Editor’s note: Veteran entrepreneur and investor Donald Thompson writes a weekly column about management and leadership as well as diversity and other important issues for WRAL TechWire. His columns are published on Wednesdays.
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RESEARCH TRIANGLE PARK – Skeptical C-Suite executives often ask me, “Donald, what am I – or my team – missing on diversity?”
Immediately, I realize that this is a bit of a loaded question. They are basically asking me to talk them through their internal doubts or give them perspective on topics they are hearing on the news, which equate anything to do with race and gender to the current political volatility or “woke” negativity.
Recognizing the futility of addressing what are essentially fear-based notions or political landmines, I reframe the conversation by focusing on business terms. I do this because I’ve seen that many senior leaders simply haven’t thought enough about what not implementing culture transformation through a diversity lens means financially for their organizations.
Donald Thompson
I let them in on a little secret with a question of my own, “Do you want to turn away or outright offend potential customers who represent trillions of dollars in buying power?”
It’s a simple move from what many of them view as soft or squishy conceptual ideas about culture to a business conversation with real financial results, and it gets their attention. Almost immediately, I see the wheels turning as they begin to put the pieces together.
BUYING POWER
I recently had a conversation with a senior leader at a large financial institution that was trying to bolster its mortgage business given the recent turmoil around interest rates and economic turbulence. When the conversation turned to inclusive marketing, I could tell it wasn’t landing properly.
So, I asked directly, “Are you willing to turn your back on billions of dollars that people with disabilities have in disposable income because your marketing team hasn’t adequately addressed diversity in its advertising or social media campaigns? What about the trillions in buying power held by the LGBTQ+ community?”
Words like “billions” and “trillions” get a business leader’s attention, but the stats don’t lie. In the U.S., people with disabilities have a disposable income of nearly $500 billion, yet only about 1% of primetime ads include disability-related visuals or themes. Furthermore, while there have generally been steps in the right direction to represent culturally diverse markets across marketing efforts, you could hardly claim that it is enough when thinking about a demographic cohort that has $3.9 trillion in total buying power.
As you can see – and my colleague in financial services clearly realized – if you’re not moving toward culture-centric leadership and building a culture-centric organization, then you’re leaving money on the table or giving consumers a reason to go somewhere else for their loans, mortgages and, with many banking institutions, their lifelong brand loyalty.
C-suite challenge: How did you advocate for women leaders today?
INCLUSIVE MARKETING MENTAL MAP CHEAT CODE
Since we’re divulging secrets here, let me fill you in on another you may not be thinking about – the change I’m addressing is on the way whether you like it or not. The sheer size of the Millennial and Gen Z generations has already had a significant consequence on the economy and that wave is only going to gain momentum.
The change is already underway, so choosing to ignore that it’s here is putting your organization’s future in peril. From this perspective, building a culture-centric business is imperative and will have long-lasting benefits as these ideas become ingrained across the organization.
Frank Cooper III, chief marketing officer at Visa, has outlined the value of inclusive marketing by emphasizing brand value with doing good for society. “People are increasingly taking a much more holistic view of the brand’s intentions and behaviors: how it treats its employees; its fairness toward suppliers; its role within communities.” As a result, he explains, “It’s no longer just about the product or service; rather, the brand has become an expression of the entire company. From the perspective of everyday people, who we are now are brands that sell, but who we can become are brands that serve.”
If companies want to be seen as serving society as Cooper suggests, then it will take a mindset shift among leaders who may not be comfortable with change. Here are some points we’ve developed at The Diversity Movement, based on our work with hundreds of clients on inclusive marketing and leadership programs.
Inclusive Marketing Mental Map Cheat Code
– Create campaigns that are a reflection of your company’s values and beliefs
– Inclusive Review Process (Is your marketing team diverse?)
– Have you created an inclusive style guide vetted by diverse audiences?
– Inclusive campaigns throughout the year, not just on “diverse” holidays
– Ensure your customer/employee personas reflect diverse characteristics
– Recognize that diverse groups aren’t monolithic
– Move beyond representation to connect to community
– Rely on metrics (focus on the data, not the drama)
WHY INCLUSIVITY MATTERS (BESIDES THE LOST REVENUE)!
Are we entering an era when businesses must move beyond profits and returns for shareholders to a more holistic perspective? I don’t think it’s the “either/or” that many people assume. C-Suite leaders can have a significant impact on the bottom line in all the traditional ways while also fully recognizing culture’s central role in future success. I can’t see any other way. The great business thinker Peter Drucker said it even more succinctly, “A time of turbulence is a dangerous time, but its greatest danger is a temptation to deny reality.”
The reality we face as business leaders is thinking today and tomorrow are going to be the same as they were “back then.” What does inclusivity mean for marketing and branding:
– Moving from representation to recognition, belonging and community
– Elevating stories and voices of people who have been typically marginalized or underrepresented
– Deepening connections with the community and influencing positive social change
“People expect more,” Visa’s Cooper III says. “They want the brands that truly matter to represent both greatness and goodness. They want a great product or service and they want the brand to deliver toward a public good…In this new era, brand marketers are not just the ‘voice of the consumer.’ They are the conscience of the company as a whole.”
What have you done today to move the needle on inclusivity for your organization?
About the Author
Donald Thompson, CEO and co-founder of The Diversity Movement, is author of Underestimated: A CEO’s Unlikely Path to Success. As an executive coach and board member, he focuses on goal achievement, building culture-centric leaders and organizations and driving exponential growth. Donald hosts the “High Octane Leadership in an Empathetic World” podcast and is an award-winning entrepreneur, keynote speaker and Certified Diversity Executive (CDE). Connect with or follow Donald on Linkedin to learn more.
