Diversity Journal - Sep/Oct 2003

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Volume 5, Number 5 • September/October 2003

John W. Rowe Chairman & CEO Exelon Corporation

the

new

Dr. Elias A. Zerhouni Director National Institutes of Health, DHHS

Dr. Ralph W. Shrader Chairman & CEO Booz Allen Hamilton

Michel Landel President & CEO Sodexho USA

DIVERSITY

leadership Daniel A. Carp Chairman & CEO Eastman Kodak Company

Dr. Vance D. Coffman Chairman & CEO Lockheed Martin Corporation

CEO advocates are often called “the most powerful weapon in the diversity arsenal.” Meet ten of corporate America’s most powerful champions for 2003.

Tim Solso Chairman & CEO Cummins Inc. Sidney Taurel Chairman of the Board, President & CEO Eli Lilly and Company

Barry Sternlicht Chairman & CEO Starwood Hotels & Resorts Worldwide, Inc. Phil M. Condit Chairman & CEO The Boeing Company

Special Section

Making a difference in today’s Hispanic Market Marketing opportunities—and products—to America’s fastest growing demographic. Featuring case studies from Continental Airlines, Ford Motor Company, Verizon and more.

Featuring Hyatt Hotels and Resorts • Sterling Financial Investment Group • AFLAC • The Anti-Defamation League • Dr. Juan Andrade

Minority Business Development Agency • Simmons Associates • Transport Canada • Bill George • Diversity Best Practices and more.

®

Profiles in

Diversity Journal The Forum For Business Diversity

PUBLISHER / MANAGING EDITOR James R. Rector

pointofview From the editorial staff of Profiles in Diversity Journal

SENIOR EDITOR Katherine Sandlin EDITORIAL CONSULTANT Laurel L. Fumic

Committed to Their Ideals In support of the efforts of Diversity Best Practices and the Business Women’s Network as they host this year’s Leadership Summit & Diversity Gala, we once again offer you this very special issue featuring stories from many of the winners of these prestigious leadership awards.

PRINTING Master Printing ADVISORY BOARD HONORARY CHAIR Steve Miller, former Chairman, President and CEO Shell Oil Company

While compiling these profiles, it once again became apparent that two personal characteristics were woven through their stories like a common thread: the vision to recognize that change was needed, and the commitment to make that change. And while vision might make a leader, commitment makes a leader great. In his book “Living With Passion,” one of America’s masters of sales motivation, Peter L. Hirsch, describes true commitment—the kind of commitment that is the hallmark of a leader—through a simple tale:

CHAIR Edie Fraser, President Diversity Best Practices VICE CHAIRS Carlton Yearwood, VP Business Diversity Waste Management, Inc. John Sequeira, Diversity Manager Shell People Services Dee Wood, Employee Network Liaison General Electric Corporation Toni L. Riccardi, Chief Diversity Officer PricewaterhouseCoopers OVERSEAS CORRESPONDENTS Dr. Myrtha Casanova, President European Institute for Managing Diversity Barcelona Spain Graham Shaw, Director Centre for Diversity and Business London UK LETTERS TO THE EDITOR Commentaries or questions should be addressed to: Profiles in Diversity Journal, P.O. Box 45605, Cleveland, OH 44145-0605. All correspondence should include author’s full name, address, e-mail and phone number.

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Registered in U.S. Patent Office.

“A chicken and a pig were having a discussion,” Hirsch writes. “The chicken said, ‘I am committed to giving one egg every day.’ ‘That’s not commitment,’ the pig said. ‘That’s just participation. Giving bacon, now that’s commitment!’”

There is a big, big difference between commitment and participation.

Commitment is not always comfortable. Commitment takes time and effort. And while commitment is not necessarily a do-or-die affair, it is doing what you set out to do, whether or not challenges or other obligations get in the way.

This has not been an easy year to stick to commitments. As we struggle with this unfriendly economy, it is more likely that we put off efforts toward the more difficult, long-term projects in order to handle the crisis-du-jour. Some organizations have questioned whether, during this endless lull that will, someday, lead to better economic times, their diversity initiatives should take a “back seat.” After all, they reason, what would it matter if we scaled back our diversity efforts a little bit today? We can catch up later … can’t we?

Within these pages are the stories of organizations that understand the importance of a commitment to diversity—especially today. They understand the connection between an organization’s diversity and its overall health—and bottom line. They also understand that a diverse workforce means diversity of ideas—clearly the means to keep our corporations competitive under any economic situation.

To all of those whose commitment is being recognized today, congratulations.

May we always be of service to you as you realize your vision.

James R. Rector Publisher

ISSN 1537-2102 1-800-573-2867 www.diversityjournal.com

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September/October 2003

page 5

What’ s possible when 70,000 people with diverse cultural, national, and family backgrounds, skills and life experiences work together toward one common vision?

Anything.

Sharon Larkin, mother of two active boys and Divisional Vice President of Human Resources.

Abbott Laboratories. www.abbott.com

contents

Volume 5, Number 5 • September/October 2003

The New Diversity Leadership Who are America’s most powerful diversity champions for 2003?

We celebrate with the winners of the 2003 Leadership Awards from the Diversity Best Practices Leadership Summit & Diversity Gala.

DIVERSITY BEST PRACTICES

Diversity Leadership . . . . . . . . . . . . . . . . . . . . . . . . . .10

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

What makes a CEO stand out? Diversity Best Practices’

Rising Star . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26

Edie Fraser on the winners of this year’s Leadership Summit &

For only five years old, Barry Sternlicht’s Starwood Hotels & Resorts

Diversity Gala.

already exhibits stellar diversity leadership.

SPECIAL GUEST INTERVIEW

BOOZ ALLEN HAMILTON

Exploring the Tenets of Diversity An Interview with Steve Miller . . . . . . . . . . . . . . . . . .12

The Small Business Renaissance in Harlem . . . . . . . .30

Considered a thought leader among CEOs, the former

Foundation and its Harlem Small Business Pilot Program.

Booz Allen lends its efforts to the William Jefferson Clinton Presidential

Chairman & CEO of Shell Oil Company on lessons learned, best practices and what CEOs must know to further diversity within

EASTMAN KODAK COMPANY

their organizations.

Leading Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33

Dan Carp remains committed to building understanding and mutual respect through his role as Kodak’s CEO. LOCKHEED MARTIN CORPORATION

Diversity Includes You . . . . . . . . . . . . . . . . . . . . . . . . .36 At Lockheed Martin, diversity must encompass all the

dimensions that make them unique if they are to retain global economic leadership.

THE BOEING COMPANY

SODEXHO USA

A Common Objective . . . . . . . . . . . . . . . . . . . . . . . . . .16

Diversity and the Bottom Line . . . . . . . . . . . . . . . . . . .38

To be the leader in the aerospace industry, Boeing’s

Sodexho’s Michel Landel sees measurement and accountability

Phil Condit must bring together people of different abilities, skills

as keys to a comprehensive diversity strategy.

and backgrounds towards a common objective.

NATIONAL INSTITUTES OF HEALTH ELI LILLY AND COMPANY

Diversity Works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41

Mainstreaming Diversity . . . . . . . . . . . . . . . . . . . . . . .19

Dr. Elias A. Zerhouni and his commitment to maintain

Eli Lilly’s Sidney Taurel has taken diversity development to the next

NIH’s position as the world’s premier biomedical

level—by putting it back in the hands of each and every division.

research institution.

CUMMINS INC.

The Search for Character and Commitment . . . . . . . .22 Tim Solso, Cummins CEO and Chairman, on the vision and commitment that has fed diversity efforts at Cummins for the last two decades.

EXELON CORPORATION

A Powerful Voice . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 Chicago’s business and civic communities benefit from the diversity vision of Exelon’s John W. Rowe.

From our cover: the winners of the 2003 Diversity Leadership Awards.

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contents

Volume 5, Number 5 • September/October 2003

Raising The Bar

Corporate and Non-Profit Perspectives BILL GEORGE

Diversity Isn’t About Quotas . . . . . . . . . . . . . . . .46 When leadership reflects the diversity of the workplace, growth follows. Former Medtronic CEO Bill George on the changes in leadership that brought his corporation to the forefront.

Special Feature: Making a Difference in Today’s Hispanic Market

MINORITY BUSINESS DEVELOPMENT AGENCY

With a special introduction by Dr. JUAN ANDRADE

U.S. DEPARTMENT OF COMMERCE

Waking The Giant . . . . . . . . . . . . . . . . . . . . . . . . .56

The challenge to public sector leaders, particularly in the Federal

The Latino population has officially surpassed African Americans as the

government, is to adapt to the entrepreneurial business model.

largest ethnic/racial minority in the U.S. American business, it’s time to

A report by Ronald N. Langston, National Director.

Merging Responsibilities . . . . . . . . . . . . . . . . . . .53

wake up and smell the coffee. A special report from the President and Executive Director of the United States Hispanic Leadership Institute and

TRANSPORT CANADA

weekly columnist for the Chicago Sun-Times.

Driven to Succeed . . . . . . . . . . . . . . . . . . . . . . . .88 A department of the Canadian federal government, Transport

VERIZON COMMUNICATIONS

Canada (TC) raises awareness by developing an entire network of

Volunteer for Something You Love . . . . . . . . . . .62

diversity champions.

Verizon’s new ad campaign highlights employee volunteer efforts in the THE ANTI-DEFAMATION LEAGUE

communities it serves.

Religious Accommodation . . . . . . . . . . . . . . . . . .92

HYATT HOTELS AND RESORTS

A critical component of diversity management, not all corporations

Mentoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64

know the requirements set forth by Federal law. How to

Hyatt Divisional Vice-President Victor Lopez on the most powerful tool in

communicate company policy regarding religious observances,

minority advancement.

practices and beliefs.

STERLING FINANCIAL INVESTMENT GROUP

New Blood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68 If Sterling Financial CEO Charles Patrick Garcia has his way, he’ll be at the crest of a new wave of Hispanic Entrepreneurs and Social Leaders.

The Changing Landscape SIMMONS ASSOCIATES, INC.

Ten Red Flags in a Diversity Initiative . . . . . . . .86

FORD MOTOR COMPANY

Offering your employees standardized, off-the-shelf, one-size-fits-all

Standing Strong . . . . . . . . . . . . . . . . . . . . . . . . . .72

training might look cost effective, but will come back to haunt you as a

Ford Motor Company’s Hispanic Network Group is one of 10 ERG

financial nightmare.

networks strengthening business and community.

AFLAC

Responding to Customer Needs . . . . . . . . . . . . .76 At AFLAC, continually changing to meet the needs of both internal and external customers requires a consistent focus—respect.

Legal Briefings

CONTINENTAL AIRLINES

HOLLAND & KNIGHT LLP

Donde Vale el Lema de “Trabajar en Equipo” Where Working Together Works . . . . . . . . . . . . .78 As the numbers of traditionally underrepresented groups and immigrants in the U.S. population continue to grow, Continental wants to be ready by offering clear communications, fairness and opportunity to its workers.

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Downsizing the Workforce without Downsizing Diversity . . . . . . . . . . . . . . .48 Balancing the legal and business demands of a merit-based, fair and equitably “right-sized workforce.”

September/October 2003

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2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Raising The Bar

Diversity Best Practices

DIVERSITY

LEADERSHIP

D

WHAT MAKES A CEO STAND OUT? DIVERSITY BEST PRACTICES’ EDIE FRASER ON THE WINNERS OF THIS YEAR’S LEADERSHIP SUMMIT & DIVERSITY GALA

iversity Best Practices monitors and recognizes CEO commitment to diversity and the impact it makes on an organization. Since we began our work in this area in 1999, we have actively championed CEO Diversity Leadership, and have been awarding leaders at our Annual Leadership Summit and Diversity Gala since 2001. In December 2002, Steve Miller, former Chairman and CEO of Shell Oil, agreed to chair Diversity Best Practices’ CEO Initiative. We are grateful to Steve for his leadership and his continual “push” to move the bar ever higher.

Steve Miller is now, and always has been, a powerful example of someone who acts on a personal commitment to diversity. He serves as the Honorary Chair of Profiles in Diversity Journal, and is active on several corporate, educational and non-profit boards. He was instrumental in the page 10

formation of the Houston CEO Roundtable for Diversity; we’re proud to witness other cities now forming their own CEO forums as well.

In choosing the ten CEOs for our 2003 Diversity Best Practices Leadership Awards, we reviewed the diversity commitment statements of some 75 CEOs. The stories of the ten CEOs recognized for the 2003 Diversity Best Practices Leadership Award are included in this issue of Profiles in Diversity Journal. Their commitment illustrates the changes possible in all of our organizations when diversity leadership functions at its best. We urge each of you to share with your own CEOs and diversity officers this deep commitment to diversity by sharing these stories of true diversity leaders.

For the second year in a row, Diversity Best

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Practices will sponsor the CEO Roundtable at the 2004 Linkage Conference. Our commitment to the issue of CEO leadership is deep—we learn from the many CEOs we work with and know their leadership will impact others.

The stories of CEO leadership you will read in this issue and hear at the Summit are compelling. For example: Dr. Ralph W. Shrader, Chairman and CEO, Booz Allen Hamilton, shares his view on legacy: “When I think about the legacy of diversity at Booz Allen while the company was under my stewardship, I would like to think that I was able to pull together the institution, and help shape the institution around a set of core values that will endure.

So that a hundred years from now, people will still hold dear that value set. People will say that I was a leader who, while not the 1-800-573-2867 www.diversityjournal.com

“It is the leader CEO who sets the pace, the unequivocal commitment to values and ethics. It is the leader CEO who establishes the governance and representation goals. It is the leader CEO who champions compensation incentives to include diversity goals. It is the leader CEO who ties work force, market and supplier diversity together.”

Edie Fraser, Fraser, President President Edie Diversity Best Best Practices/BWN Practices/BWN Diversity originator of our diversity commitment, at least made sure that we stayed the course, and made demonstrable progress.”

Michel Landel, President and CEO of Sodexho USA, reminds us that you have to “walk the talk.” “The CEO and other executives must actively and conspicuously champion diversity in order to make it a priority within the rest of the company.

You must lead by example, educate your teams and then hold them accountable for results. You must take steps to ensure that information about your diversity goals and results are regularly communicated throughout your organization. When it comes to diversity, your employees have to know that you ‘get it’ and expect to see diversity integrated into your business systems and process.”

mission. In every word that I speak, every decision that I make, every communication and action I take, I must show the world that I am committed to diversity. Valuing diversity is no longer a thought process.

It’s just what I do. In the absence of my physical presence, our stakeholders should know that Lockheed Martin people will act in a way that supports diversity.

According to National Institutes of Health Adminstrator and CEO Dr. Elias Zerhouni, managing diversity, like biomedical research, is a long-term effort. “We need to continue to train, recruit, and retain the best talent in biomedical research because, in the final analysis, it is always the creative spark of the unique individual that leads to new knowledge and real progress.”

Philip Condit, Chairman and CEO, The Legacy, to Dr. Vance D. Coffman, Chairman Boeing Company, shares his diversity and CEO of Lockheed Martin Corporation, commitment and the importance of means a personal responsibility: “I have a nurturing and promoting diversity: “My personal responsibility to ensure that I diversity commitment is reflected in the serve as a role model for inclusion. I have a Boeing vision: People working together as a personal responsibility for creating the global enterprise for aerospace leadership. environment for and holding others We are working to ensure that the accountable to Lockheed’s diversity principles of diversity and inclusion are 1-800-573-2867 www.diversityjournal.com

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woven into the fabric of everything we do. … If I were to define a legacy, it would be that diversity is truly embedded in the fabric of the company. It’s not something that’s done once a month, or at succession planning time; it is deeply embedded in every single thing that we do. It is part of our thought process; we do it naturally, because it is part of what we are.”

John Rowe, Chairman and CEO of Exelon Corporation, shares his perspective on “true progress” as it relates to culture: “True progress will only be achieved when our corporate culture accepts all individuals regardless of their age, race, gender, color, national origin, ethnicity, sexual orientation, physical ability, veteran status, or religion. It is up to all of us to create the conditions which will allow this (propitious) environment to flourish. The more diverse our workforce becomes, the greater the range of ideas which can be generated.”

CEO leadership (and top management leadership) makes the critical difference. It is the leader CEO who sets the pace, the unequivocal commitment to values and ethics. It is the leader CEO who establishes the governance and representation goals. It is the leader CEO who champions compensation incentives to include diversity goals. It is the leader CEO who ties workforce, market and supplier diversity together. When diversity officers report quarterly to the CEOs and at least annually to the board, the leadership message is clear. Diversity Best Practices is proud to honor those CEOs that are making an impact on their workforce today and hope, by doing so, we make an positive impact on the workforce of tomorrow.

For more information on the Diversity Best Practices CEO Initiative, contact them at 202.466.8209.

PDJ

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2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Diversity Best Practices Diversity Leadership

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Raising The Bar

2003 Leadership Summit & Diversity Gala

PDJ: Your history of diversity leadership at Shell Oil and throughout the business world is impressive. What can you share to help other business leaders become change agents to make diversity a reality in large companies?

Miller: It starts with the understanding that leaders of diversity don’t necessarily have management titles. Yes, it takes commitment from the top and an understanding of business values and impact demonstrated by the CEO. Yet the entire organization can be infused with the values of diversity. Diversity can be achieved by promoting an understanding of its benefits throughout the whole organization.

As adults, we learn by doing. We must create cultures of action, not passivity, where employees incorporate diversity into their roles and responsibilities.

EXPLORING

THE

TENETS OF DIVERSITY AN INTERVIEW WITH STEVE MILLER

The adage “actions speak louder than words” certainly applies to Steve Miller.

A businessman and former Chairman & CEO of Shell Oil Company, Miller serves as Chair of Diversity Best Practices’ CEO Initiative and Honorary Chair of Profiles in Diversity Journal.

While at Shell, Miller made several important moves to accelerate his corporation’s progress in diversity, and featured diversity prominently in his Blueprint for Success— the framework for Shell’s business activities in the United States. Considered a thought leader among CEOs, Miller’s participation in leadership councils and panels across the nation gave him the opportunity to champion his cause with other Fortune 500 companies as they discussed lessons learned, best practices and how to further diversity. Now Chairman and President of SLM Discovery Ventures, a company formed to pursue commercial ventures in support of volunteerism, social outreach, higher education and academic achievement, he speaks often on diversity and other characteristics of a successful business. page 12

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PDJ: Does CEO leadership make a difference?

It is the CEO who must champion diversity.

The ten CEOs honored by Diversity Best Practices who are profiled in this magazine know their leadership is important. We are very pleased and honored to salute them.

Our honored CEOs share numerous similar approaches and qualities. A dynamic diversity leadership is apparent; most CEOs we honor here have championed top-level compensation incentives to include meeting diversity goals. These true diversity champions demonstrate that they are committed not only through their personal actions, but also by implementing programs and communications that foster diversity as good business. The leaders we honor today see that there have been far too many silos in the process and have asked for integration and cross-functionality to assure ROI. Each has recruited top diversity officers, because when diversity officers report to the CEOs and brief the board at least annually, the leadership message is clear. CEOs—and now boards—are 1-800-573-2867 www.diversityjournal.com

presenting diversity as a business case with goals for the workforce and marketplace.

While the CEO in Best Practices companies acts as diversity leader, he or she is also under intense pressure to be the champion for the company’s growth. This means the CEO is responsible for stock performance and accountable to for profitability. He or she is responsible for the company message and brand. The CEO is the key spokesperson for the company, charged with the role of cheerleading within the workforce; and key to internal and external communications. And the CEO is responsible for policy, values and ethics.

This pressure on the CEO to play such a variety of roles supports the business case that diversity is an operational opportunity for the workforce and marketplace that can drive the business and stock price. For those CEOs who understand and “walk this talk,” diversity is seen as more than just the right thing to do and a community relations necessity; it is seen from the business perspective. Operations and community are joined for these CEO leaders. The top-level diversity officers institutionalize this force.

From an historical perspective, the task of CEO today is different and more demanding. Today’s CEO must be both the champion of business growth and a leader in society and the community. Society today is asking more of the CEO vis-à-vis these community and social issues. This puts a squeeze on the time the CEO may use to run the business. Organization and people then become keys to running the corporation with accountability while meeting societal demands that were not on the radar screen even ten years ago. This remarkably changes the requirements for the kind of person you position as CEO.

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“From an historical perspective, the task of CEO today is different and more demanding.

Today’s CEO must be both the champion of business growth and a leader in society and the community. ” Steven L. Miller Chair, The Diversity Best Practices CEO Initiative Honorary Chair, Profiles in Diversity Journal

In response to changing demographics and their impact on workplace and sales, more CEOs and their boards are seeking to more fully understand and champion diversity issues. More boards are going through diversity training. They are asking questions about upward mobility and pipeline development. They are reviewing marketplace sales and multicultural marketplace data. They are probing supplier diversity goals and achievements.

PDJ: What is your advice for promoting a culture that acts on diversity in an organization?

There are five keys to successfully implementing diversity: 1. The business reasons for diversity must be articulated. Diversity is no longer built on emotion. It has to be built on the same hard economic sense that drives an acquisition, merger, or any kind of serious business decision.

2. Leadership behavior must be modeled throughout the organization. Many

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leaders stumble when it comes to personifying the diversity mission. They must embrace diversity in every aspect of their leadership. When that happens, organizations emulate their behavior.

3. Diversity must be communicated effectively. Many organizations focus on internal communications, but external communications are just as important.

External communications, getting the information and goals to constituencies outside the company, is the hook to enable diversity to succeed.

4. Measurement is crucial to success.

Measurement is difficult; I have experienced the challenges of proving return on investment myself. You have to measure behavior, resources and the amount of money spent. This is where you see success or failure. No one wants to see failure. But it is failure that highlights the areas that need to be improved upon.

5. Where you place diversity resources page 13

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

An Interview with Steve Miller Exploring the Tenets of Diversity

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Exploring the Tenets of Diversity

An Interview with Steve Miller

makes all the difference. Employee support, resources, and money must be invested in the areas that have the most immediate impact. Where you put your resources says everything about where your priorities are.

position knows diversity is part of my personal mission.

I believe that, in today’s business environment, we need to continue to focus on three things: (1) collaboration of business, government and non-profits in Many of the principles and processes by investment planning for infrastructure and which our businesses and institutions were support systems; (2) enhanced governed as few as ten years ago are diversification of our civic leadership, and irrelevant today. Diversity is a central force (3) further development of an inclusive that is shaping and reinforcing values that business environment that is beneficial to all are vital to business and to society. We are of our citizens and welcoming to in the era of a ‘global talent pool’ and international businesses. All of these organizations must adapt and change if they activities are driven by the realization that are to attract and retain the best talent. we must take action to effect change.

Diversity is a business and organizational Society today is demanding greater imperative that is being driven by the accountability from businesses, powerful forces of globalization, technology, governments and individuals. As leaders, transparency and changing demographics. our continued progress comes from We can never return from whence we came. continued encouragement to stay on track The process has begun, and it is irreversible. and achieve these goals.

So, the challenge becomes how to manage this change process successfully and transform our ideas and opportunities into practical, meaningful actions and successes.

A company learns that sustained progress requires changes at the individual, interpersonal and organizational levels.

From my experience, I have learned how important it is to understand that it is not about hard assets. It is about people, their ideas and relationships. Your ability to achieve your goals—whether as an individual, an organization or a community—depends on the quality of your relationships with others.

PDJ: How have your own activities related to diversity changed since you retired from Shell?

One of the luxuries of being retired is that you have time to do the things you want.

Diversity is more a part of my agenda now than ever. Anyone who approaches me regarding a board or leadership page 14

Today, I am an entrepreneur and a board member on the profit side. On the nonprofit side, I am focusing on a few key areas and organizations. I am pleased to chair the CEO Initiative of Diversity Best Practices and be engaged with the challenges of CEOs as they delve more deeply into the workforce and marketplace benefits of diversity. Jim Rector asked me a year ago to serve as Honorary Chair of Profiles in Diversity Journal, which serves as a very effective means to profile leadership. I also recently chaired the Greater Houston Partnership, a group of 2,200 for-profit and non-profit organizations. Today I chair the Points of Light Foundation, a catalyst for national volunteerism, and the United Way of Texas Gulf Coast.

I am also working with three major universities to mold the business leaders of tomorrow. I am on the Board of Trustees for Rice University, and I am active as a

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September/October 2003

director of the Foundations of the University of Illinois and Texas Southern University. With these organizations and universities, we are working through a variety of channels for a common mission.

When boards, executives, and leaders reflect diversity in their actions, change happens.

PDJ: Can CEOs help to influence board complexion?

Diversity is making its way into the boardrooms of America; now, 65 percent of the Fortune 1000 have at least one member of an ethnic minority on their boards of directors, up from 55 percent in 1998.

And today, minorities account for 7 percent and women 13 percent of Fortune 500 corporate directors. This is all good news in terms of our continued progress, but also a great challenge for our future. We must continue to emphasize and seek more new, independent perspectives for board leadership.

PDJ: What is your vision for the future?

For over 200 years, Americans have been refining our ideas about liberty and freedom. As we start a new century, we are the most heterogeneous country in the world. There are distinct advantages in the multiple views and perspectives diversity affords us. We are working for change on gender and ethnicity issues. We are showing that we can be inclusive to the gay and lesbian communities and provide opportunities to those who have disabilities.

Our collective success in the future will depend on our ability to incorporate our heterogeneity, this mosaic of American life, into all we do as a nation. Doing this will improve our business, our country, and our world.

PDJ For more information about the Diversity Best Practices CEO Initiative, chaired by Steve Miller, call 202.466.8209.

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2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Raising The Bar

The Boeing Company

TO BE THE LEADER IN THE AEROSPACE INDUSTRY, BOEING’S PHIL CONDIT MUST BRING TOGETHER PEOPLE OF DIFFERENT ABILITIES, SKILLS AND BACKGROUNDS TO WORK TOWARD

AA

COMMON OB BJ JE EC CT T II V VE E O

W

hy is diversity so important to Boeing Chairman and Chief Executive Officer Phil Condit? First, it’s a matter of integrity, a fundamental, basic right of equal opportunity, and an expression of good corporate citizenship. But in a world that is becoming more integrated and competitive, diversity also makes good business sense. The recruitment and retention of people and teams with different backgrounds, ethnicities, skills and perspectives will help ensure the company’s future success.

the national commitment to hire and promote people from minority groups.

Boeing’s Vision 2016—so named because the year 2016 marks the centennial of the founding of the company—calls for people working together as a global enterprise.

The ultimate goal for Boeing, using that principle, is to achieve aerospace leadership.

