diversity journal - jul/aug 2006

Also Featuring ... Halliburton’s Front-Runner Len Cooper • Catalyst

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2 Profiles in Diversity Journal July/August 2006

PUBLISHER James R. Rector

MANAGING EDITOR John S. Murphy

CREATIVE DIRECTOR Linda Schellentrager

MARKETING DIRECTOR Damian Johnson

CONTRIBUTING EDITOR Laurel L. Fumic

OVERSEAS CORRESPONDENT Alina Dunaeva

WEB MASTER Jason Bice

LETTERS TO THE EDITOR

Commentaries or questions should be

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Shaping Tomorrow’s Immigration PoliciesXenophobia and ethnocentrism are a pair of ten-dollar words you don’t

hear much outside of academia. They came to mind recently as I observed

the demonstrations about immigration, or, more precisely, how to keep

“illegals” out of the country.

Xenophobia is the fear of foreigners. Ethnocentrism is the belief that

our way of doing things is the best way, or at least the right way. It’s

ethnocentric to say that all countries should conduct business the way we

do in the United States. The xenophobe dislikes people who are not like us.

No one disputes that every country ought to have a rational immigra-

tion policy. I just wonder how much of the rhetoric we hear is driven by

xenophobia and ethnocentrism rather than by the desire for rational policy.

Both give rise to an unhealthy nationalism evidenced by a sign one demon-

strator held that said “America is for Americans.”

Too bad our society doesn’t yet embrace diversity and inclusion as well

as many of our largest companies do. Corporate America has taken a beating

recently because of the Enron scandal and other misdeeds. That’s unfortu-

nate, because leaders like Shell Oil Company’s John Hofmeister, featured

on this issue’s cover, and many others can and do teach us a lot about valuing

other peoples and cultures.

Learning about other cultures reduces fear and fosters respect. Every

CEO we talk to says that diversity makes a company a better place to work.

It will also make a country a better place in which to live.

In fact, in driving diversity and inclusion throughout the corporate

culture, today’s business leaders are positively influencing ever-increasing

numbers of individuals whose attitudes and actions will someday shape

our broader immigration policy.

When that happens, I’m confident that whatever policy we adopt will

be driven by compassion, respect, and responsibility—not by fear and

prejudice.

It can’t happen soon enough.

John MurphyManaging Editor

What does it take to be namedFORTUNE® magazine’s MostAdmired Health Care Company six years running?

People like you.

At WellPoint, we celebrate the diversity

of our workforce. We are the leading

health benefits company in the nation

serving the needs of 34 million members.

A FORTUNE 50® company, we are

strengthened by the commitment and

dedication of our associates. If you’re

looking to join a company where you will

see your ideas in action - where what you

do helps others live better, consider a

career with us.

Visit our Web site to search opportunities

throughout the United States at:

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Opportunities may be available in the

following areas:

• Actuarial

• Administrative/Clerical

• Advertising/Marketing

• Claims/Membership/Customer Service

• Compliance

• Corporate Communications

• Finance & Accounting

• Human Resources

• Information Technology

• Legal

• Management

• Nursing/Case Management

• Pharmacy

• Provider Network Development

• Sales

• Training

• Underwriting

SM

EOE. SM Service Mark of WellPoint Inc. FORTUNE and FORTUNE 50 are registered trademarks of FORTUNE magazine, a division of Time Inc. ©2004 WellPoint Inc. All rights reserved.


John HofmeisterPresident, Shell Oil CompanyHe’s driving a high octane diversity performance that everyone can admire. Here’s aninside look at a company whose challenges include a worldwide energy crisis and workers displaced by hurricanes.

Front-Runner Len CooperHalliburton’s supply chain senior vice president describes thesupply-chain programs and initiatives that keep Halliburtonon the forefront of diversity.48

6

60

16

departments

MomentumDiversity Who, What, Where and When

Health NotesHealth Care Industry News

CatalystSustaining Employee Networks

19On the Cover / Special Feature

“Micro-Smart is an engineering company specializing in the design and manufacture of downhole instrumentation and downholetools. Before getting work with Halliburton, business was good—but modest. Halliburton has definitely had a major, positive impacton our growth. And they've helped us realize our goal of working for leading international companies.”

Otis R. AndersonVice President, Engineering, Micro-Smart Systems, Inc.

A t Halliburton, we’ve been well rewarded for putting significant trust—

and business—in the hands of minority- and woman-owned businesses.

When you partner with us, opportunity is truly a two-way street. If you

have a minority- or woman-owned business, Halliburton has

the energy to help. And we want to talk to you! Please

contact us at [email protected].

© 2006 Halliburton. All rights reserved.

HALLIBURTON

H e l p i n g t o b u i l d s u c c e s s t h r o u g h s u p p l i e r d i v e r s i t y .


Allstate Names Anise D.Wiley-Little Chief DiversityOfficer

NORTHBROOK,Ill. – Anise D.Wiley-Little hasbeen promoted toassistant vice presi-dent and chiefdiversity officer forAllstate InsuranceCompany.

Previouslydirector of diversity & worklife, Wiley-Little will continue to lead diversity efforts but will now have the opportunity to better integrate, strengthen, and expand already-established diversity strategies. Thisincludes having direct accountability for supplier diversity.

“This newly created role reaffirmsAllstate’s long-standing commitment todiversity in the workplace and the communities it serves,” said AllstateCEO and Chairman Edward M. Liddy.“While we are continually recognized for our diversity efforts, we now have the opportunity to take this valuablebusiness initiative to the next level.”

Wiley-Little began her career atAllstate in 1984 and has over 20 years of experience in various human resourcesdisciplines including compensation,organizational development and design,policy and compliance, employee com-munications and technology optimiza-tion. She is on the boards of the YWCAof Lake County Illinois, CorporateVoices for Working Families and theSoaring Eagle Community DevelopmentCorporation. She received a bachelor’sdegree from Illinois State University andher master’s degree from the Universityof Illinois.

American Cancer SocietyNames Aurelia “Ree” StanleyNational Chief DiversityOfficer

ATLANTA –Aurelia “Ree”Stanley, nationalvice president ofhuman resources atthe Atlanta-basedAmerican CancerSociety, has beenappointed to thenewly created

position of chief diversity officer. In thisrole, Stanley will manage all operationsin support of the charity’s diversity ini-tiatives.

Stanley is tasked with an overallobjective of ensuring that people whoare fundamentally different in culture—in values, work styles and goals—worktogether effectively to ensure that theSociety, the nation’s largest voluntaryhealth organization, achieves its lifesav-ing mission.

“Ree brings critical perspectivesfrom her role as national vice presidentof human resources into her new role aschief diversity officer,” said John R.Seffrin, PhD, national chief executiveofficer of the American Cancer Society.“She will have an essential role to play ifthe Society is to create a truly inclusiveclimate in which all staff and volunteerscan realize their full potential and in turncontribute to a plural organization.”

Stanley began her career with theNational Home Office of the AmericanCancer Society in 1989 as its director ofcompensation. In 1992, she assumed therole of national vice president of humanresources and was responsible for allaspects of the human resources function.

Stanley holds a bachelor’s degree in business administration from EmoryUniversity in Atlanta. She also holds theprofessional certification of CCP

(Certified Compensation Professional).She is a member of United Way ofMetropolitan Atlanta’s DiversityCouncil.

The American Cancer Society isdedicated to eliminating cancer as amajor health problem by saving lives,diminishing suffering and preventingcancer through research, education,advocacy and service. Founded in 1913and with national headquarters inAtlanta, the Society has 13 regionalDivisions and local offices in 3,400 communities, involving millions of volunteers across the United States. Formore information anytime, call toll-free1-800-ACS-2345 or visit www.cancer.org.

American Red Cross TapsMori Taheripour for VicePresident, Corporate Diversity

Rick Pogue, seniorvice president,human resources,and chief diversityofficer of theAmerican Red Cross,has announced theappointment ofMori Taheripour to vice president

of corporate diversity. Taheripour will manage the day-to-day operations of thecorporate diversity department, and willreport to Pogue.

“The response from many in thediverse community to our hurricanerelief efforts over the past two years indicates to me that the Red Cross needsto take its diversity program to the nextlevel. I am convinced that Mori is theright individual to do just that,” Poguesaid in announcing the appointment.

Taheripour, an exceptional commu-nicator, has enjoyed proven success inmarketing healthcare initiatives tominority communities, as well as build-ing relationships with leading minorityhealthcare organizations. Since 1997,

Bring out the best in everyone,

and you can achieve great things.The men and women of Lockheed Martin are involved in some of the most important projects in the

world. Though naturally diverse, our team shares a common goal: mission success. Our differences

make us stronger because we can draw on the widest possible range of unique perspectives. Resulting in

innovative solutions to complex challenges. Lockheed Martin. One company. One team.

www.lockheedmartin.com

300-50542_div5_PD.indd 1 5/4/06 11:51:09 AM


she has served as the managing partner(and co-founder) of Innovative HealthSolutions, Inc., a healthcare consultingfirm dedicated to developing healthcareprevention and education initiatives fordiverse populations.

“This collective experience willguide Mori as she leads the Red Cross indeepening our ties with diverse commu-nities and in working to create strategicpartnerships on a local level,” saidPogue. Taheripour will focus on devel-oping and overseeing the implementa-tion of programs that engage diverseorganizations and individuals in supportof the Red Cross’s mission.

Born in Iran, Taheripour moved tothe United States in 1978. She attendedhigh school in New Jersey and receivedher BA in Psychology /PremedicalStudies from Barnard College ofColumbia University in New York. She moved to the San Francisco BayArea in 1992 to join her family. In2003, Taheripour earned an MBA fromThe Wharton School of the Universityof Pennsylvania. She is a lecturer for the Negotiations and Dispute Resolutioncourse at Wharton, at both thePhiladelphia and San Francisco campuses.

Stanley Zareff Is CreditSuisse Vice President

With over 17 yearsof experience atCredit Suisse,Stanley Zareff is avice president inthe bank’s corporatecommunicationsdepartment, wherehe is a presentation

skills and executive coach specialist.Zareff is currently the co-chair of

Credit Suisse’s Open Network. The net-work addresses the issues and concernsof Credit Suisse’s LGBT community.Stanley is a founding member of the

Open Network and has served on thesteering committee since its inception in 1999.

In 2004, Zareff received a CreditSuisse award for his efforts to enhancethe Bank’s culture through his diversityand inclusion volunteering efforts.Zareff is also involved in numerous philanthropic activities. He serves assecretary of the board of trustees forNew York City’s Lower East Side ServiceCenter, a nonprofit social servicesagency, and has recently joined theboard of the highly acclaimed UrbanStages theater company in New YorkCity. The company produces works bydiverse playwrights to outreach teenaudiences in the five boroughs of the city.Zareff has taught acting for over 20 yearsin New York, Los Angeles, and London.

Deloitte & Touche USA, LLP,Names Kaplan Mobray U.S.Diversity Recruiting Leader

NEW YORK –Mobray will leadthe company insetting diversityrecruiting objec-tives for campusand experiencedhiring. Mobrayearned his BA fromthe University of

Pennsylvania’s Wharton School ofBusiness and is a graduate of Deloitte’sNational Diversity & InclusionInitiative’s Breakthrough LeadershipProgram (BLP).

“Diversity recruiting supports ourefforts in building a rich and inclusiveculture where everyone—regardless ofgender, ethnicity, place of origin, orthinking style—can thrive to full poten-tial,” said Mobray. As head of U.S.diversity recruiting, Mobray will workwith national diversity leaders andregional diversity recruiters to create a

national recruiting strategy. Prior to his new role, Mobray

served as senior marketing manager forDeloitte’s national consumer businessindustry group, one of the largest industrypractices at the organization. He wasresponsible for communications andeminence programs, relationships withindustry boards and trade associations,marketing programs, events and publicrelations activities.

“I look at diversity recruiting as theengine that fuels our organization withpeople who allow us to deliver thebroadest perspectives, distinguishablesolutions for growth, and innovation to address our clients’ needs and win in the marketplace,” said Mobray.

Deloitte Touche Tohmatsu is anorganization of member firms aroundthe world devoted to excellence in providing professional services andadvice, focused on client service througha global strategy executed locally in nearly150 countries. With access to the deepintellectual capital of 120,000 peopleworldwide, Deloitte delivers services infour professional areas—audit, tax, con-sulting, and financial advisory services.

Freescale Taps JignashaAmin Patel To Lead Inclusionand Diversity

AUSTIN, Texas –FreescaleSemiconductor(NYSE:FSL, FSL.B)has named JignashaAmin Patel as direc-tor of inclusion anddiversity. She willlead Freescale’s globalworkplace initiatives

and drive an integrated strategy that isfocused on attracting, retaining, anddeveloping diverse talent at all levels ofthe organization. Patel believes thatdiversity and inclusion set the stage for

Is Nationwide for you?

person ality

Some people have an inner desire, a compelling force that drives them to take action, deliver on their promises and continually reach beyond what’s expected. It’s this passion for greatness that makes Nationwide associates special.

