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Category Archives: Diversity ROI Skills and Techniques

This category highlights Diversity ROI Skills and Techniques which can be used by all Diversity Practitioners and Professionals to demonstrate Diversity’s ROI impact on the organization’s bottom-line

Guidelines for Measuring the ROI Impact of Inclusion

ROI Graphic 4

“Inclusion” is Big Business

Workforce Diversity and Inclusion is a concept that appears to have taken hold in companies worldwide. According to a survey conducted by SHRM, 55% of respondents say their organizations “strongly promote” Diversity and Inclusion. However, the interpretations of the phrase and the methods used to achieve and measure this goal vary widely among companies and regions. In companies with the most successful Diversity programs, the impetus and tone emanate from the most senior ranks of the organization. According to SHRM, sixty percent of respondents to the survey say the main advocates for Diversity and Inclusion in their organizations are the CEO and top management, followed by heads of HR (42%). Most companies recognize that “Diversity” and “Inclusion” are closely linked; Inclusion helps to ensure that employees from diverse backgrounds are able to contribute, remain with the company and flourish (SHRM Report: Global Diversity and Inclusion: Perceptions, Practices and Attitudes).

These facts notwithstanding, how can a diversity executive report to the CEO or Board of Directors that the organization is now 5 percent more inclusive than the year before and quantify what effect that statement has on the bottom line? In the absence of direct measures, it’s often necessary to rely on indirect observations to determine if goals are being achieved. Key Performance Indicators (KPI’s) such as engagement scores, retention rates, productivity measures and diversity representation at various tiers often must be combined as an “Index value” to create a broader picture of an inclusion strategy’s impact on the overall organizational culture.

ROI Graphic 3

Creating Evidence-based Measures

I recommend that in order to effectively create an “evidence-based” measure of “inclusion”, a multi-faceted approach must be used. There are several prerequisites:

To measure inclusion, diversity executives should:

1) Review their current definition of Inclusion and drivers behind the organization’s inclusion initiative to make sure they describe the desired cultural effect as well as the employee behaviors expected to achieve the desired results. Establishing a behaviorally-specific definition for inclusion that spells out measurable elements and is understood across the entire organization can maintain focus and help develop analytics that influence organizational performance.

2) Align the organization’s inclusion definition and drivers with strategic organizational goals. If the organization needs to improve its talent pipeline, weave inclusion initiatives into existing talent management functions. If increasing innovation is critical, promote inclusion programs that will facilitate knowledge sharing. Both of these goals may require raising awareness of the employment brand by competing to become an employer of choice.

3) As organizational goals help to develop drivers, and drivers help to develop programs to support those goals, be sure to evaluate the business and Diversity ROI impact to ensure programs are having an effect. Select or develop metrics that circle back to align with the original drivers. By carefully articulating outcomes, organizations can define measures that assess the impact of their inclusion strategy. For a concept as ephemeral as inclusion, multiple qualitative, quantitative, effectiveness and efficiency metrics may be required to imply success or indicate the need for a course change.

Sample Inclusion Items

Here are a few sample items from one of our Hubbard & Hubbard, Inc. Inclusion surveys that reflect these ideas:
1. I can be fully myself around here without having to compromise or hide any part of who I am.
2. In a group, I am able to be fully part of the whole while retaining a sense of authenticity and uniqueness which reflects who I am.
3. Different views and opinions are valued in decision-making.
4. It is generally safe to say what you think.
5. I feel safe, trusted, accepted, respected, supported, valued, fulfilled, engaged, and can be authentic in my working environment

Use Even-numbered Response Scales

I have found it helpful to use an “even numbered” response scale that encourages the respondent to determine if this item ‘is’ or ‘is not’ true for them rather than somewhere in the middle. You can use “even numbered” scales such as:

  1. Strongly Disagree
  2. Disagree
  3. Mildly Disagree
  4. Mildly Agree
  5. Agree
  6. Strongly Agree

This also guides you towards a more definitive action plan that is firmly rooted in addressing specific problems and opportunities.

