Tag Archives: DEI

Four Deadly Business Myths

Four Deadly Business Myths

GUEST POST from Greg Satell

The unicorn is perhaps unique among myths in that the creature doesn’t appear in the mythology of any culture. The ancient Greeks, for all of their centaurs, hydras and medusae, never had any stories of unicorns, they simply thought that some existed somewhere. Of course, nobody had ever seen one, but they believed others had.

Beliefs are amazing things. We don’t need any evidence or rational basis to believe something to be true. In fact, research has shown that, when confronted with scientific evidence which conflicts with preexisting views, people tend to question the objectivity of the research rather than revisit their beliefs. Also, as Sam Arbesman has explained, our notions of the facts themselves change over time.

George Soros and others have noted that information has a reflexive quality. We can’t possibly verify every proposition, so we tend to take cues from those around us, especially when they are reinforced by authority figures, like consultants and media personalities. Over time, the zeitgeist diverges further from reality and myths evolve into established doctrine.

Myth #1: We Live In A VUCA Business Environment

Today it seems that every business pundit is talking about how we operate in a VUCA (Volatile, Uncertain, Complex and Ambiguous) world. It’s not hard to see the attraction. Conjuring almost apocalyptic images of continuous industrial disruption creates demand for consulting and advisory services. It’s easier to sell aspirin than vitamins.

The data, however, tell a different story. In fact, a report from the OECD found that markets, especially in the United States, have become more concentrated and less competitive, with less churn among industry leaders. The number of young firms have decreased markedly as well, falling from roughly half of the total number of companies in 1982 to one third in 2013.

Today, in part because of lax antitrust enforcement over the past few decades, businesses have become less disruptive, less competitive and less dynamic, while our economy has become less innovative and less productive. The fact that the reality is in such stark contrast to the rhetoric, is more than worrying, it should be a flashing red light.

The truth is that we don’t really disrupt industries anymore. We disrupt people. Economic data shows that for most Americans, real wages have hardly budged since 1964. Income and wealth inequality remain at historic highs. Anxiety and depression, already at epidemic levels, worsened during the Covid-19 pandemic.

The recent great resignation, when people began leaving their jobs in droves, helps tell this story. Should anyone be surprised? We’ve been working longer hours, constantly tethered to the office even as we work remotely, under increasing levels of stress. Yes, things change. They always have and always will. We need to adapt, but all of the VUCA talk is killing us.

Myth #2: Empathy Is Absolution

Another favorite buzzword today is empathy. It is often paired with compassion in the context of creating a more beneficial workplace. That is, of course, a reasonable and worthy objective. As noted above, there’s far too much talk about disruption and uncertainty and not nearly enough about stability and well-being.

Still, the one-dimensional use of empathy is misleading. When seen only through the lens of making others more comfortable, it seems like a “nice to have,” rather than a valuable competency and an important source of competitive advantage. It’s much easier to see the advantage of imposing your will, rather than internalizing the perspectives of others.

One thing I learned living overseas for 15 years is that it is incredibly important to understand how people around you think, especially if you don’t agree with them and, as is sometimes the case, find their point of view morally reprehensible. In fact, learning more about how others think can make you a more effective leader, negotiator and manager.

Empathy is not absolution. You can internalize the ideas of others and still vehemently disagree. There is a reason that Special Forces are trained to understand the cultures in which they will operate and it isn’t because it makes them nicer people. It’s because it makes them more lethal operators.

Learning that not everyone thinks alike is one of life’s most valuable lessons. Yes, coercion is often a viable strategy in the short-term. But to build something that lasts, it’s much better if people do things for their own reasons, even if those reasons are different than yours. To achieve that, you have to understand their motivations.

Myth #3: Diversity Equity And Inclusion Is About Enforcing Rules

In recent years corporate America has pushed to implement policies for diversity, equity and inclusion. The Society for Human Resource Management even offers a diversity toolkit on its website firms can adopt, complete with guidelines, best practices and even form letters.

Many organizations have incorporated diversity awareness training for employees to learn about things like unconscious bias, microaggressions and cultural awareness. There are often strict codes of conduct with serious repercussions for violations. Those who step out of line can be terminated and see their careers derailed.

Unfortunately, these efforts can backfire, especially if diversity efforts rely to heavily on a disciplinary regime. As the philosopher Ludwig Wittgenstein pointed out long ago, strict rules-based approaches are problematic because they inevitably lead to logical contradictions. What starts out as a well-meaning effort can quickly become a capricious workplace dominated by fear.

Cultural competency is much better understood as a set of skills than a set of rules. While the prospect of getting fired for saying the wrong thing can be chilling, who wouldn’t want to be a more effective communicator, able to collaborate more effectively with colleagues who have different viewpoints, skills and perspectives?

To bring about real transformation, you need to attract. You can’t bully or overpower. Promoting inclusion should be about understanding, not intimidation.

Myth #4: People Are Best Motivated Through Carrots And Sticks

One of the things we’ve noticed when we advise organizations on transformation initiatives is that executives tend to default towards incentive structures. They quickly conjure up a Rube Goldberg-like system of bonuses and penalties designed to incentivize people to exhibit the desired behaviors. This is almost always a mistake.

