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Category Archives: diversity evaluation techniques

How well does your Higher Education metrics measure up?

I am often asked are Diversity Key Performance Indicators (KPI’s) as relevant for Higher Education as they are for the private sector? My answer is always a definite ‘Yes’. In some ways, these metrics are even more important since recruiting and retaining scarce resources such as diverse faculty members from key demographic groups can be even more challenging and harder to replace.

ROI Graphic 8

Interest in diversity and the return-on-investment associated with it is increasing. Diversity Return on Investment (DROI®) for Higher Education is no different. Several issues are driving this increased interest and its application to a wide range of diversity-related issues in Higher Education. Pressures from the Board of Trustees, Donors, and others to show that institution is well-run and cost-effective are probably the most influential drivers. Competitive economic pressures are causing intense scrutiny of all expenditures, including all diversity-related costs. In addition, diversity professionals in Higher Education know they must begin to show how the diversity process is linked to the bottom line in hard numbers. In short, they must calculate and report their diversity ROI.

Value ­creating activities are not captured in the tangible, fixed assets of the institution. Instead, value rests in the ideas of people (intellectual capital) scattered throughout the institution, in faculty, staff, student, and supplier relationships, in databases of key in­formation, and cultures of inclusion, innovation and quality. Traditional financial measures were designed to compare previous periods based on internal standards of performance. These metrics are generally not helpful in pro­viding early indications of quality, or diverse workforce problems or opportunities. They tend to give us information about what happened “after the fact.”

Financial measures provide an excellent review of past performance and events in the institution. They represent a coherent articulation and summary of activities of the organization in prior pe­riods. However, this detailed financial view has no predictive power for the future. As we all know, and experience has shown, great financial results in one month, quarter, or even year are in no way indicative of future financial performance. In a diverse, competitive, global world, organizations cannot operate on financials alone. Having predictive power for the future is essential which requires both “lead” and ‘lag” indicators of institutional performance.

Many institutions of higher learning have inspiring visions and compelling strategies, but are often unable to use those beautifully crafted words to align faculty, staff, student, and community actions with the institution’s strategic direction. However, applying a Balanced Scorecard approach to its measurement strategy allows the institution to translate its vi­sion and strategies by providing a new framework, one that tells the story of the institution’s strategy through the objectives and measures chosen. Rather than focusing on financial control devices that provide little in the way of guidance for long-term decision-making, the Scorecard uses measurement as a new language to describe the key elements in the achievement of the strategy. These key measurement dimensions in an institution’s scorecard are called “Perspectives”.

 

A sample list of Perspectives I recommend for a Balanced Diversity Scorecard in Higher Education include:

  • Access & Retention Perspective
  • Financial Perspective
  • Excellence Perspective
  • Faculty Productivity Perspective
  • Education Effectiveness Perspective
  • Financial Impact Perspective
  • Community Partnership Perspective

Institutions of higher learning often find themselves competing for scarce resources and in many cases it is the institutions that can demonstrate the most scorecard progress that have their budgets renewed or revitalized. In addition, these institutions must show their level of effectiveness and efficiency to sustain accreditation. Creating a workforce climate of faculty, staff, student and community diversity and inclusiveness helps drive institutional effectiveness and innovation. To show progress against these outcomes requires a set of Return on Investment (ROI) focused analytics and measures that clearly highlight the actions taken and outcomes achieved.

Sample measures I often recommend for these perspectives include:

  • #/% Student Lead Conversions by Group from Partnerships
  • Year over Year Reduction in Turnover of Faculty (Tenure Track and Non-Tenure Track)
  • #/% Student Favorable Response re: Usefulness of their Education -6mos., 1yr. 2yrs after job placement
  • Year over Year Increase in enrollments by group

It is essential to show the link between the effective utilization of diversity and inclusion change processes and the ultimate success of the institution operating in a global multicultural society. If the institution is to take its job of educating the next generation of leaders seriously, it can ill-afford to utilize an operation and performance approach that has no connection to the diverse world in which we live. Each key performance indicator and metric used to show progress must be rooted in demonstrating an effective recruitment, retention and use of diverse talent (Faculty, Staff, Students, and Community members) and other resources.

How well does your Higher Education metrics measure up? What are some of the greatest challenges you face? Let us hear from you. We will highlight potential solutions in this Blog.

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CEOs Want to Know the Impact of Diversity ROI on Initiatives but Aren’t Getting It!

