Developing a Cultural Mindset: Game Changing Insights in Diversity and Inclusion

Chicago SHRM Talent ConferenceOctober 6, 2016

Proprietary and Confidential

Agenda

• Evolution of Diversity and Inclusion• Taking a risk• Top Companies for Leaders data and insights• Game changing D&I strategies• Closing thoughts

Introduction

Nichole Barnes Marshall Global Head of Inclusion

§ With Aon for 9.5 years

§ Previously held diversity and talent acquisition leadership roles at Grainger, Aon, Tribune Company and IBM Global Services

§ Native Chicagoan, awesome family

§ My “Occu-­passion”

About Aon

Aon plc Beauty in Numbers§ #1 - Rated risk services

broker, reinsurance intermediary, and human resource consulting and outsourcing provider

§ 72,000 - Number of Aon colleagues around the world

§ 500 - Number of global offices

§ 120 - Number of countries in which Aon operates

§ 11.7B USD – Total revenue in 2015

Level Setting: Do we all agree?

§ Diversity is defined as all characteristics and experiences that define each of us as individuals.

§ Diversity can include race, ethnicity, gender, age, religion, disability, and sexual orientation.

§ Inclusion puts the concept and practice of diversity into action by creating an environment of involvement, respect, and connection—where the richness of ideas, backgrounds, and perspectives are harnessed to create business value.

The Evolution of Diversity

1960 1970 1980 1990 2000 2010 2020

“Diversity was no longer about complying with a legal mandate but about seeking to create a diverse workforce because it would be beneficial to the organization.” Thomas, Roosevelt, 2009. From Affirmative Action to Affirming Diversity

It’s about the culture and the business case as organizations try to retain diverse employees in their workforce;; companies have started looking at the quality of these employees' experience in the organization.

1964-­1988 Compliance with Law

1989-­1995 Sensitivity/ Awareness

1996-­2002 Business Case for Diversity

2002-­2012 Inclusion and Sustainability

The Evolution of Diversity

From Compliance to Social Change

1964-­1988 Compliance with Law

1989-­1995 Sensitivity/ Awareness

1996-­2002 Business Case for Diversity

1996-­2002 Inclusion and Sustainability

1960 1970 1980 1990 2000 2010 2020

2012-­present Integration

(Social Change)Is now the time for your organization to think about the next evolution? Are you creating integration in your organization?

OUTCOMES:Change in Awareness, Attitudes, Behaviors, Communications, Leadership, and Systems

Taking a Risk

Today in the news we are hearing about…

© Aon plc 2015. All rights reserved.

A framework to assess individual and organizational cultural competence

Judges Differences

De-­‐emphasizes Differences

Deeply Comprehends Differences

Bridges Across Differences

Misses Differences

#AllLivesMatter

#BlackLivesMatter

#BlueLivesMatter

#LionLivesMatter

AssimilatingMonocultural: Assimilating

UnderestimatingMinimization:Underestimating

Valuing and BridgingIntercultural:

Valuing and Bridging

What Differentiates Top Companies?

For more than a decade, the Aon Hewitt Top Companies for Leaders® research shows what truly separates top companies from other participating organizations.

Leaders lead the way Practical and aligned programs and practices

Senior leaders havea passionate and visible commitmentto developing leaders 3An intense focuson talent permeates every level of the organization 4

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Leadership strategy clearly reflects the overall business strategy

The developmentof leaders is aninstitutionalized practice and mindset

Unrelenting focus on talent When leadership becomes a way of life

The DNA of Top Company Leaders

1. Self-­Awareness: Top Companies have self-­aware leaders who exhibit tremendous understanding of their personal strengths as well as weaknesses and use this information to become more effective leaders of others.

2. Resiliency: Top Companies build resiliencein their leaders through inclusive cultures where multiple perspective and ideas are expected to help the organization meet fast changing business challenges.

3. Engaging Leaders: Top Companies are intentional about identifying and building engaging leaders who are stabilizers, ambidextrous, and connected to people and events inside/outside their organization.

In the face of today’s Volatile, Uncertain, Complex and Ambiguous business environment, Top Companies have the competitive edge to successfully drive leadership/talent growth that results in stronger organizational performance.

