GOT DIVERSITY? HERE'S HOW TO KEEP IT FOR THE LONG TERM

David Orgel

There's lots of talk about building diversity into organizations these days. How will we know when these efforts have truly succeeded?

"We'll know we're successful when the vice president of diversity gets to work herself out of a job," quipped Kathy Herbert, Albertsons' executive vice president, human resources, during a recent panel at the Grocery Manufacturers of America Executive Conference in West Virginia (see story, Page 22).

Diversity leaders in corporate America don't have to worry about losing their jobs any time soon.

Herbert conceded that companies are far from claiming victory in this endeavor. It's even possible that that day will never come, given the quickly shifting priorities of business.

Some organizations have figured out a formula that might get them there. A number of leaders are embedding diversity in their cultures.

The reasons shouldn't be surprising. Organizations become stronger when they support and promote a broad range of associates with varying backgrounds.

Among the corporate leaders in this effort is Wal-Mart Stores, the much-maligned giant retailer that is hoping to boost its image. But there are other food retailers and suppliers also helping to lead the diversity charge.

Executives from Pepsi-Cola North America and Miller Brewing Co. joined those from Wal-Mart and Albertsons on the GMA diversity panel. Also deserving mention is the Network of Executive Women, which has been a strong diversity advocate and just released a report urging companies to support the promotion of women of color in the consumer products and retail industries.

So how are companies making diversity a permanent part of their cultures? The progressive ones are putting the machinery of diversity into place piece by piece to ensure sustainability.

Companies are forming affinity and resource groups and embracing mentoring programs. Wal-Mart formed an office of diversity last year to help oversee its efforts. It also offers classes for managers on this topic. Associates are told these activities are driven by the highest levels of management, especially the CEO.

Companies are spreading the word about their initiatives to wider audiences.

"We have always done the right thing," Pat Curran, Wal-Mart's senior vice president, operations, said during the GMA panel. "But in the past we let our actions speak for themselves. Now we have to go out and tell our own story."

What if diversity efforts are stalled by managers who don't buy into the concept? Companies are recognizing the need to put teeth into their programs. Some are tying bonuses to diversity efforts.

"All of the officers are held accountable for placement goals," Curran said.

In fact, Wal-Mart officers who failed to achieve diversity goals last year would have lost 7.5% of their bonus, Curran said. This year the figure has been raised to 15%.

That is a smart approach. Diversity proponents need to carry a big stick if speaking softly doesn't work.