Global leadership: Does diversity matter?

Do diversity and inclusion matter to global business leaders? Yes and no. Diversity in and of itself does not matter to most business leaders. Attracting, retaining and engaging the best talent does matter. In order to win the “best talent” race, progressive businesses have learned to do more than just celebrate differences. They have learned to leverage diversity in order to achieve their business goals.

The conversation around global diversity is not a new one; in fact, it’s been going on for well over 15 years. What is different is the level of awareness and appreciation that top organisations have obtained regarding inclusion and global diversity today versus what it was more than a decade ago. This knowledge is based in part upon the realities that the recent global recession has forced into the conversation.

The advent of technology – and the ubiquitous influence of the internet on our ability to acquire information and transact business in seconds for that which used to take days or weeks – has further elevated the conversation around global diversity. People today have at their disposal some of the most sophisticated processing systems and in-depth information-gathering tools available. They can learn about an organisation, its culture and goals, and its viewpoint on the community and environmental issues more easily and quickly than ever before. Instead of fighting this new reality, top leaders are finding ways to harness its power to the advantage of their organisation.

Being able to engage leaders and employees globally with one unified message of inclusion and diversity is difficult, if not nearly impossible; and perhaps that’s as it should be. However, it is possible to engage inclusion and diversity from the basis of each organisation’s core values and make connections between conversations regarding business growth and talent needs.

One size does not fit all

Being western-centric in a global business world does not work. Western-based leaders have realised that imposing goals and measures on their country locations is not only ineffective, it is sometimes disastrous. The same holds true when Asian-based companies try to impose their values on western workers.

Additionally, doing so defies the fundamental principle of diversity and inclusion – value and utilise differences. Each region and country has unique challenges. The way American organisations deal with an issue – like disability, for instance – will vary from the way it will be dealt with in India or France in terms of fostering an inclusive culture that optimises everyone’s potential.

IBM considers it vital for its people to understand what it means to operate in an international environment. The company encourages its employees to become global citizens by volunteering in other countries, learning their cultures and helping those local governments develop technology solutions free of cost.

This does two things for IBM: it gives their people firsthand knowledge of what it means to be a culturally competent global citizen and allows them to understand more about each culture’s nuances and how business gets done there. Second, it prompts IBM to bring innovative solutions to countries all over the world in a meaningful way.

Diversity and customer attraction

Today, organisations large and small can compete with each other across the globe; technology and the speed of information transfer makes it possible to do so. Every day, customers everywhere make decisions about which company to buy product from or which team to work with based on who they feel has their best interest in mind.

When all other things are equal, consumers choose companies that they feel can (a) offer products and services that meet their regional needs, and (b) offer cultural astuteness and trusting relationships with their company.

As Deborah Dagit, Vice President and Chief Diversity Officer for Merck, explains: “Our diversity and inclusion strategy – which includes our global constituency group as well as our employee resource groups – provides a communications channel for both our employees and their social networks [that] can let us know about the needs of different populations on a global and regional basis,” she says.

“This allows us to provide critical intelligence to various parts of our business. We have ten global constituency groups that collectively represent our global workforce. They give us a lot of practical experience around leveraging employee information to inform our strategies.”

Talent management

The importance of generational issues in the context of global talent competition cannot be underestimated, as generational issues related to talent management strongly impact on how employees and employers work together around the globe.

Large global organisations are forced to go head-to-head with smaller organisations for talent. The ubiquitous and profound impact of the internet, social networking, and viral marketing makes it possible for these smaller companies to have a larger footprint and market presence. Corporations that understand this aspect of marketing are much more likely to encounter professional talent because they will mass customise their presence and products based on country-specific differences and preferences.

Today’s potential employees – irrespective of generation – are drawn to companies with a performance culture of agility, flexibility, a reputation for being less hierarchical, and a greater appreciation of how work gets done. Practicing and prospective workers alike have virtually tipped the scales by demanding that organisations provide challenging work, community involvement, and flexibility.

Today’s successful organisations are more adept at working across lines of differences, appreciating similarities and responding to their people and customers’ expectations in meaningful ways – and it is this approach that is accelerating results in forward-thinking organisations around the globe.

+       Adapted from Trailblazers: How Top Business Leaders are Accelerating Results through Inclusion and Diversity, by Redia Anderson and Lenora Billings-Harris.