Diversity and Inclusion (D+I) in global organizations, require dedicated resources to cultivating the desired environment including but not limited to; people dedicated to the topic, training programs, recruiting practices and so on. While D+I may very well be an idealistic outcome, in business there is always a finite amount of resources which might define the difference between success and failure. Since resources in business are finite, what factors can cause diversity & inclusion to be factored as among the most core and critical pillars in any organization?
First, consider the argument (Moran, Abramson, Moran, 2014); “a strong business imperative can be made that companies who do not address the needs of their women employees (as well as employees of minority cultures) in terms of recruiting, promotion, and career development will suffer the following long-term consequences:
- Not being viewed as an employer of choice.
- Undervaluing top performers; therefore, not using employees’ full potential.
- Losing a competitive edge.”
In business terms, these are significant risks with accompanying financial ramifications. Whether right, wrong or indifferent, this is a fact and will often if not always compel an organization to take action. If you are not “viewed as the employer of choice” than you are recruiting at a second tier talent level which could impede growth and prosperity. When you “undervalue top performers” you are likely to have a higher rate of turnover than companies who focus on retention resulting in lost credibility in the market and likely, lost business.
Another way to view “losing a competitive edge” that garners the attention of an organization is by saying we are “gaining a competitive edge.” “Losing” can denote a defensive, risk management mentality whereas “gaining” can denote a more opportunistic and entrepreneurial mentality. If a company can gain a competitive advantage in the market place it usually translate into revenue gains along with other intangible benefits. In one example from Managing Across Borders, (Bartlett and Ghoshal, 1989) stated; “The ability to link and leverage knowledge is increasingly the factor that differentiates the winners from the losers,”.
Companies inherently want to win and see competitive advantage as the key differentiator. An example of linking knowledge and increasing diversity of thinking might be something as simple as an investment in technology which allows me to collaborate via video conferencing with colleagues in Asia, Spain and Mexico simultaneously. Bartlett and Ghoshal did however go onto state that; “It was not enough that minority perspectives existed on a management team because these perspectives could be excluded from the decision-making process by an organization’s dominant perspectives, and the rule of the majority.”
Great global leaders will commit the necessary resources and energy to implement programs aimed at enhancing the organizational culture and also view this as a core pillar of strategy. Ken Blanchard, one of the foremost authors on business and leadership once said: “effective leaders help ordinary people achieve extraordinary results” (Ken Blanchard, 2001). Strong leaders learn and develop the insights and competencies required to drive diversity and inclusion into the organizational DNA. Ironically, according to Sheryl Sandberg in her book, Lean In, “of the 195 independent countries in the world, only 17 are led by women and of the Fortune 500 CEOs, only 21 are women.” indicating that the speed at which we realize diversity and inclusion as the norm in global organizations, may be in direct proportion to the percentage of diversity of leadership. Chicken and Egg?
Diversity and Inclusion does not simply nor generally occur organically. It has to be worked on constantly and consciously which points back to my opening statement that organizations who believe diversity and inclusion are essential to their long term success; require dedicated resources to cultivate the desired environment. I’m fortunate to work in a global organization where we actually have a Chief Diversity Officer along with programs such as; D+I Ambassadors, Diversity Recruiting, Employee Groups, Mentoring and even Supplier Diversity and it is our leadership who makes the difference in the culture of our organization and in large part determines D+I success. The differences I have seen in our cultural evolution is not that I simply see more colleagues who “look” different, rather I work with a greater percentage of colleagues who also “think” different.
People whose life experiences and perspectives are different from my own, are vital to solving challenges and capturing opportunities across the globe and I believe that feeling is mutual.
Bartlett, C. A., and S. Ghoshal. Managing Across Borders: The Transnational Solution. Harvard Business School Press, 1989.
Blanchard, K., 2001, Situational Leadership II
Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing cultural differences. London: Routledge.
“Sandberg, S. Lean In: Women, Work, and the Will to Lead. New York: Knopf Publishing Group, 2013.”
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