Sharmila Fowler-Pos
Head of Diversity, Equity & Inclusion
Echo Global Logistics
Abstract
Many DEI leaders in multinational corporations tend to have a narrow view of diversity when it comes to developing global DEI strategies. These leaders define diversity within the context of their home countries, ignoring to a large extent, the need to develop a global mindset on this topic. This practice can lead to challenges when deploying strategies around the world. This paper discusses how to create a global DEI strategic framework which aligns to the overall corporate strategy and at the same time, provides a structure for local markets to create their own DEI strategies. Also, it provides key factors to consider from both the market perspective as well as the corporate headquarters perspective. By following these recommendations, DEI leaders may be able to develop more impactful and relevant DEI programs across all their geographical markets.
The Global/Local Challenge
We live in an interconnected world where global workplace diversity is in fact very local, shaped by a myriad of factors which include historical context, societal norms, shifting demographics, evolving cultures, changing political conditions, and varying government policies. While diversity has become a global imperative, it is important to note that the field of diversity management has its roots in the United States where it has been shaped over the years by the laws of this nation as well as the intentionality of business leaders. For instance, in 1938, President Truman issued an Executive Order officially making discrimination based on “race, color, religion or natural origin” illegal for members of the armed forces. By 1964, the Civil Rights Act made it illegal for any business, private or public, to discriminate specific to employment as well as education. (Brazen, 2016).
With close to 72% of diversity literature published by researchers in North America (Include-Empower, 2015), it is no wonder that diversity topics have typically taken on a U.S.-centric view focusing primarily on addressing race, ethnicity, and gender. However, these perspectives do not necessarily serve organizations well when launching global DEI strategies as many of these topics are not key priorities once you cross borders. “People with disabilities” is not a protective class in many countries, for example. It is important to understand that diversity issues vary considerably from one country to another.
Despite the rapid pace of globalization and international business expansion, many companies initially built DEI plans through a domestic diversity lens, typically overlooking global diversity issues. These companies have grappled with how to build diverse and inclusive workplaces in their own backyards first. When these same organizations are at a point to scale corporate DEI initiatives globally, they encounter added complexity and challenges. When DEI strategies are deployed globally without consideration to local contexts, they may face resistance and can risk failing. This is because DEI professionals at corporate headquarters may appear as if they are imposing a “one-size-fits-all” DEI strategy on market leaders with no regard for local input.
It is vital to create a global DEI strategy that includes the range of diversity found around the world, both the visible such as gender, race, ethnicity, age, and so forth, and the invisible such as sexual orientation, educational background, language ability, thinking styles, geography, and cultural context. So, how does one develop a successful global strategy within a multinational corporation? The best option is to create a DEI strategic framework, aligned with the overall business mission and corporate strategy and adaptable across multiple global cultures. This framework should enable each market to link to the corporate priorities while offering some level of local flexibility. Creatively speaking, it provides each market “freedom within the framework”.
Corporate Perspectives: Key Considerations in Developing a Global DEI Strategic Framework
There are several factors that Corporate DEI professionals at home office must be mindful of to ensure success as they create a global DEI strategic framework. These are discussed below.
Maintain a global mindset
Everyone in the organization must open up to a global way of thinking, moving beyond their own familiar definition of diversity. While U.S. diversity is heavily focused on race, ethnicity, and gender, there is a need to develop a broader diversity lens focused on operating globally. This lens should encompass an openness to recognize other cultures, customs, values, beliefs, and assumptions along with an expanded definition of diversity. Companies can support their employees in developing this global mindset using a multi-faceted approach. Some examples are suggested. Ensure that corporate-wide projects are comprised of global team members as this can begin the process of establishing trusted relationships across markets. Reinforce global awareness and education through company meetings, events, webinars, and trainings (virtual or in-person). Provide a list of resources and links to books, articles, movies, and websites that provide awareness and/or historical context for understanding aspects of diversity and culture. Experiential learning opportunities are also critical. Encourage employees to participate in ERG (employee resource group) events where they can join as allies and expand their knowledge base. Also offer opportunities for employees to volunteer or attend external cultural and community events sponsored by the company or, if possible, allow them to experience markets first-hand through business travel. Consider one-on-one coaching in conjunction with such activities to empower individual actions and to create accountability. “When combined with other DEI efforts, coaching is a powerful and effective method that helps leaders and managers arrive at their own solutions instead of being told the steps they need to take” (Wilkins, 2020).
