diversity journal sep/oct 2004

BMO Financial Group is breaking down barriers for disabled employeesTHIS ISSUE:

Bill Ford,

Chairman and CEO,

Ford Motor Company

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Bill Fordis our Leaderof the Year!FORD SHARES HOW HIS BACK-TO-BASICS STRATEGY IS DRIVING RESULTS

ANNOUNCING OUR 2004 CEODIVERSITY LEADERSHIP AWARD WINNERS

ON THE FRONTLINES: A VISIT WITH STARWOOD HOTELS’ ANA MOLLINEDO

Bill Fordis our Leaderof the Year!FORD SHARES HOW HIS BACK-TO-BASICS STRATEGY IS DRIVING RESULTS

ANNOUNCING OUR 2004 CEODIVERSITY LEADERSHIP AWARD WINNERS

ON THE FRONTLINES: A VISIT WITH STARWOOD HOTELS’ ANA MOLLINEDO

This is not just what we believe, it’s who we are. It’s what’s imprinted in our 100 years of history. Like Henry Ford once said, “The greatest thing we can produce is character.” That’s why we must strive to create a culture that values and respects diversity. After all, different ways of thinking is what makes the world as beautiful as it is.

Embrace your differences and make your own mark.

Profiles in Diversity Journal September/October 2004 1

PPUUBBLLIISSHHEERR

James R. Rector

MANAGING EDITOR

Wendy A. Hoke

CREATIVE DIRECTOR

David Potokar

CONTRIBUTING EDITOR

Laurie Fumic

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Commentaries or questions should be addressed to:

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ISSN 1537-2102

The current issue of Profiles in Diversity Journal is one to hang onto foryears to come. We’ve packed this issue with knowledge and insights fromsome of today’s leading CEOs.

We’re proud to introduce our first-ever Leader of the Year. Bill Ford isbreaking the mold when it comes to leading the automotive industry anddiversity and inclusion are a big part of his success. In fact, we learned thatthese are critical elements of his personal philosophy on leadership. Readmore about Ford’s impact at Ford Motor Co. in our cover story on page 10.

Much of this issue is devoted to recognizing the 2004 Diversity Best

Practices CEOs of the Year. We’ve packaged a lot of information about theirleadership style, influences, career path, diversity challenges and successesin our story, which begins on page 30.

She may not be a CEO—yet—but Ana Mollinedo, vice president of diver-sity, communications and community affairs for Starwood Hotels and

Resorts, is leading this noted hotel chain through global diversity efforts thatare felt from the C-suite to the guest suite. Learn what drives her to succeedand how she hopes to give back to those who helped her along her journeyon page 22.

Hispanics are the largest minority population and the fastest-growinggroup of Internet users. Collectively they represent $6 billion in purchasingpower annually. So what are you doing to reach this influential market? Ifyou’re not actively addressing this segment, you could be losing opportuni-ties and business. Learn how to reach this market on page 60.

BMO Financial Group, based in Toronto, is creating a new corporate land-scape that is equitable and accommodating to persons with disabilities. Andits efforts are working to attract and retain top talent at every opportunity.Learn how it is breaking down the barriers to those with disabilities onpage 56.

Once again we present groundbreaking research from Catalyst; thismonth’s article discusses workplace flexibility. Employees today are strivingfor improved quality and effectiveness, both in their work and their personallives. Did you know that when you help them achieve these goals, employ-ers benefit as well? Read how on page 52.

As always, we welcome your comments, suggestions and feedback. Letus know how we’re doing by e-mailing me at [email protected].

From the editor of Profiles in Diversity Journalpointofview

Wendy A. HokeManaging Editor

C o n t e n t sTable of

PG56

PG10

Cover Story

10 Bill Ford is our Leader of the Year!Ford Motor CompanyBy Wendy A. Hoke

Features

22 Journey to the FrontlinesStarwood Hotels & ResortsA visit with Ana MollinedoBy Wendy A. Hoke

Research52 Workplace flexibility

CatalystMaximizing individual and organizational effectiveness

56 BMO’s People StrategyBMO Financial GroupForging the link between diversity and business objectives

PG22

2 Profiles in Diversity Journal September/October 2004

My name is Cheryl Renz. I’ve been an Abbott employee for five years.

You are passionate about what you do—an inspiration to those around you. You want to make a difference in your world. You want the freedom to think, to dream, to see your ideas realized. And you look forward to meeting new and exciting challenges every day.

At Abbott Laboratories, you will find an environment that inspires a level of achievement seldom found in today’s workplace. An environment thatrecognizes and rewards individual contributions and discoveries. An environmentwhere you can work alongside the foremost authorities in your chosen field.

Experience the inspiration that comes from having small-company freedom with big-company resources.

www.abbott.com

I ama classically trained pianist.

I enjoy practicing with my children.

And I manage a global drugdevelopment team that formulates

and analyzes a drug’s lifecycle with the goal of helping people

live healthier lives.

Departments

6 Diversity At-A-GlanceAwards, recognitions and news from companies

Diversity Best Practices30 CEO Initiatives

A conversation with the 2004 CEOs of the Year


PG30

Sales / Marketing60 Reaching Hispanic markets

Is your company targeting this growing market segment?

64 Global PerspectivesExaggerated productivityNew study shows companies are under-performing

Coming in the next issue …

Our third annual Women of Initiative Issue!

• The bar is raised once again as PDJ salutes the top women business leaders in 2004. Among this year’s honorees are women from AOL, Bausch & Lomb, Cisco Systems, DaimlerChrysler, Export-Import Bank of the U.S., KeyBank, Learning Leaders, Lockheed Martin, National City Bank, Starbucks, Wal-Mart and many more!

• In the heavily male-dominated oil industry, Shell Oil has been honored for its efforts in recognizing the achievements of women.

• Catalyst reports on tackling resistance toimplementing diversity efforts.

• United States Postal Service women’s 30 year celebration.

PG10

PG56

C o n t e n t sTable of

Diversity At-A-Glance

Chubb receives Corporate Diversity Award from International Institute

of New Jersey

The Chubb Group of Insurance Companies was namedthe first recipient of the Corporate Diversity Award bythe International Institute of New Jersey at its AmericanDream Gala Celebration at the Marriott Glenpointe inTeaneck, NJ. The award was presented to Chubb inrecognition of its commitment to recruiting and promoting individuals from many different ethnic andsocioeconomic groups.

“It is only fitting that we celebrate those who havehelped enrich our state and our nation, as well as thosewho work to keep our country open to new ideas, newcultures and the newest Americans,” says NicholasMontalto, the institute’s president.

Chubb’s commitment to diversity is reflected in severalways throughout the organization, says Regina Blair,Chubb's diversity manager. “Our people contribute theirdiverse backgrounds and skills to building a greater understanding of our markets and customers around the world.”


Georgia Tech retention program receives national honors

Georgia Tech’s Challenge Program is one of four col-lege retention programs to receive the 2004 Lee Noeland Randi Levitz Retention Excellence Award. “Thehonor is a reaffirmation of what we do and a recognitionthat we play a critical role in the lives of our students,”says S. Gordon Moore, director of Georgia Tech’s OMEDEducational Services, which runs the ChallengeProgram. The award is given by Noel-Levitz, a highereducation consulting firm, and is being presented at thisyear’s National Conference on Student Retention thisweek in New Orleans.

Sloan Foundation funds New AAAS Center for AdvancingScience and Engineering Capacity

The Alfred P. Sloan Foundation has awarded AAAS athree-year, $400,000 grant to help establish a new Centerfor Advancing Science and Engineering Capacity inWashington, D.C. The Center will provide consultingservices to individual universities and colleges seeking toincrease the participation of U.S. students, especiallywomen and underrepresented minorities, in science andengineering careers.

Daryl Chubin, former senior vice president forresearch, policy & programs at the National ActionCouncil for Minorities in Engineering, will direct the newCenter. With a distinguished record of scholarship, poli-cy analysis and advocacy, Chubin has emerged as anational expert on expanding and diversifying the sci-ence and engineering workforce. He has served in theWhite House Office of Science and Technology Policyand has published eight books and numerous policyreports, articles and commentaries.

Researchers have found that if minorities and womenparticipate in the science and engineering workforce innumbers proportionate to their presence in the generalpopulation, the technical workforce will be more diversein composition and robust in talent for decades to come.

“By pulling together what we now know and setting aresearch agenda for the future, this Center will surelyhelp multiply the impact of the many efforts going onaround the country to increase participation in science bymembers of under-represented groups,” says Alan I.Leshner, AAAS’s chief executive officer and executivepublisher of the journal Science.

PricewaterhouseCoopers LLP announced recently thatChris Simmons has assumed the position of chief diver-sity officer. In this role, Mr. Simmons will become a mem-ber of the office of the chairman and the firm’s core exec-utive leadership team. Simmons, 46, succeeds ToniRiccardi, who retired in June after serving in this role forthe past three years.

As part of its strategy to ingrain diversity and work/lifeflexibility into the firm’s culture, PricewaterhouseCoopersalso appointed three partners to leadership positions with-in PwC’s lines of service. Patty Tilton in Advisory, JeanHobby in Assurance and Dina Pyron in Tax will each leaddiversity and work/life efforts as members of their respective leadership teams. They will work closely with Simmons.

PricewaterhouseCoopers LLP names Chris Simmons chief diversity officer


Thurmond B. Woodard, Vice President of Global Diversity, Chief Ethics Officer and one of

corporate America’s leading diversity experts. He helps drive Dell’s vision of barrier-free

opportunity by: creating a winning culture, building direct customer and supplier relationships in the

global marketplace, and equipping the community for the digital world. What’s the result? Dell is

the computing technology supplier of choice for customers across the United States. So, what’s

inside Dell? People like Thurmond who deliver superior quality, efficiency and value in all they do.

To find out more about Dell Global Diversity, call us at 1-888-741-1633 or visit www.dell.com/diversity.

Dell, Inc. cannot be held responsible for errors in typography or photography. Dell is an AA/EO employer. Intel, Intel Inside, the Intel Inside Logo and Pentium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the

United States or other countries. Dell and the Dell logo are registered trademarks of Dell, Inc. ©2004 Dell, Inc. All Rights Reserved.

Direct relationships. Easy as

What’s inside Dell?

Dell Global Diversity

Thurmond B. Woodard, Vice President of Global Diversity and Chief Ethics Officer, stays connected to customers, suppliers and his team

using the performance and mobility of his Dell Latitude™ Notebook with the Mobile Intel® Pentium® 4 Processor-M.

To find out more about Dell Global Diversity, call us at 1-888-741-1633 or visit www.dell.com/diversity.


Public Relations Society of America launches national diversity initiative

Diversity is one of the foremost issues facing corporateAmerica today. In response, the Public Relations Society ofAmerica (PRSA) has launched Advancing Diversity, a nation-al initiative that unites various elements to promote multi-culturalism in both the public relations industry and busi-ness community.

“No other national communications, media or marketingorganization has committed the resources, the expertiseand the leadership that PRSA has provided to make diversi-ty a substantive part of the organization’s present andfuture,” says Rosanna Fiske, APR, chair of PRSA’s NationalDiversity Committee.

“Advancing Diversity firmly positions PRSA as the leadingorganization providing professional development, careeropportunities and networking for diverse professionals, forprofessionals who want to communicate with diverse audi-ences and for professionals who strongly want to changetheir organizations through valuing and managing diversity,”she says.


PDJ

Pitney Bowes Chairman and CEOreceives Human Capital Award

Pitney Bowes Inc. (NYSE: PBI) has announced that itsChairman and CEO Michael J. Critelli has been named the2004 recipient of the Human Capital Advantage Award byHunt-Scanlon Advisors, a market research firm tracking thehuman capital and executive recruiting industries.

This annual award is designed to recognize a leading chiefexecutive who has displayed excellence in human capital management while increasing shareholder value. Critelli accept-ed the award at Hunt-Scanlon's “Human Capital AdvantageForum: Sustaining Momentum” in New York in September.

Critelli has been chairman and CEO of Pitney Bowessince 1997, and holds four U.S. patents for mailing technol-ogy. Under his leadership, Pitney Bowes has enhanced itscore business and introduced new products, services andsolutions that have grown the company’s share of the $250billion global mail and document management markets.

“We know that our success—past, present and future—is driven by the wealth of talented people we have at PitneyBowes,” says Critelli.

“Michael Critelli has a long commitment of recognizingthat human capital is critical to driving growth and success,”says Scott A. Scanlon, chairman and CEO of Hunt-Scanlon.“His approach to attracting, retaining and developing talenthas created a human capital culture that is loyal, motivatedand dedicated. We could not have selected a more idealaward recipient this year.”

Most people at Excellus BlueCross BlueShield focus on the wellness of ourcustomers. But some of us direct our attention to the core principles of ahealthy company. Open opportunity and inclusive programs. We know thatdiversity in our offices means more understanding and compassion in thecommunities we serve. Learn more about our diversity program by contact-ing Marie Philippe at [email protected].

Promotinghealthy

workplaces.Starting with

our own.

Vi ta l . Valuable . Every day.SM

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Ford Motor Company

“I truly believe there is no conflictbetween doing the right thing andmaking money. In fact, doing theright thing is the best way for a

company to be profitable over time.”

— Bill Ford, Chairman and CEO, Ford Motor Company

LLEEAADDEERR OOBill Ford,Chairman and CEO,Ford Motor Company

Ford Motor Company


OOUURR 22000044 OOFF TTHHEE YYEEAARR!!

BILL FORD IS DOING IT RIGHT AND DRIVING RESULTS AT

FORD MOTOR COMPANY


illiam Clay Ford Jr. tookon the role of head ofthe Ford family in 2001claiming that he bled

Ford blue. In his few short years at the helm he has takenFord Motor Company in a new direction by calling on thefoundation of people and relationships that had made thecompany a leader in the automotive industry for decades.

He has certainly turned the heads of Wall Street withreports of Ford’s earnings exceeding analyst expectations.His early management shakeups caused many to raise theireyebrows. And he’s attracted attention—both positive andnegative—for his statements in support of the environmentand the need to build more fuel-efficient cars and trucks,even as Ford is a leading manufacturer of SUV’s and trucksin the sight of environmentalists.

But with Zen-like intuition, he is gaining the confidence,trust and loyalty of those who comprise the Ford family andcausing the automotive and business industry to sit up andtake notice.

Profiles in Diversity Journal had the chance to learn moreabout Ford, his leadership style, his passion for family and hisplans for this Fortune 4 company.

Q: In many of your public speeches and comments to

both Ford employees and to the business press, you refer

frequently to the Ford family: “Our greatest asset is the

extended Ford family of employees around the world.”

Can you describe what you mean by family and how you

came to view Ford Motor Company as a family?

A: “Obviously, I feel a sense of family quite literally. Butmany of our employees, customers, dealers and others tellme they feel an intensely personal connection with FordMotor Company. Those are the people who make up ourextended family. The feeling of family at Ford is real. It setsus apart and I believe it is a real competitive advantage.We’re not just another nameless, faceless corporation.

“Our research shows that because of the family involve-ment in our company, people are more likely to believe thatwe are committed to our future, that we produce high-qual-ity vehicles, that we care about our customers and employ-ees and are committed to making their world a better place.Our family connection makes millions of people around theworld feel good about us. We work hard to live up to thoseexpectations—and exceed them.”