At Nationwide, it’s not about just filling a position. It’s about finding individuals with personality – that special blend of natural talents and innovative ideas. If words like passion, connection, commitment,vision and leadership inspire you, a career at Nationwide could be for you.

A number of job opportunities are available now in Columbus. Meet with one of our representatives or apply online at nationwide.com.

Are you ready?

Nationwide is an equal opportunity employer. EOE/M/F/D/VNationwide and the Nationwide framemark are federally registered service marks of Nationwide Mutual Insurance Company. On Your Side is a service mark of Nationwide Mutual Insurance Company. ©2005, Nationwide Mutual Insurance Company. All rights reserved.


innovation and give the company aunique and valuable understanding ofthe global marketplace. Her key focus in2006 will be on awareness and educa-tion, retention and recruitment efforts,branding, and community outreach.

“Freescale is committed to creatingan open, diverse, high-performance culture, across our global operations,”said Kurt Twining, senior vice president,human resources. “It’s not just a goal; itis a prerequisite for success in the globalmarketplace. Jignasha has proven experiencedriving culture programs that have adirect impact on the bottom line.”

Prior to joining Freescale, Patelspent more than five years at Dell in various management roles. Most recently,she led Dell’s inclusion and businessdiversity strategy efforts and was responsiblefor implementing the global inclusioninitiative for Dell.

Patel has practiced law in the areasof human rights, immigration and litigation management. She holds a BAin English & Spanish literature fromEmory University, and a JD from theUniversity of Miami.

Halliburton’s Global SupplierDiversity Manager ReceivesWomen Of Excellence Award

HOUSTON –Ingrid Robinson, manager ofHalliburton’s globalsupplier diversityprogram, has beenselected as one ofthe “100 WomenImpacting SupplierDiversity” and as

one of the 2005 “Women of Excellence”honorees by Women’s Enterprise magazine.The magazine is a national bi-monthlynews publication targeted to corporateprofessionals and women’s businessenterprises.

“The ‘100 Women ImpactingSupplier Diversity’ is the first and onlylist to honor 100 corporate women in

America who are recognized by theirpeers as best-in-class leaders and mentorsin the supplier diversity arena,” said LoriLayl of Women’s Enterprise. “Honoreesand their corporations were selectedbased on their continued presence insupplier diversity, with particular focuson efforts within the last year. Includedin this group are executive women whoconsistently participate in and create activities to develop women business owners and companies that stand at theforefront of diversity initiatives.”

Robinson joined Halliburton in2005 with 12 years of experience inminority and women’s business develop-ment with corporate, government andnon-profit organizations. In her role,she is responsible for developing andexecuting initiatives to enhanceHalliburton’s Supplier DiversityProgram.

“At Halliburton, we know that forsupplier diversity to truly be effective, itmust be integrated seamlessly into ouroverall business strategy,” said Robinson.“Promoting diversity among our supplierscontinues a longstanding Halliburtontradition of fostering innovation. It alsogives us another opportunity to alignwith our customers.”

Robinson has a bachelor of sciencedegree in political science from theUniversity of Houston and is involved innumerous professional organizations,including the National MinoritySupplier Development Council and theWomen’s Business Enterprise NationalCouncil and its regional affiliates inHouston, Dallas/Fort Worth,Oklahoma, Louisiana, and SouthernCalifornia.

Halliburton, founded in 1919, isone of the world’s largest providers ofproducts and services to the petroleumand energy industries. The companyserves its customers with a broad rangeof products and services through itsEnergy Services Group and KBR. Visitthe company’s World Wide Web site at www.halliburton.com.

David A. Rodriguez NamedExecutive Vice President At Marriott InternationalWASHINGTON – MarriottInternational, Inc. (NYSE:MAR)announced today that Mr. David A.Rodriguez has been appointed executive

vice president,human resources.Rodriguez succeedsBrendan Keegan,who will retirefrom the companyin August. He willhave corporate-wide responsibilityfor human

resources, including oversight forMarriott’s global portfolio of hotel andvacation ownership brands.

Prior to his new role, Rodriguezheld the position of executive vice president, lodging, human resources,since 2003. In this capacity, he hadhuman resources management responsi-bility for North America Lodging as wellas corporate-wide responsibility for theareas of talent management and organi-zational capability. In 2004, Rodriguezwas appointed to the Board of Directors’Committee for Excellence which focuseson diversity and inclusion.

Rodriguez graduated from NewYork University in 1980 and also holds a PhD in industrial/organizational psychology from that institution.

Marriott International, Inc. is aleading lodging company with nearly2,800 lodging properties in the UnitedStates and 66 other countries and territories. For more information orreservations, please visit the company’sWeb site at www.marriott.com.

These businesswomen have prevailed in nontraditional fields because they metchallenges head-on and took advantage of opportunities that came their way.Opportunities like becoming a vendor for Georgia Power, a subsidiary of SouthernCompany, the South’s premier energy company. Through our Supplier MentorProgram and other diversity initiatives, we have assisted qualified female andminority-owned companies acquire the experience, knowledge, and contacts tohelp grow their businesses. At Georgia Power, we believe that their success willcontribute to the economic success of all the communities we serve. To learnmore, visit us at southerncompany.com/suppliers/diversity.asp.

Y O U M I G H T B E S U R P R I S E D W H AT T H E Y C O N S I D E R W O M A N ’ S W O R K .

Cathy Arnett, President, Utility Support Systems, Inc., Distribution Engineering Services; Vickley Raeford, President, Raeford Land Clearing, Inc., Grading and Right-of-Way Clearing;Rajana Savant, President, Mesa Associates, Inc., Engineering and Research Development; Elizabeth Gats, President, Stag Enterprises, Inc., Commercial and Industrial Supplies Distributor.


MFHA Appoints MichelleMiller As Managing DirectorPROVIDENCE, R.I. – The MulticulturalFoodservice & Hospitality Alliance(MFHA), a nonprofit organization pro-moting the economic and social benefitsof diversity in the industry, has appoint-ed Michelle Monique Miller to thenewly created role of managing director.Miller now oversees all marketing andoperational functions of the organization.

“I am honored to have been promotedby our founder and president, GerryFernandez, and by the MFHA Board ofDirectors,” says Miller. “MFHA is in animportant growth stage and it is rewardingto shape strategy and talent togetherwith the MFHA management.”

A native of Boston, Mass., Millerholds a bachelor’s degree in Chinese andAsian studies from Harvard Universityand a master’s degree in higher educationadministration from Boston College.

Her interest in marketing emergedupon moving to Shanghai to teachEnglish in 1991, when multinationalcompanies were just beginning to makea return to the China market after theTiananmen Square uprising. She workedwith McCann-Erickson as a consultanton market entry strategies and ran focusgroups in Chinese. She served as groupaccount director for PepsiCo’s AsiaPacific division and as marketing directorfor Reebok /Rockport International.

This year is MFHA’s tenth anniver-sary, and Miller will guide the organiza-tion’s gala dinner and 2006 leadershipconference. Community leaders andindustry members from around thenation will gather in August inCambridge, Mass., to celebrate MFHA’saccomplishments of the past decade andto strategize for even greater success in the next.

Founded by Gerry Fernandez in1996, MFHA’s business model centers

around the image of a dinner table ofopportunity with four seats, each representing an industry component:workforce, customers, community andsuppliers. MFHA’s goal is to create programs and develop strategies for theneeds and challenges of each “seat,”allowing each component to help theindustry advance, remain competitive,and attract the best talent. To learn moreabout MFHA, visit www.mfha.net.

Symbol TechnologiesPromotes FourJan Burton has been appointed vicepresident for Symbol in Europe, theMiddle East, and Africa (EMEA) operations. Burton will oversee EMEAoperations, spearheading the develop-ment of Symbol’s sales and services capabilities in the region, and continueto deliver strategic and consistent businessvelocity. She has been vice president ofworldwide channels for Symbol sinceJune 2003, and has grown the channelbusiness to more than $1 billion (U.S.),and increased Symbol’s channel centricityfrom 45 percent to nearly 70 percent.

Boris Metlitsky, a 25-year veteranof Symbol, hasbeen named senior vice presi-dent of the globalproducts group.Dr. Metlitsky isresponsible forstrategy, develop-

ment and technology innovation in themobile computing, wireless, advanceddata capture, radio frequency identification(RFID) and mobility software productdivisions, as well as industrial design.Metlitsky has a PhD in electrical engi-neering and holds more than 60 patents.

Ray Martino, Jr., a 19-year veteran of Symbol, was named vice presidentand chief technology officer. Martinowill guide Symbol’s strategy in the development of new technologies andnext-generation products and services, tomaintain the Company’s position as theinnovation leader in enterprise mobility.Most recently, he has worked withSymbol’s global sales, product and marketing teams to define customerneeds and develop end-to-end solutionsto best address these needs.

Anthony Bartolohas been named vicepresident and generalmanager of theRFID division. Hewill be responsiblefor Symbol’s globalRFID programs andgo-to-market strategy.

Bartolo will also continue his role asgeneral manager of Symbol’s wirelessinfrastructure division, a position he hasheld since 2004, where he has played aninstrumental role in the Companyattaining a market-leading position inwireless local area network (WLAN)switches. He has a bachelor’s degree in electronics and communications engineering from the Royal MelbourneInstitute of Technology in Melbourne,Australia.

Founded in 1975, SymbolTechnologies holds more than 900patents in all areas of mobile technology,including mobile computing, wirelessinfrastructure, radio frequency identification, mobility software, services and advanced data capture. To learn more, visit www.symbol.com.

MFHA premier sponsors

Face the Challenges…Build Your Future

• Gerry Fernandez, President and Founder of MFHA, and Leah Chase, co-owner and chef at New Orleans’ landmark restaurant, “Dooky Chase”, will deliver the opening speech and welcome keynote

• Industry panels and workshops will create the opportunity to share ideas, to address concerns, and to suggest solutions on diversity issues when building your career

• Meet Chef Jeff and listen to his fascinating and unique story on how the restaurant industry offered a life-changing opportunity for him

• Register online at www.mfha.net

MFHA’sStraight Talk Symposium

Career Enhancement WorkshopsOctober 4-5, 2006 in New Orleans

at the Sheraton New Orleans Hotel

GandarillasHonored by OhioCommissionOn Hispanic /Latin AffairsRich Gandarillas, a

25-year veteran of Nationwide, has beennamed Distinguished Hispanic Ohioanfrom the Ohio Commission on Hispanic/ Latino Affairs. Gandarillas volunteerswith several organizations, including theBig Brothers and Big Sisters and KiwanisInternational.

“I appreciate the support and wisdom given by others to enhance the

Latino community,” Gandarillas said. “I am pleased to say that Nationwide isan advocate for the work among thediverse consumer population and sees itas an opportunity to bridge the gap.” In commenting on the award to Profilesin Diversity Journal, Gandarillas said, “At Nationwide, we have established a number of affinity groups to engagediverse thinking and enable our associatesto experience their cultural heritagewithin the corporate environment. One of those groups that is part of mypassion is the RISA Club (RaisingInterest in Spanish Awareness). Thisgroup is for those interested in buildinga more inclusive environment througheducation and social and business

networking. The members participate in a variety of activities including: mentoring Hispanic students, child carseat inspections, job fairs, festivals, andother educational and cultural events.

“I am extremely proud of theawards and accomplishments that havebeen bestowed upon me. But the realvalue is breaking down the barriers ofrace, politics, and social economic issuesto better our society and our future.

“The sacrifices that my parentsmade for me encourage me to make asacrifice for a cause so important andvital to strengthening not only the Latinocommunity, but all communities.”


PDJPDJ

S O C I E T Y F O R H U M A N R E S O U R C E M A N A G E M E N T

Join leaders in the field of diversity management at the SHRM Workplace

Diversity Conference & Exposition—an excellent learning and networking

opportunity for all professionals who are responsible for diversity in small,

medium and large organizations.

For more information, visit us online at www.shrm.org/conferences/diversity

or call SHRM at (800) 283-7476 (U.S. only) or +1 (703) 548-3440 (International).

06-0400

October 16-18, 2006 // The Century Plaza Hotel & Spa

Los Angeles, California

WORKPLACE DIVERSITYCONFERENCE & EXPOS IT IONN e w C h a l l e n g e s , N e w O p p o r t u n i t i e s

Inclusion + Insights = Innovation and Growth

Buzzwords? Hardly. Diversity and inclusion are central to how we dobusiness, from our ever-expanding portfolio of brands, to our peoplewho market and sell them across the globe.

Harnessing our employees' unique perspectives and backgroundsdrives our businesses and helps our people grow.

Do you want to make the difference?

For information on joining PepsiCo,visit www.PepsiCoJobs.com.

If only you could packagethis kind of passion...

...actually, you might saywe already have.


UnitedHealthcare Brings New Plan Options To SmallBusiness Owners WithBenchmark Solutionssm

New health plan portfolio now availablefor sole proprietors and businesses with2 – 99 employees

MINNEAPOLIS – UnitedHealthcare, aUnitedHealth Group (NYSE:UNH)company, has introduced UnitedHealthcareBenchmark Solutionssm—a new suite ofaffordable, consumer-centric healthplans designed specifically to meet theneeds of small-business owners, whorank medical costs as their No. 1 concern.