A study of CEOs analyzing what CEOs want from their Diversity organizations concluded that CEOs want to see the impact and ROI of their Diversity investments but instead receive only activity and satisfaction data. So, why aren’t Diversity & Inclusion Executives, Managers, Practitioners, etc. measuring their impact and sharing with their CEOs? After all, this is not exactly a revelation. Some of the leading reasons are lack of resources, lack of support from the CEO, lack of funding, lack of skills, etc. My take: these are all just excuses since there are a huge number of resources, books, workshops, etc., available. This strongly suggests that many Diversity Practitioners need a serious skill update or should excuse themselves out of the job. If they remain without these skills, at some point, they may face elimination and/or extinction.

This is the 21st Century, with its emphasis on cutting edge as well as “State of the Practice” technological and analytical advances, yet Diversity Practitioners are using old-fashion measurement skills where the wheels immediately come off of their measurement system wagons. We haven’t been in the “Old West” of Diversity measurement for quite a few decades. State of the Art Diversity ROI processes have been here for quite some time.

Accountability Trends

Many enlightened business managers often take a professional business approach to Diversity, with ROI being part of the strategy. Top executives who watched their diversity budgets continue to grow without appropriate accountability measures have become frustrated with this approach. In an attempt to respond to the situation, they have turned to Diversity Return on Investment (DROI®). Top executives are now demanding DROI® calculations from Diversity departments where they were not required previously.

So, what factors prevent us from mastering Diversity ROI measurement? Here are a few excuses I hear that Diversity Practitioners say are consistently challenging and “Small Doses” to begin to address them:

Assorted Medicine Pills in Caps

Small Doses to Bust Up Measurement Myths and Misconceptions

Issue-1: Lack of Skills and Orientation
Many Diversity staff members neither understand ROI nor do they have the basic skills necessary to apply the process within their scope of responsibilities. Diversity ROI Measurement and evaluation is not usually part of the preparation for the Diversity job or taught as part of a university education focused on diversity. Also, the typical Diversity training program or intervention does not focus on results, but more on diversity awareness concepts, activities, or other issues. Staff members attempt to measure results by measuring learning only instead of the full range of Diversity performance intervention outcomes (at all 7 levels) that drive business. Consequently, this is a tremendous barrier to implementation that must be changed such that the overall orientation, attitude, and skills of the Diversity staff member are focused on business results, impact, and/or outcomes.

Small Dose-1: Build DROI® Skills and Measurement Orientation
Don’t wait until you are asked about the DROI® of your Diversity intervention to gain competency and business acumen in this area, start learning about DROI® today! Attend a Diversity ROI Webinar, Workshop, Read books on Diversity ROI, Use DROI® Tools, etc. (Note: DROI® is a registered trademark of Hubbard & Hubbard, Inc., All Rights Reserved.)

Issue-2: Faulty Needs Assessment
Many existing Diversity interventions are not based on an adequate needs assessment. Some diversity interventions have been implemented for the wrong reasons based on requests to chase a popular fad or trend in the industry. Even worse, they schedule training for everyone in the organization costing thousands or millions of dollars with NO measurable DROI®. If the intervention is not needed, the benefits from the program will be minimal or wasted. A DROI® calculation for an unnecessary program will likely yield a negative value. This barrier can be eliminated by training and certifying Diversity Executives and Practitioner in programs such as Diversity ROI Certification, training and measurement workshops, etc.

Tools and Templates 4

Remember: “If there is no verified need you cannot calculate Diversity ROI Impact”

Small Dose-2: Learn the Detailed Steps to Conduct a Comprehensive Needs Assessment
Needs analysis is the cornerstone of any Diversity performance analysis effort. It provides you with appropriate justification for either developing or not developing your Diversity intervention. You must conduct a needs analysis, no matter how abbreviated, before any Diversity intervention takes place.
The objectives of a needs analysis are to:

  • Describe the target population
  • Describe the exact nature of a performance discrepancy (Ideal versus Actual Performance)
  • Determine the cause(s) of the discrepancy
  • Recommend the appropriate solution(s)

Issue-3: FEAR
Some Diversity departments do not pursue DROI® measurement implementation due to fear of failure or fear of the unknown. Fear of failure appears in many ways. Designers, developers, facilitators, and program owners may be concerned about the consequences of a negative DROI®. They fear that the DROI® measurement process will be a performance evaluation tool instead of a process improvement tool. Also, the DROI® process will stir up the traditional fear of change. This fear is often based on unrealistic assumptions and a lack of knowledge of the process.

