Diversity, Equity, and Inclusion Case study Analysis

management multi-part question and need a sample draft to help me learn.

The purpose of this individual Case Study is to help you integrate your collective knowledge of inclusive organization development (OD) into the “real-life” organizational context. After reading Chapter 9, please choose and read one of Chapters 14-17 or 19 as a Diversity, Inclusion and Equity (DEI) case. You are asked to analyze the case (i.e., one of Chapters 14-17 or 19) using the inclusive OD framework (i.e., Chapter 9). Your paper must include the following content and analyses:
In the introductory section, explain (a) the reason that you chose the case; (b) the purpose of your paper; and (c) what you are going to discuss to achieve the purpose of your paper.
Describe the ways to integrate DEI into the key OD methods based on the case you chose. In other words, how could the case be used to describe the ways to integrate DEI into the key OD methods?
Analyze the case as an example of inclusive OD in one of the four OD methods (employee survey, 360-degree feedback, performance management, and talent management). In other words, how and why can the case be an example of inclusive OD in one of the key data-driven areas?
What challenges of doing inclusive OD could the case demonstrate?
Conclusion
Your responses are to be prepared on a four double-spaced page paper (excluding the title page and references). The paper should follow APA style. I highly recommend you use APA Template for MS Word on the APA Citation Support page in Canvas. Submit your assignment in Canvas to the instructor by the due date. Please read carefully the rubric for this assignment in Canvas.

Requirements: 4 pages
260CHAPTER NINEInclusive Organization DevelopmentAn Integration of Two DisciplinesAllan H. Church, Christopher T. Rotolo, Amanda C. Shull, and Michael D. TullerIntroductionFundamentally, organization development (OD) is the implemen-tation of a process of planned change for the purpose of organi-zational improvement (Waclawski & Church, 2002). From our perspective, OD reflects a normative or values-based approach to how organizations should function; it is grounded in the basics of social systems thinking, action learning, effective consulting and intervention skills, a well-rounded toolkit of tried and true prac-tices and processes, and—perhaps most important—the integral use of data, feedback, or information obtained from employees at all levels to truly drive organizational transformation. While other OD practitioners may have entirely different definitions, and this has been heavily debated in the field (Church, 2001), for Note: The authors would like to extend their thanks to Janine Waclawski for her input on the initial outline and for providing feedback on the manuscript for this chapter, Leslie Golay for her assistance in compiling the MayflowerGroup benchmark results, and Elona Pira and Jean McNulty of The Conference Board for their support in obtaining benchmark data from the Council of Talent Man-agement Executives I and II.Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 261the purposes of this chapter our approach to OD is a normative and data-driven one.It is from this mindset that we approach the discussion of engaging in what could be called inclusive organization develop-ment—that is, the full integration of diversity and inclusion (D&I) messages, behaviors, practices, policies, and cultural indicators (that is, what we will collectively call the D&I perspective) into mainstream OD and related industrial-organizational (I-O) psychology-based efforts in organizations. While many HR orga-nizations, such as the Conference Board and the Human Capital Institute, have fully embraced the D&I perspective and have regular conferences on the subject, this is not the case with many of the more specialized subdisciplines of HR-related practice. Although OD, D&I, and I-O as fields blossomed together cultur-ally (at least in the United States) at essentially the same time during the 1960s, and in many ways they have very similar norma-tive goals at their core (such as striving to create multicultural and inclusive organizations that value diversity and empowerment), they have as yet to fully integrate with each other in organizational practice. From an applied I-O psychology perspective, the only book to really focus on this area was Jackson and Associates (1992), in which the emphasis was primarily on diversity in the workplace, and D&I has only recently begun to enter into the lexicon of I-O conferences and general I-O related textbooks (for example, Levy, 2010). Although there have been texts dedicated to the construct of diversity, application and integration with spe-cific areas of I-O-related practice has been lacking. The American Psychologist did run a special issue on diversity and leadership recently (Chin, 2010), but this is really only scratching the surface for applied organizational psychologists.From an OD perspective, more progress has been made. Although many of the great “classic” texts of OD (for example, Burke, 1982; Cummings & Worley, 1993; French & Bell, 1990; Katz & Kahn, 1978; Schein, 1985) make no substantive mention what-soever of any concepts related to D&I, in more recent editions the concepts have started to emerge in the subject index (for example, Cummings & Worley, 2009; McLean, 2006). However, we would argue that this still remains an area gravely lacking in focus in many texts. There have certainly been pockets of highly Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
262 Diversity at Work: The Practice of Inclusionintegrated activity among OD, HR, and D&I, including the work of Jackson and Hardiman (1994), with what they call multicul-tural organization development (MCOD); that of Holvino, Ferdman, and Merrill-Sands (2004) from a change management framework; that of others in business school contexts (for example, Kanter, 1977; Thomas & Gabarro, 1999); and some very interest-ing and personal articles published in the OD Practitioner, includ-ing a special issue in the spring of 2010 (Royal & Vogelsang, 2010). However, for the average OD professional, exposure to D&I-related concepts is likely limited.Yet when we step back and think about the fundamental nature of a D&I change agenda—which many corporations clearly have taken on over the past decade, given shifting demographic trends and changes in generational differences, technology, and the global workforce (see Hankin, 2005; Karoly & Panis, 2004; Michaels, Handfield-Jones, & Axelrod, 2001; Zemke, Raines, & Filipczak, 2000)—we have to stop and wonder (1) what is the most effective means for practicing inclusive OD, and (2) what might some of the challenges or barriers be to such a seemingly natural integration of two fields that were both in some ways outgrowths of the progressive humanistic and social justice movements of the 1960s (for example, Brazzel, 2007; Jackson & Hardiman, 1994)? Our collective experience with organizational change efforts in general and specifically with the D&I agenda at PepsiCo and other organizations over the last decade indicates to us that practicing inclusive OD means applying a diverse and inclusive mindset and framework to every core HR, I-O, or OD process we are develop-ing and deploying. In short, we believe that the only way to truly drive D&I as a transformational change effort is to fully integrate it into every aspect of one’s assessment and development efforts. It should not be a standalone change effort nor perceived by employees as one (Holvino et al., 2004), but rather incorporated into all aspects of the organization to ensure a truly sustainable transformation to achieve a diverse and inclusive culture.The Inclusive OD ParadoxAs reviewed extensively elsewhere (for example, Church, 2001; Waclawski & Church, 2002), there are almost as many definitions Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 263of the field of OD as there are individual practitioners, and unlike in other professions, such as medicine or law, anyone with any type of background or training can decide to call him- or herself an OD practitioner and begin doing OD work. While this has led some practitioners to call for changes in the field to ensure con-sistency of competency and approach, such as more accreditation or certifications, at its core OD remains reflective of one of its basic founding values: by its very nature it is an inclusive field. As a construct, inclusion involves being open to a variety of ideas and approaches; the toolkit of the OD practitioner certainly reflects that diversity of practice, background, and approach. That said, and as already noted, OD as a field has not entirely or overwhelm-ingly embraced the concept of creating a diverse and inclusive environment for others.In fact, in a comprehensive OD values study conducted in the 1990s (Church, Burke, & Van Eynde, 1994) “diversifying the work-place” ranked eighteenth out of nineteen items in the humanistic factor dimension, and promoting business effectiveness as a factor overall was ranked higher as a general cluster of items. Although we suspect that those rankings might be very different today among practitioners, that result clearly indicates the inherent disconnect between OD as it approaches its own practice and professional membership criteria and what practitioners value regarding the methods and models they use in organizations. This does not mean that OD professionals do not seek diversity of thought and opinion in their data collection efforts during interventions—far from it—but their ultimate goal is seldom tethered to driving an inclusive environment (unless that is the expressed requirement from the client). Clearly this needs to change, and we hope that this chapter will prove useful to practitioners in driving more inclusive OD (and I-O related) interventions.The purpose of this chapter, then, is to focus on how best to identify and use some of the key tools and processes available to the OD (and I-O) practitioner and on how to ensure that these integrate with and reinforce the overall D&I perspective at the broadest level. Although there are many areas and aspects of organizations on which we could focus (for example, the Burke-Litwin model, 1992, has twelve distinct dimensions), we decided Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
264 Diversity at Work: The Practice of Inclusionto narrow the scope of this discussion to four key data-driven OD processes that most organizations have in place today in some form or fashion:• Organization or employee surveys• 360-degree feedback• Performance management• Talent managementAlthough corporate mission and values statements are criti-cally important, as are training efforts and selection programs, here we emphasize OD interventions and processes that collect data and deliver feedback to drive change—particularly in light of (1) our contention that these are the most powerful tools for ensuring transformation and (2) our belief that shifting an orga-nization’s culture to one that is more inclusive requires a systems approach that is mutually reinforcing across multiple types of measurement, reward, and decision-making processes.In each section we begin by describing the OD process itself and why it is important for driving change; we then provide recent benchmark data from two different sources regarding the current levels of integration between D&I and OD efforts among Fortune 500 companies; and finally, we explore the integration and evo-lution of the D&I agenda in these four core people processes as implemented at PepsiCo, a multinational consumer products organization with a long history of highly effective D&I efforts. We then discuss some important observations and challenges asso-ciated with practicing inclusive OD effectively.Integrating Diversity and Inclusion into Key Organization Development ProcessesBased on our experience, the organizational survey is one of the most powerful tools of the OD practitioner. Although recent arti-cles (for example, Hansen, 2010) have questioned the movement toward what some would consider the softer aspects, such as the internal measurement of employee engagement as it relates to the construct of D&I efforts, rather than focusing solely on the hard metrics of diversity, we believe this is an important evolution. Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 265We begin this section with a discussion of survey programs and then move into the related data-driven OD methods of 360-degree feedback, performance management, and talent management.D&I and Organizational or Employee SurveysEmployee surveys began in industry primarily as static attitudinal and opinion-based measures (for example, focused on job satis-faction). However, over the last twenty to thirty years they have evolved into a far more strategic tool for OD practitioners that, when executed correctly, can produce highly actionable and meaningful diagnostic and predictive analytics (Kraut, 2006). Some of the content areas to which employee surveys have been applied over the years include turnover, likelihood of local union-ization efforts, potential for health and safety violations, action planning effectiveness, sales, counterproductive work behavior, confidence in strategic direction, process efficiency, manager quality, and bottom-line outcome measures (for example, Church & Waclawski, 2001; Schiemann & Morgan, 2006; Wiley, 2010). Employee surveys have become such a mainstay in the OD prac-titioner’s toolkit that it is hard to imagine an OD intervention without some type of survey involved. This is largely because orga-nizational surveys are one of the best methods for (1) communi-cating key messages to all employees involved (in those cases in which the questions asked are a clear indication of what is impor-tant to management), and (2) measuring the attitudes, opinions, and behaviors of employees both initially at the start of a large scale change effort as well as over time. As a tool for organiza-tional change, the key is the use of the survey data to create meaningful change for the organization by asking the right ques-tions (relative to the change one is trying to drive) and then doing something with the responses. Prior research, for example, has shown that just sharing survey data with employees but taking no action as a result yields the same lower levels of satisfaction over time as doing nothing at all (Church & Oliver, 2006). Taking action against priorities is the key to a successful OD survey-related intervention.This is why using an organizational survey program to drive culture change in the area of D&I (and particularly the inclusive Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
