week 6 assignment

For your assignment this week, consider the following scenario: It has been announced that your company will begin expanding into new markets in the upcoming year. In preparation for this expansion you have been learning much more about cultural competence and its value to the organization. You anticipate that human resources will be confronted with many situations and questions related to cultural competence and the company’s expansion as it opens offices in a variety of countries around the world.

To complete this Assignment, within a 2- to 3-page paper, create a set of FAQs (Frequently Asked Questions) that you could share with employees in your company to provide information and insights on the following topics:

• Describe cultural competence and its value to an organization.
• Describe the characteristics of a culturally competent organization.
• Explain why it’s vital for individuals within the organization to internalize cultural competence for the sake of the organization and for themselves.
• Explain the role human resources plays in fostering cultural competence, including examples.   
• Your Assignment must include 3 references to support your thinking.

APA format

Council Perspectives
Insights from The Conference Board Diversity and Inclusion Councils

Diversity &
Inclusion
Global Challenges and Opportunities

TM

Diversity and
Inclusion
Global Challenges and Opportunities

CP-014 2009

Council PerspectivesTM

Members of The Conference Board Councils are among

the most experienced and savvy executives in the world.

Their private deliberations produce rich insights on the

most challenging business and societal issues of our time.

With their permission, we have channeled their energy and

expertise into a platform to voice their views—that platform

is Council Perspectives.

Council Perspectives is based on sessions from selected

Council meetings, post-meeting interviews, and other

pertinent data, and may sometimes include original content

written by Council members. It is not intended to be a

research report; rather, Council Perspectives provides a

unique look into the minds of executives from leading

global organizations as they assess, analyze, and develop

ways to address critical issues.

Diversity and Inclusion
Global Challenges and Opportunities

by Charles Mitchell and Stephanie J. Creary

Contents

5 Creating a Diverse and Inclusive Workplace around the World
5 Achieving a Global Mindset

6 Regional Challenges

10

Building an Effective D&I Function

10 Taking a Business Perspective

12 Linking to Other Functions across the Organization

14 Building a Pipeline of Future D&I Leaders

16 Managing through the Tough Times

19 Moving the Profession Forward: Metrics and Next Steps

22 About This Report

To better capture the dynamics of collaboration among council
members, The Conference Board employed a graphic facilitator
to illustrate in real time the topics and ideas that flowed from the
discussions. The graphics that accompany this report “map”
participants’ conversations and reflect the patterns they saw and
connections they created between ideas.

This “World Café” graphic, which is based on a series of breakout
sessions, underscores the importance of cultural competency
as an attribute for D&I professionals and highlights the subtle
challenges and issues they face on a region-by-region basis
when they try to implement a global diversity program.

Artist: Brandy Agerbeck of loosetooth.com (www.loosetooth.com)

C o u n c i l P e r s p e c t i v e s – D i v e r s i t y a n d I n c l u s i o n : G l o b a l C h a l l e n g e s a n d O p p o r t u n i t i e s T h e C o n f e r e n c e B o a r d 5

For diversity and inclusion (D&I) professionals, the chal-

lenges of building a diverse and inclusive workplace—

both region by region and globally—can be daunting.

Participants at the global joint meeting of The Conference

Board Diversity and Inclusion Councils spoke in broad

terms about the need for a global mindset, and they

offered specific suggestions for how to achieve it.

Achieving a Global Mindset
There is no single globally accepted definition of “diver-

sity.” Depending on the region of the world you operate

in, it may connote issues of race, ethnicity, nationality,

class, language, age, gender, sexual orientation, income,

social class, physical ability, religion, or learning style. It

may include all of these or none of them.

For a diversity and inclusion strategy to be truly global,

D&I professionals need to understand the culture, poli-

tics, economics, and relevant legislation within the

regions in which their businesses operate, all of which

underscores the critical importance of being culturally

competent. More broadly, they should concentrate more

on the development of a global mindset and an interna-

tional perspective and put less focus on exporting strate-

gies that may work in one region but are irrelevant or

ineffective in another. Creating a global movement

requires diversity professionals to have experiences and

interactions with people outside of their home country

and their own comfort zone.

Taking diversity and inclusion global is not about the

export of specific programs, but about creating a move-

ment and infusing energy into a global corporate value

system that holds diversity and inclusion as a fundamental

tenet. A critical issue that D&I professionals struggle with

is how to keep the uniqueness of their national culture and

still address the shared goal of embedding diversity and

inclusion into day-to-day operations.

While each organization faces a unique set of challenges

because of differing levels of D&I maturity, variances in

corporate culture, and the number of countries involved,

there are also crucial commonalities. Regardless of their

industry or sector, all companies must address a lack of

equity around the world; there is also still a great deal of

misunderstanding about how to define, leverage, and

measure diversity and inclusion.

Diversity and inclusion programs that are initiated and

managed from the headquarters country, especially the

United States, often face resistance. They are routinely

dismissed by employees as having no relevance to their

business, and a “Made in USA” label often raises a red

flag for international employees.

Given all of these factors, D&I professionals who seek to

spread their message globally should keep the following

thoughts in mind.

Listen and don’t dictate Avoid the common urge to tell

people how to do it. Instead, ask them how they think it

can best be done.

Think about the terminology Is it relevant for people

outside the headquarters country? For example, the term

“minority” is considered U.S.-centric and may mean little

to employees outside of North America.

Stop underestimating the complexity of being global

Even such basic tasks as gathering baseline data may

prove difficult or even impossible. There are different

legal frameworks that do not allow affirmative action or

the ability to track age, race, nationality, etc.

Establish a global mindset It really is about a global

way of thinking rather than a personal definition of diver-

sity.

Create a minimal framework that is driven by a

global definition of diversity and inclusion but also

highly localized One analogy: while all versions of the

television show Who Wants to Be a Millionaire? share the
basic framework of the original version from the United

Kingdom, each has been made locally specific through

unique decisions about the value of the prizes, the nature

of the questions asked, and the types of contestants that

are selected.

Be aware that solutions imposed from outside won’t

always be effective D&I executives should open a

conversation that lets others come to the “aha moment”

themselves. To be engaged, locals need to feel that they

own the initiative.

Look for progress, not perfection How long did it take

the United States to progress? Other countries and cultures

can’t be expected to get there in 24 hours.

Creating a Diverse and Inclusive
Workplace around the World

Challenge yourself Incorporate what you can learn from

the rest of the world into your own home country pro-

gram. We all have a lot to learn.

Regional Challenges
The different dynamics and definitions of diversity and

inclusion around the globe have raised the profile of cul-

tural competency and the importance of an executive’s

ability to do business effectively in any market, in any

business, and at any time. Political and economic con-

texts inform what goes on in the corporate sphere in any

geography. Presenters at the joint council meeting high-

lighted the subtleties that can have an impact on diversity

and inclusion in a number of

regions.

Asia
Economic differences It’s about the haves, the have nots,

and the have-a-lots.

Rapid technological change In terms of technology, the

region leapfrogged into the twenty-first century. Think of

the Indian rice farmer with a cell phone.

Regional differences Asia needs to be dissected on a

country-by-country basis. Even subregional clusters have

vastly different cultures with different D&I issues.

A mobile workforce Across all regions, the workforce is

globally aware and increasingly mobile. In fact, there is a

reverse brain drain from the West to the East.

“Post-Americanism” The region is moving on without

the United States and is proud of it, which can have an

impact on the implementation of a D&I program seen as

originating in the United States. America is no longer the

country that prescribes behavior.

Corporate culture versus national culture Japanese

women, for example, often join multinationals because

they believe they will be more respected and appreciated

than in a Japanese company bound by traditional Japanese

behavior and attitudes.

Communication patterns Getting people who live and

work in the region to support diversity and inclusion efforts

is a challenge, but if you don’t know what an East Asian

is thinking, you probably didn’t ask. The skill is in asking

the right question and perceiving the unspoken rules (e.g.,

the decision maker is not the one who talks the most; it is

often the one who talks the least).

Canada
The Employment Equity Act The purpose of the Act,

which was passed in 1986, is “to achieve equality in the

workplace” for women, visible minorities, people with

disabilities, and members of aboriginal communities. The

act, however, only covers federally regulated employers

and contractors. It also does not cover other minorities,

such as the country’s LGBT population. Unfortunately,

women are also not advancing as fast and as far as

expected.

Corporate social responsibility (CSR) CSR is an

increasingly important factor for employee engagement.

The integration of D&I into business practices

Diversity and inclusion cannot be a stand-alone initiative,

and it must be embedded into the business. The current

focus on the bottom line also means that attention has

been taken away from diversity and inclusion.

Middle managers Downshifting of responsibility and

work overload can make it difficult for these leaders to

see the value of diversity and inclusion.

Additional challenges Problems associated with having

two official languages, the fact that a forecasted talent

shortage is delayed, and the difficulty of collecting data

on newly arrived immigrants and on the representation of

employment equity target groups.

Europe
A shift away from the West As Western European mar-

kets become more mature, the immigration flow out of

Eastern Europe is reversing, causing a labor shortage in

some Western European countries.

Birth rates Several Western European nations have

dipped below replacement level for births.

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Gender This is an issue in the region, but not for all

countries. Internal regions are also very split on this

issue.

Race Again, the importance of race as an issue varies

from country to country, often depending on the history

of immigration in each nation. In some countries, the

debate is more about national origin or language issues,

while in others the treatment of locally born ethnic

minorities is the hot topic.

Resistance to D&I programs U.S. D&I programs are

typically revised for local conditions, but that is changing

because of resistance and relevance. Europeans often

dismiss U.S.-centric D&I programs based on gender and

race.

Consumer diversity In Europe, diversity and inclusion is

more about internal talent and less about consumers, but

that is changing.

Market differences Each geographic market in Europe

represents a unique entry point for diversity and inclusion.

The different national laws and cultures make it a

minefield.

Latin America
Political context Democracy has grown across the region

virtually uninterrupted during the last 25 years or so.

Latin America also has two sitting presidents who are

women—Michelle Bachelet of Chile and Cristina

Fernández de Kirchner of Argentina.

Race This is still a difficult topic to talk about. As

more and more Latin American companies become

multinationals, the focus tends to shift to gender and

generational issues.

Religion While 80 percent of the population is Christian

(predominantly Roman Catholic), Evangelical and

Pentecostal movements have taken hold in the last 15

years, making this a growing diversity issue.

