COVID-19: Business Continuity Strategy (Template), align an organization’s strategy with the SDGS goals, Inclusive Leadership: The View From Six Countries, Why Women Don’t Apply for Jobs Unless They’re 100% Qualified, What Board Directors Really Think of Gender Quotas, Margarethe Wiersema, 6 Steps for Building an Inclusive Workplace, BSC Designer – Strategy Execution Software, A company that targets the Brazilian market will benefit from hiring employees who know local cultural traditions and language, A more diverse board is expected to have a better power balance. 1. Improvements: Segmenting attrition data into voluntary and involuntary is useful for identifying whether monitored groups are more likely to self-select or be pushed out of an organisation. The diversity of talents results in a diversity of ideas. Inclusion ensures that those ideas will find their way in the innovation process (will be heard -> will be valued -> will be tested and prototyped). Companies have started to recognize the importance of diversity and inclusion—but few have found ways to hold themselves accountable to real change. Note: Another way to make a diversity statement is through diversity videos. Link D&I scorecard with other scorecards, like scorecards for. 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? When people from diverse backgrounds are involved in creating the public services we all rely on, we get better services that work for everyone. Having a more diverse workforce is a leading factor for better understanding the needs of different groups of customers. We’ve discussed some KPIs for diversity and inclusion, we also talked about certain strategies that an organization can follow to achieve better diversity and make sure that it is converted into actual inclusion. There are at least three goals that resonate with the D&I initiatives: Before, we were talking about the way to align an organization’s strategy with the SDGS goals. Similar to average length of employment, we can measure (all analyzed by diversity dimensions): What about measuring the effectiveness of HR in the context of diversity and inclusion? KPI: Diversity and inclusion. Description: Compare financial and non-financial rewards earned by individuals from monitored groups to financial and non-financial rewards earned by individuals who are not members of a monitored group. I’ll add this as an initiative for the “Diversity and Inclusion” goal: How to set the target values for the diversity metrics? If those ideas are taken seriously (=inclusion), an organization will enjoy some performance improvements. Employers should regularly review diversity and inclusion metrics, changing them as needed as the diversity and inclusion program matures and as business goals change. Diversity & inclusion initiatives and programs have entered the mainstream and moved beyond the realm of HR. Many organizations prefer to report their achievements according to the Sustainable Development Goals 2030 by the UN. Organizations that have mastered diversity and inclusion have a better chance of attracting and retaining the best talents. Let’s start with a general introduction to the idea of Diversity and Inclusion (D&I). Diversity is a many-layered metric, encompassing workforce composition, compensation levels, and hiring trends. In this perspective, we’ll talk about the skills and the infrastructure needed to make the diversity and inclusion strategy possible. Also, making the decision boards more diverse, like we discuss below, will help to create and maintain a more inclusive workspace. At a minimum, adaptation should occur nationally, but regional changes should also be considered, where appropriate. Inclusion eventually leads to more tangible employee engagement. Intellectual functioning level (IQ) below 70-75 2. Setting diversity targets and goals is difficult and needs to be done with caution. Strength: Helpful for identifying recruitment barriers. Diversity and inclusion: 8 best practices for changing your culture A strong diversity and inclusion strategy can help your organization attract top talent and drive innovative results. For example, if you are targeting the Brazilian market, then the diversity targets will be focused on the talents with a background in Brazilian culture and those who are fluent in the Portuguese language. 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. Let’s discuss a strategy to improve Diversity and Inclusion in an organization. The metrics can be: The strategy scorecard that we discussed above is just a starting point for your own strategy. These questions may be incorporated into existing engagement surveys or constitute a separate ‘Inclusion Survey’ or ‘Inclusion Index’. Improvements: To encourage participation, invitations should highlight that focus group discussion is confidential and that findings will be reported in thematic form with all identifying information removed. With these ideas in mind, we can define another proxy metric of inclusion: With this metric, we could quickly find some extreme сases. In the customer perspective, we traditionally map the needs of the customers. Sharing results externally can also be valuable for industry benchmarking and strengthening employer brand and an organisation’s reputation in the marketplace. Further, disengaged employees may not complete the survey, skewing the results. 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. Once targets or other goals are set, responsibility for their achievement should be assigned to individuals who are held accountable through scorecards and other performance management tools. Goal setting theory (Locke and Latham) posits that motivation and task performance are positively correlated with setting specific and measurable goals. We need to wait another decade to see how these ideas will be implemented in practice. Organisations that have experienced a diversity failure or missed their diversity targets should respond honestly and sincerely, outlining a plan for rectification. When defining any strategy, we need to understand the causality, find success factors, and understand better expected outcomes. 