266 Diversity at Work: The Practice of Inclusionculture component) is so vital for practitioners. Although for years many organizations have been analyzing their standard survey by comparing results across different groups (such as women of color, men of color, White women, White men) to look for trends, this approach does not leverage the power of an orga-nizational survey for driving an inclusive culture change. Rather, integrating items that specifically address D&I-related aspects of management, organizational culture, training and development processes, senior leadership behaviors, and the like into a stan-dard core organizational survey sends a clear and significant message regarding the importance of the D&I agenda.Many companies today are following this approach (which was not the case just ten years ago). For example, a recent bench-mark study conducted for the MayflowerGroup (a survey consor-tium) found that 89 percent of member companies responding had integrated specific D&I related questions into their primary employee surveys (that is, where the terms diversity and/or inclu-sion were used in the item wording itself). Although the overall number of items needed might not be that large (for example, this benchmark indicated an average 3.6 items or about 6 percent of the total questions asked), it still demonstrates to employees how management views the importance of diversity and inclu-sion. A similar benchmark study of The Conference Board’s Council of Talent Management Executives (I & II) yielded some-what lower percentages, at 52 percent of companies with inte-grated D&I items, but the average number of items was slightly higher, at 4.2 or 7 percent overall (for details regarding these benchmark studies, contact the MayflowerGroup and The Con-ference Board).In contrast to this more integrated approach, some compa-nies have elected to develop and administer a special survey focused solely on D&I issues. Although this results in more data (because the survey is entirely D&I-related), our recommendation is to ultimately fully integrate that content into the core employee survey programs so that the D&I agenda does not appear to stand on its own. This also makes it more likely that the D&I content will be sustainable; this is less likely when there two separate survey efforts must be managed over time (which can increase administration and response burden).Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 267The PepsiCo Organizational Health Survey D&I JourneyPepsiCo’s global employee survey, called the Organizational Health Survey (OHS), is conducted every other year and is administered to all of the organization’s three hundred thousand plus employ-ees worldwide. It focuses on employee engagement and the drivers of engagement, capturing attitudes about the company, job and career, compensation and benefits, customer orientation, manager quality, and the work environment. Translated into over forty languages, the OHS survey has become a vital mechanism for driving change throughout the organization.As the company has transformed the strategy and execution of its D&I initiatives, so too has the OHS evolved over time to support this agenda. Although surveying at PepsiCo was common-place within each respective business, it wasn’t until the 1990s that a consistent enterprise-wide survey program was administered. Initial OHS administrations dedicated little attention in the survey to D&I-specific efforts, other than the usual analyses by demo-graphic groups as noted earlier, as the company was going through tremendous change involving divestitures and acquisitions (Thomas & Creary, 2009). However, by the mid- to late 1990s, the D&I journey was beginning to take shape, and by 2000, with Steve Reinemund as the new CEO and highly visible champion of the D&I agenda, the company began to undergo significant change with regard to how it defined, measured, celebrated, and culti-vated diversity and inclusion.After the results from the more generic 2000 OHS were pub-lished, senior leaders realized that the data from the survey did not reflect what they were seeing and hearing from employees, albeit anecdotally. PepsiCo’s Ethnic Advisory Board, a group of leaders from both within and outside the company tasked with providing guidance on D&I matters, suggested that PepsiCo conduct a more focused research effort rather than wait for the limited information provided by the current OHS. A series of focus groups and interviews was launched to determine the major issues and barriers toward becoming a more inclusive culture. The output of this research led to a unique sixty-item Inclusion Survey designed specifically to gain a deeper understanding of existing practices, attitudes, and opinions regarding the current Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
268 Diversity at Work: The Practice of Inclusionstate of D&I efforts across the company. What was so unique about this survey at the time was that very few, if any, organizations had embarked on such a highly focused survey program on diversity and inclusion. Exhibit 9.1 provides examples of the questions included in this initial survey.Exhibit 9.1. Sample Items from the 2001 Diversity and Inclusion Survey at PepsiCo• A business case for focusing on diversity has been communi-cated to me.• I receive regular and consistent messages about the diversity initiatives being implemented in the company.• I have available to me communication channels where I can openly talk about my diversity related issues and concerns.• The leaders of this company inspire me to embrace the notion of inclusion.• I am comfortable with the idea of being managed by someone who’s different from me—physically, socially or culturally.• Everyone in this company is encouraged to develop greater cultural awareness.• I can bring all of myself into this organization—it’s a place for me to grow and develop without being unfairly judged by others.• My manager is held accountable in his/her performance review for creating an inclusive work environment.• My manager has the cultural competence (knowledge and skills) to effectively manage a diverse team or workgroup.• This company’s commitment to diversity and inclusion are compelling reasons for me to continue working here.The Inclusion Survey, which was administered to all domestic exempt (that is, salaried) PepsiCo employees in 2001, was intended to provide a baseline regarding the evolution of the D&I agenda for the organization and could be used to identify “hotspots” that needed to be addressed through targeted action plans in 2002 and beyond. Perhaps more important (and as noted earlier), at the time administering such a survey was also intended to com-municate to employees PepsiCo’s commitment to developing a more inclusive culture.Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 269Although conducting such a targeted survey was seen by some as a potential risk (for example, the mere act of gathering this information would clearly raise expectations in the eyes of employees to do something with the data), there was sufficient energy and support from senior leadership to move ahead with the project regardless of the outcome. In the end, the learnings from the Inclusion Survey results were immense. The insights derived from the analyses led to several vital actions. First, the 2002 OHS was redesigned to fully integrate the items into the core survey going forward. Second, a new corporate-sponsored multitiered training and D&I development curriculum was devel-oped and launched. Third, in 2003 and again in 2005, quarterly inclusion pulse surveys were administered, focusing on the impact of the company’s D&I training agenda and serving as both a Level 2 and 3 training evaluation (Kirkpatrick & Kirkpatrick, 2006) and a means to track progress on the numer-ous initiatives taking place in the organization. Finally, the D&I messages and content began to be integrated into other core HR development processes as well (there is more on these later in the chapter).From a survey perspective, the redesigned OHS in 2002 included many more items devoted to D&I than in the past. Questions covered company leadership, culture, career, and manager quality (see Table 9.1 for more examples of the OHS D&I-related items). This allowed senior leaders to better under-stand the pervasiveness of the issues uncovered in the focus groups and the Inclusion Survey, and allowed the company to track progress regarding its cultural change efforts over time. Many of these same items remain in PepsiCo’s ongoing OHS program.The inclusion pulse surveys, punctuated by the biennial OHS, enabled PepsiCo to track the implementation of the inclusion training as well as to monitor the impact that the ini-tiatives were having on the organization. For example, the item “Since PepsiCo has implemented the Inclusion Training, I have seen improvements in our culture—it is more inclusive than before” gained thirty-nine points over the three years it was tracked. Similarly, the pulse survey item “I receive regular and consistent messages about the diversity initiatives being Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
270 Diversity at Work: The Practice of InclusionTable 9.1. A Sample of Diversity and Inclusion Items Used in PepsiCo’s Organizational Health Survey from 2002 to PresentLeadership• Senior management (your senior leadership team) has taken ownership for the company’s diversity and inclusion initiatives.• I see diversity reflected in the management of this company.Culture• Since PepsiCo has implemented the Inclusion Training, I have seen improvements in our culture—it is more inclusive than before.• I believe we will have a competitive advantage with a more diverse workforce.• My work group has a climate in which diverse perspectives are valued.• I am aware of my company’s diversity/inclusion initiatives.• I am comfortable being in this company, even when I am seen as different in some way.• Win with diversity and inclusion (Values Item).Career• There is an equal opportunity for people to have a successful career at my company, regardless of their differences or background.• Promotions and assignments at my company are based on a fair and objective assessment of people’s skills and performance.• Career advancement opportunities (for example, vacancies, promotions, project teams, etc.) within the organization are clearly communicated to all employees.Manager• My manager recognizes diversity as a business imperative and takes specific actions to drive it.• My manager values people with different perspectives and experiences.• My manager or supervisor treats me with respect.• My manager supports and encourages my involvement in diversity- and/or inclusion-related activities.Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 271implemented in the company” gained over fourteen points in the same time period.The D&I journey was challenging and often met with resis-tance, as Thomas and Creary (2009) describe in their Harvard Business School case on the change effort. Yet PepsiCo met many of its D&I goals. The OHS was a vital tool in this transformation, as both a means to track progress and provide scorecard informa-tion as well as a platform for communicating the importance of D&I in everything the company did.OHS Today and BeyondToday, the biennial OHS is still a vital part of organization change at PepsiCo. The pulse inclusion survey, however, has been replaced by a twenty-five-item Engagement Survey that measures the com-pany’s engagement index as well as key items known to drive engagement. Although D&I is still a key area in the Engagement Survey, many of the items on the pulse survey no longer pertain (for example, the initial phases I, II and III of Inclusion training were completed in 2008 and remain in maintenance mode pri-marily for new employees), or are no longer actionable because they consistently obtained a 95 percent favorable or higher response (for example, those items regarding the importance of the business case for D&I). In short, the company decided it no longer needed to measure some of the basics of the construct of D&I.That said, the OHS remains heavily focused on D&I from a cultural perspective, which is where the company’s overall strategy has shifted, particularly with respect to the notion of Talent Sus-tainability (PepsiCo Inc., 2011). Professional employees taking the 2011 OHS encountered about 11 percent of the total OHS items dedicated to D&I topics (this is not including the many follow-up questions that are asked if the respondent answers neu-trally or unfavorably).In addition to item content, there are two other ways in which PepsiCo is leveraging OHS to aid in the D&I journey. One is its data analytics. Typically, an insights presentation of one hundred pages or more is created for each ethnic group (analyzed within group and by gender), providing a deep dive into issues specific to the particular subgroup. Within these reports (as well as the Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
272 Diversity at Work: The Practice of Inclusionmain overall report), the company uses various statistical analyses to illuminate the relationships between items. For example, we have found that the item “My manager supports and encourages my involvement in diversity and/or inclusion related activities” has a strong positive relationship with almost every other item on the survey. More specifically, employees who answer favorably to this item are also more likely to give favorable ratings in the other areas measured by the OHS. Conversely, employees who are less than favorable on the item are less favorable on the other areas as well. This strong relationship indicates to us how the success of diversity and inclusion initiatives is often predicated on direct and meaningful support from managers and supervisors. This finding has also proven invaluable to other organizations when benchmarking with customers and other business partners in support of their developing or ongoing D&I efforts. Finally, it sends a powerful message to senior leaders and managers about the importance of support for employees in engaging in the D&I agenda.The second area in which PepsiCo leverages the OHS beyond the typical question set is in the use of Employee Value Proposi-tions or EVPs (Barrow & Mosley, 2005). Although part of OHS, the EVPs do not assess attitudes per se, but rather the relative importance of certain aspects of work based on employee rank-ings. Employees are asked to examine a list of twenty-three value propositions (such as a relaxed and fun atmosphere, job security, corporate social responsibility) and answer questions about which are most and least important to them. The organization then calculates a score for each EVP (the probability of being in the “most important” list). These scores can then be used for employee segmentation to identify pockets of individuals who share the same value propositions. Where this is helpful, for example, is in understanding differences in perceived importance of various facets of the EVP by different subgroups of employees (such as people of color, females, generational cohorts, and so on). In other words, whereas the main OHS items help us understand where employees believe the company is doing well versus not so well, the EVPs allow us to quantitatively get beneath these numbers by examining what’s important to the individuals provid-ing the ratings. For example, if a group of Latino executives is Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 273unfavorable toward items about career orientation, we might find through the EVP analysis that some are more interested in the pay that goes along with the advancement, whereas others are more interested in the power and influence associated with it. Action planning around these two subgroups might be completely different based on this insight.It should be clear by now that overall there has been a symbi-otic relationship between OHS and the D&I agenda at PepsiCo for the last decade. In general, the OHS survey program contin-ues to innovate so that it remains the main vehicle for driving organization change.D&I and 360-Degree FeedbackAlthough surveys are extremely important tools, not every indi-vidual manager can expect to receive a report, nor are their individual behaviors assessed via this method. This is where multisource or 360-degree feedback plays an important part in the OD and D&I change process. Tools such as 360-degree feedback are the primary means by which organizations tie their corporate values and key competencies to individual behaviors of leaders and managers (Bracken, Timmreck, & Church, 2001), usually via some type of formal leadership model or framework.The process is similar to a survey program, but the focal target is an individual rather than a group or business unit. One of the strengths of a 360-degree feedback process is that it pro-vides a robust behavioral assessment gathered from a number of different sources with various perspectives on behaviors associ-ated with a given leadership model. The key assumption of 360-degree feedback from an OD perspective is that feedback from multiple sources will enhance self-awareness, which in turn will lead to a change in specific behaviors relative to what is being measured. Research (for example, Church, 1997) has shown that managers with higher self-awareness of what is being measured tend to be better performers. This is where the content of the competency model that forms the basis of a 360-degree feedback program becomes critical, however, because if diversity and in -clusion (that is, inclusive behaviors and competencies) are not Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
