From the pinnacles of power by Fortune editor at large Patricia Sellers
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November 16, 2009, 1:05 pm

Men and women at work: Can we talk?

Guest Post by Sharon Meers, co-author of Getting to 50/50

Blue shirt photo low resolution

Photo courtesy of Vince Tarry

Do men resent powerful women?

One of the most intriguing statistics in “A Woman’s Nation,” the recently released survey by Maria Shriver and the Center for American Progress, is this: 69% of women think men resent women who have more power than they do. Only 49% of men agree.

Who knows who’s right. What we know for sure is that men and women can’t agree about power–and aren’t very comfortable talking candidly about it.

To research Getting to 50/50, the book I wrote with Joanna Strober, we found that fear of candid talk is the biggest logjam blocking the progress of women in the workplace. For one thing, men shy away from giving women honest feedback. One male CEO of a tech start-up told us: “Every senior male executive I know has been threatened with discrimination charges regardless of the goodness of their track record.” He added, “I’ve seen it make cynics out of a lot of men who started out very differently.”

All of us–men and women alike–contribute to this problem. In our politically correct workplaces, discussing male/female differences has become so taboo that the topic is broached only in heated moments, when colleagues let loose their true opinions about gender and power.

It’s a messy management issue. HR lawyers say that employers ask how to avoid suits when their priority should be retaining and promoting women, with the help of honest dialogue about everything from performance issues to maternity leaves.

But too often, men cower at giving feedback to female subordinates. That CEO of the tech start-up confessed that when he was at a big media company, his peers advised him to leave his office door open during reviews of female employees–and best to stay within earshot of his assistant so he’d have a witness if the employee made a complaint. “How much candor can you offer with your door open?” he asked me rhetorically, with understandable exasperation.

Moreover, lots of line managers keep women out of their networks (and even avoid going out to lunch with them) because it just doesn’t feel comfortable. Many managers steer clear of difficult conversations. Don’t be too hard on the guys: They’ve never been told how to engage the right way.

Rod Kramer, a professor and management expert at the Stanford Graduate School of Business, believes that men’s discomfort relates to a common insecurity: “Men often seem to think (heroically) that they should be masters at the conversation–that they should know the ‘right’ things to say.” His advice to men and women: “Be more curious about each other and their experiences. Just ask good leading questions–and invite questions in return.”

Meanwhile, women’s tendency to be super-serious (as men perceive them, at least) compounds the workplace dysfunction. “Women can make anything a chore,” a former Microsoft (MSFT) executive told me. “They’re too serious and don’t seem to understand that work is a game.”

What should women do? One of our interviewees, Larry, a partner in a national architecture firm, told us about a woman who blew up over her male colleagues’ risqué pin-ups and jocular behavior; she complained to HR and quit. Larry wishes that she had confronted the guys who offended her: “Tell guys to their face,” he says, advising women in general. “Say, ‘Hey, what’s that?’ And be funny about it. You have to do it in a way so that guys don’t feel threatened, but you are making your point.”

In the stories we heard, “right” and “wrong” were rarely obvious. But the need for a male/female lingua franca was clear.

Some wise employers are getting a jump on inventing this new language.

Deloitte, for one, has moved aggressively to bring male and female executives together to discuss questions like “Would you want your daughter to work for a company that has lower expectations for women?” Open dialogue and better insight into what women need to be successful has helped Deloitte command a lead among professional services firms in utilizing female talent.

The University of Michigan has also made strides. With backing from the National Science Foundation, the University enlisted male professors to comb research on implicit gender attitudes. For example, most people will select a resume with a male name over one with a female name, even when the resumes are identical. Professors turned their survey into a workshop and shared their insights with the University’s hiring committees. Female science hires have since risen dramatically.

It may be a long while ’til we reach 50/50. But understanding the issues and learning to understand each other is a good start.

Sharon Meers is the co-author of Getting to 50/50 and a former Managing Director at Goldman Sachs (GS).

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October 21, 2009, 2:17 pm

Citi’s top cop: The art of boxing in high heels

I know lots of executives in the banking industry, but I had never heard of Cindy Armine. Until, that is, a couple of months ago when I had lunch with Armine, who is the chief compliance officer at Citigroup (C). Several things blew me away: her humble beginnings (she didn’t go to college), her amazing trajectory (from clerk to top cop), her candor about her flaws as a manager–and her eagerness to fix them. Armine, 48, agreed to share her story in this Postcards Guest Post. “The Art of Boxing in High Heels” has something to do with shoes. But it’s really about raising your game–wise advice to any manager, male or female.

by Cindy Armine, Chief Compliance Officer, Citigroup

Armine Headshot

Photo courtesy of Citigroup

Three years ago, I decided to reinvent myself–I guess because I hadn’t put a lot of thought into inventing myself at the get-go. I’m not your typical C-suite executive. I grew up in a Sicilian-American working-class family. My dad was a New York City detective and my mom was a waitress. So as you can imagine, college was not in the cards. I was expected to get married right out of school. My career “plan” was to be the next George Martin or Sam Phillips–a famous record producer.

I was 18, in 1980, when the dream burst. My engineering job at a New York City recording studio was leading nowhere. So I interviewed to be a clerk in Smith Barney’s compliance department–because my mother worked as a waitress in a coffee shop in Smith Barney’s building downtown.

I got the job and threw myself into my work. Compliance–which basically ensures that a business follows all laws and regulations–requires a mix of discipline, ability to adapt quickly, and willingness to wear lots of hats: trusted advisor, problem solver, diplomat. I dutifully multitasked and I thrived. Over the years, I moved up to Chief Compliance Officer at Smith Barney, and then at parent Citigroup’s U.S. Corporate & Investment Bank and Global Wealth Management unit.

In 2005, I was nearing my annual performance review and thinking what kind of leader I wanted to be–vs. what kind of leader I was. I had the brawn and the brains. But I realized that as a senior leader who was now (gulp) a role model, I should focus not just on results but on the people who help me get them. I decided I needed to be a kinder, gentler me. So I hired a coach.

As I thought about my reinvention, I was inspired by my mother: She had changed course after a fractured wrist ended her career as a waitress. She became a bookkeeper–a lucky break, so to speak. When my new executive coach finished interviewing a range of colleagues, he said to me, “You’ve got a great knockout punch. Let’s see if you can box.” OK, I thought, I can change course too.

Over the next year, we worked on my “boxing” skills–learning to pause, count to 10, and harness my take-charge style. I learned when to step in–and when to hold back. And when to let others take the lead. Really, I learned a lot about empowering others and reinforcing the value of their work.

And I became a better manager–and a new person in other ways. I realized I needed an outlet for the energy that I used to channel into my knockout punches, so I started exercising. I lost 45 pounds.

You have to understand, I’m five-foot-two. And while the weight loss made me feel terrific, I was concerned, in a strange way, about losing my presence. And so, as I found myself preparing to interview for the top position in Compliance at Citi, I did something totally out of character. I wore high heels.

Shoe ClosetI had not worn high heels in more than 20 years. Their impact was revelatory. These shoes did the same thing for me, psychologically, as the weight loss. That moment I put on my Ferragamos, I was confident. I was totally comfortable with the “new” me.

I got the job. And I’ve been on a shoe spree ever since.

So now, I confess, I have more than 30 pairs of high-heeled shoes. Recently, I gave a beautiful pair of vintage Hermes heels to my mentee. I told her about that fateful day when I threw on my pair of heels and that I wanted her to have the shoes as a reminder: No matter where you are in your life or career, you can learn to box–and all the better in high heels.

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October 5, 2009, 1:23 pm

Facebook COO Sheryl Sandberg: Unedited

The uncut version of Yahoo (YAHOO) CEO Carol Bartz’s first-person “Just Deal With It,” which we published on Postcards last Monday, drew lots of traffic. So we’re giving you an unedited version of another first-person piece that appeared in Fortune’s Most Powerful Women issue (September 28). This one is by Facebook COO Sheryl Sandberg. The most senior woman at Google (GOOG) before she joined Facebook, Sandberg is one of the fastest rising stars in business–leaping to No. 22, from No. 34, on this year’s MPWomen list–and one of the youngest too. Her resume includes two degrees from Harvard, stints at the World Bank and the U.S. Treasury, board memberships at Starbucks (SBUX) and the Brookings Institution…and she’s only 40.Sandberg

In fact, it was Sandberg’s out-of-the-blue phone call from Mexico, where she was celebrating her 40th birthday with old girlfriends, that led to this piece. “I want to write something called “Don’t Leave Before You Leave,” about young women cutting back their career ambition, and would you consider running it your Most Powerful Women issue?” she asked me over a static-y cell connection. I immediately said “Yes” because I knew Sandberg’s commitment to encouraging the next generation of women leaders. (Her home dinner gatherings of established and up-and-coming women are sought-after invites in Silicon Valley.) I also knew Sandberg to be an adept juggler of family and career. What I didn’t know: She can write. So here is Sheryl Sandberg’s “Don’t Leave Before You Leave,” the unedited version:

Last week at work I had a conversation with a woman I will call Jamie. We have a new project, and I offered her the opportunity to be its leader.  She seemed flattered to be asked but then quickly became very hesitant. She told me she wasn’t sure she should take on more right now. Just before she got up to leave, I looked at her and quietly asked, “Are you worried about taking this on because you are considering getting pregnant sometime soon?”

A few years ago I would have been afraid to ask such a direct and personal question. Nothing is more private than the decision to have a child. Bringing up that topic in the workplace feels like a dangerous thing to do.  We are not supposed to show any bias or take childbearing plans into account as we manage people. But after watching talented woman after talented woman let her career go before she actually leaves it, I now ask this question and I ask it directly.

I always give people the option of not answering, but so far, everyone has appeared grateful for a chance to talk.  There is just one reason why I ask–to make sure people aren’t leaving before they leave.

Here is what happens.  An ambitious and successful woman starts considering having children, typically once she finds a domestic partner. She thinks hard about how busy she is and realizes that finding time for a child means something will have to give. As soon as that thinking process starts, she is already looking for ways to scale back. She no longer searches for new opportunities; if any are presented to her, she is likely to decline or offer the kind of hesitant “yes” that gets the project assigned to someone else, just like “Jamie” did last week in my office.

The problem is that even if she gets pregnant immediately, she still has nine months of pregnancy ahead of her, months of maternity leave and then another lengthy period after returning to work to even catch her breath. And since women usually start the thinking process before even trying to conceive, often several years actually pass. By the time she is back to focusing on her career, she is in a radically different place than she was before.

She was always a top performer–always on par with her peers in responsibility, opportunity, and pay. But now she is not. By not finding ways to stretch herself during the years before she has a child, she has fallen behind.

