DiversityInc Top 50 Best Practices Web Seminar. Barbara Frankel Senior Vice President, Executive Editor June 25, 2013

Transcription

1 DiversityInc Top 50 Best Practices Web Seminar Barbara Frankel Senior Vice President, Executive Editor June 25, 2013

2 Assistance 2 For assistance dialing in to the conference, please call For operator assistance during the live web meeting, dial 00. For other assistance, contact Customer Service at Thank you! DiversityInc. Reproduction Prohibited.

3 2013 DiversityInc Top 50 Companies for Diversity 3 1. Sodexo 2. PricewaterhouseCoopers 3. Kaiser Permanente 4. Ernst & Young (up 2 spots) 5. MasterCard Worldwide 6. Novartis Pharmaceuticals Corporation 7. Procter & Gamble 8. Prudential Financial 9. Accenture 10. Johnson & Johnson 11. Deloitte 12. Merck & Co. (up 4 spots) 13. AT&T 14. Abbott 15. Cummins 16. Marriott International 17. Medtronic 18. Kraft Foods 19. Aetna 20. Target 21. Colgate-Palmolive 22. Cox Communications 23. KPMG 24. IBM 25. Wells Fargo 26. General Mills 27. ADP 28. Pfizer 29. Northrop Grumman 30. New York Life 31. BASF 32. Kellogg Company 33. Time Warner 34. Rockwell Collins 35. Eli Lilly and Company 36. Allstate Insurance Company 37. Dell 38. The Coca-Cola Company 39. The Walt Disney Company 40. WellPoint 41. TIAA-CREF 42. Monsanto 43. TD Bank 44. Microsoft 45. Bristol-Myers Squibb 46. Wyndham Worldwide 47. Verizon Communications 48. Toyota Motor North America 49. Comcast 50. jcpenney DiversityInc. Reproduction Prohibited.

4 The Business Case for Diversity 4 DiversityInc. Reproduction Prohibited.

5 DiversityInc Top 50 Methodology 5 Completely based on empirical data Participation is free and companies that do business with DiversityInc receive no preferential treatment Companies must have 1,000 U.S. employees and complete a detailed 300-question survey Survey divided equally into 4 areas Newly implemented SAS software enables us to measure human capital with increased accuracy Data is kept secure and confidential Never shared with anyone outside of the company 2014 surveys will be distributed shortly DiversityInc. Reproduction Prohibited.

6 4 Areas of Measurement 6 CEO Commitment Human Capital Corporate & Organizational Communications Accountability Personal communications Visibility Five levels of management Promotions into management Promotions in management Mentoring Resource groups Philanthropy Consistency Effectiveness Supplier Diversity M/WBE, LGBT, People with Disabilities, Veterans spend* RFPs* Accountability *MBE Minority Business Enterprises WBE Women Business Enterprises LGBT Lesbian, Gay, Bisexual, Transgender RFP Request for Proposals DiversityInc. Reproduction Prohibited.

7 CEO Commitment Women at the Helm 7 Women at the Top (CEO and Direct Reports) 34.5% 25.8% 23.5% Women on DiversityInc Top 50 Boards of Directors up 11% in the last year** *All 2013 participants Top 10 Top 50 All* **DiversityInc Top 50 year-over-year DiversityInc. Reproduction Prohibited.

8 Human Capital 8 DiversityInc Top 50 recruitment numbers increased in the last year Latinos Up 36% Asians Up 25% Blacks Up 16% DiversityInc Top 50 year-over-year DiversityInc. Reproduction Prohibited.

9 Corporate Communications 9 55% Managers in Mentoring 36% 26% +17% Top 50 Companies requiring cultural awareness training for mentors** +10% Top 50 companies with measurable mentoring goals** *All 2013 participants Top 10 Top 50 All* **DiversityInc Top 50 year-over-year DiversityInc. Reproduction Prohibited.

