together. It was love, if I can use that word in an organizational sense. It was an experience unique in my career. If we could always behave in that way, we wouldn’t need to promote diversity— we were living those values.”
30
Profiles in Diversity Journal July/August 2006
employee volunteers with support from the diversity office. “In my opinion our employee network program is best in class in our industry and among the best in the Fortune 500,” Jefferson says. “We have worked to make sure they serve a business purpose and are not seen as social clubs. We now track the performance of our networks with their own scorecard. Each network is required to have a business plan for the year before its budget is approved.” Supplier diversity is a third major thrust for Shell, and one that is growing in importance as outsourcing becomes a larger element in the way the company operates. Shell seeks out diverse suppliers in all facets of its business and works with major vendors and partners to help them strengthen their supplier diversity.
Special Feature
Shell Oil Company
“Supplier diversity helps us achieve our business goals by giving us access to a broader range of resources at both the first-tier and second-tier levels,” Jefferson says. “From a broader perspective, it also builds our credibility and goodwill in the community, which enhances our brand and our reputation—and that’s good for business, too.” Along its journey, Shell has also become an active proponent of diversity
Members of several Shell employee networks joined together to support a walk benefiting the United Negro College Fund.
in the community. The company has been involved in creating and supporting a number of organizations working
market demographics by the end of 2009.
to improve opportunities for women,
One issue is that historically,
people of color, people with disabilities,
engineering and geosciences have not
and the gay, lesbian, bisexual and trans-
attracted large numbers of people of
gendered (GLBT) community.
color. In response, Shell in 2004 created
The results of Shell’s diversity com-
a workforce development initiative with
mitment are dramatic, particularly in
one of its goals being to encourage
the area of advancing women. In 2005,
students to get involved in math and
women represented 26.5 percent of the
science during elementary and second-
total employee population at Shell,
ary school.
compared with 22 percent at year-end
“It is a long-term approach to the
1997. Women composed 34 percent of
issue,” says Jefferson. “The idea is to
senior executives and 23 percent of its
increase the talent pool. Shell would not
management workforce.
be the only beneficiary, but by being vis-
Progress on workforce representation of people of color has not been as rapid. “We are moving in the right direc-
ible to these students we hope to generate goodwill that will encourage them to
“In my opinion our employee networks are best in class in our industry and among the best in the Fortune 500. We have worked to make sure they serve a business purpose and are not seen as social clubs.”
think of us when they enter the field.”
tion,” says Jefferson. To close the gap,
The diversity journey for Shell over
Shell has enhanced its focus on this area,
the past decade has been a learning
with a goal of reaching parity with the
process.
Profiles in Diversity Journal
July/August 2006
31
John Jefferson
Director of Diversity
Point of view: Cathy Lamboley
“It has been a continuous series of small ‘Aha!’ moments,” says Jefferson.
Catherine Lamboley is senior vice president, general counsel and corporate secretary of Shell Oil Company. She is recognized nationally as an advocate for diversity in the legal profession and as the architect of the innovative supplier diversity approach Shell launched in its legal services area, in which seven of 27 firms that handle Shell’s business have partnerships where women and people of color outnumber white men. We asked Cathy her perspective on Shell’s diversity initiatives: On pushing suppliers to improve their diversity: “Why exert market pressure? We value diversity among our suppliers for the same reasons we value it internally—because it is good business as well as the right thing to do. As we explain to our suppliers, we value having people of diverse backgrounds who can provide different ways of looking at things that can lead to better solutions.”
“The lessons we have learned help us to continue to improve, and can help other companies that are on this journey with us.” Jefferson cites three key lessons: First, to be successful, the diversity process requires a commitment of time and energy by many people at all levels of the organization. Second, diversity must be integrated into the business processes and systems of the company in order to ensure consistent, effective implementation and longer term sustainability. Finally, diver-
On the scorecard Shell uses to evaluate its legal firms: “To retain and advance talented women and people of color, it is critical that those lawyers have the opportunity to do challenging work and to have meaningful interaction with clients. Tracking, reporting, and follow-up cause the firms to be very focused on training, mentoring, work assignments, and leadership development so that the women and men of color are prepared to take on those opportunities.”
sity efforts must include measurable, achievable goals that leaders are held accountable to deliver. Beneath all three learnings is the understanding that diversity plays a strategic role in the business’s ability to
On making diversity work: “It takes a commitment of time and energy from many people at all levels of the organization. Generating and sustaining that commitment requires that people understand the benefits of diversity. It has to be managed strategically so that diversity creates a competitive advantage, making the company an employer of choice, a partner of choice and a supplier of choice.”
succeed. “Our diversity and inclusive-
On Shell’s diversity journey: “We’ve come a long way since I first started with Shell 27 years ago. Back then, senior leaders were generally perceived as ‘white, married, and male.’ Now the values of diversity and inclusiveness are woven into the fabric of our organization and we firmly believe these values are critical to our success.”
Jefferson points out. “Managed strategi-
ness process is coordinated through human resources because it is a human systems process, but it is owned by the business and functional leaders,”
cally, diversity and inclusiveness create a competitive advantage as the company becomes an employer of choice, a partner of choice and a supplier of choice.”
On her own journey: “We are all challenged to define what we will do to enrich our profession and what we want our legacy to be. For me, that deeper level is about providing opportunity for women and minority lawyers and building community within our profession.” 32
Profiles in Diversity Journal July/August 2006
PDJ
Special Feature
Shell Oil Company
for Diversity and Inclusiveness As the workforce becomes increasingly diverse, the company can gain a distinct competitive advantage by attracting, retaining and developing talented people with diverse backgrounds and perspectives. Effective diversity and inclusiveness management helps remove barriers to productivity and provide an environment in which these employees can contribute fully toward achieving Shell’s business goals.
Shell hopes to attract more professionals from diverse backgrounds to help address the challenge of maintaining an energy supply for the future.
Employees who feel respected, valued, and connected develop stronger relationships and become more involved in their work, which leads to enhanced teamwork, increased innovation and productivity, lower staff turnover, lower absenteeism, and reduced costs. Shell’s customer base is becoming more diverse. By having a workforce that reflects the demographics of the consuming public, we can more effectively understand, anticipate, and respond to customers’ needs. An effective diversity process helps ensure that federally mandated affirmative action goals are addressed and achieved. Promoting diversity and inclusiveness enables the company to build relationships and demonstrate respect and fairness in its dealings with suppliers, partners, the government, and other stakeholders. Promoting diversity and inclusiveness enhances our reputation and promotes loyalty, which, in turn, earns us the right of access and the license to operate and grow. Promoting supplier diversity and supporting the growth and development of women- and minority-owned businesses within our community helps improve the climate in which we and our partners conduct business. By promoting diversity not only within our own ranks but also in the communities in which it operates, Shell is helping make these communities better places for its employees to live and work.
Profiles in Diversity Journal
July/August 2006
33
Flo Perry
Senior Advisor, Diversity
Employee Networks: Modeling Diversity and Inclusiveness Flo Perry, senior advisor, Shell U.S. Diversity Office, shares the internal and external role of the company’s employee networks.
