{"id":27306,"date":"2019-08-05T11:09:49","date_gmt":"2019-08-05T10:09:49","guid":{"rendered":"https:\/\/digileaders.com\/?p=27306"},"modified":"2019-08-06T11:01:29","modified_gmt":"2019-08-06T10:01:29","slug":"inclusive-cultures-inclusive-leadership-drive-sustainable-growth","status":"publish","type":"post","link":"https:\/\/digileaders.com\/inclusive-cultures-inclusive-leadership-drive-sustainable-growth\/","title":{"rendered":"Inclusive cultures and inclusive leadership drive sustainable growth"},"content":{"rendered":"

Why inclusion must be a strategic priority where we see more than awareness but true action.<\/span><\/em><\/p>\n

There is a stark difference between diversity and inclusion. We need to understand this because it is true inclusion, not diversity alone, which drives sustainable growth. Inclusive organisations are the ones thriving but also driving the future. Fail<\/span> to enable an inclusive culture and<\/span> lead from inclusive leadership and you fail as a business. <\/span><\/p>\n

Recently I spoke at <\/span>the <\/span>IICF Women in Insurance Global Conference<\/span><\/a> in New York. As a firm believer in the need for inclusion on a grander scale, and a business leader who is actively embracing inclusivity in my business endeavours, I felt confident that my own thinking was ahead of the game. I came away from this conference realising that not only does the industry still have a huge amount of ground to cover, we as inclusive leaders still have progress to be made too if we truly want to re<\/span>alise the benefits of inclusion, which we must.<\/span><\/p>\n

Diversity and i<\/span>nclusion <\/span>really<\/span> matters<\/span><\/h4>\n

We can expound the arguments for diversity inclusion on a social, moral and ethical basis. There is nothing new <\/span>t<\/span>here. However, what is new is our growing understanding that inclusion is more than the \u2018right\u2019<\/span> thing to do but something we <\/span>must<\/span> do.<\/span> It is the inclusive organisations which are the creative innovators. Where inclusivity is lived, not simply nodded to, the bottom line grows, sustainably, with power.<\/span><\/p>\n

There is one simple statistic alone which demonstrates this power. <\/span>BCG undertook <\/span>research<\/span><\/a> which showed that businesses which had above-average diversity in the make-up of their management teams secured innovation revenue a staggering 19 percentage points above the innovation revenue of those with below-average diversity in their management team. A whopping 45% compared to just 26%. <\/span><\/p>\n

This statistic \u2013 concerned with one area of diversity alone (age) <\/span>\u2013<\/span> makes us realise that it makes <\/span>business sense<\/span> to embrace inclusivity. Imagine the power of diversity if it covered <\/span>all <\/span>types and was met with more than diversity alone, but inclusion too.<\/span><\/p>\n

The strength of inclusion<\/span><\/h4>\n

Diversity can be seen as the physical make-up of our workforce. Take a snap shot and do a headcount. Diver<\/span>sity is all about the numbers. For example, h<\/span>ow many people of colour? <\/span><\/p>\n

The key to measuring diversity is twofo<\/span>ld: improvement over time and <\/span>h<\/span>ow you compare to the demographics<\/span> around you.<\/span><\/p>\n

However, diversity does little to actually harness the benefits of a <\/span>varied<\/span> workforce alone. Simply having the numbers \u2018on the books\u2019<\/span>,<\/span> doesn\u2019t mean your organisat<\/span>ion realises the benefits<\/span> of having a workforce which is not homogenous.<\/span><\/p>\n

To move from diversity to inclusion we need to move from awareness to action. Again, real-life data from the business arena supports this argument. One study, by <\/span>Gartner<\/span><\/a>, demonstrates that \u2018highly inclusive organisations\u2019 generate 2.3 times more cash flow and are 120% more successful at meeting financial targets. Again, beyond the social, moral and ethical argument, we can see the financial argument for inclusion too. <\/span><\/p>\n

Inclusion in the insurance industry<\/span><\/h4>\n

This puts the insurance in<\/span>dustry, in line with many other industries<\/span>, under a painfully bright spotlight. As an industry we are renowned for our old-school thinking. It\u2019s normal for the board of insurance <\/span>companies to be dominated by<\/span> white able-bodied straight men. <\/span>Yet the evidence above clearly states that this is not what we need for sustainable growth.<\/span><\/p>\n

