What assumptions do you find most employees focus on?
There are two assumptions that seem to halt innovation in its tracks more than others: “This is how it’s always been done, so this is how we’ll continue doing it.” This organizational assumption is one of the biggest obstacles faced by employees. [The other is]“I’m not capable of innovating.” The belief that innovation is reserved for an elite group of super-geniuses.

How does holding onto assumptions prevent employees from being innovative?
Innovation begins where assumptions end. Our assumptions are just preconceived notions about how certain things should be done. They become rooted in our practices based on our personal experience or the organization’s. Going with assumptions is comfortable, but it also means there will not be any new growth. Growth requires innovation, and therefore, people must move beyond their assumptions.

How do you distinguish between true and false assumptions?
Assumptions are often based on some piece of data or experience. Rarely are they completely made up without any evidence to support them. The problem lies in people’s use of assumptions to cancel out any alternative solution. While one assumption may be based on years of experience and data, that does not mean that an alternative idea is completely wrong. They could both be right. The key to growth is experimenting and discovering the assumptions that produce the absolute best results.

When employees learn to abandon assumptions, where do they start to see benefits?
Assumptions put limitations on our ability to stretch our thinking. They draw a line in the sand that our mental abilities dare not cross because ideas on the other side are too unorthodox. When given free rein over our thinking, we start to see alternative solutions and new opportunities in our daily lives. Small innovations typically follow, such as streamlining simple tasks, or reorganizing our schedule in a new, more efficient way. Once you have a taste for this kind of improvement, you’ll start to suggest innovations that also influence other members of your organization, and this is when organizational assumptions start to be assaulted.

At the annual recognition gala in New York in October, ELC ushered in a new era by naming Donald its president and CEO. “I am excited to work with the membership of the ELC to accelerate African American inclusion in corporate America,” he says of his appointment. With increasing access to global experience on its agenda, as well as expanding the pipeline and preparing members to serve as corporate directors, the ELC board believes Donald represents the right leadership to direct the organization in the critical years ahead.

The organization’s new thrust was reflected in two separate daylong events: its 16th Annual Mid-Level Managers’ Symposium, “Maximizing Your Success in Uncharted Territory,” in which roughly 800 African American managers attended sessions on topics that included leadership development and negotiation skills; and the CEO Diversity Summit, attended by some of the nation’s leading chief executives and ELC-member executives who engaged in instruction and open dialogue about corporate diversity strategies. The conference brought together senior executives from more than 30 major corporations as well as those within three levels of the C-suite.

In exclusive interviews, Black Enterprise Editorial Director Sonia Alleyne talked with CEOs and top ELC members at the conference to understand their perspective on corporate inclusion and to glean advice for C-suite aspirants.

On the business commitment to diversity:
Robert Moritz
Chairman and Senior Partner
PricewaterhouseCoopers
“Some of the key learnings that have come out of the CEO Diversity Summit are around making sure that diversity is part of the business imperative. We have accountability [to] the businesses [we serve] to make sure diversity is part of their agenda. It’s not just an HR issue. It’s not just a growth issue. We’re looking forward to taking [what we learned] from the session back to our organization and changing the way we do business. No matter what you think about the recession, 97% of the CEOs we surveyed [recently] actually talked about the fact that talent management was still the No. 1 issue for them. Through diversity you get better answers to questions and concerns, better opportunities for people, and a better profile of your organization out in the public marketplace.”

On developing African American talent in global business:
Lawrence M. Drake II
Former ELC Interim President
Co-founder and CEO Hope 360o
“This year’s summit is really around the intersection of global talent and diversity. As we continue to expand the concept of diversity to a global perspective, we have to make sure we don’t marginalize the talent that African Americans can bring to that global landscape.  [We] obviously have to engage CEOs in a way where we challenge them to think broadly about how they’re utilizing talent, and where African Americans fit into that intersection as well.

[Young professionals] have to think of themselves as global citizens.  They have to look for opportunities not just in America but around the world to demonstrate that they understand the global economic output and impact that their company is having on this planet. When you understand that and you take assignments that give you that kind of responsibility, you’re going to be more valuable to the organization and, frankly, to many organizations.”

On the pursuit of innovation within your company:
Jerri DeVard / Principal
DeVard Marketing Group
Former Chair, Executive Leadership Foundation
“There’s usually no shortage of great ideas in organizations. Can you bring this idea from concept to execution, and what do you need to do in between thinking of the idea and making it work? That really comes down to knowing that the idea is feasible, that it fits within the strategy of your organization, that it can be profitable, and that you can operationalize it. The first tip is to be clear and concise around the innovation that you’re looking to present to the organization. Part of that is to demonstrate how the organization is going to be better as a result of this idea’s [implementation]. Then you have to be able to build a team that can pull it off. So, it’s [also] being very persistent and knowing who the stakeholders are that will make it a success.