274 Diversity at Work: The Practice of Inclusionintegrated into the 360-degree feedback process, then they are essentially set apart from what is considered “effective leader-ship” for a given organization. This disconnect can send an unin-tended message to employees that leadership means one thing and inclusive behaviors are something else. Moreover, although D&I items may or may not necessarily be determined through statistical analysis to be predictors of specific performance out-comes of interest today, from an OD normative perspective and based on current and future trends in the workplace (for example, Meister & Willyerd, 2010), we believe that D&I-related behaviors should be part of any formal feedback program. Whether real or aspirational in nature, if diversity and inclusion are important to an organization’s business and/or people devel-opment strategy they should be part of the formal leadership competency model and the subsequent 360-degree feedback process.In the MayflowerGroup benchmark study noted earlier, about 52 percent of companies responding had currently incorporated specific D&I competencies into their leadership frameworks, and 68 percent of the Conference Board’s Council of Talent Manage-ment Executives (I & II) reported doing the same. In both studies, many companies indicated that they were heading in this direc-tion but had not yet achieved the goal. It is important to remem-ber that it takes significant time and resources to change something as fundamental to an organization as its leadership competency model. Surveys are far easier to modify within a given year or two than leadership models because the latter tend to become very integrated into other elements of a broader lead-ership development program (for example, career resources, toolkits, training programs, interview guides, and talent manage-ment processes).However, it is also important to note that simply collecting behavioral information about someone does not necessarily lead to successful change (regardless of the intent of that change). Although it communicates, just as a survey does, what is important to management, from an OD perspective there are several other factors to consider in terms of ensuring that a 360-degree feedback program provides the maximum value to an organization.Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 275First, the feedback itself is critical. Individuals need to be informed about their strengths and development opportunities to understand how to improve their performance in a manner that is easily interpreted and understood. This means that feed-back should be provided in a format that increases the individu-al’s ability to interpret and accept it despite potential negative elements. It is also helpful if the feedback is organized around a core set of competencies or key attributes. In the context of driving a D&I agenda, for example, it is far more meaningful and impactful to recipients if the feedback is provided against “creat-ing an inclusive culture” rather than just a generic inclusion dimen-sion (that is, a single average score), or rather than just providing a handful of items that combine into some broader concept, such as interpersonal skills or emotional intelligence. The targeted nature of having a specific D&I competency greatly reinforces the importance of that dimension. In contrast, not having D&I-specific competencies highlighted in a leadership model or 360-degree feedback process may communicate the message that these prac-tices are not all that important.Second, when driving a D&I agenda in particular (or any focused organizational change effort more generally), it is far better to have a customized leadership model than one supplied from a feedback vendor as the basis for the 360-degree feedback process. Although off-the-shelf competency assessments can add value at the individual level, the most constructive and valid 360-degree feedback tools for driving D&I-related change are based on an organization-specific leadership model and reflect the unique values and competencies of that model rather than generic leadership behaviors, for several reasons. First, the model itself, like a survey, communicates what is important and is typically connected to and/or embedded in many different development processes beyond the 360-degree feedback process alone. Second, the diagnostic assessment of a behavior gives it significance, because by linking specific behavioral assessments back to corpo-rate values creates individual accountability and reinforcement for positive performance against those stated ideals. Moreover, when implementing a large-scale 360-degree feedback program involving thousands of leaders and managers, the implementa-tion must be considered from an OD systems perspective, because Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
276 Diversity at Work: The Practice of Inclusionone is now operating at the meso or even macro levels of the organization to drive behavior change (Church, Walker, & Brock-ner, 2002).D&I and 360-Degree Feedback at PepsiCo. The effort to include D&I behaviors as part of PepsiCo’s 360-degree feedback process has significantly evolved over time in two primary ways to reflect the increased organizational emphasis on diversity and inclusion. The first change focused on the emphasis or weight placed on D&I behaviors relative to the overall assessment framework. The leadership model in place in the 1990s did not include any specific behaviors related to D&I efforts; rather, the items were more generic and focused on building trusting relationships and related concepts. This changed in 2001, when the organization redesigned the model, included three specific items related to D&I, and added Inclusion as one of seventeen key competencies of leadership behavior under one of seven Success Factors called People Development. Although this was a positive first step, it still placed only marginal empha-sis on diversity and inclusion relative to the overall model, which comprised fifty-eight items (that is, only 5 percent focused on D&I).This changed further in 2006, when the model was rede-signed again (using input collected from interviews and focus groups conducted with multiple stakeholders throughout the organization, from senior leaders to individual contributors and including a wide range of subject-matter experts or SMEs) to better align to PepsiCo’s newly stated corporate values and the increasing laser-like focus on the D&I agenda. This new Leader-ship and Individual Effectiveness Model now included “Creating an Inclusive Culture” as one of its nine key dimensions rather than one of seventeen. In addition, the increased emphasis on D&I both in the leadership model and the subsequent 360-degree feedback process was also reflected in the greater repre-sentation of items designed to assess D&I related behaviors. The new version of the model included eleven key D&I behaviors (see Table 9.2) under the heading of “Creating an Inclusive Culture” dimension. These behaviors reflect what is expected in this area of all employees, leaders (that is, middle management), and senior leaders.Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 277Table 9.2. “Creating an Inclusive Culture” Items from PepsiCo’s Leadership and Individual Effectiveness Model, by LevelAll Employees• Treats all people with respect and fairness• Demonstrates sensitivity to differences when dealing with people from different cultural backgrounds and/or other differences• Demonstrates openness to and respect for others’ opinions and points of viewLeaders• Demonstrates a personal commitment to creating a more inclusive work environment• Values and leverages people with different perspectives and experiences• Creates a work environment that helps people achieve a healthy balance between work and personal life• Fosters a positive and inclusive work environment where all people feel respected and valued for their contributionsSenior Leaders• Champions diversity of thought, style, and perspective• Demonstrates sensitivity and awareness of cross-cultural implications when conducting business or executing initiatives• Creates a work environment that helps people achieve a healthy balance between work and personal life• Fosters a positive and inclusive work environment where all people feel respected and valued for their contributionsThe second area of change in PepsiCo’s approach to linking D&I to its leadership model and 360-degree feedback process was also related to the newly revised model in 2006 and centered around the importance and level of integration of the D&I per-spective for all employees. Although inclusion was incorporated into the 2001 model, the primary target audience for this frame-work was executives, which suggested that D&I-related behaviors might not be as relevant for a majority of the organization. This changed with the 2006 redesign, when the model was recast as not only a leadership model but also as a “Leadership & Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
278 Diversity at Work: The Practice of InclusionIndividual Effectiveness Model.” Now there was a set of D&I-specific behaviors that applied to all employees at all levels, in addition to those for more senior-level executives.D&I and Performance ManagementAlthough 360-degree feedback is a valuable OD tool for individual development and broad scale culture change, there is consider-able debate in the field as to whether it should be used for devel-opment only or for other administrative purposes. While some organizations use 360-degree feedback as an input into succession planning and even performance management, others prefer to keep the 360-degree feedback as an independent process, leaving accountability for changing behavior up to the individual’s own interest in self-awareness and development—a characteristic that can vary considerably among different types of people (see, for example, Church & Rotolo, 2010). This is why many models of organizational change and OD practitioners who apply them have long placed an emphasis on reward systems in a given interven-tion or social system (see, for example, Burke, 1982; Cummings & Worley, 2009; Lawler, 1981, 1990); doing this is a way to ensure that the right behaviors—and of more importance, in many cases the outcomes—are being measured and rewarded appropriately against some key set of objectives or competencies. Although we assume that the “right” behaviors will indeed lead to the desired outcomes, this may not always be the case and requires validation. Consequently, in many organizational settings it is important to ensure that the performance management process is influencing both behavior and outcome.In general, an organization’s reward systems (also known as the performance management process or PMP) are vital in defin-ing and shaping its culture, because they convey what is important to employees and their performance against critical organiza-tional goals. Performance management processes are by defini-tion tied to compensation and internal movement decisions. This increases the need and desire for the process to effectively dif-ferentiate among various levels of performance. This is true both in terms of dividing a finite number of resources in the most Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 279equitable manner and also for helping employees understand what is important for success in their roles. Clearly, then, it is critical from a D&I perspective to include some form of formal diversity or inclusion objective or goal (or one of each) as part of performance management, if the transformation is to be truly effective.Despite the value of the PMP in making administrative deci-sions, it is an OD and HR process that is, unfortunately, less focused on emphasizing diversity and inclusion efforts than perhaps it should be. In the recent MayflowerGroup benchmark study, about 59 percent of member organizations responding indicated using formal D&I metrics in their PMPs. Similarly, 61 percent of The Conference Board’s Council of Talent Manage-ment Executives (I & II) reported the same, suggesting that 39 percent are not leveraging their PMP at all to support their D&I efforts.Interestingly, the approach to using D&I measures also varied considerably across the two studies, ranging from focusing on individual metrics regarding representation goals relative to U.S. Census Bureau statistics, to incorporating organizational survey results as goals reflective of having an inclusive culture. Other companies were more activity-based in their approach, citing leadership involvement in employee networks or resource groups as their primary method of measurement. Moreover, in many instances it was evident that D&I goals were only a portion of a broader set of performance targets and often included in the “how” category of work gets done versus the actual outcomes being measured.D&I and PMP at PepsiCo. In many ways PepsiCo’s approach to PMP has evolved in a similar manner and is very reflective of the benchmark data just reported. In general, the company’s current version of PMP, a version of which was first implemented in 2001 (also in support of the enhanced focus in the D&I agenda), has the common theme of increased emphasis being placed on diversity and inclusion over time. PepsiCo’s previous conceptualization of PMP in the late 1990s used a single assess-ment of performance, based solely on business outcomes, and did not include any assessment of D&I in the evaluation of Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
280 Diversity at Work: The Practice of Inclusionperformance. In 2001, the PMP was divided into two separate categories—business ratings and people ratings—with business objectives weighted more heavily and accounting for 67 percent of the overall evaluation. The people objectives included “creat-ing an inclusive environment” as a specific component, but rep-resented only one of eight possible elements in the overall people ratings (and all were provided initially as suggestions rather than requirements). Over time, the use of people ratings required the need for a more streamlined and defined process for the people objectives. There was also organizational pressure (given the stated values and the increasing emphasis on diversity and inclu-sion) to enhance the value of people objectives relative to the business objectives. This led to another change in the PMP in 2008, which truly reflected a cultural shift in emphasis, to weight the two categories equally in a noncompensatory design, such that both now represented 50 percent of an employee’s individ-ual performance contribution.Moreover, to ensure further consistency and integrate diver-sity and inclusion deeper into the process, another change included greater emphasis on D&I initiatives in the people objec-tives. “Creating an inclusive environment” became one of four areas of accountability that all employees using this PMP were required to address on an annual basis in their objectives. This change in the PepsiCo process increased the accountability and value associated with D&I efforts in the performance evaluation and no doubt contributed to the OHS scores reported earlier regarding manager support for employees engaging in D&I-related activities (as these were now on managers’ individual objectives). In addition, the OHS data collected in 2009 indicated that employees had a favorable impression of the performance management process, with 80 percent of employees reporting that managers are held accountable for both their business and people ratings. This strongly suggests that employees see people ratings, and therefore the company’s D&I efforts, as measures to which managers are truly held accountable. It also highlights the importance of taking an OD systems perspective with these data-driven tools, whereby the organization links the survey work to its leadership development and performance management agendas—all in synch to support organizational transformation.Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 281Talent ManagementThe final OD and HR process we discuss—how an organization approaches talent management—is critical to consider in terms of organizational change initiatives and their linkage to D&I efforts. Performance evaluations are critical to understanding the strengths and weaknesses of individual employees; talent man-agement, in contrast, is the process of identifying, assessing, devel-oping, planning, and moving talent throughout the entire employee lifecycle to satisfy critical and strategic business objec-tives. Although many aspects of talent management as we know it today have been part of the OD and I-O practitioner’s toolkit for years (such as succession planning, workplace assessment, selec-tion, development, and an emphasis on learning through experi-ences), only in recent years has the term talent management taken hold (see, for example, Silzer & Dowell, 2010), largely in response to the evident war for talent and other ongoing changes in the demographics of the workplace, including the values that the next generation of employees are perceived to have (Avedon & Scholes, 2010).Although some might argue that talent management is out-side the purview of the OD practitioner (rather, residing with HR generalists or other types of specialists), we contend (as would Jackson & Hardiman, 1994) that it is indeed or should be part of the systems approach for driving organizational change, particu-larly with respect to enhancing diversity and inclusion. This is because, at its core, talent management uses workforce planning and analytics to identify potential talent gaps, which are addressed through (1) internal development or external hiring and (2) the manner and method with which talent—whether internal or external—is discussed, reviewed, planned for, and ultimately deployed in an organization. Most talent management processes involve some form of organizational review of the current and future capabilities needed, an analysis of the current talent base, a review of what is called a “slate” of potential candidates for given roles (open now or in the future), and reviews and plans for unique individuals that will ultimately build leadership bench and succession pipelines for the organization (for example, Silzer & Dowell, 2010).Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
282 Diversity at Work: The Practice of InclusionIf the D&I agenda is not inextricably linked to the talent management review process, it is possible (depending on the culture of the organization, for example) that decisions will be made about capabilities that may reflect future needs of the busi-ness, and that specific groups or types of employees may not be reviewed because of inherent biases or blind spots. Thomas and Gabarro’s (1999) research clearly indicated that different groups may indeed take different paths in the succession process, and therefore it is critical to keep an emphasis on diversity and inclu-sion throughout the entire talent management process.The role of D&I in the talent management process can be conceptualized in two ways. First, organizations can use an indi-vidual’s degree of D&I capability when making decisions related to talent management, such as providing developmental oppor-tunities, creating slates, or deciding on promotions. The basic argument is that managers who are better at managing in an inclusive manner will be more effective overall. Doing this relies heavily on D&I-related measures and the other OD tools and processes discussed in this chapter (surveys, 360-degree feedback results, performance management ratings), so these need to be in place and working properly for this approach to be effective.The second role of D&I in talent management is the targeted measurement and tracking of various groups of employees’ pro-gression in the organization relative to others. This is critical for two purposes. First, legal considerations based on concerns of adverse impact related to the OD and HR tools or to selection decisions need to be addressed to avoid litigation from protected groups (Cascio & Aguinis, 2008). Second, demographic differ-ences are associated with diversity in experience, knowledge, and abilities that can be critical in creating an adaptive organization that can respond to the needs of a more diverse customer and consumer base. Enhancing the diversity of perspectives, styles, and thinking—if managed effectively and in an inclusive environment—is likely to lead to greater innovation and business success.Interestingly, the two benchmarking studies (cited earlier) differed somewhat in this regard; 59 percent of the companies responding on the MayflowerGroup study indicated that they incorporated D&I as an explicit part of their talent management Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 283process, whereas 82 percent of The Conference Board’s Council of Talent Management Executives (I & II) indicated the same. This difference is probably due more than anything else to the fact that the MayflowerGroup is primarily a survey-based consor-tium, while the Conference Board benchmark is based on indi-viduals who are particularly focused on the talent management process. The key points are that (1) many organizations are indeed integrating D&I efforts into their talent management pro-cesses, and (2) this is an important part of completing the systemic framework for integrating the D&I agenda into their OD and organizational transformational efforts.D&I and Talent Management at PepsiCo. As with many organiza-tions, diversity and inclusion is a critical component of PepsiCo’s talent management process. Details of the organization’s use of scorecards and the overall people planning process can be found in other published sources (for example, Church & Waclawski, 2010; Thomas & Creary, 2009) and need not be repeated here. It is important to note, however, that the organization has taken a truly integrated and systemic approach to driving inclusive OD across the enterprise, ensuring that the D&I perspective remains linked to each of its core development processes. This was not easy to accomplish, nor did it happen overnight, but it remains at the core of PepsiCo’s strategic OD agenda: ensuring that the company has a diverse population and an inclusive culture to support their varied thinking and contributions.The Challenges of Doing Inclusive Organization DevelopmentBased on the discussion and benchmark data reported here, it is apparent that practitioners have made significant strides in the integration of D&I efforts into their core organization develop-ment toolkits (with organizational surveys and talent manage-ment being the most common processes). But there is still room to improve in this area as well. Although it might sound easy enough to simply add an inclusion dimension to a leadership model or to include some diversity metrics in a performance management process, many organizations and practitioners are only just starting on this journey. As noted earlier, aside from OD, Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
284 Diversity at Work: The Practice of Inclusionother fields fully devoted to organizational change and improve-ment, such as I-O psychology, have only recently begun to embrace diversity and inclusion as a core construct at meetings and in publications. The reason for this is simple: organizational change is never quick or easy, and there are various challenges associated with moving any organization in a given direction, including toward creating a more inclusive culture.Some of these challenges are part of any change effort; others are perhaps more unique to diversity and inclusion. More specifi-cally, these include integrating D&I into everything we do, includ-ing core OD processes and business models (as described earlier—that is, doing inclusive OD); gaining true senior leader-ship and management support; educating people about D&I for one’s specific organization; and, perhaps most important, helping people to think more broadly about diversity and inclusion beyond the standard U.S.-based demographic trends and groups. After all, from an international perspective, diversity and inclusion vary from country to country and even in some cases from region to region. Perhaps the only universal dimension of diversity is gender, but even that varies cross-culturally (Ferdman, 1999). Beyond that, each country outside of the United States must be examined for its unique aspects from a D&I standpoint (culture, class, caste, heritage, and so on). This requires a more global mindset than many practitioners have today and is reflective of what we con-sider new territory in practice as it relates to D&I. In any case, all of these factors must be addressed by OD practitioners to see suc-cessful integration of D&I initiatives into an organization. The rest of this section discusses several of these challenges in more detail, as well as ways in which the practitioner can move the figu-rative integration needle in the right direction toward an inclusive OD approach.The Importance of Senior Leadership SupportMany OD professionals and change experts would agree that any transformational change effort requires senior leadership support to be successful. Some have even embedded this as a key Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 285component in their models (for example, Burke & Litwin, 1992; Kotter, 1996). Jack Welch’s transformation of GE is a perfect example of this (Welch & Byrne, 2001). Driving an organizational change effort towards a D&I agenda is no exception, as in Jackson and Hardiman’s (1994) model of MCOD. Clearly, fully integrat-ing D&I into an organization’s management and OD practices and processes is a type of true organizational transformation and requires visible senior leadership support.A good example of senior leadership successfully leading a D&I change agenda (including the concept of shifting from a focus on just diversity to one on inclusion as well) is the former CEO of PepsiCo, Steve Reinemund. From the beginning of Reine-mund’s presence in PepsiCo’s senior leadership team as president and chief operating officer, he ensured that diversity and inclu-sion were one of the company’s primary strategic priorities (as is fully detailed in Thomas & Creary, 2009). Other senior leaders at PepsiCo had tried to make the workforce more inclusive by creat-ing opportunities for diverse groups and developing leaders, but Reinemund was the first PepsiCo senior leader to make efforts to fully integrate D&I into the culture of the organization (Thomas & Creary, 2009). After being promoted to CEO of PepsiCo, one of the first things that he did was to partner with the senior vice presidents of HR and diversity and community affairs and to establish a team of advisors to support him in driving diversity into PepsiCo’s culture and performance. Reinemund first added diversity as a business strategy to help stay ahead of shifting demo-graphics in the U.S. markets in 2000. He believed that by seeking new opportunities in ethnic populations where the business had low market penetration, the company could become more com-petitive. He believed that, to create products and marketing strategies targeted to those populations, the company needed a diversified employee base that reflected its consumer base. PepsiCo formed a new ethnic marketing group in response to Reinemund’s strategy.In PepsiCo’s results-oriented culture, Reinemund realized that measuring the progress of his diversity efforts was critical to the success of the overall strategy. He then held senior leaders accountable (through the performance management process Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