Q: Why do people feel so connected to Ford? What

specifically is it about the company that promotes the

family feeling?

A: “I think it starts with my great-grandfather Henry Fordand our long history of family involvement in the company.People know who we are and the contributions we’ve madeto the world. There’s also a strong emotional connection toour products—they become a part of our lives. We have realfamily ties throughout our business, too. Many of our deal-erships have been handed down from generation to genera-

Ford Motor Company

WW

BILL FORD IS LEADING THECOMPANY THAT BEARS HIS NAME INTO THE

21ST CENTURY

By including the diverse Ford family of employees, suppliers and vendors,

Ford Motor Company is rediscovering its focus—good people and good products

Interview by Wendy A. Hoke

BILL FORD IS LEADING THECOMPANY THAT BEARS HIS NAME INTO THE

21ST CENTURY

By including the diverse Ford family of employees, suppliers and vendors,

Ford Motor Company is rediscovering its focus—good people and good products

Interview by Wendy A. Hoke


tion. And we have many third-, fourth- and even fifth-gener-ation employees from the same family working for us.”

Q: When you became chairman and CEO, some said

that working at Ford wasn’t as fun as it used to be. How

have you gone about correcting that feeling—not only

for employees, but for your extended family of suppli-

ers, vendors and dealers?

A: “Like a lot of companies, we were distracted by thehype of the dot-com boom. We lost our focus on the thingsthat had made us a great company—our products and ourpeople. Because of that our quality suffered, employeemorale went down and we damaged relationships with ourdealers and suppliers.

“Two-and-a-half years ago, we refocused our efforts onimproving our core automotive and automotive financingbusinesses. Along with our products, quality and productiv-ity, we concentrated on improving our relationships—notonly with our employees, dealers and suppliers, but alsowith the communities where we do business. We want allof our people to know that they are valued members of theextended Ford family. This is the strategy that continues toguide us today, and we plan to stick with it.

“Since we launched this effort we’ve seen a number ofimprovements in quality, market share, costs and profits, andalso in our relationships with employees, dealers and suppliers.”

Q: Given that these relationships are the foundation

of your strategic pyramid, how have you gone about

mending and/or solidifying those relationships? What

have you done for suppliers and dealers?

A: “Employees are more involved now in every aspect ofour company. We are focusing on the use of work teams toidentify problems and drive results. These teams involveour suppliers. When people are more empowered andmore involved, they feel better about the company andabout their personal contribution to it.

“We’re also spending more time talking and listening toall our people, including our dealers. We’re using surveys,focus groups and informal meetings to find out what’s onpeople’s minds. And we’re putting more emphasis on com-munications.

“We’re in a tough, competitive business, these are toughtimes and the work is hard. But we’re trying to emphasizeflexibility, inclusion, tolerance and respect. We want tocreate an environment that makes people excited aboutcoming to work each day. There still is work to be done, butwe are on the right path.

Q: In talking to other company CEOs and in

reading articles about you in the mainstream press,

something about you has captured the awe of the

public. Your name is on the top of everyone’s “must-

have CEO interview” list. How would you describe your

leadership style? What have the other press and

industry leaders latched on to?

Ford Motor Company

“We want all of our people to know

that they are valued employees of the

extended Ford family. ”

— Bill Ford,

Chairman and CEO,

Ford Motor Company


A: “I believe in surrounding yourself with strong people,having honest discussions, building consensus and work-ing together to execute your plan. I think people respond tothe fact that I’m motivated by the long-term interests ofmy company, the communities where we do business andthe world in which we operate. I truly believe there is noconflict between doing the right thing and making money.In fact, doing the right thing is the best way for a companyto be profitable over time.”

Q: Who has shaped your thinking as a business

leader and why?

A: “My great-grandfather, Henry Ford, for his vision andpassion; my uncle, Henry Ford II, for his business acumen,which turned the company around after World War II; and,of course, William Clay Ford Sr., who is an outstandingbusinessman, community leader and father.”

Q: Your great-grandfather set the wheels in motion

for diversity at Ford 101 years ago. What does diversi-

ty and inclusion mean to you personally, and as CEO of

a Fortune 500 company?

A: “Many people don’t realize that Henry Ford was adiversity pioneer. By as early as 1916, he had hired peoplewho represented 62 nationalities, as well as more than 900people with disabilities. His $5 daily wage, which wasunprecedented at the time, is often credited with helpingto create the black middle class.

“We’ve tried to honor this legacy by fostering a diverseand inclusive work environment at Ford. We cultivate the

strengths of people who have different experiences, ideas,backgrounds, perspectives and life responsibilities. Thishelps us develop a more diverse range of products. In theend, our company is more successful and all our employ-ees benefit.

“Though we’re making progress, I know we can do bet-ter. We have aggressive programs in place to addressissues, including retention. But as I’ve always said, diversi-ty is a journey, and we’re still a ways from our destination.

“On a more personal level, I have a strong belief in diversity and inclusion. People with experiences and view-points different from ours help us see the world in new anddifferent ways. That’s something we all should value, personally as well as professionally.”

Q: Most company leaders will tell you that diversity

drives business results. Ford’s first quarter earnings this

year were $1.9 billion, twice as much as expected and

far more than GM’s $1.3 billion. What role did diversity

and worklife play in the bottom line earnings?

A: “I’d say diversity and worklife play a critical role in ourearnings, because we would not achieve the results that wedo without the contributions of every employee.

“We are, without doubt, an industry leader in diversity andworklife. I hear that our programs often serve as a bench-mark for other companies. We are proud of our third placefinish in the Top 50 Companies for Diversity list, published byDiversityInc. Magazine. But we know we can do better. Wewere first place last year, and we intend to get there again.”

Ford Motor Company

“If we want to foster a diverseand an inclusive environment here

at Ford, then we had better understand there are

many ways to do a job.”

— Bill Ford, Chairman and CEO,

Ford Motor Company

“If we want to foster a diverseand an inclusive environment here

at Ford, then we had better understand there are

many ways to do a job.”


Ford Motor Company

Q: Although you have been criticized and second-

guessed by analysts and the media, you appear confi-

dent in the direction you and your team have set for

the company. Where does this confidence come from?

What is your vision for Ford in five years?

A: “We want to be the best automotive company in theworld. We’ll do that by building great products, a strongbusiness and a better world.

“In the last two-and-a-half years we’ve stabilized ourbusiness and gotten it back on a sound operational andfinancial foundation. We’re never going to abandon ourintense focus on the fundamentals, but we also want todifferentiate ourselves and grow our business.

“We’ve got great strengths we can leverage to do that.For example, we want to lead in new technologies such ashybrid-electric, hydrogen and fuel cell powered vehicles.We’ve just introduced the world’s first hybrid SUV, EscapeHybrid. It’s the world’s cleanest and most fuel-efficientSUV, and it’s getting rave reviews. We’ve also got thestrongest portfolio of automotive brands in the world. Andwe want to leverage the advantage we have as a familybased company, and the strength that our people give us.

“The people of Ford have helped us reached this point.The key now is to build on the basics and keep themomentum going. I am confident we can do it and I’mexcited about the possibilities.”

Q: You seem truly respectful of Ford’s many employ-

ees, describing with great pride how people come up to

you to say their grandfather worked for your grandfather,

or their uncle or aunt works at Ford. You’ve said it is the

people who get you up in the morning. Your great-grand-

father, like few others in our history, transformed America.

What do you feel is your role in carrying on the Ford lega-

cy, and do you ever feel pressured by that legacy?

A: “People are passionate about Ford—not only ouremployees, but our customers. We saw it during the centennial, when a group of Model T owners drove here

from California to join us for our birthday. Not to mentionthe man who drove his ‘52 Ford here from Brazil. Or themountains of fan letters we got, including those from people who named their babies ‘Ford’ or ‘Lincoln.’

“That kind of passion is an asset. It is a tribute to thework of my great-grandfather and the company leaderswho followed him. My challenge is not only to live up totheir legacy, but also to the expectations of our employeesand customers. Obviously, that’s a big challenge, but it’sone that I welcome and look forward to meeting.”

Q: What does corporate citizenship mean to you?

How does Ford engage in corporate citizenship and

how does it reflect the company’s diversity message?

A: “There is a reason that my vision for the future includesa better world. Corporations have a responsibility to giveback to the communities where they do business and tohelp make the world a better place. It also makes good busi-ness sense to do so.

“Thousands of Fordemployees volunteertime to company-sponsored commu-nity projects eachyear. Ford MotorCompany Fund, madepossible by our profits, con-tributed more than $77 million to avariety of organizations and, combinedwith corporate giving by Ford MotorCompany, total grants were more than $85million. Initiatives and institutions that pro-mote education, especially in math, science,engineering and manufacturing, receivedthe greatest portion of those funds. We givea strong preference to organizations thatsupport and promote diversity in educa-tion.”

“Diversity is ajourney andwe’re still a

ways from ourdestination.”

— Bill Ford,

Chairman and CEO,

Ford Motor Company


“Diversity is ajourney andwe’re still a

ways from ourdestination.”

— Bill Ford,

Chairman and CEO,

Ford Motor Company

Q: You have a department known as Diversity and

Worklife. Certainly, finding worklife balance is something

for which we all strive. How do you lead by example in the

area of worklife? Is it even possible for a CEO to achieve?

A: “To be honest, it’s difficult. I don’t know a CEO whowould tell you otherwise. I do believe it’s important to maintaina balance in life. I spend a great deal of time with my family,and attend as many school and community events as possiblewith my wife and children. I am a hands-on father. I also lovesports and try to carve out time every day to exercise.

“In some companies, no one is willing to leave for the dayuntil the boss has left, no matter how late the hour. That’stime and effort that could be better spent reconnecting withfamily and friends, or catching up on some hobby or activity. I want all my employees to understand that facetime isn’t important— only results.

“I’ve had many people ask me why we link diversity andworklife. To me, they are part of the same philosophy. If wewant to foster a diverse and an inclusive environment hereat Ford, then we had better understand there are manyways to do a job. If we don’t approach our work flexibly, ifwe place too many rigid constraints and demands on peo-ple, then we simply won’t attract the best candidates to ourcompany. And even if we are lucky enough to get those tal-ented people in the door, we won’t get their best resultsand they won’t be willing to stay for very long.”

Q: Your love of Ford comes through loud and clear in

your statements about employees and, of course, your

love of the product. Is it possible to be a member of the

Ford family and NOT be passionate about cars? What is

your favorite car?

A: “I don’t think it is possible to be a Ford and not have alove affair with cars. It’s in our blood. And for the record, Ihappen to be a Mustang fanatic. A Mustang was the firstcar I ever owned and I’ve had one ever since. Mustanggives you performance and fun, plus it looks cool. That’s agreat combination.”

Q: Many would argue that Ford is poised on the edge

of redefining what it means to be part of the automo-

tive industry’s Big Three. Do you think this is a defining

moment for Ford?

A: “I do. But I alsowould say that it is adefining moment forthe entire automotiveindustry. The worldeconomy and intenseglobal competition havemade this a much

different and tougher business than it was a generationago. We have to invest in new technologies and find waysto build cars and trucks that have all the features our cus-tomers want as well as less impact on the environment weall share. At the same time, we must continually improveour quality, our efficiency and our cost structure. Thesearen’t just challenges for Ford, but challenges for us all.

“The companies that will succeed will accomplish allthese goals, and they will do it smarter, better and quickerthan the competition. Do we plan to be one of those companies? You bet we do.”

Q: You’ve told Ford employees that they can expect

leadership, commitment, sharper and clear focus, hon-

esty, trust and, most importantly, an eagerness to listen

to them. And you expect the same in return. How does

Ford Motor Company deliver its diversity message and

initiatives to a global workforce? And how do you “hear”

and respond to the concerns of a global workforce?

A: Our Global Executive Council on Diversity (ECD) setsthe tone and the strategies. It is made up of senior leaders,including vice presidents. So you can see that our commit-ment to diversity and worklife quite literally comes from thetop. Our strategies and initiatives are then implemented bythe Diversity and Worklife Planning Office.

“Both the ECD and the Diversity Office have regular con-tact with employees through the Local Diversity Councils,which are in place and very active at Ford locations through-out the world. We also have 10 Employee ResourceGroups, which are made up of employees who share similar ethnicities, backgrounds and experiences.

“We communicate to employees through our internal communications network, through the ERGs and LCDs, andthrough our annual Diversity and Worklife Summit, which isheld in the fall at Ford offices and plants everywhere. It’s agood opportunity to step away from our daily work andfocus on the value of building a diverse and inclusive culture. Employees from all over the world tell me that it’stime well spent.

“Last year we also began a committee championed byJim Padilla, our Chief Operating Officer, that’s called theMulti-Cultural Alliance. Representatives from our major divi-sions throughout North America join forces to make certainthat we’re pursuing diversity in hiring, dealer development, credit for customers, philanthropy, media outreach andother areas. We’ve made a great deal of progress therealready, and I’m expecting more.”

The Ford Fund is building community

Hundreds of not-for-profit partners each year receive support from the philanthropic arm of Ford, the Ford Motor

Ford Motor Company


Company Fund.Started by Henry Ford II in 1949, Ford Motor Company

Fund was created precisely because of the cyclical nature ofthe auto industry and the economy. It was thought that a sep-arate organization—largely funded in advance by Ford—coulddo a better job of providing financial stability to communityorganizations, and thus better serve their long-term needs.

The value of this principle has been proven the past fewyears, during which charitable contributions in the UnitedStates generally have declined and the demand for supporthas increased. Because of Ford Fund, Ford Motor Companycontributed $77.5 million to a variety of organizations in2003. Combined with corporate giving by Ford MotorCompany, total grants were $86.6 million.

Education is the primary emphasis of Fund grants, saysSandy Ulsh, vice president, Ford Motor Company Fund. TheFund provides a majority of its support to organizations andinstitutions along the educational “pipeline” —–the path oflearning that leads from preschool and elementary school tohigh school, college and beyond.

Special preference is given to educational programs thatpromote diversity, including those that encourage minoritystudents to pursue careers in math, science, engineering

and manufacturing. Summit celebrates

diversity and worklifeFor five consecutive years, thousands of Ford employees

throughout the world have participated in a weeklong seriesof events focusing on diversity, worklife and inclusion.

During the Diversity and Worklife Summit, activities areheld at Ford locations in nearly every country and communi-ty where the company does business. These include every-thing from educational presentations and potluck lunches tocultural awareness exercises, team-building activities, andcommunity service and stress reduction techniques.

The week is capped by a reward and recognition eventthat honors Ford employees and managers from through-out the world who are diversity and worklife leaders. This

Bill Ford poses with

one of the Model-T Fords

that rolled off the assembly line in 1909

Employees of the Ford

Motor Company walk

outside the Dearborn

Assembly plant within

the Rouge complex

in 1955


“I want all my employees to

understand that facetime isn’t important—

only results.”


Ford Motor Company

Ford Motor Company

year’s summit took place September 9-22.Engaging employees

in the Ford familyTo promote diversity and inclusion, Ford Motor Company

supports the work of two employee networks: the FordEmployee Resource Groups (ERGs) and Local DiversityCouncils (LDCs).