Small-business owners who takeadvantage of UnitedHealthcareBenchmark Solutions can offer employeesaffordable health care, as well as put

access to important health care tools attheir employees’ fingertips. AllBenchmark Solutions plans includeaccess to UnitedHealthcare’s useful, practical tools, incentives and servicesthat give members up-to-date informa-tion about their plan, as well as the ability to more actively participate inprograms that help improve their healthand well being.

Developed for individuals and forsmall businesses that employ 2 – 99employees, Benchmark Solutions offerssmall-business owners a menu of healthplan choices ranging from traditionalbenefits to consumer-driven plans thatprovide a new, alternative approach tohealth care. The suite of plans includesaccess to the increasingly popular healthsavings accounts (HSAs) and healthreimbursement accounts (HRAs) thatgive consumers greater control of their

health care dollars with savings andinvestment options.

Small-business owners and sole proprietors interested in more informa-tion on UnitedHealthcare BenchmarkSolutions can go directly to www.uhc.comand click on “Get a Quote.”

UnitedHealthcare (www.united-healthcare.com) provides a full spectrumof consumer-oriented health benefitplans and services, helping more than 25million individual consumers nationwideachieve improved health and well-beingthrough various health service systems.UnitedHealthcare arranges access toquality, affordable care with more than500,000 physicians and care professionalsand 4,600 hospitals across America.UnitedHealthcare is one of the businessesof UnitedHealth Group, a diversifiedFortune 50 health and well-being company. PDJPDJ

Our Clients include:

Constellation Energy

Blue Cross/Blue Shield of Florida

Eastman Kodak Company

Ernst & Young

Exelon Corporation

Exxon Mobil Corporation

Harrah's Entertainment Inc.

HCA Inc.

Hewitt Associates LLC

National GeoSpatial Intelligence College

Nationwide Mutual Insurance Company

Sodexho, USA

Starbucks Corporation

The Annie E. Casey Foundation

University of Michigan Institute forSocial Research

YWCA of Greater Pittsburgh

Inspiring Ingenuity from theWorkplace to the Marketplace

The Winters Group, Inc.

877-546-8944 • www.wintersgroup.com

Diversity Strategists • Celebrating 22 years in business

Mary-Frances Winters • Founder, Chief Executive Officer

There’s a place where everyone is

welcome. Where everyone is treated

the same. Boeing strongly supports

Profiles in Diversity Journal in their

never-ending mission to ensure that

every workplace is that welcome place.

www.boeing.com

Shell’s business principles include a commitment to sustainable

development—meeting the world’s energy needs in ways that

are environmentally and socially responsible. How does your

diversity strategy flow from this commitment?

The way I would describe it, our sustainable development and diversity strategies both

flow from an understanding that we have a responsibility to the society in which we

operate. In its simplest terms, it comes down to doing the right thing. We also

recognize that acting in ways that are socially responsible is in our best interest and

ultimately strengthens our shareholder value.

Despite his strong background in human resources, Shell Oil Company President John Hofmeister sees diversity and inclusiveness as business issues, not just HR issues. This company has a track record of success that reflects his thinking.

Shell Oil Company

Profiles in Diversity Journal July/August 2006 21

Special Feature Shell Oil Company

interview ::


How does Shell’s diversity

strategy contribute to share-

holder value?

I believe that our strategy makes us more

competitive both as an employer and as

a marketer. As an employer, having an

inclusive workforce strategy helps us to

attract and retain talented people from

all segments of society. And it’s not just

about hiring and promotions—being

inclusive means being open to new

approaches and ideas that people of

diverse backgrounds bring to the work

environment. That pays off in greater

creativity and innovation—elements we

critically need if we are to address the

energy challenge we face today.

As a marketer, a diverse workforce

and diverse supply chain strengthen our

ability to market to an increasingly

diverse customer base, both in the

United States and abroad. Energy is a

global industry, and our diversity is an

incredible source of strength in develop-

ing and working with markets abroad.

I know of instances where members of

our diversity networks, through their

participation in external affinity groups,

have brought us significant new business

opportunities.

The energy industry has

typically been a fairly cyclical

business, and throughout

the 1990s there was limited

hiring taking place in U.S.

energy companies. How has

that affected your ability to

make progress in workforce

diversity?

I am very proud of the strides Shell has

made in workforce diversity and inclu-

siveness over the past ten years. It’s not

just a matter of changing the demo-

graphics of the organization—although

we have accomplished a great deal in

that area—but about changing the

culture, so that diversity and inclusive-

ness are embedded in everything we do,

from our business decision processes to

our community relations activities.

I don’t think we or any company can

use lack of hiring opportunities as a

rationale for not moving forward on

diversity initiatives.

Now things have come

around 180 degrees, and

Shell is in a very competitive

hiring environment. What are

the challenges you face now?

The biggest challenge we face on the

“Energy is a globalindustry, and our diversity is an incredible source of strength in developing and working with marketsabroad. I know ofinstances where members of our diversity networks,through their participation in external affinitygroups, have broughtus significant new business opportunities.”

John Hofmeister President and CEO


hiring front is that there are not enough

students pursuing math and science

studies. And the gap is even more pro-

nounced among women and minorities.

It’s an issue right now and one that will

reach a crisis point in the next few years

if the trend doesn’t change. That’s why

we are focusing our social investment

dollars on workforce development initia-

tives—many of them focused on urban

schools—that we hope will encourage high

school and college students to consider

math and science careers and get elemen-

tary and middle school students excited

about these subjects.

How would you assess

Shell’s success in its diversity

initiatives at this point?

We’ve done extremely well in some

areas—the number of women in senior

leadership roles, the extent and success

of our employee networks, and our sup-

plier diversity programs are three areas

where I think Shell sets the standard

for our industry. We have not been

as successful in increasing the number of

people of color—both male and

female—in our senior ranks, and that

continues to be an area of focus for our

diversity initiatives going forward.

Before you moved into your

current role, you headed

Shell’s global human

resources function. How

does your human resources

background shape your

leadership approach?

At their core, most leadership issues are

people issues. I think that perspective

has been valuable to me in addressing

the challenges we have had to face since

I became president of Shell Oil

Company last year. As one example, the

Gulf hurricanes, Katrina and Rita, dis-

placed 4,600 of our employees in Texas

and Louisiana, and we had no estab-

lished policies to cope with the reloca-

tion and assistance issues that we faced.

We had to react quickly, and we were

able to do so because we made a decision

up front to “do the right thing” for

our employees and communities—to

respond to the human needs and not get

overly bogged down in bureaucracy.

You might expect me to say that I

take a particular interest in diversity

issues because of my human resources

background, but diversity and inclusive-

ness are not just human resources issues;

they are business issues. That is one

thing I think we at Shell have ingrained


:: interview

“At their core, mostleadership issues are people issues. I think that perspectivehas been valuable tome in addressing thechallenges we havehad to face since I became president of Shell Oil Companylast year.”

interview ::


in all of our leaders—that diversity and

inclusiveness are not things that are

“nice to do” after the other business

objectives are accomplished—they are

business imperatives that enable us to

accomplish all of our objectives.

What are the unique chal-

lenges of addressing diversity

in a global organization?

Shell’s diversity initiatives began in the

United States, and when we took them

to a global level, we realized that we

needed to redefine what we were trying

to accomplish, because diversity issues

vary from country to country, but the

principle of inclusiveness is universal.

We found, for example, that in a global

organization, diversity and inclusiveness

mean creating opportunities for devel-

opment and leadership for local people

working in Shell companies around the

globe, where traditionally the top lead-

ership positions in local companies had

been filled by Europeans.

Supply chain diversity is another

area where we have begun to create new

models on a global basis. In the recent

past, we looked for large suppliers who

could meet our needs around the world.

Now, we are working with different

approaches, including collaborative net-

works and second-tier partnerships, that

give minority and women suppliers

more opportunities.

Shell has been instrumental

in supplier development

efforts, strengthening the

ability of minority- and

women-owned businesses

to do business with Shell.

What is the return on this

investment?

When we purchase goods and services, it

is our responsibility to be good stewards

with our company’s funds. There is a

misconception that using minority and

women suppliers is not necessarily the

most cost-effective solution. But the

truth is that we have found a diverse

supply chain often gives us more agility

and a better line of sight into emerging

market needs and trends. It gives us

more flexibility and stronger relation-

ships in the communities where we

operate. And we can achieve these bene-

fits at competitive costs.

We are fast approaching the day


“When we purchasegoods and services, it isour responsibility to begood stewards with ourcompany’s funds. Thereis a misconception thatusing minority andwomen suppliers is notnecessarily the mostcost-effective solution.But the truth is that wehave found a diversesupply chain oftengives us more agilityand a better line ofsight into emergingmarket needs andtrends.”



Shell Oil Company is the U.S. affiliate of the Shell Group, a global group of energy and petrochemicalcompanies. With the world’s largest single-brand retail network, Shell operates in more than 140 countriesand territories. Approximately 22,000 Shell employees are based in the United States.

Including its consolidated companies and its share in equity companies, Shell Oil Company is one ofAmerica’s leading oil and natural gas producers, natural gas marketers, gasoline marketers, and petrochemical manufacturers, and a recognized pioneer in oil and gas exploration and production technology.Shell places great importance on making a difference in the environment in which people live and work, fostering and maintaining relationships with communities, taking care to be a good neighbor, and contributing to sustainable development initiatives.

Shell’s businesses in the United States:

• Shell Oil Products US refines, distributes, and markets fuels and lubricants.

• Motiva Enterprises (a joint venture between Shell and Saudi Refining, Inc.) refines, distributes, and markets oil products in the eastern and southern United States.

• Shell Exploration & Production Company acquires, explores, develops, and produces oil and gas.

• Shell Chemical LP produces petrochemicals used to make many of the essential materials of our modern world.

• Shell US Gas & Power provides access to U.S. terminals and markets that support Shell’s global leadership position in liquefied natural gas.

• Shell Global Solutions provides cutting-edge consulting and technology services to the petrochemicaland processing industries.

• Shell Renewables develops commercial opportunities in solar energy and wind energy.

• Shell Trading trades approximately six million barrels per day of hydrocarbons to support Shell’s refining and marketing businesses.

• Shell Hydrogen develops business opportunities in hydrogen and fuel cell technology.


when the United States will be a “majority-

minority” country—when those we tra-

ditionally think of as “minorities” will

compose the largest percentage of our

population. The real return on our

investment is the value of the equity we

are building in these communities,

where strong supplier relationships

translate into customer relationships

and brand value for the Shell name. At a

reception we hosted a while back for the

U.S. Hispanic Chamber of Commerce,

one attendee put this into words very

directly. He said that chamber members

should do business with the corpora-

tions that support Hispanic businesses,

and that means “buy Shell gas.” That

kind of endorsement, when we become

the vendor of choice, is a measurable

return on investment.

Shell has been recognized

for its diversity efforts by

organizations such as

Catalyst. What are you most

proud of in Shell’s diversity

efforts?

I think what I am most proud of is not

the statistics but the culture change we

have undergone. The process of becom-

ing more inclusive has led our organiza-

tion to become more open to new ideas.

Whether they are women, African

Americans, Generation Xers, or mem-

bers of any other affinity group, I think

our people feel that they can speak up

and be listened to. They can challenge

the status quo. They can share different

perspectives and be respected.

I look at how we work together and

I see a difference. One example is the

way our networks work collaboratively

in the community. To have all our

networks walking side by side to support

breast cancer research really shows

that we have come a long way in our

diversity journey.

Looking ahead, what is your

vision for Shell’s diversity

journey?

The easy answer is to say I see a future

where we no longer need to hold people

accountable for diversity and inclusive-

ness behavior because it will be second

nature. But we’ve got a ways to go as a

interview ::

“The process of becoming

more inclusive has led

our organization to

become more open to

new ideas. Whether they

are women, African

Americans, Generation

Xers, or members of any

other affinity group, I

think our people feel that

they can speak up and be

listened to. They can

challenge the status quo.

They can share different

perspectives and be

respected.”


For John Hofmeister, a diverse workforce is a critical element in marketing to an increasingly diverse customer base.



External recognition for Shell’s diversity initiatives includes:

America’s Top Corporations for Women’s Business Enterprises Women’s Business Enterprise National Council2003, 2004, 2005

Corporation of the Year Houston Area Women’s Business Enterprise Alliance2004, 2005

Advocate of the YearPatricia Richards, Manager of Supplier Diversity and Diversity OutreachHouston Area Women’s Business Enterprise Alliance2005

Procurement Champion of the YearRick Mahon, Procurement Manager, Shell Oil Products USHouston Minority Business Council2005

Corporate Volunteer of the YearKelly White, Coordinator of Supplier and Diversity OutreachHouston Area Women’s Business Enterprise Alliance2005

Catalyst Award 2004

Corporation of the YearHouston Minority Business Council 2004

Corporation of the YearLouisiana Minority Business Council2004

Top 5 Companies for Supplier Diversity DiversityInc.com 2003

Woman of Excellence Patricia Richards, Manager of Supplier Diversity and Diversity OutreachWomen’s Enterprise Magazine2003

society and as a company before we

reach that state. I would like to see

greater progress on increasing the num-

ber of people of color in our leadership,

and I am excited by the potential for

shaping our future by attracting more

women and people of color into the

energy industry and particularly into

math and science roles.

