It has been more than two years since the racial reckoning that rose from the tragic murders of George Floyd, Breonna Taylor and Ahmaud Arbery. The public outcry that spilled into the streets and into corporate boardrooms generated more than $50 billion in pledges to address racial equity in Black, Indigenous and other communities of color according to Creative Investment Research. Recent studies show that despite the bold statements and well-intentioned investments, there continues to be a lack of forward movement in advancing diversity, equity and inclusion (DEI) goals.
There are three key reasons why DEI initiatives fail: failure to explicitly connect DEI objectives to the organization’s mission, vision and values; lack of sustainable support from leadership; and absence of a cohesive strategic approach to integrating DEI into all aspects of the business.
For DEI leaders who have been at the forefront of diversity work, this is not surprising. Professor Pamela Newkirk documented the diversity challenges faced by media, consumer goods and tech companies in her 2019 book “Diversity Inc.: The Failed Promise of a Billion-Dollar Industry.” Regardless of industry, company age or size, DEI efforts within organizations lack strategic follow-through and accountability. They are often reactive and episodic. In many cases, DEI still only becomes a priority during a public relations crisis.
What can be done to reverse the tide of apathy, dysfunction and inaction? Companies need to harness a strategic, long-term approach to DEI solutions that are tied to corporate values and leadership competencies.
Cultivate leadership competencies and reward systems
Let’s begin by breaking down the importance of securing unwavering and sustainable material support from leadership. In my career, I have coached many C-suite leaders to develop and cultivate their DEI intentions. I found that many leaders at that level have no clear vision of how DEI impacts the company’s bottom line. They have no idea about the high cost of regrettable employee turnover or the opportunity cost of innovation due to lack of diversity. This could be easily fixed by developing mechanisms to gather and report on data related to operationalizing DEI at all corners of the business.
Another important issue is the near-absence of personal leadership competencies related to advancing the work. Many leaders lack the human element or personal linkage to the values of diversity, equity and inclusion. While they may be effective leaders within their functional area, they struggle with understanding the social realities that affect people from marginalized groups.
Leadership development and coaching focused on values and identity reconciliation will help fill the gaps between a leader’s values and the organization’s intentions to become more inclusive and equitable. Additionally, leaders must master DEI leadership competencies to meet and sustain the challenges of leading change. The key to initiating and sustaining change is understanding the levers of motivation and action. Another tool at the organization’s disposal is tying executive compensation to DEI goals. In competitive environments, certain leaders may be motivated by the challenge to best their peers.
Operationalize DEI across all business functions
Enhancing leadership competencies needs to be reinforced with organizational development strategies to ensure that DEI is incorporated into how the company conducts business, treats its employees and represents its values in the community. Organizations should consider incorporating DEI into every aspect of their operations, from talent acquisition to company product development. DEI work is not the sole responsibility of one department, nor does it only concern the human resources function.
Be consistent about communicating the value-add of DEI programs and initiatives, and how they impact the organization’s financial performance. DEI metrics and data are critical here, but so are leadership development and coaching. Leaders who have not integrated the values of diversity and inclusion into their own personal values will miss opportunities to link data with performance.
Inclusiveness and ethical practices that focus on integrity are central to promoting DEI values, which have applications across all business functions, including marketing and communications, product design, research and development, and corporate social responsibility, among others.
Organizational values must prioritize diversity, equity and inclusion and manifest in a company culture that reflects belonging and inclusivity. Companies must clearly articulate and communicate how the company will work towards creating a sustained DEI culture and community. Be explicit about specific steps and actions, what needs to be done to achieve positive outcomes.
Focus on outcome-driven improvement
From a tactical perspective, companies need to holistically repair systems that perpetuate pay inequity, which often include inept salary reviews and succession planning, particularly as it relates to moving from being an individual contributor to becoming a people leader.
This is more commonly referred to as the “broken rung,” a term coined by McKinsey and LeanIn to highlight persistent gender inequities in the managerial ranks. It refers to the plethora of challenges faced by women in ascending the proverbial corporate ladder. Gender inequities are exacerbated by racial and ethnic discrimination, spurred by systemic racism in the workplace. Unchecked implicit biases perpetrated by managers are damaging not only pay equity, but career trajectories among Black women and other women of color.
There are also significant issues in the way that mentorship and sponsorship programs are developed and implemented. These approaches typically lack an intentional approach to gender and racial equity, resulting in lack of diverse representation, both among the mentors and the mentees. Clarifying diversity objectives is important to ensure that programs are designed with the end in mind, and that they are executed to bring about the desired changes.
Related: Progress, uncertainty and backlash: The current state of DEI
Organizations who are serious about creating meaningful change toward greater inclusion and equity can benefit from a wide-eyed analysis of how current practices are contributing to systemic inequities. Leadership development, coupled with intentional integration of DEI within every aspect of the business, will set an organization on the path to making sustainable progress.
Remember that DEI is a journey that is best sustained with clear goals about measurable, non-negotiable outcomes. Leaders must be held accountable to DEI goals that are transparent to all employees, clients, community members and others with a vested interest in seeing the success of DEI efforts. Through these efforts we can ensure that DEI initiatives move from lip service to a strategic advantage for every organization.
Yolánda L Chase, WTIA Chief Diversity Officer and Founder, Diversity Way-Maker, LLC.