Five
Forward: A focus on regional job creation through
multiracial business development
Gloria
Castillo, President, Chicago United
 Across
the nation, job creation and the battle to reverse unemployment
trends is the top priority of elected officials and business
and civic leaders. The nation’s unemployment rate hovers
around 10 percent, and that is alarming…until you consider
job loss in communities of color.
Unemployment
deals a heavier blow to African Americans and Hispanics. The
unemployment rate among African Americans is roughly 16 percent;
it’s roughly 12 percent for Hispanics.
Bringing
the discussion closer to home, Illinois was one of only three
states to report significant job losses from November to December
last year as it lost more than 16,000 jobs, according to the
Bureau of Labor Statistics. And the Chicago Workforce Investment
Council reports that neighborhoods on the South and West Sides
have the city’s highest rates of unemployment, as high
as 22 percent, and that was according to 2007 figures.
Let
that sink in. About one in five employable adults in some
of our neighborhoods does not have a job.
With
the Chicago Workforce Investment Council, which was created
nearly two years ago, the city has a body whose mission is
to ensure that we have a skilled and educated workforce to
sustain our businesses, economy and communities. The CWIC
accomplishes its mission by monitoring over $300 million of
public investment in education and workforce training, and
coordinating resources to ensure these investments support
the overall health of our local economy. I am honored to serve
on the Council’s board of directors, which is chaired
by Mayor Daley.
I
am also very proud of the members of Chicago United whose
CEOs have chosen to address the unemployment problem unique
to communities of color in the Chicago area by committing
to Chicago United’s Five Forward program. Launched two
years ago, Five Forward is a strategic initiative that enlists
the commitment of CEOs of mid- to large-sized corporations
in the Chicago metropolitan area to establish or expand business
relationships with five current and/or new local minority
firms. The initiative is designed to build a stronger regional
economy and the scale of minority businesses.
Five
Forward has been informed by empirical evidence indicating
that minority business enterprises disproportionately tend
to locate within and hire from areas with higher percentages
of minority residents. The enhanced flow of money to the region
improves the property tax base, increases employment and earnings,
ignites business activity and creates the multiplier effects
of local firms and residents spending dollars with other local
firms.
The
impact of Five Forward is measurable. The 80 minority firms
selected as business partners by large enterprises employ
more than 8,000 people. As these companies grow, they will
become even more nationally competitive; allowing them to
win national contracts and attract new dollars to the Chicago
region.
But
the Five Forward program isn’t a “one way street.”
The program does foster job growth in minority communities
by fostering successful, sustainable partnerships between
companies. The corporations also see benefits because their
CEOs are directly involved in the program.
“Five
Forward helps Health Care Service Corporation (HCSC), which
operates Blue Cross and Blue Shield of Illinois, identify
and establish business relationships with diverse suppliers
in Chicago,” says Monica Billinger, the company’s
manager of Corporate Supplier Diversity. “Five Forward
not only enhances our supplier diversity program, it gives
HCSC the opportunity to share information and best practices
with hundreds of companies in the area that also value the
principles of diversity and inclusion.”
Five
Forward made Aon’s supplier diversity program stronger
by engaging executives across the company. Even departments
that rely on professional services, including the General
Counsel’s office, have taken some ownership of the implementation
of the program by managing their own relationships with minority
firms.
Similarly,
the program helped to enrich Kraft Foods’ commitment
to supplier diversity by “creating robust business plans
that focused on growth opportunities for the diverse suppliers,”
says Yvonne Coffer, the company’s associate director
of supplier diversity.
As
we see regularly in the diversity and inclusion space, the
direct involvement of the chief executive officer is the vital
element necessary to create viable, sustainable initiatives.
To
the CEOs in the Chicago metropolitan area who are giving serious
thought to the steps they can take to ensure that Chicago
remains a metropolis where their business can thrive and compete
globally, I say consider a commitment to Five Forward.
Checking
the pulse of corporate diversity and inclusion
The
2010 Corporate Diversity Profile enters survey stage; participants
welcomed
A
good doctor-patient relationship can yield its best dividends
when the doctor is able to provide the patient a prescription
to maintain good health. And so it is with Chicago United,
the business community and the Chicago United Corporate
Diversity Profile. The Chicago United Corporate Diversity
Profile (CDP) is a bi-annual survey that measures racial
diversity specifically in the leadership ranks of corporations,
on corporate boards and in executive level management. It
serves as a benchmark for corporations to measure their progress
in this area, and it offers prescriptive measures that corporate
boards and C-level executives can take to better leverage
diversity and inclusion as strategic business imperatives
to increase their competitiveness.
