The ROI of Inclusion

Dale Thomas Vaughn
Dale Thomas VaughnMedia & Marketing Expert. Diversity, Inclusion, and Gender Equality Consultant. Speaker. Author. Activist. Trainer. à Gender Leadership Group
THE 

BUSINESS CASE
FOR INCLUSIONARY
LEADERSHIP
with Dale Thomas Vaughn
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AND GROW AT THE SAME TIME
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- Attendee, Professor, 

University of Michigan
As Seen On:
Previous Speaking, Clients and Programming:
TODAY’S AGENDA
TODAY WE’LL COVER
1.THE PROBLEM
2.THE OPPORTUNITY
3.THE SOLUTIONS
I. MY ROLE &
RESPONSIBILITY
THE PROBLEM
4 Based on a comparison of the full participant set for 2012 to 2015, averaged by company, with results weighted to match Fortune 500 industry composition.
REPRESENTATION IN THE CORPORATE PIPELINE BY GENDER AND RACE8
% OF EMPLOYEES BY LEVEL IN 2017
ENTRY LEVEL MANAGER
SR. MANAGER/
DIRECTOR
VP SVP C-SUITE
11%
WHITE WOMEN
WHITE MEN
2016
PIPELINE
% WOMEN
2017
PIPELINE
% WOMEN
CHANGE9
46%
47%
1%
37%
37%
0%
33%
33%
0%
29%
29%
0%
24%
21%
-3%
19%
20%
1%
54%
47%
70% 67%
9%
31%
26% 26% 23%
12%
36%
61%
18% 18%
17%
11% 8%
6% 4%
3%
13%
16%
16%MEN OF COLOR
WOMEN OF COLOR
THE PROBLEM
GENDER AND INNOVATION
▸ Tech, Telecom, and IT services are
underperforming in a KPI that is
positively correlated to product
innovation…
▸ …there is a market correction
coming.
REPRESENTATION OF WOMEN ACROSS INDUSTRIES
% OF WOMEN BY LEVEL
6–7 | WOMEN IN THE WORKPLACE: CORPORATE PIPELINE
MANAGERENTRY LEVEL
SR. MANAGER/
DIRECTOR
VP SVP C-SUITE
ENTRY LEVEL MANAGER
SR. MANAGER/
DIRECTOR
VP SVP C-SUITE
A CLOSER LOOK
Different industries have different
talent pipelines
Although women are broadly underrepresented in corporate America, the
talent pipeline varies by industry. Some industries struggle to attract entry-
level women (technology), while others fail to advance women into middle
management (food, beverage, and restaurants) or senior leadership (insurance).
REPRESENTATION OF WOMEN ACROSS INDUSTRIES (CONT.)
% OF WOMEN BY LEVEL
54% 47% 38% 27% 23%
59%CONSUMER
PACKAGED GOODS
49%
38% 29% 20% 17%
57%
INSURANCE
RETAIL
60%
54% 48% 45% 33% 31%
TECHNOLOGY
(HARDWARE & SOFTWARE) 36% 30% 27% 25% 20% 17%
MEDIA &
ENTERTAINMENT
50% 48% 43% 41% 34% 27%
TELECOM &
IT SERVICES
33%
24% 23% 21% 14% 15%
AUTOMOTIVE
& INDUSTRIAL
MANUFACTURING 26% 20% 20% 18% 16% 13%
TRANSPORT,
TRAVEL, LOGISTICS &
INFRASTRUCTURE
53%
33% 32% 24% 13% 19%
51%
42% 36%
28% 25% 18%
BANKING &
CONSUMER FINANCE
48% 43% 42% 34% 22% 26%
PROFESSIONAL &
INFORMATION SERVICES
(INCLUDING LEGAL)
47% 35% 32% 23% 17% 17%
ASSET MANAGEMENT
& INSTITUTIONAL
INVESTORS
HEALTH CARE 51% 44% 40% 35%
73% 69%
46% 40% 36% 26% 22%
52%PHARMACEUTICALS &
MEDICAL PRODUCTS
39% 33% 26% 20%
49%
22%
FOOD, BEVERAGE &
RESTAURANTS
ENERGY &
BASIC MATERIALS
40%
22% 22% 22% 15% 16%
M
N
le
a
a
o
g
w
deserving employees fair and objecti
Nearly 50% of men think women are
well represented in leadership in
organizations where only one in ten
senior leaders is a woman
“THE MOST SIGNIFICANT OBSTACLE
IDENTIFIED IS AN ENTRENCHED MALE
CULTURE, A BARRIER THAT EVEN MEN
ACKNOWLEDGED MUST CHANGE.”
ManpowerGroup
WHAT’S THE HOLDUP?
“UNCONSCIOUS”
STRATEGY: MAKING THE CASE
Companies and employees also don’t see eye to eye on why
gender diversity is important. While 90 percent of organizations
say they prioritize gender diversity because it leads to better
business results, only 42 percent of employees think this is the
case for their company.
EMPLOYEESCOMPANY AND EMPLOYEE VIEWS ON COMMITMENT TO GENDER DIVERSITY COMPANIES
% OF COMPANIES AND EMPLOYEES THAT SAY . . .
go ahead, building a business case to get
funding from executive leadership. But I feel
like we’re not there yet.”
My company prioritizes gender
diversity
My CEO prioritizes gender diversity
90%
52%
86%
50%
Because it contributes to a
positive image of the company
23%
52%
Because it is fair to all people
(i.e., the right thing to do)
75%
60%
90%
42%
Because it leads to better
business results
LEVEL OF
COMMITMENT
REASONS
WHY
THE OPPORTUNITY
FIRMS WITH THE GREATEST GENDER DIVERSITY
AMONG EXECUTIVES AND BOARD MEMBERS
[EARNED] 300% MORE REVENUE 

