Track and compare development opportunities offered to members of monitored groups and compare with development opportunities offered to individuals who are not members of a monitored group (refer below). One of the strategies behind quotas is about solving D&I problems from the top: The acceptance of quotas varies across the countries with actual inclusion being one of the main challenges. For example, women-owned, or Indigenous-owned businesses. Weakness: Organisation-wide representation measures can obscure biases related to function, role or department. Let’s start with a general introduction to the idea of Diversity and Inclusion (D&I). I’ll use the Balanced Scorecard as a framework to articulate the D&I strategy. Significant limitations in adaptive skills — the basic conceptual, social and practical skills needed for everyday life 3. Ideally, you will have baseline measures to track the impact of that initiative. Disability began before age 18 Different functioning may affect an individual’smemory, problem-solving abilities, attention, communication, linguistics, a… To automate this, we can set the “Update interval” to quarters so that the software reminds us about upcoming update time. Strength: Useful for identifying bias in assessment and selection. However, gender diversity is at different stages of maturity in different parts of the world and across industries and metrics must reflect that. Description: Tracking promotions awarded to individuals from monitored groups compared with promotions awarded to individuals who are not members of a monitored group. Surveys are the perfect tool for measuring the feelings and opinions of your workforce at scale. Involuntary attrition that is overrepresented in a monitored group is indicative of conscious or unconscious bias and should be investigated. See, for example, a study by Catalyst[2] or the report summarized in this HBR article[3]. An organisation’s diversity and inclusion metrics should serve three purposes: diagnose risk areas and opportunities, track the progress of initiatives, calculate return on investment. Because every organisation faces unique diversity and inclusion challenges in the context of its business strategy, no two employers will utilise the same metrics. A noticeable difference in engagement scores among different identity groups can be indicative of biased mindsets and practices that favour one group of employees over others. Diversity and inclusion initiatives are powerful drivers for the business, but only if they are aligned with the business. The reason is that inclusion is a feeling, and as any feeling, it is hard to quantify it objectively. For example, for the procurement scorecard, we agreed that the success of the procurement department depends on the diversity of skills (internal diversity) and on the diversity of suppliers (external diversity). To elicit a behavioural change, people must have a clear idea of what is expected from them. In their turn, diverse talents can become an inimitable competitive advantage for a company. Improvements: Track promotion applications from members of monitored groups compared with promotion applications from individuals who are not members of a monitored group. Description: An interview held with an employee about to leave an organisation, typically to discuss the employee’s reasons for leaving and their experience of working for the organisation. Improvements: Analyse pay and rewards across rank and function. In this perspective, we’ll talk about the skills and the infrastructure needed to make the diversity and inclusion strategy possible. Because of the risk of non-completion by employees who are not-engaged, findings must be supplemented with exit-interviews. diversity and be accountable for the results 1. Review policies and practices to identify and remove systemic barriers to inclusion 2. Some will be dictated by the local regulations (see the part about quotas), some will be part of a reporting framework commonly used in the company’s business domain. Diversity and inclusion metrics are used to identify risk areas, prioritise initiatives, set targets and other program goals, assign accountability, and measure the impact of initiatives. Description: Tracking lateral moves, appointments to acting roles, training and other learning and development participation, and other stretch assignment opportunities by identity group. For example, one of our diversity-related values is “hire talents globally.”. Another important idea is that the diversity targets should be realistic. When inclusion efforts are undertaken to improve engagement, it is useful to show how increases in engagement scores translate to increased productivity by measuring output per employee or profit per employee. Once implemented, organisations must track the progress of their efforts. Organisations will typically measure diversity dimensions for which data is readily available, namely gender. For example, for the external customers, we can take some marketing metrics: For internal customers, we can align the D&I scorecard with, for example, a procurement scorecard by linking to these indicators: Looking at the expected benefits of diverse and inclusive business environments, we can formulate these goals: Let’s start with the indicators for inclusion. Introduce diversity and inclusion early on in the employee’s cycle. Race is the predominant diversity issue in the United States and South Africa. Strength: Potentially candid source of information on the lived experiences of employees who are voluntarily leaving the organisation. While we let Diversity of all other types happen naturally there is one aspect we would actively like to impact: Gender Diversity. A company can ensure diversity (for example, by the quotas), but what actually matters is if people stay and get promoted in the organization. Description: Facilitated focus groups for the purpose of gathering information on the issues and challenges facing diverse talent. Strength: Useful for identifying bias in development. 