Managing Diversity at Spencer Owens & Co.

Robin J. Ely; Ingrid  Vargas

Case | HBS Case Collection | December 2004 (Revised April 2006)

Managing Diversity at Spencer Owens & Co.

by Robin J. Ely and Ingrid Vargas

Abstract

Spencer Owens & Co, a disguised consulting firm, focuses on domestic and international economic development. As an extension of the firm's commitment to social justice, 20 years ago, Spencer Owens management introduced an affirmative action hiring and promotion program. Within 10 years, the firm had achieved the most diverse support and professional staff in the industry. Yet, despite management's good intentions, Spencer Owens--and, increasingly, its work--suffered from acrimonious staff relations and frequent recriminations around racial issues. The protagonist of the case tries to diagnose the problem.

Keywords: Working Conditions; Selection and Staffing; Development Economics; Corporate Social Responsibility and Impact; Employees; Diversity; Cross-Cultural and Cross-Border Issues; Consulting Industry;

Format: Print

5 pages

Educators Purchase

Citation:

Ely, Robin J., and Ingrid Vargas. "Managing Diversity at Spencer Owens & Co." Harvard Business School Case 405-048, December 2004. (Revised April 2006.)

Why have women failed to achieve parity with men in the workplace? Contrary to popular belief, it’s not because women prioritize their families over their careers, negotiate poorly, lack confidence, or are too risk averse. Meta-analyses of published studies show that those ideas are myths—men and women actually have similar inclinations, attitudes, and skills. What does differ is the way they are treated on the job: Women have less access to vital information, get less feedback from supervisors, and face other obstacles to advancement. To ensure gender equity, the authors recommend that managers (1) question the stereotypes behind their practices, (2) consider other factors that might explain the achievement gap, (3) change workplace conditions accordingly, and (4) keep challenging assumptions and sharing learning to create a culture in which all employees can reach their full potential.

Any list of top CEOs reveals a stunning lack of diversity. Among the leaders of Fortune 500 companies, for example, just 32 are women, three are African-American, and not one is an African-American woman. What’s going on? The authors studied the careers of the roughly 2,300 alumni of African descent who have graduated from Harvard Business School since its founding, focusing on the 67 African-American women who have attained top positions in corporations or professional services firms. These women thrived, they found, because of three characteristics that are key to resilience: emotional intelligence, authenticity, and agility. The women were adept at reading interpersonal dynamics and managing their own reactions; crafting their identities; and transforming obstacles into opportunities. Beyond personal strengths, the authors say, another factor was critical: nurturing relationships with mentors who recognized the women’s talent and made it their business to support them. The insights gleaned are important not just for African-Americans and women; they’re essential for any manager who recognizes that an organization’s diversity is its strength.

Laws now exist to protect employees from blatant forms of discrimination in hiring and promotion, but workplace discrimination persists in latent forms. These “second-generation” forms of bias arise in workplace structures, practices, and patterns of interaction that inadvertently favor some groups over others. This chapter reviews research on how these biases manifest themselves in the core processes of organizations—that is, how people are hired, compensated, developed, and evaluated—all of which are aspects of organizational life that tend to privilege some groups over others. It also reviews research that points to remedies for these biases, illustrating that organizational practices can be sites for intervention and change. The chapter concludes with methodological and substantive recommendations for future research on discrimination and its remedies in organizations.

Faculty & Research

Managing Diversity at Spencer Owens & Co.

Abstract

Citation:

About the Author

More from the Author