Income diversity When it comes to inclusion, there is

rampant discrimination and prejudice against low-income

people. Ensuring that low-income workers are treated

with dignity and respect would be a revolutionary step.

Even if the income gap is not addressed, greater respect

would be a step forward. Still, despite low incomes, the

region is a growth market, and 250 million low-income

Latin Americans have purchasing power of $120 billion.

Class This issue still trumps race in Latin America.

United States
Demographics The United States is a first-world country

with some hints of third-world demographics when it

comes to poverty and birth rates in certain population

sectors.

Immigration One in seven workers is foreign born, and

12.5 percent of foreign-born workers have master’s

degrees, compared to 8 percent of the native population,

according to the U.S. Census Bureau.

Women According to Department of Labor statistics,

women currently represent 46 percent of the total labor

force, and 40 percent are working in management, pro-

fessional, and related occupations.

Multiple generations in the workplace Baby boomers

are staying on the job longer, which is creating a bottleneck

and leaving Generation Xers and millennials frustrated.

Reverse discrimination

Demographic shifts By mid century, the United States

population will be more than 50 percent non-majority.

Who is the consumer of the future? Who are we selling

to outside of our traditional customers?

A “postracial society” With the election of President

Barrack Obama, some are saying the United States has

entered a “postracial” era, and diversity and inclusion

doesn’t need to exist as a function.

Lesbian, gay, bisexual, and transgender issues These

concerns are increasingly receiving more attention.

Going Global at Diageo
Diageo is a global leader in the premium drinks market and
trades in more than 180 markets, employing more than
22,000 people around the world. Headquartered in the
United Kingdom, its shareholding is about evenly split
between the United Kingdom and the United States. At the
2009 Corporate Diversity and Inclusion Conference, Cherie
Sheridan, director for learning and development at Diageo,
North America, Inc. provided insight into the challenges and
strategies needed to launch a successful diversity and inclu-
sion program on a global scale.

Diageo’s diversity and inclusion initiative was founded on the
principle “that every employee has potential and that by cre-
ating the conditions for them to grow will improve Diageo’s
business performance.” Launched in North America in 2007,
this program was expanded globally to all people managers
in 2008, beginning with a pilot program in London that
included participants from Africa, Brazil, UK, Spain, and
Sweden.

The drivers and goals for the Diversity & Inclusion program
have always been aligned with Diageo’s broader perform-
ance objectives and contribute to business growth. The
drivers and goals included:

• Changing demographics

• War for talent

• Increase employee engagement

• Create an authentic work environment

• Consumer insights

• Increase our support to minority suppliers

• “Simply the right thing to do”

Developing the program
Diageo learned valuable lessons through the design, content
development, and delivery process of the initiative that are
relevant for any company wishing to embark on a global
diversity and inclusion journey. Among them:

Design
Form a global planning team:

• Conduct interviews with primary stakeholders in advance
to create relevant case studies and opportunities for
discussions

• Ensure that you understand any legal obligations and
compliance issues that may affect the material being
presented

• Be aware of significant events taking place in the country

• Pay attention to the fact that the organization’s culture
may be stronger than some aspects of the country’s
culture

• Provide opportunities for leadership to prepare their
lift/elevator speeches

• Educate the team

• Choose an external consultant for subject matter
expertise

• Establish global definition of diversity and inclusion

• Create a Global Facilitators Network

• Communicate

Content
• Simulations: adjust simulations to reflect cultural norms

that will likely be present in the audience.

• When defining multiculturalism or diversity, provide
opportunities for participants to define what they see as
the primary challenges within their corporate culture.

• You must have examples of success factors that can
be directly tied to diversity of perspective, people,
approaches, etc., which can be presented to the group
to build the rationale for the business case.

• When questions, conflicts, and concerns arise that are in
stark contrast to cultural norms, it is important to link all
learnings to the core values of the company.

Delivery
Pilot Programs: Outside of the United States

• Language impact: Be mindful of the fact that when
people are learning in a language that is not their native
tongue, it requires a far greater degree of concentration
and energy to successfully navigate the materials.

• Provide opportunities for action planning.

• Materials: Reduce the amount of material you have in
your headquarters version, because everything will take
much longer due to language, translation, etc.

• Use multicultural teams to deliver messages.

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In addition to the role of the D&I professional, the diversity and inclusion
function is changing due to rapid technological advancements, global-
ization, immigration, increased demand for skills and education, and
an aging workforce in much of the world. The emphasis today is on
cornering new markets, building effective and efficient global teams,
and managing brand reputation. Clearly, the twenty-first century D&I
practitioner who will embrace this more public, decidedly strategic
role will require a challenging new set of competencies.

This graphic captures attendees’ ideas about the evolving role of the
diversity practitioner, the new competencies required, and both the
strategy and the tactics needed to implement a global D&I program.

Artist: Brandy Agerbeck of loosetooth.com (www.loosetooth.com)

Although participants spent significant time examining

the external challenges to the creation of a diverse and

inclusive workforce, their discussions also addressed the

organizational challenges diversity and inclusion profes-
sionals face. Through these conversations, participants

were able to identify four actions that are critical to

ensuring that the D&I function has impact and adds

value:

1 Ensure D&I takes a business perspective

2 Link D&I to other functions across the organization

3 Build a pipeline of future D&I leaders

4 Sustain momentum during tough economic times

1 Taking a Business Perspective
The days when D&I programs could get by as “add-ons”

or as simply “the right thing to do” are gone. Executives

want to know that D&I professionals understand the busi-

ness and can customize a diversity strategy that helps the

organization and specific departments accomplish their

strategic goals. Leaders also want to have confidence that

D&I executives can deliver a plan that works for the

whole company.

D&I is a business function
One fact the current global recession has taught execu-

tives is that there is nothing like an economic downturn

to sharpen company focus and priorities. Many organiza-

tions are waging battles on multiple fronts. In addition to

an external conflict with competitors for markets, capital,

and, in extreme cases, survival, there is an internal strug-

gle between functions for attention, resources, and

recognition.

Another certainty that is emerging from the economic

rubble of the current recession, which is the worst in two

generations, is that the role of and the conversation about

diversity and inclusion has changed for good. And,

according to many professionals in the field, it’s about

time. The diversity and inclusion role is now more than

ever a business one and the function needs to operate

accordingly if it wants respect, resources, and the atten-

tion of potential partners and collaborators. To be inte-

grated into business functions, D&I executives must not

only align themselves and their function with corporate

strategy, they must also strive to influence that strategy.

Wanted: A new model of D&I leadership
Persistence and passion are the recognized hallmarks of

diversity executives, but a different business environment

and the demands of being a global business partner require

more than these two admirable qualities. Today, change

management is at the heart of the D&I function, and it

is mandatory for the alignment of D&I priorities with

business objectives. With corporations developing new

directions and strategies every three to five years, the

ability to redirect change—something D&I executives

do all the time—can support evolving business objectives.

Diversity executives should recognize this quality and

flaunt it within the organization.

D&I executives also need to move away from measuring

their worth by “activity.” The mindset needs to be about

strategy and impact. You need to look at diversity and

inclusion in a vastly different way. It is a whole new ball

game, and if you don’t change your game, you will sim-

ply not be invited to play. Stop focusing on “how busy

you can be” and “making lists,” and instead place the

focus on D&I’s impact on the business, both in the short

and long terms. The case for diversity has to start with

the needs of the company, an understanding of how the

customer is changing, and the ability of D&I executives

to meet those needs down to the business unit level.

A new role for D&I executives:
Business strategist
As part of the shift in the definition of the diversity and

inclusion function, D&I executives must become solu-

tions providers. They need to be able to help their compa-

nies think more broadly when they enter new markets,

build high-functioning global teams, and look for ways to

enhance corporate brands and reputations. If the function

can prove its ability to meet important challenges, senior

management and business units will begin to consider the

D&I department a strategic partner. This is already hap-

pening in those companies where the value of D&I has

been clearly formulated and publicly stated.

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Building an Effective D&I Function

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In the role of business strategist and consultant, D&I

executives must clarify the definition of diversity and

inclusion within their organizations. More important, they

must learn about the business from the perspective of the

mangers they hope to convert. The basic lesson here is that

you must know the business before you expect business

mangers to understand the value of diversity. An enhanced

understanding of the entire organization will help D&I

professionals clearly and specifically communicate their

plans and define what winning means for the business

in practical terms. Useful questions to ask during this

learning phase include:

• Are we valued in our business organization for what
we contribute to the bottom line?

• Do we have a solid value proposition and business
case that can be measured in terms C-suite functions

understand? Are we delivering on it?

By gaining a genuine understanding of how business

units operate, D&I executives can change the perception

that diversity and inclusion is an imposition and reinforce

how it has to become a part of the corporate culture. This

is especially needed at the business unit level, where

resistance to D&I initiatives can be higher.1 Major proj-

ects should include the integration of diversity and inclu-

sion into the company’s operations so that it influences

all aspects of the organization and the creation of a com-

mon organizational language around diversity and inclu-

sion. If the company’s D&I ethic becomes part of

day-to-day operations, it never leaves.

The importance of courageous
communication
Courageous conversations, crucial conversations, coura-

geous communication, critical interventions—regardless

of the term, D&I executives must tackle the tough issues,

ask the hard questions, and force organizations to con-

front weaknesses or address subjects they would other-

wise choose to avoid or ignore. Their task is to move

beyond the paralyzing cordiality that sometimes infects

companies, especially in good times, to address issues

about performance and relevance that run the risk of

offending the powers that be or creating the impression

that the D&I function is not a team player. Diversity and

inclusion executives must also reach across functions to

engage individuals who may have previously found

excuses not to talk about diversity and inclusion.

Courageous communication means finally tackling

those issues that are frequently talked about but never

acted upon.

If D&I executives are to challenge the perspectives of

others, they must be willing to subject themselves to the

same rigorous analysis. D&I leaders should consider the

times when they were able to speak out and the times

they did not. As a D&I champion, you simply cannot

stand by when you see things that are not inclusive or see

people making decisions that are counter to the values of

your corporation. Don’t assume that your reality is some-

one else’s reality. Be courageous and speak up. Challenge

others’ perspectives.

