Big data prove it is possible for a society to be riddled with racism in the complete absence of racists.

The government audit shows racism can be endemic even in the absence of racists


Trevor Phillips in The Financial Times


If Theresa May’s challenge to her own government on race equality does nothing else, it should take some of the terror out of talking about racial difference. Her government’s compendium of data about ethnic minorities’ experience across 130 public service areas, published this week, confronts us with a baffling puzzle: in a society demonstrably more open-minded than a generation ago, why do race and ethnicity remain such powerful pointers to an individual’s place in society?

You do not have to be a specialist in race relations to know that your doctor is more likely to be a Sikh than a Somali. Most of us can see that people from certain backgrounds — South Asians, Chinese — are more likely than others — African Caribbeans, Pakistani Muslims — to wind up as chief financial officers of big companies.

Sir John Parker, in a review that concluded this week, called out the paucity of non-white leaders in Britain’s top companies, confirming what most business leaders know: there are many available candidates but black and brown faces still do not turn up in the boardroom — except perhaps when they come to clean.

White Britons remain cautious about making such observations, for fear of being held personal responsible for racial inequalities. People of colour stay silent because nobody wants to sound like a grievance-monger. The race audit could be the best chance in years to break the silence.

Ministers have anticipated the charge of stirring up minority resentment by releasing a flood of data, some of which show that whites too can be at a disadvantage. White boys, for example, are far less likely to get in to a good university than the proverbial hijab-wearing Bangladeshi-heritage girl. By acknowledging that some differences might turn out to be intractable, Mrs May’s injunction that disparities should either be explained or eliminated could encourage a more open debate.

Some critics suggest that the audit will undermine minorities’ faith in public services. This underestimates the common sense of most people of colour. We do not live to complain about racism. On the contrary, we factor it into our daily lives, shrugging off discourtesies. But forbearance should not be confused with compliance. The data show that people of colour are right to have low expectations of their treatment by the healthcare system, the police or the courts. Their resentment should not be a surprise.

The audit is far from complete. Crucially, it tells us nothing about the UK’s most important economic issue — low productivity. Yet race relations can have a profound impact on the workplace.

A US survey shows that more than a third of white-collar employees think discussing race is off limits in the office, even though staff of all races think it affects their prospects. Blacks and Latinos believe their ethnicity holds them back; whites fear a word out of place will torpedo their careers. Annual appraisals have become stilted affairs: white bosses worry that too critical an assessment will land them in the dock for bigotry. Poor performance goes unchallenged and mediocrity protected.

The data released this week have all been available before. But together they could revolutionise our understanding of racism. Since the 1999 Macpherson Report into the death of Stephen Lawrence, the official doctrine has been that pretty much everyone everywhere was wrapped up in a racist conspiracy, even if they did not know it.

If that is true, how can we explain the fact that every measure of racial hostility has declined steadily over the past 40 years but there has been no corresponding fall in racial disadvantage? The answer is that most racial disadvantage is not the product of individual attitudes. Even if we were to adopt the widest definition of a racial incident, including online insults, and attribute every one of those acts to a prejudiced white person, it remains statistically demonstrable that the average person of colour will encounter such hostility once in their lifetime — not enough to produce the persistent patterns revealed by the audit.

So if Britons are individually better people what is preventing us becoming a better nation? Part of the answer is inertia: racial patterns we inherited and have not dealt with effectively. An example would be ethnic segregation in cities, baked into the geography because of settlement patterns generations ago.

A new source of racial disparities stems from what may be called techno-racism. Online decision systems use apparently neutral data: names, addresses, place of education. But these data carry racial markers that machines can read as reasons to reject minority applications for jobs, loans or insurance. In the US, companies are rewriting mortgage-lending programmes, having seen fines in excess of $100m for discriminating against African-American borrowers. Big data prove it is possible for a society to be riddled with racism in the complete absence of racists.

Mrs May says that government departments will have “nowhere to hide” in future. Unfortunately, her own privacy legislation will protect ministers from scrutiny. Data protection means that neither public bodies nor private corporations are allowed to keep ethnic data about individuals. A prime ministerial decision to allow companies, particularly recruitment firms, to hold ethnic data could be transformative.