The
surveys for the 2010 profile have recently been distributed.
Executives familiar with it call it a unique opportunity for
Chicago corporations to measure their progress in meeting
the demands of a workforce and a marketplace increasingly
influenced by people of color.
Warren
Smith, Ernst & Young Midwest People Team Leader presents
the findings of the 2008 Corporate Diversity Profile at Chicago
United’s Changing Color of Leadership Conference
“The
CDP is the only survey of its kind that effectively provides
a glimpse into Chicago corporations’ efforts around
diversity and inclusion,” said Warren Smith, Ernst &
Young Midwest People Team Leader. “The survey also helps
spotlight the Chicago business community’s progress
in diversity and inclusion as well as the areas of greatest
opportunity.
This current
state assessment is vital for Chicago’s businesses to
chart a path forward and respond to the evolving global economy.”
The past
three Profiles have found that corporations have grown increasingly
successful at diversity and inclusion within their employment
ranks. Furthermore, the survey response rate to the 2008 survey
increased 30% over the 2006.
The study
also consistently highlights the need to expand the pool of
minorities available for leadership positions which begins
by growing diverse talent in the leadership pipeline.
The
following chart illustrates that if the growth rate in minority
representation were to remain similar to that of the 2000-
2004 period, during which it increased by 1.1 percent annually,
then it would take 89 years for minorities to achieve equal
representation in executive/managerial ranks compared to workforce
representation.
Chart
taken from the Chicago United 2009 Corporate Diversity Profile
Since the
2008 Survey, the slow economy has taken a severe toll on all
industries. Even the companies most committed to diversity
and inclusion have seen an impact on their workforce as they’ve
been forced to respond to economic downturns with staff reductions
and other actions. For this reason, participation in the survey
remains important in order for corporations to be strengthened
by the analysis and prescriptive measures provided.
Past Profiles
have spotlighted the fact that retention of talent is critical
to the success of any business. Corporations have a responsibility
not only to their employees but also to their shareholders
to retain critical talent, and the survey has found a significant
gap in retention levels for diverse executive-level talent.
The turnover rate for diverse executives was 150% of their
non-minority counterparts, according to the 2008 Profile.
That gap has a direct impact on corporate expenses especially
considering that the estimated replacement cost of turnover
for an employee can be as much as 50% of annual total compensation.
“Fostering
an inclusive workplace where there is evidence of a dedication
to multicultural leadership development becomes a critical
component of many corporate growth strategies,” said
Melissa Donaldson, senior manager of inclusion practices at
CDW LLC. “The CDP survey is an important part of this
process as it provides a scorecard which aggregates evidence
of Chicago employers’ ability to retain high-performance,
diverse workforces and multicultural leadership teams.”
The future
of the workforce hasn’t changed despite the transforming
economy. In spite of current underemployment, worldwide workforce
shortages are still predicted in the near future. For US companies
to remain competitive in a global economy, executive pipelines
must be filled with managers of color if companies are to
attract the clients, business partners and other key stakeholders
of tomorrow.
Chicago
United salutes those companies that participate in the survey
because, in doing so, they demonstrate their position as thought
leaders that help all of Chicago remain an elite global marketplace.
They also help to shape the direction of diversity and inclusion
across America’s corporate landscape.
“Since
its inception, the CDP survey has expanded beyond just a census
report revealing the ethnic composition of top leaders within
Chicago’s largest public companies,” said Smith
of Ernst & Young. “Today, the survey also collects
valuable information regarding organizational cultures, the
range of investments devoted to diversity and inclusion, and
best practices in building an inclusive workplace.
Through
these insights, we can better understand how Chicago’s
businesses are cultivating a world-class community that draws
top talent from the global marketplace and continues to grow
and thrive.” The Profile is marked by high integrity
data collection, security and analysis by Ernst and Young.
In order
to learn more about participating in the survey, interested
companies should contact Chicago United.
Diversity
Officer Roundtables Cut to the Chase of the Business Case
for Inclusion
The
CEO of Xerox is an African-American woman. The chairman and
CEO of Kodak is a Hispanic man. The co-CEO of Motorola is
of Indian ancestry.
Given these high profile role models of corporate success,
many have begun to question whether the need for corporate
diversity and inclusion is obsolete. Chicago United members
armed with the results of the Corporate Diversity Profile
that surveys diversity in the upper echelons of Chicago’s
corporations are better informed.
For the last year, Chicago United’s Diversity Officer
Roundtable discussions have addressed the relevance of diversity
and other crucial issues. The invitation-only roundtable of
senior corporate diversity human resources practitioners has
explored best practices of leading corporations on their journey
towards competitiveness through enhanced diversity and inclusion.