Small Dose-3: Overcome FEAR by Taking Action
The best way to overcome FEAR is by (a) taking action, (b) generating results, (c) evaluating the outcome, and (d) implementing improvements. FEAR is often based on a lack of knowledge so the antidote is to “learn” and “master” the DROI® skills and processes.

Issue-4: Discipline and Planning
A successful DROI® evaluation implementation requires much planning and a disciplined approach to keep the process on track. Implementation schedules, evaluation targets, DROI® analysis plans, measurement and evaluation policies, and follow-up schedules are required. The Diversity Change Management team may not have enough discipline and determination to stay on course. This becomes a barrier, particularly if there are no immediate pressures to measure the return. If the current senior management group is not requiring a DROI® evaluation, the Diversity Change Management team may not allocate time for planning and coordination. Also, other pressures and priorities often eat into the time necessary for an effective DROI® evaluation implementation. Only carefully planned implementation efforts succeed.

Linkage Graphic using Puzzle Piece

Develop Strategic Capabilities and Follow-thru

Small Dose-4: Build DROI® Discipline and Planning Focus
There is really no substitute for implementing a thorough approach to a DROI® evaluation process. The practice of Diversity ROI evaluation should be an “industry standard of professionalism and competence” in the Diversity and Inclusion field and discipline. To do otherwise sets us apart from other professional discipline such as Marketing, Sales, Operations, etc. that require standard metrics and analyses to determine their effectiveness and impact. Diversity ROI impact analysis must be implemented using effective project planning and management skills as well as following the DROI® methodology according to each step in its design.

Issue-5: False Assumptions
Many Diversity staff members have false assumptions about the DROI® process that keep them from attempting DROI®. Typical assumptions include: (a) The impact of intervention cannot be accurately calculated, (b) Operating managers do not want to see the results of Diversity expressed in monetary values. They won’t believe it, (c) If the CEO does not ask for the DROI®, he or she is not expecting it, (d) CDO denial – “I have a professional, competent staff. Therefore, I do not have to justify the effectiveness of our programs”, (e) Learning or this type of intervention is a complex but necessary activity. Therefore, it should not be subjected to an accountability process, etc. These false assumptions form perceptible barriers that impede the progress of a DROI® evaluation implementation.

Performance Measurement

Use Evidence-based Data for Credibility

Small Dose-5: Eliminate Any False Assumptions
Credible processes rooted in strategic performance-based sciences to calculate Diversity ROI have been in existence for over 30 years. Yet, Diversity practitioners have been slow to enroll and learn what it takes to be fully competent and capable in this scientific discipline. Let’s face it; the DROI® evaluation process and its associated analytics are here to stay. It’s only realistic that Diversity practitioners eliminate any false assumptions, wishful thinking and/or outdated measurement paradigms that prevent them from being effective. In the future, there is likely to be even more demands for DROI® analysis feedback, demonstrated credibility and intervention performance value that tie to the organization’s bottom line.

Dr H Book Tower Graphic for Proposals

Sample Diversity ROI Resources by Dr. Hubbard

Using these processes has the added benefit of improving the effectiveness of all Diversity interventions we conduct. Only those Diversity Practitioners who can operate as full strategic business partners will have what’s needed to survive for the long term. Do You Have What It Takes To “Survive”, “Thrive”, and “Drive” Real Business Performance using  Diversity & Inclusion? The next move is yours!

Dr. Edward E. Hubbard is President & CEO of Hubbard & Hubbard, Inc. and is recognized as the pioneer and founder of the Diversity Measurement and Diversity Analytics fields. He is the author of over 40 plus books including the ground-breaking “Measuring Diversity Results”, “How to Calculate Diversity Return on Investment”, “The Diversity Scorecard: Evaluating Diversity’s Impact on Organizational Performance”, “Diversity Training ROI”, “The Executive’s Pocket Coach to Diversity and Inclusion Management”, “Measuring the ROI Impact of ERGs and BRGs”, “The Diversity Discipline”, “The Hidden Side of Employee Resistance to Change”, and many more. Dr. Hubbard is available Keynote presentations, Strategic Diversity and ROI Consulting, Training, etc. He can be reached at edhub@aol.com.