To do that, it must bring together people with varied abilities, skills, backgrounds and origins to work together for a common objective.

Condit is well aware of the special challenge facing a company whose future is based on “In an interdependent global economy,” says Condit, “a multidimensional workforce engineering and technical innovation. that can drive innovation, agility and The student population at all American integrity is the only way to success.” engineering schools is 95,770. Of that number, 7.7 percent are Asian-American, Diversity is, in fact, a cornerstone of 2.8 percent are African-American, 2.4 are Boeing’s vision, core competencies and values, and the company strongly supports Hispanic-American, and only 0.2 percent page 16

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are Native American. Condit is among those who want to improve those statistics through an array of multi-million-dollar Boeing programs for such things as scholarships, mentoring, and research partnerships at schools with good programs focused on providing opportunities for diverse populations.

That’s all part of Boeing’s three-pronged approach to being a leader in aerospace.

It begins with a focus on the recruitment, development and retention of the best PEOPLE. People with different backgrounds bring fresh new perspectives on such important things as how to reach goals, develop strategies, communicate ideas, create effective partnerships, and win new business, says Joyce Tucker, Boeing Vice President of Global Diversity. “People really do make or break companies, big and small.

1-800-573-2867 www.diversityjournal.com

A multicultural team that has the experience and background to anticipate and manage important changes and trends brings to the table a synergy that no one group can match,” she says.

“In an interdependent global economy, a multidimensional workforce that can drive innovation, agility and integrity is the only way to success.”

To enhance Boeing’s global presence, the company is reaching out around the world to join with educational institutions and companies in the development of new technologies. Wherever possible, Boeing recruits people who live and work in those countries to work for the company.

Spanish employees, for example, direct and operate Boeing’s Research and Technology Center in Madrid, which serves as a center of excellence in environmental, safety and reliability, and air traffic control technologies. Boeing has offices in Moscow and London, for example, staffed

by Russians and Britons, operations in

Phil Condit Chairman & CEO and Leadership Award Winner 2003 Leadership Summit & Diversity Gala

“Six-year-old children of today will be the engineers of tomorrow,” Tucker said in an address at Tuskegee University last year, when she discussed the need to interest students in math and science, and ultimately to become the scientists and technologists of the future.

“A multicultural team that has the experience and background to anticipate and manage important changes and trends brings to the table a synergy that no one group can match.”

Joyce Tucker Vice President of Global Diversity

Thus, the second part of Boeing’s vision is establishing a source or a PIPELINE for the best and brightest.

The company has programs in place not only to encourage youngsters to take up mathematics and science at an early age, but to reinforce that interest as they progress through high school and college.

Australia run by Australians, offices in South Africa and Ghana staffed by Africans, The company has ongoing programs and similar arrangements in many with schools in the 27 states and other countries. hundreds of communities where Diversity will play an even larger role in the Boeing employees live and work.

Millions of dollars in charitable future. Boeing already employs some contributions and thousands of employee of the best engineers and technologists in the country; however, in order to remain a volunteer hours are directed toward improving the quality of life of our diverse technology leader, that pool of expertise communities, with a particular emphasis needs to be replenished.

1-800-573-2867 www.diversityjournal.com

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on improving the math, science and literacy capability of children in K-12.

A good example is the A. D. Welliver Faculty Summer Fellowship Program, designed to provide educators with a better understanding of the practice of engineering in industry through hands-on mentorship.

Professors from various universities fan across The Boeing Company during the eight-week program to work side-by-side with selected Boeing mentors.

“Business people who do not join this effort of diversity certainly risk being left behind. We at Boeing refuse to be left behind.”

David Swain Chief Technology Officer

The third component of Boeing’s vision is PARTNERSHIPS. Universities and other organizations and educational institutions provide a powerful cross-section of

continued page 44 page 17

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

The Boeing Company Phil Condit: A Common Objective

Eli Lilly and Company

ELI LILLY’S SIDNEY TAUREL HAS TAKEN DIVERSITY DEVELOPMENT TO THE NEXT LEVEL—

BY PUTTING IT BACK IN THE HANDS OF EACH AND EVERY DIVISION

mainstreaming

DIVERSITY

A

t Eli Lilly and Company, we view diversity as everyone’s responsibility.

We recognize that our employees are the source of all our strengths and successes. In fact, our company’s future depends on the worldwide community of Lilly employees. Their varied perspectives, experience, and training fuel the creativity and energy needed to pioneer pharmaceutical innovation as we seek to provide answers that matter to the world’s most challenging medical needs.

relied on our core values that include respect for people, integrity, and excellence.

Our values guide all we do, including our approach to diversity.

An Historical Perspective

Even before it was politically correct to incorporate diversity into hiring practices, Lilly stood at the forefront of demonstrating respect for people and diversity in the workforce. In 1913, Lilly hired its first female physician.

The first African-American woman joined We actively listen and respond to the needs the company in 1928 and, in 1950, the first two women with doctoral degrees were of a changing, diverse workforce. Our hired. The first African-American chemist method to managing diversity within our and the first African-American biologist corporation has evolved over many years into a mainstreamed approach. During our joined the company in 1957. These diversity advancements were not by 127-year history, Lilly, an Indianapolisbased global pharmaceutical company, has happenstance. In 1948, African Americans 1-800-573-2867 www.diversityjournal.com

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comprised 12 percent of the Indianapolis community. At that time, J.K. Lilly, Jr., the president of Lilly and grandson of the founder, proposed that the company hire enough African-American employees to achieve parity with residential statistics, which was the beginning of Lilly’s forward-thinking approach to diversity.

Mainstreamed Approach to Diversity This commitment to innovation still holds true today. When we first formalized our diversity policy in the early 1990s, we initially appointed a director of diversity to oversee those initiatives. Today, we no longer have a director of diversity or a diversity department. Instead, we view diversity as a responsibility that is shared by everyone and not as something that can be managed by one person. We have page 19

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Raising The Bar

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Sidney Taurel: Mainstreaming Diversity Eli Lilly and Company “mainstreamed” our diversity efforts, and each part of the company is expected to develop diversity plans that support the business strategy. We believe this approach allows us to make long-term, permanent, and significant progress in diversity.

10 years, diversity training has been an integral part of the Lilly University training curriculum. Employees are encouraged to participate in these programs and workshops that are designed to strengthen the quality of work relationships among coworkers with diverse backgrounds.

Leadership from the Top Leading this approach today is our Chairman, President, and CEO Sidney Taurel, who has long been a strong proponent of diversity. He himself is actually a product of diversity with a multicultural heritage—born a Spanish citizen in Casablanca, Morocco, he graduated from École des Hautes Études Commerciales in Paris, France and later earned a master of business administration degree from Columbia University. Taurel joined Lilly in 1971 and served in our Brazilian, Eastern European, and French affiliates before coming to work in our global headquarters in Indianapolis, IN. Taurel recognizes the benefits of embracing the full spectrum of human perspectives and experiences. In fact, he has built his senior leadership team to reflect his commitment to a global and diverse perspective. Currently, of the 26 members of senior management at Lilly, 14 are either women, minorities or represent cultural diversity. Taurel states, “I am convinced that diversity will make Lilly more competitive in our business of helping customers all over the world live longer, healthier lives. I consider keeping Lilly on this path to be one of my greatest charges.”

Diversity in Action Our commitment to our mainstreamed diversity approach can be seen throughout the organization. First, we begin by equipping our employees. All employees receive training on our corporate values and are evaluated on the way they demonstrate them. In addition, for the past page 20

Other examples of our commitment to diversity include our recruitment practices where we seek to attract, hire, and retain diverse talent. To achieve this objective, we actively participate in targeted recruiting events for diverse audiences, such as events sponsored by the National Black MBA Association, the National Society of Hispanic MBA Conference, and the National Society of Black Engineers

2002, 43 percent of the participants were minority group members.

For the eighth consecutive year, Lilly has provided full financial support to two deserving minority candidates to attend Indiana University Medical School. The scholarship recipients also spend the summer working with Lilly physicians and scientists on important research projects.

In addition, Lilly has funded a program at the Rose-Hulman Institute of Technology to provide laptops for incoming AfricanAmerican freshmen to help support minority education in engineering.

Lilly remains the largest single employer of Rose-Hulman graduates.

Our diversity efforts do not stop at recruiting activities. Lilly also offers a variety of networks and support groups to aid with retention and help new employees integrate into the organization. These clubs and affinity groups are employee-led, which upholds our mainstreaming approach.

Such support groups and networks include our Chinese Culture Network, India Culture Network, African-American Network, Ibero-American Network, Asian-American Network, Deaf Sidney Taurel Community, Gay and Lesbian Employees Chairman, President & CEO and Leadership Award Winner Group, and the Women’s Network.

2003 Leadership Summit & Diversity Gala Some of the activities sponsored by these (NSBE), among others. In addition, Lilly groups and Lilly’s community relations has built strategic relationships with key colleges and universities across the country department include Black History Month events, a diversity golf classic, a cultural and has established ongoing relationships presentation on “Dance and Music from with four Historically Black Colleges and Universities, including Howard University, Silk Road,” Chinese New Year celebrations, an African-American meeting featuring a Xavier of Louisiana, North Carolina A&T, local news media personality, and an and Florida A&M. Ibero-American fall dinner-dance.

Following the terrorist attacks on One of Lilly’s most successful recruiting September 11, 2001, the workforce initiatives is our summer intern program partnering department sponsored a where students are offered challenging career experiences. During the summer of program called “Religious and Cultural

“I am convinced that diversity will make Lilly more competitive in our business of helping customers all over the world live longer, healthier lives.

I consider keeping Lilly on this path to be one of my greatest charges.”

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September/October 2003

1-800-573-2867 www.diversityjournal.com

Diversity: Discussions on Islam and Sikh Religions.” The more than 250 Lilly employees who attended were joined by community high school teachers and students.

Lilly also has made a concerted effort to broaden the participation of minority- and woman-owned businesses in the Lilly supplier base to reflect diversity in the business community. Lilly’s Supplier Diversity Development (SDD) initiatives match the unique capabilities of minorityand woman-owned businesses with Lilly’s business needs. Lilly’s SDD identifies, grows, and develops these businesses to serve as suppliers, broadening our supplier base.

In a global business community, it is clear that companies that value diversity realize new and better relationships, not only with employees but also with customers,

suppliers, and investors. At Lilly, we demonstrate our commitment to diversity by aligning corporate functions such as workforce partnering, community relations, supplier diversity development, and U.S. recruiting and staffing in order to achieve our mainstreamed approach to diversity.

We view diversity as more than a policy—it’s the way we do business.

Future Outlook Looking forward, we plan to capitalize on the momentum that currently exists around diversity at Lilly and continue to expand it.

We believe that, in the future, the only way to successfully foster a fully engaged workforce and an inclusive work environment is to further develop diversity as a competency. To achieve this objective, Lilly will equip employees with skills that will help them better understand their differences and value diverse perspectives.

According to Candice Lange, director of workforce partnering at Lilly, “We have been successful at recruiting diverse individuals into our organization and they’ve proven their talent and value.

Now the issue is no longer how to get diverse people in the door but how do we fully value them. This will only come from developing diversity as a competency that must start with the leadership of the company and emanate throughout the entire organization.”

At Lilly, diversity truly is the job of everyone—from the CEO to all employees.

Building on an innovative heritage of demonstrating respect for people, Lilly will continue to provide answers that matter as we cultivate diversity in our PDJ global communities.

For more information about diversity at Eli Lilly and Company contact Marcia Jay, Communications/Branding Associate, at jay_marcia_e@lilly.com.

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Eli Lilly and Company Sidney Taurel: Mainstreaming Diversity

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Raising The Bar

Cummins Inc.

the search for

CUMMINS’ LONG-STANDING TRADITION

character & commitment M

anaging diversity has two parts.

The first part is creating a diverse workplace and supply base in terms of representation. The second part is creating an environment that seeks, harnesses and uses employees’ different backgrounds and experiences. This helps Cummins Inc. solve problems and provide innovative products and services for customers.

to diversity through its 48 Local Diversity Councils and top management’s quarterly meetings to keep diversity issues at the forefront.

The Local Diversity Councils serve as ambassadors for the Company. They are involved in awareness initiatives within the Company and the communities in which Cummins operates. They also address issues of recruitment, retention and This year, our efforts to create a vibrant and cultural differences and similarities in diverse workplace were recognized by the workplace.

Fortune magazine, which named the Company one of the 50 best places to work Cummins also tracks and measures for minorities. In honoring Cummins, initiatives dealing with under-represented Fortune noted the Company’s commitment groups for recruiting, retention and hiring, page 22

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September/October 2003

procurement and training. And all 23,700 Cummins employees have been required to take the Spectrum Diversity Awareness training course designed exclusively for the Company.

Minority workers make up more than 17 percent of Cummins’ workforce, while more than 18 percent of all new hires are minorities. The company also has two minority board members (out of 10) and six of the 50 highest-paid employees are minorities.

Typical of the work of the Local Diversity Council and other groups within Cummins is the Company’s support of ethnic 1-800-573-2867 www.diversityjournal.com

More than 2,000 children have had the opportunity to discover, develop and display talent by building Food and live entertainment representing “Diversity is about self-esteem through the cultures from around the world and Watoto program.

Watoto community forums dealing with diversity respecting and kids stay in school; they are all part of the Ethnic Expo, held celebrating the make the right choices annually in Columbus, Indiana, where wonderful differences around drugs, sex and Cummins is headquartered. Last year, in people. It is the key illegal activities. They Brazil was the host country, and the to the future success of graduate from high school Brazilian employees of Cummins in businesses and and many pursue Columbus worked as a team to promote communities.” understanding of their country and culture. higher education.

The Expo featured a diversity panel of six Tim Solso Chairman & CEO The gala challenged the representatives who spoke about Brazilian and Leadership Award Winner Memphis community to holidays, traditions and celebrations.

2003 Leadership Summit & match a contribution from The headline show featured the authentic Diversity Gala the combined Cummins sounds of Brazil and brought the audience to its feet just like Carnaval in Rio. groups. More than 600 tackling some of the tougher issues members of the community rose to the The show ended with a spectacular associated with embracing a diverse challenge with cash and in-kind support fireworks display. workforce. Three years ago, Cummins for what they realized was a hidden treasure adopted a Domestic Partner Benefits Policy in their own backyard.

The participation of the Cummins for its employees. The policy makes such activities in the communities where it does business.

Brazilian employees in the Ethnic Expo was a demonstration of Cummins’ vision and values of Corporate Responsibility, Diversity and Global Involvement. The great support of Cummins Latin America and the following entities within Cummins was fundamental to the success of the event: the Southern Indiana Latino Affinity Group, the Automotive Diversity Council and the Heavy Duty Diversity Council.

Another recent activity was the Cumminssponsored fundraising gala in Memphis, Tennessee, for Watoto de Afrika (Swahili for “Children of Africa”). This exciting group of African-American performers, ages nine to 17, has captured the hearts and support of a number of Cummins’ organizations, including PowerCare, Fleetguard, Cummins Mid-South and The Cummins Foundation, for the last several years.

1-800-573-2867 www.diversityjournal.com

The gala was an example of Cummins at its best. Employees from many organizations dedicated countless hours taking care of hundreds of details. Along the way, they included the newly formed Watoto Board to develop their skills and teach them how to do fundraising.

benefits as health insurance available to life partners of Cummins’ employees who are not legal spouses. The policy applies to both opposite sex domestic partners of employees who are unrelated and to same sex domestic partners.

continued page 28

While community events are common venues for Cummins to fulfill its commitment, the Company does not shy from

Profiles in Diversity Journal

Chairman and CEO Tim Solso takes a handson approach to internal and external activities that support diversity. Above, with Watoto de Afrika (“Children of Africa” in Swahili) at a gala in Memphis; at left, with the School on Wheels program in Jamshedpur, India; and on the preceding page, visiting with employees in the Cummins plant in Pune, India.

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2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Cummins Inc. Tim Solso: The Search for Character & Commitment

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Raising The Bar

Exelon Corporation

CHICAGO’S BUSINESS AND CIVIC COMMUNITIES BENEFIT FROM THE DIVERSITY VISION OF EXELON’S JOHN W. ROWE

A POWERFUL

A

VOICE

s the Chairman and CEO of Exelon Corporation, John W. Rowe presides over one of Chicago’s most prominent and successful companies and one of the nation’s five largest utilities— with the second largest generating capacity and, by far, the largest nuclear fleet in the U.S. Beyond his admirable business skills, his passion and commitment to diversity makes John Rowe a powerful voice in the city’s business and civic communities.

70 percent of all new entrants to the workforce. That’s why Exelon is working toward a lofty—but attainable—diversity vision: “To be recognized as one of the most admired companies because of the passion for diversity and inclusion we demonstrate in all our business relationships.”

While Rowe would be among the first to agree that diversity is the “right thing to do,” he also understands what all of corporate America is coming to know—to survive, diversity is a must do.

Exelon is well on its way toward that goal, and in the race for talent, has taken steps that outpace its peers. Exelon adopted domestic partner benefits in 2002, and over the last year-and-a-half promoted record numbers of women and people of color into leadership ranks. Yet, with rapidly changing demographics, according to Rowe, Exelon needs to run faster.

Consider this: roughly one of every three U.S. workers today is a person of color.

Women, today, represent 47 percent of the workforce. And in less than five years, women and people of color will represent

“I can talk about why diversity makes sense on many levels—political, social, moral— but the bottom line is diversity increases customer satisfaction, fosters community support and provides alignment with

page 24

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September/October 2003

political representation,” he recently told senior managers.

It’s logical, then, that Rowe would declare that his workforce should reflect the communities they serve. First, he established a corporate diversity office, headed by Vice President Assir DaSilva.

Together they launched Exelon’s Diversity Council.

Creating a Successful Structure Comprising VPs from all business units and representatives from Exelon’s employee network groups, the council defined four strategic areas for success: workforce diversity, supplier diversity, education and support, and civic and social commitment.

For example, Exelon Generation is sharpening its focus on workforce diversity, establishing diversity councils at its 10 nuclear plant sites, piloting a mentoring 1-800-573-2867 www.diversityjournal.com

program for all entry-level engineers and rolling out diversity training. “Now that we’ve had some success at the key management level, we’re concentrating on all exempt levels,” says Kris Keys, Exelon Nuclear’s Director of Diversity and Case Management.

Employee Network Groups undergird much of the company’s diversity efforts.

“Externally, ENGs put the human face on our corporation,” says Assir DaSilva.

“Internally, they add insight to our strategies and goals, serve as a source for networking and career development, and provide the critical mass that promotes Exelon as a place that values all employees.”

While supported by Exelon with an executive sponsor, all of Exelon’s ENGs operate autonomously, are self-initiated, voluntary, corporate-wide and open to all employees.

Bringing diverse people in the door as suppliers and employees is one thing; it’s also crucial to create an environment where they can flourish. Education and support can make the difference.

That focus is a cornerstone of the broadbased diversity effort at Exelon Energy Delivery (EED). For example, in Philadelphia, now that employees have attended diversity training, supervisors are using toolkits—videos and exercises—to sustain the momentum. In addition, EED’s Philadelphians are piloting diversity dialogue groups—small gatherings to discuss a different dimension of diversity

target diversity spend and its own strategy for working with diverse suppliers. Now there is a consistent approach to developing and maintaining a supply base reflecting the diversity of Exelon’s communities—including firm target spending of 7 percent with minority and women business enterprises.

“Externally, ENGs put the human face on our corporation. Internally, they add insight to our strategies and goals, serve as a source for networking and career development, and provide the critical mass that promotes Exelon as a place that values all employees.”

“Just as our customer base is becoming increasingly diverse, so must our supplier base,” says Bridget Reidy, Exelon Chief Supply Officer. “We’re looking to build lasting partnerships with our communities.”

“I can talk about why diversity makes sense on many levels— political, social, moral—but the bottom line is diversity increases customer satisfaction, fosters community support and provides alignment with political representation.”

John W. Rowe Chairman & CEO and Leadership Award Winner 2003 Leadership Summit & Diversity Gala

each month.

Exelon’s support of civic and social commitments, and employee volunteer efforts also reflect dedication to diversity.

In Chicago, for instance, Rowe raised a total of $1.5 million—the most ever—for the Chicago Urban League and the Spanish Coalition for Jobs.

Working Within the Community

Meeting Every Challenge

Prior to focusing on supplier diversity as a whole within Exelon’s Business Service Company (BSC), each business set its own

In April, Exelon Corporation laid out its plans for an aggressive, all-encompassing effort to become the best and most

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September/October 2003

Assir DaSilva Vice President consistently profitable electricity and gas company in the United States. Called “The Exelon Way,” this new business model calls for integrating and centralizing many key functions, and consolidating and aligning key business areas. Part of the streamlining process that followed a recent round of mergers and aquisitions, The Exelon Way could be seen as a potential roadblock to minority advancement and representation.

However, Rowe says diversity is so important to the growth of the organization that it won’t be compromised by changes stemming from The Exelon Way. “The Exelon Way will enhance our business, not compromise it,” says Rowe.

“I believe that every individual has the potential to make outstanding contributions to our company regardless of their age, race, gender, color, national origin, ethnicity, sexual orientation, physical ability, veteran status, or religion.

It is up to all of us to create the conditions which will allow the propitious environment to flourish. The more diverse our workforce becomes, the greater the range of ideas which can be generated.”

Adds Rey Gonzalez, Vice President of Diversity for Genco and BSC: “We need to have representation but we need to go

continued page 28 page 25

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Exelon Corporation John W. Rowe: A Powerful Voice

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Raising The Bar

S

Starwood Hotels & Resorts Worldwide, Inc.

tarwood Hotels & Resorts is a global organization that is built on diversity. With six distinct brands—Westin, Sheraton, Four Points by Sheraton, St. Regis, The Luxury Collection and W Hotels—operating in over 80 countries, Starwood maintains an associate and customer base as diverse as the world’s population. Each of Starwood’s brands has a distinct appeal that affords the company a unique position in the global marketplace that caters to travelers of all backgrounds and from most every culture. Therefore, creating an environment of inclusion for its associates, guests and suppliers isn’t just the right thing to do—it is the very core of Starwood’s business.

“Celebrating diversity and inclusion and improving the communities in which we do business are all principles on which Starwood was built,” says Barry Sternlicht, Chairman and CEO. As the proud recipient of Diversity Best Practices’ CEO Leadership Award, Sternlicht continues to demonstrate Starwood’s commitment to creating a corporate culture that embraces and drives diversity success through its portfolio of hotels around the world.

FOR ONLY FIVE YEARS OLD, BARRY STERNLICHT’S STARWOOD HOTELS & RESORTS ALREADY EXHIBITS STELLAR DIVERSITY LEADERSHIP

page 26

rising

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Focusing on blending and mining the talents of Starwood’s more than 105,000 associates from around the world, and taking care of guests who frequent the hotel giant’s more than 750 properties is a commitment that begins at the top of the organization. By creating national partnerships with associations focused on serving the needs and concerns of many types of visible and invisible differences—race, gender and sexual orientation—Starwood hopes to have a far-reaching impact by making a difference in the markets in which the company operates.

Diversity Success In just its fifth year as a company, Starwood has established a Diversity Council, made up of

September/October 2003

1-800-573-2867 www.diversityjournal.com

senior leaders in Starwood. The role of the Council is to partner with other company leaders and drive this strategy forward with the support of a dedicated staff from the diversity area led by Ana Mollinedo, Vice President of Communications and Community Affairs for Starwood.

“Celebrating diversity and inclusion and improving the communities in which we do business are all principles on which Starwood was built.”

Barry Sternlicht, Chairman & CEO and Leadership Award Winner, 2003 Leadership Summit & Diversity Gala

“We have made huge strides on the diversity front at Starwood and that can be directly attributed to Barry’s leadership and passion in this area. I have worked with a number of CEOs and senior executives and, quite frankly, none come close to the level of commitment I have seen at Starwood,” said Mollinedo.

Starwood’s Corporate Diversity Council has developed a strategy and multi-year plan for accelerating change throughout the company, particularly in the area of representation. As an organization, Starwood is committed to setting the pace for the industry, raising the bar on associate development—especially the 62.6 percent of the company’s current associate population that are women and people of color. An example of such a program is the Associate Development program, which is designed to prepare internal Starwood associates at the property level for new assignments.

Starwood recently introduced a Minority Business Enterprise (MBE) program, 1-800-573-2867 www.diversityjournal.com

which will help women and minority vendors find new business opportunities.

The program features an online registration process for MBE vendors and an internal database to link purchasing managers to those potential vendors.

Starwood is the first hospitality company to offer online registration and real-time database access.

Starwood also recently launched a diversity website on StarwoodONE, an online resource for the company’s worldwide employees. This will provide Starwood associates with information about ongoing diversity and inclusion efforts, and a place to ask questions about diversity or discover resources to broaden awareness and understanding. Constantly posting news dealing with diversity, recommended readings, and links to diversity organizations and informative sites keeps Starwood employees up-todate and knowledgeable.

“Top 50 Companies for Diversity.”

Starwood entered the rankings at number 44, ahead of Hyatt and Wyndham.

In addition to the Diversity Best Practices award, Starwood has received the 2003 Excellence in Diversity Award from Savoy Professional and has been named to the “Corporate 100” list by Hispanic Magazine. More recently, the NAACP recognized their efforts by ranking them 4th (tied with Radisson) in the NAACP Hotel Industry Report Card.

Starwood keeps pushing the envelope in creating an inclusive environment. That’s the Starwood way!

PDJ For more information, visit www.starwood.com or contact Nadeen N. Ayala, Director, Corporate Public Relations at Nadeen.Ayala@starwoodhotels.com.

To make sure that progress is being made and internal skills and competencies are being built to foster an inclusive organization, Starwood has not only linked diversity goals to their reward system for senior officers but has also rolled out a Managing Inclusion training session for associates—beginning with members of the senior operating committee, which includes the Chairman & CEO.

Early Recognition Initiatives such as these are what make Starwood Hotels one of DiversityInc’s

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•

Barry Sternlicht with Ana Mollinedo, Vice President of Diversity, Communications and Community Affairs

September/October 2003

page 27

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Starwood Hotels & Resorts Worldwide, Inc. Barry Sternlicht: Rising Star

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

search for character This new policy is in line with Cummins’ other corporate policies, which require that all personnel activities, including hiring, promotions, raises, compensation and employee development, be done without respect to age, race, gender, sexual orientation, marital status or religion.

Adopting a domestic partner benefits policy extends this firmly-held belief into the benefits arena.

