As Oxford searches for the word of the year, mine is Diverse. Why you ask? Well as we start to witness the transition from one President to another, the buzz is about how diverse the Cabinet will be. During this past summer of unrest, companies talked about supporting Black Lives Matter and the need to become more diverse. In addition to ensuring their products and advertisements represent the diversity of the consumers they target, these companies will have to look inward as well since corporate America’s top ranks look nothing like the country they serve. Less than 2% of top executives at the largest companies are black, and it is probably worse in small and midsize businesses. Getting serious about diversity and inclusion is very important for growth, especially to small and midsize companies.
Having greater knowledge and experience of more demographics, leads to more creative thinking and innovative ideas. McKinsey and Company in 2016 found in a study that companies in the top quarter for gender or racial and ethnic diversity were more likely to have financial returns above the national industry medians.
Designing and implementing a process around diversity and inclusion requires time and resources, however leveraging these strategies can promote business growth, especially for small and midsize companies. As you review and analyze your Business Operating System you can start to make meaningful changes to integrate diversity and inclusion into your core values. How you ask?
Talent is the lifeblood of any organization; however, I would recommend you focus on becoming more inclusive before you focus on becoming more diverse. The first task is to build trust by creating a workplace where people feel safe expressing themselves. In other words, working to identify any biases, both implicit and explicit and limiting their impact. Biases create blind spots which are almost impossible to discover without a specific and targeted plan.
Next, you can’t be successful at meeting a different consumer need until you learn how best to serve them. Therefore, I would recommend you attend events in the communities with a diverse audience to reach out and connect. Thus, gaining a better understanding of how those communities address issues relevant to them, such as economic, social or otherwise.
Inclusion efforts don’t stop at your four walls. Organizations should take a look at their formal and informal business partners. Consider working with diverse vendors and suppliers. Make a concerted effort to expand your networking activities to Minority and Veteran owned organizations.
Finally, leaders are the keepers of an organizations culture – their actions and mindset permeate throughout the organization no matter the size. They must undergo a shift in mindset and behavior for the organization as a whole to fully embrace diversity and inclusion. The first step is to learn how the system of -ism’s works in the greater culture. Then explore the impact on themselves and their organization. Asking and seeking the answers to questions like those in the following list is a great start:
1. Do both men and women have equal chances to advance?
2. Did all my employees go to the same schools?
3. Have my employees worked in different type of companies or roles before?
4. Do all my employees have the same work style?
Building a Business Operating System that includes Diversity and Inclusion is good for both business and society. Organizations large and small limit their capacity for innovation and improvement unless all employees are fully engaged, seen and heard, thus unleashing enormous leadership potential.
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