Diversity is Good for Business

            Astute business leaders are already considering that the changing face of the nation also represents the changing face of business. They understand that to thrive both domestically and globally, being multicultural is essential. In focusing on the domestic front, consider for example, that:

·       The biggest demographic change in the United States is the rise of the majority-minority; 92% of U.S. population growth is attributed to ethnic groups, while the growth in the working-age population will be as much as 83 percent (Loehr, 2015).

·       By 2020, minorities are projected to make up 40 percent of the civilian labor force (Loehr, 2015).

            While ethnic diversity is unquestionably an essential component of a diversified workforce, “creating a work environment that values diversity is not as simple as hiring individuals with a range of skin tones and language skills” (Na, 2015). Instead, by diversity we mean “valuing, respecting, and appreciating the differences (such as age, culture, education, ethnicity, experience, gender, race, religion, and sexual orientation, among others) that make people unique” (McNett, 2005).

Benefits of Diversity

            One benefit of diversity is that organizations that recognize its importance will be able to compete more effectively for qualified individuals, enhancing their very survival. Indeed, companies that are leading the way in embracing diversity already have come to understand that “when you have a homogeneous company, it can be very difficult to get diverse candidates to even apply” (Gaudiano and Hunt, 2017).

            The imperative to rework human resources strategies with diversity in mind, further stems from the growing recognition that “only in an environment of diverse perspectives, human experiences, and thinking styles can the conversations that generate the insight and new ideas required for innovation be sparked” (Na, 2015). That is, “diverse work groups often have more and better ideas because of broader backgrounds and experiences” (Kokemuller, 2017).

            Moreover, “workplaces in which employees represent the basic makeup of the community population are typically better received by customers and the public (Kokemuller, 2017). The same holds true for companies working with global markets, as ethnic and cultural diversity often provides them with a better understanding of their global customers.

Managing Diversity

            There is no single approach to working with diversity. “It is not only how a company defines diversity, but what it does with the experiences of being a diverse organization, that delivers on the promise” (Thomas and Ely, 1996). Foremost to improved outcomes is the need to obtain top management support and integrate diversity into all company functions. Beyond these initial steps, the best strategies for working with diversity are (Wentling, 1997):

• training and education programs
• organizational policies that mandate fairness and equity for all employees
• mentoring programs for minority employees
• more systematic career guidance and planning programs
• performance appraisal systems that are non-discriminatory
• outreach programs, such as internship programs, scholarships, targeting recruitment in the community, and lectures at schools.

            Importantly, all forms of training should include awareness-building, skill development, application, and support (Wentling, 1997). Creating a corporate culture that supports diversity is especially important, as the “potential benefits of training will not be likely to occur unless trainees return to a supportive environment for applying what they have learned” (Wentling, 1997).

           Company leaders who are cultivating diversity in their workplace clearly understand the benefits, including improved employee recruitment, innovation, and connectedness with diverse consumer groups.  However, because of the growing diversity in our society, the ability of U.S. companies to leverage the incredible resource that those who are ‘different’ can offer is becoming ever more urgent.

 References

Gaudiano, P and Hunt, E.  (2017, April 10). The Top Eight Excuses that Inhibit Workplace Diversity. Forbes.  Retrieved from: https://www.forbes.com/sites/gaudianohunt/2017/04/10/the-top-eight-excuses-that-inhibit-workplace-diversity/#43cfedc24899

Kokemuller, N. (2017). What is Diversity and How Does It Impact Work?  Chron. Retrieved from: http://smallbusiness.chron.com/diversity-impact-work-15985.html

Loehr, A. (2015, April 22) These Four Workplace Trends Will Change Your Organization: Are You Ready? [Web log post]. Retrieved from: http://www.anneloehr.com/2015/04/22/four-workplace-trends/

McNett, J. (2005) Diversity in The Workplace: Ethics, Pragmatism, Or Some of Both? Understanding and managing diversity: readings, cases, and exercises. - Upper Saddle River, N.J: Pearson Prentice Hall

