This article is the second installment in “the leader’s playbook.” In this article, we will explore the next three steps in achieving a robust organizational culture of thriving diversity, equity, inclusion and belonging.
Once leadership is committed and the organization’s DEIB staff are in place, an organization should assess its current environment. To figure out how far an organization has come in DEIB, they should hire DEIB experts to do one-on-one interviews, focus groups and employee perception surveys. They should also watch meetings to notice certain behaviors, look at who is responsible for DEIB efforts across the whole organization and look at the current investments and resource allocations.
Step 2: Assessment and baseline creation
Organizations must also begin tracking DEIB metrics to provide a baseline against which they can measure progress. Incorporating DEIB into an organization’s culture should ultimately be measured through a business’s success in areas such as product growth, revenue increases and involuntary employee turnover, but these are all lagging metrics. To understand if an organization is making the necessary DEIB changes, it is essential to also baseline leading metrics such as pay equity across genders or racial representation in leadership.
Measure leading metrics for DEIB goal progress
Understanding an organization’s leading metrics will take some analysis and decision-making. Begin by tracking the organization’s baseline numbers across multiple DEIB metrics. Consider areas such as attrition, performance, promotion, leadership, the employment pipeline (e.g., recruitment), pay equity and inclusion (e.g., access and sponsorship). You must then analyze these within diversity cohorts such as race, ethnicity, gender, sexual orientation and veteran status. Next, identify those dimensions (the combination of areas and cohorts, such as gender diversity as represented in leadership) where diversity changes are needed. Determine the correct leading metrics to measure progress in addressing the gaps in that dimension. For example, to ultimately improve the DEIB goal of gender diversity in leadership, a possible leading metric to determine progress towards this goal would include the number of women versus men versus nonbinary employees who are invited to attend an organization’s leadership development training. Another leading metric would be to track the gender allocation of leaders who are chosen for new projects.
It is important to note that the recent Supreme Court decision on affirmative action has limited the use of race as a deciding factor in hiring. This could mean that organizations cannot use a key tool they used to get more diverse employees, which will make their DEIB transformations more difficult. Organizations successful in surmounting this possible obstacle have chosen to take a more holistic view of DEIB, from one largely focused on race to a broader focus on the needs and values of employees as whole humans. To accomplish this goal, organizations must consider all aspects of employee identity. This still includes traditional DEIB categories such as race, ethnicity, gender, religion, veteran status and sexual orientation, but may also incorporate accessibility, neurodivergence, gender identity and socio-economic status.
Consistent and transparent reporting
Monthly and quarterly reports from departments should include detailed DEIB information that tracks DEIB metrics and reports on the progress made toward set goals and objectives, the start of new projects and any changes made to current practices. All of this information should inform highly visible quarterly and annual DEIB reports on organizational progress and challenges. This will provide valuable insights for evaluating the long-term efficacy of each DEIB initiative and facilitate necessary adjustments.
Step 3: Strategy and goal setting
It is no secret that developing a comprehensive DEIB strategy and setting relevant goals are critical for an effective transformation. Successful organizations ensure their operational goals align with their mission and values. Integrating DEIB must start with the organization’s goals. Frequently, organizational values include terms such as “accountability,” “excellence” or “collaboration.”Each organization must consider what DEIB means in the context of each of its values. For example, DEIB in accountability may mean that the organization holds itself accountable for including diverse perspectives in all decision-making. DEIB in collaboration may mean that every team includes a diverse group of team members based on that organization’s own definition of what diversity is for them. By incorporating DEIB principles into organizational mission and values, organizations demonstrate a genuine dedication to DEIB and ensure it becomes integral to their identity and strategic direction.
DEIB strategy
The next essential step in setting organizational strategy is embedding DEIB into the organization’s operational goals. These DEIB goals must not exist as something separate or in addition to the organization’s operational growth plan. To make this work, each operational goal should have DEIB policies and practices that help it reach its objectives. This is true whether the goal is to release a new product or guide the organization into a new area. In this way, DEIB goals act as operational goals, not as something apart from them. For example, if an organizational goal includes a new product release, the DEIB goals should ensure the product development cycles incorporate product inclusivity steps into each phase of design.