We’re at a turning point in the

energy industry as we focus our atten-

tion on solving the challenge of supply-

ing the world’s growing energy needs

while protecting our fragile environ-

ment. We need a diversity of people

with talent and passion to help us

address this challenge. Those people—

men and women, Anglos and people of

color, people from around the globe—

will shape not just Shell’s future but the

future of all of us who count on having

sustainable energy. That’s a huge

challenge, and my vision is that our

journey will enable us to meet that

challenge successfully.

PDJPDJ

Lynn Elsenhans, ExecutiveVice President, Shell Global

Manufacturing, acceptedthe 2006 Corporation of the

Year Award from theHouston-area Women’s

Business EnterpriseAlliance in June.


John Jefferson Director of Diversity

For Shell Oil Company, building a culture of diversity and inclusiveness has been a

continuous journey, one that began formally in the mid-1990s with a small team’s

mission “to understand the human and business possibilities of a culture in which all types

of differences are valued—a culture in which diversity is appreciated as a means to high

performance rather than an obstacle.”

More than a decade later, Shell continues to work toward becoming a model of that

culture. The energy company has been recognized nationally for its success in transform-

ing from an organization in which employees viewed the criteria for senior leadership as

“white, married, and male,” to one in which diversity and inclusiveness are not only

visible at the senior management level, but also incorporated into the way business is

conducted at every level of the organization.

“We don’t spend much time internally talking about the ‘business case’ for diversity

anymore,” says John Jefferson, director of diversity for Shell Oil Company. “It has become

accepted throughout our culture. We continue to evolve in terms of achieving our goals,

but I think there is universal understanding and acceptance of our diversity process across

the company.”

The case for diversity is especially powerful in an industry that is competing

globally for the best minds in science and technology—people who can help to

The Lessons

John Jefferson, director of diversity for Shell Oil Company,ensures alignment of diversity and inclusiveness effortsacross the U.S.

We Have Learned

solve the world’s growing imbalance in

energy supply and demand.

“Workforce diversity is about

enabling our businesses to attract, retain,

and develop the people we need to exe-

cute our business plan,” says Jefferson. “It

is essential to our success.”

Jefferson notes that in the

geosciences and other technical areas,

recruiting “the best of the best” is a chal-

lenge, because the number of candidates

is limited and the number of women and

people of color entering these fields is

even smaller. Being able to demonstrate

to these candidates that they will be

entering a work environment that is sup-

portive and welcoming is crucial.

The business imperative was not as

obvious in the mid-1990s, when the ener-

gy industry was struggling with an envi-

ronment of low and declining oil prices,

operating with lean staffs and few new

hires. But forward-looking leaders within

Shell recognized that both internal and

external factors were signaling the need

for change. Internally, employee feedback

showed women and employees of color

felt dissatisfied with opportunities for

development. Externally, the demograph-

ics of the labor market were shifting.

Clearly, if Shell continued on the path it

was on, the company would not be able

to attract and retain the people it needed

for the future.

At a diversity awareness seminar for

Shell Oil Company management in

1996, the company’s CEO outlined the

drivers for change, and made a commit-

ment that set the tone for Shell’s ongoing

diversity effort: to set and track measura-

ble goals. “Without accountability, we

will continue to select people just like us,

and we won’t change fast enough,” he said.

That accountability has become one

of the backbones of Shell’s diversity and

inclusiveness efforts. Businesses are held

accountable annually through a “diversity

scorecard,” and leaders’ compensation is

tied in part to their individual perform-

ance relative to D&I goals. Performance

measures are not limited to hiring and

promotion statistics, but also include

participation in diversity programs and

utilization of diverse outside suppliers.




A second key component of Shell’s

diversity process is its employee network

groups. Although informal employee

networking had been in place for many

years, in 1997 Shell created formal

guidelines for the networks to serve two

roles: as resources for leadership on

diversity issues, and as a support system

for development and information shar-

ing among their members. While sanc-

tioned and funded by the company, the

networks are managed entirely by

employee volunteers with support from

the diversity office.

“In my opinion our employee net-

work program is best in class in our

industry and among the best in the

Fortune 500,” Jefferson says. “We have

worked to make sure they serve a busi-

ness purpose and are not seen as social

clubs. We now track the performance of

our networks with their own scorecard.

Each network is required to have a busi-

ness plan for the year before its budget

is approved.”

Supplier diversity is a third major

thrust for Shell, and one that is growing

in importance as outsourcing becomes a

larger element in the way the company

operates. Shell seeks out diverse suppli-

ers in all facets of its business and works

with major vendors and partners to help

them strengthen their supplier diversity.


Frank Glaviano

As Vice President Production, Americas, for ShellEnergy Resources Company, Frank Glaviano oversees1,000 Shell people involved in producing oil and naturalgas: engineers and business professionals, as well asoperations workers. We asked for his perspectivebased on a 30-year career with Shell:

On accountability:

“You can’t hold people accountable for their beliefs, but you can hold themaccountable for their actions. Our measures focus on behaviors. As we embedthose behaviors in the organization, we open up people’s minds to the value ofdiversity and create more fertile ground for changing their heads and hearts.”

On how Shell’s diversity initiative has changed the culture:

“Beyond demographics, there’s more acceptance of diverse ideas anywhere inthe organization. We’re much less hierarchical. It used to be that if you were anew engineer you didn’t speak in a meeting. Now, if you are in the room, wewant to hear you. That means we challenge established norms and get all thebest ideas on the table.”

On reaching a tipping point:

“Recruiting is a challenge right now because we’re in a hot industry—there’s alot of hiring with a limited supply of new professionals coming into the field. Aswe recruit women and people of color, they are looking at our current workforcedemographics. The more diverse we are, the more appealing we are as a placefor them to build a career. We’re approaching a tipping point where diversitybecomes self-perpetuating. We’re not there yet, but every new hire helps.”

On the diversity journey:

“It’s been a long and sometimes slow journey. In the beginning we basicallyhad to teach the organization how to spell diversity. Now we’re past the aware-ness phase—or should be—and it’s about making diversity a part of everythingwe do.”

On diversity and Hurricane Katrina:

“In the days and weeks following Katrina, there was a feeling of family. I didn’tsee any differentiators or labels—we all pulled together. It was love, if I can usethat word in an organizational sense. It was an experience unique in my career.If we could always behave in that way, we wouldn’t need to promote diversity—we were living those values.”

Point of view:

“Supplier diversity helps us achieve

our business goals by giving us access to

a broader range of resources at both the

first-tier and second-tier levels,” Jefferson

says. “From a broader perspective, it also

builds our credibility and goodwill in

the community, which enhances our

brand and our reputation—and that’s

good for business, too.”

Along its journey, Shell has also

become an active proponent of diversity

in the community. The company has

been involved in creating and support-

ing a number of organizations working

to improve opportunities for women,

people of color, people with disabilities,

and the gay, lesbian, bisexual and trans-

gendered (GLBT) community.

The results of Shell’s diversity com-

mitment are dramatic, particularly in

the area of advancing women. In 2005,

women represented 26.5 percent of the

total employee population at Shell,

compared with 22 percent at year-end

1997. Women composed 34 percent of

senior executives and 23 percent of its

management workforce.

Progress on workforce representation

of people of color has not been as rapid.

“We are moving in the right direc-

tion,” says Jefferson. To close the gap,

Shell has enhanced its focus on this area,

with a goal of reaching parity with the

market demographics by the end of 2009.

One issue is that historically,

engineering and geosciences have not

attracted large numbers of people of

color. In response, Shell in 2004 created

a workforce development initiative with

one of its goals being to encourage

students to get involved in math and

science during elementary and second-

ary school.

“It is a long-term approach to the

issue,” says Jefferson. “The idea is to

increase the talent pool. Shell would not

be the only beneficiary, but by being vis-

ible to these students we hope to gener-

ate goodwill that will encourage them to

think of us when they enter the field.”

The diversity journey for Shell over

the past decade has been a learning

process.



“In my opinion our

employee networks

are best in class in our

industry and among

the best in the Fortune

500. We have worked

to make sure they

serve a business

purpose and are not

seen as social clubs.”

Members of several Shell employee networks joined together to support a walk benefiting the United Negro College Fund.



Cathy Lamboley

Catherine Lamboley is senior vice president, general counsel and corporate secretary of ShellOil Company. She is recognized nationally as anadvocate for diversity in the legal profession andas the architect of the innovative supplier diversityapproach Shell launched in its legal services area,in which seven of 27 firms that handle Shell’s business have partnerships where women and people of color outnumberwhite men. We asked Cathy her perspective on Shell’s diversity initiatives:

On pushing suppliers to improve their diversity:

“Why exert market pressure? We value diversity among our suppliers for thesame reasons we value it internally—because it is good business as well as theright thing to do. As we explain to our suppliers, we value having people of diversebackgrounds who can provide different ways of looking at things that can lead tobetter solutions.”

On the scorecard Shell uses to evaluate its legal firms:

“To retain and advance talented women and people of color, it is critical thatthose lawyers have the opportunity to do challenging work and to have meaningfulinteraction with clients. Tracking, reporting, and follow-up cause the firms to be very focused on training, mentoring, work assignments, and leadershipdevelopment so that the women and men of color are prepared to take on those opportunities.”

On making diversity work:

“It takes a commitment of time and energy from many people at all levels of theorganization. Generating and sustaining that commitment requires that peopleunderstand the benefits of diversity. It has to be managed strategically so thatdiversity creates a competitive advantage, making the company an employer of choice, a partner of choice and a supplier of choice.”

On Shell’s diversity journey:

“We’ve come a long way since I first started with Shell 27 years ago. Back then,senior leaders were generally perceived as ‘white, married, and male.’ Now thevalues of diversity and inclusiveness are woven into the fabric of our organizationand we firmly believe these values are critical to our success.”

On her own journey:

“We are all challenged to define what we will do to enrich our profession andwhat we want our legacy to be. For me, that deeper level is about providingopportunity for women and minority lawyers and building community within our profession.”

Point of view:

“It has been a continuous series of

small ‘Aha!’ moments,” says Jefferson.

“The lessons we have learned help us to

continue to improve, and can help other

companies that are on this journey with us.”

Jefferson cites three key lessons:

First, to be successful, the diversity

process requires a commitment of time

and energy by many people at all levels

of the organization.

Second, diversity must be integrated

into the business processes and systems

of the company in order to ensure con-

sistent, effective implementation and

longer term sustainability. Finally, diver-

sity efforts must include measurable,

achievable goals that leaders are held

accountable to deliver.

Beneath all three learnings is the

understanding that diversity plays a

strategic role in the business’s ability to

succeed. “Our diversity and inclusive-

ness process is coordinated through

human resources because it is a human

systems process, but it is owned by

the business and functional leaders,”

Jefferson points out. “Managed strategi-

cally, diversity and inclusiveness create

a competitive advantage as the company

becomes an employer of choice, a partner

of choice and a supplier of choice.”

PDJPDJ



for Diversity and Inclusiveness

As the workforce becomes increasinglydiverse, the company can gain a distinct competitive advantage byattracting, retaining and developingtalented people with diverse back-grounds and perspectives.

Effective diversity and inclusivenessmanagement helps remove barriers to productivity and provide an environ-ment in which these employees cancontribute fully toward achievingShell’s business goals.

Employees who feel respected, valued, and connected develop stronger relationships and become more involved in their work, which leads to enhanced teamwork, increasedinnovation and productivity, lower staff turnover, lower absenteeism, and reduced costs.

Shell’s customer base is becoming more diverse. By having a workforce that reflects thedemographics of the consuming public, we can more effectively understand, anticipate,and respond to customers’ needs.

An effective diversity process helps ensure that federally mandated affirmative actiongoals are addressed and achieved.

Promoting diversity and inclusiveness enables the company to build relationships anddemonstrate respect and fairness in its dealings with suppliers, partners, the govern-ment, and other stakeholders.

Promoting diversity and inclusiveness enhances our reputation and promotes loyalty,which, in turn, earns us the right of access and the license to operate and grow.

Promoting supplier diversity and supporting the growth and development of women- andminority-owned businesses within our community helps improve the climate in which weand our partners conduct business.

By promoting diversity not only within our own ranks but also in the communities in which it operates, Shell is helping make these communities better places for its employeesto live and work.

Shell hopes to attract more professionals from diverse backgrounds to help address the challenge of maintaining an energy supply for thefuture.


Flo Perry Senior Advisor, Diversity

When Shell established its first formal employee network groups in 1997, the

guidelines made it clear that these were to be more than just social groups. No

one could have imagined just how much more they would become.

“Our networks are an extension of the diversity office,” says Flo Perry, senior advisor,

Shell U.S. Diversity Office. “They allow us to tap into the minds and hearts of our

employees and know what issues we ought to be looking at.”

