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Council Perspectives Insights from The Conference Board Diversity and Inclusion Councils

Diversity & Inclusion Global Challenges and Opportunities

Diversity and Inclusion Global Challenges and Opportunities

CP-014 2009

Council PerspectivesTM

Members of The Conference Board Councils are among

the most experienced and savvy executives in the world.

Their private deliberations produce rich insights on the

most challenging business and societal issues of our time.

With their permission, we have channeled their energy and

expertise into a platform to voice their views—that platform

is Council Perspectives.

Council Perspectives is based on sessions from selected

Council meetings, post-meeting interviews, and other

pertinent data, and may sometimes include original content

written by Council members. It is not intended to be a

research report; rather, Council Perspectives provides a

unique look into the minds of executives from leading

global organizations as they assess, analyze, and develop

ways to address critical issues.

Diversity and Inclusion Global Challenges and Opportunities

by Charles Mitchell and Stephanie J. Creary

Contents

5 Creating a Diverse and Inclusive Workplace around the World 5 Achieving a Global Mindset

6 Regional Challenges

10 Building an Effective D&I Function 10 Taking a Business Perspective

12 Linking to Other Functions across the Organization

14 Building a Pipeline of Future D&I Leaders

16 Managing through the Tough Times

19 Moving the Profession Forward: Metrics and Next Steps

22 About This Report

To better capture the dynamics of collaboration among council members, The Conference Board employed a graphic facilitator to illustrate in real time the topics and ideas that flowed from the discussions. The graphics that accompany this report “map” participants’ conversations and reflect the patterns they saw and connections they created between ideas.

This “World Café” graphic, which is based on a series of breakout sessions, underscores the importance of cultural competency as an attribute for D&I professionals and highlights the subtle challenges and issues they face on a region-by-region basis when they try to implement a global diversity program.

Artist: Brandy Agerbeck of loosetooth.com (www.loosetooth.com)

C o u n c i l P e r s p e c t i v e s - D i v e r s i t y a n d I n c l u s i o n : G l o b a l C h a l l e n g e s a n d O p p o r t u n i t i e s T h e C o n f e r e n c e B o a r d 5

For diversity and inclusion (D&I) professionals, the chal-

lenges of building a diverse and inclusive workplace—

both region by region and globally—can be daunting.

Participants at the global joint meeting of The Conference

Board Diversity and Inclusion Councils spoke in broad

terms about the need for a global mindset, and they

offered specific suggestions for how to achieve it.

Achieving a Global Mindset There is no single globally accepted definition of “diver-

sity.” Depending on the region of the world you operate

in, it may connote issues of race, ethnicity, nationality,

class, language, age, gender, sexual orientation, income,

social class, physical ability, religion, or learning style. It

may include all of these or none of them.

For a diversity and inclusion strategy to be truly global,

D&I professionals need to understand the culture, poli-

tics, economics, and relevant legislation within the

regions in which their businesses operate, all of which

underscores the critical importance of being culturally

competent. More broadly, they should concentrate more

on the development of a global mindset and an interna-

tional perspective and put less focus on exporting strate-

gies that may work in one region but are irrelevant or

ineffective in another. Creating a global movement

requires diversity professionals to have experiences and

interactions with people outside of their home country

and their own comfort zone.

Taking diversity and inclusion global is not about the

export of specific programs, but about creating a move-

ment and infusing energy into a global corporate value

system that holds diversity and inclusion as a fundamental

tenet. A critical issue that D&I professionals struggle with

is how to keep the uniqueness of their national culture and

still address the shared goal of embedding diversity and

inclusion into day-to-day operations.

While each organization faces a unique set of challenges

because of differing levels of D&I maturity, variances in

corporate culture, and the number of countries involved,

there are also crucial commonalities. Regardless of their

industry or sector, all companies must address a lack of

equity around the world; there is also still a great deal of

misunderstanding about how to define, leverage, and

measure diversity and inclusion.

Diversity and inclusion programs that are initiated and

managed from the headquarters country, especially the

United States, often face resistance. They are routinely

dismissed by employees as having no relevance to their

business, and a “Made in USA” label often raises a red

flag for international employees.

Given all of these factors, D&I professionals who seek to

spread their message globally should keep the following

thoughts in mind.

Listen and don’t dictate Avoid the common urge to tell

people how to do it. Instead, ask them how they think it

can best be done.

Think about the terminology Is it relevant for people

outside the headquarters country? For example, the term

“minority” is considered U.S.-centric and may mean little

to employees outside of North America.

Stop underestimating the complexity of being global

Even such basic tasks as gathering baseline data may

prove difficult or even impossible. There are different

legal frameworks that do not allow affirmative action or

the ability to track age, race, nationality, etc.

Establish a global mindset It really is about a global

way of thinking rather than a personal definition of diver-

sity.

Create a minimal framework that is driven by a

global definition of diversity and inclusion but also

highly localized One analogy: while all versions of the

television show Who Wants to Be a Millionaire? share the basic framework of the original version from the United

Kingdom, each has been made locally specific through

unique decisions about the value of the prizes, the nature

of the questions asked, and the types of contestants that

are selected.

Be aware that solutions imposed from outside won’t

always be effective D&I executives should open a

conversation that lets others come to the “aha moment”

themselves. To be engaged, locals need to feel that they

own the initiative.

Look for progress, not perfection How long did it take

the United States to progress? Other countries and cultures

can’t be expected to get there in 24 hours.

Creating a Diverse and Inclusive Workplace around the World

Challenge yourself Incorporate what you can learn from

the rest of the world into your own home country pro-

gram. We all have a lot to learn.

Regional Challenges The different dynamics and definitions of diversity and

inclusion around the globe have raised the profile of cul-

tural competency and the importance of an executive’s

ability to do business effectively in any market, in any

business, and at any time. Political and economic con-

texts inform what goes on in the corporate sphere in any

geography. Presenters at the joint council meeting high-

lighted the subtleties that can have an impact on diversity

and inclusion in a number of regions.

Asia Economic differences It’s about the haves, the have nots,

and the have-a-lots.

Rapid technological change In terms of technology, the

region leapfrogged into the twenty-first century. Think of

the Indian rice farmer with a cell phone.

Regional differences Asia needs to be dissected on a

country-by-country basis. Even subregional clusters have

vastly different cultures with different D&I issues.

A mobile workforce Across all regions, the workforce is

globally aware and increasingly mobile. In fact, there is a

reverse brain drain from the West to the East.

