It’s Time to Highlight the Business Opportunity of DEI Initiatives
Right now, diversity, equity, and inclusion (DEI) initiatives are under growing scrutiny. ? ?
Some companies are pulling back from DEI initiatives amid nervousness around shareholder activism and possible investor or customer pushback.??
The So What
Highlighting the benefits of DEI to an organization’s performance and the wellbeing of employees is the best way to address this negativity, according to Nadjia Yousif , BCG’s Chief Diversity Officer.? ?
“This isn’t about taking sides, but rather making the most of the opportunities to enhance business and societal value. DEI raises standards for everyone by improving innovation, performance, and the workplace experience across the board.”?
DEI initiatives can boost financial performance, according to BCG research based on data from more than 27,000 employees in 16 countries.??
Companies with above-average diversity on their management teams also report innovation revenue 19 percentage points higher than companies with below-average leadership diversity. ??
“Diversity in business is not about hitting quotas, it’s about assembling the best teams with different backgrounds and perspectives. Just think about developing products or services, for example. A broad range of backgrounds and views will fuel innovation and be better attuned to the diversity of your customer base,” Yousif says.?
Now What
Measure the leading indicators of diversity and inclusion, not just the outcomes. Approach DEI as any other business initiative, with KPIs that are measurable and have a set timeframe. Review the success of different initiatives and learn from what works. Keep track of your recruiting statistics, and ensure there is equity in pay, promotion, and retention. It’s also important to measure employee inclusion to ensure underrepresented groups feel included in the workplace—keeping in mind that this leads to higher levels of motivation, ambition, and retention.?
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Communicate what works--and what doesn’t. Be transparent when communicating the impact of DEI initiatives to staff, the board of directors and/or shareholders. Be open about areas where it’s taking longer to make progress, and where there’s been success. Using data to demonstrate the impact of DEI initiatives on company performance is the best way to address criticism.? ?
Lead from the front. Senior leaders should openly and publicly commit to the importance of DEI as well as equipping direct managers with the tools to practice empathetic leadership. This creates psychologically safe team environments where every individual can thrive. Companies also need a clear feedback loop and escalation mechanism to quickly address any instances of discrimination, bias, and harassment that can undermine progress.
Influence your network. Companies can influence a wider ecosystem beyond their own workforce. They can expand supplier diversity, for example, and improve the customer experience (and revenues) through more inclusive product design or marketing materials that avoid stereotypes. By embedding the importance of DEI into all aspects of a company’s operations, organizations can drive broader societal change—often an element of organizational purpose statements.?
“DEI isn’t a nice-to-have for companies. In an increasingly complex and competitive market, business leaders need to access and nurture the best talent, regardless of gender, race, ethnicity, sexual identity, or disability status. But it’s not just a business imperative, there’s also a moral imperative to ensure all human beings have a chance to flourish and thrive,” Yousif says.
For Further Reading: ? ?
BCG Capabilities in Diversity, Equity, and Inclusion ? ?
Business & People Leader | Best Selling Author of 3 Books | Thought Leader Called The ‘People Whisperer’ & The ‘Engagement Guru’ | Building Winning Cultures, Strengthening Leadership, Engaging Employees & Customers |
6 个月Such an important topic. I have concerns that history will just keep repeating itself. We must evaluate what works and what does not. Here are some thoughts and research on the topic: https://www.dhirubhai.net/posts/bradfederman_dei-buildingbridges-inclusion-activity-7191801974156103680-otRH?utm_source=share&utm_medium=member_desktop
Construction Management, QA/QC & Turnover Manager - Owner Projectmanagement STOL BV
7 个月Hi Nadjia Yousif it also involves the acceptation of how people communicate within the group/organization. Some people are totally focussed on the outcome as deadlines need to be met and can act therefore blunt in conversations. Others are more busy with the organization itself and act more ‘political’ in their conversations. These two ways of conversation, i noticed myself, are very difficult to combine and to accept by both sides. You can’t have both as that will not work. Most dangerous is that you end up in a situation which I call ‘socially wanted answers’. These are the answers that are well accepted by everyone in the group/organization without trully hitting the ‘sweet/hot’ spot where it is all about.
Doctoral Candidate | MBA | PCC | PHR | SHRM-CP | Management Consultant | Leadership Effectiveness | Culture Strategist | Fractional HR & Operations | Executive Coach
8 个月Spot on! Embracing diversity not only fosters a more inclusive workplace but also drives tangible business outcomes and enhances employee satisfaction.
Boston Consulting Group Managing Director, Platinion North America, Tech As An Enabler, Emerging Tech, Mentorship, AI At Scale Transformation, Meditator, Problem Solver, CIO Advisory
8 个月For anyone that hasn't read this blog, it is a great read.
Editor in Chief - Content - OCX Cognition
8 个月Giiven the approximately 50:50 gender balance of business school graduates for the last 10 to 20 years, it is surpising that the same balance is not yet found at the top of BCG. You have been making progress. How long will it take to finally get there? https://www.bcg.com/about/people-culture/leadership