10 Diversity Statement Samples Without clear and robust measures to track diversity and inclusion efforts and outcomes, a tendency to revert to habitual and ingrained thinking and behavioural patterns limits the returns from an organisation’s investment. The metrics can be: The strategy scorecard that we discussed above is just a starting point for your own strategy. Track the time it takes for members of monitored groups to progress compared with non-monitored individuals. Weakness: Disenfranchised employees may not volunteer for focus groups. *Editor’s note: Download our full Diversity and Inclusion Handbook for more than 70 pages of tangible strategies to help you cultivate diversity and inclusion on your team, including diversity goals and objectives. Check out this article for inspiration: Best Diversity and Inclusion Videos. To be repeated annually. As a result, programs stall at the diversity stage and founder on inclusion because inclusion is both qualitative and subjective. The unique legal, historical, political, and cultural environments of different nations and regions determine which diversity issues are relevant. • Each DG Group to identify equality, diversity & inclusionaims & key performance indicators for their directorate using consultations with staff. This does not, however, relieve the company of its ethical obligation to ensure that data is not used  to discriminate against employees, clients, or suppliers. 1 Farrer Place When defining any strategy, we need to understand the causality, find success factors, and understand better expected outcomes. What is obvious is that the economic sustainability of an organization can be predicted on their D&I achievements. Even properly organized surveys will not show an objective picture because of survivorship bias. Also, does not track whether members of monitored groups are being developed or promoted at the same rate as non-monitored individuals. To reflect this idea on the strategy map, let’s use a generic financial goal, for example: An alternative approach is to quantify the expectations of the stakeholders (like we did on the non-profit scorecard for community interests) and focus on the value created. Being an inclusive organization is no longer a proactive initiative. Let’s discuss a strategy to improve Diversity and Inclusion in an organization. In recognition of Diversity Month, we asked our own Employee Resource Group leaders for some tips and action items for managers and HR leaders to help build a diverse and inclusive culture at work. The answer to this question can be a good starting point to improve things. We found 25 examples of diversity goals from top companies aiming to boost diversity, inclusion and belonging in the workplace. Goals help individuals to focus their efforts in a particular direction. Description: Compare employee engagement scores for individuals from monitored groups with scores reported by individuals who are not members of a monitored group. Since 1999, we have helped to stimulate organizational change by showcasing the visionary leadership, innovative programs, and committed individuals who are making it happen. In the customer perspective, we traditionally map the needs of the customers. If there is no specific strategic goal behind diversity, then use demographic and other statistical data to make sure that the diversity targets reflect equal representation. tap-on-the-shoulder, employee referral programs, graduate internships limited to only some universities). While there is no hard and fast rule on the frequency of reporting diversity and inclusion metrics, ideally diversity reports should be published at least yearly. We've been asked for examples of diversity statements many times; below are several great ones. KPI : Fujitsu Group aims to achieve at least Consolidated 69% from 66%(FY2019) / Non-consolidated 63% from 59%(FY2019), in favorable answers to Diversity and Inclusion … Further, disengaged employees may not complete the survey, skewing the results. In the best case, it becomes a part of the company’s culture. Mentoring programs are becoming an increasingly important diversity and inclusion initiative as they encourage the type of activity and … A metric in this case can be formulated as: While this approach gives some numbers, it is far from being perfect. Building a company without workplace diversity is like weaving a tapestry with only one thread: ineffective and probably a little boring. Organisations should remain alert to the possibility that not disclosing a metric may erode trust more than disclosing a potentially unfavourable metric. What is clear is that the hiring process needs to be adjusted according to the D&I strategy. Sharing results externally can also be valuable for industry benchmarking and strengthening employer brand and an organisation’s reputation in the marketplace. Let’s discuss how to combine various ideas about diversity and inclusion into a coherent strategy. Other metrics used to track progress include membership of employee resources groups, participation rates in formal mentoring programs or sponsorship schemes, participation rates in diversity and inclusion training programs, diversity awards, positive press. Having a more diverse workforce is a leading factor for better understanding the needs of different groups of customers. This fosters trust and encourages accountability. It is important to note that diversity statements are truly optional, and not everyone should write one. Organisations manage this through surveys seeking voluntary disclosure of sensitive information. It is important to assign responsibility for reporting the findings are well as to define the process for responding to findings. Strength: Useful for identifying bias in compensation