Future Work on Diversity and Equal Opportunities: Experiences from the U.S. Professor Robin J. Ely Harvard Business School Diversity through Equality in Public Administrations in Europe Copenhagen, Denmark October 19, 2007
The Challenge Increase cultural diversity, especially in the middle and senior ranks of the organization. Create an environment in which members of traditionally under-represented groups can realize their full potential. 2
The Promise A more diverse workforce increases organizational effectiveness. Taps a larger talent pool. Brings greater access to new market segments. Enhances creativity, problem-solving, and productivity. 3
A more diverse workforce more often than not fails to spur leaps in organizational effectiveness. Heightens tensions. Creates backlash and resentment. Increases turnover. The Reality 4
Where Companies Go Wrong Leaders fail to connect diversity to the core work of the organization. They adopt one of two perspectives to guide diversity efforts: Discrimination-and-fairness perspective Access-and-legitimacy perspective 5
Discrimination-and-Fairness Perspective We are all the same; differences do not matter. Diversity is a moral imperative. Eliminate discrimination; treat everyone the same. Progress measured by achieving recruitment and retention goals. 6
Discrimination-and-Fairness Perspective The Result: Pressures to assimilate. Differences undiscussible; conflict suppressed. People feel alienated, devalued. Performance undermined. 7
Access-and-Legitimacy Perspective We accept and value difference in its place. Use diversity to connect to important constituent groups and markets. Cultural identity is a resource at the interface between the organization and its constituent groups or markets. Progress measured by achieving recruitment and retention goals in boundary or visible positions. 8
Access-and-Legitimacy Perspective The Result: Experience regarded as limited or specialized. Career paths limited; people feel exploited. Differences neither analyzed nor leveraged. 9
There is another way... Integration-and-Learning Perspective 10
Integration-and-Learning Perspective We work together with our differences, not in spite of them. Cultural differences are a resource for learning. Different perspectives about work. Different experiences at work. Can use these differences to inform and enhance core work and work processes. Progress measured by the power of traditionally underrepresented groups to change the organization and its work. 11
Law Firm Example Our mission is still the same...but our strategies and how we define them have radically changed Our diversity made us look at the organization s program and how we had to change the work that we do the substantive legal stuff that we do. - White Female Founder 12
Law Firm Example (cont.) We made a commitment to diversity, but that commitment really became a commitment to changing our program. It wasn t just a commitment to be diverse. It wasn t a commitment to window-dressing and continue programs as usual. The commitment was to become a diverse organization and radically move our program. And I think that certainly has happened. - Latina Lawyer 13
Retail Bank Example 90% 80% 70% 0.77 0.86 60% 50% 40% 30% 20% 0.08 0.24 0.27 0.19 0.56 0.44 480+ retail bank branches Mean # employees = 15.5 SD = 8.7 10% 0% 0.07 Asian Black 0.12 Hispanic 0.005 Native American 0.01 White Women Non-Officers Officers x=5.2, SD=3.6 x=9.7, SD=5.0 14
Retail Bank Example (cont.) Assessed supportiveness of branches learning environment from annual survey: My work group has a climate in which diverse perspectives are valued. I feel encouraged to come up with new and better ways of doing things. My supervisor encourages a diversity of styles and approaches. Sufficient effort is made to get the opinions and thinking of people who work here. 15
Retail Bank Example (cont.) Categorized branches into 2 types: Supportive Learning Environment (Whites and minorities rated branch high) Unsupportive Learning Environment (Minorities, at least, rated branch low) 16
Retail Bank Example (cont.) 93.0 Supportive Learning Environment Total Performance 72.0 0.00 0.50 Racial Diversity Unsupportive Learning Environment 17
Retail Bank Example (cont.) Different values and beliefs about race and racial diversity: Unsupportive Learning Env: People are people; we re all the same. The job requirements have no color... I m just a person, a qualified person. -Caribbean Teller Supportive Learning Env: When you have more diversity, you have an increased number of ideas and thoughts and views... different cultures and different upbringings all coming together to say, OK, let s make this better. -African American Teller 18
Retail Bank Example (cont.) Different experience of own racial identity: Unsupportive Learning Env: At work, I try not to think of myself as anything other than a banker not as a Puerto Rican, not as Spanish unless somebody makes me aware of it. And then [if I become aware of it] it kind of takes away from what I can give them. -Puerto Rican Sales Rep Supportive Learning Env: When you have been discriminated against, you can become angry and bitter or you can become more open-minded and say, How did it make me feel? It made me feel lousy, and I don t want to do that to someone else. So [with this insight] you are better able to service your clientele or whoever you re working with. -Puerto Rican Sales Rep 19
Retail Bank Example (cont.) Learning from others: Supportive Learning Env: Not to stereotype so much, but Asians might want to do business one way, Latinos another, Russians another, so you learn about that from working with different people. How does [my coworker] deal with his clients? How does he generate revenue? By working with different ethnicities, you get a feel for every type of person that walks through the door.... It s not fair to assume that Russians take care of Russian clients, or Greeks do good with Greeks, or there s Asian who work with Asian clients. -Latino Assistant Manager 20
Retail Bank Example (cont.) Learning from others: Supportive Learning Env: I learned a lot from [black co-worker] about how racial prejudice can affect a person. It made me realize that it s not just in the personal life, it s in the corporate life, in your business life, and that it really affected her a lot. I think I m more sensitive to that now if another employee experiences that. I m going to be a lot more willing to give them time off from work if they need it and offer some counseling service. - White Branch Manager 21
Integration-and-Learning Perspective The Result: Standard practice not necessarily seen as best practice. Differences embraced, discussed, disputed, evaluated. Content gains: Work enhanced by insights, knowledge, skills, grounded in people s experiences, cultural and otherwise. Cultural competencies are learned and shared. Process gains: People feel valued and respected. Experience of learning across contentious and potentially divisive differences increases trust and team resiliency. 22
What Leaders Must Do Truly value variety of opinion, style, insight. Recognize limits of a single group s perspective/style. Test your own assumptions first. Openly explore links among diversity, work styles, work. Legitimate open discussion of difference. Exhibit high tolerance for constructive conflict. Regard development of people as key managerial task. Maintain high performance standards/expectations for all employees. 23