The 5 principles – Riding the waves of personal and professional high performance

Leadership development riding the waves

Our always-on world takes a heavy toll on our work-life balance. As technology blurs the gap between home and work, we find it exceedingly challenging to disengage. We work longer hours than ever before [1], yet cannot focus, as we continuously multitask and are constantly distracted. As if that was not bad enough, we overburden our mental capacity in endless meetings and tight deadlines yet have little regard for our bodies, reducing sleep to the bare minimum, not exercising enough and not paying sufficient attention to how, when and what we eat.

This unceasing state of overwork causes an emotional overload, increasing toxicity, fear, stress, exhaustion and burnout, as we unsuccessfully try to quiet down the noise in our heads by continually increasing our medication.

And in all other aspects of our life—we survive.

We survive mentally, physically, emotionally and spiritually.

We survive at home and at work.

Survive. Not thrive.

Survival is our basic instinct, our baseline, but in order to thrive, we need to exert additional energy, and most of us simply don’t have that extra energy to spare. We, literally, gave at the office, and we have nothing else to give.

Most people and organizations struggle with managing their time. Yet, to continuously sustain high levels of performance in today’s world, managing our time is not enough. We need to focus on managing our energy.

In this article, I explain the five basic principles of managing and expanding our energy resources to achieve sustained high performance both in our personal and our professional life. I conclude with a list of practical tips.

Principal 1: The four energy resources

Contrary to common belief, we do not have a single energy resource.
We actually have four different resources:

  1. Physical
  2. Emotional
  3. Mental
  4. Spiritual

The physical resource is our body’s power, stamina and resilience. To strengthen our physical resources, we need to take care of our body through exercise, a balanced healthy diet, and an ample amount of sleep every night.

Our feelings fuel the emotional resource, what we feel about ourselves, our view of the world around us, and the connections we have with others. For example, our emotional resources can be depleted much quicker if we live with an alienated spouse or work for an overbearing, demanding boss as opposed to living in a loving relationship and a caring and nurturing work environment.

The mental resource is what we use when we think, create and innovate. It is what allows us to work, concentrate, make decisions, self-control, learn and focus for extended periods. When this resource is depleted, we quickly lose focus and clarity, experience negative thinking and a sense of tunnel vision.  Research shows that when people are under stress, they are unable to use their mental resources efficiently. In one such study, people under stress showed a loss in their mental capacity equivalent to 13 points on their IQ test [2].

Our Spiritual resource is our connection with that which is greater than us. For some people, it is God; for others, their purpose, vision or dream. It is what elevates us and, in terms of work, turns a job into a calling. In essence, the Spiritual resource allows us to answer the most important question: “What is my special gift to this world?”

As we will see in the following principles, understanding we have not one but four different resources allows us much more flexibility and efficiently in using our energy resources.

Principal 2: Use it or lose it; abuse it and lose it

Principal number 2 is made of two opposing rules:

  1. If you abuse a resource – you deplete its energy and are left exhausted
  2. If you do not use a resource – you deplete its energy and are left exhausted

Just like muscles, over-exercising a resource may cause pain, fatigue and lead to long-term injury. In contrast, under-exercising a resource makes us feel sluggish and heavy while creating atrophy.

These two opposing yet complementing rules urge us to be attentive to the ebbs and flows of our energy, allowing us to engage in the task at hand entirely and then fully let go when these resources need to recover and rebuild.

Unfortunately, most people are not aware or attentive to these energy levels. Many managers I work with had gone through periods of burnout. They often share the experience of working themselves to the limit, for long periods of time with no breaks. They work that metaphorical muscle to its last drop of energy until it gives way, and they have nothing else to offer.

Over 500 years ago, Leonardo da Vinci commented on the ideal way of working:

“Every now and then go away, have a little relaxation, for when you come back to your work your judgment will be surer…since to remain constantly at work will cause you to lose power of judgment.”

In my workshops, I often ask participants to share instances where they experienced important breakthroughs in their life. The stories are often very similar, e.g., “during my walk”, “in the shower”, “when I was washing the dishes”.

Yet, Showers are not the source of our creativity; otherwise, we would all experience breakthroughs once every evening. We get our ideas and breakthroughs because we first deeply engage with the task at hand and then fully disengage in the shower. Both engagement and disengagement have a crucial role in this process.

