One on One with Capco's Dee McDougal

Consulting: What areas do you see major progress taking place around D&I, and what are some areas where companies still have a lot of work to do?

McDougal: Many companies are currently taking important first steps towards addressing D&I challenges and opportunities: dedicating full-time resources, developing strategy and programs, and allocating budget dollars. That said, while many diversity leadership roles were created last summer in response to requests for corporate action on racial equity and social justice issues, LinkedIn data shows that there has been a 70% increase in D&I roles over the past five years. Whether companies are hiring proactively as an investment to foster innovation and drive business results, or as a reaction to social and racial injustice, each and every resource dedicated to enhancing a company's diversity and inclusion efforts should be celebrated.

Being laser-focused on representation metrics can often leave inclusion and belonging as afterthoughts within D&I strategy conversations, which is a mistake. To create systemic and sustained change, companies must also examine their cultures and understand the experience of those from under-represented groups. This has been Capco's own approach, committing to new hiring targets and looking to accelerate culture change through our affinity groups and refreshed training programs. Companies in the US often prioritize DEI efforts on race, ethnicity and gender, which leaves little room to focus on different life experiences and points of view. There is more to be done across all dimensions of diversity.

Consulting: Talk about the importance of a diverse and inclusive workplace, and what effect it has on companies?

McDougal: Studies show that diversity drives better business performance. As consultants, we solve problems for our clients. Bringing a diverse team to the table representing different backgrounds, perspectives, and life experiences — allows us to think more broadly and creatively, and to develop better solutions for our clients.

We also know that inclusion and belonging are what drive employee engagement and retention. When employees feel that they are not welcome or valued, engagement plummets, and they no longer contribute to the best of their abilities. And often, they communicate their negative experiences or feelings to colleagues and friends, which can have ripple effects. We don't often consider the reputation and talent risk considerations tied to diversity and inclusion.

There are also costs associated with a lack of diversity, ranging from not meeting clients' expectations to human capital expenses. The sharpened focus on diversity and inclusion spans industries and company size. Stakeholders are looking for their partners to provide tangible examples of how their firms are addressing diversity challenges within their organizations.

Consulting: What impact do you see from last year's protests, the rise of Black Lives Matter, and the ongoing national reckoning on racial inequality having on companies' efforts to foster more inclusive workplaces?

McDougal: Last year's protests were a social catalyst for corporate change. Diversity, equity, inclusion, belonging and access became topics of C-Suite conversation in ways that we haven't seen before. Public statements on race from leaders across industry and commerce alongside many private, internal conversations served to legitimize and amplify the voices of the many individuals who wanted to share their experiences. Over the course of a few weeks, interest in DEI programs and their visibility skyrocketed. 

Companies are now leaning in, providing space for curiosity and experience-sharing, but more importantly, DEI resources and training. In addition to increasing DEI competence, many companies are reviewing programs, policies and procedures to identify opportunities to reduce bias and improve experiences for diverse employees. 

Consulting: For companies who want to kick off their own efforts around diversity and inclusion, what is the best place to start, and what are some key measurements they can use to see if their efforts are paying off in a meaningful way?

McDougal: Start by understanding that this is a marathon, not a sprint. There are no quick fixes. On a macro level, D&I work is about culture change, and that can only be successfully achieved through changes in individual behavior. Public commitments increase visibility and accountability, and can galvanize employee buy-in and support. Companies need to ensure alignment between public statements and employee sentiment. At Capco, the six pillars of our public commitment focus on strengthening our culture of inclusion and increasing representation of women and people of color from Associates to Leaders. Employees are excited about our commitments and feel a sense of ownership in helping the firm reach our goals. 

Regularly assessing diversity data throughout the employee lifecycle is also a great place to start. Analyze the data around applicants, hires and separations. Review who gets promoted, who is identified as high potential, and dig deeper into performance management and compensation information to identify any disparities. Qualitative metrics will help to round out insights on employee experience. Let the data tell the story. Allow your learnings to inform your next steps.