W
hen Shell established its first formal employee network groups in 1997, the guidelines made it clear that these were to be more than just social groups. No
one could have imagined just how much more they would become. “Our networks are an extension of the diversity office,” says Flo Perry, senior advisor, Shell U.S. Diversity Office. “They allow us to tap into the minds and hearts of our employees and know what issues we ought to be looking at.” From the outset, the networks were assigned two roles: first, as resources to the company’s leadership teams on business- and people-strategy issues; and second, as a support system and forum for development, information sharing, and education among their members. Over time, a third role has emerged as the network groups have become involved in community and external business activities: representing the Shell brand and modeling its diversity and inclusiveness behavior to the external world. About 20 percent of Shell’s 22,000 U.S. employees participate in one or more of its eight network groups. The initial five groups represented Asian-Pacific, Black, women, Hispanic and GLBT (gay, lesbian, bisexual and transgendered) employee populations. Four groups have been added, including a network for employees with disabilities, regional networks in Louisiana (where 20 percent of Shell’s U.S. employees are located) for Blacks and for women, and a network for Generation Xers.
34
Profiles in Diversity Journal July/August 2006
Special Feature
Shell Oil Company
“The real strength of our network
explains. “There are always more ideas
groups is that they are aligned with our
than there are dollars. My role is to chal-
business objectives,” says Perry. “We hold
lenge the network leaders to show how
the groups accountable for supporting our
each activity contributes to meeting their
business and, in turn, the business leader-
objectives and how it adds value to
own spending, and did it build strong
ship supports the time and dollars that are
the organization.”
partnerships with external groups?
invested in the networks.”
rates a network group on four key areas: • Attraction, retention and development • Enhanced business practices: Did the group model supplier diversity in its
Guiding this process is Shell’s net-
• Brand, reputation and market share:
While each network is self-directed
work scorecard, a tool for assessing the
How active was the group in events
by elected volunteers, the Shell U.S.
progress of employee network groups. An
Diversity Office via Perry provides over-
assessment tool was initiated in the late
sight and serves as a resource to them to
1990s as a self-assessment tool for the
ensure they are meeting their goals and
networks intended to be used for devel-
objectives. At the start of each year, Perry
opmental purposes. The current score-
meets with the leaders of each network to
card, which holds networks accountable
review their annual plan and approve a
for delivering specific business objectives,
budget for the year.
and which mirrors the U.S. Diversity
“We start with a zero-base budget
Scorecard, was the first of its kind when
and prioritize their activities,” she
Shell initiated it in 2003. The scorecard
that directly supported Shell’s external brand or image? • Partnerships: How active was the group in partnering with other corporate events and with other network groups? Each area is scored on a four-point scale from “red” (improvement needed) to “blue” (premier). Network leaders and their steering committees establish annual
Profiles in Diversity Journal
July/August 2006
35
Flo Perry
Senior Advisor, Diversity
progress goals. While the first three areas
issues. A structured mentoring program
information technology employees. A
focus on what networks do, the last goal
using both one-on-one pairings and
network team assisted in determining
measures how they do it, and its score
small-group “mentoring circles” helps
in this area essentially represents each
employees
network’s D&I score. Not every group is
role models.
expected to reach premier status in all categories, but most groups strive for the higher score.
from
senior-level
Each network also creates largerscale programs. A few examples:
suggestions for improvement, such as training mid-level managers about Asian-Pacific value systems and culture. • Shell’s Hispanic employee network group has organized a series of Juntas,
• The employee network group for
based on the Spanish conversational
women sponsored a workshop in
term for “meetings.” These limited-
retention and development is the heart of
which four senior women from Shell
size sessions bring employees together
each network’s programming. Network
shared their personal lessons and best
with experienced leaders in a format
practices around three key ingredients
that allows everyone to participate.
Among the four areas, attraction,
members participate in recruiting fairs and other Shell recruiting activities, speak at new hire orientation sessions and host welcoming socials to make new employees feel at home. They also organize
36
learn
background factors and developing
for increasing career opportunity: defining success, becoming known, and finding or being a mentor.
By participating, network group members develop professionally, learn how to navigate the corporate system,
• Members of Shell’s Asian-Pacific network group worked with the diversity
and gain visibility with senior leaders. Beyond the structured activities, the
lunch-and-learn sessions, both to meet
office of Shell’s information technology
members’ needs and to reach out and
business to identify opportunities to
groups help members bond with the
educate others about culture and gender
improve retention of Asian-Pacific
organization just by providing a place to
Profiles in Diversity Journal July/August 2006
Special Feature
Shell Oil Company
Shell’s Hispanic (far left) and Asian-Pacific (left) employee networks are visible representatives of Shell in the community.
are rated on how well they model supplier
group served on the organizing commit-
“It gives employees a place to be
diversity, with a goal of spending more
tee for a global technical symposium on
where people are like themselves,” says
than 50 percent of discretionary dollars
Chinese petroleum and petrochemicals.
Perry. “That sense of belonging creates a
with certified minority- or women-
They recruited a Shell executive who
strong link that both attracts people to
owned suppliers. They are also encouraged
serves as an advisory board member to
the organization and encourages them to
to build partnerships with outside minor-
the network to speak at the symposium
stay once they are part of the Shell family.”
ity business groups. In one case, Shell’s
about successful business partnerships.
Part of the retention and develop-
Hispanic network has partnered with
As an outgrowth of this involvement, Shell
ment role of the networks is serving as a
other organizations such as the Houston
ended up forging a partnership with
conduit for information about the needs
Hispanic Chamber of Commerce to
PetroChina Company Ltd. to develop a
and issues affecting group members. This
organize workshops to help non-certified
major natural gas project in China.
information helps Shell respond to
minority-owned
emerging diversity issues. In turn, the
certification.
belong within the larger employee body.
businesses
obtain
This year, a Shell Asian-Pacific network member is chairing a diversity
Shell U.S. Diversity Office makes sure
The network groups are also expected
summit for the Association of Chinese
the network leaders have access to senior
to be visible externally in ways that sup-
leaders and that new executives are intro-
port Shell’s brand and reputation, partic-
Network groups also reach out
duced to the networks.
ularly within their own affinity commu-
to the community through volunteer
Paralleling the standards set for
nities. In 2004, for example, two mem-
service projects. Members of Shell’s
Shell’s business units, the network groups
bers of Shell’s Asian-Pacific network
GLBT network have taken on projects
American Professionals.
Profiles in Diversity Journal July/August 2006
37
Flo Perry
Senior Advisor, Diversity
Flo Perry, shown speaking at an event for Shell interns, notes that the employee networks are important in attracting, retaining and developing employees.
in Houston’s Montrose neighborhood,
an hourly operations employee, a manager
pool of math and science talent coming
which has a large gay population, and
who discussed how to cross over to a
out of colleges and technical schools in
the Hispanic and Black networks have
different functional or skill area, Shell’s
the future, is an excellent example of how
participated in home repair and other
chief
Shell’s diversity efforts align with its
projects in the city’s black and Hispanic
resources professional.
communities.
financial officer, and a human
business goals.