While I don’t believe that the choice to work fulltime and be a parent is the right choice for everyone, it is a wonderful–and often necessary–choice for many people. I also believe that once you have a child, it becomes necessary to make real changes, including potentially deemphasizing your career. But slowing down too early is a mistake that too many women make today, often without even realizing it. Because they sincerely want to stay in the workforce, they try to make room for everything and they slow down–or unconsciously pull back–well before their circumstances actually change. By the time they fully return, they are in jobs that no longer challenge or reward them enough to hold their attention.

I don’t know any women–or men for that matter–who do not have days when they wonder if leaving their children in someone else’s care for their careers is the right thing to do. I know I do. If your job feels less fulfilling because you have been in the same role for too long or are no longer paid comparably to your peers, that choice becomes a hard one to make day after day. One of the tragic ironies for working women today is that the very desire to stay in the workforce leads to decisions that eventually cause them to leave.

No one can know in advance the choices they will make after going through a life change as profound as becoming a parent. But if you want to preserve the option of staying in the workforce and building a career, my advice is simple.  Stay fully engaged, take on new and interesting challenges, and do so until you have a child. Keep your foot on the gas pedal until your life actually changes. Then you can make the decision to keep driving quickly, slow down, or step out of the car.

I joined Facebook as its COO when I had just returned to work from having my second child. The timing was far from ideal. As many people had told me–but I had not believed–having two children was more than double the work of having one. At the time I was not looking for a new opportunity but rather trying to get through each day. But both my husband and I recognized that if I waited until the time was exactly right, the opportunity would be gone. So I jumped in.

I can’t say it was easy. The first six months were a struggle both at work and at home. But now I am settled in, finding just enough balance to make it work, and learning and growing with new responsibilities and challenges.  Looking back, if I hadn’t taken on something new, I might easily have left the workforce by now, because it would not have been worth making the daily tradeoffs to continue in the job I’d held for the previous six years.

There is a broader lesson here that applies not just to women contemplating starting a family, but to anyone trying to plan for the future. Making decisions too early, trying to plan life too carefully, can close doors rather than keep them open. Any time you make a plan, you do it with imperfect information; the further in advance you make that plan, the less information you have. You never know how you will feel or what choices you might face.  Take life one step at a time and don’t make decisions before you have to.

A few months ago we were interviewing a fantastic woman to join Facebook’s Business Development team. After we extended an offer, she came in to ask some follow-up questions about the role. She did not mention lifestyle or hours. But she was the typical age of the people who leave before they leave.  So I shocked her by asking the question no one asks. “Priti,” I said, “I’m sorry for bringing up something so personal, and feel free to tell me you don’t want to discuss it. But just in case you are thinking that you might want to have a child sometime soon and need to stay where you are to have room to slow down, I’d love a chance to tell you why that makes it even more important that you change jobs now.”

Priti accepted our offer. And just a few weeks later, she found out she was pregnant. Her timing could not have been better.

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September 28, 2009, 2:06 pm

Yahoo CEO Carol Bartz: Unedited

Yahoo CEO Carol Bartz

Yahoo CEO Carol Bartz

Ever since she stormed into Yahoo (YHOO) as its new CEO in January, Carol Bartz has been adamant that the company needs to simplify and define itself. What is Yahoo? “We’re not a search company. We’re not just a social media company. We’re not just a content company. We’re really the center of people’s online lives,” she told Fortune managing editor Andy Serwer in an on-stage interview at the Fortune Most Powerful Women Summit earlier this month. Haunted by Google (GOOG) and handicapped by its failure to do a deal with Microsoft (MSFT) last year, Yahoo has finally gotten some mojo back now that Bartz has struck a search partnership with Microsoft and, just today, launched a $100 million-plus ad campaign. (It’s Y!ou)

Bartz, meanwhile, has never had much problem defining herself. For this year’s Fortune Most Powerful Women issue, the ever-candid and colorful CEO (No. 8 on the MPWomen list) wrote a first-personer explaining what’s made her who she is. We ran an edited version of Bartz’s first-personer in the magazine, but her piece was so good–and so Carol–that we want to share her unedited version in its entirety. After all, as everyone who knows her knows, the best Bartz is the unedited Bartz. So here’s Bartz on Bartz:

I have a lousy track record of starting a new job and then having major surgery. It’s certainly not planned, but people around me have made a lot about me returning to work quickly, which I find fascinating.

I’ve been at Yahoo! since January, and a few months back I had my knee replaced. I scheduled the surgery sooner rather than later, once my doctor identified the need. Why should I wait to feel good? I want to feel good NOW, rather than wait 10 more years. I want to just deal with it. I want to get moving.

I did the same thing with breast cancer surgery, which took place weeks after I became CEO of Autodesk (ADSK). I was back in the office soon after that. It’s not because I wanted to be a martyr. It’s because I had a job to do, and my family knew I’d be much happier if I was back in the saddle. I love to work. I love to run companies. I love to help people I work with. And I don’t let anything get in the way of doing what I love.

Does my childhood have anything to do with this “just deal with it” approach? Possibly. There is something to growing up on a Midwest farm that encourages hard work. The farm won’t wait for a better mood. And neither did my grandmother who raised me. But I encourage everyone – and more and more women – to not take no for an answer if it’s between them and something they care passionately about. What are you waiting for?

Coming to California and Silicon Valley in particular was a blessing for me. I realized soon after arriving here that most people didn’t take a lot of time to ponder, or analyze a decision to death. There just isn’t time. This fit my impatient nature of “doing” very well, and my belief that it’s always worth spending energy on “doing” something better. The technology industry is a great environment for dynamic, innovative optimism.