“Post-Americanism” The region is moving on without

the United States and is proud of it, which can have an

impact on the implementation of a D&I program seen as

originating in the United States. America is no longer the

country that prescribes behavior.

Corporate culture versus national culture Japanese

women, for example, often join multinationals because

they believe they will be more respected and appreciated

than in a Japanese company bound by traditional Japanese

behavior and attitudes.

Communication patterns Getting people who live and

work in the region to support diversity and inclusion efforts

is a challenge, but if you don’t know what an East Asian

is thinking, you probably didn’t ask. The skill is in asking

the right question and perceiving the unspoken rules (e.g.,

the decision maker is not the one who talks the most; it is

often the one who talks the least).

Canada The Employment Equity Act The purpose of the Act,

which was passed in 1986, is “to achieve equality in the

workplace” for women, visible minorities, people with

disabilities, and members of aboriginal communities. The

act, however, only covers federally regulated employers

and contractors. It also does not cover other minorities,

such as the country’s LGBT population. Unfortunately,

women are also not advancing as fast and as far as

expected.

Corporate social responsibility (CSR) CSR is an

increasingly important factor for employee engagement.

The integration of D&I into business practices

Diversity and inclusion cannot be a stand-alone initiative,

and it must be embedded into the business. The current

focus on the bottom line also means that attention has

been taken away from diversity and inclusion.

Middle managers Downshifting of responsibility and

work overload can make it difficult for these leaders to

see the value of diversity and inclusion.

Additional challenges Problems associated with having

two official languages, the fact that a forecasted talent

shortage is delayed, and the difficulty of collecting data

on newly arrived immigrants and on the representation of

employment equity target groups.

Europe A shift away from the West As Western European mar-

kets become more mature, the immigration flow out of

Eastern Europe is reversing, causing a labor shortage in

some Western European countries.

Birth rates Several Western European nations have

dipped below replacement level for births.

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Gender This is an issue in the region, but not for all

countries. Internal regions are also very split on this

issue.

Race Again, the importance of race as an issue varies

from country to country, often depending on the history

of immigration in each nation. In some countries, the

debate is more about national origin or language issues,

while in others the treatment of locally born ethnic

minorities is the hot topic.

Resistance to D&I programs U.S. D&I programs are

typically revised for local conditions, but that is changing

because of resistance and relevance. Europeans often

dismiss U.S.-centric D&I programs based on gender and

race.

Consumer diversity In Europe, diversity and inclusion is

more about internal talent and less about consumers, but

that is changing.

Market differences Each geographic market in Europe

represents a unique entry point for diversity and inclusion.

The different national laws and cultures make it a

minefield.

Latin America Political context Democracy has grown across the region

virtually uninterrupted during the last 25 years or so.

Latin America also has two sitting presidents who are

women—Michelle Bachelet of Chile and Cristina

Fernández de Kirchner of Argentina.

Race This is still a difficult topic to talk about. As

more and more Latin American companies become

multinationals, the focus tends to shift to gender and

generational issues.

Religion While 80 percent of the population is Christian

(predominantly Roman Catholic), Evangelical and

Pentecostal movements have taken hold in the last 15

years, making this a growing diversity issue.

Income diversity When it comes to inclusion, there is

rampant discrimination and prejudice against low-income

people. Ensuring that low-income workers are treated

with dignity and respect would be a revolutionary step.

Even if the income gap is not addressed, greater respect

would be a step forward. Still, despite low incomes, the

region is a growth market, and 250 million low-income

Latin Americans have purchasing power of $120 billion.

Class This issue still trumps race in Latin America.

United States Demographics The United States is a first-world country

with some hints of third-world demographics when it

comes to poverty and birth rates in certain population

sectors.

Immigration One in seven workers is foreign born, and

12.5 percent of foreign-born workers have master’s

degrees, compared to 8 percent of the native population,

according to the U.S. Census Bureau.

Women According to Department of Labor statistics,

women currently represent 46 percent of the total labor

force, and 40 percent are working in management, pro-

fessional, and related occupations.

Multiple generations in the workplace Baby boomers

are staying on the job longer, which is creating a bottleneck

and leaving Generation Xers and millennials frustrated.

Reverse discrimination

Demographic shifts By mid century, the United States

population will be more than 50 percent non-majority.

Who is the consumer of the future? Who are we selling

to outside of our traditional customers?

A “postracial society” With the election of President

Barrack Obama, some are saying the United States has

entered a “postracial” era, and diversity and inclusion

doesn’t need to exist as a function.

Lesbian, gay, bisexual, and transgender issues These

concerns are increasingly receiving more attention.

Going Global at Diageo Diageo is a global leader in the premium drinks market and trades in more than 180 markets, employing more than 22,000 people around the world. Headquartered in the United Kingdom, its shareholding is about evenly split between the United Kingdom and the United States. At the 2009 Corporate Diversity and Inclusion Conference, Cherie Sheridan, director for learning and development at Diageo, North America, Inc. provided insight into the challenges and strategies needed to launch a successful diversity and inclu- sion program on a global scale.

Diageo’s diversity and inclusion initiative was founded on the principle “that every employee has potential and that by cre- ating the conditions for them to grow will improve Diageo’s business performance.” Launched in North America in 2007, this program was expanded globally to all people managers in 2008, beginning with a pilot program in London that included participants from Africa, Brazil, UK, Spain, and Sweden.

The drivers and goals for the Diversity & Inclusion program have always been aligned with Diageo’s broader perform- ance objectives and contribute to business growth. The drivers and goals included:

• Changing demographics

• War for talent

• Increase employee engagement

• Create an authentic work environment

• Consumer insights

• Increase our support to minority suppliers

• “Simply the right thing to do”

Developing the program Diageo learned valuable lessons through the design, content development, and delivery process of the initiative that are relevant for any company wishing to embark on a global diversity and inclusion journey. Among them:

Design Form a global planning team:

• Conduct interviews with primary stakeholders in advance to create relevant case studies and opportunities for discussions

• Ensure that you understand any legal obligations and compliance issues that may affect the material being presented

• Be aware of significant events taking place in the country

• Pay attention to the fact that the organization’s culture may be stronger than some aspects of the country’s culture

• Provide opportunities for leadership to prepare their lift/elevator speeches

• Educate the team

• Choose an external consultant for subject matter expertise

• Establish global definition of diversity and inclusion

• Create a Global Facilitators Network

• Communicate

Content • Simulations: adjust simulations to reflect cultural norms

that will likely be present in the audience.

• When defining multiculturalism or diversity, provide opportunities for participants to define what they see as the primary challenges within their corporate culture.

