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Group Dynamics: Darden's Employee Networks

Darden Restaurants' employee networks offer members mentors, while helping the company better understand its minority employees and customers.

By Lisa Bertagnoli, Contributing Editor -- Chain Leader, 9/1/2008

Family day at Darden
Informal focus groups  with children of the Family Network mem-bers helped Darden gain new insights into both food offerings and games and puzzles on children’s menus.
Thirteen years ago, Orlando, Fla.-based Darden Restaurants Inc. launched its first employee network. It was set up to provide support for headquarters employees with families, and was therefore dubbed the Family Network.

That network now has 89 employees. And Darden, owner of Red Lobster, Olive Garden, Seasons 52, Bahama Breeze, LongHorn Steakhouse and The Capital Grille, has since formed four additional employee networks. The Women's Network has 303 members; the Asian-American Network, 55; the African-American Network, 98; and the Hispanic Network, 68 members.

While there's always been a social component to the networks, they exist for business reasons. Executives say the networks allow Darden to understand the intricacies of different minority populations, thus allowing the company's restaurants to better serve those customers. They also help executives identify and nurture promising employees.

The networks underscore the company's belief in the importance of diversity to business success, says Dan Lyons, senior vice president of human resources. “Understanding the differences and diverse needs of our guests is fundamental to what we do,” he says.

Beyond Fun and Games

For that reason, Darden is trying to involve the networks even more in the company's business goals. Two years ago, Darden required each network to write a three-year business plan, describing how the network would help the company meet its growth goals.

“We want to make sure we meet the needs of the network, but link the needs of the network to growth goals,” Lyons says. He adds that Darden's financial team assisted with writing the plans, the goals of which are reviewed regularly.

The business plans have included events that both entertain and educate. The Family Network, for example, hosted a Take Your Child to Work Day last year. The day gave Darden executives some important insight into the needs of children from different age groups, Lyons says. Via informal focus groups, the company gained new insights into children's menus, not just food choices but the games and activities offered on the menus.

The African-American Network has held a celebration of Black History Month, set up mentoring partnerships with African-American employees and key Darden executives, and helped the company's recruiters identify candidate sources such as the National Black MBA Association.

Cognizant of the time employees spend on network activities, Darden is launching a program to compensate each network's leaders. “We will allocate more hours for paid time invested in the network,” Lyons says, though he won't give more details. “We think it's a signal to employees about meeting growth goals and talent management objectives.”

Help from the Top

Darden executives say that network members benefit from access to top-level executives, who serve as advisers. For example, Kim Lopdrup, president of Red Lobster, John Caron, executive vice president of marketing for Olive Garden, and Jill Golder, senior vice president of finance for the company's specialty restaurant group, are involved with the Women's Network. Executive involvement is voluntary, not mandatory, and works on a two-year rotation.

Asian-American celebration at Darden
Events such as the annual Asian-American Heritage Celebration, hosted by the Asian-American Network, give Darden headquarters employees a taste of a different culture.
Kay Francis, who has been active in the African-American Network, was recently promoted to director of distribution, reporting to the vice president of supply management. “She's darned good at what she does,” Lyons says. “But her African-American Network involvement was a meaningful part” of her promotion.

Network members agree with Lyons' assessment. Stephanie Gutierrez, brand marketing manager for Olive Garden and co-chair of Darden's Hispanic Network, joined the network two months after starting as an information analyst at Darden six years ago. Gutierrez spends about three to five hours per week on network-related activities; a current project includes updating the network's pages on Darden's intranet site. The intranet site is open not only to Hispanic Network members, but to all employees interested in Hispanic culture, she says.

Gutierrez has held four different titles at the company and credits her career moves to her involvement with the Hispanic Network. “It's given me a great opportunity from an exposure standpoint,” she says. Salli Setta, executive vice president of marketing at Red Lobster, and Valerie Insignares, executive vice president of operations at Olive Garden, are both executive advisers to the Hispanic Network, she notes.

Gutierrez says that one-on-one time with senior leadership honed her collaboration and consensus-building skills, thus helping her build her career. And in her view, the networks help the company, too. In June, the network brought in an expert who talked to hiring managers about “what it's like to be a Hispanic,” she says. Each October the network hosts a lunch at which Latino food is served and Latino music is played. “It helps how we design our advertising and how we treat our Hispanic guests,” she says. The Hispanic network is also developing contacts at business schools where Darden recruits and with organizations such as the National Society of Hispanic MBAs.

Results Not Guaranteed

Lyons is certain that the networks are also helping Darden reach a more diverse customer base. But the evidence is purely anecdotal. “It's hard to say we have specific measurements in place,” he says.

Clarence Otis speaks to Darden families
Top-level executivesare involved in the networks: Here, Darden Restaurants Chairman and CEO Clarence Otis addresses the offspring of Darden employees on a Family Network-sponsored Bring Your Child To Work Day.
Employee involvement has increased. About 40 percent of Darden's 1,200 headquarters employees are involved in a network, according to the company. Darden officials add that the networks are open to all employees, even if they don't belong to the network's specific demographic group. For that reason, the company has received no negative feedback from unmarried white male employees, the sole demographic group without a designated network.

Thanks to the networks, the staff at headquarters is more diverse, “but it's hard to say cause and effect,” Lyons says. He says the same is true for the networks' effect on guests.

One thing might help: The company is currently developing plans to provide for network involvement at the units. “It's an inherently tricky thing to do because of geographical disbursement,” Lyons says.

Store-level participation is crucial, says Jennifer Schade, principal of JRS Consulting Inc., a human-resources consultancy in Wilmette, Ill. “I am struck by the wealth of information that exists at the employee level that can be overlooked by corporate,” she says. “This concept could be executed at the restaurant level.”

Meanwhile, Schade applauds Darden's efforts at headquarters, especially the network business plans. “In order for these groups to be legitimate,” she says, “they have to deliver on the organization's goals and deliver value.”

Schade predicts that more companies will begin to add employee networks. “It's not only the right thing to do, it's the smart thing to do,” she says. “There is a huge need to engage employees, and this is one way to get employees involved.”

MORE: The Palm Restaurants use a manager-bonus program to improve diversity among employees and customers.

 

Snapshot

Company Darden Restaurants Inc.

Headquarters Orlando, Fla.

Concepts Red Lobster, Olive Garden, LongHorn Steakhouse, The Capital Grille, Bahama Breeze, Seasons 52

Units 1,702

2008 SystemwideSales $6.6 billion (fiscal year ended May 25)

2009 Systemwide Sales $7.5 billion (company estimate)

Expansion Plans 75 to 80 in fiscal 2009

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