From the outset, the networks were assigned two roles: first, as resources to the

company’s leadership teams on business- and people-strategy issues; and second, as a

support system and forum for development, information sharing, and education among

their members. Over time, a third role has emerged as the network groups have become

involved in community and external business activities: representing the Shell brand and

modeling its diversity and inclusiveness behavior to the external world.

About 20 percent of Shell’s 22,000 U.S. employees participate in one or more of its

eight network groups. The initial five groups represented Asian-Pacific, Black, women,

Hispanic and GLBT (gay, lesbian, bisexual and transgendered) employee populations.

Four groups have been added, including a network for employees with disabilities,

regional networks in Louisiana (where 20 percent of Shell’s U.S. employees

are located) for Blacks and for women, and a network for Generation Xers.

Employee Networks:

Flo Perry, senior advisor, Shell U.S. Diversity Office,shares the internal and external role of the company’semployee networks.

Modeling Diversity and Inclusiveness


“The real strength of our network

groups is that they are aligned with our

business objectives,” says Perry. “We hold

the groups accountable for supporting our

business and, in turn, the business leader-

ship supports the time and dollars that are

invested in the networks.”

While each network is self-directed

by elected volunteers, the Shell U.S.

Diversity Office via Perry provides over-

sight and serves as a resource to them to

ensure they are meeting their goals and

objectives. At the start of each year, Perry

meets with the leaders of each network to

review their annual plan and approve a

budget for the year.

“We start with a zero-base budget

and prioritize their activities,” she

explains. “There are always more ideas

than there are dollars. My role is to chal-

lenge the network leaders to show how

each activity contributes to meeting their

objectives and how it adds value to

the organization.”

Guiding this process is Shell’s net-

work scorecard, a tool for assessing the

progress of employee network groups. An

assessment tool was initiated in the late

1990s as a self-assessment tool for the

networks intended to be used for devel-

opmental purposes. The current score-

card, which holds networks accountable

for delivering specific business objectives,

and which mirrors the U.S. Diversity

Scorecard, was the first of its kind when

Shell initiated it in 2003. The scorecard

rates a network group on four key areas:

• Attraction, retention and development

• Enhanced business practices: Did the

group model supplier diversity in its

own spending, and did it build strong

partnerships with external groups?

• Brand, reputation and market share:

How active was the group in events

that directly supported Shell’s external

brand or image?

• Partnerships: How active was

the group in partnering with other

corporate events and with other

network groups?

Each area is scored on a four-point

scale from “red” (improvement needed)

to “blue” (premier). Network leaders and

their steering committees establish annual




progress goals. While the first three areas

focus on what networks do, the last goal

measures how they do it, and its score

in this area essentially represents each

network’s D&I score. Not every group is

expected to reach premier status in all

categories, but most groups strive for the

higher score.

Among the four areas, attraction,

retention and development is the heart of

each network’s programming. Network

members participate in recruiting fairs

and other Shell recruiting activities, speak

at new hire orientation sessions and host

welcoming socials to make new employ-

ees feel at home. They also organize

lunch-and-learn sessions, both to meet

members’ needs and to reach out and

educate others about culture and gender

issues. A structured mentoring program

using both one-on-one pairings and

small-group “mentoring circles” helps

employees learn from senior-level

role models.

Each network also creates larger-

scale programs. A few examples:

• The employee network group for

women sponsored a workshop in

which four senior women from Shell

shared their personal lessons and best

practices around three key ingredients

for increasing career opportunity:

defining success, becoming known,

and finding or being a mentor.

• Members of Shell’s Asian-Pacific net-

work group worked with the diversity

office of Shell’s information technology

business to identify opportunities to

improve retention of Asian-Pacific

information technology employees. A

network team assisted in determining

background factors and developing

suggestions for improvement, such as

training mid-level managers about

Asian-Pacific value systems and culture.

• Shell’s Hispanic employee network

group has organized a series of Juntas,

based on the Spanish conversational

term for “meetings.” These limited-

size sessions bring employees together

with experienced leaders in a format

that allows everyone to participate.

By participating, network group

members develop professionally, learn

how to navigate the corporate system,

and gain visibility with senior leaders.

Beyond the structured activities, the

groups help members bond with the

organization just by providing a place to



Shell’s Hispanic (far left) and Asian-Pacific (left) employee networks are visible representatives of Shell in the community.

belong within the larger employee body.

“It gives employees a place to be

where people are like themselves,” says

Perry. “That sense of belonging creates a

strong link that both attracts people to

the organization and encourages them to

stay once they are part of the Shell family.”

Part of the retention and develop-

ment role of the networks is serving as a

conduit for information about the needs

and issues affecting group members. This

information helps Shell respond to

emerging diversity issues. In turn, the

Shell U.S. Diversity Office makes sure

the network leaders have access to senior

leaders and that new executives are intro-

duced to the networks.

Paralleling the standards set for

Shell’s business units, the network groups

are rated on how well they model supplier

diversity, with a goal of spending more

than 50 percent of discretionary dollars

with certified minority- or women-

owned suppliers. They are also encouraged

to build partnerships with outside minor-

ity business groups. In one case, Shell’s

Hispanic network has partnered with

other organizations such as the Houston

Hispanic Chamber of Commerce to

organize workshops to help non-certified

minority-owned businesses obtain

certification.

The network groups are also expected

to be visible externally in ways that sup-

port Shell’s brand and reputation, partic-

ularly within their own affinity commu-

nities. In 2004, for example, two mem-

bers of Shell’s Asian-Pacific network

group served on the organizing commit-

tee for a global technical symposium on

Chinese petroleum and petrochemicals.

They recruited a Shell executive who

serves as an advisory board member to

the network to speak at the symposium

about successful business partnerships.

As an outgrowth of this involvement, Shell

ended up forging a partnership with

PetroChina Company Ltd. to develop a

major natural gas project in China.

This year, a Shell Asian-Pacific

network member is chairing a diversity

summit for the Association of Chinese

American Professionals.

Network groups also reach out

to the community through volunteer

service projects. Members of Shell’s

GLBT network have taken on projects



in Houston’s Montrose neighborhood,

which has a large gay population, and

the Hispanic and Black networks have

participated in home repair and other

projects in the city’s black and Hispanic

communities.

Shell also encourages partnerships

that further align the network groups

with other Shell activities, such as the

annual United Way campaign, and create

opportunities for the groups to work

together and support each other.

Internally, the Generation X,

Hispanic, and women’s networks recently

collaborated to present a seminar on

career paths, including presentations

from a woman supervisor who began as

an hourly operations employee, a manager

who discussed how to cross over to a

different functional or skill area, Shell’s

chief financial officer, and a human

resources professional.

Externally, for the past two years,

several network groups have joined

together to support Shell’s sponsorship of

the Education Rainbow Challenge

(ERC), a nonprofit organization that pro-

motes interest in math among inner-city

children in primary grades. Network

members volunteer at ERC competitions,

helping with registration, test monitoring

and judging, and other tasks. This proj-

ect, part of Shell’s long-term Workforce

Development Initiative to increase the

pool of math and science talent coming

out of colleges and technical schools in

the future, is an excellent example of how

Shell’s diversity efforts align with its

business goals.

The networks banded together dur-

ing the year to support a United Negro

College Fund walk and the Susan G.

Komen Race for the Cure, which

supports breast cancer research.

“As our networks support each other,

they form a picture of what diversity and

inclusiveness ought to look like,” says

Perry. “They model the behavior we want

to see throughout the organization.”

PDJPDJ

Flo Perry, shown speaking at an event for Shell interns,notes that the employee networks are important in attracting, retaining and developing employees.



Purpose Statement

Shell employee networks exist primarily to:

• Assist in fostering and enhancing the professional growth and careerdevelopment of its members through network sponsored programs andactivities.

• Facilitate improved communications between network constituents andcompany leadership.

• Bring together employees with similar interests and experiences, and provide better access to informal information that may be helpful toemployees in becoming more successful within the company.

• Provide additional opportunities for members to develop and demonstrateleadership skills.

• As required, support company recruiting efforts and formal talent management processes.

• Provide perspectives and act as a resource on emerging/niche markets.

• Assist business leaders by generating ideas to enhance revenue and ourcustomer base.

• Support Shell’s community outreach efforts.

• Assist with company mentoring and on-boarding activities, and staff retention efforts.

• Proactively seek opportunities to assist with diversity related issues thatare important to the business.

Well-managed network groups provide a resource for business and diversityleadership, diversity councils and diversity action teams. They provide aforum to participate in developing solutions for issues that are viewed asorganizational barriers to inclusiveness and the productive performance of its members. We expect these networks to help, when appropriate, with resolution of business issues through influence, education, and collaboration.


Patricia Richards Manager, Supplier Diversity and Diversity Outreach

In every Shell discussion of diversity strategies, the phrase “aligning with our business

objectives” is a recurring refrain. Supplier diversity is no exception.

“First and foremost, there has to be a business incentive for diversifying the supply

chain,” says Patricia Richards, manager, supplier diversity and diversity outreach. “For us,

the business benefits have included innovative ideas received from diverse suppliers, and

finding that these suppliers also have a unique ability to deliver quality and competitively-

priced products and services necessary to run our operations.” An indirect benefit, she

notes, is that contributing to the revenue-generating ability of local diverse businesses

builds healthier communities where Shell operates and employees live and work.

For the past several years, Shell has gone beyond seeking out and utilizing minority-

and women-owned business enterprises and has begun reaching out to increase business

access for minorities and women in the supplier community by sharing their commitment

with major suppliers.

“We set certain contractual expectations of our suppliers,” says Richards. “Then we

let them determine how to demonstrate supplier inclusion as they bid for Shell projects.

There is an education process involved, but ultimately it comes down to looking at the

whole value stream—how can we get all our business partners to work together to deliver

goods and services in a cost-effective way that is in keeping with Shell’s commitment

to diversity.”

Supplier Diversity:

Patricia Richards, manager, supplier diversity and diversity outreach, shares initiatives and success storiesinvolving M/WBE utilization and development.

Contributing to the Business Value Stream

Some of Shell’s biggest successes

have occurred in the professional services

area, especially in legal services.

In 2000, Shell launched an initiative

with its key law firms to require that they

detail on invoices the hours worked and

fees generated by all women and men of

color and report on minority and women

business utilization.

Three years ago, Shell made a deci-

sion to narrow down its number of law

firms to create a core group that would

handle the majority of its legal work. The

rationale was to build stronger relation-

ships with firms that had a deeper under-

standing of Shell’s business. The selection

criteria included a commitment to diver-

sity. Of the 27 firms selected, seven had

partnerships where women and people of

color outnumbered white males.

In 2004, Shell was one of 23 corpo-

rate partners who committed to doubling

their spending with minority-owned pro-

fessional services firms in the greater

Houston area over the next five years.

This initiative was launched by the

Greater Houston Partnership and

Houston Minority Business Council.

Shell held three professional services

forums in Houston during 2005, match-

ing 40 minority business owners with

internal decision-makers to assess their

capabilities and discuss business opportu-

nities. As a result, in the first year of this

initiative, Shell exceeded the target goal

by 61 percent.

“In 2005 it was a local effort, but we

expect this success to ignite an increased

emphasis on diversity in professional

services utilization in other regions where

we operate,” says Richards. “Professional

services can be a particularly difficult area

to gain traction for minority and women

business enterprises.

“There is strength in numbers,”

Richards points out. “Working together,

corporations can elevate the potential

business development of women- and




minority-owned firms, and address issues

like inclusion in global contracts.”

Another success story is in the office

products area. Last year, Shell leveraged

volume requirements for office products

nationwide through a comprehensive

online bidding process that required

prime suppliers to team with capable

minority firms in the bidding process.

The firm that offered the most innovative

and cost-effective model won the bid.

Shell initiated a unique partnership

agreement with a consortium consisting

of one majority partner, Corporate

Express, and three MBEs to buy a wide

variety of office products. Corporate

Express provides distribution and logis-

tics support in the Star Consortium

Alliance, while three minority-owned

firms and one woman-owned firm pro-

vide delivery, warehousing, customer serv-

ice and contract management services.

The partnership resulted in a win-

win situation for all: Shell was able to cut

costs on its annual spending on office

supplies and enjoy increased efficiencies.

Lee Office Solutions, a Houston-based

MBE, benefited from this partnership

and a mentoring relationship with

Corporate Express—helping Lee to

develop and win other contracts in

Dallas and Houston, using the same

alliance model.

There are many other success stories

involving M/WBE utilization and devel-

opment in all business operations. Last

year, Shell spent $445 million with

minority- and women-owned firms

nationwide.

Shell also launched a more robust

second-tier process in 2005 to increase

opportunities at a second-tier level.

Currently, business units and depart-

ments are engaged in dialogue with prime

suppliers and setting expectations that

increase the accountability of these firms

to source from minority- and women-

owned firms. A greater use of inclusive

contract language, setting second-tier

targets and objectives, and creating tools

and templates to measure supplier

performance, send a strong message

regarding Shell’s commitment to second-

tier efforts. As a result, the partnerships

between Shell businesses, prime suppliers

and M/WBEs will be leveraged—creating

better results for Shell’s supplier diversity

program.

