Changing the Face of Business
It's not managing diversity that's hard, says Annette Merritt Cummings. It's managing the change that goes along with it.
Diversity is not your typical Superman-in-a-phone-booth scenario. It doesn't change quickly, and you don't always encounter the heroics you were hoping for. But rest assured, without it, your organization could very well be in for some challenging times.
More and more executives are beginning to understand the business case for diversity, according to Bernard Hodes Group's Diversity Services guru Annette Merritt Cummings. They're just a little unsure of how to go about it.
According to Cummings, organizations need to approach diversity like any other business opportunity. And, like any other business opportunity, you need to have a strategic plan and the courage to follow it through.
We met up with Ms. Cummings to talk about her favorite topic.
Q. The business case for diversity seems to be straightforward. Isn't it pretty well understood by the CEO, CFO and VP of HR?
A. Most executives understand it's about tapping into emerging markets and building a representative employee base. But each business, institution or organization must develop a business case that's unique to their culture and vision, in order to gain acceptance by all of their employees.
Q. If most people agree that there is (or should be) a correlation between diversity in the workplace and an improved bottom line, why is it that so many corporate executives feel so far behind?
A. Because there's no quick fix. No one has come up with a direct correlation other than those related to retention and productivity gains. Diversity practitioners face the same dilemma as the organizational development, training or safety functions. We know they're valuable, but how do we measure their contribution to revenue?
Q. Doesn't leadership have an influence?
A. Definitely, but leadership changes frequently. Just when a company gathers momentum, leadership changes and core strategies change along with it. It's hard to keep up.
Q. Do most corporate executives believe they have a labor supply problem?
A. The visionaries see the problem as multi-faceted. It's about hiring, retention and promoting diverse talent, as well as tapping into emerging markets. It comes down to maintaining good relationships with employees, customers, the community, the public, government and investors.
Q. Are corporate executives struggling with other issues in implementing their diversity strategies?
A. Vendor or supplier diversity in procurement is top of mind for many executives. Some are beginning to use it as a level for change in attitudes towards minority and female vendors, as well as influencing internal diversity practices by their majority vendors. It's not so different from the tactics used by the Federal government with federal contractors.
Q. What's a good first step for a company that wants to achieve better diversity?
A. The answer is simple--change management. It's the implementation that's difficult. Follow the same process your organization applies to any business opportunity. We recommend a 360-degree process: assess, strategize, implement and measure. First, assess your current situation honestly, and then determine where you want to be.
Q. How do you measure how diversity is impacting revenue growth, profit growth and related financials?
A. A few very smart people have developed formulas for measuring diversity. I believe the metrics are different depending on the function. If you're the marketing and advertising department, how much are you spending with minority, female, gay and lesbian media outlets? If you're the real estate group, where are you locating your new stores? If you're the CEO, who is on your board and executive team? And, if you're HR, who are you recruiting and where are you looking for your next generation of leadership?
Q. Who is doing this well right now?
A. The “best of” lists that are developed by Catalyst, DiversityInc, Fortune Magazine and many others are good indicators of success. But it's a mixed bag. Some individual functions, business units or geographic locations may be better at managing change than others.
Q. So, there are companies who have proven the business case? Have shareholders responded?
A. If you're a futurist and concerned about the success of your company, the business case is relatively easy. Individual shareholders are usually only looking at bottom-line results, but activist groups and the big pension funds are definitely watching and applying pressure in many areas.
Q. Let's bring in the role of advertising communications. Who's doing this well?
A. Look at the industries. Retail, beverages, cosmetics, automotive manufacturers, pharmaceuticals, telecommunications, tobacco, and the U.S. Army. The global brands that are closest to the consumer, and have many years of experience in marketing, seem to understand the huge shift in the demographic makeup of the U.S., and the buying power of emerging markets, particularly Hispanics, African Americans and women.
Q. And what are they doing that is so successful?
A. They are running ads in Spanish and using images that resonate with a particular group's values, beliefs and behaviors. And they're developing HRPR efforts, as well as buying media that reaches these audiences directly, like radio, the Internet and niche publications.
Q. What about effectiveness? How can employers cut through the clutter of feel-good, obligatory advertising that's out there in targeted media outlets?
A. I don't knock the obligatory advertising. Employers just need help crafting the message and understanding the business case for diversity. The best thing to do is to consult with a professional who has experience in multicultural communications and understands your particularly needs and objectives.
Q. Which comes first, effective attraction of a diverse labor pool or effective programs to promote multicultural acceptance?
A. Valuing diversity and attracting a diverse labor pool should occur simultaneously. Training is clearly important in moving people beyond viewing diversity as only a compliance issue, but never underestimate the power of example and leadership. Just look at Tiger Woods and Colin Powell!
Q. What are the questions you hear most often from clients?
A. How do I start a diversity initiative? What are the first steps? What are best practices in diversity management and recruitment? How do I source diversity candidates in my areas? What conferences should we attend? How do we reflect a diverse customer base in our new store? What are the names of the local grassroots organizations and will they help us? What should my recruiters do to source diversity candidates? We need results immediately, what should we do first? The list goes on.
Q. How does our future look? How long will it take before diversity becomes a norm instead of an imperative?
A. I'm both an optimist and a realist. I'd say 25 years, if we're lucky.
Annette Merritt Cummings is vice president, national director, Diversity Services, Bernard Hodes Group. With over 25 years of experience in marketing and communications, Ms. Cummings consults with clients nationally to help them recruit and retain a diverse workforce. She graduated magna cum laude with a Bachelor of Arts in Communications from Cleveland State University, holds an MBA from the University of Detroit-Mercy, and has completed Diversity Practitioner training at both the American Institute for Managing Diversity and the National Multicultural Institute.
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