When we learn to practice full engagement followed by complete disengagement intentionally, we allow our internal natural resources to bring out the genius in us.

“We live in a world”, writes Jim Loehr,” that celebrates work and activity, ignores renewal and recovery, and fails to recognize that both are necessary for sustained high performance.” [3]

Principal 3: Timing is everything 

As we saw in principle 2, we must use our energy to the fullest yet not abuse it. However, this is not enough. To be able to engage with our resources fully, we need to be aware of the timing.

Consider a wave surfer at sea. To become a master surfer, one must learn the art of timing. When the wave arrives, you need to paddle forward and find the exact time to jump on the wave and let its energy carry you forward. If you jump too soon, you miss the wave, jump too late and you crash and burn [4]. During the day—as well as the week, month, and year—our energy levels follow the same patterns of the wave: from crest to trough and then back again.

Learning to catch the waves of energy early on and ride their energy longer is what makes one a master of sustained high performance. However, most people are oblivious to these cyclical waves of energy. Like a lost surfer, they paddle ceaselessly in the vast ocean, continually fighting against the immense power of the waves in an ever exhausting and futile battle.

Once we become aware of this inner cycle of energy—a much more potent and sustainable timekeeper than the strict and unbending tyranny of our human-made clock—we can ride the waves skillfully and use their power to allow us more energy for extended periods without exhausting ourselves.

Principal 4: United we stand

Our four energy resources are interconnected, each one affecting the other. We all experienced such days when we feel emotionally down while also feeling a lack of physical energy, so much so that often we want to go to bed and hide under the covers.

This interconnectedness of the emotional resource affecting the physical one works both ways. When our physical resources are low, it can also deplete our emotional resources, for example, losing our emotional control after a long sleepless night.

Yet this interrelation between energy resources can also work to our benefit. For example, when we are emotionally happy or mentally stimulated, we often wake up; when we are physically energized, we are better able to weather the emotional storms of life.

Similarly, a milestone longitude research shows the interconnectedness between the emotional and physical resources. This study, often referred to as the “Nun Study”, studied 678 Catholic nuns from an average age of 22 up until their death and showed a very high correlation between positive emotions and longevity. Nuns who expressed more positive emotions lived on average a decade longer than their less cheerful sisters.

These nuns have also agreed to donate their brains to research following their death. The findings—that were focused on Alzheimer’s disease—showed that happier, more positive nuns were less prone to the disease. Yet one of the most mind-boggling findings was that although 15 of the nuns who were very optimistic had signs of Alzheimer’s in their brain, they did not exhibit any symptoms of the disease during their life [5].

These findings could mean that a robust emotional resource can not only make us feel better and happier but also fill up our physical resource, allowing us to live longer and fend off degenerative diseases.

Principle 5 – Creating balance

In our modern way of living, we tend to disconnect from our physical and spiritual resources. We ignore our physical needs by not exercising, getting ample sleep, and eating healthy nutrition. We drink coffee and eat sugary and oily foods to block the fatigue, and we medicate ourselves to keep ourselves moving forward. Spiritually, we tend to lose connection with our purpose, our ‘raison d’être’, drifting through life, letting external events, conventions and fears direct us without choosing our own path.

In stark contrast to our neglect of the physical and spiritual capital, we repeatedly overuse and abuse our emotional and mental resources. We continuously create emotional turmoil and drama in our life while mentally remaining stuck in distressing loops of ruminations and overthinking.

What we really need in order to create a sustainable high performance is balance—putting much more emphasis on the physical and spiritual aspects of our lives while allowing ourselves to go on a periodic emotional and mental diet.

If we equate our four resources to a tree of life: our physical resource as roots, our emotional resource as the trunk, our mental resource as branches, and our spiritual resource as the crown of the tree. To keep our tree of life stable and balanced, we need the physical roots to dig deep inside the ground while the spiritual crown is firmly planted in the sky. Only then can we genuinely withstand the violent turmoils as they constantly pound against our emotional and mental trunk and branches.

Ready to go to the next level? here are some practical tips and suggestions to put these ideas into action – Practical tips

 

References:

[1] Sudan et al., (2020). You’re Right! You Are Working Longer and Attending More Meetings,

[2] Mani, A., Mullainathan, S., Shafir, E., & Zhao, J. (2013). Poverty impedes cognitive function. science341(6149), 976-980.  

