The DNA of Diversity

Diversity and inclusion are business strategies — intentional choices that have measurable impacts on an organization’s success in the global marketplace.

The business case for diversity and inclusion is clear to anyone who pays attention. Revolutionary shifts in demographics all over the world have created patterns that directly impact the workforce, workplace and marketplace. The more aligned a company’s diversity strategy is with its overall business objectives, the more it can boost business results.

The bottom-line business case for diversity is that creating a powerful organization-wide diversity culture can increase a company’s market share, productivity and profits. In addition, diversity fuels innovation, resulting in better products and services, and reducing costs associated with employee turnover.

Businesses are investing hundreds of millions of dollars into diversity efforts, and not just to guard against lawsuits. Diversity is often a catalyst to improve community relations, enhance brand and public image and connect with untapped markets. Leveraging global diversity as a core business asset is vital to survive in the new global economy. As companies expand their reach to meet business needs, expand their customer base and reach out to new markets, the realities of global diversity become apparent.

Regardless of an organization’s business, the world is likely the constituency. Leaders must think and act globally, consider best practices and seek opportunities to collaborate, innovate and integrate across nations. The days are gone when top leaders think of diversity and inclusion as solely a legal compliance issue or worse. Most leaders understand that diversity and inclusion are essential to competitive advantage. Yet, it is widely accepted among diversity executives that their jobs and budgets depend upon their ability to demonstrate return on investment. In this formula, the business case for diversity is mainly defined in financial terms. Success or failure is determined by a narrow set of metrics.

Companies need to take a more holistic view. According to an August 2010 IBM Making Change Work survey of 1,500 top executives, most CEOs say they and their organizations execute change poorly. If the purpose is to chase quarterly or short-term profits, the approach will be limited. If long-term sustainability is the goal, successfully embedding diversity and inclusion into an organization’s framework requires longer-term investments such as integrating diversity and inclusion into the overall business strategy, securing leadership buy-in, expanding marketplace segmentation, ensuring that policies and practices enable talent and creating accountability.