Externally, for the past two years,
The networks banded together dur-
Shell also encourages partnerships
several network groups have joined
ing the year to support a United Negro
that further align the network groups
together to support Shell’s sponsorship of
College Fund walk and the Susan G.
with other Shell activities, such as the
the Education Rainbow Challenge
Komen Race for the Cure, which
annual United Way campaign, and create
(ERC), a nonprofit organization that pro-
supports breast cancer research.
opportunities for the groups to work
motes interest in math among inner-city
“As our networks support each other,
together and support each other.
children in primary grades. Network
they form a picture of what diversity and
X,
members volunteer at ERC competitions,
inclusiveness ought to look like,” says
Hispanic, and women’s networks recently
helping with registration, test monitoring
Perry. “They model the behavior we want
collaborated to present a seminar on
and judging, and other tasks. This proj-
to see throughout the organization.”
career paths, including presentations
ect, part of Shell’s long-term Workforce
from a woman supervisor who began as
Development Initiative to increase the
Internally,
the
Generation
PDJ
38
Profiles in Diversity Journal July/August 2006
Special Feature
Shell Oil Company
Purpose Statement
Shell employee networks exist primarily to: • Assist in fostering and enhancing the professional growth and career development of its members through network sponsored programs and activities. • Facilitate improved communications between network constituents and company leadership. • Bring together employees with similar interests and experiences, and provide better access to informal information that may be helpful to employees in becoming more successful within the company. • Provide additional opportunities for members to develop and demonstrate leadership skills. • As required, support company recruiting efforts and formal talent management processes. • Provide perspectives and act as a resource on emerging/niche markets. • Assist business leaders by generating ideas to enhance revenue and our customer base. • Support Shell’s community outreach efforts. • Assist with company mentoring and on-boarding activities, and staff retention efforts. • Proactively seek opportunities to assist with diversity related issues that are important to the business. Well-managed network groups provide a resource for business and diversity leadership, diversity councils and diversity action teams. They provide a forum to participate in developing solutions for issues that are viewed as organizational barriers to inclusiveness and the productive performance of its members. We expect these networks to help, when appropriate, with resolution of business issues through influence, education, and collaboration.
Profiles in Diversity Journal July/August 2006
39
Patricia Richards
Manager, Supplier Diversity and Diversity Outreach
Supplier Diversity: Contributing to the Business Value Stream Patricia Richards, manager, supplier diversity and diversity outreach, shares initiatives and success stories involving M/WBE utilization and development.
I
n every Shell discussion of diversity strategies, the phrase “aligning with our business objectives” is a recurring refrain. Supplier diversity is no exception. “First and foremost, there has to be a business incentive for diversifying the supply
chain,” says Patricia Richards, manager, supplier diversity and diversity outreach. “For us, the business benefits have included innovative ideas received from diverse suppliers, and finding that these suppliers also have a unique ability to deliver quality and competitivelypriced products and services necessary to run our operations.” An indirect benefit, she notes, is that contributing to the revenue-generating ability of local diverse businesses builds healthier communities where Shell operates and employees live and work. For the past several years, Shell has gone beyond seeking out and utilizing minorityand women-owned business enterprises and has begun reaching out to increase business access for minorities and women in the supplier community by sharing their commitment with major suppliers. “We set certain contractual expectations of our suppliers,” says Richards. “Then we let them determine how to demonstrate supplier inclusion as they bid for Shell projects. There is an education process involved, but ultimately it comes down to looking at the whole value stream—how can we get all our business partners to work together to deliver goods and services in a cost-effective way that is in keeping with Shell’s commitment to diversity.”
40
Profiles in Diversity Journal July/August 2006
Special Feature
Shell Oil Company
Some of Shell’s biggest successes
criteria included a commitment to diver-
capabilities and discuss business opportu-
have occurred in the professional services
sity. Of the 27 firms selected, seven had
nities. As a result, in the first year of this
area, especially in legal services.
partnerships where women and people of
initiative, Shell exceeded the target goal
color outnumbered white males.
by 61 percent.
In 2000, Shell launched an initiative with its key law firms to require that they
In 2004, Shell was one of 23 corpo-
“In 2005 it was a local effort, but we
detail on invoices the hours worked and
rate partners who committed to doubling
expect this success to ignite an increased
fees generated by all women and men of
their spending with minority-owned pro-
emphasis on diversity in professional
color and report on minority and women
fessional services firms in the greater
services utilization in other regions where
business utilization.
Houston area over the next five years.
we operate,” says Richards. “Professional
This initiative was launched by the
services can be a particularly difficult area
sion to narrow down its number of law
Greater
to gain traction for minority and women
firms to create a core group that would
Houston Minority Business Council.
Three years ago, Shell made a deci-
Houston
Partnership
and
business enterprises.
handle the majority of its legal work. The
Shell held three professional services
“There is strength in numbers,”
rationale was to build stronger relation-
forums in Houston during 2005, match-
Richards points out. “Working together,
ships with firms that had a deeper under-
ing 40 minority business owners with
corporations can elevate the potential
standing of Shell’s business. The selection
internal decision-makers to assess their
business development of women- and
Profiles in Diversity Journal July/August 2006
41
Patricia Richards
Manager, Supplier Diversity and Diversity Outreach
Patricia Richards recently met with vendors at a supplier development workshop.
minority-owned firms, and address issues like inclusion in global contracts.”
42
ice and contract management services.
Currently, business units and depart-
The partnership resulted in a win-
ments are engaged in dialogue with prime
Another success story is in the office
win situation for all: Shell was able to cut
suppliers and setting expectations that
products area. Last year, Shell leveraged
costs on its annual spending on office
increase the accountability of these firms
volume requirements for office products
supplies and enjoy increased efficiencies.
to source from minority- and women-
nationwide through a comprehensive
Lee Office Solutions, a Houston-based
owned firms. A greater use of inclusive
online bidding process that required
MBE, benefited from this partnership
contract language, setting second-tier
prime suppliers to team with capable
and a mentoring relationship with
targets and objectives, and creating tools
minority firms in the bidding process.
Corporate Express—helping Lee to
and templates to measure supplier
The firm that offered the most innovative
develop and win other contracts in
performance, send a strong message
and cost-effective model won the bid.
Dallas and Houston, using the same
regarding Shell’s commitment to second-
Shell initiated a unique partnership
alliance model.
tier efforts. As a result, the partnerships
agreement with a consortium consisting
There are many other success stories
between Shell businesses, prime suppliers
of one majority partner, Corporate
involving M/WBE utilization and devel-
and M/WBEs will be leveraged—creating
Express, and three MBEs to buy a wide
opment in all business operations. Last
better results for Shell’s supplier diversity
variety of office products. Corporate
year, Shell spent $445 million with
program.
Express provides distribution and logis-
minority- and women-owned firms
tics support in the Star Consortium
nationwide.
“We have been working with our key prime suppliers to help them understand
Alliance, while three minority-owned
Shell also launched a more robust
why this is important—for us and for
firms and one woman-owned firm pro-
second-tier process in 2005 to increase
them,” says Richards. “They need to see
vide delivery, warehousing, customer serv-
opportunities at a second-tier level.
what they will get out of it.”