If you feel the need to bribe and bully people to get what you want, you are signaling from the outset that there is something undesirable about what you’re asking for. In fact, we’ve known for decades that financial incentives often prove to be problematic.

Instead of trying to get people to do what you want, you’re much better off identifying people who want what you want and empowering them to succeed. As they prosper, they can bring others in who can attract others still. That’s how you build a movement that people feel a sense of ownership of, rather than mandate that they feel subjugated by.

The trick is that you always want to start with a majority, even if it’s three people in a room of five. The biggest influence on what we do and think is what the people around us do and think. That’s why it’s always easy to expand a majority out, but as soon as you are in the minority, you will feel immediate pushback.

We need to stop trying to engineer behavior, as if humans are assemblages of buttons and levers that we push and pull to get the results we want. Effective leaders are more like gardeners, nurturing, growing and shaping the ecosystems in which they operate, uniting others with a sense of shared identity and shared purpose.

— Article courtesy of the Digital Tonto blog
— Image credits: Unsplash

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Fueling a Culture of Innovation with Diversity and Inclusion

Fueling a Culture of Innovation with Diversity and Inclusion

GUEST POST from Art Inteligencia

In today’s rapidly evolving business landscape, the capacity for innovation stands as a critical differentiator among leading organizations. At the heart of fostering this innovation is the commitment to diversity and inclusion (D&I). The melding of varied perspectives, backgrounds, and experiences not only drives creative outcomes but also builds resilient, adaptive business enterprises. As thought leaders at the helm, we must champion a culture where diversity and inclusion are not mere policies but key drivers of innovation.

The Power of Diverse Perspectives

Diverse teams bring a wealth of perspectives that ignite creativity and challenge entrenched assumptions. A study by Boston Consulting Group found that diverse management teams lead to a 19% increase in revenue due to innovation. When individuals from different cultural, gender, and generational backgrounds convene, they contribute unique viewpoints that enhance problem-solving capabilities and stimulate breakthrough innovations. The convergence of these perspectives facilitates more rounded and comprehensive decision-making processes, which can yield novel products and services.

Case Study 1: Global Tech Innovators

Consider the case of a leading global technology firm that set out to invigorate its product development process. By championing a diverse workforce, the firm curated project teams inclusive of members from varied cultural backgrounds, educational disciplines, and genders. This not only mirrored their diverse customer base but also fueled unprecedented growth in innovation-led initiatives.

One notable success involved a team working on a next-generation wearable technology. By leveraging insights from team members in Asia, Africa, and Latin America, who understood the regional health and wellness nuances, the team developed features that resonated globally, driving product adoption in markets previously untapped. This was achieved through a continuous dialogue fostering an inclusive atmosphere where all team members felt empowered to voice their ideas without fear of dismissal or ridicule.

Fostering an Inclusive Culture

Building a truly inclusive culture involves more than just assembling a diverse team. It entails creating an environment where all employees feel valued and heard, and where contributions are recognized and rewarded. Organizations should implement training programs that underscore the importance of inclusivity, where leaders are equipped to nurture and mentor diverse talent.

“An inclusive culture is one where every employee can bring their full selves to work and contribute towards the innovation journey.”—Anonymous

It’s crucial for leadership to model inclusive behaviors that permeate throughout the organizational culture. This can include forming employee resource groups that celebrate diversity or establishing forums for open dialogue and collaborative ideation sessions. The net result is a fertile environment ripe for innovation.

Case Study 2: Healthcare Innovators

The healthcare industry illustrates another compelling example where D&I powered innovation. A national healthcare provider faced the challenge of designing patient outreach programs that connected with a wide array of demographics. By integrating a diverse group of healthcare professionals, the provider was able to tailor communication strategies to suit different cultural norms and practices.

The diversity within the team ensured that the insights went beyond mere language translation, addressing deeper cultural contexts, and resulting in higher patient engagement and satisfaction rates. The innovative outreach models developed were expanded into full-scale implementations that fundamentally transformed patient-provider interactions across various communities.

Sustaining Innovation through Continuous Commitment

To sustain innovation, organizations must maintain a steadfast commitment to D&I. It is an ongoing journey requiring regular reflection and renewal of strategies. Metrics should be in place to measure the impact of D&I efforts on innovation outcomes, with goals evolving in response to the shifting dynamics of the workforce.

Success stories and best practices should be shared throughout the organization, highlighting how diversity and inclusion have propelled improvements and sparked new initiatives. This storytelling not only inspires but also reinforces the value of D&I as fundamental pillars of innovation.

Conclusion

Fostering a culture of innovation through diversity and inclusion is not optional in today’s competitive business world—it is imperative. The cases presented exemplify how embracing a broad set of voices leads to solutions that are not only innovative but also deeply resonant with a global demographic. As leaders, our role is to build and sustain environments where diversity and inclusion are integral to our organizational DNA, driving forward our vision for continuous innovation.

