The Business Case for Cultural Intelligence

The Business Case forCultural Intelligence

Presented byGerry FernandezPresident, MFHA

Copyright MFHA 2013www.mfha.net

Introductions

Gerry Fernandez is MFHA’s chief visionary and thought leader on multicultural business strategies in the industry.

A formally trained and accomplished restaurateur, he held positions with The Capital Grill, The Waldorf-Astoria and General Mills prior to launching MFHA in 1996.

www.mfha.net Copyright MFHA 2013

Outline

• Introduction to MFHA• Introduction to Cultural Intelligence• The Rationale• How to Leverage the Opportunity• MFHA’s Approach to Improving ROI• Creating a Footprint


MFHAAn Introduction to


MFHA History

• Formed in 1996 to increase the representation, advancement and development of minorities in the food & hospitality industry.

• Since then, our Diversity and Inclusion agenda has evolved into the broader, more global and timely approach of providing solutions for multicultural business issues through Cultural Intelligence.


Who We AreMFHA is an educational non-profit that helps companies maximize their ROI by engaging diverse cultural groups

through Cultural Intelligence.

Corporate Members

Minority Businesse

s

CBO’s

Associations

Academia

Consultants

Pundits

Media

Government

EDUCATE. ADVOCATE. CONNECT.


Our Partner

• Johnson & Wales University (JWU) is a founding member of MFHA with direct involvement and support sustained over the past 17 years.

• In 2011, JWU and MFHA launched a Cultural Intelligence (CI) initiative designed to build Cultural Intelligence competency and fluency among foodservice and hospitality industry management to help them deliver better business results.

• In March of 2013, JWU acquired MFHA to advance the industry’s strategic diversity initiatives and build Cultural Intelligence among academia.


Lead Supporters


Additional Supporters

• AdvancePierre Foods• Au Bon Pain• The Bama Companies• Ben E Keith• BJ’S Restaurants, Inc.• Brinker International• The Cheesecake Factory• Chipotle Mexican Grill• Choice Hotels International• Corner Bakery Café• Culver’s• Cura Hospitality• Eat’n Park• Focus Brands, Inc.• Gordon Food Service• Heinz Foodservice• Kellogg Company

• Kimpton Hotels & Restaurants• Kraft• Legal Sea Foods• The MATLET Group• Marriott• MGM Resorts International• Oakwood Temporary Housing• OTG Management• Parkhurst Dining• Perkins & Marie Callender’s• Red Roof Inns, Inc.• Romano’s Macaroni Grill• Starbucks Coffee Company• Ted’s Montana Grill• Texas Roadhouse• Unilever• Wegmans Food Market


What We DoWe help our members and the industry build their cultural knowledge and skills to:

• Strategically attract, develop and retain top multicultural talent.

• Effectively engage multicultural employees, customers and communities to improve business results.

• Prevent and mitigate multicultural risk.


How We Do It

We Educate, Advocate for, and Connect our members with solution-oriented programs and products focused on:

• Multicultural Professional Development

• Building Cultural Intelligence

• Strategic Networking

• Future Workforce Career Explorationwww.mfha.net Copyright MFHA 2013

CULTURAL INTELLIGENCEAn Introduction to


What is Cultural Intelligence?

• Cultural Intelligence ≠ Diversity & Inclusion

• Cultural Intelligence (CI) is having the knowledge, skills, and insights necessary to effectively engage people from different cultural backgrounds to deliver better business results.


CULTURAL INTELLIGENCEThe rationale for


The Rationale for CI

• The Current State of D&I• Changing America• Purchasing Power• Population Projections• Horror Stories vs. Success Stores• The Benefits of Engagement


The Current State of D&I

• Most adherents promote diversity as a “logical business imperative” but do not quantify results or tangible benefits.

• The term diversity has been demonized, strategic action has been stalled and some companies have lost momentum due in part to the economy.

• Corporate leadership is in denial about the implications of the facts.


The Facts

Source: Missing Pieces: Women And Minorities On Fortune 500 Boards—2010 Alliance For Board Diversity Census

Fortune 500 boards are even less diverse than Fortune 100 boards.


Changing America

According the 2010 U.S. Census Bureau, we are becoming an increasingly diverse nation at a faster and faster rate.

Changing demographics are affecting:

• Employment pool• Purchasing power• Recruitment• Engagement• Retention• Career development• Leadership• Teamwork• Business methods and

operations


Purchasing Power

• The combined buying power of racial minorities will account for 15% of the nation’s total buying power by 2015

• The buying power of minorities is growing at a faster rate than Whites (213%)

Segment2010 Buying

Power 1990-2015

Growth Rate

African-Americans

$957 billion 294%

Native-Americans

$68 billion 362%

Asian-Americans

$544 billion 571%

Latinas/Latinos

$1 trillion 605%

LGBT $743 billion N/A


Population Projections


Copyright MFHA 2013

Horror Stories vs. Success Stories

Horror Stories• Papa John’s Pizza

– Asian woman tweeted a photo of a receipt that she received at a NYC location where an employee used the racial slur “lady chinky eyes” to describe her

• Landmark Steakhouse– Settled lawsuit with Black

businessman after printing “N word” slurs on his receipt

Success Stories• PepsiCo

– Input from Latino line employees at Frito Lay division led to development of flavored Doritos, now a billion $ business.

