Managing Diversity at Cityside Financial Services

Robin J. Ely; Ingrid  Vargas

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

Managing Diversity at Cityside Financial Services

by Robin J. Ely and Ingrid Vargas

Abstract

Cityside Financial Services, a disguised consumer bank, serves both a largely African-American urban community and a more affluent, predominantly white clientele. To match the gender and racial makeup of its staff to that of its customers, Cityside's sales division implemented an aggressive affirmative action hiring program. The program succeeded in raising the numbers of women to 50% of all employees and of African-Americans to 53% of middle managers and 25% of executives. Cityside operated a profitable business with high customer satisfaction rates that were widely perceived as a successful model of the "business case for diversity." Therefore, the bank's leadership was mystified to discover growing resentment and demoralization among its African-American employees.

Keywords: Selection and Staffing; Situation or Environment; Race; Employees; Gender; Customer Satisfaction; Diversity; Cross-Cultural and Cross-Border Issues; Banks and Banking; Banking Industry;

Format: Print

4 pages

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Citation:

Ely, Robin J., and Ingrid Vargas. "Managing Diversity at Cityside Financial Services." Harvard Business School Case 405-047, December 2004. (Revised April 2006.)

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.

Working Paper | HBS Working Paper Series | 2016

Explaining the Persistence of Gender Inequality: The Work-Family Narrative as a Social Defense against the 24/7 Work Culture

Irene Padavic, Robin J. Ely and Erin M. Reid

It is widely accepted that the conflict women experience between family obligations and professional jobs’ long hours lies at the heart of their stalled advancement. Yet research suggests that this “work-family narrative” is partial at best: men, too, experience work-family conflict and nevertheless advance; moreover, mitigating the conflict through flexible work policies has done little to improve women’s advancement prospects and often hurts them. Drawing on an in-depth case study of a professional service firm, we offer two connected explanations for the work-family narrative’s persistence. We first present data suggesting that this belief has become a “hegemonic narrative”—a pervasive, status-quo-preserving story that is uncontested, even in the face of countervailing evidence. We then take a systems psychodynamic perspective to show how organizations use this narrative and attendant policies and practices as an unconscious “social defense” to help employees fend off anxieties raised by a 24/7 work culture. Due to the social defense, two beliefs remain unchallenged—the necessity of long work hours and the inescapability of women’s stalled advancement. The result is that women’s thin representation at senior levels remains in place.

Keywords: 24/7 work culture; hegemonic narrative; social defense; work-family conflict; systems psychodynamic theory; Equality and Inequality; Organizations; Gender;

Citation:

Padavic, Irene, Robin J. Ely, and Erin M. Reid. "Explaining the Persistence of Gender Inequality: The Work-Family Narrative as a Social Defense against the 24/7 Work Culture." Harvard Business School Working Paper, No. 17-038, October 2016. View Details

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