Profiles in Diversity Journal July/August 2006
Special Feature
Shell Oil Company
for M/WBEs
One example where Shell has already
underrepresented groups ask for access
been successful in this area is with
and an opportunity to participate in busi-
Halliburton, a major contractor of
ness structures. As we work with the
Patricia Richards, manager of
oilfield services to Shell’s exploration and
global supply chain, we are exploring and
Shell’s Supplier Diversity and
production business.
discovering new ways to increase the par-
Diversity Outreach Office, offers
“A number of years ago, Shell and
ticipation of these groups and to link
other oil and gas corporations engaged
their participation to inclusion efforts in
with this large supplier and encouraged
the United States. We are learning there
them to build their own supplier diversity
is more than one way to build a diverse
want to do business with Shell or
program (and report M/WBE spend).
supply system.”
another major corporation:
these words of advice for minorityand women-owned businesses that
Today we see Halliburton actively
To address current and future
engaged in local minority and women
challenges, Shell leaders, economic devel-
business councils and promoting diversity
opment council members and supplier
to articulate your unique selling
because they believe in the business case
diversity advocates in each business par-
proposition and how your services are
for doing so,” says Richards. “They were
ticipate in both local and national organ-
delivered in a way that differs from
asked to the table but stayed because they
izations that support supplier diversity,
your competitors’.
saw the benefits. We look forward to
including the National Minority Supplier
similar progress by other primes.”
Development Council and the Women’s
Richards feels the next big challenge
Business Enterprise National Council.
is to continue to grow a robust supplier
As part of her diversity outreach
diversity program in the United States
responsibilities, Richards and her team also
that is fully integrated with global supply
work closely with nonprofit organizations,
chain activities and business unit objec-
such as the National Urban League and
tives.
the
Globally, the focus must move
U.S.
Hispanic
Chamber
of
• Know your value proposition. Be able
• Take some effort to get to know the corporation and its prime suppliers. Look for ways to partner with those larger suppliers in addition to pursuing direct business opportunities. • Participate in training programs and use them to accelerate your company’s
from defining supplier inclusion/supplier
Commerce. She facilitates relationships
growth and capability. Continue to find
diversity as merely “local content” to
between those organizations and Shell
ways to build relationships by attending
being reflective of indigenous groups
businesses and business leaders to find
business opportunity events offered by
important to sustaining strong communi-
ways to work together that benefit both
minority and women business councils
ties and building a strong brand. “To this
the organizations and Shell.
and corporations.
point, what we have done has been very
“It’s all part of Shell’s commitment
U.S.-driven and U.S.-focused,” says
to diverse communities and a strategy to
Richards. While her scope of responsibil-
increase the collaboration of Shell busi-
ity is domestic, she has begun to interface
nesses with important community and
with leaders throughout Shell’s global
constituency organizations in ways that
organization. “In other countries, we are
support mutual goals and objectives,”
beginning to see visible minorities and
says Richards.
PDJ
• Consider partnering with one or more WBE or MBE suppliers in order to compete for business contracts. By doing so you can more rapidly show greater capacity in vying for contracts that might otherwise be beyond reach.
Profiles in Diversity Journal July/August 2006
43
Frazier Wilson
Program Manager, Workforce Diversity
Taking the long view: Shell’s Workforce Development Initiative Frazier Wilson, program manager for the workforce development initiative, is focusing on the future with science and math educational outreach.
F
or Shell, a major business challenge is the need to attract talented people into the engineering and geosciences fields. This expertise is essential to the company’s
mission to explore and develop new energy resources for the future; yet majors in engineering, geology, and physics have been experiencing a decline in enrollment since the 1980s. Shell’s workforce development initiative, launched in 2004, is a multi-pronged effort designed to increase the flow of candidates by identifying talent and encouraging interest in math and sciences beginning with elementary and secondary students. The workforce development initiative shares a natural affinity with the company’s diversity efforts. “Both initiatives are working toward similar goals—to increase the available pool of talent in our technical ranks,” says Frazier Wilson, program manager for the workforce development initiative. “And because women and minorities continue to be underrepresented in these fields, this is a special area of focus. The key is to attract talented people early and influence their education and career choices.” The workforce development initiative encompasses a number of programs, from math and science camps and competitions to career fairs, scholarships, and internships. “We’ve refocused all of our educational outreach, including scholarships, to the math and science areas,” says Wilson. “That aligns with our business needs for the future.” In addition to promoting geosciences careers, the initiative also encourages students to consider plant, refinery, and offshore operator and craft careers that relate to the energy industry. Geographically, the initiative concentrates on areas where Shell has a major
44
Profiles in Diversity Journal July/August 2006
Special Feature
Shell Oil Company
professional development for elementary and secondary science teachers. The collaborative is a partnership between Shell and several universities—The University of Texas, Louisiana State University,
Southern
presence or conducts significant recruit-
Network members also volunteered last
Louisiana
ing, which covers a lot of ground. Key
year as part of Shell’s sponsorship
Grambling State University.
areas for elementary and secondary edu-
of MATHCOUNTS, a national enrich-
cation efforts include Texas, Louisiana,
ment,
competition
recruitment teams that focus on over
Georgia, Pennsylvania, Colorado, and
program that promotes middle school
twenty college campuses, including
Florida.
mathematics achievement.
historically black and Hispanic serving
coaching,
and
Tech
University,
University,
and
At the college level, Shell has created
Wilson works to make sure Shell’s
Network members in technical roles
institutions, that have been identified as
diverse work force is represented in
are also frequently asked to speak to classes
key recruiting sources for Shell. Shell sur-
youth activities. At the twice-yearly math
and career fairs on career opportunities in
veys its networks to find volunteers for
competitions sponsored by Shell and
math and science fields.
these recruitment teams, which are on
organized by the Education Rainbow
Beyond encouraging students, Shell
campus four to eight times a year hosting
Challenge, a nonprofit organization that
has reached out to reinforce science and
events, speaking to classes, and participat-
promotes interest in math among inner-
math teaching, especially in urban
ing in campus activities.
city children in early grades, volunteers
schools. One innovative project imple-
“Our campus recruitment teams are
from Shell’s employee networks handle
mented in 2005 is a regional collaborative
there to increase awareness about oppor-
registration, judging, and other roles.
in Texas and Louisiana that provides
tunities at Shell and to present our
Profiles in Diversity Journal July/August 2006
45
Frazier Wilson
Program Manager, Workforce Diversity
Shell employees participated in the Hispanic Engineering, Science and Technology Conference in 2005. company’s value proposition to potential
students in a mechanical engineering
we are promoting interest in our industry,”
candidates,” says Wilson. “Many students
design class were asked to design a device to
Wilson says. “But when we get to recruit-
are not aware of the many things Shell is
meet the needs of a child with a disability.
ing talent, that’s where we separate and
involved in and how many areas we
While energy companies compete
recruit for—not just geologists and engi-
intensely to hire the best talent, Shell and
The workforce development initia-
neers, but accounting, finance, and
its peers have realized that increasing the
tive is a long-range project, but Wilson
industrial relations majors as well.”
pool of available talent benefits the industry
notes that there are visible measures of
The recruitment team members
as a whole and that working together to
success even at this early stage.
have a responsibility to uphold the Shell
encourage women and minorities to enter
“We do a lot of reputation surveys
brand as well.
math and science fields would enable
and we are seeing Shell’s reputation
them to accomplish more than their indi-
enhanced among campus groups,” he
vidual efforts could achieve.
notes. “We are also seeing improvements
“One reason we are on campus is to address students’ perceptions about ‘big oil,’ and build their understanding of our
One program receiving attention
in our ability to hire diverse talent—this
business,” says Wilson. “We’re able to talk
from the industry is the Fort Valley State
year, our internship hires were almost 50
about our involvement in alternative
Cooperative
Development
percent women and minorities. And we
energy, our concern for the environment,
Program (CEDP), which has been
are also beginning to see more interest in
and our ethics. We want them to know
supporting and encouraging minorities
engineering fields among women and
that we are about more than just drilling.
and women interested in energy careers
minorities. At the same time, the univer-
Our campus involvement is part of our
for the past 13 years. The Fort Valley
sities are picking up on the message and
social investment effort and supports our
State CEDP, based at Fort Valley State
looking more closely at ways to attract
brand and reputation at the same time
University, a historically black university
and retain women and minorities in their
that we are looking for talent.”
in Georgia, hopes to leverage the
engineering programs.
