Russell Reynolds Associates: Inclusive Leadership: Unlocking the Value of Diversity and Inclusion

For shareholders, the cost of bad leadership behavior is mounting.

A growing number of CEOs and other high-profile leaders have been ousted for allegations of sexual harassment, discriminatory language and other offenses that might have once been swept under the rug. The costs to their organizations are often staggering. Recent CEO indiscretions at public companies have led to an average 7% decline in market capitalization – or a $4 billion loss – in the days and weeks following the news. And these numbers do not include reputational losses, legal fees and settlements, the cost of follow-on training or of replacing the disgraced executives.

At the same time, the need for leaders to create welcoming workplace cultures is growing exponentially.

By the year 2050, researchers project there will no longer be a clear racial or ethnic majority in America, and immigrants and their children will account for 83% of U.S workforce growth. This heterogeneity is occurring as organizations become less hierarchical and more dependent on complex, knowledge-based tasks that require teamwork and collaboration. These multiple shifts point to a common leadership implication: to maximize performance, leaders will need to master the art of enabling people with different perspectives to work well together.

The diversity and inclusion (D&I) imperative is fast becoming the new frontier in risk management. Evidence suggests there are also rewards to be gained from getting D&I right. In order to succeed, companies need to ensure they have leaders who can create impact in a diverse workforce.

Four key characteristics are highlighted from Russell Reynolds Associates:

  1. How to Assess, Select and Develop Inclusive Leaders
  2. Recognizing Inclusive Leadership
  3. Inclusive Leaders in Action
  4. Outcomes of Inclusive Leadership


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