THE INCLUSION PARADIGM

THE INCLUSION PARADIGMThe Key to Organizational Performance

Presented byGeorgia CoffeyDeputy Assistant Secretary for Diversity and InclusionU.S. Department of Veterans Affairs

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By 2043, there will be no single demographic majority.By 2050, 1 in 5 people living in the US will be Hispanic.Globalization will permeate the labor market.C

urrently 4 generations in the workplace. Disabilities affect 20% of all Americans.Women earn the majority of college degrees awarded in U.S.There are an estimated 9 million LGBT individuals in the U.S. 1 in 5 workers have experienced discrimination at work.< 50% of employees who experience discrimination will stay; Attrition costs 150% of employees’ salary and lost productivity.Inclusive organizations have high employee engagement, which yields higher organizational performance.

The Federal Government is experiencing a crisis in confidence; the status quo in is no longer sustainable.

References: US Census Bureau; The Gallup Organization. Employee Discrimination in the Workplace, Public Opinion Poll. December 8, 2005; Sirota

Survey; Diversity

Research Network, 2002; Nishii, 2010.

The Facts

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Federal Government is one of the most diverse environments in American society in terms of race, ethnicity, and gender. Yet we still face barriers to equal opportunity, equal access, and high performance. Despite our diversity, we maintain a homogeneous mindset that creates barriers, cognitive dissonance, and flawed decision-making.

Diversity and inclusion must be the cornerstones of our talent management strategy and our business processes. Diversity without inclusion will not work.

The Challenge

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Core Understanding

EEO refers to the laws, regulations, and policies that guarantee our rights to equal opportunity in terms, conditions, and privileges of employment.

Diversity

is

“…all the ways in which we are similar and all the ways in which we differ." Outreach-focused

-- Dr R. Roosevelt Thomas, Jr.

Inclusion

is leveraging the diversity in our workforce to achieve full participation and optimum performance; it is about empowerment and engagement. In-reach focused.

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We are like this…9/9/2016

Office of Diversity & Inclusion, Department of Veterans Affairs5

A hierarchical segregated

organization.

Zero-Sum Game

WE ARE SMARTER LIKE THIS…9/9/2016

Office of Diversity & Inclusion, Department of Veterans Affairs6

An integrated network of empowered contributors

.

Whole>Sum

of

Parts

Diversity Research Network

Workforce diversity is associated with higher performance.

Racial diversity is associated

with higher performance in organizations that integrate and leverage diverse perspectives.Gender diversity is associated with more effective group processes and performance in organizations

with people-oriented

performance cultures.*

Center for Creative Leadership

Diverse teams are more creative and

better

in problem

solving. Workforce and process diversity results

in better

decision-making

.The effects of diversity are dependent on the presence of facilitating or inhibiting conditions in the organization; absent facilitating conditions the aforementioned outcomes are reversed.

Conclusion: Diversity without Inclusion will not work* The Effects of Diversity on Business Performance: Report of the Diversity Research Network, October 2002.What does the research show?7

UNC Business School

Workplace conflict results in 22-53% lost productivity.EEOC

Average EEO complaint costs approximately $60,000 (administrative

process only).40% of workforce attrition rate and 20% in lost productivity can be attributed to poor diversity management; turnover costs 75-150% of the replaced employee’s salary.

Conclusion

: There is a positive ROI for

Diversity & Inclusion.

The flip side…

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THE SCIENCE OF INCLUSION:

UNIQUENESS AND BELONGINGNESS

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Office of Diversity & Inclusion, Department of Veterans Affairs9

INCLUSIVENESS

Brewer's Optimal Distinctiveness Theory: the tension that people experience between the need to be a unique individual and the need to belong with others

.

THE NEUROSCIENCE OF INCLUSION

Our brains are wired for efficiency and speed

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W

e

must

make the effort to shift from System 1 to System 2 to limit unconscious bias and ensure rational thought.

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Office of Diversity & Inclusion, Department of Veterans Affairs

“System 1” (“Fast Thinking”) is automatic, emotional, instinctive, frequent, and subconscious.

2 + 2 = ?