AND 50% HIGHER PROFIT 

THAN THE AVERAGE COMPANY
UC Davis
400 public companies reviewed
THE BUSINESS CASE
THE BUSINESS CASE
A PREPONDERANCE OF EVIDENCE
▸ Of 7,615 firms surveyed by the London Annual Business Survey, businesses run by
culturally diverse leadership teams were more likely to develop new products than
those with homogenous leadership.
▸ In Innovation: Management, Policy & Practice, 4,277 companies in Spain were
analyzed… companies with more women (gender diversity) were more likely to
introduce radical new innovations into the market over a two-year period.
▸ In a global analysis of 2,400 companies conducted by Credit Suisse, organizations with
at least one female board member yielded higher return on equity and higher net
income growth than those that did not have any women on the board.
▸ A 2015 McKinsey report on 366 public companies found that those in the top quartile
for ethnic and racial diversity in management were 35% more likely to have financial
returns above their industry mean, and those in the top quartile for gender diversity
were 15% more likely to have returns above the industry mean.
THE BUSINESS CASE
“THE MAGNITUDE OF THE EFFECTS IS NOT SMALL”
▸ …the correlation between women at the C-suite level and firm profitability is
demonstrated repeatedly, and the magnitude of the estimated effects is not small.
▸ For example, a profitable firm at which 30 percent of leaders are women could
expect to add more than 1 percentage point to its net margin compared with an
otherwise similar firm with no female leaders.
▸ By way of comparison, the typical profitable firm in our sample had a net profit
margin of 6.4 percent, so a 1 percentage point increase represents a 15 percent
boost to profitability.
▸ When considering a broader set of firms, both profitable and unprofitable, the
result is even more striking. For the sample as a whole, the firm with more women
can expect a 6 percentage point increase in net profit, while overall median net
profit was just over 3 percent.
The ROI of Inclusion
The ROI of Inclusion
I GET IT
GENDER PARTNERSHIP
IS GOOD FOR BUSINESS

WHAT’S IN IT FOR ME?
PERSONAL CASE FOR MEN
WHAT MEN GAIN PERSONALLY
▸ Less worry
▸ Less time at work
▸ More quantity AND quality
time with loved ones
▸ Better relationship satisfaction
▸ Better sex
- MICHAEL KIMMEL; MCKINSEY & LEAN IN
“FEMINISM WILL MAKE IT
POSSIBLE FOR THE FIRST TIME
FOR MEN TO BE FREE.”
Michael Kimmel
THE PERSONAL CASE
IF YOU ARE NOT ADVOCATING FOR
WOMEN IN THE WORKPLACE, YOU
ARE HURTING YOUR DAUGHTERS’
FUTURE.
Jeffery Tobias Halter