1 For a discussion of the D&I role of middle management, see
“Middle Managers: Engaging and Enrolling the Biggest Roadblock
to Diversity and Inclusion,” The Conference Board, Executive
Action 234, April 2007, which is based on discussions at a
November 2006 meeting of the Diversity Business Council.

Tips for Expanding the Role
of Diversity and Inclusion
D&I executives should:

• Be flexible, aware, and resilient

• Be good listeners

• Actively manage risk, acknowledge the economic
downturn, and work to get people on their side

• Be practical and make business sense

• Understand and appreciate the current crisis

• “Select and direct” and focus on the human element

• Always relate D&I to the business and emphasize ties
to business outcomes

• Persuade partners that their business needs are driving
the agenda

• Maximize the function’s role as a strategic talent
manager

Don’t fight the system — work with it
In the past, diversity and inclusion was often viewed as

a problem that needed to be fixed. Today, such a mindset

will only make D&I that much harder to embed within

the organization. With companies and CEOs demanding

more engagement, more innovation, and more productiv-

ity, diversity and inclusion needs to be seen as part of the

solution. And as D&I executives know, and other busi-

ness managers are beginning to learn, you get better

business decisions when you have diverse perspectives

in the room.

D&I executives need to redefine diversity in a much

broader context. Business leaders are all about innovation

and growth, and D&I executives need to talk that talk. If

you use the old language of diversity based on an out-

dated model of an emotive experience and qualitative

measures, you are probably not aligned with the rest of

the organization. If it is not tied to the business agenda,

diversity and inclusion becomes “a nice thing to do.” If it

does not translate into growth in the business, it becomes

a secondary priority. Alter the perception from cost center

to profit center, tie diversity and inclusion to cost savings

(higher retention rates), productivity gains (a more

engaged workforce), and revenue growth (new markets).

2 Linking to Other Functions across
the Organization
As part of its effort to demonstrate the real value of

diversity and inclusion to an organization, the D&I func-

tion must partner or work directly with other departments

and programs. D&I professionals at both the global diver-

sity councils meeting and the Diversity and Inclusion

Conference cited four key areas where a robust and busi-

ness-focused D&I program can show its contribution to

overall corporate success.

Marketing: Offer insights into the
needs of the new consumer
What is an essential role in today’s corporation and eco-

nomic environment? The answer often depends on the

customer. Essential roles are those that connect to the

customer, build relationships with them, and, in the end,

add shareholder value. If diversity and inclusion is not

operationalized to be part of essential roles in the busi-

ness, then it will be on the outside looking in. If it’s not

in the annual operating plan, it is often considered

nonessential.

Recent demographic and labor shifts give D&I a new

opportunity to help organizations who are expanding

their operations around the world. These developments

are enablers of global growth. For example, according to

national population projections released by the U.S.

Census Bureau in August 2008, the U.S. minority popula-

tion is expected to account for more than half of the total

U.S. population by 2050, and their economic buying

power will only continue to grow.2 Birth rates in Italy,

Spain, Germany, and Japan are all below replacement

level, signaling a worsening labor shortage in the future.3

India is projected to have 47 million surplus workers by

2020.4 D&I executives of global companies offer unique

insights that can help their companies develop a deeper

understanding of these future markets and the behavior of

customers in them. It is up to D&I executives to provide

marketers with a perspective on why an insight is an

insight. It’s not just about how consumers shop, but

rather how they live.

Innovation: Act as a source for new talent
CEOs are clamoring for more innovation and are striving

to build a culture of innovation within their organizations.

The notion that diversity not only supports innovation,

but can drive it, especially on an incremental scale, is

held not only by D&I executives, but also by those

charged specifically with the task of leading innovation.

At a February 2009 meeting of The Conference Board

Council on Innovation, council members repeatedly noted

the importance of diversity to their function, especially in

the formation of global innovation teams and the hiring

of staff. One of the goals of the council is to get people

within their organizations and their function more excited

about the link between diversity and innovation.

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2 Source: 2008 National Population Projections, U.S. Census
Bureau (www.census.gov/population/www/projections/
2008projections.html).

3 Sources: Euro-Mediterranean Statistics, Eurostat, 2009, p. 24
(Italy, Spain, and Germany); Statistical Handbook of Japan 2009,
Statistical Bureau, Ministry of Internal Affairs and
Communications, p. 15 (Japan).

4 Source: Tradeable Labor: A Tide That Will Not Be Turned Back,
The Boston Consulting Group, 2004, p. 4.

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The diversity mindset is especially important in the hiring

process. Members of the Council on Innovation said that

companies should be open minded and adventurous when

a candidate has a diverse or nontraditional background.

They may not fit the existing mold, but they often bring

different viewpoints that can lead to solutions others

might not have considered. When it comes to innovation,

you have to have disruptors—people coming from differ-

ent angles, different mindsets and viewpoints—to be suc-

cessful. It is part of the D&I executive’s role to make

sure those candidates are in the pipeline and are directed

to the functions that need them the most. D&I executives

must ensure that people with nontraditional viewpoints

are involved in work teams throughout the organization

and that these teams are open to mavericks.

Employee engagement: Take the pulse
of the organization
Employee engagement is defined as a heightened emo-

tional and intellectual connection that an employee has

for his or her job, organization, manager, or coworkers

that encourages him or her to apply additional discre-

tionary effort to work. There is clear evidence that

employee engagement is related to performance and pro-

ductivity levels at individual, team, and organizational

levels. For example, research shows that companies with

high employee engagement had voluntary turnover rates

one-half that of average employers.5

The “inclusion” element of D&I is all about employee

engagement and effective team building. Employee

resource groups (ERGs) are a valuable tool for both

increasing employee engagement and demonstrating

the value of diversity and inclusion to growth and

revenue. Companies that have made ERG members a

prominent part of their organizations are able to offer

employees the opportunity to be heard and make tangible

contributions to the revenue line. ERGs should be lever-

aged as inputs into the marketing and design functions,

and their contribution must be communicated across the

organization. ERGs themselves should concentrate on

adding value to the business and aligning their activities

with business objectives. (For examples of successful

ERGs, see “How ERGs Can Make a Difference: Reports

from the Frontlines” on page 14.)

The employer brand:
D&I can help spread the word
Many companies do not know how to market themselves

as employers. They undervalue the importance of the

employer brand and are unaware of the potential contri-

bution that diversity and inclusion can make to the

impression that their company is an employer of choice

in a global talent market.

Just as a corporate brand embodies a company’s values

and value proposition for customers, an employer brand

establishes the identity of a company as an employer.

Employer branding may be especially important for com-

panies that face difficulties in establishing strong product

brand images (e.g., organizations that sell their products

or services to other companies and lose much of their

product brand identity before reaching end users).6

Unfortunately, the link between diversity and inclusion

and the employer brand is often overlooked. Instead of

leaving it to the communications and human resources

departments, D&I executives need to develop their own

“marketing plan” that outlines the function’s contribution

to being an employer of choice. The case for diversity

has to start with the needs of the company, and one of

those needs is an effective talent management program

that hinges on a strong employer brand and an effective

recruitment and retention strategy.

Companies that have successfully embedded diversity

and inclusion and can demonstrate that it provides career

opportunities for all its employees are able to leverage

diversity and inclusion as a real differentiator in the talent

marketplace. A strong employer brand, which includes a

demonstrable commitment to diversity and inclusion,

ensures that the talent needed for global growth will be

available.

5 John Gibbons, Employee Engagement: A Review of the Current
Research and Its Implications, The Conference Board, Research
Report E-0010, 2006, p. 12.

6 Nathan Ainspan and David Dell, Engaging Employees through Your
Brand, The Conference Board, Research Report 1288, 2001.

3 Building a Pipeline of Future
D&I Leaders
A survey of attendees at the global council meeting found

that 60 percent of participants had been in their current

role for three years or less—a statistic that raises several

questions:

• What is being taught to the next generation? Is there
knowledge transfer so that future leaders can sustain

the gains that have already been made?

• What will the fallout be if there is a failure to focus on
knowledge transfer? Will this mean that the momentum

gained over the past 20 years will be lost?

• Are current teaching methods and approaches
relevant? Is the new wave of D&I professionals

confused by what is being transferred?

• How do current D&I leaders transfer competencies to
themselves? How do we develop these competencies in

future D&I practitioners?

To keep the profession moving forward, knowledge must

reside in the process and not in a single person. To that

end, organizations must ensure that the institutional mem-

ory, the experience, and the knowledge of longtime D&I

executives are effectively transferred to the new leaders.

To help companies thrive and keep the momentum going,

D&I executives need to focus on managing and transferring

knowledge and adapt their programs to different learning

styles. (A Competency Model for D&I Practitioners, a
2008 report from The Conference Board, lays out a com-

prehensive framework for developing future D&I leaders

that has already been adopted by a number of leading

companies. See “New Competencies for a New Era” on

page 15 for a discussion of the framework’s components.)

1 4 C o u n c i l P e r s p e c t i v e s – D i v e r s i t y a n d I n c l u s i o n : G l o b a l C h a l l e n g e s a n d O p p o r t u n i t i e s w w w . c o n f e r e n c e – b o a r d . o r g

How ERGs Can Make a Difference: Reports from the Frontlines
Presenters at the annual Diversity and Inclusion Conference held by The Conference Board cited numerous examples
of how ERGs have helped identify and solve product, human resources, and marketing challenges.

• A Latino ERG at a large global food and consumer
goods company provided valuable advice on introducing
a successful product line from Mexico to Latino ethnic
consumers in the United States. The U.S. version of the
product line has been a great success from day one.

• A pharmaceutical company used an ERG centered on
people with disabilities to identify flaws and offer sug-
gestions about how to improve a medical testing and
injection product, which provided insights that the devel-
opment team had failed to consider in its original design.

• One company was baffled by the relatively rapid
turnover rate of high-potential Asian employees brought
to its U.S. headquarters. In many cases, the troubles
surfaced after only a few months. The company’s Asian
employee ERG was able to identify a major issue, which

was that the spouses of the new employees were
having difficulty adjusting to living in the United States.
The spouses found such basic day-to-day activities as
grocery shopping or setting up doctors’ appointments
to be arduous tasks, and they also felt alone and isolated.
After the ERG helped the company set up a program to
help the spouses of newly transferred employees settle
into their new homes, turnover rates dropped significantly.