The policy also formally recognizes that traditional plans often do not benefit the increasing number of families with unrelated heads of household. Adopting this policy is not a statement about lifestyle.

Rather, it recognizes that the Company has to address the needs of its employee population and the overall workforce if it is to continue to attract and maintain a strong, diverse workforce.

This decision was made after a great deal of consideration and discussion within the Company. Likewise, the decision provoked significant discussion and debate, both

a powerful voice beyond representation so that all our employees feel valued and respected.”

The Respect of His Peers John W. Rowe is the recipient of civic and philanthropic honors from many organizations in recognition of his passion for diversity. In June 2003, he received El Valor Corporation’s Corporate Visionary Award. This award honors corporate leaders with vision and courage who open doors of opportunity for all people. The City Club of Chicago named him 2002 Citizen of the Year for his distinguished and progressive responses to environmental page 28

Cummins Inc. Continued from page 23

within Cummins and the greater community. Highly publicized protests were held outside the corporate headquarters by some employees and members of the community.

Committee, when he wrote a letter about the importance of diversity. His vision has fed diversity efforts at the Company for the last two decades. In this defining letter, he said:

But senior management did not waver in its belief that domestic partner benefits were the correct step to take, and that differing opinions were important to the process of promoting diversity.

As Tim Solso, Cummins’ CEO and Chairman, explained to our employees, “Change can be a difficult thing for any

“In the search for character and commitment, we must rid ourselves of our inherited, even cherished, biases and prejudices.

organization to accept. For some, this new policy may feel like a departure from the traditions of Cummins. In fact, just the opposite is true. This policy embodies the principles of J. Irwin Miller, principles upon which this company was founded, such as inclusion, tolerance, responsiveness and the pursuit of excellence,” he wrote.

J. Irwin Miller was Cummins’ former CEO and Chairman and, in 1983, served as Chairman of Cummins’ Executive

“Character, ability and intelligence are not concentrated in one sex over the other, nor in persons with certain accents, nor in certain races, nor in persons holding degrees from some universities over others.

“When we indulge ourselves in such irrational prejudices, we damage ourselves most of all, and ultimately assure ourselves of failure in competition with those more open and less biased.”

PDJ For more information about diversity at Cummins Inc., visit their Web site at www.cummins.com/employment/corporate culture, or contact Susan Hanafee, Executive Director/Information and Communication, at susan.hanafee@cummins.com

Exelon Corporation Continued from page 25 concerns as well as his leadership establishing Exelon as one of Chicago’s most philanthropic and civically active corporations. The Spanish Coalition for Jobs honored Rowe in May 2002 with the Corporate Leadership Award for his outstanding civic commitment and his contributions to the Latino community.

In 2000, Rowe was awarded the AntiDefamation League’s “A World of Difference” award in recognition of his strong commitment to the issue of diversity and equal opportunity for employees, vendors, and the ethnic and racial communities of Chicagoland.

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September/October 2003

John W. Rowe has gained the admiration and recognition of his peers as a true champion of diversity for corporate America. His courage and commitment makes his a powerful voice for diversity in Chicago, and in corporate America as well.

For information on diversity at Exelon Corporation, visit their website at www.exeloncorp.com.

PDJ

1-800-573-2867 www.diversityjournal.com

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Raising The Bar

Booz Allen Hamilton

W

The first Harlem renaissance, the African-American arts and activism movement of the 1920s and ’30s, provided the country with a rich cultural bounty from artists like W.E.B. Du Bois, Eubie Blake, Countee Cullen, and Langston Hughes.

Now Harlem is undergoing what many are calling a second renaissance, with new artists like Roberta Flack and Maya Angelou, activists, and even a former President calling the Upper Manhattan neighborhood “home.”

This renewed interest in the 125th Street corridor, while bringing change and opportunity, can threaten some of the traditional small businesses that provide the texture, vitality, and cultural context to the neighborhood.

When President Clinton established his office in Harlem two years ago, he said, “I want to make sure I’m a good neighbor in Harlem. I’m glad property values are going up, but I don’t want the small business people to be run out because I’m coming in.” And he pledged to help revitalize the largely African-American district. *From The Collected Poems of Langston Hughes by Langston Hughes, copyright (c) 1994 by the Estate of Langston Hughes. Used by permission of Alfred A. Knopf, a division of Random House, Inc.

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Photo courtesy of Graphicalic.dk/Jens Peter Olesen

hat happens to a dream deferred?

Does it dry up Like a raisin in the sun?

Or fester like a sore— And then run?

Does it stink like rotten meat?

Or crust and sugar over— like a syrupy sweet?

Maybe it just sags like a heavy load.

Or does it explode?*

BOOZ ALLEN LENDS ITS EFFORTS TO THE WILLIAM JEFFERSON CLINTON PRESIDENTIAL FOUNDATION AND ITS HARLEM SMALL BUSINESS PILOT PROGRAM.

THE SMALL BUSINESS

Renaissance

in H A R L E M

In April 2002, the William Jefferson Clinton Presidential Foundation launched the Harlem small business pilot program supported by Booz Allen Hamilton, the National Black MBA Association, and New York University’s Stern School of Business.

“Over the past two years, Booz Allen has had a special kinship with the neighborhood of Harlem,” said Chairman and Chief Executive Officer Ralph W. Shrader. “We’ve had a longstanding relationship with the Dance Theatre of Harlem, where one of our senior vice presidents, Reggie Van Lee, is serving as Chairman of the Board. Reggie’s leadership in the community brought Booz Allen this new opportunity to serve the neighborhood.”

Booz Allen consultants are working with ten Harlem small businesses in the pro bono consulting project with the

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Clinton Foundation and its partners.

The businesses include six established businesses and four start-ups—including a wellness center, a bowling alley, a flower shop, a hat shop, and a restaurant.

“These small businesses face many challenges in these recessionary times,” said Dr. Shrader. “They need to improve their stability and profitability as Harlem itself continues to change, and the larger chain retailers compete for their retail space and customers.”

The program is providing professional, technical, and managerial assistance.

Booz Allen-led consulting teams have volunteered services ranging from marketing advice to inventory management training.

The consulting team has kept the former President informed about their progress on 1-800-573-2867 www.diversityjournal.com

the initiative throughout the program.

Following a December briefing at the firm’s New York office, President Clinton noted, “I’ve seen a lot of economic models for small business in my more than 25 years working on these kinds of projects. This is the best one I’ve seen yet.”

“The skills Booz Allen brings—in improving cash-flow and inventory management, creating new financial models, marketing strategies, and the like— can make a real difference in helping Harlem’s small businesses and the Dance Theatre push through today’s economic hurdles,” said Dr. Shrader.

Economic development is crucial to helping this signature African-American center of commerce and culture take advantage of this Harlem renaissance. By enabling the businesses to compete in the expanding marketplace of Harlem, they will have the capability to contribute to the strength of the community as a whole.

One small business owner, Katrina Parris, says her start-up flower shop has been able to obtain funding and strengthen its

“These small businesses face many challenges in these recessionary times. They need to improve their stability and profitability as Harlem itself continues to change, and the larger chain retailers compete for their retail space and customers.”

Dr. Ralph W. Shrader Chairman and CEO and Leadership Award Winner 2003 Leadership Summit & Diversity Gala

projected launch plan with more detailed market insight and strategic and operational planning. “This project has been instrumental in helping us validate what we thought was the good idea of

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Booz Allen Hamilton Dr. Ralph W. Shrader: Small Business Renaissance in Harlem

opening our shop,” said Parris. “The support and advice we’ve received have added immeasurable value.”

Photo courtesy of Graphicalic.dk/Jens Peter Olesen

Left to Right: Senior Vice President Reggie Van Lee serves as Chairman of the Board of the Dance Theatre of Harlem; President Bill Clinton addressing Reggie Van Lee and Booz Allen project volunteers at the firm’s New York offices; a shot of the 125th Street corridor.

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page 31

The team also worked closely with Evetta Petty, co-owner of Harlem’s Heaven Boutique, a local hat store, to establish a marketing plan. “I had no plan,” she said.

“We were running a business, making a living at it, but there was just such room for improvement. We needed to be brought into the 21st century. They’ve really come in and changed Harlem’s Heaven Boutique, and we can’t lose now.”

The former President said he hopes that these successes continue. “Here is a group of people working six days and 80 hours a week, just trying to keep their heads above water,” he said of the small business owners. “They’ve never even had the time to do any kind of economic analysis before.

Now, they can move ahead. That’s why this project is so important.”

Booz Allen expects to complete the twoyear project in 2004, at which time the teams hope to be able to share the lessons learned so that the program can be duplicated in other areas of the country that could benefit from similar projects.

At a recent event celebrating diversity at the Virginia-based consulting firm, a representative of the Clinton Foundation delivered a letter to Dr. Shrader praising the efforts of Van Lee and his staff.

“It has been inspiring to see the men and women of Booz Allen Hamilton donate so much time and energy to this project and produce real results. Together, you have provided a shining example of corporate generosity and responsibility, and shown that sustainable economic growth, revitalization, and prosperity in any American community is an achievable reality,” wrote Clinton.

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“It has been inspiring to see the men and women of Booz Allen Hamilton donate so much time and energy to this project and produce real results.”

Photo courtesy of Graphicalic.dk/Jens Peter Olesen

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Dr. Ralph W. Shrader: Small Business Renaissance in Harlem Booz Allen Hamilton

William Jefferson Clinton Forty-Second President of the United States

“Our staff gains a great deal from working on a project like this,” said Dr. Shrader.

“They learn lessons and increase their skills certainly, but more importantly they get the satisfaction of working on something really important—something that truly makes a difference in the lives of others and allows them to live their dream.”

Langston Hughes, one of the most important writers and thinkers of the first Harlem renaissance and unofficially the Poet Laureate of Harlem, wrote a wellknown poem about Harlem in the 1950s called “A Dream Deferred.” It was a poignant verse that examined the outcomes that can result when people are not allowed to pursue their dreams.

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September/October 2003

Through the efforts of the William Jefferson Clinton Presidential Foundation, Booz Allen Hamilton, and other partnering organizations, the dreams of small business owners experiencing Harlem’s second renaissance will no longer have to be deferred.

Booz Allen Hamilton has been at the forefront of management consulting for businesses and governments for more than 80 years, combining strategy with technology and insight with action, working with clients to deliver results today that endure tomorrow.

To learn more about the firm, visit the Booz Allen Web site at www.boozallen.com, or www.strategybusiness.com, the Web site for strategy+business, a quarterly journal sponsored by Booz Allen.

PDJ

1-800-573-2867 www.diversityjournal.com

Eastman Kodak Company

DAN CARP REMAINS COMMITTED TO BUILDING UNDERSTANDING AND MUTUAL RESPECT THROUGH HIS ROLE AS KODAK’S CEO

L E A D I N G

W

CHANGE

Carp’s focus on diversity and inclusion models the values of past Kodak leaders.

Kodak founder George Eastman made multi-million-dollar philanthropic gifts to Historically Black Universities in the 1920s.

In 1998, Carp—then Kodak’s President and Chief Operating Officer—joined with Chairman and CEO George Fisher to co-create a CEO Diversity Award. The award each year recognizes managers who role-model exemplary leadership and embrace the mindset and behaviors which Today, Carp—Chairman and Chief lead to a diverse and inclusive work group.

Executive Officer of Eastman Kodak Company—remains committed to building Since 1998, eight managers have earned understanding and mutual respect through this award. his role as Kodak’s CEO. As CEO, Carp endorsed an expanded role for Kodak’s Chief Diversity Officer, “For a long time, I have believed that the May Snowden, and a Global Diversity only way to compete and win today is to get the best ideas from your employees,” he Office. Prior to Snowden’s appointment, diversity initiatives functioned within said. “If people are left behind, either Kodak’s Human Resources organization because their ideas aren’t valued, or they with just two employees. don’t get a chance to grow and develop, hen racial differences simmered on American college campuses in the 1960s, Dan Carp was a student and residence advisor at Ohio University in Athens, Ohio.

There, Carp organized dorm conversations between black and white students, helping them understand that “their differences were not always as vast as they first thought.”

their ideas are left behind as well.”

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Today, Chief Diversity Officer Essie Calhoun—who succeeded Snowden in September 2003—leads an expanded staff of 20. The Global Diversity Office today has a goal of creating and sustaining a shared vision of diversity and inclusion for all Kodak employees, customers, and suppliers.

In 1997, Carp was a major sponsor of Kodak’s “Winning and Inclusive Culture” strategy, which touches all areas of Kodak’s Global Manufacturing and Logistics organization. Working with Human Resources leaders in the company, Carp endorsed and championed the strategy and supported its rollout to employees.

He today describes it as a model program for creating cultural transformation within Kodak.

The Winning and Inclusive Culture strategy focuses upon continuous learning and a shared vision of playing to win. The page 33

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Raising The Bar

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Dan Carp: Leading Change Eastman Kodak Company strategy is designed to create a culture of teamwork that is essential to productivity gains in Kodak’s manufacturing operations.

An integrated strategy guides Kodak’s diversity and inclusion initiatives. This LEAD Strategy—for Leadership, Environment, Acquisition, and Delivery— focuses specific resources on diversity and inclusion in workforce, supplier, customer, and community relationships. In the Leadership component, Kodak’s commitment is that managers must own and lead the diversity strategy. The Environment component is a commitment to creating an environment in which people understand and engage diversity and inclusion as a means to achieve company business objectives. In the Acquisition component, the commitment is to implement a plan to recruit and retain diverse talent in addition to diverse customers and suppliers, as a means to improve Kodak’s competitive position.

And, in the Delivery component, Kodak’s commitment is to accountability—that is, results must be measured and progress monitored in the interests of credibility and continuous improvement.

To carry out these commitments, the Global Diversity Office focuses on five main areas: - Diversity Initiatives, including training and education for Kodak employees; - Global Compliance with Equal Opportunity Employment and Affirmative Action requirements; - Resolution Support Services for alternative dispute resolution for employees; - Work/Life programs that assist Kodak employees with changing personal needs; and - Eight Employee Networks for employees from many cultural and ethnic experiences. page 34

Focus on diversity, inclusion —and winning To monitor and shepherd these initiatives, a Global Diversity Leadership Team tracks the organization’s progress and identifies improvement opportunities.

This 34-member team includes managers from all Kodak businesses and most functional areas.

In addition, the company’s Worldwide Purchasing organization operates a wide-ranging supplier diversity program.

The program works to increase Kodak’s annual spend with minority- and womenowned businesses. Beyond compliance with government guidelines, engaging diverse suppliers gives Kodak the advantage of tapping the world’s best and most innovative companies. Under Carp, Kodak has set goals for doubling its annual spend with minority- and women-owned businesses in the U.S. by 2006. This represents 10 percent of the company’s domestic spend.

“The fact that we pro-actively formed an outside panel on diversity sent a very strong message through the whole company: that Kodak must be serious if they are going to open their diversity activities for the evaluation, the counsel, and the challenge that an outside panel of experts would bring.”

Essie Essie Calhoun Calhoun Chief Chief Diversity Diversity Officer Officer

In 2001, Carp championed a “Leadership Call to Action,” in which Kodak supervisors took part in mandatory learning sessions that set expectations for respect and fair treatment for all Kodak employees, suppliers, customers, and contractors.

This year, supervisors and employees are taking a required online e-learning program that refreshes their understanding and compliance with our Equal Opportunity Employment Policy.

Carp led the creation of an External Diversity Advisory Panel in late 2001.

While the company had a number of internal diversity initiatives, the senior leadership team determined that input and counsel from outside the company was valuable.

“We decided to form an outside group of leaders who had thought deeply about the subject of diversity and inclusion, who could bring a number of things to us,” Carp said. “One, they could bring an assessment of what we are doing at Kodak, Daniel A. Carp Chairman & CEO and help us stretch to be even more than and Leadership Award Winner we had tried to become. Two, they could 2003 Leadership Summit & Diversity Gala continued page 45

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2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Raising The Bar

Lockheed Martin Corporation

“At Lockheed Martin, we recognize that diversity is not just a short-term trend. It is a business imperative,” Dr. Coffman declares. “Our long-term success depends on encouraging the best from everybody on our team.”

According to the CEO, this means supporting the individuality of each employee by eliminating barriers to inclusiveness. The goal is for all employees to have a chance to reach their full potential with a rewarding career as contributors to the company.

“Diversity is all about creating an environment that welcomes, respects and develops our individual differences as a source of unity and strength,” he explains.

“It begins with Lockheed Martin’s core values of ethics, excellence, a ‘can-do’ attitude, integrity, people and teamwork.

It extends to every activity involved in attracting and retaining a talented workforce reflecting the many dimensions of our customers, suppliers and the world in which we operate.”

DIVERSITY INCLUDES

DR. VANCE D. COFFMAN AND LOCKHEED MARTIN’S BUSINESS IMPERATIVE

C

YOU

ompanies with an inclusive environment exhibit an excitement, energy and creativity that deliver a competitive advantage in the global market.

initiative over the last few years to build on the company’s commitment to diversity— involving everyone from employees and suppliers to customers, shareholders and the community.

That’s the view of Dr. Vance D. Coffman, Lockheed Martin’s chairman and chief executive officer, who has led a major

When someone asks who’s included in Lockheed Martin’s diversity effort, the answer is simple: Diversity includes you.

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Dr. Coffman, chairman and CEO since 1998, has been with Lockheed Martin for 30 years. He encourages a commitment to diversity as the right thing to do, but also makes a strong business case for an inclusive company.

“With projected labor shortages in the years ahead and intense competition for employees, we will need people of all races, genders, ages, backgrounds, perspectives and experience levels,” Coffman says.

“Diversity must encompass all of the dimensions that make us unique if we are to retain our global economic leadership.”

Among the many initiatives that are helping to drive the company’s efforts are 1-800-573-2867 www.diversityjournal.com

improvements in programs ranging from summer internships, co-ops and new employee orientation to mentoring, career development and stepped-up employee communications. An Executive Diversity Council and local Diversity Councils have provided additional leadership and focus on the company’s diversity vision.

Lockheed Martin has stressed that diversity includes supporting all employees, no matter what their level of experience or years with the company, as key to the corporation’s success.

During the final part of the competition, Coffman told the students: “As engineers,

The CEO is quick to point out that Lockheed Martin has extended the commitment to diversity beyond its walls to the community.

“Educational outreach has always been a primary focus of Lockheed Martin’s philanthropy efforts,” he says.

“We invest in education because it is integral to the future of our industry and the need to maintain our technical leadership as a nation. Every child should have the opportunity to experience the excitement of math and science. We start from kindergarten through 12th grade to spark an early interest and continue our support through higher education. The dreams of a child today may become the technology solutions of tomorrow.”

1-800-573-2867 www.diversityjournal.com

For Dr. Coffman, motivating the technical pioneers of the future has meant contributing his personal time, energy and excitement. This year, he served as the 2003 National Engineers Week Honorary Chair and was one of five judges of the final round of the National Engineers Week Future City Competition™. More than 90,000 middle school students from 950 schools designed and created a scale version of a future city using engineering and math principles.

hosted students for tours and activities at their company sites. Still more participated in engineering competitions, held presentations at local science museums and sponsored engineering fairs at their locations.

Another major activity of Lockheed Martin and its CEO is the annual Space Day event for which the company has been a creative force and long-term sponsor. Last year, Dr. Coffman was co-chair of the Space Day 2002 Opening Ceremony at the National Air & Space Museum. He informed the

students that “Space Day has very down-to-earth “Educational outreach has always been a primary goals: to inspire young people like focus of Lockheed Martin’s philanthropy efforts. yourselves to We invest in education because it is integral to the study science, future of our industry and the need to math and maintain our technical leadership as a nation. engineering— Every child should have the opportunity to all needed to understand our experience the excitement of math and science.” high tech world Dr. Vance D. Coffman Chairman & CEO … so that you and Leadership Award Winner can contribute to 2003 Leadership Summit & Diversity Gala our technologyintensive way of life.”

we all share a common desire to make the world a better place … As society advances, we will need engineers to help lead the way —and based on what I’ve seen, I believe a good number of you will be the engineers of tomorrow.”

These are just some of the many outreach activities that involve Lockheed Martin’s executive and employees. Employees and business leaders across the corporation are involved in wide-ranging volunteer efforts in the nation’s schools.

To name just a few more examples,

For National Engineers Week, Lockheed Martin employees joined their chairman in working with students on a variety of projects in neighborhood schools. Others

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employees at the company’s Missiles & Fire Control business units in Orlando, FL, and Dallas, TX, serve as mentors to students

continued page 43 page 37

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Lockheed Martin Corporation Dr. Vance D. Coffman: Diversity Includes You

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Raising The Bar

Sodexho USA

S

odexho, the leading provider of food and facilities management in the U.S. and Canada, has over 100,000 employees from over 70 countries, making it one of the largest and most diverse organizations in North America.

Their operations in the U.S. are led by President and CEO Michel Landel, who not only role models an appreciation for a more diverse organization that is inclusive of all people, but holds his staff responsible for measurable results in recruiting, retention and promotion of women and people of color and the development of all talent.

Diversity and inclusion are aligned with nearly every facet of the company’s business including human resources, sales and marketing, communications, and operations. Within each of the company’s major operating divisions, representing 6,000 locations across the country, directors have been appointed to support the alignment and implementation of Sodexho’s comprehensive strategy.

Progress in these areas is being tracked via a diversity scorecard and Landel reviews the results on a monthly basis. The executives who report directly to the CEO have a significant portion of their annual bonus incentive (25 percent) linked to achieving objectives in recruiting, retention and promotion within their organizations.

By linking executive pay to diversity performance, Landel is one of a small but growing number of corporate leaders who have moved beyond lip service and are actually “putting their money where their mouth is” when it comes to holding senior page 38

SODEXHO’S MICHEL LANDEL SEES MEASUREMENT AND ACCOUNTABILITY AS KEYS TO A COMPREHENSIVE DIVERSITY STRATEGY

diversity and the

BOTTOM

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1-800-573-2867 www.diversityjournal.com

Sodexho has developed a “diversity scorecard” to measure progress with respect to recruiting, retention and promotions.

Each operating division and corporate Many of these new initiatives involving department tracks their progress relative to recruiting, retention and minority promotion came about due to the efforts of the objectives established, and the executive team reviews the scorecards quarterly.

Dr. Rohini Anand, a nationally recognized expert on workplace diversity and Underlying this measurement process are inclusion, who today serves as the methods that are being refined to assist company’s Chief Diversity Officer and managers in achieving their objectives. reports directly to CEO Landel—further Management training programs ranging evidence of his strong commitment to from coaching and mentoring, to managing these important initiatives. within the law, and diversity and inclusion training, prepare managers with the skills The Strategic Imperative: they need to recruit, retain and promote a Measurement and Accountability In November 2002, Landel announced that diverse workforce. Employee development, executive teams accountable for progress in diversity.

diversity and inclusion would become one of the company’s six strategic imperatives, thereby not only formally focusing the organization on diversity and inclusion results, but also speaking to the importance of addressing diversity in order to drive business results.

Periodic reports on the company’s progress in attaining its financial goals along with other key objectives, including diversity, are provided to the entire organization.

Grouping the company’s financial achievements with its diversity objectives provides a signal to the entire organization that the diversity and inclusion strategy is an integral part of how success is measured—not only in HR practices, but in key aspects of the business. Diversity is addressed in everything from marketing efforts and menu customization, to the development of strategic partnerships with diverse organizations, vendors and suppliers. “We see diversity and inclusion as enabling us to capture increased market share from a rapidly evolving customer base while increasing our ability to retain current clients,” says Anand.

1-800-573-2867 www.diversityjournal.com

“Workplace diversity is a basic, fundamental component of our core business philosophy.

Our diversity initiatives underscore the importance of providing opportunities for career development at all levels of our workforce.”

Michel Landel President & CEO and Leadership Award Winner 2003 Leadership Summit & Diversity Gala training on sourcing diverse candidates and succession planning efforts to identify diverse talent, all assist in reaching the recruiting, retention and promotion objectives.

Diversity literature clearly suggests that benchmark companies have found the surest way to ensure a cultural change is to hold managers accountable for their diversity results. At Sodexho, all managerial bonuses are tied to diversity objectives.

“In linking incentive compensation to

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achieving specific objectives, we have further strengthened our measures and accountability,” says Anand.

Recruiting and Retention Sodexho’s robust diversity recruiting strategy includes targeting career fairs, trade journals, internship programs and Web sites. All recruiters go through rigorous training on sourcing diverse candidates and developing partnerships, and they provide support to managers who, in addition to all their operational duties, must also implement affirmative action plans.

“At Sodexho, we know we must be viewed as an “employer of choice” in our industry if we are to attract the best talent from all groups—today’s young managerial recruit may be tomorrow’s senior leader,” states Anand. “It’s equally critical to create an inclusive environment that retains those talented hires, recognizing that each employee brings value to the organization through their differing perspectives and cultures. This same talent will continue to help us innovate and become more profitable in this increasingly sophisticated and competitive global marketplace.”

A focus on employee development and mentoring activities helps to ensure that diversity is an integral part of succession planning activities. “We are working hard at creating an inclusive culture through diversity training efforts,” says Anand, “which will contribute to retaining our employees and developing the necessary competencies to support a more diverse workforce and inclusive work environment.

We will continue to cascade the training throughout the organization and track behavior change as a result. We also support work/life balance activities, which include flex time and job share initiatives.”

continued page 44 page 39

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Sodexho USA Michel Landel: Diversity and the Bottom Line

K N OW T H E Y E W

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M

National Institutes of Health

anaging diversity, like conducting biomedical research, is a long-range, continuing effort of the National Institutes of Health (NIH), a component of the U.S. Department of Health and Human Services.

Its Director, Dr. Elias A. Zerhouni, and all 27 Institute and Center senior executives throughout the agency enthusiastically support and uphold the organization’s diversity policies, programs and initiatives.

The NIH Office of Equal Opportunity and Diversity Management (OEODM), part of the Office of the Director, is the lead group for NIH-wide policy formulation, implementation, coordination and management of the equal opportunity, civil rights, affirmative employment and workforce diversity programs.

Dr. Zerhouni signed the policy statement on Equal Opportunity and Diversity Management on August 15, 2002, just three months after arriving at the NIH. The policy states, “As the Director of the NIH, I am fully committed to ensuring that the NIH maintains its position as the Nation’s premier biomedical research institution.

If we are to uphold our reputation for excellence, each and every employee must work together to make the NIH the employer of choice.” In his Senate confirmation hearings, he also stated, “We need to continue to train, recruit and retain the best talent in biomedical research because, in the final analysis, it is always the creative spark of the unique individual that leads to new knowledge and real progress.”

