Business inclusion: The ROI of Inclusion: How Diverse Teams Impact Business Performance

1. What is business inclusion and why does it matter?

Business inclusion is more than just a buzzword or a moral obligation. It is a strategic imperative that can enhance the performance, innovation, and profitability of any organization. Inclusion means creating a culture where everyone feels valued, respected, and empowered to contribute their unique talents and perspectives. It also means ensuring that diverse voices are heard, represented, and leveraged in decision-making processes and outcomes.

Why does business inclusion matter? Here are some of the benefits that diverse and inclusive teams can bring to any organization:

1. Higher productivity and efficiency. Diverse teams can tap into a wider range of skills, experiences, and perspectives that can help them solve problems faster, generate more ideas, and avoid groupthink. Inclusive teams can also foster a sense of belonging and trust among team members, which can boost their motivation, engagement, and collaboration. A study by McKinsey & Company found that companies in the top quartile for ethnic and cultural diversity on their executive teams were 36% more likely to outperform their peers on profitability.

2. Greater innovation and creativity. Diverse teams can bring different perspectives and approaches to the same challenge, which can spark creativity and innovation. Inclusive teams can also create a safe and supportive environment where team members can share their opinions, experiment with new ideas, and learn from each other. A study by boston Consulting group found that companies with above-average diversity on their management teams reported innovation revenue that was 19 percentage points higher than that of companies with below-average diversity.

3. Better customer satisfaction and loyalty. diverse teams can better understand and serve the needs and preferences of a diverse customer base, which can lead to higher customer satisfaction and loyalty. Inclusive teams can also leverage their diverse insights and experiences to create more relevant and personalized products and services that can meet the expectations and demands of different customer segments. A study by harvard Business review found that companies with higher-than-average diversity had 19% higher innovation revenues and 9% higher EBIT margins.

4. Enhanced reputation and brand value. Diverse teams can reflect and represent the values and aspirations of a diverse society, which can enhance the reputation and brand value of any organization. Inclusive teams can also demonstrate a commitment to social responsibility and ethical leadership, which can attract and retain talent, customers, investors, and partners. A study by Forbes Insights found that 85% of executives agreed that diversity and inclusion enhanced their company's reputation.

These are just some of the reasons why business inclusion matters. By embracing and promoting diversity and inclusion, organizations can not only achieve their social and moral goals, but also gain a competitive edge in the global market.

2. How diverse teams can boost creativity, innovation, and problem-solving?

One of the main drivers of business performance is the ability to generate novel and useful ideas that can solve problems, improve processes, or create value for customers. However, this is not something that can be achieved by relying on a single perspective or a homogeneous group of people. Research has shown that diverse teams, composed of individuals with different backgrounds, experiences, skills, and identities, can enhance creativity, innovation, and problem-solving in various ways. Some of the benefits of inclusion for business performance are:

- Diverse teams can access a wider range of information and perspectives. When team members have different sources of knowledge, they can bring more information to the table, which can help them identify opportunities, generate alternatives, and evaluate solutions. For example, a team of engineers from different countries and cultures might have different insights on how to design a product that meets the needs and preferences of a global market.

- Diverse teams can stimulate cognitive diversity and constructive conflict. When team members have different ways of thinking, they can challenge each other's assumptions, question the status quo, and explore new possibilities. This can foster a culture of learning, curiosity, and experimentation, which can lead to more innovative outcomes. For example, a team of marketers from different generations and genders might have different opinions on how to communicate a brand message to a diverse audience, which can result in more creative and effective campaigns.

- Diverse teams can enhance collective intelligence and decision-making. When team members have different skills and abilities, they can complement each other's strengths, compensate for each other's weaknesses, and leverage each other's expertise. This can increase the team's capacity to process information, solve complex problems, and make informed decisions. For example, a team of financial analysts from different disciplines and industries might have different methods and tools to analyze data, which can improve the accuracy and reliability of their forecasts.

However, these benefits of inclusion are not automatic or guaranteed. They depend on how well the team members work together, respect each other, and value their diversity. Therefore, it is important for businesses to create an inclusive environment that supports and empowers diverse teams, by providing them with the necessary resources, guidance, and feedback. By doing so, businesses can not only boost their creativity, innovation, and problem-solving, but also their reputation, customer satisfaction, and social impact.