10 Corporate Communications 10 Resource-Group Participation 15.6% 21.9% 23.6% Monitor engagement, promotions, retention of members vs. nonmembers to assess effectiveness DiversityInc Top 50 year-over-year DiversityInc. Reproduction Prohibited.

11 Corporate Communications % Multicultural Philanthropy 44.9% 40.6% 36.7% The Top 10 donate 21% more to multicultural charities than the Top DiversityInc Top 50 year-over-year DiversityInc. Reproduction Prohibited.

12 Supplier Diversity 12 The 2013 DiversityInc Top 10 Companies for Supplier Diversity 1. AT&T 2. Marriott International 3. Health Care Service Corporation 4. Hilton Worldwide 5. Wyndham Worldwide 6. KeyCorp 7. Accenture 8. Abbott 9. WellPoint 10. Union Bank The Top 10 are 1.5x as likely as Top 50 to have training/mentoring for diverse suppliers The Top 10 are 2x as likely as Top 50 to provide financial assistance DiversityInc. Reproduction Prohibited.

13 Are You Prepared for The 2014 DiversityInc Top 50 Survey? 13 Aligned with EEOC - changed "Others" to "Two or More Races Added questions on veterans for Top 10 for Veterans list Assessment of actual participation in telecommuting and work/life benefits Split involuntary/voluntary turnover up into workforce and management (similar to retention) Age breakdown by race/ethnicity Resource groups - added demographic breakdown of group participants DiversityInc. Reproduction Prohibited.

14 Diversity and inclusiveness at Ernst & Young DiversityInc web seminar June 25, 2013

15 Research: diversity and inclusiveness drive better business results The power of diversity is real. Where innovation is critical, companies should construct teams with equal proportions of men and women so that they can benefit from the most diverse talent pool. (London Business School) Diverse groups outperform homogenous ones, even if members of the latter group are more capable. (University of Michigan) Net income growth for companies with women on their boards is higher than those with no female director (14% vs.10%). (Credit Suisse) Companies with highest representation of women in senior leadership had better financial performance vs. companies with lowest representation of women (35% higher return on equity, 34% higher return to shareholders). (Catalyst) It takes inclusive teaming and leadership to realize the value of diversity. Organizations high on both Diversity & Inclusiveness (D&I) achieve higher discretionary effort (12%), intent to stay (19%), team collaboration (57%) and team commitment (42%) than those low on D&I. (Corporate Leadership Council) Our 2011 Ernst & Young Global People Survey data shows that voluntary turnover is lower in business units where more people feel free to be themselves. (2011 Global People Survey, sample analysis of Americas Area business units) Companies that address the unconscious bias that prevent change are 4x more likely to succeed at D&I vs. those that only tackle the symptoms of resistance. (McKinsey) Page 15 Diversity and inclusiveness at Ernst & Young

16 Ernst & Young focus: both diversity and inclusiveness Diversity Visible and non-visible differences: Thinking style Leadership style Gender Abilities Country of origin Service line Location Ethnicity Sexual orientation Generation Experience High Low The experience: closed culture where the focus is on metrics and programs Competitive advantage: low Collaboration: low Morale: low Engagement: low Retention: low Competitive advantage: average Collaboration: average Morale: average Engagement: average Retention: average The experience: differences are leveraged in the decisionmaking process Competitive advantage: high Collaboration: high Morale: high Engagement: high Retention: high Competitive advantage: low Collaboration: low Morale: high Engagement: high Retention: high Low Source: Adapted from the Guide for Inclusive Leaders, 2006, by Joerg Schmitz and Nancy Curl Inclusion The culture we create via what is formally and informally expected, reinforced and rewarded, and the day-to-day experience of each individual High Page 16 Diversity and inclusiveness at Ernst & Young

17 Defining diversity and inclusiveness at Ernst & Young Go to following link to view video: Page 17 Diversity and inclusiveness at Ernst & Young

