Global Diversity & Inclusion

Global Diversity & Inclusionat Microsoft

“By providing access to technology, Microsoft strives to help all people realize their potential. This means that diversity and inclusion are not just words on paper for us; they are core values and business imperatives. We promote diversity at every level within our organization and strive for inclusiveness in everything we do.

We believe that employing the world’s top talent from all groups within our communities—from many backgrounds and with varied experiences helps us to better serve our customers and gives us a competitive advantage in the global marketplace.”                                                                                                                                                                                    Steven A. Ballmer, CEO

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• Microsoft’s Diversity Journey• Overview• The business rationale• Global market trends

• Global Diversity & Inclusion Strategic Priorities

• Observations

• The Israel Story

• Questions/Comments

AGENDA

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OVERVIEW

D&I Key focus since 1992

Primarily US centric Focused on race and

gender Strong external outreach Linked to targeted

recruitment

Lacked clear, cohesive D&I strategy

Disparate efforts Lacked business

rationale and alignment

Needed more solid GD&I expertise

Data gathering & analysis required

Develop cohesive global strategy linked to Microsoft business & vision

Strengthen global perspective and integration

Enhance leadership engagement

Improve quality and accuracy of Diversity data globally

Increase portfolio of D&I learning

Improve senior level diversity representation (women and people of color)

Historic Trends: Early findings: Results have been to:

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DEFINITIONS: DIVERSITY & INCLUSION

PERSONALITY

Marital Status

Income

Parental Status

Appearance

Language

Work Experience

Educational Background

Religion

Recreational Habits

Personal Habits

Seniority

Division/Department/Unit/Group

WorkLocation

ManagementStatus

WorkContent/

Field

Functional Level/Classification

Geographical Location

INTERNAL

EXTERNAL

Race Gender

Ethnicity

Physical Ability

Sexual Orientation

Age

ORGANIZATIONAL

Concept designed by Gardenswartz and Rowe

Diversity: The full range of human and / or organizational differences & similarities, inclusive of everyone

Inclusion:The process of leveraging the power of differences and similarities to effectively achieve a common goal or objective

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Our consumer base is constantly changing and growing. We need to be:

• Diverse enough to match up to our current and new markets

• Aware enough to anticipate, respond and serve the needs of the changing consumer marketplace

• Engaged enough to contribute at the highest levels to deliver superior performance

THE BUSINESS RATIONALE

HR CONFIDENTIAL

Global Village

Africans and Middle Easterners

15%

Asians56%

Commonwealth of Independent States

5%

Europeans9%

North Americans5%

South Americans8%

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• Women represent 40% of the world’s labor force and

earned income is growing at 8.1 % versus 5.8 % for men – Euromonitor

• Women globally control $20 trillion in annual consumer spending; by 2014 that could climb to $28 trillion. – BCG

more than the estimated GDPs of India and China combined!

• Nearly 85% of all consumer electronic purchases are made by women – Euromonitor

• Tech-savvy women purchase $55 billion in consumer technology products

GLOBAL MARKET TRENDS: WOMEN

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Talent Values

Right BetsInnovation

MICROSOFT

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WORLDWIDE PRESENCE

*Source: IDC White Paper “Partner Opportunity in the Microsoft Ecosystem”, March 2011

110 SUBSIDIARIES

89,000 EMPLOYEES

640,000PARTNERS

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Challenges

• It can be difficult to attract and retain top diverse talent in increasingly competitive markets.

• Fewer women pursue careers in the technology industry globally.

Opportunities

• Continuing to recruit and retain diverse employees who reflect our customer markets.

• Increasing interest in technology careers among women and diverse populations.

• Capitalizing on the opportunities of an increasingly diverse global marketplace.

GLOBAL DIVERSITY & INCLUSION AT MICROSOFT

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GD&I STRATEGY SUPPORTS MICROSOFT’S STRATEGIC VISION

Microsoft

Strategic Vision

Strategy

Key Strategic Elements

Create seamless experiences that combine the magic of software with the power of the Internet across a world of devices

Microsoft Strategic Vision

Create the environment that helps Microsoft capitalize on the diversity of its people and inclusion of ideas and solutions to meet the needs of its increasingly global and

diverse customer base

Global Diversity & Inclusion Strategy

Reframe GD&I Platform To Support Global EffortsStrengthen core of D&I expertise to support the enterprise

InclusionSupport cultivation of

an inclusive workplace that

surfaces the best ideas and solutions

for the company and customer

RepresentationIncrease diverse

pipeline across the enterprise; prioritize

target areas based on data analysis

Market InnovationDevelop the

capabilities to drive revenue through

penetration of high value diverse

markets

Key Strategic Elements

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BUILDING A MORE DIVERSE MICROSOFT WORKFORCE

Increasing executive leadership and accountability for diversity and inclusion:

Providing professional development opportunities to employee groups:

Sparking student interest in technology careers:

CREATING A MORE INCLUSIVE WORK ENVIRONMENT

Increasing diversity and inclusion training

Encouraging employee conversations about diversity and inclusion

Supporting diverse Microsoft employee development:

GD&I FOCUS AREAS: WHAT WE’RE DOING

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OUR PRIORITIES FOR FY2012 INCLUDE:

• Continuing efforts to increase diverse talent in senior level positions, with a focus on racial minorities in the United States and women globally.

• Enhancing managers’ capability and skills for engaging a diverse workforce and creating inclusive work environments. We will focus on critical skills and behaviors that all levels of management must demonstrate to excel when leading diverse employees and teams.

• Continuing to expand diversity and inclusion efforts in countries outside the United States.

• Conducting research to identify business opportunities for Microsoft to market to diverse populations.

GLOBAL DIVERSITY AND INCLUSION FOCUS AREAS:

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GD&I IMPACT TO MICROSOFT BUSINESS – MARKET INNOVATION

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Inclusion• Female representation in

succession planning • Female Representation in

talent initiatives, HIPO etc. • Career development plans

Representation• Gate keepers - Hiring engine• Hiring initiatives: Diverse

candidate slates.• Attraction - Employer of

choice

Culture• GM, LT, management community

engagement • LT & manager training• Women’s forum : on going workshops,

initiatives and tools, led by female managers & supported by HR

• Flexible working hours• Maternity and parenthood: family

activities, Employee Assistant Program, nursing room on site, maternity kit -

benefits and policy & special benefits etc.

Israel - Our journeyThe way to excel our target - Success Inhibitors

MS In The Community • Citizenship programs addressing

national priorities of employability and Innovation focused on women and driven through tight collaboration with Gov. and non-profit.

• Programs focus on different groups whose participation in the workforce are relatively low and promote their employability through technology training.

Israel

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LEADERSHIP ACTION STEPS

• Understand why Diversity & Inclusion matters to your

company

• Learn how to talk about diversity and inclusion from a

business perspective

• Be transparent and have the conversations with your own

team

• Include others outside your comfort zone - expand your circle

to optimize diversity

• Challenge yourselves to understand the impact of your own

cultural viewpoints on your interactions with others who are

different

• Focus on diversity at the individual level

What can you do……

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THANK YOU!

© 2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.

The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment

on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.