By Melissa J. Anderson

Last week Forbes Insights released its latest study, a roundup of diversity around the globe. The report ranks nations by diversity and details diversity in various sectors and dimensions of the workforce. Clara Knutson, research manger at Forbes Insights, explained that the team hopes companies will use the survey to build effective talent strategies for the future. She writes:

“As a comprehensive atlas of corporate diversity and inclusion (D&I) efforts, the goal of this report is to learn from the varied and unique situations faced by countries and corporations around the globe: Which approaches work best? How can companies continue to increase diversity and effectively translate this into business opportunities and higher productivity?”

The study revealed that certain sectors and geographic regions retain significantly segregated by gender and ethnicity. And, the report indicates, companies can gain a competitive advantage by diversifying faster than their country and their competitors. “Diversity is mandatory in order to sustain economic growth, for a country, a sector or even a company. Keeping up with a changing global workforce requires companies, in particular, to examine their needs and adjust their business strategies accordingly,” it explains.

By Melissa J. Anderson

Yesterday’s 2012 Catalyst Awards Conference was a celebration of landmark achievements. As Catalyst celebrated its 50^th anniversary, the organization awarded its annual prize for diversity initiatives to two organizations: the food and facilities management services company Sodexo and Commonwealth Bank, Australia’s leading financial services company.

The two programs represented breakthroughs in diversity. Sodexo’s ROI driven diversity program has increased its number of women in leadership by 74%. Commonwealth has set the tone for diversity in Australia by being the first bank in the country to set targets for attracting, retaining, and promoting senior women.

Both winning programs were awarded after a rigorous review by Catalyst. Julie S. Nugent, Catalyst’s Senior Director of Research and Chair of the Catalyst Award Evaluation Committee, remarked that the process “has been described as more intense than an IRS audit.” The organization works to ensure that diversity and inclusion is really lived in the culture of the company as well as in the impact data resulting from each initiative.

Leadership and Culture

What became clear throughout the event was the importance of leadership – how a dedicated and vocal commitment to diversity from the top can truly shape a company’s culture of inclusion.

Speaking at the event, Commonwealth Bank Managing Director and CEO Ian Narev explained that authenticity is critical for ensuring the success of a diversity initiative. “In large organizations, everyone can see through inauthenticity,” he said. “You are far more transparent than you think you might be.”

The son of Holocaust survivors, he explained that his belief in diversity was based on his own personal morality. He continued, “When you are running a business, morality is important, but you’ve also got to link it to the business value.”

He said that Commonwealth had been successful in its program because of its focus on the business value of diversity. Creating an inclusive environment has enabled the Bank to be sure it is hiring the best people for each job – rather than overlooking female, indigenous, or another underrepresented sources of talent.

George Chavel, President and Chief Executive Officer of Sodexo North America, held a similar view on corporate diversity. He explained that, having grown up in a multicultural community in Detroit, he saw the importance of diversity from an early age, which shaped his passion for building an inclusive environment at Sodexo. But what enables that environment to thrive and generate buy-in with other stakeholders in the company is to also communicate the business case.

Additionally, he said Sodexo works to communicate with clients about diversity and inclusion, because it sets the company apart from competitors. “Now part of our brand promise is diverse leadership. In our commoditized business, a low margin business, you need that differentiation.”

Chavel also discussed how he sees the relationship between diversity and inclusion. “Inclusion creates the landscape for [building] diversity,” he said. By creating an inclusive, even playing field, diversity can truly thrive within the company.

Expanding the Conversation

Rohini Anand, Ph.D., Senior Vice President and Global Chief Diversity Officer at Sodexo, discussed the importance of sharing personal stories to illustrate the value of diversity and inclusion in a powerful way. She explained, “Getting it personal and being authentic is absolutely critical. We’ve had three CEOs [since beginning D&I work] and each as demonstrated a personal connection and commitment. But we had to align the executive team behind the CEO.”

That required a program based on metrics and a specific action plan, she explained. “The shift came for us when we were able to demonstrate the business benefits… that it was a vehicle for us to hire the best talent.”

It also requires generating buy-in with staff in the majority – usually white males, explained Tristan Wills, Executive General Manager, Corporate Sustainability, Commonwealth Bank of Australia. “For us, we’re very, very careful that we’re not just women talking about women to women,” she said.

“This is a leadership issue – and all of our programs are available to men and women.”

She said that unconscious bias training had made a big difference in the attitudes and behaviors of many individuals. “We also make sure we have equal representation of men and women at our events so the conversation reaches everyone.”

By Melissa J. Anderson

Diversity of thought is critical for good group decision-making – according to a new report [PDF] released in by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in conjunction with KPMG LLP and Brigham Young University.

The report provides guidelines for board directors on good decision-making. KPMG partner George Herrmann, one of KPMG’s contributors to the thought paper, explained:

“As business becomes more complex, the demand for effective corporate governance and oversight has never been greater, putting a premium on sound judgment and decision making. This thought paper can help board members better understand where they, and others, are vulnerable to predictable bias traps and how to effectively challenge their own judgments and those of others.”

The report says, “The reality is that in a world of high-stake decisions, deadlines, and limited capacity, the judgments of even highly educated, capable people are vulnerable to common, systematic traps and predictable biases.”

One of its key recommendations in light of these concerns is to seek out and embrace diversity in the decision-making process. Here’s why.

By Melissa J. Anderson

Recently business writer and strategic advisor Peter Bregman published a blog post on the Harvard Business Review network proclaiming that “diversity training doesn’t work.” He suggests that most companies undertake diversity training to avoid lawsuits – and this is why it fails.

Certainly training undertaken as part of a kneejerk reaction to potential litigation isn’t going to be positioned or received in the best light – it’s no wonder that kind of diversity training is likely to fail. But Bregman believes that diversity training actually fans the flames of intolerance. He writes, “Diversity training doesn’t extinguish prejudice. It promotes it.”

He believes that diversity training produces only two results: it either causes people to become overconfident about their level of tolerance or to stereotype individuals into oversimplified categories.

Fear or compliance-driven strategies won’t change intolerant workplace cultures – but simply proclaiming that all diversity training is ineffective is misguided at best – and damaging at worst. Asking whether it “works” is the wrong question – here’s why.