18 Ernst & Young: Capabilities of great leaders Diversity Visible and nonvisible differences: Thinking style Leadership style Gender Abilities Country of origin Service line Location Ethnicity Religious background Sexual orientation Generation Experience 1 2 Value differences of self and others 43 Identify exclusion behaviors and patterns Inclusiveness Transform in sphere of influence Practice and model inclusive practices Inclusive leaders transform undesirable behavioral and cultural exclusion patterns in their sphere of influence. 4 Source: Adapted from the Guide for Inclusive Leaders, 2006,by Joerg Schmitz and Nancy Curl Page 18 Diversity and inclusiveness at Ernst & Young

19 Ernst & Young s diversity and inclusiveness success factors Tone at top Approach D&I structure Embedding D&I across processes Metrics and accountability Leadership devoted to change, not just connected to it Inclusiveness is a priority not optional Full engagement of all leaders as mentors, sponsors and champions so that all own the business case Culture change required Skill building for all (e.g., unconscious bias) Differential investment in women and under-represented talent Leading inclusively by cascading at both an enterprise-wide level and within each operating unit Integrated: a part of, not apart from, client service or talent management Performance management, account planning and assignments, training and development, supplier diversity Valid, replicable metrics with strong links to business outcomes and personal performance Page 19 Diversity and inclusiveness at Ernst & Young

20 DiversityInc Best Practices Dottie Brienza, Merck 25 June

21 Merck s Areas of Focus PRESCRIPTION PHARMACEUTICALS & VACCINES CONSUMER CARE ANIMAL HEALTH 21 Major Therapeutic Areas Cardiovascular Diabetes & Obesity Infectious Disease Neurosciences & Ophthalmology Oncology Respiratory & Immunology Vaccine-preventable diseases Women s Health & Endocrine Non-prescription medicines Foot Care Sun Care Livestock Poultry Companion Animal Aquaculture

22 Our Vision To make a difference in the lives of people globally through our innovative medicines, vaccines, biologic therapies, consumer care and animal health products. We aspire to be the best healthcare company in the world and are dedicated to providing leading innovations and solutions for tomorrow. Our Mission To discover, develop and provide innovative products and services that save and improve lives around the world. Our Values Improving Life Innovation Diversity & Teamwork Ethics & Integrity Access to Health 22

23 Merck s 2013 Diversity Best Practices 1. ERGs o o o o Strategic Intent Business Insight Roundtable & EBRG Structure Priorities linked to Vision, Mission, Values, Business Strategy Global progress: Highlight on Japan and China 2. Philanthropy o Intentional areas of focus o Linkages with Diversity 23

24 1. Best Practice on EBRGs Strategic Intent: d December 2011 Business Insight Roundtable (BIR) established in January 2012, on top of pre-existing ERG structure, to ensure that top talent is in a position to help Merck develop and implement better business results in the market through more diverse solutions, reflecting our customer needs. The BIR is comprised of 9 senior business leaders who report out on their priorities and progress to Merck s CEO. Identified Three Key Areas in which to Contribute Three areas of priority were identified that directly link to our business strategy, and each area is overseen by a Merck executive sponsor. Business Insights Talent & Inclusion Company Reputation/ Corporate Responsibility 24

25 EBRG Structure: Each BIR leader oversees an Employee Business Resource Group EC Sponsor BIR Leader EC Sponsor BIR Leader Differently Able EC Sponsor BIR Leader Veterans LGBT Women EC Sponsor BIR Leader Interfaith EC Sponsor BIR Leader African Ancestry BIR Leader EC Sponsor EC Sponsor Native Interfaith American/ Indigenous BIR Leader EC Sponsor Hispanic/ Latino Asian Pacific Islander BIR Leader EC Sponsor BIR Leader EBRG Business Insights Talent & Inclusion Co. Reputation/ Corp. Resp. Each EBRG is focused on driving the 3 strategic priorities 25 Each EBRG has an Executive Commmittee member sponsor

