Engaging Diverse Groups for Better Business Results

“Engaging Diverse Groups With
Cultural Intelligence To Deliver Better
Business Results”
Copyright © 2014 MFHA
www.mfha.net

Our Changing World
2
View: http://youtu.be/4B2xOvKFFz4
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Agenda
• About MFHA
• Learning Objectives
• Diversity & Inclusion Defined
• Business Case for Diversity & Inclusion
• Cultural Intelligence Approach
• Best Practices & Action Steps
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Learning Objectives
• Diversity & Inclusion work is about delivering
better business results in the workplace &
marketplace.
• Must make the business case specific and
measurable to the markets you serve.
• Cultural Intelligence offers a competitive
advantage with all stakeholders. Everyone can
improve their cultural IQ.
• Must be intentional in your efforts. You must act
on the opportunity. Talk is not enough.
www.mfha.net

My Journey- My Story
• Black American of
Cape Verdean decent
• Middle child- #3 of 6
• Culinary school grad
• Husband (34 yrs.)
• Father of 3 boys
• Grandfather of 6 (3+3)
• Country music fan
• Survivor of…
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Who We Are
MFHA is an educational non-profit that
delivers multicultural solutions and
services to our members that help them
maximize business opportunities in the
workplace and marketplace.
www.mfha.net

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What We Do
We help our members and the
industry effectively engage
multicultural employees, customers
and communities to improve
business results.
www.mfha.net

How We Do It
• EDUCATE We provide cultural intelligence and
professional development training to drive business
results.
• ADVOCATE We promote the career and business
opportunities that exist with member companies for
minority talent.
• CONNECT We help industry professionals connect
with each other for informal mentoring and
networking at our events and activities.
www.mfha.net

MFHA Dinner Table of Opportunity
Workforce
• Increased Productivity
• Diverse Recruiting Success
• Improved Communication
• Better Retention
Customers
• Better Dining Experience
• Better Lodging Experience
• Improved Industry Image
• Increased Business
Suppliers
• Increased MBE Volume
• Wider Participation
• Reduced Costs
• Product Innovation
Community
• Improved Image
• Quality Relationships
• Strategic Partnerships
• Cultural Understanding

If You Are Normal…
Why are we
taking this class?

“McNugget Love”
Increases Sales by 20%!
YouTube: http://youtu.be/_oMGP_R4mlQ

Definition of Diversity & Inclusion
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Diversity Defined
• The things that you CAN actually see when
you look at an individual, and the things that
you CAN'T see.
• Diversity management initiatives are
primarily about “counting heads”.

Inclusion Defined
• The act or process of utilizing
someone's talents and skills for the
benefit and gain of everyone.
• Inclusion is largely about “making
heads count”.

Inclusion Example
Copyright © 2013 MFHA, ALL RIGHTS
RESERVED 16

The Business Case
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Make The Business Case
THE EQUITY CONTINUUM
Where do you/company fit in a changing America?
I. COMPLIANCE
II. BEYOND COMPLIANCE
III. THE BUSINESS CASE
IV. EMPLOYER OF
CHOICE
V. LEADER IN
DIVERSITY
9/19/2014
“CONFIDENTIAL” -- MFHA © COPYRIGHT
2012
ALL RIGHTS RESERVED
18
Source: Centre for Diversity and Business,
Business and Diversity,2003, Ashbridge Business
School, UK
www.mfha.net

Cultural Dynamics Have Changed
Cultural dynamics have always existed in the U.S.A.
but they have changed because the population
growth and spending power of people of color have
skyrocketed!
Then: A melting pot Now: A bowl of gumbo
``
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Population Projections
20 Copyright © 2014 MFHA
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What’s Driving Multicultural Growth?
Non-whites represented
almost 37% of the U.S.
population in the 2010 U.S.
Census; however 50% of
all babies born were non-white
for the first time in
U.S. history
Source: The U.S. Census
www.mfha.net

