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Volume 8, Number 1 January / February 2006
8.95 U.S.
Also Featuring ... Waste Managements Front-Runner Carlton Yearwood Leaders on Black Leaders
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2 Profiles in Diversity Journal January/February 2006
PUBLISHER James R. Rector
MANAGING EDITOR John S. Murphy
CREATIVE DIRECTOR Linda Schellentrager
ASSOCIATE EDITOR/ASSISTANT
TO THE PUBLISHER Damian Johnson
CONTRIBUTING EDITOR Laurie Fumic
OVERSEAS CORRESPONDENT Alina Dunaeva
WEB MASTER Jason Bice
LETTERS TO THE EDITOR
Commentaries or questions should be
addressed to: Profiles in Diversity Journal,
P.O. Box 45605, Cleveland, OH 44145-0605.
All correspondence should include authors
full name, address, e-mail and phone number.
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Three separate features in this, our inaugural issue of 2006, reaffirm
the importance of executive leadership as companies initiate and developdiversity practices.
First, we have an extraordinary interview with Larry C. Glasscock
chairman, president, and CEO of WellPoint, Inc.describing what it
takes to ensure the success of diversity initiatives in large corporations.
Mr. Glasscock sees diversity as a multidimensional concept that applies
to both the culture and composition of the firms workforce. It involves
everything from respecting regional differences to offering health insurance
information in a Mayan dialect for Guatemalan immigrant communities
in California. When a culture champion was needed within the company,
Mr. Glasscock took on the role himself, becoming chair of the Diversity
and Workplace Culture Executive Steering Committeea perfectexample of a leader leading.
Next, we kick off our Front-Runner series with a profile of Carlton
Yearwood, vice president of human resources, business ethics and chief
diversity officer of Waste Management, Inc. Youll like the no-nonsense
approach this former teacher and Marine takes to diversity development.
Communicate clearly. Talk frequently. Follow up tirelessly, he says.
Would you expect anything less direct from an admirer of Vince
Lombardi and Colin Powell?
Finally, Diversity Best Practices offers its list of 15 best practices
among companies with strong supplier diversity programs. It is no
surprise that high on the list is the need for top-level support within the
company. The leadership must come from the topfrom folks like
Larry Glasscock and Carlton Yearwood.
Throughout the year well be showcasing other companies whose
diversity and inclusion programs feature aggressive plans and measurable
achievements. Well focus on Exelon (March-April), Sodexho (May-
June), Shell Oil (July-Aug.), and Waste Management, Inc. (Sept.-Oct.).
Our March-April Front-Runner features Punam Mathur, Senior VP
Corporate Diversity & Community Affairs, MGM Mirage.
We have one more treat for you to kick start the year and your
thinking. Thats our feature Leaders on Black Leaders that starts onpage 58. We asked our readers to comment about Black History Month,
to share how they recognize black history, and to tell us about their
heroes. Their essays were more touching, thought-provoking, and
inspiring than we dreamed possible.
Weve packed a lot of good reading into this 80-page issue. Enjoy!
John MurphyManaging Editor
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On the Cover / Special Feature
CEO Larry C. Glasscock Leads the Corporate Culture at WellPoint, Inc.WellPoint is the largest publicly traded commercial health benefits company in America.
Mr. Glasscock describes the extraordinary work that goes into ensuring the success of
diversity and inclusion programs even as the company is expanding.
Carlton YearwoodWaste Management, Inc. Vice President
of Human Resources, Business Ethics,
and Chief Diversity Officer Carlton
Yearwood describes the companys
deep-rooted commitment to diversity at
every level.
17
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CatalystStereotypesWhat you dont see or hear in the workplace hurts
women. Catalyst has a new study, Women TakeCare, Men Take Charge: Stereotyping of U.S.Business Leaders Exposed. The study shows thatgender-based stereotyping may be the glue that
locks the panes of the glass ceiling in place.
Diversity Best PracticesSupplier DiversitySupplier diversity is an area of growing interest
for corporate America and for the government.
Corporations are setting ambitious goals for
themselves to reach out to businesses not
traditionally included in the supply chain.
Diversity Who, What, Where & When
8
14
76
departments
Leaders on Black Leaders
We asked corporate leaders to reflect on black historyand the leaders they most admire. The essays we
received were both touching and thought-provoking.58
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At Dell, we respect the significance of Black History Month and
understand the importance of continuing its legacy. In addition,
its another opportunity to let the world know about our
commitment to diversity in the workplace. We believe in bringing
together individuals with diverse backgrounds, thinking,leadership and ideas. Our employees are provided
with the best tools, like the Dell Latitude D610 with Intel
Centrino Mobile Technology, so that each individual has the
power to reach their full potential. In fact, diversity drives
innovation and makes Dell a more dynamic company.
Dell celebrates Black History Month.
Dell and the Dell logo are registered trademarks of Dell Inc. 2006 Intel, Intel logo, Intel Inside, Intel Inside logo, Centrino and the Centrino logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other co
All rights reserved. Dell Inc. cannot be held responsible for errors in typography or photography. Dell is an AA/EO employer. Workforce diversity is an essential part of Dells commitment to quality and to the future. We encourage you to apply, whatever
race, gender, color, religion, national origin, age, disability, marital status, sexual orientation, or veteran status.
How do you get started? Visit www.dell.com/pd
CAREERS AT DELL. CONSIDER THE POSSIBILITIES.
Jeanne Oliver uses a Dell Latitude D61with Intel Centrino Mobile Technolog
Dell recommendsWindows XP Professional
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National City TapsTerri Hamilton Brown forCorporate Diversity Post
Terri HamiltonBrown has joinedNational City ashead ofCorporateDiversity. In hernew role, Brownacts as the singlepoint of contactfor NationalCitys diversityand workforceinclusion pro-
grams, policies and procedures.National City Corporation (NYSE:
NCC), headquartered in Cleveland,Ohio, is one of the nations largest financialholding companies. The companyoperates through an extensive bankingnetwork primarily in Ohio, Illinois,Indiana, Kentucky, Michigan, Missouri,and Pennsylvania, and also serves cus-tomers in selected markets nationally.
Were proud Terri has decided tojoin our team, said Dave Daberko,
chairman and CEO, National CityCorporation. Terris new role under-scores our commitment to developingand implementing a corporate strategythat focuses on managing workforcediversity and inclusion. Terris talent,experience and passion will help usachieve that goal.
I am excited to be a part ofNational Citys sincere dedication tocreating a workplace defined by diversityand inclusion, said Brown. If oursuccess matches that of National Citys
other civic endeavors, we will haveachieved something very special.
Prior to joining National City,Brown served as president of UniversityCircle Incorporated, a nonprofit organi-zation established to promote andprovide direct services and real estatedevelopment activities in UniversityCircleClevelands premier arts, educa-tion and medical district. From 1998 to2003, Brown served as executive director
of the Cuyahoga Metropolitan HousingAuthority, where she was responsible for50,000 residents.
Brown has earned a bachelorsdegree in economics from TheUniversity of Chicago and a mastersdegree in city planning fromMassachusetts Institute of Technology.
Marie Y. Philippe, PhD, NowLeads Workforce Diversity &Inclusion at Excellus BlueCross Blue ShieldMarie Y. Philippe, PhD, is now corpo-
rate vice presi-
dent leading thecharge on
WorkforceDiversity &Inclusion for theentire organiza-tion at ExcellusBlue CrossBlue Shield.Dr. Philippe hasmore than 24years of business
experience at leading firms such asGoldman, Sachs & Co., Dell ComputerCorp. and most recently as director ofculture management at Global Crossing.Dr. Philippe is trilingual and renownedfor her contribution in the areas of
workforce multiculturalism.In her new role, Philippe will help
shape the companys strategy on multi-cultural talent acquisition, development,and retention as well as the future work-force planning and development.
Philippes educational background
includes a doctorate degree in culturalstudies from Bircham InternationalUniversity, bachelors and mastersdegrees in economics from the CityCollege of New York, and an MBA fromC.W. Post. She is a lifetime memberof the Black MBA Association and acertified professional in HumanResources.
Joan Kerr to Chair GlobalBusiness Committee
Joan Kerr, execu-
tive director ofAT&T SupplierDiversityPrograms, wasnamed chair ofthe GlobalBusinessCommittee ofthe WomensBusinessEnterprise
National Council (WBENC). Thecommittees mission is to work with
WBENC to build awareness of andfoster education about the role of
womens business enterprises (WBEs) inthe growing globalization of economies,supply chains and business opportunities.Kerr and other WBENC representativesattended a 2004 development conferencein Istanbul and met with international
womens business organizations andindividual WBEs eager to pursue oppor-tunities in the private sector. Kerrsprevious involvement with WBENC
includes serving as chair of the board ofdirectors; she has served as vice chair ofthe board of directors since June 2005.
Kerrs leadership in the supplierdiversity realm has been recognizedthrough her receipt of the Keeping thePromise Award from the CaliforniaDisabled Veterans Business Enterprise
Alliance, and her two-time receipt of theMBE Corporate Coordinator of the Year
Award from the National MinoritySupplier Development Council. Shealso received the Corporate Leadership
Award from Asians for Corporate andCommunity Action, an employee-initiated organization of the former SBCCommunications, Inc.
Kerr holds a JD degree from theUniversity of California at Davis, amaster of social work degree from theUniversity of Washington, and bachelorof science degrees in comparativereligions and psychology from theUniversity of California at Santa Cruz.
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BE SEEN. BE HEARD. BE HIRED. Think you have the talent to click with Time Warner?Then register your minority- or women-owned business on our supplier diversity Website. If you have superior products or services and pricing, you could find yourselfworking with some of the worlds leading companies in media and entertainment.
For your opportunity, visit www.TWSupplierDiversity.com
www.TWSupplierDiversity.com
Talent meets opportu
ittyopportunitystarts hherestarts here
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The Hartford SelectsMedina Jett for Group
Benefits Compliance PostSIMSBURY,Conn.TheHartford FinancialServices Group,Inc. (NYSE: HIG)has announcedthat Medina Jett,an attorney withbroad complianceexperience, hasjoined the companyas vice president
and chief compli-ance officer for its Group BenefitsDivision.
The Hartfords Group BenefitsDivision is a leading provider of groupdisability and life insurance, providinga portfolio of products to employers,associations, and affinity groups thatprotects employees, members, and affili-ates. In her new role, Jett will be respon-sible for the compliance functions forThe Hartfords Group Benefits Divisionand will also serve on The Hartfords
corporate-wide compliance council.The Hartfords long-standing
commitment to integrity and the reputationthat we have earned with our customersand within our industry are among ourmost important assets, said DickMucci, executive vice president anddirector of The Hartfords GroupBenefits Division. Medinas complianceand claims management experience isvitally important in an increasinglycomplex regulatory environment.
Jett brings many years of insurancecompliance experience to The Hartford.She last served as vice president andchief compliance officer for Prudentialsretirement business. Immediately priorto her work at Prudential, she held asimilar role at Cigna. When Prudentialacquired Cignas retirement business inApril 2004, Jett was responsible formanaging the integration of the twocompanies compliance organizations.
Jett received her law degree from
Georgetown University and is a graduateof Wesleyan University.
The Hartford is one of the largestfinancial services and insurance companiesin the United States, with worldwiderevenues of $22.7 billion in 2004. Thecompany is a leading provider of invest-ment products; life insurance and groupbenefits; automobile and homeownersproducts; and business property-casualtyinsurance. International operations arelocated in Canada, Japan, Brazil and theUnited Kingdom.
DaimlerChrysler Financial
Services AnnouncesAppointment of Tracy L.Hackman to Vice President,General Counsel andRegional Secretary
FARMINGTONHILLS, Mich.DaimlerChryslerFinancialServicesAmericas hasannounced theappointment of
Tracy L.Hackman, whojoined the com-pany as a staffcounsel in 1987,
to vice president, general counseland secretary for the Americas Region,effective January 1, 2006.
Hackman, who has served as associategeneral counsel and secretary since 1998,will become the first female executive inthe companys 41-year history to leadthe Office of the General Counsel.
DaimlerChrysler Financial ServicesAmericas LLC is a company of theDaimlerChrysler Financial ServicesGroup, headquartered in Berlin,Germany, which operates in 39 countrieswith an employee base exceeding 11,000and a global portfolio of approximately$135 billion. DaimlerChrysler FinancialServices is one of the leading financialservices organizations worldwide.
Hackman succeeds Christopher A.
Taravella, vice president and generalcounsel, office of the general counseland compliance services, who retired atthe end of 2005.
We are very pleased to announcethe appointment of Tracy Hackman tolead our Office of the General Counsel,said Klaus Entenmann, president andCEO of DaimlerChrysler Services NorthAmerica. Tracys institutional knowledgeof our company and the automotivefinancial services industry, combinedwith her expertise in regulatory affairs,commercial transactions, and corporateaffairs, will serve us well in our highly
competitive business environment.Hackman has held a number ofincreasingly responsible positions withinDaimlerChrysler Services andDaimlerChrysler Insurance Company.Her most recent position was associategeneral counsel and corporatesecretary, DaimlerChrysler ServicesNorth America, and secretary,DaimlerChrysler Insurance Company.
She received a BA in finance (1982)and an MBA in advanced management(1996) from Michigan State University.
She received a JD from the University ofDetroit School of Law in 1986.
Allstate AppointsCynthia Hardy Young asNew Encompass PresidentNORTHBROOK, Ill.Cynthia HardyYoung has been appointed as the
president ofEncompassInsurance.She replacesDouglas R.
Wendt, whoannounced hisdecision toretire after 32years of service.
Cynthia hasthe experience
and ability to position Encompass as thecarrier of choice for the independentagent, said Edward M. Liddy, chairmanand CEO, The Allstate Corporation.
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12 Profiles in Diversity Journal January/February 2006
We are confident that Encompass willcontinue to grow profitably under herleadership.
Young joined Allstate in October,2005, as the assistant vice president ofproduct operations for Allstate ProtectionsNortheast region which includesConnecticut, Maine, New Hampshire,Pennsylvania, Rhode Island, andVermont. Previously, Young was presi-dent of the personal lines division forAllmerica Financial Group. Prior to thatshe was vice president of product man-agement for the personal lines divisionof The Hartford Financial ServicesGroup, Inc., product manager and pro-fessional liability claims attorney atProgressive, and litigation associate atJones, Day, Reavis & Pogue.
Young received her bachelor ofscience in economics from XavierUniversity of Louisiana and her juristdoctorate from the University of NotreDame School of Law.
Encompass Insurance is a division ofAllstate Insurance Co. (NYSE: ALL)which provides insurance productsthrough independent agents. Encompass
is a brand devoted exclusively to inde-pendent agents selling automobile,homeowner, and related insurance tomore than one million customersthrough a network of more than 2,800independent insurance agents.
Allstate is the exclusive administratorof Encompass personal automobile andhome insurance policies issued by theinsurance affiliates of CNA FinancialCorporation. More information onEncompass Insurance can be found atwww.encompassinsurance.com.
ChiquitaBrandsInternationalElectsDr. Clare M.Hasler toBoard ofDirectorsCINCINNATI,OhioChiquita
Brands International, Inc. (NYSE:CQB) announced that Dr. Clare M.Hasler, 48, has joined its board of direc-
tors. Hasler is executive director of theRobert Mondavi Institute for Wine andFood Science at the University ofCalifornia at Davis. She is a leadingauthority on functional foods thatprovide specific health benefits, such aslowering the risk of heart disease orcancer in addition to meeting basicnutritional needs.
We are delighted to welcome Clareto Chiquitas board, said FernandoAguirre, chairman and chief executiveofficer. Her extensive experience infood science, nutrition, and food safetywill help Chiquita as we continue tofocus on delivering healthy andconvenient food choices.
Chiquita has embarked upon anexciting mission to become the globalleader in branded and value-addedproduce by helping the worlds con-sumers enjoy nutritional and healthyproducts, Hasler said. I am excited toadd my skills and experience toChiquitas board and to work closely
with this management team.Hasler holds a dual doctoral degreein environmental toxicology and humannutrition from Michigan StateUniversity and a masters degree innutrition from the Pennsylvania StateUniversity. She also earned a mastersdegree in business administration fromthe University of Illinois at Urbana-Champaign.
