Although we are making progress in the diversity demographics for CEO opportunities, it is very slow at the pace of molasses moving down a maple tree in the dead of winter. In 2021 the fortune 500 CEO demographics by race were 1.2% Black Americans (13.4% of the US population), 4% Hispanic Americans (18.5% of the US population), 8% Asian Americans (5.9% of the US population), and for gender 8.2% women are now CEOs (51.1% of the US population) (United States Census Bureau, 2021; Kurt, 2022; Statista, 2021). The disparity in this demographic is not a simple reflection of the population percentages of the US, for if it were, then we would likely see the numbers closer to a standard deviation or two away from the US percentages. Other factors contribute to the issue across people, processes, cultures, and more.
The benefits of diverse leadership at the top of the business ladder impact the organization’s bottom line. A series of McKinsey studies on diversity have found that the more diverse your company is at the executive level, the increase your profit margins 25% above average (Prince et al., 2020). Still, we are slow to realize these compounded benefits when we value fully integrated diversity. Perhaps, the disordering of the word’s diversity, equity, and inclusion led to a horse before the cart implementation. To have a diverse organization, one must first drive inclusivity, making diversity the output. McKinsey outlined five indicators of inclusivity as diverse representation, leadership accountability, equality, openness, and belonging (Prince et al., 2020). With inclusion being a leading element for growing equity and diversity, inclusive leadership is a transparent approach (Northouse, 2021).
What is inclusive leadership?
Inclusion is the extent to which members feel they belong to an organization or group and feel their uniqueness of beliefs, attitudes, ideals, and background are appreciated (Northouse, 2021, p.350). Inclusive leadership is a holistic engagement across the organization that fosters positive interactions at every level and with everyone. Inclusivity thus becomes a shared responsibility, everyone imbuing it as a cultural imperative for the organization (Northouse, 2021, p. 350).
Three goals of Inclusive leadership are (Northouse, 2021):
- Create a shared identity among members to ensure everyone feels belonging.
- Reduce status differences and ensure everyone is treated with equal respect.
- Facilitate everyone’s participation to ensure equal input in making decisions.
Ok, so how do I become an inclusive leader/teammate?
Inclusion is a set of learned and developed behaviors requiring self-reflection and conscious attention. We often see the world from our perspective, shaped by our sense of self and interactions with the world. Since inclusion includes feelings of belonging and value, one must seek to see from the viewpoint of others over their own. Your intentions to treat someone with inclusivity may not be inclusive at all. Making the regular effort to understand opens the aperture of your awareness to begin to see things from other people’s points of view.
To further learn to be more inclusive, one must change their mindset, shift their values, and adopt a new style of interaction with others (Northouse, 2021, p. 350). Perhaps the most challenging but crucial area to develop is unconscious bias recognition in yourself. We all have biases, yet we don’t train ourselves to recognize them, mitigate them, and limit their imposition on our thinking. Looking for the root of inclusive behavior starts with us reflecting on our unconscious and conscious biases and obtaining a teammate to help hold ourselves accountable (Northouse, 2021, p. 350).
A while back, I recall hearing the word “tolerance” concerning inclusion and diversity (at the time DEI), and I couldn’t help but feel off-put by the statement. Semantics matter because they drive sentiments and behaviors. To tolerate is to allow and accept without interference (Merriam-Webster, 2022). The word “understanding” is preferred because understanding requires the effort to engage in comprehension fostering harmony not through similarities but rather through appreciation of differences (Miriam-Webster, 2022). While the leader sets the tone for these behaviors, success for inclusive behaviors must become team-focused and own initiative.
Although inclusive leadership lacks the rigors of extensive scientifically validated research, the emergence and significance of current societal challenges require a more focused study. Another aspect of inclusion is public allyship for diverse personnel. In many cases, cultural and personality differences limit buy-in from all group members during meetings or collaborations; this can also lead to an increase in social dominance. SDO, or social dominance orientation, prefers one’s group over others in a hierarchical sense (PSU WC, 2022, L13).
Our natural primitive cognitions have many afflictions to be effective in today’s complex world. With focused attention and practice, an inclusive leader can create a shared identity among all members, reduce status differences through increased respect, and ensure everyone participates and provides input (Northouse, 2021, p. 350). Inclusive team diversity increases organizations’ creativity, performance, and profits (Prince et al., 2020). Inclusivity is a cornerstone of American values, and it is also our competitive advantage.
References
Kurt, D. (2022 Feb 28). Corporate Leadership by Race. Investopedia. https://www.investopedia.com/corporate-leadership-by-race-5114494.
Epic. (2020). Inclusive leadership makes powerful teams. Epic. https://epicassist.org/inclusive-leadership-makes-powerful-teams/.
Merriam-Webster. (2022). Dictionary. https://www.merriam-webster.com/
Nagy, I. (2018). Inclusive Work Practices – The Next Step. Investigo. https://www.investigo.co.uk/blog/2016/08/inclusive-work-practices-the-next-step?source=google.com
Northouse, P. G. (2021). Leadership (9th Edition). SAGE Publications, Inc. (US). https://bookshelf.vitalsource.com/books/9781071834473.
Pennsylvania State University World Campus (PSU WC). (2022). L13 Leadership and Diversity. PSYCH 485 Leadership and Work. https://psu.instructure.com/courses/2177519/modules/items/33991792.
Prince, S., Dolan, K., Hunt, V., and Dixon-Fyle, S. (2020 May). Diversity Wins: How inclusion matters. McKinsey & Company. https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters.
Statista. (2021 Sep 10). Total population of the United States by gender 2010-2025. Statista Research Department. https://www.statista.com/statistics/737923/us-population-by-gender/.
United States Census Bureau. (2021). QuickFacts – United States. https://www.census.gov/quickfacts/fact/table/US/PST045221