Na, Y. (2015, June 30). Diversity in the workplace, no longer optional.  Flamingo.  Retrieved from: http://flamingogroup.com/diversity-in-the-workplace-no-longer-optional

Thomas, D.A. and Ely, R. (1996, September-October). Making Difference Matter: A New Paradigm for Managing Diversity. Harvard Business Review. Retrieved from: https://hbr.org/1996/09/making-differences-matter-a-new-paradigm-for-managing-diversity

Wentling, R. (1997, Summer). Diversity Initiatives in the Workplace: Work in Progress at the University of Illinois. CenterWork Volume 8, Number 2. Retrieved from http://ncrve.berkeley.edu/CW82/Diversity.html

Where Does Collaborative Value Come From?

When it comes to the creation of value, not all collaborations are equal, as the Collaborative Value Creation (CVC) Framework reveals. The framework helps us understand how value creation can change as the partnering relationship evolves through the four stages of the Collaboration Continuum: philanthropic, transactional, integrative, and transformational (Renz 2016). The increased potential for value at each stage coincides with changes in three drivers of value: alignment, engagement, and leverage (Renz).

The philanthropic stage is the most common and traditional type of relationship (Austin 2003). The Timberland-City Year relationship started this way in 1989 when the youth service organization requested and received a donation of 50 pairs of boots from Timberland. Given the shared goal of community service, the relationship evolved into the transactional stage where Timberland employees were mobilized to participate with City Year in community service events. Key benefits of the synergism between the partner’s resources were increased business and visibility. In 1994, the collaboration evolved into a strategic alliance that included integration of the vision and values of both companies and the formation of a joint enterprise to create the City Year Gear product line of apparel and gear. In this integrative stage, the missions, strategies, organizations, and resources merged, and the collaboration took on the characteristics of a joint venture (Austin). While integration has much greater strategic value, it is more complex to manage than other forms of collaboration (Renz). In this case, an added complexity was the potential conflict of interest of the CEO of Timberland serving as the chair of the non-profit’s Board of Directors. Yet, the multifaceted form of engagement in this partnership points to a deeper commitment that will help to sustain the collaboration through challenges (Renz), including the financial setbacks that both entities experienced in 1994. 

While geared toward the nonprofit-business relationship, the Collaboration Continuum can also provide insights about the generation of value in nonprofit-nonprofit and nonprofit-government collaborations. 

The Seattle Art Museum-Housing First relationship, for example, was a nonprofit-nonprofit transactional collaboration. The organizations determined there was mutual benefit in cooperating on the “Citizens for a Better Seattle” capital campaign, rather than compete for project votes at the ballot box. The strategic importance of this relationship is limited to alignment on a single activity, though considerable value was derived from the ability to leverage available resources and assets. Increasing the strategic value of the partnership is hampered by mind-set of the partners, namely the lack of trust among housing advocates for their museum partners.     

On the nonprofit-government front, La Alianza Hispana, a “self-help alliance for Hispanics” is confronted with a take-it-or-leave-it contractual proposition from the Massachusetts Department of Social Services (DSS). Namely, the current transactional collaboration around the provision of “soft” services, would be replaced with a higher dollar value collaboration around the delivery child protection and case management services. In this case, an examination of value drivers points to the conclusion that La Alianza would be well advised not to enter into the proposed collaboration due to a lack of alignment on mission and lack of resources. While these challenges could potentially be overcome, we are told that DSS is limited in its ability to help La Alianza measure up to contractual expectations and that the DSS' proposed rate would not adequately cover legal and other overhead expenses.  

In summary, it is useful to consider how the stages in the Collaboration Continuum exhibit differences in strategic value, engagement level, importance to mission, and resource deployment (Austin). The organization’s stance on these strategic aspects can provide an important guide in organizational decision-making relative to the current and potential value of a collaborative relationship.

References

Renz, David O. The Jossey-Bass Handbook of Nonprofit Leadership and Management (Essential Texts for Nonprofit and Public Leadership and Management) 4^th edition, 2016.