• One company turned to its ERGs to assist in improving
a chronic issue over the quality and accuracy of transla-
tion services for product and marketing materials. The
employees were excited to get involved, and the initia-
tive resulted in improved translations and a cost savings
for the firm.

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Global Diversity & Inclusion Competency Model

1 Change Management

Organizational Development Understands and facilitates
the change process

Corporate Communication Relays the full spectrum
of inclusion

Critical Interventions Steps in to remove roadblocks
when progress is impeded

2 Diversity, Inclusion, and Global Perspective

Cultural Competence Understands and is fluent in
multiple cultural frameworks

Negotiation and Facilitation Resolves cultural conflicts

Continuous Learning Commits to ongoing examination
of biases

Complex Group Dynamics Manages across groups in
the organization

Judgment Knows when to inquire and when to intervene

Subject Matter Expertise Conversant with industry
best practices

3 Business Acumen

External Markets Familiar with global and local trends
in D&I

Holistic Business Knowledge Possesses a thorough
understanding of the market and the business

Diversity and Inclusion ROI (Return of Investment)
Able to express the bottom-line implications of D&I

4 Strategic External Relations

Corporate Social Responsibility/Government/
Regulatory Well-informed about external pressure points

Strategic Alliances Leverages external relationships with
external partners

Diverse Markets/Supplier Diversity Seeks to create a
network of diverse suppliers and organizations

Brand/Reputation Management Positively influences
media and the marketplace

5 Integrity

Ethics Acts as a voice for perspectives that are not
otherwise represented

Resilience Pursues and achieves goals in the face
of resistance

Influence Negotiates and persuades at all levels of
the organization

Empathy Understands how to motivate and work with
minority and majority groups

Communication

6 Visionary & Strategic Leadership

Diversity & Inclusion Future State Acts as a catalyst
for change

Pragmatism Works within business realities

Political Savoir-Faire (at HR and Local Levels)
Collaborates with other functional areas to maximize
outcomes

7 HR Disciplines

Total Rewards/Talent Management/Organizational
Development/Work and Life Balance/Training
Possesses relevant knowledge of all programs, policies,
and best practices

Compliance Understands and ensures that all applicable
laws, regulations, etc., are followed

Employee Relations Resolves conflicts and helps change
the work environment in the face of challenges

New Competencies for a New Era
In 2008, The Conference Board published Creating a Competency Model for Diversity and Inclusion Practitioners, which details the
results of a two-day meeting of members of three councils from The Conference Board: Council on Workforce Diversity, the
Diversity & Inclusion Council, and the Diversity Business Council. The report details a new and unique competency model for D&I
professionals in the twenty-first century. The model includes categories of like competencies, the competencies themselves, and
behaviorally based definitions for each competency. One objective of the report is to help D&I professionals raise the profile of
their function and their subject matter expertise, especially on a global platform.

To be used effectively, these competencies should be integrated into a company’s business metrics. Organizations should ask
how employees can use a competency to strengthen the business and achieve strategic business objectives. In some parts of
the world, competencies may remain consistent, but the definitions and models may require some alterations for other regions.

Source: Indra Lahiri, Creating a Competency Model for Diversity and Inclusion Practitioners, The Conference Board, Research Report 1420,
2008, pp. 11–18.

4 Managing through the Tough Times
Dealing with a challenging economic climate requires

D&I professionals to take a hard look at priorities and

projects, sharpen their focus, and improve alignment with

a company’s overall business objectives.

Maintaining momentum against
strong head winds
A pulse poll of the 211 participants at The Conference

Board Diversity and Inclusion Conference held in

Chicago in May 2009 found that almost half (48 percent)

of the respondents had had budgets cut in the preceding

18 months and just under a quarter (24 percent) had

experienced staff reductions. But D&I executives who

experience such reductions shouldn’t take them person-

ally. If cuts are being made to their function, they are

likely happening to everyone else across the organization.

The important goal is not to lose the momentum you

have built within your organization for D&I programs

and initiatives. And it’s not all bad news: 19 percent of

those surveyed at the conference had actually seen their

budgets increase in the previous 18 months.

It has become a business cliché to suggest that turbulent

times should be seen as an opportunity rather than a

threat—admittedly, a difficult mindset to keep if your

budget and staff have just been slashed. Still, attendees at

the joint meeting of the diversity councils that preceded

the Chicago conference described how the recession had

forced them to take a hard look at priorities and projects

within their own function. Even if the primary challenge

is to just hold fast, the current environment does offer

opportunities to introduce new processes, new percep-

tions, and new efficiencies within the D&I function. Yes,

there are ways to do more with less, but you may actually

want to do less with less and tackle fewer but highly pri-

oritized and relevant initiatives and execute them at the

highest levels.

Balancing the short and the long terms
During the current economic downturn, it is important

to balance long-term objectives with short-term demands.

While the pressure to alter course can be enormous, the

dynamics of the economy should not divert attention

from the long-term benefits that diversity and inclusion

brings to an organization. Council members identified

some basic tactics that D&I executives can use to cope

with the recession and maximize some of the opportunities

offered by the downturn.

Embed D&I deeper into the organization An altered

business strategy can present opportunities to make

diversity an integral component of other functions and

business units. The current downturn could be a blessing

in disguise if it accelerates initiatives already underway

or forces somewhat reluctant departments or individuals

to quit stalling.

Sharpen focus and alignment One D&I executive’s

perspective shifted from a broad view of the diversity

employment pipeline to a narrower one on how to align

hiring (and retention) of leadership and high potentials

with the company’s new strategic priorities.

Prioritize D&I work when budgets are tight Do a few

things well, not just several things halfway. Prioritize by

impact and alignment to overall business strategies and

commit to doing the few you do choose to do well.

Renew and reinforce CEO/C-suite commitment

Obtain a reaffirmation of support with updated language

that reemphasizes the CEO commitment to diversity and

inclusion, even in the current economic environment.

Reshape and refocus communication The D&I function

should not be excluded from efforts to increase trans-

parency in communications. It should educate internal

partners and external customers about the function.

Celebrate successes.

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Emphasize the talent management role Many council

members noted that tough economic times often cause

companies to lose focus on talent management. While the

tactics for recruiting and retention may change, it would

be a grave mistake to ignore key talent in the D&I function

during these times. Some recommended strategies and

tactics for good D&I talent management in the current

environment:

• Recruit new talent Layoffs and cutbacks often
make strong, experienced, and highly qualified

candidates available in a number of countries and

regions.

• Build relationships for future recruiting
Companies should take this step even if they are

not currently recruiting. Maintaining a strong

employee brand and cultivating relationships will

pay dividends when hiring starts again. Leaving

the recruiting marketplace now may mean years to

get reestablished when the good times return,

which will leave companies that dropped out

behind competitors who stayed the course.

• “Re-recruit” existing employees and sharpen the
focus on retention There are several ways to do
this, including building renewed excitement for

the benefits of diversity and inclusion across the

organization, recognizing the contributions and

sacrifices of existing employees, and identifying

new responsibilities for the talent that is retained.

There may also be new opportunities for succession

planning and appointments as reorganizations and

restructuring occurs.

• Leverage ERGs to sustain D&I initiatives In addition
to their business focus, ERGs should also consider

how they can benefit the employee population and

the community at large. ERGs can be a great way

to use limited resources to provide multicultural

marketing help, global support and input for D&I

initiatives, and advocates who can act across

geographies.

For D&I professionals, the challenges of building a diverse and inclusive
workplace—both region by region and globally—can be daunting. Participants
at the global joint meeting of The Conference Board Diversity and Inclusion
Councils focused on current trends and challenges in the field and how
multinational companies struggle to embed D&I programs in multiple
cultures around the world.

This graphic maps the discussions that centered on the basic challenges
facing the profession today and the core issues affecting the building of
an effective D&I function, especially during turbulent economics times.

Artist: Brandy Agerbeck of loosetooth.com (www.loosetooth.com)

C o u n c i l P e r s p e c t i v e s – D i v e r s i t y a n d I n c l u s i o n : G l o b a l C h a l l e n g e s a n d O p p o r t u n i t i e s T h e C o n f e r e n c e B o a r d 1 9

What are the indicators of success for the spread of diver-

sity and inclusion throughout an organization? How do

you measure those indicators? The answers to these two

questions, according to members of The Conference

Board Diversity and Inclusion Councils, remain elusive.

It is difficult to monetize the impact of such traditional

metrics as retention or employee engagement and

to connect them directly to a company’s bottom line.

Determining a true ROI for diversity and inclusion is

a work in progress. (See “The Perils of Measuring the

ROI of D&I” below.)

Moving the Profession Forward:
Metrics and Next Steps

In the past 10 years, diversity and inclusion practitioners’
use of scorecards to track representation, promotion, and
turnover rates by race/ethnicity and gender has grown
substantially.a

Building on the approach championed by Harvard Business
School scholars Robert S. Kaplan and David P. Norton, D&I
practitioners have created diversity objectives (e.g.,
“increase representation of women in the senior leadership
ranks”), identified diversity measures (e.g., percentages of
total senior leaders belonging to various groups), established
targets (e.g., “on par with the percentage of women in the
total workforce”), and created initiatives that focus on
achieving these targets (e.g., instituting mentoring programs
and rotational assignments, presenting a diverse slate for
open leadership positions, etc.).b Many have also embraced
Kaplan and Norton’s “strategy maps” concept by illustrating
the methods by which diversity strategy could be accom-
plished through innovation and learning, internal business,
and customer perspectives.c

Notably, D&I practitioners have used scorecards and strat-
egy maps to hold senior leaders accountable for achieving
diversity targets, with some companies basing a portion of
bonus compensation on successful execution.d There is no
doubt that the use of diversity scorecards and strategy maps
is important, but they often fall short of describing why
diversity targets (or metrics for that matter) are critical and
how meeting them would generate financial value for busi-
nesses. Therefore, inconsistencies between what D&I practi-
tioners believe is valuable, what they actually measure, and

what businesses tend to value have prompted much
concern over “the ROI of D&I.”