Why Women?
PERSONAL CASE FOR MEN
I GET IT
GENDER PARTNERSHIP
IS GOOD FOR ME

BUT IS IT TOP PRIORITY?
The economic case for gender parity
of additional annual GDP in 2025 in the full-potential
scenario of bridging the gender gap...
… equivalent to the combined
US and China economies today.
$28 trillion
Equal to 2x the likely contribution of women to global GDP growth in the business-as-usual scenario
McKinsey Global Institute’s Gender Parity Score points to
where 95 countries stand on gender parity.
could be added in 2025 if all countries matched their
best-in-region country in progress toward gender parity.$12 trillion
The ROI of Inclusion
“97% OF MILLENNIALS THINK THEIR
GENERATION WILL FINALLY ACHIEVE
EQUALITY OF OPPORTUNITY FOR
EMERGING FEMALE LEADERS.”
ManpowerGroup
THE FIRST NATIVE GENDER-NEUTRAL GENERATION
“MORE THAN HALF OF MILLENNIAL MEN THINK
THAT THEY ENJOY MORE ADVANTAGES THAN
WOMEN IN AMERICAN SOCIETY, LESS THAN 20
PERCENT OF THEM IDENTIFY AS FEMINISTS.”
Spring 2016 Harvard Public Opinion Project poll
WHY WE HAVE TO START ENGAGING MEN
THE SOLUTIONS
EVENTS
Better Man Movement
PROGRAMMING
Gender Leadership Group
Inclusionary Leadership
(D&I Strategy) Consulting
Allies Strategy
Intersectional Allies
Workshop
Gender Partnership
Strategy
Engaging Men Workshop
Inclusionary Leadership
Certificate Program
Virtual, Scaleable, LMS-
Compatible
10 Week Training Course
Better Man Conference
SF
UK
NYC
Toronto
Australia
Social Media Event Better Man Chat
In-House Events
Better Man Circles
Half Day Better Man
Talks
Telstra
WITI LADC
Gallo
The ROI of Inclusion
Diversity training.
Do people who undergo training usually shed their biases? Researchers have been examining that
question since before World War II, in nearly a thousand studies. It turns out that while people are
easily taught to respond correctly to a questionnaire about bias, they soon forget the right answers.
The positive effects of diversity training rarely last beyond a day or two, and a number of studies
suggest that it can activate bias or spark a backlash. Nonetheless, nearly half of midsize companies
use it, as do nearly all the Fortune 500.
WHAT IS MY ROLE AND
RESPONSIBILITY?
The Inclusionary Leadership
Road Map
SUSTAINABILITY
LEADERSHIP
COMMITMENT
COMMUNICATION
IMPACT
Year 1
A Foundation in Allies
Year 2
Leadership Buy-In
Year 3
Cultural Value
Awareness 

& Conversation
Action
Sustainability
• Workshop: Engaging Men as Allies [Live or Virtual]
• Quarterly conference calls: To celebrate wins and
coach on breakdowns. [Better Man Circles]
• Inclusionary Leadership Training Program
• Inclusion Initiative/Task Force
• Cross-Gender Communication: 

A “gender fishbowl” communication event to launch the
next era of gender relations
•Enrollment of senior executives as advocates
• Full engagement from the top leadership is the single most important factor in culture change.
• Initial Engaging Men Workshop for senior executives followed by individual coaching and quarterly one-
day refreshers to engage with what is working well, needs improvement..
• Enrollment of middle management through a process similar to that for senior executives.
• Middle managers are where the rubber meets the road in terms of executing on the new culture of
gender partnership. They will need to be fully engaged and given tools to create gender partnership in
their teams, their relationships with each other, and to be role models for the organization.
•Roll-out of the initiative to all levels of the
organization through short workshops,
webinars, brown-bag lunches, and internal
communications efforts
•Anchoring of inclusive leadership as a core
value with creation of forums, structures, and
processes to ensure sustainability of the new
culture.You Are Here
• Policies Examined
• HR, Training, Development, Management,
Internal Communications
• KPI Measurement
• Teams, Tactics, Tasks
• Structures and systems
Post-Conference
Show & Share
Individual
Culture Creation
Experience
and Education
Individual
Organizational
Solutions 