This article is designed to provide a thoughtful exploration of how diversity and inclusion fuel innovation, along with practical case studies to illustrate these principles. Let me know if there are any further changes or additions you’d like to make!

Extra Extra: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

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The Power of Diversity and Inclusion in Driving Innovation

The Power of Diversity and Inclusion in Driving Innovation

GUEST POST from Chateau G Pato

Innovation is the lifeblood of progress, a catalyst for growth, and a key differentiator in a competitive market. But where does innovation come from? It is often birthed from the intersection of diverse ideas, experiences, and perspectives. Creating an environment where these diverse thoughts can thrive is not just a moral imperative; it’s a business necessity. In this article, we’ll explore how diversity and inclusion act as powerful drivers of innovation, supported by real-world case studies that highlight their transformative potential.

Why Diversity and Inclusion Matter

1. Diverse Teams Generate Better Ideas

When individuals with different experiences and viewpoints come together, the probability of generating unique and groundbreaking ideas increases exponentially. Diverse teams challenge the status quo, approach problems from various angles, and can identify opportunities that a more homogenous team might overlook.

2. Inclusive Cultures Foster Psychological Safety

Diversity’s full potential can only be realized in an inclusive environment where every member feels valued and respected. Psychological safety encourages individuals to share their thoughts without fear of ridicule or retribution. It’s this openness that allows innovation to flourish.

3. Reflecting Global Markets

Organizations that embrace diversity are better equipped to understand and serve global markets. With team members mirroring the diversity of customers, companies can create products and services that meet a wider range of needs and preferences.

Case Study 1: Procter & Gamble—The Open Innovation Model

Procter & Gamble (P&G), one of the world’s largest consumer goods companies, serves as a shining example of how embracing diversity and inclusion can drive innovation. In the early 2000s, P&G was facing stagnant growth and needed a new strategy to rejuvenate its product pipeline. The company decided to embark on an “open innovation” model, also known as Connect + Develop.

The Approach

Instead of relying solely on internal R&D, P&G looked outward. They invited ideas from diverse external sources—customers, suppliers, and even competitors. The company established an inclusive culture where ideas, regardless of their origin, could be evaluated and developed.

The Results

This inclusive approach to innovation led to a string of successful products. Swiffer, Olay Regenerist, and Tide Pods are all products that owe their existence to P&G’s open innovation model. By valuing and integrating diverse perspectives, P&G experienced a significant boost in innovation and market performance, driving an increase in both sales and customer satisfaction.

Case Study 2: IBM—Embracing Diversity Through Business Resource Groups

IBM has long been a pioneer in recognizing the power of diversity and inclusion. In the mid-1990s, IBM faced a critical turning point as they realized their workforce needed to reflect the growing diversity of their global customer base. They implemented Business Resource Groups (BRGs) to leverage the unique insights of their diverse employees.

The Approach

IBM’s BRGs are employee-led affinity groups that focus on fostering inclusion and driving business results. These groups cover a variety of demographics, including race, gender, sexual orientation, and disability status. Each BRG is empowered to provide insights and feedback that can influence product development and corporate strategy.

The Results

One notable success story comes from the IBM Accessibility group, a BRG focused on creating inclusive technology for people with disabilities. Thanks to the insights from this group, IBM developed innovative solutions such as the IBM Watson Accessibility service, which uses AI to enhance online accessibility for users with diverse needs. This not only opened new market opportunities but also reinforced IBM’s brand as a socially responsible leader in technology.

Best Practices for Fostering Diversity and Inclusion

1. Leadership Commitment

For diversity and inclusion to take root, leaders must champion these values. This involves setting clear goals, allocating resources, and creating accountability measures.

2. Building an Inclusive Culture

Create an environment where every voice is heard and valued. Encourage open dialogue and provide training to help employees understand the benefits of a diverse workplace.

3. Diverse Recruitment and Retention

Implement recruitment strategies aimed at attracting diverse talent. Additionally, focus on retaining diverse employees by providing career development opportunities and mentoring programs.

4. Measuring Success

Track diversity and inclusion metrics to measure progress. Use this data to make informed decisions and continually improve your strategy.

Conclusion

The power of diversity and inclusion in driving innovation is undeniable. As evidenced by the successful strategies of companies like Procter & Gamble and IBM, embracing diverse perspectives leads to richer ideas, better products, and stronger market performance. Organizations that prioritize diversity and inclusion not only create a more equitable workplace but also position themselves at the forefront of innovation and growth. By fostering an environment that values every unique voice, we can unlock the full potential of human creativity and drive lasting, impactful change.

For more insights and strategies on fostering innovation through diversity and inclusion, follow my ongoing work and join the conversation. Let’s build a future where everyone’s ideas can shine.

Feel free to add any specific statistics, further case studies, or insights in the comments to support the article’s points further for an even richer narrative.

SPECIAL BONUS: The very best change planners use a visual, collaborative approach to create their deliverables. A methodology and tools like those in Change Planning Toolkit™ can empower anyone to become great change planners themselves.

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