Making Sense of D&I Strategy:

1. Making Sense of D&I Strategy: How to Create Plans That Engage, Motivate and Get Results Mary L. Martinéz D&I Practice Leader

2. About APTMetrics Global Talent Management Solutions Provider Comprised of: • Ph.D. industrial/organizational psychologists • Human resource consultants • Information technology specialists What Sets APTMetrics Apart: • Professional integrity • Evidence-based approach • Technical expertise • Customer service Diversity Supplier • Certified as a women-owned business by WBENC • Certified as a women-owned small business by the US SBA GlobalStrategies for Talent Management.

3. Our Areas of Expertise • Leader Assessment • Employee Selection • Litigation Support • Diversity Strategy & Measurement • Job Analysis • Competency Modeling • Performance Management • Staffing for Mergers & Acquisitions • Organizational Surveys • Public Sector Services GlobalStrategies for Talent Management.

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6. “The essence of strategy is choosing what not to do.” ―Michael E. Porter

7. Agenda for Today’s Session D&I STRATEGY… • Where does strategy creation go wrong? • Who should create D&I strategy, own it and execute it? • How do you develop one without getting lost in the weeds? • Can this process work for your company? (Let’s try it…) • Your questions?

8. What Challenges Have You Faced in Developing D&I Strategy in Your Organization?

9. Missteps in D&I Strategy Development

10. What’s Required • Vision and definition for the desired future state • Clear roles for business leaders v. HR/D&I • Create the structure • Identify champions in the business • Raw material for the business case (drivers; linkages) • D&I status quo against the backdrop of the business and HR strategies; gaps • Workforce • Workplace • Marketplace (customers/suppliers/communities) • Specific plans, accountabilities, and milestones derived directly from business strategy

11. Most Effective Roles for Key D&I Stakeholders D&I Center of Excellence (COE) • Business Unit Leadership • and Their Teams Chief Diversity Officer • Provide expertise, direction, guidance, coaching and support to the business units • Ensure partnerships between business and HR, ERGs, Procurement, Community Relations, etc. • Set strategy and goals • Communicate importance of D&I for business outcomes • Own responsibility for implementation and outcomes

12. Why Direct, Ongoing Participation by Leadership in Strategy and Metrics Works • Requires interaction with the data, issues and reality of D&I in the organization and the marketplace • Fosters accountability being pushed down through the organization • Sends a message that D&I is part of the business landscape – increasing sustainability of impact • Enables senior leaders to speak more knowledgeably and confidently about D&I • Ensures implementation resources

13. Helps Leaders Achieve Business Goals Not Possible Without the Added Value of D&I

14. Executive and BU-Level Councils Make D&I Real for Each Business Unit A template that can be used for the Executive Council and then within each BU

15. A Metrics-Driven Approach that Accelerates D&I by Starting from the Business Strategy A Metrics-Driven Approach that Accelerates D&I by Starting from the Business Strategy Business Goals Talent and Business Strategies to Achieve the Goals D&I Linkages (Workforce, Workplace, Marketplace) Strategy and Actions to Optimize D&I Contribution Talent and Business Metrics and Accountability

16. Strategy Development Example: Workforce & Workplace Business Goal HR & Strategies D&I Linkages Measure Current State D&I Strategies Measure Progress • Hire additional IT staff with social media expertise • Provide work environment, challenges, and rewards for IT staff with required skills • Improve brand image with targeted workforce • Increase workplace flexibility and openness • Implement new career paths for IT function • Many of those in target IT workforce are Gen Y, from diverse backgrounds • Have different career goals/ expectations • Perception of company brand by potential hires measured via survey • Increased usage of Flex options; feedback from employees • Hire and retention stats for targeted groups Leverage social media to increase on-line sales to younger buyers Gap Analysis • Don’t have strength in recruiting or retaining targeted workforce; need new sources/ approaches to recruitment and retention

17. Strategy Development Example: Marketplace & Community Business Goal Business Strategies D&I Linkages Measure Current State D&I Strategies Measure Progress • Don’t currently have adequate market segment data • Few linkages to on-line communities attracting targeted segments Leverage social media to increase on-line sales to younger buyers • Update online brand image to appeal to 25-35 market • Pilot crowdsourcing for product enhancement • Target market has significant racial/ethnic diversity – will need to assess impact on product branding and marketing vehicles • Conduct further research, starting with tapping Young Professionals ERG, who can also provide links to virtual (and actual) communities • Market share increases • Response rates to social media marketing • # of ideas implemented from ERG suggestions Gap Analysis

18. Strategy Should Be Integrated Across the Organization YEARLY • Individual Leader • Diversity Councils/ERGs • Business Unit Corporate D&I Strategic Plan (3 year) Goals Set Through: • D&I Goals/ • Action Plan • D&I Goals/ Action Plan • Key Behavior Objective set in individual PM plan Goals Measured In: • Diversity Council Evaluation • Performance Appraisal • BU and Corporate Scorecards

19. Worksheet for Development of BU D&I Strategy

20. Examples of Business-Led D&I Initiatives • Medical devices company enhanced its brand in the Hispanic community by hiring a Spanish-speaking community liaison to educate on healthy living for those with diabetes • B-B organization in business services desiring to expand market share in mid-sized companies built diversity-targeted marketing into its strategy with significant results • Operations business unit in a utility provides language cards to its field staff so they can inform customers of onsite work being done – even if they don’t speak their language

21. Areas for Measurement • Workforce Profile • How many? What trends? What patterns? • Programs/Processes • How many? How well? What impact? • Diversity Climate • How fair, flexible, engaging, and open to differing perspectives? • Business Impact • How much more (productivity, sales/market share, cost savings)?

22. Incorporate Metrics Into a Comprehensive D&I Dashboard ) Tailored to reflect the organization’s goals, strategy and priorities for change…

23. Metrics and Accountability Example:Financial Services Company • Goals and means for achievement: Promote metrics based results Enhance accountability Establish clear direction for managers Ensure managers focused on: • Growing headcount • Driving revenue growth • Supporting trainee development • Encouraging teaming opportunities • Develop specific measures based on historic performance and desired outcomes • Supply detailed reporting to managers to enable regular tracking and identification of opportunities • Utilize a carrot and stick methodology to encourage desired results • Reward those who reach significant, objective measures of success • Four key measures: • Changes to representation of women and minorities • Changes to team representation • Growth in $ results of diverse employees • Results of diverse employees versus results of unit overall

24. Let’s Try It Out… Business Goals Talent and Business Strategies to Achieve the Goals D&I Linkages (Workforce, Workplace, Marketplace) Strategy and Actions to Optimize D&I Contribution Talent and Business Metrics and Accountability • In groups of three or four, try applying this model to an actual business goal of one of the companies represented in your group. • Based on the business goal you choose to work on, select one talent or business strategy that is critical to reaching the goal and identify: • What the D&I linkages are, and • For one of the linkages, determine one strategy, one action related to the strategy, and suggest how it could best be measured

25. Your Comments? Questions? Ideas?

26. Contact Information APTMetrics, Inc. One Thorndal Circle Second Floor Darien, CT 06820 203.655.7779 TalentSolutions@APTMetrics.com www.APTMetrics.com GlobalStrategies for Talent Management.