Mrs May’s audit has opened a Pandora’s box. But when the first woman in the legend unleashed evils on humanity, Hope sat gleaming at the bottom. Our modern Pandora, lifting the lid on racism, is betting the facts may be the best way to solve our most toxic social problem. In this, at least, she has to be right.

Abolishing Annual Performance Appraisal

Lillian Cunningham in The Independent

As of September, one of the largest companies in the world will do all of its employees and managers an enormous favor: It will get rid of the annual performance review.

Accenture CEO Pierre Nanterme told The Washington Post that the professional services firm, which employs hundreds of thousands of workers in cities around the globe, has been quietly preparing for this “massive revolution” in its internal operations.

“Imagine, for a company of 330,000 people, changing the performance management process—it’s huge,” Nanterme said. “We’re going to get rid of probably 90 percent of what we did in the past.”

The firm will disband rankings and the once-a-year evaluation process starting in fiscal year 2016, which for Accenture begins this September. It will implement a more fluid system, in which employees receive timely feedback from their managers on an ongoing basis following assignments.

Accenture is joining a small but prominent list of major corporations that have had enough with the forced rankings, the time-consuming paperwork and the frustration engendered among managers and employees alike. Six percent of Fortune 500 companies have gotten rid of rankings, according to management research firm CEB.

These companies say their own research, as well as outside studies, ultimately convinced them that all the time, money and effort spent didn't ultimately accomplish their main goal — to drive better performance among employees.

In March, the consulting and accounting giant Deloitte announced that it was piloting a new program in which, like at Accenture, rankings would disappear and the evaluation process would unfold incrementally throughout the year. Deloitte is also experimenting with using only four simple questions in its reviews, two of which simply require yes or no answers.

Microsoft did away with its rankings nearly two years ago, attracting particular attention since it had long evangelized about the merits of its system that judged employees against each other. Adobe, Gap and Medtronic have also transformed their performance-review process.

“All this terminology of rankings—forcing rankings along some distribution curve or whatever—we’re done with that,” Nanterme said of Accenture's decision. “We’re going to evaluate you in your role, not vis à vis someone else who might work in Washington, who might work in Bangalore. It’s irrelevant. It should be about you.”

Though many major companies still haven’t taken the leap, most are aware that their current systems are flawed. CEB found that 95 percent of managers are dissatisfied with the way their companies conduct performance reviews, and nearly 90 percent of HR leaders say the process doesn’t even yield accurate information.

“Employees that do best in performance management systems tend to be the employees that are the most narcissistic and self-promoting,” said Brian Kropp, the HR practice leader for CEB. “Those aren’t necessarily the employees you need to be the best organization going forward.”

Brain research has shown that even employees who get positive reviews experience negative effects from the process. It often triggers disengagement, and constricts our openness to creativity and growth.

CEB also found that the average manager spends more than 200 hours a year on activities related to performance reviews—things like sitting in training sessions, filling out forms and delivering evaluations to employees. When you add up those hours, plus the cost of the performance-management technology itself, CEB estimates that a company of about 10,000 employees spends roughly $35 million a year to conduct reviews.

“The process is too heavy, too costly for the outcome,” Nanterme said. “And the outcome is not great.”

Interestingly, though, the decision to roll out an updated approach usually has little to do with reining in those numbers. Kropp said companies aren’t likely to save much time or money by transitioning away from their old ratings systems to a new evaluation process. Where they stand to benefit is, instead, the return on those investments. “The smartest companies are asking, how do we get the best value out of the time and money we are spending?” Kropp said.

That’s the question Accenture posed to itself. And its answer was that performance management had to change from trying to measure the value of employees’ contribution after the fact. It needed instead to regularly support and position workers to perform better in the future.

“The art of leadership is not to spend your time measuring, evaluating,” Nanterme said. “It’s all about selecting the person. And if you believe you selected the right person, then you give that person the freedom, the authority, the delegation to innovate and to lead with some very simple measure.”