Role of Diversity and Inclusion Executives Changing Fast, Conference Board Says

 

              Press Release / News

 

May 27, 2008

Corporate diversity and inclusion executives are under growing pressure as key players in their companies' strategic business growth, according to an analysis by The Conference Board.

A compliance-driven business function when it was first created, the role of diversity and inclusion practitioners is rapidly becoming an important part of overall business strategy. However, a lack of clarity about the new role of diversity and inclusion executives may be hampering both the potential and way companies value this business function. Fast-paced technological change, globalization, immigration, an aging workforce, and a demand for high-level skills and education are driving the new trend.

The report is based on detailed discussions from The Conference Board Council on Workforce Diversity, with representatives and contributions from seven other diversity and inclusion councils both inside and outside the U.S. The discussions make it clear that these executives are facing growing demands to meet higher corporate expectations than ever before.

"The emphasis has progressed from valuing gender and racial differences, which was largely achieved through awareness training, multi-cultural celebrations and employee groups, to strategic and often global business planning and growth," says Toni Riccardi, Senior Vice President of Human Resources and Chief Diversity Officer of The Conference Board. "The focus is on how these executives can help their companies capture new markets, build effective global teams, and manage their companies' brand reputations. Companies are increasingly seeking the expertise of their diversity executives as they enter new markets, build profitable relationships, and develop credibility across different cultures."

A lack of clear definitions regarding both the role and responsibility of diversity and inclusion executives may be causing many firms to under-value these executives. The report pinpoints five key trends behind changing expectations for this corporate position (globalization, demographic shifts, technology, legal environment and the socio-political climate) and provides a set of measurable executive competencies companies can utilize to maximize the impact of this important business function in overall corporate growth strategies.

A Competency Model for Diversity and Inclusion Practitioners

The report provides a competency model (outlined below), which covers seven major areas, including: change management; diversity, inclusion and global perspective; business acumen; strategic external relations; integrity; visionary and strategic leadership; and HR disciplines. The report provides further discussion and analysis within each category.

1. Change Management
Organizational Development; Corporate Communications; Critical Interventions

2. Diversity, Inclusion and Global Perspective
Cultural Competence
Negotiation and Facilitation
Continuous Learning
Complex Group Dynamics
Judgment
Subject Matter Expertise

3. Business Acumen
External Market Knowledge; Holistic Business Knowledge; Diversity and Inclusion Return on Investment

4. Strategic External Relations
Corporate Social Responsibility / Government / Regulatory
Strategic Alliances
Diverse Markets / Supplier Diversity
Brand / Reputation Management

5. Integrity
Ethics; Resilience; Influence; Empathy; Communication

6. Visionary and Strategic Leadership
Diversity and Inclusion Future State
Pragmatism
Political skills (at HQ and local levels)

7. HR Disciplines
Total Rewards / Talent Management / Organizational Development / Work and Life Balance / Training
Compliance
Employee Relations

To be effective, these competencies should be integrated into a company's business metrics, notes the report. Organizations should be asking the question: how can this person use this competency to strengthen the business? Or, what does this person need to achieve to further our organizational goals? Says Riccardi: "The 21st Century diversity and inclusion practitioner, embracing a more public, strategic role, requires a complex challenging new set of competencies."

Source: Creating a Competency Model for Diversity and Inclusion Practitioners
Report No. 1420 The Conference Board

Read this report

Comments

[Hawi Moore]

Nice