A company that promotes the diversity of its employees is a more successful company. This insight has long been known, yet the change toward 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 DEI exactly means in a corporate context and she describes what a company's first steps towards diversity can look like.
"Reminding people again to work with people and to see inclusion as a fundamental right of all people" - that is what drives her to do her extensive work. The German-Brazilian holds 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, with her own company Purpose.Hub, advises corporations and medium-sized companies on the topics of diversity, equity & inclusion (DEI). In addition, she is not only a German Diversity Award winner in the Disability category, she also volunteers in many organizations. And she mastered all this with a vision of 4%. Den Lina has been almost blind since the age of 9.
What do we mean by Diversity, Equity & Inclusion in a corporate context?
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 the terms mentioned above mean specifically in a corporate context?
Diversity is the presence of differences in a particular environment. In the workplace, this can mean differences in race, ethnicity, gender, gender identity, sexual orientation, age, and socioeconomic class. It can also refer to differences in physical abilities, such as whether or not one has children. Equity is the process of ensuring that practices and programs are unbiased, fair, and provide equal opportunities for everyone. Inclusion is the practice of ensuring that people feel they belong in the workplace. It means that every employee feels comfortable and supported by the organization in showing 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 well-being 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 more diverse, the more successful a company" - so why the slow change?
Results from McKinsey's 2020 study "Diversity Wins - How Inclusion Matters" showed that companies with a pronounced diversity in terms of gender and ethnicity are more likely to be profitable than average. In this context, companies with high gender diversity are 25% more likely, and companies with high ethnic diversity are even 36% more likely, to be economically more successful. These findings are based on analysis of data from more than 1,000 companies in 15 countries. So how can it be that corporate leaders have been so inattentive to the issue of diversity?
Pietras explains that diversity has been a blind spot in top management and the added value and its productivity have simply been misunderstood. More time spent in decision rounds, longer innovation cycles, and deeply ingrained beliefs about existing homogeneous educational backgrounds have stood in the way of rapid, productive change and understanding the added value of diversity. In addition, there may be a lack of understanding or awareness of the benefits of diversity in decision making and problem solving. Lack of diversity in leadership positions could also be a reason, making it difficult for diverse perspectives to be heard and acted upon. Finally, unconscious bias or a general resistance to change within organizations can also hinder the implementation of diversity initiatives.
"You had found the formula, whatever the industry, and then you stayed in 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
Companies with women in management positions are more successful
The International Organization of Employers proved this fact in a study. Isn't it more of a conversation about gender, then, rather than diversity in general? The International Organization of Employers found that two-thirds of companies that rely on a mixed executive suite increased their profits by up to 15 percent. Pietras stresses that it's important not to limit diversity to gender diversity, but to consider all types of diversity that exist in a company.
"In the end, I think it's always quite good because you come back to the point and remember that we're all human beings. Regardless of what label we wear, regardless of how many of the labels we wear." - Lina Maria Pietras
Diversity as a guarantee for success: How diversity leads to more profit
Companies with a high level of ethnic diversity 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 attributed to a variety of factors. Such as fostering broader perspectives, increasing employee satisfaction, attracting customers, improving reputation and encouraging innovation. A balanced mix of different backgrounds and life realities also leads to more creative solutions. Companies should therefore take greater pains to promote a diversity of backgrounds and genders in their leadership teams in order to achieve the best possible results. Pietras then also takes a look into the future, noting how many untouched markets and prospects there are, and how "more diverse" will change outcomes over the next five years.
Reduce prejudices and create awareness of different distances
Prejudices against certain life circumstances or physical limitations are only slowly dissipating, 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 hesitancy to fill management positions with people with disabilities. They are simply not yet trusted to do so, she relates. 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 biases 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 an inclusive company. And this depends on where the acceptance for the respective topic lies.
Inclusion through the right strategy process: How diversity is incorporated into corporate strategy
An important aspect of promoting diversity, equality and inclusion in the company is the right training. Point-by-point trainings that focus on prevention have not been shown to have much impact on changing mindsets and one's own behavior. Instead, it is important to specifically target behavior change and promote identification with the diversity of the 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 representatives of the company who are 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 team's composition cannot change overnight. So an important step is also to look at the obvious differences in one's own team and try to understand factors behind them. To this end, Pietras and Underwood advocate that people should be allowed to argue from time to time in order to uncover what is actually behind the differences.
Is the topic of "diversity" perhaps only a means to an end or an end in itself?
Both! In the strategy process, it is both a means to an end, to prepare the company for the ever-changing environment, and an end in itself. As it provides the opportunity to bring more perspectives and ideas to a team and thus to 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, an inclusive and more diverse corporate culture is central 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 complete 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 set ideal. Nevertheless, she sees more willingness to take risks among medium-sized companies to try out new things. These often have fewer resources, have to be more creative out of this need, and are therefore more willing to try out behavioral changes. This often leads to innovative solutions and more effective implementation of diversity strategies.
How can companies start asking themselves the question now: How can we improve our diversity?
Pietras recommends taking a playful approach. One option may be to use virtual or face-to-face cafés to test assumptions about one's colleagues and learn more about their perspectives and backgrounds. Suddenly, an unsuspected, colorful reality of life reveals itself behind a sterile job title, creating much more understanding and insight about one's colleagues, often long-standing ones.
Another option may be to ask open-ended questions in a small group, for example five, that are not found in the resume or job title. This can help to develop a better understanding and appreciation of diversity in the team and thus make better use of the potential of individual team members.
Making the world more inclusive is what drives Lina Maria Pietras every day. She concludes by reminding us that what ultimately matters is that being human unites us.
SHOWNOTES
Donation for the Children's Eye Cancer Foundation - Keyword:LINArennt: