Monday, November 1, 2010
Friday, August 20, 2010
Leveraging diversity has many strategic benefits
CRAIG ARENDSE
Published: 2010/08/11 08:46:34 AM
MORE than 15 years into democracy, discourse on diversity in the workplace continues to be fuelled by political and social agendas. For many, transformation is still an issue of compliance, but evidence is mounting that inclusivity and diversity make strategic business sense and can increase competitiveness.
The question must be asked: has enough been done in S A to convince local companies of the strategic advantages of building integrated and inclusive workplaces?
Researchers Stephen Knouse and Alvin and Patricia Smith at the University of Louisiana have recently put forward a convincing argument. In a paper — titled The Business Case for Diversity: Is Diversity Cost Effective? — they demonstrate that diverse workforces offer advantages in several areas.
They posit that they can deliver a competitive edge in nine possible ways, but hard evidence that diverse companies make more money is understandably more difficult to come by and most studies to date have been inconclusive. Researchers admit it’s difficult to measure, given the many variables that influence company performance.
Thomas Kochan and fellow researchers at the MIT Sloan School of Management conducted a comprehensive study into the matter a few years ago and, while they didn’t find decisive evidence in favour of the bottom-line argument, they concluded that harnessing diversity does increase overall competitiveness.
“Organisations that invest their resources in taking advantage of the opportunities that diversity offers should outperform those that fail to make such investments,” they concluded.
In fact, they believe the bottom-line argument is outdated and places too narrow a lens on the benefits of diversity. Managers would instead do better “to focus on building organisational culture, human resource practices and the managerial and group process skills needed to translate diversity into positive organisational, group and individual results,” they say.
Bottom-line evidence aside, the areas that have shown to be positively influenced by diversity, as outlined by Knouse and his colleagues, are widely recognised as factors that can create happier, more innovative and motivated workforces.
In SA — where the business case for diversity hasn’t been pushed as hard — it has real merit when used alongside the more common moral and legal arguments for transformation.
Some companies here continue to bemoan the transformation agenda and its supposed negative effects. Enough evidence now exists to rubbish these claims and businesses need to be aware that it is not diversity that is the problem, it is their attitude towards it.
To talk of “diversity management’” is still to see each group in a separate corner. Instead of simply asking: “How can we all get along better?”, we need to be asking: “How can we leverage our diverse workforce to become a better business?”
Leveraging diversity in practice is about building strong, integrated organisations in which the corporate culture is truly inclusive and not dominated by one world view. Inclusive corporate cultures will help with staff retention. When work feels like a place for all, it is easier to attract the right people and keep them happy.
The way companies harness their diversity will also influence how they see and access markets. Product and service offerings that are more inclusive will open the door to new emergent markets.
In the decade ahead, organisations that understand the strategic benefits of diversity will be more competitive, flexible and inclusive.
n Arendse is MD of the Mediation and Transformation Practice SA.
Published: 2010/08/11 08:46:34 AM
MORE than 15 years into democracy, discourse on diversity in the workplace continues to be fuelled by political and social agendas. For many, transformation is still an issue of compliance, but evidence is mounting that inclusivity and diversity make strategic business sense and can increase competitiveness.
The question must be asked: has enough been done in S A to convince local companies of the strategic advantages of building integrated and inclusive workplaces?
Researchers Stephen Knouse and Alvin and Patricia Smith at the University of Louisiana have recently put forward a convincing argument. In a paper — titled The Business Case for Diversity: Is Diversity Cost Effective? — they demonstrate that diverse workforces offer advantages in several areas.
They posit that they can deliver a competitive edge in nine possible ways, but hard evidence that diverse companies make more money is understandably more difficult to come by and most studies to date have been inconclusive. Researchers admit it’s difficult to measure, given the many variables that influence company performance.
Thomas Kochan and fellow researchers at the MIT Sloan School of Management conducted a comprehensive study into the matter a few years ago and, while they didn’t find decisive evidence in favour of the bottom-line argument, they concluded that harnessing diversity does increase overall competitiveness.
“Organisations that invest their resources in taking advantage of the opportunities that diversity offers should outperform those that fail to make such investments,” they concluded.
In fact, they believe the bottom-line argument is outdated and places too narrow a lens on the benefits of diversity. Managers would instead do better “to focus on building organisational culture, human resource practices and the managerial and group process skills needed to translate diversity into positive organisational, group and individual results,” they say.
Bottom-line evidence aside, the areas that have shown to be positively influenced by diversity, as outlined by Knouse and his colleagues, are widely recognised as factors that can create happier, more innovative and motivated workforces.
In SA — where the business case for diversity hasn’t been pushed as hard — it has real merit when used alongside the more common moral and legal arguments for transformation.
Some companies here continue to bemoan the transformation agenda and its supposed negative effects. Enough evidence now exists to rubbish these claims and businesses need to be aware that it is not diversity that is the problem, it is their attitude towards it.
To talk of “diversity management’” is still to see each group in a separate corner. Instead of simply asking: “How can we all get along better?”, we need to be asking: “How can we leverage our diverse workforce to become a better business?”
Leveraging diversity in practice is about building strong, integrated organisations in which the corporate culture is truly inclusive and not dominated by one world view. Inclusive corporate cultures will help with staff retention. When work feels like a place for all, it is easier to attract the right people and keep them happy.
The way companies harness their diversity will also influence how they see and access markets. Product and service offerings that are more inclusive will open the door to new emergent markets.
In the decade ahead, organisations that understand the strategic benefits of diversity will be more competitive, flexible and inclusive.
n Arendse is MD of the Mediation and Transformation Practice SA.
Friday, July 23, 2010
World cup unity – a tonic for organisational change?
By Craig Arendse
If national pride is measured in flag visibility, South Africa has surely blasted off the scales of the national pride barometer. The 2010 FIFA World Cup has been nothing less than a momentous success, and while some are concerned the current groundswell of patriotism will fizzle out into a listless hangover come the end of the tournament, there is much hope that the country, organisations and businesses can continue to leverage off it for years to come.
After all, times when whole populations – especially those as diverse as ours – come together in a true show of national unity are rare things. They are to be savoured and celebrated, but more importantly, they are occasions to be learnt from.
Companies and organisations, for example, could benefit if they find a way to translate the culture of cooperation that has blossomed around the world cup into the realm of organisational change and diversity management. The result could be more inclusive, high-performing and competitive organisations – places where the discourse around employment equity moves away from compliance to that of collective benefit.
Because, besides all the most obvious benefits, the world cup has finally proved that there is one common South African identity, something that many have struggled to pin down in the years since 1994. Support for the tournament and for the national team has known no boundaries – white Afrikaner men alongside soccer fanatics from Soweto, businesswomen in Sandton, farm-workers in small towns and students in cities have all waved the flag high, showing that no matter who we are, we are South Africans first.
More surprisingly, perhaps, is that it has brought home a very strong sense of our ‘Africanness’ as well. South Africans of all races – once so quick to cite tenuous family ties to places in Europe or Asia – have instead celebrated their connection to the continent; their pride in being African.
Had the tournament not been such a major triumph – had the prophecies of the doomsayers come true – the effect would no doubt have been vastly different. South Africans would probably have retreated into their characteristic pessimism over the country’s ability to deliver on all fronts. Failure would surely have pushed people apart.
That is why it is so crucial that the moment at hand is not laid to waste. South Africans must build on this renewed sense of patriotism and on our new symbols of success – world-class stadiums, upgraded airports, new roads and transport networks and a high-speed rail link more associated with Singapore than Sandton in the shape of the Gautrain.
Companies, too, must harness the spirit of togetherness and apply world cup lessons in pride and identity to their own contexts. The world cup has shown that common identity can be a powerful motivator for collective achievement, and that celebrating accomplishments goes a long way to fostering that collective sense of identity and pride.
Organisations wanting to benefit and learn from the world cup must therefore build corporate cultures that are wholly inclusive and that emphasise the commonalities of their employees, rather than the differences. They also need to connect each and every individual worker to the greater purpose of the company. The media and politicians did a fantastic job in making every South African feel connected to the overall success of the tournament and organisations can, and should, do the same.
This is because numerous HR studies have shown that when people feel united, when they feel valued and important, work ethic and loyalty are significantly enhanced. Too many South African companies are still stuck with an inherent sense of separateness – whether between different levels of company hierarchy or due to opportunities being skewed along racial and gender lines – and this creates mistrust, disloyalty and below par performance.
The key to overcoming these obstacles and to creating truly inclusive organisations does not lie in employment equity or BEE. While legislation has its place, it highlights our differences, and that – the world cup has shown us – is counterproductive to cooperation.
Most importantly, the world cup has taught us that diversity is best managed with commonality. What connects us is far more important than what makes us different and companies that recognise this and build corporate cultures that ride on the current wave of national togetherness will be those that benefit the most from the world cup legacy. The final whistle may have been blown, but the moment of opportunity for South Africa and its businesses is certainly not gone.
Craig Arendse is the MD of Mediation and Transformation SA. He has over 20 years experience in the mediation and transformation field and has consulted to international organisations, including the World Bank.
If national pride is measured in flag visibility, South Africa has surely blasted off the scales of the national pride barometer. The 2010 FIFA World Cup has been nothing less than a momentous success, and while some are concerned the current groundswell of patriotism will fizzle out into a listless hangover come the end of the tournament, there is much hope that the country, organisations and businesses can continue to leverage off it for years to come.
After all, times when whole populations – especially those as diverse as ours – come together in a true show of national unity are rare things. They are to be savoured and celebrated, but more importantly, they are occasions to be learnt from.
