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

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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.