Moving forward was just what Autodesk seemed to need when I arrived there in 1992. The company was full of brilliant engineers, but no one was making tough decisions and ensuring that projects and performance moved forward. Sometimes even the best of us need a kick in the pants. And making those difficult decisions requires the confidence to stand behind them, especially in a less-than supportive environment. It requires role-modeling the behavior you want your leaders to mimic. It means promoting cooperation, communicating and making sure everyone is responsible for making things happen. Asking everyone to face their fears and get moving!

I like change. Frankly, it’s hard for me to understand why more people don’t embrace it. I’m impatient with people and teams who don’t move forward. “Fail fast-forward” is a favorite motto of mine. It’s about not being afraid to fail, and if you do, identify it quickly and move ahead fast so no momentum is lost. It’s very acceptable to try things that ultimately fail. Just get going again.

Besides, there will always be critics. When I took this job, some said I was too old to run Yahoo! or didn’t understand online media. If I had wasted time worrying about that, or any other time I was criticized for being good at math or a good leader or even for being a woman, where would I be?

I recently took some heat from the media over our agreement with Microsoft and search, but I know it’s a great move for the long-term success of Yahoo!. Making the decision and driving this much change for us was hard but it’s done.  So now we’re moving forward, attacking our future, which is incredibly bright.

Being an optimist is very powerful, and the most successful people I know share this trait. Henry Ford was right: Whether you think you can, or think you can’t, you are right.

I’ve never been interested in agonizing over what could have or should have happened. I’ve found it much more useful to look ahead, not be afraid to fail, make the tough decisions – and to just deal with it. As my grandmother always said.

Here’s Andy Serwer’s interview with Bartz at the Summit:

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September 17, 2009, 1:53 pm

Guest Post: Tory Burch on helping small businesses

Photo courtesy of Tory Burch

Photo courtesy of Tory Burch

by Tory Burch, co-founder and creative director, Tory Burch LLC

After working in public relations for Ralph Lauren (RL) and Vera Wang, Tory Burch started her own company in 2004 as a lifestyle concept with multiple product categories including ready-to-wear, handbags, shoes and jewelry. Her products are now sold in 19 freestanding Tory Burch boutiques across the U.S., www.toryburch.com, two outlets, and 450 department and specialty stores worldwide. In July, Mexico-based Tresalia Capital invested in her company, valuing the business at some $600 million. Burch–whose Fashion Week debut in New York yesterday earned kudos from the critics–recently launched the Tory Burch Foundation to provide economic opportunities to women and their families in the U.S.

Like most mothers, my children are my top priority. I have three sons, and I cannot imagine the pain of not being able to provide for them. I feel incredibly fortunate not to have had to face that hardship. After realizing my own dream of starting a company, I wanted to find a way to help other women entrepreneurs accomplish their own goals. I recently launched the Tory Burch Foundation as a vehicle to help mothers provide for their children.

Deciding to launch the foundation was the easy part. Figuring out how to best help mothers provide for their children took a lot of work.

As I did when I launched my brand, I sought the advice of leaders in the field who could advise me. I met with Melanne Verveer, who is Ambassador-at-large for Global Women’s Issues in the U.S. State Department, and Jeffrey Sachs, the world-renowned economist and professor. Last fall, I visited relief organizations in Haiti and was overcome by the need there. This past July, I went to India and learned about microfinance there. I was inspired by how the organizations were changing the lives of people in need. While there are millions of mothers struggling worldwide to feed and support their children, I soon realized something: I have a great opportunity to contribute here–by working to economically empower women and their families in the United States.

After months of research, I decided that the Tory Burch Foundation’s first area of focus should be microfinance. Most people who have heard of microfinance associate it with small loans given to people to buy a cow or a weaving loom or some other small income-generating asset in developing countries.

In the U.S., the loans are a bit bigger–say $5000, vs. $50 in developing countries, and domestic small business owners need additional help navigating regulatory systems. But the principle remains the same. Domestic microfinance helps low-income people–who don’t typically have access to more traditional forms of employment or financial services–support their families by starting, sustaining, or growing their small businesses.

I’ve learned that the need here is enormous. Only 2% of people who could benefit have access to microfinance services in the U.S., vs. 17% in developing countries. Said another way, a low-income entrepreneur in India may have a better shot at accessing a microfinance loan than a low-income entrepreneur here in the U.S. And that’s before the global economic crisis!

I like microfinance in particular because it isn’t charity in the traditional sense. It’s about investing in people who might otherwise not have the chance to pursue their goals. It gives entrepreneurs the opportunities many of us take for granted, and it is sustainable–loan repayment rates are typically 90% or better. It’s also incredibly important to the economic recovery of our country.

Small businesses represent more than half of U.S. jobs. When we create more small businesses, we fuel the economy and fight poverty. Research shows that every microfinance loan creates an average of two jobs. And every dollar invested returns $2 to $2.72 to the economy.  I chose ACCION USA, one of the largest and most respected U.S. microfinance organizations, to be my Foundation’s first partner. Since 1991, ACCION USA has provided more than $116 million in loans, with a 92% repayment rate.

This brings me to today.  I recently had the pleasure of spending time with ACCION USA CEO Gina Harman and a few of their clients. One of them whom I’ve come to know is printing business owner Maritza Polanco. She and her team of sales people, graphic designers and press people at Polanco Press serve many New York companies with traditional print services and creative branding solutions out of a single room.  I found her positive attitude, along with her creativity in finding new ways to serve her clients, incredibly inspirational.  Maritza has managed to maintain her success, even during the economic downturn, which is a great accomplishment. She has increased her sales through partnerships with local organizations and has even branched out into newspaper production. Like so many entrepreneurs, it’s in her blood. Her mother was a self-made business owner too.

