Increasing Stakeholder Value through Diversity

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Increasing Stakeholder Value through Diversity
Inclusion
Measuring the Impact
Andrés Tapia,Chief Diversity OfficerHewitt
Associates
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Content

• Diversity and Inclusion Strategy, Vision, and
  Goals
• Measuring Stakeholder Value

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• Diversity and Inclusion
  Strategy,
• Vision,
• and Goals

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Three-Pronged Strategic Approach
Partner with community, academic, governmental,
and corporate organizations focused on
increasing the pipeline of diverse talent. The
strategic focus build tomorrows diverse
workforce.
Embed Diversity in CSR
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Synergies between
Each Strategic Prong

• The work in each of these areas reinforces the
  work in the others.
• Some examples
• As we embed diversity into our offers, it
  reinforces the business case for greater
  representation because the more diverse we are
  the better we can see the needs of our clients'
  diverse workforces.
• As top minority talent in and outside Hewitt see
  Hewitt committing to the issues and communities
  that are important to them, it makes Hewitt more
  attractive for candidates and for those already
  here.
• As we provide thought leadership, grants, and
  volunteers for community work, we increase
  Hewitt's corporate reputation in communities and
  among our clients, prospects, investors, and
  associates.

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Vision and FY05 Goal by Stakeholder Goals

• Overarching Vision Increase stakeholder value
  through diversity and inclusion.

Overarching FY05 Goal To make significant
progress in FY05 to meaningfully increase visible
diversity within top leadership ranks of the firm
in FY2006.
Vision
FY05 Goal
Actions To Date
To anticipate and address the needs of our
clients current and future diverse workforce.
Clients
Contribute to revenue by embedding diversity
into select client offers.
Refer to mid-year report.
To foster an inclusive environment where all have
the opportunity to work with dignity and equal
opportunity to achieve their full potential.
Associates
Position Hewitt to be considered a best
company for minorities by 2006.
Refer to mid-year report.
To bolster investor confidence in Hewitts
sustainability by excelling at diversity.
Investors
Set corporate social responsibility standards
that will make us attractive to investors.
Refer to mid-year report.
Communities
Position Hewitt to be recognized as a
significant emerging voice in tomorrows
workforce.
To help build tomorrows diverse workforce.
Refer to mid-year report.
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Providing Stakeholder Value
The Stakeholder Value Chain
Clients
Investors
Stakeholder Value Transformational and
transactional products and services that make the
clients environment a better place to work ROI
for Hewitt Market share, growth, and increased
corporate reputation
Stakeholder Value Valuable longterm
investment ROI for Hewitt Increased investment in
Hewitt
Making the World a Better Place to Work
Stakeholder Value Equipping for future work,
hope ROI for Hewitt Meaning, increased corporate
reputation, client and prospect connections
Value Growth, meaning, and opportunity ROI for
Hewitt Enhanced attraction, engagement, and
retention
Community
Associates
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• Measurement Strategy and
• Metrics

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Outcome Metrics
Secondary Metric(s)
Primary Metric
Clients

• Total net revenues due to diversity on prospect
  teams and having AAP
• Total net revenues per community board
  involvement

• Total net revenues per diverse offers (Client
  contact estimates of amount of a win/loss due to
  diversity considerations)

Associates

• Target Impact Ratio of minority hires and
  promotions ( applicants / of hires
  and promotions is equivalent for minority and
  majority)

• Target Minority retention, representation,
  and promotions
• Target Perceptions of meaning and
  opportunity
• Target Associate segment metrics

• Invested by socially responsible investors
• (socially responsible determined by COE)

• of requests from socially responsible
  investors

• of significant public appearances by leaders
  regarding diversity
• revenue invested in strategic community
  partnerships
• Representation on boards of strategic
  partnerships
• Impact on community organizations
  constituents per their metrics

• significant media mentions that reinforce
  Hewitts diversity strategy
• (significance determined by COE)

