Implementing a Diversity & Inclusion Strategy A Case Study

1 Implementing a Diversity & Inclusion Strategy A case Study Thesis submitted in accordance with the requirements of the University of Liverpool for the degree of Doctor of Business Administration by Michael Per Fajerson June 2017 P a g e | 2 Abstract Current scholar-practitioner literature demonstrates that Diversity and Inclusion (D&I) are necessary for organisational performance. All organisational members are needed for an inclusive corporate culture to be genuine. The problem for a large global organisation with Swedish roots was that its D&I Strategy had not been turned into action as expected. This was evident from discussions with the organisation s D&I manager and from the 2014 employee satisfaction survey. The research question of this Study was: How can the organisation turn its D&I Strategy into action? Using a purely qualitative case Study design, the research objective of this Study was to investigate how 18 very diverse middle managers and rank and file employees throughout this global organisation would turn the organisation s D&I Strategy into practical action using existing D&I material.

2 Key questions to be answered included how research participants view the D&I material provided by the organisation and how they would use it to promote the action change needed and avoid pitfalls. Data collection and analysis through in-depth, face-to-face interviews coupled with document analyses in accordance with the case Study methodology (Yin, 2003) provided a rich and thick description of the case . Condensing emerging categories into four major themes relating to established theory as presented in extant literature provided the base for answering research questions. The four major themes were: The Need for D&I, effective Awareness-Building, effective Implementation, and effective Conflict-Handling. Identifying researcher bias, member checking, and triangulation established trustworthiness. Key findings included that the organisation s D&I material were useful and globally valid. It could be used to build awareness and promote action change.

3 Drawbacks with D&I can be handled. Middle management is the key employee group to turn Strategy into practical action in the workplace. Actionable knowledge derived from the findings was the detailed recommendation for turning the D&I Strategy into practical action throughout the entire organisation. Implementing the recommendation could be swift, decentralised, and organization-wide. Middle managers, as the key change agents, would drive action and change in the D&I area to achieve a sustainable organisational inclusive culture. Other organisations could use the recommendation to achieve action change. P a g e | 3 Dedication This thesis is dedicated to my aunt Birgitta who passed away far too young some ten years ago. She whole-heartedly supported all the many educational endeavours that I engaged in over the years. She would have been proud to see that I have now reached the end of my University of Liverpool Doctor of Business Administration journey.

4 P a g e | 4 Acknowledgements I would like to thank the following people for their part in making my overall University of Liverpool DBA experience a great one and, in particular, for all their help making the final stage - this thesis a successful experience. 1. Above all, the 18 anonymous participants for their time and effort in order to help me realise my research project and complete this thesis, 2. Dr Lisa Anderson at the University of Liverpool for - together with her colleagues - creating an excellent DBA programme back in 2010 that so well fit my needs and interests and who ensured that it also was accredited by the AACSB in 2012 truth is that the University of Liverpool DBA experience has been the best educational experience of my entire life, 3. Dr Kenneth Simpson, my very first professor on the University of Liverpool DBA programme for his excellent on-line teaching skills, encouragement, and dedication which greatly inspired me and made my DBA experience an extra-ordinary one from the very beginning, 4.

5 Dr James Pounder, my primary thesis supervisor, for his interest, support and good ideas generated during our regular Skype meetings and e-mail contact, 5. Dr David Higgins, my secondary thesis supervisor, for his support and good advice during the latter part of my thesis report writing, 6. Elaine Schiavone, Business Development Executive, IBM Workforce Diversity & LGBT Markets, for our inspiring Diversity and Inclusion discussions that - in the end - put my thesis deliberations on the right track, 7. Dr William A. Guillory, President of Innovations International, Inc., for his inspiring support during the different stages of my research Study , 8. Annamaria Szilagyi for her efficient work as student support manager during the first part of the DBA programme and all the help and support she afforded me, especially in organising the two residency meetings in Liverpool in 2013, 9. Anna Hedebrant and Malin Rogstr m at Sandvik for their organisational support and interest in my DBA thesis, especially from the viewpoint that it is very much related to the on-going Sandvik effort to enhance its inclusive organisational culture, P a g e | 5 10.