I’ve also come to know Flor Diaz, who runs Florquidiaz Bridal Shop in Queens–although “bridal shop” is a wholly inadequate description of her business. In addition to serving brides, Flor helps Quinceañera celebrants with both clothing and event planning. (Quinceañera, or “15 years” in Spanish, is a coming-of-age ceremony that often takes on wedding-like proportions in the Latin American community.) Flor has also expanded her business outside the U.S.  She spends half the year in New York and half in her native Dominican Republic, during their party high season. While she’s gone, her husband runs the business here. She is relentlessly brainstorming new ways to expand and is considering opening another store.

Both of these businesswomen are creative and tireless entrepreneurs. They face the same questions about marketing, competition, expansion, staffing and market conditions that I do. During these challenging economic times, their businesses create jobs. Flor’s flourishing business not only helps fuel the economy. It also helps support her four children too.

This is a bit longer than the average Postcard, but I hope it gave you a sense for why I want to invest in women like Maritza and Flor. They have transformed their lives by accessing the financial services that many of us take for granted and are setting a great example for other women. I would love any suggestions you might have for how the Tory Burch Foundation can do more. Please visit my website at www.toryburchfoundation.org and drop me a line with any ideas.

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August 26, 2009, 2:02 pm

Guest Post: The value of volunteerism

Train your People and Do Good
by Barry Salzburg, CEO, Deloitte
Recently, I was sitting with several dozen inner-city teens, talking with them about college and careers. It was a free-wheeling conversation. I was peppered with questions—including, “How can I get your job?”
I left absolutely convinced that as a result of that session, at least one kid who otherwise would have missed going to college will, in fact, be going. Let me tell you, it made my day, if not my week.
And it reminded me of an often overlooked way to keep meeting people’s needs, particularly in these hard times as non-profit organizations are seeing double-digit drops in funding, as demand goes through the roof. Skills-based volunteerism. That is, donating high-value, professional skills—for free.
Our company, Deloitte, recently conducted a survey on corporate volunteering. We found that 91% of respondents agreed that skills-based volunteering would add value to training and development, especially in fostering leadership and business skills. But only 16% of companies offer skills-based volunteering as an option for employees. Only one out of six.
Given the obvious need out there and also given President Obama’s impassioned call for national service, we’ve gone way beyond surveying about volunteerism. We’ve pledged $50 million in services–that’s right, $50 million worth of our employees’ time–over three years to help non-profit organizations boost their effectiveness.
Deloitte employees are donating skills in such areas as IT, marketing and personnel management, at all sorts of non-profit organizations. For me,education is a special passion. I wasn’t the first in my family ever to go to college—my older sister claimed that honor—but I know what a profound difference it made in my life and in the lives of my two sons. So I work with a non-profit called College Summit.
College Summit, in fact, brought me and those inner-city kids together. College Summit’s goal: to take kids from families in which nobody has ever gone to college–and then get them into college. The approach: Create a ‘college-going culture’ in high schools where college-going rates are low. We provide cash, lots of volunteer hours from our people, and pro bono work on systems that give principals and schools districts much better data about their students’ progress.
Through personal experience, I’ve learned that skills-based volunteeriism is one of those double bottom-line investments. It helps non-profits build capacity to serve more people with greater efficiency–making the non-profit more attractive for corporate support. That’s the no-brainer benefit. The less obvious benefit is the real-world training for our people, especially our younger people. We do valuable, low-cost training and do some good for the world.
Barry Salzberg is CEO of Deloitte LLP….MORE MORE…

On April 21, President Obama signed the Edward M. Kennedy Serve America Act. What better day than today to spotlight businesses that reflect the late Senator’s mission to expand national service. More and more companies–IBM (IBM), UPS (UPS), Target (TGT), General Electric (GE), Citigroup (C) and Pfizer (PFE), among them–are aiding not-for-profits by having their employees share skills. Done right, this sort of volunteerism can be win-win-win: image-enhancing for the company, morale-boosting for employees, and generally good for the world.

A Billion + Change (“Great Talent for the Greater Good”) is the national program through which corporations pledge to expand their volunteered professional services to the nonprofit sector. Another member, besides the companies above, is Deloitte, whose CEO is committed personally. Here’s Deloitte CEO Barry Salzberg’s take on the value of volunteerism:

Photo Courtesy of Deloitte

Photo Courtesy of Deloitte LLP

Recently, I was sitting with several dozen inner-city teens, talking with them about college and careers. It was a free-wheeling conversation. I was peppered with questions–including, “How can I get your job?”

I left absolutely convinced that as a result of that session, at least one kid who otherwise would have missed going to college will, in fact, be going. Let me tell you, it made my day, if not my week.

And it reminded me of an often overlooked way to meet people’s needs, particularly in these hard times as non-profit organizations are seeing double-digit drops in funding–as demand goes through the roof. I’m talking about skills-based volunteerism. That is, donating high-value, professional skills–for free.

Our company, Deloitte, recently conducted a survey on corporate volunteering. We found that 91% of respondents agreed that skills-based volunteering would add value to training and development, especially in fostering leadership and business skills. But only 16% of companies offer skills-based volunteering as an option for employees. Only one out of six.

