Realizing Potential Realizing Potential
The Business Case for DiversityHow a diverse workforce drives drive How a diverse workforce drives drive business successbusiness success
Fiona MullanHR Director
Microsoft Ireland 9th June 2009
Today’s ObjectivesToday’s Objectives
Provide my perspective onProvide my perspective onThe business case for Diversity within The business case for Diversity within global organisationsglobal organisations
Microsoft approach to Diversity & Microsoft approach to Diversity & InclusionInclusion
Challenges & opportunities Challenges & opportunities
Dimensions of Diversity
Diversity includeseveryone! Age
Multiculturalism
Gender
SexualOrientation
Accessibility
Education
Work Background
MilitaryBackgroun
d
MaritalStatus
ParentalStatus
ReligiousBeliefs
GeographicLocation
EconomicStatus
Primary Language
ThinkingStyle
Job level
Job Functio
n
Immigration
Diversity is the unique Diversity is the unique attributes & experiences we attributes & experiences we
each have….Its one thing we all each have….Its one thing we all have in commonhave in common
Inclusion is the work Inclusion is the work environment & the degree of environment & the degree of openness for us to offer our openness for us to offer our
unique perspectives to benefit unique perspectives to benefit the business the business
Diversity is not an Diversity is not an either/oreither/or way of way of
working….its an working….its an and/bothand/both approach!approach!
What does this all mean What does this all mean to a business like to a business like Microsoft?Microsoft?
……and why does it make business and why does it make business sense for us to build a diverse & sense for us to build a diverse & inclusive culture? inclusive culture?
1996 Saudi1996 Saudi1998 Abu Dhabi1998 Abu Dhabi
1998 Kuwait1998 Kuwait
1998 Lebanon1998 Lebanon
1999 Pakistan
2001 Oman2001 Oman
2001 Jordan2001 Jordan
2003 Bahrain2003 Bahrain
2003 Qatar2003 Qatar
2002 Kazakhstan2002 Kazakhstan
1992 South Africa1992 South Africa
1995 Egypt1995 Egypt
1995 Kenya1995 Kenya
1996 Ivory Coast1996 Ivory Coast1996 1996 Nigeria
1997 Mauritius1997 Mauritius1998 Namibia1998 Namibia
1999 Tunisia1999 Tunisia2000 Algeria2000 Algeria
1993 Czech Rep.1993 Czech Rep.1993 Hungary1993 Hungary
1993 Poland1993 Poland
1993 Russia1993 Russia
1994 Slovenia1994 Slovenia
1995 Slovakia1995 Slovakia
1996 Croatia1996 Croatia1996 Romania1996 Romania
1993 Turkey1993 Turkey
1999 Bulgaria1999 Bulgaria
2002 Cyprus2002 Cyprus
2002 Yugoslavia2002 Yugoslavia
2002 Ukraine2002 Ukraine
2003 Malta2003 Malta
1983 Germany1983 Germany1983 UK1983 UK
1983 France1983 France
1985 Spain1985 Spain
1985 Norway1985 Norway
1985 Denmark1985 Denmark
1987 Portugal1987 Portugal
Microsoft: 25 Years in EMEAMicrosoft: 25 Years in EMEA
1989 Israel1989 Israel
60 offices, 56 nations 4 major R&D centres 17,000 employees Rated “No 1 Best
Workplaces” in Europe – 2008 and 2009
60 offices, 56 nations 4 major R&D centres 17,000 employees Rated “No 1 Best
Workplaces” in Europe – 2008 and 2009
2003 Iceland2003 Iceland
1985 Ireland1985 Ireland
Internal - MS Ireland Internal - MS Ireland OverviewOverview
Strategic footprint and multi-skilled talent pool
550 FTE’s 550 FTE’s100 FTE’s
1,200 FTEs (+ 700 vendors)Average age = 36 yrs64% male / 36% female25% from 40 countries
Average length of service - 6 yrsEmployee Satisfaction = 81%5% attritionNo 1 Company to Work for in Ireland
Core to our Culture Core to our Culture
The MythsThe Myths• XboxXbox• Massage therapyMassage therapy• Chill roomsChill rooms• Family daysFamily days
The RealityThe Reality• The myths are true, The myths are true,
ANDAND• Hard workHard work• Deadline and results Deadline and results
drivendriven• Performance based Performance based
cultureculture• Expect the Expect the
impossible!impossible!KEY TO INCLUSION…Refreshingly informal
Genuine focus on people
Passionate and committed
13
Why Diversity Matters at Why Diversity Matters at Microsoft…Microsoft…
Talent Attract and retain the best and
brightest employees to gain a competitive advantage in the new emerging markets.
