Creating a Positive Work Culture: Diversity, Inclusion and Teamwork

Strategic Shifts in Diversity, Equity, and Inclusion (DEI)

• Reframing the Business Case for Diversity:

  • The narrative has shifted from a "soft" social issue to a core business imperative driven by data linking diversity to innovation, productivity, and financial performance.
  • Thomson Reuters (Patsy Dorr): Diversity in leadership teams drives the bottom line; the initial conversation with stakeholders was explicitly framed around business outcomes rather than moral obligations.
  • Open for Business Coalition: The argument rests on three pillars: individual motivation (hiding identities reduces productivity), the necessity of diversity for innovation, and global economic competition (even nationalist nations must compete globally).
  • Oppenheimer Funds (James): Early initiatives were designed to avoid "buzzword laundry lists," focusing instead on a strategy tied to four pillars: talent, brand, culture, and client.

• Expansion of Diversity Definitions:

  • Socioeconomic Diversity: Pat Mulligan (Mercer) notes a rising emphasis on class and economics as a missing component of DEI, moving beyond traditional categories like gender, ethnicity, and disability.
  • Credential Devaluation: Organizations are loosening strict definitions of degrees and certifications to access untapped talent pools globally.
  • Diversity of Thought: James emphasizes defining diversity by "thought, style, experience, and approach" to cast a wider net for the best talent, noting that individuals with similar appearances can bring entirely different perspectives.
  • Inclusion as the Driver: Lucy (Brunswick Group) argues that the "attitude of inclusion" determines which specific facets of diversity (e.g., LGBT, socioeconomic) a company addresses next.

• Structural Accountability and Governance:

  • Embedding DEI in Operations: Oppenheimer created diversity committees within every department, led by department heads, to create specific "diversity business plans" that report progress directly to the CEO.
  • Leadership Accountability: A key trend is holding leaders accountable for retention and engagement of diverse groups, not just recruitment; high turnover in diverse teams is now viewed as a leadership failure.
  • Performance Management Integration: Thomson Reuters is mandating that diverse slates be used for all roles and tracking the conversion rate of those slates into hires to ensure "name and shame" is replaced by measurable results.
  • Local vs. Global Strategy: Thomson Reuters maintains a global strategy with a 20% variation allowed per region, country, or business unit to accommodate local contexts.

• Data, Metrics, and Transparency:

  • The Power of Measurement: The U.S. tech sector's rapid progress is attributed to public reporting of diversity indices, including pay equity data, which created industry-wide pressure.
  • Investor Pressure: CalPERS and CalSTRS are requiring diversity analytics reporting starting in 2017; the panel projects 70% of global assets ($60 trillion) will be managed by millennials and women within two decades, shifting investment focus toward social impact.
  • New Metrics: Thomson Reuters launched a global Diversity and Inclusion Index evaluating the top 100 countries across 23 variables to drive consistent global definitions and engagement.
  • Legal Risk vs. Transparency: General Counsels are increasingly supportive of data disclosure; the prevailing view is that the risk of not disclosing (and being exposed later) outweighs the risk of disclosing gaps and having a remediation strategy.

• Challenges and Gaps in Current Outcomes:

  • Stalled Progress: Despite well-intentioned programs (e.g., "Let's Talk About This"), data indicates a "stovepipe" effect where women and other diverse populations are hired at professional levels but drop off at management levels.
  • Gender Equality Timeline: One speaker projects that current trajectories will not achieve gender equality in most corporate lifetimes without radical changes to analytics and processes.
  • Empathy Deficit: James notes a lack of "empathy engineering" in strategies; he advocates for experiences that force leaders to connect personally with diverse demographics (e.g., sitting in a room of 200 women of color) to shift perception.
  • Fear of Conversation: Fear of using incorrect terminology or triggering backlash often blocks necessary discussions; panels suggest providing "permission" and safe spaces to discuss microaggressions and unconscious bias.

• Role of Technology in Bias Reduction:

  • Resume Screening: SaaS platforms are removing names to mitigate bias; Mercer research found women use contributory verbs ("I helped"), while men use conquest verbs ("I conquered").
  • Resume Rewriting: A Boston investment firm increased applications from diverse populations by 40% in six months by using technology to neutralize biased language in resumes.
  • Job Description Friction: Women apply to jobs when they meet 90% of criteria, whereas men apply at 50-60%; the panel recommends adjusting job descriptions to encourage risk-taking from qualified female candidates.
  • AI and Process Design: Technology is viewed as a resource to remove bias from selection processes, though human managers must be educated on how to interpret the data.

• Emerging Frontiers and Cultural Integration:

  • Mergers and Acquisitions (M&A): Cultural fluency must be assessed before transactions; failure to integrate diverse talent post-acquisition creates "Western meets Eastern" culture shock.
  • Cultural Fluency Tools: Companies are utilizing tools like "Culture Wizard" to educate leaders on regional differences, moving beyond slogans to tangible understanding of relational and leadership styles.
  • Religious Beliefs vs. Business Reality: While companies like Hobby Lobby hold religious convictions, the consensus is that homogenous teams (e.g., all-white, all-male) cannot innovate or serve diverse customer bases effectively, citing Apple's mission-driven approach as a counter-example.

• Political and Global Context:

  • Post-2016 Political Climate: The panel identifies a need for "vigilance" regarding DEI gains in the US and UK (post-Brexit), noting that corporate leaders must take a more active role in social value to fill gaps left by government polarization.
  • Collective Voice: Organizations are joining coalitions like "Open for Business" to create a collective voice that influences global arenas where it is politically dangerous to speak alone.
  • External Partnerships: There is a shift toward partnering with non-profits and funds (e.g., women's funds, Morgan Stanley's gender-balanced board investment criteria) to drive systemic change rather than internal siloing.

• Q&A Highlights:

  • Access to Capital: A former SBA official noted that access to capital is the primary barrier for women in innovation; the panel suggested partnering with funds that mandate gender-balanced boards.
  • Small Business Scale: A VC-backed startup questioned how to balance "best school" hiring pressures with cognitive diversity; the advice was to challenge credential bias and source based on skill (e.g., coding ability) rather than pedigree.
  • Litigation Fear: General counsels are now viewed as allies in data disclosure, recognizing that having a remediation strategy mitigates legal risk better than ignorance.