Intuitively, D&I practitioners believe that the creation of
a balanced and representative workforce that mirrors the
marketplace; a fair, respectful, and inclusive culture that
seeks full employee contribution; a representative and
balanced leadership team that mirrors the company’s
workforce; and parity in pay and promotions can positively
impact business performance.e Yet they often lack hard
evidence (e.g., a calculated ROI) when business leaders
question the value of diversity and inclusion. Many consult-
ing firms and D&I practitioners have taken a stab at finding
the relationship between D&I and financial performance over
the past several years. At best, these efforts have only found
a correlational rather than a causational relationship. Perhaps
this can be explained by the use of insufficiently rigorous
research methodologies, which fail to evaluate the linkages
all the way up to firm-level outcomes and tease out how
other strategies — both human capital (e.g., human resource)
and non-human capital — influence business performance.

Many have sought to establish a performance relationship
between diversity and business by first examining existing
D&I strategies, and then attempting to find links to business
value. While this method may seem prudent, the most
frequently mentioned conclusion — “D&I has led to signifi-
cant year-over-year revenue growth” — ignores the fact that
marketing professionals, technology professionals, and
human resource professionals are also claiming the same
general relationship.

The Perils of Measuring the ROI of D&I
by Stephanie Creary

a See Stephanie Creary, Leadership, Governance, and
Accountability: A Pathway to a Diverse and Inclusive Organization,
The Conference Board, Research Report 1429, 2008, p. 21.

b Robert S. Kaplan and David P. Norton, The Balanced Scorecard:
Measures that Drive Performance (Boston: Harvard Business
Review¸1992).

c Ibid.

d Creary, Leadership, Governance, and Accountability, p. 17.

e Creary, Leadership, Governance, and Accountability, p. 14.

(continued on page 20)

Regardless of the metrics selected, it is critical that they

are aligned with the measures of business success used

by the organization. Without that alignment, without

being relevant to the business, diversity and inclusion

metrics are just a bunch of numbers. Even though the rigor

needed for compiling data using metrics is an activity

some D&I executives do not connect to, they must become

comfortable with the process. They must be able to deter-

mine and communicate how such classic metrics as hiring,

turnover, retention, representation, promotions, and sup-

plier diversity affect business operations. Moreover, the

definition of success should be less about benchmarking

and more about continuous improvements that lead to

outcomes that affect the bottom and top lines.

How can D& I professionals connect the dots and link

traditional metrics to business outcomes? The following

examples offer some initial avenues.

Talent management and talent development While

bringing talent onboard is part of the job description, a

D&I executive will not be successful unless he/she man-

ages and nurtures the talent properly. When adding head-

count in key areas of growth, diversity is integrated with

business strategy. Developing talent internally means not

having to hire outside, and that creates value.

Contribute to multicultural market share It delivers

new business, new markets, and connects to profits and

growth.

Supplier diversity In many organizations, this is

aligned with corporate social responsibility objectives.

Many C-suite executives are still unaware of the bottom-

line benefits of a diverse supply chain and how a strong

program that helps develop diverse suppliers can deliver

real cost savings. In the United States, the unfolding

government stimulus plans at various federal, state, and

local levels may introduce significant cost-saving oppor-

tunities for an organization that has a strong supplier

diversity initiative.

Cultural competency This is a must-have for D&I

executives that can be leveraged across the organization

to train senior business leaders in the skills required to

do business anywhere across the globe. It can also be

leveraged to help executives in the development of cross-

cultural and virtual teams. D&I executives need to develop

leaders who are learning about other people and other cul-

tures, not just about themselves and their own culture.

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f John Gibbons and Christopher Woock, Evidence-Based Human
Resources: A Primer and Summary of Current Literature, The
Conference Board, Electronic Report 15, 2007.

g Christopher Woock and John Gibbons, Evidence-Based Human
Resources in Action: Case Studies, The Conference Board,
Research Report 1427, 2008, pp. 6–8.

h Woock and Gibbons, Evidence-Based Human Resources in Action:
Case Studies, pp. 9–11.

In contrast, more quantitatively rigorous “top-down” and
“bottom-up” methods start with key financial and organiza-
tional performance measures and then look for human capital
strategies that drive the desired outcomes. Research from
The Conference Board identifies these methods as “evidence-
based human resources” (EBHR), which rests on two key
characteristics — a focus on business strategy and standards
of evidence (i.e., determining the presence and strength of
a causal relationship).f This approach is already used by
firms such as Hewlett-Packard and Capital One. Since 2004,
HP has been using top-down, evidence-based practices to
measure behavior and performance of its customer support
operation teams and how these are aligned with the com-
pany’s ability to build and maintain a

“customer-centric culture.”g Capital One has had a solid
history of using bottom-up analytics to demonstrate the
strategic value of human resource practices to firm-level
outcomes. Their workforce analytics team has been able
to successfully demonstrate the impacts of the company’s
executive coaching program and has established links
between bank teller attrition, customer satisfaction, and
revenues per account at retail branches.h

While it is true that EBHR has traditionally investigated
evidence-based practices within the HR function, it does
offer a promising model for D&I practitioners who seek to
develop similar quantitatively-rigorous studies that extend
beyond an often oversimplified “ROI of D&I” approach.

(continued from page 19)

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Diversity and inclusion professionals attending the joint
meeting were given the opportunity to use a blog to
raise and respond to issues affecting the future of the
profession and to pose questions about the challenges
and direction facing the profession. Here is a sampling
of the issues raised.

The Issue: Has there really been progress? “While
82 percent of those present lead diversity and inclusion
strategy, more than half of those present have five or fewer
years of experience in diversity and inclusion …. What does
this mean in terms of the sustainability of the field … for
knowledge transfer? Or, are we just asking and answering the
same questions today that we were asking and answering 15
years ago? Have we really made any progress?”

Response “The questions asked 15 years ago were com-
pliance driven and focused on short-term results. Today,
I believe that we are asking questions more strategically
with long-term results in mind. Our progress over the last
15 years has been around our ability to more effectively
position D&I as a strategic business imperative, but we
still struggle to show what ‘good’ really looks like.”

Response “We have an opportunity to learn from the
United States. And we also have a responsibility as D&I
practitioners to learn from the mistakes and places where
D&I is ‘stuck’ in the United States, so that we realize that
an entry point for this work outside of the United States
does not have to be from compliance or legislation. New
generations, cultures, [and] business practices around the
world could lead us to some other creative breakthrough
entry and impact points for this work if we can learn to
challenge our own assumptions and ideas about what we
call ‘the work.’”

The Issue: Virtual teams “How can you [affect] the
culture of virtual employees? If the majority of the team
is virtual, how can this be embraced, what strategies can
be incorporated to make this virtual culture more inclusive?
Furthermore, any suggestions/ideas on how to first
establish a baseline [or] what are the baseline metrics
to do this?”

Response “A way to establish a baseline could be an
employee opinion survey (EOS) that includes particular
questions regarding D&I. Once you have the results, you
could even do focus groups (even virtually) to under-
stand issues further.”

The Issue: When corporate and national cultures collide
“If majority group men (with respect to race, skin color,
sexual orientation, age, and ability) in each country outside
the HQ country wanted to avoid D&I work, would asserting
that what is being proposed is HQ-country-location-centric
and demonstrates [a] lack of understanding of local cul-
ture, would this be an effective strategy for avoiding this
conversation? Perhaps what we are experiencing when we
try to address D&I globally needs to at least accept that
this might be a possibility worthy of further investigation.”

Response “How can we break this down? Are we asking
them ‘Why’ enough? What’s needed is to engage earlier
in the process with real examples and dialogue.”

The Issue: Defining diversity “It’s true that people
aren’t all in the same place, and it can be confusing
sometimes to hear contrasting philosophies about D&I
approach. For instance, one company says difference
makes the difference and another one says diversity is
more about similarities than differences. One company
says outcomes matter; another says outcomes are not
important, only impact. Most companies still agree that
you must have metrics to measure progress and metrics
often are physically defining (i.e., skin color, gender, sexual
orientation), but one company proposes having only one
category — “human” — and measuring if they feel valued,
included, and empowered to make a difference. Is that
assuming that biases against physical characteristics don’t
exist? I’m not discounting the idea, just trying to figure out
how/if that would really work.”

From the Blogosphere: Tough Questions about the Real World

This report is based on presentations and discussion from two unique forums presented by The
Conference Board. In May 2009, The Conference Board hosted a three-day joint meeting of members
of its Diversity and Inclusion Councils from around the globe. The meeting featured more than 60
members representing the best and brightest in the diversity and inclusion (D&I) field at many of the
world’s largest and most innovative companies from the Americas, Europe, and Asia. Immediately
following that meeting, The Conference Board held its annual Diversity and Inclusion Conference,
where 211 participants focused on current trends and challenges in the field and the struggle
multinational companies face when embedding D&I programs in multiple cultures around the world.

The joint council meeting, which was held under the Chatham House rule — participants may use the
information received; participants may not reveal the identity or the affiliation of the speaker(s); and
participants may not reveal the identity or affiliation of any other participant — is the main source of
material for this report. The D&I conference supplied supplemental information, which, unlike the
council material, is credited to specific sources. The views and opinions expressed in this report are
those of the council members and conference presenters and participants.

About the Authors

About This Report

Charles Mitchell is the executive director of
publishing at The Conference Board and publisher
of The Conference Board Review magazine.
Mitchell spent more than a decade as a reporter
and writer for United Press International based
in Johannesburg, Nairobi, Moscow, and Washington.
The former foreign editor of the Detroit Free Press
and European editor for World Business magazine,
he is the author of several books dealing with
international business travel, cultures, customs,
and etiquette, published by World Trade Press.
He holds a bachelor’s degree in economics from
the University of Pennsylvania.

Stephanie J. Creary serves as a research asso-
ciate in Human Capital at The Conference Board.
Her research interests include talent management,
multi-generational workforce, diversity and inclu-
sion, and survivor syndrome. Her publications
for The Conference Board include: Leadership,
Governance, and Accountability: A Pathway to a
Diverse and Inclusive Organization and Mission
Accomplished? What Every Leader Should Know
About Survivor Syndrome. Creary has also served
as a research associate at Harvard Business
School where she co-authored several case
studies related to leadership, diversity/inclusion,
and strategy, and partnered with faculty to develop
a management textbook. She is currently a PhD
candidate at Boston College’s Carroll School of
Management. Creary also holds a master of
business administration degree with high honors
from Simmons College School of Management,
and a bachelor of science degree and a master of
science degree from Boston University.

About The Conference Board Council Program
Membership in one of our Councils affords entrée into a select and trusted community of 2,500
executives from a broad array of industries, functions, and regions—executives who know the value
of this rich source of insights and new approaches.

