How to Maximize the Business Impact of Your Diversity and Inclusion Efforts

Studies show that the drive behind hiring managers' and recruiters' hiring choices is more by personal biases than based on actual job-performance competencies. The net effect is that organizations become intellectually homogeneous and lacking in new ideas needed to compete through innovation.

The overall message is that having an open-door policy does not always let the best people in. Even when diverse talent does get through the door, it takes hard work to get the kind of value out of it that hits the bottom line.

To overcome this challenge, large and midsize companies institute diversity and inclusion departments. And research shows that high-performing companies generate much more measurable outcomes with their diversity and inclusion departments than low-performing companies.

In high-performing companies, these departments consult with executives, managers and HR to attract, engage and leverage the best local and global talent across all dimensions of diversity to produce competitive business results such as penetrating new markets, going deeper into existing markets, and identifying new innovative products and services. In lesser-performing companies, they might focus on just employee branding, image and compliance. Generally, this shortsighted approach does not produce measurable business outcomes.

“Research shows that high-performing companies generate much more measurable outcomes with their diversity and inclusion departments than low-performing companies.”

Furthermore, diversity and inclusion efforts in high-performance companies are more business relevant, strategically integrated, include leadership support across various layers of the enterprise and are guided by business impact metrics. While in some companies, they are part of HR, and in many of these cases, they also have a dotted line to the CEO. In others, they have C-level officer that reports directly to the CEO.

CEOs can help D&I contribute to the company’s overall growth goals by doing the following:

  1. Give your D&I department long-term goals. Rather than producing programs that offset shortcomings in attracting or leveraging diversity in other parts of the company, charge D&I to act as a consultant, advisor and change agent across the enterprise, to leverage and place talented employees where they fit best.
  2.  Challenge business unit leaders to leverage diversity to produce business results. One airline netted approximately $1 million in revenue by leveraging its faith-based employee networks to identify conference travel revenue opportunities. A healthcare organization built a facility for its lesbian, gay, bisexual, and transgender (LGBT) community after recommendations from the company’s LGBT network to the construction teams. Today that clinic is providing services to over 500 transgender patients annually, generating profitable and growing monthly billable services.
  3.  Require all group leaders to track at least one business-relevant diversity and/or inclusion metric. Base it on their sphere of control and show how they are including and leveraging diversity to help achieve specific business goals. For example, sales can show how they leverage organizational diversity to increase revenue among a target demographic; marketing can show how they increase touch-points in new markets or approach current markets in new ways; and global teams can show how they leverage regional differences to identify opportunities or innovations from around the world.

 No matter where your company is today in its D&I journey, these simple steps will quickly provide competitive advantages now and prepare your firm for a diversity-rich future.


MORE LIKE THIS

  • Get the CEO Briefing

    Sign up today to get weekly access to the latest issues affecting CEOs in every industry
  • upcoming events

    Roundtable

    Strategic Planning Workshop

    1:00 - 5:00 pm

    We are in a period of rapid change. Customer needs, technologies, competitors and internal capabilities require companies to review and update their strategies for the new realities. In this workshop, strategy experts Steve Rutan and Denise Harrison will show you a systematic approach to strategic planning to help you refine or redefine your business strategy and approach including:

    • Learn what you need to know to develop an effective strategic plan. Put the right players on the strategic planning team.
    • Develop strategies that leverage your company’s unique position in the marketplace. Lift your management team beyond “business as usual” thought processes and activities.
    • Translate your strategies into action. Achieve your vision for success and generate superior financial results.
    • Identify exactly what you need to do now to position your company for future success.

    To sign up, select this option in your registration form. Additional fee of $695 will be added to your total.

    New York, NY: ​​​Chief Executive's Corporate Citizenship Awards 2017

    Women in Leadership Seminar and Peer Discussion

    2:00 - 5:00 pm

    Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations. 

    Limited space available.

    To sign up, select this option in your registration form. Additional fee of $495 will be added to your total.

    Golf Outing

    10:30 - 5:00 pm
    General’s Retreat at Hermitage Golf Course
    Sponsored by UBS

    General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.

    The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.

    To sign up, select this option in your registration form. Additional fee of $295 will be added to your total.