Sometimes you have to accept that the organization may not be ready for your innovation. You sometimes have to retool it and hear what they’re saying in terms of why it doesn’t work, and make the idea stronger and better.”

On the value of diverse corporate boards:
L. Kevin Kelly / CEO
Heidrick & Struggles
“We want to make sure that we as an organization are very supportive of promoting diversity on boards. So, in conjunction with the ELC, we’re creating a database of ELC members and working on assessing them to see if they’re board-ready. And if they’re not, we’re working on development plans to help them become great board members down the road. Historically there’s been an excuse that there’s a lack of candidates, which we all know isn’t true. I think it’s making sure that the CEO and chairman of the organization make it their priority. You must have the patience to look at a number of candidates. If they’re not the candidate that’s diverse and has the background and skill set that you need, continue to say no until you find that person.”

On managers dealing with fear and opportunities in today’s economic environment:
Rick Frazier/Vice President,
Supply Chain The Coca-Cola Co.
“Some people can call this an environment of fear. This is an environment of opportunity. You can’t waste this crisis. So you have to understand where the opportunities are in the environment in terms of making sure you have the right people with the right capabilities in place—that you have a clear strategy in place, and you have clear metrics and ownership. This is a leadership moment and the companies that step up from a leadership perspective and provide the direction will come out of this in a better position in the future.”

What can readers expect to get from this book that’s different from others on diversity?
To my knowledge, this is the first book on diversity written by someone who has been a CDO and written from that perspective. So, one of the big differences is the practical insights and tips around what you can do to implement inclusion and diversity … so that it lives and resonates, and so that people get the sense that it’s part of the culture. To do that, what are some of the behaviors that you as a leader should be involved in? If you’re a CEO, what is your role and responsibility in terms of engaging the rest of the organization and holding them accountable for results? If you’re an individual within the organization [and] you’re not sure how to plug in, this book will give you some very practical ways you can get involved.

What are some of the biggest obstacles to following through on the intentions of making diversity a part of the company culture?
In this kind of work, there is rarely a silver bullet. That being said, I think one of the biggest obstacles is not having a clear strategy around what you are trying to achieve. You can’t boil the ocean. There may be a lot of things you want to do, but you must focus on the one, two, or three things you’re going to do over the next couple of years, see results, and then move on to some of the other things that need to get done. You must have a long-range view and understand what your business strategy is and how diversity and inclusion tie into that. Is it through marketing, talent management, or community involvement?

Where do you want to put your focus? It doesn’t need to be mutually exclusive, but you do need to have a finite number of small things that you are going to address and then go after them.

What determines how influential the chief diversity officer is in an organization?
Having positional authority, particularly those who report to the CEO—they are part of the C-suite. They understand fully what the expectations are around how to drive diversity goals; they are part of the leadership team. They go after running their business the same way [any other] business unit manager would go after driving his or her business. They understand what’s required to move things through their culture. They have a keen business sense and understand the market they’re in—which is critical to their success and ability to influence others. The CDOs we interviewed are not wallflowers; they’re not faint of heart. They are not people who sit back and wish things were different. These are individuals who are the conscience of the organization, who expect and believe that they can make a difference.

That focus must come through solid business objectives. Isn’t that correct?
If diversity and inclusion is some standalone thing outside the mainstream of how you do business, then it’s not going to help your business to be profitable. All business objectives are directed to satisfy customers and clients and help the business grow. If diversity is not part of that operations agenda in the same way—how is it adding to our business growth? How are we managing our talent so that we can meet client needs?—then you have a fundamental problem.

We’ve often heard that it’s important to monitor, measure, and reward evidence of inclusion, but would the CDOs you interviewed penalize, remove, or dismantle what may seem to be ineffective diversity structures or behaviors?
People like to be recognized when they do a good job. The trailblazers we talk to in this book tend to lead from a standpoint of rewarding people for heading in the right direction. They focus on rewarding and recognizing individuals and those parts of the organization that are doing things well and then make sure that that is showing up in the compensation. You also have to talk about who is making progress. If you’re making progress, you’d rather report that. If you had an executive who was not actively engaged in the change management efforts, the CDOs would see that as an obligation and requirement to help that person put a plan in place.

One of the keys to bringing about change to an organization–smal or large–is inspiring employees to work more efficiently and effectively. However, there are right and wrong ways to do that, says Melva Tate, president of Strategic HR Partnerships, a human resources consulting firm in Birmingham, AL.

Here are some tips to consider when striving to affect positinve change in your own company:

Do create a progressive discipline policy. Similar to the “three strikes and you’re out” rule, a progressive discipline policy gives employees a couple of chances to fail and try again. Such a policy awards persistence and improvement while ensuring that employees are aware of what’s expected from them in the long-term.