The Director’s policy reaffirms the diversity legacy of the NIH. “Together, we must continue to build upon our accomplishments as an organization that respects the diversity an individual brings to the workplace.” Managing diversity 1-800-573-2867 www.diversityjournal.com

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Raising The Bar

DR. ELIAS A. ZERHOUNI AND HIS COMMITMENT TO MAINTAIN NIH’S POSITION AS THE WORLD’S PREMIER BIOMEDICAL RESEARCH INSTITUTION.

DIIV VE ER RS SIIT TY Y D

WORKS

became an integral part of the NIH mission in 1995 when the multi-dimensional initiative was introduced to the agency at a forum called the NIH Diversity Congress.

The Congress was a gathering of 115 delegates representing all NIH Institutes and Centers and several employee advocacy groups. As a result of the Congress, the Workplace Diversity Initiative (WDI) was developed and has received continuing support from the NIH leadership.

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All levels of management must serve as diversity champions so that the principles of inclusion are integrated successfully into all facets of the organization. Equal opportunity at the NIH promotes excellence in biomedical research.

Diversity is critical because disease is diverse and knows no boundaries. The NIH is the Government’s lead agency for health research and is responsible for communicating and conducting research page 41

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

Dr. Elias A. Zerhouni: Diversity Works for the benefit of all populations, regardless of geographical location, ethnicity, gender, physical and mental capabilities and the full range of diverse characteristics found in these populations.

Its mission is to uncover new knowledge that will lead to better health for everyone.

Given the demographics of the nation, it is an organizational necessity to recruit and retain individuals from every segment of society to participate in its mission.

To this end, the NIH continually monitors the makeup of its workforce.

National Institutes of Health

“The pool of minority scientists is increasing and the scientific establishment realizes that it must cultivate and nurture minority talent if scientific research is to remain a viable enterprise.”

Dr. Elias A. Zerhouni Director and Leadership Award Winner 2003 Leadership Summit & Diversity Gala groups. Additionally, the NIH has over 1,700 Visiting Fellows from all over the world who participate in the valuable research efforts that benefit global populations as well.

Lawrence N. Self Director NIH Office of Equal Opportunity and Diversity Management

At the end of March 2003, the NIH’s permanent and temporary workforce profile consisted of 64.3 percent Whites, 19.5 percent African Americans, 12.3 percent Asian/Pacific Islander Americans, 3.2 percent Hispanics and 0.4 percent American Indian/Alaskan Natives. The gender representation was 42.4 percent men and 57.6 percent women. Persons with self-identified disabilities were 5.4 percent of the workforce. Under-representation in grade levels and occupations for these groups is addressed in the NIH Annual Affirmative Employment Plans where outreach and recruitment activities are planned and goals are set for hiring candidates from under-represented page 42

Attracting minorities to careers in science continues to be an important task. “The pool of minority scientists is increasing and the scientific establishment realizes that it must cultivate and nurture minority talent if scientific research is to remain a viable enterprise. I think one approach that everyone agrees on is to identify and attract students with potential early on and not let them ‘fall though the cracks’ of academia,” states Dr. Zerhouni.

NIH offers opportunities for all persons to develop their full potential in the pursuit and support of science. The NIH OEODM staff and the Diversity Catalysts in each of the Institutes and Centers have set goals in the Strategic Plan for Managing Diversity that promote the integration of equal opportunity and inclusion into employment decisions involving recruitment, selection, training, promotion, transfer and employee benefits. Through planned

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actions to address under-representation of minority groups, women and persons with disabilities, goals are set annually for hiring and promoting under-represented groups.

The major programs that support these goals are the NIH Minority Corporate Outreach and Recruitment initiatives, Minority Internships, Undergraduate Scholarship Program, NIH Academy, and funding of research and research training grants designed to encourage minority students to pursue training for scientific careers at institutions with substantial minority enrollments.

For internal retention and upward mobility opportunities, NIH sponsors and offers to its employees the NIH Management Internship Program, Presidential Management Intern Program, Management Cadre Intern Program, Knowledge Associate Program, Career Opportunity Training Agreement Program, U.S. Office of Personnel Management Women’s Leadership Program, Aspiring Leadership Program, Executive Leadership Program and Executive Potential Program.

Dr. Zerhouni has stated that, “We also need to consider novel approaches to helping minorities remain in mainstream science.

Providing students with knowledgeable and supportive mentors and role models could entice some to stay.”

Joan Brogan Deputy Director NIH Office of Equal Opportunity and Diversity Management 1-800-573-2867 www.diversityjournal.com

NIH Champions of Diversity Awards 2001

At the NIH, all levels of management must include EEO and Diversity Management Critical Elements in their annual performance contracts. Noteworthy accomplishments in the areas of EEO and Diversity Management are considered for any overall outstanding ratings and bonuses given by the manager’s supervisor and reviewing official at the end of the rating cycle. A Performance Review Board, on which the NIH OEODM Director serves, conducts evaluations of the total performance of executives and recommends awards and bonuses; it considers EEO and Diversity Management accomplishments in its recommendations for awards and bonuses.

Annually, the NIH offers a Senior Leadership Program that brings together teams of senior scientists and administrators for an intensive learning experience, allowing them to gain the practical leadership skills and knowledge needed to manage a diverse workforce.

The NIH offers an online orientation module and online training is available to all employees in subjects such as the Prevention of Sexual Harassment, Disability Awareness and Diversity Management.

The Director of NIH and management realize that supporting equal opportunity and including all members of society in the workplace promote excellence in biomedical research, and their internal and

diversity includes you in the public schools at all levels. Lockheed Martin employees at Sandia National Laboratories, Albuquerque, NM are involved in the corporation’s CroSSlinks program, which builds a partnership among scientists, engineers and teachers to promote hands-on learning in math and science. New Jersey-based employees of Naval Electronics & Surface Surveillance participate in “The Future Engineers and Scientist Program,” which strives to strengthen math, science, communication and computer skills among junior high 1-800-573-2867 www.diversityjournal.com

external communications reflect these views. Diversity works at the NIH when the value of diversity is stated and practiced by the leadership. Ensuring that the members of the leadership reflect diversity sends a powerful signal to the workforce as well. Diverse representation at all levels of the organization brings quality and credibility to the customers and the public that a government agency serves.

For more information about the workplace diversity initiatives at the National Institutes of Health, visit their Web site at www.oeo.od.nih.gov or contact Joan Brogan, Deputy Director of OEODM, at BroganJ@od.nih.gov.

PDJ

Lockheed Martin Continued from page 37

school students. Employees throughout the corporation also support MATHCOUNTS, a national initiative to instill a passion for mathematics in students.

Beyond the goals of career development and motivating the technical pioneers of the future, Dr. Coffman sees diversity as reflecting the very best of America’s ideals and a beacon of hope and opportunity for people who have come here from every corner of the globe. “I believe that ‘liberty and justice for all’ can be a deep source of

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strength and unity, not only for America but for people from all nations throughout the world. This nation is, quite literally, a shining example of what happens when many join together to become one … e pluribus unum.”

For more information on Lockheed Martin’s diversity initiatives contact Shan Carr, Senior Manager Workforce Diversity, at shan.carr@lmco.com.

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2003 LEADERSHIP SUMMIT & DIVERSITY GALA

National Institutes of Health Dr. Elias A. Zerhouni: Diversity Works

2003 LEADERSHIP SUMMIT & DIVERSITY GALA

diversity and the bottom line

Sodexho USA Continued from page 39 Black Collegian award for providing career opportunities to recent African-American college graduates; and awards from local and state governments for our commitment in hiring disabled workers.

Grass Roots Involvement “It is my experience that culture change through an integrated diversity strategy is only possible if there is widespread employee buy-in,” says Dr. Anand. In the short span of a year, Sodexho has chartered three network groups—the African American Leadership Forum (AALF), the Women’s Network Group (WiNG) and the Pan Asian Network Group (PANG). A fourth, the Hispanic Network Group, is newly chartered. Unlike some other benchmark companies, Sodexho provides financial support to its network groups.

The network groups support recruiting, retention and promotion strategies in several ways. They are an excellent referral source for internal and external candidates, and enhance retention and promotion efforts by welcoming and mentoring new employees, and providing a venue for personal and professional development.

Sodexho’s commitment to diversity and inclusion, particularly in the areas of recruiting, retention and promotions, represents an integrated and aligned effort across all business lines and functional areas, with a clearly articulated strategy, Dr. Rohini Anand SVP and Chief Diversity Officer

mentoring to develop a pool of diverse employees for promotions, and supporting the activities of the network groups to foster retention.

Recognition—Internal and External

Internal recognition programs such as “Spirit of Sodexho” and “Heroes of Everyday Life” allow Sodexho to celebrate successes and to continually engage and In addition, the divisional diversity councils enroll the organization in the diversity and inclusion effort. External recognition for align divisional and regional diversity and Sodexho’s demonstrated results has been inclusion activities with the overarching strategy. The councils are key in leveraging plentiful: in the past year, Sodexho has received the Latina Style award as one of external partnerships to drive recruiting, the 50 best companies for Latinas; the encouraging and tracking cross-cultural

common objective resources—leaders from academia, business and government. Boeing has various ties with many leading universities and actively supports some 10 leading minority educational organizations that range from the American Indian Science and Engineering Society to Women in Aviation, and the Asian American Society of Engineers to the National Hispanic Corporate Council. Just recently four Boeing employees were named recipients of the Black Engineer of the Year Award, and

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measurement system, accountability and commitment from the CEO. “Our work is far from complete, but clearly we are making progress in our efforts to leverage diversity and to create a more inclusive work environment for all employees,” says Anand. “But our chances for attaining long term success are good because of the existing strong commitment from the senior leadership, and the ongoing efforts to sell the business case for diversity throughout our organizations.”

PDJ To find out more about Sodexho’s diversity initiatives, visit www.sodexhoUSA.com or contact Sandra Samahon, Executive Assistant to Dr. Anand, at sandra.samahon@sodexhoUSA.com.

The Boeing Company Continued from page 17

several Asian and Hispanic employees have been honored for recent accomplishments as well.

The company has an ongoing association with 13 Historically Black Colleges and Universities and Minority Institutions throughout the nation. Boeing’s commitment was reflected in a recent survey that showed the company ranks first among corporations and U.S. government agencies in its support of Historically Black engineering schools. Boeing Chief

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September/October 2003

Technology Officer David Swain said, “It’s an indicator that our strategic focus on developing enduring, mutually beneficial relationships with these important institutions is working.”

In 2002, Boeing received the first Millionaire’s Club Award from the Defense Contract Management Agency West, of Carson, CA, for passing the $1 million mark in the placement of subcontract awards with HBCUs. In fact, Boeing supplied almost $2 million—$1,970,894, 1-800-573-2867 www.diversityjournal.com

Eastman Kodak Company Continued from page 34

talk to us about trends going on in the world, and where this journey of diversity might go. Three, they would send a strong message that Kodak was serious about diversity.

Spelman College.

• Jean E. Dubofsky, Attorney. She served as Deputy Attorney General for Colorado and as a Justice on the “Not many companies form outside panels Colorado Supreme to look at anything they do inside,” he Court. continued. “The fact that we pro-actively • Rev. Norvel Goff, Sr., formed an outside panel on diversity sent a Pastor of Baber African very strong message through the whole Methodist Episcopal company: that Kodak must be serious if Church in Rochester, they are going to open their diversity NY, and President & activities for the evaluation, the counsel, CEO of the Greater and the challenge that an outside panel of Rochester NAACP. experts would bring.”

• Taeku Lee, Assistant The panel meets quarterly with Carp, and has made recommendations on leadership succession planning policy to Kodak’s Board of Directors. Eric H. Holder, Jr., former U.S. Deputy Attorney General and Partner, Covington & Burling, LLP, of Washington, DC, chairs the external panel.

Holder is the first African-American to serve as Deputy Attorney General. Other panel members include: • Dr. Johnnetta B. Cole, President, Bennett College and former President of

to be exact—with its 13 partnering HBCU/MIs. Boeing is optimistic about the future. “It’s clear that we still have a long way to go,” says Tucker. “But I am heartened that diversity is becoming an essential part of an increasingly open, progressive and competitive marketplace. The recruitment and development of minorities seems to be assuming its rightful place as an entrepreneurial effort that makes good business sense.”

1-800-573-2867 www.diversityjournal.com

Kodak’s outside diversity panel meets quarterly with leadership.

Seated, left to right: Jean Dubofsky, Richard McCormick, and Dr. Johnnetta Cole. Standing, left to right: May E. Snowden, then chief diversity officer, Eric Holder, chair of diversity advisory panel; Lionel Sosa, Joyce P. Haag, assistant general counsel, and vice president, Legal, Eastman Kodak Company; Taeku Lee, Rev. Norvel Goff, and Michael P. Morley, chief administrative officer and executive vice president, Eastman Kodak Company.

Professor of Public Policy, Harvard University, John F. Kennedy School of Government. Dr. Lee holds degrees from the University of Michigan (A.B.), Harvard University (M.P.P.), and the University of Chicago (Ph.D.).

• Richard D. McCormick, Immediate Past Chairman of the International Chamber of Commerce. Chairman Emeritus of U S WEST, Inc., now called Qwest Communications, McCormick retired as CEO in 1998 and Chairman in 1999.

Says Swain: “Business people who do not join this effort of diversity certainly risk being left behind. We at Boeing refuse to be left behind. We have the leadership, the vision, the tools, the energy, and above all else—the people—to succeed.”

• Lionel Sosa, Consultant. Founded Sosa, Bromley, Aguilar & Associates (now Bromley Communications), the largest Hispanic-advertising agency in the U.S. He was previously Chairman of DMB&B/Americas from 1991 to 1995.

Carp also meets regularly with members of Kodak’s eight employee networks. Each network focuses on educating Kodak people on the unique cultural, social, and ethnic perspectives of its membership.

These include networks for women employees, African Americans, Hispanics, Asian Americans, Native Americans, gay-lesbian-bisexual-transgender employees, military veterans, and PDJ employees with disabilities.

For more information, contact David Kassnoff, Manager, Communications & Publc Affairs/ Global Diversity at david.kassnoff@kodak.com.

For information on diversity initiatives at The Boeing Company, contact Beverley Pizzano, Director of Global Diversity at beverley.a.pizzano@boeing.com.

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2003 LEADERSHIP SUMMIT & DIVERSITY GALA

leading change

Raising The Bar

Bill George

A

great misnomer in recent years is the equating of workforce diversity with quotas based on gender and race.

Diversity is an essential element of a healthy, vibrant organization, but it’s not at all about quotas.

D I V E R S I T Y When leadership reflects the diversity

One of this summer’s biggest stories was the Supreme Court’s decision on the University of Michigan’s system of admission preferences for members of minority groups. Supreme Court Justice Stephen Breyer commented recently that the court was impressed with the legal reasoning emanating from the amicus briefs of major corporations arguing for a system of preferences so they could create diverse, multi-faceted organizations.

Diversity in all its forms—national origin, gender, race, religion, sexual preference, cultural influences—is essential to attracting the most talented people to your organization and enabling them to contribute to the fullest extent of their abilities. Organizations that do not work hard at diversifying their workforce will find they are recruiting from a shrinking pool of talent. When they finally decide to diversify, they may find they are unable to attract and retain the best people from diverse backgrounds.

Having a wide range of diversity among your ranks is essential for strong teamwork and to enable everyone to feel fully part of the team. I have observed many organizations where people from diverse backgrounds never contribute their best ideas because they feel unwelcome and out of sync with the group. When the diverse backgrounds of team members are honored, people develop a higher level of page 46

of the workforce, growth follows.

Former Medtronic CEO Bill George, on the changes in leadership that brought his corporation to the forefront.

QUOTAS

ISN’T ABOUT

commitment to the group’s purpose and are more willing to contribute fully.

Beyond these obvious benefits of diversity, having people on your team that represent the full gamut of life’s experiences is essential to sound decision-making. In such a diverse team, the group gets the benefit of a wide range of insights and the breadth of thought and opinion resulting from different perspectives. A diverse team is harder to manage, as inevitably differences of opinion surface and people want to be fully heard before decisions are taken.

But it is diversity, and the intense debates it generates, that leads to the best decisions.

By calling upon the broad experiences of team members, you can avoid pitfalls and make better decisions. Without it, you may find a group of brilliant people all marching off the cliff together, much as we did in the 1960s with the Viet Nam war.

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Ultimately, great organizations must be as diverse as the customers they serve. For global organizations this means having a broad array of nationalities and ethnic groups represented among the ranks of decision-makers, so that decisions reflect the interests of customers around the globe.

Few, if any, organizations have achieved this level of diversity, but Coca-Cola and Nestlé are getting close. Nestlé’s executive committee is so diverse that it does not have one Swiss national on it.

For three decades Coca-Cola’s executive committee has been dominated by a very diverse group of non-Americans, a far cry from its Southern heritage. The final blow to Douglas Ivester’s ill-fated tenure as CEO was his attempt to force Carl Ware, a talented and popular African-American executive, out of the company. Ivester’s successor, Douglas Daft, not only brought Ware back but increased his authority and the company’s 1-800-573-2867 www.diversityjournal.com

Raising The Bar Bill George: Diversity Isn’t About Quotas long-standing commitment to diversity.

When I joined Medtronic in 1989, I found myself surrounded by people with backgrounds similar to my own—white males from the Midwestern United States.

Although Medtronic employees came from highly varied backgrounds, our leaders did not. From the outset it was clear that our executive team needed more women, more African Americans, more Asians, more people from the East Coast and the West Coast, and more non-Americans. Until our leaders reflected the diversity of our workforce and our customer base, Medtronic could not become a truly global organization.

“Until our leaders reflected the diversity of our workforce and our customer base, Medtronic could not become a truly global organization.”

Bill George former Chairman and CEO Medtronic, Inc. So we set out to diversify our executive ranks. Early in my tenure as CEO we added a very talented and highly experienced chief financial officer and promoted an exceptional human resources leader. The CFO grew up in an AfricanAmerican family in the inner city of Detroit and achieved great academic and career success before joining Medtronic. I found that his wisdom and advice about people, not just finances, was invaluable.

1-800-573-2867 www.diversityjournal.com

Our human resources leader spent the first ten years of her career in the convent learning how to combine humanity with discipline, qualities that greatly benefited her leadership at Medtronic. She had courage to make the tough decisions on people as we raised the bar for Medtronic leadership and performance standards.

Not everyone saw the benefits to increased diversity. As we were escalating our efforts to broaden Medtronic’s leadership, one senior manager came to my office and closed the door. “I thought we had a common goal to make Medtronic more performance-oriented and more competitive,” he said. “So I don’t understand why you’re pushing diversity.” I challenged his assumption that diversity would reduce our competitiveness.

“In fact, it is just the opposite,” I said. “We need to create a more welcoming environment for talented women and people of color or we won’t be able to attract the best.

This will make us much more competitive over the long run.”

It took several years to build a diverse management group, but the payoff in terms of Medtronic’s outlook and decisionmaking was tremendous. Over the years we have added leaders from Zimbabwe, Japan, China, India, and a wide range of European countries as well as a large number of women to round out the executive team.

Although it took a number of years to

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“We need authentic leaders, people of the highest integrity, committed to building enduring organizations. We need leaders who have a deep sense of purpose and are true to their core values.

We need leaders who have the courage to build their companies to meet the needs of all their stakeholders, and who recognize the importance of their service to society.”

From the introduction to Authentic Leadership: Rediscovering the Secrets to Creating Lasting Value (Jossey-Bass, $27.95).

diversify the Medtronic board, today’s directors include three women, one of whom is African-American, and a French-born CEO. Over the past ten years I have served on the board of Target Corporation. Thanks to the leadership of CEO Bob Ulrich, Target’s directors and senior leaders come from highly diverse backgrounds, reflecting the company’s very diverse customer base.

Today’s directors include four women, two African-Americans, and one Hispanic, and the executive ranks are filled with very talented minorities and women. Not surprisingly, Target is highly successful in recruiting and retaining the most talented people for jobs throughout its organization from all diversity groups.

The perspectives of people with varied life experiences have made both these organizations more effective in decision-making and better able to appreciate the needs of their diverse customer base, just as they have in the many U.S. corporations that have made workforce diversity a top priority.

Bill George is the author of the new book, “Authentic Leadership,” and the former Chairman and CEO of Medtronic, Inc. He serves on the boards of Target, Goldman Sachs, and Novartis, and is Executive-in-Residence at the Yale School of Management. His website is www.authenticleaders.org.

PDJ page 47

Legal Briefings

Holland & Knight LLP

DOWNSIZING THE WORKFORCE DIVERSITY WITHOUT DOWNSIZING BALANCING THE LEGAL AND BUSINESS DEMANDS OF A MERIT-BASED, FAIR AND EQUITABLY "RIGHT-SIZED" WORKFORCE

Weldon H. Latham, Senior Partner

In

today’s uncertain and challenging business and economic climate, downsizing the workforce (also known as a reduction-inforce or “RIF”) has become a much too common phenomenon in many large corporate environments. The decision to implement a downsizing (sometimes euphemistically referred to as “rightsizing”) is often easier than devising an appropriate process that accomplishes the company’s short-term fiscal objectives without sacrificing long-term business imperatives. Significant among the concerns of many companies when downsizing today’s workforce is how to achieve the fiscal goals of a smaller payroll encompassing the company’s “most talented employees,” while retaining the progress achieved to date in recruitment, retention, and development of a diverse workforce. Maintaining such a highly skilled workforce is challenging under the best of circumstances. The need to reduce the size of the workforce obviously creates additional tensions, not only due to the impact on the affected employees (and

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their concerned colleagues who remain employed), but also as a result of the need to address critical issues, such as legal rights and obligations, including Equal Employment Opportunity Commission (EEOC) and Office of Federal Contract Compliance Programs (OFCCP) regulatory guidelines, contractual agreements (including union contracts), employment policies and practices, and the overriding business needs of the company.

While most modern companies understand that the challenges of managing an RIF should not deter from their commitment to diversity as a long-term business imperative, the road to achieving a legally appropriate approach is filled with dangerous obstacles. According to DiversityInc.com, a majority of companies surveyed report that their efforts to recruit and retain a diverse workforce remain steadfast or have increased, despite U.S. Bureau of Labor Statistics data that indicate more than 2.8 million people were laid off between the first quarter of 2001 and the third quarter of 2002. Clearly the old maxim of “last hired, first fired” cannot be

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the sole basis for a diverse workforce reduction, absent contractual necessity.

Anticipate the Issue with a Diverse Workforce Although there are no simple solutions, one thing is clear—each company must go through a careful, reasoned analysis that ensures that the RIF plan does not unfairly and adversely impact any employees, particularly legally protected classes of employees, e.g., minorities and women.

Companies that have achieved a significant level of diversity throughout their organizations, both horizontally (across functional operations) and vertically (throughout the corporate hierarchy) prior to downsizing, will face fewer obstacles maintaining more than “token” diversity after the downsizing is complete than those that have not achieved a diverse workforce.

For example, companies where diversity is concentrated in certain functional areas and/or limited to entry or non-managerial level positions prior to downsizing may face significant difficulties in trying to implement an RIF without sacrificing hard-won diversity gains. Worse yet, 1-800-573-2867 www.diversityjournal.com

Holland & Knight LLP: Downsizing The Workforce Without Downsizing Diversity Legal Briefings downsizing companies that are not diverse run the risk of magnifying their noninclusive environment and image. Broad diversity throughout an organization is not only good business, but it is also a forward thinking strategy that anticipates the effects of a downturn in the economy or the business cycle.

that all employees have an opportunity to be considered according to the same legitimate criteria.

Nevertheless, no matter how carefully an RIF is planned and implemented, if a company is not already highly diverse throughout the organization before the RIF, it is very likely that Five Steps to a Prudent RIF the RIF will have Regardless of a company’s diversity some negative impact demographics, the key to planning and on the diversity of the implementing a diversity-sensitive workforce. This is downsizing is to base the process on wellbecause a company’s formulated, neutral and practical business ability to engage in criteria. An RIF should be planned and measures designed to implemented with the advice and assistance avoid or minimize the of legal counsel. In every case, the process negative impact of should consist of the following steps: (1) downsizing on analysis and articulation of the business workforce diversity reason(s) for downsizing; (2) determinais severely tion of the anticipated economic effects of circumscribed by the company actions on the workforce; (3) law (which prohibits identification of affected employees using employment legitimate, “business-based” selection decisions made on the basis of race, sex, criteria (ideally the most objective religion, national origin, age, disability and available), consistent with all contractual or other protected characteristics), in addition other policy obligations to follow seniority to any existing contractual, policy, or or other layoff rules; (4) analysis of adverse business constraints.1 So, how can an impact; and (5) implementation, including employer conduct an RIF and minimize the development of a suitable separation effect on workforce diversity without process. Following each of these steps will running afoul of the law? The answer is to reduce the likelihood of allegations that the follow the five steps set forth below to RIF was effected in a discriminatory or ensure that the process is grounded on other unlawful manner. Moreover, while business necessity and legitimate following the five steps will not, in itself, selection criteria. maintain or enhance the diversity of the resulting workforce, it will serve to Step One: Articulate the Reason minimize the risk of decisions based on The first step is to analyze and articulate arbitrary or personal reasons, whether the reason(s) for, and goal(s) underlying, intentionally discriminatory or not. In the RIF. The reasons generally vary by many instances, arbitrary or personal company but often include a loss of employment or layoff decisions operate to customers, decline in revenues, corporate the detriment of workforce diversity, restructuring, or the elimination of certain especially minorities and women. business functions. Whatever the reason, it Adherence to the five steps will ensure is important that it be business-related and 1-800-573-2867 www.diversityjournal.com

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the goals be well-articulated. The reason/ goal will determine elements of the downsizing plan and the effect of the reduction on the workforce (Step Two), and guide the selection criteria for implementing the RIF (Step Three). Therefore, before moving to Step Two, it is critical to fully vet the stated business reason(s) for the RIF and “Companies whose diversity is concentrated in certain functional areas and/or limited to entry or non-managerial level positions prior to downsizing may face significant difficulties in trying to implement an RIF without sacrificing hard-won diversity gains. Worse yet, downsizing companies that are not diverse run the risk of magnifying their noninclusive environment and image.”

Weldon H. Latham

the company’s goals.

