Pivot Point: Organizational Strategies Should Drive the Design of High Impact DEI Actions

I was struck by the words of Dr Roger Martin, former Dean of the School of Management at the University of Toronto in a recent speech. He said, A strategy (noun) is an integrative set of choices that positions you on a playing field of your choice in a way that you win. He goes further to say that planning will almost ensure that you lose.

What is the implication for DEI practitioners. First you must understand the “why” of the DEI efforts within your organization and how they must be used as a lens to examine the longer term business objectives and strategies that you are trying to achieve. You have to ground your thoughts in a theory that explains how you will get there. Once you have done this, you must institute the actions, based on the theory, that will lead to these outcomes.

How does a strategy differ from plan?

A strategy is a high-level approach or direction that guides decision-making and resource allocation over the long term. It involves setting goals, assessing the organization’s strengths and weaknesses, and identifying the key challenges and opportunities it faces. A strategy typically outlines the broad actions or initiatives that an organization will take to achieve its goals, and may include considerations such as market positioning, competitive advantage, and risk management. Strategies are typically developed by senior leaders and are designed to provide a framework for decision-making across the organization.

A plan, on the other hand, is a more detailed and specific set of actions that are designed to achieve a particular objective within a defined timeframe. Plans are typically based on the broader strategic framework, but are more focused and concrete, outlining the specific steps that need to be taken in order to achieve a particular goal. Plans may include details such as timelines, budgets, and metrics for measuring progress, and are often developed by teams or individuals responsible for executing specific initiatives.

A carefully constructed, focused and impactful strategy beats a plan every day. Planning is often based on resources and costs and based on the activities put in place not the outcomes. Strategy is not controlled by you but by the key influencers of the outcome you are trying to achieve. It is a statement of what you want to achieve. Don’t let it get overly complicated, provide good logic for the actions and work to make it happen.

In today’s rapidly changing business environment, organizations are under increasing pressure to create transformative change to remain competitive. A key component of this change is Diversity, Equity, Inclusion, and Belonging (DEIB) and efforts that center on social justice. However, simply putting together a disjointed DEI Plan without connecting it to the organization’s broader goals is ineffective. Instead, business strategies should drive DEI actions, and DEI Practitioners must function as strategic partners on the leadership team.

The DEI theory of change suggests that organizations that integrate DEI considerations in all of their business practices will be more successful as society becomes more diverse. However, this requires a leadership-driven approach, with careful consideration of demographic change on how the organization thinks about is products and services, delivery and marketing, as well as employee, supplier and customer relationships. Business leaders must lead the change efforts by role modeling effective commitment and support for the integration of DEI into all business practices.

DEI must be seen as a lens through which key organizational areas critical to accomplishing its mission and vision are examined and improved, helping drive transformative change that positions them to win in today’s competitive business environment. This requires a focus on key functional areas that impact the organization’s success, including:

• Organizational culture: A positive and inclusive culture is essential to attract and retain diverse talent. DEI should be a lens through which organizational culture is examined and improved. By creating a culture that values diversity and inclusion, investing in DEI training and education for all employees, and implementing equitable HR policies and practices, the organization can build a workforce that is more engaged, productive, and aligned with its broader goals and values.
• Products and services: Products and services must be developed that are responsive to diverse customer needs and preferences. DEI should be a lens through which new products and services are designed and developed. For an organization focused on delivering products and services to an increasingly diverse set of clients and customers, DEI can help support this goal in a number of ways. First, by creating a more diverse workforce that reflects the diversity of the communities in which the organization operates, the organization can better understand and serve the needs of its clients and customers. This can lead to increased customer satisfaction, loyalty, and revenue growth.
• Supplier relationships: Supplier relationships should reflect DEI principles. Supply chain development and partnerships can also be enhanced through a DEI lens. By prioritizing diversity and inclusion in supplier selection and partnering with organizations that share these values, the organization can create a more inclusive supply chain that reflects its commitment to social responsibility and sustainability.
• Talent management: Talent management practices are inclusive and equitable. DEI should be a lens through which talent management practices are designed and implemented. A more diverse workforce can bring a range of perspectives and experiences to the table, leading to improved innovation, problem-solving, and decision-making. By creating an inclusive workplace culture that values and respects the perspectives of all employees, the organization can foster a sense of belonging and engagement that can lead to higher levels of employee satisfaction, retention, and productivity.
• Community and external relationships: An organization that values DEI may prioritize community and external relationships by partnering with organizations that serve diverse populations and demonstrating a commitment to social responsibility and sustainability. For example, the organization may engage in philanthropic initiatives that support underrepresented groups, sponsor community events that celebrate diversity, or advocate for equitable policies and practices at the local or national level. This can help the organization build stronger relationships with the communities in which it operates, enhancing its reputation and creating a more sustainable and socially responsible organization.
• Leadership engagement: Leaders must demonstrate a commitment to DEI and model inclusive behaviors for the organization. DEI should be a lens through which leaders are evaluated and held accountable for the organization’s success.