Chiquita Brands International, Inc.(www.chiquita.com) is a leading interna-tional marketer and distributor of high-
quality fresh and value-added produce,which is sold under the Chiquita premiumbrand, Fresh Express and other relatedtrademarks. The company is one of thelargest banana producers in the worldand a major supplier of bananas inEurope and North America.
Johnson Controls ReceivesHighest Honor From NAACPMILWAUKEE, Wisc.JohnsonControls (NYSE: JCI) has received theNAACPs highest honor for the companysleadership and continued support ofdiversity-based initiatives in Milwaukee.
The Working Together to Make aDifference Award was a highlight of theNAACP Milwaukee Chapters recentannual Dr. Martin Luther King/RosaParks Celebration.
Encouraging diversity is an ongoingcommitment at Johnson Controls, saidJohn Barth, chairman and CEO. When
diversity is achieved, everyone benefits, andJohnson Controls will continue to supportdiversity initiatives throughout Milwaukee.We are honored to receive this prestigiousaward, Barth added.
Also recognized at the event weretwo members of Johnson Controlssenior management team, Darlene Rose,senior vice president, corporate strategy;and Mary Dowell, director of communityrelations, for their exemplary work inencouraging corporate participation indiversity-specific programs and events.
Rose was acknowledged for her work inand strategic planning of the JohnsonControls-sponsored NAACP NationalConvention held in Milwaukee last July.Dowell received the Drum Major forJustice Award, recognizing her outstandingefforts and service in Milwaukeesminority community.
Johnson Controls is a global leaderin the production of innovative automotiveinteriors that help make driving morecomfortable, safe, and enjoyable. Forbuildings, it offers products and services
that optimize energy use and improvecomfort and security. Johnson Controlsalso provides batteries for automobilesand hybrid electric vehicles, along withsystems engineering and service expertise.The company employs 136,000 employeesin more than a thousand locations, servingcustomers in 125 countries. Founded in1855, the company is headquartered inMilwaukee. For additional information,please visit www.johnsoncontrols.com.
PDJPDJ
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Can one person
change the world?
One did.
Rosa Parks
February 4, 1913 October 24, 2005
The world is a better place because Rosa Parks lived in it.
The men and women of Lockheed Martin honor her life
and her contribution to the advancement of freedom for all.
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Women hold more than one-half of all management andprofessional positions, but
there are currently only seven Fortune500 companies with women CEOs. Atthe same time, research shows thatwomen and men aspire to top positionsequally and analyses of more than 40studies show very little differencebetween womens and mens leadershipabilities. What can account for thestartling gender gap in business leadership?
What holds the glass ceilingtogether?The glass ceiling has entered the collec-tive consciousness as one reason why women dont advance. But for mostpeople, the factors that actually comprisethe glass ceiling are still vague andunexplored. When pressed to name aspecific component of the glass ceiling,some people might identify gender-based
stereotyping. But here again, a firmunderstanding of this concept is usuallylacking.
These deficiencies hurt womenbecause they fail to identify the specificactions and behaviors that hold womenback. And without that knowledge, it isimpossible to recommend meaningfulchanges. However, Catalysts new study,Women Take Care, Men Take Charge:Stereotyping of U.S. Business LeadersExposed, fills in many of the missing
pieces, and shows us that gender-basedstereotyping may be the glue that locksthe panes of the glass ceilingin place.
Gender stereotyping 101 We rely on stereotypesgeneralizationswe make to differentiate groups of peopleto help us save time when figuring outhow to respond to people. But when theyare incorrect, as they are likely to be whenapplied to groups as diverse as women
and men, they create a system of percep-tions that has little basis in reality. In theworkplace, the reality is that there are fewdifferences between womens and men'sleadership. Yet gender-based stereotypingis alive and well in business and plays amajor role in both womens and mensjudgments about women leaders.
How do they work? Gender-basedstereotypes anticipate and respond to thelegitimate differences between womenand men, helping us avoid spending
energy determining personalities fromscratch whenever we meet someone.Because we are usually unaware of therole stereotypes play in our perceptions ofothers, we tend to believe that our stereotype-based judgments are based on facts. Tomake matters worse, stereotyping canelicit from people the very behaviors thatconfirm our stereotypes, and we have atendency to selectively remember actionsthat confirm our stereotypes, while wedismiss those that do not. The self-
reinforcing misperceptions that resulthave become a powerful and invisiblebarrier to womens advancement.
Women and men stereotypeBecause of the silent and insidious natureof stereotyping, it is difficult to quantifyits existence. However, Catalysts lateststudy, conducted in cooperation withTheresa Welbourne, PhD, of the RossSchool of Business at the University ofMichigan, and eePulse, Incorporated,
does just that, revealing that women andmen stereotype senior leaders in similar ways. In the study, 296 top corporateleaders, including 101 CEOs, were askedto judge how effective women and menare on ten behaviors essential to leader-ship. The task-oriented behaviors (prob-lem-solving, influencing upward, anddelegating) were classified as stereotypi-cally masculine. The people-orientedbehaviors (supporting, rewarding,mentoring, networking, consulting,
team-building, and inspiring) were classi-fied as stereotypically feminine.Catalyst found that both female and
male corporate managers perceive womenleaders as better at taking care behaviorssuch as rewarding and supporting.Meanwhile, they perceive men as betterat taking charge behaviors such asdelegating and influencing upward. Jeanine Prime, PhD, a director ofresearch at Catalyst and author of thestudy, remarks that its often these
StereotypesWhat you dont see or hear in the workplace hurts women.
By Catalyst
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Profiles in Diversity Journal January/February 2006 15
taking charge skillsthe stereotypicallymasculine behaviorsthat are seen asprerequisites for top-level positions.Misperceptions about those behaviorsand not fact-based informationfrequently influence decisions thatultimately shortchange women.
Disturbing effects on women While women and men judged mostleadership traits similarly, problem-solvinga hallmark trait of a CEOwas
the behavior on which women and menmost disagreed. Women saw women asbetter problem-solvers than men, butmen saw men as better problem-solvers.Since men far outnumber women in theupper levels of the corporate world, thestereotypes they hold dominate and,ultimately, undermine womens abilitiesto influence and motivate teams andsubordinates. This may be particularlychallenging for women, who hold only15.7 percent of Fortune 500 corporate
officer positions, as they may not be ableto fall back on their status in the hierarchyof their organizations as an alternativesource of influence.
For women leaders in traditionallymasculine occupations (for example,general management, finance, sales,information technology, and research anddevelopment), the problems are evenworse. The study shows that people whoreport to women in those fields aresignificantly more likely to have negative
perceptions of women leaders thanpeople who work for women in feminineoccupations such as human resources orpublic relations. This may seem counter-intuitiveafter all, shouldnt people who report to women have more factsand experience on which to base theirperceptions about women?
Not according to psychologists, whohave found that the tendency to processinformation selectively is especially likelywhen there is a status or power differencebetween the individuals involved. Since
stereotypes reinforce themselves, people with women supervisors are actuallymore liable to believe that women are lesscompetent leaders. The resulting credibilitydeficit obliges women leaders to spendtime defending decisions to subordinates when they all could be doing moresubstantive work. The vicious nature ofthis situation cautions us that simplyhiring more women leaders will not curbstereotyping in the workplace, especiallyin masculine occupations.
A call to actionUnless organizations take active steps toeradicate bias, women leaders will continueto be undermined and misjudged, regard-less of their talents and aptitudes.However, hiring more women executivesisnt enough. Other changes companiesshould implement include: Adding greater rigor to the
performance evaluation process.
Implementing a system of checksand balances to safeguard againststereotypic bias.
Educating managers and executivesabout the latent influence ofstereotyping and ways to override it.
Showcasing the achievements ofwomen leaders, particularly those intraditionally male-dominated fields.
By following these steps to dismantle
the network of prejudgment, assumption,and misrepresentation created by stereo-typing, companies will not only improve womens productivity but also increasegeneral productivity and profits. As IleneH. Lang, president of Catalyst, empha-sizes, until we break the spell of stereo-typing, companies will continue tosuboptimize women and lose a vitaltalent poolone they, frankly, cannotafford to ignore.