To reinforce Shell’s social investment efforts at the college level, it supports
46
become competitive.”
Energy
industry’s united efforts to increase the talent pool.
“So we are making progress at the college level, but it will take time to see the
students participating in design competi-
“We’ve discovered that we can work
fruits of our efforts at the elementary school
tions. One such sponsorship occurred at
together to increase awareness about
level. But we’re taking the long view and
an
at
technical careers with students at an early
looking to build the future of our industry.”
Michigan State University, in which
age and be less proprietary about where
PDJ
annual
design
competition
Profiles in Diversity Journal July/August 2006
Len Cooper, senior vice president—supply chain, Halliburton, takes us inside the company’s supply chain programs. GLOBAL / MARKET / INDUSTRY ISSUES Please describe your company’s global presence: • Number of employees: Halliburton total: more than 100,000 / Energy Services Group total: 40,000 • International businesses/branches: Halliburton operates in more than 100 countries.
Please give your definition of supplier diversity. Creating mutually beneficial business relationships that deliver value to our company and our customers. Supplier diversity is a proactive business process which seeks to diversify our supplier base, expand business opportunities, and develop a supply chain that reflects the diversity of the communities and countries where we work.
What are the components of Halliburton’s approach to developing a global supply base? The global marketplace? Our approach to developing a global supply base is driven by a robust market that has increased the need to expand and leverage local suppliers in international locations. We created an organizational structure comprising regional supply chain managers. This regional structure maximizes the development of local resources and expands our strategic sourcing efforts. By increasing sourcing in low-cost countries, buying direct and building local capacity, we stimulate local economies and reduce manufacturing cycle times.
Company headquarters: Houston, Texas Company Web site: www.halliburton.com Primary business: Energy Services Industry ranking (i.e. Fortune 1000): 103 2005 revenues: $21 billion
Is overall supplier diversity management largely U.S.-based or present throughout the world-wide organization? Currently, our supplier diversity efforts are focused primarily in the United States, because some of our largest customers are U.S.-based and the United States has the most supplier diversity requirements. But we are rapidly leveraging our regional components and involving our procurement leaders across the globe. For example, a significant increase in demand for a key commodity in the United States led to tight supply. We asked our regional procurement leaders to identify suppliers in their areas that
Profiles in Diversity Journal July/August 2006
49
Interview
Len Cooper Halliburton
could provide Halliburton with this product. By tapping into our regional resources, we were able to secure additional supply of the commodity. Engaging our regional supply chain organizations will also ensure that we are positioned to meet local content and customer requirements anywhere we operate. In many parts of the world, there is little standardization of local content or what we know as supplier diversity programs. Halliburton is aligning our international efforts with our U.S. model and engaging business leaders and organizations around the world to effect local economic development in countries where we operate.
How does a company as established / fast-growing / fast-changing as yours keep up with diversity development throughout the organization? We utilize a combination of company policy, training, communication, and demonstrated leadership to maintain our focus on diversity. We provide instructor-led and Web-based training to employees to keep them engaged in supporting this important part of our business strategy. Last year, we implemented the Strategic Training Exchange Program (STEP), which brings supply chain professionals from around the world to the United States for intensive training and develops local leadership in every region. Programs like STEP create transparency in business philosophy and processes across the organization, allowing us to expand our impact to every part of Halliburton.
Are there unique opportunities in your particular industry for implementing diverse supplier programs? There are unique opportunities wherever you create them. By setting a vision to be the industry leader in supplier diversity among oil field services companies, we 50
are always building on Halliburton’s tradition of being an innovator in the industry. We are open to trying new concepts and ideas that will distinguish us from the competition. In terms of supplier selection criteria, I believe given the opportunity, diverse suppliers can successfully compete and win our business. Our diverse supplier base proves that point regularly. To that end, we do not establish separate criteria for diverse suppliers. Supplier diversity is seamlessly integrated into our sourcing process. Frankly, it is just how we do business. Our strategic sourcing process has seven steps and there is a check point for supplier diversity embedded in each one. This allows us to ensure that we have developed the most inclusive sourcing strategy possible while maintaining our quality, cost and customer service standards. For example, in our Digital and Consulting Solutions business, we are working with a minority supplier to expand their operations in one of our high growth markets. Growing with us can potentially double the supplier’s business with us, as well as expose them to our customers that could also use their services. This type of business development helps everyone—our company, our supplier, and our customer. We count on our suppliers to support our vision and push them to bring creativity to our supply chain. As a result, we are seeing new partnerships form between our traditional suppliers and diverse suppliers that bring value to our organization and our customers.
Do international issues ever get in the way of corporate support for supplier diversity objectives and processes? What kinds of strategies does the company employ in dealing with them? Dave Lesar, our CEO, is committed to increasing diverse supplier utilization wherever we operate in the world. Since we operate in over 100 countries, it is challenging to standardize some processes. We are finding that as we broaden our supplier diversity efforts as an interna-
Profiles in Diversity Journal July/August 2006
tional company, we must customize our strategy and approach regionally to be sensitive to local requirements and customs. While some countries have formal requirements, the majority do not. Therefore, in many areas we are trailblazers and we are learning, adapting and changing as we move forward.
CORPORATE LEADERSHIP What resources (financial and manpower) are allocated to supplier diversity? For more than a decade, Halliburton has employed designated full-time staff professionals to lead our supplier diversity effort, allocating more than a half-million dollars annually to support the initiative. As it relates to other resources that support supplier diversity, Halliburton created a three-tiered support structure. The Executive Advisory Board (EAB) comprises senior level executives across all areas of the company to serve as chief advocates; a Supplier Diversity Council (SDC) made up of company directors who manage the business day-to-day; and Supplier Diversity Champions located in business units around the world who assist suppliers in navigating our large and complex organization.
How do you measure attitudes or assess their performance in supplier diversity? We set annual targets to drive performance and deliver results. The Executive Advisory Board and Supplier Diversity Council monitor progress towards these goals quarterly. We have also designated supplier diversity goals in individual employee Personal Performance Reviews (PPRs) that measure individual performance and factor into our annual compensation structure. We provide resources and information to our business units and individuals to help them meet their targets and succeed, and we have received positive feedback about this assistance from across the organization. To truly effect cultural change there must be constant communication of the value that diversity brings to our organization and the supply chain. The key is that diversity is not one person’s job; it is the collective contributors that make it work for us.