286 Diversity at Work: The Practice of Inclusionnoted previously) for achieving their diversity goals (Thomas & Creary, 2009). This is a perfect OD example of senior leader-ship truly supporting a change agenda, as it is easy to reward people when they meet a goal but much harder to enforce a negative outcome even if it has been communicated that this would occur.After several years of driving this approach, Reinemund found that he had been successful in achieving his diversity strategy. There were new products and selling strategies for ethnic popula-tions as well as a more diverse workforce at PepsiCo (reflected both in real numbers and in improved employee perceptions via the OHS measure). He realized, however, that he had not yet fully shifted the culture to be more inclusive and engaging of diverse populations. In short, if you just focus on the diversity of your workforce but not on ensuring that you have a culture that is sup-portive or inclusive of that diversity, it is unlikely that the diverse talent will remain long with the organization, as others have also noted (for example, Holvino et al., 2004). Thus he decided to move the company into a new phase of the D&I agenda by trans-forming the culture into both a results-oriented and an inclusive company (Thomas & Creary, 2009).From an OD perspective, culturally transforming the company into a more diverse and inclusive one could not have occurred without Reinemund’s commitment to the issue. Reinemund himself describes the type of senior leadership commitment that was necessary to accomplish the culture change: “For nearly all of the meetings I attended inside and outside of PepsiCo, I always spoke about diversity as one of the company’s three priorities. I was intentional in this because I knew that affecting the culture would be more difficult if I did not deliver a consistent message” (quoted in Thomas & Creary, 2009, p. 10). Reinemund’s succes-sor, Indra Nooyi, has continued to drive a diverse and inclusive culture (see, for example, Frankel, 2008; Murray, 2011), and has further integrated the D&I agenda into her overall sustainability strategy (PepsiCo Inc., 2011). The key message here for OD practitioners already engaged in or planning to move toward a more focused D&I-related strategy is to ensure that the senior-most leaders are not only 100 percent behind the initiative, but that they are truly sponsors and advocates, not simply Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 287figureheads for that cause. Otherwise it simply will not ring true to people.The Importance of Training in D&I EffortsAlthough we have not discussed formal training and development efforts as a major OD lever for change (as from our perspective OD is a data-driven methodology, and training design and imple-mentation are the purview of other types of HR professionals), it is important to note that training efforts are an important means for sending key messages, learning new behaviors, and reinforc-ing a change agenda. In short, training is a necessary component of any D&I change agenda, but not sufficient in and of itself. Given changes in technology over the last few years, training delivery methods can also vary widely compared with just a decade ago, when everything required a more resource-intensive face-to-face approach. For example, if funding for centralized training is not available, programs can be cascaded throughout the organiza-tion using train-the-trainer techniques (that is, building internally certified resources to deliver the training), or delivered via webi-nars, cell phone and hand-held device applications, virtual confer-ence rooms, and the like.Interestingly, from a D&I perspective, the most common type of diversity management program is indeed training (Jayne & Dipboye, 2004; Society for Human Resource Management, 2010), which may include efforts to increase awareness of discrimination and prejudice and to improve skills of employees in relating to members of other cultural groups. Diversity-related training pro-grams have gained increased prominence over the years, yet there are still important issues to consider. According to a recent study by the Society for Human Resource Management (2010), 71 percent of organizations have some form of diversity-related training programs, but there was considerable variability between organizations regarding the areas of focus. For example, organiza-tions differed in terms of who participated in diversity training. Based on that study, roughly 70 percent of executive- or managerial-level employees participated in mandatory diversity-related train-ing, whereas only 58 percent of nonmanagerial employees participated in mandatory D&I-related training. From an OD and Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
288 Diversity at Work: The Practice of Inclusionculture change perspective this is worrisome, because the majority of staff at any organization other than perhaps a professional services organization will be significantly more nonmanagerial employees than executives or managers. Supporting a culture change through a training agenda needs to reach all levels of employees to be truly effective and take hold.In sum, although training can help people understand diver-sity and what it means to have an inclusive culture, it should not be considered the end solution in itself. Because the impact of the training may eventually wear off (particularly if it is not fully sustained over time as employees exit the organization and new ones enter), organizations should not treat training as a stand-alone solution to integrating diversity into a company’s culture. Training can solve a necessary educational need, but in order for diversity and inclusion to be effectively integrated into an organi-zation’s culture, their importance must continue to be communi-cated from the senior leaders of the organization as a business priority and embedded into all OD core processes.The Next Big Thing in D&IFew would disagree with the statement that globalization has increased the complexity of understanding how organizations in general, and diversity and inclusion in particular, function across different parts of the world. Technological advances, the intercon-nectedness of global markets, adoption of new recruiting prac-tices, and other changes have shifted the way people around the world interact with one another and will continue to do so in the future (Meister & Willyerd, 2010). Accordingly, OD practitioners will also need to change the ways they approach diversity and inclusion. This globalization is especially important for large mul-tinational companies to consider. Societal culture is changing as well, and it is important that companies adapt to reflect the social environments in which they operate.Similarly, D&I as a field is slowly moving away from an empha-sis on primarily ethnic differences (such as counting members of different racial and gender groups) to more of an inclusive approach to viewing diverse cultures and ways of thinking in general (Hansen, 2010; Holvino et al., 2004). The focus has also Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 289shifted to support and reflect a more international perspective on D&I. This shift, however, requires that companies have what Plummer and Jordan (2007) refer to as “cultural competence” (also see Bennett, Chapter 5, this volume), or creating an environ-ment in which diverse groups can learn from each other’s differ-ences and leverage those differences for business effectiveness. As a result of this shift in focus from racial or gender diversity to cultural diversity, D&I initiatives must be customized to fit the organizational culture and mission and strategy of each organiza-tion. Effective D&I programs must be adapted by OD practitio-ners to meet the needs of a global workforce.We offer a few examples of HR and OD programs designed to meet the unique needs of an international employee popula-tion. Before executives leave for international assignments, for example, many companies often ask assignees to take preassign-ment cultural training programs so that they can better integrate with the host country’s culture upon arrival. Some organizations are also expressing an interest in measuring how adept their employees are at adapting to and learning about other cultures. Assessments like the Hogan Personality Inventory (Hogan, Hogan, & Warrenfeltz, 2007) and the Prospector survey (Spreitzer, McCall, & Mahoney, 1997) include subscales on learning about other cultures. Spreitzer and colleagues (1997) found that managers who are better at adapting to change may display higher perfor-mance and more executive potential than those who do not adapt well to transitions. In addition, Plummer and Jordan (2007) describe a McKinsey study that characterized high-potential talent as including such key competencies as communicating across differences, practicing cross-cultural adaptability, and solving problems collaboratively, to name a few. The concept of learning ability also fits well here and has been incorporated into recent conceptualizations of high potentials (for example, Silzer & Church, 2009).Upon reflection, two key points for the practitioner are clear: (1) individuals who are more culturally aware and focused on learning are more inclusive than others and may well make better leaders, and (2) the concept of inclusion is indeed broader than just a D&I functional agenda and represents one of the basic fundamentals of organization development and change. Clearly, Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
290 Diversity at Work: The Practice of Inclusionthis is an area in which OD practitioners can add value by incor-porating cultural awareness and learning frameworks and mea-sures into OD processes and practices in organizations. In addition, to advance the integration of D&I and OD in the future, practitioners need to pull diverse perspectives into their own work and look at broader cultural dynamics and issues than what tra-ditional OD efforts might have addressed in the past. Some great work has been started in this area already through various outlets, including the OD Practitioner in particular, but the journey is far from over.ConclusionThe purpose of this chapter has been to help OD and related practitioners think about the ways in which they can significantly influence the organizations with which they work (either inter-nally or externally) to drive a more diverse and inclusive environ-ment in everything they do, or, to put it another way, to practice Inclusive OD. We have discussed four key data-driven processes that currently exist in many organizations of any scale, the impor-tance of each of those tools for driving cultural transformation, and some examples of how these have been applied and/or reap-plied over the last decade at PepsiCo. Although there are many approaches to doing OD, we contend that data-based feedback tools and processes are the only true way to drive something as deep and systemic as a full-scale D&I agenda. We have also dis-cussed some key challenges and observations related to achieving this integration between the two disciplines—an integration that seems entirely natural but has not yet occurred in many organiza-tions, as shown by some of the benchmark data and anecdotes from colleagues.The final point we would like to make is also a classic OD and D&I value or construct: the notion of the role of the self in driving an intervention or behaving inclusively toward others. Whether in the form of process consultation (for example, Schein, 1987, 1988) or from the perspective of having different diversity and inclusion lenses (for example, Williams, 2001), it is critical that OD practitioners engaged in this work consider their own identi-ties and what they bring implicitly to diversity and inclusion. This Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 291might mean partnering with different types of practitioners to drive a particular change effort or becoming familiar with other perspectives, volunteering, or even getting in touch with one’s own unique aspects (see, for example, the work of Bill Proudman on White males, 2001, 2008), but in the end it reflects back to the notion of learning. As OD professionals we need to continue to learn and embrace the D&I perspective, including how it applies across different groups, organizations, and cultures.ReferencesAvedon, M. J., & Scholes, G. (2010). Building competitive advantage through integrated talent management. In R. Silzer & B. E. Dowell (Eds.), Strategy-driven talent management: A leadership imperative (pp. 73–122). San Francisco: Jossey-Bass.Barrow, S., & Mosely, R. (2005) The employer brand: Bringing the best of brand management to people at work. London: Wiley.Bracken, D. W., Timmreck, C. W., & Church, A. H. (2001). The handbook of multisource feedback. San Francisco: Jossey-Bass.Brazzel, M. (2007). Diversity and social justice practices for OD practi-tioners. OD Practitioner, 39(3), 15–21.Burke, W. W. (1982). Organization development: Principles and practices. Glenview, IL: Scott, Foresman.Burke, W. W., & Litwin, G. H. (1992). A causal model of organizational performance and change. Journal of Management, 18, 523–545.Cascio, W. E., & Aguinis, H. (2008). Staffing twenty-first-century organi-zations. Academy of Management Annals, 2, 133–165.Chin, J. L. (2010). Introduction to the special issue on diversity and leadership. American Psychologist, 65(3), 150–156.Church, A. H. (1997). Managerial self-awareness in high performing individuals in organizations. Journal of Applied Psychology, 82, 281–292.Church, A. H. (2001). The professionalization of organization develop-ment: The next step in an evolving field. In W. A. Pasmore and R. W. Woodman (Eds.), Research in organizational change and develop-ment (Vol. 13, pp. 1–42). Greenwich CT: JAI Press.Church, A. H., Burke, W. W., & Van Eynde, D. F. (1994). Values, motives, and interventions of organization development practitioners. Group & Organization Management, 19, 5–50.Church, A. H., & Oliver, D. H. (2006), The importance of taking action, not just sharing survey feedback. In A. Kraut (Ed.), Getting action Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
292 Diversity at Work: The Practice of Inclusionfrom organizational surveys: New concepts, technologies, and applications (pp. 102–130). San Francisco: Jossey-Bass.Church, A. H., & Rotolo, C. T. (2010). The role of the individual in self-assessment for leadership development. In M. G. Rothstein & R. J Burke (Eds.), Self-management and leadership development (pp. 25–61). Cheltenham, Glasgow, UK: Edward Elgar Publishing.Church, A. H., & Waclawski J. (2001). Designing and using organizational surveys: A seven step process. San Francisco: Jossey-Bass.Church, A. H., & Waclawski, J. (2010). Take the Pepsi Challenge: Talent development at PepsiCo. In R. Silzer & B. E. Dowell (Eds.), Strategy-driven talent management: A leadership imperative (pp. 617–640). San Francisco: Jossey-Bass.Church, A. H., Walker, A. G., & Brockner, J. (2002). Multisource feedback for organization development and change. In J. Waclawski & A. H. Church (Eds.), Organization development: A data-driven approach to organizational change (pp. 27–54). San Francisco: Jossey-Bass.Cummings, T. G., & Worley, C. G. (1993). Organization development and change (5th ed.). St. Paul, MN: West Publishing Co.Cummings, T. G., & Worley, C. G. (2009). Organization development and change (9th ed.). Mason, OH: South-Western Cengage Learning.Ferdman, B. M. (1999). The color and culture of gender in organiza-tions: Attending to race and ethnicity. In G. N. Powell (Ed.), Hand-book of gender and work (pp. 17–34). Thousand Oaks, CA: Sage.Frankel, B. (2008, May). PepsiCo’s Indra Nooyi: “I am a walking example of diversity.” DiversityInc, 38–43.French, W. L., & Bell, C. H. Jr. (1990). Organization development: Behavioral science interventions for organization improvement (4th ed.). Engle-wood Cliffs: NJ: Prentice-Hall.Hankin, H. (2005). The new workforce: Five sweeping trends that will shape your company’s future. New York: AMACOM.Hansen, F. (2010). Diversity of a different color. Workforce Management, 89(6), 22–26.Hogan, R., Hogan, J., & Warrenfeltz, R. (2007). The Hogan guide: Inter-pretation and use of Hogan inventories. Tulsa, OK: Hogan Press.Holvino, E., Ferdman, B. M., & Merrill-Sands, D. (2004). Creating and sustaining diversity and inclusion in organizations: Strategies and approaches. In M. S. Stockdale & F. J. Crosby (Eds.), The psychology and management of workplace diversity (pp. 245–276). Malden, MA: Blackwell.Jackson, B. W., & Hardiman, R. (1994). Multicultural organization de -velopment. In E. Cross, J. H. Katz, F. A. Miller, & E. W. Seashore Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 293(Eds.). The promise of diversity: Over 40 voices discuss strategies for elimi-nating discrimination in organizations (pp. 221–239). Burr Ridge, IL: Irwin.Jackson, S. E., & Associates (Eds.). (1992). Diversity in the workplace: Human resources initiatives. New York: Guilford Press.Jayne, M. E. A., & Dipboye, R. L. (2004). Leveraging diversity to improve business performance: Research findings and recom-mendations for organizations. Human Resource Management, 43, 409–424.Kanter, R. M. (1977). Men and women of the corporation. New York: Basic Books.Karoly, L. A., & Panis, C. W. A. (2004). The 21st century at work: Forces shaping the future workforce and workplace in the United States. Santa Monica, CA: RAND Corporation.Katz, D., & Kahn, R. L. (1978). The social psychology of organizations (2nd ed.). New York: Wiley.Kirkpatrick, D., & Kirkpatrick, P. (2006). Evaluating training programs (3rd ed.). San Francisco: Berrett-Koehler.Kotter, J. P. (1996). Leading change. Boston, MA: Harvard Business School Press.Kraut, A. I. (2006). Getting action from organizational surveys: New concepts, technologies, and applications. San Francisco: Jossey-Bass.Lawler, E. E. (1981). Pay and organization development. Reading, MA: Addison-Wesley.Lawler, E. E. (1990). Strategic pay: Aligning organizational strategies and pay systems. San Francisco: Jossey-Bass.Levy, P. E. (2010). Industrial/organizational psychology: Understanding the workplace (3rd ed.). New York: Worth Publishers.McLean, G. N. (2006). Organization development: Principles, processes, and performance. San Francisco: Berrett-Koehler.Meister, J. C., & Willyerd, K. (2010). The 2020 workplace: How innovative companies attract, develop, and keep tomorrow’s employees today. New York: HarperCollins.Michaels, E., Handfield-Jones, H., & Axelrod, B. (2001). The war for talent. Boston, MA: Harvard Business School Press.Murray, A. (2011, April). View from the top: PepsiCo’s Indra Nooyi on the trade-offs she made—and why she hopes her daughters won’t have to. Wall Street Journal Online, interview transcript obtained at http://online.wsj.com/article/SB1000142405274870401360457 6247630655985522.htmlPepsiCo Inc. (2011). Performance with purpose: The promise of PepsiCo (2010 annual report). Purchase, NY: author.Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
294 Diversity at Work: The Practice of InclusionPlummer, D., & Jordan, C. G. (2007). Going plaid: Integrating diversity into business strategy, structure and systems. OD Practitioner, 39(2), 35–40.Proudman, B. (2001). Understanding American White male culture. Unpub-lished manuscript.Proudman, B. (2008). White men and diversity: An oxymoron? Natural Gas & Electricity, 24(12), 11–15.Royal, C., & Vogelsang, J. (2010). From the editors. Special issue: In our own voices: The contributions and challenges of OD practitioners of color. OD Practitioner, 42(2), 1.Schein, E. H. (1985). Organizational culture and leadership: A dynamic view. San Francisco: Jossey-Bass.Schein, E. H. (1987). Process consultation (Vol. 2). Reading, MA: Addison-Wesley.Schein, E. H. (1988). Process consultation (Vol. 1, rev. ed.). Reading, MA: Addison-Wesley.Schiemann, W. A., & Morgan, B. S. (2006). Strategic surveys: Linking people to business strategy. In A. Kraut (Ed.), Getting action from organizational surveys: New concepts, technologies, and applications (pp. 76–101). San Francisco: Jossey-Bass.Silzer, R., & Church, A. H. (2009). The pearls and perils of identifying potential. Industrial and Organizational Psychology: Perspectives on Science and Practice, 2, 377–412.Silzer, R., & Dowell, B. E. (Eds.). (2010). Strategy-driven talent management: A leadership imperative. San Francisco: Jossey-Bass.Society for Human Resource Management (SHRM). (2010). Workplace diversity practices: How has diversity and inclusion changed over time? A comparative examination: 2010 and 2005. Retrieved from http://www.shrm.org/Research/SurveyFindings/Articles/Pages/WorkplaceDiversityPractices.aspxSpreitzer, G. M., McCall, M. W., & Mahoney, J. D. (1997). Early identifi-cation of international executive potential. Journal of Applied Psy-chology, 82, 6–29.Thomas, D. A., & Creary, S. J. (2009). Meeting the diversity challenge at PepsiCo: The Steve Reinemund era (Case: 9–410–024). Boston, MA: Harvard Business School Publishing.Thomas, D. A., & Gabarro, J. J. (1999). Breaking through: The making of minority executives in corporate America. Boston, MA: Harvard Busi-ness School Press.Waclawski, J., & Church, A. H. (2002). Introduction and overview of organization development as a data-driven approach for orga-nizational change. In J. Waclawski & A. H. Church, (Eds.), Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusive Organization Development 295Organization development: A data-driven approach to organizational change (pp. 3–26). San Francisco: Jossey-Bass.Welch, J., & Byrne, J. A. (2001). Jack: Straight from the gut. New York: Warner Business.Wiley, J. (2010). Strategic employee surveys: Evidence-based guidelines for driving organizational success. San Francisco: Jossey-Bass.Williams, M. A. (2001). The 10 lenses: Your guide to working in a multicul-tural world. Herndon, VA: Capital Books.Zemke, R., Raines, C., & Filipczak, B. (2000). Generations at work: Manag-ing the clash of veterans, boomers, Xers, and nexters in your workplace. New York: American Management Association.Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:46:52.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusion at Societal Fault Lines 523Affairs, 2010). Despite a wide range of initiatives and considerable monetary investment by the private, public, and third sectors (not-for-profit and nongovernment), little has happened over the past two decades to change this situation (Australian Government, 2007). The disadvantages—including high welfare dependency, low literacy, low personal initiative, and poor physi-cal and psychosocial well-being—persist (Appo & Härtel, 2003, 2005; Taylor & Scambary, 2005).The contemporary situation for the majority of Australian Aboriginals remains one of societal and economic exclusion. The challenge for organizations and governments is to identify ways to turn this situation around. Our aim in this chapter is to highlight the key issues that need to be considered in doing so and to present a case study that provides fertile ground for critiquing and developing organizational solutions to contribute to this agenda.In the next section, we present a case study of a practical intervention recently implemented in the Pilbara region by RTIO that demonstrates the important practical lessons and solutions regarding social inclusion that can be learned by examining the issues that arise at the boundaries of two societies in a single nation.Case Study: Rio Tinto Iron OreThe Pilbara region of Western Australia was once home to thirty-one language groups (clans) who peacefully respected one anoth-er’s territories at the time of European contact in 1864 (Pilbara History and Cultures, 2009). The Pilbara region was one of the last areas to experience contact between Aboriginal and Euro-pean society, and this region went through similar colonization experience of massacres and decimation of traditional culture (Bednarik, 2002).Early work for Aborigines in the Pilbara, as in so many other places in Australia, was on cattle stations. As this work faded with the rise of industry, including the mining sector, most Aborig-ines were excluded from training and, as a consequence, from employment opportunities (Langton & Mazel, 2008). Many were demoralized and forced into welfare dependency. Some were forcibly relocated to overcrowded camps, and their fringe-dweller Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
524 Diversity at Work: The Practice of Inclusionstatus on the edges of towns led to further social marginalization. As noted by Howitt (2005), “each new wave of development, each new layer of investment contributed its characteristic elements to emerging patterns of Aboriginal marginalization and powerless-ness” (p. 165).Today, the Pilbara is a hotbed of mining activity, earning $34.5 billion between 2009 and 2010 alone and providing 29.4 percent of the employment opportunities in the region (Department of Regional Development and Lands, 2011). The Traditional Owners1 of the Pilbara are legally entitled to receive massive divi-dends from this boom, but those dividends are not necessarily forthcoming without protracted legal battles or in the amount provided by law (O’Brien, 2011). While non-Indigenous Australia has prospered from the mining boom, considerable debate con-tinues to rage—reminiscent of past paternalistic approaches—regarding the best way to distribute the wealth to the Aboriginal people on whose land 60 percent of mining activities occur. The reality is that in many cases, the Traditional Owners of the land are experiencing further cultural upheaval and little prosperity (Langton & Mazel, 2008).The case we present emanates from a project undertaken on behalf of Rio Tinto Iron Ore (RTIO). The impetus for the project was a situation not uncommon to industries operating near Indig-enous communities: acute labor shortage in the face of high Aboriginal unemployment. In this case, the issue was that many of the Aboriginal contractors in the Pilbara did not have enough work, while at the same time RTIO was having some difficulty in finding enough contractors to satisfy its requirements. We begin the case with a brief discussion of RTIO’s orientation toward Aboriginal Traditional Owners in the Pilbara, followed by a description of the steps taken to identify the causal factors under-lying the low participation of Aboriginal contractors and discus-sion of the approach designed and implemented by RTIO to advance the social and economic inclusion of Aboriginal contrac-tors in the Pilbara.1The term Traditional Owner has a statutory meaning, referring to the land rights an Aboriginal clan has, based on historical ties to the land (Holcombe, 2004).Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusion at Societal Fault Lines 525RTIO: Aboriginal Community RelationsSome background on RTIO is useful in understanding the con-temporary philosophy by which the organization relates to the Aboriginal Traditional Owners of the Pilbara. Prior to the appoint-ment of CEO Leon Davis, RTIO dealt with Aboriginal land owners through legal means, as did the mining industry in general. Con-fronted with this situation, in 1995 Davis gave a speech drawing on the legal concept in his native country, the UK, of fiat justitia ( “let right be done”), which the British king had used to endorse correcting a wrong. Davis said he saw the reliance on legislation in Aboriginal relations as “a never ending war with no winners” and believed that in spite of the legality of such a route, “right” was not being done (Hart, 2008). Davis’s view led to a shift in the RTIO philosophy as well as the industry stance, with most mining organizations moving away from legislation to a model of negotia-tion and collaboration.Today, RTIO embraces the tripartite collaborative model posited by Taylor and Scambary (2005) as the foundation for overcoming Aboriginal disadvantage in the Pilbara. This model identifies unique and interdependent roles for government, industry, and Indigenous organizations. In the case of employ-ment, this means capacity building by government organi-zations, problem identification and decision making by Indigenous organizations, and alignment of industry policies and practices with the realities of the Aboriginal labor pool. A key challenge for a corporation such as RTIO is changing its expectations regarding decision-making time frames because cultural norms for decision making in many Aboriginal com-munities require ample deliberation involving all members of the community.RTIO lays out its business practice statement in a document titled, “The Way We Work” (Rio Tinto Iron Ore, n.d.; all sub-sequent quotations are from that document, unless otherwise indicated). The company asserts: “Wherever we operate, we do our best to accommodate the different cultures, lifestyles, heri-tage and preferences of our neighbors, particularly in areas where industrial development is little known. Our communities and Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
