Mr. Poirot

Diversity Issues

Diversity in the Marketplace - Making Internal Philosophy Part of External Actions

By Olivier Poirot, CEO, Accor North America

While internal diversity initiatives focus on the workforce and other aspects of the workplace itself, diversity in the marketplace reflects the kind of relationship a company has with its customers, suppliers, franchisees, shareholders, and potential employees. It is seen in actions like philanthropy, community service, outreach to potential customers and suppliers, and the goals and policies of your sales force.

From building a diverse workforce, to workplace programs and development initiatives, to eventual outreach to the various communities where you do business, it is an evolution from workforce and workplace to marketplace.

The need for marketplace diversity is driven by a business imperative. These days, few forward-thinking companies overlook the importance of diversity in the marketplace. Whether it's hospitality or tennis shoes, major companies know the importance of recognizing, acknowledging and reaching out to the many demographic groups and communities that make up our global market.

But marketplace diversity is much more than simply offering products that appeal to a particular demographic. It must be a long-term partnership that benefits the community in other ways. You will be ineffective if a community feels that you are entering the market for the sole purpose of making money. The plan must include tangible aspects of giving back - spending money in their community and being actively involved with programs that benefit its citizens.

Through active participation and partnership in the community, through things like scholarships and support for social and charitable organizations, you demonstrate that your diversity policies are more than just a marketing gambit. They reflect a true corporate-wide commitment to a philosophy of diversity.

Even beyond the bottom line, the benefits of implementing a policy of marketplace diversity are many: It complements your company's workforce and workplace diversity initiatives and helps create common goals for your organization, uniting your team in the ongoing effort. It demonstrates your commitment to inclusion to a potential community or market when you go in for the first time. It stimulates your team's creative juices as you work to determine what a particular market needs and how you can meet that need.

There is no doubt that the pursuit of inclusion in marketplace activities is the right thing to do. The most important decision is about the actions we take to make it happen.

Taking Action

Developing a policy of diversity in the marketplace at your company is not a matter of throwing together a one-time program. It involves sitting down with your team leaders and putting together a comprehensive, ongoing strategy.

A marketplace diversity strategy should focus on key initiatives involving both your workforce and the market. Your employees must be educated about each particular customer base in the multicultural marketplace and about the opportunities to enhance revenue growth in that market.

Employees need to be familiar with and understand the diverse range of customers, suppliers and franchisees. Your sales force, for example, should be up-to-date about the different ethnic groups represented in the marketplace. And they must understand how to take sales strategies and apply them in those communities.

Build the Right Relationships

This means your organization must know the community and what is important to them. Talk to your diversity councils and focus groups. What are the key priorities in the African-American, Asian, or Hispanic communities, or among women? It is important to look at all the different ethnic communities represented in our diverse world. Companies sometimes focus only on the more well-known minority groups and don't notice the others. When it comes time to begin looking at your prospective market, take a good demographic snapshot of that community. Ask yourself: Does what I am offering reach out to all levels of this community?

It is important to belong to and participate in minority and ethnic trade organizations and associations. Almost every ethnic group is represented by its own industry organization. There are supplier diversity organizations and Chambers of Commerce that can help you connect with the various ethnic groups that make up the market. There are also social and charitable organizations that offer your company a great way to give back to the community. The key is to find an organization that aligns with your company's values. There are many to choose from, but some organizations are a better fit than others, so evaluate the organization with which you plan to partner.

It's also important to consider minority efforts in your college recruiting and internship programs. Make sure you are giving a fair look at minority colleges and MBA programs, which can be a source of great talent. Scholarships are an example of community support. Your marketplace is also your recruiting base, and it is important to be visible. In the long run, this will prove valuable in your efforts to build a diverse workforce.

Reaping the Benefits

Forging strong relationships through a policy of marketplace diversity will strengthen the communities where you and your employees live, work and create jobs. It also encourages and increases feedback from your company's base - your customers, suppliers and franchisees - allowing your business to be more competitive.

It will afford your diverse workforce new opportunities to pitch in with their creative ideas. After all, they live in these communities and have a great perspective of wants and needs. When you have a large population of any ethnic group as part of your workforce, you are able to tap their creativity to come up with programs that make sense for their community.

When you have a strong relationship with the community you are better able to sit down with your partners and determine what that community needs and how your business can fulfill that need. This is critical - it's important not to simply take a cookie-cutter approach to market diversity. Different communities need different things, and when you have a marketplace strategy in place that complements your overall diversity initiatives, you are able to meet those needs.

Olivier Poirot is CEO of Accor North America, Motel 6 and Studio 6. Accor North America's portfolio includes Sofitel, Novotel, Studio 6 and Motel 6 properties. Poirot was a driving force behind Accor North America's Pinnacle Program, its company-wide diversity program. Poirot joined Accor as Senior Vice-President in charge of finance for the Accor Business and Leisure (ABL) division in June 2001. Prior to that, he was CFO of Accor UK Ltd, in charge of finance, IT, procurement and legal for Accor hotels in the United Kingdom and Ireland, where he began his career with Accor in 1992. Mr. Poirot can be contacted at 972-360-2528 or anaceo@accor-na.com Extended Bio...

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