Diverse thinking creates a sustainable workforce, Spierings says

Wednesday, 6 September 2017

Fonterra chief executive Theo Spierings says diversity encompasses thought as much as it does gender, age or cultural background.

Fonterra is is taking the lead in diversifying its workplace to grow its business and drive innovation.

The dairy giant has set up a number of new programmes to support inhouse entrepreneurship and keep ahead of the disruption curve.

General manager of Fonterra Ventures Komal Mistry says being a global organisation it was important for Fonterra to reflect its diverse markets.

Velocity Next is a programme that is using cutting edge technology to generate new sources of revenue, while Disrupt encourages its employees around the world to formulate new business models.

The best ideas are incubated and backed by the company to become a fully-fledged start-up.

Fonterra Maori strategy leader Tiaki Hunia says his new role engages Fonterra with its Maori employees throughout all levels of the organisation.

Fonterra Chief executive Theo Spierings said the programmes fostered diverse thinking, which was the key to creating a sustainable and profitable business.

'We don't select people or ideas that are diverse, it comes through automatically because people from around the world are involved,' Spierings said.

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With the company being led by an expat, Spierings said diversity was always front of mind.

Spierings said businesses had to understand the need for diversity before strategically implementing it.

'Diversity is more than gender, it's age, it's cultural background, there's many aspects.'

Teams with more diversity drive more change, he said.

Around 1,400 employees across 16 countries have taken part in Disrupt since it was launched last year. The programme runs over six month and successful teams then have 12 weeks in an accelerator to test and develop their business idea.

Studies have shown embracing an inclusive culture could benefit a business commercially. Companies in the top quartile for diversity, compared with those with the bottom quartile, experience a return on equity up 53 per cent.

General manager of Fonterra Ventures Komal Mistry is leading another programme supporting diverse thinking, bringing together external businesses and entrepreneurs to collaborate with Fonterra for new ways of doing business.

Mistry said being a global organisation it was important for Fonterra to reflect its diverse markets.

'We have Mandarin speaking employees because China is our biggest market and having that just makes us a richer company.

'With an organisation of our size, with 22,000 employees, the best results come from diverse thinking and that includes employees from different demographic backgrounds, cross functional areas.'

Spierings said strengthening Fonterra's ties with Maori was an important focus for the diversity of the company.

'Everything we do starts with an iwi lens. If you don't understand the culture at home how are you going to do it elsewhere,' he said.

This month Fonterra appointed Tiaki Hunia as its Maori strategy leader. Hunia said the new role would engage Fonterra more closely with its Maori employees throughout all levels of the organisation.

'It's an interesting time for Fonterra, they have a big foot print in regional areas and Maori communities. Understanding the company enables better engagement with Maori and that feeds into the wider diversity focus of the organisation.'

In a world of disruption in technology and innovation Fonterra's people and culture head Joanne Fair said engaging with millennials was central to preparing for the future workforce.

'The pace of change is so rapid. We're finding as a organisation there is more space and inclusion for millennials than ever before because the future of working is new for all of us and they are the digital natives,' Fair said.

'Diversity is key to how Fonterra operates. You get that energy in the room you wouldn't get if everyone came from the same background'

Spierings said ultimately the leaders within an organisation must take action to implement an inclusive workplace.