This brings us back to our need to deeply understand inclusion and how it differs from diversity alone. It is one thing to understand that diversity is about numbers and demographics and that inclusion is about acceptance and respect, but what does this actually look like in practice? How do we <\/span>practice<\/span> inclusion so that we don\u2019t lose our competitive edge?<\/span><\/p>\n

Going beyond the basics in diversity and inclusion<\/span><\/h4>\n

Firstly, we need to dive more deeply in to our understanding of diversity to act as a springboard for inclusion. All too readily we think of diversity as being about race, age, religion, disability, sex and other such characteristics. We need to go beyond this before we can even hope to embrace true inclusion.<\/span><\/p>\n

An excellent explanation of this is given in the article <\/span>Diversity\u2019s New Frontier<\/span><\/a> by Deloitte Insights. Here three types of diversity are explained. There is the \u2018legal\u2019 category which matches our typical understanding of diversity, for example someone\u2019s sex. We know that <\/span>legally<\/span> we must not discriminate on these grounds. More forward thinking organisations are going some steps towards not just discriminating, but actively attempting to represent the authentic demographics of their society. <\/span><\/p>\n

The next type of diversity is \u2018experiential\u2019. This category explains how we are diverse be<\/span>cause of our life experiences, f<\/span>or example, <\/span>whether an individual is a parent. Finally is \u2018thought\u2019 diversity. This is the diversity driven from what we think. It centres on how our ideas and understanding are diverse.<\/span><\/p>\n

When we understand diversity within these three distinct types, we realise it is far more complex than we at first presumed. Following on from this, inclusion (the action of true diversity) becomes a more complex concept too.<\/span><\/p>\n

How true diversity impacts inclusion<\/span><\/h4>\n

Moving beyond the tick-list of the legal type of diversity we can begin to see that inclusion is going to require far more than simply shaping the demographics of leadership teams and workforces. Inclusion is not so tangible. <\/span><\/p>\n

Let me explain with an example. A board which is truly diverse, representing the non-homogenous society in which it operates, with a careful balance of men, women, different races and backgrounds, ages and disabilities, and more, isn\u2019t necessarily inclusive. The individuals making up the board may still be restrained by operating in a non-inclusive culture. <\/span><\/p>\n

For example, the Muslim board member may nip out of the office to pray. T<\/span>he parent<\/span> may feel <\/span>they aren\u2019t meeting the needs of their<\/span> children and suffering from stress as a result<\/span>. The <\/span>youngest member feels that they aren\u2019t as senior as the oldest, despite being at the same level. <\/span>The disabled aren\u2019t even present because they are ashamed of the accommodations which need to be made. <\/span><\/p>\n

In this \u2018hidden\u2019 culture the organisation misses out on the benefits those same individuals might bring. <\/span>T<\/span>his problem is exacerbated by a concept<\/span> so prevalent it has a name: the <\/span>invisibility syndrome<\/span><\/a>. Individuals who have experienced discrimination, even in seemingly minor ways, will downplay their own worth and good work with a hope that leadership will simply notice.<\/span> They will try to fit the model of what leadership culture dictates they should be, not who they actually are. At best they are never present in their authentic selves in leadership and at worst, they are never physically part of the leadership at all.<\/span><\/p>\n

Change at the start-up level<\/span><\/h4>\n

In the insurance industry, it is at the start-up level that we are increasingly able to adopt inclusive cultures and inclusive leadership. Unhindered by the dinosaur-mentality of traditional insurance business models and structures, start-ups are able to not only represent the communities from which they arise, but also actively drive the insurance sector through innovation in to providing for our future customer.<\/span> This really matters when we realise that our customer of tomorrow is a <\/span>distinctly different customer<\/span><\/a> from the one we serve today.<\/span><\/p>\n

In many ways there is a snowball effect. Start-ups, by their nature are small. They are technologically-driven. As we blend the emerging technologies of different start-ups with each other<\/span>, and the diverse individuals behind them,<\/span> with wider industry players, we introduce greater inclusion from the bottom up. <\/span>Insurance businesses which want to<\/span> thrive in this evolving InsurTech arena, have to embrace the very inclusivity which is driving innovative growth in the start-up world.<\/span><\/p>\n