Catalyst is the leading research and advisory
organization working to advance women in
business, with offices in New York, San Jose,
and Toronto. For more information or to
download a free copy of Women Take
Care, Men Take Charge: Stereotyping
of U.S. Business Leaders Exposed, visit
www.catalyst.org. You may also sign up to
receive Catalysts issue-specific newsletter,
Perspective, and monthly email updates at
PDJPDJ
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Chrysler, Jeep, and Dodge are registered trademarks of DaimlerChrysler Corporation.
Diversity.
Its what drives us.
From the cadres of minority designers, engineers, and office staff to the men and women on the
factory floor and our network of minority owned dealers, we're dedicated to creating the best cars
and trucks possible. In fact, this dedication to work ethic, smarts, and quality is inherent in every
vehicle we produce. It's what makes us the proud American brands of DaimlerChrysler Corporation.
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Taking up the challenge
IMAGINE BEING EIGHT YEARS OLD AND HAVING TO TRANSLATE A
DOCTORS COMPLICATED DIAGNOSIS TO YOUR MOTHER BECAUSE SHE
DOESNT SPEAK ENGLISH, CHALLENGES LARRY C. GLASSCOCK. YET EVERY
DAY, PEOPLE ACROSS THIS COUNTRY FIND THEMSELVES IN A POSITION
LIKE THAT. IF YOU WANT TO UNDERSTAND WHERE OUR COMMITMENT TO
DIVERSITY MANAGEMENT COMES FROM, THERES A GOOD PLACE TO START.
Mr. Glasscock is the chairman, president and CEO of WellPoint,
Inc., the largest publicly traded commercial health benefits company
in America. Formed in 2004 through the merger of Anthem, Inc.
and WellPoint Health Networks Inc., WellPoint now serves approxi-
mately 34 million members: Roughly one in nine
Americans carries a health benefits card from a WellPoint
company.
WellPoint carries out its commitment to diversity
at both the corporate and local levels. It is about our
Diversity Management:A Vital Ingredientfor a Healthy CorporateCulture
Putting principlesinto practiceat WellPoint, Inc.
Profiles in Diversity Journal January/February 2006 19
Special Feature WellPoint
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20 Profiles in Diversity Journal January/February 2006
communities and the people who live
there, says Mr. Glasscock. If you are
truly interested in meeting people
health care needs, you have to under-
stand their community and be a part of it.
WellPoint is doing just that. A cas
in point: the companys October 15th
donation of $1 million to the California
Latino Medical Association (CaLMA)
The funds are directed toward attracting
and training qualified, Spanish-speaking
nurses to communities where they are
needed.
Latinos are the most widely under
represented minority in nursing, say
CaLMA Executive Director Christine
Gonzalez. They comprise the larges
number of wait-listed students, apar
from Native Americans. WellPoint
contribution has created an exceptiona
opportunity to close the gap.
Ms. Gonzalez applauds WellPoint
determination to answer a real and
pressing need.
They came to us and said, Where
is help needed most? she explains. W
pointed to the language issue and said i
would take a lot of money to address i
in the proper way, and they were behind
it one hundred percent.
Larry C. Glasscock WellPoint
A Brief History of WellPoint
WellPoint, Inc. is the product of a merger between
Anthem, Inc. and WellPoint Health Networks Inc.
Anthem, Inc. grew out of two Indianapolis-based mutual
insurance corporations formed in the 1940s that eventually
merged to form Blue Cross and Blue Shield of Indiana.
WellPoint Health Networks Inc. was formed in 1992 to
operate Blue Cross of California's managed care business;
it was spun off in 1993 as a separate publicly traded entity.
WellPoint is a licensee of the Blue Cross and Blue Shield
Association in 14 states.
Other subsidiaries include:
HealthLink: network rental for workers' compensation
and health benefits programs in Missouri, Arkansas,
Illinois, Indiana, Iowa, Kentucky, and West Virginia
UniCare: full-service health plan that serves medical
members nationwide
AdminaStar Federal and United Government
Services: administrators of government health benefits
programs, primarily Medicare
Lumenos: innovative, consumer-driven health care
products acquired by WellPoint in mid-2005
Specialty: a wide range of benefits and services
including vision, dental, pharmacy-benefit management
and behavioral health programs
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Profiles in Diversity Journal January/February 2006 2
Not only will WellPoints contribu-
tion subsidize the training of Spanish-
speaking nurses, it will also allow existing
health care practitioners to further their
education. As Ms. Gonzalez explains,
With more Spanish-speaking PhDs,
we will have more Spanish-speaking
teachers. And those teachers will be able
not only to help provide medical training
but also to raise cultural awareness among
nurses of all backgrounds. This program
really stands to build health care capacity
within Californias Latino community.
Even the governor is watching closely
now to see the kinds of results we
achieve.
A community business
While WellPoint operates on a
national scale, its focus remains local. Its
mission is to improve the lives of
the people we serve and the health of our
communities. To carry out this mission,
WellPoint currently has a force of approx-
imately 42,000 associates, all focused on
balancing its one company, one team
core value and its national scope with a
strong local presence. And WellPoint
has made managing diversity a central
component of its corporate culture.
Setting the course
WellPoints leadership team recog-
nized the 2004 merger of two diverse
company cultures as an ideal opportunity
to define a new, unified corporate
culture and establish understanding of
the companys strategic direction among
its associates.
Just weeks after the merger, the
executive leadership team, led by Mr.
Glasscock, dedicated an intensive three-
day session to defining a set of values and
guiding behaviors. Diversity manage-
ment was a strategic focus for both legacy
companies, and it was clear that it should
remain so for the new company, as an
integral element in meeting the goals set
forth in its long-term strategy.
Specifically, the WellPoint team
identified several areas in which diversity is
a core consideration:
Integrating diversity-related values and
behaviors into the new corporate culture
Special Feature WellPoin
WellPoint, Inc. Company Snapshot
Business: Health benefits
Headquarters: Indianapolis, IN
Website: www.wellpoint.com
2005 Annual Revenue: approximately $45 billion
Number of Associates: approximately 42,000
Number of Members: approximately 34 million
Corporate Diversity Stats (through 2005)
Management positions held by women: 60%
Management positions held by persons of minority
background: 18%
Total promotions earned by persons of minority
background: 40%
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Larry C. Glasscock WellPoint
Fostering supplier diversity strategies
Engaging in culturally relevant
community relations and philanthropy
Developing leaders for tomorrow
Equipping those leaders with the
ability to manage an increasingly
diverse workforce
Understanding and addressing racial
and ethnic health disparities
Addressing the needs of the diverse
mixture of the uninsured and the
under-insured.
These considerations touch on
virtually every facet of WellPoints
business. Mr. Glasscock took it upon
himself to personally communicate the
companys new core values to managers
via face-to-face meetings and to all
associates via global voice and e-mail
messagesplacing strong emphasis on
WellPoints commitment to diversity. In
fact, when it came time to appoint a
company culture champion, it was Mr.
Glasscock himself who assumed the
role. As such, he chairs the Diversity
and Workplace Culture Executive
Steering Committee, which is made up
of the chairman, president and CEO
and his direct reports.
22 Profiles in Diversity Journal January/February 2006
Larry C. Glasscock, center, meeting associates from Lumenos,which was acquired by WellPoint in mid-2005 and specializes
in innovative, consumer-driven health care products.
Weve said we intend to transform
health care and become the most
valued company in our industry.
Diversity management is an
integral part of that...
Larry C. Glasscock
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Special Feature WellPoint
Diversity management at
WellPoint today
WellPoint actively cultivates oppor-
tunities for women and individuals from
minority backgrounds to advance
through the company ranks. In 2005,
60 percent of its management positions
were held by women and 18 percent by
minorities. The number of women in
management at WellPoint has climbed
more than ten percent since the turn of
the millennium, and this year alone nearly
40 percent of company promotions were
awarded to minority persons.
WellPoint also supports external organ-
izations that are focused on diversity.
It helped found the Diversity Leader-
ship Academy of Greater Indianapolis
(www.DLAGI.org) in 2003, which has
attracted national leaders such as Julian
Bond, Ray Suarez, and the late Coretta Scott
King to Indianapolis. More than 130 com-
munity and business leaders have graduated
from the academy since it was founded.