[3] Loehr, J., Loehr, J. E., & Schwartz, T. (2005). The power of full engagement: Managing energy, not time, is the key to high performance and personal renewal. Simon and Schuster.

[4] How real (wo)men surf the big waves (Maya Gabeira, broke the world record for 2019-2020) New York Times, 2020 here

[5] Danner, D. D., Snowdon, D. A., & Friesen, W. V. (2001). Positive emotions in early life and longevity: findings from the nun study. Journal of personality and social psychology80(5), 804.

The missing chapter

finding your purpose workshop

For years this poem was my favorite, but then I realized it had a chapter missing. This week, I finally set down to write the missing chapter

Continue reading

The 5 life principles – Practical Tips

principle of life Lead Thrive Inspire

This article is the second part of 
The 5 principles – Riding the waves of personal and professional high performance.
It is recommended to read it first here.

In this article, we learn practical tips and suggested exercises. Remember that one action is worth more than a thousand thoughts, so commit to taking one action and start following through!
If you get stuck, read this guide on what to do when you get stuck.

Principal 1: The four energy resources

The first step in any transformation process is becoming aware.

  1. Start by being aware of your internal energy level: When is it high? When is it low? What causes it to rise or fall?
  2. Which energy resource are you using now? The Physical, Emotional, Mental or Spiritual?
  3. Which energy resource gets more easily filled or depleted compared to the others? And how?
  4. Commit now to getting a journal. Write at the end of your day how your wave of energy looked like. When was it up? When did it plunge? What actions, tasks, types of nutrition or people moved the needle for you? Be a researcher; you would be amazed how quickly you can begin to master the wave of energy throughout your day, week and month.

Principal 2: Use it or lose it; abuse it and lose it

The second principle is all about fully engaging and disengaging.
Use your energy resources, enjoy them, but remember to disengage too to rebuild them.

  1. Rhythm – Do not overwork yourself without rest. Everyone has their own pace and needs. Find your own rhythm of work and rest. If you are not sure, the rule of thumb is taking at least 15 min break every 90 min, but I encourage you to find your own.
  2. The good kind of Disengagement – When you need to recharge, disengage. No phones, no work. Just say no, and disconnect completely.
    I will only say this once: disengagement only works when you actually disengage.

If you can, go out to nature, run with your dog (get a dog if you don’t have one), or if you can’t, do some indoor stretching, climb a few stairs, move, get your pulse up.

If you would like to rest, try to find a quiet space in the office to meditate or do some breathing exercises. If you can, lay down for a few minutes with your eyes closed. If you can’t, put on music on your headphones to help you disconnect.

Principal 3: Timing is everything

  1. Be a surfer, feel that wave raising in you and ride it. When you have a difficult or annoying task, take it on when your energy wave is high. When your energy wave is low, do technical tasks that are easy for you. Although we cannot always control our work schedule, we can usually avoid difficult conversations or energy-sucking tasks when we are out of energy. Ignoring our levels of energy for an extended period of time will eventually lead to burnout.
  2. When the tide is low, don’t try to fight it by taking that sugary snack when you are bored or tired. Take an extra glass of water instead, and always make sure you have healthy snacks next to you. For more tips on what to do when the tide is low, see Mix and Match in the following principle.

Principal 4: United we stand

Remember, any source of energy you work on also strengthens the others.

Always Mix and match: When you are mentally tired, don’t rest your body, it doesn’t need rest, instead engage it, move, run, walk, climb stairs, or dance. Let your mind disengage, and your body engage to get full recovery.  Similarly, when you are physically or mentally tired, use the emotional resource: Laugh, talk to—or hug—a friend you love, someone that opens your heart, remind yourself one thing that you are grateful for, breathe.

Principle 5 – Creating balance

Remember: most people abuse the mental and emotional resources yet neglect the physical and spiritual ones.

I found that one of my students’ favorite exercises for creating balance is the “21 days emotional and mental diet”. Here are the steps you need to take:

  1. Make a note of the date today and clearly mark your calendar 21 days from now.
  2. Now, every day when a stressful or painful emotion or thought comes up, become aware of it, breathe and tell yourself: “Thank you so much for sharing this thought and emotion”, thank it. Don’t push it away, simply don’t take it in, don’t “eat it”. Remember you are on a diet.
  3. Continue practicing for 21 days.
  4. When you are done, celebrate your success, no matter what!