Ensure commitment across all leaders
While senior leaders at Corporate may be committed to DEI, local leaders may not all be on board, and if they are, they may be so at varying degrees. Therefore, it is critical that the CEO visibly champion the DEI efforts to showcase commitment, transparency, and accountability. This can be accomplished not only internally but also on the corporate website and through other external communications. Additionally, DEI should be embedded throughout the organization, not just in HR. “If your leadership team sees D&I as part of the overall business strategy, not just a standalone program, they’re more likely to champion it—and communicate it clearly” (Galvanize, 2020). Finally, internal messaging should be consistent to maintain credibility and should convey the benefits that the organization is seeking to achieve through its DEI focus.
To ensure alignment among the local markets, it is important to describe the current state of the organization and identify key opportunities that will positively impact the business through DEI perspectives and practices around HR, marketing, supply-chain, and community engagement. Market assessments will then establish baselines in addition to providing direction for local priorities. Both quantitative and qualitative data can be collected and analyzed to assess the employee experience from attraction to separation. Gender data by level for each stage in this lifecycle can provide a global view of the organization, however, it will also be important to review additional data to understand the current state of each market. For example, in the U.S., a race/ethnicity analysis should be conducted to provide a richer understanding of differences by race/ethnicity within the gender category. In some markets, it may make sense to track by age or company tenure while in some markets, there simply may not be additional data available. Employee pulse surveys and employee listening sessions can also provide additional perspectives and a deeper dive into understanding feelings of inclusion and belonging. Taken together, these insights can help build the diversity pipeline, reduce bias in employee development and advancement, and help drive retention. In addition to analyzing the employee experience, it is equally important to analyze customer and supplier data as well as community engagement from a DEI perspective. A thorough analysis of the current state and needs of all stakeholders helps to paint a holistic picture of DEI within the organization and will help inform the DEI strategy. In addition to “talking the talk”, leaders should be “walking the talk” by modeling inclusive behaviors and personally expanding their own global mindsets. For example, a leader leaving work early to attend a child’s school event is modeling inclusivity toward working parents. A leader sharing new learnings from a cultural event they attended is modeling a global mindset.
Create a governance structure to include everyone
Ideally everyone in the company should “own” DEI but realistically, it is often necessary to create a governance structure to create, manage, and track DEI progress. Senior leadership should actively lead the DEI governance structure which will signal a strong commitment from the company to the DEI strategy. The structure should also include a diverse, cross-functional group of employees from all levels representing various market perspectives to ensure representation and buy-in. This group should be able to review the current state of the organization, help define opportunities for improvement, and suggest impactful DEI goals and timelines. This input can then inform the Global DEI Strategic Framework development. Lastly, the governance group should be able to track and measure progress.
To ensure inclusion and allow for everyone to feel that they can affect change, DEI initiatives and progress must be communicated regularly and must reach all stakeholders within the organization. Not only to home country employees but to everyone in all markets. While communicating, keep in mind cultures and languages, including regional dialects, to make certain that spoken and written communications are not misinterpreted. Be aware of nonverbal cues especially when on video calls or during in-person meetings. In addition, avoid idioms used in the home country. For instance, phrases such as “a breath of fresh air” or “with flying colors” are familiar to Americans but may be misunderstood in other parts of the world. Lastly, invite local leaders to shape the messaging and/or deliver it to their markets.
Local Perspectives: Key Considerations in Aligning Local DEI Strategies to the Global DEI Strategic Framework
After creating a Global DEI Strategic Framework, Corporate DEI professionals must prioritize support for local markets in the creation and alignment of their local DEI strategies. In doing so, it is critical for these home office professionals to consider the various market factors at play. These factors include 1) definition of diversity, 2) stage in the DEI journey, 3) cultural values, 4) legal considerations, and 5) data consistency issues. [Figure 1, Local Factors that can Impact a Global DEI Strategy]
How does each market define diversity?