Enduring relationships are the cornerstone of the Councils experience. Enhanced by our global,
enterprise-wide reach, these relationships span the world and extend value across your organization.
Confidential peer dialogue combines broader perspective, specific knowledge, and shared experience
to save you precious time and public missteps.

To learn more, contact Katie Plotkin, Councils Membership Manager, +1 212 339 0449 or
katie.plotkin@conference-board.org. Council participation is by invitation only and is an exclusive
benefit for The Conference Board member organizations.

The Conference Board Diversity and Inclusion Councils
Asia-Pacific Diversity and Work-Life Strategy
Council

Council of Diversity Executives

Council on Work Force Diversity

Diversity & Inclusion Council

Diversity & Inclusion Strategy Council

Diversity Business Council

European Council for Diversity in Business

Supplier Diversity Leadership Council

Supplier Diversity Leadership Council II

Related Publications
Research Reports

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Research Report 1447, 2009

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Executive Action Reports

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Publications team
Publishing Director Charles Mitchell
Vice President, Councils & Working Groups Lorrie Foster
Editor Timothy Dennison
Creative Director Peter Drubin
Production Margaret Cesario

Council Perspective CP-014 © 2009 by The Conference Board, Inc. All rights reserved.
The Conference Board® and the torch logo are registered trademarks of The Conference Board, Inc.

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Contact Us | Site Map | Search

Article

Cultural Competency — Is it the third wave of
diversity?

Barry Cross, Jr., President & CEO

Some people equate awareness of ethnic foods and
holidays with “cultural competency.” But that is just the tip
of the iceberg. Cultural competency and awareness are
much more. They involve developing knowledge,
sensitivity and understanding of other ethnic, racial,
gender identity, and religious groups.

In today’s rapidly changing business world, cultural
competency is critical. In fact, it has become the “third
wave” of diversity thinking—after Affirmative Action and
inclusion. (See Sidebar 1). All over the United States, in
corporations, governmental agencies, non-governmental
organizations, schools and hospitals, a critical need has
developed for employees to understand and be sensitive
to their clients’ ethnic languages, customs, alternative
healing choices, and religious practices, to name just a
few of these differences.

Developing “cultural competence” answers this need.
When done right, it provides a unique nonjudgmental
learning process to illuminate cultural differences and then
generate awareness, sensitivity, and useful knowledge.

In my research, I’ve explored the evolution of field of
diversity, since the time of Affirmative Action right up to the
current era of globalization. First, I noticed the field is
organic and has developed in three basic phases or
waves. By organic, I mean that the evolution of diversity
has reflected the changing
demographics and political and social climate of the U.S.
workplace.
These waves are related to the social context of the times.

The first wave was when the field was in its infancy in the
mid 1970s. Early diversity training was called sensitivity
training and was in response to the changes in workforce
demographics prescribed by Affirmative Action. In the first
wave the new entrants to the workforce were women and
Blacks since
they were the focus of the women’s and civil rights
movements. In the early 1980s, the definition began to
become increasingly more inclusive.

The inclusion wave
By the 1990s, the field of diversity had to adjust to the

Building bridges of
understanding and
common interest among
members

“Diversity is more than simply
demographics. It’s also about
the perspectives we each bring
to the table through our unique
experiences. Any truly
successful organization values
diversity, promotes
inclusiveness and appreciates
the benefits diversity brings to
strengthening a community.”

Harry P. Trueheart
Chairman, Nixon Peabody LLP

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changing political climate. The political culture wars
ushered in the era of politically correctness, visible in such
attitudes like “don’t ask don’t tell,” and
“I was more open to cultural competence than I was at the
start of
the wave of inclusion.”

“Some people equate ethnic foods and holidays with
‘cultural awareness.'” seeing and treating everyone the
same. In this politically correct nvironment diversity fatigue
set in and the second wave of “inclusion” was born. My
opinion then was, “Inclusion brought more people to the
table but left out the conversation about privilege and
power.”

In today’s lackluster economy our gaze has turned to the
“global arketplace,” thus creating a thirst for cultural
competence and hence the third wave. Since I have
approached this research as a learner, I was more open to
cultural competence than I was at the start of the wave of
inclusion. I was open to the cultural competence approach
because it builds on the wisdom learned during the first
two waves and it brings a fresh approach with a lot less
baggage.

Awareness of different worldviews
When I am conducting cultural competency training I ask
the question, “What is your worldview?” I notice that
participants are much more open to that question than
when I ask them about their”self awareness.” Asking
individuals to explore their worldview is an easier way to
get people to talk about their beliefs, attitudes and values.
This approach brings a much
richer conversation to the table and doesn’t create as
much resistance. I have also found that discussing
worldview over self awareness creates more
understanding of how individuals are influenced by”pop-
culture,” politicians and economics. In this way cultural
competence allows for a broader context in which to
discuss the impact of our perceived or socially constructed
human differences.

Differences in social identity groups
Another important aspect of cultural competence is that it
asks individuals to notice the differences of individuals
and their cultural or social identity groups. You cannot be
culturally competent without observing the differences.
This breaks through the politically correct notion of seeing
and treating everyone the same. I believe that seeing and
acknowledging our differences is a giant first step toward
becoming more sensitive and inclusive.

Asking individuals to acknowledge that there are
meaningful differences between people develops cultural
awareness, sensitivity, knowledge and intelligence. What
excites me is, now I can also point out there are also
meaningful differences by social identity too. I realize that
I am sneaking social identity into the cultural competence
mix, please understand that I come from an “old-school”
diversity worldview. This is how I integrate and assimilate.

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Cultural competency usually involves an individual (or
organization) internalizing changes in terms of attitudes,
behavior and values. Cultural awareness and sensitivity
refer to the qualities of openness and
flexibility that people need in order to develop in relation to
others. Cultural sensitivity is the knowing that cultural
differences exist as well as similarities, without assigning
values, i.e., better or worse, right or wrong, to those
cultural differences. Cultural awareness and sensitivity
must be supplemented with cultural knowledge.

Definition of cultural knowledge
“Cultural knowledge” is the familiarization with selected
cultural
characteristics, history, traditions, values, belief systems
and behaviors
of the members of other ethnic groups. Cultural
knowledge is not
stereotyping, it is ongoing learning, understanding and
accepting others’
culture, race ethnicity, nationality, religion, customs or
belief systems.
Cultural intelligence is a person’s capability to function
effectively in situations characterized by cultural (or social)
diversity. Cultural intelligence is a critical capability that
enhances individual and organizational effectiveness. It
also enhances interpersonal interactions in a wide range
of social contexts.

The elements of cultural intelligence
Cultural intelligence asks individuals to learn about their
own culture. Cultural intelligence requires that when your
are discussing differences, you “name them” and move
from the “high-level” definitions or classifications of social
identity such as race (Hispanic, Asian, White and Black) to
a more textured understanding of differences based on
culture, ethnicity and nationality, such as Columbian,
Cambodian, Italian, Haitian, to name just a few.

Cultural intelligence provides insights about an individual’s
capacity to cope with multicultural situations, engage in
cross-cultural interactions, and perform in culturally
diverse work groups. Cultural intelligence is an individual
capability, which means it is not an aspect of personality
or personal interests. It is a set of capabilities that leads to
specific outcomes—such as decision making, innovation,
performance and adjustment in culturally diverse settings.
Cultural intelligence is dynamic capability, which means it
is malleable, not fixed, but that it changes from culture to
culture based on people’s interactions, efforts, and
experiences. Restated, you can enhance your cultural
intelligence. Cultural intelligence is not specific to a
particular culture. For example, it does not focus on the
capability to function effectively in France or in Japan.
Instead, it focuses on the more general capability to
function effectively in culturally diverse situations, perhaps
in France, Japan or anywhere else. Cultural intelligence
can even be practiced at home in the United States, for
example the cultures
of Miami, New Orleans, San Francisco and Philadelphia

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are not the same. “Back in the day we used to call this
street sense.”

In conclusion, cultural competence is a holistic process
that begins with awareness, develops sensitivity and
knowledge and ends with intelligence. The exciting part
about cultural competence for an”old-school” diversity guy
like me is, I can now overlay and integrate cultural
competence onto social
identity learning and create social identity competence,
awareness, sensitivity, knowledge and intelligence. It is all
about finding the right language to make the invisible
visible! By the way, culture is invisible.

Barry B. Cross Jr., bcross@eyca.com is president and
chief executive officer of Elsie Y. Cross Associates
(EYCA), a consulting firm founded in Philadelphia
Pennsylvania in 1975. EYCA is an organizational
development (OD) and diversity training firm founded by a
pioneer in corporate diversity. Cross has extensive
international and domestic experience consulting on
diversity-related and OD issues for chief executive
officers, chief diversity officers, and other top level
executives at Fortune 500 corporations, financial service
institutions, universities, manufacturers, utilities,
government agencies, non-profits, et al.

The Diversity Factor © 2010
ISSN 1545-2808
Winter 2010 (4th Qtr, 2010)
Fighting for gender equality
Volume 18, Number 4

3/2011

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mailto:bcross@eyca.com

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Chapter

Global Diversity

and Inclusion

14

Diversity Primer | 215Diversity Best Practices

Today, an ever-changing global marketplace and labor force demands continue to challenge long-held business assumptions and force major structural reorganizations
at many companies across key business, marketing, and talent recruitment and retention
functions. The global gold rush for multicultural markets, diverse employees, and untapped
consumer bases has already begun. Globalization is a powerful buzzword in corporate
circles, and corporate leaders are eager to establish a strong presence in a variety of emerging
markets. New commercial innovations and powerful technologies are truly bringing the
world’s best products and services right to our doorsteps.

Global diversity, like domestic diversity, offers rich opportunities for company growth
through an increased talent pool, wider consumer base, and additional revenue streams.
Yet, global diversity and inclusion initiatives face particularly challenging aspects, such as
geographical distance, different time zones, virtual relationships, language barriers, and
distinctive cultural values, actions, and assumptions.

Success in global markets will require more than boutique multicultural initiatives.
Competing on a multinational playing field will require a sustained effort to integrate
distinct cultural and more inclusive values into a newer and broader vision for company
growth and advancement.

In this chapter, we will explore the following questions:

• How do best practice companies create a sustainable global diversity and inclusion
structure?