• You must have examples of success factors that can be directly tied to diversity of perspective, people, approaches, etc., which can be presented to the group to build the rationale for the business case.

• When questions, conflicts, and concerns arise that are in stark contrast to cultural norms, it is important to link all learnings to the core values of the company.

Delivery Pilot Programs: Outside of the United States

• Language impact: Be mindful of the fact that when people are learning in a language that is not their native tongue, it requires a far greater degree of concentration and energy to successfully navigate the materials.

• Provide opportunities for action planning.

• Materials: Reduce the amount of material you have in your headquarters version, because everything will take much longer due to language, translation, etc.

• Use multicultural teams to deliver messages.

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In addition to the role of the D&I professional, the diversity and inclusion function is changing due to rapid technological advancements, global- ization, immigration, increased demand for skills and education, and an aging workforce in much of the world. The emphasis today is on cornering new markets, building effective and efficient global teams, and managing brand reputation. Clearly, the twenty-first century D&I practitioner who will embrace this more public, decidedly strategic role will require a challenging new set of competencies.

This graphic captures attendees’ ideas about the evolving role of the diversity practitioner, the new competencies required, and both the strategy and the tactics needed to implement a global D&I program.

Artist: Brandy Agerbeck of loosetooth.com (www.loosetooth.com)

Although participants spent significant time examining

the external challenges to the creation of a diverse and

inclusive workforce, their discussions also addressed the

organizational challenges diversity and inclusion profes- sionals face. Through these conversations, participants

were able to identify four actions that are critical to

ensuring that the D&I function has impact and adds

value:

1 Ensure D&I takes a business perspective

2 Link D&I to other functions across the organization

3 Build a pipeline of future D&I leaders

4 Sustain momentum during tough economic times

1 Taking a Business Perspective The days when D&I programs could get by as “add-ons”

or as simply “the right thing to do” are gone. Executives

want to know that D&I professionals understand the busi-

ness and can customize a diversity strategy that helps the

organization and specific departments accomplish their

strategic goals. Leaders also want to have confidence that

D&I executives can deliver a plan that works for the

whole company.

D&I is a business function One fact the current global recession has taught execu-

tives is that there is nothing like an economic downturn

to sharpen company focus and priorities. Many organiza-

tions are waging battles on multiple fronts. In addition to

an external conflict with competitors for markets, capital,

and, in extreme cases, survival, there is an internal strug-

gle between functions for attention, resources, and

recognition.

Another certainty that is emerging from the economic

rubble of the current recession, which is the worst in two

generations, is that the role of and the conversation about

diversity and inclusion has changed for good. And,

according to many professionals in the field, it’s about

time. The diversity and inclusion role is now more than

ever a business one and the function needs to operate

accordingly if it wants respect, resources, and the atten-

tion of potential partners and collaborators. To be inte-

grated into business functions, D&I executives must not

only align themselves and their function with corporate

strategy, they must also strive to influence that strategy.

Wanted: A new model of D&I leadership Persistence and passion are the recognized hallmarks of

diversity executives, but a different business environment

and the demands of being a global business partner require

more than these two admirable qualities. Today, change

management is at the heart of the D&I function, and it

is mandatory for the alignment of D&I priorities with

business objectives. With corporations developing new

directions and strategies every three to five years, the

ability to redirect change—something D&I executives

do all the time—can support evolving business objectives.

Diversity executives should recognize this quality and

flaunt it within the organization.

D&I executives also need to move away from measuring

their worth by “activity.” The mindset needs to be about

strategy and impact. You need to look at diversity and

inclusion in a vastly different way. It is a whole new ball

game, and if you don’t change your game, you will sim-

ply not be invited to play. Stop focusing on “how busy

you can be” and “making lists,” and instead place the

focus on D&I’s impact on the business, both in the short

and long terms. The case for diversity has to start with

the needs of the company, an understanding of how the

customer is changing, and the ability of D&I executives

to meet those needs down to the business unit level.

A new role for D&I executives: Business strategist As part of the shift in the definition of the diversity and

inclusion function, D&I executives must become solu-

tions providers. They need to be able to help their compa-

nies think more broadly when they enter new markets,

build high-functioning global teams, and look for ways to

enhance corporate brands and reputations. If the function

can prove its ability to meet important challenges, senior

management and business units will begin to consider the

D&I department a strategic partner. This is already hap-

pening in those companies where the value of D&I has

been clearly formulated and publicly stated.

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Building an Effective D&I Function

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In the role of business strategist and consultant, D&I

executives must clarify the definition of diversity and

inclusion within their organizations. More important, they

must learn about the business from the perspective of the

mangers they hope to convert. The basic lesson here is that

you must know the business before you expect business

mangers to understand the value of diversity. An enhanced

understanding of the entire organization will help D&I

professionals clearly and specifically communicate their

plans and define what winning means for the business

in practical terms. Useful questions to ask during this

learning phase include:

• Are we valued in our business organization for what we contribute to the bottom line?

• Do we have a solid value proposition and business case that can be measured in terms C-suite functions

understand? Are we delivering on it?

By gaining a genuine understanding of how business

units operate, D&I executives can change the perception

that diversity and inclusion is an imposition and reinforce

how it has to become a part of the corporate culture. This

is especially needed at the business unit level, where

resistance to D&I initiatives can be higher.1 Major proj-

ects should include the integration of diversity and inclu-

sion into the company’s operations so that it influences

all aspects of the organization and the creation of a com-

mon organizational language around diversity and inclu-

sion. If the company’s D&I ethic becomes part of

day-to-day operations, it never leaves.

The importance of courageous communication Courageous conversations, crucial conversations, coura-

geous communication, critical interventions—regardless

of the term, D&I executives must tackle the tough issues,

ask the hard questions, and force organizations to con-

front weaknesses or address subjects they would other-

wise choose to avoid or ignore. Their task is to move

beyond the paralyzing cordiality that sometimes infects

companies, especially in good times, to address issues

about performance and relevance that run the risk of

offending the powers that be or creating the impression

that the D&I function is not a team player. Diversity and

inclusion executives must also reach across functions to

engage individuals who may have previously found

excuses not to talk about diversity and inclusion.

Courageous communication means finally tackling

those issues that are frequently talked about but never

acted upon.

If D&I executives are to challenge the perspectives of

others, they must be willing to subject themselves to the

same rigorous analysis. D&I leaders should consider the

times when they were able to speak out and the times

they did not. As a D&I champion, you simply cannot

stand by when you see things that are not inclusive or see

people making decisions that are counter to the values of

your corporation. Don’t assume that your reality is some-

one else’s reality. Be courageous and speak up. Challenge

others’ perspectives.

