THE DIVERSITY AND INCLUSION VALUE MODEL
Creating Customer Value Through Diversity and Inclusion
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D & I Value Model… …the components of a successful D & I Process
At a high level Y= f(x)...where x1 to xn are the elements that affect Y
D & I ∫= OrganizationalComposition
+ OrganizationalCulture
+ Organizational Performance
•Workforce demographics•Promotions• Separations• Hiring
•Climate surveys•Employee surveys•EEO complaints•Grievances•Employee Turnover•Disciplinary actions
•Business objectives•Outcome metrics• Customer response time• Productivity• Profitability
OrganizationalMeasuresOf Success
•Career Goals•Experiences•Networks•Education•Talent•Skills
•Mentoring•ERG’s•Interdependent Teamsand Projects•Self- and Cross Accountability
•Current Job Goals•Performance Execution•Skill Development
IndividualMeasuresOf Success
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Measure Organizational Performance
Profits
Before After
Talent Acquisition/Turnover Costs
Before After
Internal & External Customer Satisfaction
BeforeAfter
Productivity
AfterBefore
According to Gallup Workplace Studies diversity and inclusion leads to employee engagement which creates better performance in the following KPIs• Profitability• Talent Acquisition/ Turnover• Customer Satisfaction• Productivity
Baseline each of the metrics before D & I implementation and measure during and after sustained implementation.
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Components of each Metric
Metrics co-developed by Gloria Cotton and Willie Carter
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Talent Acquisition and Turnover Costs
Disciplinary ActionsRecruitmentEmployeeTurnover
Customer Satisfaction
EEO ComplaintsMorale
Legal ConcernsGrievances
Productivity
Innovation
Impact on Profit
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PROFITS
Productivity
Customer Satisfaction
Talent Acquisition & Turnover Costs
Innovation
Morale
Grievances
Legal
Concerns
Recru
itmen
t
Em
plo
yee
Tu
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Linking Lean to D&I Process Current Organizational process
Evaluate current state for customer value creation Create Complexity Value Stream Map and identify
non-value-added (NVA) activities Identify cost impact of removing NVA activities
Redesign process –create waste free future state Simplify process by removing NVA (waste) Establish quantitative metrics and ways to monitor
progress
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Lean D & I
Linking Lean to D&I Process
Future Organizational Process Design process around speed and
simplicity and creating internal and external customer value
Establish quantitative and qualitative metrics and ways to monitor progress
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Lean D & I
Goal: Simplify the D & I Process
NVA
NVA
NVA
VAVAVA
NVA
NVA
NVA
NVA
NVA NVA
Input Output
NVA
NVA
NVA
VAVAVA
NVA
NVA
NVA
Input Output
NVA VAVAVA
NVA
Input Output
Current StateRed = Non-value-added stepsBlue = business non-value-added stepsGreen = Value-added steps
Future StateLower Work In Progress (WIP), non-value-add cost and lead time
Ideal StateLowest WIP, non-value-add cost, and lead time
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The Impact of the Eight Lean Wastes on Managing People Overproduction: Producing work or providing a service prior to
it being required or requested. Training employees far in advance of applying the newly learned skills
Waiting: Waiting for anything, people, signatures, or information Waiting to work together or postponing team formation to accomplish
a higher level of business performance; lack of empowerment, trust and appropriate authority
Motion: Extra steps taken by people. Any movement of people or information which does not contribute to adding value to the product or service
The wasted motion of focusing on people flaws and weaknesses rather than their strengths; not utilizing or developing strengths; creating negative competition
Transportation: Transporting something further than necessary; movement of work that does not add value
Scattered or unplanned routes connecting knowledge and application of the knowledge; not knowing or leveraging current resources
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The Impact of the Eight Lean Wastes on Managing People Over-processing: Putting more effort into work than is
required by the internal or external customer Spending too much time creating barriers to intellectual discourse
and team problem solving; using a “one-size-fits-all” approach in product development and marketing
Inventory: Excess inventory that is not required for current customer use
Excess/misdirected/incomplete information that do not directly support work being performed.