The 10 ERGs currently active at Ford each representemployees of a common background or interest. These are:the Ford Employee African Ancestry Network (FAAN); theFord Asian Indian Association (FAIA); the Ford ChineseAssociation (FCA); the Ford Interfaith Network (FIN); theFord Parenting Network (FPN); Ford Gay, Lesbian, Bisexualor Transgender Employees (GLOBE); the Hispanic NetworkGroup (HNG); the Middle Eastern Community (MEC); theProfessional Women’s Network (PWN); and FordEmployees Dealing with disAbilities (FEDA).

The ERGs work closely with Ford to recruit new employees, assist with product development and targeted marketing campaigns and engage in an activementoring program.

LDCs exist within nearly every Ford organization, as wellas within many plants and offices. The LDCs are groups ofemployees who plan diversity and worklife-related events,both educational and recreational, for their colleagues. All events are intended to support diversity, inclusion and teamwork.

Many of the ERGs and LDCs hold charity events andfundraisers, and donate hundreds of volunteer hours to thecommunity each year.

“The ERGs and LDCs are important partners in our effortsto foster an environment at Ford that is inclusive, diverseand respectful,” says Joe Laymon, group vice president,Corporate Human Resources and Labor Affairs. “This helpsto strengthen the relationship between Ford and all itsemployees.”

Encouraging entrepreneurs Ford Motor Company has long been an industry leader in

helping to build diverse communities through minorityentrepreneurship. By providing training, financial assistanceand ongoing support, Ford has helped many people realizethe dream of owning a business.

Ford currently leads U.S. automakers in the percentage ofminority-owned or operated dealerships, and has moreAfrican American auto dealers than any other manufacturer,counting 209 (40 percent) of the industry’s 529 AfricanAmerican dealers.

Ford also is a leader in diverse supplier development. In2003, Ford spent $3.2 billion on products and services purchased from nearly 300 minority-owned companies,earning Ford a spot on the “Billion Dollar Roundtable”—asmall group of companies that have spent a billion dollars ormore with diverse suppliers every year.

“We consider these businesses critical to our legacy andfundamental to our overall mission: to build better communities and a better quality of life for generations tocome,” says Ray Jensen, director, Supplier DiversityDevelopment. “It’s not only the right thing to do. It’s alsogood for our business.”

Family Service and LearningCenters are supporting families

The Ford Motor Company Family Service and LearningCenter (FSLC) program is one of the most comprehensiveunion-management partnerships ever negotiated to meetthe needs of working families, individuals and retirees, and

“My challenge is not only to live up to (my family’s) legacy, but also to theexpectations of our employeesand customers.”


Ford Motor Company

“My challenge is not only to live up to (my family’s) legacy, but also to theexpectations of our employeesand customers.”


Ford Motor Company


their communities.A result of the 1999 negotiations between Ford and the

UAW, the FSLC ultimately will bring services and programsto more than 29 locations throughout the United Stateswhere Ford has a large concentration of employees.

Services generally fall into three categories:• Family and Education Services—including family

services, family and adult education programs, pre-teen and teen programs, tutoring, personal development and other health and wellness activities.

• Early Childhood Education Services—including dedicated “best-in-class” childcare centers for infants through kindergartners. In addition, local networks of high-quality childcare providers will be established as needed to provide 24-hour emergency backup childcare, and to enhance the overall quality and accessibility of childcare in our communities.

• Community Service Education and Outreach—supporting individual and family activities to encourage community volunteerism, identify volunteer opportunities and offer training to volunteers.

Through the Family Service and Learning Centers, Fordalso offers a convenience/concierge service that enables allactive Ford and Visteon employees and spouses to get fastadvice and help with tasks that cut into both work and per-sonal time. The service offers assistance in areas ranging

from reservations for dining and entertainment and findingrecreational activities, to searches for special types of merchandise and services.

Building loyalty among employeesFord Motor Company prides itself on having a great value

proposition for its employees—a strong workplace, goodbenefits and programs, low attrition and employee loyalty.

Over the past two years, the company also has placed anew emphasis on building an inclusive environment that isfocused on diversity, flexibility and respect.

The company activelyworks to identify issues andhas developed task forces totake a deeper dive into issuesthat impact employees most,including retention.

“Once employees are inthe door, it is our goal tokeep them,” says RosalindCox, director, Diversity,Worklife, and Peer Review.“Apparently, others outsideour company agree with thework we have done. We’vereceived many awards as anemployer of choice.” Rosalind Cox, Director,

Diversity, Worklife, and

Peer Review


Ford Motor Company

Partnering in these efforts on inclusion is the Multi-Cultural Alliance, a high-level committee led by Jim Padilla,chief operating officer, Ford Motor Company, and chairman,Automotive Operations, that is exploring ways that Ford can become the premiere company of choice forproducts, services, partnerships and employment for allcultural groups.

Leveraging all of these actions will ultimately have a positive impact on all employees, resulting in a loyal andcommitted workforce, adds Cox.

“We are working hard to develop a culture whereemployees feel they can maximize their professional andpersonal growth,” she says. “Such a culture encouragesemployee engagement and employee satisfaction.”

Honoring our success: Diversity and Worklife Awards

Over the years, Ford has received numerous awards inrecognition of its diversity and worklife efforts includingDiversityInc.’s Top 50 Companies For Diversity (rated number 3) and Working Mother magazine’s 100 BestCompanies For Working Mothers. Black Professionals andHispanic Magazine have rated Ford as a Top 100 Companyfor African-Americans and Hispanics. This further solidifiesFord Motor Company’s status as an employer of choice.

Ford Motor Company

PDJ

“Corporations have a

responsibility to give back to

the community where they do

business and to help make the

world a better place.”

— Bill Ford,

Chairman and CEO,

Ford Motor Company

“Corporations have a

responsibility to give back to

the community where they do

business and to help make the

world a better place.”

— Bill Ford,

Chairman and CEO,

Ford Motor Company



Journey to the Frontlines:

A visit with Starwood Hotels and Resort’s

Ana Mollinedo

Leading the travel and leisure industry by mirroring the world market

By Wendy A. Hoke

Journey to the Frontlines:

A visit with Starwood Hotels and Resort’s

Ana Mollinedo

Leading the travel and leisure industry by mirroring the world market

By Wendy A. Hoke

Starwood Hotels&

Resorts

A na Mollinedo is no-nonsense whenit comes to diversity and inclusion.Not only does she make it her jobto show the business imperativefor embracing diversity, but shealso lives and breathes it as aCuban-American woman.

For the past two years,Mollinedo has made it her focus toexpand Starwood Hotels’ globaldiversity and inclusion program asits vice president of diversity, com-munication and community affairs.Starwood, which has only been inbusiness for six years but encom-passes the Sheraton, W, Westin,Four Seasons, St. Regis and TheLuxury Connection brands, is a terrific match for Mollinedo’s skills.

“There are companies that thinkthey know diversity, but don’t andthere are those that know theyneed help and go after it,” shesays from the Sheraton NY Hoteland Towers at 53rd Street andSeventh Avenue, in MidtownManhattan.

Although she’s not a native NewYorker, Mollinedo is often mistaken


Feature Starwood Hotels & Resorts

Starwood Hotels&

Resorts

Ana Mollinedo,

Vice President,

Diversity, Communication and Community Affairs,

Starwood Hotels & Resorts

Photo:Jennifer G

raylock


for one, a product of having grown upjust north of Fort Lauderdale, Fla., inwhat she jokingly calls, “the sixth bor-ough of New York.”

In her 18-year career, Mollinedo hasbrought a range of experiences thatshe now employs for Starwood.

Her first order of business is to rollup her sleeves and ask who’s here andwhat’s here. “We need to find outwhat people we need to influence,”she says.

Mollinedo started at Starwood in2002 and says she was encouragedbecause the company already recognized that diversity and inclusionneeded to be part of its core compe-tency; it just wasn’t quite sure howto build it.

Although the task can be daunting,she acknowledges that having the

support of the company’s leadershipmakes the job more manageable.

Meeting the players

With a background in corporateaffairs she was new to the hotel indus-try, so her first move was to meetthe players. She knew the diversityand inclusion imperative needed to pervade all aspects of business since80 percent of Starwood’s workforceare women or people of color.

“We’re not talking about diversity asan initiative, we’re talking about a corporate culture. We got it that weneed to mirror our workforce and thatthe world is our market. The real question is how do we tie it to ourbusiness? So when our Westin brandis trying to capture market share, top

of mind is the market, inclusive of amulticultural marketplace,” she says.

“If our properties are all takingownership for serving a multiculturalmarket, which is their market notmine, then everyone on those teamsis addressing diversity, not just myteam from corporate.”

Based in White Plains, N.Y.,Starwood’s corporate team isdesigned to serve as a resource foroperations. “Our message is, ‘This isyour market. How can we help youcreate presence, capture market shareand attract and retain talent?’ ”

In the hotel industry diversity ismore readily tied to the businessbecause of its contact with guests.“We see a plethora of diversity in ourlobby and in the folks greeting them. Ifwe don’t have an inclusive environ-ment our associates are not happy andif you check into a hotel and see anassociate who’s not happy on the job,it hits you on the spot. Our business isfeeling the pain and it’s immediate,”she says.

“What we do is very public drivenand we’ll only have a few minutes to correct the problem. In the hotel industry it’s difficult to fake it becausewe’re in the spotlight 24 hours a day.”

Mollinedo understands that her jobisn’t always going to guarantee thatshe’s well liked. “I’m asking people tothink differently, to step out of theircomfort zone. I’m asking them to lookat themselves and their biases, at whythey don’t advertise in certain marketsor why they don’t promote certain people faster. I’m asking them whatdrives them as people.

“You’re not always going to be themost liked person and you’ve got to beokay with that. In the end when youconvert them it will be appreciated.You have to keep your eye on the win-


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win,” she says.Understanding what the senior lead-

ers’ vision of success looks like is partof the initial process. “Once I get a pic-ture of that, I tell them it’s going to getuglier before it gets pretty because I’mgoing to ask you for money youhaven’t spent, resources you haven’tallocated, pull apart stuff that you puttogether before I got here and somefolks are going to be challenged.”

Her first 100 days were spent meet-ing people, understanding the processand understanding the business. Shespent a couple of weeks learning all ofthe brands by spending time with themaintenance people, the housekeep-ers and the kitchen staff.

Mollinedo’s goal is to develop adiversity structure that touches thebellmen at every hotel. Her challengewas how to deliver that message if thediversity council met at corporate oncea quarter.

Reaching people in the field

“How were we going to know whatresources the folks in the field need tobuild a better workforce, to reach outto different markets, to build differentrelationships in the community andfrom the norm if we don’t meet themwhere they are?” she says.

And so she became a road warrior,visiting the nine regional vice presi-dents. Her suggestion was to establishregional diversity councils.

“These regional vice presidents knowtheir market better than I do or anyonein corporate. I’m here to recruit them tobe a partner in the diversity function.I’ve come to them with demonstra-tions, saying here’s what your marketlooks like, here are the cultural organi-

zations in your region, here are dates ofmeetings and conferences and here’swhat your workforce looks like. Does itlook like your marketplace?”

How well has this worked? Starwoodlaunched a diversity page on its Intranetso that different regions can share bestpractices information. There’s a globaldiversity council based at corporate andMollinedo says it’s important to havethe executive management team onboard because they control the budg-ets. “We have some things on the glob-al councils that have bubbled up in aregion but are so good that we want itto be worldwide,” she says.

Each regional council is comprisedof representatives from humanresources, procurement, general man-agers, department heads (housekeep-ing and maintenance) and the like.

“I wanted them to appoint the peo-ple on the council so it’s representativeof the region and the hotels.”

Regions are given guidelines for suc-ceeding and asked questions that drivesuccess, including:

• Who owns relationships with the Hispanic Chamber of Commerce or the NAACP?

• How do you communicate to each other and other regions that you exist?

• What goals have you set up, how do you communicate those with the global council and how do youalign those with business?

Inclusion training is also tied to thebusiness. In the case of Starwood,training plays a critical role in servingthe customer. After all, in most caseswomen are making the decisions

Feature Starwood Hotels & ResortsP

hoto:Jennifer Graylock

about where families go on vacationand where they stay. “What are we doing tocapture that market because clearly in ourbusiness women are making the decisions. Isuggest that, at the next procurement meet-ing or strategic business planning meeting,they look at how many women they have atthat table.”

Starwood has built a state-of-the-art minor-ity supplier program that is tied into nationalcontracts negotiated at corporate and at eachproperty. “As a company we’re already at 8.5percent of our vendor spend with minoritybusinesses,” she says.

She credits Randall Tucker, manager ofminority supplier development, with jump-starting the program. Tucker, 27, started atStarwood two years ago and has consistent-ly taken on more responsibility, somethingthat Mollinedo looks for in employees.

“Ana works at 110 percent and expects herstaff to do the same,” Tucker says. “Shejumps in front of as many things as possible.”

Tucker has learned a number of thingsfrom Mollinedo. Among her pearls are:

• Growth hurts.• You will make mistakes and will grow

from them.• You have to make an emotional

connection, both personally and professionally, with the folks on your team in order to get buy-in.

Although he doesn’t manage directreports, Tucker says there are a number ofpeople he must tap into and Mollinedo hastaught him the value of being able to leadacross, above and below.

“I had a lot of raw talent and Ana hashelped me hone that talent. I would like to beable to do that for another person,” he says.

“The best lesson she gave me was on a little card with proverb that said you may beon the right track, but if you just sit thereyou’ll get run over. There’s always somethingmore you can be doing,” Tucker says.

In for the long haul

Feature Starwood Hotels & ResortsP

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Starwood Chairman and CEO Barry Sternlicht (center) with Sheraton associates.



You can only be a good leader if youhave good leadership.

“This is a marathon, not a dash. Youcan’t do it overnight. My boss (DaveNorton) is the shadow in all of this.When the company gets credit it’s theface of the president you see, whenit’s the program, it’s me. But he’s theone who looms in the shadows over itall. I watch him do more of the stretch-ing and growing,” she says.

Norton, executive vice president ofworldwide human resources, sayshe’s long been a believer that themakeup of a person is more importantthat specific qualifications.

“Give me someone smart, whotransacts and communicates wellbecause that is the stuff that’s hard to

teach,” he says.Norton describes

Mollinedo as smart, verymotivated, aggressive andhard working. “She has atough role in this industryand in this company. There’sa lot of tough sledding and ittook someone with all herattributes and her determi-nation to go forward andovercome the obstacles.”

Her process is to under-stand what is working andhow to make it better.Tucker is a good example ofsomeone who got the rightsupport and opportunity todemonstrate his capabilities,says Norton.

“We’re working hard tocreate a culture of inclusion.That kind of change takestime. The challenge is thatwe can’t go faster. We have

to be patient enough to let the pro-grams work.

“I’m confident in every aspect ofour program and in Ana and the rest ofthe global team and am also confidentenough that the organization will change.I’m not worried about the willingness tomake it change,” says Norton.

Part of Mollinedo’s success is thatshe comes from the heart. She’s fullyaware of her strengths—and herweaknesses.

“I get too focused and don’t noticewhat’s going on sometimes. I multi-task too much. I’m impatient. We’respread thin because we’re still hiringpeople. I let my staff know thatthey’ve got to tell me if that’s affectingthem in a negative way,” she says.