Buying Power Growth
• In the past decade, the
buying power of the
multicultural market has
surpassed the majority
market buying power
• The buying power of
people of color is
growing at a faster rate
than Caucasians (213%)
Segment
2010 Buying
Power
1990-2015
Growth
Rate
Hispanics/
Latinos
$1 trillion 605%
African-
Americans
$957 billion 294%
Asian-
Americans
$544 billion 571%
Native
Americans
$68 billion 362%
Source: Selig Center for Economic Growth
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The Future of the U.S. Workforce
• In 2012, number of women in
the labor force grew by 14.3%
compared to 10% for men
• Increase in # of wired,
connected Millennials will
change the way we motivate
employees
Source: U.S. Department of Labor
U.S. Census Bureau
23
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A Changing Customer Profile
24
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Key Industry Facts
• All multicultural consumers over index in the
food category
Key food categories
– Spices
– Extracts
– Dried Vegetables
– Seasonings
– Condiments
– Sauces
Source: Nielsen
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Key Industry Facts
• In recent years, spending
on eating away from
home in African American
and Hispanic households
has increased 43.6 % an
34.3%, respectively
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Hispanic/Latino Key Demographics
• Buying power of approximately $1.3T!
• Hispanics make up approximately16 percent
of the total U.S. population, representing
50.5 million people
• In the last decade, Hispanics accounted for
1 out of every 2 individuals added to the U.S.
• 10 states with largest Hispanic markets:
California, Texas, Florida, New York,
Illinois, New Jersey, Arizona, Colorado,
New Mexico, Georgia
Sources: Selig Center for Economic Development and The U.S. Census
www.mfha.net

Hispanic/Latino Lifestyle & Culture
• Hispanics/Latinos are an ethnically and racially diverse
population with the majority being Mexican Americans
(65%)
• A large majority (76%) of the Hispanic/Latino
community speaks English, and 71% speak Spanish at
home
• Hispanics/Latinos are brand loyal, but tend to be price
conscious
• Almost 1/3 of Hispanics/Latinos work in service
industries
• Hispanics are family centered
– The extended family plays a major role
• Religion plays a central role in the lives of
Hispanic/Latino Americans
Sources: The Pew Center, National Council of La Raza (NCLR) and CEPR
Sources: The Pew Center and National Council of La Raza (NCLR)

African-American Key Demographics
• African-Americans have approximately $957B in
buying power!
• Despite being the hardest hit by the current
recession, the African-American buying power is
projected to rise to $1.2T by 2015, an increase of
25%
• African-Americans represent approximately 13%
of the population, or 38 million people in the U.S.
• Between 2010 and 2015, African-Americans will
grow 38 people/hour
• 10 states with the largest African-American
markets:
New York, Texas, Georgia, California,
Florida, Maryland, Illinois, North Carolina,
Virginia, New Jersey
Sources: The Selig Center for Economic Growth, The U.S. Census and
Geoscape
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Sources: Selig Center for Economic Development and The U.S. Census

African-American Lifestyle & Culture
• African-Americans are brand conscious
and the most brand loyal
• African-Americans are consumer
trendsetters
• The majority of African-Americans are
spiritual people
• 54% of African-Americans are educated,
ranging from some college(34%) and up
to a master’s degree (21%)
• Most preserve traditions associated with
music, culture and food
• African-Americans trust Black media more
than any other institution, and many are
distrustful of main stream media
• Most prefer businesses that give back to
the Black community
Sources: 2008 Radio One/Yankelovich Study and Target Market News
www.mfha.net

Asian-American Key Demographics
• Asians have nearly $544B in buying power!
• By 2015, Asian buying power is expected to grow 42
percent to $775 billion
• The nation's 14.5 million Asian-Americans are nearly
5% of the U.S. population
• The majority of the population consists of
Chinese/Taiwanese; Asian Indians; Filipino,
Vietnamese and Korean
• Three -fourths of Asian workers were born outside the
United States; but 71.4% of Asian workers are U.S.
citizens
• 10 states with the largest Asian consumer markets:
California, New York, Texas, New Jersey, Illinois,
Hawaii, Washington,
Florida, Virginia, Massachusetts
• Asians are the fastest growing multicultural race
Sources: The Selig Center for Economic Growth , The U.S. Census and
Geoscape
www.mfha.net

Asian-American Lifestyle & Culture
• Asian-Americans are more likely to look at
products and features before making a
purchase (value concious)
• Asian American households tend to be larger,
with more workers and several generations living
under one roof
• The largest single industry for Asian-American
men is restaurants
•
• Asian Americans tend to live two distinct socio
economic lifestyles among their population
– High income earners
– Low income earners
• The ‘Asian Pacific American’ umbrella includes
over 45 distinct ethnicities speaking over 100
language dialects
Sources: CEPR, Pew Research Center and Nielsen
www.mfha.net

