CASE:
A decade ago, this large company was considered an early diversity leader, with its strong
work/life benefits, high rates of hiring and promoting women, and frequent public verbiage about
having an inclusive corporate culture. It was a mainstay on annual diversity rankings, achieving
a very high rank one year. The chief diversity officer, who came on right about that time, joined
many diversity-related organizations and was a visible face of corporate diversity in the
mainstream press. Although the CEO was not making personal statements about his
commitment to diversity, he was holding senior leaders accountable for results and meeting with
leaders of the employee-resource groups. Representation in the workforce and lower
management was racially diverse, especially compared with the industry averages, but there
remained a gap at the top levels of management.
This company in recent years has fallen from its high diversity rankings as its representation of
all groups, including women, has declined relative to the other companies participating in its
industry. The main reason for the decline: a change in CEO resulting in reduced
efforts/accountability. This company, like many others, was hit hard by the economic turbulence
in the last three years. The chief diversity officer, who did not speak of diversity in business
terms, could not maintain diversity as a business imperative. The company has even removed
the diversity section from its homepage.
Because the CDO did not track participation in employee-resource groups or have metrics for
mentoring and supplier diversity, there was no way to assess what was working and what was
not and what ramifications it was having on the bottom line. The chief diversity officer did not
have frequent access to the CEO or to his direct reports, reporting two levels down to the head
of HR. The CDO was viewed strictly as a staff person whose business advice was not
considered.
As other companies innovated and added diversity-management practices, this company
actually dropped best practices. The CEO no longer met with employee-resource groups or
signed off on supplier-diversity goals. Alternative career tracks for employees with long-term
family concerns weren’t offered. Management participation in formal, cross-cultural mentoring
declined dramatically.
Those results were reflected in the company’s representation numbers, which showed an even
more precipitous decline in racial and gender diversity at the top ranks as well as sharp gaps in
retention when examined by race/ethnicity. While the company was downsizing, Blacks and
Latinos were leaving at a rate triple that of whites.
work/life benefits, high rates of hiring and promoting women, and frequent public verbiage about
having an inclusive corporate culture. It was a mainstay on annual diversity rankings, achieving
a very high rank one year. The chief diversity officer, who came on right about that time, joined
many diversity-related organizations and was a visible face of corporate diversity in the
mainstream press. Although the CEO was not making personal statements about his
commitment to diversity, he was holding senior leaders accountable for results and meeting with
leaders of the employee-resource groups. Representation in the workforce and lower
management was racially diverse, especially compared with the industry averages, but there
remained a gap at the top levels of management.
This company in recent years has fallen from its high diversity rankings as its representation of
all groups, including women, has declined relative to the other companies participating in its
industry. The main reason for the decline: a change in CEO resulting in reduced
efforts/accountability. This company, like many others, was hit hard by the economic turbulence
in the last three years. The chief diversity officer, who did not speak of diversity in business
terms, could not maintain diversity as a business imperative. The company has even removed
the diversity section from its homepage.
Because the CDO did not track participation in employee-resource groups or have metrics for
mentoring and supplier diversity, there was no way to assess what was working and what was
not and what ramifications it was having on the bottom line. The chief diversity officer did not
have frequent access to the CEO or to his direct reports, reporting two levels down to the head
of HR. The CDO was viewed strictly as a staff person whose business advice was not
considered.
As other companies innovated and added diversity-management practices, this company
actually dropped best practices. The CEO no longer met with employee-resource groups or
signed off on supplier-diversity goals. Alternative career tracks for employees with long-term
family concerns weren’t offered. Management participation in formal, cross-cultural mentoring
declined dramatically.
Those results were reflected in the company’s representation numbers, which showed an even
more precipitous decline in racial and gender diversity at the top ranks as well as sharp gaps in
retention when examined by race/ethnicity. While the company was downsizing, Blacks and
Latinos were leaving at a rate triple that of whites.
You are a DEI / organizational culture consultant. You have an opportunity to support one of three clients in addressing their diversity challenges. You are being asked to:
- Identify the client’s DEI issue(s).
- Propose action(s) the client must take to address the issue(s).
- Indicate the anticipated outcome(s) from the recommended action(s)