"Open For Business" Interview Part 1
Monday, January 16, 2006
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Transcript: Part 1 (see Part 2)
Gharib: Joining us now to to talk more about the issues of diversity, we're happy to have with us Dr. Bernard Anderson, Professor of Management at the Wharton School of the University of Pennsylvania, and Dr. David Thomas, Professor of Business Administration at the Harvard Business School.
Gentlemen, thank you so much for joining us.
Dr. Thomas, let me begin with you.
You know everybody talks about diversity but if you had to come up with a short definition of what makes a diverse workforce, what would it be?
Thomas: It would be a workforce that reflects the community that the business serves and the available labor markets.. as well as reflecting diversity at all levels of the company.. and both in the company's peripheral and core businesses or units.
Gharib: Dr. Anderson do you see it the same way?
Anderson: Yes, but I would express it a little bit differently. I would say that a diverse workforce is one in which there is a non-discriminatory environment for the management of human resources.
About the Special | View Transcript "Open For Business" NBR's Holiday Special on Martin Luther King Jr. Day January 16, 2006 Transcript: Part 1 (see Part 2) Gharib: Joining us now to to talk more about the issues of diversity, we're happy to have with us Dr. Bernard Anderson, Professor of Management at the Wharton School of the University of Pennsylvania, and Dr. David Thomas, Professor of Business Administration at the Harvard Business School. Gentlemen, thank you so much for joining us. Dr. Thomas, let me begin with you. You know everybody talks about diversity but if you had to come up with a short definition of what makes a diverse workforce, what would it be? Thomas: It would be a workforce that reflects the community that the business serves and the available labor markets.. as well as reflecting diversity at all levels of the company.. and both in the company's peripheral and core businesses or units. Gharib: Dr. Anderson do you see it the same way? Anderson: Yes, but I would express it a little bit differently. I would say that a diverse workforce is one in which there is a non-discriminatory environment for the management of human resources. Gharib: So how would be able to tell, Dr. Anderson if a company has been successful at creating a diverse workforce compared to one that's been a failure?
Anderson: Look at the numbers. I'm a numbers man. I think that you have to look at who is employed in that company and at what level they are employed. A diverse workforce is one that will reflect all of the population groups in this country... all of those who are in the labor market. It is not one in which you find an overwhelming majority of senior and management positions held by one population group, namely white males.
Gharib: Dr. Thomas, is it all about numbers, is that what success or failure is determined on?
Thomas: I think it's about numbers. I also think it's about the culture, and I think it's also about retention. There are many organizations that are able to keep their numbers looking perfect, but when you actually look at what's going on you've got a revolving door for talent and in particular for female talent and talent of color.
Gharib: So Dr. Thomas, what would say then are the real challenges or the stumbling blocks in terms of creating a diverse workforce, and then keeping it that way?
Thomas: I think the.. probably the major stumbling block is leadership accountability and having that leadership accountability run all the way through the organization... so that after initial success with the numbers we don't take our eye off the ball in terms of creating the kind of culture and environment that allows people to succeed and makes people want to be retained. So I really see today's stumbling blocks lying primarily at the level of leadership.
Gharib: I know Dr. Anderson you believe that corporate leaders can play a big role in creating a diverse workforce. What would you say is the key thing that a corporate leader has to do?
Anderson: The first thing a corporate leader has to do in my view is understand the importance of workforce diversity for the performance of the company. I think if you look at the evidence, you will find that those companies that are high performance work companies.. high performance work organizations.. are organizations that have a diverse workforce. Now workforce diversity is not the only thing that is necessary to produce a high performance workplace. But it is certainly a critical factor because when a company pursues diversity, and gets the widest range of the best employees from all population groups, that company's workforce will be more productive than otherwise.
Gharib: Would you say then that productivity is a key benefit to being a diverse company?
Anderson: Absolutely. You want the most productive workforce possible in order to contribute to the corporation's bottom line. That's why individuals are employed. So when you have a workforce that is diverse, you're drawing from the very best talent from the broadest pool of the population within our country to staff that corporation. That corporation will be more productive and more profitable than any other.
Gharib: Dr. Thomas, for companies that do not embrace diversity, what's the biggest cost for NOT being diverse?
Thomas: The biggest cost is that they will fail to adapt to the environment around them. There's plenty of evidence that shows that companies that don't have the diversity within, in order to track what's going on in their markets, and connect well to their markets, ultimately lose their position. So I think that's the major cost that you set yourself up for when you don't address diversity as a key business driver.
Gharib: Just to wrap it up, in a word or two. How can diversity in a workplace really change a company? Dr. Anderson... in just a few words?
Anderson: By making a company a far more effective organization in producing goods and services for a profit.
Gharib: Dr. Thomas?
Thomas: I think that the most profound change it can have is making a company truly an employer of choice as well as a much more creative and productive workplace.
Gharib: Gentlemen, let's take a little break here, and we'll continue our conversation with Dr. Anderson and Dr. Thomas a little later in the program.
