As I drove to the venue of the evening discussion organized by NIPM Karnataka chapter I was hoping that the talk would not be too similar to the one I had attended and written about on "Gender diversity" some time back. (https://hrdian .blogspot.com/2018/04/breaking-barriers-to-gender-diversity.html ). My apprehensions were misplaced as the day's discussions by Ms Anjali Pais was on the more comprehensive aspects of 'Diversity' of which gender is one among many that impact business.
Anjali is the Founder and Managing Principal, of Aquilar Strategic Services. She has experience both in corporate and consulting roles in HR for a period of over 16 years.She was the area HR Head, for India, Srilanka and bangladesh of a Danish MNC before founding her company. The speaker started out by saying that psychology has been her passion and that it considerably influenced her approach to work and living. She said that diversity is not possible until we accept it in spirit. There is a need to accept, appreciate and embrace the concept of diversity.
Before going into the specifics of diversity as a key factor affecting business, the speaker discussed broadly the subject of diversity, pointing out that diversity is the very essence of life. As for example in nature, the natural environment of wild animals, rocks, forest and in general, those things that has not been substantially altered by human intervention provides the diversity and balance. We can afford to disturb this balance of the ecosystem only at at our own peril. Anjali also called attention to the fact that man is a sentient being (capable of experiencing things through its senses) and it is important to nourish this basic nature of feeling pain, hunger, pleasure, the environment etc. which enables him to be more inclusive and accepting of other beings around him.
In terms of human beings, diversity would mean understanding that each individual is unique, and recognizing individual differences. This diversity can be along the dimensions of race, ethnicity, gender, sexual orientation, socio-economic status, age, physical abilities, religious beliefs, political beliefs, or other ideologies.When an organization embraces diversity, it can broaden its skill base, become more competitive and innovative. Divergent opinions could mean more energy and an accepting environment.
A McKinsey study on diversity revealed that companies with more diverse work forces performed better financially. In their latest report, Diversity Matters, Mc Kinsey examined proprietary data sets for 366 public companies across a range of industries in Canada, Latin America, the United Kingdom, and the United States. It also reported that diverse boards of companies achieved 53% higher return on investment and 14% more Ebitda.
Anjali said that as per the Credit Suisse findings, boards with women on the board, compared to men only boards, generated higher ROE ( Return on equity), lower debt to equity ratios. higer price/book value and and higher average net income growth. A study with mock juries found that panels with diverse members (Black and white members) uncovered more angles and deliberated broader to come to a decision than white only panels. Companies with diversity had better stock piling and had 58% more accurate pricing decisions. New and varied view points facilitate better decision making and results.
A study conducted by Northwestern and BYU by giving the task of solving a murder mystery, found that the groups with diverse sets of participants were more successful than those with uniform members. Research papers written by diverse groups receive more citations and had higher impact than papers written by the people from the same ethnic group.
The speaker then discussed the situation in India and the extent to which bridging the diversity gap in the work place has been implemented in Indian companies. In this connection she drew attention to the Boston consulting group (BCG) study. According to its report titled "From Intention to Impact", the "Indian companies recognize the need for a more diverse work force and have initiated programs to drive inclusion. While there have been some success stories (Axis bank, Dr Reddys laboratories, Hindustan, Unilever), progress remains slow overall. Companies have launched a number of diversity initiatives and feel 'they are doing the right things' yet, they have not made substantial progress."
The study reveals that although women are equally ambitious as men, they account for only 17% of the senior management positions; only 3% of CEOs in India are women. 60% of women respondents agree that the company is doing a lot to improve gender diversity but only 29% of women have actually benefited. As against 80% men, only 56% of women feel that the entire management team is committed to gender diversity.
Women perceive advancement as the biggest obstacle to gender diversity. Women who participated in the study feel that bias in promotions and evaluation are key obstacles to advancement- " Men are handpicked for future roles." Poor implementation is the primary reason that 50% of initiatives have not been effective. It is to be noted that the Indian context discussed was limited to gender diversity. Perhaps more studies are necessary to understand inclusion levels of the differently enabled, regional, social and other diversities in India.
The speaker rounded off her talk with the observation that "our assumptions influence our decisions". Often, it is assumptions based on limited data and personal perceptions that come in the way of openness to a diverse cuture in the organization. She related her own experience when she had demonstrated preparedness to take the risk and a willingness to work in various functions such as operations, sales and HR. Initially, many based on traditional beliefs, felt that being a non engineer she would not be able to sell and contribute to supply chain sales. They believed that only engineers can speak tech specs. However, Anjali proved them wrong and became an achiever touching quite a few milestones.