Interview
Len Cooper Halliburton
“My philosophy has been to try to surround myself with people who are smarter and more talented than I am, then get out of their way and let them do what they do best.”
Len Cooper
Above: Len Cooper discussing supplier diversity Left: Len Cooper (seated center) meeting with Supply Chain Management Program participants and summer interns
enhances the ability of regional teams to work on projects and provides for interaction among diverse groups of people globally.
Is supplier diversity a linked/compensable annual objective for the executive management team? We are committed to our supplier diversity vision—and we believe in leading by example. Yes, supplier diversity is tied to the annual objectives of the executive management team.
How do you reward special supplier diversity initiatives or contributions? What accountability do you employ to meet objectives? We utilize Halliburton’s compensable Maximizing Value-Added Performance (MVP) program to recognize employees that go above and beyond to support
company initiatives. The MVP program underscores our commitment to excellence and continuous improvement, encourages the attitudes and behaviors we strive for, and recognizes individual role models within the supply chain organization. We also have departmental programs to recognize individual project contributors.
How does your organization deal with/train for crosscultural competencies for its leadership? Halliburton is developing core competencies in all areas, including diversity by job classification throughout the supply chain organization. We provide instructorled and Web-based training on diversity. We have a matrix reporting system that
How are decisions about supplier diversity made in your organization? Is there a diversity council and who heads and serves on it? Day-to-day decisions about supplier diversity are made by the manager of global supplier diversity and supported by her staff. The Executive Advisory Board establishes supplier diversity performance metrics to ensure alignment with business strategies, serves as policy advisors, assists in removing roadblocks, and demonstrates commitment to supplier diversity by participating in external organizations and events. The EAB is co-chaired by two corporate executives: Lawrence Pope, Senior Vice President of Human Resources, and Margaret Carriere, Senior Vice President and Corporate Secretary. The Supplier Diversity Council reviews and monitors the performance of each department in the company in
Profiles in Diversity Journal July/August 2006
51
Interview
Len Cooper Halliburton
achieving supplier diversity goals and metrics. The SDC is responsible for implementing strategies to ensure its success. The Supplier Diversity Champions are embedded within the organization and work to connect diverse suppliers to immediate business opportunities. The champions are our frontline liaisons to identify community resources and foster relationships with local business development organizations.
What fact(or)s make 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? Our vision is to become the global leader in supplier diversity among oil field service companies. We are confident we are moving in the right direction, because supplier diversity best practices guide our objectives and processes. We benchmark other world-class leaders in this area to ensure continuous improvement. Our supplier diversity program is gaining recognition in the industry. Just this past year, Minority Business News named us one of the top 50 corporations for supplier diversity in Texas. Women’s Enterprise magazine named our program manager among the top 100 women impacting supplier diversity. Our customers are also providing great feedback and support of our initiative. This creates the competitive advantage we are confident we can maintain in the industry.
SUPPLIER / EMPLOYEE INCLUSIVENESS How does your company gauge supplier diversity progress? What are the tests, 52
measurements and benchmarks (metrics) that indicate where the company is on the inclusion graph?
ply chain professionals worldwide. By communicating the successes, we spark ideas and broaden opportunities for suppliers everywhere.
We established key performance indicators (KPIs) to gauge our progress and measure our success. These benchmarks are evaluated annually to ensure continuous improvement. Some of our KPIs include:
Are employees more involved in supplier diversity than they were two years ago? In what ways?
• Percent of annual increase in minority, women and small business expenditures • Number and percent increase of firsttier suppliers reporting second-tier spend • Number and percent increase of new and existing diverse suppliers • Number and percent increase of suppliers certified as minority, women or small business enterprises (M/W/SBEs) in the United States • Tracking departmental diverse supplier utilization rates by profit center • Incorporating supplier diversity metrics in supplier scorecards and bid evaluations.
Sometimes supplier diversity is referred to as a “numbers game”—how does your company know its culture is not just tied up in numbers? How do success stories circulate in-house/ celebrate success? Numbers are important to measure success and growth, but equally important are the supplier relationships we establish and the competitive advantages we derive from our diverse supply chain. Our employees understand that our company is stronger and more creative because we have a diverse group of employees with distinct thoughts, ideas and skills. Just as our employees come from a wide variety of backgrounds, so too must our suppliers. I am a firm believer in celebrating successes. We have an internal awareness campaign underway that spotlights many of the diverse suppliers providing products and services to all parts of our business. We maintain information on our efforts on our Web site, intranet site and the procurement portal used by our sup-
Profiles in Diversity Journal July/August 2006
Absolutely. First of all, two years ago we did not have an internal support organization structure. Creating this structure—the Executive Advisory Board, Supplier Diversity Council and Supplier Diversity Champions—increased the visibility and direct involvement and accountability of employees significantly. By having local champions, we are able to engage individual stakeholders in most managed sourcing categories and provide exposure within our business units by getting them involved in networking events and with organizations designed to facilitate business development.
Have you encountered/ how do you deal with those who perceive supplier diversity programs for underrepresented groups as being exclusionary for others? By not establishing separate diverse supplier criteria, we have avoided the appearance of being exclusionary of others in order to affect a targeted group of suppliers. We hold diverse suppliers to the same criteria used in evaluating nondiverse suppliers. All suppliers must offer a safe, cost-competitive product or service that delivers value to Halliburton and our customers.
Can you name specific ways your company supports upward development toward management positions? We created a Supply Chain Management Program (SCMP) to develop future leaders in our company. The SCMP fosters talent within our organization by providing rotations in various areas of the supply chain organization including procurement, logistics, manu-
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How do you get started? Visit www.dell.com/pdj Dell and the Dell logo are registered trademarks of Dell Inc. ©2006 Dell Inc. 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.
Interview
Len Cooper Halliburton
facturing, and international business units.
What is the company’s commitment to minority suppliers—specific % or $ targets/dates? Focus? Measures you’re taking to achieve goals? Our 2006 goal is to increase expenditures with diverse suppliers to six percent of our total spend. Our focus is on the United States as we work to assess and define diverse supplier criteria internationally. To ensure that we achieve this goal, we are working closely with the sourcing team across departments and business units to identify opportunities and capable suppliers to compete for our business.
How do you educate/promote diversity and inclusion for vendors, customers, or the general public? In high opportunity categories, we provide training on our sourcing process to diverse suppliers to increase their competitiveness. We sponsor educational scholarships for small business owners to gain the technical and management training needed to move their company to the next level. We work with communitybased organizations and business development groups to influence and develop programs that will foster business development and growth for diverse suppliers. We work with our customers to align our efforts with theirs to create added value. For example, with one customer, we are exploring the opportunity to jointly develop a diverse supplier that can grow and support our growing business needs.
How is supplier diversity linked to your company’s overall business strategy?
Supplier diversity is important to our customers. Therefore, establishing leadership in this area is an important element of our growth strategies and fulfilling or hopefully exceeding our customer expectations.
EXECUTIVE – PROFESSIONAL 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? I don’t have an epiphany moment. Coming out of college, I spent a few years in the military leading groups of very diverse individuals. Later, my early business experiences were in government-oriented enterprises that had very strong commitments to supplier-diversity objectives and aggressive programs towards their development. The leaders I worked for were the most memorable. All had strong feelings and beliefs in the power of diversity.
