Contents

How to Use This Toolkit

Overview

Chapter One:

Introduction to the Diversity ROI Process

Introduction

What do we mean when we say "diversity"?

What sites must be visited along the measurement journey?

Hubbard Diversity ROI Analysis Model

Step 1: Know What You Want To Know

Step 2: Collect Data And Analyze It

Step 3: Isolate Diversity's Contribution

Step 4: Convert The Contribution To Money

Step 5: Calculate the Costs and Benefits

Calculating the Diversity Initiative Costs

Calculating the Diversity Return on Investment

Identifying Intangible Benefits

Step 6: Report It to Others

Step 7: Track and Assess Progress

Your Challenge

Chapter Two:

Step 1 - Know What You Want To Know

Introduction

Identify a Business Problem Related to the Organization’s Strategy

Definitions

How to Check Organizational Measures

What to Do If You Can’t Affect The Organization’s Measures

Application Exercise

How to Check Your Work

Organizational Measures Worksheet

Formulate Research Questions

Begin with the End in Mind -- Your Report

Create the Diversity Measurement Study Objectives

Where Do Diversity Measurement Study Objectives Originate?

Chapter Three:

Step 2 - Prepare and Collect Data

Introduction

Identify Data Collection Measurement Areas

Figuring Out What to Measure that is Value-Added

Definitions:

Examples of Value-added Results

Practice Exercise

How to Check Your Work

Diversity Value-added Results Method

Example of diversity results which support organizational goals

Reviewing Historical Data

Using Current Measures

Convert Current Measures to Usable Ones

Develop A Data Collection Plan for Performance Data

Developing New Measures

Typical Questions When Creating New Measures

Application Exercise

Your Diversity Initiative’s Value-added Results which Support Organizational Measures

How to Check Your Work

Conducting Interviews

Types of Interviews

Interview Guidelines

Conduct Focus Groups

Guidelines for Focus Groups

Analyzing Your Diversity Change Efforts using the Hubbard Diversity 9-S Framework

Shared Vision

Shared Values

Standards

Strategy

Structure

Systems

Skills

Style

Staff

Checklist of Typical Survey Tasks

Checklist of Typical Survey Tasks

Chapter Four:

Step 3 - Isolate Diversity’s Contribution

Introduction

A Common Diversity Embarrassment

Diversity and the Double Standard Subterfuge

Preliminary Considerations

Diversity Value Chain Impact

Identifying Other Factors: A First Step

Participant Estimates of Diversity’s Impact

Example of a Participant’s Estimation

Typical Questions to Answer

Diversity Impact Questions

Supervisor Estimates of Diversity’s Impact

Typical Questions to Ask Supervisors

Management Estimate of Diversity Impact

Considerations When Selecting Isolation Strategies

Application Exercise

Many DROI Initiative Will Generate Large Returns

Chapter Five:

Step 4 – Convert the Contribution to Money

Introduction

Identifying the Hard and Soft Data Contained in the Diversity Contribution

Basic Steps to Convert Data

Strategies for Converting Data to Monetary Values

Focus on a Unit of Improvement

Determine a Value of Each Unit

Calculate the Change in Performance Data

Determine an Annual Amount for the Change

Calculate the Annual Value of the Improvement

Strategy: Converting Output Data to Contribution

Strategy: Calculating the Cost of Quality

Strategy: Converting Employee Time

Strategy: Using Historical Costs

Strategy: Using Internal and External Experts’ Input

Selecting the Appropriate Strategy

Accuracy and Credibility of the Data

The Credibility Problem

How the Credibility of Data is Influenced

Influence Factors

Making Adjustments

Application Exercise

Step 5 – Calculate the Costs, Benefits and DROI

Introduction

Strategies for Accumulating and Calculating Costs

Importance of Costs

The Impact of Reporting Costs Without Benefits

Typical Cost Categories

Diversity Initiative Cost Categories

Prorated vs. Direct Costs

Benefits Factor

Needs Assessment

Design and Development Costs

Acquisition Costs

Delivery Costs

Evaluation

Overhead

Defining Return on Investment

DROI Fundamentals

Annualized Values

Benefit/Cost Ratio

The DROI Formula

Other ROI Methods

Payback Period

Discounted Cash Flow

Internal Rate of Return

Utility Analysis

Calculating the Consequences of Not Implementing A Diversity Initiative

DROI Issues to Consider

DROI Complexity

Cautions When Using DROI

Identifying and Incorporating Intangible Measures

Importance of Recognizing Intangible Measures in Diversity

Identification of Measures

Application Exercise

Chapter Seven:

Step 6 – Report It to Others

Introduction

General Reporting Principles

Key Questions to Answer when Selecting the Message

Developing the Evaluation Report

Management Summary

Background Information

Evaluation Strategy

Data Collection, Analysis and Performance Tracking

Diversity Initiative Costs and Benefits

Initiative Results and DROI Calculations

Conclusions and Recommendations

Communicating Results to a Variety of Audiences

Other Means to Communicate Diversity Results

Application Exercise

Reporting Your Results Should Not Be An Afterthought

Chapter Eight:

Step 7 – Track and Assess Progress

Introduction

What Does a Good Tracking System Look Like?

Monitoring Your DROI Initiative’s Progress

MetricLINK^tm an Automated Diversity Measurement System for Tracking Improved Performance

Survey Pro^tm: A Timesaving Survey Development Tool

Other Measurement Software Options

Institutionalizing Your Diversity Measurement System

Application Exercise

Importance of Institutionalizing Diversity Measurement and Tracking

Chapter Nine:

Building a Financial Performance Mindset

Introduction

Building a Financial Mindset Using the Diversity Management Contribution Model

Prerequisites

A Causal Model for Understanding a Diversity Management Climate

What is Organizational Climate and Diversity Climate?

Why is Diversity Climate Important?

Causal Model of a Diversity Management Climate, Performance and Results

Implementation Issues

Preparing the Diversity Staff and Others To Meet the Challenge

Removing Obstacles

Application Exercise

DROI is a Critical Link For Success

Index

References

Additional Diversity Measurement Resources Available From Hubbard & Hubbard, Inc.

Diversity Measurement and Productivity Series Developed By Dr. Edward E. Hubbard

Additional Books by Dr. Edward E. Hubbard

Software Products

Hubbard & Hubbard, Inc. Diversity Measurement & Productivity Institute (DM&P) Workshops

Measurement Resources (Books, Video, Audio)

Books

Dr. Hubbard on Video

Dr. Hubbard on Audio

Diversity Measurement Instrumentation

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