Defects: All the processing required in creating a defect and the subsequent activity required to correct it
Behavioral defects caused by disrespecting the differences in people
Underutilization of People: Not utilizing people’s skills and talents to the fullest extent possible
Not cross training employees; not knowing the skill, etc., having an environment where it isn’t safe to reveal strengths or needs
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Proposed Solutions for Eliminating the Waste of Our Human Resources Define the operational objective before
beginning to design your organization Determine how you want the process to work Actively drive organizational values throughout
the organization that address how individuals will work together
Understand the activities, connections, and flows (org, dept., and individual) of your processes
Build your organizational design around the most efficient ways to make those connections and flows work
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Proposed Solutions for Eliminating the Waste of Our Human Resources
Design your organization around the process that you want Prioritize the process flow around stable and predictable
outcomes Create behavioral competencies for each role that
demonstrate organizational values; link to performance standards and measures
Clearly understand the supporting activities and connections within the work.
Design your organizational structure, and the roles and responsibilities, around an understanding of the process, including exceptions and problems within the process.
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Customer Send RFQ
Sales Rep 1Start QEF
Check Inventory
Estimator Finish QEF
Sales Rep 2Generate Quotation
CustomerLog time
RFQ RFQ RFQ Q
QEF QEF
Proposed Solutions for Eliminating the Waste of Our Human Resources
Develop teams as a supporting structure Teams in a lean environment need the following:
A common drive provided by vision, mission, metrics, and goals; Link departmental, team, project and individual VMMG to those of the organization
A common language, common principles, and common tools while acknowledging, honoring and leveraging differences
They need to design the work around them, addressing all technological, learning and communication style needs (vs. visually alone) so that there is high agreement about what work must be done and how it should be done — and immediately exposing problems so that they may be resolved.
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Proposed Solutions for Eliminating the Waste of Our Human Resources
Establish and communicate the metrics These metrics should support daily decision
making The metrics should point in a steady and
consistent direction toward achieving the ideal state
Develop metrics that address all language, technology and learning & communication style needs
Communicate the metrics with visual dashboards posted prominently in your organization
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Proposed Solutions for Eliminating the Waste of Our Human Resources
Communicate across boundaries Improve your communications, particularly
across boundaries such as departments, function, culture, language, generation and other organizational and human diversity dimensions
Process focus takes priority over functional focus Clarify and communicate each employee’s role
Clarify each of your employee’s roles and responsibilities and clarify link to project, team, departmental and organizational vision, mission, values, metrics and goals
Maintain role clarity as these roles dramatically change during the lean transformation
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Proposed Solutions for Eliminating the Waste of Our Human Resources
Acknowledge and celebrate successes Make sure objectives remain clear so your
employees will feel, experience and be able to articulate accomplishment
Clearly define quantitative and qualitative milestones linked to the VMMG, communicate progress toward them, and celebrate successes along the way.
Develop and align reward and recognition systems appropriate for defined milestones
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The D & I Cost Assessment
Objective of the Assessment Develop a baseline of D & I costs Tool to assess non-value-added
activities (waste) in D & I process Follow on study to measure
improvement in D & I cost elements
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The D & I Cost Assessment
Step 1: Selecting a D & I Cost Assessment Team Choose a cross-functional team of 5-8 members
representative of the organization or each of the departments to be assessed, as well as an accounting team member to help quantify the costs.
Step 2: Conduct D & I Cost Team Overview The overview will minimally consist of:
Review of standard list of cost element definitions Examination of the detailed cost elements within the
chosen categories Determining departmental examples of D & I activities
and processes that illustrate the cost elements Methods/techniques for collecting D & I cost data
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The D & I Cost Assessment
Step 3: Planning the Assessment Prepare an organization or departmental listing of D
& I cost elements Establish accounts for these elements (optional) Select interviewees for each department
Step 4: Kick-Off Meeting Hold meetings for each department being assessed
to explain the purpose of the study, the type of information the team wants to collect, and answer any questions. This is essential for creating buy-in by the departments prior to conducting the assessment.
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The D & I Cost Assessment
Step 5: Conducting the Assessment Team members work with respective departments
to complete D & I cost assessment by interviewing the selected candidates and record data collected.
Step 6: Compiling and Analyzing the Information Compile the data collected on the departmental
worksheets. Develop material cost and expense information needed to measure the waste and non-value-added activities driven by D & I process.
Classifying the various cost elements into controllable and uncontrollable categories
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The D & I Cost Assessment
Step 7: Presenting the D & I Cost Assessment Results to Top Management After the D&I cost information is collected and
analyzed the results should be presented to top management. The presentation should be structured as follows:
The purpose of the assessment Assumptions used in the assessment Results of the assessment Actions needed to be taken Benefits to the organization if action is taken Bottom line impact of the information
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