• McDonald’s– Multicultural advertising

campaign “McNugget Love” boosted sales 20%

• www.mfha.net

The Benefits of Engagement

• Engaged employees give 40-80% more discretionary effort in their jobs than low commitment employees.

• Moving an employee from a low to high commitment level reduces their turnover rate by 80%.

Source:2013 Gallup Business Journal, Inc.


So Why Cultural Intelligence?

Culturally Intelligent Managers and Organizations maximize ROI by:

• Reducing cross-cultural conflict in the workplace

• Increasing employee engagement and productivity

• Attracting, developing and retaining better quality multicultural talent

• Driving innovation and flexibility through enhanced multicultural collaboration

• Mitigating multicultural risk


THE OPPORTUNITYHow to leverage


Metrics Focused

CI delivers qualitative and quantitative products and services that help companies:

• Move beyond discriminatory compliance• Improve short to medium-term cash flow• Strengthen long term tangible and intangible assets• Boost competitiveness and profits• Increase shareholder/stakeholder value


Want to…

identify multicultural opportunities to DRIVE THE PRODUCTIVITYof your multicultural workforce?


Cultural Intelligence Assessments

• MFHA Snapshot Assessment—Existing Corporate Culture and Inclusion Programs Versus Best Practices of Corporate Leaders in the Field

• MFHA Diagnostic Assessment—Effectiveness of Existing Corporate Culture and Inclusion Programs


Want to…

IMPROVE COMMUNICATIONwith your multicultural customers & employees?


Cultural Intelligence eLearning Series

MFHA’s interactive and self-paced eLearning modules are designed to show managers and supervisors how to more effectively engage employees from diverse cultural groups.


Want to…

IMPROVE ROI by reducing turnoverand building leadership skills?


Cultural Intelligence Workshops

• Thriving During The U.S. Population Shift: The MFHA Business Case For Cultural Intelligence

• Engaging Foodservice & Hospitality Employees From Diverse Cultural Groups With Cultural Intelligence

• Career Acceleration Powered By Cultural Intelligence For Diverse Cultural Groups


Want to…

MOTIVATE AND DEVELOP your multicultural employees?


Motivational Keynote Speeches

• Leadership From The Middle: How To Manage, Motivate & Develop Young Talent To Be Top Performers

• It’s All In The Recovery: How to Recover from Life’s Setbacks


Want to…

MITIGATEcultural risk?


Multicultural Consulting & Coaching

• Multicultural Consulting Services

• Multicultural Coaching (Middle/Senior Management)

• Crisis Management Consultation


IMPROVING ROIMFHA’s approach to


The Road Map

• Cultural Intelligence is for everyone regardless of where you are in your career.

• Our approach is designed so that anyone can jump in at any point in time.

ASSESSMENTS

eLEARNING

• Latino• Asian• Black• LGBT

LIVE TRAINING

• Workshops• Online Seminars

CONSULTING SERVICES

• Crisis Management• Senior and Middle

Management Career Coaching

• Diversity and Inclusion Planning and Implementation

KEYNOTE SPEAKING

THE BUSINESS

CASE FOR CI

CI LEVEL I

• Awareness• Understanding• Engagement

CI LEVEL II

• Sell• Serve• Recruit


MFHA’s Role

We share mutual interest in providing added value for our employees, our customers and our industry.

Our products can help you identify training opportunities:• For your existing customers• For your own organization• For your distributors and partners• For industry associations

By leveraging our products you can:• Increase your bottom line• Enhance your brand equity


FOOTPRINTCreating a


James FrippSenior DirectorGlobal Diversity & InclusionYum! Brands, Inc.

“Developing culturally intelligent leaders is critical for innovation and long-term business success.”


“The MFHA Suite of Solutions and Services are specific to the challenges of the restaurant, foodservice and lodging industries and will help our industry continue its leadership in multicultural awareness and achievement.”Roy Jackson

VP, Central ZoneCoca-Cola Refreshments


“MFHA offers innovative programs that strategically position organizations to maximize the multicultural opportunities for today and the future.”

Douglas AllisonVP, Corporate Development & DiversityPepsiCo Foodservice


“I highly recommend MFHA’s Cultural Intelligence Workshop. It is a business must to effectively engage talent and customers in order to achieve growth goals.”

Arie BallVP, Sourcing and Talent AcquisitionSodexo

43

“Effective engagement of a diverse employee population can be a real competitive advantage in today’s business environment. MFHA can help your organization build its cultural intelligence to deliver strong results.”Tiffanie Boyd

VP, Human ResourcesGeneral Mills Bakeries & Foodservice


“MFHA provides opportunities for members to become industry leaders and champions.”

Paul SealDirector of Field HRCracker Barrel Old Country Store


How Culturally Intelligent Are YOU?

[email protected]/mfhanetfacebook.com/mfhalinkedin.com/company/mfha


The Business Case for Cultural Intelligence

Business

copyright mfha

mfha introduction

mfha history

founding member of mfha

food hospitality industry

board diversity

term diversity

development of minorities