Top Companies Approach to Diversity: Traditional Elements of Demographics

Data represents responses of agree to strongly agree

Organization has actively taken steps to increase representation of leaders with:

Data represents responses of successful to very successful

Degree of success in these efforts:

80%72% 68%

60%

75%

45%

59%

37%

Females in leadership positions

Leaders from outside your organization's headquarters

country

Early career (e.g., emerging leaders, young professionals, generation Y) individuals in

leadership positions

Under-­‐represented groups in leadership positions (e.g.,

cultural minorities)

Top Companies All Other

44%

72%

60%56%

25%

41%

53% 51%

What’s Critical to Attract Millennials?Top

companiesAll others

Sense of meaning and purpose in work 100% vs. 80%Explicit commitment to developing talent 96% vs. 82%Reputation of leaders 96% vs. 54%Inclusive culture 91% vs. 71%Inspirational leaders 91% vs. 60%Community outreach efforts (e.g., education, socioeconomic, catastrophe support) 87% vs. 68%Transparency of opportunities 83% vs. 73%Environmentally conscious 83% vs. 62%Organizational Performance (e.g., market share) 83% vs. 60%International assignment opportunities 83% vs. 57%Flexible work arrangements 78% vs. 55%Work-­life balance 74% vs. 55%

Our leaders understand the impact diverse perspectives can have on the business vs. 77%We have clearly communicated our leadership and talent strategy to our employees vs. 62%Our organization has a strong reputation in the marketplace for cultivating talent vs. 73%Our leaders have a strong reputation internally for cultivating talent throughout the organization vs. 66%

100% of top companies

Top Companies are Strategic about Diversity & Inclusion

All Others

Top companies What they do differently…. All others

96% Our senior leaders drive a culture of inclusion 79%

92% We hold leaders accountable in meaningful ways (e.g., compensation, rewards, opportunities) for achieving an inclusive environment 56%

84% Customer demands in the future will require our organization to significantly increase our emphasis on diversity throughout the leadership pipeline 74%

76% Our senior leadership team reflects the diversity of our customers and employees 45%

Game Changing D&I Strategies

Workforce Global Talent Availability 2021

Source: Oxford Economics, 2011

Common Organizational Challenges

§ Not walking the talk

§ Struggle with integrating and operationalizing the work

§ Insufficient fact base to set goals, determine ROI and drive accountability

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5 Emerging trends will enable organizations to sustained results

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From… To

US centric Global

Stand-alone programs Integrated into core talent and business processes

Nice to do Business imperative

Business led with HR support HR led

Diversity Inclusion AND Diversity

Diversity + Engagement = Inclusion

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Revolving Door

Inclusive Culture

Archaic Traditional Network

Engagement

Diverse Talent

From Programmatic to Integrated

“Deliver a differentiated client experience”

“Simplify to fuel growth and client-facing investment”

“Recruit, develop, and retain the very best”

Distinctive Client Value

Operational Excellence

Unmatched Talent

Activate Leaders Empower Colleagues Optimize Talent

Diversity and Inclusion is integrated into everything we do to manage and develop all 72,000 colleagues around the world.

Global Inclusion Strategy: Focus Areas

Attracting & Retaining the best talent• Diversity sourcing strategies

• Sponsorship Program• Embedding D&I in succession planning/leadership development

Developing high performing teams across cultures, borders & functions• Center for Inclusion Studies• Learning Map• Embedding D&I in professional skills curriculum

Translating our values into action• Business Resource Groups/Diversity Councils

• Communications and Branding• Strategic Partnerships

Global Inclusion Strategy: Cultural Competence

The Business Case for Inclusion:This 30-­minute online course is the foundation for all inclusion courses offered.

The Power of Inclusion*:This full-­day course helps colleagues navigate through cultural diversity awareness and skills in the workplace.

ATOM Managing Inclusively*:This full-­day course focuses onmanaging in a multicultural environment including working in global/diverse teams, and how to be authentic, act in an agile manner, and align culture, structure, and strategies.

Giving & seeking feedback

Accepting responsibility

Making mutual contact

Valuing individual differences

Address inappropriate behaviors

OverprotectionPatronizingRescuing

Blaming the individual

Avoiding contact

Deny the significance of differences

Colluding/Going along

DefensiveAttackingEscaping

Blaming the organization

Avoiding contact

Deny one’s owncultural differences

Colluding/Keeping up a front

Inclusive and Exclusive Behaviors

There is no silver bullet – Taking calculated risks will result in meaningful impact over time

• Assess where my organization is on continuum

• Determine if you have leaders with the right skills to navigate effectively in today’s VUCA work environment

• Engage business and HR leaders and illustrate how operationalizing Diversity and Inclusion empowers results

• Facilitate open dialogue that builds empathy and allows for complexity in understanding different dimensions of diversity and identity

• Take action!

Closing Reflection

“I’m not asking you to be tolerant of each other. Tolerance is for cowards. Being tolerant requires nothing from you but to be quiet and to not make waves, holding tightly to your views and judgments without being challenged. Do not tolerate each other. Work hard. Move into uncomfortable territory and understand each other.Let’s go out and understand each other.”

AT&T CEO Randall Stephenson

Questions