Diversity Executives Becoming Key to Companies’ Success

The role of corporate diversity and inclusion practitioners is changing quickly. Corporate diversity and inclusion executives are under growing pressure as key players in their companies’ strategic business growth, according to an analysis by The Conference Board.

 

A compliance-driven business function when it was first created, the role of diversity and inclusion practitioners is rapidly becoming an important part of overall business strategy. However, a lack of clarity about the new role of diversity and inclusion executives may be limiting the potential value of this business function. Fast-paced technological change, globalization, immigration, an aging workforce, and a demand for high-level skills and education are driving the new trend. 

 

The report is based on detailed discussions from The Conference Board Council on Workforce Diversity, with representatives and contributions from seven other diversity and inclusion councils both inside and outside the U.S. The discussions make it clear that these executives are facing growing demands to meet higher corporate expectations than ever before.

 

“The emphasis has progressed from valuing gender and racial differences, which was largely achieved through awareness training, multi-cultural celebrations and employee groups, to strategic and often global business planning and growth,” says Toni Riccardi, Senior Vice President of Human Resources and Chief Diversity Officer of The Conference Board. “The focus is on how these executives can help their companies capture new markets, build effective global teams, and manage their companies’ brand reputations. Companies are increasingly seeking the expertise of their diversity executives as they enter new markets, build profitable relationships, and develop credibility across different cultures.”

 

A lack of clear definitions regarding both the role and responsibility of diversity and inclusion executives may be causing many firms to under-value these executives. The report pinpoints five key trends behind changing expectations for this corporate position (globalization, demographic shifts, technology, legal environment and the socio-political climate) and provides a set of measurable executive competencies companies can utilize to maximize the impact of this important business function in overall corporate growth strategies.

 

A Competency Model for Diversity and Inclusion Practitioners 

The report provides a competency model (outlined below), which covers seven major areas, including: change management; diversity, inclusion and global perspective; business acumen; strategic external relations; integrity; visionary and strategic leadership; and HR disciplines. The report provides further discussion and analysis within each category.  

 

1. Change Management

Organizational Development; Corporate Communications; Critical Interventions

 

2. Diversity, Inclusion and Global Perspective

Cultural Competence

Negotiation and Facilitation

Continuous Learning

Complex Group Dynamics

Judgment

Subject Matter Expertise

 

3. Business Acumen

External Market Knowledge; Holistic Business Knowledge; Diversity and Inclusion Return on Investment

 

4. Strategic External Relations

Corporate Social Responsibility / Government / Regulatory

Strategic Alliances

Diverse Markets / Supplier Diversity

Brand / Reputation Management

 

5. Integrity

Ethics; Resilience; Influence; Empathy; Communication

 

6. Visionary and Strategic Leadership

Diversity and Inclusion Future State

Pragmatism

Political skills (at HQ and local levels)

 

7. HR Disciplines

Total Rewards / Talent Management / Organizational Development / Work and Life Balance / Training

Compliance

Employee Relations

 

To be effective, these competencies should be integrated into a company’s business metrics, notes the report. Organizations should be asking the question: how can this person use this competency to strengthen the business? Or, what does this person need to achieve to further our organizational goals? Says Riccardi: “The 21^st Century diversity and inclusion practitioner, embracing a more public, strategic role, requires a complex challenging new set of competencies.”