Four Generations in the Workforce 36. The firms that have signed up to the charter employ over half a million people and span across the breadth of the financial services sector. by Robert S. Kaplan and David P. Norton; Harvard Business School Press, 1996. This website uses cookies to improve your experience. Diverse teams with engaged talents are more innovative, understand customer needs better, and drive financial results. See, for example, a study by Catalyst[2] or the report summarized in this HBR article[3]. Live Scorecard Examples with KPIs Check out 29 examples BSC Designer is a Balanced Scorecard software that is helping companies to better formulate their strategies and make the process of strategy execution more tangible with KPIs. Let’s discuss how to combine various ideas about diversity and inclusion into a coherent strategy. Diversity Best Practices Follow @DBP_News and use #DBPMember to join the game-changing diversity and inclusion conversation! Check out these two reports by McKinsey’s: While there is a correlation, be careful setting the targets for the D&I KPIs – as the 2018 report underlines, the correlation doesn’t yet mean causality. Examples of such scorecards include the HR Scorecard which is used for measuring the performance of the HR function and how it fits into the larger and broader organizational objectives. I’ll use the Balanced Scorecard as a framework to articulate the D&I strategy. What is obvious now is that organizations that aim for diversity and inclusion should revise their processes of board recruitment/succession planning. Graphical templates for presentation slides. A pool of talents seems like a diverse one, but in reality, the organization simply makes the numbers look good without making any tangible impact. Gender Diversity: The New Balanced Scorecard May 16, 2014 | Books & Authors , Leadership G. Shawn Hunter is the author of OUT THINK: How Innovation Leaders Drive Exceptional Outcomes as well as Vice President and Executive Producer for … Diversity in ideas is a leading factor for innovations. Let’s discuss how to combine various ideas about diversity and inclusion into a coherent strategy. Empirical studies support this hypothesis. Ready-to-use Balanced Scorecard templates with examples of KPIs for different business domains. A balanced scorecard for an entire organization will be broader and more general in terms of goals and measures than a balanced scorecard designed for a division manager. A Balanced Scorecard (BSC) is a strategy management framework that includes four perspectives of your strategy: Financial, Customer, Internal Process, and Learning and Growth. An intuitive hypothesis is that a more diverse talent pool will approach the challenges of the organization from different, sometimes unexpected perspectives. Even properly organized surveys will not show an objective picture because of survivorship bias. To make this case, companies must overcome the barrier of instituting "hard" measures of the effects of diversity on performance. Taking it into account, new strategies and … For example, we can focus the measurement of diversity on one of the following dimensions: How to select these dimensions? Balanced Scorecard (Learning and Growth Perspective) It is known that examining old measures is a part of strategy for a manager. Some institutions publicize their scorecards; others publicize only portions. We need to wait another decade to see how these ideas will be implemented in practice. In their turn, diverse talents can become an inimitable competitive advantage for a company. Maximizing Diversity Business Intelligence with Transformational Analytics” will help develop a Strategic Outcomes Scorecard using Diversity Transformational Analytics® to drive organizational change and “next level” impacts (based upon a “Logic Model” framework). Many organizations prefer to report their achievements according to the Sustainable Development Goals 2030 by the UN. To measure this goal, we can use metrics from the innovations scorecard: If you are looking for some more light-weight innovation framework, check out my recommendations in the “Agile Scorecard” article. When we are talking about a diversity of partners (external diversity), we want to have different types of companies among our partners. For example: For HR, supporting this mission requires having the right compensation systems in place, creating the right culture maps, and determining the skills necessary for every role in each department. Still, its application range is limited, as talents stay in an organization for different reasons, and the time lag between hiring and leaving an organization might be several years. It makes a lot of sense as the diversity part of the equation is what the HR department can influence directly. Similar to average length of employment, we can measure (all analyzed by diversity dimensions): What about measuring the effectiveness of HR in the context of diversity and inclusion? Will those ideas be heard? I’ll add this as an initiative for the “Diversity and Inclusion” goal: How to set the target values for the diversity metrics? For example, if you are targeting the Brazilian market, then the diversity targets will be focused on the talents with a background in Brazilian culture and those who are fluent in the Portuguese language. Strategic uncertainty from emerging threats and opportunities in the business environment can significantly impact managers’ abilities to successfully implement their business strategy. A classical strategic planning process starts with a definition of strategy attributes. What is inclusion then? Molly says, for example, that this has infused the way Salesforce does workforce planning and shaped the questions it explores when choosing its sites. Let’s start with a general introduction to the idea of Diversity and Inclusion (D&I). This series is intended to guide organizations using diversity metrics through the challenges of these converging trends. Strategizing is critically important to building a good balanced scorecard. Typically, organizations have what is known as a Balanced Scorecard for measuring and tracking outcomes against goals. For example, one of our diversity-related values is “hire talents globally.”