McKinsey: Diversity matters even more: The case for holistic impact

Diversity matters even more: The case for holistic impact

“These interviews surfaced five strategies to effectively turn words into action:

1. Commit to a systematic, purpose-led approach to benefit all stakeholders. Companies should frame and pursue their DEI aspirations—internally and publicly—as core to their mission and embedded into their strategic goals. Having diverse perspectives and backgrounds may be uniquely helpful, as suggested by the relationship between ethnic and gender diversity and companies’ inclusive-growth performance.
2. Embed your strategy in company-wide business initiatives while tailoring to local context. While DEI strategy is typically shaped at the top, giving local teams license to tailor to local contexts is key to building ownership and local impact. Agilely launching test and learn cycles for DEI initiatives in specific localities before rolling them out corporate-wide can also support larger DEI goals. In crafting a “global-local” approach to establishing their DEI strategy and values, leaders should build open lines of communication to develop a deep understanding of their workforce, community, and customers. This ensures DEI moves from abstract ideals to concrete actions.¹⁰
3. Prioritize belonging and inclusive practices to unlock performance. Diverse representation will have the most impact within a culture that fosters inclusion and belonging—which also facilitates retaining diverse talent, innovation, and customer centricity. This support should include making inclusive leadership the norm through management training and accountability, as well as providing high-impact support to affinity and Employee Resources Groups (ERGs) to boost employee satisfaction.
4. Embolden and activate champions and allies by providing adequate resources and support. DEI efforts of individual leaders, particularly women, are often less high-profile or officially rewarded, including their contributions to inclusive leadership, allyship, and employee well-being. Companies that recognize these efforts and provide a supportive environment can help these leaders thrive. This support could include mentorship and sponsorship, as well as encouraging and celebrating allyship. Leaders could be measured on their contributions to DEI and employee wellness in their performance evaluations.
5. Act on feedback, including dissenting voices. A culture of feedback on DEI strategy from the workforce and wider stakeholders can provide valuable insights, identifying both strengths and opportunities for change. Leaders can use routine company pulse surveys to collect feedback internally, and social listening externally. It is important for dissenting voices to also be heard to pinpoint root causes of any roadblocks and contribute towards optimizing impact of the DEI strategy.”