Companies and organisations, for example, could benefit if they find a way to translate the culture of cooperation that has blossomed around the world cup into the realm of organisational change and diversity management. The result could be more inclusive, high-performing and competitive organisations – places where the discourse around employment equity moves away from compliance to that of collective benefit.
Because, besides all the most obvious benefits, the world cup has finally proved that there is one common South African identity, something that many have struggled to pin down in the years since 1994. Support for the tournament and for the national team has known no boundaries – white Afrikaner men alongside soccer fanatics from Soweto, businesswomen in Sandton, farm-workers in small towns and students in cities have all waved the flag high, showing that no matter who we are, we are South Africans first.
More surprisingly, perhaps, is that it has brought home a very strong sense of our ‘Africanness’ as well. South Africans of all races – once so quick to cite tenuous family ties to places in Europe or Asia – have instead celebrated their connection to the continent; their pride in being African.
Had the tournament not been such a major triumph – had the prophecies of the doomsayers come true – the effect would no doubt have been vastly different. South Africans would probably have retreated into their characteristic pessimism over the country’s ability to deliver on all fronts. Failure would surely have pushed people apart.
That is why it is so crucial that the moment at hand is not laid to waste. South Africans must build on this renewed sense of patriotism and on our new symbols of success – world-class stadiums, upgraded airports, new roads and transport networks and a high-speed rail link more associated with Singapore than Sandton in the shape of the Gautrain.
Companies, too, must harness the spirit of togetherness and apply world cup lessons in pride and identity to their own contexts. The world cup has shown that common identity can be a powerful motivator for collective achievement, and that celebrating accomplishments goes a long way to fostering that collective sense of identity and pride.
Organisations wanting to benefit and learn from the world cup must therefore build corporate cultures that are wholly inclusive and that emphasise the commonalities of their employees, rather than the differences. They also need to connect each and every individual worker to the greater purpose of the company. The media and politicians did a fantastic job in making every South African feel connected to the overall success of the tournament and organisations can, and should, do the same.
This is because numerous HR studies have shown that when people feel united, when they feel valued and important, work ethic and loyalty are significantly enhanced. Too many South African companies are still stuck with an inherent sense of separateness – whether between different levels of company hierarchy or due to opportunities being skewed along racial and gender lines – and this creates mistrust, disloyalty and below par performance.
The key to overcoming these obstacles and to creating truly inclusive organisations does not lie in employment equity or BEE. While legislation has its place, it highlights our differences, and that – the world cup has shown us – is counterproductive to cooperation.
Most importantly, the world cup has taught us that diversity is best managed with commonality. What connects us is far more important than what makes us different and companies that recognise this and build corporate cultures that ride on the current wave of national togetherness will be those that benefit the most from the world cup legacy. The final whistle may have been blown, but the moment of opportunity for South Africa and its businesses is certainly not gone.
Craig Arendse is the MD of Mediation and Transformation SA. He has over 20 years experience in the mediation and transformation field and has consulted to international organisations, including the World Bank.
Thursday, June 17, 2010
Craig Arendse receives copy of the Peace and Development Programme handbook
Estelle Gautier, Project manager of GTZ, a German based organisation which provides funding for the Peace and Development Programme (PDP) hands over a PDP handbook to Craig Arendse at the MTP Kick-off party.
MTP and GTZ have developed a great partnership over the past 5-6 years. GTZ provides funding for the Peace and Development Programme (PDP).
The main purpose of the Peace and Development Programme is to empower young community peace workers in the area of Peace Building, which includes Conflict Resolution, Mediation, Communication Skills and Leadership skills.
During May 2010, MTP trained over 300 Peace Workers in Conflict Management during Large Events. The main purpose of this training intervention was to equip the peace workers with key skills on how to manage conflict and disputes during large events. These Peace Workers will be deployed to various areas in Tshwane during June 2010 to assist with resolving disputes during the World Cup season.
When Estelle Gautier of GTZ attended the MTP Kick-off party on June 8th, she gave Craig Arendse a copy of the newly published PDP handbook. The PDP handbook includes all the information on the programme and training events and features MTP’s training interventions.
“MTP is proud to be associated with GTZ and will partner with this institution in the future”, said Craig Arendse of MTP-SA.
Wednesday, June 9, 2010
KICK-OFF 2010 FOR MTP-SA
MTP-SA kicked of this week with its new corporate look at a glittering function at Pigalle in Greenpoint.MD Craig Arendse launched the new MTP-SA Academy saying "MTP’s driving force is to contribute to the professionalisation of the field of conflict resolution and peace building.
We therefore present well designed courses, based on cutting edge theory and proven technology that has been developed over the years through ground breaking work with clients."
The other component showcased in the MTP-SA online offering is the Practice, where Arendse added "Over the past two decades conflict resolution and change management have become more than just a set of skills and processes but a science.
"The Practice provides professional intervention and training in mediating conflict, designing and facilitating change management/transformation processes, managing diversity, and facilitating negotiations. "
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