The Disability Market
Represents a strong dining and travel market:
More than 75% of PWD dine out at least
once per week.
PWD spend nearly $35 billion a year dining
away from home and $14 billion a year on
travel.
PWD make up fifteen percent of the sales
in full service restaurants.
Sources: PRN Newswire, 2003; National Restaurant News, 2003; In Business Las Vegas, 2007, U.S. Census 2000
www.mfha.net

The Disability Market
Has been instrumental in increasing company profits:
 Embassy Suites added $13M to their gross revenue,
within 3 years, by providing a disability customer service
training program for their staff.
 Inter-Continental (InterContinental, Crowne Plaza, Hotel
Indigo, Holiday Inn, Holiday Inn Express) estimated that
accessible rooms accounted for 3.4M room nights sold in
2010, based on reservations.
 Microtel Inns and Suites reported that ADA room
bookings were up by 275%; net revenues by more
than 260%; and internet bookings increased more
than 400%.
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There’s A McDonald’s for Everyone
YouTube: http://youtu.be/gpHO1dYIoDY
35 Copyright © 2014 MFHA
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Ethnic Consumers Want to Know
• Do you have products that are relevant to
my background and culture?
• Are you supportive of my community?
• Do you hire people who look like me and
are they successful?
• Do you support minority & women owned
businesses?
www.mfha.net

Supplier Diversity
• A meaningful company commitment to
expanding its base of minority & women
owned suppliers.
• An effort to create & develop a marketable
advantage with an increasingly diverse
consumer base.
• To foster economic health in the
communities in which a company operates.
www.mfha.net

Supplier Diversity
• Good for Business Helps gain access to
ethnic markets, increases competition, and
creates wealth in the community
• Demonstrates a full circle commitment to
diversity and inclusion
• The Smart Thing to Do Reciprocity,
corporate image, relationship building
• Compliance Federal and/or state
government and customers require it
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Dinner Table of Opportunity
Workforce Customers
• Increased Productivity
• Diverse Recruiting Success
• Improved Communication
• Better Retention
• Better Dining Experience
• Better Lodging Experience
• Improved Industry Image
• Increased Business
Community Suppliers
• Increased MBE Volume
• Wider Participation
• Reduced Costs
• Product Innovation
• Improved Image
• Quality Relationships
• Strategic Partnerships
• Cultural Understanding
MBE’s
must do
more!
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Top Performing Companies
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Multicultural Matters
• Domestic multicultural markets are
increasingly less-White and less-
American-Born
• Success in multicultural markets requires
knowledge, skills and connectivity to be
successful with consumers, guests and
employees
• The increase in multicultural purchasing
power and demographic changes make
the business case
41
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Cultural Intelligence
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Build Your Cultural Intelligence
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CI Defined
Cultural Intelligence (CI) is having the
knowledge, skills, and abilities necessary
to effectively engage people from
different cultural backgrounds to deliver
better business results.
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Benefits of CI
• Increase sales and reduce costs
• Improve customer service
• Deliver better results with multicultural
teams
• Drive positive employee engagement
scores
• Gain wider access to multicultural
markets
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Engaged Employees
Highly engaged employees are those who have high
commitment levels to one or more of these:
• Job
• Co-workers
• The Boss
• The Company
High commitment occurs when an employee feels
valued by their manager, team and company
Source: 2013 Gallup Business Journal, Inc.
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Engaged Employees
• Engaged employees give 40-80% more
discretionary effort in their jobs than low
commitment employees
• Moving an employee from low commitment
to high commitment decreases their
turnover rate by 80%
Source: 2013 Gallup Business Journal, Inc.
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www.mfha.net