Communities
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Diversity Goal Measurement
for
Senior Leaders
Actions
Goal Measurement
of visible minority representation at senior
levels
As part of the leader-to-leader meetings do an
additional meeting with a group of minority
associates. Every direct report has at least one
diversity performance goal for FY2005.
In Replacement Planning
of minorities in Leaders LOB/Region/Practice
replacement pool.
Ensure that there are minorities in your
replacement pool.
of diverse candidates that are interviewed for
pay bands 6 and above.
Do not fill position until a diverse slate of
candidates interviewed. (Exceptions
made when all reasonable sourcing strategies have
been exhausted).
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Measurement Strategy by Associate Segments

• Associate Segment and Focus Metric and/or Action

Racial/Ethnic Minorities
Representation in leadership/senior roles
equivalent engagement at all levels. Women

Women in leadership and the next generation of
women leaders. GLBT
A safe
environment for those who want to come out to do
so without fear of career repercussions. Physicall
y Challenged
Proactively stay up-to-date on and upgrade to new
technologies. Experienced Hires
Automatic valuing of
and quickly tapping into diversity of experience
and thought. Over 40
Fostering an
environment where their life and work experience
are valued and utilized. White Males
Fostering
an environment where they feel part of the
diversity and inclusion story. Religion/Nationalit
y/Veteran Status Accommodation, acceptance, and
inclusion.
Representation by levelCreation of a viable
Minority Leadership network
Representation by level
Creation of a viable Womens
Leadership network
Increase on the safety-to-come-out score in the
GLBT survey
Latest technology for associates with
disabilities 1) Software is proactively updated,
2) Registration process for LD is streamlined
for associates with special needs, and 3)
Software-enabled PCs.
Increase on the I feel valued Associate
Survey score
Increase on the I feel valued Associate
Survey score
Score on Associate Survey item, I am
personally included in the firms diversity
efforts.
of reported negative comments from various
groups
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Measurement Gaps
and Challenges
Overall Challenge Separating the impact of
diversity on stakeholder results vs. that of
other initiatives.
Associates
Understanding the strength of our employment
offer due to diversity and CSR compared to that
of our direct competitors.
Investors
Articulating the value investors place on
intangible assets like corporate image and CSR.
Packaging Hewitts mission and brand in a way
that directly translates into value for these
stakeholders.
Communities
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Next Steps for Diversity
Measurement
Anticipated Result of Having
Measurement
Details
An overall number to describe how well we are
doing in terms of meeting our overarching
diversity goals with weightings that give more
value to increase in representation at the most
senior levels
This is the single number that leaders could put
on their performance plan. It would simplify our
picture of how well we are doing in terms of
diversity.
Diversity Index
An examination of whether our more diverse client
teams are also our more profitable ones.
A link between diversity and profitability
provides the strongest possible business case for
diversity initiatives.
Diversity Profitability

• For example
• The relationship between diversity/crosscultural
  training initiatives for HR and trust of HR.
• The relationship between active diversity
  retention strategies being worked and actual
  diversity retention.
• An ROI of diversity (cost of recruiting balanced
  against return).

Explore Interrelation_ships
Exploring these relationships will help us
determine which diversity initiatives to push
further, which to tweak, and which to stop.

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The Intercultural Development Inventory (IDI) by
Milton Bennett
Integration
Adaptation
I communicate and work effectively with many
cultural groups.
Ethnocentric Stages
Acceptance
I proactively use my knowledge about cultural
differences to improve relationships with people
who are culturally different.
Minimi- zation
Cultural differences exist, are important, and
should be respected and valued.
Defense
Differences between cultures are
inconsequential.
Denial
My culture is the true culture.
There are no real differences among people of
different cultures.
Ethnorelative Stages
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Penetration Measures
Note Not real datafor illustration purposes
only.
Exposure I see it
Self-Awareness I get it
Experience Ive heard it
Behaviors I live it
Internal Focus Volunteering to help, making
diversity a priority Client Focus Embed
diversity into offers
Internal and Client Focus Seen or read strategic
direction
Internal Focus I know what I need to do Client
Focus I need to start auditing my offers
through a diversity lens
Internal and Client Focus Heard the diversity
teams presentation/dialogue