Bridgette Heller

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• Bridgette Heller
• Global President, Baby CareJohnson Johnson
  Consumer Companies

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Diversity Inclusion as a Global Growth Driver
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NEW Sponsors are Multi-National
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Demographic and Social Changes Create A War for
Talent
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Worlds Population Skewing to Developing Nations

• Brazil3
• Russia2
• India17
• China20
• Total BRIC countries 42

• US5
• UK1
• Germany1
• France1
• Japan 2
• Leading Developed Nations 10

Source Population Division of the Department of
Economic and Social Affairs of the United Nations
Secretariat (2007)
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Population Growth Rates in China Brazil
Even in the Developing World!
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Demand for Global Workforce Intensifying

• Retiring Baby Boomers and declines in birth rates
  are creating labor shortages in major developed
  countries
• By 2020, the working age population (15-64) will
  shrink in the U.S., U.K., Canada, Germany, Italy
  and Japan
• By 2020, it is estimated there will be
• 17 million jobs unfilled in the U.S.
• 9 million jobs unfilled in Japan
• 2 million jobs unfilled in France, Germany and
  the U.K.

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Role of Diversity Inclusion
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Diversity is the WHAT
Diversity refers to the many differences within
our workforce and marketplace
Personality
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Inclusion is the HOW
In the 21st century, understanding, respecting
and leveraging diversity is essential to business
success
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Diversity DimensionsAverage Across 8 Geographic
Regions
Gender is 1 diversity dimension measured
across all regions
65
60
55
50
54
45
40
35
30
31
25
20
23
23
23
15
20
10
12
5
0
Average Across 8 Regions (US, Canada, LA, Europe,
Asia and Pacific, Africa, Middle East, Australia/
New Zealand)
Gender
Race/Ethnicity
Sexual Orientation
Disability
Nationality
Generational
Religion
CLC Brief-Creating a Global Diversity Policy,
October 2008 Data derived from a 2006 Catalyst
survey of 110 organizations across different
geographic locations
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What Does All This Mean to You?

• Embracing diversity is no longer optional. New
  people dynamics are critical growth drivers.
• Workforce war on talent
• Marketplace/consumer insights
• Culture of valuing differences to generate
  innovation and to promote employee engagement and
  development/retention

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Diversity and Inclusion Enables Growth

• Varied perspectives and experiences
• An understanding of different countries and
  cultures
• An understanding of markets a company is trying
  to penetrate
• Better responsiveness to new opportunities
• Enhanced innovation, creativity and
  problem-solving capacity
• Better retention of high-quality staff

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Diversity and Inclusion Enables Growth

• The 43 publicly traded companies on the
  Diversity Inc. 2006 Top 50 Companies for
  Diversity list a 10-year average return on
  stock that was 23.5 higher than the return of
  the SP 500
• Catalyst study of Fortune 500 from 1996-2000
  companies with the highest number of women in top
  management positions had a 35.1 higher return on
  equity than the companies with the lowest number
  of women. These companies also had a total
  return to shareholders that was 35.1 higher.

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A Little About the Johnson Johnson Approach to
Diversity and Inclusion
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Johnson Johnson A Long Global History

• First international affiliate in Canada (1919),
  first overseas affiliate in Great Britain (1924)
• JJ Mexico and JJ South Africa formed in 1930,
  JJ Brazil formed in 1937
• More than 250 operating companies
• Facilities in 57 countries around the world
• Sales in more than 175 countries
• 119,400 employees worldwide
• Almost 50 of revenues from outside the United
  States

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Global Diversity Part of our DNA

• Decentralized management approach and structure
• Global affiliates staffed with local talent
• International Development Program fosters leaders
  who can effectively operate in a diverse, global
  environment
• CREDO that defines expected behavior including
  
• We are responsible to our employees, the men and
  women who work with us throughout the world
• Everyone must be considered as an individual
• We are responsible to the communities in which we
  live and work and to the world community as well

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Global and Regional Brands
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Our People Build Our Reputation