How did you get to your present position? What was your career path? How did you come to be working at Halliburton? I was recruited to Halliburton almost three years ago. Prior to that I had held a
Len Cooper with team members left to right: Ramesh Gopalakrishnan, Kristi Richardson, Sheri Pollock, Len Cooper, Scott Radabaugh, Mark McDaniel, and Ingrid Robinson
series of executive-level supply chain positions in Texaco, Newport News Shipbuilding, and GE.
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? I was very fortunate when I joined GE to have a senior leader take a personal interest in me. When he moved on to other parts of the company, he either brought me along with him or continued to guide and coach me. That continued even after he retired. He was a very intense and results-oriented individual and complemented that with a great ability to energize and motivate the people around him.
What business books or journals do you read regularly or recommend for aspiring leaders? I read a fairly typical list of business related material, including The Wall Street Journal, Business Week, The Economist, continued on page 58
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Profiles in Diversity Journal July/August 2006
True strength has many faces.
At DaimlerChrysler Corporation, we work hard to design, engineer and build the best cars and trucks available. And it’s all made possible through the dedicated work of every employee. Unity does, indeed, create beautiful things.
Chrysler, Jeep, and Dodge are registered trademarks of DaimlerChrysler Corporation.
Personal Profile
Len Cooper Halliburton
Company: Title:
Halliburton
Senior Vice President—Supply Chain
Years in current position: Education: First job:
2 1/2
Bachelor of Science—Physics—U.S. Naval Academy Short Order Cook
Philosophy:
Maintain Balance and Perspective—“Think about what you want written on your headstone”
What I’m reading: First Across the Continent: The Story of the Lewis & Clark Expedition Family: Married to my high school sweetheart—two married sons—one granddaughter Interests: Golf, skiing Favorite Charity: Boys / Girls Clubs Person I’d like to get to know over lunch: George Washington, to discuss his leadership experiences in forming this country (military and political) and his reactions to what it has become. 56
Profiles in Diversity Journal July/August 2006
Enriching life
Cardinal Health Making a difference in our community Cardinal Health is a global and dynamic company dedicated to helping healthcare professionals do what they do best. Working together, with each other and our customers, we create ideas, products and systems that improve the delivery of healthcare. As a leader in the healthcare industry, Cardinal Health recognizes that our success is in the value of each of our employees.
www.cardinalhealth.com
Interview
Len Cooper Halliburton
and some professional publications on supply chain activities. I like to keep up with Jack Welch’s books—I “grew up” in GE while he was the CEO. A lot of my leadership and management approaches and philosophies were influenced by the culture he cultivated there.
How would you describe your concept and style of leadership? My philosophy has been to try to surround myself with people who are smarter and more talented than I am, then get out of their way and let them do what they do best. I am much more comfortable working on strategic issues that will impact the business in the longer term and the creative challenges that provides. My current role is to understand where our business is headed, anticipate what the supply chain organization must be capable of providing to support those objectives, translate that into strategies and actions, and then ensure that my organization and my internal constituencies are aligned towards achieving those results.
What are your specific responsibilities for advancing supplier diversity in your organization? What are the strategies you employ to move it forward? I am the primary focal point for the supplier diversity program in this company, and it is my responsibility to ensure that we have the proper focus and attention on continuing to develop and broaden diversity in our supplier base. I am responsible for setting the goals and objectives, ensuring that we have the people and programs in place to meet those objectives, and, ultimately, delivering on those objectives. We have a number of individuals in the company who support our program both inside the supply chain organization and in other areas of the business.
Were there any experiences that discouraged you or taught you hard lessons about supplier diversity implementation? 58
Despite all that has been written and stated about supplier diversity, there is a continuing need to explain what supplier diversity is (and by contrast what it is not) and why it is important to our company. We are a stronger, more capable, and more competitive company because we have a growing diversity in our supplier base. Supplier diversity is not about being politically correct or making special exceptions, accommodations, or setasides for diverse suppliers. Rather, supplier diversity is about creating a business environment where diverse suppliers are encouraged to participate and are given a fair and equal chance to compete for and win our business based upon the relative value they bring to us. Ultimately, we make those decisions based upon which suppliers will best enhance and contribute to our competitive position.
How are you measured in terms of performance? Is your compensation related to supplier diversity’s performance? I am measured by the ability of Halliburton’s supply chain to deliver the goods and services this company needs to support the commitments we make to our customers. We must do that as efficiently and effectively as possible. My/our primary metrics are focused on cost, quality, and speed of delivery. Embedded in and a part of those objectives is the requirement to develop and maintain a supplier base that has the capability and capacity to support those goals. The complexities of our business make that impossible without a diverse group of suppliers that bring a broad range of capabilities and contributions to the supply chain—whether here in the United States or offshore, as I noted earlier.
What has been your proudest moment as leader in this company? During the past two years, Halliburton has experienced explosive growth in our business. We have been surprised by that rate of growth, which in many cases far exceeded our business plans. As a result, the supply chain organization has had to respond to demands that were well
Profiles in Diversity Journal July/August 2006
“Supplier diversity is about creating a business environment where diverse suppliers are encouraged to participate and are given a fair and equal chance to compete for and win our business based upon the relative value they bring to us.” Len Cooper beyond expectations to meet our customers’ needs. Fortunately, we’ve had the people and talent within our supply chain organization and the capabilities among our supplier base to respond successfully to those unprecedented demands. We’ve surprised a lot of people and made a decisive contribution to the success this company has enjoyed.
Are there particular areas/employee sectors you feel still need improvement? Absolutely. Our future markets and customers are going to take us into an ever-broadening global operating environment. To meet the demands of that marketplace, we need a much more diverse and globally agile supply chain organization. We’re making significant strides in that direction, but we are a long way from where we need to be—that’s why supplier diversity will continue to be a key element of our supply chain strategy.
Do you have any words of advice to anyone who wants to rise in their organization? What do you say to people you mentor? One of the things Jack Welch preached at GE was that change is inevitable and that the pace of change accelerates over time. As leaders, we can resist change or embrace it, anticipate it and use it our advantage. Easy to say—hard to do. You need to have the courage and the confidence to accept that what has worked before and made you successful will probably not work in the future. Working in multiple industries at GE and in three new companies / industries since then has taught me that flexibility, adaptability, prudent risk taking, and leading change—rather than defending the status quo—are essential to success.
PDJ
BellSouth has a strong commitment to the communities we serve. We continually reaffirm that commitment and reinforce our connections to the community by embracing diversity and inclusion— both inside and outside the company.
Connecting to the community with talent, strength and diversity. Through its Office of Diversity, BellSouth supports networking groups that promote mentoring, training, and enhanced opportunity for all employees, regardless of age, race, gender, or sexual orientation. These groups volunteer their time and resources to sponsor a wide range of activities and provide new ways in which BellSouth connects to the people we serve. BellSouth is proud of these efforts. Because, no matter how advanced our technology, we know that the strongest, most lasting connections are made within the community, face to face, person to person.
bellsouth.com Š2006 BellSouth Corporation.
Sustaining Employee Networks Follow these concrete steps to make your employee network achieve long-term success. By Catalyst
O
nce you’ve launched an employee network, there are a number of steps to take to ensure that it accomplishes its goals and runs effectively.