6 G rard Dequet and Marie-Louise Ek, both formerly with Sandvik, for their initial support and their continued interest in - and follow-up of the development of my DBA courses and this thesis. P a g e | 6 Table of Contents Dedication 3 Acknowledgements 4 Chapter 1 Introduction 9 The Importance of Diversity and Inclusion 9 Definition of Diversity and Inclusion 10 Innovation and Business Performance 10 The Present Research Study 12 The Importance of Diversity and Inclusion at Sandvik 13 Context of the Study 14 The General Context 14 The Sandvik Context 14 The Personal Context 16 Structure of the Thesis 17 Chapter 2 Literature Review 17 Overview 17 Concepts of Diversity and Inclusion (Differences and Interrelations) 19 Concepts of Diversity and Inclusion (Business case and Participation of All) 21 Concepts of Diversity and Inclusion (Global Implementations)

7 23 Concepts of Diversity and Inclusion (Friction and Conflict) 26 The Present Research in Light of Previous Research 28 Chapter 3 Methodology 30 Background 30 Choosing Between a Quantitative and a Qualitative Research Methodology 34 Choosing Between a case Study and a Phenomenology 35 Drawbacks when Using a case Study methodology 37 Ethical Considerations 39 Sampling and Selecting 41 Recruiting and Participant Instructions 41 Research Participant Backgrounds 42 Interview Process 44 Data Collection 47 P a g e | 7 Data Analysis 48 Action Research Aspects on Choosing a Research Methodology 50 Summary 50 Chapter 4 Research Findings 52 Major Theme 1: Need for D&I 60 Common Subtheme 1: Self-Evidence of D&I 60 Common Subtheme 2: Usefulness of the Material and its Global Validity 61 Common Subtheme 3: Gender Diversity versus Full D&I 63 Common Subtheme 4: Performance Aspects of D&I 65 Major Theme 2: effective Awareness-Building 66 Common Subtheme 1: Enjoyment 66 Common Subtheme 2: Creation of Inclusion 67 Common Subtheme 3: Discussion Group Size 67 Common Subtheme 4: Separate Project vs.

8 Part of Daily Life 67 Major Theme 3: effective Implementation 68 Common Subtheme 1: Involvement of All 68 Common Subtheme 2: Clear Action Plan and Follow-Up Measures 68 Common Subtheme 3: Use of Discussion Groups 69 Common Subtheme 4: Need for Implementation Time 70 Common Subtheme 5: Copy of EHS Implementation 70 Common Subtheme 6: Problem-Solving Exercises 71 Major Theme 4: effective Conflict-Handling 71 Common Subtheme 1: Use of Facilitators 71 Common Subtheme 2: Benefits of Conflict 72 Common Subtheme 3: Use of Feedback Techniques 73 Common Subtheme 4: Need for Additional Decision Time 73 Summary 74 Chapter 5 Discussion and Conclusion 75 Analytic Generalisation 75 Recommendation for Sandvik and Implications for Future Practice 79 Study Limitations 84 Future Research 85 P a g e | 8 Chapter 6 Learning Reflections 88 Introduction 88 Learning from Choosing the Research Topic 88 Learning from the Methodology Selection 89 Learning from Ethical Considerations 90 Learning from the Interaction with Research Participants 91 Learning from the Data Analysis 91 Learning from the Report Writing 92 My Role as Change Agent 93 Summary 95 Appendix A - Research Participant Information Sheet 96 Appendix B Research Participant Consent Form 97 Appendix C - Interview Protocol 98

9 Appendix D - Sandvik s Business case for D&I 100 Appendix E Sandvik s Small Acts of Inclusion 108 Appendix F Sandvik s Perspectives on Recruitment 109 Appendix G Foreign Language Quotes 112 Appendix H Document Review 117 Appendix I Video Review 118 List of References 120 List of Videos 130 List of Tables and Illustrations (in order of appearance) Figure 1 Synopsis of Literature Review and Research Purpose 29 Table 1 Response Rating Sandvik Employee Engagement Survey 2014 32 Table 2 Research Participant Demographics 44 Table 3 Interview Questions 47 Figure 2 Simplified Data Analysis Model 49 Figure 3 Research Steps Towards Forming the Major Themes 51 Figure 4a - Major Themes 53 Figure 4b Awareness-Building Categories 54 Figure 4c Conflict-Handling Categories 55 Figure 4d Implementation Categories 56 Figure 4e Why D&I Categories 57 Figure 5 Subthemes Within the Four D&I Major Themes 59 P a g e | 9 1.

10 Introduction This introductory chapter begins with a short review of the most important content-related issues at stake for this research Study . It then presents the research problem, question, and objective. The chapter also briefly presents the Sandvik organization. This is the organization where this research intervention was conducted. It concludes with the context-related issues pertinent to the Study and a brief overview of the thesis layout. The Importance of Diversity and Inclusion (D&I) As the global business world becomes increasingly competitive, businesses require enhanced abilities to innovate and to attract, develop, and retain the talent capable of serving their diverse customer base. Procter & Gamble s CEO, Lafley (cited in Hyter and Turnock, 2005, p. 1) states that his 23 years at P&G have convinced [him] that a diverse organisation will out-think, out-innovate, and out-perform a homogeneous organisation every single time.