How diversity and inclusion can cost 18.6 billion dollars?
Silicon Valley is the best example for cultural hotpot. Best part is, they often critique themselves why White men are dominating and people of color is not included in their growth agenda. When you encourage open culture, the organizations are going to be diverse in nature, brings further opportunity to many more multicultural multiethnic ideas serving several communities.
For example, If an entrepreneur like me 40 years old from Indian middle class upbringing who can vision set of features post my 20 years of Corporate and start up down in Microsoft and IBM; the set of features for serving the same problem by an American colleague who is 50 years old with the different ethnic roots and different financial corporate background after being CFO for large groups of 30 years with the Wharton degree will be entirely orthogonal. When we bring both those together the potpourri will bring and different taste and experience. Many a times such experiments of multiple composition are the ones which elevate the whole product.
Recently I had to write an open letter to one of my old mentor in the software as a service(SaaS) space as he suddenly took a U-turn from being a Silicon Valley multicultural person to someone supporting fringe element promoting, unified culture, monotonous religion, language. I am not shy to call there are fascist elements taking the leaning of a person to extreme right which is nullifying all the previous good deeds towards diversity.
Be alt-right, sangh pariwar there are always viewpoints across the world about protecting an unknown turf of religion, region or race with protectionist mind set.
Banking and risk management industry has something called, maker and checker. If a cheque is passed by someone, the approval should be done by some other person after enough checking.
Only when a group is made of enough people with diverse backgrounds the colluding will be avoided. This is an age-old formula concept used by banking industry to prevent large in Frauds.
The Secret Sauce inside all banking industry product and applications, or Other industries high value, highly sensitive use cases will have this.
The Secret key to launch nuclear weapon will not be only with the one single authority. Multiple equivalent powered authority will be made to sign before calling a war launching the weapon.
The world is saner still to some extent peaceful because of the un-documented makers and checkers across the board.
When there are maker-checkers needed for the whole world to function balanced, the corporate and society also needs the same
One single religion, one single language, one single caste/community/race approach is going to lead monotonous approaches. It will lead to a non-innovative, non-risky organization which will not get any disruptive innovation with creative destruction of past status quo.
Being inclusive with respect to gender, age groups, religion, race, ethnic backgrounds will lead to a great diverse institution
- Building diversity and inclusion agenda for organization
- Focus areas of implementation hiring promotion expansion
- Sustainable development goals and action plan
Above three steps with which diversity and inclusion agenda can be kicked off if executives think that there is further room for scope.
Recent survey we have conducted across hundred HR leaders across the globe got us many interesting insights
The Art of silencing
Usually management or executives with not so good intentions always want to silence somebody when they bring an issue in public discussion across the board internally in the organization. They are being retaliated always when there is no existence of diverse and inclusive culture.
Interestingly 62% organizations believe they are above normal with respect to diversity index affirmed that the art of silencing is less. Example: when a new millennial is bringing a wild suggestion to change status quo, is it being accepted with open mind.
79% of human resources leaders are believing that the employee engagement is excellent than culture index is above normal.
Ideas, ideas and ideas, more
When the diversity and inclusion is focused heavily and encouraged, the flurry of Ideas leading to more Innovation and diverse ideas solving different problems of organizations will be brought to table. It was endorsed by 82% of leaders.
If Infosys has listened properly to the finance employee, it could avoid the accounting rounding error and the whistleblower report. It is just 6-billion-dollar error now market berating their ethics
If a Boeing has listened to their employees who evinced concern about 737 Max safety issue before commercial launch in their internal forum discussions, it wouldn’t have got the S&P 10 company to suffer its first loss for 20 years. It is just an 18.6-billion-dollar error
Build right reward programs
Beyond encouraging employees to speakup more internally on only issue needs few fundamental things.
- Assurance of trust to employees
- No retaliation policy
- Lucrative rewards for the risk and efforts, the employee has taken
In our survey to the Global leaders 92% of them have evinced interest on right rewards program beyond reinvigorating their listening system like corporate culture and feedback survey, leadership and manager feedback systems, hotline and whistleblower listening systems, Idea management systems