Given the obvious need out there and also given President Obama’s impassioned call for national service, we’ve gone way beyond surveying about volunteerism. We’ve pledged $50 million in services–that’s right, $50 million worth of our employees’ time–over three years to help non-profit organizations boost their effectiveness.

Deloitte employees are donating skills in such areas as IT, marketing and personnel management at all sorts of non-profit organizations. For me, education is a special passion. I wasn’t the first in my family ever to go to college–my older sister claimed that honor. But I know what a profound difference it made in my life and in the lives of my two sons. So I work with a non-profit called College Summit.

College Summit, in fact, brought me and those inner-city kids together. The organization’s goal: to take kids–many from families in which nobody has ever gone to college—and get them into college. The approach: Create a ‘college-going culture’ in high schools where college-going rates are low. We provide cash, lots of volunteer hours from our people, and pro bono work on systems that give principals and schools districts much better data about their students’ progress.

Through personal experience, I’ve learned that skills-based volunteerism is one of those double bottom-line investments. It helps non-profits build capacity to serve more people with greater efficiency–which makes the non-profit more attractive for corporate support. That’s the no-brainer benefit. The less obvious benefit is the real-world training for our people, especially our younger people. We do valuable, low-cost training and we also do some good for the world.

Barry Salzberg, with Deloitte for 32 years, has been CEO since 2007.

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August 19, 2009, 1:31 pm

Guest Post: How to inspire your people

by Stephen Allan, Worldwide Chairman and CEO of MediaCom

steve_allan.03As CEO of MediaCom, it’s my job to hold onto our best people and keep them happy and motivated. Today, when challenges to morale threaten around every bend, this task is harder than ever. Nonetheless, I do believe there are clear ways to keep people inspired and engaged. At MediaCom, we do this with the help of a program we call Freshness.

Freshness is a series of initiatives designed to motivate, teach new skills and stimulate curiosity. It covers everything from life coaching to creativity training to professional development programs. Our goal is to make our people look forward to coming to work everyday and also develop as people—professionally and personally.

We launched Freshness in 2005 in MediaCom’s U.K. operation, which has helped that business consistently place highest in its sector in the prestigious annual Sunday Times “Best Companies to Work For” list. Early this year, we rolled out Freshness across our network of 110 offices in 90 countries.

One of my favourite Freshness initiatives is “If I Ran the Company…” This competition involves every single member of the MediaCom staff worldwide. I like it because it encourages everyone to have a say in how MediaCom is run and also helps us evolve in a rapidly changing media landscape.

It works like this: The entire staff in each office is split up randomly into teams. Then they’re given one broad brief to think about. This year, the brief was to come up with an actionable idea that would help us deliver our vision: “MediaCom has the world’s best culture for curious, forward-thinking people.” Then, each team must pitch its idea to management–in two minutes.

Each year, the winning idea is put into action and, ideally, becomes an integral part of our culture. This year’s winning idea came from a team in our Austrian office. They proposed Inspiration Days, where everyone in the company would be entitled to one day every year spent away from the office, learning about or indulging in some non-work-related but inspiring activity. An employee’s only obligation is to give a presentation about their day to their colleagues–thus spreading the inspiration through the company.

We liked the idea because it’s extremely simple and can be implemented immediately and everywhere. And despite its simplicity, the benefits–in terms of keeping our staff motivated and in bringing new perspectives into MediaCom–are potentially immense. We’ve seen the payoffs, which are more than coincidental. In the UK, post-Freshness, we’ve dramatically increased the number of creative awards that we’ve won. We’ve become the biggest media agency in the country–the first to top £1 billion in billings.

And in Asia, one year after we introduced Freshness, our number of industry award wins–primarily for creativity and innovation–increased threefold.

Besides those benefits, the very existence of the competition pays off. The random teams mean that people who don’t usually work together spend time with each other. And the fact that all 4,000 of our staff are working on the same brief and pitching on the same day strengthens the “network-ness” of MediaCom.

And, of course, we end up with a shortlist drawn from 500 great, transformative ideas to help keep us ahead of our competition. One winning submission in the U.K. devised a ‘green initiative’ that, after we implemented it, secured MediaCom a place among the 10 greenest companies in the U.K., according to The Sunday Times.

The real evidence of success is our people–remember, my job is to keep them happy and motivated. Well, according to our surveys, 80% of our employees say that Freshness helps them be more creative; 82% feel safe to step out of their comfort zone at work. And 86% think Freshness makes their job more fun.

And in these trying times, couldn’t we all use a little more fun?

Stephen Allan is Worldwide Chairman and CEO of MediaCom, a WPP (WPPGY) company and one of the world’s largest strategic media planning and buying agency networks. MediaCom’s clients include Audi, Dell (DELL), Diageo (DEO), GlaxoSmithKline (GSK), Hasbro (HAS), Subway, Staples (SPLS), Warner Bros. (TWX), Volkswagen (VLKAY), Shell (RDSA), Royal Bank of Scotland (RBS).

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August 13, 2009, 1:42 pm

Guest Post: Bridging college to career…to CEO?

You never know who your summer intern will turn out to be. In 1980, Ursula Burns was a summer intern in mechanical engineering at Xerox (XRX). Last month, she became CEO there. In 1985, Sallie Krawcheck was a summer intern at Fortune. She later climbed to the top tier of Citigroup (C), where she served as CFO and ran a $13 billion wealth management unit. Last week, Krawcheck moved to Bank of America (BAC) to head its global wealth and investment management business.