1 For a discussion of the D&I role of middle management, see “Middle Managers: Engaging and Enrolling the Biggest Roadblock to Diversity and Inclusion,” The Conference Board, Executive Action 234, April 2007, which is based on discussions at a November 2006 meeting of the Diversity Business Council.

Tips for Expanding the Role of Diversity and Inclusion D&I executives should:

• Be flexible, aware, and resilient

• Be good listeners

• Actively manage risk, acknowledge the economic downturn, and work to get people on their side

• Be practical and make business sense

• Understand and appreciate the current crisis

• “Select and direct” and focus on the human element

• Always relate D&I to the business and emphasize ties to business outcomes

• Persuade partners that their business needs are driving the agenda

• Maximize the function’s role as a strategic talent manager

Don’t fight the system — work with it In the past, diversity and inclusion was often viewed as

a problem that needed to be fixed. Today, such a mindset

will only make D&I that much harder to embed within

the organization. With companies and CEOs demanding

more engagement, more innovation, and more productiv-

ity, diversity and inclusion needs to be seen as part of the

solution. And as D&I executives know, and other busi-

ness managers are beginning to learn, you get better

business decisions when you have diverse perspectives

in the room.

D&I executives need to redefine diversity in a much

broader context. Business leaders are all about innovation

and growth, and D&I executives need to talk that talk. If

you use the old language of diversity based on an out-

dated model of an emotive experience and qualitative

measures, you are probably not aligned with the rest of

the organization. If it is not tied to the business agenda,

diversity and inclusion becomes “a nice thing to do.” If it

does not translate into growth in the business, it becomes

a secondary priority. Alter the perception from cost center

to profit center, tie diversity and inclusion to cost savings

(higher retention rates), productivity gains (a more

engaged workforce), and revenue growth (new markets).

2 Linking to Other Functions across the Organization As part of its effort to demonstrate the real value of

diversity and inclusion to an organization, the D&I func-

tion must partner or work directly with other departments

and programs. D&I professionals at both the global diver-

sity councils meeting and the Diversity and Inclusion

Conference cited four key areas where a robust and busi-

ness-focused D&I program can show its contribution to

overall corporate success.

Marketing: Offer insights into the needs of the new consumer What is an essential role in today’s corporation and eco-

nomic environment? The answer often depends on the

customer. Essential roles are those that connect to the

customer, build relationships with them, and, in the end,

add shareholder value. If diversity and inclusion is not

operationalized to be part of essential roles in the busi-

ness, then it will be on the outside looking in. If it’s not

in the annual operating plan, it is often considered

nonessential.

Recent demographic and labor shifts give D&I a new

opportunity to help organizations who are expanding

their operations around the world. These developments

are enablers of global growth. For example, according to

national population projections released by the U.S.

Census Bureau in August 2008, the U.S. minority popula-

tion is expected to account for more than half of the total

U.S. population by 2050, and their economic buying

power will only continue to grow.2 Birth rates in Italy,

Spain, Germany, and Japan are all below replacement

level, signaling a worsening labor shortage in the future.3

India is projected to have 47 million surplus workers by

2020.4 D&I executives of global companies offer unique

insights that can help their companies develop a deeper

understanding of these future markets and the behavior of

customers in them. It is up to D&I executives to provide

marketers with a perspective on why an insight is an

insight. It’s not just about how consumers shop, but

rather how they live.

Innovation: Act as a source for new talent CEOs are clamoring for more innovation and are striving

to build a culture of innovation within their organizations.

The notion that diversity not only supports innovation,

but can drive it, especially on an incremental scale, is

held not only by D&I executives, but also by those

charged specifically with the task of leading innovation.

At a February 2009 meeting of The Conference Board

Council on Innovation, council members repeatedly noted

the importance of diversity to their function, especially in

the formation of global innovation teams and the hiring

of staff. One of the goals of the council is to get people

within their organizations and their function more excited

about the link between diversity and innovation.

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2 Source: 2008 National Population Projections, U.S. Census Bureau (www.census.gov/population/www/projections/ 2008projections.html).

3 Sources: Euro-Mediterranean Statistics, Eurostat, 2009, p. 24 (Italy, Spain, and Germany); Statistical Handbook of Japan 2009, Statistical Bureau, Ministry of Internal Affairs and Communications, p. 15 (Japan).

4 Source: Tradeable Labor: A Tide That Will Not Be Turned Back, The Boston Consulting Group, 2004, p. 4.

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The diversity mindset is especially important in the hiring

process. Members of the Council on Innovation said that

companies should be open minded and adventurous when

a candidate has a diverse or nontraditional background.

They may not fit the existing mold, but they often bring

different viewpoints that can lead to solutions others

might not have considered. When it comes to innovation,

you have to have disruptors—people coming from differ-

ent angles, different mindsets and viewpoints—to be suc-

cessful. It is part of the D&I executive’s role to make

sure those candidates are in the pipeline and are directed

to the functions that need them the most. D&I executives

must ensure that people with nontraditional viewpoints

are involved in work teams throughout the organization

and that these teams are open to mavericks.

Employee engagement: Take the pulse of the organization Employee engagement is defined as a heightened emo-

tional and intellectual connection that an employee has

for his or her job, organization, manager, or coworkers

that encourages him or her to apply additional discre-

tionary effort to work. There is clear evidence that

employee engagement is related to performance and pro-

ductivity levels at individual, team, and organizational

levels. For example, research shows that companies with

high employee engagement had voluntary turnover rates

one-half that of average employers.5

The “inclusion” element of D&I is all about employee

engagement and effective team building. Employee

resource groups (ERGs) are a valuable tool for both

increasing employee engagement and demonstrating

the value of diversity and inclusion to growth and

revenue. Companies that have made ERG members a

prominent part of their organizations are able to offer

employees the opportunity to be heard and make tangible

contributions to the revenue line. ERGs should be lever-

aged as inputs into the marketing and design functions,

and their contribution must be communicated across the

organization. ERGs themselves should concentrate on

adding value to the business and aligning their activities

with business objectives. (For examples of successful

ERGs, see “How ERGs Can Make a Difference: Reports

from the Frontlines” on page 14.)

The employer brand: D&I can help spread the word Many companies do not know how to market themselves

as employers. They undervalue the importance of the

employer brand and are unaware of the potential contri-

bution that diversity and inclusion can make to the

impression that their company is an employer of choice

in a global talent market.

