Deloitte Gets Diversity & Inclusion Right

This is an unedited excerpt from Deloitte Review, Issue 22, January 2018. Click the article title to see the full post. It's all insightful, comprehensive and helpful . TWC

The diversity and inclusion revolution: Eight powerful truths

By Juliet Bourke, Bernadette Dillon

2. Diversity without inclusion is not enough 

Deloitte’s research identifies a very basic formula: Diversity + inclusion = better business outcomes. Simply put, diversity without inclusion is worth less than when the two are combined.

This insight is gaining traction, helping to position diversity and inclusion as separate concepts with equal importance. But there’s a problem. The definition of “inclusion” is often left to personal interpretation, and many organizations seem unclear about what it means. Without a shared understanding of inclusion, people are prone to miscommunication, progress cannot be reliably evaluated, leaders can’t be held accountable, and organizations default to counting diversity numbers.

What does inclusion really mean? Deloitte’s research reveals that a holistic definition comprises four related yet discrete elements (figure 3).

First, people feel included when they are treated “equitably and with respect.” Participation without favoritism is the starting point for inclusion, and this requires attention to nondiscrimination and basic courtesy.

The next element relates to “feeling valued and belonging.” Inclusion is experienced when people believe that their unique and authentic self is valued by others, while at the same time have a sense of connectedness or belonging to a group. 

At its highest point, inclusion is expressed as feeling “safe” to speak up without fear of embarrassment or retaliation, and when people feel “empowered” to grow and do one’s best work. Clearly, these elements are critical for diversity of thinking to emerge.21

The truth is that only when organizations are clear about the objective can they turn their attention to the drivers of inclusion, take action, and measure results. 

At its highest point, inclusion is expressed as feeling “confident and inspired.”

3. Inclusive leaders cast a long shadow

Deloitte’s research shows that the behaviors of leaders (be they senior executives or managers) can drive up to 70 percentage points of difference between the proportion of employees who feel highly included and the proportion of those who do not.22 This effect is even stronger for minority group members.23Furthermore, an increase in individuals’ feelings of inclusion translates into an increase in perceived team performance (+17 percent), decision-making quality (+20 percent), and collaboration (+29 percent) (figure 4).24 Pause for a second to let those numbers sink in. This phenomenal difference reflects the power of a leader’s shadow.

What distinguishes highly inclusive leaders from their counterparts? Deloitte’s research identifies six signature traits, all of which are interrelated and mutually reinforcing (figure 5):25

1. Commitment: They are deeply committed to diversity and inclusion because it aligns with their personal values, and they believe in the business case for diversity and inclusion. They articulate their commitment authentically, bravely challenge the status quo, and take personal responsibility for change. 
2. Courage: They are humble about their own capabilities and invite contributions by others.
3. Cognizance of bias: They are conscious of their own blind spots as well as flaws in the system, and work hard to ensure opportunities for others. 
4. Curiosity: They have an open mind-set; they are deeply curious about others, listen without judgment, and seek to understand. 
5. Culturally intelligent: They are attentive to others’ cultures and adapt as required.
6. Collaboration: They empower others and create the conditions, such as team cohesion, for diversity of thinking to flourish. 

Eight powerful truths, seven powerful actions

To borrow from Charles Dickens,52 this is the best of times and the worst of times to be advocating for diversity and inclusion. On the one hand, there is a groundswell of global energy directed toward the creation of workplaces that are more inclusive: 38 percent of leaders now report that the CEO is the primary sponsor of the diversity and inclusion agenda,53 and the formation of global initiatives speaks to the importance of these issues for the broader business community. On the other hand, some communities have become mired in divisive debates about equality (for instance, around issues related to sexuality, race, and religion). 

Workplaces have emerged as a venue in which these disparate pressures have manifested and become much discussed. Caught in the middle, workplace leaders around the world tell us that they feel ill-equipped to navigate these swirling waters. Believing in the business case, but feeling time-poor and uncertain, leaders question what to say (and what not to say) as well as what to do (and what not to do). 

To address these eight powerful truths, we propose seven powerful actions: 

1. Recognize that progress will take a culture reset
2. Create shared purpose and meaning by broadening the narrative to diversity of thinking and inclusion
3. Build inclusive leadership capabilities
4. Take middle managers on the journey
5. Nudge behavior change by rewiring processes and practices
6. Strengthen accountability, recognition, and rewards
7. Pay attention to diverse employees and customers

The truths we have presented challenge current practices, which are heavily weighted toward diversity metrics, events, and training. Our view is that the end goal should be redefined, cultures reset, and behaviors reshaped. Leaders should step up and own that change. Embracing these truths will help deliver the outcomes that exemplars have experienced. It will deliver the promised revolution.

This is an unedited excerpt from Deloitte Review, Issue 22, January 2018. Click the article title to see the full post. It's all insightful, comprehensive and helpful . TWC