Many executives now understand how diversity, equity, and inclusion (DEI) contribute to business success. They have a much clearer grasp of how DEI relates to both strategy and human issues than just a few years ago, according to a 2022 survey of the National Association of Corporate Directors.
Fostering a culture of diversity and inclusion has become essential for many companies. Here are three key questions to help you assess where you stand, along with practical advice for incorporating DEI into your team and organizational culture.
How Do We Define Diversity, Equity, and Inclusion?
Building a harmonious team is a true strength. Research on team dynamics and performance has shown that diverse and inclusive teams make better, more innovative decisions.
“Unlocking the full value of a diverse team in the workplace requires creating and fostering an inclusive culture—one where everyone feels they belong, are treated with dignity, and are encouraged to fully participate as their authentic selves,” explains Julie Coffman, Bain & Company’s first Chief Diversity Officer, in The Fabric of Belonging: How to Weave an Inclusive Culture.
Don’t think this is just happening in the United States—it’s a global movement. For example, Japan is gaining momentum in reforming corporate governance, with a specific focus on improving diversity across gender, nationality, educational background, and leadership style. This is crucial for growth and for delivering the best value to customers. However, what works in Japan may look different from what’s effective in other markets such as the United States or Latin America. The principles of inclusion and valuing diversity are universally relevant but must be adapted to the context where each company operates.
Another example, this time from a different market, is Switzerland—a small country in the heart of Europe. There, the focus is strongly on promoting national and gender diversity. To achieve this, it’s imperative to leverage the full potential of different cultural backgrounds and languages. This is particularly important in an environment where leadership teams often consist of people from a variety of nationalities.
Although each market has its differences, there are also commonalities. Here are three specific actions that can help any company looking to move forward on these issues, no matter where it operates:
1- Set a Comprehensive DEI Ambition
Effective DEI strategies must address both internal and external aspects of an organization. This includes fostering an equitable talent journey, promoting an inclusive culture, ensuring fair pay and benefits, and engaging actively with the market and the community. Setting clear goals and measurable metrics to track progress across all aspects of your ambition is essential. Recently, Bain published its first DEI report, outlining its goals for employees, business, and community.
Here are some examples of DEI strategies:
2- Listen to All Your Stakeholders—With a Focus on Amplifying Marginalized Voices
Research has shown that listening to employees—for example, through engagement surveys—is critical. Julie shares that at Bain, sentiment data is analyzed with demographic and intersectional filters applied, and the results are communicated to leaders across the organization.
It’s also important to pay attention to feedback from external stakeholders. When making efforts to support marginalized groups, it’s essential to involve them in the design process. This applies to any initiative for driving change, whether it’s redesigning an employee onboarding process or shaping a new marketing strategy.
3- DEI Is a Journey, Not a Destination
Diversity, equity, and inclusion represent a unique transformation process—highly personal, subjective, and challenging to define in terms of an “end state.” To advance DEI, it’s often necessary to start slowly: deeply understand the challenges, accurately identify problems, and recognize opportunities with the greatest impact. Achieving meaningful change requires sustained focus, effort, and time.
Conclusion
Promoting diversity, equity, and inclusion is fundamental for organizations to reach their full potential and deliver the best value to customers. Inclusive cultures that foster belonging and encourage full participation lead to smarter decision-making and more innovative solutions.
While each market may have its own unique challenges, there are common actions companies can take to move forward—like those highlighted above.
For organizations to thrive in today’s world, they must create a more inclusive and equitable environment where everyone feels valued and included.