Power Equipment Australasia

transformative and profitable. But valuing the diversity of difference doesn’t happen by mistake. Senior leaders don’t accidentally acknowledge institutional inequities, discard and replace them with transparent structures of equity. Inclusive cultures of belonging don’t miraculously appear from one day to the next by happenstance. According to Diversity and Inclusion – Global Market Trajectory and Analytics,9 diverse companies earn two and a half times higher cash flow per employee and inclusive teams are productive by over thirty-five percent. A Boston Consulting Group10 study found that diverse companies produce nineteen percent more revenue noting that “increasing the diversity of leadership teams leads to more and better innovation and improved financial performance.” A BoardReady11 report revealed that companies with more than thirty percent women on their board delivered better year-over-year revenue in eleven of the top fifteen S&P 500 sectors than their less-diverse counterparts. a. Develop data-driven talent acquisition, movement and flexibility to shake up the make-up of teams and functions that have become innovatively stagnate and performance predictable. b. C hampion decision-making by diverse groups at critical points along a decision value chain to realise the greatest performance impact. c. B uild structural points of entry into an inclusive mechanism for decision making as homogeneity impowses financial costs and diversity produces financial gains. For diversity initiatives to be fully realised, decision-making must be as transformative as it is disruptive. While Einstein’s12 quantum theory about insanity is doing the same thing over and over and expecting different results, the same argument can be made for making decisions by talent with similar backgrounds, schools and experiences or the same gender, sexual orientation and nationality. If history is any guide, incremental diversity, equity and inclusion success can seem painfully unhurried. But if DEI initiatives define and invest in its purpose, collect data and measure progress, reconsider the institutional structures of privilege, reimagine the future and insert diversity into decision making, diversity outcomes will be no accident. 1 Caprino, K. (2023). Why so many DEI programs are failing and how to improve them. Forbes. February 23. 2 Creating a Culture of Diversity, Equity, and Inclusion: Real Progress Requires Sustained Commitment. Harvard Business Review, 2021. 3 Carter, E. and Johnson, N. (2022). To sustain DEI momentum, companies must invest three areas. Harvard Business Review, November 4. 4 Georgeac, O. and Rattan, A. (2022). Stop making the business case for diversity. Harvard Business Review, June 15. 5 Pearce, R., Wald, E. and Ballakrishnen, S. (2015). Difference blindness vs. bias awareness: Why law firms with the best of intentions have failed to create diverse partnerships. Fordham Law Review. Vol 83, Issue 5, Article 11. 6 Herron, A. (2023). Diversity, equity, inclusion and belonging’s impact on employment, engagement and retention. WebMD Health Services. February 28. 7 Eaton, K., Forsythe. J., Griffiths, M., Hatfield, S., Kirby, L., Mallon, D., Poynton, S., Scoble-Williams, N., and Van Durme, Y. (2023). Global human capital trends. Deloitte, January 9. 8 The 2022 Ernst & Young US Generation Survey. October 13. 9 Diversity, Equity, Inclusion and Belonging: Why your program may be failing your employees. WebMD Health Services. White paper, 2023. 10 Lorenzo, R., Voigt, N., Tsusaka, M., Krentz, M., and Abouzahr, K. (2018). How diverse leadership teams boost innovation. Boston Consulting Group. January 28. 11 Subramanian, R. (2021). Lessons from the pandemic: Board diversity and performance. BoardReady. July 13. 12 Einstein, A., Podolsky, B. and Rosen, N. (1935). “Can quantum-mechanical description of physical reality be considered complete?”, Physical Review, 47: 777–780. ABOUT THE AUTHOR Dr Wesley Payne McClendon is a chief executive, board advisor and thought leader with global experience in professional services as a Managing Director, Partner and Practice Leader, board chair and non-executive director in government, higher education, startups, peak professional bodies and private sector businesses, and Professor of Human Capital Management in Asia, Australia, Europe, Middle East, United Kingdom and United States. Dr McClendon is Executive Director, McClendon Research Group, Board Director, Australian Institute of Architects Foundation (AIA), formerly, Independent Director, Chair, People & Culture Committee, AIA, Chief Transformation Officer, Diversity Atlas, Distinguished Visiting Scholar at Victoria Graduate School of Business, and Adjunct at Macquarie Graduate School of Management and SP Jain School of Global Management. Previously, he was Professor, Edinburgh Napier University Business School, Associate Professor, Melbourne Business School, Fellow, Birmingham Business School and Lecturer, Leeds University Business School. He researches, teaches and supervises student research projects on a range of topics including strategic human resource management, leadership, strategy, organisation behaviour and change management. DIVERSITY 26 | POWER EQUIPMENT AUSTRALASIA | JANUARY - FEBRUARY 2024