• What must an organization do to achieve corporate understanding of global diversity and
inclusion best practices?

• Who are the key players in a global diversity and inclusion team?

• How should the success of global diversity and inclusion initiatives be measured? What
accountability systems should be established toward this end?

Global Diversity and Inclusion

| Diversity Primer216 Diversity Best Practices

Creating Sustainable Global Diversity and
Inclusion
In the twenty-first century, rapid globalization requires a new look at diversity. Imposing
U.S.-based diversity and inclusion initiatives onto an international playing field without
thoughtful regard to the distinctions that create business identities and cultures can result in
tense relationships and misunderstanding, as well as loss in revenue, staff, and credibility.

While diversity in the United States may speak to equality and inclusion along the lines of
gender, race, disability, age, religion, and sexual orientation, this definition may not apply
directly to a nation where hierarchical race or gender ranks are the norm. This is not to
suggest that U.S. companies should dispose of their current values surrounding diversity
and inclusion, but rather that companies should be open to adapting to and learning from
other cultures, thus creating a universal definition that speaks to a global audience and can be
tailored to local regions.

To effectively address global D&I issues, organizations must understand how having diversity
in workforce representation, as well as in the way the company thinks and approaches
strategic issues, will bring greater value to the company and its stakeholders.

In developing global diversity programs, most corporate strategic planning processes focus on
the four “As”: Analysis, Action planning, Alignment, and Assessment.

• Analysis: Begin by analyzing your existing internal structures and capabilities
as they relate to the demands and opportunities of the external global business
environment. Ask where are we now, and where do want to go?

• Action planning: Create strategic goals based on the gap analysis and by utilizing
the diversity strengths and ideas of your global team, develop specific action plans
to reach these goals. Ask now that we know where we want to go, how do we get
there?

• Alignment: Align the strategic action plan with the existing infrastructure of
your company, infusing global D&I initiatives across all levels and divisions for
maximum sustainability. Ask how do we make our global D&I initiatives an
everyday part of our existence, rather than a passing trend?

• Assessment: Assess implementation results through measurement and
accountability tools. These tools should measure progress on the global D&I goals
set during the “action planning” stage. Ask are we progressing toward our goals,
and, if not, what do we need to change?

Devoting adequate corporate time and resources to these four pertinent steps is fundamental
in building a global program that is truly embedded into the company fabric. All too often,

Global Diversity and Inclusion

Diversity Primer | 217Diversity Best Practices

D&I programs are spearheaded under one individual’s leadership only to fade in that person’s
absence. Given the corporate investment it takes to develop a D&I program and the amount
of return that can be achieved through these initiatives, companies cannot afford to reinvent
the wheel every time a corporate leadership change occurs.

The goal is to create corporate cultural change through institutional changes that is lasting
over time. This can only be done through development of a formal global D&I initiative
that is reflected in corporate values, programs, and day-to-day conduct. Best-practice
organizations integrate global diversity into day-to-day operations to ensure that it is ongoing
and contributes to corporate D&I and business results.

In creating a global D&I structure, companies should:

• Build a global team that reflects the company’s diverse global employee, consumer, and
shareholder base

• Create a shared understanding of what the company means by “global diversity and
inclusion”

• Give responsibility and ownership to line employees and local organizations, while
providing centralized monitoring and support

• Engage senior leaders and hold them accountable

• Establish network and affinity groups and diversity councils (in a manner compatible
with a company’s culture and employee relations philosophy)

• Provide training to the entire workforce with particular focus on management and
executive training

• Incorporate D&I into mentoring efforts and leadership training

• Foster communication channels for sharing and learning throughout the organization

• Develop assessment tools for measuring progress on an ongoing basis.

The following sections will explore three of these areas in greater depth: creating a shared
corporate understanding of global D&I, building a global team, and developing assessment
tools for measuring progress.

Achieving Corporate Understanding of Global D&I

Global D&I does not yet have a universally shared definition. The myriad of definitions
that do exist stem from each definer’s subjective framework and are influenced by national
context, political agenda, dominant culture, religion, and gender, among other factors,
creating an ongoing fluctuation of the term “global diversity and inclusion.”

Global Diversity and Inclusion

| Diversity Primer218 Diversity Best Practices

A company’s global mission statement should not and cannot be mere rhetoric if the
company plans on succeeding in its endeavors. Far too many companies lack a true
understanding and commitment to global diversity. Without a clear and shared vision of
global D&I throughout the organization, global efforts will only prove to shift the company
laterally rather than propel it forward.

The organization’s global vision must go beyond the standard one for domestic diversity and
acknowledge the global reach and cultural differences inherent in doing business both in and
among different countries. The end goal is to become increasingly more competitive and
innovative throughout the world by fostering common areas within diversity and inclusion,
globally and locally.

Further, companies must reflect by asking, “Are we honestly being inclusive of other cultures
and ideas in creating our definition of global diversity and inclusion, or are we merely trying
to impose our U.S.-centric views on others?” It is naïve to believe that in a world as large
and diverse as ours, one country or one people holds supreme knowledge. Nonetheless, these
notions exist in many companies that do business worldwide and must be set aside before
corporate cohesion and key partnerships can form to build global initiatives.

A few questions corporations should ask as they create a common definition of global D&I
are:

• How do American value statements underlying domestic diversity and inclusion efforts
need to be altered to have meaning and relevance outside the United States?

• What are our basic beliefs and assumptions underlying diversity?

• Where do they converge with other nations?

• How can we tailor our definition to local regions for greater acceptance and
effectiveness?

Three guiding principles for global D&I:

• Respect core human values. Human dignity and basic rights should remain paramount
regardless of the country/region in which you are doing business.

• Respect local traditions. You cannot expect to change the traditions and culture of the
country/region in which you are doing business.

• Find common ground. Understand that there will be possible areas of disagreement
when intersecting universal ideas with local context, yet strive to find the common areas
and use them as a starting point for moving your global.

Global Diversity and Inclusion

Diversity Primer | 219Diversity Best Practices

Building a Global Diversity and Inclusion Team

Global diversity and inclusion teams, like corporate global D&I mission statements, should
reflect their function by being internationally representative and inclusive. While this may
seem like common sense, oftentimes corporations pull together “global” teams that appear
haphazard rather than strategic, domestic rather than global.

Bringing diverse groups of people to work together is not enough. True diversity encompasses
inclusion and not just sheer representation. In order for companies to be successful in their
global approach, they must not only bring together key global players, but also create a space
for all members to contribute in a meaningful way.

To achieve this, corporations can leverage their worldwide human capital by choosing team
members from different nations and regions, corporate levels, genders, sexual orientations,
generations, ability groups, and skill sets. Differences create barriers when not managed
well, yet when viewed and utilized as assets they can help to achieve results that are more
innovative and comprehensive than those stemming from homogeneous groups.

Globally-diverse teams can benefit by paying special attention to the following best practices:

• Team Function Clarify roles and functions. The job of the team is to design,
implement, assess, and explain the company’s global diversity initiative. The team
should be able to identify key diversity issues globally, locally, regionally, and by
country and tie them directly to the company’s business objectives.

• Work Process Formulate a shared team process. Initially, it is important for the
team to discuss and clarify expectations about how members will work together,
including approaches to meeting protocol, decision making, and feedback.

• Cultural Diversity Create an environment that encourages the team to draw upon
the diverse cultural backgrounds of its members. Awareness of the diverse styles
each team member brings to the team process is the first step; leveraging diversity
for improved team results requires steady attention and commitment from all team
members.

• Conflict Resolution Utilize inquiry and open-ended questions with the goal of
understanding team members’ perspectives. The process of discovering the reasons
behind differing perspectives frequently leads to a new openness on all sides and to
solutions that could not have been reached in the absence of this information.

• Information Exchange Build communication systems for flowing information
easily and frequently between members. While most global teams meet virtually,
invest in at least one face-to-face team meeting at the beginning of the team’s
interactions to establish rapport.

Global Diversity and Inclusion

| Diversity Primer220 Diversity Best Practices

Although the challenge of leading global teams remains a concern for many, the business
case for increasing the number of worldwide diversity teams is solid and will only continue
to expand in line with the global market. If structured and supported adequately through
corporate resources and strong backing from leadership, global teams can excel in terms of
efficiency, innovation, and outcomes.

Establishing Accountability and Measurement Systems

To be effective, organizations must tie all diversity and inclusion initiatives directly to
measurable outcomes. However, assessing the impact of a global D&I initiative can be
challenging given the different reporting requirements and laws from country to country,
especially as they pertain to representation numbers. Nonetheless, the critical step is to move
forward in customizing a measurement system that speaks to the company’s goals to ensure
reflection, feedback, and accountability.

Successful global leaders measure success in global diversity and inclusion as they measure
other business factors. Some examples of metrics include:

• Diversity representation (particularly in senior level positions)

• Hires, promotions, turnover by gender, nationality, ethnicity, etc.

• Achievement of strategic global diversity goals

• Sales in diverse, global markets

• Employee survey scores

• Conference and event survey feedback

• Customer satisfaction by demographic segment

• Number of complaints or legal actions

Benchmarking is another powerful tool in gauging the gap between a company’s present
global diversity status and the level it needs to reach to be among best practice organizations.
Some benchmarking strategies include:

Identify areas for improvement. Since benchmarking can be applied to a wide
range of business areas, a variety of research techniques should be utilized. These
tools include: surveys, quantitative data collection and research, focus groups,
marketing research, and qualitative information gathering through methods such as
informal meetings and observations.

Identify organizations that are leaders in these areas. Confer with industry
contacts, search the internet, consult trade associations, and survey customers to
determine the companies that are paragons in your areas of global diversity focus.

Global Diversity and Inclusion

Diversity Primer | 221Diversity Best Practices

Research best-practice organizations. Best-practice companies share a wealth
of knowledge about their global practices and procedures on their websites, in
interviews and articles, and at conferences and seminars. Conduct research on these
best practices or hire a consult to research on your behalf and tailor the findings to
fit your company’s business goals.

Infuse best practice strategies into corporate infrastructure. Harness these leading
edge practices by developing implementation plans which include funding the
initiatives, selling the business case, and garnering organizational leadership support.

Measurement as it relates to accountability is a continuous process in which organizations
constantly seek to challenge their practices. Indeed, setting new goals and challenges will be a
continuing exercise for global organizations.