How does an organizational strategy (strategic plan) shape transformative DEI action?

An organizational strategy, or strategic plan, can play a crucial role in shaping transformative action for diversity, equity, and inclusion (DEI) efforts within an organization. Here are a few ways in which a strategic plan can set an aligned, business centered approach to support DEI initiatives:

1. Setting clear goals and priorities: A strategic plan can help an organization articulate its goals and priorities which provides assumptions about the role DEI efforts, providing a framework for action and alignment across the organization. This can include goals related to increasing diversity in hiring and promotions, creating more inclusive workplace policies and practices, and addressing any systemic barriers that may be preventing underrepresented groups from thriving within the organization.
2. Allocating resources: Transformative action for DEI initiatives often requires significant investment of resources, both in terms of time and funding. A strategic plan can help ensure that these resources are allocated effectively and efficiently, with a clear understanding of the expected outcomes, the areas of highest impact, a way of sorting through the effort required, and return on investment.
3. Engaging stakeholders: DEI initiatives are most effective when they involve input and feedback from a wide range of stakeholders, including employees, customers, suppliers, regulators and community members. A strategic plan can provide a platform for engaging these stakeholders, soliciting their perspectives and incorporating their feedback into the organization’s DEI efforts. With the growing interest in the connection to ESG, the strategic plan provides the framework and provides guidance to important DEI implications.
4. Tracking progress: Transformative action for DEI is a long-term endeavor, and it’s important to track progress over time in order to ensure that the organization is making meaningful and sustained progress toward its goals. A strategic plan can include metrics and key performance indicators (KPIs) that help track progress, identify areas for improvement, and celebrate successes along the way. With a tighter integration of DEI actions with the strategic plan, the higher the likelihood they will be sustainable.

How might DEI be used as a lens to ensure its embedded effectively in the plan?

1. Conduct a DEI analysis: An analysis of diversity, equity, and inclusion within the organization can help identify areas where progress is needed and inform the development of goals and objectives that are aligned with organizational priorities.
2. Incorporate DEI goals and objectives: The strategic plan should include specific goals and objectives related to DEI, such as increasing the representation of underrepresented groups in leadership positions, reducing disparities in pay and promotions, or creating a more inclusive workplace culture.
3. Integrate DEI into strategies and tactics: DEI considerations should be integrated into the specific strategies and tactics that the organization will use to achieve its goals and objectives. For example, the organization may prioritize building a more diverse talent pipeline through targeted outreach and recruitment efforts, or create an inclusive communication plan that ensures that all employees have access to information and opportunities.
4. Allocate resources for DEI: DEI initiatives may require additional resources in terms of budget, staff time, or training. The strategic plan should include a plan for allocating resources to ensure that DEI priorities are adequately supported.
5. Establish performance metrics for DEI: The strategic plan should include specific metrics for tracking progress on DEI goals and objectives, such as measuring the representation of underrepresented groups in leadership roles, or tracking employee satisfaction with the organization’s DEI efforts.
6. Engage stakeholders in the planning process: The organization should engage a diverse range of stakeholders in the planning process, including employees from underrepresented groups, community partners, and customers or clients. This can help ensure that the strategic plan reflects a broad range of perspectives and is more likely to be effective in achieving DEI goals.

DEI practitioners must develop a theory of change that explains how high impact DEI outcomes help the organization advance its mission and serve its communities and other stakeholders. A theory of change is important because it provides a framework for understanding the causal relationships between DEI actions and desired outcomes and helps ensure that DEI efforts are integrated with the broader organizational strategies and are not disconnected from the organization’s goals and objectives.

Here are some tips and principles for the forward-looking DEI practitioner:

1. Start with the “why”: Develop a theory of change that explains how DEI helps the organization advance its mission and serve its communities and other stakeholders.
2. Link your DEI efforts to all business functions: DEI should be seen as a lens through which all key organizational areas are examined and improved, including products and services, supplier relationships, talent management, and leadership engagement.
3. Focus on outcomes, not just activities: Develop a focused and impactful DEI strategy that is centered on achieving desired outcomes, not just a list of activities.
4. Integrate DEI into all aspects of the organization: Ensure that DEI efforts are integrated into all business functions and decision-making processes.
5. Engage senior leadership: Develop a strong relationship with senior leadership to ensure that they are fully committed to DEI efforts.
6. Foster a culture of inclusion: Develop a training program to ensure that all employees are aware of DEI efforts and how they can contribute.
7. Consider the impact of DEI on all stakeholders: Develop specific plans to ensure that DEI efforts are benefiting all stakeholders.

DEI practitioners must see themselves as change facilitators, not necessarily the only champions. It’s also important to regularly evaluate and adjust DEI efforts to ensure that they are aligned with the organization’s goals and objectives. By integrating DEI into all aspects of the organization, developing a focused and impactful DEI strategy, and engaging senior leadership, DEI practitioners can help drive transformative change and position their organizations to win in today’s competitive business environment.