Total Diversity Management™ (TDM) is a system for generating products, plans and strategies that are beneficial to the corporation through the utilization of internal diversity assets. Corporate personnel are deployed in an operational framework for communication and collaboration, which produces results that contribute to corporate success. Analyzing the impact of the results, which is used to modify and improve the front-end of the system, facilitates continuous improvement.

In TDM, the initial module is defined as Diversity Attainment. This module has been the focus of corporate diversity initiatives for more than 20 years. Following the Diversity Attainment module is Diversity Asset Management™. In this module of the system, a collaborative decision-making methodology defined as Cramer's Cube is the embedded engine that powers the diversity assets. Measurable results are obtained through the dynamics of the operating groups. These results, and the impact of the results, are defined as Return on Diversity (ROD).

As indicated in the illustration, the delineated results span the spectrum of all corporate functions, organizations and performance measurement. The results undergo an analysis stage defined as Diversity Impact Analysis (DIA). This is both a quantitative and qualitative process. The objective of the analysis is to determine the impact of diversity on corporate results. The analysis can be performed on a macro or micro level, i.e. per step, per project or total program.

Closing the loop in the TDM process, the DIA results are utilized to generate Continuous Improvement and Advancement (CIA). The objectives of CIA are:

• Qualify and quantify the diversity asset requirements.
• Define the modifications that might improve results.
• Determine the criteria for improving results.

RETURN ON DIVERSITY ASSETS, RODA

Corporations, government agencies and universities have made significant investments in diversity initiatives over the past two decades. Since diversity in the general population will inexorably increase, corporate diversity programs must expand in order to keep pace with those dynamics. Referring to the illustration, this means that Diversity Attainment is an ongoing and expanding component of Total Diversity Management™. In the context of TDM, Diversity Attainment is analogous to asset accumulation.

With the challenges facing corporations today, it is imperative that all assets be utilized for maximum contribution. Asset accumulation does not represent a positive metric when evaluating corporate performance. Return on Investment (ROI) and Return on Assets (ROA) are the preferred measures of corporate performance.

ROI measures the effectiveness of a corporation's use of capital to generate profit. The higher the ROI, the better the performance. ROA is a measure of a company's profitability, equal to annual earnings divided by its total assets. It is expressed as a percentage. Should assets increase without a commensurate increase in profits, the ROA would decline. Clearly, that would run counter to good corporate governance. The objective is to accumulate assets that can have the greatest contribution to profits.
In the context of Diversity Attainment, it is expected that these standard corporate measures will be followed. In the same way that physical assets do not always have an impact in the same fiscal quarter that the asset is acquired, diversity assets can be both tactical and strategic.

The first step in the process of subjecting corporate diversity initiatives to the metrics of Wall Street is to make the declaration that diversity is an asset and will be measured as such. To give this effort the focus and prominence that it needs, a sub-category should be added to the measurement of corporate performance. Return on Diversity Assets (RODA) is that metric. RODA is a measure of the company's profitability attributed to diversity, divided by its diversity assets.

The Diversity Asset Declaration

Is it fiscally irresponsible for a corporation to unilaterally and instantaneously define diversity as an asset? Why not? Historically it has been done in other areas of business. And, history has shown that the sooner this declaration is made, the more immediate and dramatic will be the results.

Looking for precedence, the quality programs of the 1980's provided dramatic financial impact when the quality initiatives achieved a level that one could define as an asset. In Phase 1, most corporations initiated quality programs for defensive reasons. Their products and services were inferior to those provided by companies that had instituted quality into all aspects of their corporate operations. Phase 2 moved the quality effort from a defensive campaign to one that created structural change within the company. In Phase 3, corporations began to see the financial benefits of quality. The erosion of profits slowed and comanies began to regain the market share that had been lost to the Early Quality Adopters.

