The Boardroom Beat #37 - DEI Moves from Compliance to Culture

Why Inclusion Wins—And What You Can Do About It

Is DEI doomed? Champions and detractors alike point to signs of DEI’s demise—or at the very least, a rollback in its implementation. Politicized debate has led to high-profile legislative backlash and shifts in organizational budgets. This article is not intended as a forum for examining those changes; It is a call to action for the fundamental parts of DEI on which all may readily agree. (Note - While DEI may have strong American roots in terminology and legal frameworks (such as affirmative action and corporate DEI roles), its principles are universally relevant.

Will the Real Dei Please Stand Up?

Ah Ha! DEI ≠ Affirmative action. 

DEI stands for Diversity, Equity, and Inclusion. It is a framework used by organizations and institutions to create environments where everyone feels valued and has an equal opportunity to succeed. While DEI can be implemented through various programs and policies—some of which are divisive—the fundamental goal remains clear: to optimize how groups function for the benefit of individual members, the collective, and its stakeholders.
•    Diversity reflects a range of identities, perspectives, and experiences within a group.
•    Equity involves ensuring fair treatment, access, and opportunities for all.
•    Inclusion creates a culture where every individual feels respected, engaged, and empowered.

Affirmative Action is just one tool that can be part of a broader DEI strategy aimed at fostering inclusivity and equitable opportunities. The controversy surrounding this component often overshadows the core purpose of DEI.

Measuring DEI Success

Ah Ha! Doing Good = Doing Well

A myopic definition of DEI that equates it solely with affirmative action leads to an overemphasis on data collection and reporting. Many DEI programs have inadvertently contributed to their own devaluation by reinforcing the perception that their primary purpose is to gather and report data for legal compliance or to align with public opinion. By branding themselves as “box checkers,” correlating metrics related to race, ethnicity, gender, age, disability, and, in some cases, sexual orientation with recruitment, hiring, retention, and promotion. While this data is valuable, it also makes DEI programs an easy target when regulatory landscapes shift or public sentiment changes.

Real measures of success flow from a more comprehensive definition of DEI; These include talent retention, brand loyalty, revenue growth, and profitability. Doing “good” with humanitarian motives drives  doing “well” in the marketplace. DEI is not just about fairness; it is a strategic approach that enhances financial performance, fosters innovation, and strengthens organizational resilience in a global market.

The Overlooked “I” in DEI

Forget the old adage, “There is no ‘I’ in team.” In reality, there is an “I” in successful teams—Inclusion.
In September 2024 I earned a Certificate in DEI from Cornell University. Module #1 “Diversity Equity Inclusion” was introduced with a “focus on inclusion” by Dr. Lisa Nishi, VP Provost for Undergraduates. She posed a critical question about the evolving role of inclusion in DEI initiatives:

“Everyone refers to the two simultaneously. .…….As I ask questions about what companies are doing to practice or facilitate inclusion, it ends up feeling like we're talking about classic diversity management again. That the focus ends up being on things like targeted recruiting, mentoring programs, being very careful about tracking pay and promotion rates, and providing diversity training and employee resource groups and the like. And so, it starts to feel like maybe it's old wine in new bottles. That is, we've been doing these things for quite a while. These practices have been in place and have been considered best practices for quite a while. So, what is it that's different, about the inclusion tag that we're now adding to the conversation? Do these practices really help to promote inclusion?”

I am currently collaborating with a Senior Talent leader who is passionate about Inclusive Leadership programming as a driver of real organizational change. This leader envisions a company culture that fosters:

•    Safe spaces where people feel free to be themselves.
•    Supportive environments that empower individuals to do their best work.
•    Recognition and appreciation where every employee feels seen, valued, and celebrated.

Inclusion ➜  Diversity ➜ $$$

In 2021, I partnered with Lewis Taylor to present to a global audience at the 45th LocWorld Conference, themed “Pushing Boundaries.” At the time, Lewis was a Vice President at Cisco, leading multiple internal and external DEI initiatives.

Our session, “Toppling the Ivory Tower,” showcased a proven path to diversity through inclusive leadership training. We presented ROI data from a program launched under Lewis’ leadership in his previous role at Dropbox. Taking a broader perspective, we also shared key insights from McKinsey’s report, “Diversity Wins: How Inclusion Matters,”1, offering a data-driven analysis of the impact of inclusion on organizational success.

This dataset, spanning 15 countries and more than 1,000 large companies, reinforced our key message: “Your Why is ROI!” I highly recommend reading this report, along with its December 2023 update, “Diversity Matters Even More.” 2 The research is clear—despite the ebbs and flows of DEI trends, companies that prioritize diversity and inclusion consistently outperform those that do not.

How to Succeed in Diversity without Really Trying

Of course, diversity requires effort—the catchy section header is simply a nod to my love of theatre and a play on the title of the 1961 Broadway musical, How to Succeed in Business Without Really Trying.
But here’s the key takeaway:
•    Diversity is not an isolated island, inaccessible when DEI funding or roles are cut.
•    The bridge to that island is a culture of inclusion.
•    That bridge is built and maintained when leaders—across all disciplines and at all levels—foster inclusive environments, celebrate differences, and invite diverse perspectives.

Inclusion Examples “In the Trenches”

•    Implement meeting best practices that encourage active participation.
•    Foster psychological safety to support healthy dissent, new ideas, and risk-taking.
•    Establish a monthly or quarterly cadence of 1:1 career touch-points that demonstrate intentional mentorship.
•    Ensure inclusive professional gatherings where senior leaders engage with all employees rather than unintentionally isolating themselves, creating barriers to open conversation.

My DEI Story

A deeper appreciation of inclusion as a critical pillar of the DEI framework helps explain why a Caucasian woman from the heartland of the United States can genuinely say she has cared about DEI since 1970. That was the year I first encountered exclusion. In elementary school that I witnessed someone being systematically bullied for being “different,” then was ostracized for the next few years—for refusing to conform to the crowd’s behavior.
Being bullied in elementary school is a far cry from fearing mistreatment by authorities due to my skin color or religion. But even that “small” taste of exclusion shaped me in profound ways. I dreaded every school day. The stress triggered daily bouts of diarrhea, hives, and anxiety-driven behavior. I pulled out all my eyelashes.
That experience, painful as it was, turned out to be a gift—it crystallized an inclusion-focused perspective that has guided me ever since.

•    It fueled my curiosity about other cultures—leading me to earn an MBA in Pau, France.
•    It inspired my work in the translation and localization industry; in the 1990s, I was part of a team that trained American Airlines staff on how and why to create a user experience welcoming to non-English speakers.
•    As a volunteer, I led inclusion programs for elementary and middle schools as well as youth groups.
•    At the turn of the millennium, the team I built as a CEO was diverse, risk-taking, and innovative—pioneering high-performance multicultural collaboration across six continents.
•    As a coach, I am gifted daily with opportunities to help leaders own their unique personal brands and assert their voices—while building teams that are safe spaces for employees to do the same.

I owe a lot to the bullies of my elementary school years!

The Future of DEI Is Wondrously Human

The politicization of DEI programs and the increasing news of DEI budget cuts heightens the urgency for organizations to maximize their leaders' potential and foster inclusive cultures that benefit employees and stakeholders alike. DEI processes, programs, and data have always been secondary to what truly brings DEI to life: people. It is individuals, not policies alone, who make or break the system. Companies that "get it" will outperform those that do not.

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