Jason R. Thompson - Diversity and Inclusion Matters

Despite the increase in diversity officers and good intentions, many companies are struggling to achieve their DE&I goals and to develop successful programs because they have been asked to do too much in too little time.

I recently received a call from a person who had transitioned from the head of sales to CDO of a global company with more than 40,000 employees. The person had done very well as a sales director, but that experience did not prepare them to be the CDO. This person found me on LinkedIn and contacted me, needing my help. The opportunity to be CDO was a significant promotion, so I don't blame them for wanting the opportunity. Additionally, prior to the promotion, this person had worked to help move the company toward establishing a DE&I program. What they were finding out is that making the argument to company leaders to start a DE&I program and leading a DE&I program on a daily basis were two different things. I get a lot of calls like this from diversity officers who are struggling and don't know what to do on a regular basis. These calls come from high-profile companies, sports organizations, and technology companies.

Without any background or experience, these individuals, who are otherwise very successful, simply did not know where to start. Some of these calls were from individuals who were overwhelmed, and they had not even been on the job a month. They had established the need for diversity, equity, and inclusion but did not know where to go from there. They needed a bridge. I introduced them to the CAPE process:

Collect the demographic data.

Analyze it.

Plan development.

Execute it.

I explain to them that if you start with an overly broad generalization like “We need to recruit diverse candidates,” you will quickly become overwhelmed. Generally, most DE&I departments are not staffed nor designed to oversee every single hire. Overly broad goals will undermine your success.

Everyone has some understanding of DE&I, but that doesn't mean everyone knows how to do the job. Roughly half of S&P 500 companies employ a CDO, and 63% of those had been appointed or promoted to their roles within the past three years, according to a 2019 study by Russell Reynolds Associates. 9

The short length of service is symptomatic of good intent but challenging situations. This is exacerbated by the fact that many of these diversity officers lack previous experience. They may have done very well in their previous non-diversity positions, but that doesn't always translate to successful execution of an impactful DE&I program.

A Fortune magazine article titled “Chief Diversity Officers Are Set Up To Fail” 10 outlined some key reasons why CDOs are struggling to succeed. The article indicated that the majority of the CDOs were new to the role and often were given other responsibilities in addition to their diversity work. Also, they tended to have limited power over decisions that affected diversity in the company. A large majority of these CDOs did not even have access to the kind of data they needed to make a difference. Additionally, the CDOs reported that diversity, equity, and inclusion work ranked last in terms of perceived importance by company leaders. You can see how this would make it impossible to make any measurable gains in DE&I work ( Figure 1.3).

With all these challenges, there is a way forward. CAPE is an easy to use foundational tool based on a straightforward process ( Figure 1.4).

Let's look a little further into each step in the CAPE process:

1 Collecting data is critical to having a successful program. Knowing what data to collect, and when, is critical to knowing if you are going in the right direction. At the end of the day, every chief diversity officer has to show numbers.

2 Analyzing the data is equally important. Once you collect the right data, you will need to analyze it in a meaningful way across the organization in order to make an actionable plan with obtainable and reasonable goals.

3 Plan. Having a plan based on the measurable DE&I data that outlines the challenges and opportunities of your organization will help you effectively manage your time and resources.

4 Execute. After you build a plan on data, it is time to execute on your plan. Figure 1.3 Reasons DE&I Leaders Fail. Figure 1.4 The CAPE Process Overview. Source: Reproduced with permission of CAPE Inclusion Inc.

5 Because you started with collecting data, you will be able to assess your progress, adjust if necessary, and measure your success – ROI.

The CAPE process gives you and your company a previously unseen way forward. Chapters 2through 6will further explain each step in the CAPE process.

Good DE&I programs have tension because inclusive and equitable work cultures create an environment where people can speak up and disagree without retribution.

DE&I officers need a range of skills to help them set realistic expectations within the organization.

Overly broad goals will undermine your success.

The CAPE process can help you move forward by bringing focus to your efforts.

1 1. One of the insights derived from the McKinsey Global survey on technology strategy, in data analyzed by the McKinsey Institute for Black Economic Development, is the commitment to impact Black-equity by Fortune 500 companies on the heels of the killing of George Floyd. Titled “It's a start: Fortune 500 companies commit $66 billion to racial-equity initiatives,” the full document was published on December 4, 2020 and was accessed on April 5, 2021 at https://www.mckinsey.com/featured-insights/coronavirus-leading-through-the-crisis/charting-the-path-to-the-next-normal/its-a-start-fortune-1000-companies-commit-66-billion-to-racial-equity-initiatives

2 2. To start off the new year on January 1, 2020, Karen Gilchrist, a CNBC correspondent, published an article on the anticipated rise in demand for diversity and inclusion professionals, entitled “Hiring experts expect demand for this role to surge in 2020 – and it can pay a median of $126,000.” Accessed on April 5, 2020 at https://www.cnbc.com/2020/01/02/demand-for-diversity-and-inclusion-professionals-set-to-rise-in-2020.html

3 3. CNBC continued its coverage of the DE&I professional space with an article by Seema Mody on July 29, 2020, entitled “Diversity officers are in demand across corporate America but are often underpaid,” and raising cautions about challenges to the role. Accessed on April 5, 2020 at https://www.cnbc.com/2020/07/29/diversity-officers-are-in-demand-at-us-companies-but-often-underpaid.html.

4 4. A recent article by Denise Hamilton (January 18, 2021) in Bloomberg Opinion suggests that burnout may be one of the pitfalls of working as a professional in the diversity and inclusion space. She cautions that the work can lead to burnout rather than promotion due to a number of factors, including recruiting diversity officers from Human Resources who have a lack of experience in the DE&I profession. Accessed on April 4, 2021 at https://www.bloomberg.com/opinion/articles/2021-01-18/don-t-let-chief-diversity-officer-be-a-dead-end-job

5 5. In a February 2018 article in the Washington Post, Jena McGregor reports on why GE was engaged in a major overhaul of its board of directors following a lengthy list of struggles. Accessed on April 7, 2021 at https://www.washingtonpost.com/news/on-leadership/wp/2018/02/27/why-ge-is-making-a-dramatic-overhaul-to-its-board-of-directors/

6 6. The Harvard Law School Forum on Corporate Governance published a memorandum by Michael Hatcher and Weldon Lathan on May 12, 2020, about how a dozen or more states were enacting requirements for corporations and businesses to enhance diversity on their boards of directors. The article details the actions in California, Illinois, New York, and Pennsylvania among others. Accessed on April 7, 2021 at https://corpgov.law.harvard.edu/2020/05/12/states-are-leading-the-charge-to-corporate-boards-diversify/