The
Diversity Officer Roundtables were created to discuss specific
topics relevant to advancing corporate diversity in Chicago’s
business community and grew out of the call-to-action outlined
in the 2008 Corporate Diversity Profile. That call-to
action emphasized accountability, recruitment, retention,
and talent management.
The roundtable series, “The New Political and Economic
Climate and its Impact on Corporate Diversity,” addressed
the challenges that diversity practitioners face amid a society
with perceived post-racial elements and during challenging
economic times. Many diversity practitioners believe that
they are being challenged, yet again, to make the business
case for diversity. Roundtable participants agreed that diversity
and inclusion professionals must take a holistic approach
to crafting and implementing strategy that is aligned with
business imperatives versus its historical focus on workforce
or products and customers.
“A full cycle, profitable diversity strategy takes
into consideration business planning; leadership commitment;
defined goals and metrics; custom communications; and accountability
and aligned rewards,” said Anise Wiley-Little, chief
diversity officer, The Allstate Corporation. Diversity officers
from Chicago United’s member organizations and participating
companies shared their ideas on what it would take to advance
corporate diversity and inclusion. In the resulting report,
the roundtable participants proposed action steps such as
developing inclusive leadership, aligning rewards across the
organization and clarifying the knowledge and competencies
required of organization leaders to bring racial parity and
better overall employee engagement.
Chicago United members have benefitted from the 2009 Diversity
Officers Roundtables by being able to leave the series with
tangible, proven strategies and best practices that can strengthen
day-to-day operations in ways that translate to bottom line.
“The roundtables offer Harris Bank a forum to not only
share best practices, but also to think innovatively about
what we can do to ensure that our organization is at the forefront
of emerging trends in diversity and inclusion,” said
Marjorie Paddock, director of diversity and workplace equity,
Harris Bank.
Chicago United would like to extend special thanks to all
the attendees who contributed their experiences and insights
during the 2009 Diversity Officer Roundtables”
Making
the Connection: Chicago United’s BoardLink Helps Diversify
Chicago Boards
Now
more than ever, emerging executives of color need resources
that will put them on the trajectory to becoming Chicago’s
future leaders. Today’s talent pool is uniquely qualified
to advance business growth and contribute ideas that will
propel institutions and organizations. Chicago United is committed
to filling the pipeline with executives of color so both individuals
and organizations reap benefits.
A
resource at the fingertips of every business leader who is
assisting someone in navigating the corporate leadership terrain
is Chicago United’s BoardLink. BoardLink, a leadership
development resource, matches emerging leaders with business
and non-profit leadership opportunities. BoardLink is an electronic
referral source at www.chicago-united.org,
where leaders of color looking for board opportunities can
post their availability and non-profit organizations in search
of diverse board members can post their openings. Both groups
have access to search listings, share information, and make
a connection. BoardLink is a tool unlike any other designed
to benefit the city’s non-profit sector.
How
have individuals and non-profits benefited from this resource?
Nuria Fernandez, senior vice president, CH2M HILL, is now
a member of Chicago Children’s Museum’s Board
of Directors thanks to fellow Board Member Brendan Deely’s
familiarity with BoardLink.
“After
speaking to Gloria Castillo about ways to recruit diverse,
qualified talent for the Chicago Children’s Museum Board,
she informed me about BoardLink. The invaluable resource aided
me in a filling a position in our organization,” said
Deely, president and CEO of L&W Supply Co.
“There
are many qualified executives who can benefit from this valuable
resource just as I have,” said Nuria Fernandez. “In
my role on Chicago Children’s Museum’s Board of
Directors, I am able to lend my expertise and ideas which
contribute to improving the quality of educational and family
learning resources for Chicago’s children.”
Are you
mentoring a young executive of color? Are you interested in
ways to increase his or her visibility among Chicago’s
nonprofit community and board experience? If so, consider
posting your protégé’s availability on
BoardLink so that non-profit organizations can consider him
or her as a qualified candidate for a leadership position
today. Visit www.chicago-united.org to learn more.
BoardLink
is funded in part by The Chicago Community Trust and the Sara
Lee Foundation.
Chicago
United Announces New Board Leadership
McDonald's
senior executive is new board chairman
Chicago
United, an advocacy organization made up of racially diverse
CEOs and executive level management who promote multiracial
leadership development in corporate governance, the leadership
pipeline and business partnerships, today announced new officers
and members of its board of directors.
