Last week we defined DE&I and why now as an exciting time for practice it. This week we're going to explore the case for diversity and the reasons why companies or organizations should invest in DE&I by framing it within this incredible moment we're in now. Because it appears no matter where you are in the world, more organizations than ever are having the difficult conversations about the Isms like racism, sexism, ableism, and how they can create more safe, inclusive spaces for everyone to work in. But let's be honest and talk about what led them to this change. After years of trying to have this conversation organically, a reckoning on race occurred. It was triggered by the onset of a once in a generation pandemic that trapped us indoors and in front of our televisions, where we witnessed hate motivated attacks against Asians and African-Americans for jogging or a bird watching or calling 911 while black. Then we saw the murder of George Floyd. No matter how many times we may have tried to turn away, or how many times we thought it would just go away, this time it didn't. It led us to this moment instead. It led us including some in corporate America, to ask the question, how can I, what can we do to be a part of this moment, create a more equitable world, or in our case, a workplace after centuries of injustices for America's marginalized communities? But if I'm being honest, as much as this emotional moment has helped make the case for diversity, things are starting to simmer down and so was the momentum. With that shift, the case for DE&I, your argument as to why your organization needs to commit it's time, talent, and treasure into people, deserves discussion. While we invariably know that moments like this will recur and ignite another moment. We need the case for DE&I to be front-and-center. Let's discuss what key elements are often used to make the case. In short, the business case for diversity equity inclusion argument is simple. DE&I efforts are good for your organization's bottom line regardless of what that bottom line may be. The more diverse individuals that you have in your organization, the more diverse ideas might emerge, and when diverse ideas emerged and they're combined and manage well, creativity soars leading to benefits for both the individual involved as well as the organization. Sounds like a win-win, right? The problem with the business case approach is that as some of us already know, while having diverse teams may generate diverse ideas, there's a difference between generating ideas and implementing ideas. Experimental studies suggest that such benefits disappear once the team is tasked with deciding which ideas to select and implement, presumably because diversity hinders consensus. Follow this example. Imagine attending a pitch meeting where your team is brainstorming ideas and what they come up with is a retread of other ideas that they've had. Then you put something entirely different, something that you would like because it's something that would cater to your demographic. A demographic, the group usually never caters to while they see their ideas is winners because they know what they like. They see your ideas which are different as a risk because they don't know you or the market that you're describing. How likely do you think innovation will come out of this scenario? Unless the process is managed differently, it won't. Instead, you may want to make the case by reminding the team that the world is changing and changing fast, and if they follow the money, they would find that increased buying power of diverse populations is making the case for DE&I all by itself. According to the Selig Center for Economic Growth, the buying power of people of color has grown exponentially over the past 30 years from a base of nearly 600 billion in 1990, to approximately 1.4 trillion in 2001. In 2020, the combined buying power of blacks, Asian Americans, and Native Americans, is an estimated 2.4 trillion dollars, while the nation's Hispanic community commands 1.5 trillion in spending power, which is larger than the gross domestic product of Australia. The Hispanic market is the largest ethnic market in the US, rising by 212 percent or 500 billion dollars since 2000. Includes more than one out of every six Americans, for African-Americans their buying power has seen an impressive gain jumping from 961 billion in 2010 to an estimated 1.3 trillion in 2018, experiencing a 114 percent increase in buying power. See what happens when you follow the money? You identify new consumers who are looking for products and services that cater to their needs. I know some of you are saying, I don't sell products or services that cater to any particular group, and I get that. I hear you saying to me, "Rich, I like what you're selling, kind sir. But I'm not sure my organization can afford to buy it," and I say, "First, thank you for calling me kind sir. That was unexpected." But if you look at the data, you will see that you can't afford not to buy it, especially when you consider the second most compelling reason for the business case for DE&I is that if you follow recent demographic trends, you will find that the US Census Bureau is predicting our national headcount to be more diverse than ever. Nearly four out of every 10 Americans identifying with their race or ethnicity other than white. That's huge. But that's not the biggest part of the story, the biggest part is that since the first census was taken back in 1790, the past decade will be the first time in history that the white population did not grow. In fact, America's majority population experienced a population loss, a decrease that the Census Bureau was not predicting until after 2024. Now think about that for a second. The data confirms that our country is rapidly diversifying, becoming more multicultural, multiracial, and multiethnic. This data confirms the undeniable truth that now more than ever our success as a country is predicated on the basis of all of us, you and I, all the pieces of the puzzle doing well. But as strong as that argument is, I still have one more to make and it is rooted in the moment that we find ourselves in now. Yes, when you look at the data, it does make sense that as emerging markets rise, your organization should adapt and adopt new clientele or new students. But even if you adapt and attempt to cater to people of color, the feeling today is that people want an authentic connection with the branch they affiliate with. If the adaptation isn't genuine, they take their business to brands that are. Yes, when I go to a store to shop, I do look for great products. When I come to your campus to visit, I do want to hear about the great education that I'm going to get when I arrive. When I go to a job for an interview, yes, please tell me about the bonuses and the benefits. I want to hear all of that. But once I'm engaged, at some point, I'm going to look around and see, do you have a real commitment to catering people like me? Are my unique needs being identified, or is it all on the surface? For instance, you may have products aimed at the Latinx Community, but did you explore the different needs within that community? Like the needs for someone from Brazil or Panama versus someone from Mexico, Cuba, or Puerto Rico. How about persons from China versus persons from Japan, or persons from other parts of Asia like India. These seem like lots of work or hard work, if you want to foster brand loyalty, the case for diversity requires a sense of connectedness. I want to work for and shop with companies that are catering to and thinking about me. Sometimes it's a product, sometimes it's a lesson within the curriculum, sometimes it's a statement that my life and my experiences matter. These inclusive companies are making the case with efforts like this. Simply put, I want to work for them, I want to shop with them, I want them to be successful because I feel that they want the same for me. I want you to be successful too, so when you make the case for diversity, use it all. The energy of the moment, the opportunity to increase the bottom line and use empirically based conclusions. Look at the data. Also consider that people may want to connect with your brand in deeper more fulfilling ways and are waiting for you to invite them in to do so. This effort does not happen overnight. It takes a lot of time listening and nurturing to be inclusive. Next week, we're going to talk about organizations, and how they mature over time to be just that, inclusive. It'll be fun. See you then.