As well, WellPoint sponsors the
American Institute for Managing
Diversity (AIMD), the parent organiza-
tion that founded the Diversity
Leadership Academy. This November,
Mr. Glasscock served as co-chair of
AIMDs 20th anniversary celebrations in
Atlanta.
The companys focus on managing
diversity has not gone unnoticed by
external organizations, with recognition
coming from a wide range of sources
including Working Mother magazine,
Black Equal Opportunity Employment
Journal, the National Association of
Female Executives, FORTUNE, and
CAREERS & the disABLEDmagazine.
While this recognition is welcomed
by all at WellPoint including Mr.
Glasscock, he points to the companys
new vision and mission as containing the
real measures of success.
Weve said we intend to transform
health care and become the most valued
company in our industry, he explains,
quoting WellPoints vision statement.
Diversity management is an integral part
of that: striving to mirror the markets in
which we operate and meeting the needs
of an increasingly diverse customer base.
Im proud of the commitment our com-
pany has made. Im excited by the steps
weve taken. And Im looking forward to
continued progress in the years to come.
Profiles in Diversity Journal January/February 2006 2
Associate Julie Schlereth meeting Larry C. Glasscockafter the close of the Anthem and WellPoint merger.
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Larry C. Glasscock WellPoint
24 Profiles in Diversity Journal January/February 2006
WellPoint Chairman,
President and CEO
Larry C. Glasscock
shares his views on
managing diversity
and why its a priority
Mr. Glasscocks interest inand com-
mitment todiversity is longstanding.
And as he makes clear, his goal for
WellPoint is to ensure that diversity
management is not just an initiative, but
a fundamental way of doing business.
Part of WellPoints stated
vision is to transform healthcare. Thats an ambitious
goal, to say the least. What
has motivated it?
Weve done a great deal of research into
the state of our industry and come up
with four interrelated issues that consti-
tute what we call a burning platform
conditions that absolutely rule outmaintaining the status quo. These are:
the growing ranks of the uninsured;
the continuing deterioration of public
health; the rising cost and declining
affordability of health care; and the need
for improvement in the safety and qual-
ity of care. These are big issues, and we
see it as our responsibility as an industry
leader to take action on them.
How do those concerns
relate to your stance on
diversity?
Diversity runs right through all of these
concerns. Recent research by organiza-tions like the Institute of Medicine and
the American College of Physicians has
shown that there are racial and ethnic
disparities in health care. Minorities do
not always receive the same quality of
care as non-minorities. They do not
have the same access to health care, and
theyre not always well-represented inthe ranks of health professionals
Overall, they have poorer health status
than non-minorities. Were committed
to understanding and addressing these
issues.
What can WellPoint do to
change that?Well, as I mentioned, one of the factors
contributing to health disparities for
people of color is the dearth of health
care professionals of color. The
WellPoint Foundation recently made
million-dollar grant to the California
Latino Medical Association to fund
Dedicated to diversityinterview::
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Special Feature WellPoint
Profiles in Diversity Journal January/February 2006 25
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scholarships for Hispanics and Latinospursuing nursing careers. Were building
capacity in the region that will improve
access to health care and address some of
those large-scale issues identified in our
mission statement.
So it's important for
WellPoint to have a diverseworkforce to make a connec-
tion at the community level?
Absolutely, it is. Health care is about
people, and the people of this country
are diverse. To continue to develop a
diverse workforce, were looking at a
combination of external recruitment
and internal development. Both
approaches will produce some positive
short-term results, but were also
committed to doing the relationship-
building and branding work necessary
to stand out as an employer of choice
over the long term.
What are you doing at theleadership level to support
your diversity efforts?
WellPoint has a dedicated Diversity and
Workplace Culture (DWC) team led by
our vice president of Diversity and
Workplace Culture, David Casey. David
reports to Randy Brown, our senior
vice president of Human Resources, who reports directly to me. And ou
Executive Leadership Team acts as the
DWC Executive Steering Committee,
and I chair that committee, so were all
very closely involved in determining
diversity strategies, measures and
approaches. Also, when I think about
the makeup of the companys leadership,I strive to ensure that there is diversity of
thought and experience at the table.
When you look at the backgrounds o
our leadership team, you will find a very
diverse set of professional experiences
and perspectives.
Do you believe the rest of thecompany understands that top-
tier commitment to diversity?
Theres always education and communi-
cation to be done, particularly in a com-
pany thats just come through a very
complex merger as we just have. But I
have to say I think our commitment and
values are understood very well through-
out WellPoint. Weve had more than
200 associates volunteer to be Diversity
and Workplace Culture Ambassadors
This is a very diverse group, representing
a broad range of backgrounds, job func-
tions and geographies. Group members
actively assist with training and educa-
Larry C. Glasscock WellPoint
interview::
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tion, communications and celebratoryevents. They also serve as focus groups as
we assess our diversity strategies.
That sounds like a good
inclusion mechanism. Are
there other ways WellPoint
ensures the inclusion of
employees?
In November, we conducted our first
integrated, all-associate survey since the
merger. Were now analyzing the survey
data from a number of different per-
spectives: ethnicity, gender, age, tenure,
business unit and location. We feel this
will provide a clear line of sight for the
development of effective action plans
and support our core value of personal
accountability for excellence.
How do you deal with those
who think inclusion programs
for under-represented
groups are exclusionary
for others?
We have a philosophy that diversity
management is about much more than
race and gender. Our strategic approach
to diversity management really is
designed to be inclusive of everyone.
It has to be, because its driven by our
business objectives, and we cant afford
to be exclusionary in any regard. That
said, there will be times it is necessaryfor us to specifically recruit minorities
and womenfor instance, in situations
where we may not be as representative of
the market as we would like to be. And
because we are a government contractor,
affirmative action planning is a very real
and essential component of our diversity
management strategy. At the end of theday, our overall goal is to serve our
diverse marketplace with associates who
best represent that marketplace.
How do you see that market-
place changing in the future?
A key trend underway today is toward
CDHPsconsumer-driven health plans.
These are plans that allow consumers to
take a more active role in their health
and health care. By giving consumers
greater choice and responsibility,
supported by much better information
about health care options, consumer-
driven products can better meet the
needs of diverse individuals. We believe
the demand for these offerings is going
to keep growing. And its already chang-
ing the way we design our products and
services. For us, its an exciting opportu-
nity to interact closely with the end
users of our plans and products, to really
engage on the local, individual level.
Special Feature WellPoin
:: interview
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WellPoint strategies for
managing diversity
At WellPoint, diversity is a multi-
dimensional concept. It applies in the
workplaceboth culturally and in terms
of the composition of the companys
workforce. It applies in the marketplace
encompassing everything from respect
for regional differences to ensuring that
WellPoints slate of health insurance
products and services answers the full
range of consumer needs.
From WellPoints perspective,
diversity also has a great deal to do with
opportunity, whether its the opportunity
for someone from a minority back-
ground to advance professionally, or the
opportunity for Americans without
health insurance to gain access to the
care they need.
To meet its diversity-management
objectives, WellPoint engages in a wide
range of programs and initiatives, the
majority of which are intended to have a
discernable impact in the communities
where the company operates. Its strategies
are based on the four-quadrant model
established by the American Institute
for Managing Diversity. That mode
involves:
1. Addressing issues of workforce
representation
2. Engaging associates through
meaningful relationships
3. Continuously assessing company
policies, systems and behaviors
4. Strategically leveraging all internal
and external diversity mixtures (which
in WellPoints case include customers,
shareholders, suppliers and others).
Covering all the bases
WellPoint strives to ensure that it
workforce mirrors its markets by recruit-
ing and engaging a broad range of talen
across all levels of the organization
In addition to diversity-oriented
employment campaigns via the Internet
print and broadcast media, direct mai
and career fairs, WellPoint engages in
various educational outreach activities
One such activity is its partnership with
INROADS, an organization that
provides business internships to promis-
ing young people of color while giving
corporations the opportunity to develop
diverse managerial talent.
WellPoints Core Values
One of WellPoints first post-
merger integration projects was
to articulate a new set of core
values for the company. Crafted
by Mr. Glasscock and his
executive team over a three-dayretreat, those values were
formulated as follows:
Customer First
Lead Through Innovation
One Company, One Team
Personal Accountability
for Excellence
Integrity
These core values are supported
by detailed guiding behaviors that
provide a solid foundation for the
companys success.
