1998
SARA LEE CORPORATION
Strategic Diversity: A Business Imperative
The Initiative
Sara Lee Corporation has for many years demonstrated a commitment
to the advancement and recognition of women. The imperative for
this commitment is underscored by the fact that the majority of Sara
Lee’s workforce is female and that women are far and away the largest
purchasers of Sara Lee products. Sara Lee began developing its awardwinning initiative, Strategic Diversity: A Business Imperative, in the early
1990s with the stated goal of developing, valuing, and maintaining a
diverse culture. The initiative established representation goals to increase the number of women and minorities
at management and executive levels. Each division of the company directs its own diversity initiative, but overall
strategies and annual goals originate at the corporate level.
Implementation
To identify and track high-potential employees, Sara Lee operating units use an internal management review
process in which department heads make recommendations that enable high-potential employees to acquire
skills for advancement.
Accountability
Managers must plan for their employees’ development and career progression. This process is reinforced by
an annual succession planning review, conducted by the corporation’s senior management, which includes an
assessment of high-potential women and minorities in all divisions. Sara Lee measures its diversity initiative in
the same way it measures financial performance—against specific goals. Achievement of such goals is included
in annual bonus standards for all corporate senior executives and division presidents.
Communication
Sara Lee’s senior management communicates its diversity and management development strategies, goals,
and initiatives through a variety of mediums, including recruitment materials, business review plans, newsletters,
magazine advertisements, event sponsorships, leadership forums, and internal roundtables. Chairman and CEO
John H. Bryan is highly visible and vocal regarding the company’s strategic diversity initiatives, both within
the corporation and to external audiences. Sara Lee-sponsored events and activities oriented toward women
include the Sara Lee Frontrunner Awards, which annually honor four women for outstanding contributions in
the arts, business, government and the humanities, and Sara Lee’s recent national opinion poll to determine
women’s attitudes on work and family. Sara Lee’s multiple communications vehicles reinforce the commitment
and conveys the positive results of the strategic diversity initiatives.
Evaluation
“What gets measured gets done” is a phrase heard often at Sara Lee Corporation, and this holds true for diversity
initiatives just as it does for operating and financial objectives. For example, Sara Lee has specific female and
minority representation goals for its top 1000 management positions (senior manager through president level);
Excerpted from the Catalyst 20th Anniversary Awards Compendium. © 2007 Catalyst
women are to comprise 40 percent of M.B.A. hires; and 30 percent of identified high-potential women and
minorities must be promoted or moved laterally for development every year. Achievement of such goals is
included in annual bonus standards for all senior executive, bonus-level employees, including division presidents.
In addition, the Board of Directors monitors the company’s progress throughout the year with regard to female
and minority diversity and management development goals.
Overall Impact
Currently, 26 percent of Sara Lee’s key management positions—defined as director level and above—are held
by women.
Key Elements
Strategic Diversity: A Business Imperative is an inclusive approach to ensure the recruitment, development, and
advancement of women and people of color, through goal setting, accountability measures, and commitment of
senior leadership. Prominent examples include the following:
 Management Review Process (MRP): The MRP is Sara Lee’s succession planning tool, enabling
identification and development of high-potentials. An outstanding component of the MRP is the intensive
one-on-one planning and follow-up each high potential receives.
 Executive Development Center (EDC): The EDC was established to meet the development needs of highpotentials identified by the MRP. During the EDC, executive coaches work with individuals to assess their
strengths and development needs in order to create a development plan for to be followed throughout the
next 18 to 24 months. Highlights include roundtable discussions with the Sara Lee executive management
team, several business simulations followed by developmental feedback, review of feedback from peers,
subordinates, and supervisors, and the creation of individualized development plans.
 Senior Leadership Commitment: Chairman and CEO John H. Bryan is the champion and leader of Sara
Lee’s diversity initiative, ensuring that the company’s board of directors regularly reviews the corporation’s
female and minority diversity and management development goals. Unique evidence of this support is
demonstrated through the “Annual Best/Worst Review,” during which the two best and worst performing
divisions on diversity present to an executive team that includes Mr. Bryan.
Sara Lee Corporation is a global consumer packaged goods company with approximately $20 billion in annual
revenues. Headquartered in Chicago, Sara Lee markets its brands throughout the Americas, Europe and the AsiaPacific region. Sara Lee is the number-one packaged meats company in the world, the number-two retail coffee
company in Europe, and is a leader in the frozen baked goods markets of the United States, the United Kingdom
and Australia. Sara Lee operates one of the most successful foodservice businesses in the United States, markets
a household and body care line in more than 140 countries, and is an international leader in branded intimate
apparel, knit products, and hosiery. The company manages a portfolio of more than 30 major brands, each with
sales totaling more than $100 million, including Sara Lee, Douwe Egberts, Hillshire Farm, Hanes, Coach, and
Playtex.
Excerpted from the Catalyst 20th Anniversary Awards Compendium. © 2007 Catalyst