The practice of inclusion Towards a Dynamic and Systemic Approach diversity in times of transition Effenus Henderson, CEO, HENDERWORKS Retired CDO, Weyerhaeuser May 19, 2014 5/19/14 HENDERWORKS CONSULTING

HENDERWORKS CONSULTING background The Evolution of Diversity and Inclusion The Importance of Context Setting Alignment with Mission, Vision and Values Integration of diversity into the overall business strategy Development of a Multi-year Change Agenda The Importance of Leadership Commitment 5/19/14 HENDERWORKS CONSULTING

The evolution Diversity and inclusion 5/19/14 HENDERWORKS CONSULTING

The Evolution of Diversity Compliance and Affirmative Action Diversity and Valuing Differences Diversity and Organizational Inclusion - The Strategic Imperative Diversity and Inclusion beyond the workforce, workplace, and organization Monetizing the value of D & I to stakeholder relations, sustainable development and bottom line results 5/19/14 HENDERWORKS CONSULTING

The Business Imperative Profitability Innovation Market Development Globalization Product Design Supply Chains Quality Economic Demographic Changes Sustainable Development License to Operate Regulatory and Public Policy People Recruitment Engagement Development Retention Satisfaction Perspectives Leadership Work Systems Organizational Development Organizational Trust Succession Performance Outcomes 5/19/14 HENDERWORKS CONSULTING

Growing Complexity Civil Society Reputation Governance License to Operate Public Policy Investment Employment Sustainability Supply Chains Social Media Human Rights Cultural Identity Freedom Protection Social Responsibility Social Justice 5/19/14 HENDERWORKS CONSULTING

Expanding to all Stakeholders Employees Customers Communities Suppliers Clients Investors Government 5/19/14 HENDERWORKS CONSULTING

Stakeholder issues Employees Investors Customers Communities Engagement Satisfaction Productivity Retention Investors Transparency Decisions Ethical Conduct Business Results Customers Market Penetration Demographic impact Customer satisfaction Communities License to Operate Human Rights Volunteerism Sponsorships Regulators Public Policy Regulatory Change Emerging civil society trends 5/19/14 HENDERWORKS CONSULTING

The Change framework A multi-year change strategy 5/19/14 HENDERWORKS CONSULTING

Direction setting components Leadership Role Modeling Governance and Compliance Progressive Outreach Culture and Climate Talent Management 5/19/14 HENDERWORKS CONSULTING

Inclusive systems and practices HENDERWORKS ASSESSMENT FRAMEWORK Workforce Utilization Governance and Compliance Work Climate and Culture Rates of Participation in HR processes and systems Rate of Rise of Women and People of Color Understanding the Level of Interest of Employees in Development Outreach and Community Relations Alignment with Organizational Values Employee Retention and Talent Management 5/19/14 HENDERWORKS CONSULTING

Inclusive systems and practices HENDERWORKS ASSESSMENT PROCESS Collect data on risk areas Work with organizational leaders to assess gaps Use effectiveness barometer to identify levels of effectiveness Treat data as confidential and share on a “need to know” basis Develop action plan for improving effectiveness Monitor and update leadership on progress 5/19/14 HENDERWORKS CONSULTING

Alignment with workforce plans Understand External Influencers and Internal Drivers External Influences Technology Advancements Education Trends Demographic Trends Industry Trends External Workforce Trends Competitor Employment Options Internal Drivers New Technology Business Operations Changes Work System Changes Mfg Process Changes Workforce Changes Turnover Patterns Employee Engagement Identify Critical Workforce Issues and Gaps Identify Mission Critical Skills and Roles Assess Employee Value Proposition Define Targeted Future Workforce Develop and Execute Strategic Actions Resourcing Development Recruitment Retention Diversity and Inclusion Pay and Benefits Work Design Managed Entry Knowledge Transfer 5/19/14 HENDERWORKS CONSULTING

Leadership Behavior The importance of commitment 5/19/14 HENDERWORKS CONSULTING

Leadership effectiveness HENDERWORKS LEADERSHIP ACTION FRAMEWORK Clearly understand the demographics and composition of workforce Make diversity leadership a personal priority Expand recruitment efforts through targeted outreach Build diversity and inclusion into business planning process and stakeholder relations Make a personal commitment to develop the pipeline of diversity talent Sponsor mentoring efforts and diversity network groups Sponsor and participate in diversity education Become personally involved and support diversity outreach efforts Ensure leadership behaviors are inclusive and demonstrate a value for diversity Create and maintain a respectful and inclusive work environment HenderWorks Framework for Leading Inclusively 5/19/14 HENDERWORKS CONSULTING

Strengthening leader behaviors Building Inclusive Leadership Skills 1. Define the Critical Leader Behaviors 2. Identify gaps through self and team assessment 3. Address gaps through behavioral Skill building and practice 4. Develop and apply personal and team improvement plans to daily work 5. Measure and monitor progress using engagement survey and other methods 5/19/14 HENDERWORKS CONSULTING

Important behaviors 5/19/14 HENDERWORKS CONSULTING Trust Circle of Influence Commitment to Diversity and Inclusion Equal Opportunity for Growth and Development 5/19/14 HENDERWORKS CONSULTING

A Respectful workplace is an inclusive workplace A place where leaders set the tone by the words, thoughts, and actions A place where all the dimensions of diversity are respected, valued and supported A place where inclusion is fostered as an important part of the way business is conducted A place where high expectations are set and where every one is held accountable for their actions. A place where harassment and bullying are not tolerated 5/19/14 HENDERWORKS CONSULTING

lessons A dynamic and systemic approach a must 5/19/14 HENDERWORKS CONSULTING

HENDERWORKS CONSULTING Important lessons Gaining traction requires dedicated leadership attention and commitment over time Diversity and Inclusion must be viewed as part of organizational development and culture change which evolves and adapts as the business and organization changes (3 to 5 year timeframe) A systems approach tied to organizational strategies and outcomes is critical Attention to both short term tactical barriers (cost, profitability, etc.) and longer term consequences (retention, employer of choice, stakeholder relations) are essential Meeting governance and regulatory requirements are a given 5/19/14 HENDERWORKS CONSULTING

HENDERWORKS CONSULTING Any questions 5/19/14 HENDERWORKS CONSULTING