Just as a corporate brand embodies a company’s values

and value proposition for customers, an employer brand

establishes the identity of a company as an employer.

Employer branding may be especially important for com-

panies that face difficulties in establishing strong product

brand images (e.g., organizations that sell their products

or services to other companies and lose much of their

product brand identity before reaching end users).6

Unfortunately, the link between diversity and inclusion

and the employer brand is often overlooked. Instead of

leaving it to the communications and human resources

departments, D&I executives need to develop their own

“marketing plan” that outlines the function’s contribution

to being an employer of choice. The case for diversity

has to start with the needs of the company, and one of

those needs is an effective talent management program

that hinges on a strong employer brand and an effective

recruitment and retention strategy.

Companies that have successfully embedded diversity

and inclusion and can demonstrate that it provides career

opportunities for all its employees are able to leverage

diversity and inclusion as a real differentiator in the talent

marketplace. A strong employer brand, which includes a

demonstrable commitment to diversity and inclusion,

ensures that the talent needed for global growth will be

available.

5 John Gibbons, Employee Engagement: A Review of the Current Research and Its Implications, The Conference Board, Research Report E-0010, 2006, p. 12.

6 Nathan Ainspan and David Dell, Engaging Employees through Your Brand, The Conference Board, Research Report 1288, 2001.

3 Building a Pipeline of Future D&I Leaders A survey of attendees at the global council meeting found

that 60 percent of participants had been in their current

role for three years or less—a statistic that raises several

questions:

• What is being taught to the next generation? Is there knowledge transfer so that future leaders can sustain

the gains that have already been made?

• What will the fallout be if there is a failure to focus on knowledge transfer? Will this mean that the momentum

gained over the past 20 years will be lost?

• Are current teaching methods and approaches relevant? Is the new wave of D&I professionals

confused by what is being transferred?

• How do current D&I leaders transfer competencies to themselves? How do we develop these competencies in

future D&I practitioners?

To keep the profession moving forward, knowledge must

reside in the process and not in a single person. To that

end, organizations must ensure that the institutional mem-

ory, the experience, and the knowledge of longtime D&I

executives are effectively transferred to the new leaders.

To help companies thrive and keep the momentum going,

D&I executives need to focus on managing and transferring

knowledge and adapt their programs to different learning

styles. (A Competency Model for D&I Practitioners, a 2008 report from The Conference Board, lays out a com-

prehensive framework for developing future D&I leaders

that has already been adopted by a number of leading

companies. See “New Competencies for a New Era” on

page 15 for a discussion of the framework’s components.)

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How ERGs Can Make a Difference: Reports from the Frontlines Presenters at the annual Diversity and Inclusion Conference held by The Conference Board cited numerous examples of how ERGs have helped identify and solve product, human resources, and marketing challenges.

• A Latino ERG at a large global food and consumer goods company provided valuable advice on introducing a successful product line from Mexico to Latino ethnic consumers in the United States. The U.S. version of the product line has been a great success from day one.

• A pharmaceutical company used an ERG centered on people with disabilities to identify flaws and offer sug- gestions about how to improve a medical testing and injection product, which provided insights that the devel- opment team had failed to consider in its original design.

• One company was baffled by the relatively rapid turnover rate of high-potential Asian employees brought to its U.S. headquarters. In many cases, the troubles surfaced after only a few months. The company’s Asian employee ERG was able to identify a major issue, which

was that the spouses of the new employees were having difficulty adjusting to living in the United States. The spouses found such basic day-to-day activities as grocery shopping or setting up doctors’ appointments to be arduous tasks, and they also felt alone and isolated. After the ERG helped the company set up a program to help the spouses of newly transferred employees settle into their new homes, turnover rates dropped significantly.

• One company turned to its ERGs to assist in improving a chronic issue over the quality and accuracy of transla- tion services for product and marketing materials. The employees were excited to get involved, and the initia- tive resulted in improved translations and a cost savings for the firm.

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Global Diversity & Inclusion Competency Model

1 Change Management

Organizational Development Understands and facilitates the change process

Corporate Communication Relays the full spectrum of inclusion

Critical Interventions Steps in to remove roadblocks when progress is impeded

2 Diversity, Inclusion, and Global Perspective

Cultural Competence Understands and is fluent in multiple cultural frameworks

Negotiation and Facilitation Resolves cultural conflicts

Continuous Learning Commits to ongoing examination of biases

Complex Group Dynamics Manages across groups in the organization

Judgment Knows when to inquire and when to intervene

Subject Matter Expertise Conversant with industry best practices

3 Business Acumen

External Markets Familiar with global and local trends in D&I

Holistic Business Knowledge Possesses a thorough understanding of the market and the business

Diversity and Inclusion ROI (Return of Investment) Able to express the bottom-line implications of D&I

4 Strategic External Relations

Corporate Social Responsibility/Government/ Regulatory Well-informed about external pressure points

Strategic Alliances Leverages external relationships with external partners

Diverse Markets/Supplier Diversity Seeks to create a network of diverse suppliers and organizations

Brand/Reputation Management Positively influences media and the marketplace

5 Integrity

Ethics Acts as a voice for perspectives that are not otherwise represented

Resilience Pursues and achieves goals in the face of resistance

Influence Negotiates and persuades at all levels of the organization

Empathy Understands how to motivate and work with minority and majority groups

Communication

6 Visionary & Strategic Leadership

Diversity & Inclusion Future State Acts as a catalyst for change

Pragmatism Works within business realities

Political Savoir-Faire (at HR and Local Levels) Collaborates with other functional areas to maximize outcomes

7 HR Disciplines

Total Rewards/Talent Management/Organizational Development/Work and Life Balance/Training Possesses relevant knowledge of all programs, policies, and best practices

Compliance Understands and ensures that all applicable laws, regulations, etc., are followed

Employee Relations Resolves conflicts and helps change the work environment in the face of challenges

New Competencies for a New Era In 2008, The Conference Board published Creating a Competency Model for Diversity and Inclusion Practitioners, which details the results of a two-day meeting of members of three councils from The Conference Board: Council on Workforce Diversity, the Diversity & Inclusion Council, and the Diversity Business Council. The report details a new and unique competency model for D&I professionals in the twenty-first century. The model includes categories of like competencies, the competencies themselves, and behaviorally based definitions for each competency. One objective of the report is to help D&I professionals raise the profile of their function and their subject matter expertise, especially on a global platform.

To be used effectively, these competencies should be integrated into a company’s business metrics. Organizations should ask how employees can use a competency to strengthen the business and achieve strategic business objectives. In some parts of the world, competencies may remain consistent, but the definitions and models may require some alterations for other regions.

