2012 02 d&i academy_metrics
DESCRIPTION
Session delivered as part of The Conference Board Diversity and Inclusion New Leaders Academy aimed to train new practitioners in the D&I field about relevant metrics. Four types of metrics are covered: profitability (impact of diversity in performance), workforce representation (cascading gender goals), inclusion and flexibility.TRANSCRIPT
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Diversity and Inclusion MetricsMeasuring what counts
Uxio Malvido
Principal Advisor, Diversity and Inclusion
Rio Tinto
Diversity and Inclusion Academy
Munich, February 2012
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Session outline
PROFITABILITY
Overcoming limitations of correlation studies
REPRESENTATION
Setting meaningful local goals
INCLUSION
Measuring culture change
FLEXIBILITYWORK-LIFE
Showing business value
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Catalyst: The Bottom Line
Profitability studies
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McKinsey: Women Matter
Profitability studies
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EVA Analysis: Female Leadership and Firm Profitability
Profitability studies
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Objective Measure 50% 100% 200% Points
Develop Strong Leaders
Diversity Index 50% 100% 200% 3
Female Representation
(M01-M03)
Baseline: 30,8% (24 F / 78 T)
31,6%(34% -
baseline)/4
32,1%(36% -
baseline)/4
33,1%40% -
baseline)/4
Annual target
Merck
Representation targets
Corporate goal of increasing female representation at the top from 29% to 36% in 4 years)
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Rio Tinto
Representation targets
Corporate goal of increasing female representation in senior management from 14% to 20% by 2015
Reporting Year
Board Executive Committee*
Senior Management (A-E)20% by 2015
Graduates40% F by 201515% DC by 2015
2009 12% or 2 F 20% F or 2 F 13% F 29% F2010 14% F or 2 F 20% F or 2 F 14% F **27% F 8% DC2011 14% F or 2 F 20% F or 2 F 14% F ***25% F
20%DC
*Does not count CEO (18% with CEO)**DC equals country we are developing business in***Graduate goal for 2011 numbers not final—these reflect offers made
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% Exec.
% Managers /
Pipeline
% Workforce
Cascading targets
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% Managers
% Executives
Low High
Low
High Retention Goals
Goals at Executive
level
Goals at Executive and
Mger levels
Cascading targets
Goals at Manager level
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Representation: understanding dynamics
Company Marketplace
Promotion (in)
Promotion (out)
Recruitment
Turnover
+
_
3 2
5 4 +
_
+ 4
Scenario A
0 4
3 0 +
_
- 1
Scenario B
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Inclusion: Measuring culture change
Rio Tinto
Inclusion Index has a strong reliability
Cronbach alpha 0.87
The Inclusion Index has a strong
correlation with engagement
Correlation 0.97
• We are measuring Inclusion through a subset of metrics from the Global Employee Engagement Survey to track perceptions of culture change.
• Data from 2011 will constitute the initial baseline.
#24. Management at Rio Tinto supports diversity and inclusion in the workplace.
#72. Most of the time it is safe to speak up in Rio Tinto.
… and 5 other items
Concept 7 Inclusion Items Statistical Analysis
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Engagement+ 29%
for those employees who
have the flexibility they need
ExpectedTurnover
x2for those
employees who do not have the flexibility they
need
Scorecard - Culture
Retention
Merck – 3 points
Engagement Index
HH – 4 points
HR – 5 points
40% employees not satisfied with
existing opportunities
Women in grades M01-M04 less satisfied group
-
Managers report flexibility is positive to be competitive
(75%)
Managers report flexibility is positive
on customer service (59%)
+
Flexibility: showing the business value