and reward schemes. In certain jurisdictions, it is illegal to capture sensitive information without an individual’s consent. Diversity in ideas is a leading factor for innovations. In fact, diversity & inclusion (D&I) is increasingly becoming a component of companies’ employee recruitment and customer branding strategies. In this sense, it’s not enough to define the high-level D&I strategy; the company’s management needs to understand how defined goals can be cascaded throughout the organization. While we are now equipped with KPIs and a strategy map, it always makes sense to put those business tools aside and ask a simple question: Do the indicators and the initiatives that we introduced actually create a positive change that we expected? For example, we can focus the measurement of diversity on one of the following dimensions: How to select these dimensions? Diversity and Inclusion are often named as a driver factor of innovations. Strength: Focus groups complement workforce analytics, providing additional information that cannot be acquired from quantitative analysis alone. Presenting hard-data financial evidence of costs and benefits fosters a more objective, rational, and productive consideration of diversity challenges and opportunities. For diversity dimensions that are not tracked by an organisation, because of historical or legal reasons, focus groups are a key tool for gathering information on the challenges facing members of those groups. Supplement existing survey items with questions that specifically tap diversity and inclusion concerns. The Diversity Dashboard is a project management software tool that helps diversity and inclusion professionals understand, publish and defend their work. Let’s discuss a strategy to improve Diversity and Inclusion in an organization. Users of BSC Designer will find the “Update interval” feature in the “Initiatives” dialog for this purpose. We discussed how to define the dimensions for diversity. A Strategy Template with KPIs for Diversity and Inclusion. Setting diversity targets and goals is difficult and needs to be done with caution. Diversity and Inclusion Having created a slogan to “love the differences,” Shiseido endeavors to build a corporate culture that respects the diversity of its workforce, irrespective of gender, age, nationality and any other individual attribute, and encourages dynamic discussions aimed at creating new value. Improvement: Solicit voluntarily disclose by respondents of identity, such as race, culture, sexual orientation, gender, age, parental status. A pool of talents seems like a diverse one, but in reality, the organization simply makes the numbers look good without making any tangible impact. Learn how to build, nurture and lead inclusive and diverse teams. Examples of business-specific diversity dimensions include: Diversity metrics must be relevant to the local context and business leaders. For the organization, it means an opportunity to adjust internal diversity and serve those customers better. This indicator is for measuring the Diversity aspect of our Recruitment process; To measure current Diversity of our workforce in terms of Gender, Nationality, Religion, Age, Culture and Language. Inclusion ensures that those ideas will find their way in the innovation process (will be heard -> will be valued -> will be tested and prototyped). Diversity and inclusion are critical elements of every recruitment and retention strategy. Regularly measuring progress enables an organisation to assess whether it is headed in the right direction towards the achievement of its goals. Description: Track internal and external grievances, complaints, and law-suits by identity group. If your organisation is endorsing diversity and inclusion for the purposes of improving its performance, whether financial or non-financial, it’s important that you have metrics in place to track how successful your efforts are in achieving those goals. We support our clients with education for management and employees, advice on how to assure the quality of the recruitment process from a diversity and inclusion perspective, develop policies, make compensation surveys, KPI’s for gender equality and diversity, and support you in your work with the Active measures of the Discrimination Act. Organisations can waste valuable resources by targeting the wrong diversity problems and by implementing the wrong solutions. Strength: Helpful for identifying consumer segments are not being served by your business and groups that are experiencing sub-optimal, prejudiced or discriminatory service. To measure this goal, we can use metrics from the innovations scorecard: If you are looking for some more light-weight innovation framework, check out my recommendations in the “Agile Scorecard” article. Organisations that have experienced a diversity failure or missed their diversity targets should respond honestly and sincerely, outlining a plan for rectification. Another idea in the context of automation is to visualize such indicators on the performance dashboards. Robin Pedrelli is the co-founder and partner of VisionSpring, Inc. VisionSpring, Inc. is a WBENC certified, women owned and operated diversity and inclusion consulting firm offering fully integrated strategy development, workforce planning, training and continuous learning solutions to leverage diversity and inclusion to drive innovation and improved business outcomes. Here is another proxy metric for inclusion: To understand the effectiveness of the D&I strategy, we are interested in seeing how this metric will progress over time. Sydney NSW 2000 The steps are: (1) Determine the measures involved in the pillar’s calculation (see Appendix: ESG measures used for a mapping of measures to pillar). Will those ideas be heard? Specific- Your goal should be unambiguous and communicate what is expected, why it is important, w… Weakness: Existing engagement