• Barrons Magazine 1 Worlds Most Respected
  Companies
• Fortune Magazine Top 10Americas Most Admired
  Companies Global Most Admired List
• Wall Street Journal / Harris Interactive
  Reputation Survey Ranked 2
• Diversity Inc. Magazine 1 Among Top 50
  Companies for Diversity
• Reputation Institute 2 Most Respected U.S.
  Companies 5 Worlds Most Respected List

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Case Studies
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• Brand presence in 173 countries, only 16 of
  revenues from U.S.
• Developing world 50 of business and growing 3x
  developed countries managing portfolio drives
  total long-term growth
• Different growth and innovation strategies
  depending upon stage of development
• Leadership team truly global 6 languages, 4
  nationalities, all four continents represented
• Local leadership allows for mining of local
  consumer insights
• Global leadership and infrastructure enables
  faster best practice transfer
• Examples include Bedtime launch, Trendscope
  process

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Bedtime Executions From Around The World
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A Success Story

• Bedtime platform was up 24 during year one of
  relaunch

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Project TRENDSCOPE Objectives

• Use consumer inspiration to drive depth and
  diversity of global JOHNSONS Baby pipeline to
  meet mid-term and long-term growth goals by
• Understanding changing consumer values needs
• Uncovering insights that enable us to speak to
  the consumer in relevant ways
• Using this input to build a differentiated
  pipeline

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TRENDSCOPE Virtual Hothouse Delegate Map

• Sixty participants across 12 countries generated
  356 new product ideas

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Living Our CredoBuilding a New Business Model
While Improving Womens Lives

• Direct-to-consumer business models are
  fast-growing
• Community moms in Colombia need to increase their
  income to provide for their families
• Moms look to activities such as catalog sales to
  supplement their income
• Additional incentive programs provide access to
  products that will benefit the children in moms
  care
• Increased exposure and penetration of our brands
  to women in Colombia

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Leveraging the Community, Our Communication, Our
Portfolio and Our Distribution Model
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Communication Begins With Our Catalog One-to-One
Advertising
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Incentive Programs to Enhance Community Roles and
Improve Living Conditions
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Building Your Diversity Inclusion Strategy
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Commit to the Process

• Commit leadership
• Assess readiness and define desired change
• Establish priorities and realistic objectives
• Plan the change key leaders, processes,
  policies and practices to meet the particular
  diversity needs of your company include training
  and support processes
• Act decisively and consistently
• Measure progress on an ongoing basis and course
  correct as needed

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Balance Global with Regional Needs

• Consider developing a global statement about
  respect, difference and the shared goals and
  values of the organization
• Link your global strategy to business performance
  and growth
• Remember that while gender is the most commonly
  targeted dimension of diversity across all
  geographic regions, wide variations exist in
  perceptions of diversity across different
  geographic regions thus, best companies create
  regional definitions and customize policies
  accordingly
• Define diversity for each geographic region to
  align it with cultural norms and legal frameworks
• Emphasize dimensions of diversity that best
  address cultural issues and employee needs of the
  region
• Get local input dont impose your own agenda
• Meet people where they are
• Local/regional leadership buy-in is key

CLC Brief -- Creating a Global Diversity Policy,
October 2008
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Walk the Talk Model Inclusive Behavior for
the Organization

• Set clear expectations for the organization and
  report against progress to ensure everyone knows
  its a priority for the company
• Seek out advice or opinions from diverse
  perspectives move beyond your comfort zone
• Celebrate diversity and inclusion successes
• Speak up when you see colleagues making a
  diversity and inclusion misstep
• Be flexible in how you communicate with others
  from different cultural backgrounds
• Alternate times for global team meetings so that
  different time zones can share the pain of
  awkwardly timed meetings
• Listen and ask questions to avoid jumping to snap
  judgments about people

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Common Performance Indicators to Guide Progress

• Increase in the representation of women, people
  from different countries of origin, ethnic
  minorities, etc.
• Employee survey results indicating how a culture
  of valuing differences enhances employee
  engagement and productivity
• Consumer insights about a specific group
  resulting in new product developments and/or
  increased sales
• Homogenous work group vs. diverse work teams
  output and innovation
• Improved insights about global consumers leading
  to increased sales growth
• Demographic profile of the management team