Global Diversity & Inclusion Global Diversity & Inclusion at Microsoft “By providing access to technology, Microsoft strives to help all people realize their potential. This means that diversity and inclusion are not just words on paper for us; they are core values and business imperatives. We promote diversity at every level within our organization and strive for inclusiveness in everything we do. We believe that employing the world’s top talent from all groups within our communities—from many backgrounds and with varied experiences helps us to better serve our customers and gives us a competitive advantage in the global marketplace.” Steven A. Ballmer, CEO AGENDA • Microsoft’s Diversity Journey • • • • Overview The business rationale Global market trends Global Diversity & Inclusion Strategic Priorities • Observations • The Israel Story • Questions/Comments Global Diversity & Inclusion Microsoft Confidential 2 OVERVIEW Historic Trends: Early findings: Results have been to: D&I Key focus since 1992 Lacked clear, cohesive Develop cohesive global Primarily US centric Focused on race and gender Strong external outreach Linked to targeted recruitment D&I strategy Disparate efforts Lacked business rationale and alignment Needed more solid GD&I expertise Data gathering & analysis required Global Diversity & Inclusion strategy linked to Microsoft business & vision Strengthen global perspective and integration Enhance leadership engagement Improve quality and accuracy of Diversity data globally Increase portfolio of D&I learning Improve senior level diversity representation (women and people of color) Microsoft Confidential 3 DEFINITIONS: DIVERSITY & INCLUSION ORGANIZATIONAL Diversity: The full range of human and / or organizational differences & similarities, inclusive of everyone Functional Level/Classification Geographical Location Income INTERNAL Marital Status Inclusion: The process of leveraging the power of differences and similarities to effectively achieve a common goal or objective EXTERNAL Management Status Age Parental Status PERSONALITY Appearance Language Work Location Personal Habits Gender Race Sexual Orientation Ethnicity Recreational Habits Physical Ability Work Experience Work Content/ Field Religion Division/ Department/ Unit/Group Educational Background Seniority Concept designed by Gardenswartz and Rowe Global Diversity & Inclusion Microsoft Confidential 4 THE BUSINESS RATIONALE Our consumer base is constantly changing and growing. We need to be: • Diverse enough to match up to our current and new markets • Aware enough to anticipate, respond and serve the needs of the changing consumer marketplace • Engaged enough to contribute at the highest levels to deliver superior performance Global Village North Americans 5% Europeans 9% South Americans 8% Africans and Middle Easterners 15% Commonwealth of Independent States 5% Asians 56% Global Diversity & Inclusion HR CONFIDENTIAL Microsoft Confidential 5 GLOBAL MARKET TRENDS: WOMEN • Women represent 40% of the world’s labor force and earned income is growing at 8.1 • % versus 5.8 % for men – Euromonitor Women globally control $20 trillion in annual consumer spending; by 2014 that could climb to $28 trillion. – BCG more than the estimated GDPs of India and China combined! • Nearly 85% of all consumer electronic purchases are made by women – Euromonitor • Tech-savvy women purchase $55 products Global Diversity & Inclusion billion in consumer technology Microsoft Confidential 6 MICROSOFT Talent Values Innovation Right Bets Global Diversity & Inclusion Microsoft Confidential 7 WORLDWIDE PRESENCE Global Diversity & Inclusion Microsoft Confidential 8 GLOBAL DIVERSITY & INCLUSION AT MICROSOFT Challenges • It can be difficult to attract and retain top diverse talent in increasingly competitive markets. • Fewer women pursue careers in the technology industry globally. Opportunities • Continuing to recruit and retain diverse employees who reflect our customer markets. • Increasing interest in technology careers among women and diverse populations. • Capitalizing on the opportunities of an increasingly diverse global marketplace. Global Diversity & Inclusion Microsoft Confidential 9 GD&I STRATEGY SUPPORTS MICROSOFT’S STRATEGIC VISION Microsoft Strategic Vision Microsoft Strategic Vision Create seamless experiences that combine the magic of software with the power of the Internet across a world of devices Global Diversity & Inclusion Strategy Strategy Create the environment that helps Microsoft capitalize on the diversity of its people and inclusion of ideas and solutions to meet the needs of its increasingly global and diverse customer base Key Strategic Elements Key Strategic Elements Representation Increase diverse pipeline across the enterprise; prioritize target areas based on data analysis Inclusion Support cultivation of an inclusive workplace that surfaces the best ideas and solutions for the company and customer Market Innovation Develop the capabilities to drive revenue through penetration of high value diverse markets Reframe GD&I Platform To Support Global Efforts Strengthen core of D&I expertise to support the enterprise Global Diversity & Inclusion Microsoft Confidential 10 GD&I FOCUS AREAS: WHAT WE’RE DOING BUILDING A MORE DIVERSE MICROSOFT WORKFORCE Increasing executive leadership and accountability for diversity and inclusion: Providing professional development opportunities to employee groups: Sparking student interest in technology careers: CREATING A MORE INCLUSIVE WORK ENVIRONMENT Increasing diversity and inclusion training Encouraging employee conversations about diversity and inclusion Supporting diverse Microsoft employee development: Global Diversity & Inclusion Microsoft Confidential 11 GLOBAL DIVERSITY AND INCLUSION FOCUS AREAS: OUR PRIORITIES FOR FY2012 INCLUDE: • Continuing efforts to increase diverse talent in senior level positions, with a focus on racial minorities in the United States and women globally. • Enhancing managers’ capability and skills for engaging a diverse workforce and creating inclusive work environments. We will focus on critical skills and behaviors that all levels of management must demonstrate to excel when leading diverse employees and teams. • Continuing to expand diversity and inclusion efforts in countries outside the United States. • Conducting research to identify business opportunities for Microsoft to market to diverse populations. Global Diversity & Inclusion Microsoft Confidential 12 GD&I IMPACT TO MICROSOFT BUSINESS – MARKET INNOVATION Global Diversity & Inclusion Microsoft Confidential 13 Israel - Our journey The way to excel our target - Success Inhibitors Inclusion Representation • Female representation in • Gate keepers - Hiring engine • Hiring initiatives: Diverse candidate succession planning • Female Representation in talent initiatives, HIPO etc. • Career development plans slates. • Attraction - Employer of choice Culture • GM, LT, management community engagement • LT & manager training • Women’s forum : on going workshops, initiatives and tools, led by female managers & supported by HR • Flexible working hours • Maternity and parenthood: family activities, Employee Assistant Program, nursing room on site, maternity kit - benefits and policy & special benefits etc. Global Diversity & Inclusion MS In The Community • • Citizenship programs addressing national priorities of employability and Innovation focused on women and driven through tight collaboration with Gov. and non-profit. Programs focus on different groups whose participation in the workforce are relatively low and promote their employability through technology training. Israel Microsoft Confidential 14 LEADERSHIP ACTION STEPS What can you do…… • Understand why Diversity & Inclusion matters to your company • Learn how to talk about diversity and inclusion from a business perspective • Be transparent and have the conversations with your own team • Include others outside your comfort zone - expand your circle to optimize diversity • Challenge yourselves to understand the impact of your own cultural viewpoints on your interactions with others who are different • Focus on diversity at the individual level Global Diversity & Inclusion Microsoft Confidential 15 THANK YOU! Global Diversity & Inclusion Microsoft Confidential 16