Why the Diversity Industry Has Failed–and How to Fix It

BY Angelica Frey | December 24, 2020

Author and journalist Pamela Newkirk, PhD, has spent a considerable portion of her life in journalism and higher education. “In three of four newsrooms, I was the only African American news reporter. I would later become one of two people of color on New York University’s tenure-track journalism faculty,” she writes in the preface to her 2019 book Diversity, Inc.: The Failed Promise of a Billion-Dollar Business. “During more than three decades of my professional life,” she continues, “diversity has been a national preoccupation. Yet despite decades of hand wringing, costly initiatives, and uncomfortable conversations, progress in most elite American institutions has been negligible.”

In a conversation at From Day One’s December virtual conference on inclusive leadership, Newkirk reflected on the theme of her book as well as the surge of corporate commitment to diversity in response to this year’s racial-justice movement. “It was already beginning to boom, as I was completing the book around 2017, early 2018. And since that time, it blossomed even more,” Newkirk told Fortune associate editor Emma Hinchliffe in a fireside chat about why the diversity industry has failed–and what can be done to fix it. “It is one of the huge growth industries right now, and I think a lot of that was due to the ways in which race has been so highlighted during these past four years, beginning with the election of Donald Trump.”

In recent years, many Fortune 500 companies, as well as organizations in higher education and government, have hired their first chief diversity officers. “Surely many institutions had long had someone in a role like that, but the idea of chief diversity officers has just caught fire,” Newkirk said. “Many people see it as a cure, as if having these people in the organization is the answer.  The hiring of a diversity officer is the beginning. It should not be seen as the end game.”

Fireside chat: Fortune's Emma Hinchliffe interviewing author Pamela Newkirk (Image by From Day One)

Chief diversity officers arrive in an organization as, in Newkirk’s words, “change agents.” That’s what the job calls for, but the system around them doesn’t always welcome that disruption. “Oftentimes, they are among the most marginalized people, particularly in executive roles. Time after time, they say they are marginalized, they are not given the resources, they don't have a direct line to the CEO or to the university president. All of these things will just undermine any chance they have of being successful,” Newkirk said. It’s almost as if top management believes that “just the symbolism of having them there is enough.”

In fact, a chief diversity officer can do very little without the full commitment of leadership. D&I professionals will be only as successful as those in power allow them to be. A 2019 report by management consulting firm Russell Reynolds Associates, which examined diversity in Fortune 500 companies, found out that only 35% of diversity officers had access to the personnel metrics of the organization, which meant they could barely see where the problems were. “All the ways bias can metastasize, you can only know if you have transparent metrics that you can quantify,” said Newkirk. “And so that's just an indication that many people in that role are not given the support that they need to actually be successful.”

The main shortfall of employers’ efforts toward diversity, Newkirk said, is a check-the-box approach, rather than a holistic one. “It’s as if you can have a diversity survey, a climate survey, do one or two things, and ‘Voila!’,” said Newkirk.

Newkirk explained that research is showing that anti-bias training may at best change attitudes for a day, but it can also make the problem worse by prompting resistance. “Anti-bias training, in itself, is not working,” said Newkirk. “So what I would say, whether you do anti-bias training or not, these institutions need to shift their focus from trying to change hearts and minds to actual interventions.”

One of those interventions the employee-recruitment pipeline, which can help employers reach out to a broader candidate pool. “Many organizations continue to hire from a very, very small network,” Newkirk said. “We live in a rigidly segregated society. People hire who they know, they hire who their friends know, they hire who's recommended. And oftentimes people of color are just left out of that network, so this kind of workplace homogeneity is self-perpetuating,” she said. “Breaking that cycle takes intention, and it takes will.” Organizations also need to be intentional about outreach and mentoring. “If we keep doing the same thing,” Newkirk warned, “we’ll keep getting abysmal results. Many would rather spend millions in diversity efforts,” she said, alluding to training workshops, “rather than invest in mentoring or expanding the pipeline in looking outside the familiar.”

For many years, Newkirk observed, people tended to assume that after civil-rights movements, all had been resolved. “If there’s one silver lining from the tragedies that took place over the summer, I think that it has finally broken through to more people that we still, despite the progress that has been made, have not completed the job. And without vigilance, we can lose ground on even the progress that was made,” she said.