In another example, if a goal is to achieve five percent growth through new service innovation, the organization should invest in creating inclusive communication channels and decision-making processes. These will cultivate an environment where diverse voices are considered and valued so as to ensure idea innovation can exist. The integration between business goals and DEIB ensures diversity is not a goal in name only but is established as a key to success for the business.
Goal visibility
It is essential to create visibility for DEIB goals and their alignment with the business’s operational goals. Communicating the DEIB aspects of each goal emphasizes leaders’ commitment. The attainment of financial success should be visible in the dollars and cents achieved. However, this necessitates the establishment of accountability, which can be done through the visibility or transparency of DEIB efforts for all employees, boards and shareholders. Set up initial DEIB metrics and track their progress along with the organization’s operational goals. Share this information with all stakeholders regularly through consistent and regular communications.
Step 4: Implementation and integration
Integrating DEIB into an organization’s culture will look different depending on the organization’s approach to the earlier steps in this playbook. Implementing a DEIB strategy is not a one-size-fits-all solution and will depend on organizational maturity and readiness. This section examines some common components and the likely moves an organization will need to take in its DEIB implementation.
Change readiness
The first potential stumbling block in implementing any new strategy is an aversion to change, and DEIB is no different. Even organizations that are passionate about DEIB can struggle to incorporate substantive changes into their everyday organizational culture. Individuals or groups within an organization, including those who share an interest in the change, can stymie change in any form. This is a natural challenge of the change process, and one of the biggest mistakes an organization can make is assuming that their employees will “just get used to it.” This can be devastating to the success of the DEIB transformation and the anticipated business successes resulting from the DEIB implementation.
There are several common causes of resistance to change. Some stakeholders may feel defensive and reluctant, especially if they were not engaged in the original decision-making. Other employees may see the changes as a simple performative band-aid, while another group may, at the same time, view the changes as radical and distracting.
To address this myriad of reactions, leaders must be prepared with a strong understanding of the reasons for the change and the ability to effectively communicate the expectations for the organization and each employee. To combat the natural resistance to change, the organization must implement a plan of cascading communication, from the board and CEO to every manager and their employees. This communication should ensure that each individual understands how DEIB fits into the organization’s success and, more importantly, how the DEIB transformation will positively impact each employee as an individual.
Supporting employees through the change management curve (a model used to understand the stages of change—shock, anger, acceptance and commitment) is also an opportunity to begin representing how DEIB works in the organizational culture. The change curve is a valuable tool for effectively managing change at the individual or team level. Understanding an individual’s position on the curve is beneficial in determining the appropriate methods and timing for communication, assessing the level of support needed and determining the optimal timing for implementing final modifications.
Providing individuals with the awareness that others share similar emotions and comprehend their experiences is the most effective approach to facilitating a return to peak performance while minimizing distress. For example, organizations can foster inclusive communication and decision-making (both of which are DEIB cultural components) to support the actual DEIB transformation itself. Inclusive communication means engaging employees to provide feedback on the DEIB change process. Employees can become engaged stakeholders by participating in the decision-making process on how DEIB will support their daily work. This requires the organization’s DEIB experts to work closely with managers and their employees to educate all stakeholders on how DEIB can support their work. This process aids managers and employees in understanding how they will achieve their own operational goals and makes them a part of the change process instead of something that is being done to them.
HR policies
Creating policies and guidelines that explicitly address DEIB components across all aspects of the organization’s operations is crucial to the success of the transformation. This should include areas such as recruitment, hiring, promotion, performance development, and succession planning. In order to ensure that leaders are effectively driving outcomes in DEIB, it is imperative to incorporate metric goals into performance evaluations. Additionally, providing leadership training on DEIB subjects and adopting practices that acknowledge and incentivize leaders who actively promote diversity and inclusion are essential. These measures are crucial for establishing accountability mechanisms that hold leaders responsible for their contributions towards DEIB outcomes.