In Phase 4, it became apparent that quality was an asset and that lack of quality was a liability. The asset of quality was now providing tactical and strategic value. So great was this asset that Total Quality Management, TQM, became a corporate imperative. It had been clearly demonstrated that possessing and applying the asset of quality had significant and measurable value, while the lack of this asset had negative repercussions. Had corporations done a time-compression on this process, quality could have been realized and maximized, supplying the corporation with standardized metrics for measurement, impact and improvement. The corporation would have been able to measure the Opportunity Cost, which is the benefit of seizing, and the financial downside of not seizing an opportunity.

In the formative days of the cable television industry, there was a dramatic increase in channel capacity. However, as Bruce Springsteen wrote, "There was fifty-seven channels and nothin' on."

A pioneer from those early days of cable TV has evolved from a fledgling innovator, to a viable programmer, to an industry leader to a media icon. Its four-letter moniker is known throughout the world and it has redefined and revitalized sports programming.

Initially, its programming content was anemic and the bottom-line was hemorrhaging. The cable providers demanded that content providers pay a monthly fee for each subscriber that received their broadcast. Over time, the content improved and the subscriber base expanded at a rapid rate, but the bottom-line needed radical surgery.

Rather than following this painful path toward a hoped-for viability, this sports programmer made an Asset Declaration. It announced that it would no longer pay subscriber fees to the cable television companies. Further to this declaration, they informed the cable providers that it would be THEM that would be paying fees to carry their product to the subscriber. The "tail" had instantaneously become the "dog."

The difference between the quality Asset Declaration and that of the broadcaster is defined by the time span. For corporations, defining quality as an asset resulted from quantitative analysis while that of the broadcaster resulted from vision and the strength to make an Asset Declaration. One was after-the-fact while the other was truly a declaration. Classifying diversity as an asset can also be done by unilateral and instantaneous declaration.

Lesson Learned...Lesson Applied

Following an Asset Declaration, corporations must provide an operating environment from which positive results can be derived. Most corporations that have a mature quality methodology in place, such as Total Quality Management (TQM) realize that it is a critical success factor for the corporation. No matter how long it took to arrive at an asset realization, it can learn from the process and apply that lesson to its Diversity Program. If your corporation has an embedded quality program, it most likely has a mature diversity program. If you have a TQM program, you should also institute a TDM program.

Best in Class

Through the implementation of a Total Diversity Management™ program, corporations have the ability to maintain current diversity initiatives and migrate to a unique program, crafted by the corporation itself. For example, corporations can implement programs in the categories of marketing, sales or organizational development that they have deemed to be best-in-class. In other categories such as strategy, product development and customer relations the corporation may still be in the formative stages of developing its capabilities in those areas.

The significant advancements provided by TDM are that it is an easily understood system that contains all of the necessary modules. Also, it is implemented in a closed-loop manner, similar to TQM. This provides for Continuous Improvement and Advancement. Many corporations may have mature diversity initiatives as well as the quantitative methods to calculate RODA in addition to ROA. That being the case, what actions must a corporation take to create and deploy a TDM system?

Three actions must be taken:

• Make an Asset Declaration
• Implement Diversity Asset Management™
• Deploy the methodology of Cramer's Cube

Roles and Responsibilities

Corporate leaders will be responsible for the deployment, adaptation and personalization of TDM. From there, every member of the corporation is responsible for her or his contribution to the workgroup environment of Cramer's Cube. Each person is given the opportunity, as well as the responsibility, to apply the uniqueness of their individuality to team efforts. Each member will have equality of Involvement, contribution of Insight and proportionality of Influence. The methodology is detailed in Cramer's Cube (AuthorHouse Publications 2003).

A condensed description is provided in the article, "Diversity Asset Management™...Organizational Development Utilizing Organizational Diversity" located at www.diversityassetmanagement.com.

Cramer's Cube and TDM need more than commitment by the executive team. It requires ownership on their part if it is to achieve its full potential and impact. The resultant benefits from that commitment and that ownership will be solutions, proposals and strategies that, by definition, will be Innovative, Extreme and Revolutionary.

Vincent M. Cramer is the author of Cramer's Cube. He is also the founder of Winchester Consulting Group, an Organizational Development and Training Company specializing in the principles of Cramer's Cube and its application to Diversity Asset Management™.