When you start this exercise, it would often take you minutes or hours (or days) to catch yourself fuming or going into drama. Stop. Smile and start again. After a few days, your response time would become much quicker.

Advanced option: In the beginner’s version, you practice 21 days of emotional and mental diet. In the advanced version, you restart the 21 days count every time you catch yourself in a mental or emotional drama for more than a few minutes—or seconds, if you want to achieve full mastery.

(Note: The advanced version of the exercise can take a very long time, sometimes months or years. Remember, it’s a lifelong process).

If you have any questions or need more clarifications, feel free to share them here below.
Also, share: what is your best way to recharge your energy resources?

 

Things I should have learned in kindergarten – quick freedom exercise

Work-Life balance

This short exercise is part of a recent post I wrote about finding inner freedom.
It is recommended to read it first here

Exercise 1: Changing the meaning we give to failure

Short explanation: In this exercise we decouple the pain associated with failure and create a new association: “failure = opportunity for new learnings.”
This is a simple exercise we do with our kids during dinner: Each one of us shares what we learned and how we failed today.

Initially, when one of the kids would say that they did not fail, we would ask: “Oh, so you didn’t learn anything new today?”
This exercise provokes all of us to attempt new things even though they may lead to failure.

 

Exercise 2: Preparing to learn from both success and failure

Step 1: Take a piece of paper and write down (Yes, now)

  1. What is your dream? (personal and professional)
  2. What is it that excites you?
  3. What moves you?
  4. What scares you?

Step 2: Now write down:

  1. What is the first step you choose to take today to fulfill your dream? (if you get stuck read here how to get unstuck)
  2. What will you learn and how will you grow from taking this first brave step?
  3. What will you gain and learn if you succeed?
  4. What will you gain and learn if you fail?

Try these two exercises and feel free to share your experience with me.

To be truly free, just like babies, we need to continuously experience failure.
It is our learning and development through failure that brings us the most meaning and the most freedom.

Have a Happy Passover!

Diversity, Equity and Inclusion – is it really that good for business?

diversity equality and growth model

This article reviews the current literature relating to the business case of Diversity, Equity and Inclusion (DEI). This is the 3rd part of a 3 part series on DEI

In recent years market-leading organizations have recognized the importance of Diversity, Equity and Inclusion (DEI). Yet, while the business case for DEI continues to gain strength with new research literature, surveys and market analysis added each year, a recent study [1] demonstrates that only 12% of the organizations actually achieve DEI in its highest form.

Whereas managers are still treating DEI-related issues as compliance tasks rather than business-critical goals to be achieved, there is a growing number of studies showing that DEI, when implemented correctly, can lead to an increase in the three primary hard-core business goals: (1) profitability & performance, (2) innovation, (3) and employee recruitment, retention and engagement.

  1. Profitability & Performance – let’s focus on the bottom line

Organizations thrive, survive or die based on their bottom line, and contrary to common belief, DEI could be an essential profitability and performance booster. Most people would agree that diversity of qualification is a must in any modern-age organization. You could not print a newspaper with only writers, no matter how skilled and talented they were. Likewise, you would not imagine building a plane having welders, engineers, and designers by your side. However, in today’s world in order to profit and perform at your best, there is also a need for social diversity. Teams of diverse ethnicities, cultures, genders and others achieve higher profits and perform better, especially during times of crisis and transition.

A 2021 study analyzed the correlation between S&P500 board members’ diversity and their performance before and during Covid-19. The study found a 9%-point increase in the likelihood of positive year-over-year revenue growth in 2020, an increase in company revenue for the more diverse companies compared to the less diverse ones. While all 500 companies experienced a lower revenue due to the pandemic, their year-over-year revenue grew overall by $58 billion (+1.2%), for the more diverse companies, versus a $283 billion drop (-3.9%), for the less diverse ones, leading the report to conclude that “boards with multi-dimensional diversity experienced less downside and even revenue growth throughout the pandemic.”[2].