It\u2019s possible to see that this is actually of enormous benefit for the industry as a whole to be revitalised. This <\/span>reshaping of the traditional business model<\/span><\/a> empowers entrepreneurialism and innovation. An industry struggling to engage the minds its needs, can engage them through the start-up. It\u2019s very much what Startupbootcamp and the accelerator programme is about \u2013 matching innovators (highly diverse start-ups) with traditional insurance giants. Both parties benefit, but importantly, so does the entire industry.<\/span><\/p>\n

Flexibility facilitates inclusion<\/span><\/h4>\n

Inclusion doesn\u2019t just happen. It needs to be actively worked on. This can only happen through approaches which embrace everything from new recruitment strategies to training for leaders. The common thread of each approach, when we make inclusion a strategic priority, is flexibility. We need flexibility of practice and flexibility of thought. <\/span><\/p>\n

Our customer of tomorrow is not a homogenous<\/span> group. We will not be able to<\/span> look at them and see one dominant \u2018character\u2019. To serve them we need to <\/span>be relevant by embracing inclusivity. Flexibility may be a standard weak point for insurance companies, but we need to radically change that if we want to achieve sustainable growth. <\/span><\/p>\n

On the ground this flexibility may be allowing the digital native to work from anywhere at any time. It may be embracing the concerns and causes that matter to an individual from a minority group. The result is innovation.<\/span><\/p>\n

Why is flexibility the key to innovation?<\/span><\/h4>\n

It\u2019s actually a very simple conce<\/span>pt. If we as leaders<\/span> face a problem we will work towards a solution drawing on our background, experiences, knowledge and sense of self. If that leadership team all looks and thinks alike<\/span> then<\/span> the solutions are narrowed. Conversely, a diverse and inclusive leadership team will face the problem and creatively draw on differences to come up with a <\/span>range of solutions which through inclusivity<\/span> narrows to one<\/span>refined course of action<\/span> \u2013 one which simply wouldn\u2019t have been realised in a homogenous leadership team.<\/span><\/p>\n

There\u2019s an added benefit to this non-homogenous flexibility. This style of problem solving is considerably more responsive and agile. Given the fast paced rate of change in the insurance industry due to digital technologies disrupting the landscape, we definitely need to be agile and responsive to thrive. <\/span><\/p>\n

From here we jump to other benefits too. Most importantly, and strategically, we begin to future-proof our workforce. We cannot be behind the times because one day we will simply be left behind. We know from experience that diversity and inclusion cannot be born overnight. <\/span><\/p>\n

We have to take the steps now to make our workforce and culture reflective of who we want to be tomorrow.<\/span> But we can only achieve this if we accept that there is more than one <\/span>way of doing things, and that maybe, just ma<\/span>ybe, another way is better. Indeed, it may<\/span> perhaps<\/span> be that<\/span> these different ways of doing things may in fact be the lifeblood of future products and services.<\/span><\/p>\n

The innovation score<\/span><\/h4>\n

Yes inclusivity is the key to sustainable growth. However, as well as this inclusivity is the hotbed for innovation, as we\u2019ve explained above. Innovation is going to matter even more for the insurance industry as time goes on.<\/span><\/p>\n

This is because in addition to an insurer\u2019s credit score, insurers will now also be rated in terms of an <\/span>innovation score<\/span><\/a>. Look a little closer at how this scoring will work and one of the four key performance evaluation criteria is the ability to deliver a diverse and inclusive culture. <\/span><\/p>\n

If for no other reason, this alone should be enough to make you push towards greater inclusivity. Inclusivity will bring us innovation. It goes further though. It will help us acquire customer and talent. It will help us to hold on to those same individuals. <\/span><\/p>\n

Driving authentic inclusion<\/span><\/h4>\n

To drive authentic inclusion we need to look deeper than our understanding of diversity to date. We also need to look towards our culture and ethos. Inevitably, it will require us as an industry <\/span>to ask<\/span> difficult questions around the framework of leadership. We need to realise that business priorities will be impacted, but that this isn\u2019t a negative thing. <\/span><\/p>\n

The business priorities that we need to pay heed to can be sub-divided in to four areas: <\/span><\/p>\n