Larry C. Glasscock WellPoint
A multidimensional approach
28 Profiles in Diversity Journal January/February 2006
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Together, WellPoint and INROADS
provide scholarships and internships for
minority students and also recruit new
graduates to participate in WellPoints
Health Insurance Professional Program
(HIPP). HIPP allows new college gradu-
ates to take part in a series of job rotations
over a two-year period, giving them a
well-rounded understanding of the com-
panys business and presenting valuable
opportunities for them to lead significant
projects.
Managing workforce
relationships
WellPoint engages continuously in
efforts to ensure that its associates appre-
ciate the differences and similarities that
people bring to the companys work-
placeilluminating for them the various
ways those diversities can be put into
action for the companys collective benefit.
Diversity training is required for all
associates and is delivered through new
hire orientation, new manager orienta-
tion, ethics and compliance training, and
corporate communications. In every case,
WellPoint seeks innovative ways to get its
message across. For example, a troupe
called Picture This Diversity Theatre acts
out real-world workforce-relationship
scenarios for participants in WellPoints
new manager orientation program.
Managers are then led through a facilitat-
ed dialogue about the most effective way
to work through the challenges presented
in the scenarios, learning through engage-
ment rather than by dictation.
WellPoint constantly assesses and
evaluates its policies and practices to
ensure that they support its strategic and
diversity-related aims, an effort that in
certain cases includes taking the temper-
ature of employee opinion. During the
recent merger, for instance, WellPoint
surveyed its associates thoughts on the
topic of its Total Rewards program. The
end result was a market-competitive pro-
gram of benefits and rewards that offered
associates everything from flexible work
schedules and domestic partner benefits
to education assistance and more.
Special Feature WellPoin
WellPoint engages continuously in
efforts to ensure that its associates
appreciate the differences and
similarities that people bring to the
companys workplaceilluminating
for them the various ways those
diversities can be put into action
for the companys collective benefit.
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Larry C. Glasscock WellPoint
30 Profiles in Diversity Journal January/February 2006
From the HIPP
Marcus Taylor discovered an unexpected
career opportunity through WellPoints
Health Insurance Professional Program
When Marcus Taylor decided to pursue a
career in health care, he pictured himself in
hospital administration. That was before the
Health Insurance Professional Program
(HIPP) led to a job as account manager in
Indiana Large Group Sales.
Life and leadership are about what you
do to make other peoples lives better,
Mr. Taylor explained. After watching his
grandmother struggle with the health care
system, he knew he wanted to improve
access to health services and how they
were delivered. So, following a stint in the Army, he pursued
a degree in health policy and science at the University of Maryland, Baltimore County.
He continued his education at Indiana University, earning a masters in health administration
three years ago.
That was where Mr. Taylor heard about HIPP. He immediately saw the opportunity to make his
mark in a company that touched millions of health care consumers.
One of the keys to my growth has been a combination of great mentors and leaders, he said.
They gave me a lot of their personal, face-to-face time. They also gave me access to their own
networks of leaders to learn about the career paths theyve taken.
His first-year rotation took him to WellPoint Business Solutions and Services (BSS). In his project
management role, he was involved in pre-merger integration work, identifying synergy savings
for senior and state-sponsored programs.
My second rotation was pivotal in my career, Mr. Taylor said. His work with company leaders
helped him see the industry from the inside out, including participation in the development
of the Indiana Health Care Consortium and the Indiana Provider Advisory Council.
Mr. Taylors experience with leaders in the Indiana sales organization during that rotation helped
him make a smooth transition when a position opened up in Indiana Large Group Sales earlier
this year. And although he didnt remain in HIPP for a third rotation, he continues to be involved
as a mentor for first-year HIPP associates. He knows how difficult it can be for new
professionals to find a sense of community in such a large organization and sees mentoring
as a way to give backone more way to make a difference.
Marcus TaylorAccount Manager
Indiana Large Group SalesWellPoint, Inc.
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Special Feature WellPoint
Profiles in Diversity Journal January/February 2006 31
Achievement is its own reward(But a little acknowledgement never hurts)
Hispanic Business Magazinenamed
Vice President of Emerging Markets
Leonor McCall-Rodriguez one of
80 Elite Women in America for her
outreach to multicultural health care
markets.
Working Mothermagazine named
WellPoint one of the Best Companies
for Women of Color in 2005 and
featured the inspiring story of
associate Tracy Edmonds.
The St. Louis American Foundation
honored Dale Evans-Blackmon, director
of network services for Blue Cross
Blue Shield of Missouri, with its 2005
Excellence Award for being an
outstanding African-American
health professional in her community.
NAFE, the National Association of
Female Executives, selected WellPoint
as one of the Top 30 Companies for
Executive Women. (WellPoint made
the top ten for its advancement of
women into management and senior
positions.)
Whos Who in Black Indianapolisand
Whos Who in Black Cincinnatifeatured several WellPoint leaders in
their 2005 editions.
During the 2004 Celebration of
Diversity Awards held by the mayor of
Indianapolis, WellPoint received the
Sam Jones Award: the top honor a
company can receive for its commit-
ment to diversity in Indianapolis.
Black Equal Opportunity EmploymentJournalnamed WellPoint one of the
Top Financial Institutions and
Insurance Companies for Minorities
for two consecutive years.
CAREERS & the disABLEDmagazine
named WellPoint one of the Top 50
Disability-Friendly Employers for
two consecutive years.
Hispanic Business Magazinenamed
WellPoint one of the Top 25 U.S.
Companies for Minorities for two
consecutive years.
Next Step MagazineidentifiedWellPoint as One of Americas Most
Diverse Organizations.
FORTUNEmagazine declared
WellPoint the nations Most Admired
Health Care Company for six years
in a row.
The Human Rights Campaign,
Americas largest advocacy group for
gay, lesbian, bisexual and transgenderAmericans, gave WellPoint a rating of
86 percent on its Corporate Equality
Index in 2005; the index is the
nations only rating system for corpo-
rate GLBT policies.
While external recognition is not a key objective of WellPoint's diversity
initiatives, the company is proud of the attention it and its associates have
received for their efforts. The following lists some recent highlights.
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Larry C. Glasscock WellPoint
32 Profiles in Diversity Journal January/February 2006
Achievingimpact
Taking action
on diversity
Good intentions are wonderful,
but they dont produce
results on their own.
Achievement comes from action. And in
the corporate world, actions taken at the
highest levels of an organization tend to
be repeated down the line.
With this in mind, WellPoint
Chairman, President and CEO Larry
C. Glasscock and his executive team
have adopted a highly visible policy of
leadership by example when it comes to
promulgating the companys culture
including its approach to managing
diversity.
Everyone on our executive team
sees him- or herself as a standard-bearer
of the companys core values, declares
David Casey, vice president of Diversity
and Workplace Culture. That really does
start with Larry Glasscock. And it
extends even beyond the limits of the
company walls to our support of the
Diversity Leadership Academy of
Greater Indianapolis, for example, or
Larrys role as co-chair of the 20th
anniversary celebration of the
American Institute for Managin
Diversity.
WellPoints department of Diversity
and Workplace Culture is focused
strategically on aligning the companys
business goals with diversity best
practices in training, strategic planning,
and multicultural market development.
As such, the department serves as
key instrument in carrying out Mr.
Glasscocks culture-first approach to
doing business.
Creating the right
environment
Since arising from the merger
of Anthem and WellPoint Health
Networks in 2004, WellPoint, Inc. has
worked quickly to roll out its new
corporate culture. An important first
step was the companys Culture-Shaping
Leadership Forum last May. Led by
Mr. Glasscock, the forum gathered
WellPoints top 300 leaders for a discus-
sion of the critical relationship between
corporate culture and performance.
Our associates not only have
to understand the companys
values, they must also
appreciate where those
values come fromthe
rationale behind them.
Because then they can truly
take those values to heart
and translate them into
actions.
David Casey
Vice President of Diversity
and Workplace Culture
WellPoint, Inc.
