Saudi Aramco: Company General Use Saudi Aramco: Company General Use

The Diversity Challenge Building an Inclusive Culture To Create Competitive Advantage

February 2015

Saudi Aramco: Company General Use

Agenda

!   The business case for diversity !  Diversity & the link with Saudi Aramco strategy !  Business & personal challenges

Saudi Aramco: Company General Use

What is Diversity, Why does it matter?

What is Diversity? !   Beyond “Equal Opportunities”

!   Recognizes the value of differences based on culture, gender, age, physical abilities etc

!   Encompasses acceptance and respect

Why does it matter? !   Attract and retain top talent

!   Key element of organizational health

!   Foundation block of high performing organization

At an Individual Level, Diversity is Fairness

Saudi Aramco: Company General Use

The Business Case

Better Business Performance !   Over 10 year period DiversityInc’s Top 50 Companies outperformed

the NASDAQ by 28% !   Companies with highest cultural diversity brought in nearly 15 x more

sales revenue than those with the lowest levels

!   Gender diversity accounted for a difference of $599.1 million in average sales revenue

Improve Organizational Health (turnover, absenteeism, low productivity) !   2 million people voluntary leave organizations due to perceived

unfairness

!   $64 billion cost to US corporations each year

!   This figure does not include litigation and loss of reputation

Institute for Entrepreneurial Thinking Ltd 2010

Saudi Aramco: Company General Use

Diversity is a still a challenge globally

Fortune 500 Board Diversity 2012 !   16.6% Women

!   13.3% Minority Men & Women

!   Under-25s twice as likely to have experienced age discrimination than other groups.

!   35% of graduates in Asia believe they have the competence to be a manager within 18 months … their managers think it will take 5 years.¹

UK Department for Work and Pensions Report 2012 CBRE Genesis Research Report Oct 2014

 

Saudi Aramco: Company General Use

Diversity is Critical to Saudi Aramco’s Strategy

Markets & customer base

!   Understand and respond to international customers from diverse cultural backgrounds

!   Build a global reputation as an ethical and socially responsible company

Innovation

!   Technology Leader

!   Adaptive organization

Employer of Choice

!   Values and ethics

!   Level playing field to inspire high performance

Saudi Aramco: Company General Use

How are we doing in 2014?

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Age Average Age: 37.1

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Demographics

!   Fall in average age from 40 in 2009 to 35 in 2023

!   Women in the workforce increased 50% over the last 10 years

!   10,261 Expats from 98 nationalities

Women

Culture

Saudi Aramco: Company General Use

Challenges at Organizational Level

Challenges

!   Pride in legacy

!   Conformity drives efficiency

!   Easier Communication

!   Nationalization imperative

!   Challenges our sense of identity as a Company

“You have great penguin potential”

B J Gallagher Hateley: A Peacock in the Land of Penguins

Saudi Aramco: Company General Use

Diversity is Challenging for Individuals

Challenges !   People like people like them

!   Conscious or unconscious bias based on limited experience or assumptions

!   Limiting self-beliefs

Saudi Aramco: Company General Use

Creating an inclusive workplace culture

!   Saudi Aramco strategy redefines what the company will do

!   Redefine Corporate Brand to communicate globally to key stakeholders

!   HR is updating policies and programs to:

!   Strengthen focus on ethics and values

!   Enhance leadership capabilities

!   Increase female participation

!   Accelerate the development of young talent

!   Create a level playing field for performance management

!   Clearer communication of business priorities to motivate and align effort

Saudi Aramco: Company General Use

What you can do to create an inclusive culture

!   Find out about others: find opportunities to work across functions and organizations

!   Be open minded

!   Help others: act as a coach or mentor

!   Welcome feedback and provide feedback

!   Challenge assumptions – your own and those of others

!   Create diverse work teams to spark fresh thinking

!   Network and provide opportunities for others

!   Acknowledge opportunities for improvement and take action

You can…

Challenge others’ assumptions about you …

Saudi Aramco: Company General Use

Some people who did just that …

Suhas Gopinarth Indian entrepreneur

CEO of GlobalInc IT Multinational Age 17

Malala Yousafzai Wins Nobel Peace Prize 2014

Age 17

Saudi Aramco: Company General Use Saudi Aramco: Company General Use

Saudi Aramco: Company General Use

Saudi Aramco Assessment Center Differences

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