“We have blind spots, we can’t seeourselves sometimes and part of lead-ership is being willing to see your own.Being successful also is being comfort-able with failure. Leadership is beingable to visibly fail and let people know


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that you can handle it,” she says.

Q&A with

Ana Mollinedo

Q: Where did you develop your

leadership?

A: ”It started with my father. I wasborn in Havana, Cuba, and came overin 1967. My parents spoke the language, but their degrees were nolonger relevant in the states. Daddrove a truck for a meatpacking com-pany and washed dishes at Pizza Hut.

“We would get beat up at schoolbecause of who we were. I think backon that and the courage it takes. Inever saw my parents lose their cool.From the time I was a little kid, myfather would have these long conver-sations, saying, ‘Don’t let anyone sayyou can’t do something because youare a woman or Hispanic. If you canlearn to play the game by the rules ofthose who made it, you will be as ormore successful than they have been.Keep your eye on that. And if you don’tforgive things people say and do toyou, you will become like them.’ ”

Q: Who were your early influences?

A: “My father was such a huge influ-ence on my business practices, andmy mother was a huge influence onremaining a lady while I put those prac-tices in place.

“Fortunately, my teachers at schoolsaw something in me and invested inme. And my parents let me know thatmy destiny and opportunity were notgoing to be found sitting next them.

When opportunities came, I took them.“My first job was as a legislative

aide for Congressman (William)Lehman. One of the things I learned isthat leading is serving other people.My role is to open doors that people atcertain levels can’t open. It’s givebacktime for all those people who stood onthe sidelines to watch me succeed.”

Q: How do you define leadership?

A: “Leadership is about being at themeetings with the chairman and thepresident because they can or can’tsupport you depending on where yourwork is going. Leadership is steppingoutside. But it starts with you.

“The challenge is getting peoplemore comfortable with dealing withyour team rather than you. Some peo-ple want to be the face of everything.But it comes back to hiring great peo-ple. If you believe your people are solidand capable, others will believe it, too.”

Q: Who are your mentors?

A: “Ken Siegel, executive vice president and general counsel forStarwood, talks to me about where Ineed to develop and what I need tokeep doing. I can turn to him and say,‘I just had a conversation that wentsouth and I need to understand.’

“I try to surround myself with peoplewho are not like me. You need to tellme when I’m messing up. If you don’t,you take away my ability to grow. Mydad said if I have a vision of where Iwant to be in life, look at the peoplethat are there and find out where theywent to school and what kinds ofexperiences they had.”

Q: Was there a moment when you

learned a hard lesson that you’ve

carried with you?

A: “In my mid-20s I was lobbying fora business group in Florida. I was the

only woman on the team and the onlyHispanic in the office. My boss, whowas not the most progressive man,said he wanted to talk to me about myattire. I was wearing a dress, up to myneck, down to my ankles, with a bigbow and my hair in a ponytail. He toldme when I went back to the Capitoltomorrow to notice what the womenwere wearing. Then come back to theoffice and notice what the assistantswere wearing. I noticed the womenacross the street were wearing skirts,pants, jackets and the secretarieswere wearing dresses. He told me tothink about what message I wanted tosend. I have never worn a dress towork again.

“You can choose to be offended oryou can choose to grow and deter-mine what you’re going to learn fromthat experience that makes you better.

“Diversity, mentorship and promotionare a two-way street. It’s not just thecompany’s job to provide you withopportunities; it’s also your role toembrace. Sometimes you need to hearyour clothes aren’t working or you needto tone down your makeup. You have tobe willing to hear those messages.”

Q: What are some of the global

issues facing Starwood?

A: “There are different issues ofdiversity and inclusion when you’retalking about things outside the UnitedStates. For example in Asia, Asianowners want to have western whiteguys run our hotels. We’ve suggestedto them that other Asians or womencould do a great job. In several caseswe’ve been in between general man-agers and asked if it is okay if we putthis female Asian in the role for thetime being. Six months later in bothcases, they want to keep her. It’s aneducational process.”

PDJ



BUIL

DIN

G

InclusionDiversity&

© 2004 Diversity Best Practices1990 M Street, NW • Suite 700

Washington, DC 20036(202) 466-8209 • (866) 53DBP4U

Fax (202) 466-6572www.diversitybestpractices.comAn iVillage Company


Deepening diversity effortsthroughout their organiza-tions, this year’s CEO hon-orees are leading thecharge for inclusion, mark-

ing a key turn in the practice of diversity. Asyou will see from the interviews on the fol-lowing pages, these CEOs have expandedthe breadth and depth of their efforts. Andthat’s largely due to a personal commit-ment on the part of the CEOs, according toSteve Miller, CEO of SLM DiscoveryVentures and former chairman of Shell OilCo.

“I don’t mean to disparage any past winners (including myself), but I seetoday’s CEOs becoming increasingly comfortable with diversity. They them-selves are more deeply engaged and haveincreasingly internalized the idea,” saysMiller, who led the panel with DiversityBest Practices and Business Women’sNetwork, based in Washington, D.C., thatselected the honorees.

“The quality and standing of chief diver-sity officers are improving and increasinglythey are reporting to the CEO. That is help-ing to elevate the quality and visibility ofpeople serving in those positions, a trendthat’s gathering steam,” says Miller.

And CEOs today are all about sharingexperiences. “Certainly leading CEOs lookat what their peer group is doing in aneffort to learn from each other. As thoseexperiences are shared, other companiestake that as the new standard and buildupon it,” he says.

The 2004 CEO Leadership Award winnersunderstand that the future lies in diversity.“They are taking advantage of every oppor-tunity to create a new business culture thatis progressive, inclusive and, most impor-tant, lucrative for building the business,”says Edie Fraser, president of Diversity BestPractices and Business Women’s Network.“These corporate CEO leaders believe insharing best practices, benchmarking toimprove performance, and expanding thepotential of their businesses.”

Nothing makes a CEO more credible thanwhen they are fully engaged in an activitythemselves—whether it’s increased effi-ciency in the production line, customer inter-faces, global competitiveness in the market-place or diversity.

“As you engage in the subject matter,you begin to really feel it,” says Miller. Aleader’s views on diversity can evolve,since it’s the kind of concept that height-ens over time. But it’s tough to fakeengagement.

“It’s very difficult to have a set of personal values that are contrary to the values embod-ied around diversity. You can only go so farbefore people see there’s a clash betweenwhat you officially say and actually do.

“People winning the awards this yearwill have spent more time in the activitythan those who won the award a few yearsago. They’ve simply been engaged longerand are able to better internalize the message,” he says.

But effective diversity and inclusion isalso about good leadership.

“Leadership is about setting forth a visionof where you want to go and then creatingthe climate and the enablers so that theorganization, whatever it is, can makeprogress toward achieving that vision.

“Articulating clearly why that vision hasmerit and power so the organization under-stands the vision of diversity is integral tosuccess. Then it’s up to the leader to set thepersonal example of engagement and provide the resources, encouragement,

cheerleading, and mentoring necessary toget you where you want to go,” he says.

That’s not to say there aren’t challengesto reaching the goals.

A lot of companies today struggle significantly with the issue of minority suppliers. “They can understand on a macrolevel the desire to work with minority suppliers. But with global services focusedon cost it tends to lead companies to largesuppliers (with the advantage of scale).

“The reality today is that not many sup-pliers are certified Minority BusinessEnterprises (MBE) or Female BusinessEnterprises (FBE). You have a conundrumas you work on the cost equation, pressures of globalization and optimization.What can you do to be able to handle thedual requirements of your vision vis-a-visyour productivity and supply?”

Organizations today are faced with twolooming questions: How do you makeminority suppliers equal in scale and devel-opment to other non-minority suppliers?How do you grow them from small nichesuppliers to bigger companies with theadvantages of scale?

There also are challenges to companiesas they seek to promote women and peopleof color into higher levels of management.

“Companies still require qualified candi-dates for these positions. We need to go

CEO Initiatives

Saluting 2004’s CEOs

Steve Miller,CEO,SLM Discovery Ventures

Edie Fraser,President and Founder,Diversity Best Practices andBusiness Women’s Network

By Wendy A. Hoke

“I am makinga difference.”

People define our success.

Diverse perspectives and

talents allow us to provide

innovative food and

facilities management

services that improve the

quality of daily life for

the millions of people we

serve in the U.S. every day.

I amSodexho

“I amimproving your life.”

“I am taking careof you. And peopleyou care about .”

“I am a step ahead.”

Sodexho embraces diversity and inclusion.

“I am ensuringyour safety.”

Committed

toDiv

ersity and Inclusion

Committed

toDiv

ersity and Inclusion

Food Services, Facilities Management, Vending, Catering, Office RefreshmentServices, Environmental Services, Landscaping & Grounds Management,Conferencing, Plant Operations & Management

sodexhoUSA.com • 1-800-SODEXHO

©Sodexho Member of Sodexho Alliance®

back into the development chain, providinglearning experiences for women andminorities so they are among the highestqualified candidates at the senior-most levels,” says Miller.

And in many cases those also are societalinitiatives, rooted in the educational experi-ence. But it is an organization’s managersthat can make diversity happen on a large-scale basis.

“Middle managers take pride in beingable to get the organization where the lead-ership wants it to go. Their attitude is,‘Give me the tools, training and money toget that work done.’ You’ll always have asmall minority that resists. But most arequite happy to get on with it.”

The key is putting the money where theirmouth is. “It’s unfair to ask managers to dothis without giving them the resources. The

litmus test is how many resources leadersput into diversity,” says Miller.

The companies that are doing it best arethose in which the CEO is spending timeand leading the efforts.

Following are profiles of leaders at 10companies that are doing just that—leading diversity.


Are leaders born or are they made?Most likely it’s a combination of thetwo. At least that’s the consensusfrom the 2004 CEO Initiative hon-orees. Each of this year’s honoreescombines a sublime mix of nature andnurture in leading their organizations.

Profiles in Diversity Journal askedeach of them to talk about their lead-ership, career path, influences anddiversity efforts. Their responses wereboth engaging and enlightening andprove that leading global companies isabout engaging a diverse workforce,customer base and supplier network—and it’s about listening and learning.

Getting to this pointAs children, it’s doubtful that many

people think to themselves, “I’m goingto be CEO someday.” The career pathto the C-Suite is often a meanderingone, crafted from varied experiencesfound within a single industry or anumber of industries.

But a CEO’s sense of leadershipoften blooms early on. They may knowthat deep within they possess the veryfabric of “leader.” And with the help ofpositive influences, good mentoringand an uncanny knack for understand-ing what drives people and organi-zations, they find their way to thechairman’s office.

“Very early, I realized that I was for-tunate enough to have an intuitive

understanding for what our consumersmight want, but it was the ability toadapt to different challenges in differ-ent countries that gave me the legiti-macy to lead our very internationalbusiness,” says Lindsay Owen-Jones,chairman and CEO of L’Oréal.

His career began as a salesman atL’Oréal, working his way throughgreater responsibilities in France,Belgium, Italy and the United States.Passion for the company and drivehave led him to his current position. “Iam naturally demanding of myself andambitious for the company.”

Tom Freston, co-president and co-COO of Viacom, jumped way off thecorporate ladder after his days as an adman proved he didn’t have the hard-charging character to propel into aleadership position in that industry. Sohe took a trip around the world, spend-ing eight years working in Afghanistanand India, exporting clothing for a com-pany that he started with a partner.

“After the Soviets invadedAfghanistan, I was forced to head backto New York where, in a conscious‘career change,’ I was fortunate to beable to combine my love of music andmy entrepreneurial spirit at a place juststarting out—MTV Networks.”

Freston thrived off the energy of theearly MTV. “Everyone did everythingand we consciously tried to hire peo-ple who had no television experience.

As the company grew, people left forvarious reasons and more and moreresponsibility kept landing in my lap.And while my rise through the rankshappened organically to some extent, Idefinitely had the right preparation andthe right frame of mind to accept theleadership roles that were presentedto me.”

Many of this year’s honorees gottheir start in sales, including JackWard, chairman and CEO of RussellCorp. He was lured back to corporatelife when offered the chance to leadRussell. It was the fulfillment of a long-time dream. “I had always aspired to aposition as CEO for a major corpora-tion. Russell gave me that opportunityand also the opportunity to use myknowledge and experience to help thecompany transition to an organizationthat can operate in a global economy.”

Jim Quigley and Barry Salzberg arebeing recognized together for theirdiversity leadership at Deloitte &Touche USA LLP. It’s only fitting forthese two leaders to be honoredtogether. They and their spouses wereseated at the same table in 1985 at thenew partner admittance celebration—Quigley having risen on the audit sideand Salzberg the tax side.

Quigley is now CEO of the U.S. oper-ations and works closely with Salzberg,who is U.S. managing partner.

“During my career, I have not always

Nature or NurtureFinding the mix of talent that fosters strong leadership is a hallmark of

this year’s CEO Initiative honoreesCompiled by Wendy A. Hoke


CEO Initiatives

been in what is typically seen as aleadership position; nevertheless, Ihave always considered myself aleader,” says Salzberg, adding that inorder to become a leader, you mustfirst see yourself in that role.

Anne Mulcahy, Xerox chairman andCEO, grew up in a large family, but it was-n’t until she was in college that shebegan to thrive on her newfound inde-pendence.

“Looking back, I now realize thatcertain moments in life, including myexperiences at Marymount (College),are the foundation for the career I havebuilt,” she says.

Her career atXerox began asa sales rep inBoston, even-tually movingup through thesales manage-ment ranks.But then shejumped thattrack to moveinto humanresources, arole someadvised herwas risky.“(The move)gave meinsights intothe corporationthat I was notexposed to inthe field. It alsopiqued my interest in operations—what keeps the global enterprise tick-ing each hour, each day.”

“I developed a reputation as a ‘fix-itexecutive’ and was recruited to WasteManagement in 1999 after an account-ing and insider trading blowup,” says A.Maurice Myers, chairman of WasteManagement. After 10 years as CEO ofAloha Airlines, he left that role to tackleturning around troubled companies.“(It) presented considerably more per-sonal risk, and more reward if success-

ful,” he says.Bill Swanson, chairman and CEO of

Raytheon, says, “It has been my privi-lege to work in Raytheon as an engi-neer on the shop floor, in materials,manufacturing, fabrication and quality,in systems integration and planning, inprogram and general management—and in almost all levels of leadership.These experiences have left me with alove for this company, its people and itscustomers.”

“I’ve always had enormous respect forentrepreneurs and actually thought that Iwould build and own my own companyone day. However, when I graduated

from college in 1982, I found the employ-ment environment to be very difficult.Houston was experiencing the worst oftimes with the oil industry collapse. I wasunemployed, broke and newly married,”says Bob Beauchamp, president andCEO of BMC Software Inc.

It was a harsh wake-up call, but alsogave him the fortitude he would needto succeed on the job. After a fewmonths, he landed a job selling wordprocessors. “It was a classic door-to-door sales job. I was thrown out of

more offices than I can count, but I didlearn how to sell—and not only com-puters. I learned how to sell myself andmy ideas—skills I would need later inlife.”

He took the advice of a mentor, whosuggested he pursue an advanceddegree at night. “It was a good decisionthat opened my mind to the power ofpersonal development.”

