Case Study 8: Deloitte

As one of the most successful consulting companies in the world, Deloitte regularly shows up on lists such as Forbes magazine's "Top 100 Employers," the "Top 100 Places to Launch a Career," and, most important to this chapter, the Diversity Inc. list of "Top 50 Companies for Diversity" (number 11 in 2013). Deloitte is an employer of choice among the top undergraduates and MBA graduates from leading business schools around the globe, competing with the likes of McKinsey, Bain, and Ernst & Young. It attracts the best and the brightest talent and is known for investing heavily in its human capital; in fact it recently invested over $300 million in a new team development and leadership development campus in Westlake, Texas, called "Deloitte University." One of the ways Deloitte has developed this stellar reputation as the top consultancy in the world is by utilizing and nurturing diverse, integrated teams of highly trained specialists, and Deloitte University is just the latest example of the extent to which Deloitte has learned to harness the power of diversity. Deloitte's success has not happened by accident. It has required a sustained and strategic effort to build internationally and culturally diverse teams, create an integrated operational platform, and to struggle past the challenges of heterogeneity to a point where diverse groups can elicit the best that each member can offer. At any of Deloitte's client engagements, there is likely to be a fair amount of cultural, racial, gender, national, and functional diversity represented. In order to reach this rare level of interdependent and high-functioning effort, Deloitte holds leadership development trainings for its consulting associates from offices around the world who have been with the company for at least one year (as well as more advanced training and development opportunities throughout an associate's tenure with the company). Deloitte does this because it is dedicated to developing a crossfunctional leadership pipeline that leverages diversity and ensures the future success of the company. This training model is available to associates in either a one-week- or two-weeklong seminar built around consulting cases, cohort discussions, debates, projects, and team challenges. In many instances, associates are divided into teams to tackle the cases, for example, so that these professionals can learn (or refine) how to work with other exceptionally smart, driven, talented, competitive, "type-A" leaders in a "quick-change" environment. Consultants must be able to establish trust, develop understanding, scope and scale a project, delegate responsibility, and produce solutions on very short timelines. Deloitte University equips its associates to formalize these skill sets, philosophical bases, and best practices so that the diversity of the teams becomes a strength instead of a weakness. One way of forcing teams to learn how to adapt comes at various intervals during the case-based portions of Deloitte University's sessions. The consulting teams are 291 given additional case information that brings unexpected changes—such as the sudden dismissal of the case company's CEO or a surprise legal investigation into some aspect of the company—and the teams have to find ways of accommodating the new information. This demands that the teams "think outside of the box" and, in many cases, calls on the full breadth and depth of the experience that all members bring, whether they are from offices in Atlanta, Singapore, London, Buenos Aires, or San Francisco; whether they are of European, African, American, or Asian descent; or whether they are men or women, gay or straight, young or old. Team members learn to work together to harness their collective capacity for solving problems throughout the workshop. While participants share a great deal in common since they are all members of the Deloitte community, the diversity of these teams presents a valuable challenge and learning opportunity. Not only are these rising leaders able to sharpen their consulting skills, they are also able to learn lessons about how to harness the strengths other participants bring from their respective backgrounds and markets. This is more than working in teams; this is leadership development and diversity training in action. It is how Deloitte keeps its diverse talent pipeline full. For example, according to a recent DiversityInc "Top 50" list, it has double the percentage of senior leaders of black, Latino, and Asian descent than the average company. According to a May 8, 2013, press release: "We believe that diversity and inclusion are essential for sustainable success in today's business environment," said Kelvin Womack, Deloitte's managing principal for Diversity. 

 

"At Deloitte, by looking at our people holistically, there are more opportunities for advancement as well as a more productive work environment, resulting in greater value to our clients through a variety of experiences and perspectives." 

 

Case Study Discussion Questions 

1. Why does Deloitte think diversity is so important? 

2. What is uncommon about Deloitte's approach to diversity? 

3. Name three short-term and three long-term diversity issues Deloitte University might help overcome. 

4. Discuss how Deloitte University might eventually lead to a sustainable competitive advantage for the company.

 