Inclusion Definitions Must be Behaviorally Specific

In order to measure the ROI of Inclusion, the definition of Inclusion that is used must be crafted in behaviorally-specific terms that are measurable. This aligns your work to show the “chain-of-impact” that links the change to your initiative’s outcomes. Here are a few examples of Inclusion definitions that imply a measurement connection:

I define Inclusiveness this way… (I have separated elements of the definition such that you can see some of the measurable components):

  • “Inclusiveness is the act or process of utilizing the information, tools, skills, insights, and other talents that each individual has to offer which results in the measurable, mutual benefit (and gain) of everyone.
  • It also includes providing everyone with opportunities to contribute their thoughts, ideas, and concerns.
  • Inclusiveness results in people feeling valued and respected.”

Wikipedia defines Inclusion as: “practice of insuring that people in organizations feel they belong”. Thus, in order to measure the impact of inclusion you must begin by defining what it means to “belong” in behaviorally specific terms.

Miller and Katz (2002) present a common definition of an inclusive value system where they say, “Inclusion is a sense of belonging: feeling respected, valued for who you are; feeling a level of supportive energy and commitment from others so that you can do your best work.”  (Book: “The Inclusion Breakthrough” by Frederick Miller and Dr. Judith Katz)

Another definition from Wikipedia discusses Inclusion, when applied, it creates

  • A shift in organization culture. The process of inclusion engages each individual and makes ‘people feeling valued’ essential to the success of the organization.
  • Individuals function at full capacity, feel more valued, and included in the organization’s mission. This culture shift creates higher performing organizations where motivation and morale soar.

From a measurement point of view, using this Wikipedia definition would require metrics and processes that track and evaluate shifts in organizational culture, engagement, individual perceptions of value, levels of individual functioning, etc.

These few examples highlight some of the requirement to accurately start to report the ROI of Inclusion. It will require strict adherence to a Diversity ROI measurement process and framework that demonstrates a “chain-of-impact” or “chain-of-evidence” that clearly shows that the Inclusion intervention or initiative was a major source of the calculated ROI impact.

In future Blogs, I will further discuss measuring the ROI impact of Inclusion. In addition; let me know what you think about this approach. If you have other guidelines that have been beneficial in your experience, tell us. We will share your examples such that others can learn and grow.

Dr. Ed Hubbard is an expert in Organizational Behavior, Organizational Analysis, Applied Performance Improvement and Measurement Strategies, Strategic Planning, Diversity Measurement, and Organizational Change Methodologies. Dr. Hubbard earned Bachelors and Masters Degrees from The Ohio State University and earned a Ph.D. with Honors in Business Administration. Dr. Hubbard is available for presentations, conferences, training, consulting and can be reached at edhub@aol.com or 707-481-2268.

 

 

 

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Diversity Process Consulting or Intervention Consulting: How Do We Demonstrate Our Unique Value?

pexels-photo-95916.jpegBuilding an Effective Diversity Measurement System

The creation of an effective Diversity measurement system and “best” practices cannot be a mechanical modeling exercise. It must be preceded by an inspection and utilization of basic business principles. It must focus on organizational and departmental strategic thinking as well as an assessment of the desired quality of work-life. Developing the actual measures is easy compared to the amount of time that should be spent thinking about what is important to the organization’s strategic business objectives and the expectations of the diversity measurement process.

Key steps to building an effective measurement system

Creating an effective Diversity measurement system and process that embodies these concepts involves at least five critical steps:

  • Review the Strategic Business Plan for Needs
  • Formulate Research Questions
  • Design the Study Methodology
  • Collect and Analyze Data
  • Implement Solutions and Communicate Results

Each step in the process logically builds on the previous step which generates an evidenced-based framework that creates a “Best Practice” method for proving Diversity’s link to performance.