At this point, a company might reevaluate the necessity of the RIF altogether. In fact, a growing body of evidence indicates that companies often fail to realize the anticipated gains from downsizing and, as a result, more and more companies are forgoing RIFs in favor of more creative cost-cutting solutions, including offering early retirement plans or voluntary severance packages, engaging in workforce redeployment efforts, or encouraging employees to take paid or unpaid leave in lieu of layoff. Even the EEOC’s Task Force on Best Practices of Private Employers concluded that the most noteworthy best practices applicable to downsizing were those that sought to minimize the necessity for such actions.

Step Two: Determine the Effect If an RIF is determined to be the best 1

The U.S. Equal Employment Opportunity Commission "Best Practices of Private Sector Employers" (2002)

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Legal Briefings

Holland & Knight LLP: Downsizing The Workforce Without Downsizing Diversity

alternative, next consider the effect the RIF will have on the workforce. For instance, if the reason for the RIF is a loss of customers or decline in revenues, unless there are specific identifiable causes, acrossthe-board cost-cutting measures are likely to be implemented, and the RIF may affect the entire workforce to some extent.

Conversely, if the reason for the RIF is a restructuring or the elimination of certain business functions, it may affect only certain parts of the workforce, e.g., the operations of a single location or business unit may be shut down entirely. This determination will define the scope of the RIF and guide the selection criteria.

For example, if a facility or business unit will be shut down, the selection criteria may simply be all persons employed in that facility or unit.

measures, seniority, or job function.

A company cannot, however, make RIF determinations based on racial preferences, even when those racial preferences are intended to have the beneficial effect of

“In an age of increased sensitivity to the need for diversity, for both compliance and business imperative reasons, forward-thinking companies will expand their diversity efforts even in the face of a downsizing.” maintaining workforce diversity.

Step Four: Adverse Impact Analysis After a company develops its RIF plan and preliminarily selects affected employees, it should conduct an adverse impact analysis —Step Four—to determine whether the facially neutral selection criteria will disproportionately impact any protected class within the workforce.2 If any adverse impact is detected, particularly one that undermines workforce diversity, careful consideration should be given to whether there are other legitimate selection criteria that could be used that would reduce or eliminate the adverse impact while still accomplishing the desired business objectives. If so, those selection criteria should be utilized to implement the RIF in lieu of any criteria that will result in a disproportionate or discriminatory impact on any protected class of employees.

Step Three: Employee Identification Once the rationale, goal(s), and anticipated effects on the workforce have been identified, the most difficult task will be determining the selection criteria for implementing the RIF on an individualized basis. As with articulating the business reasons for an RIF, at this stage competent legal counsel becomes invaluable in advising the company of its obligations, most important its employees’ rights to a process free of discrimination, including “reverse discrimination.” Bear in mind, also, that unionized workforces, and companies with layoff or seniority policies, may be substantially constrained by those obligations in choosing the selection criteria. With careful consideration of the reasons for the RIF and its effect on the workforce, legitimate selection criteria that bear a rational relationship to the articulated business goals should be chosen for making individual RIF determinations.

The selection criteria can vary widely depending on the stated business goals, but can include, for example, performance page 50

Step Five: Implementation Finally, when implementing the RIF—Step Five—the selection criteria should be applied consistently and adhered to without departure in any instance. For example, if the selection criteria are not 2

If there are no reasonable alternative criteria the employer may conduct the RIF notwithstanding the adverse impact as long as the criteria are facially neutral and justified by business necessity.

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performance-based, performance should never be used in making the RIF decisions, even if it means laying off a valuable performer in favor of a poor one.

Implementation is also a key step where legal counsel should be actively engaged in the RIF process. This is particularly true given the statutory and/or regulatory requirements that govern many RIFs, such as notice requirements pursuant to the Worker Adjustment and Retraining Notification Act (“WARN”) and, if termination packages are offered, notice and/or waiver requirements under the Age Discrimination in Employment Act (ADEA).

Conclusion In summary, downsizing is an undesirable task which, even when done well, remains merely a result of unfavorable circumstances. The maze of legal and other obligations of an RIF makes it a difficult process. While it is much easier to maintain a diverse workforce after a downsizing when there is substantial diversity of the workforce prior to the RIF, the steps outlined above, if taken with care, can maximize the ability of any company to avoid unintentional negative effects of an RIF on its diverse workforce. Moreover, in an age of increased sensitivity to the need for diversity, for both compliance and business imperative reasons, forwardthinking companies will expand their diversity efforts even in the face of a downsizing. Such measures, coupled with the sound advice and guidance of legal counsel throughout the process, will ensure that diversity losses are minimized even while achieving a PDJ reduced overall workforce.

Weldon Latham is a Senior Partner and Practice Group Leader of the Holland & Knight LLP Corporate Diversity Counseling Group. He serves as Counsel to the Coca-Cola Procurement Advisory Council; Chair, Deloitte & Touche LLP Diversity Advisory Board; and General Counsel, National Coalition of Minority Businesses. www.hklaw.com .

1-800-573-2867 www.diversityjournal.com

Raising The Bar

merging responsibilities PUBLIC AND PRIVATE SECTOR LEADERSHIP

by Ronald N. Langston National Director, Minority Business Development Agency U.S. Department of Commerce

T

oday, public management has to a great extent adopted the integration of “private sector” management rules.

For example, the Administration of President George W. Bush has initiated the President’s Management Agenda. This agenda includes five government-wide management initiatives intended to foster reform and provide a common basis for ensuring accountability among Federal agencies: Strategic Management of Human Capital, Competitive Sourcing, Improved Financial Performance, Expanded e-government, and Integration of Budget and Performance processes.

agencies not accustomed to the “outcome” driven ROI and fiscal accountability approach to management are struggling to adapt. In addition, greater scrutiny from the departmental Offices of Inspector General (OIG) is also fixed on program and performance accountability.

One of the great influences that impacted my view of the public and private sectors and their similarities was an article written in 1980 by Graham T. Allison Jr., Professor at the John F. Kennedy School of Government, Harvard University, entitled Public and Private Management: Are They Fundamentally Alike in all Unimportant Particulars? The article served as a focus for Clearly, under this agenda, the President the seamless transition between public and is placing a high premium on public managers to act, adapt and strategically plan private sector management. and implement their agency’s goals and objectives pursuant to the best practices of The evolution of public and private sector traditional business models. Accountability management focused on their respective of public dollars and Return on Investment cultures of the administrative and the business (entrepreneurial) models. The (ROI) are critical performance measures public and private sectors—although and benchmarks. Federal agencies are culturally different in approach, style, required to justify on an annual basis (as constituencies and bottom line part of the Office of Management and performance measures—are respectively Budget (OMB) process) whether the driven by social policy and market share agency serves a “critical Federal role.” and profit in effectuating service delivery and customer satisfaction. One of the In fact, the performance and budget process has been unified and Federal 1-800-573-2867 www.diversityjournal.com

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constants that emerged between the two sectors was leadership.

The leadership factor among public and private sectors’ leaders and their respective policy, budget and management teams is critical to providing efficient, responsive and effective service. Whether you are the CEO of a major corporation or the head of a Federal agency, “leadership” is a high predictor of vision and strategic direction.

The challenge to public sector leaders, particularly in the Federal government, is to adapt to the entrepreneurial business model. At a minimum, public sector leaders must appreciate the new demands (and rewards) for managing public policy within strict budgetary boundaries to produce measurable outcomes.

One of the emerging outcomes of the President’s Management Agenda is, in effect, imposing the same type of fiscal and managerial discipline that historically has been the core competency and expectation of the private sectors and its investors.

During Fiscal Years 2001 thru 2003, the Minority Business Development Agency (MBDA) engaged in the process of transforming itself from a bureaucratic and culturally administrative agency to an page 53

Raising The Bar Minority Business Development Agency: Merging Responsibilities entrepreneurially focused organization. The new goals and objectives are designed to ensure effective, efficient and responsive services to its client base and performance accountability within the Federal management process. The mission of the agency also changed. MBDA would now center on becoming a culture focused on entrepreneurial innovation, committed to minority business enterprise and wealth creation. The core competency of MBDA is to develop and implement “entrepreneurial opportunities for minority business enterprises.”

These initiatives include: 1. Improving opportunities for minority-owned businesses to have greater access to capital; 2. Engaging in national strategic partnerships to leverage internal and external assets and enhance business enterprise opportunities in the marketplace; 3. Providing electronic access to growth markets by automated matching of firm capabilities with public and private sectors, and advocating an increase in electronic commerce by minority-owned businesses; and 4. Improving organizational effectiveness, responsiveness and efficiency through the implementation of continuous improvement strategies, retraining the human resource capital of the agency and greater emphasis on knowledge management, i.e., managing what the agency learns, teaches and archives.

Imprinting the entrepreneurial culture on an administrative culture is a challenge.

It is a “leap of faith” of transformation and reorganization requiring continuous discussion and training. What is occurring now (at MBDA) is not unlike what occurs in the private sector—the difference is that organizational change of this nature is not the usual state of affairs in governmental arenas. There is a natural tendency of page 54

government (and large private sector organizations) to stay locked in an administrative culture with its propensity for slow evolutionary change driven by controlled resources, adversity to risk, and coordinated activities measured by

business practice. Intergenerational integration of key staff linked to clearly defined performance plans must be a high management priority.

Organizational transformation is difficult, but not untenable. The leadership factor is “Diversity of the essential and the leader leadership class and the must engage in the management team by practice of exercising skill and experience managerial courage even is equally as critical at the risk of inviting as diversity by gender, race internal or external and ethnicity.” challenges. Time, history Ronald N. Langston

efficiency measures and the need for clearly defined authority and responsibility.

The entrepreneurial culture is driven by the perception of opportunity, revolutionary thinking, short time-lines, outsourcing resources, flat and informal management links, and strong leader(s) with a “can do” mentality matched by contrariant behavior.

Focusing on the need to react quickly and with a sense of urgency—as well as avoiding the “addiction” to actions of the administrative bureaucratic model— requires vigilance, patience and team leadership. Diversity of the leadership class and the management team by skill and experience is equally as critical as diversity by gender, race and ethnicity. The leader and management team must be opportunistic and open to hiring across generational and experiential qualifications over a broad horizon. Matching the organizational change with strategic choice selection among staff is not a science or art, but should be viewed as essential good

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and organizational productivity will be the ultimate judge.

Public and private sector management skills have merged. The President’s Management Agenda is driving the change within Federal government to produce outcomes and have a Return on Investment of public dollars. The responsibilities of public and private sector leaders have merged. The Schools of Public Administration (MPA) are wise to teach the skill sets to be a leader/manager similar to the curriculum of the Schools of Business Administration (MBA). MBA schools must teach good ethics, governance, transparency and accountability alongside market share or profit and loss.

It is essential in the age of global economic competitiveness among nations for the public and private sectors to acquire the knowledge and experience on how to attract leaders who can move seamlessly between the two sectors and whose responsibilities, skills and expertise will continue to merge in the 21st century. PDJ For more information, visit the U.S. Department of Commerce MBDA’s website at www.mbda.gov. or contact Kristie Meave, Public Affairs Director, at kmeave@mbda.gov.

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Special Feature: Making a Difference in Today’s Hispanic Market

Dr. Juan Andrade

waking

THE

giant THE LATINO POPULATION HAS OFFICIALLY SURPASSED AFRICAN AMERICANS AS THE LARGEST ETHNIC/RACIAL MINORITY IN THE U.S. AMERICAN BUSINESS, IT’S TIME TO WAKE UP AND SMELL THE COFFEE. AN INTRODUCTION TO OUR SPECIAL FEATURE “MAKING A DIFFERENCE IN TODAY’S HISPANIC MARKET”

BY DR. JUAN ANDRADE

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Special Feature Dr. Juan Andrade: Waking the Giant

T

he complexion of America is changing at a rate far faster than most people realize. This unprecedented change in the ethnic and racial diversity of the population in American cities has enormous political, social and economic implications.

According to the 2000 Census, minorities are now a majority of the population in the 100 largest cities in America. The 13 largest cities located in the Midwest states of Ohio, Michigan, Indiana, Illinois and Wisconsin are all included in the list. In all 100 cities the largest minority is either AfricanAmerican or Latino.

disappointed that our reaching this historic social and cultural milestone didn’t create much of a buzz in the mainstream media.

So, to no one’s surprise, the official announcement that Latinos surpassed blacks as the largest ethnic/racial minority in America was met with a big yawn. Why? Because the “sleeping giant” is still that— asleep. CAUTION: The sleeping giant I’m

When something is said to have “exploded,” the reference is commonly used to mean that an unusual source of force and power has been unleashed to violently transform whatever was impacted. But when we say the Latino community has exploded, that is not the meaning that applies, though the transformative power of its force is unmistakable. We are talking about the growth in our population, the increase in talking about is NOT the Latino the number of Latino-owned businesses, community. It’s the non-Hispanic progress in civic participation, and the community, and it needs to wake up and increase in our purchasing power. smell the coffee.

The Census Bureau recently announced that Latinos had officially surpassed African Americans as the largest ethnic/racial minority in the United States. Everyone knew that it would happen eventually.

Latinos will eventually surpass the number of whites in America too, for that matter, but probably not before the end of this century. Latino anticipation of surpassing blacks had been brewing since the mid1980s. Many demographers predicted that it would occur between 2005 and 2010.

Many of us thought it would happen sooner, as it did. And when it actually did, in 2000, Latino leaders and activists were 1-800-573-2867 www.diversityjournal.com

The complexion of America is changing, and changing rapidly. There are more “people of color” than we have ever seen.

The country has probably never looked this beautiful since the time when it was still uninhabited by humans of any race.

The 2000 Census reported that the nation’s population is 281,421,906. Of that number, 75 percent is white, 12 percent is black, and 12 percent is Latino. (The Latino percentage of the U.S. population has since increased to 13.) I don’t want to give the impression that there are no Asians or Native Americans. But people are either

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white, black, or other. While Latinos can be all three, Asians and Native Americans are counted as white. But in their own right, they comprise 3.6 percent and 1 percent of the population, respectively.

Now, back to the explosion. From 1990 to 2000, the Latino population increased 58 percent in the United States and 69 percent in Illinois. By comparison the white

“While the explosion in the Latino community is clearly impacting vital elements of society in very significant ways, it hasn’t been enough to awaken the sleeping giant. The shortage of Latino senior executives and directors in American corporations reflects a lack of sensitivity to our presence and no vision for capitalizing on a fair share of the Latino consumer market.”

Dr. Juan Andrade

population increased 6 percent in the U.S. but declined 1.5 percent in Illinois. In Chicago the Latino population increased a very potent 38 percent, while the white and black populations declined 14 percent and 2 percent, respectively.

There are now 35,000,000 Latinos in the United States. The Latino community is bigger than every state in the union, bigger than the combined population of 22 states, three times bigger than Illinois, and 12 times bigger than Chicago. In fact, the Latino community is bigger than Canada!

Thanks to the explosion in the Latino population, America is finally beginning to look more like the rest of the Western Hemisphere, brown and Spanish-speaking.

Today there are an estimated five hundred page 57

Special Feature: Making a Difference in Today’s Hispanic Market million Spanish-speaking people in the Americas and experts predict than in just 50 years that number will double to nearly one billion. Now that, good people, will be an explosion—one that will transform society and last forever.

Latinos own doesn’t impress you, how about the amount of money they generate?

Based on the latest estimates, Latino businesses generate over 190 billion dollars in revenue every year.

“Today there are an estimated five hundred million Spanish-speaking people in the Americas and experts predict than in just 50 years that number will double to nearly one billion. Now that, good people, will be an explosion—one that will transform society and last forever.”

The Latino population explosion has also rocked some non-traditional states. In North Carolina, for example, the Latino population skyrocketed from 77,000 to 379,000 in just 10 years. (It took the Latino population of Chicago nearly 80 years to reach 400,000!) Now, if we could just get those rich corporations in North Carolina to finally agree that it would not be unAmerican to pay white, black and Latino farm workers and food processors a decent wage, we’d be alright.

But the impact of the explosion in the Latino community has reached far beyond population. According to the U.S. Department of Commerce, Latinos are creating new businesses at a rate three times faster than the general population, and most are being created by Hispanic women! Over 100,000 new businesses are being created every single year, and there are now over 1.5 million Latino-owned businesses. Cynics may ask, “Yes, but how many taquerias, tortillerias, restaurants and beauty shops do we need?” Well, while those businesses are vitally important to our community because they provide many families with a source of income and job opportunities for others, the truth is that Latinos own businesses of all kinds. But in America, as we have learned all too well, what matters is not how many but how much. So if the number of businesses page 58

The Latino community is now the youngest and largest ethnic or racial minority in America. Latino purchasing power now exceeds 590 billion dollars per year and is growing at an average rate of 50 billion dollars per year. That’s an average growth of one billion dollars per week; four billion per month. Again, if what matters is not how many but how much, by the end of this decade Latino purchasing power in the United States is expected to exceed 900 billion dollars per year, larger than the economies of most nations in the world.

Thanks to our population, work ethic, and entrepreneurial spirit, Latinos have now acquired the opportunity to build wealth and create economic power.

Not only do Latinos lead the nation in the rate of population growth and business development, we also lead the nation in the rate of progress in civic participation.

Again, if what matters is not how many but how much, it’s important to note that since 1976 Latino voter registration has increased 185 percent, compared to only 27 percent for the general population. Since 1976, the number of Latino registered voters has increased from 2 million to 7.5 million.

At the same time, Latino voter turnout has increased 165 percent compared to only 21 percent for the general population.

We have gone from one million votes cast to 6.3 million in the last presidential

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election. The future looks even brighter.

The goal of the Latino Vote campaign is to have 10 million Latinos registered to vote and 7.5 million votes cast in the 2004 presidential election.

While the explosion in the Latino community is clearly impacting vital elements of society in very significant ways, it hasn’t been enough to awaken the sleeping giant. The shortage of Latino senior executives and directors in American corporations reflects a lack of sensitivity to our presence and no vision for capitalizing on a fair share of the Latino consumer market.

Very few Latinos hold positions of importance in organized labor; this despite the fact that new Latino memberships, who year after year comprise the majority of new members, have become the lifesupport system for a previously non-Hispanic membership that is rapidly dwindling.

The English-language electronic and print media are largely devoid of Latino executives. This despite the fact that the percentage of Americans between 18-34 years of age, the age group all advertisers die for, is higher among Latinos than among whites or blacks. And a very large share of Spanish-language electronic and print media outlets are not owned

by Latinos.

Less than 48 percent of Latinos own their own homes, compared to 68 percent of the general population. We lag 23 percentage points behind whites in the rate of home ownership. Yet studies have found that home ownership makes families more stable, gives children a better sense of place and security, enables children to perform better in school, and that adults tend to 1-800-573-2867 www.diversityjournal.com

Special Feature register and turn out to vote in higher percentages. Families that own their own homes also help build stronger and more vibrant communities. Within the next ten years over five million Latino families are expected to enter the homebuyer market, many of them immigrants. And within the next 20 years the Latino demand for housing is expected to grow 146 percent.

Latinos need financial literacy because homeownership is one of the best investments a family can make.

Politically, Latinos will be symbolically acknowledged as America’s largest ethnic/racial minority from time to time.

Candidates will learn enough Spanish to use on the campaign trail, like Illinois Governor Rod Blagojevich did. President Bush will give an occasional Saturday radio address in Spanish. And New Mexico

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Governor Bill Richardson will be invited to interview for the Vice President slot in next year’s presidential election, as will California Lt. Governor Cruz Bustamante if he is elected governor.

Arguably, the impact of the Latino population explosion has been felt from coast to coast. U.S. companies are reassessing their marketing techniques and advertising strategies to attract their share of the booming Latino consumer market.

Major corporations are buying out Latino public relations and advertising agencies to help increase their market share. Being a working-class community with an incomparable work ethic, and given the insatiable appetite of employers for hiring Latino workers, Latinos have a higher percentage of their workforce employed than whites or blacks. In fact, Latinos

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Dr. Juan Andrade: Waking the Giant actually reached full employment status long before the rest of the country did during the Clinton years. And now that we know that 1,000 votes can swing a presidential election even after 100,000,000 other votes have been cast, all serious major candidates and political parties are inventing new strategies to attract their fair share of Latino voters.

Now, will someone please awaken that sleeping giant? He’s missing out on the PDJ Hispanization of America!

Dr. Juan Andrade is President and Executive Director of the United States Hispanic Leadership Institute (USHLI), a Chicago-based, non-profit organization dedicated to increasing voter registration and education and political participation in the Latino community.

He is also a weekly columnist for the Chicago Sun-Times. Contact the author at ushli@aol.com.

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working here takes you places Exceptional performance is driven by exceptional people — working at a place where they can leverage their experiences, strengths and perspectives. At JPMorgan Chase, we’ve created an environment where everyone can reach their fullest potential. Our people build strong networks, meet new challenges head-on, grow their careers and take themselves — and our firm — to new heights.

© 2001 J.P. Morgan Chase & Co. All rights reserved. J.P. Morgan Chase & Co. An Equal Opportunity and Affirmative Action Employer M/F/D/V. JPMorgan Chase is a marketing name for J.P. Morgan Chase & Co. and its subsidiaries worldwide.

Special Feature: Making a Difference in Today’s Hispanic Market

Verizon Communications

VOLUNTEER

FOR SOMETHING YOU LOVE

W

THAT’S THE MESSAGE OF VERIZON’S NEW AD CAMPAIGN THAT HIGHLIGHTS EMPLOYEE VOLUNTEER EFFORTS IN THE COMMUNITIES IT SERVES

hen Lazaro Lopez heard the news report of burglary and vandalism at a local non-profit that would leave the children of his neighboring Roxbury community without Christmas toys, he knew he had to act.

“I couldn’t believe what I had just seen on the news,” Lopez, Network Operations Manager at Verizon Communications, recalled. “The story said that thugs broke into the office of Sociedad Latina and took most of the toys the organization had collected. And the toys they didn’t take, they broke. “I couldn’t just sit and let these thugs break our Christmas spirits. I had to do something to help the kids.”

So Lopez spearheaded a toy drive for Sociedad Latina—a nonprofit organization that promotes cultural, educational and leadership programs for Latino youths in the Boston area—and collected several

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boxes of toys. The story had a happy ending: Area kids received their Christmas toys, and Lopez’s volunteer work with the organization began.

volunteer opportunities in their community. Known as Verizon Volunteers, the program was launched in 2001 and continues to grow steadily.

“I just couldn’t stop with the toy drive,” Lopez said. “I saw that this was a great organization doing great things for the Hispanic community, and I wanted to become involved with them as a regular volunteer.”

This year, Verizon launched a “Volunteer for Something You Love” ad campaign featuring Verizon employees like Lopez whose volunteer leadership has earned cash grants from Verizon Foundation to the nonprofit agency where they volunteer.

That was two years ago; today, Lopez donates about five hours a month to Sociedad Latina, serving as a mentor for at-risk teenage boys.

“The telecommunications industry has a long history of caring for the communities in which they operate,” said Susan Sullivan, director of employee volunteersim at Verizon Foundation. “We cultivate that heritage with foundation programs that encourage employees to be involved in charitable agencies in their communities.

We believe this ad campaign provides another dimension to these efforts.”

While Lopez’ story is unique, his commitment to volunteerism among Verizon’s 221,000 employees is not. Verizon encourages its employees to volunteer for something they love and provides a Web address and bulletin boards to find

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Verizon Communications Volunteer For Something You Love tutors students in math and science; speaks to students and community leaders on Verizon technology like DSL; gives young people an up-close view of the engineering career path; and raises funds for the organization. During a typical month, she volunteers 10 hours of her time to NSBE.

Ads highlight Verizon Volunteers in the Hispanic Community: (left) Lazaro Lopez, Network Operations Manager, helps bring technology to kids at Sociedad Latina in Boston, MA and (right) Naomi Saenz, Verizon Senior Staff Consultant - Public Affairs Programs, helps children get excited about reading at Mi Escuelita Preschool Inc., a nonprofit organization that serves low income children in Dallas, TX. Highlighting this program, a series of eight print ads have appeared in national business, ethnic and public policy publications. Each ad features an action photo of a Verizon employee at their respective charitable agency. Copy urges readers to join Verizon by volunteering for something they love and provides a foundation Web address to help find volunteer opportunities in their community. Employees who volunteer 50 hours or more at a nonprofit agency each year can receive a $500 grant for up to two separate agencies. The grants are given on behalf of the employee’s volunteer service.

they raise up to $25,000 per team. Last year, Verizon employees nationwide volunteered in 18,300 different ways through this program.

Verizon Foundation last year awarded 22,000 grants totaling more than $70 million to nonprofit agencies that focus on improving basic and computer literacy, enriching communities through technology, and creating a skilled workforce. The “Over the years, foundation uses its resources in the U.S. and we’ve learned that abroad to develop the most powerful partnerships in networks are made technology and connect of more than wires or them with organizations radio spectrum. serving the needs of They’re also made of people: diverse communities, their talents, their time, people with disabilities, their know-how and victims of domestic their generosity.” violence and the economically and Ivan G. Seidenberg Chief Executive Officer, socially disadvantaged.

Verizon Communications and Chairman of the Board, Verizon Foundation

Nicole Humphries, a In addition, teams of 10 or more employees Verizon Sales Engineer, is featured in one of who participate in a fundraising pledge-athe ads for her volunteer work with the thon for a qualified nonprofit can get National Society of Black Engineers (NSBE) matches from the foundation for funds Alumni Chapter in Tampa, FL. Nicole 1-800-573-2867 www.diversityjournal.com

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Naomi Saenz, Verizon Senior Staff Consultant, Public Affairs Programs, is featured as well. She offers her time to Mi Escuelita Preschool Inc., a nonprofit organization that serves low income children in the Dallas area by providing a safe, secure environment where nonEnglish speaking two-, three-, and fouryear-olds acquire the literacy and social skills necessary for them to have a successful school experience. “It’s such a pleasure to read to these kids, see them develop a love for books, adopt reading as a hobby, and then grow and succeed.”

All active Verizon employees are eligible for the Verizon Volunteers program, including Information Services, International, Telecom and Wireless employees. The program is nicknamed “V-squared” because it raises—to the second power—the reach of employee volunteer efforts and because the Foundation has increased, exponentially, the scope of the programs it will support with matching gifts.

“Verizon Volunteers puts the power to help nonprofit agencies in the communities we serve into the hands of our employees nationwide,” said Suzanne DuBose, President, Verizon Foundation. “Employees’ good works—both on the job and through their volunteer efforts—strengthen our bond with our communities and our customers.”

PDJ For information, contact Bob Bishop, Director of Communications for Verizon Foundation, at bbishop@verizon.com. page 63

Special Feature: Making a Difference in Today’s Hispanic Market

Hyatt Hotels and Resorts

When the student is ready, the teacher will appear.

