As we embark on a new decade, A number of factors have reshaped the business landscape. Globalization, technology, diverse cultures, and the most recent recession are all forcing leaders to review previous organizational practices and adjust their attitudes and abilities to be competitive in today’s marketplace. But it seems leaders are still not getting the message that diversity is essential to that success. The leadership practices needed to keep pace with new demands and challenges was the focus of a two-year, global, multilevel report called Developing the 21st Century Leader, conducted by AchieveGlobal, a consulting organization that assists domestic and international companies with training in leadership, sales, and customer service.
After reviewing approximately 40 practices that range from behavioral to cognitive, AchieveGlobal researchers condensed those disciplines into six “zones†or categories of best practices and reveal how leaders rate them in terms of importance. Of the six zones, diversity ranked last. The report’s methodology consists of a literature review, focus groups, and an online survey completed by 971 business and government leaders and employees in the United States, Mexico, India, China, Singapore, Germany, and the United Kingdom.
Although the study does not discuss the reason for the low ranking of diversity, Craig Perrin, director of solution development for AchieveGlobal, suggests that the idea of diversity varies for different cultures, so some may not see it as crucial. There is still trouble with understanding the definition of diversity, he explains; there is still the belief that diversity is only about acknowledging differences instead of fully leveraging those differences. Perrin also says that because ethnocentrism is still evident, some leaders find it difficult to manage a diverse range of perspectives. “The main point I’m making is diversity, while important, is less important in a poor economy.â€
Experts argue, however, that in a down economy, diversity should remain a business priority.
Janet Reid, Ph.D., founding and managing partner of Global Lead L.L.C., suggests that people may rate diversity lower because they lack the ability to become more culturally aware with a business metric, a methodology Reid devised that measures the ability to be successful in any region of the world by incorporating three components: a business IQ, emotional IQ, and cultural IQ. Diversity, says Reid, “is a business advantage that is still underutilized, but the economy is forcing a shift in looking at external diversity, or diversity that is customer based.†They have not, however, focused on how to leverage the diverse talent within their organization as a competitive strategy. Besides customer acquisition, diversity can be utilized for increasing market share and beating out competitors, adds Reid.
Even with continual analysis and commentary about the necessity of diversity for an organization’s success, there is still fear within organizations about opening up the diversity conversation. Reid attributes part
of this fear to the fact that baby boomers are currently leading organizations and some of them still associate diversity with affirmative action and discrimination lawsuits. But this mindset is likely to change as that generation retires or moves on. “People beneath baby boomers grew up differently; their social structure was a lot more diverse so they generally see diversity and inclusion as how things should be anyway,†she says.As a leader, it is crucial to communicate how leveraging diversity is a skill and a strategy that needs to be utilized for the success of an organization. Educate your employee base about what the skill is and how to acquire it and practice it. While internal –that is, employee base–diversity is a necessity, a leader should also promote external diversity by clearly showing that it can increase the customer base and bottom line. Reid says, “Employees need to market and conduct business with people who are very different from themselves. These skills can be taught and measured internally or by utilizing consulting firms that have market development capabilities.â€
–Brittany Hutson
1 Business:
Under this practice, leaders develop strategies, make and execute plans and decisions, organize the work of others, and guide efforts toward predicted results. Across all four organizational levels (no direct reports, frontline managers, mid-level managers, and business unit managers), business was the highest rated zone in terms of importance.
2 People:
Leaders connect with others on a human level. This means reading a range of emotions in others and responding appropriately, adapting to the leadership needs of different groups, helping others to resolve work—life balance issues, making a daily effort to inspire the trust of customers and colleagues, and communicating well with customers and colleagues at all levels. David A. Thomas, a professor of business administration at the Harvard Graduate School of Business Administration, has researched executive development, cultural diversity in organizations and leadership, and organizational change. He notes that today’s leaders will have to accommodate people’s identities and perspectives in the workplace, such as those who wish to honor their religious practices during the day, or those insisting on a work schedule that allows them to be home more with family. “The old assumptions where you leave all that stuff at the door are being blown away because [people’s identities] are important to them, and they take it with them into the workplace.â€
3 Ingenuity:
In this zone, leaders not only offer and execute practical ideas, but they also help others do the same by creating a climate in which innovation can thrive.
4 Reflection:
Leaders must assess their own motives, beliefs, attitudes, and actions. They ask questions like, “How can I make sure my own blind spots and biases don’t cause me to make poor decisions?†Though executives rate reflection lower compared to the aforementioned practices, the study states leaders who are strong in the reflection zone are better equipped to leverage their strengths and reduce liabilities in other zones. “What usually happens during periods of great economic prosperity is that leaders think, ‘Whoa, we’re making money, so we must know what we’re doing. Therefore there’s no reason to question what we’re doing.’ And because of that lack of reflection, or lack of ability to see the long-term impact of short-term decisions, we’ve gotten ourselves into trouble,†cautions Perrin.
5 Society:
Leaders apply the principles of fairness, respect, and the greater good to balance individual and group welfare.
6 Diversity:
Leaders must value and leverage human differences including gender, ethnicity, age, nationality, beliefs, and work styles. This practice was rated as the least important across all organizational levels. According to the study, organizations with wide global operations identify diversity as their most pressing challenge, specifically, “creating virtual workplace structures†and “succeeding with mergers and acquisitions.â€
This article originally appeared in the May 2010 issue of Black Enterprise magazine.