“System 2” (“Slow Thinking”) is deliberative, calculating, infrequent, logical, conscious

.

37 x 19 = ?

The Bureaucratic Model

HierarchicalChain of CommandControlled Communications; need to know basisLinear business processes

Self-reinforcing preservation of status-quo

Convergent thinking and decision-making“Heroic” Leadership and Accountability*

*David Bradford and Allen Cohen,

Power Up – Transforming Organizations through Shared Leadership.

Wiley & Sons, New York, 1998.

Current State of Government

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MASLOW’S HIERARCHY - HEROIC LEADERSHIP MODEL

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The Inclusive Model

Flattened organizationsEmpowered contributors

Continual, transparent communications; knowledge is empowering

Matrix/Integrated Process ManagementInnovation is rewarded, not status quoDivergent Thinking; open-ended decision processShared

Leadership*

and Accountability

*David Bradford and Allen Cohen,

Power Up – Transforming Organizations through Shared Leadership.

Wiley & Sons, New York, 1998

Desired End State

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FLIP THE PYRAMID!INCLUSIVE/SHARED LEADERSHIP MODEL

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Leadership:

Recognize your unconscious bias (Harvard Implicit Assoc)Challenge assumptions; reduce “confirmation bias”

Open mind to new, untested notions; consider alternative

Power and accountability must flow down; “flip the pyramid”Understand true motivators:

autonomy, mastery, purpose

*

Employees

:

Develop cultural competency; engage differences

Engage, own, and lead

Assume responsibility

Take risks; step out of your comfort zone

*Dan Pink, RSA Animate-Drive, The Surprising Truth About what Motivates Us, April 2010

How do we get there?15

Knock down walls:

Review processes; identify barriers to optimum inputDesign processes to yield more than one solution

I

nterdisciplinary teams; encourage divergent thoughtDe-construct silos; integrated process management

Practice 360 Communication & cont. learning

Embrace creative

tension;

constructive

conflict

Align

rewards

systems

accordingly; ensure fairness

Business Process Reengineering (BPR)16

CULTIVATE PSYCHOLOGICAL SAFEY

Constructive Behaviors

Accessible

, approachable, and inclusive interpersonal relations.

Enforce standards of appropriate conduct; respectful environment.

Open, honest, direct feedback; transparent communications.

Embrace constructive debate, dissent, creative tension.

Coach first; punish last

Acknowledge own mistakes; use errors

as opportunities for learning

Share credit with team over self/individuals

Destructive Behaviors

Displaying/tolerating intimidating, retaliatory, or

disrespectful

conduct.Closed door policies, rigid chains of command.Information on a “need to know” basis. Withholding feedback from team membersShifting responsibility and blaming others for failuresCrediting self over team; allowing personal goals to trump

team goals.

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Adapted from

NCOD article on Psychological Safety, VHA Organizational Health

Newsletter; Edmondson

, A. C. (2012).

Teaming: How Organizations Learn, Innovate, and Compete in the

Knowledge

Economy

. San Francisco, CA: Jossey-Bass.

NEXUS: DIS

TRUST POOR PERFORMANCE18

Patrick Lencioni ,

The Five Dysfunctions of a Team

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Office of Diversity & Inclusion, Department of Veterans Affairs

Systems that Influence Organizational Inclusion

Source: “From Diversity to Inclusion.” Katharine Esty, PhD. Northeast Human Resources Association. April 30, 2007

Changing an organizational culture requires re-engineering business processes and deconstructing silos.

True inclusion will drive employee engagement which increases organizational performance19

How do we know we are there?

The VA Diversity IndexA measure of

workforce diversity based on the convergence of the representation of each demographic group in the organization (by race, ethnicity, gender) with the relevant/civilian labor force (R/CLF).

DI is the aggregate mean ratio of the group representation in the workforce to its corresponding representation in the R/CLF, capped at 100%.