Mentoring

It

by Victor Lopez Divisional Vice-President

seems that for just about anything you can think of, there is a “month” to commemorate it—they are designed to remind us to appreciate a particular product or event. Some are arguably not quite as serious as others, such as July’s “National Hot Dog Month;” however, one month we should pay closer attention to is January. This month signals new beginnings—a new year and new positive resolutions made—but January also is National Mentoring Month, as designated by the Harvard Mentoring Project of the Harvard School of Public Health and MENTOR/National Mentoring Partnership. This initiative is supported by the President of the United States, members of Congress, various state governors and city mayors, large media companies, celebrities, athletes and prominent nonprofit organizations. Hopefully you too are one of its supporters.

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This nationwide effort was created to recruit volunteer mentors for young people who are at risk of not achieving their full potential. This is a noble cause; an initiative that everyone can feel good about backing, one that is easy to take part in and yet has a tremendous impact. It doesn’t require any special equipment. All it requires is your commitment, your time and your knowledge. If you have never mentored, then I challenge you to start now. Don’t wait until January and don’t stop once that month is over. Yes, mentoring is a longterm commitment, but one that will leave you, the person you mentored and your organization in a better position than when you started.

I could write a great deal of corporate-talk on the subject; I could use buzz words and jargon, but I see this as boiling down to something quite simple: your desire to help coupled with someone else’s motivation to

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learn and advance. Look around you; take a really good look at every employee. Is there someone in your office or your company who you feel is a good worker but may appear to have stalled at a certain level?

And when you look, be sure to see each person at every job level, from the person who empties your trash can to the managers and directors you manage.

Take a moment to talk with them. Find out how they feel about the work they are doing. Do they have aspirations of moving up within the company but perhaps feel they don’t possess enough education or the “right” experience to do anything but what they are doing right now? Sometimes our greatest resources are right in front of us but we become so busy that we forget to look. This can be the best investment of time that we ever make.

Some of you may wonder, “What exactly is a mentor? I never had one; I don’t know how 1-800-573-2867 www.diversityjournal.com

Hyatt Hotels and Resorts Victor Lopez: Mentoring to mentor someone.” Actually, most people probably have had mentors but just didn’t call them by that particular name. It may have been a teacher who motivated you or an older brother or sister who “showed you the ropes” as you entered school. My definition of a mentor is someone who takes the initiative to guide, direct and counsel someone who is eager to advance. They become that person’s confidant. I have been luckier than most as I had a few mentors who took an interest in me during my career. One came into my life when I was working very early in my career; his name was John D. MacArthur.

Mr. MacArthur was the owner of the hotel where I was employed. At the time, he was one of only a handful of billionaires in the world but what was much more impressive was the fact that for some reason he took a liking to me, someone who was still a mere neophyte in the business world.

Mr. MacArthur spent time with me every single day. And though I was young, I was smart enough to act like a sponge and soak up every word that he spoke. He gave me his time and knowledge and I gratefully accepted his gift, which was infinitely more precious to me than money.

Another was Ed Rabin, the man who is now President of Hyatt Hotels, the company I have called home for the past 28 years. Ed was instrumental in my professional development. He was always there to act as a sounding board and to direct and guide me. He remains so today.

When I first began my career, it was quite 1-800-573-2867 www.diversityjournal.com

intimidating, as it is for most young people just starting out on their own. I was young, essentially inexperienced, and a Hispanic in a very Anglo environment. I was very fortunate to have found Hyatt Corporation,

more, to do more, then you are helping to plant the seeds of confidence and enthusiasm. Help your employees grow and you develop workers who feel good about themselves, their work and their companies. If your employees feel good about their place in the company, then your “We never truly know the customers and clients impact we have on people, feel better too, I promise!

but we must know that our words and actions do indeed carry tremendous weight to those we reach out to or who reach out to us.”

I was blessed to have been mentored and I feel fortunate to be able to pass that on in my life. As I progressed in my work, I wanted Victor Lopez to give back to others Divisional Vice-President the gifts I had received.

Daily, I work with people whom I have mentored and it is a company that has always fostered gratifying to see them continue to progress, mentoring, and then within this company, both personally and professionally. My the support of people like Ed Rabin. workload now often inhibits my ability to They provided me with the tools and work as closely with individuals as I would support I needed and helped open the like to do, but I maintain an open door doors that at first seemed too heavy for (and open e-mail and phone) policy for all me to open alone. employees and managers at all levels of the 24 hotels I oversee. These people know that What doors may be around your company they can contact me at any time and I will that others may see as locked? Ask yourself listen and offer advice when needed. if you possess the power to help someone open them. Are you willing to share your My work requires constant travel and strength of knowledge and encouragement? whenever I visit our hotels, many of our Mentoring is essential to business. Of employees, predominately those who are course, we can spend the time and energy Hispanic, stop me and tell me how proud searching outside of our organizations they are to be working for Hyatt. They see looking for just the right candidate with fellow Hispanics, such as myself, who have just the right educational background or climbed the ladder and they tell me they applicable experience, and that method can know for a fact that the same opportunities provide the organization with qualified exist for them. people. But when you provide guidance to an employee who has the interest to learn

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Victor Lopez: Mentoring Hyatt Hotels and Resorts Two of those employees who took advantage of those opportunities are men I am proud to say I had the privilege of mentoring. Carlos Cabrera is the Vice President and Managing Director of Hyatt Regency Coconut Point Resort and Spa in Bonita Springs, Florida. When I first met Carlos he was working as a rooms manager.

There is also Hendrick Santos, the General Manager of Hyatt Grand Champions Resort and Spa in Indian Wells, California, who first began his Hyatt career as a golf caddy and night auditor. These two gentlemen wanted more from their work and I am honored that I was there to provide some of that motivation and assistance. They had the desire and worked hard—now Carlos and Hendrick are both a part of the Hyatt team at the managerial level; I continue to speak with these men on a regular basis. I am very proud to say that both Carlos and Hendrick now share their knowledge with others within their own organizations.

We all must encourage a feeling of open communication within our work environments so that workers don’t feel shy about asking an executive for their advice or help. After all, who doesn’t feel flattered when someone wants his or her advice?

Yes, we are all busy, we are all juggling many tasks at the same time, but if you just stop for a moment to really talk with someone, you can make a world of difference to that one person (and those tasks will still be there when you are ready

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to pick them up again). We never truly know the impact we have on people, but we must know that our words and actions do indeed carry tremendous weight to those we reach out to or who reach out to us.

There is a Buddhist saying, “When the student is ready, the teacher will appear.”

I believe that to be true, and working with so many people over the years and sometimes being the teacher, I have found that I also have learned much from them, thereby reclaiming my role of student.

ABOUT THE AUTHOR Victor Lopez is Divisional Vice-President of Chicago-based Hyatt Hotels and Resorts. A native of Costa Rica, Lopez is a 30-year veteran of the hotel industry and is the highest-ranking Hispanic executive at Hyatt Hotels and Resorts, part of Hyatt Corporation. In July, Lopez was honored by the Hispanic Association on Corporate Responsibility (HACR) as one of the Most Influential Hispanics in Corporate America.

I take a great deal of pride in mentoring and in being able to provide some of the same opportunities to others that were afforded me, particularly to those Hispanics within the Hyatt organization. I also encourage mentoring among my employees, as does the Hyatt Corporation as a whole. Because of this, I personally feel a sense of accomplishment and fulfillment.

My work is very important to me, but so is remembering the human side of the business. Without our workers, there is no business.

The honor bestowed upon Lopez by the HACR is one of a growing number of recognitions for the diversity work being done by Hyatt Hotels and Resorts. In the February 2003 issue of Hispanic Magazine, Hyatt was rated as having one of the “Top 25 Recruitment Programs” and in 2002, for the fourth year in a row, Fortune Magazine named Hyatt as one of “America’s 50 Best Companies for Minorities.” For more information about diversity at Hyatt, visit their website at PDJ www.hyatt.com.

(Note: Though he passed away in 1978, the positive influence of my first mentor, John D. MacArthur, lives on in the John D. and Catherine T. MacArthur Foundation, a private, independent grantmaking institution dedicated to helping to foster improvements in the human condition. For more information, go to www.macfound.org.)

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Special Feature: Making a Difference Today’s Hispanic Market

Sterling Financial Investment Group

NEW C

harles Patrick García is truly a renaissance man.

Chairman and CEO of Sterling Financial Investment Group, a corporation he founded in 1997, he oversees what is arguably one of the fastest-growing companies in America today. His resume reads like the plot of a Walter Mitty story: he’s an Air Force Academy graduate, former defense intelligence analyst, attorney, and White House Fellow. He has served in the administration of three U.S. Presidents, a Cabinet Secretary, a Governor and a former NATO Supreme Allied Commander.

García has received the Key to the City of Panama, where President Mireya Moscoso honored him for his success.

He’s offered commentary on CROSSFIRE, FOX News, CNN, CBS, Univision and CNN en Español, and served as Telemundo’s military analyst during the War on Iraq. He serves on State and Federal commissions and boards, and he has just released his first book.

And he’s only 42 years old.

“I often hear from the young Hispanics I speak with, ‘Who do you think you are? You’re just a kid.’ And I remind them that Martin Luther King, who is one of my personal heroes, was only 34 when he won the Nobel Peace Prize. Then I ask: ‘So what are you waiting for?’”

He is consistently ranked among the most influential Hispanics in America today. Hispanic Business Magazine named him to its “Top 100” list, and Ernst and Young listed him among the finalists for their Entrepreneur of the Year competition. Likewise, Sterling Financial has garnered recognition as Inc. Magazine’s 8th fastest growing company and Hispanic Business Magazine’s “fastest growing Hispanicowned company” in the U.S.

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Sterling Financial Investment Group New Blood

BLOOD IF CHARLIE GARCIA HAS HIS WAY, HE’LL BE AT THE CREST OF A NEW WAVE OF HISPANIC ENTREPRENEURS AND SOCIAL LEADERS

García uses every ounce of his well-earned respect and the clout afforded him by his latest successful venture in the service of promoting Hispanic education. It is key, he says, to elevating the economic power of the Hispanic community, and is a major focus of his work in the government arena at both the State and Federal level. As a member of the Florida Board of Education, for example, García has led a strategic focus on reducing the state’s high student drop-out rates and promote the recruitment of more minority teachers. In February 2002, President Bush appointed him to the Commission on Educational Excellence for Hispanic Americans, charged with developing a blueprint to close the nationwide educational gap for Hispanic children.

“It’s a national tragedy and a disgrace that 40 percent of the Hispanic students enrolled in our high schools do not graduate,” says García. “We have a responsibility to every child. And I have a responsibility to keep issues important to Hispanics close at heart and make certain these issues are addressed.”

He brings this responsibility with him to his work as a member of the Federal Judicial Nominating Committee as well, where he battles to ensure candidates for positions in areas like the Southern District of Florida, an area where Hispanics are alarmingly underrepresented.

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“We need to be more vocal as a community. One of our biggest problems as a community is that there aren’t enough Hispanic leaders in positions of power.

In our government today, there are no Hispanic senators, only one governor, and a very small number of Congress members.

In corporate America, we fare no better— only 1.7 percent of the boards on the Fortune 1000 have Hispanic representation.

“So what do we do about it? We work with organizations such as the New America Alliance, the Hispanic Association of Corporate Responsibility, the National Supplier Minority Diversity Council, and the Florida Hispanic 100—organizations full of powerful people with a broad spectrum of backgrounds who will use

their power to effect change. These organizations are actively working to build a cadre of qualified people to sit on our boards, to act in our government, to take true leadership positions.”

Never Stand Outside the Fire One of the signs of a true leader, says García, is having the courage to stand up for what you believe in. Sometimes it is not easy, or popular, he says. “Fifty percent of the people will always disagree with you.”

Never was this more evident to García than this summer when the Michigan Law School’s admission policy was challenged and taken before the Supreme Court.

“Both the President and the Governor of Florida, leaders whom I deeply respect— and for whom I work—submitted briefs to the Court urging them to declare those admission practices unconstitutional.

Although both are committed to diversity in every sense of the word, they believe that racially neutral means exist that can bring diversity to campuses and, as governors, had adopted ‘pecentage plans’ in their states.”

In his new book A Message from García: Yes, You Can Succeed (2003, John Wiley & Sons, ISBN: 0-471-44893-1, $24.95), Charles García provides a powerful personal perspective on how to succeed at anything you have set your mind upon.

García speaks from experience; his success in government, business, the military and education gives him a wealth of stories to illustrate with and draw upon.

Its title refers to Elbert Hubbard’s widely-read A Message to García, the 1899 tale of a messenger named Rowan, personally dispatched by President William McKinley during the Spanish-American war to locate and deliver a vital message to General García, the leader of the Cuban insurgents. Its message of tenacity and perseverance is a central theme of García’s book, which centers on finding what you love to do, and doing it, regardless of how much money you make or whether or not people around you approve.

A Message from García seeks a strong connection with the Hispanic market, but its message of success and self improvement is one that resonates with individuals of all walks of life, regardless of ethnicity.

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New Blood Sterling Financial Investment Group Like many other leaders, García disagreed that such plans were the correct means to ensure diversity at all universities. “Almost immediately, Colin Powell released a statement that he did not agree with the President and that he strongly supported affirmative action. Other leaders made statements, as well, but no Hispanics at any level of government made comment on it publicly; I was troubled by that.

Because of my positions on the White House Initiative for Educational Excellence for Hispanic Americans and the Florida State Board of Education, I wondered, ‘what is my real responsibility? What is my real commitment?’

García opted for the larger commitment.

He helped to draft, and became a part of, what is now known as the Fortune 500 amicus brief in support of the University of Michigan. “Of the sixty-five companies that joined the brief, Sterling Financial Investment Group of Companies was one of only three firms that was not on the Fortune 500 list, and the only Hispanic firm. I’m proud of the actions we took to make our case for what we believe in.

You can’t just wake up one day and decide you’re a leader. You have to act like a leader every day.

“When you work for someone you respect, it is never easy putting your relationship on the line with that person. But true loyalty, like true friendship, is having the personal integrity to remain true to your principles and to your own conscience.

“I find that I need to tell this story because there are too many leaders that don’t want to rock the boat because people around them are saying ‘You’re doing so well, everything you’ve invested will be lost. We need you for keep your mouth shut.’ But that doesn’t work. You need to have the page 70

integrity, the discipline, the courage, to stand up for what you believe in. No one will take you seriously if the day you arrive in a position of leadership you begin to act the way you should have all along. If you are not willing to walk away from power, then you have no power.”

The Corporation: Working from a Solid Foundation In the past three years Sterling Financial has exploded into the financial services industry. García founded Sterling (which he named for his then-infant son) in 1997, working from a converted broom closet with a support staff of 2. Today, Sterling is a global financial services organization of over 400 investment professionals in more than 50 offices in 7 countries. This explosive growth has been recognized by both the business and the financial services industry: in 2002, Sterling was named by Inc. Magazine in their annual “Top 500” survey as the number 8 fastest growing privately held company in the nation.

This type of growth is unprecedented for a minority owned firm, and García readily concedes that the firm enjoys a distinct market advantage by virtue of the line of work it’s in. The financial services conglomerate provides proprietary research, institutional brokerage, wealth management and investment banking services complemented by a proven distribution platform in the traditional U.S. market, the Hispanic market and select Latin American markets.

It is rapidly gaining a reputation as a solid research house among blue chip firms. His approach to managing his business is a direct mirror of his diverse background.

“Hire smart people, let them do their job.

I have a sign over my office that says ‘Don’t bring me problems, bring me solutions.’

In my book, A Message From García, I expound on that idea, because it should

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read ‘bring me three solutions.’ If you can think of three solutions, you’ve been creatively thinking about the problem.”

García attributes the growth of his overseas operations to his ability to understand the diverse services that different cultures require. “When Merrill Lynch goes into a country, they say ‘Here we are; we are Merrill Lynch, and we do things the way we’ve always done them,’” García explains.

“However, we find local shareholders who build the office with us, and we find local people respected in the industry. They determine what products and services are best for that particular market. What works in Mexico doesn’t work in Chile.”

Reaching Out García is about to launch two powerful communication vehicles in a personal effort to expand awareness in the Hispanic community. Yo Si Puedo is a pilot television series in the making, in collaboration with Miami-Dade College and its President, Eduardo Padrón. The 13-show series will address specific challenges confronting the Hispanic community, including the conflict between traditional Hispanic family values and American cultural expectations; the enormous Hispanic dropout rate; and grassroots community efforts.

A Message from García: Yes You Can Succeed is García’s newly released book chronicling lessons of success and leadership. Not only is the book an invitation to young Hispanics to see beyond limiting expectations, but for people of every background seeking to achieve personal and professional success. “You have to know what success is before you know how to attain it. Success is about finding what you love to do and doing it, regardless of financial gain or what other people think.”

For information about Sterling Financial Investment Group, visit www.mysterling.com.

PDJ

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Special Feature: Making a Difference in Today’s Hispanic Market

Ford Motor Company

F

ord Motor Company employee Lisa Luevanos grew up in a predominantly Hispanic neighborhood on Detroit’s southwest side. When she felt the desire to reconnect with her roots, she turned to the Hispanic Network Group (HNG), an Employee Resource Group (ERG) sponsored by Ford.

Through the HNG, Luevanos has served as a mentor at her alma mater, Detroit Southwestern High School, and worked on a volunteer clean-up crew at the park where she used to play.

She’s also connected with other Hispanic employees throughout the company, giving her an opportunity to better understand aspects of the automotive business that she doesn’t usually encounter in her job as a company photographer.

“The HNG has given me a way to give something back to my old neighborhood and my school, and to meet a number of fellow employees in the process,” said Luevanos. “It’s amazing what we have

accomplished together. I can see how the area is improving and it really touches my heart to know that I am making a difference.”

I can testify to the good work of the HNG and the dedication of its many members like Lisa. Nearly 300 strong, they do help build communities—and support our company’s comprehensive corporate citizenship and outreach efforts. In the process, they also have created a strong network that not only benefits employees but also strengthens our business.

FORD MOTOR COMPANY’S HNG IS ONE OF 10 ERG NETWORK GROUPS STRENGTHENING BUSINESS AND COMMUNITY

STANDING

Rosalind Cox, Manager Diversity & Worklife Planning

STRONG

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Special Feature Ford Motor Company: Standing Strong Ford’s Hispanic Network Group is an extremely active network, both internally and externally. (From the top) Edward James Olmos, Actor/Producer/Director and Community Activist, poses with Jim Padilla, Executive Vice President and President North America, Captain Jim Carney of the New York Fire Department, and James Diez, Chairman of the Ford Hispanic Network Group before addressing the employees of the Ford World Headquarters during their 3rd Annual Hispanic Heritage event. (Center) HNG Members Artura Cardenas, V/P/U OPD Program Manager and Eva Carmona, Select Field Manager, were at the HNG table to greet visitors during the FORD 100 Year Celebration.

(Right) Mixgenia Maldonado, IT Business Systems Analyst, and Ricardo Garcia, Designer, are among those network members who volunteered their Saturdays to help Southwestern High School students prepare for the Cinco de Mayo parade in Southwest Detroit. (Previous page) The Ford Hispanic Network Group gathers for a photo with their Executive Champion, Jim Padilla, at the Ford Training and Development Center.

The HNG is one of 10 Employee Resource Groups at Ford, each of which represents employees of a common background or ethnicity. In addition to the HNG, we also support the Ford African Ancestry Network (FAAN); the Ford Asian Indian Association (FAIA); the Ford Chinese Association (FCA); the Ford Interfaith Network (FIN); the Ford Parenting Network (FPN); Ford Gay, Lesbian, Bisexual or Transgender Employees (GLOBE); the Middle Eastern Community (MEC); the Professional Women’s Network (PWN); and our newest, Ford Employees Dealing with disAbilities (FEDA).

The ERG network began more than a decade ago as a series of unrelated, grass roots efforts by various employee populations with common interests and/or backgrounds who wanted to share their experiences and guide and counsel each other. HNG, one of the first employee groups, was started in 1993 by Leo Padilla, a Human Resources professional who has since retired from the company.

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Ford soon began to appreciate the unique role these organizations could play in the company’s expanding diversity efforts. By the mid 1990s, the employee groups had been sanctioned by Ford and were invited to hold meetings and social or cultural events within Ford facilities. The company also agreed to provide financial support for guest speakers, conferences and other events.

All the ERGs have an official link to the company through our Diversity and Worklife Planning Office. Additionally, each is assigned an executive champion at the vice president level or higher, with whom they meet regularly.

The current executive champion for the HNG is Jim Padilla, Executive Vice President and President North America, and the nephew of founder Leo Padilla.

The HNG also has a high level advisory board, with whom they meet on a monthly basis.

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Though there is a social aspect to all our ERGs, they are much more than social groups. Each has a business objective tied to the core objectives of our company, and each exists not only to enhance members’ professional development but also improve Ford’s position in the marketplace.

When we need product advice, for example, our engineers and designers often turn to ERG members for feedback.

The company encourages members to take our vehicles across the country to test their size and feel.

We also ask members for input on marketing campaigns that target specific market segments. The HNG is one of the groups we contact when our marketing campaigns call for placement in ethnic or special interest media.

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Ford Motor Company: Standing Strong Special Feature Another benefit to the company is in the area of recruiting. The HNG is a good example of how this works. HNG members join us each year at five major recruiting events hosted by national Hispanic organizations. Members are present at the Ford booth to talk with prospective employees.

Henderson, NV with additional chapters • The annual Hispanic Heritage event, starting up in several other locations. These which is held in mid-September. The chapters have mirrored the efforts of our event features a nationally-known guest Dearborn HNG by focusing on community speaker and traditionally draws at least service, networking and recruiting.

400 people from business and the Hispanic community. Last year, the One of the largest chapters, Dallas-Fort guest speaker was Edward James Olmos, Worth, currently is planning a major actor, producer, and director. The HNG outreach effort that will involve dozens of also uses the event as a forum volunteers who will paint houses in an to highlight its programs and “The HNG has given economically disadvantaged neighborhood. present several awards: the me a way to give Because of the area’s large Spanish-speaking Leo Award, named after something back to my founder Leo Padilla, which goes population, members also have given old neighborhood and Spanish lessons to English-speaking to a national Hispanic leader; my school, and to employees at the Ford Credit Customer the Amigo Award, which is meet a number of Service Center in Irving, Texas. presented to a non-Hispanic fellow employees in who has contributed to the the process.”

I couldn’t be happier about the ongoing Hispanic community; and the Lisa Luevanos Chairman’s Award, which is success of the HNG. Each day, its dedicated Photographer presented to one or more members help us sell our products, our Ford Photographic brand and our company to a discerning people who have been involved The ERGs also are the face of Ford in the group of consumers, investors and with the HNG. This year, the HNG also community. In this regard, the HNG is presented two $1,000 college scholarships potential employees. Many have told me especially active. Members annually to students who have been “Though there is a social organize a number of projects and events affiliated with the HNG as aspect to all our ERGs, each that include: part of the High School has a business objective tied • The High School Partnership Program, Partnership Program. to the core objectives of our which brings HNG members into four • The Amigo Program, which, as company, and each exists Detroit High Schools for mentoring and its name suggests, is about not only to enhance fellowship. This comprehensive effort helping to build relationships members’ professional includes tutoring in academic subjects, within the company. HNG pairs development but also development of business skills and each new Hispanic hire with an improve Ford’s position in the marketplace.” lessons in English as a second language.

HNG member who provides This past year, HNG members helped high schools students prepare for a Cinco de Mayo parade. The HNG devotes hundreds of volunteer hours to the Partnership Program each year.

• Clark Park Clean-up. Each year, HNG members spend a day in Clark Park, which is located within Detroit’s Mexican Town neighborhood. The volunteers clean up litter, repair and paint benches and playground equipment, shovel sand and lay sod. This year, the HNG was joined by volunteers from the United Auto Workers labor union. page 74

orientation and advice Rosalind Cox throughout the transition to the Manager, Diversity & Worklife Planning new job within Ford.

• Charity Outreach. HNG that being a member is one of the most members annually devote time and enriching experiences of their lives. resources to a number of charities, including a holiday food drive and fund-raising efforts that support AIDS and juvenile diabetes research and treatment.

This vital employee group is not only getting better—it’s getting bigger. The HNG now has four regional chapters: Dallas-Fort Worth, Tampa, Cleveland and

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That’s a win-win situation that benefits us all.

PDJ For information about this and other diversity initiatives, contact Rosalind Cox, Manager, Diversity and Worklife Planning, by phone at 313.248.7505 or by e-mail at rcox4@ford.com.

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Special Feature: Making a Difference in Today’s Hispanic Market

AFLAC

AFLAC considers the input of their diverse employee base imperative to the successful growth of all their markets. Front row from left are Sandra Hernandez, Maria Estevez, Vilma Salaverria, Liz Ellis and Ana Brubaker. On the top row from left are Lisa Ann Martin and Ivis Nydia Perez-Orta.

now average about 11,500 calls a month from our Hispanic policyholders; that is a big increase from 1998 when we averaged about 3,200,” said Ana Lazaro-Duarte, a manager in the Customer Call Center.

“AFLAC saw the need of our Hispanic customers and responded.”

AFLAC knows that our continued growth is linked to our ability to meet the needs of all customers and that the best way to truly understand a culture is to create a place where there is a greater appreciation of the diverse communities that we serve.

RESPONDING TO

CUSTOMER

One of the key ways that AFLAC reaches out to the Hispanic market is through the Multicultural Market Development Department. “Our current and future goals are to recruit and retain Hispanics and ethnic minorities and to build relationships targeting women and minority vendors in procurement practices,” said Alan Lopez, a supervisor in AFLAC’s Recruiting and Multicultural Marketing Department.

NEEDS T

AFLAC has established several initiatives to meet its goals. They include: • The AFLAC Minority Mentorship Program. A new minority associate who AT AFLAC, CONTINUALLY CHANGING TO MEET THE NEEDS has won a first-year sales award is paired OF BOTH INTERNAL AND EXTERNAL CUSTOMERS with a coordinator/manager who has REQUIRES A CONSISTENT FOCUS—RESPECT. been at AFLAC for a longer period of time. This not only helps to promote needs of our customers rather than merely he purpose of business is to get and professional development, but builds selling them existing products. keep customers—all products and loyalty and camaraderie. customer service activities are geared • The Hispanic Achievement Award for In 1991 AFLAC had one customer service around these activities. AFLAC is driven Business Entrepreneurship. AFLAC representative to handle calls from Spanishby a respect for customers and a desire to has sponsored this award for the past speaking policyholders. Today there is a produce products and services that are 12 years. clearly wanted. This drive has forced us to 19-member team within the Customer Call • Targeted Networking. AFLAC networks Center dedicated to meeting the needs of look at the diverse markets that we serve with Hispanic organizations such as the our Hispanic customers and agents. “We and to adjust our business to meet the

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AFLAC Responding to Customer Needs “Tapping into the variety of backgrounds, experiences, viewpoints and skills of our employees and associates has been and will continue to be integral to AFLAC’s success. If I don’t try to ensure that every employee is engaged and has a stake in the company’s business and success, I’m not doing my job and the company is going to suffer.

