Diversity is more than representation. It’s about the valuable insights and unique perspectives that collaborative thinking brings, especially with people from different backgrounds, cultures, or disciplines. Diversity at its best fosters unconventional thinking.
Research consistently demonstrates the positive impact of diverse teams. A study by McKinsey & Company found that companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability than companies in the fourth quartile. Similarly, companies in the top quartile for ethnic and cultural diversity on executive teams were 36% more likely to have above-average profitability.
Diversity is a must if you want your company to be innovative, competitive, and cutting-edge. In my experience, I found that when I was part of a diverse team of colleagues (diverse in age, experience, race, gender, etc.), I had a deeper learnings and we our outcomes were more successful.
However, diversity for the sake of diversity is not what creates high-functioning teams. Mandating DEI and following best practices checklists is not in the best the interest of the individual or the company they work for.
Hear me out:
The goal of such DEI mandates and quotas is to ensure that people from historically excluded backgrounds are not continuing to be excluded in the workplace. However, these one-size-fits-all programs and requirements can actually do the opposite, erasing the individual and the complexity of the team in order to simply check the right box.
When leaders do not take an intentional approach to investing in their teams and the individuals they have hired, no quota or mandate will ever make them successful. Success comes from creating opportunities for learning, freedom to compete, and challenging individuals in ways that will really make them grow.
It can also sometimes mean opting out of programs created with DEI in mind.
My own entrepreneurial journey reinforced the belief that true success requires a competitive edge. As a young entrepreneur, I prioritized putting myself in the room with people that pushed me to be better.. While I was eligible for programs designed to support women-owned businesses, I chose to build a strong foundation and secure funding through traditional venture capitalists to compete in the open market.
As a startup, I had the opportunity to benefit from being classified as a minority-owned business, which would have given me easier access to government loans and preferential vendor status for government contracts. Instead, I focused on gathering marketing data, generating sales leads, finding office space, and negotiating with lawyers and contractors. Despite the temptation, I never pursued the government programs.
When I first started my company, our first product idea came from my partner, and of course we needed a design review. While working for my previous employer, I learned that in the process of a design review, inviting cross-departmental teams to provide diverse opinions and fresh perspectives is crucial. Sometimes going the unconventional route is the one that pays. In our two man company My partner presented his idea, and I questioned every component of his design. If it was unnecessary, he removed it, saving us many pennies. Our product was so minimal that a reseller once asked if it was a mock-up. The result was a 65-70% gross margin, meaning we made 65-70 cents on every dollar of sales. That made our product competitive in the open market. Focusing on being competitive is not easy when we get tempted by relying on government programs or having to raise venture money too early when I would have had to dole out higher equity. This helped us not just survive but thrive in the early years.
In my experience, the intensity to compete is what has brought me most of my success.
I believe from day one, an aspirational kid or young adult should learn to become a better competitor. When minorities get recruited for certain positions simply because they fit the bill of standards for a DEI quota, they are being shielded from real competition, which is bad for the organization AND the individual.. It is also bad for minorities whose performance standards are excellent, as it will be assumed that they got in due because of a DEI quota. Additionally, the burden of implementing these requirements make our private and government industries less efficient in the global landscape.
If the goal truly is for minorities to succeed, then the focus needs to be on them as an individual and how you as a leader can get the best out of them. No quota or program under DEI will ever suffice.
8 responses
Well done, Vinita, this is a great explanation of true DEI goals.
Well intended but does not solve the real issue.
Thanks, Gay.
Vinita
Agree with you that DEI should be about more than representation and a “one size fits all “check the box mandate driven exercise . But let’s not kid ourselves. Without those mandates and quotas the vast majority of employers would play safe ,go for the safe bet of hiring “one size fits all’ people like themselves and not even think of considering people from historically excluded backgrounds . Thats why they were historically excluded. The power of the elites and incumbencies will continue . The enlightened approach you rightly advocate will never even get considered .🙏
I agree with your assessment of DEI and the suggestion of what needs to be done to improve the life of those who have been historically underprivileged. At the same time, we do need some programs (funding) to motivate the underprivileged so that they can compete on equal footing without being part of a quota system.
Well said, Vinita. This correlates well with my own experience. I was delighted that we liked to call our company “The United Nations of Silicon Valley” and I have no doubt that that helped us to succeed. On the other hand, we never stated diversity targets and I don’t think we really had any in mind. I certainly did not. Perhaps our immigrant founder and some early immigrant employees made us appear open and attracted minorities to our hiring programs – hard to tell – but it was a meritocracy and I think everyone saw it as such.
Experiences of life teach us a lot.
EXCELLENT VINITA! I AGREE 100% WITH YOUR POINT OF VIEW ON DEI. IN FACT, IN MY MANAGERIAL ROLE AT AMERICAN EXPRESS, I INSISTED ON DIVERSITY AT ALL THE UNITS WITH RESPONSIBILITY FOR PROFITABILITY OF THE COMPANY. WELL DONE VINITA!