“We have been working with our key

prime suppliers to help them understand

why this is important—for us and for

them,” says Richards. “They need to see

what they will get out of it.”

Patricia Richards Manager, Supplier Diversity and Diversity Outreach

Patricia Richards recently metwith vendors at a supplier development workshop.


One example where Shell has already

been successful in this area is with

Halliburton, a major contractor of

oilfield services to Shell’s exploration and

production business.

“A number of years ago, Shell and

other oil and gas corporations engaged

with this large supplier and encouraged

them to build their own supplier diversity

program (and report M/WBE spend).

Today we see Halliburton actively

engaged in local minority and women

business councils and promoting diversity

because they believe in the business case

for doing so,” says Richards. “They were

asked to the table but stayed because they

saw the benefits. We look forward to

similar progress by other primes.”

Richards feels the next big challenge

is to continue to grow a robust supplier

diversity program in the United States

that is fully integrated with global supply

chain activities and business unit objec-

tives. Globally, the focus must move

from defining supplier inclusion/supplier

diversity as merely “local content” to

being reflective of indigenous groups

important to sustaining strong communi-

ties and building a strong brand. “To this

point, what we have done has been very

U.S.-driven and U.S.-focused,” says

Richards. While her scope of responsibil-

ity is domestic, she has begun to interface

with leaders throughout Shell’s global

organization. “In other countries, we are

beginning to see visible minorities and

underrepresented groups ask for access

and an opportunity to participate in busi-

ness structures. As we work with the

global supply chain, we are exploring and

discovering new ways to increase the par-

ticipation of these groups and to link

their participation to inclusion efforts in

the United States. We are learning there

is more than one way to build a diverse

supply system.”

To address current and future

challenges, Shell leaders, economic devel-

opment council members and supplier

diversity advocates in each business par-

ticipate in both local and national organ-

izations that support supplier diversity,

including the National Minority Supplier

Development Council and the Women’s

Business Enterprise National Council.

As part of her diversity outreach

responsibilities, Richards and her team also

work closely with nonprofit organizations,

such as the National Urban League and

the U.S. Hispanic Chamber of

Commerce. She facilitates relationships

between those organizations and Shell

businesses and business leaders to find

ways to work together that benefit both

the organizations and Shell.

“It’s all part of Shell’s commitment

to diverse communities and a strategy to

increase the collaboration of Shell busi-

nesses with important community and

constituency organizations in ways that

support mutual goals and objectives,”

says Richards.


for M/WBEs

Patricia Richards, manager of

Shell’s Supplier Diversity and

Diversity Outreach Office, offers

these words of advice for minority-

and women-owned businesses that

want to do business with Shell or

another major corporation:

• Know your value proposition. Be able

to articulate your unique selling

proposition and how your services are

delivered in a way that differs from

your competitors’.

• Take some effort to get to know the

corporation and its prime suppliers.

Look for ways to partner with those

larger suppliers in addition to pursuing

direct business opportunities.

• Participate in training programs and use

them to accelerate your company’s

growth and capability. Continue to find

ways to build relationships by attending

business opportunity events offered by

minority and women business councils

and corporations.

• Consider partnering with one or more

WBE or MBE suppliers in order to

compete for business contracts. By

doing so you can more rapidly show

greater capacity in vying for contracts

that might otherwise be beyond reach.PDJPDJ


Frazier Wilson Program Manager, Workforce Diversity

For Shell, a major business challenge is the need to attract talented people into the

engineering and geosciences fields. This expertise is essential to the company’s

mission to explore and develop new energy resources for the future; yet majors in

engineering, geology, and physics have been experiencing a decline in enrollment since

the 1980s. Shell’s workforce development initiative, launched in 2004, is a multi-pronged

effort designed to increase the flow of candidates by identifying talent and encouraging

interest in math and sciences beginning with elementary and secondary students.

The workforce development initiative shares a natural affinity with the company’s

diversity efforts.

“Both initiatives are working toward similar goals—to increase the available pool of

talent in our technical ranks,” says Frazier Wilson, program manager for the workforce

development initiative. “And because women and minorities continue to be under-

represented in these fields, this is a special area of focus. The key is to attract talented

people early and influence their education and career choices.”

The workforce development initiative encompasses a number of programs, from

math and science camps and competitions to career fairs, scholarships, and internships.

“We’ve refocused all of our educational outreach, including scholarships, to the math

and science areas,” says Wilson. “That aligns with our business needs for the future.”

In addition to promoting geosciences careers, the initiative also encourages

students to consider plant, refinery, and offshore operator and craft careers that

relate to the energy industry.

Geographically, the initiative concentrates on areas where Shell has a major

Taking the long view:

Frazier Wilson, program manager for the workforcedevelopment initiative, is focusing on the future with science and math educational outreach.

Shell’s Workforce Development Initiative



presence or conducts significant recruit-

ing, which covers a lot of ground. Key

areas for elementary and secondary edu-

cation efforts include Texas, Louisiana,

Georgia, Pennsylvania, Colorado, and

Florida.

Wilson works to make sure Shell’s

diverse work force is represented in

youth activities. At the twice-yearly math

competitions sponsored by Shell and

organized by the Education Rainbow

Challenge, a nonprofit organization that

promotes interest in math among inner-

city children in early grades, volunteers

from Shell’s employee networks handle

registration, judging, and other roles.

Network members also volunteered last

year as part of Shell’s sponsorship

of MATHCOUNTS, a national enrich-

ment, coaching, and competition

program that promotes middle school

mathematics achievement.

Network members in technical roles

are also frequently asked to speak to classes

and career fairs on career opportunities in

math and science fields.

Beyond encouraging students, Shell

has reached out to reinforce science and

math teaching, especially in urban

schools. One innovative project imple-

mented in 2005 is a regional collaborative

in Texas and Louisiana that provides

professional development for elementary

and secondary science teachers. The

collaborative is a partnership between

Shell and several universities—The

University of Texas, Louisiana State

University, Southern University,

Louisiana Tech University, and

Grambling State University.

At the college level, Shell has created

recruitment teams that focus on over

twenty college campuses, including

historically black and Hispanic serving

institutions, that have been identified as

key recruiting sources for Shell. Shell sur-

veys its networks to find volunteers for

these recruitment teams, which are on

campus four to eight times a year hosting

events, speaking to classes, and participat-

ing in campus activities.

“Our campus recruitment teams are

there to increase awareness about oppor-

tunities at Shell and to present our


PDJPDJ

company’s value proposition to potential

candidates,” says Wilson. “Many students

are not aware of the many things Shell is

involved in and how many areas we

recruit for—not just geologists and engi-

neers, but accounting, finance, and

industrial relations majors as well.”

The recruitment team members

have a responsibility to uphold the Shell

brand as well.

“One reason we are on campus is to

address students’ perceptions about ‘big

oil,’ and build their understanding of our

business,” says Wilson. “We’re able to talk

about our involvement in alternative

energy, our concern for the environment,

and our ethics. We want them to know

that we are about more than just drilling.

Our campus involvement is part of our

social investment effort and supports our

brand and reputation at the same time

that we are looking for talent.”

To reinforce Shell’s social investment

efforts at the college level, it supports

students participating in design competi-

tions. One such sponsorship occurred at

an annual design competition at

Michigan State University, in which

students in a mechanical engineering

design class were asked to design a device to

meet the needs of a child with a disability.

While energy companies compete

intensely to hire the best talent, Shell and

its peers have realized that increasing the

pool of available talent benefits the industry

as a whole and that working together to

encourage women and minorities to enter

math and science fields would enable

them to accomplish more than their indi-

vidual efforts could achieve.

One program receiving attention

from the industry is the Fort Valley State

Cooperative Energy Development

Program (CEDP), which has been

supporting and encouraging minorities

and women interested in energy careers

for the past 13 years. The Fort Valley

State CEDP, based at Fort Valley State

University, a historically black university

in Georgia, hopes to leverage the

industry’s united efforts to increase the

talent pool.

“We’ve discovered that we can work

together to increase awareness about

technical careers with students at an early

age and be less proprietary about where

we are promoting interest in our industry,”

Wilson says. “But when we get to recruit-

ing talent, that’s where we separate and

become competitive.”

The workforce development initia-

tive is a long-range project, but Wilson

notes that there are visible measures of

success even at this early stage.

“We do a lot of reputation surveys

and we are seeing Shell’s reputation

enhanced among campus groups,” he

notes. “We are also seeing improvements

in our ability to hire diverse talent—this

year, our internship hires were almost 50

percent women and minorities. And we

are also beginning to see more interest in

engineering fields among women and

minorities. At the same time, the univer-

sities are picking up on the message and

looking more closely at ways to attract

and retain women and minorities in their

engineering programs.

“So we are making progress at the

college level, but it will take time to see the

fruits of our efforts at the elementary school

level. But we’re taking the long view and

looking to build the future of our industry.”

Frazier Wilson Program Manager, Workforce Diversity

Shell employees participated in the Hispanic Engineering, Science and Technology Conference in 2005.

Len Cooper, senior vice president—supply chain, Halliburton,takes us inside the company’s supply chain programs.

GLOBAL / MARKET / INDUSTRY ISSUESPlease describe your company’s global presence: • Number of employees: Halliburton total: more than 100,000 / Energy Services Group total: 40,000• International businesses/branches: Halliburton operates in more than 100 countries.

Please give your definition of supplier diversity.Creating mutually beneficial business relationships that deliver value to our company and our customers.Supplier diversity is a proactive business process which seeks to diversify our supplier base, expand businessopportunities, and develop a supply chain that reflects the diversity of the communities and countries where we work.

What are the components of Halliburton’s approach to developing a global supply base? The global marketplace? Our approach to developing a global supply base is driven by a robust market that has increased the need to

expand and leverage local suppliers in internationallocations. We created an organizational structurecomprising regional supply chain managers. Thisregional structure maximizes the development oflocal resources and expands our strategic sourcingefforts. By increasing sourcing in low-cost coun-tries, buying direct and building local capacity, westimulate local economies and reduce manufactur-ing cycle times.

Is overall supplier diversity managementlargely U.S.-based or present throughoutthe world-wide organization? Currently, our supplier diversity efforts are focusedprimarily in the United States, because some of ourlargest customers are U.S.-based and the UnitedStates has the most supplier diversity requirements.But we are rapidly leveraging our regional compo-nents and involving our procurement leaders acrossthe globe. For example, a significant increase indemand for a key commodity in the United Statesled to tight supply. We asked our regional procure-ment leaders to identify suppliers in their areas that


Company headquarters: Houston, Texas

Company Web site: www.halliburton.com

Primary business: Energy Services

Industry ranking (i.e. Fortune 1000): 103

2005 revenues: $21 billion

could provide Halliburton with thisproduct. By tapping into our regionalresources, we were able to secure addi-tional supply of the commodity.

Engaging our regional supply chainorganizations will also ensure that we arepositioned to meet local content and cus-tomer requirements anywhere we operate.In many parts of the world, there is littlestandardization of local content or whatwe know as supplier diversity programs.Halliburton is aligning our internationalefforts with our U.S. model and engagingbusiness leaders and organizations aroundthe world to effect local economic devel-opment in countries where we operate.

How does a company asestablished / fast-growing /fast-changing as yours keepup with diversity developmentthroughout the organization? We utilize a combination of companypolicy, training, communication, anddemonstrated leadership to maintain ourfocus on diversity. We provide instruc-tor-led and Web-based training toemployees to keep them engaged in sup-porting this important part of our busi-ness strategy. Last year, we implementedthe Strategic Training Exchange Program(STEP), which brings supply chain pro-fessionals from around the world to theUnited States for intensive training anddevelops local leadership in every region.Programs like STEP create transparencyin business philosophy and processesacross the organization, allowing us toexpand our impact to every part ofHalliburton.

Are there unique opportuni-ties in your particular industryfor implementing diverse supplier programs? There are unique opportunities whereveryou create them. By setting a vision to bethe industry leader in supplier diversityamong oil field services companies, we

are always building on Halliburton’s tra-dition of being an innovator in the indus-try. We are open to trying new conceptsand ideas that will distinguish us from thecompetition.

In terms of supplier selection criteria,I believe given the opportunity, diversesuppliers can successfully compete andwin our business. Our diverse supplierbase proves that point regularly. To thatend, we do not establish separate criteriafor diverse suppliers. Supplier diversity is seamlessly integrated into our sourcingprocess. Frankly, it is just how we dobusiness.

Our strategic sourcing process hasseven steps and there is a check point forsupplier diversity embedded in each one.This allows us to ensure that we havedeveloped the most inclusive sourcingstrategy possible while maintaining ourquality, cost and customer service standards.

For example, in our Digital andConsulting Solutions business, we areworking with a minority supplier toexpand their operations in one of ourhigh growth markets. Growing with uscan potentially double the supplier’s busi-ness with us, as well as expose them toour customers that could also use theirservices. This type of business develop-ment helps everyone—our company, oursupplier, and our customer.

We count on our suppliers to sup-port our vision and push them to bringcreativity to our supply chain. As a result,we are seeing new partnerships formbetween our traditional suppliers anddiverse suppliers that bring value to ourorganization and our customers.