Dr H Book Tower Graphic for Proposals

With proper training and skill/competency development, one of the more critical roles a Diversity Practitioner and Professional can perform is that of a Diversity Performance Consultant/Technologisttm. This role in the Hubbard & Hubbard, Inc. Diversity Discipline Framework requires the Practitioner to design, develop and deliver or evaluate diversity performance solutions; maintain and apply an in-depth working knowledge in any one or more of the diversity performance improvement areas of expertise; take a disciplined approach to assessing individual and organizational effectiveness in the midst of collective mixtures of differences and similarities, diagnose causes of diversity tensions from differences, similarities and complexities, and recommend a set of interventions; as well as design solutions to improve diverse workforce performance and/or solutions to improve the organization’s performance.

I have always viewed Diversity ROI & Inclusion methods as “performance improvement technologies”. I am also a strong supporter of participatory approaches to performance improvement, from involving stakeholders in the identification of needs and their causal factors to determining solution alternatives, selecting the solution, planning and managing the change, and monitoring and evaluating the change. This active stakeholder participation is critical to the sustainable success of any Diversity & Inclusion (D&I) intervention, not only because we gain real buy-in from stakeholders, but also because part of what we do as rigorous Practitioners ultimately, is to change the way people think about and approach D&I performance solutions in organizations.

Diversity Intervention Consulting is primarily focused on a specific transaction, the provision of an intervention (e.g., Cultural Competency Skills for Leaders training), whether it is a specific process or product. In this case, the performance consultant, as “expert,” carries the bulk of the responsibility for delivering the intervention, but does not typically stick around for the consequences of such interventions. Partially rooted in the sociological tradition in new systems theory which views organizations as self-organizing social systems, Performance/Process Consulting provides a different approach. With a Performance/Process Consulting approach, however, the Diversity Performance Consultant/Technologisttm and the client are equal partners who share the responsibility for the desired change. There is a reduced chance of falling into fads or trendy solutions that may be insufficient or not fully applicable to the organizational realities, because both the Diversity Performance Consultant/Technologisttm and the client are partners in the change and its consequences. Both have a stake in the success of the intervention, and both learn lessons along the way. Moreover, they involve others in the organization, so that these lessons learned benefit more than just a few.

I am convinced that the real value of our work is much more than a roster of interventions (no matter how evidenced-based); rather, it is the paradigm shift that we contribute to in the course of our involvement with our stakeholders. Our ultimate value is in the sustainable and positive change of the organization’s performance system that is now able to operate at its goal or outcome level. While neither resource was utilized exclusively, it is certainly worthwhile for us to reflect on our own approach and determine whether we consciously or subconsciously assessed the situation to determine what balance or blend would be of most value for the given situation.

It is always helpful to review our Performance Consulting approach because of the wide range of relevant topics and ROI-based metrics that fit under the performance improvement umbrella. I am fond of saying that “focusing on tactics without a strategic framework is like learning to run faster in the wrong direction”. You cannot make a strategic contribution without a tight alignment and linkage to the business objectives and success metrics of the organization. If you want to have your interventions resonate with the C-suite and line managers of the organization, they must be based in the real bottom-line needs that drive organizational performance. Whether the organizational initiative is diversity training to teach cultural competency skills, selling products to emerging market clientele, innovating new products and services for a global market, delivering healthcare services, serving governmental constituents, meeting a wide range of student needs, improving the customer service experience, etc., “strategically aligned” diversity performance strategies have the best chance at success and sustainability.

Let’s take a look at an example that helps to clarify this relationship. First, among the organization’s strategic objectives, you find a series of crucial performance areas. One of these areas focuses on an objective of improved customer service. Based upon the importance of this area to the business, the diversity organization has created a corresponding strategic objective to analyze and improve service across all demographic market segments. In the second step, you determine that for service to be improved in these targeted markets, the critical success factor areas must include “improved communication”, “culturally appropriate interactions”, quick access, increased satisfaction, and accurate information. Finally, these critical success factor areas lead you to select diversity performance measures and indicators that support each critical success factor area such as the “percentage of multilingual service transactions delivered”, “number of rings to answer” when a customer calls the organization, “percentage of favorable response on your diverse customer satisfaction survey”, etc. This type of alignment drives improved performance and gains top management support.

Both Diversity Process Consulting and Diversity Intervention Consulting can offer strategic value to the organization. The key is how well each Performance Consulting method meets critical needs of the business to drive its goals, outcomes and success. At what value level would stakeholders rate your internal Performance Consulting methods today? What do you need to do differently to enhance your role as a value-added business partner? Let me know what you think. Want to learn more?? Contact me at edhub@aol.com.

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 The Ohio State University and earned a Ph.D. with Honors in Business Administration.

He can be reached at edhub@aol.com.

 

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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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The Power of Diversity ROI Measurement Alignment : Part 2

In part one; I discussed four of nine steps to improve the alignment of diversity metrics with the bottom line of the business. In this segment (Part 2), I will outline the remaining steps of the methodology which cover a wide range of actions and metrics to build practical approaches to verify the strategic business needs of the organization.

Let’s continue examining the remaining alignment steps…

Step 5: Develop Interventions that are Practical, How-To Approaches

A lot of organizations will say they have diversity measures in place. However, when you actually check them, you see that they are activity counts. They’ll look around and say they’ve established a council or have had a particular celebration on a particular day. And while those are important, senior leaders don’t always see these things as bottom-line outcomes. They’re not looking at how the Diversity process increased market penetrations in key ethnic markets or how the Diversity process has added ‘X’ number of customers. Progressive companies show how they have utilized diversity and inclusion technologies to integrate Diversity process into productivity improvement issues, product quality issues and innovation challenges.

To have credibility, Diversity interventions must be developed in a way that seamlessly integrate with key organizational priorities at critical levels and are designed in a way that employees can use them right away to improve the organization’s functioning. To accomplish this, it may require having the flexibility to move away from pure “academic images” of Diversity theory and venture into the realm of the “live-lab” of real organizational problems and challenges. It means working “hand-in-hand” with line managers as strategic business partners to solve some of the messy problems of performance improvement and change. As Diversity professionals, we must ask ourselves…who am I developing this intervention for…to go along with the latest fad that other organization’s are using or for my internal (or external) clients to help solve their real business challenges? These challenges must be verified with an effective Business Needs Analysis in order to show the benefits and ROI impact.

It is important to stay clear of theories and fads that are not strategically tied to producing organization-enhancing results. Sure, some of them can help create “out-of-the-box” thinking that may help produce new, practical approaches that could generate value. However, these ideas need to be well researched and tested for their practical strategic value and potential impact.

It is also critical to limit “Diversity and Inclusion speak” when working with internal clients and sponsors. As a Diversity professional, we should know the nuances of Diversity and Inclusion processes; however your audience does not have to be masters of it. It may take a while to gain credibility from their vantage point. This credibility will come faster when you are able to demonstrate specific, measurable results in quantitative and qualitative terms. The results and outcomes of the Diversity initiatives must show how the results are tied to the organization’s bottom-line impact. The results you obtain will improve your level of credibility, commitment and involvement, not the merits of theories and fads alone.

Step 6: Get a Handle on Diversity R.O.I. (DROI®)

DROI® is a registered trademark of Hubbard & Hubbard, Inc. All rights reserved.

It is absolutely essential to master the technologies of Diversity ROI (DROI®) analytics and measurement processes for all of the interventions you provide. It is critical to identify interventions, programs, and activities that have a measurable impact on organizational performance.

I have always thought of Diversity as a professional discipline and field of study. However, if it is to be taken seriously as a discipline and field of study, it must possess a structure, framework and critical components that are consistent with other serious disciplines. For example, if we examine the disciplines of Marketing, Sales Operations, and the like, we would find they all have well-defined competencies, proven theories, and applied sciences that under gird their application. These theories and sciences provide a recognized structure, strategy and a set of measurable standards to guide those who work in the field.

If we examine the disciplines that include doctors, engineers, lawyers, and others, they must be certified to practice their craft. There are also certifications for human resource professionals such as the PHR and SPHR certifications offered by the Society for Human Resource Management (SHRM) for Human Resource Professionals, the HPI certification for Trainers by the American Society for Training and Development (ASTD), or the CPT certification for Organization Development professionals offered by the International Society for Performance Improvement (ISPI).