Doug
Goare, senior vice president, Worldwide
Supply Chain for McDonald’s Corporation and
incoming chairman Chicago United Board
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Chicago
United members elected Doug Goare, senior vice president,
Worldwide Supply Chain for McDonald’s Corporation as
the new board chairman. Gordon Werkema, first vice president
and COO of the Federal Reserve Bank of Chicago, Kip Kelley,
resident managing director of Aon Risk Services, Inc. of Illinois
and Olga Carmargo, senior vice president of Mesirow Financial,
are also new board members.
The
new board will set the direction for Chicago United as it
helps the business community expand opportunities for minority-owned
businesses and recommends strategies and tactics to increase
competitiveness through improved diversity and inclusion.
The new board leadership takes the helm at a time when regional
job growth is a high priority for chief executive officers,
elected officials and other leaders throughout the Chicago
area.
“Chicago
United’s efforts to assist the business
community and the entire city are as vital today as they were
40 years ago,” said Goare. “I’m committed
to Chicago United’s continued advocacy efforts because
the future needs of the marketplace and workplace dictate
that businesses fully leverage diversity and inclusion initiatives.”
This
year, Chicago United will present its latest Corporate
Diversity Profile, which measures the progress of diversity
and inclusion in the ranks of Chicago’s senior corporate
leadership. It will also expand its Five Forward plan, a blueprint
for regional economic growth that calls for creation of minority-owned
businesses of scale.
“With
the continued need for job creation and business expansion,
most notably in Hispanic and African-American communities,
Chicago United maintains its role as a leading advocate for
diversity and inclusion,” said Chicago United President
Gloria Castillo. “I’m very pleased to work with
Doug and the other new members of the board to continue our
track record of success in this turbulent time.”
Chicago
United Annual Meeting Features Mayor Daley, Presents Bridge
Advocate Jim Tyree and Leaders Council Awards
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Chicago
United held its annual member meeting on March 11. The
event opened with candid remarks by Mayor Daley. |
In addition
to swearing in the 2010 Board
of Directors, Chicago United awarded the Leaders Council
members who’s efforts were extraordinary in carrying
out the strategy and executing organization programs and initiatives.
Douglas
M. Goare (left), Senior Vice President Worldwide Supply Chain
McDonald’s Corporation, (Incoming) Chairman, Chicago
United Board of Directors presented the 2009 Leaders awards
to Kevin B. Brookins, Vice President, Distribution System
Operations, ComEd, An Exelon Company; Jaclene Robinson-Ivy,
Vice President, Public Affairs and Government Relations, Northern
Trust; Jeremiah Boyle, Community Affairs Program Director
Federal Reserve Bank of Chicago; Albert Grace, President,
Loop Capital; and Brad L. Ballast, Managing Director, Community
Affairs, Harris Bank; along with James H. Skogsberg, President
& CEO, Advocate Health Care, (outgoing) Chairman, Chicago
United Board of Directors at 2010 Chicago United Annual Member
Meeting on March 11, 2009.
Douglas
M. Goare (left), Senior Vice President Worldwide Supply
Chain McDonald’s Corporation, (Incoming) Chairman,
Chicago United Board of Directors presents James C.
Tyree (right), Chairman and Chief Executive Officer,
Mesirow Financial with the 2009 Chicago United Bridge
Advocate Award for his commitment to the importance
of diversity and inclusion to our country’s economy
and global competitiveness. Jim also served as chairman
of the Chicago United Economic Task Force where his
vision created a commitment to growing minority businesses
that has impacted 80 local minority-owned firms to date.
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Members
in the News:
Monica
Walker, chief executive officer & chief investment officer
– Equity, Holland Capital Management and Chicago United
member, was named as one of Black Enterprise Magazine’s
75 Most Powerful Women in Business. http://www.blackenterprise.com/top-75-women/
Chicago
United Adds New Members
The following
organizations became members of Chicago United in 2010 and
are among Chicago's most prominent companies who share in
the commitment of creating a stronger social and economic
climate for everyone in Chicago:
•
Central City Productions Inc.
• Gladys R. Wilson & Associates
Chicago
United is an advocacy organization made up of racially diverse
CEOs and executive level management who increase economic
opportunity for all races by promoting multiracial leadership
development in corporate governance, the leadership pipeline
and business partnerships. Through a fierce brand of constructive
conversation, Chicago United fosters inclusion and provides
an opportunity for senior executives from all racial and ethnic
groups to learn from one another, confront and break down
racial barriers and achieve shared objectives.
Chicago
United's members range from emerging businesses to Fortune
500 corporations, representing some of the Chicago’s
brightest leaders. These companies have a shared investment
in the city and in building sustainable diversity in the workforce
and leadership. Members are among the nation’s thought
leaders in developing sustainable diversity in a way that
strengthens the corporate community, the broader economy and
society as a whole.
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