Do international issues everget in the way of corporatesupport for supplier diversityobjectives and processes?What kinds of strategies doesthe company employ in dealing with them? Dave Lesar, our CEO, is committed toincreasing diverse supplier utilizationwherever we operate in the world. Sincewe operate in over 100 countries, it ischallenging to standardize some process-es. We are finding that as we broaden oursupplier diversity efforts as an interna-

tional company, we must customize ourstrategy and approach regionally to besensitive to local requirements and cus-toms. While some countries have formalrequirements, the majority do not.Therefore, in many areas we are trailblaz-ers and we are learning, adapting andchanging as we move forward.

CORPORATE LEADERSHIPWhat resources (financial andmanpower) are allocated tosupplier diversity? For more than a decade, Halliburton hasemployed designated full-time staff pro-fessionals to lead our supplier diversityeffort, allocating more than a half-milliondollars annually to support the initiative.

As it relates to other resources thatsupport supplier diversity, Halliburtoncreated a three-tiered support structure.The Executive Advisory Board (EAB)comprises senior level executives across allareas of the company to serve as chiefadvocates; a Supplier Diversity Council(SDC) made up of company directorswho manage the business day-to-day; andSupplier Diversity Champions located inbusiness units around the world whoassist suppliers in navigating our largeand complex organization.

How do you measure attitudesor assess their performancein supplier diversity? We set annual targets to drive perform-ance and deliver results. The ExecutiveAdvisory Board and Supplier DiversityCouncil monitor progress towards thesegoals quarterly. We have also designatedsupplier diversity goals in individualemployee Personal Performance Reviews(PPRs) that measure individual perform-ance and factor into our annual compen-sation structure. We provide resourcesand information to our business unitsand individuals to help them meet theirtargets and succeed, and we have receivedpositive feedback about this assistancefrom across the organization. To trulyeffect cultural change there must be con-stant communication of the value thatdiversity brings to our organization andthe supply chain. The key is that diversityis not one person’s job; it is the collectivecontributors that make it work for us.

Interview Len Cooper Halliburton


Is supplier diversity a linked/compensable annual objective for the executivemanagement team? We are committed to our supplier diver-sity vision—and we believe in leading byexample. Yes, supplier diversity is tied tothe annual objectives of the executivemanagement team.

How do you reward specialsupplier diversity initiativesor contributions? Whataccountability do you employto meet objectives? We utilize Halliburton’s compensableMaximizing Value-Added Performance(MVP) program to recognize employeesthat go above and beyond to support

company initiatives. The MVP programunderscores our commitment to excel-lence and continuous improvement,encourages the attitudes and behaviorswe strive for, and recognizes individualrole models within the supply chainorganization. We also have departmentalprograms to recognize individual projectcontributors.

How does your organizationdeal with/train for cross-cultural competencies for itsleadership?Halliburton is developing core compe-tencies in all areas, including diversity byjob classification throughout the supplychain organization. We provide instructor-led and Web-based training on diversity.We have a matrix reporting system that

enhances the ability of regional teams towork on projects and provides for inter-action among diverse groups of peopleglobally.

How are decisions about supplier diversity made inyour organization? Is there adiversity council and whoheads and serves on it? Day-to-day decisions about supplierdiversity are made by the manager ofglobal supplier diversity and supportedby her staff.

The Executive Advisory Board estab-lishes supplier diversity performance met-rics to ensure alignment with businessstrategies, serves as policy advisors, assistsin removing roadblocks, and demon-strates commitment to supplier diversityby participating in external organizationsand events. The EAB is co-chaired bytwo corporate executives: Lawrence Pope,Senior Vice President of HumanResources, and Margaret Carriere, SeniorVice President and Corporate Secretary.

The Supplier Diversity Councilreviews and monitors the performance ofeach department in the company in



Above: Len Cooper discussing supplier diversity

Left: Len Cooper (seated center) meeting with Supply Chain Management Program participants and summer interns

“My philosophy has been to try to

surround myself with people who are

smarter and more talented than I am,

then get out of their way and let them

do what they do best.” Len Cooper


achieving supplier diversity goals andmetrics. The SDC is responsible forimplementing strategies to ensure its success.

The Supplier Diversity Championsare embedded within the organizationand work to connect diverse suppliers toimmediate business opportunities. Thechampions are our frontline liaisons toidentify community resources and fosterrelationships with local business develop-ment organizations.

What fact(or)s make you confident that you and yourteam have developedmomentum for the organiza-tion in the right direction?What is the vision for thecompany in five years? Our vision is to become the global leaderin supplier diversity among oil field serv-ice companies. We are confident we aremoving in the right direction, becausesupplier diversity best practices guide ourobjectives and processes. We benchmarkother world-class leaders in this area toensure continuous improvement. Oursupplier diversity program is gainingrecognition in the industry. Just this pastyear, Minority Business News named usone of the top 50 corporations for suppli-er diversity in Texas. Women’s Enterprisemagazine named our program manageramong the top 100 women impactingsupplier diversity. Our customers are alsoproviding great feedback and support ofour initiative. This creates the competi-tive advantage we are confident we canmaintain in the industry.

SUPPLIER / EMPLOYEE INCLUSIVENESSHow does your companygauge supplier diversityprogress? What are the tests,

measurements and bench-marks (metrics) that indicatewhere the company is on theinclusion graph? We established key performance indica-tors (KPIs) to gauge our progress andmeasure our success. These benchmarksare evaluated annually to ensure continuousimprovement. Some of our KPIs include:

• Percent of annual increase in minority,women and small business expenditures

• Number and percent increase of first-tier suppliers reporting second-tierspend

• Number and percent increase of newand existing diverse suppliers

• Number and percent increase of sup-pliers certified as minority, women orsmall business enterprises (M/W/SBEs)in the United States

• Tracking departmental diverse supplierutilization rates by profit center

• Incorporating supplier diversity metrics in supplier scorecards and bid evaluations.

Sometimes supplier diversityis referred to as a “numbersgame”—how does your company know its culture isnot just tied up in numbers?How do success stories circulatein-house/ celebrate success? Numbers are important to measure success and growth, but equally impor-tant are the supplier relationships weestablish and the competitive advantageswe derive from our diverse supply chain.Our employees understand that our com-pany is stronger and more creativebecause we have a diverse group ofemployees with distinct thoughts, ideasand skills. Just as our employees comefrom a wide variety of backgrounds, so toomust our suppliers.

I am a firm believer in celebratingsuccesses. We have an internal awarenesscampaign underway that spotlights manyof the diverse suppliers providing prod-ucts and services to all parts of our busi-ness. We maintain information on ourefforts on our Web site, intranet site andthe procurement portal used by our sup-

ply chain professionals worldwide. Bycommunicating the successes, we sparkideas and broaden opportunities for sup-pliers everywhere.

Are employees more involvedin supplier diversity than theywere two years ago? In whatways? Absolutely. First of all, two years ago wedid not have an internal support organi-zation structure. Creating this struc-ture—the Executive Advisory Board,Supplier Diversity Council and SupplierDiversity Champions—increased the visibility and direct involvement andaccountability of employees significantly.By having local champions, we are able toengage individual stakeholders in mostmanaged sourcing categories and provideexposure within our business units bygetting them involved in networkingevents and with organizations designed tofacilitate business development.

Have you encountered/ howdo you deal with those whoperceive supplier diversityprograms for underrepresentedgroups as being exclusionaryfor others? By not establishing separate diverse sup-plier criteria, we have avoided the appear-ance of being exclusionary of others inorder to affect a targeted group of suppli-ers. We hold diverse suppliers to thesame criteria used in evaluating non-diverse suppliers. All suppliers must offera safe, cost-competitive product or servicethat delivers value to Halliburton and ourcustomers.

Can you name specific waysyour company supportsupward development towardmanagement positions?

We created a Supply ChainManagement Program (SCMP) to developfuture leaders in our company. TheSCMP fosters talent within our organiza-tion by providing rotations in variousareas of the supply chain organizationincluding procurement, logistics, manu-


At Dell, we’re committed to bringing together individuals with diverse backgrounds, thinking, leadership and ideas, and arming

them with the best tools to ensure their success. We believe this helps drive innovation and makes Dell a more dynamic

company. Through career development, mentoring programs,networking groups and productivity tools like the Dell Latitude D610

with Intel®

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to ensure that Dell is a great place to work, grow and aspire. Success real time. Capture it at Dell.

Get more out of your career. Now at Dell.

Dell and the Dell logo are registered trademarks of Dell Inc. ©2006 Dell Inc. Intel, Intel logo, Intel Inside, Intel Inside logo, Centrino and the Centrino logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.All rights reserved. Dell Inc. cannot be held responsible for errors in typography or photography. Dell is an AA/EO employer. Workforce diversity is an essential part of Dell’s commitment to quality and to the future. We encourage you to apply, whatever your race, gender,color, religion, national origin, age, disability, marital status, sexual orientation, or veteran status.

How do you get started? Visit www.dell.com/pdj

CAREERS AT DELL. CONSIDER THE POSSIBILITIES.

Evelyn Hernandez uses a Dell Latitude D610 with Intel® Centrino® Mobile Technology

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facturing, and international business units.

What is the company’s commitment to minority suppliers—specific % or $targets/dates? Focus?Measures you’re taking toachieve goals? Our 2006 goal is to increase expenditureswith diverse suppliers to six percent ofour total spend. Our focus is on theUnited States as we work to assess anddefine diverse supplier criteria interna-tionally. To ensure that we achieve thisgoal, we are working closely with thesourcing team across departments andbusiness units to identify opportunitiesand capable suppliers to compete for ourbusiness.

How do you educate/promotediversity and inclusion forvendors, customers, or thegeneral public? In high opportunity categories, we pro-vide training on our sourcing process todiverse suppliers to increase their compet-itiveness. We sponsor educational schol-arships for small business owners to gainthe technical and management trainingneeded to move their company to thenext level. We work with community-based organizations and business devel-opment groups to influence and developprograms that will foster business devel-opment and growth for diverse suppliers.We work with our customers to align ourefforts with theirs to create added value.For example, with one customer, we areexploring the opportunity to jointlydevelop a diverse supplier that can growand support our growing business needs.

How is supplier diversitylinked to your company’soverall business strategy?

Supplier diversity is important to our cus-tomers. Therefore, establishing leadershipin this area is an important element ofour growth strategies and fulfilling or hopefully exceeding our customerexpectations.

EXECUTIVE – PROFESSIONAL Where does your personalbelief in diversity and inclu-sion come from: who wereyour role models, or wasthere a pivotal experiencethat helped shape your view?I don’t have an epiphany moment.Coming out of college, I spent a few yearsin the military leading groups of verydiverse individuals. Later, my early businessexperiences were in government-orientedenterprises that had very strong commit-ments to supplier-diversity objectives andaggressive programs towards their develop-ment. The leaders I worked for were themost memorable. All had strong feelingsand beliefs in the power of diversity.

How did you get to your present position? What wasyour career path? How didyou come to be working at Halliburton? I was recruited to Halliburton almostthree years ago. Prior to that I had held a

series of executive-level supply chain positions in Texaco, Newport NewsShipbuilding, and GE.

Who were/are your mentors?What about their businessskill or style influenced you?How did they help in yourprofessional and personallife? Are you mentoring any-one today? I was very fortunate when I joined GE tohave a senior leader take a personal inter-est in me. When he moved on to otherparts of the company, he either broughtme along with him or continued to guideand coach me. That continued even afterhe retired. He was a very intense andresults-oriented individual and comple-mented that with a great ability to ener-gize and motivate the people around him.

What business books or journalsdo you read regularly or recom-mend for aspiring leaders? I read a fairly typical list of business relatedmaterial, including The Wall StreetJournal, Business Week, The Economist,

Len Cooper with team membersleft to right: Ramesh Gopalakrishnan, Kristi Richardson, Sheri Pollock, Len Cooper, Scott Radabaugh, Mark McDaniel, and Ingrid Robinson

continued on page 58

Chrysler, Jeep, and Dodge are registered trademarks of DaimlerChrysler Corporation.

True strength has many faces.

At DaimlerChrysler Corporation, we work hard to design, engineer and

build the best cars and trucks available. And it’s all made possible through the

dedicated work of every employee. Unity does, indeed, create beautiful things.


Company: Halliburton

Title: Senior Vice President—Supply Chain

Years in current position: 2 1/2

Education: Bachelor of Science—Physics—U.S. Naval Academy

First job: Short Order Cook

Philosophy: Maintain Balance and Perspective—“Think about what you want written on your headstone”

What I’m reading: First Across the Continent: The Story of the Lewis & Clark Expedition

Family: Married to my high school sweetheart—two married sons—one granddaughter

Interests: Golf, skiing

Favorite Charity: Boys / Girls Clubs

Person I’d like to get to know over lunch: George Washington, to discuss his leadership experiences in forming this country (military and political) and his reactions to what it has become.