Create a Leadership Succession Plan Having a core group of initiators who run the network for its first few years is invaluable. However, it is equally critical to pass that leadership to a new group. You need to develop the next generation early. Look for members who have taken smaller roles in heading up committees or organizing events and consider them for future leadership positions. Speak with them directly about their interests and encourage them to take on more responsibility. Some success strategies for leadership succession and elections: • Create a formal process to nominate potential leaders. • Have clearly defined lengths of term for all leadership positions. • Overlap newly elected leaders with previous leaders to ensure continuity and the sharing of information. • Work toward diversity in nominations to ensure diversity in the leadership of the network.
Develop the Membership Employee networks also need to attract and retain committed members. Using a range of strategies, successful networks think not only in terms of sheer numbers, but also about whether the membership has the right mix of employees from a range of backgrounds, levels, and functions. One way is to think about potential members as belonging to one of three groups. Reaching out to each group requires a different approach. • Employees who know little about the network and have never been involved with the group. Connecting with this large and dispersed group of potential members takes larger events or mailings. Some networks have formal “meet the network” events, open to all and publicized through direct invitations and announcements via email and newsletters. • Employees who may know about the group through colleagues who are members. To tap into this group, reach out to people individually. Ask members to speak directly with these potential members about their interest in joining the group. • Former members who have decided not to renew their membership. Understanding why former members declined to renew their membership and
what the network could do to respond to those reasons is important information you can get from no one else.
Include Senior Executives They have experience that is invaluable to members, knowledge to share about career success strategies, and important contacts among senior leaders. Involve senior executives where their skills, experiences, contacts, and backgrounds are most needed, shaping your appeals on an individual basis tailored to their own needs for development and recognition. But first, identify where you need their help. Is it as internal advisors for the network? Then invite them to join an executive advisory team assisting the network leaders. Would you like to have them act as career coaches? Then ask them to participate in a mentoring program or on a panel of executives. The key is to be as specific as possible and give them as much help as possible.
Plan Activities Networks get involved in a wide range of activities that can be summed up in several major categories—networking and career development, community outreach, advisory, and business development. Networks have events from monthly to annually, with quarterly being the most common.
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q Interrupting you q Frequently confusing you with the only other person of color in the department q Taking phone calls during meetings with you q Acknowledging your idea only after someone else restates it q Remarks such as, “You’re so articulate.”
WHAT’S YOUR MICROTRIGGER? ™
From What’s Your MicroTrigger™? 58 Little Things That Have a Big Impact Subtle behaviors. Big Impact. Micro-inequities. Have you attended a MicroTrigger™ Workshop yet? “Definitely a must for managers in the workplace.”
“A powerful training program!” Companies such as MetLife, L’Oreal, UBS Investment Bank, Sodexho, Viacom, PNC Bank and Verizon have.
Call (301) 963-1669 to learn why. www.MicroTrigger.com MicroTrigger is a trademark of Ivy Planning Group LLC. © 2006 Ivy Planning Group LLC. All rights reserved.
There are a few overarching success factors that run through all events.
projects with attention to variety and scope.
1. Meet specific needs of network members. Make sure the needs of members are understood.
Overall Assessment Survey network members annually to assess their overall satisfaction, the network’s impact on their personal and professional growth, and the network’s impact on the work environment.
2. Effectively communicate the event and its purpose. 3. Keep events focused. Identify goals and identify the groups you want to reach. 4. Design an objective and measure the event’s success. 5. Involve senior leaders in the company. Let them know what you are doing. 6. Be realistic about what is possible. Sequence activities over time and try to avoid member / leader burnout.
Track Effectiveness Evaluating networks can be difficult, but there are measurements that can indicate the strengths and weaknesses of networks and set the stage for continual improvement. Measures of evaluation might include: Involvement with Business Activities Evaluate network participation in the firm’s recruiting. Review network sponsorship activities, track professional development activities, and measure direct business secured through the network. Participation in Network Track event attendance and membership growth. Outreach and Involvement Review network-specific communications. Include network communications in office newsletters, area newspapers for large events, etc. Assess network involvement / impact in community (internal and external). Event/Specific Program Effectiveness Distribute short surveys to assess all events. Review the year’s events and 62
Tackle Common Challenges Networks are continually adapting and making changes. Being flexible lets you adjust without changing the network as a whole. Internal challenges are usually related to membership needs and interests and network effectiveness. Here are some common internal challenges and proposed solutions for meeting those. • Notable drop-off in membership participation—Low participation is usually a symptom of other issues. Identify what is going on. Is there a lack of interest in events? Is there a lack of time to devote to the network? • Significant changes in member interests—Member interests tend to change every few years, and so should the events. Check back and find out what members are interested in now and adjust goals and activities accordingly. • Lack of accomplishments or inability to reach goals—Design strategies to solicit and respond to member needs. If the problem is a lack of senior-level support, look into creating an approach to build and maintain support. • Large reduction in time commitments of members—Streamline the overall goals of the network. Once you’ve gathered data to get a sense of member needs and interests, eliminate any activities that don’t directly respond to those needs. • Resistance or lack of support from managers—Reinforce the business case for the network. Give them details about your upcoming activities. Continue educating and communicating.
Profiles in Diversity Journal July/August 2006
External challenges center on changes in management or organizational shifts. Here are some common external challenges and ways to approach them. • Downsizing at company or business unit level—Many networks scale back their activities during such a phase. Be careful not to eliminate the ones that will help members the most in an uncertain work environment. Refocus on member needs and direct services the network can provide. It’s also particularly important to maintain support during this time. In considering the events you create, think about level of visibility and broad appeal. • Relocation of corporate or field locations—Many networks facing this challenge often shrink their activity base and focus on fewer and smaller goals that require less formal leadership. • Departure of executive champion— Cultivate and work with the new senior team member. If, however, you need to rebuild support from the beginning, recognize that this will require a different set of strategies. • Appointment of less supportive executive team—Return to your original strategies to rebuild support. All of these steps will help you ensure that your employee network can succeed over time and in the face of challenges. Catalyst is the leading research and advisory organization working with businesses and the professions to build inclusive environments and expand opportunities for women at work. For more information about networks, see Catalyst’s book Creating Women’s Networks: A How-to Guide for Women and Companies (Jossey Bass, 1999), available from your local online bookstore. To browse our publication offerings, visit www.catalyst.org. You may also sign up to receive our issue-specific newsletter, Perspective, and our monthly email updates at news@catalyst.org.
Bank of the West www.bankofthewest.com
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Bausch & Lomb www.bausch.com
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BellSouth www.bellsouth.com
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The Boeing Company www.boeing.com
18
Cardinal Health www.cardinal.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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Profiles in Diversity Journal July/August 2006
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Halliburton www.halliburton.com
5
Ivy Planning www.ivygroupllc.com
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Lockheed Martin www.lockheedmartin.com
7
MFHA www.mfha.net
13
MGM Mirage www.mgmmirage.com
17
Nationwide Insurance www.nationwide.com
9
PepsiCo, Inc. www.pepsico.com
15
Shell Oil Company www.shell.com
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Society for Human Resource Management 14 www.shrm.org Sodexho www.sodexhousa.com WellPoint www.wellpoint.com The Winters Group www.wintersgroup.com
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