As for organizations, their hefty down payments toward racial justice were welcome as far as they went. “This is all well and good, but there was no looking inward into the bias that’s living within the walls of these organizations,” said Newkirk. “It’s not just about writing a check, it’s looking at what leaders can do to ensure there’s greater justice, racial inclusion, representations.”

Alas, even success stories are not necessarily permanent. “One of the companies that I featured in the book is Coca-Cola, and I looked at how they built a more diverse and inclusive workplace after a discrimination lawsuit settlement in 2000,” Newkirk said. “Over a five-year period, with a system of transparent metrics, where they looked at employees across racial lines–they were looking for issues of equity and pay and promotions–they were able to see where the virus had metastasized.”

The company kept that kind of transparent system going and added a layer of accountability on top of that, with a task force that was overseeing the efforts to change the workplace, Newkirk said. In a period of five years, the company was able to make significant strides in diversifying the workplace, even in management positions. “Now, I understand that in recent years, there's been some backsliding,” said Newkirk. (From Day One reached out to Coca-Cola for comment and will update this story with any responses we receive.) “But I don't think that diminishes the model that was set in the way it was done,” Newkirk added optimistically. “It could be replicated by any institution that really wanted to change.”

Angelica Frey is a writer and a translator based in Milan and Brooklyn.


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Her work has appeared in the BBC, the Economist, the Washington Post, Quartz, Fast Company, and Digiday’s Worklife.

Emily McCrary-Ruiz-Esparza | April 10, 2024

Where to Start: Making the Workplace Inclusive of Neurodiversity

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A workplace that is psychologically safe is welcoming to all, neurodivergent or not.Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the BBC, the Economist, the Washington Post, Quartz, Fast Company, and Digiday’s Worklife.