He joined BMC Software as a salesrepresentative after working for twohigh-tech firms. “I was fortunate to bea top sales performer for consecutiveyears and was promoted to salesmanager,” adding that he progressed

through manage-ment positionswith oversight forstrategic market-ing, corporatestrategy and busi-ness develop-ment, and wassenior vice presi-dent of researchand developmentbefore beingnamed presidentand CEO in 2001.

S t e p h e nSanger, chairmanand CEO ofGeneral Mills,began his careeras a product man-ager, moving upthe ranks throughmarketing. “I did

not count on being named CEO, but Ialways expected to ultimately becomeone of the leaders of the company.”

J. Wayne Leonard, CEO ofEntergy, started out as an account-ant. He was fortunate to find him-self, at the age of 32, reporting tothe chairman and CEO, a personwho fast became his mentor. “Hewanted me to prepare for the day Imight become the CEO. I had noaspirations beyond a finance positionin middle to upper management. He

What is leadership? The short answer is that there is no one definition. Each CEO has aslightly different concept of leadership. And it’s the wise ones who take a little from theirexperience and make it their own brand.

Leadership is part vision, inspiration, flexibility, humility, respect, communication andaccountability. Here’s a snapshot of what this year’s honorees had to say about definingleadership:

• “Loving one’s work and getting on with other people no matter how different they maybe from oneself is just as important for success.” —Lindsay Owen-Jones

• “Leadership is a ‘vibe,’ and is most powerful when it comes from the heart as opposed to a leadership guide.” —Tom Freston

• “Leadership is about making the right decisions, not the popular ones.” —Jack Ward• “True leaders earn the respect of others through their example—what they stand for

and how they live their beliefs.” —Jim Quigley• You can’t communicate enough. “Good people aligned around a common set of

objectives can do almost anything.” —Anne Mulcahy• “A leader must believe so much in what they are doing and how they do business, that

they would be willing to give it all up without any regrets, if asked or forced to compromise the greater good for individual gain.” —J. Wayne Leonard

Defining Leadership

CEO Initiatives


set up a program where I spent twoyears out of the corporate officesand in the field working with our craftemployees (linemen) and interfacingwith customers. When offered the job,I had a lot of soul-searching to do onwhether I could do this and do right byall the people who were counting onme; including our employees, our own-ers, our customers and my family,” says Leonard.

But doing right is what these CEOsare doing. Part of the reason for that ishaving a clear model for developingtheir leadership and the willingness tolisten and learn on the job.

Style and early influencesSo who and what are the early influ-

ences on the lives of today’s corporateleaders? Although parents were typi-cally the earliest influences, there aremany others who provided inspiration.

Some lead by intuition, preferring togive employees the freedom to takerisks, make decisions and captain theirown ship. Others prefer building consen-sus. But each leader molds these quali-ties to best serve his or her company.

“I am a believer in a more casual andcollegial management style: I put a lotof focus into setting the kinds of cul-tural values important for this kind ofcreative organization,” says Freston. “Iam a big believer in decentralization,which can be daunting for thoseaccustomed to a top-down approach. Icontinually emphasize the importanceof our ability to be nimble, humble andsmart and stress the importance ofbeing a first choice place to work.That’s the way to attract and keep themost talented people.”

For Quigley and Salzberg, leadershipis about empowering others to governthemselves and being open to differ-ent perspectives.

When asked what business bookshave influenced them, several CEOsmentioned “Good to Great” by formerStanford University professor JimCollins. The premise of his book was

that the quality of leadership is whatcan take a company from good togreat. “The difference between goodleaders and great leaders is a paradox-ical blend of personal humility and pro-fessional will,” says Mulcahy.

“Great leaders are self-effacing.They deflect adulation and they givecredit to others. Yet they have a stoicresolve to do whatever it takes tomake their company great. Their ambi-tion is first and foremost about thecompany, not about themselves. If youfocus on the institution, your contribu-tions are much more likely to be lasting ones.”

When it comes to making decisions,Myers believes that although it’s impor-tant to hear from the best brains, it is ulti-mately the CEO’s responsibility to makethe best decision. “One of a leader’smost important talents is the ability todraw a solution out of a set of ambigu-ous data or information,” he says.

An engineer by training, Swansonbelieves process drives solutions bycreating an environment that encour-ages dialogue, learning and intellectualcuriosity. “I have high expectations thatwe do the right thing. I expect every-one on the team to treat the companyname as if it were his or her own,” hesays. His method is to listen, anticipateresponse and follow through, using thehighest ethical standards.

Building consensus is what Sangerworks toward daily. “I do not allowpre-meetings where issues arebrought up for the first time or post-meetings where issues are privatelypre-sold. If a new issue or pointrequires discussion we reconvene theentire group. I make it clear we live byno secrets and no surprises,” he says.

“My parents are loving people whotaught me right from wrong, compas-sion and respect for others and gaveme a strong sense of self-respect,”says Beauchamp. “My grandparentsalso were powerful role models. Iaspire to be the man my grandfatherwas, and that will not be easy. He was

never rich with money, far from it; buthe displayed all the values that today Ihold most dear—honesty, compassion,loyalty, joyfulness and self-discipline.”

He also finds inspiration from history.“ ‘Battle Cry of Freedom: The Civil WarEra,’ by James M. McPherson openedmy eyes to the powerful leadership ofAbraham Lincoln—a perfect blend ofpragmatist and ideologist. He sus-tained his love for humanity and for hiscountry while knowing that conqueringevil and saving a nation would requirethe ultimate sacrifice.”

Role of mentoringPart of a leader’s responsibility is to

give back, to pass on his or her knowl-edge and insight to another generationof leaders. Most of today’s highly effec-tive leaders had someone along theway nudging them in the right direction.

Perhaps it was the coaching of tal-ent, or discovery of what lies within.Regardless, someone took the time.And in this hectic world, when leadinga company leaves so little time, thegood leaders are still nurturing talent.

“The whole L’Oréal culture is abouttransmitting know-how from one gen-eration to another,” says Owen-Jones.“The beauty business is an art, not a science, and experience counts enor-mously, so all of us spend our wholeprofessional lives first learning fromothers and then transmitting this know-how to the next generation. Every dayI have breakfast or lunch with one ofour young managers just to hear outhis problems and help him put theminto perspective. For many of them thisis more precious than all the formalreporting systems and meetings.”

There are individuals and organiza-tions that make an impact on you atvarious points in your life. It can beyour parents, teachers, bosses, col-leagues and friends.

Quigley also credits his family andhis wife Bonnie and the chance towork directly with Global CEO MikeCook. “I saw first-hand the inner work-

At Fannie Mae, we value diversity.That’s why we’re committed

to working with minority- and women-owned businesses.

Diversity is a core value at Fannie Mae. That’s why we’recommitted to developing innovative partnerships with

more minority- and women-owned businesses.

No matter where the opportunity is in commercialgoods, professional services, consulting, ortechnology acquisition, we’re committed toworking with you. Because it’s good businessfor both of us.

To learn more about our Minority- and Women-owned Business Program, call us at (202) 752-7236

or write us at: Fannie Mae Minority- and Women-owned Business Program, 4000 Wisconsin Avenue,

NW mailstop: 2H-4N-05 Washington, DC 20016-2892.

w w w . f a n n i e m a e . c o m

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CEO Initiatives


ings of the firm and observed ourfinest professionals at work. It’simpossible to overestimate the valueof that experience.”

Although there are formal mentoringprograms in place at Deloitte, Quigleysays it is expected to assist otherswhenever possible.

Since he has personally benefitedfrom mentoring, Salzberg has returnedthe favor in kind. “I have had peoplewho have helped me define my career,have helped me take stock of where Iwas and have assessed me objective-ly.” He mentors those who workdirectly with him and others who seekhis advice on a less formal basis.

Myers is preparing to retire soon andso his time now is spent mentoringthe senior leadership team at WasteManagement. But he also acknowl-edges what he has learned.

“I feel I have learned most from allof the successful managers I havecome in contact with over the years. Ihave learned from failures as well asfrom successes,” he says.

Mentoring is not only important; italso is key to the development ofdiverse employees, according toBeauchamp. “People need to be ableexpress their fears, concerns and ideasin a non-threatening environment toothers who have ‘seen around corners’that they cannot yet see around.”

Mentoring is an ongoing state atRaytheon. “We’re launching a mentoringeffort with Tuskegee University throughwhich some of our female executives atRaytheon will be mentoring female engi-neering students at Tuskegee,” saysSwanson, who believes, “There’stremendous value in mentoring, not onlyfor the individual being mentored, but

also for the person doing the mentoring.”Leonard understood, from an early

age, the value of hard work and that nowork was “beneath” any man. “Nothingin life ever came easy to my parents butthey were always grateful for work andfor food on the table. As scarce as thingswere, I never saw my parents turn awayfrom a person in need.”

And he was fortunate to have AlBarker, CEO of PSI Energy, recognizehis future was in leading an energycompany. Barker helped Leonardunderstand the business, not just thenumbers. “He wanted me to knowhow real people used our product(electricity) and how difficult and dan-gerous it is to work with high voltageelectricity, particularly during adverseweather. He was a man of uncommonwisdom and virtue.”

Diversity challengeAlthough this year’s CEOs are being

honored for leading diversity efforts,they also acknowledge the challengesahead. And that’s what is driving themand their decisions today.

L’Oréal

“With such a continued growth inthe size and complexity of diversity inthe world today, our biggest challengeis to stay ahead of the expectationsof all our customers and all our

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Q: Beauty means different thingsin different cultures. How do youapply L’Oréal’s notion of beautyto such a diverse (global) market segment?A: “Before entering any newmarket we spend a surprisingamount of time listening andanticipating. These are keyqualities to understanding thediverse needs of our customers.”

— Lindsay Owen-Jones, chairman and CEO, L’Oréal

NAME: Lindsay Owen-Jones AGE: 58

TITLE: Chairman and CEO

COMPANY: L’Oréal

NAME: Lindsay Owen-Jones AGE: 58


COMPANY: L’Oréal

Lindsay Owen-Jones, L’Oréal

Title: Chairman and Chief Executive OfficerYears in current position: 16Company headquarters: Paris, FrancePrimary business: Cosmetics2003 revenues: $15.5 billionEducation: University of Oxford, England; Insead, FranceFirst job: 1969 begins career with L’Oréal as a product managerFamily: Wife; one daughterInterests: Sailing, motor racing

Visit www.lorealusa.com today to learn more.

Equal Opportunity Employer

DIVERSE BRANDS.DIVERSE THINKING.

®

The L’Oréal family of brands includes:

OUR COMPANY CULTURE FOSTERS AND VALUES DIVERSITY.

TO A LARGE EXTENT,OUR STRENGTHIS THE DIVERSITY OF OUR TEAMS.


employees,” says Owen-Jones.Understanding what women and menwant in different markets is L’Oréal’s expertise.

“We invest in local knowledge gath-ering—with the manufacturing of prod-ucts done locally (more than 95 per-cent of all L’Oréal products are manu-factured by L’Oréal employees inL’Oréal plants around the world), andwith the development of international

research centers (in France, Chicagoand soon in China); local test centers;local and global trends monitoring;anticipation; and analysis.”

Owen-Jones recognizes that in orderto be globally successful, a companymust first be global from within, andso the company continues to recruit adiverse workforce.

“We have chosen to ensure thatdiversity is recognized as a key, meas-

urable element of everything we do. “Our entire investment in our

business model is centered around therespect that we have for the diversecultures of the world. We have neversought to impose a single model ofbeauty. Our goal, therefore, has beento create a diverse portfolio of brandsthat offer our customers a choice ofbrands with different cultural originsand that are adapted to meet the spe-cific needs of different cultures.”

In 2003 L’Oréal developed theL’Oréal Institute for Ethnic Hair andSkin Research in Chicago, the first andonly center in the world dedicatedentirely to advancing knowledge of theunique properties and specific needsof the hair and skin of people of Africandescent. Within the next year, it plansto open a similar Institute based inChina to better understand Asian hairand skin.

“As a company with its origins in sci-ence, we also understand the necessityand richness of diversity of gender relat-ed to the study of science. It is for thisreason that we support and invest heav-ily in the L’Oréal UNESCO for Women inScience program, dedicated to promot-ing and encouraging women and thestudy of science around the world.”

CEO Initiatives

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ES Q: Is MTV selling an American brand of music to the

world or bringing the world’s music to Americans? Isthere a balance between the two?A: “Eight out of 10 MTV viewers reside outside theUnited States … each of our 96 channels is locally programmed by a staff of local employees who intimately know the tastes and culture of their audience and they alone are responsible for makingthe programming choices. Increasingly, their choicesare for local artists and local musical styles.”

— Tom Freston, Co-president & Co-COO, Viacom International; former CEO & chairman of MTV Networks

NAME: Tom Freston AGE: 57

TITLE: Co-President/Co-COO

COMPANY: Viacom

NAME: Tom Freston AGE: 57

TITLE: Co-President/Co-COO

COMPANY: Viacom

Tom Freston, Viacom

Title: Co-President and Co-Chief Operating Officer, Viacom International—formerly, CEO and Chairman, MTV Networks

Years in current position: One at Viacom; 17 at MTV NetworksCompany headquarters: New York, N.Y.Primary business: Viacom is a leading global media company, with

preeminent positions in broadcast and cable television, radio, outdoor advertising and online. MTV Networks owns and operates many of the most popular basic cable television programming services,including MTV: Music Television, VH1, Comedy Central, Nickelodeon, CMT, TV Land, Nick at Nite, Spike TV and MTV2.

2003 Revenue: Viacom was $26.6 billion 2003 Fortune 500 ranking: 64 Education: Bachelor’s degree from St. Michael’s College;

MBA from New York University.First job: Advertising, accounts managementFamily: Wife; two sons

mtv networks

where individuality resonates

Be heard. Be challenged. Be able to express

.yourself in a diverse, creative atmosphere.

© 2004 MTV Networks. All rights reserved. EOE/M/F/D/AAPmmttvvnnccaarreeeerrss..ccoomm


MTV Networks

“The biggest challenge now is to keepthe momentum going,” says Freston.“We have invested a tremendous amountof resources and time in getting diversityand inclusion to become part of the fabricof life at MTV Networks in its entirety. Butas new leaders come in and others moveon, we must continue to educate andensure that everyone realizes just howcrucial diversity is to our continued suc-cess.

“I lead the company’s diversity effortsand have made it a priority for all of thesenior leaders.

“For the past two years we have hadrenowned diversity expert, Rosalyn TaylorO’Neale, on staff as our executive vicepresident of diversity. And, while she isleaving soon, Rosalyn has trained eight

diversity leaders on my senior manage-ment team to manage a well-organizeddiversity infrastructure.

“We are completely committed tocreating a diverse and inclusive work-place and will spend whatever it takesto ensure that is a continuing part ofworking at MTV Networks.

“I think it is absolutely crucial that acommunications company be a reflec-tion of its audience and be able toauthentically speak the language ofits viewers.

“Creativity and our ability to createdistinctive programming that connectswith our audiences in deep and mean-ingful ways is the absolute key to oursuccess. So, by that measure, diversi-ty affects our bottom line in a veryclear and direct way.”

Russell Corp. / NYSE: RML

“Our biggest diversity challengetoday involves moving our diversity initiative to the next level,” says Ward.“We have made excellent progress,but we know that excellent progress isnot the same as excellence. We stillhave locations where diversity is notas fully implemented as it should befor Russell to reach its potential.