As a parting gift, the speaker played a video highlighting the fact that there are many type of intelligences ( Musical-rhythmic and harmonic. Visual-spatial, Verbal-linguistic, Logical-mathematical, Bodily-kinesthetic, Interpersonal, Intrapersonal, Naturalistic) and for best results we need to concentrate on enhancing all of these intelligences. Currently, the focus is only on one type of intelligence viz Logical-mathematical. Alienation from one another is the result of this trend. As people see the world in different ways, it is imperative to have a diverse culture which provides the opportunity to empower all forms of intelligence/ perspectives resulting in a more holistic decision making and wholesome results.
Finally I would like to end this post with a quote of Verna Meyers, American author and cultural innovator, that the speaker shared. To my mind, this quote is very significant and important as it underscores the fact that diversity and inclusion cannot and should not be seen in isolation - "Diversity is being invited to the party. Inclusion is being asked to dance." Not much will be gained if we recruit people with diverse backgrounds but do not include or involve them in the key decision making and running of the organization....
Anjali is the Founder and Managing Principal, of Aquilar Strategic Services. She has experience both in corporate and consulting roles in HR for a period of over 16 years.She was the area HR Head, for India, Srilanka and bangladesh of a Danish MNC before founding her company. The speaker started out by saying that psychology has been her passion and that it considerably influenced her approach to work and living. She said that diversity is not possible until we accept it in spirit. There is a need to accept, appreciate and embrace the concept of diversity.
Before going into the specifics of diversity as a key factor affecting business, the speaker discussed broadly the subject of diversity, pointing out that diversity is the very essence of life. As for example in nature, the natural environment of wild animals, rocks, forest and in general, those things that has not been substantially altered by human intervention provides the diversity and balance. We can afford to disturb this balance of the ecosystem only at at our own peril. Anjali also called attention to the fact that man is a sentient being (capable of experiencing things through its senses) and it is important to nourish this basic nature of feeling pain, hunger, pleasure, the environment etc. which enables him to be more inclusive and accepting of other beings around him.
In terms of human beings, diversity would mean understanding that each individual is unique, and recognizing individual differences. This diversity can be along the dimensions of race, ethnicity, gender, sexual orientation, socio-economic status, age, physical abilities, religious beliefs, political beliefs, or other ideologies.When an organization embraces diversity, it can broaden its skill base, become more competitive and innovative. Divergent opinions could mean more energy and an accepting environment.
A McKinsey study on diversity revealed that companies with more diverse work forces performed better financially. In their latest report, Diversity Matters, Mc Kinsey examined proprietary data sets for 366 public companies across a range of industries in Canada, Latin America, the United Kingdom, and the United States. It also reported that diverse boards of companies achieved 53% higher return on investment and 14% more Ebitda.
Anjali said that as per the Credit Suisse findings, boards with women on the board, compared to men only boards, generated higher ROE ( Return on equity), lower debt to equity ratios. higer price/book value and and higher average net income growth. A study with mock juries found that panels with diverse members (Black and white members) uncovered more angles and deliberated broader to come to a decision than white only panels. Companies with diversity had better stock piling and had 58% more accurate pricing decisions. New and varied view points facilitate better decision making and results.
A study conducted by Northwestern and BYU by giving the task of solving a murder mystery, found that the groups with diverse sets of participants were more successful than those with uniform members. Research papers written by diverse groups receive more citations and had higher impact than papers written by the people from the same ethnic group.
The speaker then discussed the situation in India and the extent to which bridging the diversity gap in the work place has been implemented in Indian companies. In this connection she drew attention to the Boston consulting group (BCG) study. According to its report titled "From Intention to Impact", the "Indian companies recognize the need for a more diverse work force and have initiated programs to drive inclusion. While there have been some success stories (Axis bank, Dr Reddys laboratories, Hindustan, Unilever), progress remains slow overall. Companies have launched a number of diversity initiatives and feel 'they are doing the right things' yet, they have not made substantial progress."
The study reveals that although women are equally ambitious as men, they account for only 17% of the senior management positions; only 3% of CEOs in India are women. 60% of women respondents agree that the company is doing a lot to improve gender diversity but only 29% of women have actually benefited. As against 80% men, only 56% of women feel that the entire management team is committed to gender diversity.
Women perceive advancement as the biggest obstacle to gender diversity. Women who participated in the study feel that bias in promotions and evaluation are key obstacles to advancement- " Men are handpicked for future roles." Poor implementation is the primary reason that 50% of initiatives have not been effective. It is to be noted that the Indian context discussed was limited to gender diversity. Perhaps more studies are necessary to understand inclusion levels of the differently enabled, regional, social and other diversities in India.