Emily McCrary-Ruiz-Esparza | March 29, 2024

How to Create and Sustain a Growth Mindset to Nurture Talent

When Dr. Mary Murphy was working on her PhD at Stanford, she was mentored by Carol S. Dweck, best-selling author of Mindset: The New Psychology of Success, a book that covers the potential of individuals. Now a social psychologist, Murphy has taken the mindset concept a step further and for over a decade has studied how the “fixed” or "growth” mindset affects not only individuals, but groups of people. Murphy discussed research from her book, Cultures of Growth: How the New Science of Mindset Can Transform Individuals, Teams, and Organizations, and how it can help teams during a fireside chat at From Day One’s March Virtual Conference.Those with a fixed mindset, Murphy says, believe in being born with skills that can’t grow any further. While those with a growth mindset believe they can learn and grow into new abilities. When talking about teams, organizations, families—there is a similar mindset culture.In a fixed mindset culture, or a “culture of genius” as Murphy called it, the focus is on the star performers. The opposite is a “culture of growth” where there is a focus on continuous learning so anyone can grow and contribute. And it’s that culture of growth that organizations need.Idea SparkIn 2005 during her PhD program, Murphy clearly recalled when this group application of mindset sparked. She was at a grad student seminar supporting a friend, where a professor voiced his opinion about what the fatal flaw of this student’s work was. Another professor chimed in and disagreed, saying the fatal flaw was something else. In essence, it was a battle of which professor was right.“I saw what it was doing to my friend,” she said. “All of a sudden, he lost focus. He wasn’t able to answer questions.” Unfortunately, the experience was so painful that months later he hadn’t continued his work.Two weeks later, in a different seminar, she witnessed something else. Rather than critiquing the students about what was wrong, the professors offered ideas on how to grow the project. The effect was clear. “The students were able to respond totally differently,” Murphy said. “They were able to actually engage in the brainstorming, answer the questions, and they left motivated to dig in.”Reflecting on those two experiences or environments, she realized how much a group can impact an outcome. The harsh approach was not motivating at all. On the other hand, the mentality of growth and how we can all contribute really turned things around for the better.Dr. Mary Murphy discussed her new book Cultures of Growth: How the New Science of Mindset Can Transform Individuals, Teams, and Organizations in a fireside chat moderated by From Day One co-founder Steve Koepp (photo by From Day One)Murphy presented the idea to her new mentor, asking what if mindset is more than just internal? What if it’s baked into culture and influences the cultivation of talent? She blinked a few times and said, “No one's ever thought of mindset this way. But we should do it together. And that began 15 years of work on reconceptualizing the mindset, as not just in our head, but also as this cultural feature.”Time to StudyNow with 75 studies in her back pocket, Murphy has seen firsthand just how deep mindset goes. Murphy and Dweck looked at the mindset of teachers and faculty members in K-12 and college and how they practice that in the classroom.“We look at how that impacts student experience. We’ve created apps that actually measure student experience in the moment looking at their sense of belonging, whether they think their teacher has a growth mindset, belief for them or not, their sense of self efficacy, their trust of the teacher.”What they found was that even if a student has a growth mindset, when set into a fixed mindset culture, they won’t have the opportunity to benefit from their growth mindset. The group trumps and stilts their progress.  In the National Study of Learning Mindsets, a randomized control trial of more than 12,000 students around the country underwent a growth mindset program to see how it would impact their grades and if they’d be willing to take challenging courses. As expected, it had a positive effect. Their GPA was higher and more of them enrolled in the challenging courses than the control group. They also looked at where the program didn’t work.“The answer was two places,” Murphy said. “It was with teachers that had more fixed mindset beliefs or engaged in fixed mindset practices, then giving students that personal growth mindset. The effect was zero. It had no impact. It wasn't even a small impact – it had no impact.”The other place it didn’t work was when peers didn’t engage in challenge seeking, then students were less likely to want to work hard. But when there were teachers and peers who relished a challenge and supported each other, the growth mindset helped students flourish.Organizational CultureWorking with companies of all shapes and sizes, Murphy saw similar results. The mindset of a team at large has a huge impact on creativity, collaboration, and innovation. In one study in particular, they looked at the difference between a psychologically safe environment and a growth minded environment. They found that psychological safety is the baseline for any other growth to take place.“Psychological safety just means that you're willing to speak up when something’s gone wrong. But growth mindset culture really is being vigilant about how to improve what you’re doing, your interactions with others, the outcomes and the strategies that you’re trying. You’re proactively looking for improvement opportunities.”In fixed mindset cultures, they search for the narrow genius prototype to come up with all the answers. When in reality, a growth culture would open up the spectrum of recruiting, looking more at positive values. As Murphy says, a growth culture helps organizations naturally look for more diversity. “What’s most important is the extent to which people are willing to develop, grow and learn.”Changing Company CultureIn her book, Murphy goes over four common mindset triggers which can help individuals understand where people are on the fixed to growth spectrum. In turn, those who work with those individuals can help them shift. For example, one trigger is praise. If someone else gets praise, how does the person react? Are they happy for them, or are they jealous, thinking they are less than? One way to help foster a growth mindset is how praise is given. Rather than a “good job!” which doesn’t offer helpful feedback, Murphy suggested managers repeat what the person has done so well, so they can replicate that and others can encourage.When Satya Nadella first came to Microsoft as CEO, he described Microsoft as everyone thinking about their own silo. He read Dweck’s book and wanted to help Microsoft become the first growth minded culture and company. Kathleen Hogan, head of talent, asked how things needed to change so they could recruit and onboard people that would help shift the company’s culture. She implemented changes, but success didn’t come right away. Some bragged they had the biggest growth mindset in the room. “She had to really talk to people about what a growth mindset actually looks like. And to bake that in to some of the incentive systems and also some of the mentoring and sponsoring and support systems so that people could take on challenges could make mistakes, and actually get points for the learning and the growth from those mistakes and the communicating of those mistakes across the company, so that the whole company can learn at the same time more rapidly.” That’s when things picked up. Slowly but surely, the culture was changing. It became okay to make mistakes, but putting out ideas and taking risks and being open to failure became the norm. And that’s how they got cloud computing. Was the culture change worth it? No doubt about it.Carrie Snider is a Phoenix-based journalist and marketing copywriter.

Carrie Snider | March 28, 2024