Other studies demonstrate that organizations with diverse, equitable and inclusive cultures are twice more likely to exceed their financial target [3], and a 2019 McKinsey report determines that the top quartile of the DEI organizations are 36% more likely to achieve a financial performance above the national industry median as compared to the lowest DEI quartile, when it comes to ethnic diversity, and 25% higher likelihood when considering gender diversity [4]. Studies also show that teams with inclusive leaders are 17% more likely to report higher team performance [5], 20% more likely to say they make higher-quality decisions, and 29% more likely to report more team collaboration [6]. In addition, when it comes to performance, research shows that diversity leads to quicker solution finding [7] and lower groupthink [8].

  1. Innovation

While profit and performance goals are the engines that keep the boat afloat, if the company’s innovation rudder is missing, the organization may face an imminent risk of running aground. Vivid examples of giants who led the market for years until failing to innovate are the likes of Nokia, Xerox, Kodak, Blackberry or Blockbuster.

It turns out that DEI has a significant effect on organizational innovation and creativity, mainly due to diversity of thought.

Let’s start by stating the obvious, building diverse cultures is not easy, but working in diverse teams could sometimes be even more challenging. When all the team members have gone to the same school, know the same songs, read the same news and hang out in the same places, it is often so much easier to communicate and coordinate and, well…simply put, feel more comfortable. Yet, this feeling of familiarity and comfort goes against our creativeness. It turns out we become more innovative and smarter when we work in those diverse and “uncomfortable” teams. The very need to search for novel routes and perspectives of different races, genders, cultures, age differences and other dimensions is what makes us grow, and as a result, we become better decision-makers, better problem solvers and better innovators.

The late Prof. Katherine Phillips, who studied diversity for several decades, has repeatedly observed in her research that “being around people who are different from us makes us more creative, more diligent and harder-working…We need diversity if we are to change, grow, and innovate” [9,10].

Recent studies have shown that organizations with a higher-than-average DEI have 19% points higher innovation revenue than the lower-than-average companies [11]. Moreover, a study of over 4000 companies [12] found that gender diversity in R&D teams is positively correlated with radical innovation, and a study of over 7600 companies in London found that more diverse leadership teams are more likely to introduce new product innovations [13], as compare to the more homogenous ones.

Additionally, a 2013 survey comprising 1800 professionals found that employees working in more diverse companies are 70% likelier to report that their firm has captured new markets in the previous year and 75% more likely to see innovative ideas become productized [14].

And finally, a 2016 survey by Deloitte confirms that organizations with inclusive cultures are six times more likely to be innovative and six times more likely to anticipate change and respond to it effectively [5].

  1. Employee recruitment, retention and engagement – Winning the war for talent

In our fast-paced world, recruiting, retaining and engaging the right talent is increasingly complex. As the saying goes: In the war for talent, talent has already won.

Finding the right talent cannot be understated. Research dating back as far as the late ’60s demonstrate a 10x performance gap between good and bad programmers [15], this research was later generalized, stating that “the top 20 percent of the people produced about 50 percent of the output, whether the output is touchdowns, patents, solved cases, or software [16].

Although there is no silver bullet, DEI has proven to be a powerful tool for attracting and retaining talent.

Companies leaning into diversity often start by looking for talent outside their immediate comfort zone. Both an international bank and a start-up company I recently worked with on DEI realized they were constantly recruiting candidates from a very limited pool of resources (mainly graduates of a few well-known universities). When they eventually expanded the scope of their search, they quickly realized they were capitalizing on new and untapped talent resources. Additionally, in a recent survey of over 1300 employees, 80% of respondents said inclusion is an important factor for them when choosing an employer, an answer that was true for millennials as well as boomers. Moreover, the number one answer (47%) to the question, Which aspect of work culture do you value most when choosing an organization for which to work was: “An atmosphere where I feel comfortable being myself” [17].

While hiring the right talent is important, it is often not enough. In 2019 alone, over 42 million employees quit their jobs in the US (almost 25% of the US workforce). Studies suggest that when employees quit, their companies spend an average of 21% of their annual salary due to loss of productivity, recruitment and training expenses for their replacements. Furthermore, in the case of high-paid executives, the turnover expense could reach up to 200% of their annual salary [19]. This makes attempts to reduce employee and executive turnover a major business priority.

