Accountability and Metrics - Exponential Talent · PDF fileAccountability and Metrics...

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


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


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.


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.


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


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%)


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:

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%


Principle #4: Drill down to actionable insights

Diverse Mix Representation %

Recruitment (hiring metrics)

Retention (turnover metrics)

Advancement (promotion metrics)


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

%

%


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


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.


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


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


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


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)


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


Principle #8: Leverage employee surveys to gauge inclusive culture

Inclusive Culture

Equalizing

Mattering


Succeeding

Exponential Talent’s Inclusive Culture model can be used to create an Inclusion sub-index from an employee survey.


Gauge inclusiveness through a fairness review

Inclusive Culture

Equalizing

Mattering


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.


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


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%


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.


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: [email protected] Caroline Simard Co-Leader Email: [email protected]

FOR MORE INFORMATION:

http://www.exponentialtalent.com/

mailto:[email protected]

mailto:[email protected]

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