Do get a neutral party involved. Different managers may approach change in different ways. To make sure that an organization is consistent in its efforts to transform processes and procedures, let a human resources employee or consultant provide input on the big picture.

Don’t expect success overnight. With every change there’s a learning curve. Expect mistakes to be made and be open to tweaking things as you go along.

Don’t leave employees out of the process. When an organization is making major changes, employees should be allowed to give more input, not less. This is a good time to plan a retreat. “Find a way to get outside of the office to keep employees engaged,” says Tate. “You want to keep people connected.”

POP QUIZ:
Are you really ready for change?

The number one Do is have a plan. Strategic steps must be implemented throughout the process of changing your organization. For starters, it’s vital to do an assessment identity and prepare for remedying challenges before you confront them. Next, if the determination is made to terminate ineffective employees, this needs to be done appropriately. And finally, once your company’s wheels have been re-tightened (or replaced) it will take a proactive effort to maintain your momentum. (Check out “The Outcome of an Organizational Overhaul” in our December 2010 issue for tips on how to come out of change on top and with your bottom line up).

Tell us what you think. How far would you go to get your company on the proper path to profits? Terminate your workforce? Create a new business model? Let go of clients?

Read more small business advice…

• 7 ways to profit on Small Business Saturday
• How to prepare your company web site for holiday shoppers
• Watch: Nick Cannon on what it takes to be a successful young entrepreneur

Roberts talks about how not to make a bad situation worse

Sometimes bad things happen to good companies. A disastrous event (think BP oil spill) or personal scandal (think recent events surrounding Bishop Eddie Long in Atlanta) can taint your brand in the consumer’s eyes and make other brands wary of affiliating themselves with it. So what’s a company or an individual to do when it runs into trouble?

Dawn Angelique Roberts is a cofounder and managing partner of KD Communications Group, a full service communications firm out of Philadelphia. She also sits on the board of the National Black Public Relations Society and teaches a public relations principals and practices course at Lincoln University. Roberts explains the right and the wrong things to do if you or your company ever has to answer for an unfortunate or misguided incident.

Have a plan. Your company has a plan for other things— the first aid kit in HR, emergency evacuation procedures, the defibrillator in the conference room. It is equally important to have a plan for a public relations crisis. “Have a main contact person who has instructions to contact other members of the company who each have a specific action to carry out,” says Roberts. For example, one person could be appointed to deal with any inquiries from the press while another person could be responsible for rounding up the rest of the company and debriefing them on the situation. “It’s very important to speak in one voice; for the company to appear unified,” she says.

Don’t remain silent. Your inclination might be to say nothing and wait for the whole incident to blow over. After all, today’s headline news always becomes tomorrow’s birdcage liner. But, according to Roberts, saying nothing can often make the situation worse. “Legal counsel may encourage you to have no comment, but from a PR standpoint, don’t ignore an incident or scandal. As PR, we are more concerned with protecting the brand and will advise you on what’s best for the brand,” explains Roberts.

You don’t have to confirm or deny anything. There’s a big difference between acknowledging an incident and trying yourself or your company in the court of public opinion. Address the issue by saying something like, “We are aware of the incident/allegations and are looking into it further,” advises Roberts. A neutral response that neither admits guilt nor accepts blame is the best tactic.

Don’t lie. An incident or a scandal will only be made worse by lying about any aspect of it. As ugly as the truth might be, a deception in an attempt at a cover-up that’s found out is even uglier. It’s a risk better not taken.

Find backup. “Seek support from board members, industry experts, and other companies who will speak out publicly about the positive things the company or individual is associated with and has done,” advises Roberts.

Plan for the future. “Have a plan for when the crisis is over,” says Roberts. “Talk about what you/the company is doing now, what positive things you’re working on and have planned for the future. [If applicable,] talk about what you’re going to do to fix the incident or situation after the fact. Don’t concentrate on what just happened.”

Leverage the reach. “When you look at b-to-b, because you are only looking at one component that will fit into a larger piece (part of a supply chain), you can specialize more,” says Bussey. “When you’re with a consumer you tend to want to be everything to that particular consumer, that one-stop shop. B-to-b allows you to go deeper instead of wider.”

Pace yourself. To build and reap business from b-to-b relationships it takes much longer than in business-to-consumer relationships. “They have to be aware of you and know that you’re out there,” says Rugless. “After they build a relationship with you, then there’s an exploration of capabilities, both on your side and theirs. And then you have to wait for the opportunity to work together. So if someone is thinking about such a venture, they need to be realistic regarding how much lead time is necessary to build a b-to-b business.”

Find money to make money. Entrepreneurs should remain aware of laws and regulations, particularly on the federal side. “There are federal mandates for certain agencies to meet certain percentages and to do business with certain companies such as small businesses or women- or veteran-owned businesses,” says Bussey. “A good b-to-b strategy is to target those agencies or large prime companies doing business with those agencies.”

