Insights on Brazil

I returned from another interesting week in Brazil and with each visit I find that I get a better glimpse of the dynamic changes happening in this market. This was my second visit in the past six months, and given the deep and ongoing interest by manufacturing companies, it certainly seems to be a place that deserves increasing attention.

During this most recent trip, I had the opportunity to meet with several senior executives at top Brazilian and multinational companies. It was fascinating to receive firsthand accounts from these manufacturing leaders on both the strengths and challenges of the current business environment in Brazil and their outlook on prospects for the future. Not surprisingly, despite the diverse manufacturing sectors these leaders represented, their insights had very common themes.

Making a genuine gender difference

It is one of the enduring paradoxes of working life: Advancing women in business life seems common-sense but in practice appears to flounder and not make the headway we all expect. The reasons for this were a topic of discussion at the recent OECD Gender Forum – Closing the Gender Gap: Act Now, where I joined a distinguished group of participants, including government and business leaders. It was clear from our discussion that challenges remain.

Take diversity for example. Deloitte Australia has recently carried out ground-breaking research (“Waiter, is that inclusion in my soup?”) in the manufacturing, retail, and healthcare sectors. When modelling the relationship among diversity, inclusion and business performance, the research found that when both diversity and inclusion were high, there was an uplift of some 80 percent in perceptions of business performance. Buoyed by these results, the research was widened to include customer service, innovation and engagement. And the same thing happened: Perceptions of business outcomes are always significantly higher with high diversity and high inclusion. Another finding was that where employees perceive their organization is committed to and supportive of diversity, and where employees feel included, they are 80 percent more likely to believe they work in a high-performing organisation.

Talent and reinvesting for growth

With the 2012 Olympics just around the corner, I cannot imagine a better venue to host a discussion on competitiveness than in London. The city provided an ideal backdrop for a recent Deloitte industry event which underscored the talent issues faced by many global manufacturers and the importance for companies to continuously reinvest for growth to remain competitive.

The Deloitte Manufacturing Competitiveness Summit event featured a distinguished panel of senior executives from three prominent manufacturers, ArcelorMittal, Siemens, and Jaguar Land Rover, as well as a senior representative from the European Commission.

The panel shared views on how they were working to ensure their companies remain globally competitive. It was fascinating to hear one of the executives say that 100,000 apprentices will be needed in the United Kingdom (UK) manufacturing industry alone in order to replace the retiring baby boomer generation in that company. Another executive reinforced the talent issue by outlining the skill shortage in fields like engineering and production supervision saying it was particularly challenging in their business to find these experienced hires.

Reflecting on 'the business case for women’s economic empowerment' workshop

The recent joint workshop on the business case for women’s economic empowerment which I chaired at the Organisation for Economic Co-operation and Development (OECD) in Paris was, I hope, another small step to integrating women’s experiences, perspectives, and voices into the fabric of our organizations, systems, and societies. Over 120 experts from around the world had gathered, including the U.S. Ambassador to the OECD and the OECD Deputy Secretary General, and representatives of business, government, and investor communities.

It was a joint meeting between the OECD; BIAC, the Business and Industry Advisory Committee to the OECD; and the American Chamber of Commerce in France and the aim of the day was to provide a business perspective and best practice experience to the OECD’s Gender Initiative. A report on the shared ideas will go forward to the 2012 OECD Ministerial and Forum to be held in May.

The levels of engagement in the discussion reflected just how important an issue this is for many, and for many reasons. What was being discussed didn’t seem to be mostly about the research and the data. It was much more grounded in common-sense and shared experience. Several people mentioned President Obama’s recent remarks on the subject and used them as their starting point. He had said that what we are talking about when we talk of women taking a much greater place in the economic structure is very simply that we want the same opportunities for our daughters as we want for our sons. Put like that the issue becomes very simple and almost unarguable.

Ladies first

Ladies first: An old adage, but one that was top of mind on 2 February 2012 at the Business and Industry Advisory Committee (BIAC), AmCham France, and OECD joint workshop on the economic empowerment of women. And so it should be. Women are a critical resource in facing the challenges of our global economy, both as an emerging market and as a significant pool of human talent.  Further, gender diversity creates the potential for better, more informed decision-making in our societies, an educated and diverse source of talent for private and public institutions, and role models who can be an inspiration to billions of women and men worldwide.

Harnessing the potential of women in the workforce

I have just spent a fascinating week at the World Economic Forum in Davos, Switzerland. The theme for 2012, The Great Transformation: Shaping New Models, covered several topics such as shifts of geopolitical and geo-economic power, multiculturalism, technological innovation, and job creation. For example, academics and business leaders put forth the idea of job creation that focuses on the hundreds of millions of people that will enter the job market in the next decade. Businesses that will gain a competitive advantage in the future will be those that focus on talent by fostering entrepreneurial risk-taking and achieving true gender equality.

