Diversity of thought and experience is key to innovation - Crain's Chicago Business

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Companies worldwide are creating diversity, equity and inclusion, or DEI, strategies following an awakening to racial injustices and the uncertainties of our current times.

DEI has always been the right thing to do, but many still struggle with the depth and breadth of understanding the acronym and how it helps humanity thrive. Simply stated, representation matters. Diversity of thought and experience is key to innovation, and the most innovative companies are the most successful.

When asked about the return on investment of DEI, I ask in return, "How do you measure a company's character, a human being's purpose and the benefit of belonging?" DEI is not just one tidy initiative with quick returns, and for most companies it's a complicated and long journey. DEI is a deeper investment, and the returns are powerful.

Through decades of research, data clearly shows that companies with diverse executive teams are 33 percent more likely to see better-than-average profits, and at the board level that average jumped to 43 percent, showing a strong correlation between diversity and performance. It's important to note that nationally, only 4 percent of Black and Brown people hold senior executive positions.

Profitability is great, but people are the beating hearts of our companies. Companies investing in DEI have higher employee retention rates; employees are happier and healthier, more engaged and empathetic, and ultimately more productive. Customer attraction, engagement, trust and loyalty grows. People, families and communities thrive. Our country thrives.

Where does a company start its DEI journey?

Leadership leads: Investment in DEI starts at the top. As difficult as it may be, leadership needs to acknowledge that inequities exist and recognize that their company may not have an equal playing field. They also need to reflect deeply on the structures of power and privilege and the realities of unconscious bias. Leaders need to commit to investments of time and resources for a sustainable, responsible and measurable strategy, and personally commit to transformation.

Value of voices: Everyone seems to be taking hurried action on DEI, but one of the most powerful things you can do is slow down and listen. Your employees will help guide you and then support you in creating lasting change. Trust in that process.

Start with a statement: A complete DEI strategy may be overwhelming at first, so start with a statement. Include all your employees' voices in an authentic commitment to build an inclusive workplace. It should guide hiring, benefits, customer service and company culture. Starting here is the first step on the strategic journey.

Help is out there: The work is complex and more than just hiring diversity. It's a holistic and transformational change throughout an employee's journey with your company as well as a deep dive into a company's purpose, products, programs, technologies, vendors and more. DEI experts in their areas are objective and bring vast knowledge and best-practices experience.

DEI is a journey. Author James Baldwin said it best: "A journey is called that because you cannot know what you will discover on the journey, what you will do, what you will find nor what you find will do to you."

I wish us all well on this journey, together.

Colleen Egan is director of people, culture and endless possibilities at Clarity Partners, a management and technology consulting firm in Chicago.

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