Bank on banks before you need them. Solid banking relationships are imperative to access capital. “Banks are lending to existing clients, whose businesses they really know,” says Rugless. He poses these questions to minority business owners: “Who are you banking with now? Do they know your business? Do they know you’re thinking about investing in b-to-b?” If so, Rugless advises sharing your business plan with your banker so he or she can figure out how the bank might be able to support its financial products. “Waiting until the end when you need to make the investment to keep the contract is a big mistake.”

Making bank relationships count is key. Entrepreneurs should have a depository relationship with their bank. “It doesn’t mean you have to have millions of dollars in there,” explains Rugless. “But have the title of a customer. And share your business strategy with them so they know who you are and what you’re trying to build.” He adds that the great part about business bankers is that they know other clients that could come in and help support you, because “it’s their job to grow more successful companies so their banking relationships increase.”

J. PHILLIP HOLLOMAN

Title: President and Chief Operating Officer, Cintas Corp.

Location: Mason, Ohio

Age: 53

Power Play: In three years as vice president of distribution, he turned the Distribution Division from operating $8 million in the red to operating $3 million in the black.

In light of the struggling economy, many companies are trying to find ways to save money. What strategies can you recommend to cut costs without hurting the bottom line?
The companies that are most profitable are the ones that have eliminated non-value-added work. What improves operation profit as a percentage to sales is work that produces output that the customer notices and is willing to pay for. You should challenge your employees to seize these opportunities, and cost savings will follow. Minimize all capital expenditures, scrutinize all expenses, and be vigilant about collecting accounts receivable. Cintas is being very aggressive in looking for opportunities to expand our market share so that we are prepared when the economy strengthens.

What corporate areas should be looked at first when making the decision to cut costs?
Do not take short-term cuts with your customer that will have adverse long-term effects. Make sure you take care of your customers by providing quality service that they can depend on. Make sure you endear your customers to the value proposition that you provide to them. Tighten your criteria for approving capital expenditures; make sure you are leveraging your purchasing power; conserve all forms of energy utilization; cut back on the frills associated with various informal businesses; reduce non-essential travel; and eliminate non-essential data collection and reporting. Overall internal reporting on various key performance indicators [KPIs] and trend information has proliferated. By reducing reporting on it, not only will you decrease non-value-added work, but employees can shift more from an internal KPI focus to an external customer focus.

How do you “sell” cost cuts across the organization?
Make sure your employees understand that we’re going through tough times economically and cutting costs helps retain jobs and benefits. Get your people to understand the big picture so that you come out as strong as possible once the economy strengthens. Engage your employees at all levels to participate in the process of generating ideas on how to cut costs. Don’t make this just a top-down exercise, but also encourage bottom-up participation. It’s also very important for upper management to “walk the talk.” For instance, you can’t tell your employees to eliminate all non-essential costs and then host an extravagant meeting.

One of the challenges for the COO is to balance short-term strategy with long-term vision. How do you continue to invest in innovation while managing the bottom line, particularly in tough economic times?
Part of the corporate culture at Cintas is to do what is right, not what is expedient. We do not take short-term gains at the expense of long-term values. During these tough economic times, we want to take every advantage to expand our market share. When our competition cuts back services or shuts down plants, we want to be ready and willing to offer our services to those affected customers. We will always continue to look for opportunities for innovation, but may exercise more scrutiny when determining which innovations will produce the best long-term value.

This article originally appeared in the January 2009 issue of Black Enterprise.

We’re not out of the woods yet, but sooner or later our economy will recover and this latest recession will be a thing of the past. But that doesn’t mean it’s time to relax. The post-recession economy will be characterized by new opportunities, new dangers and new rules, but it will be far from robust; this is not the time to fall back into pre-2008 habits and assumptions. That said, with the following in mind, you can slingshot your way from mere recovery to newfound prosperity.

Don’t Lose Your Focus. There’s nothing like fighting for survival to focus your concentration. The temptation, as the economy improves, will be to relax and take your eyes off the prize. Don’t do it—now’s the time for businesses to take the lessons of the past two years and go from mere survival to resurgent profitability.

Convert Desperation into Momentum. Both companies and individuals made desperate moves to stay afloat during the past two years, whether by cutting personal expenses or shedding workers. It was painful, but now that you are leaner, stronger and tougher, make it your goal to dominate the new landscape.

It’s Okay to Spend, But Continue to Seek Value. Yes, in order for a recovery to be sustained, we need to spend. But we can’t return to the recklessness that helped cause our economy to crash in the first place. Spend, yes. But focus on strategic value and real ROI—whether a business or an individual, get all the bang you can for your buck.

Alfred Edmond Jr. is the editor-in-chief of BlackEnterprise.com