More and more comments have been made about how DEI programs in companies,  government, or society at large are the cause of failures, mishaps, and  underperformance, but nothing can be further from the truth!

 

Over the years, analysis of DEI efforts in companies in the US and across the globe  has shown clear evidence that diversity in corporate leadership and on boards has a  positive impact on company performance.

 

McKinsey has studied these initiatives extensively. In their 2020 report, “Diversity  Wins: How Inclusion Matters,” the third of a series spanning a decade, the  company declares that “The case for diversity, equity and inclusion (DE&I) is  stronger than ever” (Diversity Wins: How Inclusion Matters, McKinsey & Co., May 19, 2020) 

“Using 2014 diversity data,” McKinsey reports, “we found that companies in the  top quartile for gender diversity on their executive teams were 15 percent more  likely to experience above-average profitability than companies in the fourth  quartile. In our expanded 2017 data set, this number rose to 21 percent and  continued to be statistically significant. For ethnic and cultural diversity, the 2014  finding was a 35 percent likelihood of outperformance, comparable to the 2017  finding of a 33 percent likelihood of outperformance on EBIT margin; both were  also statistically significant.”

 

“The penalty for bottom-quartile performance diversity persists,” the report  continues. “Overall, companies in the bottom quartile for both gender and  ethnic/cultural diversity were 30 percent less likely to achieve above-average  profitability than were all other companies in our data set. In short, not only were  they not leading, they were lagging.” 

Credit Suisse's “Gender 3000” reports have found that companies with more  women on their boards have better financial performance. The reports also show  that gender diversity in leadership positions is associated with improved  Environmental, Social, and Governance (ESG) performance. 

In short, facts make it clear that DEI initiatives improve performance. We see their  positive effects in the diverse corporate leadership embodied by the likes of Mary 

Barra (CEO - GM), Karen Lynch (CEO - CVS), Carol Tome (CEO - UPS), Lisa  Su (CEO – AMD), Marvin Ellison (CEO - Lowe’s), Thasunda Brown Ducket  (CEO - TIAA), and Craig Arnold (CEO - Eaton). This generation of leaders  follows such highly successful CEOs as Kenneth Chenault (Retired CEO - AmEx),  Indra Nooyi (Retired CEO - Pepsi), Richard Parsons (Former Chairman of  Citigroup), and many others.

 

While much of the research on DEI has been done in the corporate sector, why  would we assume that it would lead to different results in the public sector? Would  anybody challenge the abilities and talents of Madeline Albright, Sally Ride, Mae  Jamison, or Neil deGrasse Tyson?

 

We are a diverse country, whether we want to acknowledge it or not: almost 42%  of the US population in 2024 was non-white; almost 51% was female; and almost  5% identified as LGBT. 

One must ask, why is there such a visceral debate and backlash about DEI and  does it make any sense? Why are we trying to go back to excluding half of the talent in this country? 

As an African American woman who grew up in the segregated South, I came of  age at a time when DEI efforts were just beginning to open doors to people like  me. I pursued the opportunities that were offered, always knowing that I had to  produce, often better than my counterparts. I knew that I had to prove that I  deserved to be where I was. As a result, I reached the highest levels of leadership, both in the corporate world (C-Suite and Corporate Boards) and the nonprofit  sector. DEI allowed me to get a foot in the door, decades of hard work led to my  success.

 

I know from my own experience, and studies have shown, that DEI is not the cause  of our failures in this country, it is the cause of our success!

 

Joyce M. Roché 

Retired CEO of Girls Incorporated  

Author of The Empress Has No Clothes: Conquering Self-Doubt to Embrace Success