diversity performance

Diversity as Business Strategy

By Michael L. Wheeler

D
Chief Executive Officer
OEStrategies Inc.

Diversity is the most im- Business Objectives Diversity Performance Factors Results

portant performance factor of Barriers Tactics/Interventions

the 21st century. As a global • Expand • No representation • Link Diversity to • More effective teams
International of target markets marketplace, • More effective
demographic business fact, it Markets on team—missing innovation, product market expansion
OR critical perspectives development
matters at every business in- • Fewer faux pas
• Improve • ISMs—racism, etc. • Inclusion of Diverse
Perspectives • Improved image
terface—in the marketplace, Productivity • Phobias—
homophobia, etc. • Team building • Improved sales
the talent pool, across global interventions • Avoidance of losses
• Exclusion
operations, and within our communities. It matters in how we • Cultural Conflicts • Recruit diversity • Engaged, motivated,
• Tap into ERGs committed employees
lead people, work as teams, innovate for product development— • Lack of cultural
• Ideas tapped into
competence • Zero tolerance
and ultimately, it influences the profitability and sustainability • DPFs not identified policies • Nice place to work
of our organizations. • Low morale, • Diversity Education/ • Greater innovation
sabotage, low Conflict Management
Define Diversity and Inclusion as Actions: productivity • Include DPFs in
business planning
• Respecting differences, • Communicate
• Valuing uniqueness, success stories
• Maximizing individual and team potential, and
• Synergizing collective talents, experiences, perspectives.1 Create a Strategy:
Taking Diversity beyond a static statistic or a compliance 1. Build: Recruit and build diverse teams throughout the
function to an action-oriented strategic opportunity for inclu- organization in all levels and functions.
sion is the start to Diversity as business strategy. 2. Include: It is one thing to recruit diversity and build di-
verse teams; it is another to welcome, engage, and respect
Know Your Business Goals and DPFs:
differences. It’s practical—ask, listen, act, end exclusion.
Once you have a solid definition, identify the Diversity Per-
3. Lead: Leaders need to model inclusive and respectful
formance Factors™ (DPFs) for each business goal and objec-
behaviors, inspire, and proactively ensure the essential
tive. DPFs are the issues, challenges, opportunities, and dynam-
tactics for leveraging Diversity. It’s cultural competence.
ics that come into play as a result of differences based upon
4. Leverage: Explicitly and actively seek out and include
primary or secondary dimensions2 such as race, gender, sexual
diversity in product development, planning, decision
orientation, disability, and so on.
making, marketing, and more!
Differences can result in misunderstandings, complexity,
and conflict, and are all too often the basis for exclusion and Measure Success:
discrimination—barriers to goal achievement. Conversely, dif- Qualitative and quantitative, implicit and explicit, and
ferences provide new and fresh perspectives; they link us to the process and results metrics need to be put into place.
global marketplace, drive innovation, and help us come up with The current problem, in part, is that we are not typically
better solutions—enablers for goal achievement. considering DPFs in how we measure processes, results, and
When we explicitly identify DPFs relative to goals and ob- business success. Demonstrating the value of Diversity to the
jectives, we can then create proactive interventions and tactics bottom line is important, but that is not enough—we must
that help ensure that Diversity’s strengths are indeed leveraged believe it and feel it and be committed to it.
for business performance enhancement. The following chart Diversity is a fact. What we do or do not do relative to that
shows examples: fact will ultimately determine our success in today’s and tomor-
row’s global economy. PDJ

notes:
1 Adapted from a definition by 3M—a company known for innovation,
success and Diversity.
2 Based upon Loden and Rosner’s Dimensions of Diversity Model.
Michael L. Wheeler is a strategic management consultant, author,
and entrepreneur specializing in workforce diversity and organizational
effectiveness. Visit www.oestrategiesinc.com for more information.

22 Pro f i les i n D i ve rsit y Journal January/February 2010