Whereas the recent pandemic caused a temporary decrease in turnover, today, as Covid begins to recede, studies show that turnover rates are continually increasing and suggest they continue to grow in the following months and years [18]. If anything, the pandemic has nudged people towards new perspectives of choosing life, meaning and personal values over unsatisfying workplaces. Simply put, employees today expect from their employers more than a fridge full of free sodas and some gym perks. A survey collecting employee’s 3 top workplace values indicates that employees today want their organization to accept their authentic selves at work, allow work-life flexibility and make a purposeful impact in and on the world [17]. Similarly, in a recent Deloitte survey, 39% of respondents reported they would consider leaving their current organization for a more inclusive one, while 23% reported already having changed their jobs to more inclusive ones [17].

Some final words

Many managers today understand the need for greater DEI yet feel a tension between “doing the right thing” vs. making profit. This tension often leads to actions such as hiring “Diversity Officers”, holding large DEI events or printing beautiful posters in favor of DEI, without meaningful and tangible actions to back it up. As this article demonstrates, the paradox is that the more Diversity, Equity and Inclusion is incorporated into your organizational culture the better the financial returns are, through enhanced performance, innovation, and employee engagement. As a first step, in order to implement DEI in the organization it is imperative to assess your current DEI level and then focus on applying the best DEI practices to move the DEI needle forward.

 

Resources:

[1] Stacia Sherman Garr and Candace Atamanik, High-impact diversity and inclusion, Bersin by Deloitte, forthcoming, April 2017

[2] Lessons From The Pandemic, Board Diversity and Performance 

[3] Bourke, J. (2016). Which Two Heads Are Better Than One?: How Diverse Teams Create Breakthrough Ideas and Make Smarter Decisions. Australian Institute of Company Directors.

[4] Hunt, V., Prince, S., Dixon-Fyle, S., & Dolan, K. (2020). Diversity wins. McKinsey.

[5] Bourke, J., & Dillon, B. (2018). The diversity and inclusion revolution: Eight powerful truths. Deloitte Review22, 82-95.

[6] Bourke, J., & Espedido, A. (2019). Why inclusive leaders are good for organizations, and how to become one. Harvard Business Review Digital Articles1(1), 2-5

[7] Reynolds, A., & Lewis, D. (2017). Teams solve problems faster when they’re more cognitively diverse. Harvard Business Review30

[8] Homan, A. C. (2019). Dealing with diversity in workgroups: Preventing problems and promoting potential. Social and Personality Psychology Compass13(5), e12465

[9]  Phillips, K. W. (2014). How diversity makes us smarter. Scientific American311(4), 43-47.

[10] How Diversity Empowers Science and Innovation, State of the World’s Science 2014.

[11] Lorenzo, R., & Reeves, M. (2018). How and where diversity drives financial performance. Harvard Business Review30, 1-5.

[12] Díaz-García, C., González-Moreno, A., & Jose Saez-Martinez, F. (2013). Gender diversity within R&D teams: Its impact on radicalness of innovation. Innovation15(2), 149-160.

[13] Nathan, M., & Lee, N. (2013). Cultural Diversity, Innovation, and Entrepreneurship: Firm‐level Evidence from L ondon. Economic Geography89(4), 367-394.

[14] Hewlett, S. A., Marshall, M., & Sherbin, L. (2013). How diversity can drive innovation. Harvard business review91(12), 30-30.

[15] Sackman, H., Erikson, W. J., & Grant, E. E. (1968). Exploratory experimental studies comparing online and offline programming performance. Communications of the ACM11(1), 3-11.

[16] Augustine, N.R. “Augustine’s Laws and Major System Development Programs.” Defense Systems Management Review, 1979, pp. 50-76.

[17] King, B. J. (2017). Unleashing the Power of Inclusion. Attracting and Engaging the Evolving Workforce. Deloitte Development LLC.

[18] Nelms , D. (2020), Voluntary Turnover Returns as COVID Recedes

[19] Boushey, H., & Glynn, S. J. (2012). There are significant business costs to replacing employees. Center for American Progress16, 1-9

The Diversity, Equity and Inclusion Growth Model

diversity equality and growth model

Diversity, Equity and Inclusion (DEI) seems to be on everyone’s lips these days. This is no big surprise as research demonstrates clear evidence of the significant benefits of applying DEI, not only for employee wellbeing but also for greater business success.

