Leveraging the Intersection of Talent and Diversity to Grow Your Leadership Pipeline

1. Leveraging the Intersection of Talent and Diversity to Grow Your Leadership Pipeline National Diversity Council Tristate Chapter 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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5. APTMetrics’ U.S. Offices

6. Topics for Our Discussion • Forces driving greater integration of D&I and talent management • What cultural competence is and why it’s important for leaders and organizations • How diversity and inclusion (D&I) maturity is reflected in talent management approaches and processes • Ways to incorporate a diversity lens into key talent processes and how to measure progress

7. Convergence of Talent Management and D&I in a Global Environment Requires talent management processes that leverage the power of all types of diversity and develops leaders capable of creating an inclusive environment that will engage, nurture and reward a multi-cultural, multi-national, and multi-generational workforce

8. The Business Case for a Diverse and Culturally Competent Leadership Pipeline • Expands the talent pool – internally and externally • Encourages inclusion and thus increased engagement and productivity of all employees • Provides the skills required to bridge businesses, functions, and countries to create effective partnerships and teams • Powers an innovative culture • Leads to sustainable success

9. Progress in D&I Depends on Cultural Competence

10. AND Cultural Competence is an Essential Building Block for Leadership Effectiveness Cultural Competence (Organizational & Individual) Respects diverse perspectives that may arise from background, culture, ethnicity, race, gender, age, generation, values, and other individual characteristics. Operates effectively in different cultural contexts and alters behaviors to reach different cultural groups. Recognizes when diverse views are not being leveraged and confronts this situation. Drives action through the organization to capitalize on diversity as a business asset.

11. Integration of D&I in TM Processes Reflects Stage of D&I Maturity Reward and Recognition Workforce Planning Leadership and Employee Development Compliance Recognition Activation Inclusion Talent Identification, Review and Succession Performance Management Staffing

12. Imperatives to Leverage D&I in Developing Diverse Leadership Talent • Achieve deeper understanding of root causes of barriers to diversity and inclusion in leadership ranks • Ensure consistent, and consistently applied, talent processes that are inclusive, fair, valid and legally defensible • Establish broader criteria for assessing potential for leadership • Coach and develop of talent decision makers to overcome biases and increase risk taking • Create targeted development initiatives for particular groups where barriers exist • Implement meaningful metricsand means of accountability for fostering inclusive, culturally competent leadership Make diverse, culturally competent, talent a business priority

13. D&I and the Identification and Development of Critical Talent: Early Identification Plays a Role Percent of organizations taking enterprise-wide actions on emerging talent Source: Talent Management Practices for a Diverse Leadership Team, study conducted by ORC Worldwide for Industrial Relations Counselors, Inc., 2009

14. The Starting Point: Identification of Potential “The risk of introducing gender bias into talent management systems is nowhere more obvious than in what leadership competencies are valued and expected.” Cascading gender biases, compounding effects: An Assessment of Talent Management Systems, Catalyst, 2009

15. Leadership Profile Still Stresses Stereotypically Male Characteristics • Catalyst study found that stereotypically male characteristics also appeared more frequently in formal job descriptions of senior executive roles From Cascading gender biases, compounding effects: An Assessment of Talent Management Systems, Catalyst, 2009.

16. Greater Diversity Tied to Broader Criteria 2009 IRC Study found that companies with more senior leadership diversity included: • Learning agility • Emotional intelligence • Mastery of key competencies (versus experience in particular jobs or a specific career progression) Source: Talent Management Practices for a Diverse Leadership Team, study conducted by ORC Worldwide for Industrial Relations Counselors, Inc., 2009

17. Uncovering Potential Bias in Assessment African American employees were rated significantly lower by White raters than by African American raters (d = -.30, p < .05), whereas, White employees were not rated differently by White and African American raters (d = .04, ns). White raters rated White employees significantly higher than African American employees (d = .36, p < .01), whereas, African American raters did not rate White and African American employees differently (d = .06, ns).

18. Example of Leadership Assessment that Includes Cultural Competency Cultural Competence

19. Feedback: Individual Developmental Actions

20. Impact of Multi-Rater Feedback on Potential Identification Source: Talent Management Practices for a Diverse Leadership Team, study conducted by ORC Worldwide for Industrial Relations Counselors, Inc., 2009

21. Tailoring Interventions to Root Causes of Gaps in Talent Diversity: Barriers to Advancement Vary for Different Groups (…Ask Them) Source: Talent Management Practices for a Diverse Leadership Team, study conducted by ORC Worldwidefor Industrial Relations Counselors, Inc., 2009

22. Targeted Practices Related to More Diverse Pipeline[example: Minorities] Interventions are not “one size fits all” Source: Talent Management Practices for a Diverse Leadership Team, study conducted by ORC Worldwide for Industrial Relations Counselors, Inc., 2009

23. Leadership Development Programs: A source of disadvantage? • Development models assumed to be gender neutral, but • Most LD programs and informal coaching reinforce skills women are already good at (Engage Others) when… • 50% of criteria used in evaluating C-level candidates are in areas of business, strategic and financial acumen (Outcomes) – areas in which bosses rate men as outperforming women Study postulates a three-part leadership definition in which women are “missing 33 percent” From Talent Development and Women’s Advancement: 4 Ways Gender Bias Constricts Your Talent Pipeline, a study led by Susan L. Colantuono, CEO, Leading Women.

24. Embedding D&I in Talent ManagementProcess: Adding a D&I Lens to Talent Metrics Pipeline Succession Plans Talent Development Adapted from one client’s approach to linking TM and D&I.

25. Objectives of Leaders in High-Performing D&I Companies Stress TM Responsibilities • Other companies High performing D&I companies Source: Senior Leader Impact on Diversity: What Really Works? Study conducted by ORC Worldwide for Industrial Relations Counselors, Inc., 2008

26. Accountability Case Example 1: Financial Services • Premises: • Increasing sales of financial services offerings is the desired outcome – the numbers are what matter in our environment • We hire the best of the best, but they are not all producing at the same level • We are wasting money, time and talent by not managing all employees to maximize productivity and success (theirs and the organization’s) • We evaluate and reward managers based on financial outcomes • Solution: • Create metrics that drive the desired underlying managerial behaviors related to productivity from diverse teams, AND • Tie results directly to financial rewards

27. Accountability Case Example #1 (continued) Goals and means for achievement: Promote metrics-based results Enhance accountability Establish clear direction for managers Ensures manager focus 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 targeted minority groups • Changes to team representation • Growth in $ results of diverse employees • Results of diverse employees versus results of unit overall

28. Metrics Case Example 2: Sodexo

29. Building the Talent Management Foundation for Diverse Leadership • Implement • Track • Assess

30. 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.