Galt Global Review

QFS 360

July 20, 2005

Diversity: The Industry


by Faye Mallett


What is the difference between diversity and multiculturalism? While multiculturalism focuses on understanding cultural differences, diversity has a more tangible aim: to recognize that people are different and to build effective communities out of these differences and potential conflicts (not despite of them).

More so than multiculturalism, diversity can be called an industry. Within this industry are diversity trainers, diversity coaches and diversity consultants; one can study online through the Diversity Training University International (yet many consultants and trainers do hold PhD’s in education); and many organizations, recognizing the trends of workforce demographics, employ the expertise of trained diversity professionals as a way of adapting to the changing realities of the workforce.

Employers can no longer hire people of the same race, gender and nationality and expect to be a leader in their industry. Take a look of Longo Toyota in Los Angeles. Buyers of all nationalities and races – many of whom are immigrants - do business with this dealership where the staff speaks more than 20 languages and dialects, from Arabic to Vietnamese to Punjabi.

How successful is this strategy? The dealership came in first on industry tracker Ward's 2004 list of top-selling dealerships, and last year sold an average of 56 cars and trucks every day.


Other car dealers target the region's growing base of immigrant and minority customers, but no dealer has done so on Longo's scale. Two-thirds of Longo Toyota's managers are minorities, a record unmatched by many large corporations with affirmative action programs. Many of the supervisors are also immigrants.

As writer Peter Y. Hong states in the LA Times, “Longo Toyota looks every bit like a bulwark of suburban consumerism, and not at all like an agent of social change. The look fits. Longo Toyota was integrated not by social engineering, but the invisible hand of the market.”

The dealership has no affirmative action program. Its staff simply evolved to serve its customers. Longo’s president, Greg Penske, saw a way to capitalize on the demographic shifts in his market and started to build up Longo's bilingual staff in 1987, placing ads in Mandarin, Cantonese, Korean, Spanish and Farsi.

"A lot of people in business don't like change. I love change, " he told the LA Times. "I saw it coming and I went after it."

While Longo is a story of business success as a result of capitalizing on diversity, it does not reveal the complexity in how a group of racially and culturally diverse people establishes ways to communicate with each other.

Diversity brings increased opportunity, yes, and also increased challenges, for the very point of diversity is that people will have different points of view about how to solve problems and complete tasks. In an organization where people from different cultural backgrounds are employed, it is likely that diversity-related problems are either waiting to happen or exist under the surface. The increased number of multi-million dollar harassment and discrimination lawsuits reveal attest to this.

This is where diversity trainers, consultants and specialists come in: the ubiquitous diversity industry.

Since the 1980’s, workshops and training seminars dealing with race have multiplied exponentially, yet none more so than diversity training.

Melvin T. Williams, a black accountant who decided that he had to do something about changing how he saw white co-workers treat people of color, started Delphi Consulting Group Inc., one of the first diversity training businesses in the early 80’s.

Later in the decade, in 1987, the Hudson Institute, a conservative think tank commissioned by the US Department of Labor to study workplace demographic shifts, published Workforce 2000. This report predicted that by 2000, only about 15 percent of those entering the workforce would by white native-born males. Diversity training was triggered on a national scale as organizations realized that this would not just change the workforce, but also the makeup of consumers.

Daisy Hernandez, from Color Lines Magazines, writes: “Within the corporate sector, diversity is often talked about as a resource and source of profit, if managed right. Diversity training is seen as a means to a stronger team, organization and product.”

Bringing in the professionals
Many organizations hire diversity professionals to resolve a conflict between co-workers and/or supervisors; to develop “intercultural” awareness; to prepare employees for foreign country work; to prepare the organization for increased racial, cultural and gender diversity and to provide training for managers within the organization.

Rohm and Haas Texas Inc., a Houston based chemical company, wanted to become more effective by “cross-pollinating” employee ideas, values and perspectives. To do this, it designed employee teams comprised of individuals who held diverse roles within the production process. Yet, as it discovered, the diversity that makes teams so successful can also create roadblocks and become dysfunctional.

What the company discovered was that, instead of accepting their new team assignments, Rohm & Haas employees started to naturally migrate to teams composed of members which whom they felt they had more in common. Often, these were drawn along racial or cultural lines, as well as age, gender, religion, and even differences in communication styles.

This was a slow and subtle process, yet within three years the original-member teams were replaced by teams with like-minded members. The difference of experience and perspective the company hoped to gain was lost as the teams increasingly became more homogenous.

Realizing that the deliberate reorganization of teams signaled deeper problems, the company introduced diversity-awareness training. Working with an external diversity trainer, Rohm & Haas set-up awareness seminars funded by the HR department. The training emphasized that, while homogeneous team members will come up with quick, easy solutions because members think alike, innovative solutions can only come from teams in which members view things differently. It therefore benefits the company when employees – in all levels of the organization – can handle diversity and understand that people see the world differently.

Was the training for Rohm & Hass successful? The company polled every employee immediately after the workshops, and then again six weeks later. The data was consistent: employees viewed the initiative as positive.

What will a diversity trainer do?
Diversity education is an ongoing process, and it takes work to draw out the benefits. Each trainer or organization has it’s own specific method.

The Diversity Training University International’s philosophy is based on the Socratic teaching method, the focus being on asking the student insightful questions to ponder, rather than seek particular answers.

Another approach, used by the National Conference for Community and Justice, is designed in the form of an interactive “privilege walk.” In this, participants line up and take steps forward or back by answering questions. Having gone to college, for example, might be two steps forward.

Personal storytelling, discussions, role-playing, and exercises in which members list their expectations of each other are other techniques used in diversity workshops.

A specific criticism levied against the diversity industry is that, by operating and accepting the goal of ‘getting along,’ training sessions can degenerate into ‘band-aid’ solutions that fail to acknowledge the subtler dimensions of diversity.

At the same time, diversity practitioners are conducting work within institutions that are profoundly effecting people’s lives.

While diversity training certainly can’t be expected to do it all, it does provides a good model and starting point for discussion of understanding differences and self-awareness. And, as the saying goes: it is better to do something, then nothing at all. Diversity issues are only going to increase as the population changes and demographics related to our communities, our workforce and the marketplace inevitably shift.



 

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