3. How to overcome biases, stereotypes, and conflicts in diverse teams?

While diverse teams can offer many benefits for business performance, such as increased creativity, innovation, and customer satisfaction, they also face some unique challenges that can hinder their effectiveness and cohesion. These challenges include biases, stereotypes, and conflicts that can arise from different backgrounds, cultures, values, and perspectives. In this section, we will explore some of these challenges and how to overcome them by applying the principles of inclusion.

Some of the challenges that diverse teams may encounter are:

1. Biases: Biases are unconscious or conscious preferences or judgments that affect our decisions and behaviors. Biases can lead to discrimination, favoritism, or exclusion of certain groups or individuals based on their identity or characteristics. For example, a manager may have a bias against older workers and assume that they are less productive, adaptable, or innovative than younger workers. This may result in unfair performance evaluations, promotions, or assignments for the older workers.

2. Stereotypes: Stereotypes are generalized and oversimplified beliefs or assumptions about a group of people based on their identity or characteristics. Stereotypes can influence our expectations, perceptions, and interactions with others. For example, a team member may have a stereotype that women are more emotional, less assertive, or less competent than men. This may affect how they communicate, collaborate, or trust their female colleagues.

3. Conflicts: Conflicts are disagreements or disputes that arise from incompatible goals, interests, or opinions. Conflicts can be constructive or destructive, depending on how they are managed and resolved. Diverse teams may experience more conflicts due to the diversity of perspectives, values, and preferences. For example, a team may have a conflict over how to approach a project, whether to use a more analytical or creative method, or whether to prioritize quality or speed.

To overcome these challenges, diverse teams need to foster a culture of inclusion, where everyone feels valued, respected, and supported. Some of the strategies that can help create an inclusive environment are:

- Awareness: The first step to overcoming biases and stereotypes is to become aware of them and how they affect our thoughts and actions. We can use self-reflection, feedback, or training to identify and challenge our own biases and stereotypes. We can also learn more about the backgrounds, cultures, and experiences of our team members and appreciate their diversity.

- Communication: The key to resolving conflicts and building trust is to communicate effectively and respectfully. We can use active listening, empathy, and feedback to understand and acknowledge different viewpoints and feelings. We can also use clear, concise, and inclusive language to express our ideas and expectations. We can avoid using jargon, slang, or idioms that may be unfamiliar or offensive to others.

- Collaboration: The best way to leverage the strengths and talents of diverse teams is to collaborate and cooperate. We can use shared goals, norms, and values to align our efforts and motivations. We can also use diverse methods, tools, and platforms to facilitate teamwork and creativity. We can seek input, feedback, and support from our team members and recognize and celebrate their contributions.

4. How to foster a culture of inclusion, respect, and belonging in your organization?

In the previous sections, we have discussed the benefits of having diverse teams in terms of innovation, creativity, problem-solving, and customer satisfaction. However, diversity alone is not enough to ensure the optimal performance of these teams. It is equally important to create an environment where everyone feels valued, respected, and included, regardless of their background, identity, or perspective. This is what we call inclusion, and it is a key driver of engagement, collaboration, and productivity in the workplace.

How can we foster a culture of inclusion in our organization? There is no one-size-fits-all answer to this question, as different contexts and situations may require different approaches and strategies. However, based on the research and best practices from various industries and sectors, we can identify some common elements that can help us achieve this goal. Here are some of them:

1. Leadership commitment and accountability. inclusion starts from the top, and leaders play a crucial role in setting the tone and direction for the organization. Leaders should communicate a clear and consistent vision of inclusion, and demonstrate their commitment through their actions and behaviors. They should also hold themselves and others accountable for creating and maintaining an inclusive culture, and provide feedback and recognition to those who contribute to it. For example, leaders can establish and monitor diversity and inclusion goals and metrics, and link them to performance and rewards. They can also model inclusive behaviors, such as listening actively, seeking diverse opinions, and addressing bias and discrimination.

2. Education and awareness. Inclusion requires a continuous learning process, where everyone is aware of their own biases, assumptions, and blind spots, and how they can affect their interactions and decisions. Education and awareness programs can help employees develop the knowledge and skills to understand, appreciate, and leverage diversity, and to identify and overcome the barriers to inclusion. For example, employees can participate in workshops, trainings, or online courses on topics such as unconscious bias, cultural intelligence, allyship, and microaggressions. They can also access resources and tools, such as books, podcasts, articles, or videos, that can broaden their perspectives and challenge their stereotypes.

