WEBVTT - Tracking Diversity Progress in Corporate Spaces

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<v Speaker 1>This is Bloomberg Business Week with Carol Masser and Bloomberg

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<v Speaker 1>Quick Takes. Tim Stinovic from Bloomberg Radio. Been looking forward

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<v Speaker 1>to this all week. Uh, and first of all, I

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<v Speaker 1>just want to kind of set the stage. We've got

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<v Speaker 1>some news this week on the diversity front. It was

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<v Speaker 1>announced at Rosalind Brewer she's going to take over a

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<v Speaker 1>CEO of Walgreen's Boots Alliance. That's gonna happen in March,

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<v Speaker 1>making the three largest U S pharmacy chains now led

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<v Speaker 1>by women for the first time. So we have definitely

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<v Speaker 1>seen some progress when it comes to women in the

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<v Speaker 1>c suite and at the top of companies, but they're

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<v Speaker 1>still making up less than six percent of CEOs of

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<v Speaker 1>S and P five hundred companies. Let's get into this um.

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<v Speaker 1>Delighted to have with us Kara Helander. She's managing director

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<v Speaker 1>and chief Inclusion and Diversity Officer over at the Carlisle

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<v Speaker 1>Group based in Washington, and that's where she joins us

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<v Speaker 1>on the phone. Also with us as Bloomberg News Finance

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<v Speaker 1>and Wall Street reporter Shnelli Boss, She's joining us in

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<v Speaker 1>our Interactive Brokers studio. So car is so great to

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<v Speaker 1>have you here with me and Shnally. I know you

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<v Speaker 1>guys have talked a lot over the past, but let's

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<v Speaker 1>just kick it off with where are we when it

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<v Speaker 1>comes to diversity and inclusion in the workplace? Have we

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<v Speaker 1>made significant progress in your view? You know? Carol, thank

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<v Speaker 1>you first of all. Um, delightful to be here, but

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<v Speaker 1>I would say, you know, there are we have made progress. Um.

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<v Speaker 1>The objective numbers show that we're making movement, but it's

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<v Speaker 1>slow and it's something that we are as a community,

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<v Speaker 1>business community, and certainly at Carlisle, we're very focused on

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<v Speaker 1>and as I have spoken with Shnali about, part of

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<v Speaker 1>the reason that we're very focused on it is it

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<v Speaker 1>really does lead to value creation to improve business performance,

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<v Speaker 1>you know, and we're we're about making the portfolio companies

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<v Speaker 1>that we invest in stronger and this is definitely part

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<v Speaker 1>of our value creation for them, and it's also part

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<v Speaker 1>of making sure that our organization has the right skills,

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<v Speaker 1>that perspective, the diversity of thought that we need to

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<v Speaker 1>really make the best investment decision. Carl you mentioned that

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<v Speaker 1>the change is slow. I'm wondering what is the friction?

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<v Speaker 1>What are some of the reasons that some of this

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<v Speaker 1>progress that are being slowed down. You know, I think

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<v Speaker 1>that this is it's about a couple of things. One,

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<v Speaker 1>it's about UM changing and perhaps improving the way that

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<v Speaker 1>we have traditionally done things like higher people UM. And secondly,

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<v Speaker 1>it's about helping people see and improve the ways that

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<v Speaker 1>we make decisions so that we are as objective and

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<v Speaker 1>unbiased as pros possible. And you know, I'll give you

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<v Speaker 1>a couple of examples for us at Carlisle. UM. What

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<v Speaker 1>we've done is put a lot of focus on making

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<v Speaker 1>sure that we're improving how we attract and UM recruit people. UM.

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<v Speaker 1>For example, we require that every interview slate has at

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<v Speaker 1>least two diverse candidates. UM. That's based on some evidence

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<v Speaker 1>that that makes a difference. But we've also become more

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<v Speaker 1>consistent in how we're evaluating people against you know, the

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<v Speaker 1>most important criteria for that role. UM. And that helps

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<v Speaker 1>us all just make sure that we're hiring the person

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<v Speaker 1>who's the best qualified, perhaps not the person that we

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<v Speaker 1>immediately connect with as readily. UM. It almost sounds a

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<v Speaker 1>little bit like and forgive me, I just wanted a

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<v Speaker 1>bit like we've had a lot of discussions around Bloomberg

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<v Speaker 1>about should we bring back quotas and it has helped

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<v Speaker 1>bring more women into the workplace, But what do you

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<v Speaker 1>how do you feel about that? You know, I think

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<v Speaker 1>it I think first of all, you can set aspirational targets,

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<v Speaker 1>but I think what's really important is setting um measuring

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<v Speaker 1>the quality of the process right so that you are

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<v Speaker 1>if that example of having at least two diverse candidates

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<v Speaker 1>weates is important because you are then saying we want

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<v Speaker 1>you to make sure that you're running the most quality

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<v Speaker 1>process possible. And we know that's part of it because

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<v Speaker 1>if you haven't cultivated that, then you haven't really reached

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<v Speaker 1>out and identified the best talent in the market. Speaking

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<v Speaker 1>of measurement, you know, as a reporter, we try to

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<v Speaker 1>look for everyone's diversity data and traditionally it's been so hard.

