#36 Is diversity part of your corporate strategy?

A company that promotes the diversity of its employees is a more successful company. This realization has long been known, yet the change towards more Diversity, Equity & Inclusion (DEI) in companies often seems to happen slowly. Lina Maria Pietras, certified business leadership coach and DEI manager, knows exactly how to accelerate such changes in companies. In this podcast episode, Christian Underwood and Lina Maria Pietras discuss what exactly DEI means in the corporate context and she describes what a company's first steps towards diversity can look like.

"Reminding people to work with people again and to see inclusion as a fundamental right of all people" - that is what drives her to do her extensive work. The German-Brazilian has a degree in business administration from the Baden-Württemberg Cooperative State University and an MBA from WHU. Today, she is a certified business leadership coach and advises corporations and medium-sized companies on diversity, equity and inclusion (DEI) with her own company Purpose.hub. She is not only a German Diversity Award winner in the Disability category, she is also a volunteer in many organizations. And she has mastered all of this with 4% vision. Lina has been almost blind since the age of 9.

Among other things, Lina works as a DEI manager, where she is responsible for developing and implementing strategies and initiatives to promote diversity, equality and inclusion within a company. But what do these terms mean specifically in the corporate context?

Diversity refers to the existence of differences in a particular environment. In the workplace, this can mean differences in race, ethnicity, gender, gender identity, sexual orientation, age and socio-economic class. It can also refer to differences in physical ability, such as whether or not you have children. Equity is the process of ensuring that practices and programs are impartial, fair and provide equal opportunities for everyone. Inclusion is the practice of ensuring that people feel they belong in the workplace. This means that every employee feels comfortable and supported by the organization when it comes to expressing their authentic self.

By combining these three elements, DEI is a mission statement that recognizes the value of diverse voices and emphasizes inclusivity and employee wellbeing as key aspects of success. To bring these values to life, companies must implement programs and initiatives that actively make their offices a more diverse, equitable and inclusive place. And that's where Pietra's work begins.

The results of McKinsey's 2020 study "Diversity Wins - How Inclusion Matters" showed that companies with a high level of diversity in terms of gender and ethnicity are more likely to be more profitable than average. Companies with high gender diversity are 25% more likely, and companies with high ethnic diversity are even 36% more likely to be economically successful. These results are based on the analysis of data from more than 1,000 companies in 15 countries. So how can it be that business leaders have so far been so inattentive to the issue of diversity?

Pietras explains that diversity in top management was previously a blind spot and the added value and its productivity were simply misjudged. More time in decision-making rounds, longer innovation cycles and deep-rooted beliefs about existing homogeneous educational backgrounds have stood in the way of rapid, productive change and understanding the added value of diversity. There may also be a lack of understanding or awareness of the benefits of diversity in decision making and problem solving. The lack of diversity in leadership positions could also be a reason for this, making it difficult for different perspectives to be heard and implemented. Finally, unconscious bias or a general resistance to change within organizations can also hinder the implementation of diversity initiatives.

"You had found the formula, regardless of the industry, and then you stuck with it. You didn't have the need at all, and you didn't want anyone to question the world formula that you thought you had found." - Lina Maria Pietras

The International Organization of Employers has proven this fact in a study. Isn't it more of a conversation about gender than about diversity in general? The International Organization of Employers found that two thirds of companies with a diverse boardroom were able to increase their profits by up to 15 percent. Pietras emphasizes that it is important not to limit diversity to gender diversity, but to consider all types of diversity that exist in a company.

"In the end, I always find it quite good because you come back to that point and remember that we're all human. Regardless of which label we wear, regardless of how many labels we wear." - Lina Maria Pietras

Companies with a high level of ethnic and age diversity are also more likely to be successful. Diversity as a success factor? Pietras and Underwood explain that the resulting increase in profits can be due to various factors. Such as promoting broader perspectives, increasing employee satisfaction, attracting customers, improving reputation and encouraging innovation. A balanced mix of different backgrounds and realities also leads to more creative solutions. Companies should therefore make greater efforts to promote a diversity of backgrounds and genders in their management teams in order to achieve the best possible results. Pietras also looks to the future, noting how many untouched markets and perspectives there are and how results will change over the next five years as a result of "more diverse diversity".

Prejudices towards certain life circumstances or physical limitations are only slowly disappearing, especially in the corporate context. According to Pietras, the topic of disability is still far from being widely accepted and embraced in many companies. This is also reflected in the reluctance to fill management positions with people with disabilities. They are simply not yet trusted to do this, she says. Diversity and inclusion therefore affect different aspects and functional areas within a company, and so she patiently walks through different points on the way to a more inclusive company.

The general prejudices also differ greatly depending on where the team member's own life reality is rooted. For example, the topic of family status and work-life balance may be more present for a team with many parents than for a team with many young people for whom family planning is still a long way off. It is important to be aware that there are different distances that need to be covered on the way to becoming an inclusive company. Depending on where the acceptance for the respective topic lies.

An important aspect of promoting diversity, equality and inclusion in the company is the right training. One-off training sessions that focus on prevention have been shown to have little impact on changing mindsets and behavior. Instead, it is important to specifically target behavioral change and promote identification with the diversity issue.

A classic, operational training program that is only linked to money does not necessarily lead to an inclusive and diverse company. Therefore, the topic of diversity, equality and inclusion should be included in the strategy process by having the company representatives involved in the strategy process act as role models, thereby broadening perspectives.

Pietras also says that it is important to promote diversity in a team, even if the composition of the team cannot change overnight. It is therefore also an important step to deal with the obvious differences in your own team and to try to understand the underlying factors. To this end, Pietras and Underwood advocate that people should be allowed to argue in order to uncover what is actually behind them.

Both! In the strategy process, it is both a means to an end, to prepare the company for the constantly changing environment, and an end in itself. As it offers the opportunity to bring more perspectives and ideas into a team and thus better exploit the potential of the individual team members.

Pietras also encourages entrepreneurs to ask what the desire for DEI means for their own corporate culture. For example, a more inclusive and diverse corporate culture is key to counteracting the shortage of skilled workers and respecting the voices of all employees. Taking DEI into account in the strategy process is therefore essential not only to achieve economic success, but also to carry out a successful transformation.

"There is not THE diverse organization, we are never done with it. There is no fixed point."

- Lina Maria Pietras

The path to an inclusive company is an experimental one, and there is no fixed ideal. Nevertheless, she believes that medium-sized companies are more willing to take risks and try out new things. They often have fewer resources, have to be more creative out of necessity and are therefore more willing to try out changes in behavior. This often leads to innovative solutions and more effective implementation of diversity strategies.

How can companies that are now asking themselves the question get started? How can we improve our diversity?

Pietras recommends taking a playful approach. One option could be to use virtual or face-to-face cafés to check your assumptions about your colleagues and learn more about their perspectives and backgrounds. Suddenly, behind a sterile job title, an unexpected, colorful reality of life is revealed, which creates much more understanding and insight about one's often long-term colleagues.

Another option can be to ask open questions in a small group, for example five people, that are not on the CV or job title. This can help to develop a better understanding and greater appreciation of the diversity in the team and thus make better use of the potential of the individual team members.

Making the world more inclusive is what drives Lina Maria Pietras every day. She concludes by reminding us that, ultimately, it's about being human that unites us.

SHOWNOTES

Donation for the Children's Eye Cancer Foundation- Keyword:LINArennt: