Managing Diversity in Latin America Sumaq Summit 2005

Federico Castellanos VP Human Resources IBM Corporation

2005 IBM Corporation

LA Diversity Strategy

Why Diversity in LA?

A Business Imperative
To ensure we work together to attract, develop and retain the best talent in our markets To reinforce the linkage between the workplace and marketplace through our initiatives To mirror our markets & society To position IBM as market leader in our region

Presentation Title | Presentation Subtitle | Confidential

2005 IBM Corporation

LA Diversity Strategy

IBM Latin America

MEXICO BRAZIL

SSA: 9 COUNTRIES

3 LANGUAGES:
Spanish Portuguese English

Presentation Title | Presentation Subtitle | Confidential

2005 IBM Corporation

LA Diversity Strategy

In Latin America, our Diversity Strategy is Based On

The IBM Global Workforce Diversity Imperatives

Latin America countries specific: culture, social environment, demographics, marketplace practices
Local Labor Law requirements Local Government Priorities
Presentation Title | Presentation Subtitle | Confidential 2005 IBM Corporation

LA Diversity Strategy

Our Constituencies

WOMEN GLBT PEOPLE WITH DISABILITY AFRICAN BRAZILIANS (Only in Brazil)

Presentation Title | Presentation Subtitle | Confidential

2005 IBM Corporation

LA Diversity Strategy

Key players to succeed in the strategy:

Managers: understand, support, walk the talk Executives : sponsor Initiatives and always link them to the business Communication Team: support every Initiative though clear communications campaigns, Internally and externally . Learning : support the Initiatives, through aligned training programs for managers and employees Diversity Network Groups: Employee Networks from specific constituencies which role is to identify career advancement barriers and propose to the senior management team new Initiatives to minimize them. They are official groups, can make use of the company resources and act as an effective channel to listen to employees and propose solutions to advance. Diversity Councils: composed of senior managers / executives. Act as sponsors of the Initiatives proposed by the DNG's , assess expected results and it's linkage to the business, define priorities, assign resources.
Presentation Title | Presentation Subtitle | Confidential 2005 IBM Corporation

LA Diversity Strategy

Global Workforce Diversity Imperatives

Global Marketplace Advancement of Women Diversity of Leadership Team Cultural Awareness / Acceptance Ethnic Minorities Multi-Lingualism Individual Differences Integration of People with Disabilities & Gay, Lesbian, Bisexual, Transgender Employees Into the Workplace and Marketplace Work / Life Balance Culture Flexibility Dependent Care
Presentation Title | Presentation Subtitle | Confidential 2005 IBM Corporation

LA Diversity Strategy

Global Marketplace
View every citizen in every country as a potential customer and be able to communicate with a diverse population
Key Actions Suppliers & BP's: Increase diversity focus/spend; Continue to drive our commitment to diverse suppliers by selling to a diverse customer base, through diverse channels, and purchasing from a diverse supplier base (e.g., Women Owned Businesses, minorities, People with Disabilities, GLBT) Customers: Work with key customers to help them promote Diversity in their own companies. Government: Work with our governments to influence Diversity Initiatives in our countries and to promote equal opportunity. Talent: Attract, motivate, and retain the best talent in the industry with a focus on Diversity , by: working with the Universities promoting Diversity in our recruitment events Aligning our hiring strategy with Diversity Initiatives

Presentation Title | Presentation Subtitle | Confidential

2005 IBM Corporation

LA Diversity Strategy

Advancement of Women
Continue to improve the representation of women, across the organization but specially in leadership positions .
Continuously feed women pipeline Women's Leadership Conferences Mentoring Programs Focus on pipeline to ensure good representation in key Talent development programs Promote networking, internally & externally Promote a Regional Women's Council Participate in external women councils & networks, share and learn best practices Identify country specific barriers though Diversity Network groups and define specific plans to minimize them

Presentation Title | Presentation Subtitle | Confidential

2005 IBM Corporation

LA Diversity Strategy

Diversity of The Leadership team

Improve Diversity of management team by having better representation of minority groups.
Key Actions
Measure representation of minorities in leadership positions compared with representation in total population Define specific action plans for under-represented groups by country Strengthen your leaders' pipeline with diverse representation Ensure mentors and meaningful development plans are in place and completed for diverse high potential employees Conduct roundtables with Executives for high potential, diverse employees Focus on Diverse employees representation in Leadership development programs. ( Leading @ IBM)

Presentation Title | Presentation Subtitle | Confidential

2005 IBM Corporation

LA Diversity Strategy

Cultural Awareness and acceptance

Increase cultural acceptance and value differences to build a stronger IBM team
Key Actions Increase cultural awareness by incorporating training materials as part of Management Development and New Employee Training Reinforce an environment that respects and values differences and maximizes business relationships in constituency markets by promoting an understanding of Diversity Network Groups: Women GLBT People with Disabilities Afro Brazilian Ensure all business activities such as hiring, training, promotion, transfers, compensation, separations, and IBM sponsored social and recreational activities are conducted without regard to race, color, religion, gender, gender identity or expression, sexual orientation, national origin, disability, or age. Ensure a working environment that is free of all forms of harassment Training program: "Shades of Blue"
Presentation Title | Presentation Subtitle | Confidential 2005 IBM Corporation