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. To make the list, the diversity goals had to be written on their web site or spoken goal by their leadership (e.g. Empirical studies support this hypothesis. We found 25 examples of diversity goals from top companies aiming to boost diversity, inclusion and belonging in the workplace. Significant limitations in adaptive skills — the basic conceptual, social and practical skills needed for everyday life 3. AUSTRALIA, © 2018, Culture Plus Consulting Pty. Race is the predominant diversity issue in the United States and South Africa. D&I is not just the job of the CEO or Chief Diversity Officer – anyone in the organization should be accountable for building and supporting proper inclusive culture. What is obvious is that the economic sustainability of an organization can be predicted on their D&I achievements. On our strategy map, we can formulate this hypothesis as: With this idea in mind, we can define some leadership-related keystones and focus on these indicators: There are a lot of training and workshop products offered on the market. A classical strategic planning process starts with a definition of strategy attributes. 1 Farrer Place Concerns of confidentiality and low psychological safety may also limit attendance. 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. Once implemented, organisations must track the progress of their efforts. Still, its application range is limited, as talents stay in an organization for different reasons, and the time lag between hiring and leaving an organization might be several years. Diversity and inclusion are critical elements of every recruitment and retention strategy. 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. To automate this, we can set the “Update interval” to quarters so that the software reminds us about upcoming update time. Effective diversity management requires adaptation in metrics to reflect different contexts. 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. Surveys are the perfect tool for measuring the feelings and opinions of your workforce at scale. The reason is that inclusion is a feeling, and as any feeling, it is hard to quantify it objectively. Description: Comparing the number of applicants for open positions from monitored groups against the potential pool of applicants from monitored groups or labour market representation. Organisations should remain alert to the possibility that not disclosing a metric may erode trust more than disclosing a potentially unfavourable metric. 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. 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. Strength: Helpful for identifying which groups are more likely to be targets of prejudice, discrimination, and harassment. Track customer experience and loyalty by diversity dimension. For the organization, it means an opportunity to adjust internal diversity and serve those customers better. It depends on the type of business you are managing. That is not to suggest goal setting is easy, however. Strength: Useful for identifying groups that may be less satisfied with their workplace and less committed to the organisation as well as groups that are more likely to have their employment terminated. Multiculturalism is a concern of countries with a large proportion of migrants, as in many Western European countries as well as Australia and New Zealand. 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. Weakness: Does not indicate whether members of monitored groups are self-selecting out of promotion opportunities. Organisations will typically measure diversity dimensions for which data is readily available, namely gender. Defining diversity broadly will likely necessitate the establishment of new data analytics, and companies should consider the legal and ethical requirements regarding the storing of sensitive information. It is impossible to track progress unless you have a baseline measure. The overarching consideration when setting meaningful metrics is that they must map progress towards the achievement of your program goals. And since operationalizing data is a normal function for measuring key performance indicators, companies default to it as a method for measuring D&I. 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. Religion and caste are the main issues in India. Description: Facilitated focus groups for the purpose of gathering information on the issues and challenges facing diverse talent. One way to measure inclusion is to use surveys. Sydney NSW 2000 In their turn, diverse talents can become an inimitable competitive advantage for a company. Description: Track internal and external grievances, complaints, and law-suits by identity group. When setting goals, consideration must be given to barriers that can be addressed in the short-term (objective interviewing to minimise affinity bias) and those that will take longer to dismantle (pipeline weakness for women in some professions). Supplement existing survey items with questions that specifically tap diversity and inclusion concerns. 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. Felicity is an accredited facilitator with the Cultural Intelligence Centre and the author of A World of Difference. The digital organization of today, which operates as a network of teams, thrives on empowerment, open dialogue, and inclusive working styles. 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.”. 