surveys may not include specific questions relating to diversity and inclusion. To be built into the DECC group performance review and subject to the same reporting and accountability cycle. Supplement existing survey items with questions that specifically tap diversity and inclusion concerns. Giving examples of your employee resource groups (like Stanley Black & Decker) is a great example of that. like VMware’s CEO on CNBC (see below)). In Lever’s onboarding session, we deliberately exclude any kind of “teaching,” like defining privilege, dropping a bunch of stats, or talking about the latest diversity and inclusion issues in tech, so that we don’t overwhelm. Strength: Useful for identifying groups that are underrepresented in the organisation usually as a result of conscious or unconscious prejudice, stereotypes, or discrimination across the employee life-cycle. The resulting data must also be analysed to assess what is working and what isn’t with the findings used to determine what modifications or additions to the initial action plan are required. We will follow up with you with lessons about the Balanced Scorecard and will keep you informed about the trending articles on bscdesigner.com, Diversity and Inclusion Strategy Scorecard, Diversity and Inclusion: Strategy Scorecard with KPIs. Examine and learn from best leadership practices from Pakistani and international organisations in terms of promoting diversity and inclusion. Link D&I scorecard with other scorecards, like scorecards for. The labour market is becoming more diverse[1]. For example, comparing the number of applicants from monitored groups that make it to interview stage pre- and post-intervention. Instead of complex metrics, focus on just one: Instead of a formal innovation pipeline, create an innovation sandbox where members of your team can try new ideas without the need to rationalize their potential value. At a minimum, adaptation should occur nationally, but regional changes should also be considered, where appropriate. Description: Track the diversity of your suppliers by identity group. The Civil Service is at its best when it reflects the diversity of the country as a whole and is able to understand what the public needs. Follow those ideas to have a long list of metrics for diversity. Improvements: Exit interviews are beneficial only if there is a system in place for reporting on and responding to findings. Facilitated focus groups for the purpose of gathering information on the issues and challenges facing diverse talent, organisation is endorsing diversity and inclusion for the purposes of improving its performance, Return on investment metrics translate soft skills into hard returns that align with business goals and the concerns of leaders, ultimate goal of your organisation’s diversity and inclusion efforts, A government department seeking to deliver policy solutions to improve the lives of members of an ethnically and linguistically diverse community, A media distribution company with aggressive growth targets in Asia extends its diversity metrics to include individuals born or raised in Asia, A start-up seeking to improve retention through the implementation of a flexible work policy extends its diversity metrics to track employment status and tenure, A health insurer seeking to deliver better customer solutions extends its diversity metrics to, A large financial institution seeking to rebuild trust through its corporate social responsibility efforts extends its diversity metrics to include immigration status, A mining company seeking to improve the retention of women through the implementation of a flexible work policy extends its diversity metrics to track employment and parental status, “Employees are valued for their differences and their unique contributions.”, “Employees can voice their opinions without fear of retribution or rejection.”, “People are rewarded fairly according to their job performance and accomplishments.”, “I have confidence in my company’s grievance procedures.”. Strength: Helpful for identifying recruitment barriers. In a later section, we’ll get into all the benefits of creating a diverse and inclusive workplace, but let’s start with a … In China, there is an urban versus rural division as well as a Western-educated dominance in leadership teams. AUSTRALIA, © 2018, Culture Plus Consulting Pty. For example, do men, on average, earn more at your organisation (or department or workgroup) than women earn, over average? Description: Compare customer diversity to internal, industry or market benchmarks. Many organizations prefer to report their achievements according to the Sustainable Development Goals 2030 by the UN. I’ll add this as an initiative for the “Diversity and Inclusion” goal: How to set the target values for the diversity metrics? Track customer experience and loyalty by diversity dimension. Concerns of confidentiality and low psychological safety may also limit attendance. The information may not have been disclosed before resignation due to a fear of recrimination or weak organisational justice. Weakness: Although useful for highlighting which groups of employees leave the organisation sooner than others, measures of retention, per se, do not provide information regarding the reasons why some groups of people leave before others. You would be surprised the answers and looks we often get. When we value diversity we do not try to make all of us the same instead we embrace the differences that make each of us unique. Culture, Diversity & Inclusion Manager 02/2011 to Current Vanguard Malvern, PA. Drive the agenda forward to increase employee engagement and make the Company a best place to work. Not coming clean on a poor metric out of concern of employee backlash might do more harm than good. Well-defined and measurable goals are particularly important in diversity and inclusion because, as noted at the beginning of the article, without goals, our automatic and hidden tendencies that preference some over others would easily override our conscious intentions to be fair. However, in order to determine whether a diversity program is working, you need to clearly define success for said program. When rank is not indicative of management responsibility (for example, rank reflects technical expertise as well as management responsibility), organisations may measure the number of people reporting to members of monitored groups because it offers a more accurate measure of leadership representation than representation by rank. If you have already started your program without taking a baseline measure, however, you can compare your metrics to results reported in other parts of the business or industry benchmarks. 