Proactive leadership can reap DEI rewards

Modern society is moving towards giving equal importance to people of all ages, backgrounds, beliefs, genders, experiences and abilities. There is a significant body of evidence that points to organizations that embrace these values in the workplace being positioned to perform better and more profitably than those that do not.

For example, research shows that organizations embracing inclusivity are eight times more likely to achieve better business outcomes, and those with more diverse leadership teams report higher innovation revenue. Greater diversity does more than improve a company’s image. It helps attract and retain the best talent, improve decision-making with balanced views, customer orientation, as well as employee satisfaction and morale.

It is not surprising therefore that DEI is rising fast becoming more prominent on corporate agendas. Even so few organizations are approaching it to improve business performance.

A wide scope of benefits

Proactive executives who understand what DEI can bring to their organizations, from improved company culture and talent retention to new markets access and better bottom-line figures.

Successful business leaders understand that to benefit, DEI must be integrated into how the company does business. It means involving people from all levels of the organization and building on the unique abilities and perspectives of a diverse workforce. Research shows that diverse teams are likely to solve complex problems faster. For companies dependent upon fostering creativity, innovation and making good business decisions, DEI is a proven asset. It should be noted that it is not enough to merely diversify the workforce. Equity and inclusion aspects must be embraced, and a company culture established where DEI is a core component.

Companies led by proactive executives almost certainly al have in place management systems covering quality, safety, information security, environmental protection and other critical issues. When adding DEI such companies benefit from their existing and experience a with a structured approach and existing management system.

Planning and leading the DEI journey

The first step is to allocate responsibility and accountability, putting budget and resource in place to empower those who should drive the journey. A cross-functional team should be tasked with defining what DEI looks like for the organization. This involves canvassing opinions by surveying employees and finding the best and most suitable way to progress.

There will be variations in the way different size organizations approach DEI. For most companies, it would be recommended to explore an approach based on a best-practice standard like ISO 30415 Human resource management – Diversity and inclusion. This is an international standard for guiding integration of diversity and inclusion into any organization.

ISO 30415 is structured around seven principles areas. It provides guidance on how to address inequalities in organizational systems, policies, processes and practices. The requirements help define diversity and inclusion within the company context and structure the implementation of initiatives. Basing a company’s DEI journey on ISO 30415 provides a solid, common platform upon based on which a company can align and build a structured company-wide approach. It can also aid companies in ensuring legal compliance where necessary. Moreover, it replaces guesswork by aiding metrics and measurement of impact.

Demonstrating commitment to continuous progress

ISO 30415 is a guidance standard which means it is non-certifiable. However, verification by an independent third party to assess the organization’s DEI performance against the standard’s requirements is possible. The scored assessment provides for a traceable journey where executives can better understand how the organization is performing. The audit report helps management understand what works well and where there are gaps to be closed. This helps improve and guide the strategic direction and actions required this month and, in the years, ahead. The verification statement issued can be used to demonstrate DEI commitment and performance to external stakeholders. Undergoing annual assessments ensures progress and is necessary to uphold the validity of the verification statement. In short, it enables an organisation to approach DEI with clarity, progress with confidence and communicate its performance.

Diversity, Equity and Inclusion or DEI for short is defined by international management consultants McKinsey & Co as ‘three values that many organizations today strive to embody to help meet the needs of people from all walks of life’. It refers not to customers or clients as such but employees and staff within the organization itself.