Q&A – Case study for founding a business-focused ERG

Answers to questions around establishing the NxGen ERG at Boehringer Ingelheim Pharmaceuticals, Inc. in 2009

If you are planning to found an ERG or are a new ERG Leaders, you might find the attached Q&A helpful.

In an interview style, here are the answers to the following questions around establishing the NxGen ERG (Next Generation at the Workplace) at Boehringer Ingelheim (BI) in 2009:

  • Where did the idea for NxGen originate?
  • Why was the Next Generation at the Workplace ERG necessary at BI?
  • What makes NxGen innovative? How do you think your approach to creating and growing this new ERG was different from the past?
  • What is the business case for the existence of NxGen? How do you link NxGen to BI business plans/activities?
  • How does the NxGen seek to drive innovation at BI?
  • Are there specific requirements for project size, scope, etc that the NxGen group takes on?
  • How are employees able to allocate time to create and develop NxGen projects?
  • Do the initiatives that arise out of NxGen resonate with other generations in the workplace? within BI?
  • What are the criteria necessary to make an ERG like yours successful? What role do NxGen members, executive management, and the overall company have in its success

Attachment: NxGen Case Study for NALC 2010

(Published also as “Expert Insights” in the Network and Affinity Leadership Handbook, Powerful tools for Employee Resource Groups, p.76-79, Diversity Best Practices, New York, NY; 2010)

How to attract an executive sponsor?

Effective executive sponsorship is a key success factor for ERGs. This posting discusses the benefits of executive sponsorship and how to attract and recruit an executive sponsor.

How to attract an executive sponsor?

All right, I take it you started building you ERG business case, as this is the first step to getting executive support to move on. (See the previous posting.)

You want to make sure the ERG’s goals are not only aligned with the company’s business strategies and are measurable! Having a clear and unambiguous success metrics at hand is the best basis for argumentation, to check your progress and finally document your success. It makes it so much easier to build credibility and trust as well as to communicate success clearly to get support throughout the organization. (Metrics will certainly be a future topic here!)

So look at the business areas, the strategic goals and high-level projects that your CEO communicates. Consider thinking along those lines to flesh out the need for your ERG, to set goals and getting ideas for projects that your ERG could work on in support of the business.

What you aim for is attracting a powerful executive sponsor that serves you and your ERG in several ways:

  • Support and promote the ERG’s activities actively
  • Help you navigating through the deep waters of corporate politics to keep you and your ERG out of trouble
  • Build alliances
  • Point out opportunities  and
  • Provide some basic funding to run the ERG
  • Offer advice when you need it (or when you think you don’t need it but then find out you were blindsided and now are happy you sponsor picked up on it!)

Look at your executive leadership team for a sponsor that has a vested interest in your ERG and its goals. Go out and talk to them, pitch your idea! Be creative how to approach them (this is actually a nice future topic by itself!). – You may be surprised how willing executives listen to compelling business logic that you unfold in front of the.

What are the business needs of the executive sponsor? Build them into your business plan. Consider synergistic ERG projects that will also help your sponsor achieving their goals. You may even ask what you could do for them and make sure to find out what the sponsor’s expectations are.

Be very respectful of their (valuable) time. Make it easy for them to follow you (give an informative summary, for example) and prepare for them what you want them to do (such as drafting an email you want them to send out).

Remember, from the executive sponsor down to each recruit each person wants to know: “What’s in it for me?” – Prepare to deliver!

How to start building a business-focused ERG?

Identifies the key objectives for any business-focused ERG and practical advice how to get started by developing a business case for founding an ERG.

How to start building a business-focused ERG?

Let’s start with what it takes to found a successful ERG on a high level and then drill down to real-life examples and practical advice.

What you cannot go without is a strategy that creates a business need before you drum up people which creates a buzz! You will have to make sure that you never run short of

  • Executive support for your ERG,
  • Recruiting members,
  • Showcasing your achievements and
  • Communicating effectively to meet the above three goals.

My approach was to build a business case to prove the company’s need for having the ERG.  To convince executives, explain to them what is in it for them, i.e. what the benefit is to the company and to them individually by supporting your ERG. Address very basic questions as a first step: Why does the company need this ERG? How will the company benefit from it measurably? What resources do you need to found and sustain the ERG?

Let me know what you think – more to come!

Why do companies need business-focused ERGs?

Changing the organization from within by engaging employees in business-focused employee resource groups (ERGs) – the practical “how-to” guide!

Why do companies need business-focused ERGs?

The answer can be as simple as this: Because it makes good business sense!

But what makes this answer so simple? – Well, because it’s made up of a few simple aspects:

First of all, every company, unless it is classified as a non-profit, is in business for one reason: to make money by providing some sort of product or service to its customers.

Simply put, if a company fails to rack up profits it will go out of business. That’s why focusing on the business benefits, the “bottom line”, the return on investment (ROI) makes not only sense but is key for successful employee resource groups (ERGs). It’s the bottom-line arguments, the financial benefits, that open the doors to executive support, buy-in, and funding.

Second, to take advantage of the diversity and capabilities of the human capital readily available.

Let’s look at companies, its workforce and its markets today: We live and work globally – everyone is connected. Our markets today are just as diverse and multi-faceted as our workforce should be. It takes all we know and who we are as diverse human beings (coming from different cultures and ethnicities, religious beliefs, physical characteristics, sexual orientation, and so on) to understand what our customers need and how we can give it to them.

Therefore, it makes sense not only to diversify the product portfolio to mitigate risk and seize opportunity but also to diversify the workforce for the same reasons. Not tapping into all of your workforce’s diversity and capabilities puts you at a disadvantage to companies who know how to maximize their human capital effectively.

Are you still with me? So, the next question is how to meet this goal.

Stay tuned for practical advice, keeping it simple, and examples taking you through the steps on how to build a business-focused ERG.

– Any questions so far?