Diversity

I think we agree that competition (in business) is changing. The pool of competitors seemingly grows every day as countries such as China try to enlarge their slice of the economic pie.

Competitive companies have always balanced their work on the customer-focused triangle of quality, cost, and delivery. Equally weighted, the idea is to not discuss one or make decisions on one without respectful regard for the others.

In my opinion, the advent of the global economy skewed the balance towards cost. Many companies rushed to "low cost" countries to maintain or gain a competitive edge. Others resisted the temptation to relocate and focused more on becoming efficient at home. Eliminate waste. Improve the cost structure. Achieve perfect quality and delivery. Become obsessed with customer service. Tools such as Six Sigma and Lean Manufacturing are increasingly being used (by these companies) to accomplish these goals.

There are several ways to describe Six Sigma and Lean. At the core, both help reduce variation. Perfect quality and delivery mean your product or service consistently meets the requirements and expectations of your customers (without fail). Reduced cost means you have driven out waste and created a standard work environment (meaning less variation in the way you work). So, less variation is good and desirable.

Many companies are realizing that the true way to achieve long term success is by unleashing the power of employees. Obviously, this is not a new concept but is being talked about now in terms of diversity in the workplace.

If the goal of Six Sigma is to reduce variation, the intention of diversity is to increase variation in the workforce to bring more perspectives and opinions to decision making, problem solving, etc. For example, the first step in problem solving is to assemble a team. Not just any team but a cross functional (diverse) group that can look at the problem from different angles.

I randomly sampled five companies from the S&P 500 to see how diversity is addressed in their organizations. From several of the websites, I found the following statements:

"We value diversity in our global organization. We place a premium on the contribution of each of our employees. We seek to develop and use to the fullest their capabilities, creativity and energy by creating a work environment that enables every employee to perform to his or her potential."

"We are a progressive organization that focuses on making diversity a part of its culture. Our goal is to become the best performing asset management and payments and securities services company delivering on the promise to meet or exceed the expectations of our customers. Achieving this goal is directly related to our ability to create an inclusive environment where employees feel comfortable contributing their unique skills, talents and experiences to serve our customers and deliver measurable results."

"Our commitment to diversity is woven into the fabric of our business - it’s reflected in our workforce, our suppliers, and our principles of social responsibility. We respect the individuality and dignity of others and revel in the differences and similarities that allow us to co-exist and enhance each other. That’s the message behind our credo, and we take it to heart."

"Diversity is historically defined as the inclusion of all people, without regard to differences in race, gender, culture, color, religion, sexual orientation, age, or disability. We extend this definition to encompass the inclusion of different thoughts, philosophies, and experiences. We recognize that a diversified workplace generates creative thinking, ideas, and results."

In today's paper a headline read "Wal-Mart seeking more diversity from vendors"-Wal-Mart plans to add diversity to the list of things the company expects from major suppliers along with environmentally friendly products and low prices..... So, to do business with Wal-Mart, you must embrace diversity.

I've had diversity training and found it fascinating. Try this at work: Assemble a group of people that you interact with every day. (Try to get ten to twenty) Ask the group certain questions. For example, if the company gave everyone the choice of three extra vacation days or $500 cash, what would you choose. Arrange the groups according to the answers. Now, re-arrange the groups according to different factors: Birthplace, parental status, marital status, educational status. This helps you better understand and know the people you work with and gives a better appreciation of one's views and opinions.