"Leaving Money on the Table"
Leaving Money on the Table
When organizations consider bringing in Diversity & Inclusion (D&I) specialists, they sometimes do this for benevolent and/or social justice reasons. Benevolence and social justice are great reasons to develop and implement robust D&I framework, and if these reasons are what get you and your organization into doing D&I work, then that’s great!
If you’re still reading, though, you may be wondering if there are any other incentives for building a more robust D&I framework within your organization. The answer to your question is YES. Recent research has found that organizations with weak D&I programs are literally leaving money on the table.
In 2015, McKinsey&Company analyzed the D&I data from over 346 organizations based mostly in the US and UK. Three years later, they found that change has been slow in the organizations they studied. The groups they studied, had failed to capitalize on the benefits of having a strong D&I program. In fact, these organizations “increased average gender representation on their executive teams only 2 percentage points to 14%, and ethnic and cultural diversity by 1 percentage point, to 13%.”
But why is this slow progress leading to organizations leaving money on the table? McKinsey&Company also found in their research that:
The relationship between diversity and business performance persists: “Companies in the top-quartile for ethnic/cultural diversity on their executive teams were 33% more likely to outperform on profitability,” than those with less diversity.
There’s a penalty for opting out: “Overall, companies in the bottom quartile for both gender and ethnic/ cultural diversity were 29% less likely to achieve above-average profitability than were all other companies in our data set.”
If you and your organization have recognized that you’d like increase business performance and profitability by building a more robust D&I program, there are clear actionable steps you can take. My workshops, online training programs, and long-term policy consultation will help your organization create an effective D&I framework that will guide all decisions, practices, and policies around relationships, expectations, rigor, and relevance.
At the end of my work with your organization, you will be better positioned to reap the relational and financial benefits of having a more robust D&I framework in place.
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Justin Campbell is a diversity and inclusion specialist based in Los Angeles, CA. He also works as a junior associate trainer with Allied Path Consulting in San Francisco, CA. His workshops and trainings in both the private and public sector have helped numerous organizations recognize how rich and dynamic their multiracial, inclusive spaces already are. Justin has led these workshops in cities across the country on topics such as the roots of systemic oppression, cultural humility, calling in vs. calling out, and how to have courageous conversations in the workplace. He is also a certified trauma professional who integrates a trauma-informed perspective into each workshop and training.