Case Study on "Best Foods"

Case Study 7 pages (1824 words) Sources: 1

[EXCERPT] . . . .

Foods

summarize the key diversity challenges facing the Best Foods Company as a multinational headquarters with worldwide subsidiaries.

There are three key diversity challenges facing the Best Foods Company:

The company operates in 60 countries and sells in 110 countries. Best Foods is truly a global company and it has chosen to use a decentralized management structure. Managers at Best Foods live and work in countries with distinct cultural beliefs of a woman's role in society. This necessitates the need for headquarters to learn and understand that each manager will have different attitudes about women in the workplace. By acknowledging the different mindsets, the company can realistically expect that adoption of the diversity program's focused on women to move quickly in some locales and much slower in others.

Because of past practices, very few women have been on the career path that leads to executive level positions. Best Foods top 150 senior managers are predominantly older males, with only one woman as a general manager. The Senior Management Development Program has 15 females and 249 male participants. A special effort will be needed to increase the skill levels and job experience of all women in the company in order to increase the pool of women for executive positions.

'3) With their headquarters located in the United States, the team working on the diversity initiative will need to maintain a global perspective; two -- thirds of their employees are outside of the U.S., sixty percent of the company's revenues comes from global markets and future growth is forecasted to come from Africa, Asia, Eastern Europe, the Middle East, Latin America and the countries of the former Soviet Union.

Question 2: What actions have been keys to making the diversity initiative a success so far? Briefly list the steps taken by the company and the impact that each had on diversity and/or the overall organizational climate.

Year

Action

Impact

1989

Created a diversity function

Focus was on EEO

Prior to 1995

Established the Diversity Advisory Council (DAC)

Engaged the CEO and 14 senior executives from the U.S., agreed to a common diversity training for U.S. senior managers

1995

Hired Brody as the Director of Diversity and Development

Brody worked with DAC to create a diversity vision and definition

1997

Conducted a benchmarking and best-practice study

DAC determines diversity to be an important factor in the company's competitive strategy

Implemented the annual employee survey and a global analysis of the status female within the company and on the board of directors

Quantified the diversity problem of females in or training for executive level positions. The survey also identified generational issues between young and older employees

Brody launches Cultural Connections and Sponsoring Our Success

Created diversity awareness and educated all U.S. employees

CEO sends letter to all employees

Shoemates's letter on the "state of diversity" elevated the issue of diversity to all employees, in all divisions and in all locations. Diversity is positioned as an important strategic initiative that will make the company more competitive. Diversity is included in the Balance Scorecard and Shoemate will be holding the divisional presidents accountable with an annual diversity review.

1998

CEO send letter to all salaried North American employees

Shoemate lays out four long-term objectives and how success will be measured for each one. He also reinforces the role of diversity as a company strategy.

The Corporate Strategy Council (CSC) approves Brody's plan for a Women's Global Leadership Forum

The attendee identification process engages division president in access the female talent on their teams. Some negative reactions are received, providing a deeper look at male employees attitudes towards women.

Brody issues a survey to the corporate officers and the senior executives who will be attending the World Team meeting

This information will serve as a motivational tool for the attendees of the WorldTeam meeting. This may be positioning Shoemate to be able to mandate that specific diversity measures be added to all division balance scorecards

Women's Global Leadership Forum is held

Positive feedback from all attendees including CEO and members of the DAC and the CSC

Question 3: Do you agree with Brody's idea to hold the Forum? Why or why not? Can you suggest an alternative that would accomplish the same thing?

I believe Brody's idea to hold the Forum was a good one for several reasons. It required the senior leadership team to evaluate and rank their female managers. For the senior managers who attended, it created awareness of the female manager's experiences of working at Best Foods. Women from all over the global were in attendance, which, created more cultural awareness amongst the women and gave the non-U.S. women a chance to present to the senior executives. Most importantly, the forum resulted in a set of tactics for both the company and the women to implement, thus moving beyond words and into actions that will help to solidify diversity as a competitive strategy throughout the whole company.

Question 4: What challenges and problems do Brody and Shoemate face in getting their diversity strategy implemented?

The challenge for Brody and Shoemate will be to change the attitudes of Best Foods employees -- how they see women in the world of work, how they define diversity and the value they place on diversity. These challenges are as diverse as the diversity of the company; generation, gender and geography differences will shape an employee's views and will influence whether or not an employee will be open to the diversity initiatives.

A second challenge will be the decentralized corporate structure. Shoemate is very aware of the need for buy-in from the managers throughout the company. Currently, the divisional presidents have been asked to develop their own plans for diversity and to include it as part of their balance scorecard. At the World Team meeting, which meets every third year, Shoemate would be able to announce specific goals to be added to the Corporate Balanced Scorecard. This would ensure that each division is addressing specific aspects of diversity such as training mid-level for mid-level female managers.

Question 5: How do you feel the Forum and/or other diversity initiatives might be perceived by male employees? By other groups of employees?

Based on the information shared in the case, I think there will be a variety of reactions. Some men will react like the senior manager who, wish his female subordinate to "Have a good time at the koffee-klatch." Men with this type of attitude will be a challenge for Brody and Shoemate. While Brody and Shoemate will probably be unsuccessful in changing their attitude, the linking of an individual's pay to diversity goals may change their behavior.

A second reaction may come from the younger generation of male managers who seek a better work/life balance. These men could see the forum and the diversity initiatives as a good thing. Women's struggle with work/life issues are similar to their own -- needing flexibility in what hours they work, where they work and to have their performance evaluations based on their results rather than the number of hours spent in the office.

A third reaction may come from those who cannot see the link between diversity and competitive strategy. To overcome this belief, and to reinforce it with the other employees, who support the idea, the CEO and the divisional presidents should continue their positive communications coupled with the organizational results. Providing examples and case studies of initiatives which have worked out well, may spark a manager's interest leading to establishing their own personal diversity goals. These communications could also emphasis the benefits accrued by all employees because of the diversity efforts.

Additionally, the women of the company may have mixed reactions to the forum and other initiatives. Some women may want the women's development program integrated into existing programs like the high potential managers program. These women may feel that highlighting them in a separate program may actually confirm to people that women aren't ready to be senior level management. I believe the company should offer training to both male and female middle managers and should deal with the life/work issues for both men and women.

Another group that may not perceive diversity as a strategic issue are the managers located outside the United States. They may see this as interference from headquarters and it may not be as big an issue in their countries as it is in the U.S. Like the men who see women as subordinates only, linking pay to performance of their diversity plans.

Question 6: Describe the role of leadership, communication, and decision making in this case. How does each influence the organization's ability to adapt to change and foster diversity?

Brody is very lucky to have a senior level manager and the CEO who believe in the strategic value of diversity. This alignment and support is necessary for the initiative to be given serious consideration by others in the company. Shoemate has issued two letters to the company on the subject of diversity… READ MORE

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