Conclusion
In this chapter, we:

• Studied how best practices companies create a sustainable global diversity and
inclusion structure.

• Assessed how to achieve corporate understanding of global D&I best practices.

• Considered who the key players are in a global diversity and inclusion team.

• Discussed effective ways to measuring and establishing accountability for the success
of global diversity and inclusion initiatives.

Ready or not, globalization is rapidly changing the landscape of the business world, and
global diversity and inclusion requires a new corporate playbook to create sustainable,
long-term success. Without this approach, leaders risk entering a country’s borders only to
realize as they delve deeper, that larger issues are at stake, forcing them to retreat when they
do not have quick answers. If corporations are myopic and only view global D&I as strictly
a manufacturing or operational issue, they risk failure of the business objective but also of
future reputation in foreign markets.

The most insightful leaders know that even within the United States, adapting to the
specific region and culture is a key factor in whether or not business flourishes. To remain
competitive, corporate executives must make a conscious and distinct shift in vision around
definitions of diversity and inclusion in a global marketplace, and they must embrace
global D&I as not only a necessity, but as a true asset to increase sustainability, profit, and
shareholder value.

Global Diversity and Inclusion

| Diversity Primer222 Diversity Best Practices

Case Study:
AT&T Inc.
The United States offers a wide consumer base and a rich employee talent pool. AT&T
knows this—it’s the nation’s largest wireless carrier based on subscribers. But beyond U.S.
borders, AT&T has effectively tapped the international market as well. It is the world’s
largest telecommunications company with $120 billion in revenues and more than 100
million international customers. It carries more than 13.4 petabytes of data traffic daily to
nearly every continent and country. It conducts business in more than 150 languages and
provides specific services and products for the diverse customer base.

Naturally, the 309,050 AT&T employees worldwide are as diverse as the company’s
customers. AT&T values individual perspectives and promotes an environment of
inclusion. Women make up 44 percent of all employees. People of color make up 35
percent of U.S. employees. There are more than 1,700 AT&T reps working in 22 Call
Centers that provide service and information to 1.5 million customers in languages other
than English.

Clearly, the removal of barriers in employment allows for recruitment from a wider global
talent pool, longer retention of better multicultural workers, improved international
community relations, and an enhanced corporate image all over the world. But it’s not just
about hiring someone from another country; it’s also about teaching employees how to
conduct business effectively in that country. AT&T does this through educational sessions
for expatriate workers in order to acclimate them to a new society and to minimize culture
shock.

There are also global diversity organizations that bring AT&T’s vision of international
inclusion to reality. They go beyond just employee recruiting and customer marketing.
The AT&T Procurement Organization is responsible for negotiating and contracting for
goods and services for AT&T. Annually, it purchases over $15 billion worth of products
globally. It also oversees delivering goods and services to international businesses and their
customers to guarantee quality and value.

AT&T has recognized the inherent value of global social responsibility. By connecting
with and improving the communities where it has a presence, it can improve its reputation
and image through actions. AT&T Pioneers is the world’s largest company-sponsored
community volunteer organization. In 2006, the organization donated 14.3 million
hours to community outreach activities. That’s more than $257 million worth of time to
better all involved. Nearly 365,000 AT&T employees and retirees have volunteered in six
continents through the Pioneers.

By expanding in to the global marketplace, AT&T has greatly increased the imperative
for inclusion within its naturally diverse environment. Through organizations, education,
social responsibility, and integrated business strategies, this expansion has been highly
successful for employees and customers. AT&T has truly blazed the trail for global
diversity in a global company.

Global Diversity and Inclusion

Diversity Primer | 223Diversity Best Practices

Case Study:
IBM
Global Workforce Diversity is a cornerstone of IBM’s strategy to differentiate itself as one
of the world’s great companies.

IBM’s commitment to diversity is such that the company has initiated a global strategic
framework for diversity to address how it responds to the plethora of emerging trends in
the countries where it helps its clients do business. Overall, IBM’s intention is to create an
environment that maximizes our employees’ productivity and connection to the enterprise
on a global scale.

Achieving this goal requires IBM to use diversity as a means to engender the innovative
culture that defines the company. That means extending beyond the traditional subjects
of diversity—race, gender, genetics, religion, disability or sexual orientation—by aligning
diversity with globalization so that it becomes a natural extension of the company’s
strategy.

IBM is especially sensitive to the accepted norms of behavior in the various countries
where it operates because the company has a long history of doing business outside the
United States, IBM has employees in more than 75 countries, and it does business in over
170 countries. Additionally, since 1975, over half of IBM’s annual revenue has come from
outside the U.S., while since 1993, more than half of its employees work outside this
country.

Nearly 70 countries where IBMers work have diversity legislation in place. That’s almost
double what it was just three years ago. This is the new era of diversity, the global era. To
operate successfully, IBM believes it must be especially mindful of how it respects and
values differences among people in countries and regions.

Global Diversity and Inclusion

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RAVI HUTHEESING
Intl Keynote Speaker & Cultural Catalyst

How Cross-Cultural Competence Impacts Workplace Culture and Effectiveness

Last month on the blog I discussed the value of failure and how, rather than trying to help young people avoid failures, we
should be more intentional about teaching the ways that failure helps us learn, grow, and ultimately succeed. This month I
want to turn our attention to the workplace as well as to our school environments; specifically how cross-cultural
competence impacts workplace and school culture and effectiveness, and why this topic is more important than ever at
this time in our nation.

The U.S. is currently in the middle of a significant demographic shift. Groups once considered minorities will together make
up at least 52% of the country’s population by 2050, with the population of Hispanics likely to more than double and the
black American and Asian populations also expected to grow by a significant margin.

In the workplace, due in part to globalization, customers and employees will represent an even more diverse mix. Most
organizations are already experiencing this as they hire employees and serve customers from multiple cultures, religions, and
ethnic backgrounds. It partly explains why many large corporations now have multilingual human resource personnel and
customer support staff, and are looking to diversify their boards of directors and executive management teams. This
diversity presents workplace opportunities for high-quality professional development to avoid team conflict, bias, and
communication breakdowns. Without engaging in appropriate, compassionate training for staff and management,
businesses could experience higher turnover, lower morale, and losses in profitability.

To overcome the challenges posed by this shift, schools and businesses need to invest in intentional cross-cultural
competence equipping as part of their overall talent management practices. This is one reason why my
programs were presented in Indonesia, Iraq, and Lebanon by the U.S. Department of State with the focus of bridging across
cultures and defeating some long-standing religious, social, racial, and cultural biases. The same principles apply in the U.S.

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and anywhere in the world.

What is Cross-Cultural Competence?

Culture refers to the shared traditions, beliefs, customs, institutions, folklore, and history of a particular group of people. A
culture is shared by people of the same ethnicity, language, customs or religion. Competence, meanwhile, means to have
sufficient knowledge and skills to enable someone to work in a wide variety of situations.

Cross-cultural competence, therefore, refers to possessing the knowledge and skills necessary to work with people of
different nationalities, ethnic communities, languages, and religions. If a person, school or organization is culturally
competent, it means that they understand, appreciate, and can effectively work with people with different traditions,
beliefs, and customs.

Millennial idealism offers a great opportunity to overcome many social injustices, including racism. This generation is “color
blind” and multicultural, so by embracing this aspect of millennial mindset, we can organically grow out of some implicit
biases that currently hinder cultural competence in the workplace.

The good news is that you can now arrange for cross-cultural competence training for your school or organization where
every generation of employee, from top to bottom, is taught skills to help them interact with people from cultures other than
their own more effectively. These skills often include

Active listening capabilities
People interaction skills
Flexibility, and
Emotional intelligence

Check out this free resource on how you can create cultural competence at work, school, and home. It expands on
the ideas of this article.

Click Here

Benefits of Cross-Cultural Competence in the Workplace

There are several reasons organizations and individuals need to invest in cross-cultural competence training:

It helps us appreciate the perspectives and views of others

Culturally competent employees are open to the views and perspectives of employees from other cultures. This can be vital
in achieving unity within the organization.

Multiple viewpoints can help us find lasting solutions

When people from different cultures work together, varied perspectives come to the table. With more ideas to consider, it
becomes easier to find lasting solutions to existing challenges.

Looking out for each other

A culturally competent workforce also looks out for each other. Individuals are always willing to take action for the collective
good. This, too, can be instrumental in achieving organizational togetherness.

Helps us develop listening skills

One of the fundamental requirements of cross-cultural competence is to possess excellent listening skills. Everyone at the
organization will be willing to hear what others have to say and understand them in the ways that they uniquely express their
views. More important, workers will know how to interpret what they hear within a much broader framework.

Instills empathy, flexibility, and adaptability

The benefits of these skills are obvious. An empathetic, flexible, and adaptable workforce is productive even in the most
demanding situations. When routines, management or the direction of the organization change, individuals will more readily
adapt accordingly.

Helps employees resist unproductive stereotyping

Stereotyping is one of the primary impediments to workplace harmony. Cross-cultural competence helps employees
recognize and deal with implicit bias and similar vices, thus boosting individual confidence and guaranteeing team morale.

Decreases and overcomes institutional racism

Finally, and perhaps most important, instilling cross-cultural competence in the workplace can be instrumental in rooting out
racism. At the very least, the workforce will learn to appreciate each other, significantly reducing incidences of racial
discrimination and abuse. This was a theme in my keynote two years ago at the National Education Association, where I
talked about institutional racism in higher education. This is a pervasive challenge that must be eradicated from our
multicultural society, and the benefits of unity in diversity revealed.

With the significant demographic shifts within our nation and the increased globalization of our work experiences, cross-
cultural competence has become a critical issue for businesses. It impacts not only productivity but ultimately
organizational profitability.

Let’s Discuss

How will your organization address the challenges impacting workplace culture and effectiveness? I would be glad to
discuss. Please contact me to talk further.

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In 2018, Ravi founded Ravi Unites Schools—a growing network of over a hundred K-12 schools worldwide whose students
participate in peer-to-peer global real-time audio-video interactions hosted by Ravi. He believes that such exchanges
promote world peace by enabling youth to bond organically rather than succumb to implicit biases formed by institutional
agendas. The idea was born out of his ten-year partnership with Shanti Bhavan Children’s Project—a highly successful

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boarding school in India for the poorest of the poor.

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