Denny's Case Study Summary

1. What are the key points to Denny’s turnaround with regard to diversity?

Unfortunately, the class-action lawsuit had to happen to open the eyes of the company to re-evaluate itself. First, the involvement of the Chief Diversity Officer was needed to create a game plan to encompass every corner of the organization. It began with the Board of Directors and executive management and similar programs filtered down to all of the employees. The hiring practices had to be reevaluated and new companies that understood the importance and benefits of diversity were utilized. Denny’s then looked at other aspects of their business like their vendors and realized that this was another area that needed focus and made appropriate changes.

2. What lessons can other companies learn from Denny’s experience?

The lessons that can be learned would begin with the need for Human Resource Managers and their involvement at every level. Companies should begin with a Chief Diversity Officer if they currently do not have one and build a model that reaches all employees. It is too easy for a company to become complacent and lose its focus on Diversity. Denny’s can also be looked at as look what will happen if we don’t as well as

look at how we are doing it now. Another lesson is to set up an audit program to the company accountable that is helping you hire. The biggest lesson would be to ensure that the managers and staff running their stores are properly trained in diversity and how to handle opportunities when they arise.
3. What is the likely impact of diversity on the company’s performance?
Because of the changes that Denny’s has made with recreating their culture, they have seen an increase in employee morale, because employees that were not represented before and newer employees are now in a company that respects them.

Denny’s will benefit from a larger talent pool of applicants and by hiring those individuals; they will grow a stronger employee base. From the larger employee base, Denny’s will find that they can promote from a stronger field of candidates. The company will see higher profit margins from the increase in traffic from the African-American community as well as other minorities. By Denny’s being involved in other diversity programs and groups outside of its own organization, the community will see this and create a loyalty to

Denny’s.
4. What is the likely impact of diversity on other company’s or organization’s performance?
Other companies will see the changes that Denny’s has made, continues to enhance and see the benefits of having a more diverse workforce. They will double check the programs and training they currently have in place in their own company. They will see that their organization can only grow stronger and that diversity is needed today, even more than in the past, to stay competitive in today’s business world. A stronger organization with more ideas will always lead to new sales and a more profitable future. New ideas that were not thought of before will come to light and lead that company into new areas and further expansions. The community in general will see the diversity in a company and will develop a loyalty to that company. Other companies will and can see the success that Denny’s has had and will probably follow suit.