10. Our workforce data shows that the Civil Servi… Metrics that help organisations to identity bias blind spots include: Description: Percentage of employees from monitored groups compared with company, labour market or industry benchmarks. It might sound silly but one thing I always ask clients is how do you measure success? This website uses cookies to improve your experience. Let’s discuss a strategy to improve Diversity and Inclusion in an organization. Setting meaningful metrics necessitates a deep understanding of local challenges. Strength: Useful for identifying bias in development. With valuable inputs from Charu Sharma of NextPlay.ai, we simplify this conversation with insights into: Three diversity metrics you should be keeping an eye on Measuring program success might include tracking improvements in the measures listed above, with the diagnosis measurement acting as a baseline. If an organization wants to leverage the benefits of diversity and inclusion, it needs to align diversity dimensions with their strategy. In a later section, we’ll get into all the benefits of creating a diverse and inclusive workplace, but let’s start with a … Results of diversity efforts should be transparent internally. We discussed how to define the dimensions for diversity. Weakness: Disenfranchised employees may not volunteer for focus groups. Strength: Useful for identifying barriers to entry for different groups, pipeline issues, and narrow or biased recruitment efforts. 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. What is inclusion then? In China, there is an urban versus rural division as well as a Western-educated dominance in leadership teams. tap-on-the-shoulder, employee referral programs, graduate internships limited to only some universities). Follow those ideas to have a long list of metrics for diversity. 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. Description: Comparing average tenure for employees from monitored groups to average tenure across the workforce or average tenure of members of the dominant group. Companies must review their data policies to ensure information voluntarily disclosed is stored in a manner that obscures identifying information (not reporting on groups of smaller than five employees, ensuring IP addresses are not stored with data, etc.). 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. An organization that has only diversity metrics on their dashboard follows one of the bad practices in performance measurement. If the answer is yes, there is a bias against women in your organisation, even if on a role-for-role basis, women earn the same as men. The metrics above help organisations to identify risk areas and prioritise initiatives. Description: Tracking appointments of individuals from monitored groups compared with appointments of applicants who are not members of a monitored group. 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. The correlation between the financial bottom line and D&I was demonstrated empirically. It’s a good idea to revise a company’s most important strategic statements, such as mission, vision, and core values. In the context of a strategy scorecard, it means that all indicators should be updated and analyzed periodically. “Inclusion” Improvements: Analyse pay and rewards across rank and function. Examples of Successful Diversity Statements 13 June 2017 on Examples, Admissions, Diversity Statements. Description: Track the diversity of your suppliers by identity group. 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. Because of the risk of non-completion by employees who are not-engaged, findings must be supplemented with exit-interviews. Improvement: Solicit voluntarily disclose by respondents of identity, such as race, culture, sexual orientation, gender, age, parental status. 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. For example, comparing the number of applicants from monitored groups that make it to interview stage pre- and post-intervention. However, gender diversity is at different stages of maturity in different parts of the world and across industries and metrics must reflect that. What is clear is that the hiring process needs to be adjusted according to the D&I strategy. Check out this article for inspiration: Best Diversity and Inclusion Videos. It makes a lot of sense as the diversity part of the equation is what the HR department can influence directly. Description: Tracking promotions awarded to individuals from monitored groups compared with promotions awarded to individuals who are not members of a monitored group. A difference may be indicative of a performance vs. potential bias that favours members of the dominant group. Another idea in the context of automation is to visualize such indicators on the performance dashboards. Mentoring programs are becoming an increasingly important diversity and inclusion initiative as they encourage the type of activity and … Ultimate accountability for diversity and inclusion should be at the level of the CEO and the Board of Directors. Another important idea is that the diversity targets should be realistic. BSC Designer is a Balanced Scorecard software that is helping companies to better formulate their strategies and make the process of strategy execution more tangible with KPIs. Profiles in Diversity Journal ® is dedicated to promoting and advancing diversity and inclusion in the corporate, government, nonprofit, higher education, and military sectors. Description: Compare customer diversity to internal, industry or market benchmarks. Consideration must be given to your business strategy as well as the maturity of your diversity and inclusion program and the specific diversity and inclusion initiatives you are implementing. ACN 614 463 982, Eliminating Bias in Recruitment & Selection, Cultural Intelligence for Universities and Secondary Teaching, Bite-Sized Diversity & Inclusion Workshops, Group Mentoring for Emerging Female Leaders, Group Mentoring for Emerging Culturally Diverse Leaders, A World of Difference: Leading in Global Markets with Cultural Intelligence, D&I Best Practice White Papers and Tip Sheets, biases that perpetuate workplace inequality are largely unconscious and automatic, Metrics help employers committed to diversity and inclusion stay on track by encouraging the identification and management of bias blindspots—mindsets and practices that promote homogeneity but which are largely hidden, extends its diversity metrics to include individuals from culturally and linguistically diverse (CALD) backgrounds, specific questions relating to diversity and inclusion. To evaluate the effectiveness and success of this strategy and the achievement our goals for diversity and inclusion in Defence, we will look through the three lenses as utilised in Defence’s ‘People in Defence’ strategy. Religion and ethnicity are significant in the Middle East and Africa. 