DEI progress will only accelerate when it's treated as a core business objective, not a philanthropic one. If missing DEI targets impacted a leader's bonus as much as missing financial targets, organizations would see rapid, meaningful change.
Pinterest's CEO reframes the DEI debate by stating it is not in conflict with meritocracy, but a requirement for it. A system that isn't inclusive inherently limits its talent pool, making it less meritorious. By focusing on inclusion, Pinterest gained an "unfair share of great talent" and outperformed competitors.
Relying on moral imperatives alone often fails to change entrenched hiring behaviors. Quotas, while controversial, act as a necessary catalyst by mandating different actions. This forces organizations to break the cycle of inertia and groupthink that perpetuates homogenous leadership.
True DEI measurement goes beyond representation metrics ('butts in seats'). It assesses whether diverse employees feel valued enough to contribute their unique cultural insights to core business functions, like marketing strategy, thereby directly impacting business outcomes.
Elf uses a unique compensation model where every employee's bonus (from 0-200%) is tied to the same company-wide adjusted EBITDA metric. This aligns operations, sales, and marketing on a shared financial fate, fostering cross-functional collaboration and a strong sense of ownership.
Don't wait for a corporate mandate. Any leader, even of a small team, can demonstrate commitment to DEI by including specific diversity and inclusion goals in their personal performance objectives. It would be a brave senior leader who would push back on such an initiative.
To break down silos and encourage a platform mindset, Microsoft CEO Satya Nadella changed performance reviews. Every employee had to document how they contributed to the success of others, directly linking collaboration to their compensation. This made the cultural shift tangible and non-negotiable, moving beyond mere talk.
Abstract values like "celebrate diversity" are useless for driving behavior. A value is only effective if it's tangible enough to be used in a performance review. Instead, use an observable action like "include all perspectives," which you can coach and evaluate.
When leaders resist DEI on moral grounds, reframe it as a business necessity. Connect a diverse workforce to understanding and capturing untapped, diverse customer markets. This shifts the conversation from a perceived cost (subtraction) to a clear business gain (expansion).
To ensure accountability for societal impact, Mars directly links 40% of its CEO's compensation to non-financial metrics, including sustainability goals. This structure challenges the conventional, finance-only incentive models prevalent in public companies and hardwires long-term purpose into executive performance.
Georgia Pacific successfully operationalized the ANA's SeeHer initiative by embedding its principles directly into their processes. Instead of being an optional add-on, accurate representation became a criterion in creative briefs, evaluations, and measurement, making it a non-negotiable part of daily work.