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Special Feature WellPoint
Profiles in Diversity Journal January/February 2006 33
Following the forum, 46 facilitators
from the associate population were
chosen to communicate WellPoints
cultural principles to a force of some
3,200 managers. In 2006, the facilitators
efforts will extend to frontline associates
in keeping with an admittedly aggressive
schedule. WellPoints leaders are
convinced that this ambitious
acculturation program (and the invest-
ment it represents) is essential to estab-
lishing a foundation for the companys
success going forward.
Our associates not only have to
understand our corporate values, they
must also appreciate where those values
come fromthe rationale behind
them, explains Mr. Casey. Because
then they can truly take those values to
heart and translate them into actions.
To keep the lines of communica-
tion open, WellPoint has invited front-
line associates to serve as internal culture
and diversity ambassadors, helping
inform their peers about new and
upcoming events. More than 200 associ-
ates have volunteered thus far. To David
Casey, thats a clear indication that
people are interested in and supportive
of the direction the company is taking.
The 2005 class of the Diversity LeadershipAcademy of Greater Indianapolis was the
third class to graduate since WellPointhelped found the academy in 2003.
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Larry C. Glasscock WellPoint
Succession planning
and leadership
development with
diversity in mind
For WellPoint, as for most corporations
today, succession planning is a key
leadership-development concern. The
aging of the baby boom workforce and
the wave of retirement that is expected as
a result must be prepared for effectively.
At the same time, as a company poised
for further growth, WellPoint recognizes
the necessity of having skilled, qualified
people ready to lead as expansion occurs.
Judy Wade, director of succession
planning and executive development,
asserts that in both of the above cases
diversity is essential for WellPoint to
make an agile and innovative response.
America is a diverse country: ethnically,
geographically, socially, Ms. Wade explains.
We feel very strongly that the leadership
of our company has to reflect that.
She notes that enacting diversity
strategiesdespite the complexities of
carrying out a massive corporate merger
has proceeded successfully since 2004,
partly because both Anthem and
WellPoint Health Networks were
committed to diversity manage-
ment beforehand. Anthem had
previously established its own
department of Diversity and
Workplace Culture; and
WellPoint Health Networks main-
tained a sharp focus on diversity
management. Each companys
diversity commitment originated
at the very top.
In August 2005, Ms. Wade
and her colleagues prepared a com-
prehensive succession planning report
for WellPoints board of directors
with an eye on the diversity of
current and future leaders. Already,
WellPoints commitment to con-
sistently monitor the diversity of
its associates has resulted in an
11 percent increase in minority
women working in management.
Im proud that we already
have strong representation of
women at the highest levels of our organ-
ization, Ms. Wade says. Going forward,
well continue to foster that and at the
same time strengthen the presence of
individuals from different ethnic and
cultural backgrounds.
Shes quick to point out that a
successful diversity programparticularly
at the leadership levelcant be simply
about meeting quotas.
You cant manufacture drive or
ambition or talent, she explains. What
you can do is be open to the broadest
pool of people who possess those qualities.
You have to open doors and create oppor-
tunities for the best people to be noticed,
Laying the groundwork for tomorrow
34 Profiles in Diversity Journal January/February 2006
The feedback at WellPoints
Emerging Leaders Program
was extremely helpful
direct, honest andprofessional.
Dijuana Lewis
President,
Northeast Markets
WellPoint, Inc.
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Special Feature WellPoin
Profiles in Diversity Journal January/February 2006 35
regardless of who they are or where they
come from. Thats my job, and I love it.
In a personal way, it gives me great satis-
faction to help someone deserving
achieve a personal or professional goal.
Enabling leaders to emerge
WellPoint is in the process of evolving
and combining its legacy leadership-
development programs into a new,
unified package of approaches suited to
the post-merger companys expanded
needs and circumstances.
The new initiative is slated for
rollout in 2006. The legacy programs on
which it will be based include WellPoints
Emerging Leaders Program, which was
created to identify high-potential associ-
ates for executive roles, and the Executive
Experience Program, which grooms
future executives. Of the 30 associates to
complete the Emerging Leaders Program,
half have been women. And of the 79
participants in the Executive Experience
Program, 33 have been women.
Five participants in the companys
Emerging Leaders Program have been
promoted to executive positions. Dijuana
Lewis, President, Northeast Markets, says
the program provided the full gamut of
leader training.
It was extremely helpful to have
feedbackfeedback that was direct,
honest and professional, she shares. It
was the greatest growth experience Ive
ever had in my career.
Ms. Lewis is just one example of why
WellPoint has been recognized by
the National Association of Female
Executives as one of the top ten
companies for its placement of women
into management and senior positions.
Seven Emerging Leaders Program partic-
ipants made lateral moves to broaden
their experiences and skills, and eight
received promotions.
A major opportunity
for minorities
To support the professional develop-
ment of minority persons, WellPoint
takes part in programs offered by
Americas Health Insurance Plans
(AHIP). AHIP is one of the most promi-
nent health care associations in America,
and WellPoint is its largest participant.
AHIP offers several fellowship
programs geared toward developing
minority leaders within the industry.
WellPoint sponsored the involvement of
13 associates in 2004-05 and another 28
during 2005-06. In both cases, the
Spotlight on women
At WellPoint today, 60 percent of all management positions
are held by women. More than 45 percent of company associ-
ates in director-level and higher positions are women who par-
ticipate in succession planning.
The company is committed to offering growth opportunities for
women of initiative to advance. Flexible schedules, work-at-
home and job-share arrangements, and WellPoints innovative
new-parent transition week are all available to support this
commitmenteven at the companys executive levels.
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Larry C. Glasscock WellPoint
36 Profiles in Diversity Journal January/February 2006
company put people through
AHIPs Executive Leadership
Program, which focuses on
developing industry leaders
through internal and external
mentoring relationships.
One of WellPoints AHIP
graduates is David Henley,
senior counsel at Blue Cross
Blue Shield of Missouri. He
was recently promoted to his
position and asserts that the
advancement may not have
happened without the Executive
Leadership Program. Paired with a CEO
in Florida as his external mentor and with
the Blue Cross Blue Shield of Missouri
medical director as his internal mentor,
Henley was able to gain valuable experi-
ence that helped him grow professionally.
There are very few minorities in
leadership in the health care industry in
general, says Berenice Ruhl, diversity
programs manager for WellPoint.
It is imperative that our industry
leaders are a cross-section of America, just
like our members. Of the AHIP
programs and others like them she says:
It is worth the investment. We are seeing
more confidence in associates, more
polished professionalism, willingness
to take on more challenges, and
tremendous networking.
A leadingexample
The Diversity
Leadership Academy
of Greater Indianapolis
Perhaps one of the most visible
indicators of WellPoints commitment
to cultivating leadership diversity
within and outside its own corporate
environmentis the pivotal role it
played in establishing the Diversity
Leadership Academy of Greater
Indianapolis (DLAGI) in 2003.
The company committed more
than half a million dollars to the academys
initial development, creating an innova-
tive, hands-on learning program for
building diversity-management leader-
ship skills within the Indianapolis com-
munity. In a speech during the 20th
anniversary celebration of the American
Institute for Managing Diversity
(AIMD), WellPoint Chairman,
President and CEO Larry C. Glasscock
explained the companys rationale for
making such an investment.
Helping to launch the Diversity
Leadership Academy of Greater
Indianapolis was an outstanding oppor-
tunity for us to give back to the com-
munity we call home to our corporate
headquarters, he said.
There are very few
minorities in leadership in
the health care industry in
general. It is imperative
that our industry leaders
are a cross-section of
America, just like our
members.
Berenice Ruhl, PhD
Diversity Programs
Manager
WellPoint, Inc.
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Special Feature WellPoint
Truly groundbreaking
Indianapolis was the first city out-
side of Atlanta, Georgia to establish aDiversity Leadership Academy. (The
original DLA was founded in Atlanta by
AIMD in September 2001.)
Open to leaders from business,
government, the not-for-profit sector,
education and religious organizations, the
DLAGI offers a series of five day-long
classes customized to the particular
business and social environment of Indian-
apolis. Interactive and action-oriented,
it guides participants through the appli-
cation of diversity-management princi-
ples to real community issues.
Since its establishment more than
130 community leaders have graduated
from the academy, including the citys top
public-safety officials as well as a number
of WellPoint leaders.
