2009 Best in Class: Senior Management Diversity - For profit
Eaton Corporation, a diversified power management company, continues to exemplify inclusive senior management as a repeat Best-in-Class winner. Twenty-five percent of the direct reports to Eaton’s CEO are minority individuals, including one of the company’s vice chairmen and chief operating officers and the executive vice president, Eaton Business System.
In addition, 14 percent of the top two levels reporting to the CEO are minority individuals compared to 11.6 percent for the overall for-profit survey participants. This level of diversity is maintained through the provision of tools, support and training to create an inclusive environment for senior managers and others. Effective strategies include:
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To drive accountability, senior leaders are measured on how well they drive and sustain diversity within their organizations. Annually, the vice chairman and chief operating officer of each business sector reviews their progress on diversity initiatives with Eaton’s Board of Directors.
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Senior leaders “own” diversity efforts within their areas. Diversity councils established by senior leaders both at the top of their organizations and at each of their facilities continue to be effective. The councils are responsible for providing diversity and inclusion training, holding events to highlight special topics, and sharing best practices with each other. They also regularly report to senior management on challenges and roadblocks that may need to be addressed. Senior leaders are empowered and accountable for identifying and overcoming any barriers to diversity.
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The Organizational Capability Assessment (OCA) is Eaton's annual process for reviewing and assessing leadership capability and bench-strength. To provide proper exposure, managers discuss the development plans of high potential diverse employees with the CEO and/or his irect reports.
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During the annual succession planning process, high potential talent, including minorities, are identified and leadership discusses the individuals’ career advancement potential and their development needs. In addition, individualized development plans are created to ensure that op talent receive the training, experiences and mentoring needed to further their growth.
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Eaton uses several mechanisms for identifying and removing obstacles and barriers to inclusion such as its Ethics Hot Line, a toll free, 24/7 confidential phone line where employees can report unethical behavior in all aspects of Eaton operations; its Ombuds Program, which provides employees with an objective third party to air concerns and discuss options for addressing them; and its annual Employee Engagement Survey, where employees confidentially provide opinions on many employee relations dimensions, including diversity. It is the responsibility of senior managers to review and respond to these survey results as well as engage employees in developing solutions to any challenges identified.
“At Eaton, we know that doing business right includes fostering diversity throughout our enterprise, including in senior management. Systematically managing diversity and inclusion has had a tremendously positive effect on our performance. We value inclusion because employees who bring with them a broad spectrum of skills, ideas, experience and background are crucial to our global success."
Alexander M. Cutler, chairman and CEO, Eaton Corporation