3. employee engagement and empowerment. Inclusion is not only a top-down initiative, but also a bottom-up movement, where employees are actively involved and empowered to shape the culture and climate of the organization. Employee engagement and empowerment can be achieved by creating and supporting various platforms and channels for employees to voice their opinions, share their experiences, and influence change. For example, employees can join or form employee resource groups, networks, or committees, that can provide peer support, mentoring, and advocacy for different groups and issues. They can also participate in surveys, focus groups, or town halls, that can solicit feedback and suggestions on how to improve the diversity and inclusion policies and practices.

4. Inclusive policies and practices. Inclusion is not only a matter of culture and climate, but also a matter of structure and systems, where the policies and practices of the organization are aligned with the values and goals of diversity and inclusion. Inclusive policies and practices can ensure that everyone has equal access to opportunities, resources, and benefits, and that everyone is treated fairly and respectfully. For example, the organization can review and revise its hiring, promotion, compensation, and retention processes, to eliminate any potential bias or discrimination, and to promote meritocracy and transparency. It can also implement flexible work arrangements, such as remote work, part-time work, or job sharing, that can accommodate the diverse needs and preferences of employees.

5. How to measure and improve the impact of inclusion on your business performance?

One of the key questions that leaders and managers face when implementing inclusion initiatives is how to measure their impact on business performance. While there is ample evidence that diverse and inclusive teams can boost innovation, creativity, customer satisfaction, and employee engagement, it is not always easy to quantify these benefits and link them to specific outcomes. However, there are some ways to design and use metrics that can help evaluate and improve the effectiveness of inclusion efforts. Here are some of them:

1. Define clear and relevant goals for inclusion. Before measuring anything, it is important to have a clear vision of what inclusion means for the organization and what are the desired outcomes. For example, some possible goals could be to increase the representation of underrepresented groups in leadership positions, to reduce the turnover rate of diverse employees, to enhance the collaboration and communication across different teams, or to improve the customer loyalty and retention. These goals should be aligned with the organization's mission, values, and strategy, and should be communicated to all stakeholders.

2. Choose appropriate and meaningful indicators for inclusion. Once the goals are defined, the next step is to select the indicators that can measure the progress and impact of inclusion. These indicators should be relevant, valid, reliable, and actionable. They should also capture both the quantitative and qualitative aspects of inclusion, such as the diversity of the workforce, the inclusion climate, the employee experience, the customer feedback, and the business results. Some examples of indicators are the diversity scorecard, the inclusion index, the employee engagement survey, the net promoter score, and the revenue growth rate.

3. collect and analyze data from multiple sources and perspectives. To get a comprehensive and accurate picture of the state and impact of inclusion, it is essential to collect and analyze data from various sources and perspectives. These include internal data (such as HR records, performance reviews, surveys, interviews, focus groups, etc.), external data (such as market research, customer reviews, industry benchmarks, etc.), and third-party data (such as ratings, awards, certifications, etc.). The data should be disaggregated by relevant dimensions of diversity (such as gender, race, ethnicity, age, disability, etc.) and analyzed using appropriate statistical methods and tools.

4. Communicate and act on the findings and recommendations. The final step is to communicate and act on the findings and recommendations from the data analysis. The communication should be transparent, timely, and tailored to different audiences (such as senior leaders, managers, employees, customers, etc.). The communication should highlight the strengths and areas of improvement, the best practices and lessons learned, the challenges and opportunities, and the action plans and next steps. The action plans should be specific, measurable, achievable, relevant, and time-bound, and should be monitored and evaluated regularly. The communication and action should also involve feedback and input from the stakeholders, and should foster a culture of learning and continuous improvement.

By following these steps, organizations can design and use metrics that can help them measure and improve the impact of inclusion on their business performance. By doing so, they can not only reap the benefits of diversity and inclusion, but also demonstrate their commitment and accountability to their values and goals.

