"Essential rightness" at A.T. Kearney
A plaque hangs near the entrance of every A.T. Kearney office that reads: "Our success as consultants will depend upon the essential rightness of what we do." Diversity, says Paul Laudicina, managing officer and chairman of the board for A.T. Kearney, is one of those essential rightness issues for the firm. "We're committed to diversity because first and foremost, it's the right thing to do. One of the things we're doing right now is resurfacing the principles on which Tom Kearney built the firm," Laudicina says. "It's nice to be recognized for our diversity efforts, but we still have a long way to go before we meet the requirements that Tom Kearney set for us many years ago. He was talking about diversity long before it was a buzzword."
For Tom Kearney, diversity was a business driver, not just a nice idea. "Tom Kearney believed then, as we do today, that the quality of the insight we provide clients is likely to be enhanced if we have the differing perspectives that come from people with very different backgrounds and experiences," Laudicina says. "It's also the smart thing to do—consulting firms are built on people propositions, and we're moving into an era of fewer people available to do the tasks at hand."
Laudicina, along with John Yoshimura, chief operating officer of A.T. Kearney, cite Bureau of Labor Statistics that illustrate the challenges ahead: a shortage of 10 million workers in the short term and 30 million workers over the long haul. "Just the changing demographics alone mean that we're going to have fewer people to do more work," Laudicina says. "That's why what we're doing in terms of diversity is so important."
One of the firm's major diversity initiatives is its multitude of networks, including its African-American, East Asian, South Asian and Hispanic consulting networks, as well as the Gay, Lesbian, Bisexual and Transgender Alliance. The firm also has a Women's Leadership Network. These networks offer employees opportunities for professional development, as well as help raise awareness of diversity issues, Yoshimura says. He says the networks are very active and very important to the overall culture of the firm. In addition, A.T. Kearney has an aggressive coaching and mentoring initiative around diversity "to create a sense of community and reinforce our collaborative culture," Yoshimura says. "Within each of our diversity networks, a coach is assigned up to the principal level to coach and counsel employees on specific issues related to their network."
Those networks are also important during the recruiting process to "show potential candidates that these are more than just programs on paper," Yoshimura says. "A.T. Kearney actually lives diversity day in and day out." Part of living it day in and day out "is recognizing diversity as one of the firm's key business objectives," Yoshimura says. "From a management standpoint, A.T. Kearney practice leaders understand the overall importance of a diverse population and are responsible for making sure they are developing a diverse leadership."
Apparently, that message is getting through. The percentage of non-white employees at manager level or above at the firm is 37 percent, and has been growing each year. In addition, women make up about one-third of all managers. Those types of "paradigm shifts" are important to clients, Laudicina says. "Increasingly, we're seeing that a diverse workforce is a client requirement. They are confronting the same kinds of challenges and are more confident with a company that practices and rewards inclusiveness," Laudicina says. "They want our teams to reflect the same kinds on inclusiveness that they embrace."
One recent example, Laudicina says, was when the firm was developing new sales channels for a financial services client. "We began disaggregating the different consumer segments in the U.S. and found that different ethnic groups perhaps rely on different communications and sales channels," Laudicina says. "That's just one example, but, in that case, having people from various ethnic groups and backgrounds around the table worked for the benefit of the client."
All things inclusive at Deloitte Consulting
Deloitte & Touche USA is certainly no stranger to industry recognition. In just the past two years, the company has been ranked as one of Fortune's Best Company's to Work For, Working Mother's Best Companies for Multicultural Women, DiversityInc magazine's Top 50 Companies for Diversity, The Advocate's Companies that Embrace Equality list and LATINA Style magazine's Best Companies for Latinas. Now, Deloitte Consulting can add Consulting magazine's Excellence in Diversity award to its impressive and ever-growing trophy case.
"We're very proud of what we're doing, but this is a journey and we still have a long way to go," says Doug Lattner, chairman and CEO of Deloitte Consulting. "We are passionate about diversity because it's the right thing to do. We are also very committed to it because, quite frankly, diversity is good business."