“How do you define diversity in your market?” should be the first question asked of local market leaders. You will find out that there is no single definition of diversity, rather, multiple definitions exist. Each definition stems from each leader’s subjective framework and is influenced “by national context, political agenda, dominant culture, religion, and gender, among other factors” (Global Diversity Primer, 2011, p. 217). While gender is generally an underrepresented group globally, it is not the sole focus. Global diversity necessitates understanding the organization’s global reach and the cultural beliefs and assumptions associated with doing business in any given country, especially as it relates to their perspectives on diversity. For example, while race is a key topic in the United States as well as many other countries around the world, linguistic diversity is prevalent in Canada and Europe. Religion plays a big role in the Middle East, Africa, and India while migrant workers (who introduce language and other cultural differences) continue to be a priority in many Western European countries, as well as in Australia and New Zealand (Galvanize, 2020).
It is also important to understand the terminology used in various countries, especially around race-based diversity. For example, “People of Color” and now BIPOC (Black, Indigenous, People of Color) which is gaining in popularity, are terms used in the United States. BAME (Black, Asian, and Minority Ethnic) is the term used in the U.K. and “Visible Minority” is typically used in Canada. Understanding local definitions and terms will help in prioritizing key DEI initiatives locally as well as aligning to the overall corporate goals.
Assess where each market is in their DEI journey
To recognize progress, it is important to understand the DEI maturity of each market and where they are in their DEI journey. Since global DEI is a complex process and highly unique at the local levels, market leaders must assess internal and external factors to determine where they are in the DEI continuum and move at their own pace. Diversity MBA, a professional business organization, has identified seven stages that organizations move through in their diversity and inclusion journeys. These seven stages begin with indifference, and then move through incentive, information, indebtedness, initiatives, influence, finally reaching integration. (McElvane, 2020). A study of 800 leaders around the world, conducted by the University of North Carolina Kenan-Flagler Business School and the Human Capital Media Research and Advisory Group (Ideas for Leaders, #625), identified five stages of DEI maturity within organizations: underdeveloped, beginning, intermediate, advanced and vanguard. Research findings indicated significant disparities in attitudes at both ends of the spectrum. For example, 77.2% of respondents in organizations with higher DEI maturity levels saw value in appreciating individual differences compared to only 40% in organizations just beginning their journey (Ideas for Leaders, #625). DEI professionals must be attuned to each market’s stage in the journey keeping these types of models in mind and then support these markets where they are with the appropriate tools and resources.
How do cultural values influence DEI focus and progress?
The concepts of DEI are much more understood and accepted in countries with high individualistic cultures like the U.S., Canada, W. Europe, and Australia where greater value is placed on individual achievement and uniqueness. The American proverb, “The squeaky wheel gets the grease” illustrates the concept of individualism and the importance of speaking up and standing out. In contrast, collectivist countries such as China, Brazil, India, and Japan encourage group membership and conformity and may be less willing to embrace many concepts of DEI. The Japanese proverb, “The nail that sticks out gets hammered down” highlights collectivist thinking and the importance of “sameness”.
An HBR study on corporate culture assessed over 12,800 responses from around the globe on eight styles of organizational culture: learning, engagement, results, authority, purpose, caring, order, and safety. These styles were then mapped onto two dimensions: how people respond to change (flexibility vs. stability) and how people interact with one another (independence vs. interdependence). While caring and results were the most salient styles overall, the study found remarkable differences between countries (Cheng, J. Y., 2020).
“Firms in Western Europe and North/South America were inclined toward a high level of independence. Western European and North American firms especially focused on results, goal-orientation, and achievement. Teams in South America showed a propensity toward fun, excitement, and a light-hearted work environment. In Asia, HBR found many firms that prioritized order through a cooperative, respectful, and rule-abiding workplace” (Galvanize, 2020, p. 1).
These findings point to the need to adapt strategies and processes across markets. A DEI approach that is highly successful in one market may not yield the same results in another.
What is the legal environment in each market?