“Our Diversity Scorecard, whichincludes training, representation andsupplier diversity, is a bonus standardfor all bonus-eligible employees.

“We have a corporate DiversitySteering Team, which I chair, thatincludes a diverse group of seniormanagers who represent all majorbusinesses. The Diversity LeadershipTeam (DLT) is comprised of peoplefrom all background, levels, divisionsand locations within the company.

“The Diversity Steering Team setsthe objectives but diversity recom-mendations are made by the DLT andalso by the networks. The DLT, withthe support of the Diversity SteeringTeam, develops and implementsaction plans for those strategies. OurCorporate Vice President of Diversityis responsible for overseeing all ofthese efforts along with our corporateemphasis on education, representa-tion and minority purchasing. Thatposition reports directly to me.

“Working with the DiversityDepartment and the various groupsinvolved in the initiative, we agree on abudget each year. Currently, the depart-ment has four full-time employees.

“Our diversity efforts help us recruitand retain the best and brightest talentand create a more inclusive work envi-ronment for all of our employees. Italso has developed into an effort thatprovides major measurable businessactivities, such as our partnership with30 historically black colleges and uni-versities in three conferences.”

Deloitte & Touche USA LLP

“The challenges we face in recruit-ing, training and retaining our peopleare the same that have always exist-

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CEO Initiatives

Q: Are you mentoringanyone today?A: “One of the programswe adopted at Russell is a reverse mentoring program where I amactually mentored bysomeone with a very different backgroundand, in my case, it is a single mother.”

— Jack Ward, chairman and CEO, Russell Corp.

NAME: Jack Ward AGE: 61


COMPANY: Russell Corp.

NAME: Jack Ward AGE: 61


COMPANY: Russell Corp.

Jack Ward, Russell Corp.

Title: Chairman and CEOYears in current position: SixCompany headquarters: Atlanta, Ga.Primary business: Athletic wear and sporting goods2003 revenues: $1.186 billionEducation: Bachelor’s degree and MBA from Cornell UniversityFirst job: Working at summer camps; after college was a

sales representative for Procter & GambleFamily: Wife; two grown daughters; one grandsonInterests: Travel, tennis, reading, roller-blading

ed—we want the best people, and thebest people are always in demand,”says Quigley. “To attract and retain thebest talent, we strive to benefit fromand provide opportunities for diversity

throughout all levels of management.“Barry Salzberg and I champion our

Diversity & Inclusion and our Women'sInitiatives. We also lead an externalDiversity & Inclusion Advisory Board

and an external Council on theAdvancement of Women.

“Considerable resources are dedicat-ed to ensuring that our Diversity &Inclusion Initiative moves forward. Ourmost significant investment is the timeand energy we devote to demonstrateour commitment, share our passion andencourage others. Barry and I regularlyvisit offices and give talks around thecountry and within the firm to emphasize the importance of diversityand inclusion.”

“I think one of diversity’s biggestchallenges is getting companies tounderstand the importance of diversi-ty on their bottom line and that suc-

ceeding in the marketplace requirescompanies to support a diverse workculture,” says Salzberg. “Deloitte’scommitment to diversity, both in thefirm and on our engagement teams, isactually a big factor in our ability to winclients in the marketplace. Clearly,clients want to work with a team thatreflects the make-up of their own organizations.

“Other challenges include languageand environment, which can createobstacles when global organizations,such as ours, work across borders.For example, we have member firmsin 140 countries, often working togeth-er on different aspects of engage-ments with multinational clients. Wehave also opened offices of the U.S.firm in India; a move that we believewill improve our efficiency and prof-itability. The challenges that languageand environment may create can beovercome through thoughtful actionand visible commitment.

“I believe that our accomplishmentsare much more important than ourexpenditures. In 1998, 12.4 percent ofour managers were people of color; by2003 that percentage had grown to22.3 percent.

“The turnover gap for people ofcolor has dropped from 4.4 percent in1998 to a negative 0.7 percent in 2004.

“In 1998, people of color represented


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CEO Initiatives

Q: Did you always seeyourself in a position ofleadership?A: “I grew up in rural Utahwhere being responsibleand working hard wereimportant and expected.Leadership is somethingyou do rather than thinkabout or aspire toward.”

— Jim Quigley, CEO, Deloitte & Touche USA LLP

Jim Quigley, Deloitte & Touche USA LLP

Title: CEO Years in current position: 15 months Company headquarters: New York, N.Y. Primary business: Professional services firm 2003 revenues: $6.5 billion Education: Bachelor’s degree from Utah State UniversityFirst job: Haskins & Sells Family: Wife; three children; eight grandchildrenInterests: Boy Scouts of America, American Institute of

Certified Public Accountants, the NYC2012 Olympic Committee and Junior Achievement of New York City

NAME: Barry Salzberg AGE: 51

TITLE: Managing Partner

COMPANY: Deloitte & Touche USA LLP

Q: Who are your mentors?A: “My wife has greatinsight into people andthe business and is atremendous help to me.As long as I’ve known her,she has never been afraidto voice her opinion, tellme I’m wrong or convinceme that I could do some-thing better.”

— Barry Salzberg, U.S. managing partner, Deloitte & Touche USA LLP

NAME: Barry Salzberg AGE: 51

TITLE: Managing Partner


NAME: Jim Quigley AGE: 52

TITLE: CEO


NAME: Jim Quigley AGE: 52

TITLE: CEO


Different perspectives.

At Deloitte & Touche USA LLP, diversity isn’t just a philosophy

– it’s how we do things. It’s incorporating ideas from our

people with different backgrounds, experiences, and skills. It’s

giving our clients a 360º perspective on complex business issues

they face, from assurance and tax to financial advisory and

consulting. Our teamwork invariably produces the best results

and helps us build strong, enduring relationships with our clients

– who appreciate our multidisciplinary, multidimensional

approach to their business issues.

To learn more about Deloitte & Touche USA LLP, visit us at

www.deloitte.com/us.

Diverse minds create solutions.

www.deloitte.com/us

About Deloitte

Deloitte, one of the nation’s leading professional services firms, provides audit, tax, consulting, andfinancial advisory services through nearly 30,000 people in more than 80 U.S. cities. Known as anemployer of choice for innovative human resources programs, the firm is dedicated to helping its clientsand its people excel. “Deloitte” refers to the associated partnerships of Deloitte & Touche USA LLP(Deloitte & Touche LLP and Deloitte Consulting LLP) and subsidiaries. Deloitte is the U.S. member firm of Deloitte Touche Tohmatsu. For more information, please visit Deloitte’s Web site atwww.deloitte.com/us.

Deloitte Touche Tohmatsu is an organization of member firms devoted to excellence in providing professional services and advice. We are focused on client service through a global strategy executedlocally in nearly 150 countries. With access to the deep intellectual capital of 120,000 people worldwide,our member firms, including their affiliates, deliver services in four professional areas: audit, tax, consulting, and financial advisory services. Our member firms serve more than one-half of the world’slargest companies, as well as large national enterprises, public institutions, locally important clients, and successful, fast-growing global growth companies.

Deloitte Touche Tohmatsu is a Swiss Verein (association), and, as such, neither Deloitte Touche Tohmatsunor any of its member firms has any liability for each other’s acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names “Deloitte,” “Deloitte &Touche,” “Deloitte Touche Tohmatsu,” or other, related names. The services described herein are providedby the member firms and not by the Deloitte Touche Tohmatsu Verein. For regulatory and other reasons,certain member firms do not provide services in all four professional areas listed above.

Member of Deloitte Touche TohmatsuCopyright © 2004 Deloitte Development LLC. All rights reserved.

4.7 percent of our partners; that numberrose to 5.1 percent in 2003. For womenover that same period, that numberrose from 10.4 percent to 17 percent.”

Waste Management / NYSE: WMI

“To understand our challenges, we must look at the history of ourcompany and understand that fouryears ago, we were tasked with turn-ing the company around. At that time,we were focused on putting IT sys-tems and business processes inplace. Now that we’ve accomplished

those goals, we can start to focus onenabling other key business practicessuch as diversity.

“One of our recent assessmentsshows that we need to make a partic-ular effort to build diversity in nontra-ditional jobs—specifically in driver,mechanic and heavy equipment jobs.We’ve also noted that there is plentyof diversity on our front line, but notas much in senior management. Oneof our challenges is to communicatethe business need for diversitythroughout the organization.

“On supplier diversity, we are committed to a three-year strategy toachieve a Tier 1 supplier diversity

spend of 10 percent. We expect to be

CEO Initiatives


HO

NO

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NAME: A. Maurice Myers AGE: 64

TITLE: Chairmann

COMPANY: Waste Management

Q: What qualities do you seek in leaders?

A: “Intelligence, the ability to clearly communicate, a record of success in all facets of life, a high level of energy and unquestioned integrity.”

— A. Maurice Myers, chairman Waste ManagementNAME: A. Maurice Myers AGE: 64

TITLE: Chairman

COMPANY: Waste Management

Barry Salzberg, Deloitte & Touche USA LLP

Title: Managing PartnerYears in current position: 15 monthsCompany headquarters: New York, N.Y.Primary business: Professional services firm 2003 revenues: $6.5 billionEducation: Bachelor’s degree from Brooklyn College;

Juris Doctor from Brooklyn Law School; LLM in taxation from the New York University School of Law

First job (full time): Haskins & Sells (part-time: NYC Board of Education)Family: Wife; two sons

A. Maurice Myers, Waste Management

Title: ChairmanYears in current position: Five years on Nov. 10, 2004Company headquarters: Houston, TexasPrimary business: Environmental servicesFortune 500 Ranking: 1702003 revenues: $11.6 billionEducation: Bachelor’s degree from California State University at

Fullerton and MBA from Long Beach State UniversityFirst job: Began career with Ford Motor Co. in its financial

management-training program Family: Wife; three married daughters; seven grandchildrenInterests: Golf, fly fishing, being outdoors

CChhrryysslleerr,, JJeeeepp,, aanndd DDooddggee aarree rreeggiisstteerreedd ttrraaddeemmaarrkkss ooff DDaaiimmlleerrCChhrryysslleerr CCoorrppoorraattiioonn..

Diversity.It’s what drives us.

From the cadres of minority designers, engineers, and office staff to the men and women on the

factory floor and our network of minority owned dealers, we're dedicated to creating the best cars

and trucks possible. In fact, this dedication to work ethic, smarts, and quality is inherent in every

vehicle we produce. It's what makes us the proud American brands of DaimlerChrysler Corporation.


at 4.5 percent by the end of 2004, 6.5percent in 2005 and 10 percent in2006. In addition, we hired a Directorof Supplier Diversity to help promoteour strategy, internally and externally.

“I believe our most important goal isto raise the level of importance ofdiversity and inclusion so it is part ofevery manager’s daily job as opposedto looking at diversity and inclusion asan initiative or project.

“Our chief diversity officer, CarltonYearwood, is part of our senior teamand participates in making major decisions for the company. He keepsdiversity and inclusion ‘top of mind’,every day and in everything we do.

“Senior executives throughoutWaste Management are assigned specific goals regarding diversity andinclusion in their own operations. Partof their annual incentive bonus isdependent on meeting those goals.

“We approach diversity and inclusionas a value proposition. This approachleads to clear and unqualified understanding about the positive contributions a diverse workforce delivers. It also highlights the value anyindividual can provide our customers,shareholders and employees. Diversitymust be an active player in a company’s

business strategy. Diversity also mustdefine how it can help grow a company’s revenues and increase profit margins.

“A successful diversity and inclusionprogram means happier, more productive employees. It also meansmore business with suppliers and customers who share our diversity andinclusion values. These are all positives for the bottom line.”

Raytheon / NYSE: RTN

“For our organization, the greatestchallenge is helping people understandthat diversity goes beyond race andgender and sexual orientation and all ofthe diversity traits that first come tomind. We talk about diversity in thecontext of diversity of thought. Our goalis to create an inclusive culture thatengages every stakeholder in our mis-sion of customer success. I’ll knowwe’ve truly achieved our diversity goalswhen the opinions of individuals on theshop floor up through my office areequally valued.

“We face the same challenges as anyhighly competitive company in recruit-ing the best and the brightest, butwe’re working hard at that. One of thethings that, perhaps, is more unique tothe defense industry in that regard isthat we’re restricted from recruitingforeign nationals due to ‘classification’requirements on many of our contractsand so our candidate pool is morelimited.

Q: What is your definitionof leadership?A: “I believe there are fourqualities to leadership—confidence, dedication,integrity and love. Lovefrom the standpoint thattrue leaders have self-sacrifice.”

— William H. Swanson, chairman and CEO, Raytheon

William Swanson, Raytheon

Title: Chairman and CEOYears in current position: OneCompany headquarters: Waltham, Mass.Primary business: Defense2003 revenues: $18 billionEducation: Bachelor’s degree from

California Polytechnic State UniversityFirst job: EngineerFamily: WifeInterests: Golf, cooking, wine, reading, education

NAME: William H. Swanson AGE: 55


COMPANY: Raytheon

NAME: William H. Swanson AGE: 55


COMPANY: Raytheon

HO

NO

RE

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CEO Initiatives

Anne Mulcahy, Xerox Corp.

Title: Chairman and CEO, Xerox Corp.Years in current position: Chairman and CEO since January 2002;

CEO since August 2001Company headquarters: Stamford, Conn.Primary business: Document technologies, products and servicesFortune 500 Ranking: 130 2003 revenue: $15.7 billionEducation: Bachelor’s degree from

Marymount College in Tarrytown, N.Y.First job: Xerox sales representative Family: Husband; two sonsInterests: Spending time with family


“Our structure includes a director ofglobal diversity who reports to the sen-ior vice president of human resources,who reports to me. This is a positionthat used to be rotational, but is nowpermanent. We also have a DiversityChampion who chairs our ExecutiveDiversity Council and works in partner-ship with the Diversity Director. OurDiversity Champion is a senior leaderof my team. It’s a rotational assign-ment, providing my Leadership Teammembers with the opportunity to bewell-steeped in this area.

“We have a robust diversity infrastructure including our ExecutiveDiversity Council (EDC), our HumanResources Diversity Council (HRDC)and Employee Resource Groups.There’s tremendous dialogue about

diversity and decisions are made collaboratively across the organization.

“We provide financial support to anumber of major conferences and wespend a significant amount of money onsupplier diversity. We provide financial

resources to our Employee ResourceGroups and we do diversity advertising

to attract talent to our organization.”

General Mills / NYSE: GIS

“Decisions regarding corporate diversityare ultimately made by myself,Mike Peel, senior vice presi-dent, human resources and LisaNovotny, vice president, diversi-ty and staffing, with input fromthe Diversity Department andany of a variety of internal diver-sity related groups,” saysSanger. “These groups includeour Employee Networks andforums as well as ad hoc teams,such as the Diversity Scorecardteam, tasked with addressingdiversity opportunities.”

Xerox Corp. / NYSE: XRX

Q: What do you see is the value in mentoring?A: “As a female executive, I understand theneed to serve as a role model for otherwomen to achieve their highest potential.I’ll know that women have really made it in

the business world when the appointment ofa female CEO makes headlines not

because of her gender but because ofher accomplishments as a successful leader.”

— Anne Mulcahy, chairman and CEO, Xerox Corp.