Deloitte's clients, he says, do nothing short of demand that the firm is culturally diverse. "We have to be able to serve clients as well in Chicago as we do in Munich, Milan or Singapore." The other side of the coin, he says, is the continuing war for talent in the industry. "Soon, we'll have half-a-million Baby Boomers retiring every year and only about 250,000 graduating from undergraduate and graduate programs in the United States," Lattner says. "The biggest asset in consulting is our people, and clearly we need to embrace a diverse workforce if we are going to succeed."
Of course, Deloitte Consulting is already well ahead of the diversity curve. Almost half—43 percent—of the firm's employees classify themselves as non-white, and 31 percent of its employees are at manager level or above. In addition, one-third of all managers are women.
"When we embarked on this journey, we decided that we weren't just going talk about it. It's my goal to make diversity so transparent that it's just a natural way of life here," Lattner says. "You can't just take someone in human resources and say 'OK, now you're in charge of diversity.' You have to live it and breathe it everyday. Everyone in the firm has to embrace it; all of the leadership has to know the value of diversity."
One person who knows its value is Tonie Leatherberry, a partner, managing director and chairperson of the firm's Diversity and Inclusion Committee. In her role, Leatherberry spends a great deal of time forging strategic relationships with organizations such as the National Black MBA Association, the National Society of Hispanic MBAs, League of Black Women, Hispanic Scholarship Fund and the Executive Leadership Council.
"You have to get in front of the pipeline. It's not just about showing up at the right conferences, but it's understanding where [the next generation] is going to be before they start with an MBA program," Leatherberry says. "We're trying to build and foster these relationships."
And the success continues once recruits join Deloitte. Since Lattner took over four years ago, the firm's overall attrition rate has dropped from 23 percent to about 16 percent, and is even lower for diverse employees. "We want to make sure our diverse talent stays with us, and we're doing everything we can to make sure Deloitte is the type of firm where diverse talent wants to work," Lattner says.
And Leatherberry, no doubt, is contributing to that success. She recently launched a road show where she meets with African-American, Hispanic and Latino senior managers within Deloitte to discuss their value proposition for becoming a principal or director with the firm. She also launched a series called "Diversifying the American Board" to educate women and minorities about how to become members of a board of directors.
"I'm trying to make this a wake-up call for the industry. I still think the profession lags behind in terms of its diversity efforts," Leatherberry says. "Now it's more important than ever. Now the boardroom and the C-suite are changing, and consulting must reflect that."
KPMG has the numbers on its side
KPMG has made diversity a formal commitment—and the results speak to this multi-front effort. "I'd say it's a layered strategy, if you will," says Kathy Hopinkah-Hannan, Midwest Area managing partner, tax. Hannan also is the co-chair of the KPMG Diversity Advisory Board and the chair of the Women's Advisory Board.
That strategy, Hopinkah-Hannan says, consists of the firm's many diversity networks, which encourage a broad range of employees to meet and mentor each other as well as encourage each other's success. Traditional networks, such as KNOW (KPMG's Network of Women) and NBMBAA (National Black MBA Association) work to unite the firm's gender and racial minorities, but the firm has some other innovative networks such as Out & Equal for gay and lesbian employees and International Circle for those considering an overseas assignment. The firm is also broadening its idea of diversity, as it has launched a network for employees who are disabled or have a family member who is, and is looking at programs focusing on Millennial employees. "The Millenials are just something Baby Boomers and Gen Xers and Yers never had to deal with before. That's an element of diversity."
Hopinkah-Hannan says she will continue to look at networks and programs that would be of value to employees, and it's a sentiment echoed by Tim Flynn, chairman of KPMG International. "Our goal as a firm is to continue to create an open and inclusive work environment in which business and personal objectives and growth can be achieved. We are constantly assessing our diversity programs and introducing new ones."
Bruce Pfau, vice chair of human resources, says the strategy truly enhances the firm's culture. "We know from experience that when employees feel comfortable and accepted, they contribute more to the organization," he says. "Our national diversity networks draw on members within KPMG representing all backgrounds to create a more inclusive and supportive culture. In fact, more than a third of our people are involved in at least one of our six national diversity networks, and there are more than 100 local chapters in our offices across the country."