Source: Indra Lahiri, Creating a Competency Model for Diversity and Inclusion Practitioners, The Conference Board, Research Report 1420, 2008, pp. 11–18.

4 Managing through the Tough Times Dealing with a challenging economic climate requires

D&I professionals to take a hard look at priorities and

projects, sharpen their focus, and improve alignment with

a company’s overall business objectives.

Maintaining momentum against strong head winds A pulse poll of the 211 participants at The Conference

Board Diversity and Inclusion Conference held in

Chicago in May 2009 found that almost half (48 percent)

of the respondents had had budgets cut in the preceding

18 months and just under a quarter (24 percent) had

experienced staff reductions. But D&I executives who

experience such reductions shouldn’t take them person-

ally. If cuts are being made to their function, they are

likely happening to everyone else across the organization.

The important goal is not to lose the momentum you

have built within your organization for D&I programs

and initiatives. And it’s not all bad news: 19 percent of

those surveyed at the conference had actually seen their

budgets increase in the previous 18 months.

It has become a business cliché to suggest that turbulent

times should be seen as an opportunity rather than a

threat—admittedly, a difficult mindset to keep if your

budget and staff have just been slashed. Still, attendees at

the joint meeting of the diversity councils that preceded

the Chicago conference described how the recession had

forced them to take a hard look at priorities and projects

within their own function. Even if the primary challenge

is to just hold fast, the current environment does offer

opportunities to introduce new processes, new percep-

tions, and new efficiencies within the D&I function. Yes,

there are ways to do more with less, but you may actually

want to do less with less and tackle fewer but highly pri-

oritized and relevant initiatives and execute them at the

highest levels.

Balancing the short and the long terms During the current economic downturn, it is important

to balance long-term objectives with short-term demands.

While the pressure to alter course can be enormous, the

dynamics of the economy should not divert attention

from the long-term benefits that diversity and inclusion

brings to an organization. Council members identified

some basic tactics that D&I executives can use to cope

with the recession and maximize some of the opportunities

offered by the downturn.

Embed D&I deeper into the organization An altered

business strategy can present opportunities to make

diversity an integral component of other functions and

business units. The current downturn could be a blessing

in disguise if it accelerates initiatives already underway

or forces somewhat reluctant departments or individuals

to quit stalling.

Sharpen focus and alignment One D&I executive’s

perspective shifted from a broad view of the diversity

employment pipeline to a narrower one on how to align

hiring (and retention) of leadership and high potentials

with the company’s new strategic priorities.

Prioritize D&I work when budgets are tight Do a few

things well, not just several things halfway. Prioritize by

impact and alignment to overall business strategies and

commit to doing the few you do choose to do well.

Renew and reinforce CEO/C-suite commitment

Obtain a reaffirmation of support with updated language

that reemphasizes the CEO commitment to diversity and

inclusion, even in the current economic environment.

Reshape and refocus communication The D&I function

should not be excluded from efforts to increase trans-

parency in communications. It should educate internal

partners and external customers about the function.

Celebrate successes.

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Emphasize the talent management role Many council

members noted that tough economic times often cause

companies to lose focus on talent management. While the

tactics for recruiting and retention may change, it would

be a grave mistake to ignore key talent in the D&I function

during these times. Some recommended strategies and

tactics for good D&I talent management in the current

environment:

• Recruit new talent Layoffs and cutbacks often make strong, experienced, and highly qualified

candidates available in a number of countries and

regions.

• Build relationships for future recruiting Companies should take this step even if they are

not currently recruiting. Maintaining a strong

employee brand and cultivating relationships will

pay dividends when hiring starts again. Leaving

the recruiting marketplace now may mean years to

get reestablished when the good times return,

which will leave companies that dropped out

behind competitors who stayed the course.

• “Re-recruit” existing employees and sharpen the focus on retention There are several ways to do this, including building renewed excitement for

the benefits of diversity and inclusion across the

organization, recognizing the contributions and

sacrifices of existing employees, and identifying

new responsibilities for the talent that is retained.

There may also be new opportunities for succession

planning and appointments as reorganizations and

restructuring occurs.

• Leverage ERGs to sustain D&I initiatives In addition to their business focus, ERGs should also consider

how they can benefit the employee population and

the community at large. ERGs can be a great way

to use limited resources to provide multicultural

marketing help, global support and input for D&I

initiatives, and advocates who can act across

geographies.

For D&I professionals, the challenges of building a diverse and inclusive workplace—both region by region and globally—can be daunting. Participants at the global joint meeting of The Conference Board Diversity and Inclusion Councils focused on current trends and challenges in the field and how multinational companies struggle to embed D&I programs in multiple cultures around the world.

This graphic maps the discussions that centered on the basic challenges facing the profession today and the core issues affecting the building of an effective D&I function, especially during turbulent economics times.

Artist: Brandy Agerbeck of loosetooth.com (www.loosetooth.com)

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What are the indicators of success for the spread of diver-

sity and inclusion throughout an organization? How do

you measure those indicators? The answers to these two

questions, according to members of The Conference

Board Diversity and Inclusion Councils, remain elusive.

It is difficult to monetize the impact of such traditional

metrics as retention or employee engagement and

to connect them directly to a company’s bottom line.

Determining a true ROI for diversity and inclusion is

a work in progress. (See “The Perils of Measuring the

ROI of D&I” below.)

Moving the Profession Forward: Metrics and Next Steps

In the past 10 years, diversity and inclusion practitioners’ use of scorecards to track representation, promotion, and turnover rates by race/ethnicity and gender has grown substantially.a

Building on the approach championed by Harvard Business School scholars Robert S. Kaplan and David P. Norton, D&I practitioners have created diversity objectives (e.g., “increase representation of women in the senior leadership ranks”), identified diversity measures (e.g., percentages of total senior leaders belonging to various groups), established targets (e.g., “on par with the percentage of women in the total workforce”), and created initiatives that focus on achieving these targets (e.g., instituting mentoring programs and rotational assignments, presenting a diverse slate for open leadership positions, etc.).b Many have also embraced Kaplan and Norton’s “strategy maps” concept by illustrating the methods by which diversity strategy could be accom- plished through innovation and learning, internal business, and customer perspectives.c

Notably, D&I practitioners have used scorecards and strat- egy maps to hold senior leaders accountable for achieving diversity targets, with some companies basing a portion of bonus compensation on successful execution.d There is no doubt that the use of diversity scorecards and strategy maps is important, but they often fall short of describing why diversity targets (or metrics for that matter) are critical and how meeting them would generate financial value for busi- nesses. Therefore, inconsistencies between what D&I practi- tioners believe is valuable, what they actually measure, and

what businesses tend to value have prompted much concern over “the ROI of D&I.”