So, treat your intern well. He or she could be your boss someday. As we mention in the current Fortune, smart bosses employ interns to learn how the world is changing. Morgan Stanley (MS) recently published a report on digital media that was written by a 15-year-old summer intern. Hewlett-Packard (HPQ) CTO Phillip McKinney has interns live with him–to help him understand young consumers.

crisiti_pedraAnother company that manages interns well is Siemens Hearing Instruments, a unit of German-based Siemens AG (SI). Here’s Christi Pedra, president and CEO of Siemens Hearing, with some advice for giving interns the best summer experience and getting value in return:

When I attended college (could it really be 30 years ago?), we picked majors that were suitable to a lifetime career in one field. With one position in mind. You could be an accountant or a nurse or a teacher. If you graduated with a general business degree, you hoped for a long career at IBM (IBM), Xerox or some financial institution.

Steadfast and secure. That was then.

This is now. It’s acceptable to change jobs frequently, or pursue a totally new career. With life expectancy approaching 80, you could easily have three or four successful and distinct careers.

As CEO of Siemens Hearing, how can I help young people navigate the bridge from college to career?

When I joined Siemens Hearing in 2007, I launched a summer intern program–and in designing it, I took input from my nieces and my son who were in the midst of internships (good and bad). One of my nieces had a great experience at a PR firm in New York City. The CEO invited all the interns to a reception in his home midway through the summer. In contrast, my other niece complained about getting an assignment that her supervisor assumed would take several days. When she finished the project early, there was no one to ask for the next assignment–because her manager went on vacation for three days. The better part of her week was spent browsing the Internet, trying to look busy!

We used these lessons, along with ideas from our employees, to shape our program, which has turned out to be really successful. A few ideas I’ll share:

First of all, we make a big deal for our managers to get interns. Department managers submit a proposal for a project that can be completed in 10 weeks. It must have a measurable outcome and benefit to the business. The best proposals are granted interns. HR helps in the sourcing and selection process. For the last three summers, we’ve hired 12 to 16 interns in their third or fourth year of college, and we pay them attractive wages–on average $18 an hour.

Second, we make it challenging. We give interns assignments that matter to them and to us.  This is not a shadow experience. The interns report to a department manager and are assigned a mentor. They’re assigned tasks as part of a cross-functional project team and manage assignments against a time line. I’ve had interns co-author a research paper, redesign a manufacturing line that resulted in a 24% productivity improvement, conduct and publish interviews for on-line media, and create video marketing segments.

Third, we make it real. Each year, we have our interns present their assignments. It used to be that the audience consisted of intern supervisors and me. But over the past couple of years, interest grew so much that we opened it up to all managers and department colleagues. Last year, intern presentation day was standing room only; this year, we reconfigured our training room to accommodate more than 30 attendees. Once again, the intern projects far exceeded expectations. For example, our interns simplified manufacturing tool kits, audited and redefined work instructions, developed internal communication campaigns and validated software. Ten weeks ago, they entered Siemens Hearing Instruments as students, and now they will be leaving us as professionals.

The results have been truly rewarding. We’ve offered permanent employment to at least one intern from each summer program. We’ve hired these interns in sales support, web marketing and finance. A win-win for all. And this year, we expect to extend two intern assignments into the fall and hire another two interns into permanent positions.

I kind of wish I were 22 again.

Unlike the job-hopping young people she writes about, Pedra has been with Siemens for more than 20 years. She graduated from Montclair State University and earned her MBA at Rutgers.

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August 4, 2009, 1:11 pm

Guest Post: Advice to Starbucks CEO Howard Schultz

Starbucks (SBUX) is one of our favorite topics on Postcards. We’re in the stores everyday. We vigilantly watch CEO Howard Schultz’s efforts to slash costs, revive the brand, treat employees respectfully, satisfy investors, and fight incursions by very aggressive McDonald’s (MCD) and Dunkin’ Donuts. Today’s Wall Street Journal has an interesting story about Starbucks’ latest efficiency efforts–which could compromise the brand “romance,” which Schultz has long said distinguishes Starbucks, and employee (or “partner”) morale. Sun Min Kimes, a behind-the-counter barista at a Starbucks in Ashburn, Virginia felt strongly enough about the struggles to write this Guest Post. We hope Howard Schultz reads it.

sunminsbuxby Sun Min Kimes

I started working for Starbucks a couple of years ago, after I returned to the U.S. from Seoul.  I first moved to America 30 years ago, but my husband and I went back to my native country, South Korea, when my daughter–who is a writer-reporter at Fortune–left for college. Upon our return to Ashburn, Virginia, I wanted to get a part-time job, so I drove to the Starbucks near our house and filled out an application.

I was hired after my second interview. When I started the job, I was very nervous about the long lines of customers and complicated terms for everything. Although I came here from Korea many years ago, English is my second language. Sometimes, customers were frustrated if I took too long or made mistakes.  So I made my own homemade notebook of Starbucks recipes and studied it every night.

Eventually, I became comfortable at work. I began to see the same customers every day, and we became friends, even talking about our lives. I met a 45-year-old woman whose teenage son loves sports (like my children did), and a Filipino girl who thought she had to leave the states but received permission to stay.  There’s a gentleman whose wife is terminally ill–he comes in, sits down, and reads a book most days. I think being here comforts him.

Over time, I grew more interested in the company. In fact, many of us “partners” feel this way. We track what is happening through various blogs. We know the business has been going through tough times, so I was happy to hear that profits recently improved. However, I wish we could increase earnings without cutting costs.