And, Hopinkah-Hannan says, the firm has seen a 30 percent reduction in female turnover since 2003. Last year, the number of minority employees in management roles increased by 20 percent over 2006, significantly outpacing the overall increase in managers at 7 percent. The firm also is keeping an eye on future leaders in the KPMG ranks, and finding those who are taking a leadership role within a network is a key source of that pipeline, she says. The philosophy behind these efforts is that they aren't just good for business, they're good for employees. "You have all these studies that are done about how the more diverse companies are, the more successful they are, [so] there's certainly a business imperative here, but it's really about when you're dynamic, you're able to really to tap so much more value out of the individuals and the organization."
Hopinkah-Hannan herself should know about the success that comes from encouraging diversity, as she herself is a trailblazer in and outside the firm. Not only is the first woman to hold her current position, but she also serves on President Bush's National Advisory Council on Indian Education and in 2006 was appointed to the Advisory Committee of the American Indian Center.
Hopinkah-Hannan says she is proud of the firm's efforts, but more can always be done. "What's a good thing, though, is that we sit here and say, 'That's great. [But] it's not good enough. What more can we do to really move that needle?'"
And KPMG's Future Diversity Leaders Program will bring in the minority employees of tomorrow. The program offers scholarships and internships to high-achieving minority college students. "It's not selling them just on KPMG. It's selling them on the profession," she says. "We know that if we can help the profession overall, we will benefit by being a leader in what we're doing."
Sapient knows the value of diversity
At Sapient, diversity is a byproduct of having employees who believe in the company's Core Values of openness, creativity, client-focused delivery, leadership, relationships and people growth. According to North America President Alan Wexler, "If people are at Sapient for all the right reasons and we're recognizing the fact that they're respecting [our Core Values], then it's not really a question of are we hitting our numbers in terms of diversity. It's more of making sure our people really honor, respect and focus on the right things. And then diversity at that point becomes a very natural part, I believe, of our success."
And that philosophy has certainly worked well for the firm. Nonwhite employees make up 37 percent of the firm's roster, and 28 percent of employees are women. Wexler and Mary Lass Stewart, director of people success, attribute these impressive numbers not only to employees' adherence to Sapient's Core Values, but to firm leadership's adherence to it, as well. According to Wexler, with 360-degree evaluations in place, "It's a self correcting mechanism. It's not just the managers choosing the leaders; it's the people choosing who their leaders are."
Wexler says getting the right people—a diverse mix of consultants who share the same values—starts with the hiring process. Behavioral interviews help narrow down the best candidates. "The most important thing is that they connect with our values. Not that they came from an engineering college. So I think that helps put us in balance even at the start by not looking for specific profiles."
And Wexler says he aims to attract and keep employees that believe in the Core Values, even if that affects the firm's impressive diversity figures. "When people aren't working out, there's always a sensitivity: Could something be seen as not adhering to compliance in terms of diversity? We're going to stand by what we believe in. We're going to do things for the right reasons at all times. It's not about trying to make the numbers. It's about performing, and it's about your relationship to our values and culture as a company that really stand out and drive our decision making."
And firm leadership is part of that relationship. To ensure that the largest qualified pool of employees can find a home at Sapient, the firm emphasizes its flexible work arrangements, says Stewart, which help keep the firm's rather large Indian workforce. "For women in India in particular being able to have family life and a work life, generationally it's new," she says. However, this evolution comes with some special needs, as often these same women have obligations to both their own and their extended families and need to make very personalized work arrangements. "There is a lot of that that happens more there than here. And we really go out of our way to accommodate that from my perspective," says Wexler who says he sees these requests as Sapient's chance to build engagement at the firm. "Each one of those situations is an opportunity to create loyalty and commitment and really take care of people." In response, the Indian press has highlighted Sapient's efforts, spreading the firm's message to potential employees.Stewart says the flexible environment is something that's demonstrated by Sapient leadership, citing the example of Sapient President and CEO Alan Herrick's blog, which talks not only about his work with the firm, but also his son's baseball team. "It's OK within Sapient to talk about having a family, in fact it's encouraged and supported," she says.