LA Diversity Strategy

Work / Life balance & Flexibility

Embrace, promote, support workplace flexibility and dependent care initiatives to increase the benefits to IBM and to employees
Key Actions Global Work LIfe Fund projects focus on: Child care Elder Care Homework support Back up care Summer camps Flexible Work Options: Compress work week Part Time Leave of Absence Individual Work Schedule Telecommuting Work at home post natal for men Work /Life balance survey conducted every 4 years to gather input and design initiatives for identified issues Promote a Flexibly CULTURE through Management training & Communication campaign to improve awareness.

Presentation Title | Presentation Subtitle | Confidential

2005 IBM Corporation

LA Diversity Strategy

Communications

Presentation Title | Presentation Subtitle | Confidential

2005 IBM Corporation

LA Diversity Strategy

Critical Success Factors to Manage Diversity in LA

Approach is Evolution not Revolution Promote Diversity at the workplace and at the same time, be sensitive and respect local social & cultural values Diversity initiatives should always be aligned to region / country objectives, policies, laws and business strategies Active participation of Country executive sponsors DNG's playing a very Proactive role HR as a facilitator, advisors and promoter of Diversity Programs Promote the appropriate CLIMATE to embrace Diversity Initiatives through a solid communication strategy across LA

Presentation Title | Presentation Subtitle | Confidential

2005 IBM Corporation

LA Diversity Strategy

Some advice to share

Always keep in mind: Diversity is a Business Imperative NOT an HR program First: Understand your demographics / Constituencies in the country and within the company Design Initiatives that "make sense" to the business and to your population, do not try to replicate exactly what other geo's do When introducing new projects, try to pilot them first in one or two countries Always maintain your management team informed about new Initiatives and Why the company wants to peruse them Involve your senior executive team though a diversity council

Valuing Diversity:
Presentation Title | Presentation Subtitle | Confidential

An Ongoing Commitment
2005 IBM Corporation

LA Diversity Strategy

Latin America Diversity Recognitions

March 2005 IBM Brazil received "Camelia of Freedom" award from "Center of Coordination of Marginalized Populations", in recognition of IBM's effective actions to develop the black population.

March 2005 For the second time, IBM Mexico was awarded with "Diversity Best Practices in the Marketplace" by Great Place to Work Institute. First recognition was awarded in 2003.

Presentation Title | Presentation Subtitle | Confidential

2005 IBM Corporation

LA Diversity Strategy

Latin America Diversity Recognitions

December 2004 IBM in Per listed among the best 25 companies of Peru to work for, according to Great Place to Work Institute Per and El Comercio annual labor climate study.

November 2004 IBM Mexico was awarded on behalf of Concamin, for the 2nd time, with the Ethics and Values Award in the industry recognizing its practices and management based on values, and its human resources programs related to Diversity.
October 2004 IBM Argentina was chosen as one of the best companies to work for in the country (number 3 top employer) in the survey held by Argentina's "Apertura Magazine" , the top business publication. September 2004 Brazil's "InfoExame magazine / Voc SA magazine," names IBM as one of the 150 best companies to work for in Brazil.

Presentation Title | Presentation Subtitle | Confidential

2005 IBM Corporation

LA Diversity Strategy

Latin America Diversity Recognitions

September 2004 Brazil's "Ethos Institute," (a well-known ethics institute) names IBM as one of the 10 best companies that encourage women to work in Brazil. July 2004 Cecilia Perez, Minister for Sernam, which is the Secretariat for Women's Ministry, publicly recognizes IBM as an example for Family Shared Responsibility during the press announcement for the Post Natal for Men program in IBMChile; a national breakthrough story. June 2004 CCR (Corporate Community Relations) received a homage from the USAID for its effort in promoting basic education in Brazil.

Presentation Title | Presentation Subtitle | Confidential

2005 IBM Corporation

LA Diversity Strategy

Latin America Diversity Recognitions

November 2003 Afrobras invited Theo Fletcher to receive the AfroBrazilian Civic Honorary Medal (most important recognition in Brazil for diversity initiatives for Black people) - firsttime award received by Theo Fletcher, Vice-president, Global Procurement Operations May 2003 Chile's Ya magazine, names IBM one of the five best companies for working mothers (first-time award accepted by Luis Siles, CGM) April 2003 "Expansion Magazine" and the Great Place to Work Institute name IBM as one of the best companies to work for in Mexico and IBM Mexico is the only company to receive a special award for its diversity programs (first-time award received by Angelica Galve, HR executive) March 2003 Brazil's "InfoExame," names IBM one of the top IT companies to work for in Brazil (first-time award was published in magazine)
Presentation Title | Presentation Subtitle | Confidential 2005 IBM Corporation