APTMetrics, Inc.

Leveraging the Intersection of Talent and Diversity to Grow Your Leadership PipelineNational Diversity Council

Tristate Chapter

Mary L. MartinézD&I Practice Leader

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About APTMetrics

Global Talent Management Solutions Provider Comprised of:

• Ph.D. industrial/organizational psychologists• Human resource consultants • Information technology specialists

What Sets APTMetrics Apart:• Professional integrity• Evidence-based approach• Technical expertise• Customer service

Diversity Supplier • Certified as a women-owned business

by WBENC• Certified as a women-owned small

business by the US SBA

Global Strategies for Talent Management.

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Our Areas of Expertise

• Leader Assessment• Employee Selection• Litigation Support• Diversity Strategy &

Measurement• Job Analysis• Competency Modeling• Performance Management• Staffing for Mergers &

Acquisitions• Organizational Surveys• Public Sector Services

Global Strategies for Talent Management.

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Our Web-Based Solutions Platform

APTMetrics®

SelectionMetrics®

Employee Selection System

LeadINsm

Leadership Assessment Suite

JobMetrics®

Job Analysis System

360Metrics®

360-Degree Feedback System

SurveyMetrics®

Organizational Survey System

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APTMetrics’ U.S. Offices

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• Forces driving greater integration of D&I and talent management

• What cultural competence is and why it’s important for leaders and organizations

• How diversity and inclusion (D&I) maturity is reflected in talent management approaches and processes

• Ways to incorporate a diversity lens into key talent processes and how to measure progress

Topics for Our Discussion

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Convergence of Talent Management and D&I in a Global Environment

Globalization of talent

management

Necessity for organizational and individual

cultural competence

Recognition of the value of diversity inclusion to the bottom

line

Changing workforce profile and employee

expectations

Requires talent management processes that leverage the power of all types of diversity and develops leaders capable of creating an inclusive environment that will engage, nurture and reward a multi-cultural, multi-national, and multi-generational workforce

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The Business Case for a Diverse and Culturally Competent Leadership Pipeline

• Expands the talent pool – internally and externally• Encourages inclusion and thus increased

engagement and productivity of all employees• Provides the skills required to bridge businesses,

functions, and countries to create effective partnerships and teams

• Powers an innovative culture• Leads to sustainable success

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Progress in D&I Depends on Cultural Competence

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AND Cultural Competence is an Essential Building Block for Leadership Effectiveness

Cultural Competence(Organizational & Individual)

1. Respects diverse perspectives that may arise from background, culture, ethnicity, race, gender, age, generation, values, and other individual characteristics.

2. Operates effectively in different cultural contexts and alters behaviors to reach different cultural groups.

3. Recognizes when diverse views are not being leveraged and confronts this situation.

4. Drives action through the organization to capitalize on diversity as a business asset.

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Integration of D&I in TM Processes Reflects Stage of D&I Maturity

Reward andRecognition

Workforce Planning

Leadership andEmployee

Development

Compliance Recognition Inclusion Activation

Staffing Performance Management

Talent Identification, Review and Succession

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Imperatives to Leverage D&I in Developing Diverse Leadership Talent• Achieve deeper understanding of root causes of barriers to

diversity and inclusion in leadership ranks

• Ensure consistent, and consistently applied, talent processes that are inclusive, fair, valid and legally defensible

• Establish broader criteria for assessing potential for leadership

• Coach and develop of talent decision makers to overcome biases and increase risk taking

• Create targeted development initiatives for particular groups where barriers exist

• Implement meaningful metrics and means of accountability for fostering inclusive, culturally competent leadership

Make diverse, culturally competent, talent a business priority

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D&I and the Identification and Development of Critical Talent: Early Identification Plays a Role

Percent of organizations taking enterprise-wide actions on emerging talent

Source: Talent Management Practices for a Diverse Leadership Team, study conducted by ORC Worldwide for Industrial Relations Counselors, Inc., 2009

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The Starting Point: Identification of Potential

“The risk of introducing gender bias into talent management systems is nowhere more obvious than in what leadership competencies are valued and expected.”

Cascading gender biases, compounding effects: An Assessment of Talent Management Systems,

Catalyst, 2009

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Leadership Profile Still Stresses Stereotypically Male Characteristics

Catalyst study found that stereotypically male characteristics also appeared more frequently in formal job descriptions of senior executive roles

From Cascading gender biases, compounding effects: An Assessment of Talent Management Systems, Catalyst, 2009.

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Greater Diversity Tied to Broader Criteria

2009 IRC Study found that companies with more senior leadership diversity included:

• Learning agility

• Emotional intelligence

• Mastery of key competencies (versus experience in particular jobs or a specific career progression)

Source: Talent Management Practices for a Diverse Leadership Team, study conducted by ORC Worldwide for Industrial Relations Counselors, Inc., 2009

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Uncovering Potential Bias in Assessment

2.1

2.15

2.2

2.25

2.3

2.35

2.4

2.45

2.5

African American White

Ratee Ethnicity

Mea

n R

atin

g

African American Rater

White Rater

African American employees were rated significantly lower by White raters than by African American raters (d = -.30, p < .05), whereas, White employees were not rated differently by White and African American raters (d = .04, ns).White raters rated White employees significantly higher than African American employees (d = .36, p < .01), whereas, African American raters did not rate White and African American employees differently (d = .06, ns).

