How to Ensure the Business Impact of Diversity, Equity and Inclusion

Current State

In the years since 2020, many organizations have taken action to improve inclusive practices, discuss social issues and support employee activism at work and in the communities they serve. But most did it without a strategic plan ora blueprint for a comprehensive approachfor becoming a more diverse, equitable and inclusive organization.

A Brandon Hall Group™ study shows that most organizations either have a DEI-focused strategic plan or are actively working on it.

Complexities

DEI is unique as a business driver because it often involves significant culture change. DEI has suffered from lack of executive-level leadership — critical for culture change — and the absence of a comprehensive approach. Recently, the focus has been on embedding DEI initiatives across the enterprise in a variety of way. For longevity and sustainability, this is a good approach. However, a lack of singular focus by a key leader on DEI efforts could signal a lack of organizational priority.

Consequences

Lack of leadership and strategic planning for DEI created a disconnect between its high level of importance and the impact of DEI on the business. For example, less than one-third of organizations address pay transparency issues by gender and race/ethnicity, have a diverse talent pipeline or a leadership group that reflects the composition of the workforce, according to Brandon Hall Group™ research.

Critical Questions

For DE&I to have significant business impact, there must be an organization-wide mission, vision and strategy. Key questions organizations should address include:

• Do we have an organization-wide strategy around DEI aligned with key business objectives?
• What role should governance play in our ongoing DEI Strategy?
• How do we ensure DEI remains a priority even while the approach and expectations may be shifting?

Brandon Hall Group^™ POV

Regularly Review and Evaluate the DEI Strategy

DEI requires a holistic approach. It starts with developing and communicating strong values, building a robust talent strategy, dedication to continuous learning and a commitment to organization-wide engagement. Evaluate your DEI Strategic Plan against these commonly utilized elements. Percentages indicate organizations that include that item in their own DEI strategy.

Add a DEI Council to Improve Governance, Accountability

Having governance for your DEI strategy is crucial for several reasons:

✦ Accountability: A governance structure ensures that there is accountability for the implementation and outcomes of the DEI strategy.

It assigns responsibility to specific individuals or teams, making it clear who is responsible for driving the strategy forward and measuring its success.

✦ Strategic Alignment: Governance helps align the DEI strategy with the overall business strategy and objectives. It ensures that DEI initiatives are not siloed but are integrated into the organization’s core processes, decision-making and culture.

✦ Resource Allocation: Effective governance ensures that adequate resources (financial, human and technological) are allocated to support the DEI strategy. It helps prioritize initiatives and ensures that they have the necessary support to be successful.

✦ Monitoring and Evaluation: Governance structures often include mechanisms for monitoring progress, measuring outcomes, and evaluating the effectiveness of DEI initiatives.

This data-driven approach allows for continuous improvement and adaptation of the strategy based on lessons learned.

✦ Stakeholder Engagement:

A governance structure can facilitate the engagement of various stakeholders, including employees, leadership, board members, and

external partners. It provides a platform for diverse perspectives to be heard and incorporated into the DEI strategy.

✦ Sustainability: Governance helps ensure the long-term sustainability of the DEI strategy by institutionalizing it within the organization’s processes

and culture. It helps maintain focus and commitment to DEI even in the face

of leadership changes or competing priorities.

✦ Legal Compliance: In some cases, having a robust DEI governance structure can help organizations meet legal requirements related to non- discrimination and equal opportunity. It demonstrates a proactive approach to creating an inclusive workplace.

Overall, having strong governance for your DEI strategy helps ensure that it is effectively implemented, monitored and adapted over time to drive meaningful change in the organization.