It’s simple in principle: give your employees everything they need to succeed and they will give everything they can to help the business succeed.”

Dan Amos AFLAC Chairman and Chief Executive Officer U.S. Hispanic Chamber of Commerce, the Texas Association of Mexican American Chambers of Commerce, and the Latin American Association of Insurance Agents.

• Targeted Consumer Advertising.

Advertisements in several major Latino magazines and on the top four Spanish networks.

• The Diversity in Action Quarterly. This online newsletter profiles successful Hispanic and African-American sales associates along with diversity-related business information.

• Targeted Recruitment. AFLAC-created Spanish recruiting radio ads and a recruiting video in Spanish titled “Por Que Tiene Sentido AFLAC.” AFLAC’s Diversity Committee is dedicated to making sure that ethnic minorities share in strengthening and guiding the direction our business is growing. The Diversity Committee also seeks to: • Serve as a source of information to strengthen AFLAC’s ability to attract, 1-800-573-2867 www.diversityjournal.com

retain, and develop a diverse workforce.

• Support and enhance AFLAC’s community involvement.

• Serve as a source of information that can enhance expanding consumer markets.

• Serve as a liaison to senior management.

AFLAC continues to find ways to purchase competitively priced, quality goods and services from women and minority vendors and contractors. In June of 2002, AFLAC was recognized by Hispanic Magazine as having one of “The Top 25 Vendor Programs for Latinos.”

Expanding our minority vendor database and relationships provides AFLAC with a greater understanding of the needs of minorities, which positively impacts our employees and the communities we serve.

AFLAC’s diversity efforts have been noticed by some of the country’s leading publications. Among them are:

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September/October 2003

• Working Mother Magazine, which listed AFLAC in its “100 Best Companies for Working Mothers” in October 2002.

• Latina Style Magazine listed AFLAC as one of the 50 Best Companies for Latinas to Work For in the United States for the fifth consecutive year in August 2002.

• Hispanic Magazine listed AFLAC as one of the “100 Companies Providing the Most Opportunities to Hispanics” in February 2003. AFLAC has been included on this annual list since 1993.

• Fortune Magazine included AFLAC on its list of “The 50 Best Companies for Minorities” for the second consecutive year in July 2003.

AFLAC upholds a strong commitment to building a rewarding workplace where every employee and sales representative can grow personally and professionally. It has created an environment where all opinions are welcomed and considered. This continued commitment has turned out to be good not only for our employees and sales representatives, but for our customers as well.

“Our current and future goals are to recruit and retain Hispanics and ethnic minorities and to build relationships targeting women and minority vendors in procurement practices.”

Alan Lopez Supervisor Recruiting and Multicultural Marketing Department

For more information about AFLAC’s Multicultural Market Development or internal diversity programs, contact Kathy Proctor, Corporation Communications, at PDJ KProctor@aflac.com.

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Special Feature: Making A Difference in Today’s Hispanic Market

“W

Continental Airlines

Continental Airlines

Donde Vale el Lema de

““Trabajar Trabajar en Equipo”

orking Together” has been a cornerstone of the Continental Airlines corporate philosophy since 1995, when Chairman and CEO Gordon Bethune and his management team took over an almost bankrupt airline. They were successful in turning the airline around in part because they recognized that one of Continental’s greatest assets was its people.

“Continental is committed to treating its employees, as well as its passengers, with dignity and respect,” says Bethune.

The result? Continental has earned a place on Fortune Magazine’s “100 Best Companies to Work For” for five consecutive years, and has been named to Hispanic Magazine’s list of “100 Companies Offering the Most Opportunities for Hispanics” for six consecutive years.

El

lema de “Trabajar en Equipo” ha sido la pieza clave de la filosofía corporativa de Continental Airlines desde 1995, cuando Gordon Bethune, Presidente de la Junta Directiva y CEO y su equipo administrativo tomaron control de una aerolínea casi en bancarrota. Dieron un giro hacia el éxito cuando reconocieron que una de las ventajas de Continental era su personal.

“Continental está comprometida a tratar a sus empleados, así como a sus pasajeros, con dignidad y respeto”, dice Bethune.

Where Working Together Works page 78

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¿El resultado? Continental se ha ganado un lugar en la revista Fortune en la lista de las “100 Mejores Compañías para Trabajar” por cinco años consecutivos, y ha sido nombrada por seis años consecutivos en la lista de las “100 Compañías que Ofrecen las Mejores Oportunidades para los Hispanos” de la revista Hispanic.

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Continental Airlines Donde Vale el Lema de “Trabajar en Equipo”—Where Working Together Works “The rich diversity of ideas, experiences, cultures and lifestyles represented by Continental employees makes it possible for us to give the best possible service to our global customers,” says Pat Bissonnet, Director, Diversity and Fair Employment Practices.

Bissonnet is proud of Continental’s efforts to empower women and minorities. The company’s U.S. workforce is 46 percent female and 39 percent minority. Some 17 percent of all Continental Airlines employees are Hispanic and 10 percent of its management is Hispanic.

leaders from senior management who act as the company’s champions for diversity.

“The Diversity Council is part of Continental’s ongoing efforts to ensure that each employee is valued for his or her contribution to the company’s success and to promote diversity as part of our Working Together cornerstone,” Bissonnet explains.

Continental’s management, including directors, receives training on the reasons why an inclusive work environment is important to the bottom line at an airline.

Successful diversity initiatives must be “top down,” Bissonnet believes. In September 2000, Continental CEO Bethune appointed a Diversity Council composed of seven

“A diverse workforce enables an inclusion of ideas, work ethics, enthusiasm and a dynamic, innovative environment,” says Dan Morales, Managing Director, Financial Systems, and member of the Diversity Council. Morales also is active in the

“La amplia diversidad de ideas, experiencias, culturas y estilos de vida representados por los empleados de Continental nos hace posible brindar el mejor servicio a nuestros clientes globales”, dice Pat Bissonnet, Directora de Diversidad y Prácticas de Empleo Equitativo.

abajo”, opina Bissonnet. En septiembre de 2002, el presidente de la junta directiva de Continental, Bethune, nombró un Consejo de Diversidad compuesto de siete líderes ejecutivos de la administración que fungen como la cabeza de diversidad de la compañía.

Bissonnet se enorgullece de los esfuerzos de Continental para darles una voz en la compañía a las mujeres y los grupos minoritarios. La fuerza laboral estadounidense de la compañía está formada por 46 por ciento mujeres y 39 por ciento de personas de grupos minoritarios. Un 17 por ciento de todos los empleados de Continental Airlines son hispanos y el 10 por ciento de la administración es de ascendencia hispana.

“El Consejo de Diversidad es parte de los constantes esfuerzos para asegurar que cada empleado sea valorado por su contribución al éxito de la compañía y para promover la diversidad como parte de nuestra pieza clave de Trabajar en Equipo”, explicó Bissonnet.

Diversity Council Sets Standards

El Consejo de Diversidad Establece Normas Para tener éxito, las iniciativas de la diversidad deberían venir “de arriba para 1-800-573-2867 www.diversityjournal.com

Continental Management Association (CMA), which provides employees with cross-cultural networking opportunities through “Meet the Management” brownbag lunches for young Continental employees and experienced mentors.

La administración de Continental, incluyendo directores, recibe entrenamiento sobre las razones por las cuales en una aerolínea es importante un ambiente de trabajo inclusivo en todo nivel.

“Un personal diverso posibilita la inclusión de ideas, éticas de trabajo, entusiasmo, y un

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Gordon Bethune Chairman and CEO ambiente dinámico innovador”, dice Dan Morales, Director Administrativo de Sistemas Financieros y miembro del Consejo de Diversidad. Morales también es participante de la Asociación Administrativa de Continental (CMA por sus siglas en inglés), la cual proporciona a sus empleados oportunidades de establecer contactos en diversas culturas a través de almuerzos “Meet the Management” (Conozca a la Administración) para empleados jóvenes de Continental y los que tienen más experiencia.

Para destacar la diversidad cultural, el Consejo de Diversidad y la CMA celebran los meses de la herencia hispana, afro americana, asiática, y de la historia de la mujer. En septiembre del 2002, la CMA page 79

Special Feature: Making a Difference in Today’s Hispanic Market To highlight cultural diversity, the Diversity Council and the CMA celebrate Hispanic, African-American, Asian and Women’s History months. In September, 2002 the CMA sponsored Hispanic Heritage Month activities for employees at its Houston headquarters and at its New York-area hub, Newark Liberty International Airport. Not only employees benefited from the airport event, says Leonor Villanueva, Regional Director, Latin America Sales; customers on their way to Latin America thanked Continental for its celebration of their culture.

Director, Technology; Senior Attorney; Financial Analyst; Regional Sales Manager; Director, Sales Information Systems; Director, Latin Cargo Sales; Manager, Airport Training; Manager, Public Relations, Latin America and the Caribbean; Manager, International Advertising; Manager, Hub Resource Planning; Manager, Latin America Sales; and Administrator, Customer Service, Dining Services. Hispanics also serve the airline as

Respect for cultural diversity creates a climate in which Hispanics and other groups feel welcome and thrive, says Bissonnet. Hispanics occupy many toplevel positions at Continental Airlines, including Staff Vice President, Sales and Marketing, Latin America; Managing patrocinó las actividades del Mes de la Herencia Hispana para empleados en la sede de Houston y en su centro de conexiones en Nueva York, el aeropuerto Newark Liberty International. No sólo los empleados beneficiaron del evento del aeropuerto, dijo Leonor Villanueva, Directora Regional de Ventas a Latinoamérica, sino también los pasajeros que iban rumbo a Latinoamérica agradecieron la celebración de su cultura.

El respeto a la diversidad cultural crea un ambiente en el cual los hispanos y otros grupos se sienten aceptados y prosperan, dice Bissonnet. Los hispanos ocupan puestos de alto nivel en Continental Airlines, incluyendo Vicepresidente de Personal, Ventas y Mercadeo en Latinoamérica; Director Administrativo de Tecnología; Abogado Ejecutivo; Analista Financiero; Administrador Regional de Ventas; Director de Sistemas de page 80

Gladys Bayo-Rivara Regional Planning Manager, Latin America Información de Ventas; Director de Ventas de Carga a Latinoamérica; Gerente de Entrenamiento en el Aeropuerto; Gerente de Relaciones Públicas de Latinoamérica y el Caribe; Gerente de Publicidad Internacional; Gerente de Planeación de Recursos del Centro de Conexiones (“Hub”); Gerente de Ventas a Latinoamérica; Administrador de Atención al Cliente del Departamento de Servicios Alimenticios. Los hispanos también fungen como pilotos y sobrecargos de la aerolínea, así como agentes de documentación, puertas de embarque y reservaciones.

pilots and flight attendants, as well as gate, ticket counter and reservations agents.

Although the company’s hiring efforts have slowed because of the current economic climate, Director of Global Staffing Mary Matatall reports that the airline constantly searches for talented Hispanic candidates to join the Continental team.

When economic conditions permit, Continental recruits Hispanic employees through Web sites such as terra.com, hispanicjobs.org and yupimsn.com and has sponsored the National Society of Hispanic MBAs Conference and the Hispanic Professionals Leadership Day at Rice University’s Graduate School of Management. In 2002, Continental hired some 575 Hispanic employees. Hispanic Magazine named Continental to its “Driving Diversity: Top 25 Recruitment Programs” in May 2002.

de Personal Global, reporta que la aerolínea constantemente busca candidatos hispanos con talento para unirse al equipo de Continental. Cuando lo permite la situación económica, Continental recluta empleados hispanos a través de sitios de Internet como terra.com, hispanicjobs.org y yupimsn.com y ha patrocinado la conferencia de la “National Society of Hispanic MBAs” y el Día de Liderazgo de Hispanos Profesionales en la Escuela de Estudios Postgraduados en Administración de la Universidad de Rice. En 2002, Continental contrató a 575 empleados hispanos. En mayo de 2002, la revista Hispanic nombró a Continental en su lista de “Fomentando la Diversidad: Los 25 Mejores Programas de Reclutamiento”.

La “Latinización” Emprende su Viaje Aunque la compañía ha disminuido su contratación debido a la situación económica actual, Mary Matatall, Directora

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Latinoamérica fue parte de la razón por la cual Continental arribó a su “destino de diversidad”, de acuerdo a los ejecutivos de la 1-800-573-2867 www.diversityjournal.com

Continental Airlines Donde Vale el Lema de “Trabajar en Equipo”—Where Working Together Works “Latinization” Takes Flight channel and Spanish-language safety videos travel experience safe and comfortable for Latin America was part of the reason for Continental’s arrival at its diversity destination, according to airline executives.

Realizing that Latin America represented a growth market, the airline asked its Latin customers what they wanted in an airline.

all passengers.

On-board Latinization elements include: Spanish-speaking flight attendants on most Latin American flights; Chilean wines with first-class meals on flights to Latin America; magazines such as Newsweek En Español, “We paid attention to our Spanish-speaking Latina and Hispanic Business; Spanishcustomers’ answers and set out to make language TV programs (including a “CNN Continental the ‘Hispanic-friendly’ airline,” en Español” segment); a Latin music audio says Christy Rodgers, Senior Director, Latin America and Leisure Sales.

In 1997, the airline began its “Latinization” initiative, becoming a pioneer in enhanced customer service for Latin American and U.S. Spanish-speaking passengers. Today the system-wide Latinization initiative includes on-board and in-airport components, as well as other customerservice enhancements designed to make the aerolínea. Al darse cuenta que Latinoamérica representaba un mercado en crecimiento, la aerolínea preguntó a sus clientes latinos lo que deseaban de una aerolínea.

Frank Figueroa Latin America Sales Manager, Western Region

Los elementos de latinización a bordo “Escuchamos las respuestas de nuestros incluyen: sobrecargos de habla hispana en clientes de habla hispana y nos propusimos a la mayoría de los vuelos a Latinoamérica; hacer de Continental la aerolínea conocida vinos chilenos servidos con las comidas en por su buen trato de ellos”, dijo Christy la cabina de primera clase en vuelos a Rodgers, Directora Ejecutiva de Ventas a Latinoamérica; revistas tales como Latinoamérica y de Paquetes Vacacionales.

Newsweek en Español, Latina y Hispanic Business; programas de televisión en En 1997, la aerolínea inició su iniciativa de español (incluyendo un segmento de “CNN “latinización”, volviéndose así un pionero en Español”); un canal de audio de música en atención especializada para el pasajero latina y videos de seguridad en español en latinoamericano y de habla hispana de los vuelos entre Houston y LaGuardia, Los EE.UU. Hoy en día, la latinización del Ángeles, San Francisco, Chicago, sistema entero incluye componentes a Washington, D.C. Reagan National, bordo y en el aeropuerto, así como otras Dallas/Ft. Worth y Newark. atenciones especiales al cliente diseñadas para que los viajes de cada pasajero sean En aeropuertos claves, Continental cuenta seguros y cómodos. con representantes bilingües de servicio al 1-800-573-2867 www.diversityjournal.com

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on flights between Houston and LaGuardia, Los Angeles, San Francisco, Chicago, Washington, DC’s Reagan National, Dallas/Ft. Worth and Newark.

In major airports, Continental has bilingual customer service representatives, Spanishlanguage directional signage and flight information, and a Spanish-language screen on eTicket machines. In the U.S., passengers may make reservations in Spanish and call Continental’s automated Spanish-language flight information line to obtain up-to-date flight arrival, departure and gate information. Recently the airline launched key Spanish-language functions on continental.com, including Flight and Gate Information, Flight Paging, Timetable, and OnePass frequent flyer program enrollment, statements and mileage credit requests. Other functions will be added in

cliente, señalización e información de vuelos en español, y pantallas en español en las máquinas de boletería electrónica, eTicket. En los Estados Unidos, los pasajeros pueden hacer sus reservaciones en español y llamar a la línea automática en español con información sobre llegada de vuelos, para salidas y puertas de embarque.

Recientemente, la aerolínea lanzó funciones claves en español en continental.com, incluyendo Información de Vuelos y Puertas de Embarque, Avisos de Vuelos, Horarios e inscripción, estado de cuenta y solicitud de acreditación de millaje en el programa de viajero frecuente OnePass. Se añadirán otras funciones en el futuro para que los clientes de habla hispana tengan mayor acceso al sitio de Internet, indica María Cristina Osorio, Gerente de Relaciones Públicas para Latinoamérica.

Continental contrató a Montemayor y Asociados (ahora GlobalHue) en 1996 para page 81

Special Feature: Making a Difference in Today’s Hispanic Market the near future to offer increased Web site access to Spanish-speaking customers, says María Cristina Osorio, Manager, Public Relations for Latin America.

Today Continental is the second-largest airline to Latin America in destinations served and passengers carried. From 1997 to the present, Continental has registered a 56 percent increase in the number of Continental hired Montemayor y Asociados destinations it serves in Latin America (now GlobalHue) in 1996 to handle U.S. and the Caribbean (from 32 to 50) and a Hispanic public relations—the first-ever 61 percent increase in total number of such effort for the airline. In 1998, the weekly departures to Latin America and airline’s U.S. Hispanic advertising agency, the Caribbean.

Bromley Communications, began an ad campaign to build awareness among “We achieved this ranking by listening to Spanish-speaking business travelers that Continental recognizes and shares their tastes and customs. The ads run in Spanish-language and English-language newspapers in key U.S. Hispanic markets.

Both agencies make sure Continental’s Latinization initiative is featured in their communications.

manejar las relaciones públicas hispanas en EE.UU.—el primer esfuerzo de la aerolínea de esta índole. En 1998, la agencia hispana de publicidad, Bromley Communications, Pete García inició una campaña de publicidad para Staff Vice President, Sales and Marketing, crear conocimiento entre viajeros de Latin America and the Caribbean negocios de habla hispana que Continental reconoce y comparte sus gustos y total de salidas semanales a Latinoamérica y costumbres. Los anuncios se promocionan el Caribe. en periódicos en español e inglés en mercados hispanos claves de EE.UU. “Hemos logrado esta clasificación al Ambas agencias se aseguran que la escuchar a nuestros clientes e identificarnos iniciativa de latinización de Continental se con su cultura e idioma—en breve, caracterice es sus comunicados. tratando a nuestros clientes de habla hispana con dignidad y respeto”, dice Hoy en día, Continental es la segunda Rodgers, del departamento de Ventas a aerolínea más grande en cuanto a destinos Latinoamérica y de Paquetes Vacacionales. atendidos y pasajeros transportados a Latinoamérica. Desde 1997 al presente, Servicio Comunitario Continental ha registrado un aumento del Es Parte de la Diversidad 56 por ciento en la cantidad de destinos a El servicio a la comunidad también es parte Latinoamérica y el Caribe (de 32 a 50) y un de la estructura de diversidad de la aumento del 61 por ciento en la cantidad aerolínea. En 2002, la división de Ventas a page 82

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our customers and identifying with their culture and language—in short, by treating our Spanish-speaking customers with dignity and respect,” says Rodgers of Latin America and Leisure Sales.

Community Outreach Part of Diversity Fabric Community outreach also is part of the airline’s diversity fabric. The Latin America Sales division sponsored some 45 different Latino and Latin American organizations in 2002, ranging from the People en Español “25 Most Beautiful” Celebrity Gala to benefit the Hispanic Scholarship Fund, to fund-raisers for local chapters of the National Association of Hispanic Journalists and the Hispanic Chamber of Commerce, to cultural events such as the Noche de Colombia Gala in Houston, the New Jersey State Annual Puerto Rican

Latinoamérica patrocinó a 45 distintas organizaciones latinas y latinoamericanas, desde la fiesta de Gala de Celebridades de “los 25 más bellos” de la revista People en Español a beneficio de la Fundación de Becas Hispanas, hasta recaudar fondos para capítulos locales de la Asociación Nacional de Periodistas Hispanos y la Cámara de Comercio Hispana, y eventos culturales tales como la Gala de Noche de Colombia en Houston, Desfile Anual Puertorriqueño del estado de Nueva Jersey, Festival Anual Peruano en Colorado, y la Conferencia y Festival Internacional de Música Latina en Washington, D.C. Esto marca el sexto año que Continental patrocina los “Hispanic Achievement Awards” (Premios de Logros Hispanos) de la revista Hispanic, que honran a hispano-americanos que han contribuido positivamente a la comunidad. Cada año, Continental presenta el “Premio de la 1-800-573-2867 www.diversityjournal.com

Continental Airlines Donde Vale el Lema de “Trabajar en Equipo”—Where Working Together Works “Volando al Futuro/ Flying Toward the Future”

Parade, the Annual Peruvian Festival in Colorado, and the International Latino Music Conference & Festival in Washington, D.C. This marks Continental’s sixth year to sponsor Hispanic Magazine’s Hispanic Achievement Awards, which honor Hispanic Americans who have made contributions that have had a positive impact on the community. Each year Continental presents the “U.S.-Latin America Friendship Award” as part of the ceremony; this year María Mendoza Taxman, entrepreneur and Honorary Consul of Honduras in St. Louis, received the award.

As the nation’s Hispanic population grows, so will business opportunities for collegeeducated Hispanics who understand their customers’ culture, say Continental executives. To help increase Hispanic college-going rates, Continental created the “Volando al Futuro/Flying Toward the Future” partnership with Upward Bound educational programs in six cities in September 2002. “Volando” provides

airline tickets for college campus visits to Hispanic high school students and their parents.

“Going away from home for college is hard enough for most Hispanic students, but having to do so without the opportunity to visit the campus first is even more difficult,” said Sandra Rodriguez, a participant in the Houston Community College Upward Bound educational program. “Thanks to Continental’s ticket donation, I will be able to make an informed decision and my parents will feel more at ease about where I will be living and studying for the next four years.”

“The U.S.-Latin America Friendship Award recipients build connections throughout the Americas, just as Continental does,” says Rodgers.

Diversity Means Business

Amistad EE.UU.- América Latina” como parte de la ceremonia; este año, María Mendoza Taxman, empresaria y Cónsul Honoraria de Honduras en St. Louis, recibió el premio.

asistiendo a la universidad por los próximos cuatro años”.

“Diversity is an integral part of Continental’s business operations,” says Phyllis Graham, Supplier Diversity

La Diversidad Significa Comercio Jessica Rossman Martin Senior Attorney

“Los que reciben El Premio de la Amistad EE.UU.-América Latina forman conexiones a través de las Américas, tal como lo hace Continental”, dice Rodgers.

educativos Upward Bound en seis ciudades.

“Volando” proporciona pasajes aéreos para estudiantes hispanos de preparatoria y sus padres para visitar universidades.

Volando al Futuro/ Flying Toward the Future

“Irse de casa para asistir a la universidad es lo suficientemente difícil para la mayoría de estudiantes hispanos, y es aún más difícil sin haber tenido la oportunidad de visitar la universidad anteriormente”, dice Sandra Rodríguez, participante del programa educativo Upward Bound en Houston Community College. “Gracias a la donación de boletos de Continental, tendré la información necesaria para tomar una decisión y mis padres se sentirán más tranquilos al saber dónde estaré viviendo y

Al paso que va creciendo la población hispana, así crecerán las oportunidades para hispanos con estudios universitarios que comprenden la cultura de sus clientes, dicen los ejecutivos de Continental. Para ayudar a incrementar el índice de hispanos que asisten a la universidad, en septiembre de 2002, Continental formó el proyecto “Volando al Futuro/Flying Toward the Future” en asociación con los programas page 84

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“La diversidad es una parte integral de las operaciones comerciales de Continental”, dice Phyllis Graham, Coordinadora del Programa de Diversidad de Proveedores.

Aunque Continental no rastrea los gastos específicos de un sólo grupo étnico, la aerolínea excedió sus metas con negocios con dueños de grupos minoritarios y/o mujeres desde el 1 de octubre de 2001 al 30 de septiembre de 2002, ambos en capital y porcentaje de gastos. Continental constantemente busca vendedores y proveedores hispanos, dice Graham.

Como miembro del “Houston Minority Business Council” (Consejo de Negocios de Grupos Minoritarios en Houston), la aerolínea fue uno de los patrocinadores de la Exposición del Consejo en Houston el 1-800-573-2867 www.diversityjournal.com

Special Feature: Making a Difference in Today’s Hispanic Market Program Coordinator. Although Continental does not track specific spending for any one ethnic group, the airline exceeded its goals with minorityand women-owned businesses from Oct. 1, 2001 to Sept. 30, 2002, both in dollars and percentage of spending.

Continental actively seeks Hispanic vendors and suppliers, says Graham.

A member of the Houston Minority Business Council, the airline was one of the sponsors of the Council’s Expo in Houston last September, and regularly attends the National Minority Supplier Development Council Expo. Continental also sponsors the Texas Coalition of Asian, Black & Hispanic Elected Officials Business Opportunity Symposium Theories Conference.

The airline’s supplier diversity efforts have not gone unnoticed. Hispanic Magazine pasado septiembre, y frecuentemente asiste a la Exposición del “National Minority Supplier Development Council” (Consejo Nacional del Desarrollo de Proveedores de Grupos Minoritarios). Continental también patrocina la Conferencia sobre Oportunidades de Negocios de la Coalición de Texas de los Oficiales Electos Asiáticos, Afro americanos e Hispanos.

included Continental in its “Partnering with Hispanic Entrepreneurs: Top 25 Vendor Programs for Latinos” listing in June 2003. In July 2003, Continental received the Houston Minority Business Council Minority Business Enterprise Procurement Award in recognition for its commitment to minority business development, as shown by consistent increases in dollars spent with minority businesses over the past three years.

“Working Together” within the Company and in the Community Without question, diversity is a driving force at Continental Airlines.

“Our customers, the cities we call home, and our workforce are all diverse,” says Diversity Director Bissonnet. “We must be a good corporate citizen in the cities we serve, and we must use the synergies of a Minoritarios en Houston) como reconocimiento por su compromiso al desarrollo de negocios de grupos minoritarios, demostrado con los aumentos en capital aportado a los negocios minoritarios en los pasados tres años.