526 Diversity at Work: The Practice of Inclusionenvironment work is closely coordinated and takes account of peoples’ perceptions of the effects and consequences of our activities.”RTIO acknowledges that “good management of community relationships is as necessary to our business success as the manage-ment of our operations. Good performance requires all of us to accept responsibility for community relationships.” The focus on community relations is illustrated by this statement: “We set out to build enduring relationships with our neighbors that are char-acterized by mutual respect, active partnership and long term commitment.” RTIO’s Communities policy goes on to say: “Our relationships with communities involve consultation to open new facilities, to run existing ones and to close them at the end of their productive lives. In doing so, we support community based projects that can make a difference in a sustainable way without creating dependency. We also assist regional development and training, employment and small business opportunities. In devel-oping countries, we are often asked to support health, education and agricultural programs and, in collaboration with others, we help where practical.”Competencies in community development and community relations are key to the sustainability of modern mining com-panies, which require not only a legal license to operate but also a social license, which refers to the permission given by a society for an organization to operate (Harvey, 2011). As expressed by Bruce Harvey, Global Practice Leader—Communities and Social Performance for RTIO, earning a social license to operate means “a direct engagement and a direct broad-based social contract with the host community around what they expect of us . . .” (Harvey, 2011). Regarding RTIO, Harvey goes on to say “We should be earning our social licence through fitting in and adapting to the prevailing social norms and acceptable social norms and the legal requirements are simply a complementary element to that” (Harvey, 2011). Accordingly, RTIO aims to be “the ‘developer of choice’ for communities and governments” (Harvey & Brereton, 2005, p. 3), which it sees as essential to competitive advantage in secur-ing new resources, attracting and retaining talent, and reducing corporate risk.Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusion at Societal Fault Lines 527From its organizational values to its business practice statement, RTIO appears to adopt a view of social inclusion as incorporating community consultation in corporate activity from preentry to exit, good corporate-community relations, com-munity self-determination, and promotion of community and regional sustainability. In line with this perspective, the first step undertaken in the project was problem identification in con-sultation with local communities. This phase of the project is summarized next.Problem IdentificationAlthough RTIO had publicly stated its commitment to working with Aboriginal contractors, there was clear evidence that this commitment was not being translated into practice (Wand, Langton, & McLeish, 2008). As a first step to addressing the limited engagement of Pilbara Aboriginal contractors with RTIO, the Aboriginal Enterprise Development workshop was co-designed and coconvened by one of this chapter’s authors (Dennis Appo) in Dampier on August 22, 2007. The purpose of this forum was to consult with Aboriginal contractors to identify the issues and concerns underpinning the unsatisfactory level of engagement. The outcome of the forum discussions indicated that some of the issues related to RTIO organizational practices. The following issues were the drivers for the intervention we designed:• Start-up environment does not facilitate Aboriginal contractors to grow their business and meet standards—there is a lack of mentoring to get established and meet bond requirements.• High cost of training to standard Aboriginal people who have never worked before.• Complicated entry systems (such as police record and reference checks, absence of drug and alcohol issues, use of electronic applications, and literacy requirements) create barriers to recruitment.• Poaching by big companies of Aboriginal people after Aboriginal businesses had invested funds in training them.Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
528 Diversity at Work: The Practice of Inclusion• Big contractors working for RTIO do not make real efforts to recruit Aboriginal subcontractors.• High cost (money and time) of tendering (bidding) for a contract is a barrier to small Aboriginal businesses.• Poor coordination between RTIO and Aboriginal businesses, including advising Traditional Owners which companies have received contracts and when tender opportunities are available.• Lack of business acumen in Aboriginal businesses, including tender writing skills and financial management skills.• Some organizations claiming Aboriginal Organization status (that is, an organization that represents Aboriginal economic and cultural interests) when they have a low level of Aboriginal participation or ownership.• Ad hoc approach by RTIO to capacity building, driven by immediate operational needs.The workshop surfaced a number of issues that needed to be addressed at the policies and procedures level for RTIO to enable the Aboriginal contractors to become more actively engaged in the wider Pilbara economy. Facilitating the development of an intervention to address these issues was RTIO’s explicit re -cognition of the need for a holistic and systematic approach to community relations and capacity development. Harvey and Brereton (2005) summarize this approach, saying:Clearly, for any corporate capability to be sustainable it must be systemic; that is, it must be built into the organization’s standard methods and processes for “doing business” and must be able to sustain changes in personnel. This recognition has led leading companies such as Rio Tinto to focus on developing comprehensive systems in the social arena, with the long term aim of embedding the same level of competency as exists in the corporation’s technical and financial systems. . . . Overall, these systems can be usefully imagined as the “architecture” of the corporation; they include clearly articulated values and policies, standards and guidance, communication and reporting systems, and methods of verification [p. 4].Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusion at Societal Fault Lines 529In the next section, we describe the intervention we devel-oped to respond to the issues identified in the workshop as relating to RTIO systems and processes.The InterventionThe first step we took in formulating possible solutions RTIO could offer to the issues identified in the workshop was to tabulate in detail the identified barriers to engagement for Aboriginal contractors, along with possible ways RTIO could remove these. The result of this undertaking is presented in Table 19.1.The list of barriers identified demonstrates the complexity of RTIO’s relationships with its Aboriginal contractors. Accordingly, the potential solutions identified indicated the need for RTIO to take a holistic and systematic approach to addressing the issues. Two underlying principles were followed in solution identifica-tion. First, RTIO required that all contractors meet safety stan-dards, deliver on contracts, and ensure financial accountability. Second, the Traditional Owners required a reversal of the trend of continued economic decline among their people in the midst of an economic boom fueled by resources from their land (Langton & Mazel, 2008).Keeping these two principles in mind, we examined RTIO’s procurement process with the intent of identifying how the process could be modified to open the way for participation by the Aboriginal contractors. The process, depicted by the unshaded steps in Figure 19.1, commenced contact with con-tractors at the time the call for tenders was issued (step 4) followed by the receipt of submitted tenders (step 9). Compar-ing this part of the process to the reality of Aboriginal con-tractors revealed several issues. First, there was a need to understand which businesses qualified as Aboriginal businesses. The Traditional Owners take responsibility for this process, as they are the ones with the history, knowledge, and cultural authority to speak on behalf of all of the families in the Pilbara. Adding this step was essential for a systematic approach to increasing participation and to enable assessment of the true Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
530 Diversity at Work: The Practice of InclusionTable 19.1. Barriers to Aboriginal Contractor Engagement and Potential RTIO SolutionsBarriers to engagementRTIO’s possible solutionsSystems and processes for contractors need to be altered.Alter the systems and processes.Prequalification process with government is onerous.Stepping stones to address this process should be put in place.This is a normal part of doing business. Training and development programs are being provided to upgrade business skills.RTIO is missing out on good Aboriginal people because of your systems—such as police records and referee checks.We don’t care about work history—we will train people in the operation. If you are fit to work and literate, you will get a job.Talent—spotting existing employees—to access apprenticeships for potential business development.We are always looking for good people and will assist with training and development.EPMS system—we got rid of EPMS system with Woodside contracts.We will work to refine our procurement system to include evaluation criteria relevant to Aboriginal contractors.Electronic application excludes some Aboriginal people.Train all Aboriginal contractors to be proficient with electronic applications.Health barrier—drug and alcohol.We work with people to get through these issues.Literacy.Numeracy and literacy education is a state government responsibility. We will assist in connecting Aboriginal contractors to these resources.No flexibility—be innovative, not lenient.We will work to refine our procurement system to include evaluation criteria relevant to Aboriginal contractors.Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusion at Societal Fault Lines 531Barriers to engagementRTIO’s possible solutionsIs there any way that some work need not go to tender?See AUSAID—training Aboriginal people to participate in projects—six months’ notice to give people a chance to prepare themselves.Rather than lowering standards, we are providing training and development for Aboriginal contractors so that they will have the necessary skills to write tender applications.Putting up 10 percent of the contract as a bond is not realistic for small contractors unless there is some continuity of work (RTIO might be prepared to waive this bond).The new procurement process (with no bond) should provide a steady flow of work to Aboriginal contractors who are capable of meeting the commercial and operational outcomes sought by the business.Cost for preparing contract is high and not easily managed by small companies. May require some additional support.Training and development will be provided for Aboriginal contractors.Many people have never worked, but we carry the cost of bringing people up to speed.Use the existing training and development resources from government.High cost of training to skill people to contract standards.This is the reality for this industry.Aboriginal people who don’t get into the mainstream get left behind and it becomes harder to get a job.We agree; that’s why we are providing training and development.EPCM contractors are not approaching Traditional Owners to do joint venture projects or directly employ local people.Provide incentives for EPCM contractors to employ local Aborigines.Table 19.1. ContinuedContinuedDiversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
532 Diversity at Work: The Practice of InclusionBarriers to engagementRTIO’s possible solutionsWe are being ignored as potential subcontractors. Head contractors at this level need to be given clear directions from RTIO and there should be follow-up audit from RTIO.We can’t make them do something that is not in their contract, but we can provide them with incentives to employ local Aborigines.“Best endeavors” is subjective—problematic in performance of contracts.Where allowable by law, we will make our contracts much less subjective.Need for consistency in tenders and performance to overcome “the veneer of the Aboriginal organization”—need to test the level of Aboriginal participation and or ownership.Need to develop a coordinated consistent approach to contracting across RTIO:GuidelinesAccessTransparencyNot enough weight given to Indigenous employment—what are the weightings?Local Aboriginal people being employed.Local/Traditional Owner joint venture.Develop transparent performance measures for procurement—roll out trial to all contracts and focus on:Local Aboriginal employeesLevel of support for entry-level employeesJoint venture projects with traditional ownersHow can there be real value out of these “head” contracts delivering for Traditional Owners and Indigenous businesses and honoring their commitments to RTIO?Audit head contractor performance—we need to check levels of Indigenous participation.Big contractors are locking Aboriginal contractors out.Get IBA or another big contractor to assist with projects outside RTIO.Contracting steering group inside RTIO would be useful, as would Pilbara Contracting Association.Coordinate across Aboriginal businesses.Table 19.1. ContinuedDiversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Figure 19.1. Aboriginal Contractor Engagement5Aboriginalbusinessesidentified andregistered6Match scope ofwork to qualifiedbusinesses7Notify RTP ofAboriginalparticipants4Send out tendervia Procuri 12Award ofcontract 11AnalysisAssessmentRecommendation10Short-list suppliersSpecial conditions forAboriginal contractorsNegotiations 9Submissionof tenders13RTIO ContractorManagementSystem1Procurementproject needidentified withinbusiness unit2Scope of workidentified anddrafted 3Nominate potentialtenderers anddetermine evaluationcriteria14Business coaching8Resend if Aboriginalbusinesses identifiedNote: The shaded areas indicate changes to the Rio Tinto Procurement (RTP) system.Source: Härtel and Fujimoto, 2010, p. 336.533Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
534 Diversity at Work: The Practice of Inclusionlevel of participation in RTIO work by Aboriginal contractors. The procurement process for Aboriginal contractors was thus modified to include assessment by Traditional Owners of Aborig-inal Organization status, denoted as step 5 in Figure 19.1. One development issue identified for this step was that coaching and training were needed to ensure that Aboriginal contractors could meet prequalification criteria.The second and related process gap was the need to match work on offer with the capacity and category of qualified Aborigi-nal contractors. This additional step (denoted as step 6 in Figure 19.1) was necessary to ensure that calls for tenders are distributed to all qualified Aboriginal contractors. One development issue identified for this step was that many Aboriginal contractors require business coaches to help them with writing tender appli-cations (bid proposals). The skills and knowledge that must be evident in the tender application from all contractors include the following:• Costing• Time frame• Health, safety, and environment• Plant and equipment• Current work obligations• Personnel (HR management)• Insurance• Demonstrated capacity• Project management• Technical skills• General management• Cash flow managementThe dual aim of business coaching is to help the contractors complete the tender application properly and to develop the contractors’ skills in this area. The inclusion of notifying RTIO procurement (see Figure 19.1, step 7) enables RTIO to track Aboriginal participants for the purposes of providing timely support and ensure Aboriginal contractors do not miss out on work opportunities due to inadequately constructed tender Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusion at Societal Fault Lines 535applications, a primary point at which many Aboriginal contracts were lost previously. The new step also allows RTIO to resend the call for tenders (step 8) if Aboriginal businesses are identified beyond those determined in step 7.Once tenders are submitted, short-listing and negotiations begin. Previously this step (step 10) did not incorporate a means for preferential treatment for Aboriginal businesses or businesses with Aboriginal employment initiatives. To address this gap, special conditions were added to Step 10 in the form of key per-formance indicators (KPIs). The KPIs, shown in Table 19.2, are used not only in the tender selection process but also subse-quently in quarterly contract review meetings.The revised process for Aboriginal contractor engagement highlighting key development areas is depicted in Figure 19.2. The figure illustrates that development does not stop at the point of winning the contract but rather is ongoing until the Aboriginal contractors are established with proficient technical, enterprise, and financial skills. This is important, as most of the Aboriginal contractors are small to medium in size with limited resources. Given the context in which the Aboriginal contractors exist, we concluded that the best results would be achieved through one-on-one mentoring, commencing from the writing of the application to tender through to contract completion. A social inclusion approach in these circumstances would thus be formal and systematic, and based on an individual business development needs assessment. A scaffolding approach is required, which needs to be ongoing until the contractor involved has become inde pendent, supporting the self-determination criteria of social inclusion. Recognizing that organizations are one pillar of the solution, where external resources exist, these should be drawn upon. A wealth of such resources exists, for example from Indigenous-specific commercial organizations (such as Indige-nous Business Australia), state government (for example, the Department of Industry and Resources), and not-for-profits (such as the Pilbara Area Consultative Committee); however, no coor-dination body exists. For this reason, we concluded that RTIO needed to provide a coordination role to ensure development was delivered systematically.Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Table 19.2. Key Performance IndicatorsKey Performance IndicatorAgreed TargetSupport for school-based vocational programsNumber of school-based apprenticeships and traineeshipsX number per yearNumber of structured workplace learning opportunitiesX number per yearAttendance at Aboriginal education, training, and employment meetings80 percent of scheduled meetingsPreemployment programs for Aboriginal peopleNumber of preemployment programs (structured workplace learning opportunities) conducted for Aboriginal peopleX number per yearNumber of participants in preemployment programs (structured workplace learning opportunities) conducted for Aboriginal peopleX number of participants successfully completingEntry-level trainingNumber of apprentices and trainees employed by the service providerX apprentices and traineesNumber of Aboriginal apprentices and trainees employed by the service providerNumber of Aboriginal apprentices and trainees employed by the service provider’s subcontractorCulturally appropriate working environmentProportion of new starters receiving cultural awareness training100 percentProportion of managers and supervisors undertaking appropriate level of cultural awareness training100 percentAboriginal employmentThe number of Aboriginal people working for the service provider and the service provider’s subcontractorIncrease of X number of Aboriginal employeesBusiness developmentPrequalified Aboriginal organizations are invited to bid on subcontracted goods or service requirements100 percent of subcontracted requirements where possibleValue of subcontracts let to prequalified Aboriginal organizations$ value536Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusion at Societal Fault Lines 537Figure 19.2. Aboriginal Contractor Engagement: Revised ProcessMost Aboriginal contractorsdon’t have enough work.1Contractors receive tenders,but they need help writingtender applications.3Expansion projects and RioTinto Procurement (RTP) sendmany tender invitations toAboriginal contractors. 2All contractors now haveenough work, but needfurther development of theirbusiness skills.5Aboriginal contractors are nowfully participating in all areas ofthe Pilbara economy.8Business coaches help withwriting tender applications.47MMCNC provides coachingacross a broad range ofbusiness activities. Thisincludes benchmarking eachcontractor against best practice.6Aboriginal contractorand employment datasent to communitiesto distribute data. The management of change Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
538 Diversity at Work: The Practice of InclusionFigure 19.3. Benchmarking to Identify Viable Business SolutionsIdentify contractors’ process forbenchmarking and appropriatemeasures of performance.Find another contractor (or RTIO unit)with best performance and collect dataon their operations.Compare operations; find and analyzedifferences in performance.Find the reason for differences in thecontractor’s performance and look forways of overcoming these.Redesign the contractor’s process basedon findings and establish performancegoals.Implement plans, monitor progress, andcontinue benchmarking.This process inducesthe management ofchange.Note: Many aspects of the contractors’ businesses were deficient in some way; the most viable solution for most of them is to see how other successful businesses perform the functions. This type of benchmarking is the preferred learning method for most contractors.Another initiative to support Aboriginal contractor develop-ment is benchmarking. This process, illustrated in Figure 19.3, should be used to compare each contractor against the best oper-ations in RTIO. The targeted benchmark organization might be another Aboriginal contractor, a non-Aboriginal contractor, or any one of the RTIO operations. At the beginning, all of the busi-ness systems for each contractor need to be examined by RTIO. Each contractor also needs to be advised of the best practice that they can copy or adapt to their operations. This allows the setting Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusion at Societal Fault Lines 539of realistic performance targets and shows the contractor how these targets can be met.Lessons LearnedIn this chapter, we looked at the longstanding social and eco-nomic exclusion of Aboriginal peoples in Australia, which persists even in the midst of the extraordinary economic boom associated with mining operations undertaken largely on their traditional lands. We introduced the concept of societal fault lines to address the potential for social exclusion on the basis of differences in societal characteristics. We illustrated that societal fault lines can occur across national borders or within, and we identified the situation of Aboriginal peoples in Australia as an example of the latter. We presented a case study of Aboriginal contractors in the Pilbara region of Australia, which showed persistent under-representation in work opportunities despite acute labor short-ages in the mineral and resources sector in the region. The case outlines a new approach pioneered by Rio Tinto Iron Ore (RTIO) in response to community dissatisfaction with the ongoing eco-nomic exclusion.The case illustrated a number of factors contributing to the social exclusion of local Aboriginal peoples from work opportuni-ties. One of these barriers to engagement was created by RTIO’s internal administrative systems and procedures. By modifying its procurement system to take into account the fault line relating to the realities of Aboriginal work history and business and financial skills, the company was able to open doors that had previously been closed.Another barrier identified was game playing. Analysis of RTIO contractor behavior revealed that some organizations were claim-ing Indigenous status on the basis of a single Indigenous owner or minimal Aboriginal employment. In consultation with the Tra-ditional Owners, it became clear that the process RTIO used—allowing potential contractors to self-identify as an Aboriginal business—was not only flawed but disrespectful of the sovereignty of Aboriginal communities. This cultural fault line was addressed by turning the identification process over to the Traditional Owners.Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
540 Diversity at Work: The Practice of InclusionA third barrier related to mismatches between claims and actual efforts by RTIO contractors to employ Aboriginal contractors. Two responses were proposed to remove this conflict. First, a clause with special conditions for Aboriginal contractors was introduced into RTIO’s procurement process to allow for preferential treatment. Second, key performance indicators for supporting Aboriginal social and economic devel-opment were identified and included in quarterly contract review meetings.A fourth barrier to engagement illustrated in the case was access to skills development. Analysis of tender outcomes revealed that many Aboriginal contractors were losing out on contracts due to skill deficiencies in writing tender applications. Although quite a number of communities and families had formed private companies to provide services under contract to RTIO and other mining companies, most who won contracts were underperform-ing, and some were encountering difficulties staying commer-cially viable. What was required was one-on-one mentoring for both new and established Aboriginal contractors to grow sus-tainable businesses. Additionally, despite a plethora of training resources available from state and commonwealth agencies and not-for-profit agencies, the lack of a coordinated approach to delivery of systematic ongoing training based on individual needs analysis meant few were getting the development they needed. RTIO’s response to this fault line issue was to identify the avail-able development resources for different needs, undertake regular needs analysis of Aboriginal contractors, and design a mechanism to coordinate the various agency offerings with its own.There are a number of broader lessons that can be drawn from the approach developed for RTIO. We present these next, along with some suggestions on how to build on this framework to further advance innovative organizational and societal prac-tices that support social and economic inclusion.We find evidence that a community-building approach is needed in order to address the needs of Australian Indigenous communities. For organizations, this requires quite a different view of human resource management as traditionally practiced: Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
Inclusion at Societal Fault Lines 541as an inward-looking exercise. To achieve a truly diversity-open mindset (Härtel, 2004), organizations need to become intimately familiar with the diversity in the communities in which they operate, recognizing that issues to accessing economic participa-tion do not begin at the point at which individuals respond to a job advertisement. A holistic social inclusion approach takes a lifespan view of the employment process and recognizes the importance of self-determination to individual, community, and organizational well-being (see Härtel, 2008; Härtel & Ashkanasy, 2011). Such an approach has the goal of promoting self-governance, developing the capacity to participate in employment opportunities in ways that do not create dependencies, and allow-ing flexibility in decision-making practices to enable culturally appropriate consultation processes. Although the approach described in this chapter has this perspective at its heart, it is limited by the fact that the Traditional Owners on whose land mining operations largely occur lack sovereignty to choose the type of economic development they desire and that meets com-munity needs and values. As Morphy (2008) aptly sums up: “But unless change is managed so that people themselves feel owner-ship of the process, and in a way that speaks to their—rather than the market’s—concerns, and that reflects their—rather than the state’s—aspirations, we will be gazing in a few years’ time on yet another failure in Indigenous policy” (p. 8).Real social and economic inclusion of Indigenous peoples requires respect for cultural differences and the right to self-determination. In the absence of the ability to choose how to develop a sustainable economy that preserves their distinct heri-tage, it is likely that the motivation of Indigenous peoples to develop the skills and attitudes germane to an industrial worksite will remain low. It is an economic imperative, therefore, for busi-nesses to identify the ways in which traditional culture can be integrated into their organizational practices, such as in the com-munity consultation processes described in the case presented in this chapter. Not only do organizations require an accurate under-standing of the individual culture of each of the Aboriginal clans in their areas of operation, but they also require the intercultural competency to effectively and respectfully relate. While some Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.
542 Diversity at Work: The Practice of Inclusionwork has been done in the area of intercultural competency, including some that identifies that the intercultural competencies required in a given cultural setting may differ from those required in another (Härtel, Lloyd, & Singhal, 2010), there is a lack of research on the competencies required of non-Indigenous orga-nizations interacting with local Aboriginal communities. Given the variety of Aboriginal cultural groupings an organization may relate with, it would be more prudent to define a methodology for the relevant intercultural competencies for a given group than to develop a single framework.ConclusionEconomic and social inclusion of Aboriginal Australians will occur to the extent that a community’s cultural, political, eco-nomic, and social priorities are part of day-to-day decision making and that these priorities support (1) balancing change with cultural continuity, (2) self-determination of meaning, and (3) notions of prosperity and successful societies. Although organizations cannot address these issues in isolation, a social inclusion approach, as illustrated by the case of RTIO presented in this chapter, enables positive community relations, which have cascading economic effects for both the organization as well as the development and support of Indigenous businesses (see Brereton, 2002; Harvey & Brereton, 2005; Humphreys, 2000, 2001). Focusing on doing right is one way business can contri-bute to the cultural well-being of the Australian Aboriginal people.ReferencesAppo, D., & Härtel, C. E. J. (2003). Questioning management paradigms that deal with Aboriginal development programs in Australia. Asia Pacific Journal of Human Resources, 41(1), 36–50.Appo, D., & Härtel, C. E. J. (2005). On the pathogenicity of culture: Questioning the rationality of “development” programs for per-petually dysfunctional Aboriginal groups. Cross-cultural Manage-ment: An International Journal, 12(1), 4–30.Diversity at Work : The Practice of Inclusion, edited by Bernardo M. Ferdman, John Wiley & Sons, Incorporated, 2013. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/iupui-ebooks/detail.action?docID=1568418.Created from iupui-ebooks on 2023-09-20 00:45:27.Copyright © 2013. John Wiley & Sons, Incorporated. All rights reserved.

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