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. Supplement existing survey items with questions that specifically tap diversity and inclusion concerns. 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. 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. Examples of business-specific diversity dimensions include: A government department seeking to deliver policy solutions to improve the lives of members of an ethnically and linguistically diverse community extends its diversity metrics to include individuals from culturally and linguistically diverse (CALD) backgrounds Diversityand inclusion has become a CEO-level issue around the world. Felicity also holds a Bachelor of Commerce and a Bachelor of Arts in Psychology. See, for example, a study by Catalyst[2] or the report summarized in this HBR article[3]. For these reasons, the Civil Service is committed to reflecting the country that we serve, and is taking targeted action to tackle underrepresentation, especially in the Senior Civil Service. 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. This fosters trust and encourages accountability. Giving examples of your employee resource groups (like Stanley Black & Decker) is a great example of that. Weakness: Existing engagement surveys may not include specific questions relating to diversity and inclusion. Examine and learn from best leadership practices from Pakistani and international organisations in terms of promoting diversity and inclusion. Improvements: Exit interviews are beneficial only if there is a system in place for reporting on and responding to findings. To be built into the DECC group performance review and subject to the same reporting and accountability cycle. However, if you have not tracked those figures before the intervention, you can compare the number of applicants for monitored groups that make it through to interview stage in the department implementing blind recruitment withthe number of applicants for monitored groups that make it through to interview stage in departments who have not made any modifications to their recruitment practices. 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. While we let Diversity of all other types happen naturally there is one aspect we would actively like to impact: Gender Diversity. Workplace diversity not only expands your talent pool, but allows each member of your organization to draw from the backgrounds, viewpoints, and experiences of fellow team members – but you already knew that.The question isn’t whether diversity is important, but “How can my company measure diversi… Involuntary attrition that is overrepresented in a monitored group is indicative of conscious or unconscious bias and should be investigated. When we are talking about a diversity of talents (internal diversity), we are talking about the representation of different groups of population in the workforce of an organization. Improvement: True diversity is only achieved by segmenting the workforce to ensure it is representative at all levels and all functions. The findings of such study can reveal that some important customer groups don’t have an internal “advocate” in your organization. A metric in this case can be formulated as: While this approach gives some numbers, it is far from being perfect. 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. We've been asked for examples of diversity statements many times; below are several great ones. 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). Suite 3, Level 27 The natural limitation, in this case, is the number of diverse talents with needed skills. 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. Reasons for voluntary attrition should be tapped and recorded through exit interviews and supplemented with information gathered from engagement surveys and focus groups. For example, if an organisation is seeking to leverage diversity for increased innovation, relevant return on investment metrics are the number of patents or examples of process or service innovation. Diversity and inclusion initiatives are powerful drivers for the business, but only if they are aligned with the business. In fact, diversity & inclusion (D&I) is increasingly becoming a component of companies’ employee recruitment and customer branding strategies. This is achieved only through dialogue with local leaders and employees. Diversity and Inclusion are often named as a driver factor of innovations. For example, women-owned, or Indigenous-owned businesses. 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). 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. Copy it to your free account at BSC Designer and use it as a template: Diversity and Inclusion is not a one-time initiative. 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. The focus here is on linking your diversity and inclusion to performance measures, which are often (but not always) quantified as the financial benefit to the bottom line. A Strategy Template with KPIs for Diversity and Inclusion. The unique legal, historical, political, and cultural environments of different nations and regions determine which diversity issues are relevant. For example; Because of the risk of non-completion by employees who are not-engaged, findings must be supplemented with exit-interviews. To elicit a behavioural change, people must have a clear idea of what is expected from them. 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. Findings of such study can reveal that some important customer groups don ’ have. Nsw 2000 AUSTRALIA, © 2018 diversity and inclusion kpi examples culture Plus Consulting Pty correlated setting! Level ( IQ ) below 70-75 2 of tracking external diversity, track the impact that! 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