Over the last few years, more small and medium-sized businesses have initiated work focusing on Diversity, Equity, and Inclusion (DEI) which they hope will create great workplaces and drive organizational success. Each has learned that there is no universal blueprint for implementing these strategies. Every organization must navigate its unique journey, carefully assessing risks and rewards that align with its culture, risk tolerance, and leadership support.
Moreover, measuring success in DEI efforts requires thoughtful evaluation of specific outcomes that align with organizational goals. This article delves into the guiding principles that underpin effective DEI strategies, highlighting the importance of tailored implementation practices and ongoing assessment. By focusing on what truly matters to them, organizations can navigate the challenges of DEI work, ensuring that their efforts lead to positive, lasting change.
Guiding Principles
Organizations should determine why they are initiating and sustaining DEI strategies. These reasons can change over time, and multiple reasons often guide organizations. The practices in each may look similar but are done for different reasons. The most common philosophies are:
- Compliance – avoiding lawsuits and meeting regulatory requirements.
- Market Share – leveraging DEI to drive business growth, innovation, and competitiveness.
- Internal Culture – strengthening decision-making, problem-solving, employee engagement, and retention.
- Moral & Social Responsibility – aligning an organization's practices with its values and mission.
- Systemic Change – ensuring that organizational practices and impact positively address social issues.
Desired Outcome
Businesses and non-profits should be clear about how they measure success. Organizations don’t measure the impact of everything they do but should have specific results they can track to ensure DEI resources are effectively allocated. Below are a few concepts that are often used to establish goals:
- Eliminating/reducing discrimination lawsuits. Unlawful discrimination comes in many forms and is costly to organizations.
- Expanding the size of the applicant pool. Organizations measure where the best applicants come from and how to tap into greater resources.
- Increasing creativity and innovation. Continuous improvement is a cornerstone of many organizations and is essential for growth.
- Ensuring employees are not inappropriately advantaged or disadvantaged. Leadership modifies practices to make sure all employees can reach their full potential.
- Strengthening employee engagement and sense of belonging. People do their best work in environments where they feel welcomed and supported.
- Enhancing the ability to understand and respond to diverse customer needs. This applies to the service industry as well as to manufactured goods.
Implementation
Every organization will determine the best way to implement its DEI strategies. There is no one-size-fits-all solution. In fact, adopting a solution that is successful in one organization can fail miserably in another. Common implementation practices consist of:
- Ensure all levels of leadership are involved. A common mistake is not engaging with “middle management” until problems/dissatisfaction are identified.
- Engage all voices. This includes people from historically marginalized groups within the organization as well as dissenting perspectives.
- Practice ongoing communication. Like other strategies that rely on people’s participation (physical safety, cybersecurity, loss prevention, etc.), it is important to provide updates and changes that occur.
- Rely on internal champions. Most organizations have employees who are passionate about DEI. It is important to benefit from their energy and ideas while ensuring they understand the parameters of the organization’s strategy.
- Celebrate success and stay open to feedback. Organizations should experience accomplishments related to their DEI strategy but need to seek ongoing feedback to ensure alignment with their desired outcomes and guiding principles.
Organizations that find their DEI work to be a net positive have worked to set up their strategies for success. All business strategies will face bumps and pressure, which is also true of DEI. Organizations that do this work well do not try to do everything – they choose to focus on what is most important to them and create serious plans to meet their goals.