Post on 05-Mar-2018
Building Inclusive Workplaces:
Accountability and Metrics Principles
© Exponential Talent LLC 2015. All rights reserved.
Accountability is a critical change mechanism
• A series of academic studieshave found that accountabilityis a critical element necessaryto improve diversity (e.g. Kalevet al., 2006; Gorman, 2005)
“Our company’s experience thus far suggests that a committed chief executive and C-suite are essential to telegraph the importance of the effort. When senior leaders engage with something, others are encouraged to make individual commitments, establish shared goals, and accept collective accountability.”
~ Beth Axelrod, SVP, eBay and Michelle Angier, Global Leader Women’s Initiative, eBay in the McKinsey Quarterly
© Exponential Talent LLC 2015. All rights reserved.
Example of accountability structure
CEO
Executive / Functional Leaders
D&I Initiative / D&I Leaders (Committee, Council, etc.)
• Accountable to Board of Directors through CEO annual goals
Accountable to: • Deliver results in their organizations• Take executive actions (e.g., sponsorship)• Demonstrate inclusive leadership• Hold others accountable
Accountable to: • Identify root causes• Recommend & implement strategies• Collaborate on corporate-wide
actions
Managers D&I Change Teams &
Communities
© Exponential Talent LLC 2015. All rights reserved.
Accountability Case Example: eBay Global Women’s Initiative
Goals:
• All open leadership positions should have a diverse slate of candidates and interviewers.
• Top-talent women, at every level, should have career-development plans and discuss them with their managers.
• Leaders should monitor the diversity of their promotion pipelines to ensure fairness.
• Each senior vice president and vice president should help to develop top-talent women by mentoring or sponsoring five of them.
• The company would continue to measure progress on our demographics regularly.
Goals for:
• CEO
• Senior vice presidents (about 20 of the most senior leaders)
• Vice presidents (about 170 leaders)
Source: Michelle Angier and Beth Axelrod, “Realizing the Power of Talented Women,” McKinsey Quarterly.
© Exponential Talent LLC 2015. All rights reserved.
How do metrics help?
MEASURE ACCOUNTABILITY
Align leaders. Measure progress.
Celebrate small wins.
LEARN AND IMPROVE
Continuously refine practices to
increase effectiveness.
FOCUS ON HIGH IMPACT
ACTIONS
Target “root cause” issues to accelerate
progress.
MOTIVATE CHANGE
Motivate action by benchmarking to
other organizations.
© Exponential Talent LLC 2015. All rights reserved.
Principle #1: Measure both Diversity and Inclusivity to fully capture the ability to produce innovation
Change Metrics
Diverse Mix Enables innovation
Inclusive Culture Produces innovation
Representation - Recruitment - Retention - Advancement
Inclusive Culture
Equalizing
Mattering
Belonging Interacting
Succeeding
© Exponential Talent LLC 2015. All rights reserved.
Principle #2: Assess the full pipeline to identify critical gaps and target improvements
Overall representation:
22%
Overall company-wide representation percentages can obscure pipeline dynamics and hide issues
28%
22%
12%
8%
0% 0%
5%
10%
15%
20%
25%
30%
Entry Level
MidLevel
Dir/Sr DirLevel
VP/SVPLevel
ExecLevel
10 pt drop (46%)
0%
4 pt drop (33%)
6 pt drop (21%)
8 pt drop (100%)
© Exponential Talent LLC 2015. All rights reserved.
Principle #3: Benchmark your organization
Representation
Organization Area Women Bench- mark
Org Area
Asian Bench- mark
Org Area
Black Bench- mark
Org Area
Hispanic Bench- mark
Org Area
Product Mngt % % % %
Marketing % % % %
Finance % % % %
Human Resources % % % %
Technology % % % %
%
%
%
General guideline: representation equal to labor market availability should be within reach for each area of the business.
% % % = Above Benchmark Range = Within Benchmark Range = Below Benchmark Range Legend:
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
© Exponential Talent LLC 2015. All rights reserved.
Principle #4: Drill down to actionable insights
Diverse Mix Representation %
Recruitment (hiring metrics)
Retention (turnover metrics)
Advancement (promotion metrics)
© Exponential Talent LLC 2015. All rights reserved.
Example: Heat map
Entry Level
Mid Level
Dir/Sr Dir Level
VP / SVP Level
Exec Level
Recruitment
Retention
Advancement
% % %
%
%
% %
% %
%
%
% = Increase
Year over year = No change
Year over year % %
= Decline Year over year
Demographic Group XXX: Year Over Year Change
%
No activity
%
%
© Exponential Talent LLC 2015. All rights reserved.
Example: Finding the root cause may require additional one-time analysis
Diverse Mix Representation %
Recruitment (hiring metrics)
Retention (turnover metrics)
Advancement (promotion metrics)
• Sourcing • Screening • Interviewing &
making offers • Gaining offer acceptance
• Engagement survey • Exit interviews • Compensation analysis • Focus groups
• Performance • Assignments • Networks • Career advancing
relationships • Interviews
Examples of Data Reviews to Drill Down to Root Cause
© Exponential Talent LLC 2015. All rights reserved.
Principle #5: Overweight leadership gains
• Greater under-
representation at the top
intensifies diversity
dynamics, making gains
more difficult
• Increasing diversity
representation at the top
produces a “cascading
effect” over time, increasing
diversity at all levels.