26 BIR 2012 Priorities Linked to Merck s Business Priorities, Vision and Values EXCEL EXTEND EXPAND EXECUTE Business Insight Roundtable 2012 Priorities Health Literacy & Access Increase awareness, improve adherence and access in identified areas Increase Diversity Recruit, develop, retain and inspire the best talent Merck for Mothers Advocacy & Awareness Business Insights Talent & Inclusion Co. Reputation/ Corp. Responsibility 26

27 An example: Health Literacy Health literacy is vital to achieving the best possible results from medical care, medicines and vaccines. The mission of the Office of the CMO is to serve the best interests of patients and the field of medicine. We must partner with patients to promote their understanding of their medical condition or disease, the reasons they are being treated, and the appropriate use of medications and other treatments. This will result in maximizing the benefit and minimizing safety issues when using our medicines. Merck is committed to improving health literacy as part of our mission to improve health." Michael Rosenblatt, MD, Chief Medical Officer The Business Insight Roundtable can help with some of our most important and challenging market access and adherence initiatives. Since the disease burden is greatest in the therapeutic areas we serve amongst diverse populations, the Roundtable can help Merck better understand what works when it comes to addressing healthcare disparities in under-served populations. Frank Clyburn, SVP Global Marketing 27

28 An example: Merck/MSD for Mothers Today, we commit ourselves to a world where no woman has to die from complications of pregnancy or childbirth. Ken Frazier, Chairman, President, and CEO September 20, 2011 EBRGs supported Merck for Mothers initiative by hosting educational sessions, including external and internal experts to speak about maternal health 28 28

29 Global Progress: Highlight Japan Four ERGs have been promoting activities. Working Parents (Est. Jun 2011) Sponsored by JPN Sales Head Achievement Work Life Integration Seminar Elder care preparation/child care/time management Seminar Family day Female Leaders (Est. Aug 2011) Sponsored by JPN Compliance Head Achievement Career Session Mentoring Lecture by Merck Executive Volunteer (Est. Mar 2012) Sponsored by JPN Health Policy & Access Head Achievement Volunteer tour for Tohoku* reconstruction support (* Damaged area by earthquake in 2011) Charity Book Sale for one elementary school in Tohoku area Differently-abled Support (Est. Dec 2011) Sponsored by JPN Legal Head Achievement Supporting DA in Service Center * (*Center for General services. Most of the members are Intellectually DA ) Gathering between employees and Service Center members President of Japan

30 Female Leaders Network FLN Roadmap Vision: Achieve the same ratio of female vs male in leadership as in the total employee population Mission: The MSD Female Leader Network in Japan is committed to supporting MSD s business objectives by 2011 Built female people managers network Shared the information and did co-mentoring Built a basis of FLN 2012 Build awareness of the Network Identified key challenges and objectives Held a few events facilitated by FLN Prepared the expanding FLN 2013 Expand the Network build a process for developing female leaders such as mentoring Connect with global female ERG Page 30

31 Female Leaders Network 2013 FLN Priorities Expand FLN membership Invite non-people mangers and male employees to the membership Currently 41 employees enrolled Start a pilot mentoring program within FLN Continue to support divisional/ functional gender diversity activities Build a network in FLN through periodic meeting(s) and share useful information for career development Organize female leader development event (twice/year) Connect with global Continue to hold roundtable discussion with Merck executive visitors Build relationship with Merck Women s Network Page 31

32 Global Progress: Highlight China Asia Pacific Association Activities we have done China Chapter Launch Event (Mar. 2013) Sponsored by APA and China management Activities we have planning for APA China - Government Sponsored Family Kids Gaming Activity Objective: To volunteer for networking and corporate reputation Achievements Launch event Introduction Recruitment MFM Photo Contest (Oct. 2012) Sponsored by APA and MFM Pam was sharing her insights for APA. Self Branding Workshop Objective: To help create more effective female and male leaders Merck Run for Health Objective: To promote healthy work/life style and network with peers and leaders we welcome suggestions from you Achievements MFM Promotion Celebrating Asian Traditions China winners of the Contest

