Case Studies
The Road to a Meritocracy:
The Learning Journey at Carlson
Company: Carlson
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Lessons Learned
The most visible lesson of Carlson's gender efforts is that strong leadership at the top can quickly and radically transform the corporate environment to ensure women's advancement. Marilyn's role as a committed CEO who recognized the importance of gender equality led to very quick internal change. You might expect that Carlson's programs to develop female talent would occur under a female leader. But in truth, the transformation from a male-dominated, command and control style of management was imperative for the company to continue its dominance. Under Marilyn's decade-long leadership Carlson not only institutionalized a meritocracy but it nearly doubled its revenues to $40 billion annually.
The presence of other women in key management positions was another important ingredient. "The fact that I hired a female HR director was a breakthrough," Marilyn explains. "The person before that was a very competent, but less inclusive-thinking HR person. [The new HR director] helped in the shift towards more progressive HR practices, but she also became a significant mentor to many others in the organization. It was a progression towards what we needed at the time."
Another important lesson is about listening to feedback, and being flexible to adjust existing initiatives to ensure their continued relevance. Carlson executives use Employee Engagement surveys, a tool that helps them understand the company's workforce, and determine gaps and continued development needs. This has also helped them determine barriers to women's advancement.
At Carlson's restaurant company, for example, executives discovered they had a relatively low percentage of female managers. To understand why, Carlson set up a series of regional meetings where high-potential women and women managers could discuss why women might not pursue restaurant management. According to Susan, "In these discussions, leaders identified that some of the barriers particular for women managers were the work hours. From the safety standpoint, women were also concerned about having to close a restaurant late at night. So we redesigned the hours to restructure and change some of these paradigms. It made a big difference."
The current financial crisis has inevitably led to some re-examination and change in priorities. This affects all areas, including gender-related initiatives. "Our executive leadership program is being postponed, partly because of the recession. We are taking a harder look to really make sure [our programs] are a value-add. We are also promoting existing programs such as Lifeworks more, because we recognize that during tough economic times people are looking for resources," says Carmen. "Having a childcare center in a downsizing mode is difficult because you are subsidizing employees and laying them off. We are now partnering with tenant companies to share the daycare center. Having more than one corporation share the costs can help at a tough time."
Another important lesson that Marilyn herself particularly stresses is about the value of symbolism. "Leadership is to be handled in several ways. One is what we say, [and] another is about our symbols and value set," she says. "When we created the childcare center, there were people in the company who objected, asking why we were spending money on childcare. But this was symbolic. It said to everyone we are going to welcome and support people with families. If you're looking for a good place to work, there are symbols that speak to that."
Carlson is conscious to ensure fairness so that both female and male employees can benefit from existing initiatives. This is why many of their programs, such as Lifeworks, target women and men, and the family as a whole.
Carlson's push for gender equality has resulted in a prevailing environment of inclusivity, says Deborah Cundy, Vice President in the Office of the Chairman. Deborah, who has worked for Carlson for more than 20 years, observes that the results of Marilyn's efforts have had a far-reaching impact on the company's culture. "Institutionalizing fairness in the system has not only created a sea change for women's advancement opportunities," she notes, "but it has also had a very positive impact on the overall diversity of the company's workforce."
Finally, symbolism also extends to ensuring consistency in the company's message and image. "We think it's inconsistent," says Marilyn, "to say you care about your customers if you don't have gender opportunities and programs that reflect and strengthen communities. Carlson has philanthropically supported women's capacity-building programs such as The Women's Presidents' Organization, Women Impacting Public Policy, the National Association of Women Business Owners, the Women's Business Enterprise National Council and the National Association of Women MBAs. "There needs to be alignment in all corners of the organization," says Marilyn. "Consistency of message is the only way to gain leverage, build awareness and demonstrate to others that you are serious about making positive change."
In 2002, at the request of the President of the United States, Marilyn accepted the invitation to chair the National Women's Business Council, an independent advisory board that advises the President and Congress on issues impacting women business owners. She served until 2005, translating her experience running a large corporation onto national and international arenas, speaking at numerous high profile conferences in support of women business owners, including the OECD in Istanbul. Not only did Marilyn enhance her own company's competitiveness, but she inspired countless women in business along the way. According to Marilyn, "You simply can't overestimate the value of demonstrating to others that you are personally engaged in your convictions."
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