The Hubbard Diversity Measurement and Productivity (HDM&P) Institute offers seven diversity certifications based in its Diversity ROI® and Diversity ROI Analytics® methodology:

  • Certified Diversity ROI Professional® (CDRP)
  • Certified Diversity Trainer® (CDT)
  • Certified Diversity Advisor® (CDA)
  • Certified Diversity Performance Consultant® (CDPC)
  • Certified Diversity Business Partner® (CDBP)
  • Certified Diversity Strategist® (CDS)
  • Certified Diversity Intervention Specialist® (CDIS)

These fields of study contain specific, identifiable roles that are performed, areas of expertise that allow a practitioner to build specialized concentrations of skills and knowledge within the discipline, detailed outputs produced by these roles, as well as a model of measurable competencies that define specific behaviors that enable the work to be completed with a high degree of accuracy and effectiveness.

As a professional discipline, Diversity ROI practices must align with key objectives and outcomes to operate with similar standards built on a solid framework of both concept and science. These practices must be delivered through the work of competent, credible Diversity professionals using clear standards of excellence linked to business performance. Using our talents and skills, based upon a competency-rich Diversity Discipline Framework™, Diversity professionals will be able to integrate the ideas underlying Diversity and Inclusion with specific measurement strategies and organizational systems theory to create a Diversity-enriched climate that utilizes diverse resources more effectively. Getting a handle on ROI means identifying units of measure for the interventions and activities that have a measurable impact on performance. We must consistently apply measurement sciences, track our interventions, and publish them as Diversity ROI studies such that they can be utilized as “best practices”.

Sample measures which support a Diversity ROI measurement alignment strategy include covering key Diversity Scorecard perspectives such as:

Workforce Profile Perspective

  • Diversity Hit Rate
  • #/ % Minorities as Officials and Managers
  • #/% Diversity Survival and Loss Rate
  • #/% Turnover by Length of Service

Workplace Climate and Culture Profile Perspective

  • % Favorable Ratings on Cultural Audit Demographic Group
  • “Employer of Choice” Ratings versus Top 5- 10 Competitors
  • Retention Rates of Critical Human Capital
  • # and Type of Policies and Procedures Assessed for Diverse Workforce Impact

It is important to design evaluations and utilize metrics that are practical and reflect a systemic analysis. For example, use before and after measures which examine Diversity intervention results compared to key measures which are already established and utilized in the organization.

It is also imperative that you are cautious and careful with the procedure to demonstrate how you isolated the Diversity ROI value from all other possible interventions (that could have contributed to the organizational benefit).  Be careful what you take credit for. In a Diversity ROI study, it is important that you only list those outcomes you can control which demonstrate a “chain-of-impact” to the outcome. Diversity intervention outputs are “inputs” that fuel contributions to line results. There are usually many intervening variable in the outcome production process. Isolation techniques must include utilizing scientific processes such as control groups, time-series analysis, forecast estimates, etc., to attribute Diversity’s contribution to specific business outcomes and benefits (separate and apart from other contributors).

Step 7: Make Some “Hard-Nose” Decisions About What is Needed

It is essential to conduct a comprehensive Business Assessment or “Needs Analysis” to determine what interventions are necessary to meet the intent of the aligned business objectives.  For example, when evaluating an organizational challenge, a practitioner may be partial to a favorite diversity intervention regardless of the problem or need. It is crucial that a scientific approach is taken where effective data collection helps determine the appropriate response, not what the practitioner favors.  Performing a comprehensive Needs Analysis is the cornerstone of implementing a solid, credible performance improvement process. It helps practitioners make “hard-nosed” decisions and provides an appropriate justification for either developing or not developing a diversity intervention.  We must conduct a needs analysis, no matter how abbreviated, before any intervention development takes place.

If a Diversity Training intervention is required, for example, the objectives of the Needs Analysis are to:

  • Describe the exact nature of a performance discrepancy
  • Determine the cause(s) of the discrepancy
  • Recommend the appropriate solution(s)
  • Describe the learner population

In general, Needs Analysis consists of the following steps.