Intuitively, D&I practitioners believe that the creation of a balanced and representative workforce that mirrors the marketplace; a fair, respectful, and inclusive culture that seeks full employee contribution; a representative and balanced leadership team that mirrors the company’s workforce; and parity in pay and promotions can positively impact business performance.e Yet they often lack hard evidence (e.g., a calculated ROI) when business leaders question the value of diversity and inclusion. Many consult- ing firms and D&I practitioners have taken a stab at finding the relationship between D&I and financial performance over the past several years. At best, these efforts have only found a correlational rather than a causational relationship. Perhaps this can be explained by the use of insufficiently rigorous research methodologies, which fail to evaluate the linkages all the way up to firm-level outcomes and tease out how other strategies — both human capital (e.g., human resource) and non-human capital — influence business performance.

Many have sought to establish a performance relationship between diversity and business by first examining existing D&I strategies, and then attempting to find links to business value. While this method may seem prudent, the most frequently mentioned conclusion — “D&I has led to signifi- cant year-over-year revenue growth” — ignores the fact that marketing professionals, technology professionals, and human resource professionals are also claiming the same general relationship.

The Perils of Measuring the ROI of D&I by Stephanie Creary

a See Stephanie Creary, Leadership, Governance, and Accountability: A Pathway to a Diverse and Inclusive Organization, The Conference Board, Research Report 1429, 2008, p. 21.

b Robert S. Kaplan and David P. Norton, The Balanced Scorecard: Measures that Drive Performance (Boston: Harvard Business Review¸1992).

c Ibid.

d Creary, Leadership, Governance, and Accountability, p. 17.

e Creary, Leadership, Governance, and Accountability, p. 14.

(continued on page 20)

Regardless of the metrics selected, it is critical that they

are aligned with the measures of business success used

by the organization. Without that alignment, without

being relevant to the business, diversity and inclusion

metrics are just a bunch of numbers. Even though the rigor

needed for compiling data using metrics is an activity

some D&I executives do not connect to, they must become

comfortable with the process. They must be able to deter-

mine and communicate how such classic metrics as hiring,

turnover, retention, representation, promotions, and sup-

plier diversity affect business operations. Moreover, the

definition of success should be less about benchmarking

and more about continuous improvements that lead to

outcomes that affect the bottom and top lines.

How can D& I professionals connect the dots and link

traditional metrics to business outcomes? The following

examples offer some initial avenues.

Talent management and talent development While

bringing talent onboard is part of the job description, a

D&I executive will not be successful unless he/she man-

ages and nurtures the talent properly. When adding head-

count in key areas of growth, diversity is integrated with

business strategy. Developing talent internally means not

having to hire outside, and that creates value.

Contribute to multicultural market share It delivers

new business, new markets, and connects to profits and

growth.

Supplier diversity In many organizations, this is

aligned with corporate social responsibility objectives.

Many C-suite executives are still unaware of the bottom-

line benefits of a diverse supply chain and how a strong

program that helps develop diverse suppliers can deliver

real cost savings. In the United States, the unfolding

government stimulus plans at various federal, state, and

local levels may introduce significant cost-saving oppor-

tunities for an organization that has a strong supplier

diversity initiative.

Cultural competency This is a must-have for D&I

executives that can be leveraged across the organization

to train senior business leaders in the skills required to

do business anywhere across the globe. It can also be

leveraged to help executives in the development of cross-

cultural and virtual teams. D&I executives need to develop

leaders who are learning about other people and other cul-

tures, not just about themselves and their own culture.

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f John Gibbons and Christopher Woock, Evidence-Based Human Resources: A Primer and Summary of Current Literature, The Conference Board, Electronic Report 15, 2007.

g Christopher Woock and John Gibbons, Evidence-Based Human Resources in Action: Case Studies, The Conference Board, Research Report 1427, 2008, pp. 6–8.

h Woock and Gibbons, Evidence-Based Human Resources in Action: Case Studies, pp. 9–11.

In contrast, more quantitatively rigorous “top-down” and “bottom-up” methods start with key financial and organiza- tional performance measures and then look for human capital strategies that drive the desired outcomes. Research from The Conference Board identifies these methods as “evidence- based human resources” (EBHR), which rests on two key characteristics — a focus on business strategy and standards of evidence (i.e., determining the presence and strength of a causal relationship).f This approach is already used by firms such as Hewlett-Packard and Capital One. Since 2004, HP has been using top-down, evidence-based practices to measure behavior and performance of its customer support operation teams and how these are aligned with the com- pany’s ability to build and maintain a

“customer-centric culture.”g Capital One has had a solid history of using bottom-up analytics to demonstrate the strategic value of human resource practices to firm-level outcomes. Their workforce analytics team has been able to successfully demonstrate the impacts of the company’s executive coaching program and has established links between bank teller attrition, customer satisfaction, and revenues per account at retail branches.h

While it is true that EBHR has traditionally investigated evidence-based practices within the HR function, it does offer a promising model for D&I practitioners who seek to develop similar quantitatively-rigorous studies that extend beyond an often oversimplified “ROI of D&I” approach.

(continued from page 19)

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Diversity and inclusion professionals attending the joint meeting were given the opportunity to use a blog to raise and respond to issues affecting the future of the profession and to pose questions about the challenges and direction facing the profession. Here is a sampling of the issues raised.

The Issue: Has there really been progress? “While 82 percent of those present lead diversity and inclusion strategy, more than half of those present have five or fewer years of experience in diversity and inclusion .... What does this mean in terms of the sustainability of the field ... for knowledge transfer? Or, are we just asking and answering the same questions today that we were asking and answering 15 years ago? Have we really made any progress?”

Response “The questions asked 15 years ago were com- pliance driven and focused on short-term results. Today, I believe that we are asking questions more strategically with long-term results in mind. Our progress over the last 15 years has been around our ability to more effectively position D&I as a strategic business imperative, but we still struggle to show what ‘good’ really looks like.”

Response “We have an opportunity to learn from the United States. And we also have a responsibility as D&I practitioners to learn from the mistakes and places where D&I is ‘stuck’ in the United States, so that we realize that an entry point for this work outside of the United States does not have to be from compliance or legislation. New generations, cultures, [and] business practices around the world could lead us to some other creative breakthrough entry and impact points for this work if we can learn to challenge our own assumptions and ideas about what we call ‘the work.’”

