5 Ways to Value Diversity or See Profits Decline

Is the National Basketball Association (NBA) becoming the National Bigot Association? What leadership lessons can we learn from the racist remarks made by the Los Angeles Clippers owner Donald Sterling?

If you’ve been following the news story about how Mr. Sterling made racist comments, then you undoubtedly know that such attitudes and commentary are bad for team performance – and bad for business. Not only did players take a stand against his remarks, but sponsors did as well, by terminating sponsorship of the Clippers.

It’s the job of a good leader to create an environment in which people can fully develop their potential and actively participate to the fullest extent for the benefit of themselves and the group. Comments such as “I support them and give them food and clothes, and cars, and houses. Who gives it to them? Does someone else give it to them?” are not inspiring.

Whether you’re an owner, a coach, or a CEO – you need to lead by positive example. It’s your job to lead – whether leading players or employees – in a way that inspires your people and makes others want to support your organization.

What does this have to do with business?

Valuing diversity matters in the workplace! I’ve said it before and I’ll say it again (as obviously many of the owners, coaches and even players out there in sports land aren’t getting the hint) – professional sports is also a lucrative, for-profit business. Successful businesses are becoming more inclusive. And many of those have lots of sponsorship dollars to toss around, not just to organizations who they think can make them money, but to those who share their inclusive views.

Good leaders should never need to resort to belittlement, manipulation, or negativity. The point of all of this is…it’s time to value diversity – it matters to the bottom line! Diversity brings different points of view to the table. It brings new sets of ideas, strategies, and new ways of thinking – it increases innovation, engagement, performance, and revenues.

“Strength lies in differences, not in similarities” – Stephen R. Covey

Sterling bought the team in 1981 and in his over 30-year tenure as owner – the Clippers have had the worst winning percentage of any team in the league. As Mr. Sterling learned, not valuing diversity doesn’t just cause bad PR but also a sting to the wallet – not a good combination!

So – How do you create a culture that values diversity and inclusion?

1. Policies: Creating an organization that embraces diversity requires leaders and employees to create diversity policies that are incorporated into every aspect of the organization’s functions — and connect these policies and goals directly to corporate strategy and performance management. Diversity needs to be defined within the scope of the businesses strategy and mission, and in order to succeed should be fully aligned with the organization’s objectives. Policies and initiatives shouldn’t be a one size fits all approach and should meet the diverse and changing needs of employees and customers.

2. Recruitment: Having a diverse workforce begins with recruiting diverse talent. Organizations with successful talent acquisition and talent management approaches target diverse talent via multiple strategies — not a one size fits all approach. Businesses that truly value building a diverse workforce are involved in community development and corporate citizenship opportunities, have partnerships with other diverse organizations, train recruiters and talent management employees on the needs and value proposition of different demographics. It’s also important to note that recruitment doesn’t stop once candidates are hired, it’s imperative to engage and retain diverse employees.

3. Engagement: To successfully create a culture within an organization that embraces diversity — always focus on the people. Your organization can’t exist without people. People make the difference in every business. Once you have diversity strategies and initiatives in place, you need accountable and committed leadership to engage employees in your diversity practices – and get them to engage with one another. Design on-going communication systems and training and empowerment initiatives to provide a foundation, for all levels of the organization, to foster the accomplishment of diversity goals. You need to constantly strive to engage your workforce, if you don’t other businesses will, and you will be left with talent gaps.

4. Commitment: Leadership commitment is a necessity for creating an organization that embraces diversity. Accountability for achieving diversity goals and objectives needs to be directly tied to incentives and pay increases – that includes CEOs and owners. The degree to which your diversity initiatives will be successful relies on the involvement and commitment of leadership. Organizations which have leaders who are actively involved in implementing diversity initiatives create cultures that embrace diversity by inspiring their employees. Leaders that are committed to diversity provide the visibility and time and resources to make diversity happen. Mr. Sterling could have learned a thing a two from some of his – now past tense – corporate sponsors. These leaders and their businesses view diversity as both a top priority and a personal responsibility.

5. Supplier Diversity: Businesses that yield the benefits of valuing and embracing diversity embed those values directly into their supply chain. In recruiting, engaging, and retaining a diverse workforce, it is important to also pay attention to recruiting, engaging, and retaining diverse customers and vendors. Many businesses – including several of those who were sponsors for the Clippers – have supplier diversity programs in place, to help conduct outreach, and increase opportunities for diverse owned business to compete for and deliver work. Having diverse vendors and customers only serves as a positive influence and helps to further create an organization where diversity and inclusion is valued.Today’s most successful organizations are succeeding because they have created cultures that make employees feel they can bring their full selves to work – employees see their organization values a 100% of who they are – and thus try to perform 100% at their jobs in return.

Today’s most successful organizations are succeeding because they have created cultures that make employees feel they can bring their full selves to work – employees see their organization values a 100% of who they are – and thus try to perform 100% at their jobs in return.

So yes, the idea of encouraging and embracing diversity in the workforce is extremely important. In the end, companies that are able to adapt to changing demographics, embrace the diversity of the individual and diversity of thought, are likely the companies that will thrive in this ever changing competitive world of business.

“It is never too late to give up your prejudices” ― Henry David Thoreau

As per the fate of Mr. Sterling as the owner of the Clippers – the damage is done. NBA Commissioner Adam Silver announced the unprecedented action, banning Sterling for life, and fining him $2.5 million.

These are just a few examples of how to create a culture that values diversity and inclusion.

Want to learn more about creating a culture that values diversity? Download our Diversity Checklist:

About Scott Span, MSOD: is CEO & Lead Consultant of Tolero Solutions – a Leadership Effectiveness & Change Management firm. He helps clients in achieving success through people, creating organizations where people enjoy working and customers enjoy doing business.

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