and Systems
Leadership

and Commitment
Individual
1 sur 32

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The ROI of Inclusion

  • 1. THE 
 BUSINESS CASE FOR INCLUSIONARY LEADERSHIP with Dale Thomas Vaughn
  • 2. YOU WANT TO CHANGE THE WORLD AND GROW AT THE SAME TIME SIGN UP HERE FOR A CONSULTATION Workshops/Training Consulting/Culture Change Speaking “ ” I think you are on the ground floor of a major movement that is going to help men, women, organizations, and society! - Attendee, Professor, 
 University of Michigan
  • 3. As Seen On: Previous Speaking, Clients and Programming:
  • 4. TODAY’S AGENDA TODAY WE’LL COVER 1.THE PROBLEM 2.THE OPPORTUNITY 3.THE SOLUTIONS I. MY ROLE & RESPONSIBILITY
  • 6. 4 Based on a comparison of the full participant set for 2012 to 2015, averaged by company, with results weighted to match Fortune 500 industry composition. REPRESENTATION IN THE CORPORATE PIPELINE BY GENDER AND RACE8 % OF EMPLOYEES BY LEVEL IN 2017 ENTRY LEVEL MANAGER SR. MANAGER/ DIRECTOR VP SVP C-SUITE 11% WHITE WOMEN WHITE MEN 2016 PIPELINE % WOMEN 2017 PIPELINE % WOMEN CHANGE9 46% 47% 1% 37% 37% 0% 33% 33% 0% 29% 29% 0% 24% 21% -3% 19% 20% 1% 54% 47% 70% 67% 9% 31% 26% 26% 23% 12% 36% 61% 18% 18% 17% 11% 8% 6% 4% 3% 13% 16% 16%MEN OF COLOR WOMEN OF COLOR
  • 7. THE PROBLEM GENDER AND INNOVATION ▸ Tech, Telecom, and IT services are underperforming in a KPI that is positively correlated to product innovation… ▸ …there is a market correction coming. REPRESENTATION OF WOMEN ACROSS INDUSTRIES % OF WOMEN BY LEVEL 6–7 | WOMEN IN THE WORKPLACE: CORPORATE PIPELINE MANAGERENTRY LEVEL SR. MANAGER/ DIRECTOR VP SVP C-SUITE ENTRY LEVEL MANAGER SR. MANAGER/ DIRECTOR VP SVP C-SUITE A CLOSER LOOK Different industries have different talent pipelines Although women are broadly underrepresented in corporate America, the talent pipeline varies by industry. Some industries struggle to attract entry- level women (technology), while others fail to advance women into middle management (food, beverage, and restaurants) or senior leadership (insurance). REPRESENTATION OF WOMEN ACROSS INDUSTRIES (CONT.) % OF WOMEN BY LEVEL 54% 47% 38% 27% 23% 59%CONSUMER PACKAGED GOODS 49% 38% 29% 20% 17% 57% INSURANCE RETAIL 60% 54% 48% 45% 33% 31% TECHNOLOGY (HARDWARE & SOFTWARE) 36% 30% 27% 25% 20% 17% MEDIA & ENTERTAINMENT 50% 48% 43% 41% 34% 27% TELECOM & IT SERVICES 33% 24% 23% 21% 14% 15% AUTOMOTIVE & INDUSTRIAL MANUFACTURING 26% 20% 20% 18% 16% 13% TRANSPORT, TRAVEL, LOGISTICS & INFRASTRUCTURE 53% 33% 32% 24% 13% 19% 51% 42% 36% 28% 25% 18% BANKING & CONSUMER FINANCE 48% 43% 42% 34% 22% 26% PROFESSIONAL & INFORMATION SERVICES (INCLUDING LEGAL) 47% 35% 32% 23% 17% 17% ASSET MANAGEMENT & INSTITUTIONAL INVESTORS HEALTH CARE 51% 44% 40% 35% 73% 69% 46% 40% 36% 26% 22% 52%PHARMACEUTICALS & MEDICAL PRODUCTS 39% 33% 26% 20% 49% 22% FOOD, BEVERAGE & RESTAURANTS ENERGY & BASIC MATERIALS 40% 22% 22% 22% 15% 16%
  • 8. M N le a a o g w deserving employees fair and objecti Nearly 50% of men think women are well represented in leadership in organizations where only one in ten senior leaders is a woman
  • 9. “THE MOST SIGNIFICANT OBSTACLE IDENTIFIED IS AN ENTRENCHED MALE CULTURE, A BARRIER THAT EVEN MEN ACKNOWLEDGED MUST CHANGE.” ManpowerGroup WHAT’S THE HOLDUP?