6. How some leading companies have leveraged inclusion to achieve remarkable results?

Inclusion is not only a moral imperative, but also a strategic advantage for businesses that want to thrive in the global market. Research has shown that diverse and inclusive teams can outperform their peers in terms of innovation, productivity, customer satisfaction, and profitability. However, creating an inclusive culture requires more than just hiring diverse talent. It also involves fostering a sense of belonging, respect, and empowerment among all employees, regardless of their background, identity, or perspective. In this section, we will explore how some leading companies have leveraged inclusion to achieve remarkable results in their respective domains. We will highlight the following aspects of their success stories:

1. The business challenge that motivated them to adopt a more inclusive approach.

2. The inclusion strategy that they implemented to address the challenge and meet their goals.

3. The business outcome that they achieved as a result of their inclusion strategy.

Some of the companies that we will examine are:

- Accenture, a global professional services company that increased its revenue growth by 11% and its market capitalization by 60% after setting and achieving ambitious diversity targets.

- L'Oréal, a global beauty company that enhanced its innovation and creativity by fostering a culture of inclusion that celebrates the diversity of its employees and customers.

- Mastercard, a global payments company that improved its customer loyalty and retention by creating inclusive products and services that cater to the needs of underserved segments.

- Salesforce, a global software company that boosted its employee engagement and performance by investing in inclusion programs and initiatives that support the well-being and development of its workforce.

7. How to get started with inclusion and make it a strategic priority for your business?

We have seen how inclusion can benefit both individuals and organizations in terms of performance, innovation, engagement, and well-being. But how can we foster a culture of inclusion in our workplaces and make it a strategic priority for our businesses? Here are some steps that you can take to start your inclusion journey and reap the rewards of diversity:

- 1. Assess your current state of inclusion. Before you can improve your inclusion practices, you need to know where you stand. You can use tools such as surveys, focus groups, interviews, or audits to measure the level of inclusion in your organization and identify the gaps and opportunities for improvement. You can also benchmark your results against industry standards or best practices to see how you compare with others.

- 2. set clear and measurable goals for inclusion. Based on your assessment, you can define what inclusion means for your organization and what outcomes you want to achieve. You can also set specific and measurable objectives and indicators to track your progress and evaluate your impact. For example, you can aim to increase the representation of underrepresented groups in your workforce, leadership, or decision-making processes, or to reduce the turnover or attrition rate of diverse employees.

- 3. Develop and implement an inclusion strategy. To achieve your goals, you need to have a clear and coherent plan of action that outlines the steps, resources, responsibilities, and timelines for your inclusion initiatives. You can also align your inclusion strategy with your overall business strategy and vision, and communicate it to your stakeholders and employees. Your inclusion strategy should include both short-term and long-term actions, such as:

- a. Creating and enforcing inclusive policies and practices. You can review and revise your existing policies and practices to ensure that they are fair, equitable, and inclusive for all employees. For example, you can adopt anti-discrimination and anti-harassment policies, provide flexible work arrangements, offer equal pay and benefits, and implement fair and transparent recruitment and promotion processes.

- b. Providing and promoting inclusive education and training. You can educate and train your employees on the importance and benefits of inclusion, and equip them with the skills and knowledge to foster an inclusive culture. For example, you can offer diversity and inclusion workshops, webinars, or courses, provide mentoring and coaching programs, and encourage peer learning and feedback.

- c. Building and supporting inclusive teams and networks. You can create and nurture diverse and inclusive teams and networks within and across your organization, and provide them with the tools and support to collaborate effectively and innovatively. For example, you can establish employee resource groups, affinity networks, or communities of practice, facilitate cross-functional and cross-cultural projects, and leverage technology and platforms to enable communication and interaction.

- 4. Monitor and evaluate your inclusion efforts. To ensure that your inclusion strategy is working and delivering the desired results, you need to regularly monitor and evaluate your inclusion efforts and outcomes. You can use the data and feedback that you collect to measure your performance, identify the challenges and successes, and adjust your actions accordingly. You can also celebrate and recognize your achievements and best practices, and share your learnings and insights with others.

By following these steps, you can start your inclusion journey and make it a strategic priority for your business. You can also create a positive and lasting impact on your employees, customers, partners, and society. Remember, inclusion is not a one-time event or a checkbox, but a continuous process and a mindset that requires commitment and action from everyone. So, what are you waiting for? Start your inclusion journey today and unleash the potential of your diverse teams!