The Issue: Virtual teams “How can you [affect] the culture of virtual employees? If the majority of the team is virtual, how can this be embraced, what strategies can be incorporated to make this virtual culture more inclusive? Furthermore, any suggestions/ideas on how to first establish a baseline [or] what are the baseline metrics to do this?”

Response “A way to establish a baseline could be an employee opinion survey (EOS) that includes particular questions regarding D&I. Once you have the results, you could even do focus groups (even virtually) to under- stand issues further.”

The Issue: When corporate and national cultures collide “If majority group men (with respect to race, skin color, sexual orientation, age, and ability) in each country outside the HQ country wanted to avoid D&I work, would asserting that what is being proposed is HQ-country-location-centric and demonstrates [a] lack of understanding of local cul- ture, would this be an effective strategy for avoiding this conversation? Perhaps what we are experiencing when we try to address D&I globally needs to at least accept that this might be a possibility worthy of further investigation.”

Response “How can we break this down? Are we asking them ‘Why’ enough? What’s needed is to engage earlier in the process with real examples and dialogue.”

The Issue: Defining diversity “It’s true that people aren’t all in the same place, and it can be confusing sometimes to hear contrasting philosophies about D&I approach. For instance, one company says difference makes the difference and another one says diversity is more about similarities than differences. One company says outcomes matter; another says outcomes are not important, only impact. Most companies still agree that you must have metrics to measure progress and metrics often are physically defining (i.e., skin color, gender, sexual orientation), but one company proposes having only one category — “human” — and measuring if they feel valued, included, and empowered to make a difference. Is that assuming that biases against physical characteristics don’t exist? I’m not discounting the idea, just trying to figure out how/if that would really work.”

From the Blogosphere: Tough Questions about the Real World

This report is based on presentations and discussion from two unique forums presented by The Conference Board. In May 2009, The Conference Board hosted a three-day joint meeting of members of its Diversity and Inclusion Councils from around the globe. The meeting featured more than 60 members representing the best and brightest in the diversity and inclusion (D&I) field at many of the world’s largest and most innovative companies from the Americas, Europe, and Asia. Immediately following that meeting, The Conference Board held its annual Diversity and Inclusion Conference, where 211 participants focused on current trends and challenges in the field and the struggle multinational companies face when embedding D&I programs in multiple cultures around the world.

The joint council meeting, which was held under the Chatham House rule — participants may use the information received; participants may not reveal the identity or the affiliation of the speaker(s); and participants may not reveal the identity or affiliation of any other participant — is the main source of material for this report. The D&I conference supplied supplemental information, which, unlike the council material, is credited to specific sources. The views and opinions expressed in this report are those of the council members and conference presenters and participants.

About the Authors

About This Report

Charles Mitchell is the executive director of publishing at The Conference Board and publisher of The Conference Board Review magazine. Mitchell spent more than a decade as a reporter and writer for United Press International based in Johannesburg, Nairobi, Moscow, and Washington. The former foreign editor of the Detroit Free Press and European editor for World Business magazine, he is the author of several books dealing with international business travel, cultures, customs, and etiquette, published by World Trade Press. He holds a bachelor’s degree in economics from the University of Pennsylvania.

Stephanie J. Creary serves as a research asso- ciate in Human Capital at The Conference Board. Her research interests include talent management, multi-generational workforce, diversity and inclu- sion, and survivor syndrome. Her publications for The Conference Board include: Leadership, Governance, and Accountability: A Pathway to a Diverse and Inclusive Organization and Mission Accomplished? What Every Leader Should Know About Survivor Syndrome. Creary has also served as a research associate at Harvard Business School where she co-authored several case studies related to leadership, diversity/inclusion, and strategy, and partnered with faculty to develop a management textbook. She is currently a PhD candidate at Boston College’s Carroll School of Management. Creary also holds a master of business administration degree with high honors from Simmons College School of Management, and a bachelor of science degree and a master of science degree from Boston University.

About The Conference Board Council Program Membership in one of our Councils affords entrée into a select and trusted community of 2,500 executives from a broad array of industries, functions, and regions—executives who know the value of this rich source of insights and new approaches.

Enduring relationships are the cornerstone of the Councils experience. Enhanced by our global, enterprise-wide reach, these relationships span the world and extend value across your organization. Confidential peer dialogue combines broader perspective, specific knowledge, and shared experience to save you precious time and public missteps.

To learn more, contact Katie Plotkin, Councils Membership Manager, +1 212 339 0449 or [email protected]. Council participation is by invitation only and is an exclusive benefit for The Conference Board member organizations.

The Conference Board Diversity and Inclusion Councils Asia-Pacific Diversity and Work-Life Strategy Council

Council of Diversity Executives

Council on Work Force Diversity

Diversity & Inclusion Council

Diversity & Inclusion Strategy Council

Diversity Business Council

European Council for Diversity in Business

Supplier Diversity Leadership Council

Supplier Diversity Leadership Council II

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Publications team Publishing Director Charles Mitchell Vice President, Councils & Working Groups Lorrie Foster Editor Timothy Dennison Creative Director Peter Drubin Production Margaret Cesario

About The Conference Board The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: to provide the world’s leading organizations with the practical knowledge they need to improve their performance and better serve society.

The Conference Board creates and disseminates knowledge about management and the marketplace, conducts research, convenes conferences, makes forecasts, assesses trends, publishes information and analysis, and brings executives together to learn from one another. The Conference Board is a not-for-profit organization holding 501 (c) (3) tax-exempt status in the United States.

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www.conference-board.org

The Conference Board, Inc. 845 Third Avenue New York, NY 10022-6600 United States Tel + 1 212 759 0900 Fax + 1 212 980 7014

The Conference Board Asia-Pacific 22/F, Shun Ho Tower 24-30 Ice House Street, Central Hong Kong, SAR Tel + 852 2804 1000 Fax + 852 2869 1403

The Conference Board China Beijing Representative Office 7-2-72 Qijiayuan, 9 Jianwai Street Beijing 100600 P.R. China Tel + 86 10 8532 4688 Fax + 86 10 8532 5332 www.conference-board.cn (Chinese)

The Conference Board Europe Chaussée de La Hulpe 130, box 11 B-1000 Brussels Belgium Tel + 32 2 675 5405 Fax + 32 2 675 0395

The Conference Board of Canada 255 Smyth Road Ottawa, Ontario K1H 8M7 Canada Tel + 1 613 526 3280 Fax + 1 613 526 4857 www.conferenceboard.ca