DENNYS: A GRAND SLAM SUCCESS STORY

DEVIKA ATREE (SMBA11040)

DIVERSITY:The term diversity is used to describe and to acknowledge the differences that exist within humanity in terms of the traditional strands, and at the same time to embrace and celebrate that difference in ways that add value to outcomes for young people. The concept of diversity is much broader than addressing issues around the traditional strands of race, gender, disability and sexual orientation. 1. What are the key points to Dennys turnaround with regard to diversity? Intensive diversity programme was the first step being taken by Dennys and its parent company Advantica. . Everyone, from the board of directors to every cook, hostess, and server, was required to participate in varying levels of training. Servers and cooks, for example, were required to watch a video on diversity, while the board of directors received a full day of training. Restaurant managers received the most extensive training: two nonconsecutive days of training lasting seven to nine hours each. The training covered diversity awareness and diversity skills. At the peak of its implementation, there were more than 100 certified diversity trainers on staff. That number has now been reduced to roughly sixty-six trainers to handle new hires throughout the system. Then the company looked at its structureits people systems, as Hood-Phillips calls them: the way Dennys hired, fired, developed, and promoted people. After analyzing their policies, Dennys realized they had unwittingly created a system wide diversity vacuum.

In Dennys case, they found that their recruiting practices were partly to blame. Dennys executive recruitment firms had had contracts with the company for ten to twenty years. Many of these companies had their own diversity issues as a result of their network base.

2. What lessons can other companies learn from Dennys experience? All cultures operate in their own unique ways and it comes with certain limitations to the extent to which a particular culture can reach out to people of different cultural backgrounds.

All of us operate in our own cultural silos, said Hood-Phillips In Dennys case, they analyzed their policies and found that their

recruiting practices were partly to blame. They first had to seek the culture of the company through intensive diversity training which covered diversity awareness and various skills. Companies should learn from Dennys the vital role that diversity plays in an organisation. It helps companies achieve its various goals and missions by getting together all the available resources. Various workshops and training programs, like Dennys intensive diversity programme, should be undertaken by the companies for the employees belonging to different cultural ties. Dennys, for instance, did not relegate diversity issues to the sole realm of human resources. Diversity shares the stage equally with other divisions of the company, and sufficient resources are dedicated to diversity issues and interests to maintain the positive momentum gained in the last several years. For instance, Advantica has pledged to donate $1 million a year to human rights or civil rights organizations. 3. What is the likely impact of diversity on the companys performance?

Denny's believed that their strength derived from the diversity of the customers, employees, suppliers, franchisees and other partners across the country.

To them, creating an inclusive company that reflects their diverse customer base was good business and it had a significant, positive impact in the communities they served. Their commitment to diversity over the years earned them a number of national awards and recognition.

One of the primary channels they used to significantly grow the company's diversity base was the Supplier Diversity Program. As a central referral service, it provides the essential link between diverse suppliers and corporate units to ensure that qualified minority suppliers have an equal opportunity to compete and participate in the procurement process. Through this program, they were able to support minority suppliers in other key areas, such as mentoring, community outreach, and second-tier development.

Previously, there was no value placed on diversity, and no incentive for managers to hire diverse candidates. So the company instituted a process that evaluated ten core competencies, one of which was valuing and managing diversity. In addition, the company tied 25 percent of senior managements bonuses to the number of women and minorities in their divisions. As a result, approximately 50 percent of Advanticas 46,000 employees are minorities, and not just in entry-level positions; a full 32 percent of its supervisory positions are held by minorities. Advantica has also made huge strides in supplier diversity. In 1992, none of its supplier contracts were held by minorities. Not one. This year, the companys spending with minority suppliers reached $100 million, which amounts to 17 percent of the companys supplier purchases. To put this in perspective, this is three to four times the level required by the National Minority Supplier Development Council to reach World Class supplier diversity status. The company had succeeded in recruiting only one African-American franchisee in 1993. Merit increases of franchise sales managers were tied to their ability to recruit and retain minority franchisees. In 2002, the number of African-American franchisees has jumped to sixty-four. In addition, Dennys did not relegate diversity issues to the sole realm of human resources. For instance, Advantica has pledged to donate $1 million a year to human rights or civil rights organizations. This year, the company will contribute to the National Civil Rights Museum in Memphis through its Reignite the Dream Campaign. For every Dennys Grand Slam breakfast sold, Dennys will donate $1 to the Reignite the Dream Fund. Started in January, the company had already raised more than $400,000 toward its $1 million goal.