  • 11. STRATEGY: MAKING THE CASE Companies and employees also don’t see eye to eye on why gender diversity is important. While 90 percent of organizations say they prioritize gender diversity because it leads to better business results, only 42 percent of employees think this is the case for their company. EMPLOYEESCOMPANY AND EMPLOYEE VIEWS ON COMMITMENT TO GENDER DIVERSITY COMPANIES % OF COMPANIES AND EMPLOYEES THAT SAY . . . go ahead, building a business case to get funding from executive leadership. But I feel like we’re not there yet.” My company prioritizes gender diversity My CEO prioritizes gender diversity 90% 52% 86% 50% Because it contributes to a positive image of the company 23% 52% Because it is fair to all people (i.e., the right thing to do) 75% 60% 90% 42% Because it leads to better business results LEVEL OF COMMITMENT REASONS WHY
  • 13. FIRMS WITH THE GREATEST GENDER DIVERSITY AMONG EXECUTIVES AND BOARD MEMBERS [EARNED] 300% MORE REVENUE 
 AND 50% HIGHER PROFIT 
 THAN THE AVERAGE COMPANY UC Davis 400 public companies reviewed THE BUSINESS CASE
  • 14. THE BUSINESS CASE A PREPONDERANCE OF EVIDENCE ▸ Of 7,615 firms surveyed by the London Annual Business Survey, businesses run by culturally diverse leadership teams were more likely to develop new products than those with homogenous leadership. ▸ In Innovation: Management, Policy & Practice, 4,277 companies in Spain were analyzed… companies with more women (gender diversity) were more likely to introduce radical new innovations into the market over a two-year period. ▸ In a global analysis of 2,400 companies conducted by Credit Suisse, organizations with at least one female board member yielded higher return on equity and higher net income growth than those that did not have any women on the board. ▸ A 2015 McKinsey report on 366 public companies found that those in the top quartile for ethnic and racial diversity in management were 35% more likely to have financial returns above their industry mean, and those in the top quartile for gender diversity were 15% more likely to have returns above the industry mean.
  • 15. THE BUSINESS CASE “THE MAGNITUDE OF THE EFFECTS IS NOT SMALL” ▸ …the correlation between women at the C-suite level and firm profitability is demonstrated repeatedly, and the magnitude of the estimated effects is not small. ▸ For example, a profitable firm at which 30 percent of leaders are women could expect to add more than 1 percentage point to its net margin compared with an otherwise similar firm with no female leaders. ▸ By way of comparison, the typical profitable firm in our sample had a net profit margin of 6.4 percent, so a 1 percentage point increase represents a 15 percent boost to profitability. ▸ When considering a broader set of firms, both profitable and unprofitable, the result is even more striking. For the sample as a whole, the firm with more women can expect a 6 percentage point increase in net profit, while overall median net profit was just over 3 percent.
  • 18. I GET IT GENDER PARTNERSHIP IS GOOD FOR BUSINESS
 WHAT’S IN IT FOR ME?
  • 19. PERSONAL CASE FOR MEN WHAT MEN GAIN PERSONALLY ▸ Less worry ▸ Less time at work ▸ More quantity AND quality time with loved ones ▸ Better relationship satisfaction ▸ Better sex - MICHAEL KIMMEL; MCKINSEY & LEAN IN
  • 20. “FEMINISM WILL MAKE IT POSSIBLE FOR THE FIRST TIME FOR MEN TO BE FREE.” Michael Kimmel THE PERSONAL CASE
  • 21. IF YOU ARE NOT ADVOCATING FOR WOMEN IN THE WORKPLACE, YOU ARE HURTING YOUR DAUGHTERS’ FUTURE. Jeffery Tobias Halter
 Why Women? PERSONAL CASE FOR MEN
  • 22. I GET IT GENDER PARTNERSHIP IS GOOD FOR ME
 BUT IS IT TOP PRIORITY?
  • 23. The economic case for gender parity of additional annual GDP in 2025 in the full-potential scenario of bridging the gender gap... … equivalent to the combined US and China economies today. $28 trillion Equal to 2x the likely contribution of women to global GDP growth in the business-as-usual scenario McKinsey Global Institute’s Gender Parity Score points to where 95 countries stand on gender parity. could be added in 2025 if all countries matched their best-in-region country in progress toward gender parity.$12 trillion