  • Step 1: Identify and describe the performance discrepancies.
  • Step 2: Determine the causes of the discrepancies.
  • Step 3: Identify those performance discrepancies that are based on lack of skill or knowledge. Then identify the skills and knowledge needed that is related to diversity and diversity competence.
  • Step 4: Determine whether diversity training or another intervention is a viable solution.
  • Step 5: Recommend solutions.
  • Step 6: Describe the performer’s and organization’s role in behaviorally specific terms that relate to diversity excellence and performance.

How Are Diversity Training Analysis and Evaluation Linked to Diversity Measurement Alignment?

A needs analysis establishes the criteria for measuring the success of training after its completion. A thorough needs analysis should answer the question:

“What good will training do?”

A thorough Diversity ROI training evaluation will answer the question:

“What good did training do and what was the Return on Investment (DROI)?”

An effective Diversity ROI training evaluation cannot be conducted unless a thorough needs analysis has been completed. We cannot determine what was accomplished by a Diversity training intervention or program unless we have first defined what the program was intended to accomplish. The Diversity training needs analysis provides baseline measures against which to judge our Diversity training efforts and will help us make the hard-nosed decisions about what is the best way to meet our internal/external client’s need.

Step 8: Get Away From a Program Orientation

Diversity is not a program; it is a process of systemic organizational change. Programs have a beginning and an end. However, people will never be finished with their differences. Therefore Diversity interventions and the metrics that support them must reflect a range that supports the systems and processes that drive real organizational performance.  The context for diversity performance is the organization’s business and its objectives. To be relevant and aligned, it is critical to think in terms of the business, its goals, objectives and its performance needs. It requires Diversity practitioners connect to and work in concert with all levels of the organization.

It is reported that many top and senior executives truly support their Diversity organizations and process, but feel they should play a stronger strategic role in the growth and development of the organization. They expect Diversity practitioners to help increase productivity and provide solutions that generate a stronger competitive edge. In effect, both top and line managers are seeking Diversity professionals who can function as “strategic business partners” to solve real business problems which have a bottom-line impact on the organization’s day-to-day and strategic priorities. To successfully align and link Diversity strategies with the organization’s strategic business plan, you must actively pursue top and line managers regarding their specific business problems and speak their language. For example, if we are working with the Finance department, we must be able to talk about their problems and potential solutions using Diversity in financial terms, impacts and consequences. If the problem is focused in the operations area, we must talk in operational terms, etc.

Step 9: Stick With It!

Developing a Diversity ROI measurement capability is a “skill”. And like any skill we must learn what it is, understand its applications, use it, study the feedback from its use and refine the skill until we build a level of competency. This is an expectation for anyone that offers themselves up as an “expert” in a particular discipline or field of study. We expect doctors, engineers, social scientists, technicians, etc., to have mastered their craft in order to trust the solutions and alternatives they suggest. The same is true for Diversity professionals. We must hold ourselves to a high standard whether or not our C-Suite executives and others ask for it.

A critical element of meeting that standard is a strategic alignment with the strategy, structures and systems that drive the organization’s performance. It is imperative to take advantage of learning and listening opportunities that broaden our understanding, build Diversity ROI capability as well as business acumen.

It’s not easy. It will take a lot of work and a heavy persistence for excellence at your craft. It requires that we possess an internal standard that says we do not accept being mediocre at our craft. Developing this expertise won’t happen overnight or without setbacks and frustrations, but it can be done and is worth the struggle. This means that as Diversity professionals, we must develop a “strategic alignment mindset” that places our Diversity ROI measurement efforts on par with any discipline that drives business results and success!