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<v Speaker 1>It's so hard, Um, what what are these difficulties about?

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<v Speaker 1>Why is it so difficult for so many companies to

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<v Speaker 1>disclose the product the progress they're making? You know, I

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<v Speaker 1>can't speak for other companies. What I can speak to

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<v Speaker 1>is Carlisle and the fact that this is a strategic priority,

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<v Speaker 1>and like any strategic priority, we measure it um and

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<v Speaker 1>so and it's not new we've been doing this for

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<v Speaker 1>a while and that's important because, um, we really need

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<v Speaker 1>to be able to do that to drive change. And

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<v Speaker 1>I think the other thing I would emphasize is that

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<v Speaker 1>we're pretty comprehensive in what we're tracking. Just as I

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<v Speaker 1>spoke about, you know, the gender equity index that we

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<v Speaker 1>we were part of Bloomberg's Gender Equity Index. Um, you

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<v Speaker 1>know that is certainly important, but we also track metrics

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<v Speaker 1>around a broader range of diversity in our workforce. You know,

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<v Speaker 1>we define diversity as being including the meaningful differences that

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<v Speaker 1>are in our people and in our portfolio companies and

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<v Speaker 1>in the markets we serve you. And we're talking to

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<v Speaker 1>the break that you know, measuring diversity, measuring inclusion, like,

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<v Speaker 1>there's different things. You're measuring women, you're measuring race. There's

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<v Speaker 1>a lot of things. There's a lot of things, and

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<v Speaker 1>race tends to be very difficult as well. There are

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<v Speaker 1>different types of rules around how disclosures are made and

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<v Speaker 1>car I'm really interested in how you think about this

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<v Speaker 1>issue and how when you're thinking about disclosure, how you're

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<v Speaker 1>going beyond gender and looking at all forms of diversity.

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<v Speaker 1>Absolutely so, Tonal, You're absolutely right, different locations, different geographies

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<v Speaker 1>by law and also what's meaningful in terms of diversity differs.

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<v Speaker 1>We UM. We definitely collect information that we can by

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<v Speaker 1>law UM, and in fact, we've been expanding so we

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<v Speaker 1>can collect gender, we collect race, ethnicity in the US UM,

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<v Speaker 1>but we've also been looking at ways that we can

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<v Speaker 1>expand the information that we can collect on our employees

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<v Speaker 1>so we can better meet their needs. One great example,

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<v Speaker 1>as we recently allowed or helped our employees UM with

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<v Speaker 1>the ability to self identify lgbt Q plus status, and

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<v Speaker 1>what that means is because we better understand the makeup

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<v Speaker 1>of our workforce, we were better able to serve them

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<v Speaker 1>with the benefits that they need. UM. We recently announced

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<v Speaker 1>enhanced fertility benefits that are really quite cutting edge, and

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<v Speaker 1>in part that information helped us to do that. UM.

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<v Speaker 1>We're also but we're on a continued effort to UM

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<v Speaker 1>understand what we can collect. We also collect data on

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<v Speaker 1>the boards of our portfolio companies UM, and we do

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<v Speaker 1>this because our data shows that those companies that have

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<v Speaker 1>more diverse boards outperform those that don't. Let's talk about

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<v Speaker 1>that for a second. Car I just wanted to chime

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<v Speaker 1>in here because I wanted to explain. Carlisle owns a

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<v Speaker 1>lot of companies across the country, across the globe, and

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<v Speaker 1>so do many of your peers. When it comes to

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<v Speaker 1>the portfolio companies, what is what are some of the

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<v Speaker 1>areas where you can make the most progress? Um, The

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<v Speaker 1>board is a is a key area because the board

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<v Speaker 1>sets the tone, it sets the strategy and direction for

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<v Speaker 1>the company, and so we are very focused on that.

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<v Speaker 1>And in fact, as we mentioned, those boards that are

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<v Speaker 1>diverse in our portfolio show average earnings growth annual earnings

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<v Speaker 1>growth that's nearly twelve percent higher than those that don't

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<v Speaker 1>have a diverse board. And so that's clearly part of

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<v Speaker 1>our value creation strategy. And we set a goal of

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<v Speaker 1>having diverse directors on the boards of our controlled companies

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<v Speaker 1>within two years of our ownership. And you know, this

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<v Speaker 1>is a great example we're measuring and keeping track of.

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<v Speaker 1>It really makes a difference, um in of the new

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<v Speaker 1>directors added to those company boards were diverse. You know.

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<v Speaker 1>So it's that old it does what what what matters?

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<v Speaker 1>You measure, and so we're definitely measuring. I ask and

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<v Speaker 1>you know, I feel like these conversations we've been having,

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<v Speaker 1>not just with you, but with so many people for

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<v Speaker 1>a long long time about diversity and more women, more minorities,

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<v Speaker 1>whether it's boards, whether it's senior positions, Um, why is

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<v Speaker 1>it taking so long? First of all, it takes intention.