© Exponential Talent LLC 2015. All rights reserved.
8 of 14 metrics are for leadership levels, creating more weight on these roles
Recruitment
Retention
Advancement
% % %
%
%
% %
% %
%
%
% = Increase
Year over year = No change
Year over year % %
= Decline Year over year
Demographic Group XXX: Year-Over-Year Change
%
%
Entry Level
Mid Level
Dir/Sr Dir Level
VP / SVP Level
Exec Level
% n/a
© Exponential Talent LLC 2015. All rights reserved.
Stem losses: secure level of hires, promotions, and
retention at current representation
Lead the industry
Achieve benchmark: be as good as your average competitor
Lead: Aspire to greater gains and
achieve competitive differentiation
Stop erosion and start to
gain
Achieve industry average
Step 1
Step 2
Step 3
Principle #6: Create a journey of sustainable change
© Exponential Talent LLC 2015. All rights reserved.
Principle #7: Develop both “leading” and “lagging” indicators
Short-term: Successful delivery
of actions
Long-term: Key metrics for
Diversity & Inclusivity improvement
LEADING INDICATORS LAGGING INDICATORS
© Exponential Talent LLC 2015. All rights reserved.
Example: Leading and lagging indicators
Measure Action Completion: - Executives
sponsor diverse managers to a director position
Initiate Action (Action Scorecard)
Intermediate impacts (One-time Survey)
Measure Increase in: - Leader advocacy - Visibility to
senior leaders and network connectivity
- Access to stretch assignments
Measure change in top level metrics: - Higher
representation - Increased
advancement - Improved
retention
Short term: Medium term: Long term:
Metrics change (Metrics Scorecard)
© Exponential Talent LLC 2015. All rights reserved.
Example: Action scorecard
Action Scorecard (“Leading” Indicators)
Action 1
Action 2
Action 3
Action 4
Target Actual
Tip: Use a format that is similar to how business initiative progress is typically reported in your company. An example is shown. Formats vary widely by company.
Legend: Action delivered
Action delayed
© Exponential Talent LLC 2015. All rights reserved.
Principle #8: Leverage employee surveys to gauge inclusive culture
Inclusive Culture
Equalizing
Mattering
Belonging Interacting
Succeeding
Exponential Talent’s Inclusive Culture model can be used to create an Inclusion sub-index from an employee survey.
© Exponential Talent LLC 2015. All rights reserved.
Gauge inclusiveness through a fairness review
Inclusive Culture
Equalizing
Mattering
Belonging Interacting
Succeeding
Audit people process outcomes to check for fairness. Most companies can review: • Performance ratings • Compensation • Promotion
Some companies can review for some areas of the business: • Critical assignments
Note: Exponential Talent LLC cannot provide legal advice regarding fairness audits. It is recommended to consult with legal counsel on specific legal protocols for your organization. We can provide analytical tools and services.
© Exponential Talent LLC 2015. All rights reserved.
Example: Dashboard
Metrics (“Lagging” Indicators)
Diversity
Improvement by Level YOY
Improvement vs. Benchmark
Prior Current
Inclusivity
Overall Representation 3 of 5 levels red Below Below
Prior Current
6.9 7.5
Change
0.6 pts
Change %
9% Inclusion index (employee survey- all)
Action Status (“Leading” Indicators)
Action 1
Action 2
Action 3
Action 4
Target Actual
Legend:
Action delivered Action delayed
% = Increase YOY = No change YOY % % = Decline YOY Legend:
At Above
Below At
3 of 5 levels green
3 of 5 levels green
Women
Asian
Black
Hispanic 3 of 5 levels red At Below
© Exponential Talent LLC 2015. All rights reserved.
YOY = Year Over Year
Women
Asian
Black
Hispanic
5.5 5.8 0.3 pts 5%
5.6 5.5 -0.1 pts -2%
4.9 5.4 0.5 pts 10%
5.3 5.0 -0.3 pts -6%
© Exponential Talent LLC 2015. All rights reserved.
Summary of design principles
MEASURE ACCOUNTABILITY
Align leaders. Measure progress.
Celebrate small wins.
LEARN AND IMPROVE
Continuously refine practices to
increase effectiveness.
FOCUS ON HIGH IMPACT
ACTIONS
Target “root cause” issues to accelerate
progress.
MOTIVATE CHANGE
Motivate action by benchmarking to
other organizations.
• Measure both diversity & inclusivity.
• Assess each level of the pipeline.
• Overweight leadership gains.
• Drill down to actionable insights.
• Leverage employee surveys to gauge inclusive culture.
• Benchmark your organization.
• Create a journey of sustainable change.
• Create “leading” as well as “lagging” indicators.
• Assess effectiveness of changes to identify what works and what does not.
© Exponential Talent LLC 2015. All rights reserved.
Tips
• Tailor to your business
• Align metrics design and purpose
• Avoid “paralysis through analysis”
• “Don’t let perfection be the enemy of the good”
• Keep the focus on how best to drive change
Exponential Talent LLC Website: www.exponentialtalent.com Molly Anderson Founder & President, Co-Author, The Corporate Lattice Email: molly.anderson@exponentialtalent.com Caroline Simard Co-Leader Email: caroline.simard@exponentialtalent.com
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