Creating an environment for global diversity: global diversity in the workplace is not just a human resources issue, but a business strategy that embraces many elements. Here's how 10 multinationals are successfully managing the process.

• Author: Vallario, Cynthia Waller
• Position: Global diversity

It's a no-brainer for a senior executive to express that his or her company's goal is to hire and retain the best individuals from all backgrounds. But just saying so doesn't get the job done. Ideally, organizations must create relationships that respect mutual interests and maintain a culture of inclusion, expressed internally through workplace diversity and externally through partnerships.

In fact, the most successful firms are already adept at using diversity and cultural differences as tools to contribute to their bottom line rather than as obstacles.

"It's not simply learning the right way to deliver your business card at a meeting in Tokyo," says Patricia Digh, consultant, author, professor and trainer who has worked in the areas of globalization and diversity for more than 20 years.

Global diversity in the workplace is not just a human resources (HR) issue, but a business strategy that embraces many elements. It is a mix of people skills and cultures that enable a range of viewpoints to challenge traditional thinking. Indeed, the best ideas for new products emerge from innovative connections between participants from different fields and based on collaboration. The 21st century reality is that businesses are increasingly global, be it their workforce, suppliers or customers.

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There is a great deal involved in creating an environment of broader metrics that links a company's diversity program to effective business outcomes, beyond the standard HR strategies of training and educational evaluations, customer surveys, accountability assessments and the reduction of regulatory/EEOC (Equal Employment Opportunity Commission) complaints

"One of the problems with measuring intangible assets is that they are not always quantifiable or are difficult to gauge," says Digh. "Traditional measures that examine return on investment," she adds, "typically took diversity right out of the equation."

New Model Measures Intangibles

In response to the need for better measurement of diversity results, Digh notes companies have developed systems that can help to calculate the business rationale for diversity efforts and their impact on the bottom line. Within the framework of commitment from the top and a company-wide appreciation and acceptance of differences, one suggested approach is to create a new balance sheet that examines and accounts for human contributions to profitability, financial performance and productivity.

She cites the example of Skandia Corp. A financial services firm headquartered in Sweden, Skandia traces its roots to 1855 and employs approximately 5,600 people across 20 countries, including targeted markets in Latin America and Asia. Skandia realized that its traditional profit-and-loss statements reflected the past and measured tangible assets, while not addressing and measuring the future potential of...