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<v Speaker 1>You've got to embed and reinforce this in everything you do.

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<v Speaker 1>It's not just one prod checked, it's not just one

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<v Speaker 1>sponsorship or one statement. And it has to be comprehensive

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<v Speaker 1>and it has to be led from the top. And

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<v Speaker 1>I think you know our CEO q S only. He

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<v Speaker 1>is the chair of our Diversity, Equity and Inclusion Counsel

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<v Speaker 1>and he is committed to driving this. I give you

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<v Speaker 1>a good example. We have specific action plans around diversity

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<v Speaker 1>equity inclusions for each one of our funds and our functions,

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<v Speaker 1>and progress against those plans gets reviewed in quarterly business

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<v Speaker 1>reviews just like any other priority. What we see is

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<v Speaker 1>when you do that, you can make progress. You know,

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<v Speaker 1>last year in the United States, six of everyone we

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<v Speaker 1>hired into the firm was either female or an ethnic minority.

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<v Speaker 1>So you can make progress with consistent intentional effort and

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<v Speaker 1>focus and using some smart strategy. So some of these

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<v Speaker 1>things are really hard to measure, and when we look

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<v Speaker 1>at for example the Bloomberg Gender Equally Index. What we're

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<v Speaker 1>seeing is one of the things we measure is inclusive culture.

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<v Speaker 1>Some of these things so feel so intangible. How do

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<v Speaker 1>you measure things like that? It is intangible, and we

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<v Speaker 1>can we do we put the measures in place that

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<v Speaker 1>we can and that can be measures from employee sentiment surveys,

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<v Speaker 1>it can be tracking how talents is moving through your

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<v Speaker 1>organization and are is the career trajectory progressing at the

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<v Speaker 1>same rate? Um you know, I think one of the

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<v Speaker 1>other things that we've done is we've equipped all of

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<v Speaker 1>our people with an understanding of what unconscious biases, how

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<v Speaker 1>it can show up, but more importantly, what they can

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<v Speaker 1>do in their day to day to mitigate it. And

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<v Speaker 1>I think you know we've had of our employees go

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<v Speaker 1>through that session. So that's one of the measures we're

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<v Speaker 1>raising awareness and a quick being people to contribute to

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<v Speaker 1>him inclusive culture. So one thing I wanted to ask

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<v Speaker 1>you because one of the things that car we've talked about,

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<v Speaker 1>and there's been reports out too, about women being set

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<v Speaker 1>back in the workforce because of the pandemic. What have

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<v Speaker 1>you seen on that front, whether it's you know, the

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<v Speaker 1>struggles within your within Carlisle or your portfolio companies, you know,

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<v Speaker 1>more broadly, I mean, what are your thoughts about that

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<v Speaker 1>are just more broadly in society, you know, I think, Um,

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<v Speaker 1>there's no question, UM, we've all been juggling and challenge.

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<v Speaker 1>I had a colleague who ran into her closet to

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<v Speaker 1>do a conference call because her kids were making noise outside. Right,

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<v Speaker 1>we's all been living that life, um, I And I

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<v Speaker 1>think you know, we're very attentive to UM making sure

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<v Speaker 1>that we're taking that into consideration in how we're managing folks. UM.

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<v Speaker 1>I want to go back to the point about inclusion

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<v Speaker 1>and shannali one of the other things that you know,

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<v Speaker 1>for example, we're beginning to measures who is on the

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<v Speaker 1>deal teams that are in due diligence for those you know,

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<v Speaker 1>those key companies, who's managing those companies sort of it's

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<v Speaker 1>measuring not only the outcomes, but what are the what

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<v Speaker 1>are the what's the access and opportunity that helps advance

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<v Speaker 1>somebody's career and are we giving those equally throughout the

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<v Speaker 1>organization or cross population. UM, in terms of women and

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<v Speaker 1>the challenges faced with COVID, there's no question, UM, and

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<v Speaker 1>I think what we're trying to do is be attentive,

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<v Speaker 1>equip our managers to be aware and manage effectively. In

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<v Speaker 1>light of that, well, Kara, I hope we can continue

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<v Speaker 1>this conversation with you, because I think it's an important

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<v Speaker 1>one and the more we talk about it and it's conversations,

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<v Speaker 1>but as you says, it's intentions, setting intentions and actually

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<v Speaker 1>deliberate actions that are making a difference and we can

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<v Speaker 1>hear it in terms of what you guys are doing

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<v Speaker 1>at Carlisle. Thank you so much. Have a good weekend,

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<v Speaker 1>Kara Hilander, she's managing director, Chief Inclusion and Diversity Officer

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<v Speaker 1>at the Carlisle Group. And our thanks to our own

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<v Speaker 1>Shenali basic important conversation and let's keep this going. Let's

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<v Speaker 1>keep it going. Yeah, it's really really important,