Against this backdrop of gender equality discussions, one of the highlights of the week for me was the Gender Parity session on Friday. As the leader of the Japanese Financial Services Industry practice at Deloitte Japan and the first female represented on the Deloitte Japan Executive Board, I am passionate about shaping employment and leadership opportunities for women. I had the privilege of talking to leaders from around the world in this interactive workshop about their experiences, and how to improve opportunities and career paths for women leaders in the future.

Optimistic in an uncertain world

Last year, I described my Davos experience as being like going to Disneyland but not being allowed to try the rides. This year, attending as a delegate for the first time, gave me an Alpine rollercoaster experience – from the highs of meeting and hearing from inspirational innovators, entrepreneurs and experts in their fields, to the lows of some sobering economic debates.

The World Economic Forum has typically contained an element of future gazing – what is the 5-10 year outlook for business and society? This year, there was a much more short term feel, with a strong focus on solving the Eurozone crisis. Perhaps unsurprising, given the presence of Angela Merkel, David Cameron, and numerous finance leaders.

Davos is a great opportunity for me to spend time with the CEOs of our member firm clients, and to get a good sense of the latest thinking of political leaders, finance leaders, and regulators. It’s also a real opportunity to hear from experts in fields I wouldn’t normally hear from, for example, on the future of medicine. This broader agenda is not only personally interesting, but gives me new perspectives and challenges my thinking.

The Gender Dividend: An urgent economic imperative

The biggest issue facing many of the world’s economies today is economic growth and job creation; yet it is with mixed results that governments and business are tapping into arguably the largest emerging market in the world and the greatest natural resource for knowledge, talent and investment: women. Statistics strongly demonstrate that there is in fact a gender dividend, but despite progress, there is a long way to go with respect to improving women’s economic opportunity and thereby harnessing the potential of the gender dividend.

What is needed is focused government policy and business engagement at all levels to support women at work. Sound socio-economic policies must underpin and encourage action, and governments, along with business, must innovate, support community investment, and remain committed to making the difference as it relates to women. Amongst business this means measurable, management-led policies and practices to drive female leadership across management roles and divisions, on boards, at the highest executive levels (the C-suite), and throughout the talent and supply chains. Many companies worldwide are making significant strides, but ongoing commitment is needed.

This is not just a question of the trillions of dollars of untapped consumer demand that women represent, but the potential for better, more informed decision-making in our societies, an educated and diverse source of talent for private and public institutions, and role models who can be an inspiration to billions of women and men worldwide. Government, business, and society must continue to integrate women’s experiences, perspectives and voices into the fabric of their organizations and systems. Only then will we truly benefit from the gender dividend.

For more on this issue, read the full article (PDF). Also read and download Deloitte Global Public Sector's report "The gender dividend: Making the business case for investing in women."

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Charles Heeter is with the DTTL Global Public Policy Group and a principal in the U.S. member firm. In his role, he engages in Deloitte global public policy initiatives, is responsible for building cooperative relationships with capital markets stakeholder groups, and helps coordinate the Deloitte global regulatory network. Heeter is also Chairman of the Business and Industry Advisory Committee to the Organisation for Economic Co-operation and Development (OECD).

Deloitte21: Helping underserved young people thrive

Barry Salzberg, Chief Executive Officer, Deloitte Touche Tohmatsu Limited, enthusiastically shares his thoughts on Deloitte21, a Deloitte network-wide global initiative aimed at helping underserved young people acquire the education and skills needed to thrive in the 21st-century economy.

“The world is currently facing a growing talent gap between what potential workers are learning and the actual skills needed to thrive today and in the future.”

“It is imperative for businesses worldwide to recognize this void and take action toward adequately preparing young people for a knowledge-based economy.”

-Barry Salzberg, CEO, DTTL

0:06 - What is Deloitte21?
1:43 - How is the Deloitte global network taking action and what is unique about its approach?

        

Why WEP matters: The UN Women’s Empowerment Principles – one year later

It is a universal maxim that there is strength in numbers. While it’s great when one company commits to investing in women—it’s even better when that number is 170. That’s how many CEOs have now signed the United Nation’s Women’s Empowerment Principles (WEP). And as evidenced by the UN’s one-year commemoration of the launch of WEP last month, that number seems likely to grow.

This event, where I participated as a panelist, took the importance of WEP to a new level. More than 150 executives attended the conference, from such well-known companies as Banco de Brasil, Calvert Asset Management, and Novo Nordisk. The UN Secretary-General, Ban Ki-moon, himself opened the meeting—and there were nearly as many men as women in attendance.

All of this underscored a palpable sense of urgency that seemed to pervade the conference. An urgency that the time to invest in women is now. Not in a year or two when the economy recovers. Not when the dust settles after various laws and regulations take effect, but now. If you want to grow your economy or business and stay competitive, you need to start taking the role of women in organizations and in leadership roles more seriously—and focus on intentional change.