Making of a CEO: What Else Must Be Done?

There’s no denying that diversity in America has come a long way. We see people of color in entertainment, sports and more. We’ve got marriage equality, diversity policies and sexual harassment laws designed to protect everyone, regardless of race, creed, color or sexual orientation.

However, while we’ve certainly made progress, there are still some glaring gaps, and black people in CEO positions is one of those things. Let’s take a closer look at why that is, and what else needs to be done to rectify the problem.

Where Are We Now?

?While it’s true that hiring diversity initiatives have increased the number of non white, non male individuals in companies across the country, it’s also true that there have only ever been 19 black CEOs on the Fortune 500 list. That’s out of a list that exceeds 1,800 individuals.

What this means is that while we’re doing better at inclusion in general, there’s still a glass ceiling keeping black talent and leadership out of the top spots. If our purpose is truly to transform business to be more equitable, that needs to be addressed.

What Caused the Problem?

?Of course, it’s not so long ago that America was still a legally divided and segregated country. In the 1960s, it was unthinkable that black people might be in leadership positions at traditionally white companies. They couldn’t even eat in the same diners or sit on the bus.

The 60 years since have seen many changes, and most, when it comes to culture and diversity, moving in a positive direction, but we’re far from where we need to be.

Some might say that the biggest stumbling block in the early days of inclusion was that there weren’t enough qualified black candidates for top positions. However, that has been addressed, and in fact, studies have shown that black people who do hold top positions at major companies tend to be overqualified for the role and have a higher level of education than their white counterparts.

Another common reason that is often cited is that it takes time to climb the corporate ladder. However, with five or six decades already under our belts as far as equity and diversity are concerned, that’s not that strong an argument in 2022.

Then there’s the issue of succession. Many of the largest companies today were started by white families, some a hundred or more years ago. In many of those companies, leadership positions are often held by direct family members of the founder or original holder, and, while not always the case, which does not guarantee they have the skills or ability.

There are many reasons why equity and true diversity at every level of our organizations remain a problem, and we need to address all of them.

Why Should You Care?

If you’ve read this far, you might be wondering why you should care?

If you’re in a leadership position, and profits look good, and things are running smoothly, why should you care that there’s a lack of diversity in top management seats?

There are several reasons.

Firstly, there’s the fact that publicly traded companies that have visible black leadership tend to do better than their counterparts . So even if you have nothing but the most cold-hearted capitalist reasons, appointing a black CEO makes sense.

Then there’s the fact that black people tend to support black companies. So even if you’re not traded on the stock market, if your prospective customers can see representation and diversity in your company, they’ll be more inclined to choose your products and services.

Finally, there’s the altruistic argument, that it’s our collective responsibility to correct the wrongs of the past, and one of the best ways to do that is to create a culture of diversity and equity. We will never completely solve the problems we inherited from the past unless we focus on people development, and inclusion.

What Can You Do?

?The last thing we need to consider when it comes to the issue of smashing the glass ceiling for Black people in American businesses is what you can do to make it happen.

The simplest thing you might do if you own and operate a business is to focus on diversity in succession planning. Seek out diverse candidates for the role and start developing their skills now. That way, when it’s time to step aside, there’s a pool of qualified, experienced people who aren’t all white.

Next, you can increase your focus on people development among black and other non-white members of your existing staff. Look for talent. Create a culture where it’s rewarded. Invest in training and education for star performers or launch a college fund to send deserving kids who might not otherwise be able to afford it to college.

Diversity and inclusion do not happen by accident, no matter how much we’d like to think it does. It requires you to make this your purpose. To focus at least some of your time in a leadership position looking for ways to actively increase black representation in your company.

What Will You Get?

?In business, whether we like it or not, leadership decisions are often based – at least in part – on what you might get in return.

When it comes to inclusion, diversity and equity, the rewards are stacking up. Companies that have documented, successful diversity programs are chosen more often by customers who care about societal progress.

Diversity in your company also opens up new perspectives, ideas you might not have considered before, and ways to reach a broader market.

Companies that dig in their heels and actively avoid diversity are also very much under the microscope these days. With social media accessibility, there have been several companies called out recently for racist, sexist, misogynistic and other divisive policies, and that can destroy your bottom line.

So, whether you choose inclusion because you want to make a difference in the world, or you’re just trying to avoid the inevitable backlash, it’s always a good idea to build a culture of inclusion, elevate people who were previously unable to rise in any company, and help to make American companies look like the people they serve.?

Dr. Terry Jackson is Executive Advisor, Thought Leader Marshall Goldsmith 100 Coach, Top 10 Global Mentor, and Thinkers50 Top 50 Global Coach Transformation Coach. Dr. Jackson partners with Executives and Organizations to align Strategy, People and Processes to transform and sustain Peak Business Performance.