The Time to Get Good at Operating in a New, More Diverse Business Ecosystem is Now

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Hey there, CEOs and business leaders! Did you know embracing diversity, equity, and inclusion (DEI) practices will boost your financial returns? That’s right, according to a study, companies with diverse workforces are 35% more likely to have financial returns above their industry medians. Why? A deeper look shows that these companies are better equipped to attract and engage top talent, find superior business partners, and serve growing markets in these growing demographics. And every indicator is that this economic performance gap will continue to grow until companies that do not have effective DEI practices will likely not have a business. So, if you want to increase your profits now and prepare to succeed in the future, the time to get good at operating in this new diverse business ecosystem is now.

According to the United States Census Bureau, today’s minorities are set to become the majority by 2045. If the economic gap between companies that can sustain a diverse workforce and those that cannot is currently 35% when the non-Hispanic White population is shy of 60%, what do you think that gap will look like when minorities are the majority? The answer is easy to find through simple math. So, how can you prepare to attract and engage workers, partners, and market share from this growing demographic? Here are three ways to bolster the DEI practices in your organization:

Build a Market Expanding Supplier Diversity Program

The current onshoring trend has allowed companies to expand their domestic marketplace footprint by partnering with small and minority-owned local businesses. This shift in production and manufacturing presents an excellent opportunity for companies to develop and grow their supplier diversity partnerships, making the organization more competitive and profitable. In addition to filling supply chain gaps, minority-owned suppliers can help the company expand its marketplace footprint. That’s because these small, diverse suppliers often learn of opportunities to engage in projects where they need a larger majority partner. In such cases, these small, diverse suppliers play a hybrid supply chain partner and new business developer role. Success in finding, developing, and growing these lucrative supplier diversity partnerships can become part of this new re-shored supply chain that provides market growth opportunities.

Tune in to the Needs of a New Marketplace

The power to buy products and services is shifting from the predominantly white baby boomer generation to the more diverse younger generation. To be a top decile provider of products or services, companies must understand and meet the needs of this new buyer. The changing market demographics require companies to go beyond traditional marketing practices and employ a diversity, equity, and inclusion (DEI) lens in their business growth strategies.

To address the needs of a new marketplace, companies need to create a customer-centric approach informed by insights into their target audience’s diverse perspectives and preferences. This requires a deep understanding of different demographic groups’ cultural nuances, social norms, and language preferences. By prioritizing DEI in their business strategies, companies can elevate their brand reputation, increase customer loyalty, and drive revenue growth.

Elevate the Company’s DEI Practice Focus Beyond HR Department Topics

DEI has too much economic potential to be left in the hands of HR. Instead, it should be treated as a business strategy advisory and governance practice that works closely with the CEO to finetune all aspects of your business for the 21st century. CEOs should empower their DEI leader to modify outdated policies and practices to fully support the contributions of the new workforce, supply chain, and marketplace.


So, there you have it. By tuning your organization to attract and engage top talent from the new workforce pool, building a supplier diversity program that grows market share, and addressing the needs of the new marketplace, you can position your organization as a top competitor in the emerging world.

The Roman Senator Seneca once said, “Luck is what happens when preparation meets opportunity.”  The time to prepare to become a lucky winner in the emerging business world of the 21st century is now!


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