Putting Global Diversity
into Practice
An interview with Michael Wheeler, president, OEStrategies Inc., an organization that helps companies implement strategic human resources systems in support of organizational performance enhancement.
What are some of the best practices related to global diversity?
The best practices are based on the imperative of thinking globally while acting locally and thinking locally while acting globally. In other words, a best practices company would have strategies and policies in place that allow for local flexibility, while maintaining a worldwide commitment to creating a work environment of inclusion and respect. Respect is a value that may appear differently across cultures, but is the cornerstone of any effective global diversity initiative, business operation or political diplomacy. Inclusion is a practice and value that eliminates barriers to the full engagement of all employees.
Specific best practices I have seen include IBM’s global diversity initiatives and their dedication to women and work-life balance. IBM has involved women from around the world, held global events and committed to diversity by providing new opportunities and growth for women. IBM recognizes diversity as a competitive advantage and opportunity.
ChevronTexaco’s commitment to diversity includes a global diversity action plan for managers and employees. That action plan makes diversity an inherent part of doing business, and it is also a key part of employee goals and objectives. The company has ensured that managers and employees worldwide understand the opportunities and actions necessary to help everyone succeed. Chevron was the first major petroleum company to offer domestic partner benefits. It also houses networks and affinity groups that focus on mentoring, employee development, and support for the company’s diversity objectives.
We have seen HSBC’s commitment to global-diversity best practices in its recent cutting-edge advertising campaign commercials. Those spots feature global messages that demonstrate the power of difference and different perspectives on life and business.
How have those best practices been implemented successfully?
The companies that have successfully implemented best practices were able to do so by making a formal commitment to global diversity. They engage employees from around the world to better understand what is necessary for establishing global diversity. They are willing to push the envelope across different cultures, respecting local traditions and values, while challenging assumptions and ensuring a commitment to inclusion of those who may have traditionally been excluded or had limited opportunities.
Those companies also recognize that there is no single right way to do something but instead, many ways to achieve respect and inclusion, and therefore, success. What best practices companies tend to have in common is the vision to see diversity as a competitive advantage rather than as simply a compliance/legal requirement.
What errors are made in attempting to implement global diversity initiatives?
Diversity and inclusion must be a way of doing business, not just a program or single intervention. One error sometimes made is the failure to create global teams—to engage employees worldwide—to ensure that all perspectives are included in developing a business strategy. Sometimes the failure is in the actual—or perceived—approach of pushing the U.S. model of diversity onto other countries and cultures. Or, it is the failure to respect local cultural traditions. Sometimes the power of cultural diversity is underestimated by American companies. Some companies fail to clearly define, outline and communicate their diversity and inclusion initiatives in a truly global sense and this ultimately can result in misunderstandings.
What are some of the ways Corporate America can demonstrate its desire to be a good world citizen and maintain a commitment to diversity and human rights?
It’s important to remember that the right thing to do can also be the right thing for your business. Corporate America can demonstrate its commitment by being role models for best practices of respect, inclusion and leveraging diversity. We have a unique history, have made progress with corporate diversity initiatives, and we are still learning. However, companies in the U.S. should continue their progress in developing global competencies; take on challenges in the world where human rights are compromised, and partner with firms worldwide to create strong allies and relations across industries, economies and borders.
What should companies know about with regard to developing metrics for diversity around the world?
Metrics must be customized, in line with local legal requirements and should be results-oriented, as well as process-oriented. They should focus on driving behaviors that support diversity and inclusion. They should be clearly articulated, have meaning and be achievable.
From my perspective, legal requirements such as equal employment opportunity and affirmative action in the U.S. are a given and provide only a baseline requirement. A company can be compliant yet not be doing what it needs to do to create a work environment of inclusion and respect. A strategic model, in addition to compliance metrics, also includes metrics, goals and objectives for leveraging diversity for competitive advantage through leadership accountability.
A common model I like has four key measurement areas: creating diversity from top to bottom via recruitment and retention and team composition; managing diversity through accountability, behaviors, and competencies; valuing diversity through the work environment, inclusion, and internal and external public relations, and, leveraging diversity via bottom-line and shareholder impact.
A comprehensive scorecard should include metrics in all four of these areas. Measure must be process oriented as well as results oriented. Adding the cultural perspective to metrics also means recognizing and incorporating variations according to countries—even within countries—regions and cultures. So, again, it is essential to be cognizant of the “think global act local, think local act global” model. Organizations need to assess whether their business and managerial practices support inclusion and respect on a global scale.
What are some of the ways to increase understanding of multicultural issues?
Number one is firsthand contact and experience. The U.S. is a microcosm of the world. Virtually every nation and nationality is represented in the U.S. In most places here, there are opportunities in our own communities to be exposed to different cultures. On the business end, good diversity initiatives provide opportunities through special programs, affinity groups and other avenues of education to help people build relationships with those who are different from themselves. Global companies must have globally diverse leadership to ensure all perspectives are included.
Our weaknesses in business (and in our personal lives) are often found in our bias, discrimination, breakdowns in communication and the marginalizing of people without viewing their capabilities and potential. The power of the economic strength of the U.S. is in part due to its multicultural, multiracial and multiethnic population. This diversity has brought together perspectives, creativity and innovations, all sparked by the intersection of differences. But, this is a global issue and opportunity—not just a U.S. one.
Diversity and inclusion initiatives in the corporate world can provide us with a benchmark for becoming more productive and innovative, while positively influencing—through respect and inclusion—the world and communities in which we live and work.
Subscribe to our feed