The speaker rounded off her talk with the observation that "our assumptions influence our decisions". Often, it is assumptions based on limited data and personal perceptions that come in the way of openness to a diverse cuture in the organization. She related her own experience when she had demonstrated preparedness to take the risk and a willingness to work in various functions such as operations, sales and HR. Initially, many based on traditional beliefs, felt that being a non engineer she would not be able to sell and contribute to supply chain sales. They believed that only engineers can speak tech specs. However, Anjali proved them wrong and became an achiever touching quite a few milestones.
As a parting gift, the speaker played a video highlighting the fact that there are many type of intelligences ( Musical-rhythmic and harmonic. Visual-spatial, Verbal-linguistic, Logical-mathematical, Bodily-kinesthetic, Interpersonal, Intrapersonal, Naturalistic) and for best results we need to concentrate on enhancing all of these intelligences. Currently, the focus is only on one type of intelligence viz Logical-mathematical. Alienation from one another is the result of this trend. As people see the world in different ways, it is imperative to have a diverse culture which provides the opportunity to empower all forms of intelligence/ perspectives resulting in a more holistic decision making and wholesome results.
Finally I would like to end this post with a quote of Verna Meyers, American author and cultural innovator, that the speaker shared. To my mind, this quote is very significant and important as it underscores the fact that diversity and inclusion cannot and should not be seen in isolation - "Diversity is being invited to the party. Inclusion is being asked to dance." Not much will be gained if we recruit people with diverse backgrounds but do not include or involve them in the key decision making and running of the organization....
Yes this is how diversity should be understood and explained. Her speech depicted her understanding on the subject. The examples are interesting. I liked the quote that you ended the post with...yes inclusion indeed means you are invited to dance. But my question is, and this is my concern too, that even if the top level management is convinced and is willing to invite 'other' people to dance, it is the grass-root (I hate using the term, but here it is for a better understanding) and the middle-level that poses the challenge. HR should listen to the conversations that float around freely at the dining tables and breakout areas with a view to not 'punishing' the workforce who spread intolerance, but to take note of the mindset and impart focused training as to how these attitudes of intolerance and racism can be counter-productive for the businesses. Top level management is generally the cream and they are never the problem... it is the middle level and the ones below that pose a threat to diversity.
ReplyDeleteThank you for sharing your thoughts Supratik! As I see it, the buck stops at the top. If the top management is serious of any initiative including diversity, it is their responsibility to see it through. They can't be in leadership position and crib that middle management or 'grassroot' is not listening to them.
ReplyDeleteComing back to the subject of discussion viz 'Diversity' as the title of the BCG report " From intention to impact" suggests, a lot more needs to be done as far as India is concerned.
This is so timely. Women in the workforce and the related biases are the elephants in the room. I have been a part of some organisations where gender roles are so blatantly forced upon the employees. Such discussions are much needed to make a difference. As usual Rajeev weaves an important fabric in his inimitable style
ReplyDeleteThank you so much Saranya! It is always a pleasure to receive your feedback.
ReplyDeleteNice read Rajeev.
ReplyDeleteRare rapatuering skills put to good use. Congrats and keep going....
I liked the line
Often, it is assumptions based on limited data and personal perceptions that come in the way of openness to a diverse cuture in the organization.
So true.
Also the imporance of the adpect of inclusion in the dimemsion of diversity well brought put.
Thank you so much Padmini.So happy to reveive your feedback!
DeleteThe findings that the companies with diverse cultural work force performed better is quite interesting one. I feel more such studies should be conducted in Indian context before coming to a final conclusion.
ReplyDeleteThanks Mr Rajeev for sharing this with us
Thanks a lot Mr Shivkumar for sharing your thoughts!
DeleteInteresting talk, well penned. Leaving aside the corporate/business angle, diversity immensely enriches life. Thank you for sharing.
ReplyDeleteThank you so much for your feedback Malsawmi!
DeleteNice write-up on an interesting topic, Rajeev.
ReplyDeleteThank you so much unknown.Happy you liked the post!
DeleteI like the statement " This diversity can be along the dimensions of race, ethnicity, gender, sexual orientation, socio-economic status, age, physical abilities, religious beliefs, political beliefs, or other ideologies."
ReplyDeleteI agree with the above. But some of the organisations distill this complex topic into a simple one of gender!
Thank you for you response Nona. You are right. In India we are so way behind in terms of gender itself that we are yet to pay attention to other forms of diversity.
DeleteThis is really very nice post you shared, i like the post, thanks for sharing.. יחסי ציבור לציירים
ReplyDeleteThanks a lot Edward Brown for your appreciation and feedback! Sorry, I saw your comment only now and hence the late response.
Delete