The Business Case for Equality, Diversity & Inclusion AFSA AGM/Development Event 24th May 2013

1. The Business Case for Equality, Diversity & Inclusion AFSA AGM/Development Event 24th May 2013

2. What we’ll discuss • How does D&I contribute to business success? • How to enable inclusion • Questions

3. How does D&I contribute to business success?

4. The business benefits from diversity happen when an inclusive environment is created I n c l u s i o n • It is about a culture where each person: • Feels respected & valued • Feels their ideas & opinions are heard • Can perform to their full potential • It involves sustained and long-term strategic effort • It’s happening when diversity of thought is embraced in finding the best ways to serve clients and customers D i v e r s i t y Every way in which any mixture of people has both similarities and differences

5. INTERACTING How we communicate How we see ourselves – (group or individual) What we focus on: task vs. relationship PROBLEM SOLVING How we processinformation How we giveexplanations How we makeconclusions DECISION MAKING How much we try to control How we see time Accessing the many elements of diversity Level Function Marital/Parental Status Social status Age Division Nationality Ethnicity Language/Accent SexualOrientation Appearance Personality/Values/Beliefs Primary Secondary Organisational Physical & Mental Ability Location Sector Hobbies Race Gender EducationalBackground Religion Location Career Motivations

6. Organisations with great leaders and great managers capitalise on what’s similar and different about people: Great leaders – find out what is similarand capitalise on it to rally people to create a better future for their organisation Great managers – find out what is differentabout people and turn each person’s talents into performance both for now and for the future Adapted from Marcus Buckingham

7. Creating An Inclusive Environment For Everyone Involves Culture Change to deliver significant performance benefits Equal Opportunities Valuing Differences Managing Diversity & Inclusion All the ways we are different Creating an inclusive work environment Race, Gender, Disability Focus Social and moral responsibility Meeting stakeholders’ needs Legal responsibility Motivation Culture embraces difference Mutual accommodation Change Required Individual adapts Responsive services/ Better problem solving/ Performance gains More women and minority ethnic people Mutual respect Result Managing Risk High Performance Managing Risk

8. BIS/GEO Business Case Literature Review 2:Organisational structure and architecture. Control systems (including reward systems). Corporate Governance Design. Information/knowledge management systems. Organisation management styles. Networking Groups. Embedded equality aligned management policy and practice. • 4 (b) Strategic transformational approaches and capabilities: • Local Responsiveness • Operational Agility • Partnering Agility • Innovative Capability/Product service development • Improved Risk Management • Improved service user experience High sustained performance 3: ‘Diversity Density’ 4(a) Inclusion Mindset’ 1: Increasing Population diversity and legislation/ policy design • 5. • Recognise Diversity trumps ability • Build inclusive workplace • Embrace diversity of thought Service User and Supplier diversity

9. BIS business case literature review propositions:Equality Business Benefits Diversity approaches are more often driven by considerations of productivity and profit, but even when they are motivated by considerations of equity there is the potential for business benefits to accrue. All equality approaches and diversity approaches driven by considerations of equity have the potential to lead to business benefits which fall within our category of Equality Business Benefits. D&I approaches which relate to workplaces better representing society have the potential to drive forward the equality agenda. (BIS/GEO Review 2011

10. BIS business case literature review propositions:Inclusion Business Benefits Diversity is, of itself and independent of external drivers, a desirable workforce characteristic that can enhance productivity and other business outcomes. Demographic diversity can bring together a greater variety of tacit dispersed knowledge and facilitate problem solving. Team-based diversity studies and research on workplace diversity approaches suggest that inclusion leads to enhanced outcomes, such as problem solving. The business benefits of increased diversity are secured when accompanied by appropriate policies and practices; including appropriate inclusion training for those who lead teams. (BIS/GEO Review 2011

11. Diversity & Inclusion reduce recruitment costs • Wider recruitment pool • Higher retention • Broader talent pool Source: Harnessing Workforce Diversity – Create, 2003

12. ...And raise employee motivation • Happier work environment • Higher productivity • Better employer image Source: Bitc FastForward Research 2003

13. ….. And produce new ideas and better services • Richer variety of approaches • Process improvements • Service improvements Source: Harnessing Workforce Diversity – Create, 2003

14. Diversity trumps ability theorem It has been demonstrated mathematically that under a reasonable set of conditions, diverse teams consistently outperform homogeneous expert teams. (Prof Scott E Page)

15. Business benefits evidence from Diversity Works for London ((DWfL) Best Practices Case Study • Increase in recruitment of diverse talent: • Bevan Brittan, BT, Eversheds, IBM, National Grid, Pret A Manger, Wates Group • Winning new business: • Canon, Goldman Sachs, IBM, Pret A Manger, Standard Chartered Bank, Sodexo • Reduction in staff turnover: • Allen & Overy, Bevan Brittan, BT, National Grid, Standard Chartered Bank • Improved customer service: • IBM, Pitney Bowes, Pret A Manger, Standard Chartered Bank • Reduction in unconscious bias: • BT, Ernst & Young, Goldman Sachs, IBM • PR through external recognition: • Eversheds, Goldman Sachs, IBM, Wates Group • Improved Employer Brand: • Eversheds, IBM, Pret A Manger, Wates Group • Increase in diverse high potentials in senior management: • Canon, Ernst & Young, Goldman Sachs, Wates Group (DWffL2009)

16. Firms with 3 or more women in top management score... The business case for women in senior management ...more highly, on average, for each organisational criterion than companies with no women at the top. Based on McKinsey’s proprietary diagnostic tool which measures the organisational excellence of an organisation against 9 criteria: Women Matter: Gender Diversity, a Corporate Performance Driver, McKinsey & Co, 2007.

17. Inclusion has a massive effect on performance Experiences of exclusion Experiences of inclusion Disengagement Performance Excelling Withholding ideas & opinions Morale Contributing Absenteeism Motivated More absenteeism Turnover High performance Leave

18. How to Enable Inclusion

19. The interactive behaviours that power inclusion • ‘Seeking’ • Seeking information • Seeking suggestions • Checking understanding • Developing suggestions • Acknowledging • Content • Feelings • Bring-in ‘Telling’ • Objectives and why important • Giving information • Making content suggestions • Making process suggestions • Summarising • Disclosing • Information known only to you • Something about self • Summarising outcomes and follow-up

20. “They do; so should I” (The ABC Process) • Consequences (+/-ive) • Feedback • Praise • Reward • Antecedents • Articulate • pinpointed behaviours • Communicate • Coach Pinpointed Behaviours practised (Adapted from Braksick) The 10% - 20% - 40% opportunity!

21. Frith Street Consulting can help you with the change ‘Drivers’ that enable inclusion Management message & example Communication & engagement Coaching & development Measurement – hard & soft

22. Questions?

23. Small Groups’ exercise: the contributors to positive, inclusive experiences In your groups tell stories of when you experienced inclusion at its very best: What was the situation? What happened? How did you feel? What made it a positive, inclusive experience for you? Record the common themes in the stories that resulted in a positive, inclusive experience and be ready to share these to the Conference.