 

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Engaging in Fact-Based Diversity ROI

The roadblocks to measuring diversity and inclusion no longer exist. It is possible to evaluate so-called soft projects with a well-defined diversity ROI process and methodology.

de_1209_diversitybythenumbers_blog_v1_680x300jpgThere has been a shift from faith-based to fact-based investing. Soft functions such as a leadership development, employee engagement or diverse work team programs are often assumed to be making a difference. This suggests it would be difficult to measure and place a monetary value on the project, and more difficult to connect the particular initiative to a business impact measure.

Things have changed. These roadblocks no longer exist, and it is possible to evaluate so-called soft projects credibly with a well-defined diversity return on investment process and methodology. Executives want to see their organization engage in fact-based investing and show the monetary value of that investment with credible data.

For example, a study conducted by Chief Learning Officer magazine’s Business Intelligence Board involving 335 chief learning officers. It reveals interesting results describing the current and future use of ROI. According to the “2015 Measurement and Metrics” study, 36 percent of the CLOs use business impact data to show the impact of the training organization on the broader enterprise; 22 percent of the CLOs use ROI data for the same purpose.

Some 23 percent plan to implement ROI in the next 12 months, and 10 percent plan to implement it in the next 12- to 24-month time frame. Also, 17 percent plan to implement it with no particular time frame. This means almost 50 percent of the CLOs plan to implement ROI in the future. When that number is added to the current use, this suggests that 71 percent of CLOs are either using or plan to use ROI in the future. Diversity and inclusion leaders would be wise to make similar plans.

The study also revealed a desire to see the value of projects and programs before they’re implemented. Before the recession, this was not so much of a concern. However, since the recession, this is a typical request, particularly if the investment is large. If you are building a $4 million wellness and fitness center, you need to show the ROI in advance. If you plan to implement a $5 million diversity leadership development program, you might have to show the diversity ROI in advance. Forecasting in advance is important, allowing everyone to consider how the project works and how it delivers results.

Companies often struggle to evaluate whether their diversity and inclusion initiatives meet business needs and if they are worthwhile investments. Knowing how to construct and use diversity ROI-based metrics and predictive analytics is a mandatory skill and competency that all diversity and inclusion professionals must possess to be seen as credible. When diversity professionals are competent and capable of properly using such approaches — showing the costs versus benefits of major diversity and inclusion programs, this demonstrates the ultimate level of accountability. It demonstrates a value that executives understand, appreciate and desire.

The beauty of predictive analytics for diversity and inclusion is that it uses leading measures — intention and adoption — as a signal of results or impact. If leading indicators are below predicted success thresholds, adjustments can be made to realize desired results. This reduces risks associated with the investment and takes diversity measurement applications well beyond “faith-based” assumptions to “fact-based and evidence-based” diversity and inclusion outcomes.

Anyone responsible for diversity and inclusion initiatives is also responsible for evaluation. The amount of evaluation you provide depends on the types of decisions your organization must make and the information needed to make those decisions. For instance, there are seven levels you can use in the Hubbard Diversity Return on Investment Evaluation Methodology to demonstrate initiatives’ performance impact:

  • Level 0: Business and performance needs analysis
  • Level 1: Reaction, satisfaction and planned actions
  • Level 2: Learning
  • Level 3: Application and behavioral transfer
  • Level 4: Business impact
  • Level 5: Diversity Return on Investment, benefit to cost ratio
  • Level 6: Intangibles

They provide a comprehensive “chain of impact” to demonstrate the specific diversity and inclusion affect link.

So, how do your diversity and inclusion efforts measure up? What are you doing to show that the diversity and inclusion initiatives you deliver add “evidence-based” and “fact-based” value to the organization and its bottom line in real measurable terms?

Sharing your ideas can provide a “teachable moment” for others. What challenges do you face? Let me hear from you, and I will provide a few recommendations. I look forward to hearing from you.

Dr. Ed Hubbard is the President & CEO of Hubbard & Hubbard, Inc., and recognized as the Founder of the Diversity Measurement and Diversity ROI Analytics fields. Dr. Hubbard is an expert in Organizational Behavior, Organizational Analysis, Applied Performance Improvement and Measurement Strategies, Strategic Planning, Diversity Measurement, and Organizational Change Methodologies. He holds a Practitioner Certification and Master Practitioner Certification in Neurolinguistic Programming (NLP), a Neuro-science discipline. Dr. Hubbard earned Bachelors and Masters Degrees from Ohio State University and earned a Ph.D. with Honors in Business Administration.

For more information about the Hubbard Diversity ROI Institute, log onto http://www.hubbardnhubbardinc.com/certification-workshps.html

Dr. Hubbard can be reached at edhub@aol.com.

 

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