. D&I is not just the job of the CEO or Chief Diversity Officer – anyone in the organization should be accountable for building and supporting proper inclusive culture. The scorecard is part of a broader effort to keep the focus on diversity and inclusion year-round and across the company. It depends on the existing strategy of the organization. “scorecard” assessments from the private sector that benchmark success against set diversity and inclusion goals, typically headcounts and percentages. Talking about racial and sexual orientation as well as physical disabilities, a Diversity Scorecard can also be helpful in addressing the challenges of Racial Diversity, Actualizing an Inclusive workplace for the LGBTQ (the acronym used to capture the broader categories of employees who differ in their sexuality and sexual orientation) employees. This is the reason why experts recommend that organizations secure the “buy in” of the workforce so that a Carrot and Stick approach can be adopted wherein the incentives are also accompanied by the rewards. Another important idea is that the diversity targets should be realistic. This tem- In the customer perspective, we traditionally map the needs of the customers. In this context, it is worth noting that one can “drill down” further as well as move “sideways and crossways” to prepare what is known as a Diversity Scorecard. In this perspective, we’ll talk about the skills and the infrastructure needed to make the diversity and inclusion strategy possible. One of the strategies behind quotas is about solving D&I problems from the top: The acceptance of quotas varies across the countries with actual inclusion being one of the main challenges. Management Study Guide is a complete tutorial for management students, where students can learn the basics as well as advanced concepts related to management and its related subjects. Let’s discuss a strategy to improve Diversity and Inclusion in an organization. The labour market is becoming more diverse[1]. To conclude, a Gender Scorecard can be the first step towards actualizing a Diverse Workplace, though not an end by itself. Some HR experts suggest that the job posts need to be adjusted to be more diversity-friendly: Another point of view[6] is that this bias doesn’t actually exist, and what employers should really do is to inform better about the hiring process. On our strategy map, we can formulate this hypothesis as: With this idea in mind, we can define some leadership-related keystones and focus on these indicators: There are a lot of training and workshop products offered on the market. The Balanced Scorecard (BSC) is a planning and management system widely used by large corporations around the world to align business activities with corporate vision and strategy, improve internal and external communication, and monitor performance against strategic goals. Without a doubt, this book is a significant contribution to the continuing evolution of the discussion about measurements and Diversity." Training on: The training goal for the strategy map can be formulated as: In terms of performance measurement, the efforts part can be quantified and measured by: As for the results, it’s interesting to look beyond the basic test scores and analyze if the actual behaviour patterns have changed. While we are now equipped with KPIs and a strategy map, it always makes sense to put those business tools aside and ask a simple question: Do the indicators and the initiatives that we introduced actually create a positive change that we expected? What is obvious is that the economic sustainability of an organization can be predicted on their D&I achievements. Above, we discussed some ideas applicable for the Talent Management department. Further, unless such Diversity efforts are backed by the executives and the complete cooperation of the middle managers and the full participation of the HR department is assured, having a Scorecard alone would not reflect the extent to which an organization is diverse. Further, it can also foster a workplace that is free from discrimination of the physically challenged employees. Diversity and Inclusion are often named as a driver factor of innovations. If you prefer to receive posts like these by email sign up to our newsletter. While departments typically do not have a formal mission or vision, having an informal missio… A key strategic control and governance mechanism designed to enable managers to respond to strategic uncertainty is a strategic performance measurement system, such as the balanced scorecard (BSC). Indeed, there is always the temptation to show progress since such results are tied into the performance appraisals of executives. Balanced Scorecard in Higher Education Opportunities and Challenges An evaluation of balance scorecard implementation at the College of St. Scholastica. For example, for the external customers, we can take some marketing metrics: For internal customers, we can align the D&I scorecard with, for example, a procurement scorecard by linking to these indicators: Looking at the expected benefits of diverse and inclusive business