Studies have found that DEI companies (1) multiply the likelihood of company-led innovation by six times, (2) increase 36% in the likelihood of financialy outperforming other non-DEI companies, (3) see a 59.1% increase in creativity, innovation and openness, (4) 59.7% increase in the ability to attract and retain talent, (5) and a 57.8% gain in company’s reputations, just to name a few (see here for a full review of Diversity, Equity and Inclusion business-case benefits).

 

These results make for a very compelling business case, yet recent research shows that out of 245 companies surveyed, 88% were not implementing DEI to its full extent [1].

It is clear that Diversity, Equity and Inclusion is not a one-off project or fad but a step-by-step process, and achieving higher levels of DEI demands a sustained effort of cultural reshaping and evolution.

To help organizations as they progress on their DEI path, we classified a DEI Growth Model comprising of five levels: (1) Compliance, (2) Awareness, (3) Commitment, (4) Integration, (5) Market-leader [see Figure 1].

Figure 1. Diversity, Equity and Inclusion (DEI) Growth Model

 

This model is based on our experience, as well as on surveys and research, and demonstrates the actions and events that need to take place in order to move the DEI needle forward.

In this article, we demonstrate four growth paths that need to be observed to reach higher levels of DEI growth in the organization:

  1. DEI Ownership Growth
  2. Information Growth
  3. Educational Growth
  4. Psychological Growth

 

  1. DEI Ownership Growth

To progress on the path surveys show that DEI ownership needs to be transferred gradually:

  1. From external demands to Legal (Level 1)
  2. From legal compliance to HR awareness (level 1 & 2)
  3. From HR initiatives to top management involvement (level 3)
  4. From top management involvement to top management ownership (level 4)
  5. And finally trickle-down from top management to grass-root Employee Resource Groups (ERG) (4 & 5)

For more on this process, see also DEI-what works today.

  1. Information Growth

Research [2,3] shows that achieving a more diverse, equitable and inclusive business is no different from acquiring any other business goal. As such, data is key to measuring progress, success and weak spots. This path progresses from:

  1. Initial surveys, usually 360, focus groups and questionnaires that help assess the company’s DEI baseline (Level 2)
  2. Defining accurate DEI measurements and KPIs (Level 2 & 3)
  3. Continuous data collection analysis and growth (Level 4 and up)

 

  1. Educational Growth

Josh Waitzkin, chess grandmaster and martial art competitor, writes, “The key to pursuing excellence is to embrace an organic, long-term learning process, and not to live in a shell of static, safe mediocrity. Usually, growth comes at the expense of previous comfort or safety.” The DEI educational process is similar to any learning process. Every learning process begins by the awareness of what is lacking and the gap that needs to be bridged (Level 2). The next phase is moving towards bridging that gap by taking on DEI coaching and training for top and middle management (Level 3), culture training across the organization (Level 4), and finally, fostering internal grassroots initiatives to acquire knowledge that is continuously propagated within the organization by employees and managers (Level 5).

  1. Psychological Growth

Organizational DEI demands effort and persistence. It is a journey that takes the company and the people in it from a psychological state of unawareness and unconscious biases towards discovery (Level 2), from employee and management ignorance, resentment and opposition towards higher levels of acceptance (Level 3). Through this process, we progressively reach passive and later active DEI support and involvement within the employee community (Level 4) to active DEI championing (Level 4 and 5).

 

Some final words

Take a look at the DEI Growth model. Which Level is your organization at today?

If you are not sure, follow the four growth paths described above.

Remember, organizational growth is much more fluid than any model. You may find, for example, that your company is highly aware of DEI issues (Level 2&3 on the Psychological path) but does not take any ownership or affirmative actions towards a more DEI culture (Level 1).

No matter where your company is currently at, make sure you take action today to move the DEI needle forward in your organization (to find out more, read 8 tried and tested approaches that work today).

 

Resources:

[1] Bourke, J., Garr, S., van Berkel, A., & Wong, J. (2017). Diversity and inclusion: The reality gap. Rewriting the rules for the digital age, 105-116.

[2] Alexandra Kalev, Frank Dobbin, and Erin Kelly, “Best Practices or Best Guesses? Assessing the Efficacy of Corporate Affirmative Action and Diversity Policies,” American Sociological Review 71, no. 4 (2006): 589–617.

[3] Pedulla, D. (2020). Diversity and inclusion efforts that really work. Harvard Business Review, 12.