Funds and Focus: essential for return on your D, E, I strategy
Are you experiencing what many HR Leaders do, a challenge in attracting authentic Executive Focus and meaningful Funds for your D, E, I strategy?
With the Return on Investment for robust and well executed Diversity, Equity and Inclusion strategies being so compelling,* many HR Leaders are understandably frustrated by the ongoing struggle to achieve both the budget and commitment required to execute the strategy.*
Being able to articulate the significant top and bottom line business and human benefits, can assist ALL leadership levels to understand Diversity, Equity and Inclusion is more than a cultural ‘feel good’. With a raft of double digit returns, it’s worthy of the same treatment as your other business strategies.*
How did we get here and what can we do about it?
Companies may have a raft of different motivations or catalysts prompting a considered approach to Diversity and Inclusion, in my experience and research confirms, few outside of the top team, understand well-executed Diversity and Inclusion Strategies are high value business strategies in their own right.
Even fewer approach these strategies as you would any other high value business strategy, with appropriate accountability mechanisms and change management practices to create commitment and connection across all levels of the organisation.
The Unfortunate History of D&I’s Execution to date
A common approach to achieving interest in and acceptance of Diversity and Inclusion, has been the celebration of the “Diversity Days”, International Women’s Day, Harmony and many more. More recently hiring of under-represented talent has increased, although it’s very much in its infancy in most organisations.
Whilst the stories and life experiences of under-represented people undoubtedly has human value, it has been a contributor to Diversity & Inclusion in the Workplace being type-cast as a ‘soft cultural’ feel good activity, which belies its true potential business value and impact.
Diversity and Inclusion is often viewed as a ‘soft’ cultural exercise, rarely given the resources and attention worthy of a strategic initiative of such high value business impact.
Where did we go Wrong?
As someone involved in D&I since the earliest days here in Australia, (over 15 years ago now) there was little in the way of hard business impact data to present to an Executive Team, and certainly nothing specific to the Australian context.
I was working in the Professional Services Industry when it became evident there was a need to access a more diverse pool of talent to sustain business operations. Later, in the IT Industry, I could see the business risks a highly homogenous sales force represented. And whilst Professional Services embraced the hiring of culturally and gender diverse talent relatively readily, largely because workforce data demonstrated the need, it’s been a much longer journey in Tech.
Had we access then, to the voluminous data we have now, it likely would have changed the nature of those annual strategy and budget setting discussions significantly.
Consequently, on too many occasions, I was asked to create cultural events with cupcakes and croissants. By no means am I suggesting we should cease these cultural recognition events where people connect and share life experiences - they offer a good deal of human value where we increase appreciation and experience empathy*,
however, cupcakes and croissants are not the foundations of high value business strategies - which is what Diversity, Equity & Inclusion strategies fundamentally are.
How do High Impact D, E & I Implementations Actually Work?
Having been intimately involved in how a large multinational creates a ‘virtuous circle’ of business impact from cultural change, I can confirm, 2 elements of business life must be aligned.
Companies, Leaders and Teams need to Align, Agree and Act at both the SYSTEMIC AND INTERPERSONAL Levels.
Systemically, Boards and Executive Teams need to Set the Strategy, Mobilise the Middle and Fire-up the Frontline.
There are a number of systemic mechanisms needing to be put in place to ensure organisation strategies deliver as expected, however, this summary is a useful place to start.
Leaders and Teams also need to know how to Practice Inclusion, Embrace Diversity and Elevate Equity and be able to execute it on a conscious, committed and consistent basis.
Inclusive Behaviours are the key to enabling teams to consciously leverage the many types of inherent and acquired Diversity within.
Inclusion occurs as a result of the every day behaviours which occur - every day - in teams.
Equitable company policies and practices, are also critical foundations for organisations to attract and retain the diverse talent key to achieving industry leading business results.
It’s for all these reasons, a strategy heavily focussed on celebrating “Diversity Days” or hiring under-represented talent alone, don’t deliver industry leading business value.
Where are some of the most Common Strategy Disconnects?
What has become a common dynamic in large organisations, is The Senior Executive Team have plans and measures in place to provide transparency and accountability for Diversity, Equity and Inclusion, however, they aren’t effectively cascaded to middle or frontline leadership or the workforce itself.
Diversity measurements and cultural surveys whilst common, are rarely rewarded with performance related bonuses. Whilst it’s true they can be a double-edged sword when taken to an extreme, a complete absence of those cascaded throughout all levels of leadership, represents a significant risk to any successful strategy or plan.
Success depends on cascading clear expectations and accountability to the frontline.
And by Frontline, I mean the WorkForce, as well as Frontline Leadership.
It’s common to see some of the following barriers to successful achievement of Diversity, Equity & Inclusion in organisations:
An inconsistent understanding of the importance of Inclusive Leadership and how to practice it for everyone equally;
A Lack of understanding that high performance teams are diverse and inclusive teams;
Patchy commitment to equitable workplace practices such as unbiased flexibility and performance related rewards;
An ongoing commitment to hiring and promoting those ‘more like us’;
A lack of Psychological Safety, which is the foundation on which inclusion for everyone equally is built;
Ambiguity about what how to be Inclusive and the importance of consistent commitment and practice every day.
How do we achieve Commitment and Budget from our Executive Team?
Firstly, it’s important to consider which of the many significant impacts of Diversity, Equity and Inclusion support your mission and strategy.
For some companies it’s innovation and customer connection, for others it’s risk and reputation. Still others focus on achieving industry advantage by accessing their unfair share of top talent or enabling the professional performance and personal flourishing of their workforce.
Secondly, benchmark your current state on key quantitative and qualitative metrics associated with your targeted priorities.
It’s important to include both leading and lagging indicators. For example, a leading indicator of innovation is psychological safety, whilst the lagging is % revenue of new products. The answers you uncover, will determine the priorities you set and the practices you focus on.
Thirdly, articulating the gaps in your current strategy and/or culture, enables you to paint your top team a compelling picture of how a high impact business strategy could support your organisation’s market impact and business results.
By leveraging qualitative and quantitative data, validated financial impacts and researched best practices you will be well positioned to have a robust business conversation with your CEO, COO & CFO.
Consequently, you’ll be better equipped to secure the focus AND funds so critical to achieving the ROI, robust and well executed Diversity, Equity and Inclusion strategies deliver.
*DCA; McKinsey; BCG; AHRI; Monash University