  • 25. “97% OF MILLENNIALS THINK THEIR GENERATION WILL FINALLY ACHIEVE EQUALITY OF OPPORTUNITY FOR EMERGING FEMALE LEADERS.” ManpowerGroup THE FIRST NATIVE GENDER-NEUTRAL GENERATION
  • 26. “MORE THAN HALF OF MILLENNIAL MEN THINK THAT THEY ENJOY MORE ADVANTAGES THAN WOMEN IN AMERICAN SOCIETY, LESS THAN 20 PERCENT OF THEM IDENTIFY AS FEMINISTS.” Spring 2016 Harvard Public Opinion Project poll WHY WE HAVE TO START ENGAGING MEN
  • 27. THE SOLUTIONS EVENTS Better Man Movement PROGRAMMING Gender Leadership Group Inclusionary Leadership (D&I Strategy) Consulting Allies Strategy Intersectional Allies Workshop Gender Partnership Strategy Engaging Men Workshop Inclusionary Leadership Certificate Program Virtual, Scaleable, LMS- Compatible 10 Week Training Course Better Man Conference SF UK NYC Toronto Australia Social Media Event Better Man Chat In-House Events Better Man Circles Half Day Better Man Talks
  • 30. Diversity training. Do people who undergo training usually shed their biases? Researchers have been examining that question since before World War II, in nearly a thousand studies. It turns out that while people are easily taught to respond correctly to a questionnaire about bias, they soon forget the right answers. The positive effects of diversity training rarely last beyond a day or two, and a number of studies suggest that it can activate bias or spark a backlash. Nonetheless, nearly half of midsize companies use it, as do nearly all the Fortune 500.
  • 31. WHAT IS MY ROLE AND RESPONSIBILITY?
  • 32. The Inclusionary Leadership Road Map SUSTAINABILITY LEADERSHIP COMMITMENT COMMUNICATION IMPACT Year 1 A Foundation in Allies Year 2 Leadership Buy-In Year 3 Cultural Value Awareness 
 & Conversation Action Sustainability • Workshop: Engaging Men as Allies [Live or Virtual] • Quarterly conference calls: To celebrate wins and coach on breakdowns. [Better Man Circles] • Inclusionary Leadership Training Program • Inclusion Initiative/Task Force • Cross-Gender Communication: 
 A “gender fishbowl” communication event to launch the next era of gender relations •Enrollment of senior executives as advocates • Full engagement from the top leadership is the single most important factor in culture change. • Initial Engaging Men Workshop for senior executives followed by individual coaching and quarterly one- day refreshers to engage with what is working well, needs improvement.. • Enrollment of middle management through a process similar to that for senior executives. • Middle managers are where the rubber meets the road in terms of executing on the new culture of gender partnership. They will need to be fully engaged and given tools to create gender partnership in their teams, their relationships with each other, and to be role models for the organization. •Roll-out of the initiative to all levels of the organization through short workshops, webinars, brown-bag lunches, and internal communications efforts •Anchoring of inclusive leadership as a core value with creation of forums, structures, and processes to ensure sustainability of the new culture.You Are Here • Policies Examined • HR, Training, Development, Management, Internal Communications • KPI Measurement • Teams, Tactics, Tasks • Structures and systems Post-Conference Show & Share Individual Culture Creation Experience and Education Individual Organizational Solutions 
 and Systems Leadership
 and Commitment Individual