“Trabajando en Equipo” Dentro de la Compañía y en la Comunidad

Sin duda alguna, la diversidad es una fuerza Los esfuerzos de la aerolínea de aumentar la impulsiva en Continental Airlines. diversidad de sus proveedores no se han pasado por desapercibidos. En junio de “Nuestros clientes, las ciudades donde 2003, la revista Hispanic incluyó a tenemos nuestras sedes, y nuestro personal Continental en su lista de “Alianzas con son diversos”, dice Bissonnet, Directora de Empresarios Hispanos: Los Mejores 25 Diversidad. “Debemos ser buenos Programas para Proveedores Latinos”. ciudadanos corporativos en las ciudades a En julio de 2003, Continental recibió el las cuales brindamos servicio, y debemos “Houston Minority Business Council usar de la mejor manera posible las Minority Business Enterprise Procurement sinergias de un personal diverso para servir Award” (Premio de Obtención Empresarial a una clientela diversa”. de Grupos Minoritarios otorgado por el Consejo de Negocios de Grupos 1-800-573-2867 www.diversityjournal.com

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diverse workforce to serve a diverse customer base in the best way possible.”

As the numbers of traditionally underrepresented groups and immigrants in the U.S. population continue to grow, Continental wants to be ready by offering clear communication, fairness and opportunity to its workers, Bissonnet explains.

“Celebrations and awards aside, the participation and advancement of women and minorities at Continental really set us apart,” declares Bissonnet. “I am proud to be part of a company that so values the contributions of each and every one of its employees and that is so focused on serving the changing face of America. ‘Working Together’ really does work at Continental.”

For more information about Continental’s “Latinization” initiative, contact: Para más información sobre la iniciativa Continental de “Latinization” entre en contacto con: Pam Salazar, SVP/GlobalHue Psalazar@globalhue.com De manera en que las cantidades de grupos minoritarios e inmigrantes en la población estadounidense continúan creciendo, Continental ambiciona estar lista para ofrecer a sus empleados una comunicación abierta, igualdad y oportunidades, explicó Bissonnet.

“Aparte de las celebraciones y premios, la participación y los avances de las mujeres y las minorías en Continental nos destacan aún más”, declara Bissonnet. “Estoy orgullosa de formar parte de una compañía que valora las contribuciones de cada uno de sus empleados y que está tan enfocado en servir la ‘cara cambiante’ de América.

El ‘Trabajar en Equipo’ realmente funciona en Continental”.

PDJ page 85

The Changing Landscape same training program, we’ll deliver a consistent message to every employee and we’ll reap the twin benefits of economies of scale: diminishing unit costs and increased quality of delivery. But, like so many of the diversity challenges, the true cost of the decision is not apparent until further down in the process.

Simmons Associates, Inc.

ten redflags in a diversity

How Many Different Sizes??

initiative

Terrence R. Simmons and Peggy Hazard

In

Flag #5: One-Size-Fits-All Training

our last article, “Red Flag #4: Ready FIRE Aim,” we focused on the costs of inappropriate sequencing of a diversity initiative. One of the most common mistakes we noted is when training is designed and implemented prior to a strategy authored by the top executive team. This is clearly a cart-before-thehorse scenario.

But training can fail miserably even when an executive-led strategy is in place. And you can’t afford to misstep on the largest line item in your diversity budget. HR and Diversity leaders have come to us distressed at the lack of results after investing hundreds of thousands—sometimes millions of dollars—on a training program.

A decision that seemed cost effective at the time has come back to haunt them as a financial nightmare.

So what can go wrong? While there are numerous pitfalls, the most common is standardized, off-the-shelf or what we call “one-size-fits-all” training. So common that it has earned a place as Red Flag #5. page 86

Bore Me, Aggravate Me, Alienate Me It is hard enough to find employees eager to attend diversity training. Participants trudge into the room like students going to detention (we sometimes refer to dealing with this constant negativity as a diversity trainer’s occupational hazard). Many are primed to find a reason to disengage, become alienated or bored. (If you think this is true in the U.S. just try conducting a standard, U.S.-made workshop overseas!)

If training does not quickly answer the what, why and how for participants—if they can’t readily see the WIIFM—“What’s In It For Me”—you will lose them. And don’t get stuck in the trap of thinking that the corporate vision statement and business case are sufficient WIIFMs. For all but the most senior levels, these are not a participant’s WIIFM. In fact, participants often react quite cynically to such “lofty” statements. “Sounds good, but ....”

This is not to say that you need 20 different diversity workshop designs! A carefully conceived framework includes important shared concepts—diversity goes far beyond gender and race; how the diversity concept can bring benefits to all employees, including white males: the many ways diversity can impact the bottom line; global implications; the company’s vision and key objectives; the overt and subtle forces that help or hinder the success of an employee (our identification and problem solving tool is called Vectors ); and the flow of modules.

TM

The sameness stops there.

But if we have done our job strategically, each participant will be coming to the workshop knowing that he/she is responsible for setting and achieving diversity goals that will enhance business results. They will expect the training to assist them in doing so.

The more targeted a workshop design the better. But there are limitations of time and money. So the usual areas to determine customization are: 1) Function 2) Organizational level 3) Location (country/region), corporate culture/history and industry.

Function To be sure, it is tempting to select a standard training design. At first calculation it seems so sensible—if we put everyone through the

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Standardized training for all functions poses significant limitations. Take Sales for example. Just try to train a roomful of 1-800-573-2867 www.diversityjournal.com

Simmons Associates, Inc.: Ten Red Flags in a Diversity Initiative The Changing Landscape sales reps without showing them how the information and skills will help them meet their sales quotas! You’re going on about the concept of diversity and they are thinking, “Show Me the Money!” Now that you managed to get them in from the field for a day or two, don’t blow it! Sales people are thirsty for near term results and want to know more specific, relevant bottom line issues.

Specificity is the key here. Don’t report only that overall U.S. demographics are changing and we need to grow “emerging markets.” Share your industry and company data (the more targeted to the participants the better, e.g., the diversity issues in their particular territories or the competition’s activities). Explore the impact of stereotypes on customer interaction (looking at the differences that exist in their customer populations), how cultural differences influence relationship-building and negotiation techniques, etc. Teach them to use diversity awareness to increase their “hit ratio” and they’ll become jazzed about writing an action plan and honing their skills.

By the way, if you are an HR or diversity practitioner take heart—this information should come from your Sales and Marketing division. They usually have reams of data that just haven’t been

analyzed this way. If they don’t, the senior sales professionals must initiate that as part of determining their challenges and opportunities.

With correct sequencing the Vice President of Sales will have already taken this step.

Organizational Level No matter where you are or what your function is, the skills you need vary by organizational level. To make any difference, training must take into account that different skills are required at each level.

Executive Team: The overall goal of this training must be to provide the CEO, his/her direct reports and other key leaders with the comfort level, understanding of diversity, necessary leadership behaviors and skills to author and lead a successful diversity strategy. This team should be working on a diversity vision, leadership behaviors to drive culture change, a practical accountability system with metrics and changing the overall culture. They must think through priorities, resources and how diversity will fit into the organization’s business strategy.

Managers: Manager training must develop key day-to-day diversity management skills: how to recruit and retain good people, insure inclusive orientation, maximize “We cannot cannot emphasize emphasize enough enough “We productivity of all employees, give how counterproductive counterproductive and and how damaging itit isis to to ‘roll ‘roll out’ out’ aa effective performance feedback, damaging U.S.-devised diversity diversity initiative initiative help employees break the “glass ceiling,” U.S.-devised to other other countries. countries. Countless Countless manage diverse teams, etc. Depending to best-in-class corporations corporations have have best-in-class on their function they will also need shared their their horror horror shared stories about about attempts attempts to to do do so so to look at relationships with stories with the the program program intact, intact, or or customers and suppliers, driving with with only only modest modest attempts attempts to to innovation, global team building and with adapt training training through through adapt matrix management. translation alone.” alone.” translation

Peggy Hazard Hazard Peggy Managing Director Director and and Employees: Employees require new Managing Executive Committee Committee Member Member Executive 1-800-573-2867 www.diversityjournal.com

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“If we have done our job strategically, each participant will be coming to the workshop knowing that he/she is responsible for setting and achieving diversity goals that will enhance business results.

They will expect the training to assist them in doing so.”

Terrence R. Simmons Founder, Chief Executive Officer and Managing Partner

awareness and skills to evaluate their own actions and attitudes: how to manage their careers, to work effectively in teams, to support peers, and to contribute to an environment that leverages diversity to enhance business results. Again, depending on their function they will also need to look at relationships with customers, suppliers, driving innovation, global interface, etc.

Made in the U.S.A. for Export We cannot emphasize enough how counterproductive and damaging it is to “roll out” a U.S.-devised diversity initiative to other countries. Countless best-in-class corporations have shared their horror stories about attempts to do so with the program intact, or with only modest attempts to adapt training through translation alone (or eliminating the zeds, changing to colour, programme, etc. in their British versions). Incidentally, don’t count on “find/replace” working perfectly—it will trip you up.

Changing the Title: Backing up a bit, it is even worth reconsidering the name of your initiative. Why? “Diversity” is fraught with preconceived and negative perceptions— synonymous with U.S.-centric concern for race and gender fueled by fear of litigation.

It is not essential to change the name, but it can reduce pushback. Also, while the

continued page 90 page 87

Raising The Bar

Transport Canada (TC)

One

Canadian federal government department, Transport Canada (TC), has taken a positive and well-planned approach to integrating diversity into the organization’s culture. The department has a population of about 4,500 employees, and its mission is to develop and administer policies, regulations and services for the best possible transportation system in Canada.

Senior Management at Transport Canada recognized that in order to implement a successful diversity program, a strong advocate was needed to promote the various program elements, and to encourage management at all levels and employees to embrace diversity.

At TC, Marc Gregoire, the Associate Assistant Deputy Minister of Safety and Security, has enthusiastically embraced his role as Diversity Champion.

Marc is a passionate and tenacious executive who is deeply committed to an inclusive, welcoming workplace.

Interestingly, if you were to meet Marc he would quickly tell you that he “needed to engage people inside and outside the organization—hundreds of champions— to make the diversity strategy a success at Transport Canada.”

DRIVEN to SUCCEED DEVELOPING A NETWORK OF DIVERSITY CHAMPIONS AT TRANSPORT CANADA

By Judy Laws Associate Consultant Malkam Cross Cultural Training page 88

As an Executive working in Montreal, Marc was always paying attention to demographics and issues related to employment equity. What he noticed in early 2000 was that his city’s demographics

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were changing but he was not seeing similar changes in his office. Around the same time one of his colleagues, Suzie Pelletier, Regional Director of Human Resources, invited him to read her dissertation on diversity. Marc not only started to gain a better understanding of diversity, but also realized that TC needed to move beyond employment equity to a focus on diversity.

While attending TC’s Annual National Conference on Employment Equity in November 2000, Marc had the opportunity to hear Trevor Wilson, author of “Diversity at Work” (John Wiley & Sons, 1996), speak about the business case for diversity.

Hearing more on this topic provided Marc with ideas on how to sell and implement diversity at TC.

Gaining Commitment to Diversity At this same conference it was suggested that a vision of diversity was needed. This resulted in a small group of individuals, with representation across Canada, writing TC’s vision for diversity: “We are committed to inclusiveness and the fair treatment of all.” Marc knew that if he was to have this vision accepted by TC’s Management Executive Committee (TMX) he would have to capture their attention first. To do this, Trevor Wilson was invited to teach them about diversity before presenting the vision for diversity. The support for diversity was so overwhelming that the Deputy Minister asked Marc and his team to develop a strategy for implementing the vision.

1-800-573-2867 www.diversityjournal.com

Transport Canada: Driven to Succeed The strategy, “Transport Canada: Focusing on Diversity,” written in the form of a play with six acts, was approved by the TMX in October 2001. It is inclusive of the vision, the definition of diversity, the goals and action plan, and of the budget.

Taking Action: Implementing the Diversity Strategy Since the development of the Diversity Strategy, all regions have at least one diversity champion promoting diversity awareness. A Diversity Committee has been set up in each region, with a national

Marc Gregoire Associate Assistant Deputy Minister of Safety and Security and Diversity Champion

Some 60 employee-volunteers have gone through a five-day Diversity Facilitator Training to be able to deliver half-day “Diversity Dialogue Sessions” to all employees at TC. Many of the regions have started delivering these sessions, and it is anticipated that all sessions will be completed by March 2004.

1-800-573-2867 www.diversityjournal.com

Other diversity initiatives include: • Two successful conferences on diversity held with attendance of over 150 employees from across the country; • The creation of a national website on diversity at TC; • Special events to raise diversity awareness, for example, a Diversity Kick-off Breakfast for the Ottawa Region held with attendance of over 700 employees; and • Focus Group Sessions, held by the Policy

Diversity Strategy Committee, to validate areas for future focus identified through the gap analysis they completed, and to explore solutions toward becoming an employer of choice.

Finally, a significant achievement in TC’s history is the creation of “The Diversity Declaration”, an initiative of the Diversity Steering Committee, which has been signed and is fully supported by TMX members.

Copies of the Declaration have been distributed to all employees and have been placed on all bulletin boards and on the Department’s internal Web site.

continued page 90

Diversity at Transport Canada: A Scenario in Six Acts

Diversity Steering Committee composed of senior managers, employees, and union representatives to implement the strategy.

All committees are expected to develop work plans to implement their own diversity initiatives.

A customized Diversity Assessment Tool was created to assess where TC falls on Trevor Wilson’s Equity Continuum. This assessment was administered in January

2003, and the results revealed that TC’s average rating on the Equity Continuum was 2.5 out of 5. TC’s TC Diversity Conference 2001 goal is to attain Level 4 by 2008. Coupled with this, a large data analysis project is being undertaken to examine the Employment Equity group representation at TC.

Raising The Bar

Act I: And our needs? Assessing where we stand in this major issue of diversity, and to evaluate the foundation upon which we build to make progress in the great adventure of diversity.

Act II: We talk! Initiating discussion with the greatest possible number of employees, seeking to generate new ideas from this exchange, to promote the evolution of our goals, and to establish a solid partnership with the employees of Transport Canada.

Act III: Data collection. To follow the course of evolution in the area of diversity and to evaluate our progress, we will collect quantitative and qualitative data.

Act IV: Data analysis. Data will be analyzed to measure our progress and also to target areas requiring improvement. The analysis must be applied to all the elements that have been measured, both quantitative and qualitative.

Act V: Action plan: goals and time frame. Data analysis and discussion with TC employees during the early stages of the project will enable us to focus on the goals we want to set.

The timeframe will have to be realistic and well planned. Personal accountability will be one of the major elements of our project, along with the definition of our goals and an action plan.

Act VI: Still in the right direction? Our diversity project is alive, it is defined, and it will continue to be refined by the discussions we will be having with employees at every level. In January 2005, we will measure the results of our actions using a diversity evaluation tool. Depending on the results we obtain from these evaluations, and what emerges from our dialogue with employees, we will choose whether to review our action plan for the remaining steps and whether to propose modifications.

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one-size-fits-all training concept of recognizing and managing differences is generally understood, the notion of “diversity” is not. The word doesn’t even translate well into all languages.

Elements of Diversity: In diversity training we establish a working definition, showing the many elements of diversity. While gender is a global diversity challenge, other elements can differ sharply. For example, while not prominent in most U.S. training, the diversity element of Socio-Economic Class (“caste”) plays a powerful role in India, Regional Origin is a dynamic relevant in Germany (East-West), and National Origin and Language is powerful in most of the EU (our clients report that the relationships between and among European countries is the most challenging “diversity” issue).

One common error is the use of the term “race.” This is not generally used in other parts of the world. “Ethnic minority” and “nationality” are more appropriate.

The Business Case: In the United States, a powerful business rationale is the increase in the population and buying power of Hispanics/Latinos, African Americans and Asians. We stress increasing representation to reflect and serve this changing market.

Focusing on these groups in the UK— indeed in most parts of the world—would be ludicrous. One caveat with “Asians,” however: in the UK, “Asians” or “South Asians” refers to Indians and Pakistanis.

Other Asian nationalities are referred to explicitly (Chinese, Japanese). Because East Indian and Pakistani populations are growing significantly in the UK, increasing knowledge and sensitivity about these groups is quite valuable.

As we noted in a previous article, a compelling business case is essential. It is so page 90

Simmons Associates, Inc. Continued from page 87

critical that we have conducted research worldwide to identify the diversity-related issues and trends that impact each country.

We studied not only the bottom line impact, but the diversity elements that have the greatest effect on the workplace and market.

In Germany, for example, there is a powerful business case for managing differences of age. In a workshop we would share this: The percentage of Germans between the ages of 20 and 60 will decrease from the present 56 percent of the population to 47 percent by 2050, whereas the percentage of Germans over 60 will increase from 22 percent to 36 percent over the same time period. While the population ages and the birth rates stay too low to replace the retiring generation, Germany’s average retirement age is falling.

So in training we need to share these trends, then address specifically understanding age differences in management, recruiting, and how to implement appropriate employee training programs and flexible schedules to recruit and retain older workers.

Labor Laws and Regulations: We establish a strong distinction between laws and diversity, but because there are such strong misperceptions (Red Flag #1) the issue must be addressed to some extent. Obviously employment law varies greatly around the world and managing these differences is a huge HR challenge that deserves more attention than we can cover in this article.

Delivery: In addition to content, training style preferences vary greatly from country to country. This is an extensive subject that also deserves it own article. Suffice it to say that differences include degree to which trainers facilitate interactively or are expected to “transfer information,” the

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volume, pace, use of humor, and individual vs. group attention. (All of this said, we need to note that due to the publication’s primary circulation, this article was written for a U.S. audience. We have used American idioms, humor, etc.!)

Remember, one of the best investments you can make is customizing at least sections of your training. Don’t bust your budget pouring money into training that will not provide your employees with the skills they need to make change happen!

PDJ Find out more about the “Ten Red Flags” of a diversity initiative by contacting Simmons Associates, Inc., at 215.862.3020 or online at www.simmonsassoc.com.

driven to succeed The implementation of the Diversity Strategy has not been without its challenges. Shelley Adams, the Senior Diversity Advisor, Human Resources Planning, Official Languages, and Diversity Unit, stressed, “There is still a lot of work to be done to raise awareness about what diversity really is and why we need to become more reflective of our society. In implementing a diversity strategy we are trying to change our corporate culture, by asking each individual to open his or her heart and mind to diversity.” Harold Hefferton, the Diversity Champion from the Atlantic Region, pointed to the challenge that Diversity Facilitators have experienced in being able to facilitate the dialogue sessions in a way that people can understand them. “People are still struggling with what diversity is all about.

Facilitators need to give practical examples,

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Transport Canada Continued from page 89 • The design and implementation of a clear and well-structured communication strategy; and • Finally, being tenacious and never giving up.

not numbers, and need to be able to reach different audiences.” To meet these challenges they see the importance of ongoing awareness for managers on how to implement and manage diversity in the workplace, and for employees, what diversity is about. It is important that the profile of diversity remain high at TC.

Lesson Learned Based on their experience, Transport Canada believes that for any diversity initiative to be successful several elements need to be in place: • Diversity champions to drive the program forward; • The support and commitment of Senior Management; • Buy-in from employees at all levels; • Programs that are designed to fit the needs of employees, middle and senior

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managers within the organization; • Sufficient funding for each initiative; • The development of a strategy or program that is realistic and that will show measurable results; • The presence of functional diversity experts in the department/organization to address questions and challenges as they arise;

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Transport Canada has made enormous progress over the last several years on the diversity front. For the hundreds of employees involved in these initiatives, diversity is a journey, not a destination.

On this journey, TC is at the forefront as a government organization within the Federal Public Service of Canada, thanks to the insight and commitment of its champions.

For more information, contact Judy Laws, Associate Consultant at Malkam Cross Cultural Training, at Malkam@malkam.com.

PDJ

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The Changing Landscape

The Anti-Defamation League

A

religious observances, practices and beliefs Mr. M. is a junior associate in a law unless the employer can show that firm. He is a devout Catholic who, accommodation would cause undue hardship to the employer’s business.” An on average, works twelve-hour days, six employer must attempt to devise a method days a week. A few weeks ago his boss, of allowing employees to practice their Ms. S., asked him to assist her by meeting with a client on a Sunday. Mr. M. told his religious beliefs while still maintaining their jobs. In some cases, accommodation may boss he could not meet with the client as not be possible. However, the employer Sunday is his Sabbath day. When Ms. S. bears the burden of showing that a serious could not change his mind, she intimated attempt was made. that Mr. M.’s next performance review might not be as good as the last one.

An employer need not incur more than Mr. M. had always received outstanding minimal costs in order to accommodate performance reviews in the past. Today an employee’s religious practices.

Mr. M. received his newest review and Ms. S. wrote that he was not a team player Nevertheless, an employer may not simply refuse to accommodate an employee, no and needed to reassess his priorities. matter what the circumstances. If the Mr. M. plans to file a discrimination employer claims that accommodation is complaint unless Ms. S. changes not feasible because of undue hardship, the his evaluation. employer must prove the hardship.

Case in Point

If this type of complaint came to you, would you know what to do? Would you know what questions to ask? Does the company need to accommodate Mr. M.’s religious observance?

In addition, Title VII of the Civil Rights Act of 1964 prohibits employers from

What is Religious Accommodation?

Religious accommodation is a requirement

by Federal law of an employer to “reasonably accommodate an employee’s

discriminating on the basis of religion and requires employers to accommodate an employee’s religious observances. The term religion includes all aspects of religious observance and practice as well as belief.

Additionally, the EEOC defines religion as the “broader moral or ethical beliefs as to what is right and wrong and which are sincerely held with the strength of traditional religious views ….” Religious accommodation requirements apply to nearly all companies with more than 15 employees, but state and local law may mean that companies with far fewer employees and independent contractors are also obligated under these laws.

An employee has a responsibility to indicate his or her religious commitment at the time the job is accepted or immediately upon becoming observant if he or she becomes observant while employed.

Additionally, the employee must cooperate with the employer and accept any reasonable accommodation of the employee’s needs. Reasonable accommodations can include leave without pay or accrued paid leave, job swaps, temporary scheduling changes or shift swaps, and relaxing clothing codes.

RELIGIOUS

A C ACCritical OComponent M MofO D A T I O N Diversity Management

By The Rev. Pamela Moore Associate Director, Workplace Programs

page 92

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The Anti-Defamation League: Religious Accommodation The Changing Landscape What is a Hostile Work Environment?

In addition to religious accommodation, employers must also be knowledgeable about potential liability related to a “hostile work environment.” Recent court cases have found that the following examples contributed to a hostile work environment: • Holocaust jokes to Jewish employees • Daily prayers over the public address system • A supervisor preaching religion in such a way that employees feel that he or she is trying to convert them • Telling an employee that he or she is a sinner and must repent • A supervisor with a swastika coffee mug.

The employer is liable for actions of an employee if the employer knew or should have known about the hostile behavior and failed to correct it. Therefore an employer, for example, can discipline employees who engage in the kind of proselytizing behavior which rises to the level of a hostile work environment.

Case Review In the case cited above, Ms. S. may have created a legal liability for her firm, provided that Mr. M. provided prior notification to his firm of his need to keep a Sunday Sabbath, considered reasonable accommodations offered by his employer and did not create an “undue hardship” for the company regarding the client’s business relationship. An “undue hardship” has not been clearly defined by Federal civil rights law or the courts and different states interpret it differently. However, the United States Supreme Court has ruled that an employer need not incur more than minimal costs in order to accommodate an employee’s religious practices. Had the client indicated that he would take his business from the firm if the meeting was 1-800-573-2867 www.diversityjournal.com

not held that Sunday it would significantly change the employer’s liability for failure to provide religious accommodation.

The Cost of Noncompliance According to information released by the Equal Employment Opportunity Commission (EEOC), the number of religious discrimination complaints filed in 2002 increased by 21 percent. There were 2,572 alleged religious discrimination charges in the private sector. Failure to provide religious accommodation in the workplace may result in a variety of negative outcomes: • Legal liability (and in some states, personal liability) • Monetary damages (if the company does not win its case) • Poor employee morale • Hostile work environment • Negative public relations.

It is important for employers to understand and communicate company policy regarding religious accommodation to its managers and staff employees.

Additionally, the company should also create policies that limit the possibility of hostile work behavior.

Creative Solutions Depending on the situation, an employer has a number of options for accommodating religious observances.

The employer can utilize flex time, create floating or optional holidays, create flexible work breaks, stagger work hours or allow the employee to use lunch time in exchange for leaving early. Additionally, the employer can communicate to employees his or her willingness to know which religious observances should be considered with planning meetings and events. For example, it would not promote an inclusive work environment to schedule a company

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September/October 2003

The Rev. Rev.Pamela Pamela Moore Moore The Associate Director, Director,Workplace Workplace Programs Programs Associate luncheon during the month of Ramadan if there were Muslim employees.

Summary The changing demographics in today’s workplace reflect not only gender, ethnicity, sexual orientation and ability, but religion as well. And as with other types of differences, if religious diversity is not understood and respected it can create difficulties and challenges to a productive work environment. Employers need tools to better address religious diversity in the workplace so it does not become a legal cause of action. There are numerous training programs and publications that can assist an employer in creating a workplace where religious diversity is respected and employees are provided with an environment that promotes a high morale and employee satisfaction.

The Anti-Defamation League is one of the nation’s premier civil rights and human relations agencies.

A WORKPLACE OF DIFFERENCE™ is a program of ADL’s A WORLD OF DIFFERENCE® Institute, a full-service diversity consulting and training organization. For more information, visit their website at www.adl.org.

PDJ page 93

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Volume 5, Number 5 • September/October 2003

John W. Rowe Chairman & CEO Exelon Corporation

the

new

Dr. Elias A. Zerhouni Director National Institutes of Health, DHHS

Michel Landel President & CEO Sodexho USA

DIVERSITY

leadership Daniel A. Carp Chairman & CEO Eastman Kodak Company

Dr. Vance D. Coffman Chairman & CEO Lockheed Martin Corporation

CEO advocates are often called “the most powerful weapon in the diversity arsenal.” Meet ten of corporate America’s most powerful champions for 2003.

Special Section

Making a difference in today’s Hispanic Market Marketing opportunities—and products—to America’s fastest growing demographic. Featuring case studies from Continental Airlines, Ford Motor Company, Verizon and more.

Featuring Hyatt Hotels and Resorts • Sterling Financial Investment Group • AFLAC • The Anti-Defamation League • Dr. Juan Andrade