 

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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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Diversity Training Pros Must Get to Know ADDIE

de_diversitybythenumbers_blogDEC_680x300Why should we evaluate diversity training? One primary reason is to determine if the benefits derived from the training program justify the costs. Some other reasons could be:
  • To determine how well the diversity training initiative met participants’ needs and to what extent the participants mastered the content.
  • To assess how much of the diversity training content, including newly acquired knowledge and skills, transferred to on-the-job behaviors.
  • To determine whether the results of the diversity training contributed to the achievement of organization’s goals.
  • To determine the initiative’s Diversity Return on Investment.
The ISD Process
ISD is a systems approach to analyze, design, develop, implement and evaluate any type of training. Each phase of the ISD process provides information that feeds directly into the next, as each phase must be completed before moving on to the next. If a phase is skipped, the process is not ISD.
Professionally created diversity training follows this five phased process: analysis, design, development, implementation and evaluation — commonly referred to as the “ADDIE model.” In ADDIE, analysis is the input for the instructional system; design, development and evaluation are the process; implementation is the output. These elements overlap somewhat, depending on the project, and because the instructional system is dynamic, there will be some sharing of duties.
Phase 1: Analysis
The analytical phase is sometimes referred to as a “front-end analysis,” “needs assessment” or “needs analysis.” An effective needs analysis answers the following questions:
  • What is the problem?
  • Is diversity training the answer to the problem?
  • What knowledge and skills should be included in the diversity training course?
  • Who needs to be trained?
Analysis is the data-gathering element of diversity training design. Here diversity instructional designers assemble all the information they can possibly gather about the strategic business problem or opportunity before they consider anything else.
Phase 2: Design
After the problems have been defined and trainees and course outcomes have been determined, it is time to begin the design phase. This phase develops a training blueprint that includes:
  • Learning objectives
  • Content outlines
  • Course structure
  • Training methods and media
Design is the blueprinting stage of instructional systems during which diversity instructional designers create the project blueprint with all the specifications necessary to complete it. During this stage, diversity instructional designers write the objectives, construct course content, and complete the design plan.
Phase 3: Development
The next phase of the ISD process is development of the diversity training course. The steps of this phase are:
  • Develop a draft set of training materials.
  • Pilot test the training materials with the target audience, and make necessary revisions.
  • Finalize training materials.
Materials production and pilot testing are the hallmarks of development. Everything from lecture notes to virtual reality is brought from design to deliverable. Before diversity instructional designers move from development to implementation, it is wise for them to do pilot testing to ensure deliverables do not need revision. The pilot testing process allows organizations to implement any necessary changes before expenses associated with materials development are realized. Pilot testing also helps designers feel confident what they have designed works.
Phase 4: Implementation
The implementation phase involves conducting the diversity training program and completing any related follow-up activities to ensure learning transfer on the job. At implementation, the design plan meets the leaner, and content is delivered. The evaluation process most diversity designers and learners are familiar with takes place in this element. Diversity training evaluation is used to gauge the degree to which learners meet objectives and facilitators or technologies deliver expected outcomes.
Phase 5: Evaluation
The final phase of the ISD process is to determine whether diversity training was successful. It will answer the following questions:
  • What is diversity training evaluation?
  • Why evaluate diversity training?
  • What are diversity training evaluation levels?
  • How is the diversity training analysis and diversity evaluation linked?
  • How is an effective diversity training evaluation conducted?
Evaluation doesn’t deserve to be listed last in the ADDIE model because it takes place in every element and surrounds the diversity instructional design process. Evaluation is a constant guard at the gate of failure.
The advantages of using an instructional system are numerous, the most important being the ability to design diversity projects quickly and efficiently. Nothing is left to chance or ignored when a diversity instructional designer stays within the ADDIE framework or other ISD models. It is my contention that an effective ROI-based diversity training evaluation cannot be completed unless the training design was built using ADDIE and a behaviorally specific competency model built on correctly structured objectives.
Do you know and use ADDIE?
 

“Evaluation, Reliability, and Validity: How Credible are Your Diversity Initiative Assessments of Progress and Results?”

Performance MeasurementEvaluation is a task that every Diversity Practitioner will face at one time or another. No matter what your role such as Trainer, Consultant, Chief Diversity Officer (CDO), Council Member, ERG/BRG Leader, etc., conducting an evaluation to assess key aspects of your Diversity and Inclusion initiatives is inevitable.