It is very difficult sometimes when there are only two people on the floor doing everything. I think that Howard Schultz has made a lot of smart decisions, but I have some suggestions for him.

Howard, I think you have done a good job of being transparent, but it would be wonderful if you communicated more with the workers. I would like to get an internal newsletter, with information about what successful locations are doing, new products, and the company’s strategy. Additionally, customer service would improve if we received reeducation. I know many of us want the opportunity for advanced training.

I’ve heard that, in Seattle, you’re creating new “stealth coffee shops,” called 15th Avenue stores, without the Starbucks brand. Customers will see through this. Instead, why not empower–and incentivize–managers to appeal to their communities by sourcing food, music, and artwork from locals while sustaining our brand?

A few more suggestions: During the morning hours at busy stores, I think many of our customers would appreciate it if a single register were designated for drip coffee. And regarding new products: I just don’t think the company is successful in creating excitement. We’re told to provide samples, but I rarely see them in stores.

I know that Starbucks has been successful with social media, but I think you should reconsider your resistance to nationwide television advertising.  We need to work harder to create buzz.

Regarding our retail items: I haven’t seen sales data, but I question the strategy. The various mugs, stuffed animals, tumblers, etc. look colorful and add to the store’s ambiance, but they sit on our shelves forever.  We always end up marking them down. I think we should offer fewer items, and choose them more carefully.

Finally, you should develop a new plan to reward frequent visitors. Recognition is important to them.

These are pretty small ideas, and they are coming from someone who hasn’t been at Starbucks for that long. But even in my short time, I’ve become invested in the company. I love how it fosters diversity by bringing together people from different countries and walks of life.  After I left my native country for the second time, Starbucks gave me a community. I hope you can keep it thriving.

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July 8, 2009, 1:57 pm

Guest Post: Starbucks goes to Rwanda

Last week, Rica Rwigamba attended a meeting with Starbucks (SBUX) CEO Howard Schultz at the U.S. embassy in Rwanda. Rica lives in Kigali, Rwanda’s capital, where she is co-owner and director of New Dawn Associates, a “responsible tourism” and event management company. Rica is also a participant in the 2009 Fortune-U.S. State Department Global Women Leaders Mentoring Partnership, an extension of the Fortune Most Powerful Women Summit. Through this mentoring program, Rica spent three weeks in May shadowing her assigned mentor, Mary Wittenberg, who is the CEO of the New York Road Runners (which puts on the New York Marathon each November). We asked Rica to share her observations of the Starbucks event with Postcards readers, and she offered this captivating account.

Rica Rwigamba at Fortune's Most Powerful Women Dinner, May 2009

Rica Rwigamba at Fortune's Most Powerful Women Dinner, May 2009

It was a gathering of more than 50 Rwandan business people and staff from the U.S. embassy, Howard and members of his team, and fair trade guys. It felt great to be part of it, and I realized the power of being part of a network. Lots of the people in the room were directors and experts in their fields. Some have undergone trainings or U.S. sponsored programs like me, and that is how they got invited.

I had read about Howard, so I knew his remarkable achievements and his picture. It was funny to see that the woman I sat next to didn’t have a clue about him and didn’t even know what he looked like until I pointed him out. I can’t bet $1 million USD that she wasn’t the only one who didn’t know about him, because I don’t have that kind of money. But it was interesting to witness that!

His message wasn’t what was expected. Everyone waited to hear how he had climbed the ladder and made so much money. He didn’t really talk about that. Instead he talked about how special Rwanda was and how he felt he wanted to contribute to the development of the country. He praised the people of Rwanda for their efforts and constant struggles. He shared his memories of the meeting he had with a woman member of a coffee cooperative whose dream was to own a cow. He compared his life as a young man who came from a humble background and how it’s not money that really makes a person, but values — which many forget about because of riches.

The highlight of the event was the interaction with the crowd. One man pointed out an initiative started in eastern Rwanda to sell coffee made by women once a week. This was done to encourage men to let women make money from their work. Women often work the hardest in the field but they never get to sell their crops. So this guy said that they convinced the men to let women sell their products on Thursday at local markets and brand them “coffee made by women.” And what is selling the best?  The man then asked Starbucks to encourage this culture within cooperatives that they participate in and one day sell “Coffee made by Rwandan women” in their stores.

The crowd really applauded that. And a woman from the fair trade group later said that something similar was happening in Latin America, and that Femina was sold as “coffee made by women.” It will be interesting to see if this initiative is actually implemented! Howard invited this guy to attend a meeting in Seattle that will take place this year.

It was great to witness the active discussion and to know that Starbucks has now opened an office in Rwanda, and that we are the first African country where they have an office. If nothing else, I hope our coffee gets a permanent market and that the culture of drinking coffee is spread in Kigali and around the country. Did I say that I am drinking delicious Rwandan coffee while writing this?

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Jessica ShamboraJessica Shambora started with Fortune as a reporter in June of 2008, following a stint as assistant editor at Travel+Leisure Golf. Shambora has written for Sports Illustrated, SI Latino, Women's Health, and Triathlete. She is a frequent contributor to Postcards.
Every year Fortune and the U.S. State Department sponsor the Global Women Leaders Mentoring Partnership, which brings rising-star women from developing countries to the U.S. to work closely with participants of the annual Fortune Most Powerful Women Summit - among them CEOs Andrea Jung of Avon, Ann Moore of Time Inc., and Ursula Burns of Xerox.
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