PRESIDENT AND CEO, KRAFT FOODS NORTH AMERICA, KRAFT FOODS INC.
BETSY D. HOLDEN

From our 2003 Census

What advice would you give your fellow CEOs in "the Chicago 50" about how you get to the point where you have a multi-cultural organization that includes both genders at leadership levels?

We clearly made the business case for diversity. We are a consumer goods marketing company and we needed to ensure we were reflecting the population that we market to. We wanted to make sure that we were attracting and developing the most talented pool of people. We looked at who was coming into the workforce and it was very clear, if you are not appealing to women and people of color, in addition to white men, you are going to be seriously disadvantaged competitively.

Diversity at Kraft wasn't about just race and gender; it was about different styles, experiences, and skill sets. It was really about maximizing the potential of all employees. There was something in it for everyone. We also do extensive training. In the early years, our training was just about race and gender diversity. Today, our training - called "The Power of Differences" - has broader goals: to maximize the potential of all employees; to maintain a talent pool that is capable of innovative solutions; and to leverage everyone's strengths in that effort. This is the Kraft model: establish the business case, create visible top management support, do the training, set the goals, set up support networks, and develop advancement plans. Diversity is a long-term investment and achieving the objectives is part of each manager's salary and bonus goals.

We also recognized that performance standards must be consistent for everyone. Because of Kraft's strong internal processes, we know we've trained potential leaders properly, we know they have the skills, and we know we've given them the experiences necessary for them to be successful. This game plan has an additional benefit: a strong internal network that enhances everyone's ability to succeed.

Compare Kraft 13 years ago, when you began this initiative, to Kraft today.

At that time, Kraft had very few women in key leadership positions. If I look at our organization today, 45% of our salaried employees are women or people of color. And, 32% of our North American senior leadership team is women or people of color - and a significant number of them hold key line and staff leadership positions. In addition, one-third of the members of our board of directors are women.

What was your personal involvement in this transition at Kraft?

I was one of the leaders of a team that explored issues related to women in our workplace. Our top management believed women were leaving to stay at home; but we showed that, instead, they were going to our competitors or starting their own businesses. We also dispelled the myth that there was a pipeline issue. We found that the real issue was that women got to a certain point and then they were moved into staff roles. Women were not being given the key line jobs that were the traditional route to higher leadership positions.

Kraft did not try to find an "instant" solution by hiring a couple of senior-level women from the outside. Coming into any new organization at a leadership level is difficult. If you don't have an internal support network, your path to success is even more challenging. So if you really want to crack this issue, you have to instill your diversity goals and philosophy throughout the organization and grow people into leaders.

What advice do you give to women who want to become CEOs?

I encourage people to take risks. Go do some of the things that may seem like they're a little bit off the beaten path, but that give you the skills to be successful in the long run. One of my most pivotal jobs was the head of Kraft's Pizza Division, where I had the opportunity to run all parts of the business: sales, operations, and marketing. At the time, the job was considered to be out of the mainstream career path. I looked at it and said, "What a great job," but the people making the decision assumed that I wouldn't want it. If I hadn't gone forward and asked for it, I wouldn't even have been considered for it. That job turned out to be a terrific broadening assignment. It helped me grow and learn, and prepared me for other opportunities.

What do you think it will take to get women to 50% of the leadership of American business?

It will continue to take a dual commitment: business leaders must continue to strengthen their organizations by building diversity into their leadership pipeline; and women must continue to be the architects of their own careers, while actively supporting other women.