Cultural Intelligence Competencies
• Cultural Self Awareness
• Cross-cultural Communication
• Conflict Management
• Authentic Coaching
• Empathetic Engagement
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Example: Cultural Norms & Values
High Explicit High Implicit
What I say is what I mean Non-verbal behaviors are as
important as what I say
Quick relationships, short-term
duration, perhaps long-term
Get to know you then long-term
relationship after trust
established
Hierarchy, Individual is
paramount
Collective, Group is paramount
It’s the truth Saving Face is important
Direct conversations Indirect conversations
Conflict is okay Harmony is desired
Personal space Shared space
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Example: Difference in Values
Latino Values Eurocentric Values
Interdependence Independence
Family First Me First
Family helps Family Helping self helps family
Humility Self-Expression
Work Hard Work Smart
Sacrifice Pay Your Dues
Stability What’s New? What’s Next?
Respect for Authority Challenge Authority
Modesty Toot Your Horn
God Loves the Poor God Loves the Rich, Too
I Accept Life’s Problems I Solve Life’s Problems
Whatever God Wants The Sky is the Limit
I Hope to Achieve I Believe I Will Achieve
Give Respect Earn Respect
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KFC Example
YouTube: http://youtu.be/GpqTqtDT6t8
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Best Practices & Action Steps
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Darden Marketing Example
(Red Lobster)
YouTube: http://youtu.be/LZ9DpW9b2eM
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Darden Best Practice
• All senior executives
must serve on a
board of a group
unlike themselves.
• Drives traffic to the
restaurants
• Build talent pipeline
for company
• Visual give back to
the community
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Diverse Campus Involvement
26 Core Relationships on 29
Campuses
– 18 NSMH Chapters
– 6 Historically Black Colleges &
Universities
– 3 Hispanic Serving Institutions
– 7 Asian Institutions
– 2 Career Opportunities for
Students with Disabilities
Chapter Colleges
– 1 Tribal College
 College Association Relationships
• Strategic plan for each association
• Operators, recruiters, and executives
participation
• National and regional board memberships
• Build top talent pipeline for openings and
internships
 NSMH
• Industry Partner 2000-2014
• National Conference, 5 Regional Meetings
• Talent Advisory Council & operations
leadership attendance
www.mfha.net

Best Practices
Growth in Latino Affinity Leadership Programs
– Latino Leadership Institute at UCLA
– Latino Executive Program at SMU (NHCC)
– National Hispana Leadership Program
– Women of ALPFA
– Corporate Director Program at Harvard University
– Corporate Executive Program at HACR
– Sodexo, General Mills, McDonald’s, Publix,
Walmart
www.mfha.net

Cultural Intelligence Action Steps
• Learn to lean into discomfort
• Use a different lens to see the world
• Be intentional about wanting to learn
• Be color conscious, not color blind
• Challenge stereotypes
www.mfha.net

Engage With Cultural Intelligence
• Engaged employees have higher commitment to
their job, co-workers, boss & the company.
• High commitment occurs when an employee feels
valued by their manager, team & the company
– Ask a Asian/Black/Latino employees what it is like working
there as a person of color.
– Ask them where they feel they are included the most in
company activity.
– Ask them to give you three specific actions you can take to
help them make stronger connections in the company.
www.mfha.net

Engage With Cultural Intelligence
• Read about Asian/Black /Latino workforce issues
on the internet.
• Ask multicultural employees in your company to
mentor you on multicultural issues in the
workplace.
• Trust and Respect are the MOST important values.
• Read books “Striving While Black” or “Hispanics in
the Workplace”
– Integrate lunches and the Links
– Manage perceptions in the workplace
– Avoiding stereotypical behavior
– Building & nurturing a support network
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Coach With Cultural Intelligence
• Talent Coaching - Educate employees on the
nuances for effectively coaching Latino talent
– Tend to share a lot of personal information
– Tend to avoid prolonged eye contact
– Focus more on team accomplishments
– May lack a 3-year career plan
– May be hesitant to move away from family
– Difficulty talking about greatest strengths
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Manage With Cultural Intelligence
• Be proactive about wanting to know more about
other cultures.
– Seek a broader perspective by using websites,
periodicals and personal interaction
• Build trust through consistent, fair and inclusive
actions.
– Minorities often times feel misunderstood and
under appreciated
– Providing specific and honest feedback in a
caring “I want you to get better” fashion is more
important for minority groups.
www.mfha.net

Manage With Cultural Intelligence
• Recognize and address the perspective of
multicultural employees.
– They may lack an orientation of corporate
America
– Must deal with sense of race/ethnic identity at
work
– Often feel a sense of isolation; sense of being the
“token”; expected to “speak for the group”
– Feel tremendous pressure to assimilate; yet they
may feel guilty for not bringing their “whole-self to
work”
www.mfha.net

Summary
• Diversity & Inclusion work is about delivering better
business results.
• Must make the business case specific and
measurable to the markets you serve.
• Cultural Intelligence offers a competitive
advantage with all stakeholders. Everyone can
improve their cultural IQ.
• Must be intentional in your efforts. You must act on
the opportunity. Talk is not enough.

Intentionality
11/12/2012 www.mfha.net
64

Thank you!
www.mfha.net
401.461.6342
gerry.fernandez@mfha.net
twitter.com/mfhanet
facebook.com/mfha.net
Slideshare.com/mfhaCI
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Engaging Diverse Groups for Better Business Results

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