Business of Diversity, Equity and InclusionSilicon Valley companies say they want to be more diverse. Here’s how ServiceNow is trying to make it happen.
Thirty years after they first worked together, they’re back together as a team at ServiceNow Inc., the Santa Clara-based enterprise software company where McDermott has been CEO since November 2019. McDermott wants to change that. The 61-year-old chief executive isn’t bashful about sharing his ambitious goals for ServiceNow, both on the financial as well as the diversity and inclusion fronts. He has a target of tripling ServiceNow’s revenues to $16 billion over the next five years, primarily through partnerships with companies like KPMG, IBM, and Microsoft.
For McDermott, that includes bringing on and retaining a highly diverse workforce. He views the twin goals as inexplicably intertwined. “You get the best people with the best talent and you get them on the team and you properly coach, train, and make sure you rehearse them up and down so they can be the best version of themselves and you win,” he says.A native New Yorker, McDermott grew up in a working-class Long Island neighborhood. Winning was part of his family’s culture.
Pavlin remained at Xerox for another 17 years, rising through sales and management positions to become client managing director before joining Accenture plc in a similar capacity. But her focus shifted after the 2020 murder of George Floyd in Minneapolis, a racially-charged, death-by-police incident that prompted nationwide social unrest.
At ServiceNow, Pavlin has been tasked with furthering ServiceNow’s global efforts to strengthen its culture and deepen its employees’ sense of belonging. Pavlin recognizes there is still room for improvement. As of Q2 2020, the share of the company’s underrepresented minorities in the United States — which comprises all racial and ethnic groups, except for Asians, who are second in percentage to white employees — stood at 11.4%.
But the company still values that idea, so much so that instead of having Employee Resource Groups — intra-company collections of people with shared identities — it calls them Employee Belonging Groups. ServiceNow has eight EBGs, with 41% of the company’s employees belonging to one or more of these groups. Employees can participate either as a member or any ally.
Elmer, who is 58, said the group also has members across a wide age span. “There is a very different lived experience depending on what your age is. The world has changed a lot and there are people who weren’t around for all of that,” he notes.
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