Why Deloitte think diversity is so important

• Diversity is Pivotal for Innovation- it has been demonstrated and tried that when various personalities meet on an issue and view that issue with various points, new solutions arise, unmistakably different personalities can cultivate development in items, administrations and cycles. Organizations have just exhibited that organizations with assorted groups really are more open, imaginative and inventive, they can comprehend the necessities of the clients better and take a gander at an issue with different point to devise the most innovative arrangement. 
• Diverse groups forestall GROUP THINK- Especially for counseling organizations like Deloitte which is customer confronting, homogeneous gatherings and groups can prompt gathering polarization and gathering think. This group attitude can cause the customer its business. For Deloitte, various groups can see alternate points of view of a similar issue, forestall a blinded and nearsighted perspective on dynamic. Another exploration shows that groups with variety (intellectual and social) are quicker at taking care of issues and produce better answers for the customers. For a counseling organization like Deloitte, their Consultants (HR) are their lone strength and that strength can be hone utilizing Diverse groups. 
• It supports the assurance of the representatives-Diverse workspaces (identity, sexual orientation, nationality and so on) can really impart an exceptionally certain sign to the representatives about the way of life of RESPECT for the representatives. Variety involves that the administration is open, tolerating and very representative driven. It prompts less clashes, lesser whittling down and decreased work-place clashes. Blended gatherings have high resolve, they have the free-space in the associations and the examination is demonstrative that the representative efficiency and the fulfillment improves. Deloitte needs its workers to give their best to the customers. Variety assumes a critical function in guaranteeing that workers are fulfilled as are the customers 
• The customers is Multi Ethnic-Global and Diverse: Deloitte is a MNC counseling firm. It has tasks over the globe. Variety must be the fundamental belief, because all day every day, the workers are executing with assorted gathering of customers, customers from various topography, identity, culture, sexual orientation and ethnicity by and large. On the off chance that the groups are not different, at that point they won't have the option to resound with the difficulties of the customers. They won't have the option to break the ice with the customer and that would hamper dynamic. From board room diversity to the group variety, Deloitte gives clear significance to the DIVERSITY due to its DIVERSE Client base. 

 2.What is uncommon about Deloitte's approach to diversity

• Deloitte has adopted a PRO-ACTIVE strategy to organize DIVERSITY as the center mainstay of their CULTURE. They guarantee that from the earliest starting point the pioneers are prepared in the way of life of Diversity and are sharpened to the comprehensive culture of the organization. 
• The Deloitte University empowers this gaining from the early spell of the workers. A focused on program by the college on authority improvement ( for over 1 year and progressed programs later on) are attempted to guarantee refinement around socially different group and smooth working of these assorted groups. It ropes in the top authority also. 
• The college guarantees that thorough leadership improvement program which are experiences driven, is granted in seven days in length classes for the maturing pioneers. Clever conversations, discussions and group tasks are given to guarantee that pioneers figure out how to function with various individuals in little and enormous gatherings, individuals with various foundations, various characters and likings and distinctive mechanical abilities. 
• A secure authority educational plan and the favorable to dynamic methodology by the Deloitte college makes this variety program remarkable and of exceptional conspicuousness 

3.Three short-term and three long-term diversity issues Deloitte University might help overcome

Short term issues

• Brings more straightforwardness and trust among the colleagues which causes them work better and all the more gainfully with one another (on the grounds that they are prepared to work in different gatherings) 
• Improves the exhibition of the group, for the reasons expressed in answer 1, different groups who improve, tackles issues quicker and are profoundly customer driven 
• Will diminish Workplace clashes, those delicate and cold battles among the colleagues, decreased gripes, greater arrangement with the groups' objectives and high acknowledgment and regard among the group members .imagine the costs which Deloitte will spare in superfluous claims and legitimate notification on the work- - place clashes, between racial comments and harm to the brand. 

Long term issues

• Long term dynamic improves: Diversity isn't the requirement for present yet for what's to come. In future as the associations become all the more level, and decentralized, more different groups need to get accommodated. Particularly for a counseling association like Deloitte which is a heritage firm; setting up a culture of Diversity will take quite a while. 
• The Client Satisfaction increments: if the groups are assorted and on account of which they can perform quicker and better, thought of inventive arrangements and imaginative plans; the customer fulfillment expands, this prompts increment in client dedication and increment benefit for the firm in the long haul, improved monetary measurement 
• be viewed as a good and Employee driven Company: Diversity as referenced will turn into the fate of the working environment, the clients and the representatives both will feel esteemed if their organization is enabling the employees through these assorted groups. It can improve all the HR Metrics (Lower Attrition, Retention of High Quality ability, Reduce Work-place clashes, increment in employee fulfillment and engagement etc.) 

4.How Deloitte University might eventually lead to a sustainable competitive advantage for the company.

• HR are with Every organization, except the company which can transform that asset into a capability, at that point that organization can get the strategic advantage: In what capacity can Deloitte turn its employees into their ambassadors and champions (high-performing) and subsequently make them an upper hand; on the grounds that inspired and high performing advisors are their center strength. 
• Right off the bat, Deloitte is in a powerful information based industry: Every customer is extraordinary, each difficult given is exceptional; so a standard Cookie-shaper approach can not be utilized to keep all the customers fulfilled. That is the place where the nature of the preparation and advancement programs come into picture. 
• Deloitte needs to work in distinguishing and holding the best talents. Deloitte University can be a pioneer in that. They can devise pertinent and hearty preparing modules and leadership improvement projects to guarantee that the best of the gifts are getting groomed the correct way and are valuable to the association as long as possible. 
• The college can be a spot to LEARN and CO-CREATE arrangements, it can give a spot to share the experience of the heroes to the new students and assist them with making an archive of the KNOWLEDGE and EXPERIENCE which can't be imitated by some other organization. 
• Deloitte University can be an impetus in molding the CULTURE of the Deloitte. CULTURE can give an edge to the association, and its a long-standing case. College with its ceaseless endeavors can undoubtedly create the way of life for both the rehearsing experts and furthermore the new advisors.