Questions Boards Can Ask to Better Govern Inclusion: How to assess the effectiveness of your DEI program, and what to do next.

• Author: Fouty, Janet
• Position: EYES FORWARD: Inclusion

In recent months, the conversation surrounding diversity, equity and inclusion (DEI), specifically in corporate America, has significantly accelerated. However, real progress requires accountability. That is why companies and their leaders must move beyond verbal commitments to DEI and focus on tangible results.

Boards play a critical role not only in setting the tone for an organization's overall inclusive culture, but also in holding management accountable for outcomes. That requires these oversight bodies to be reflective of the diverse stakeholders they are serving. Deloitte's Board Inclusion Framework provides an actionable strategy for boards to instill accountability for better outcomes. We recommend that the high-level vision of DEI into concrete steps that directors can take to increase inclusion across their organizations.

Boards must promote inclusion as well as diversity. A clear understanding of the distinction between these terms is necessary.

* Diversity refers to the presence of people who, as a group, have a wide range of characteristics, seen and unseen, that they were born with or have acquired. These characteristics may include their gender identity, race or ethnicity, military or veteran status, sexual orientation, ability, experience, background, skill set or perspective.

* Inclusion refers to the practice of making all members of an organization (including board members) feel welcomed, giving them equal opportunity to connect, belong and grow--to contribute to the organization, advance their skill sets and careers, and feel comfortable and confident being their authentic selves. In an inclusive culture, employees are much more likely to see themselves as part of a high-performing organization in which teams collaborate and customer needs are more consistently met.

Organizations that operate in an inclusive culture with a diverse workforce generate up to 30% higher revenue per employee, are more profitable than their competitors and are eight times more likely to achieve positive business outcomes. These teams also have less "groupthink" and higher levels of innovation, as noted in the Bersin by Deloitte report, "High-ImpactTalent Management: The New Talent Management Maturity Model."

Below are recommended actions paired with initial questions boards should consider to assess the level of inclusion across five key areas of a board's organizational oversight. These questions are designed to spark honest discussions as...