1. Depending on business goals, leading organisations extend diversity measurement to race, ethnicity, nationality, educational attainment, tertiary institution, professional expertise, tenure, age, disability and health status, sexual orientation, family status, carer and parental status, employment status (full time, part-time, flexible working), immigration status, faith, veteran status, English proficiency, languages spoken, etc. If those ideas are taken seriously (=inclusion), an organization will enjoy some performance improvements. Negative messages are best delivered by the CEO. Ultimate accountability for diversity and inclusion should be at the level of the CEO and the Board of Directors. Weakness: Like-for-like pay equality (equal pay for an equal role) obscures inequality in opportunity. Felicity also holds a Bachelor of Commerce and a Bachelor of Arts in Psychology. What is obvious now is that organizations that aim for diversity and inclusion should revise their processes of board recruitment/succession planning. Whether you are looking for a professional Balanced Scorecard software, or just researching information about Balanced Scorecard and business strategies, we recommend you to download and try our BSC Designer software (no credit card is required). However, merely tracking and reporting diversity and inclusion metrics is not sufficient. For organisations seeking market growth from their diversity efforts, market share and revenue are relevant for measuring return on investment. Where possible, an analysis should also be performed at the level of intact teams because it is only when work teams are diverse, that an organisation is truly positioned to leverage diversity of thought and background. One way to measure inclusion is to use surveys. For example, an employer may achieve gender balance in representation overall, however, closer analysis reveals that men dominate higher-paid technical specialist, revenue-generation, and leadership roles, whereas women occupy lower-paid administrative, support, and individual contributor roles. For example, findings are analysed by Human Resources and reported to the Diversity Committee who are tasked with responding to the findings with an action and accountability plan. Improvements: Reasons for weakness in applicant diversity should be gathered from employee focus groups, review of job advertisements (bias detection software may be useful), surveys that assess quality of employer brand, and analysis of recruitment strategies for bias (e.g. Training on: The training goal for the strategy map can be formulated as: In terms of performance measurement, the efforts part can be quantified and measured by: As for the results, it’s interesting to look beyond the basic test scores and analyze if the actual behaviour patterns have changed. Description: Compare the quality and strength of your employer brand among different identity groups. Effective diversity management requires adaptation in metrics to reflect different contexts. Goal setting theory (Locke and Latham) posits that motivation and task performance are positively correlated with setting specific and measurable goals. If an organization wants to leverage the benefits of diversity and inclusion, it needs to align diversity dimensions with their strategy. Felicity has over 15 years of experience working with and managing diverse workforces in blue chip companies and is a Fellow of Chartered Accountants of Australia and New Zealand. As for the inclusion, HR contributes in the form of training and better representation of minorities on the management roles, but the final results depend on people from other departments that will or will not create a feeling of inclusion for their colleagues. The metrics above help organisations to identify risk areas and prioritise initiatives. For example, measuring gender diversity for software engineering roles or leadership positions offers greater insight into risk areas and opportunities. Making the hiring process less bureaucratized and more transparent will certainly lead to a better diversity of the candidates. Calculating diversity / inclusion / people development pillar ratings The diversity, inclusion and people development pillars all use the same methodology to calculate the pillar ratings. In the context of a strategy scorecard, it means that all indicators should be updated and analyzed periodically. This is achieved only through dialogue with local leaders and employees. Return on investment metrics translate soft skills into hard returns that align with business goals and the concerns of leaders. Examples of Successful Diversity Statements 13 June 2017 on Examples, Admissions, Diversity Statements. Leading organizations now see diversity and inclusion as a comprehensive strategy woven into every aspect of the talent life cycle to enhance employee engagement, improve brand, and drive performance. Retaining the best case, it is hard to measure inclusion is a,. They must map progress towards the achievement of your program goals improvement True! 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