Each global market has different rules and regulations around diversity. Numerous privacy laws exist in many countries limiting access to collecting and storing data about employees. Countries such as the U.S., the U.K., South Africa, and Japan permit positive or affirmative action. However, there are limitations to these laws as companies in some markets like the U.K. cannot mandate diverse candidate slates (DLA PIPER, 2020). Many markets require legal reporting by gender and disability. France passed a law in January 2020 that obligates companies with at least 20 employees to ensure that 6% of total employees are people with disabilities (Shepard, 2019). In addition, not every diverse group has the same rights across markets. For example, same-sex couples are criminalized in 73 countries (Galvanize, 2020). Working closely with the legal teams in each market is essential as laws continue to change.
Challenges with data consistency across operating markets
Data can vary across markets, thus, it is important to ensure consistency of data when rolling up to Corporate for the purposes of creating corporate scorecards and other tracking initiatives. For example, levels within the company may differ in title or rank across markets. A level 5 position in the U.S. may not be equivalent to level 5 in Australia. A VP in one market may be the equivalent of a senior director in another. Reaching out to local HR leaders can help resolve these types of data disparities.
Summary
Diversity issues vary greatly by market, making it important to allow for the localization of DEI strategies in order to reflect different cultural contexts. This can be accomplished by creating one global DEI strategic framework and allowing for multiple strategies to emerge across markets. Given that markets are at different starting points in their journeys, it is also important to have the desired outcomes in mind for the organization globally and locally. Each market can then craft their own DEI work plans which ultimately ladder-up and align with the corporate strategy.
As Corporate DEI professionals work with global markets to align strategies to the global DEI strategic framework, they should continue to expand their knowledge base by listening rather than dictating to local markets. They should be able to provide expertise, strategic alignment, and support while in-market leaders should offer market knowledge and sensitivity to local issues. Market leaders should be able to share how their own markets define diversity, assess where they are in their DEI journey, provide cultural values and context, discuss legal issues, and resolve data consistency matters. These market leaders should be committed and aligned with senior leaders at Corporate on the importance of DEI, however, they need to own their narratives and be empowered to act in ways that make sense locally. Lastly, all employees should be updated regularly on the company’s DEI progress, feel empowered to advance DEI within the organization, and be encouraged to participate in DEI education and/or initiatives to advance the cause and impact the organization.
A well-designed global DEI strategic framework which is aligned to the overall business mission and corporate strategy and allows for local DEI strategy customization should be supported by leaders and employees around the world and will certainly contribute to a sustainable competitive advantage.
References
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Cheng, J. Y. and Groysberg, B. (2020, January 8). How Corporate Cultures Differ Around the World. Harvard Business Review. hbr.org/2020/01/how-corporate-cultures-differ-around-the-world
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Global Diversity Primer (2011, Chapter 14). Diversity Best Practices. www.diversitybestpractices.com/sites/diversitybestpractices.com/files/import/embedded/anchors/files/diversity_primer_chapter_14.pdf
DLA PIPER (2020, December 18). Be Global: Global employment law trends and predictions at the close of an extraordinary year. www.dlapiper.com/en/uk/insights/publications/2020/12/global-employment-law-trends-and-predictions-at-the-close-of-an-extraordinary-year/
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Shepard, L. (2019, December 4). French Law Requires Companies to Employ Workers with Disabilities. SHRM. www.shrm.org/resourcesandtools/hr-topics/global-hr/pages/france-employ-workers-with-disabilities.aspx
Steele, Rebekah (2012, May 30). Establishing a Global Framework for Diversity and Inclusion. rebekahsteele.com/blog/2020/8/4/establishing-a-global-framework-for-diversity-and-inclusion
Steele, Rebekah (2012, June 8). Balancing Global and Local Interests in a Multinational D&I Strategy. rebekahsteele.com/blog/2020/8/4/balancing-global-and-local-interests-in-a-multinational-dampi-strategy
Wilkins, LaTonya (2020, March 27). How to use Coaching to Support Diversity and Inclusion. trainingindustry.com/articles/diversity-equity-and-inclusion/how-to-use-coaching-to-support-diversity-and-inclusion/
Figure 1
Local Factors that can Impact a Global DEI Strategy