NAME: Anne Mulcahy AGE: 52


COMPANY: Xerox

NAME: Anne Mulcahy AGE: 52


COMPANY: Xerox

Stephen W. Sanger, General Mills

Title: Chairman and CEO Years in current position: NineCompany headquarters: Golden Valley, Minn. Primary business: Food Manufacturing Fortune 500 Ranking: 1862003 revenues: FY2004 $12.3 billion Education: Bachelor's degree from DePauw University;

MBA from the University of Michigan First job: Marketing and sales positions with

Procter & Gamble

NAME: Stephen W. Sanger AGE: 58


COMPANY: General Mills

NAME: Stephen W. Sanger AGE: 58


COMPANY: General Mills

Q: What resources (financial and manpower) are spent on diversity?A: “The Diversity Department consists of six full-time employees. Two are dedicated to supplierdiversity, two are responsible for workforce diversityand for experienced diverse recruiting. There is oneadministrator and also a vice president of diversityand staffing. We have a supplier diversitycommitment of $225 million. This year’s budget is just over $1.4 million.”

— Stephen W. Sanger, chairman and CEO, General Mills

CEO Initiatives

“One of the things that I think setsus apart is Xerox’s longtime focus ondiversity and inclusion, dating back tothe mid-1960s, and the fact that ourcommitment has been so consistentover time,” says Mulcahy. “It’s not a short-term program but a long-termway of life at Xerox.

”I focus more on how we can effectively work togetherand get things donerather than on wherelines happen to fall

on an organiza-tion chart.

“This compa-ny’s commitment

to supporting a diverse, inclusive workenvironment, in the broadest of ways, is clear andextends well beyond my office anddirect reports into every aspect ofXerox operations.

“Our Executive Diversity Council ischaired by our chief staff officer, HectorMotroni, who does report directly tome, as do several members of theCouncil.

”This issue is not about numbers as much as about role-modeling leader-ship behaviors and communicating clearly and frequently what is expectedwithin Team Xerox. Elements of diversi-ty are built into so many aspects of

Xerox: from leadership development, torecruiting, to supplier/vendor relation-ships, to community outreach and philanthropy efforts.

”The business benefits of diversityare obvious. People with differentbackgrounds and experiences bringdifferent skills and ideas to solve prob-lems, are better able to address theneeds of customers in a global, com-petitive business environment, andmake the workplace more inclusiveand adaptive. I believe the energy andcreativity of our people give us a com-petitive advantage.”

Entergy / NYSE: ETR

“Our biggest diversity challenge isknocking down the barriers to upwardmobility in the organization.

“The Office of the Chief Executive(OCE) is responsible for setting the over-all direction for Entergy’s Diversity andInclusion Initiatives.

“The chief diversity officer, RobertSpencer, reports to the Senior VicePresident of Human Resources andAdministration who is also a member ofthe OCE.

“The OCE creates diversity actionplans, sets goals and provides leadershipfor the entire organization. Throughinteraction with the chief diversity offi-cer, we keep abreast of trends anddevelop strategies to accomplishEntergy’s Diversity Vision.

“Each business unit and majoremployment center has a diversitycouncil; the chairs of these councilscome together and comprise theInclusion Steering Committee.

“There are three full-time staffresources dedicated to diversity: twoexempt and one non-exempt. Theinclusion budget is about $500,000. Inaddition, we are currently having all15,000 employees in our companyattend diversity training. When com-pleted, this training will have been anexpense in excess of $2 million.

“Our definition of diversity andinclusion makes it easier to under-stand how the program impacts the

Q: What are your biggest diversity challenges today and why? A: “Our biggest diversity challenge is knocking down the barriers to upward mobility in the organization. We hire goodpeople, but too many still get hired away

before they reached their potential because others have identified them and are offering better opportunities sooner, or we have segments of the organization that have not fully embraced the ‘spirit’ of diversity.”

— J. Wayne Leonard, chairman and CEO, Entergy

NAME: J. Wayne Leonard AGE: 53

TITLE: CEO

COMPANY: Entergy

J. Wayne Leonard, Entergy

Title: Chief Executive OfficerYears in current position: SixCompany headquarters: New Orleans, La.Primary business: UtilityFortune 500 Ranking: 217 2003 revenues: $9.1 billionEducation: Bachelor’s degree from Ball State University;

MBA from Indiana UniversityFamily: Wife; three daughters Interests: RunningH

ON

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S


NAME: J. Wayne Leonard AGE: 53

TITLE: CEO

COMPANY: Entergy

CEO Initiatives

POWERPOWER

Responsibility

Our responsibility as a Fortune 500 company and one of America's largest electric utilities is more than providing

power. It's using our energy and leadership to cultivate the strength of an inclusive work environment. To provide

opportunity and maximize the potential inherent in a world of diversity. To do everything in our power to make

life better.

Entergy’s employees salute this year's recipients of the CEO Leadership Award. Your commitment. Your vision.

Your leadership.

1-800-ENTERGY (368-3749) • ©2004 Entergy Corporation www.entergy.com

bottom line. We believe that employ-ees cannot be expected to face thechallenges, take the risks or endurethe long road unless they are support-ed, valued and appreciated as uniquehuman beings with individual differ-ences. Supporting employees posi-tions them for success; and when theindividuals are successful the compa-ny is successful. That success isreflected in the bottom line.”

Leveraging diversity to improve thebottomline is what makes these leaders tops in 2004.

BMC Software / NYSE: BMC

“One of the biggest—if not thebiggest—challenges every companyfaces is managing change. Companiestoday are either going to be able totransform themselves continually orthey will be left behind. Implementingdiversity is a change in process and achange in culture. And change is hard.

“Every business would agree thatits employees are the foundation of itssuccess, but when you’re in the soft-ware business, you really depend onyour intellectual capital. BMC doesn’thave natural resources or reserves inthe ground. We don’t have manufac-turing plants around the world; all we have are people’s ideas. Wemust be able to take these ideas andturn them into software and get thatinto the hands of tens of thousands of customers around the world,”

says Beauchamp.“The challenge for BMC is to consis-

tently attract, retain and develop thebest talent in the software industry. Todo this, you must prove to current andpotential employees that everyone hasthe opportunity to contribute, to growand to reach their potential. You mustencourage all voices to be heard andgive all employees the opportunity tobe all that they can be. Our business isglobal and our talent must reflect thediversity of our customers so that wecan better understand the nature oftheir businesses.

“We’ve made progress in a numberof areas and have a very diverseemployee base. When I assumed mycurrent role, our board was comprisedof white males. We’ve diversified theboard to bring a range of experiencewith fresh perspectives and new ideas.

“In fiscal year 2004, 19.8 percent ofour discretionary spend went to diversesuppliers, including minority- orwomen-owned businesses. We’rebeginning fiscal year 2005 on a pace toincrease this spend to 22.3 percent.Currently we’re focusing our efforts ondeveloping diverse sources for profes-sional services, such as financial andlegal.

“We have a diversity office thatreports to the senior vice president ofadministration. Four global actionteams are working on key areas: men-toring, work life balance, advancing


Bob Beauchamp, BMC Software Inc.

Title: President and CEOYears in current position: ThreeCompany headquarters: Houston, TexasPrimary business: Enterprise management Fiscal 2004 Revenues: $1.4 billionEducation: Bachelor’s degree in finance from University of Texas-Austin;

master’s degree in management from Houston Baptist University

First job: Sales representativeFamily: Wife; four sons

PDJ

NAME: Bob Beauchamp AGE: 44

TITLE: President and CEO

COMPANY: BMC Software

NAME: Bob Beauchamp AGE: 44

TITLE: President and CEO

COMPANY: BMC Software

Q: What is a greatleader to you?A: “Great leaders are people you trust. Greatleaders have vision. Ibelieve great leaderslead from the front.People need to see theperson driving thevision. Leaders must beable to attract high-quality talent. Whilesomeone may be agood individual per-former, he or she mustbe able to build astrong team in order tolead. Great people won’t work for poor leaders for long.”

— Bob Beauchamp, president and CEO, BMC Software Inc.

CEO Initiatives

Charging Employees to Creatively Tackle Diversity.

Just as we employ diversity of thought to solve our customer’s challenges, we also

wanted to nurture and drive diversity in our workforce. So, we challenged our employ-

ees to help craft a powerful, comprehensive diversity program called Diversity @ BMC.

The program convened multiple “Diversity Action Teams,”—comprised of a broad

cross-section of our employees—to address critical diversity issues. The teams were

charged with implementing changes by completing and executing short-term,

results-oriented projects. By making the drive toward diversity inclusive, the process

itself is part of the solution.

And, to be sure, the business case for nurturing diversity is a strong one because

diverse companies consistently develop greater intellectual capital and are better

positioned to meet the needs of today’s marketplace.

BMC Software is an Equal Opportunity Employer. BMC Software, the BMC Software logos, and all other BMC Software product or service names are registered trademarks or trademarks of BMC Software, Inc. All other trademarks belong to their respective companies. © 2004 BMC Software, Inc. All rights reserved.

16125 Diversity Journal ad.qxd 9/9/04 5:33 PM Page 1


There has been a great deal of talk lately about how thechanges and demands of today’s workplace are affect-ing employees’ lives. Adapting to these changes anddemands—as well as to company growth goals—requires employees to work smarter, improving theirwork practices to be more effective and productive.Employees are striving for improved quality and effec-tiveness, both in their work and their personal lives.When employees achieve these goals, their employersbenefit as well.

Why employees use flexibility

A number of recent changes affecting the corporateworld have increased the need for workplace flexibilityand helped move flexibility to the forefront of organiza-tions’ agendas. First of all, technological tools—such ase-mail and voicemail—make it possible for employeesto work anytime and anywhere, but at the same time,diminishing boundaries between work and personaltime often lead to overwork.

Building a flexible workplace.In today's business world,

w o r k p l a c e f l e x i b i l i t y

is a powerful tool for maximizing individual and organizational effectiveness.

By Catalyst

Catalyst Research

Building a flexible workplace.In today's business world,

w o r k p l a c e f l e x i b i l i t y

is a powerful tool for maximizing individual and organizational effectiveness.

By Catalyst

Globalization and the resulting shift toward operatingacross geographic and time boundaries have increased workhours and business travel for many employees. In order toincrease productivity without increasing headcount, employ-ees have also expanded their work hours and are taking lessvacation in order to respond to increasing demands.

Demographic shifts—such as the influx of women intothe workplace and the dramatic increase in dual-career cou-ples in the workplace—have changed the profile of the typ-ical employee and his or her work/life needs. In the midstof all of these trends, the new generation of employeescomes to work with different expectations about whatwork means to them, the role it plays in their lives and howwork is defined.

Flexibility is used by many employees—men and womenalike—for a wide variety of work and personal reasons,such as:

• To have uninterrupted time to complete certain tasks and to accommodate urgent work requests

• To be available to colleagues and clients in other time zones

• To address life interests and needs put aside during periods of heavy workload

• To avoid long commutes• To care for children or sick family members• To exercise, engage in hobbies and

community activities• To transition from full-time work to retirement• To pursue additional education or certifications

The benefits of

workplace flexibility

Flexibility is a powerful—and often underused—tool forbecoming an employer of choice and increasing workproductivity and effectiveness. Offering flexibility allowscompanies to recruit the best talent and retain experiencedand valuable employees. It also helps to boost employeesatisfaction, engagement and morale.

A flexible work environment can be the differencebetween employees that feel energized, committed andready to go to bat for you and those that feel burned out,unsupported and ready to walk out the door the first chancethey get. In addition, flexibility simplifies work processesand focuses on output. In doing so, it encourages employ-ees, managers and work groups to work more creativelyand effectively.

Flexibility shines the spotlight on leadership capabilitiessuch as crystallizing and communicating priorities, settingthe stage for thoughtfully executing plans, encouragingteamwork and coordination, and harnessing employeetalents to drive results.

The business case

for flexibility

The best place to start in incorporating flexibility into yourworkplace is to think specifically about your organization’sgoals and difficulties, and to understand how flexibility canaddress them. Identify the compelling reasons for usingflexibility to help employees—as well as your organizationas a whole—be more effective.

Historically, flexibility has been treated as an accommo-dation created in response to an individual’s needs. ButCatalyst finds that when businesses approach flexibilityproactively, they can design flexible arrangements that suitthe needs of both the individual and the business. Beloware some questions that can guide managers in thinkingabout flexibility as a business tool.

• How, when and where does work currently get done? In what ways is this system effective? In what ways could it be improved?

• What do employees get rewarded for in the organization?

• Do you have flexibility policies on the books that are unused? If so, why? Are employees penalized?

• Who do you consider to be the most talented employees? Who are the most effective employees? Are they the same? Why or why not?

• Why do valuable employees leave the organization? Why do they stay?

• In what ways could work be structured differently for the benefit of both employees and the organization?

• Do employees have a forum for sharing their ideas, and are they encouraged to do so?


Catalyst Research

“When businesses

approach flexibility

proactively, they can

design flexible

arrangements that suit

the needs of both

the individual

and the business.”

How managers create and

support flexible work cultures

Clearly, workplace flexibility is more than a change inschedule. It is a way of thinking and working that seeksto help employees make their best contributions and simultaneously manage their personal lives. Companiesthat understand the business rationale, engage theiremployees in identifying innovative solutions, and create tools for managers and individuals will excelin this time of great change. The following tips are suggestions for helping managers create and supportthe most effective kind of flexibility.

• Learn about your company’s flexibility policies, programs and resources, and disseminate information to educate your employees about what is available.

• Develop strong and consistent messaging about flexibility as a work-effectiveness tool, communicating your organization’s support for flexibility.

• Initiate open, honest discussions about workplace flexibility and effectiveness with your team and empower your employees to suggest alternative ways of working to better address work/life needs.

• Evaluate management practices and challenge unspoken norms that reward “face-time” over results.

• Adapt organizational systems to ensure that performance is measured based on outcomes, not hours.

• Provide adequate organizational supports for managers and employees to work and manage more flexibly.

• Become a champion for working more flexibly and effectively. Demonstrate your commitment to improving work/life quality by role modeling smart ways to work.

Flexibility is about being creative and staying focused onwhat’s important. Organizations now have the challenge—and the opportunity—to use flexibility as a means toimprove outmoded work practices.

With offices in New York, San Jose, and Toronto, Catalyst is theleading research and advisory organization working with businessesand the professions to build inclusive environments and expandopportunities for women at work. For more information aboutCatalyst’s research, products, and services focusing on workplaceflexibility, visit www.catalystwomen.org to see our newly launchedwebsite. You may also sign up to receive Catalyst’s issue-specificnewsletter, Perspective, and monthly e-mail updates at [email protected].

Catalyst Research

PDJ

“Flexibilityshines the

spotlight on leadership capabilitiessuch as crystallizing AND communicating

priorities…and harnessing employee

talents to driveresults.”



Feature BMO

BMO’s People Strategy:

FORGING THE LINK BETWEEN

DIVERSITY AND BUSINESS OBJECTIVES

BMO’s People Strategy:

FORGING THE LINK BETWEEN

DIVERSITY AND BUSINESS OBJECTIVES


orging the link between strategy and people steers BMO FinancialGroup’s Human Resources’ mandate. This means that its peoplestrategies must clearly result in outcomes, which enable BMO tosuccessfully execute customer-focused business strategies.