Applicants are chosen to participate
in the academy based on their ability to
lead and inspire change within their
organizations or community, and to share
information about diversity management.
The academy has attracted many
notable speakers from the field of diversity.
The late civil rights activist Coretta Scott
King initiated the DLAGI program in
2003 with a message of inspiration;
Julian Bond, chairman of the NAACP,
addressed the class of 2004; and last year
Ray Suarez, senior correspondent for
The NewsHour with Jim Lehrer, spoke at
the welcome reception.
AIMD describes the benefits of its
Diversity Leadership Academies (of
which there are now eight) as enhancing
the readiness of participants to:
Provide leadership around diversityissues
Participate in and influence community
dialogue on diversity issues
Address personal diversity issues such
as those related to family and
neighborhood.
As well, the DLAGI training equips
leaders with a clear understanding of theeffort required to improve their organiza-
tions ability to address diversity effectively.
Celebrating 20 years of
inspiration
WellPoint came to support the
DLAGI through its association with
AIMD and that organizations founder,
Dr. R. Roosevelt Thomas Jr. Mr. Glass-
cock has called Dr. Thomas a tremendous
resource in thinking about diversity man-
agement and living out our [WellPoints]
commitment to doing it well.
In 2005, the organization observed
its 20th anniversary. WellPoint was title
sponsor of AIMDs anniversary celebra-
tions, and Mr. Glasscock served as
co-chair. It is my hope and belief that we
are a better company as a result of our
relationship with AIMD, Mr. Glasscock
told the audience at AIMDs Diversity
20/20 Forum and Celebratory Luncheon
in November, and that we better reflect
and serve the diversity of our associates,
our customers and communities.
Profiles in Diversity Journal January/February 2006 37
It is my hope and belief that we are
a better company as a result of our
relationship with AIMD.
Larry C. Glasscock
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Larry C. Glasscock WellPoint
38 Profiles in Diversity Journal January/February 2006
Diversityis our business
WellPoints
understanding
of diversity as a
business driver
The health care landscape of
America has changed radically, says
Mr. Glasscock. Consolidation in our
industry, technological advancement, and
evolving consumer expectations have all
made the environment today far more
competitive than at any time in the past.
In such a context, a companys
business strategies have to be rock-solid
especially if that companys declared aim
is WellPoints: to transform health care
and become the most valued company in
the industry.
We know that not all ethnic popu-
lations receive the same medical care, and
that some may be at greater risk for
particular medical conditions, says Mr.
Glasscock. However, there is little
standard or centralized data about the
disparities and gaps in care to adequately
address them. Were developing
approaches to gather that datawhile
protecting the rights and the privacy
of patientsas an essential step toward
achieving our long-term aims. Its
obvious to us that, in a real way, manag-
ing diversity is our business.
Extending reach and building
capacity at the same time
An important way WellPoint reaches
out to the uninsured is through personal,
face-to-face contact via its force of agents.
We depend on agents and brokers
to reach our markets, says Deborah
Lachman, president, Individual and Small
Group, West Region. Our agents and
brokers have to increasingly represent the
diversity of the public we serve, ethnically
and geographically. Yet generally the
population of agents and brokers is not
growing; its not a career option that a lot
of young people are exploring.
To address this deficit, WellPoint
developed what it calls its Incubator
Program.
The Incubator Program addresses
our needs and at the same time allows us
to give something back to the communities
where we operate, explains Ms.
Lachman. We recruit young people
high school and college graduatesand
hire them for a three-year period. Over
that time, we train them to be independent
insurance agents and brokers. But more
importantly, we also train them to be
successful small-business owners and
operators. At the end of the three years,
their employment with us ends, and
theyre fully equipped to go out into their
communities and establish themselves as
independent entrepreneurs. We not only
subsidize their business education
through this program, but also pay for
their licenses.
WellPoint's first wave of ten
Incubator Program graduatesall from
the Los Angeles areawent out into the
field in January 2005. Ms. Lachman says
the reach of the program will expand over
time. Shes extremely pleased with the
results so far.
Weve helped people become bona
fide entrepreneurs, she concludes,
people who were already very gung-ho,
ambitious and dedicated. Its gratifying to
see how sincerely appreciative they are of
the opportunity, and how determined
they are to succeed.
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Special Feature WellPoin
Profiles in Diversity Journal January/February 2006 39
Working the issueR. Roosevelt Thomas Jr., PhD, reflectson WellPoints diversity commitment
Since creating the Atlanta-based American Institute forManaging Diversity (AIMD) back in the early 1980s, Dr.Thomas has strived to help American organizations makethe most out of the contributions of their diverse associates.Today, he and his team look beyond workforce diversity to abroader set of management considerations including changemanagement, functional coordination, business-lineintegration, and acquisitions and mergers.
Dr. Thomas created AIMD to help organizations understandwhy managing diversity is essential not only ethically butalso from a business perspective. In the words of theorganizations Web site, AIMD was the first national,nonprofit diversity think tank. Engaged in research,education and corporate consultation on diversity issues,AIMD has earned the esteem of many of Americas mostprominent corporations including the Coca-Cola Company,which sponsored the original DLA in Atlanta.
Profiles in Diversity Journalspoke to Dr. Thomas recentlyabout his work and about the experience of collaborating with WellPoint.
What has it been like to work with the WellPoint team on the creation of the Diversity LeadershipAcademy of Greater Indianapolis?
Its been energizing and exciting to work with Larry Glasscock and David Casey. Their enthusiasmfor the academy is genuine. You see reflected in them the desire for WellPoint to be both a goodcorporate citizen and a good model of strategic diversity management. And I know the academyhas been well received by the community in Indianapolis.
What has been Mr. Glasscocks role as co-chair of the 20th anniversary celebration?
Hes a committed champion of AIMD, and he was insistent that we needed to have a bigcelebration for the 20th anniversary. He saw it as a truly important milestone. He was an integralpart of the celebration. He put in a great deal of effort. It was very impressive, given all he hason his plate.
From your perspective, what kind of opportunities does a company like WellPoint have to makereal progress on diversity issues?
Diversity management really amounts to making the most of differences and similarities in themidst of complexities and tensions. WellPoint is poised to move beyond the traditional diversityfoci of workforce numbers and representation. It is also poised to illustrate how the concept ofdiversity management can be applied to other areas of business. To be ready for sustainableprogress, you have to work the issue internally and externally, and that is what WellPoint is doing:combining traditional and non-traditional approaches to strengthen its business and, as the sayinggoes, do the right thing. You work it inside and outside, for the good of the company and for thecommunity it serves. Thats what I see WellPoint doing, and I think its really commendable.
R. Roosevelt Thomas Jr., PhD,Founder, American Institute for
Managing Diversity
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Larry C. Glasscock WellPoint
Speaking the same language
WellPoints commitment to communicating with consumers in
their language of choice goes beyond just English and Spanish.
The company recently began offering services in the spoken
Mayan dialect Qanjoval to connect with Guatemalan immigrant
communities.
A high percentage of the ethnic communities we serve are
uninsured. For example, in California, an estimated 3.3 million of
the uninsuredsome 56 percentare Latino. A lot of this is due
to not understanding how insurance works and how to navigate
the health care system in the United States. If we are to succeed
in insuring everyone, we have to reach out in the right language
and with a culturally competent way of doing business. Every
market, whether it is determined by lifestyle, ethnicity or life stage,
requires a distinct approach. Our responsibility is to help members
and non-members understand how they can access health care.
Leonor McCall-Rodriguez
Vice President, Emerging Markets
WellPoint, Inc.
You are who
you work withSuppliers are animportant dimensionof corporate diversity
In addition to reaching out to new
and diverse customer groups, WellPoint
like many leading American corporations
is seeking to make diversity a routine
component of its supplier relationships
The company took an important step
forward on that front in August 2005
when Brenda Burke joined WellPoint a
its director of Supplier Diversity.
Ms. Burke is an undeniably ap
choice for the job. As a former directo
of administration for the mayor o
Indianapolis, she led the citys supplier
diversity program and was recognized
for the success of her efforts with the
2005 Public Service Award from the
Center for Leadership Development.
She notes that diversity touche
every aspect of life, from hiring the best
talent and career advancement to supplie
relationships. WellPoint believes a diverse
supplier base enables it
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