The murder of George Floyd and the subsequent rise of the Black Lives Matter movement, coupled with the Me-Too movement, have raised awareness and sparked action on issues of diversity, equity and inclusion (DEI) in various sectors and institutions. These movements have challenged the status quo and demanded accountability and justice for marginalized groups who face discrimination, harassment, and violence. As a result, many organizations have launched or strengthened their DEI initiatives to foster a more inclusive and respectful culture, address systemic barriers and biases, and promote equity and representation in their policies and practices. Often, however, these efforts remain performative. As we have experienced during the last few months, the lack of a direct tie to the core business makes them vulnerable to cuts as soon as the pressure is off or the economic environment becomes tougher.
One of the challenges that DEI initiatives face is the difficulty of measuring their impact on organizational performance. While there is ample evidence that DEI can bring benefits such as innovation, creativity, customer satisfaction and employee engagement, these outcomes are often hard to quantify and attribute to specific DEI actions. This may limit the willingness of some organizations to invest in DEI, especially in times of budget constraints or competing priorities. Therefore, DEI practitioners and advocates need to develop clear and consistent metrics and indicators that can demonstrate the value and effectiveness of DEI efforts.
A new study by TechTarget's Enterprise Strategy Group (ESG), sponsored by Amazon Web Services, addresses this issue by trying to quantify the impact of a well-executed DEI strategy. The global survey assessed the DEI commitment of 2,000 business strategists and their organizations through questions focused on the benefits of DEI for their business outcomes and performance. Based on the answers, ESG classified the organizations into four maturity levels: Nascent, Emerging, Evolving, and Leading. These levels reflect the degree of DEI integration and alignment with the business strategy. According to the study, DEI programs can enhance organizations' competitive position, agility, innovation, and brand perception. The study also shows, as you would expect, that the maturity level of DEI programs matters, as organizations with the most mature programs experience the highest returns on their investment.
The core principles ESG highlights as critical to building DEI maturity are:
DEI strategies should be discussed with employees regularly and within the organization's mission. This provides transparency, which builds trust in the organization and its DEI efforts.
DEI strategies should be co-owned by human resources (HR) and other line-of-business leaders. Of course, HR will be instrumental to an organization's DEI success. Still, the maturity model advocates for a collaborative approach that puts DEI at the core of the business and drives accountability for success throughout the organization.
Read the full article on Forbes