BMO’s people strategies focus on the importance of talented,engaged and high-performing employees. Developing an equi-table and supportive workplace, which reflects the diversity ofthe communities in which BMO lives and does business, is anobjective that is explicitly aligned with strategic initiatives fromthe top.

The commitment to becoming a leader in establishing and sus-taining a diverse workforce and an equitable, supportive work-place was first articulated in 1989’s Corporate Strategic Plan. In1992, BMO initiated a Task Force on Employment of People withDisabilities to clearly identify the barriers facing employees withdisabilities. The report led to innovative action plans, which con-tinue to provide direction and focus to BMO’s efforts in creatingan equitable and supportive workplace.

Despite its progress, BMO carefully monitors its success on aregular basis. “Our commitment to create a diverse workforceand equitable, supportive workplace is part of the fabric of ourorganization,” says Rose Patten, executive vice-president humanresources and head, Office of Strategic Management.

“Basically, we’re trying to be a leader in creating a new corpo-rate landscape—a landscape that is equitable and accommodat-ing to persons with disabilities so that BMO can attract and retaintop talent, at every opportunity,” says Patten. “We insist onrespect for everyone and encourage all to have a voice.”

BMO has taken a number of steps to ensure success. In 1992, it appointed a vice-president of equity and employee

engagement to lead all of BMO’s workplace equity initiatives andestablished direct reporting relationships between this executiveand BMO’s most senior management group.

The CEO’s Council on an Equitable Workplace was establishedto support ongoing equity activities both within BMO and thecommunities in which it does business. Diversity Councils(employees organized by line of business) and Affinity Groups(employees organized by issue, i.e., blind and visually impaired,people with physical disabilities, and deaf, deafened and hard ofhearing) were created to raise awareness, foster dialogue andmodel inclusive behavior.

Working in partnership with BMO’s leadership, these groupsare fundamental to creating a fully inclusive environment.

Feature BMO Financial

F


Recruitment of top talentA goal identified by the 1992 Task

Force was to increase the number ofqualified job applicants among peoplewith disabilities. In order to recruit tal-ented employees, BMO engages in spe-cific outreach and recruitment activitiesto attract applicants with disabilities,working in partnership with communityagencies such as the National

Educational Association of DisabledStudents, Canadian National

Institute for the Blind, theCanadian Council on

Rehabilitation and Work andthe Canadian Hearing

Society. In addition, BMO partic-ipates in job fairs and

campus recruitment,also sponsoring andsupporting manyorganizations andevents.

In 2001, BMOwas the Gold spon-sor of the interna-tional conference“Inclusion by

Design,” which was afirst for a Canadian com-

pany. The movement isbased on the concept that

all products, environments andcommunications should be designed

to accommodate the greatest possiblenumber of users.

In 2003, BMO was an official corporatesponsor of the Abilities Fair, hostedby Future Abilities and CreativeEmployment. Other sponsorshipsinclude Chicago’s annual EmploymentFair for People with Disabilities, Terry FoxHall of Fame, People in Motion and theGreat Valentine Gala.

Workplace accessibilityAnother major goal identified by the

Task Force was workplace accessibility.The report recommended that BMO pro-vide workplace modifications, alternative

work tools and individual assistance,which would enable people with disabili-ties to compete and contribute equitablyand effectively to the business. Since1992, BMO has made significantprogress in workplace accessibility.

A Reasonable Accommodation Policygoverns BMO’s activities to provideaccommodation to enable employeesand applicants to contribute fully to theirsuccess. Employees/applicants work col-laboratively with the Office of Diversityand Workplace Equity to identify anyaccommodation required.

BMO’s dedication to workplace acces-sibility is reinforced by leading-edge stan-dards, “Beyond the Code,” which guideBMO’s nationwide efforts to accommo-date customers and employees withphysical disabilities in corporate and retailpremises. BMO is also working towardthe development of “talking” AutomaticBanking Machines (ABMs) to facilitatethe ease with which these machines areused. It is in the process of upgradingand replacing its current ABMs to makethem audio-ready.

To ensure BMO’s workplace is techni-cally inclusive, BMO established anAdaptive Technology Services (ATS)team. ATS’ mandate is to create a tech-nically inclusive, barrier-free environmentby establishing standards and processesand implementing systemic technicalsolutions. This innovative team wasawarded Profiles in Diversity Journal’sfirst place in the first-ever InternationalInnovation in Diversity Awards this year.

At the very heart of BMO’s ongoing ini-tiative to build a fully inclusive and sup-portive workplace and diverse workforceis an unwavering commitment toimprove the status of designated groupmembers. It is this determination thatenergizes the company, allowing it toreap the benefits of an engaged anddiverse workforce—and it’s called leading by example.

If you are interested in pursuing a position with BMO Financial Group,

Feature BMO Financial

PDJ

www.xerox.com/careers

Individually we’re different. Collectively we’re great.


At Xerox, we employ people of every race, creed, gender and nationality. Why? Because we believe that

individualism creates unity and breeds success. Just ask any of our 30% African-American, Latino, Asian and

Native American employees and they’ll tell you that our differences challenge us and free us from convention. Ready

to join professionals who are individually great and as a group unstoppable? Then you’re ready for a career at Xerox.


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AAccording to 2000 U.S. Census figures, there are more than35 million Hispanics in the United States, an increase of58 percent since the 1990 census, representing 40 percent of the total population growth from 1990 to 2000.

And that makes Hispanics the largest minority segmentin the country.

There’s plenty of research identifying their consumercharacteristics, buying power and cultural values. So thatbegs the question: Why wouldn’t you try to reach this market?

The answer, according to Annette Taddeo, presidentand CEO of Miami-based Language Speak, is largely a lack of understanding and education on the part of businesses.

“This bubble is growing so strongly, but it was onlythrough the 2000 census that the size and power of thisgroup became known,” she says. Four years later, many companies still haven’t digested the wealth of data that exists.

“It is sad to say that advertisers dedicate less than 5 percent of budgets to reaching this market,” she says,adding that’s a huge lost opportunity. Consider thatLanguage Speak, which provides translation servicesacross a spectrum of industries, has grown more than 200percent the last three years.

Hispanics represent $6 billion in purchasing power and75 percent of that demographic prefer to receive informa-tion in Spanish. That’s where marketing efforts can runinto trouble.

“Neutrality of the language is extremely important,”says Taddeo. “That’s the biggest misconception. Thereare 20 different countries represented in the U.S. Hispanicmarket. The largest majority is Mexican, so many peopleopt to market using Mexican Spanish. But if you do that,you are potentially alienating the remaining 19 cultures.Compare that to how news anchors sound on air. Youdon’t hear a specific New York or Boston accent. You heara neutral accent. That’s what you need to portray whentrying to reach Spanish-speaking people—neutrality.”

Reaching the Hispanic market

If you’re not actively targeting this population, you could be losing

big business

Sales / Marketing Hispanic Markets

Reaching the Hispanic market

If you’re not actively targeting this population, you could be losing

big business

A DIVERSITY OF GREAT TECHNOLOGY AND SOLUTIONS

STARTS WITH A DIVERSITY OF GREAT PEOPLE.

© 2004 Raytheon Company. All rights reserved. Raytheon is an equal opportunity, affirmative action employer and welcomes a wide diversity of applicants. U.S. citizenship and security clearance may be required.

At Raytheon, an inclusive culture is one of the things webelieve gives us a competitive advantage. By recognizingthe uniqueness of individuals, empowering employees,and truly valuing their input, our company consistentlyperforms beyond all expectations. It’s a philosophy we’llalways embrace. It’s right for people, and it’s right forbusiness. To learn more about opportunities withRaytheon, visit www.rayjobs.com

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We’re proud to feature Raytheon employees inour ads. To join them in a rewarding career, visit


Sales / Marketing Hispanic Markets

Consumer characteristics

By and large, most U.S. Hispanic households are youngerand larger than non-Hispanic households, with a medianage of 27.6 versus 37.2. And while the average U.S. non-Hispanic household has 2.5 children, the average U.S.Hispanic household has 3.4, according to Nielsen 2002Universe Estimates.

Hispanics are active in their community, socially oriented,prefer to travel and participate in activities in groups and arefamily oriented. Religion is a big part of their lives and theytend to maintain a strong connection to their Hispanic her-itage, embracing their culture through language, food,music and celebrations.

Education is a priority for Hispanic fami-lies and they tend to be hard working andentrepreneurial. While non-Hispanics tendto be more individualistic, Hispanicsembrace collectivism. The family comesfirst and group or family satisfaction ranksabove all else. They are conformist innature and tend to honor traditions andrespect authority.

Hispanic women are still the primarycaregivers, but increasingly they also aretaking on responsibilities outside the home.In fact, careers are now seen by Hispanicsas a viable option for women.

Purchasing power

Hispanics are interested in looking good and projectingstatus and those attitudes play into their buying decisions.The purchasing power of this demographic is projected togrow four times that of the rest of the population, from 51percent in 2005 to 126 percent in 2010, with even moredramatic increases in major markets such as Miami, Los

Angeles and Houston.Hispanics are extremely

loyal to brands. In fact,they are interested in buying the best and brand loyalty is a reflec-tion of their desire toachieve status and lookgood—60 percent ofHispanics state: “I’m willing to spend more toget the best,” accordingto research.

“Think about it,” says Taddeo; “whoever gets there firstis going to get that loyal business.”

Reaching Hispanics where they are

Spanish is spoken in 89 percent of U.S. Hispanic households, according to census figures. Of those house-holds, 75 percent prefer to receive communication in Spanish.

“Data shows that communication is more successfulwhen it is presented in Spanish,” says Taddeo. The problem with that is that you can’t always translate literally.

“Sometimes there is no way to get the literal translationof a product or service, so it’s essential to understand whatthe company is trying to portray and then say it in a

different way that still retains the meaning,”she says.

For example: a financial services firm wascrafting a direct mail piece promoting itsretirement services. Taddeo says that theSpanish synonym for retirement is retido.“This is acceptable, but Hispanics see‘retirement’ as a negative thing. The betterword is ‘jubilacion,’ which is a celebration ofthe fruits of your labor and more closelyaligned with the American meaning ofretirement. If you’re selling retirement funding, it’s important to understand howthis one word can convey something completely different.”

Research from Roslow Research Group shows thatamong Hispanics, Spanish-language marketing is 61 percentmore effective at increasing awareness; 57 percent moreeffective in message comprehension; and four-and-a-halftimes more persuasive than English-language marketing.

Marketers also should consider online marketing, sinceHispanics are among the fastest-growing group of Internetusers. Computer ownership among Hispanics grew 153 per-cent from 1997-2001, while computer ownership amongnon-Hispanics grew 100 percent during the same period.

Although they tend to be a little hesitant about buyingonline, research from AOL has found that a significant por-tion of Hispanic online consumers find online advertisinginformative (41 percent) versus U.S. online consumers (24 percent).

Of those surveyed, more than half (53 percent) of Hispanic online consumers who have ever made a purchase online report that they have recommended aspecific shopping Web site to a friend or family member.

The U.S. Hispanic market is largely underserved by marketing efforts, but a little research and smart marketingcould make this demographic a loyal and growing customerbase for years to come.

Annette Taddeo,

President and CEO,

Language Speak

Spanish-language

marketing is 61

percent more effective

at increasing

awareness; 57

percent more

effective in message

comprehension; and

four-and-a-half times

more persuasive than

English-language

marketing.

We know what’s important in your life.

When you’re shopping for the mostimportant people in your life,

you want brands you can trust.

That’s where we come in.

www.cheerios.com

www.pillsbury.com

www.bettycrocker.com

www.boxtops4education.com

www.greengiant.com

www.generalmills.com

www.yoplait.com


arge corporations are noteffectively using their work-forces, and they are losingrevenue and market sharepotential as a result. That’saccording to the results of anew study announced in

late September by Convergys Corp.(NYSE: CVG) and conducted bySaratoga/ PricewaterhouseCoopersLLP, in conjunction with the Universityof Michigan Business School.

Even though the U.S. LaborDepartment reports that the productivi-ty of American workers rose at an annu-al rate of 2.9 percent last spring, 84 percent of executives surveyed admit-ted they were unable to take advantageof their workforce’s full potential, andhalf of all HR executives acknowledgedthey did not have enough informationabout their workforce to remain competitive in their industry.

For the 2004 Convergys survey, morethan 300 senior executives in HR,finance and operations at U.S. andEuropean companies with revenues ofgreater than $1 billion were interviewed,both in person and via telephone, inMarch and again in August. In-personinterviews were all conducted withFortune “Most Admired” companies.

The results show that 65 percent ofcorporate executives surveyed saidthey face an increased demand for aflexible workforce to remain competi-tive in today’s global market. Despite

this awareness, the Convergysresearch showed that companies havetrouble retaining key talent, don’t havesystems in place to identify skilledemployees and aren’t providing moretraining and development for theirmost strategic employees—all factorswhich contribute to low productivity.

The Convergys 2004 “WorkforceAgility” study outlines the major obsta-cles companies face in maximizingtheir return on human investment(ROHI). For example, the corporateexecutives surveyed admit that gapsbetween workforce strategy and busi-ness strategy are common.

Moreover, the ability to mobilize theirworkforce to meet business demandswith speed, precision and agilityremains an elusive goal. When askedto describe their company’s ability toreallocate people to projects acrosslines of business or teams, more than45 percent of respondents rated theircompany as rigid, while only 16 per-cent rated their company as flexible.

Even companies that are known foremploying best practices estimate thatthey are overspending by at least 10percent on their workforce, yet theiremployees are underperforming by 10percent. As a result, companies couldbe leaving a significant percentage oftheir revenue on the table.

For example: For a $10 billion com-pany, a 10 percent decrease in work-force costs and a 10 percent improve-ment in productivity would represent

nearly $1.25 billion in annual savings.While these results point to the needfor financial discipline in overseeingHR, only 27 percent of companies inthe U.S. say they have a humanresources controller.

Most significantly, the Convergys2004 “Workforce Agility” study high-lights a real gap between humanresource needs and business goals,indicating that 55 percent of respon-dents claim that work structuredaround jobs versus skills and compe-tencies is a major barrier to optimizingtheir key talent.

In addition, 80 percent of senior exec-utives emphasized the need to focus onretention and development of theirstrategic employees and most skilledtalent. Paradoxically, less than 20 per-cent of HR executives rate their com-pany as highly proficient at either ofthese.

“Companies are beginning to recog-nize the need to put a stronger empha-sis on more strategic HR processes tomanage and retain key talent,” saysPhilip Fersht, senior analyst at YankeeGroup. “The tough business climate isdriving many medium-sized and largeorganizations to scrutinize how theymeasure, monitor and manage theirhuman capital.”

For more information about theConvergys “Workforce Agility” study,visit www.convergys.com. PDJ

LStudy shows companies are underperforming

and lack knowledge of workforce skills

Global Perspectives

New research shows workforceproductivity gains are

exaggerated

New research shows workforceproductivity gains are

exaggerated

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® Registered marks Blue Cross and Blue Shield Association.

As one of the nation’s leading health care benefits and insurance companies,we’re excited about the future and how we’ll get there. Our commitment to hiringthe best talent and developing strategic supplier relationships is key to ensuringour expectations come true.

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diversity journal sep/oct 2004

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