33 2. Best Practice on Diversity & Inclusion linked to Philanthropy The Merck Foundation and MSD's Office of Corporate Philanthropy support qualified nonprofit organizations and innovative programs that are tackling humanity's key challenges. Health We have a responsibility to help increase access to medicines, vaccines and quality healthcare worldwide. Education Fostering the next generation of scientific leaders is a key part of our overall commitment to science. Community Our community involvement reflects the priorities that MSD shares with local, national and regional stakeholders. 33

34 Giving linked to Diversity MSD for Mothers Women Making a Difference The Richard T. Clark Fellowship program All MSD Wellcome Trust Hilleman Laboratories All HIV/AIDS partnership LGBT Women African Hispanic/ Latino Our partnership to fight river blindness African 34

35 Merck s Philanthropic Contributions Last 5 years Total 2012 Contributions = USD$3,392,000,000. or 7.17% of total revenue

36 Examples of Philanthropy and Diversity in Action Boy Scouts of America Merck Foundation suspended giving in 2012 due to decision to exclude LGBT scouts and adult volunteers Aligned with values and inclusion policies United Negro College Fund 18+ year relationship UNCF- Merck Scholarships/ Fellowships Commitment for USD $45MM+ over 20 years Focus on STEM (science, technology, engineering, math) careers 36

37 BIR 2013 Priorities Continue to be Linked to Merck s Business, Vision, and Values EXCEL EXTEND EXPAND EXECUTE Business Insights Partner with X Marketing team to identify and apply meaningful insights Business Insight Roundtable 2013 Priorities Talent & Inclusion Recruit, develop, retain and inspire the best talent Corporate Reputation and Responsibility Raise awareness on volunteerism and host event in alignment with business priorities 37

38 38 Version April 5, 2013

39 Send In Your Questions! 39 You may submit your questions via the web by using the text chat box on your screen. Simply type in your question and click send. DiversityInc. Reproduction Prohibited.

40 2013 Web Seminar Schedule 40 July 30 Mentoring/Talent Development Wells Fargo and Coca- Cola September 17 Diversity Recruiting AbbVie and ADP October 22 Diversity Councils Rockwell Collins December 3 Diversity Metrics Sodexo and BASF Please contact customer service at webseminars@diversityinc.com DiversityInc. Reproduction Prohibited.

41 Culturally Competent Healthcare Sept. 24, 2013, Newark Liberty International Airport Marriott, Newark, N.J. 41 How can hospitals deliver higher quality care, reduce readmissions and earn maximum HCAHPS reimbursements? How do they find staff and physicians representative of the community? What impact can diversity have on clinical trials and retail pharmacies? Get answers to these questions and more at our Healthcare Summit Click Here to Register Now DiversityInc. Reproduction Prohibited.

42 Talent Development: Diversity-Strategy Event Oct. 16, 2013, Marriott Marquis, New York City 42 This event will focus on new and innovative diversity-management programs Confirmed Daytime Speakers Carlos Rodriguez, President and CEO, ADP Stephen P. Holmes, Chairman and CEO Wyndham Worldwide Brian W. MacLean, President and Chief Operating Officer, Travelers Confirmed CEOs and Senior Executives Accepting Awards Talent Development Jeff Bewkes, Chairman and CEO, Time Warner Community Philanthropy Pat Esser, President, Cox Communications Diversity-Management Progress Juan Carlos Ordonez, Senior Vice President, Coating Solutions, North America, BASF Click Here to Register Now Global Cultural Competence Hugh Grant, Chairman and CEO, Monsanto Mentoring Beth Jacob, Chief Information Officer, Target Supplier Diversity Randall Stephenson, Chairman and CEO, AT&T Engagement George Borst, President and CEO, Toyota Financial Services DiversityInc. Reproduction Prohibited.

43 Thank You for Attending the Web Seminar 43 You will receive a follow-up from us containing the link to download this presentation for future reference The presentation will be available approximately 72 hours after this event Questions? Call (973) DiversityInc. Reproduction Prohibited.