Two Definitions of Evaluation

People do not always agree on one definition of evaluation. Following are statements that reflect two different definitions:

  • “Evaluation is the systematic process of collecting and analyzing data in order to determine whether and to what degree objectives have been or are being achieved.”
  • “Evaluation is the systematic process of collecting and analyzing data in order to make a decision.”

Notice that the first ten words in each of the definitions are the same. However, the reasons-the “Why!”-for collecting and analyzing the data reflect a notable difference in the philosophies behind each definition. The first reflects a philosophy that as an evaluator, you are interested in knowing only if something worked, if it was effective in doing what it was supposed to do. The second statement reflects the philosophy that evaluation makes claims on the value of something in relation to the overall operation of a Diversity intervention, project, or event. Many experts agree that an evaluation should not only assess program results but also identify ways to improve the program being evaluated. A Diversity program or initiative may be effective but of limited value to the client or sponsor. You can imagine, however, using an evaluation to make a decision (the second definition) even if a program has reached its objectives (the first definition).

For some, endorsing Diversity Evaluation is a lot like endorsing regular visits to the dentist. People are quick to endorse both activities, but when it comes to doing either one, many Diversity Practitioners are very uncomfortable.

Evaluation: An Essential Element of Success

Evaluation is an absolutely essential ingredient when you are attempting to close performance gaps or improve performance. It is the only way to determine the connections between performance gaps, improvement programs, and cost-effectiveness. Evaluation is one of the most cost-effective activities in diversity performance improvement, because it is the one activity that, if applied correctly, can ensure success. It is often resisted, however, because of the fear that it could document failure. Evaluation is the process that helps us make decisions about the value of all the activities we have been engaged in and whether they are a worthwhile investment for the organization. Without systematic evaluation we are left with “wishful thinking” or self-service impressions that are often wrong and sometimes dangerous.

All evaluation studies must satisfy two criteria: reliability and validity. Establishing these criteria up front will help you communicate your expectations to the C-Suite and any vendors who deliver programs and assist in your Diversity initiatives. Reliability, the simpler of the two, requires all evaluation methods give the same results each time we measure. This protects you against measures that change constantly and produce different results every time they are used, because of the measuring instrument. Reliability is relatively easy to achieve, yet its importance is often overlooked. To overcome this you must utilize specific Diversity science procedures and instruments for measuring the aspects of Diversity performance and goal achievement that are reflected in the initiative’s objectives, strategies and the organization’s performance gaps. Next, you have to standardize these procedures such that they measure in the same way every time. These activities can be perfectly compatible with the way correctly designed Diversity initiatives are structured and administered.

The second criterion, validity, requires that all evaluations measure exactly and only what it is supposed to be measuring. This criterion is one of the requirements most often violated in Diversity performance and other assessments. For example, if we attempt to measure the amount of knowledge employees gained in a Diversity Competency Training program using a “Reaction” form that asks them how much they learned, the results will indicate how much employees “think” they learned, not how much they “actually” learned. Reaction forms too often report high amounts of learning when little occurred and vice versa (Clark, 1982). Consequently, training reaction evaluation could be reliable but not valid in these cases, because the actual results were the opposite of what the invalid instrument reliably reported! If the instrument reported the same invalid result each time it was used, it is still reliable—which is why we need both reliability and validity for all evaluation activities.

An example of a valid measurement of learning would be a Diversity competency problem-solving exercise or memory test (provided they represented the knowledge and skills the participants learned during the training. The more you make use of Diversity sciences and research evidence about the event being measured, the better your chances of for validity. Performance evaluation systems such as the Hubbard 7-Level Evaluation Methodology, integrates these approaches in the process.

Conducting a comprehensive Diversity Evaluation is the only true way to know if Diversity and inclusion programs or initiatives are delivering the outcome results expected by key stakeholders. It is essential that Diversity Practitioners master critical Diversity and Inclusion evaluation methods using technologies that are rooted in Diversity ROI® science. Why? Because the perceived value and credibility of what we do to be seen as a true Business Partner and Professional depends on it!

 

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