Value Proposition for Inclusive Leadership

The Value Proposition for Inclusive Leadership

What is Inclusion, Why does it Matter? Inclusion enables performance and growth. Inclusion is about managing how personal, cultural and organizational differences (Diversity) impact organisations. Differences can create both advantages and barriers. Therefore, in pursuing Inclusion we: Rigorously assess the real or potential impact of differences (diversity) on the performance of particular businesses or people. Intentionally seek, use and sustain those differences which can help us achieve our mission. Assess and remove any barriers to performance and opportunity that differences create. Inclusive leaders think strategically about differences. They act to optimise their impact, creating opportunities for the business and the people they lead. Freddie Alves

Do differences really impact Performance and Growth? Let’s think about Capability and Opportunity

The right Vision is limited by the Capability to Deliver it What we can do What we can’t do Understand and capture every important new growth market Continue to increase operational efficiency Integrate new acquisitions, retaining top talent Gain community support for new investments FOR EXAMPLE CAN WE

The best Talent is limited by the Opportunity to Contribute Feel treated in ways which they find respectful and motivating Have their ideas for improvement taken seriously Have a chance to give input before decisions are made Get growth opportunities in line with their results FOR EXAMPLE DOES EVERYONE What we can do What we can’t do

Differences can Create or Constrain our Capabilities Depending on whether we are Using Differences to Enhance Performance Allowing Differences to Limit Performance B O U N D A R Y What we can do What we can’t do

So much for the Concept... How about specific examples?

Differences hurting Performance Using Differences to Enhance Performance Allowing Differences to Limit Performance Diverse teams where conflict prevents them from meeting expectations Stereotypes preventing the recognition of the complete pool of future leaders Not recognizing the opportunities created by diverse customer needs One size fits all work practices leading to attrition of top talent Cultural insensitivity creates inability to operate successfully in new locations An insular view preventing us capitalizing on ideas from the outside Barriers to learning and improvement across functions and geographies Failure to optimize acquisitions and retain key people Strategic planning inaccurate, lacking diversity of experience What we can do What we can’t do EXAMPLES B O U N D A R Y

Differences helping Performance Using Differences to Enhance Performance Allowing Differences to Limit Performance Using cultural knowledge to preferentially capture new customer segments Leveraging knowledge of role preferences to improve team performance Using inputs from all levels to create better operational solutions Seeking challenging peer reviews to validate our concepts and perspectives Using global “focus groups” to validate new business concepts and language Supporting differing work arrangements to encourage sustained performance Understanding host community norms, helping effective partnerships Improving decision making by tapping different approaches of team members Maintaining diverse external connections to generate a broad world view What we can do What we can’t do EXAMPLES B O U N D A R Y

Inclusive Leaders can move the boundary Using Differences to Enhance Performance Allowing Differences to Limit Performance B O U N D A R Y

And the impact they have…... Allowing Differences to Limit Performance Using Differences to Enhance Performance What we can do What we can’t do Is to create greater capability to grow and perform. B O U N D A R Y

How can a Leader Drive Progress in this area? By treating this as a strategic business issue. By recognizing that some aspects of this issue will be unfamiliar and that learning will be required. By investing in a credible assessment of the opportunities and challenges specific to their unit. By using familiar management tools to highlight what’s important and then acting . By holding people accountable for change and also investing to build their capabilities By recognizing that many issues are addressed through changing behaviors, not processes and policies. Role model behavior is key.

Using Differences relevant to Task to build Capability In almost every business situation, having a team with members who are different from one another in particular ways will make it more likely that the mission can be accomplished. The differences most relevant to the mission are a unique aspect of the kind of team a leader is accountable for. The differences most relevant to an R&D unit will almost certainly be different from those for a call center, a manufacturing site or an IS support function. Having identified the differences most needed, the leader needs a strategy to source, use and sustain them within their unit.

What could a leader work on with their team? Review team’s mission and success factors Identify differences linked to success Map the impact on performance and the task relevance of specific differences. Highlight opportunities and challenges around diversity and inclusion. Make changes, including those involving behaviours. 1 2 3 4

Let’s Look at an Example Imagine a hypothetical R&D team assessing this issue. What might the process look like? Remember - This is purely hypothetical and simplified. It’s the approach that counts, NOT the specific factors or relationships used.

Define the unit’s Mission * Creative ideas, Different Perspectives, Experimental Techniques 1 and Success Factors To create a new family of materials that complement the products in other ‘growth platforms’. Understanding of existing products Leveraging External Ideas Optimized Team Processes Team Motivation and Commitment Multiple Approaches to delivering a Solution*

Relate Success Factors Team Role Preferences External Connections Thinking style Product Knowledge Nationality Job Family Experimental Methods Used Complete List H L H High relevance/impact L H H H M M - - H H L - - L - - L M - L - L M M M - - - L L - H - M Moderate relevance/impact L Low relevance/impact - No relevance/impact 2 To Team Differences Understanding of existing products Leveraging External Ideas Optimized Team Processes Team Motivation and Commitment Multiple Approaches to delivering a Solution*

Map out Impact on Performance Positive Neutral Negative Low Relevance to Task High Relevance to Task Impact on Performance 3 and Task Relevance

Accurate assessment of the current impact of differences Many teams may find this the most challenging part of the process. A form of cultural ‘audit’ is required to assess the impact of differences. Depending on the approach, this can provide a tremendous opportunity to create dialogue among leaders and employees. Skilled help may be needed at this point. A unit or site Diversity team could play a key role in the ‘audit’. Data / Perspective sources could include: Employee survey data and follow up focus groups 360 feedback data Employee networks and employee representatives Customer and peer feedback Team building and performance improvement workshops Unit leadership team, function / job family networks

What might this team want the map to look like? Positive Neutral Negative Low Relevance to Task High Relevance to Task Impact on Performance At worst, those differences thought to have low task relevance should have a neutral impact on performance. Those differences thought to have high task relevance should be managed in a way that they have a positive impact on performance. 3 Gender Physical Ability Work Preferences Race Language Age Nationality Job family Education Thinking style Academic Focus Experimental Methods Used Product Knowledge External Connections Past Experience Team Role Preferences

But..what might the team see as the real situation? 3 Positive Neutral Negative Low Relevance to Task High Relevance to Task Impact on Performance Thinking style Product Knowledge Age Nationality Job family Team Role Preferences Education Gender Physical Ability Work Preferences Academic Focus Experimental Methods Used Race Language Past Experience External Connections

Highlighting opportunities and challenges around Differences Positive Neutral Negative Low Relevance to Task High Relevance to Task Thinking style Team Role Preferences Impact on Performance Age Nationality Job family Age Nationality Job family Thinking style Team Role Preferences Product Knowledge Product Knowledge 4 Three low-relevance differences among the team are negatively impacting performance - they are currently creating barriers to team member contribution. Three higher relevance differences are not having the expected positive impact - they are currently limiting the units capability to deliver on it’s Mission.

Planning for Improvement In this case, the performance of the unit can be enhanced by acting on the two types of difference issues identified: Barriers to Personal / Team Performance Missing / Untapped Team Capabilities The leader can now work with the team using familiar elements of change management: Create the desire / rationale for change Build people’s awareness and capability Create expectations and measures Role model inclusive behaviours and hold other people accountable for behaving in similar ways 5

Inclusive Leaders can move the boundary Using Differences to Enhance Performance Allowing Differences to Limit Performance B O U N D A R Y And create greater capability to grow and perform. Final

Value Proposition for Inclusive Leadership

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