environments, we can formulate these goals: Let’s start with the indicators for inclusion. The importance of such a Diversity Scorecard lies in the way in which it uses data to report the progress leaving little scope for “linguistic gymnastics” wherein senior executives routinely talk about diversity but very little is achieved on the ground. These scorecards vary in type from ones that rate the entire The findings of such study can reveal that some important customer groups don’t have an internal “advocate” in your organization. The reason is that inclusion is a feeling, and as any feeling, it is hard to quantify it objectively. The Business Case for Diversity and Inclusion 35. If those ideas are taken seriously (=inclusion), an organization will enjoy some performance improvements. By “keeping the score” on how well they have been doing on various measures related to strategy, policies, and other imperatives, organizations use metrics and KRAs or Key Result Areas to monitor and report the overall progress on the goals and objectives that they have set for themselves. and will eventually lead to better diversity and inclusion on all levels of the organization. Being an inclusive organization is no longer a proactive initiative. A Diversity Scorecard can be used to measure how many women were recruited in a certain fiscal, how many women were promoted, and at what levels, the percentage of women being given raises in their salaries and bonuses, the number of cases of discrimination reported, as well as other parameters such as how many women are managers and senior managers when compared to men. In his opening speech at the global conference on reinventing government, Vice President Al Gore stated that "If we want our government to be accountable for every taxpayer's dime, then we need a workforce that will be held accountable for real results." When defining any strategy, we need to understand the causality, find success factors, and understand better expected outcomes. Diversity doesn’t make a lot of sense without inclusion: The best talents that don’t feel included will not contribute and won’t’ stay in the organization for a long time. But, as a rule, managers rarely think of measurements. Indeed, in our experience, we have come across many organizations that pretend to be diverse and report progress whereas in reality, what they are doing is “window dressing” wherein they “showcase” some prominent faces of women and other minority categories and in reality, things are what they were without any discernible change. Here is another proxy metric for inclusion: To understand the effectiveness of the D&I strategy, we are interested in seeing how this metric will progress over time. 9 2016 Balanced Scorecard Goals Percent of Officer (VP/SVP/EVP) and Director vacancies filled with internal candidates Above >57%, On 52-57%, below <52% Internal: Proportion of officer and director “top talent” A metric in this case can be formulated as: While this approach gives some numbers, it is far from being perfect. Guides and instructions. Is Government Mandated Maternity Leave Really a Solution. About The Diversity Scorecard Korn/Ferry International examined gender diversity of boards of the 100 largest listed companies in each of seven Asia Pacific markets: Australia, China, Hong Kong, India, Malaysia, New Zealand, and Singapore and the extent to Lastly, it is often said that in Cricket, a scorecard tells half the story alone of the match and hence, it is important to watch the match fully as well as subsequent matches as well to gauge how well a particular player has performed. As for the mission statement, on the D&I strategy scorecard, you can reuse the company’s global mission statement or formulate something more specific and more inspiring for your team, for example: As we discussed above, studies confirm that there is a correlation between the D&I and the financial results. While there are a lot of diversity (representation) metrics, the inclusion part is hard to measure. First of all, it is a feeling. You can evaluate its feasibility for your firm and if creating a Diversity Scorecard using this approach works well. Starting out from the existing proposal of a diversity scorecard, this paper extends the DM approach into the notion of an open balanced scorecard. Having said that, by preparing a Gender Diversity Scorecard alone, organizations cannot claim to be diverse entities despite what they report as progress. Balanced Score Card - BSC: The Balanced Score Card (BSC) is a strategic planning and management system used extensively in business and by organizations worldwide. For the organization, it means an opportunity to adjust internal diversity and serve those customers better. As for the inclusion, HR contributes in the form of training and better representation of minorities on the management roles, but the final results depend on people from other departments that will or will not create a feeling of inclusion for their colleagues. Copy it to your free account at BSC Designer and use it as a template: Diversity and Inclusion is not a one-time initiative. Sample Diversity Dashboard 0% 10% 20% 30% 40% 50% Instead of complex metrics, focus on just one: Instead of a formal innovation pipeline, create an innovation sandbox where members of your team can try new ideas without the need to rationalize their potential value. A company can ensure diversity (for example, by the quotas), but what actually matters is if people stay and get promoted in the organization. Making the hiring process less bureaucratized and more transparent will certainly lead to a better diversity of the candidates. What is clear is that the hiring process