Localizing Diversity & Globalizing Returns I

Moving from Why to How

This is the first installment of the LDGR series focused on examining the impacts of DEI on individual business units and how organizations can implement practices to reap the returns.

Recently, economists from the University of Chicago and Stanford University published a study finding that improved access to jobs and opportunities for women and people of color accounted for a significant increase in the economic growth of the United States.

While this study represents one of the first attempts to quantify the broader economic contributions of women and people of color, it is far from the first study to prove the value (read: business case) for diversity, equity, and inclusion (DEI). A plethora of studies over the years have proven the benefits of diversity across industries and settings ranging from K-12 and higher education, government and public institutions, and private industry. Still, we find ourselves in a perpetual state of attempting to explain why water is wet. One of the more frustrating aspects of this work for many practitioners can be simplified to this: Give the majority hundreds of studies over multiple decades just for them to continue to treat you like three-fifths of a person.

Regardless of the body of research available to support the case for companies to focus on DEI, the increasingly global economy, and the impending demographic shifts in the workforce, practitioners still find themselves in the position of having to justify their work. Granted, there has been an upward shift in the number of companies hiring full-time DEI practitioners, particularly in the tech industry. But the scope, influence, and decision-making authority of these positions varies depending on the organization. As I’ve discussed in previous pieces, hiring a practitioner is only one step; companies still have to ask critical questions about how DEI influences product, and there has to be meaningful investment in inclusion.

But what would happen to an organization if it truly understood the business benefits of DEI and actively sought to drive those returns? Put another way: what would happen if an organization stopped asking why should diversity be a business priority and instead focused on how to reap its many benefits? Applying the findings of this latest study, organizations would see exponential returns on their investments.

This series localizes this (and other) studies to individual business units that are often not the focus of this conversation and examines the impact of diversity within them. We’ll take a look at some of the critical questions those within these fields can ask to make the much-needed connections to DEI and division objectives, and offer a set of actions that can be taken to advance those goals. Of course, supporting resources will also be provided to help you get started. We’ll look at these business units and guiding questions:

• Sales & Marketing — Beyond hiring a diverse sales team, what is the impact of customer diversity initiatives and how do we tell the stories of the various customers we serve?
• Engineering, Product & Design — How do we build a product that is accessible to the widest population in our target market and design with difference in mind?
• Success & Support — How do we ensure that we understand the cultural context of the problems our customers want to solve and become better advocates for product changes?
• Human Resources — Recognizing that hiring is only part of what we do, how do we establish an organizational culture that embraces DEI principles both in policy and practice?

At the conclusion of this series, readers should understand two basic truths: 1) Diversity, equity, and inclusion work cannot simply be reduced to composition and demographics (read: hiring), divorced from a focus on organizational culture, and 2) Removing arbitrary barriers to participation and instituting meaningful practices with DEI as the foundation on both the team and division levels leads to overall increases in innovation, productivity, and the bottom line.

As always, take part in the conversation in the comment section or share the articles along with your thoughts.

Ulysses J. Smith is a strategist and consultant. He is founder and CEO of Archetype D&I Consulting. Connect with him on LinkedIn and Twitter. Follow Archetype on LinkedIn for more updates.