The importance of authentic DEI integration

18 September 2024 Consultancy.uk
Gita Singham-Willis, Co-Founder, Cadence Innova

In recent years, many organisations have reassessed their approach to Diversity, Equity, and Inclusion. This shift is partly driven by political narratives, especially in the US, where there’s a trend towards downplaying the need to drive the agenda, reintegrating DEI initiatives back into HR departments, and mis-using the term ‘woke’ with negative connotations. But according to Gita Singham-Willis, this approach risks undermining the very essence of what DEI stands for.

DEI cannot be confined to HR practices alone. DEI has to stand as much more than a set standard of initiatives, serving as a fundamental aspect of organisational culture and a crucial driver of long-term business sustainability.

The impact of an integrated DEI strategy

Approaching DEI with an emphasis on a diversity of thought and experience across all levels of the organisation, from the boardroom and C-Suite right the way through to the level of individual employees, has a litany of positive knock-on effects that I believe are essential for long-term sustainability and innovation.

A DEI strategy that isn’t driven purely by a moral imperative but is embedded and informed by a conscious focus on strategy and innovation allows businesses and organisations to stay ahead, improve market competitiveness and create a more vibrant, engaged, and loyal workforce.

A diversity of opinion and perspective at every level routinely drives greater innovation and leads to more effective solutions that directly benefit the bottom line. Diverse teams bring varied viewpoints and problem-solving approaches; ones that foster real creativity and lead to breakthroughs that homogeneous teams might miss or overlook. Many studies have demonstrated this over the years including work by Gartner and McKinsey.

An integrated DEI strategy has profound effects on organisational culture as well. When diversity is embraced and embedded at a strategic level, employee satisfaction is bolstered. A working environment where all voices are heard, valued and supported fosters a sense of genuine collective engagement that then becomes a driver for continuous improvement. Employees who feel respected and included are more likely to be motivated, productive and loyal, which are some of the fundamental drivers for sustained organisational success.

Centralised vs. outsourced DEI

While it’s true that outsourcing certain DEI activities provides a level of specialised expertise, the core aspects of DEI—culture, leadership and innovation—cannot be outsourced. The culture of an organisation cannot be outsourced; it must be lived and breathed by everyone within the company. Authentic DEI must be driven from the top, with buy-in at every level of the organisation. These are elements that must be intrinsic to an organisation’s identity and require a high degree of internal commitment and alignment.

This top-down approach ensures that DEI is embedded into the company’s mission, vision, and values. Leaders must champion DEI, not only through policy implementation and statements but through their actions and decision-making processes. When leaders genuinely prioritise DEI, it permeates throughout the organisation and influences behaviours and attitudes at all levels.

When DEI is seen as a collective responsibility rather than an outsourced task, it encourages everyone to contribute to a more inclusive and equitable workplace. When this kind of involvement takes place, more innovative solutions and improved employee engagement blossom, which will always translate to the bottom line.

Ultimately though, while outsourcing can support certain DEI activities, the heart of DEI—its integration into culture, leadership, and everyday operations—must be nurtured internally.

Embedding DEI

By making the decision to integrate DEI deeply into the core of a business’ strategic objectives, organisations unlock value that extends above and beyond a set of HR checkboxes:

Talent attraction: Prioritising DEI and ESG initiatives is becoming increasingly important for attracting and retaining top talent - especially amongst younger generations. Those organisations that embed DEI into their core values are seen as more attractive to prospective talent, which in turn enhances their ability to recruit and retain the best and brightest. Loyalty is bolstered and turnover rates drop.

Strategic resilience: Diverse perspectives contribute to a more robust approach to risk management and strategic planning, helping organisations better navigate challenges and capitalise on opportunities. By embedding DEI into their strategic framework, organisations future-proof themselves against demographic shifts and societal changes, which is a crucial element for long-term business sustainability.

Operational efficiency: A recent McKinsey report found that diversity in management resulted in 35% greater financial returns above their industry average. A strategic focus on DEI fosters an environment where creative problem-solving thrives. Diverse teams bring a wide array of experiences and approaches that lead to more efficient and effective workflows, reducing costs and improving productivity overall.

Ethical technology use: As technology and AI continue to evolve, the ethical considerations that govern their use is becoming increasingly and necessarily important. DEI frameworks provide critical guardrails that ensure these technologies are developed and deployed responsibly, mitigating the risks associated with bias and the all too commonplace inequity that see in tech.

I recognise that true DEI is a continuous journey that requires dedication, authenticity, and leadership from within. I believe that embedding DEI into the core of business strategy is not just beneficial but essential. It helps organisations stay innovative, stay competitive, attract top talent, and navigate the ethical complexities of modern technology. DEI, when authentically led and culturally integrated, drives business success and sustainability.

Ultimately, DEI, when authentically led and culturally integrated, drives not only business success but also long-term sustainability. I believe that it builds truly resilient organisations that are adaptable, forward-thinking and ethically grounded. By committing to DEI as a core strategic imperative, businesses create an impact that extends beyond the workplace, committing to and enabling a more inclusive and equitable society.

Gita Singham-Willis is the founding partner of public sector transformation consultancy Cadence Innova, and is the former chair of the Management Consultancies Association DEI Group.