needs to be adjusted according to the D&I strategy. Sample Diversity Dashboard. In the context of a strategy scorecard, it means that all indicators should be updated and analyzed periodically. Use these materials to get started with your new scorecard faster. The metrics can be: The strategy scorecard that we discussed above is just a starting point for your own strategy. ... -First is an organisation that brings some research-backed credibility and rigour to the passionate debate about gender diversity at the top of large organisations. Whether you are looking for a professional Balanced Scorecard software, or just researching information about Balanced Scorecard and business strategies, we recommend you to download and try our BSC Designer software (no credit card is required). Users of BSC Designer will find the “Update interval” feature in the “Initiatives” dialog for this purpose. 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Moreover, the parameters and the metrics being tracked can be tied to the pay raises and bonuses of the senior leadership as well as middle managers so that they are incentivized as well as run the risk of punitive action lest they fail to meet the goals set for them. Another measurement strategy is based on the hypothesis that inclusive companies are able to retain diverse talents for a longer time. As mentioned earlier, the Diversity Scorecard would mirror the actual progress made on the efforts to make the organization a diverse place as well as to the actual outcomes when measured against the goals. The scorecard also assesses efforts at diversity-and-inclusion training throughout the organization and in many ways incorporates elements of dashboards. Diversity: It’s the law/compliance-driven It’s the right thing to do/conscience-driven It’s a business imperative/competitive-driven It’s about talent/capacity and capability – driven The scorecard needs to be aligned with the business strategy or driver Based on the i4cp Global Diversity Practices Survey 15 "Diversity practitioners desiring to apply the balanced scorecard approach in the Diversity arena, or to enhance their thinking about "Diversity measurements", will find Ed Hubbard's latest work to be helpful. Your HR mission or vision is separate from that of the organization, and should be used to highlight the key focus of your department. In this sense, it’s not enough to define the high-level D&I strategy; the company’s management needs to understand how defined goals can be cascaded throughout the organization. Adapting the Balanced Scorecard. To reflect this idea on the strategy map, let’s use a generic financial goal, for example: An alternative approach is to quantify the expectations of the stakeholders (like we did on the non-profit scorecard for community interests) and focus on the value created. Follow those ideas to have a long list of metrics for diversity. If an organization wants to leverage the benefits of diversity and inclusion, it needs to align diversity dimensions with their strategy. In the best case, it becomes a part of the company’s culture. Balanced scorecards can even be created at the individual employee level either as an evaluation mechanism or as a means for the employee to set and monitor individual goals. We will follow up with you with lessons about the Balanced Scorecard and will keep you informed about the trending articles on bscdesigner.com, Diversity and Inclusion Strategy Scorecard, Diversity and Inclusion: Strategy Scorecard with KPIs. Starbucks Balanced Scorecard Increase diversity and international scope of operations Measure: Number of international stores opened Target: Increase Starbucks' presence in the developing world in high-profit areas such as China and India Action: Open new stores in China and India Improve communication between company and customers Measurements are very important for evaluating performance. The answer to this question can be a good starting point to improve things. Firm supports membership/access for attorneys and staff to utilize Balanced Scorecard. The Balanced Scorecard Institute (BSI) and a cross-representational mix of institutional Similarly, in recent years, organizations have also been using specific and function wise scorecards as well as scorecards that “tie in” the progress of each function or department with the overall organizational goals and objectives. © Management Study Guide One of the approaches that can be viable in order to track diversity metrics is the Balanced Scorecard one. Also, making the decision boards more diverse, like we discuss below, will help to create and maintain a more inclusive workspace. There are at least three goals that resonate with the D&I initiatives: Before, we were talking about the way to align an organization’s strategy with the SDGS goals. Some will be dictated by the local regulations (see the part about quotas), some will be part of a reporting framework commonly used in the company’s business domain. Organizations that have mastered diversity and inclusion have a better chance of attracting and retaining the best talents. called the “Diversity Scorecard,” based on Kaplan and Norton’s balanced score-card for business, and the academic scorecard for higher education (see Harold F. O’Neil, Estela M. Bensimon, Michael A. Diamond and Michael R. Moore’s “Designing and Implementing an Academic Scorecard,” Change, November/December 1999). That’s the reason why companies like Google are not limiting their diversity target to the existing pool of talents but are investing in social and educational initiatives, like STEM accessibility for underserved communities. 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