Personal Profile Len Cooper Halliburton

Cardinal Health Making a difference in our community

Cardinal Health is a global and dynamic company dedicated to helping healthcare

professionals do what they do best. Working together, with each other and our

customers, we create ideas, products and systems that improve the delivery of

healthcare. As a leader in the healthcare industry, Cardinal Health recognizes that

our success is in the value of each of our employees.

www.cardinalhealth.com

Enriching life


and some professional publications onsupply chain activities. I like to keep upwith Jack Welch’s books—I “grew up” inGE while he was the CEO. A lot of myleadership and management approachesand philosophies were influenced by theculture he cultivated there.

How would you describe yourconcept and style of leadership? My philosophy has been to try to sur-round myself with people who are smarterand more talented than I am, then get outof their way and let them do what they dobest. I am much more comfortable work-ing on strategic issues that will impact thebusiness in the longer term and the cre-ative challenges that provides. My currentrole is to understand where our business isheaded, anticipate what the supply chainorganization must be capable of providingto support those objectives, translate thatinto strategies and actions, and thenensure that my organization and my inter-nal constituencies are aligned towardsachieving those results.

What are your specificresponsibilities for advancingsupplier diversity in yourorganization? What are thestrategies you employ tomove it forward? I am the primary focal point for the sup-plier diversity program in this company,and it is my responsibility to ensure thatwe have the proper focus and attention oncontinuing to develop and broaden diver-sity in our supplier base. I am responsiblefor setting the goals and objectives, ensur-ing that we have the people and programsin place to meet those objectives, and,ultimately, delivering on those objectives.We have a number of individuals in thecompany who support our program bothinside the supply chain organization andin other areas of the business.

Were there any experiencesthat discouraged you ortaught you hard lessonsabout supplier diversityimplementation?

Despite all that has been written and statedabout supplier diversity, there is a contin-uing need to explain what supplier diver-sity is (and by contrast what it is not) andwhy it is important to our company. Weare a stronger, more capable, and morecompetitive company because we have agrowing diversity in our supplier base.Supplier diversity is not about beingpolitically correct or making specialexceptions, accommodations, or set-asides for diverse suppliers. Rather, sup-plier diversity is about creating a businessenvironment where diverse suppliers areencouraged to participate and are given afair and equal chance to compete for andwin our business based upon the relativevalue they bring to us. Ultimately, wemake those decisions based upon whichsuppliers will best enhance and con-tribute to our competitive position.

How are you measured interms of performance? Is yourcompensation related to sup-plier diversity’s performance? I am measured by the ability ofHalliburton’s supply chain to deliver thegoods and services this company needs tosupport the commitments we make toour customers. We must do that as effi-ciently and effectively as possible. My/ourprimary metrics are focused on cost,quality, and speed of delivery. Embeddedin and a part of those objectives is therequirement to develop and maintain asupplier base that has the capability andcapacity to support those goals. The com-plexities of our business make thatimpossible without a diverse group ofsuppliers that bring a broad range ofcapabilities and contributions to the sup-ply chain—whether here in the UnitedStates or offshore, as I noted earlier.

What has been your proudestmoment as leader in thiscompany? During the past two years, Halliburtonhas experienced explosive growth in ourbusiness. We have been surprised by thatrate of growth, which in many cases farexceeded our business plans. As a result,the supply chain organization has had torespond to demands that were well

beyond expectations to meet our customers’ needs. Fortunately, we’ve hadthe people and talent within our supplychain organization and the capabilitiesamong our supplier base to respond successfully to those unprecedenteddemands. We’ve surprised a lot of peopleand made a decisive contribution to thesuccess this company has enjoyed.

Are there particularareas/employee sectors youfeel still need improvement?Absolutely. Our future markets and customers are going to take us into anever-broadening global operating envi-ronment. To meet the demands of thatmarketplace, we need a much morediverse and globally agile supply chainorganization. We’re making significantstrides in that direction, but we are a longway from where we need to be—that’swhy supplier diversity will continue to bea key element of our supply chain strategy.

Do you have any words ofadvice to anyone who wantsto rise in their organization?What do you say to peopleyou mentor? One of the things Jack Welch preached atGE was that change is inevitable and thatthe pace of change accelerates over time.As leaders, we can resist change orembrace it, anticipate it and use it ouradvantage. Easy to say—hard to do. Youneed to have the courage and the confi-dence to accept that what has workedbefore and made you successful will prob-ably not work in the future. Working inmultiple industries at GE and in threenew companies / industries since then hastaught me that flexibility, adaptability,prudent risk taking, and leadingchange—rather than defending the statusquo—are essential to success.

“Supplier diversity is about creating abusiness environment where diversesuppliers are encouraged to participateand are given a fair and equal chanceto compete for and win our businessbased upon the relative value theybring to us.” Len Cooper


PDJPDJ

BellSouth has a strong commitment

to the communities we serve.

We continually reaffirm that

commitment and reinforce our

connections to the community by

embracing diversity and inclusion—

both inside and outside the company.

Through its Office of Diversity,

BellSouth supports networking

groups that promote mentoring,

training, and enhanced opportunity

for all employees, regardless of age,

race, gender, or sexual orientation.

These groups volunteer their time and

resources to sponsor a wide range of

activities and provide new ways in

which BellSouth connects to the

people we serve.

BellSouth is proud of these efforts.

Because, no matter how advanced

our technology, we know that the

strongest, most lasting connections

are made within the community, face

to face, person to person.

bellsouth.com

©2006 BellSouth Corporation.

Connecting to thecommunity withtalent, strength and diversity.


Follow these concrete steps to make your employee network achieve long-term success. By Catalyst

Sustaining Employee Networks

Once you’ve launched an employeenetwork, there are a number of steps

to take to ensure that it accomplishes itsgoals and runs effectively.

Create a Leadership SuccessionPlanHaving a core group of initiators who runthe network for its first few years is invalu-able. However, it is equally critical to passthat leadership to a new group. You needto develop the next generation early. Lookfor members who have taken smaller rolesin heading up committees or organizingevents and consider them for future lead-ership positions. Speak with them directlyabout their interests and encourage themto take on more responsibility.

Some success strategies for leadership succession and elections:

• Create a formal process to nominatepotential leaders.

• Have clearly defined lengths of term forall leadership positions.

• Overlap newly elected leaders with previous leaders to ensure continuityand the sharing of information.

• Work toward diversity in nominationsto ensure diversity in the leadership ofthe network.

Develop the MembershipEmployee networks also need to attractand retain committed members. Using arange of strategies, successful networksthink not only in terms of sheer numbers,but also about whether the membershiphas the right mix of employees from arange of backgrounds, levels, and func-tions. One way is to think about potentialmembers as belonging to one of threegroups. Reaching out to each grouprequires a different approach.

• Employees who know little about thenetwork and have never been involvedwith the group. Connecting with thislarge and dispersed group of potentialmembers takes larger events or mailings.Some networks have formal “meet thenetwork” events, open to all and publi-cized through direct invitations andannouncements via email and newsletters.

• Employees who may know about thegroup through colleagues who are members. To tap into this group, reachout to people individually. Ask membersto speak directly with these potentialmembers about their interest in joiningthe group.

• Former members who have decided not to renew their membership.Understanding why former membersdeclined to renew their membership and

what the network could do to respondto those reasons is important informa-tion you can get from no one else.

Include Senior ExecutivesThey have experience that is invaluable tomembers, knowledge to share about careersuccess strategies, and important contactsamong senior leaders. Involve senior exec-utives where their skills, experiences, con-tacts, and backgrounds are most needed,shaping your appeals on an individualbasis tailored to their own needs for devel-opment and recognition.

But first, identify where you need theirhelp. Is it as internal advisors for the net-work? Then invite them to join an execu-tive advisory team assisting the networkleaders. Would you like to have them act ascareer coaches? Then ask them to partici-pate in a mentoring program or on a panelof executives. The key is to be as specific aspossible and give them as much help aspossible.

Plan ActivitiesNetworks get involved in a wide range ofactivities that can be summed up in severalmajor categories—networking and careerdevelopment, community outreach, advi-sory, and business development. Networkshave events from monthly to annually,with quarterly being the most common.

continued

Subtle behaviors. Big Impact. Micro-inequities.

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WHAT’S YOUR

MICROTRIGGER?

�Interrupting you

�Frequently confusing you with the only

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�Taking phone calls during meetings with

you

�Acknowledging your idea only after

someone else restates it

�Remarks such as, “You’re so articulate.”

™

From What’s Your MicroTrigger™? 58 Little Things That Have a Big Impact


There are a few overarching successfactors that run through all events.

1. Meet specific needs of network members. Make sure the needs ofmembers are understood.

2. Effectively communicate the event andits purpose.

3. Keep events focused. Identify goalsand identify the groups you want to reach.

4. Design an objective and measure theevent’s success.

5. Involve senior leaders in the company.Let them know what you are doing.

6. Be realistic about what is possible.Sequence activities over time and try toavoid member / leader burnout.

Track EffectivenessEvaluating networks can be difficult, but there are measurements that can indicate the strengths and weaknesses ofnetworks and set the stage for continualimprovement.

Measures of evaluation might include:

Involvement with Business ActivitiesEvaluate network participation in thefirm’s recruiting. Review network sponsorship activities, track professionaldevelopment activities, and measuredirect business secured through the network.

Participation in NetworkTrack event attendance and membershipgrowth.

Outreach and InvolvementReview network-specific communica-tions. Include network communicationsin office newsletters, area newspapers for large events, etc. Assess networkinvolvement / impact in community(internal and external).

Event/Specific Program EffectivenessDistribute short surveys to assess allevents. Review the year’s events and

projects with attention to variety and scope.

Overall AssessmentSurvey network members annually toassess their overall satisfaction, the net-work’s impact on their personal and professional growth, and the network’simpact on the work environment.

Tackle Common ChallengesNetworks are continually adapting andmaking changes. Being flexible lets youadjust without changing the network as awhole.

Internal challenges are usually related tomembership needs and interests andnetwork effectiveness. Here are somecommon internal challenges and proposed solutions for meeting those.

• Notable drop-off in membership par-ticipation—Low participation is usuallya symptom of other issues. Identifywhat is going on. Is there a lack ofinterest in events? Is there a lack oftime to devote to the network?

• Significant changes in member inter-ests—Member interests tend to changeevery few years, and so should theevents. Check back and find out whatmembers are interested in now andadjust goals and activities accordingly.

• Lack of accomplishments or inability toreach goals—Design strategies to solicitand respond to member needs. If theproblem is a lack of senior-level sup-port, look into creating an approach tobuild and maintain support.

• Large reduction in time commitmentsof members—Streamline the overallgoals of the network. Once you’ve gathered data to get a sense of memberneeds and interests, eliminate any activities that don’t directly respond tothose needs.

• Resistance or lack of support frommanagers—Reinforce the business casefor the network. Give them detailsabout your upcoming activities.Continue educating and communicating.

External challenges center on changesin management or organizational shifts.Here are some common externalchallenges and ways to approach them.

• Downsizing at company or businessunit level—Many networks scale backtheir activities during such a phase. Becareful not to eliminate the ones thatwill help members the most in anuncertain work environment. Refocuson member needs and direct servicesthe network can provide. It’s also particularly important to maintain support during this time. In consider-ing the events you create, think aboutlevel of visibility and broad appeal.

• Relocation of corporate or field locations—Many networks facing thischallenge often shrink their activitybase and focus on fewer and smallergoals that require less formal leadership.

• Departure of executive champion—Cultivate and work with the new seniorteam member. If, however, you need to rebuild support from the beginning,recognize that this will require a different set of strategies.

• Appointment of less supportive executive team—Return to your original strategies to rebuild support.

All of these steps will help you ensurethat your employee network can succeedover time and in the face of challenges.

Catalyst is the leading research and advisoryorganization working with businesses andthe professions to build inclusive environ-ments and expand opportunities for womenat work. For more information about net-works, see Catalyst’s book Creating Women’sNetworks: A How-to Guide for Womenand Companies (Jossey Bass, 1999), avail-able from your local online bookstore. Tobrowse our publication offerings, visitwww.catalyst.org. You may also sign up to receive our issue-specific newsletter,Perspective, and our monthly email updatesat [email protected].


Bank of the West 64www.bankofthewest.com

Bausch & Lomb 63www.bausch.com

BellSouth 59www.bellsouth.com

The Boeing Company 18www.boeing.com

Cardinal Health 57www.cardinal.com

DaimlerChrysler Corporation 55www.daimlerchrysler.com

Dell, Inc. 53www.dell.com

Eastman Kodak Company 47www.kodak.com

Ford Motor Company cover 2, page 1www.ford.com

Georgia Power 11www.southernco.com/gapower

Halliburton 5www.halliburton.com

Ivy Planning 61www.ivygroupllc.com

Lockheed Martin 7www.lockheedmartin.com

MFHA 13www.mfha.net

MGM Mirage 17www.mgmmirage.com

Nationwide Insurance 9www.nationwide.com

PepsiCo, Inc. 15www.pepsico.com

Shell Oil Company back coverwww.shell.com

Society for Human Resource Management 14www.shrm.org

Sodexho cover 3www.sodexhousa.com

WellPoint 3www.wellpoint.com

The Winters Group 16www.wintersgroup.com

PDJPDJ

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diversity journal - jul/aug 2006

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