The result is a place where Stewart and Wexler are excited to work. "What's amazing to me is how effective and how positive and how nondysfunctional a workplace is when people actually live by the values that so many companies put out there. It's because people actually live them, so it's not that we have them. It's that people actually do the things that one needs to do in order to foster [the values]. The companies that live by their values are few and far between, so if you find one, it's a pretty great experience."
Diversity of thought at The Mpower Group
The Mpower Group is proud of its diversity of culture. However, CEO and President Dalip Raheja says he is even prouder of its diversity of ideas.
"The more diversity we have, the more diverse our thinking is," says Raheja of the 25-person strategic sourcing and supply chain solutions company headquartered in Oak Brook, Ill. "What we offer to our clients, our raw material, is our thinking power. So we tell our clients from day one that when we send people in, they're not going to represent a single, monolithic thinking process [and] in fact, in a number of situations, our people will be arguing with each other."
This lack of a united front, as it were, ultimately benefits clients, Raheja says. "We want the client to have the benefit of getting all different types of thinking applied to their problem." Mpower's clients, Raheja says, are predominately large global organizations that typically fall into the Fortune 250-300 category.
The Mpower Group, founded in 2000, certainly has an eclectic group addressing client challenges, and while Raheja didn't set out to launch a diverse firm, that's exactly what he has now. "We tend to approach this whole area of diversity, at least I think, from a slightly different angle, which is what's the business benefit and that's the reason we should do it, and I think that's a more powerful reason in my humble opinion," Raheja says, adding that he is Asian, the firm's other partner is female, and more than half of the firm could be classified as a member of a minority.
While having a diverse staff can be an asset when working with a client who may also have a diverse workforce, there is in fact an additional benefit, Raheja says: Preparing all clients for a future where all work is done globally. "We actually teach cultural diversity to a number of our clients to be able to handle that type of issue. Especially because a number of our clients are negotiating very large deals with suppliers, and applying traditional negotiating tactics actually leads to catastrophic failure in these negotiations a lot of times."
Raheja also has all of his new hires go through that same training. "Because we are international in scope and because the clients we service are international in scope, the same cultural diversity training that we offer to our clients, we have our people go through those so that they have a good understanding of how to have their antenna up all the time, so they can take advantage of diversity as opposed to letting it become a detraction."
And while the firm has been recognized by the state of Illinois as a minority firm, Raheja says the fact that a firm gets recognized for diversity is a sign that there is still more work to be done. "The fact that we are still giving out awards for diversity should tell us that it is still an issue. The fact that we are still recognizing people for doing the right thing tells me that it's still not the right thing for everybody."
Going forward, Raheja says, the firm will try to keep its diverse culture intact, but perhaps not in the traditional sense, especially as the firm looks to expand its global presence. Right now Mpower has partners in India and China and is looking to open a partner office in Europe.
"I think the fact that everything is going global, the area of cultural diversity will now start gaining a little bit more prominence in these conversations. You know, it's not just race and gender anymore. And the question of how do other cultures respond to diversity [is] something that we all have to be very, very sensitive to and aware of."
 Dalip Raheja, president and CEO of The Mpower Group, discusses his firms' efforts. |  Kathy Hopinkan-Hannan, a managing partner with KPMG, accepts the firm's award. |  Paul Laudicina, managing officer and chairman of the board for A.T. Kearney. | |
 Mary Lass Stewart, Sapient's director of people sucess, discusses the firm's Core Values. |  John Yoshimura, chief operating officer of A.T. Kearney, speaks about "essential rightness" at the firm. | ||
Consulting magazine editor-in-chief Joseph Kornik (far left) and publisher Brian Cuthbert (far right) congratulate Doug Lattner, chairman and CEO of Delitte Consulting, and Tonie Leatherberry, a partner and managing partner with the firm, on receiving the Excellence in Diversity award.
A.T. Kearney was on hand to celebrate its award.
Members of Sapient gather at the gala event.
Industry leaders and the executives from the five award-winning firms were on hand for the Excellence in Diversity gala at the University Club in Chicago last month.
Deloitte Consulting was honored for its diversity efforts.
KPMG celebrates its diversity award.
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