Innovation Build innovative products
using the diverse talents, ideas and
perspectives for an increasingly diverse
customer base.
Customers If we truly want to have a
compelling value proposition for our
customers, we must understand the rich diversity within our
customer base.
14
The Business Case for Global Diversity & The Business Case for Global Diversity & InclusionInclusionOur consumer base has changed dramatically and will continue to grow more diverse Our consumer base has changed dramatically and will continue to grow more diverse
in the years ahead, so:in the years ahead, so:
• Need to anticipate, respond and serve the needs of the changing consumer Need to anticipate, respond and serve the needs of the changing consumer marketplace.marketplace.
• Emerging markets (China, India, Russia, Brazil) will experience technology sales surge Emerging markets (China, India, Russia, Brazil) will experience technology sales surge through the next 5 years.through the next 5 years.
• Use D&I to better serve specific existing markets— e.g., tech-savvy women purchase Use D&I to better serve specific existing markets— e.g., tech-savvy women purchase $55 billion in consumer technology products.$55 billion in consumer technology products.
• Culturally competent workforce required to deliver superior performance.Culturally competent workforce required to deliver superior performance.
Our Global Village
0
50
100
150
200
250
300
350
400
2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
Non-Minority Minority
15
The Business Case for Diversity – U.S.
In the U.S. Market, Minorities are Becoming the “Emerging Majority”M
illion
s
U.S. Population by Minority/Non-Minority Group: 2000-2050
Source: The Minority Business Development Agency
16
The Business Case for The Business Case for Diversity – U.S.Diversity – U.S.Diverse Customers Hold Immense Buying Power in the U.S. Diverse Customers Hold Immense Buying Power in the U.S.
MarketplaceMarketplace
Women $2.4 Trillion
Baby Boomers $1.6 Trillion
Disabled $1 Trillion
Hispanics $653 Billion
Blacks $631 Billion
Gays/Lesbians $485 Billion
Pre-Boomers or Matures $430 Billion
Asians $344 Billion
Gen Y or Millennials $172 Billion
Gen X $125 Billion
Native Americans $45 Billion
Clear and Compelling Business Clear and Compelling Business Case for DiversityCase for Diversity
Microsoft Ireland is the operations hub for Microsoft Ireland is the operations hub for 100 countries across EMEA100 countries across EMEA
We localise 35+ products into 40+ We localise 35+ products into 40+ languageslanguages
Talent pool for certain skills is pan-Talent pool for certain skills is pan-European and sometimes globalEuropean and sometimes global
Hiring managers demandHiring managers demand
Language and cultural capabilityLanguage and cultural capability
Diversity of thoughtDiversity of thought
AND we want the best talent no matter AND we want the best talent no matter what!what!
Philosophy Philosophy
Maximise the potential of all Maximise the potential of all employeesemployees
Diversity and Inclusion are not Diversity and Inclusion are not separate programs – woven separate programs – woven throughout our people processes and throughout our people processes and prioritiespriorities
Leverage people processes to drive Leverage people processes to drive changechange
We need to Deliver A Compelling Employee Value Proposition
to engage all of our employees (and people we would like to hire!)
Our Approach to Diversity & Our Approach to Diversity & Inclusion – Four StrandsInclusion – Four Strands
• Core to our CultureCore to our Culture
• Focus on Employee EngagementFocus on Employee Engagement
• Vehicle for Employee InvolvementVehicle for Employee Involvement
• Integrated with Corporate Social Integrated with Corporate Social ResponsibilityResponsibility
Lessons Learned…Lessons Learned…
Representation countsRepresentation counts
Policies and programs don’t create Policies and programs don’t create change – managers and leaders dochange – managers and leaders do
Make it easier for managers Make it easier for managers
Retaining talented women in the Retaining talented women in the work force demands flexibilitywork force demands flexibility
Stop thinking only about the majority Stop thinking only about the majority of people onlyof people only
Initially, working in diverse groups is Initially, working in diverse groups is hard but the benefits do materialisehard but the benefits do materialise
Results at Microsoft?Results at Microsoft?No1 Best Company to work for in No1 Best Company to work for in EuropeEurope
Employee feedback trending upEmployee feedback trending up83% Overall Employee Satisfaction83% Overall Employee Satisfaction
92% proud to work for Microsoft92% proud to work for Microsoft
93% My manager treats employees with dignity 93% My manager treats employees with dignity and respect and respect
91% I would recommend Microsoft as a great 91% I would recommend Microsoft as a great place to workplace to work
Developing the businessDeveloping the businessConstant innovation and continuous Constant innovation and continuous improvementimprovement
Flexibility in workforceFlexibility in workforce
© 2005 Microsoft Corporation. All rights reserved.© 2005 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.