HR policies in support of creating an inclusive culture will also involve creating safe spaces for dialogue and feedback related to departmental or employee relations challenges. This includes practices allowing open and honest interactions about what is happening in the organization or department, such as discussions on organizational issues, experiences between employees, or perceptions of a traumatizing event. Policies that allow for such spaces enable the expression of diverse viewpoints and concerns and promote understanding and empathy among team members.). Regularly reviewing and updating HR policies ensures they reflect evolving best practices and effectively address emerging diversity challenges within the organization.
Implement restorative practices
Any organization embarking on a DEIB transformation should consider how it implements restorative practices. U.S. employers have a legal responsibility to investigate and address employee wrongdoing in their organization. While legal responsibility stops with the necessary punitive measures, harm often stays with employees impacted by the original negative action. To address the long-lasting impacts of a negative experience in the organization and to allow employees to function as members of a valued community, organizations can leverage the comprehensive methodology of restorative practices. Restorative practices are specific techniques used to help build relationships and resolve conflicts and are employed to foster a supportive and inclusive culture by allowing for regular open dialogues.
An organization may need restorative practices even when no clear legal wrongdoing or negative action is visible within the organization. Organizations at the start of a DEIB transformation often wonder why they fail to recruit and retain talent from marginalized communities, not recognizing the intrinsic cultural behaviors that may devalue those individual community members every day. Implementing restorative practice principles can enhance recruitment and retention, especially for the most marginalized employees. Restorative practices promote community building, individual growth and organizational development by focusing on rebuilding relationships and fostering an understanding and acknowledgment of diverse perspectives.
Recruitment
In order to utilize recruitment as a means to promote diversity, organizations should expand their outreach initiatives and publicize employment prospects within a range of diverse communities and networks. Educational institutions that cater to specific student demographics, including historically Black colleges and universities or institutions serving other marginalized populations, are also a source for recruitment.
To do well in DEIB during the hiring process, you should also use restorative approaches that recognize past and present systemic inequalities and work to fix them by giving all applicants and employees the same chances. Further, organizations must take steps to remove bias from the recruitment process. This may include providing recruiter training on allyship or implementing required unconscious bias training to help interviewers understand the influence of their own personal and hidden biases. In addition, blind resume reviews and structured interviews with standardized questions should be implemented to remove other potential biases during the initial screening process. Each of these steps aids in mitigating potential prejudices and discrimination in the recruitment process.
Retention and promotion
Removing bias in recruitment is just the first step to creating a more diverse workforce. Organizations must also ensure new and current employees have a path to career advancement. In the report “How Clear Career Paths Strengthen Retention—and Diversity,” Bain & Company reported that only 35 percent of young adult workers, most of whom were Black or Latinx, said their employer provides information about career advancement and promotion opportunities. Talent management outcomes must be transparent, fair, equitable and accessible to all employees. This report also noted that disclosing skills and creating competency-based career paths is an effective mechanism to establish a transparent culture and remove bias in the promotion process. This influences decisions made by leadership that impact learning and development offerings, performance evaluations and promotion opportunities. For example, leaders should identify and clearly document the skills and competencies required to obtain a specific role and highlight the training and professional development opportunities for employees to upskill or reskill to achieve promotion to these roles.
Education and development
Finally, as we know, L&D is essential to creating the maturity and readiness to succeed in DEIB. Regular DEIB sessions (avoid the one-offs!) with established training metrics to track progress are key to promoting cultural competency and allyship.
Training that emphasizes inclusion and belonging is an important foundation for all employees. Inclusive learning cultures create opportunities to listen while receiving feedback, embrace corrective action and build systems for employee support. This may be augmented through employee resource groups or mentorship programs. These programs may also help bring DEIB topics to the surface that would influence a DEIB strategy and aid the organization in reaching DEIB goals.
In our next article, we will cover the final step in the leader DEIB playbook: Measurement, iteration and feedback.