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Example of Leadership Assessment that Includes Cultural Competency

Cultural Competence

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Feedback: Individual Developmental Actions

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Impact of Multi-Rater Feedback on Potential Identification

Source: Talent Management Practices for a Diverse Leadership Team, study conducted by ORC Worldwide for Industrial Relations Counselors, Inc., 2009

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Tailoring Interventions to Root Causes of Gaps in Talent Diversity: Barriers to Advancement Vary for Different Groups (…Ask Them)

Lack of credibility with clients

Unwillingness to request development

Lack of formal devel prgs at local level

Unwillingness to promote themselves

Difficulty finding powerful mentors

Bias on part of managers

Managers unwilling to take risk on non-tradiitonal candidates

Org. unsupportive of work/life balance

Lack of HQ or other language capability

Lack of visibility to senior leaders

Different leadership style

Exclusion from informal networks

0% 20% 40% 60%

Non HQNs Minorities Women

Source: Talent Management Practices for a Diverse Leadership Team, study conducted by ORC Worldwidefor Industrial Relations Counselors, Inc., 2009

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Targeted Practices Related to More Diverse Pipeline [example: Minorities]

Interventions are not “one size fits all”Source: Talent Management Practices for a Diverse Leadership Team, study conducted by ORC Worldwide for Industrial Relations Counselors, Inc., 2009

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Leadership Development Programs: A source of disadvantage?

• Development models assumed to be gender neutral, but

• Most LD programs and informal coaching reinforce skills women are already good at (Engage Others) when…

• 50% of criteria used in evaluating C-level candidates are in areas of business, strategic and financial acumen (Outcomes) – areas in which bosses rate men as outperforming women

Study postulates a three-part leadership definition in which women are “missing 33 percent”

From Talent Development and Women’s Advancement: 4 Ways Gender Bias Constricts Your Talent Pipeline, a study led by Susan L. Colantuono, CEO, Leading Women.

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Embedding D&I in Talent ManagementProcess: Adding a D&I Lens to Talent Metrics

Pipeline

Succession Plans

Talent Developme

nt

Applying the DiversityLens

2012 2013 Target

Overall ProfileDiversity of the talent

What does the snapshot of talent tell us about diversity of the pool and how it is

distributed?

Bench strengthNumber of RN/RNT per position

What is the make up of the RN, RNT populations by diversity profile; is it appropriate given availability in the

talent pool?

DuplicationSuccessors on multiple slates

Are we double counting diverse candidates and masking actual presence of diversity on slates?

Key positions filledUse of succession pool vs. external hires

Have used available diverse candidates when possible or sought from outside?

Performance when selectedWhat is elapsed time to full performance?

Are there differential ramp-up times for different groups based on diversity? If

so, why and what can we do?

Participation in LD programs; development plans executed

Are diverse candidates receiving the same development as others? Are gaps for them being closed at same

rate?

Movement trendsPromotion, demotions and lateral moves

What is impact on diversity from staffing decisions? Are there any patterns that

should be investigated?

Retention and engagementHow many terms are regrettable losses?

Is percent of attrition for diverse talent higher than that for others? Do we

know why? What can we do?

Adapted from one client’s approach to linking TM and D&I.

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Improve global team effectiveness

Increase supplier diversity

Visible assignments for W/M/NHQs

Mentor W/M/NHQs

Develop W/M/NHQs

50%

63%

78%

88%

88%

31%

44%

44%

56%

63%

Other companies High performing D&I companies

Source: Senior Leader Impact on Diversity: What Really Works? Study conducted by ORC Worldwide for Industrial Relations Counselors, Inc., 2008

Objectives of Leaders in High-Performing D&I Companies Stress TM Responsibilities

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• Premises:• Increasing sales of financial services offerings is the

desired outcome – the numbers are what matter in our environment

• We hire the best of the best, but they are not all producing at the same level

• We are wasting money, time and talent by not managing all employees to maximize productivity and success (theirs and the organization’s)

• We evaluate and reward managers based on financial outcomes

• Solution: • Create metrics that drive the desired underlying

managerial behaviors related to productivity from diverse teams, AND

• Tie results directly to financial rewards

Accountability Case Example 1: Financial Services

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Accountability Case Example #1 (continued)Goals and means for achievement:

Establish clear direction for managers

Ensures manager focus on:

· Growing headcount

· Driving revenue growth

· Supporting trainee development

· Encouraging teaming opportunities

Promote metrics-based results

· Develop specific measures based on historic performance and desired outcomes

· Supply detailed reporting to managers to enable regular tracking and identification of opportunities

Enhance accountability

· Utilize a carrot and stick methodology to encourage desired results

· Reward those who reach significant, objective measures of success

Four key measures:• Changes to representation of women and targeted minority

groups • Changes to team representation• Growth in $ results of diverse employees• Results of diverse employees versus results of unit overall

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Metrics Case Example 2: Sodexo

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Building the Talent Management Foundation for Diverse Leadership

Hold senior leaders accountable

Retain senior women and minorities

Use

forma

l processes to diversify

succession

slates

Support development and alternative

career paths

Identify a diverse

pool of future leaders

Audit

and enhanc

e TM processes to

embed D&I

; buil

d awareness and skills in decisio

n makers

Analyze data

and explore root causes of gaps in

pipeline

TrackAssess

Implement

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APTMetrics, Inc.One Thorndal CircleSecond FloorDarien, CT 06820

203.655.7779 TalentSolutions@APTMetrics.comwww.APTMetrics.com

Contact Information

Global Strategies for Talent Management.