Austin, J. (Summer 2003). Strategic Alliances: Managing the collaboration portfolio. Stanford Social Innovation Review. Retrieved from: https://ssir.org/articles/entry/strategic_alliances

Strategic planning helps organizations thrive

Organizations that want to thrive into the future - like the Seattle Youth Involvement Network (SIYN) - understand that only through the process of strategic planning can leadership effectively evaluate and address gaps or challenges.  After 10 years of serving the Seattle community, SIYN leaders determined there was a critical need to develop a responsive strategic plan due to:

1. Instability and an identity crisis stemming from constant changes in scope and programming to meet the interest of staff, board members, and funders. 

2.     A confusing lack of organizational differentiation due to a changing community and rapidly growing number of organizations providing youth engagement services.

3.     Timeline-related need to revisit strategic development, as initial official strategic plan had limited four-year outlook.

At the outset, SIYN leaders ambitiously sought to give the organization a new vision, develop a framework for carrying out its mission, streamline programming, and improve fund raising and public relations” (Lovelady).

The first step was a situational analysis where board and staff came together to assess SYIN’s strengths, weaknesses, opportunities and threats, what is commonly called a “SWOT” analysis. This analysis is essential as it makes it possible to match an organization’s strengths with market opportunities (Assignment).

Market research, then, is the second crucial element in the strategic planning process. Given SIYN’s concerns about changes in the community and increased competition, their research included a review of demographic information, research on best practices and a colleague-competitor scan.  The scan supported SYIN’s assumption that they were working in a very competitive market, a key threat.  However, the research also affirmed that SYIN was a good collaborator and had deep relationships with collegial organizations, an organizational strength.

Importantly, the combination of these two elements -  SWOTS analysis and external market data - serve to provide critical data to support strategy development. Without this information and insight, the organization’s strategies will not be in alignment with or effective in the marketplace (Assignment).  Stakeholder input, which is typically gathered through surveys, focus groups, and interviews, is also viewed as a critical initial step in strategy development.    

In formulating the strategic plan, results of the entire SIYN planning process were compiled and presented to board members, staff and volunteers in preparation for a strategic planning retreat. Retreat participants, working in small groups, used the compiled data “to discuss questions around the role of the organization, its primary purpose, and what region and population it should serve” (Lovelady).

The results of those discussions lead to a new mission to address what the organization deemed to be the largest gap in youth service: political involvement and expanded programming statewide. It read: “We educate, empower, and engage Washington youth in the democratic process to encourage youth voice and promoted a lifetime of participation in their communities” (Lovelady). The previous mission was much broader in purporting to strive for a society that respects youth leaders, develop an effective and confident youth voice, and create avenues for civic involvement, leadership training, and decision-making.

The planning group also identified five goals relating to volunteer engagement, partnerships with investors, brand recognition and public relations, quality programming, and staff capacity.  Either directly or indirectly, each of these goals relate back to weaknesses identified by the SWOT analysis.

With a new identity as 2V/ACT, the organization sought to implement the plan. However, the ambitious statewide effort was challenged by both insufficient funding and board and staff capacity, forcing further consideration of options about the future of the organization.  Whatever the decision now though, the executive director continued to focus on the process as most important – it needed to be intentional, transparent, and true to 2V/ACT’s mission. 

References

Lovelady, Beth. “2V/ACT: Planning for Change and Determining Relevance.” The Electronic Hallway, University of Washington: Seattle, WA.

Assignment Point website. “When should a strategic plan be developed,” 2017. http://www.assignmentpoint.com/business/strategic-management-business/when-should-a-strategic-plan-be-developed.html

Staying Competitive: The Do's of a Strategic Makeover

The challenge to remain competitive today is forcing businesses and organizations, including those in the nonprofit sector, to reconsider the basic concept of strategy.

The Role of Nonprofits in American Life

When most people think of nonprofits, they likely think of well-known giants like the United Way or the Red Cross, as compared to more uniquely localized providers such as churches, crisis intervention centers, and civic centers. The notion of a nonprofit may also conjure up thoughts of a “501 (c)(3),” the tax-exempt status under the Internal Revenue Code claimed by “charities” that form to provide “public benefit”, which also happens to apply to many hospitals and universities.