Integrating Your DEI Strategy Is Key to Competitive Advantage

During 16 years of corporate diversity and inclusion practices, I have witnessed the “diversity conversation” evolve from valuing diversity, to managing inclusion, to now diversity, equity and inclusion (DEI). Directly connecting DEI to core business operations somewhat lagged the evolution. These three tips can help any company effectively integrate DEI into the business strategy for heightened competitive advantage.

Tip #1: Words matter. Be clear about terms.

Confusion regarding DEI is unproductive and should be avoided. Unnecessary jargon can cloud the issue so be vigilant. Constitute a common language that stakeholders can reasonably understand and internalize. I KISS (keep it simple sister!) these terms frequently. Diversity describes dimensions of identity that differentiates stakeholder groups. It can be visible or invisible. Categorizing a person as diverse is a misnomer. Our individual complexity makes us all diverse. Inclusion leverages diversity to drive results. Equity is an outcome achieved from fair treatment that levels the playing field for diversity to participate according to individual need. These terms are interconnected, distinct and non-interchangeable as demonstrated in the following tips.

Tip #2 Understand the as-is and to-be conditions.

Clarify company motives for pursuing the DEI investment. Focus on market share, brand reputation, employee engagement and retention among other factors. In other words, should the DEI implementation go flawlessly, what will be reduced, increased, eliminated or improved as a result? An honest organizational self-examination is critical and should not be conducted in a vacuum. Stakeholder insights are invaluable to integrating DEI sustainably into the business strategy. Confirm key performance indicators to be monitored and reported regularly. Secure the resources needed to work toward the future state and enroll executive champions before any tactical execution. When organizational conditions shift, reassess and recalibrate the DEI strategy accordingly. Keeping lockstep with changing business needs is paramount to overall effectiveness and increases buy-in from leaders, customers and shareholders. Understandably, some people will find DEI painful, while others will welcome it with open arms. Feedback is data for continuous improvement.

A diverse and engaged workforce
is a wellspring of innovation.

Tip #3: A diverse and engaged workforce is your superpower.

Everyone has a role in advancing DEI, just as everyone has a role in driving company success. Leaders manage company policies that shape workplace culture. Employee productivity is driven by engagement, defined as the emotional attachment to their manager and employer. An imbalance on either side will negatively impact operational performance. Cultivating an inclusive culture built on trust, open communication and mutually adaptive behaviors is a shared responsibility. Embrace the vast experiences, expertise and unique perspectives inherent in a diverse workforce. Consider that minority-owned and women-owned businesses are growing rapidly and in need of financial services. According to the 2020 Annual Business Survey, approximately 18.7% of U.S. businesses were minority-owned, 5.7% veteran-owned, and 20.9% women-owned. Catalyst reported the combined buying power of underrepresented groups—women, Blacks, Latinos, Asians, LGBTQ and millennials—tops $6 trillion dollars. Major motivation for integrating DEI with core business strategy. Assisting underrepresented and underserved stakeholders achieve financial equity through niche solutions is fertile territory. Make inclusive recruiting central to your mission, then assemble diverse teams to address the unmet needs of an increasingly complex marketplace. A diverse and engaged workforce is a wellspring of innovation and a company’s competitive asset. Superpower personified.

Integrating DEI into the business strategy is not easy, but possible and well worth the investment. It must be a top-down edict, not a human resources program. Inclusion drives business. Increased market share is fair game for those companies that care enough to try harder.