=

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VA Workforce

Includes permanent and temporary employees. *The Civilian Labor Force (CLF) consists of all U.S. citizens 16 years of age and over, excluding those in the Armed Forces, who are employed or unemployed and seeking employment in all U.S. occupations.  The CLF does not include Puerto Rico or other U.S. territories. **The Relevant Civilian Labor Force (RCLF) consists of all U.S. citizens 16 years of age and over, excluding those in the Armed Forces, who are employed in or unemployed and seeking employment in VA specific occupations.  When the organization has a presence in Puerto Rico, the population of Puerto Rico is included.

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FY16 data as of August 31, 2016

VA SES WorkforceIncludes permanent and temporary employees; excludes Title 38 equivalents.

22Data as of August 31, 2016

A gauge to measure progress and assess the impact of policies on EEO and diversity.

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Based on 2000

Civilian Labor Force

2010

CLF

FY 15 Gov’t-wide

Diversity Index: 82.72%

VA Diversity Index

FY16 data as of August 31, 2016

The VA Inclusion Index

The Inclusion Index is a measure of organizational inclusion based on employee responses to select Federal Employee Viewpoint Survey (FEVS) items

.

20 FEVS items were linked to six empirically validated dimensions of inclusion, based on literature research and factor analyses. Favorable

responses

on survey items were averaged to

yield a single Inclusion Index.

The

Index was developed in partnership with OPM and rebranded as

the New IQ.

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6 DIMENSIONS

OF INCLUSION MAPPED TO 5 HABITS OF INCLUSION

9/9/2016Office of Diversity & Inclusion, Department of Veterans Affairs

25Fairness in

Employment

(Rules and Procedures)

Fairness in Employment

(Performance

Evaluations)

Inclusion/Participation in Decision-Making

Inclusive Management and Leadership

Information Access and Open Communication

Integration of Differences

Habits of Inclusion

Fairness

Open-Mindedness

Cooperativeness

Supportiveness

Empowerment

VA IQ Scores26

20142015

2016Gov’t-wide

56%57%58%VA-wide53%53%

54%

VHA53%

53%54%

VBA

50%

52%

55%

NCA

61%

59%61%

Enforce EEO, No FEAR, Whistleblower Protections

360º Communications; TransparencyFocused outreach & in-reach

Leadership Accountability for D&I

Cultural Competence TrainingConstructive Conflict Management

Participative leadership; BPR

Continuous

Learning;Leadership

Development

Metrics: Diversity & Inclusion

Indices

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ESSENTIAL PRACTICES

FOR INCLUSION27

Recruit, select, and advance on merit after fair and open competition. Treat employees and applicants fairly and equitably.

Provide equal pay for equal work and reward excellent performance. Maintain high standards of integrity, conduct, and concern for the public interest. Manage employees efficiently and effectively. Retain or separate employees on the basis of their performance.

Educate and train employees when it will result in better organizational or individual performance.

Protect employees from improper political influence. Protect employees against reprisal for the lawful disclosure of information in "whistleblower" situations.

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Merit System Principles

LESSONS LEARNED

INTELLIGENCE COMMUNITY

:

Obstacles leading to 9/11:*Hardened attitudes against changeInsular

organizations; resistance

to external recommendations

Insistence on preserving the status quo

SCIENTIFIC

COMMUNITY

:

Factors in Columbia disaster:**

O

rganizational

culture that squelched dissentResistance to external criticism and doubt

“party line vision…led to flawed decision-making…”ECONOMIC COMMUNITY: Factors in Lehman Bros. bankruptcy:***Narrow decision-making; failure to gain broad input

Outmoded, embedded cultural habits; rigid, inflexible

culture

FEDERAL GOVERNMENT:

VA, IRS, GSA…****

Lack of psychological safety; fear of reprisal

Lack of transparency

Lack of accountability

*Congressional Report on Weapons of Mass Destruction

**Columbia Accident Investigation Board, 2004

*** Hope Greene,

Culture Clash

**** Federal Eye, Washington Post, June 18, 2014

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“If you do not intentionally, deliberately, and proactively include, you will unintentionally exclude.”

– Joe Gerstandt9/9/2016Office of Diversity & Inclusion, Department of Veterans Affairs

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Takeaway:

Equity

Workforce

Diversity

High Performance

Organizational

Inclusion

SYNERGY FOR A

HIGH-PERFORMING ORGANIZATION

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