GETTING REAL ABOUT INCLUSIVE LEADERSHIP

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GETTING REALABOUT INCLUSIVELEADERSHIPWHY CHANGESTARTS WITH YOUDNIKA J. TRAVIS, PHDEMILY SHAFFER, PHDJENNIFER THORPE-MOSCON, PHD

Managers Have thePower and Responsibilityto Lead With Inclusion You feel stuck leading your team—unsure of the best approach tohelp people take more ownership of their work. Everyone you work with is geographically dispersed, and youare getting feedback that people are not trusted to make theirown decisions. Your team members fear making mistakes—and while you don’tLEADINGOUTWARDWhat you do to ensureteam members are treatedfairly, empowered, andable to flourish.want to admit it, so do you. Since you’re on the hook to show measurable progress for yourcompany’s inclusion and diversity goals, you feel mountingpressure to “get it right” or to “fix it.”LEADINGINWARDRequires a hard look atwho you are and your innerability to act courageously,learn, and self-reflect.As a people manager, you’ve probably faced one or more of these dilemmas.And while you may be confident in your ability to deliver on business goals,creating a cohesive team where everyone is excited to contribute andinnovate can be more challenging.Building an inclusive team culture is key. We surveyed over 2,100 employeesat large corporations—most of whom worked in one of 8 countries—to lookdeeply at predictors of inclusion. Our findings show that a manager’s behaviorhas a direct link to an employee’s experience of inclusion—in fact, almost halfof an employee’s experience of inclusion can be explained by managerialinclusive leadership behaviors.1And what are the manager behaviors that predict inclusion? We tested that,too—and we uncovered2 a model of inclusive leadership3 that balances bothleading outward and leading inward. Leading outward is what you do toensure team members are treated fairly, empowered, and able to flourish.Leading inward requires a hard look at who you are and your inner ability toact courageously, learn, and self-reflect.CATALYST.ORGGETTING REAL ABOUT INCLUSIVE LEADERSHIP: WHY CHANGE STARTS WITH YOU 2

We found that managers who practice both leading outward and leadinginward can boost employee experiences of being valued, authentic,trusted, and psychologically safe at work—the hallmarks of an fitemployeesandcompanies in tangible ways—increasing team problem-solving, 5 employeeengagement, 6 retention,7 and employee innovation. 8So let’s get real. You as a manager have the power and responsibility to leadwith inclusion and reap the benefits for both your business and your teammembers. Start by understanding the six core leadership behaviors and howthey are connected to employee DCURIOSITYOWNERSHIPHUMILITYALLYSHIPCOURAGEPREDICTS AN INCLUSIVE ngGETTING REAL ABOUT INCLUSIVE LEADERSHIP: WHY CHANGE STARTS WITH YOU 3

Key Findings Catalyst’s inclusive leadership model powerfully predicts inclusionamong employees in a diverse cross-section of countries and populations.o 45% of employee experiences of inclusion are explained by theirmanagers' inclusive leadership behaviors. Our model features two complementary dimensions and six corebehaviors.POSITIVEEXPERIENCESOF INCLUSIONBENEFIT BOTHEMPLOYEES ANDEMPLOYERS.o Leading outward accountability, ownership, allyship.o Leading inward curiosity, humility, courage. Many respondents report “often” or “always” having a positive experienceof inclusion at work, but a large percentage do not—highlighting anopportunity for managers to improve their own inclusive leadership skills. Positive experiences of inclusion benefit both employees and employers.9These experiences of inclusion explain:o 49% of team problem-solving.o 35% of work engagement.o 20% of intent to stay.o 18% of employee innovation.CATALYST.ORGGETTING REAL ABOUT INCLUSIVE LEADERSHIP: WHY CHANGE STARTS WITH YOU 4

ABOUT THIS STUDYThis study draws from quantitative data collected through the Catalyst Inclusion Accelerator—a diagnostic tool that evaluates and monitors how employees and teams experience inclusion.It includes survey results from 2,164 employees10 from 15 global companies in mostly eight countries.GENDER50%SEXUAL ORIENTATION 1%WomenMenNon-binary/Gender-fluid/Third gender/Trans spectrum3% 1%47%Prefer notto sayPrefer toself-describe90%3%Do notidentify aslesbian, gay,bisexual,queer, orasexualIdentify aslesbian, gay,bisexual, queer,or asexual7%Prefer notto sayETHNICITY11AGE28%72%identifyas whiteidentify as amember of anunderrepresentedracial or ethnicgroupJOB LEVELFirst-level management(manager of employees)22%11%3% 1%AVGSecond-levelmanagement (managerof managers)Executive-levelmanagementUnited StatesUnited KingdomIndiaArgentinaBrazilC-level .ORG73COUNTRY CURRENTLY WORKING INNon-management orindividual contributor63%431813%6%5%2%2%1%3%GETTING REAL ABOUT INCLUSIVE LEADERSHIP: WHY CHANGE STARTS WITH YOU 5

Leading Outward,Leading Inward“To become a truly transformational leader requires an investment inboth inner and outer work. There is self—the capacities, knowledge, andINCLUSIVE WORKPLACEinsights you cultivate as a leader. And there is the other—the world aroundAn atmosphere where peopleyou that you affect. These two sides are inextricably linked, with eachcan belong, contribute,realm informed by and depending on the other.” —Gretchen Ki Steidleand thrive.12Companies can’t add diversity to the mix of a team and expect that people willautomatically collaborate, connect, resolve conflicts, or innovate as a cohesiveunit. Aiming to improve your company’s demographic diversity (e.g., gender,ethnicity, ability) without also aiming to improve employee experiences ofinclusion is not good for employers or employees.13 To generate exceptionaloutcomes, people need to work in an inclusive atmosphere where they canbelong, contribute, and thrive.14As a manager, you need to develop competencies to lead your teaminclusively so it can attain the extraordinary results you and your companyrequire. Your efforts will be well worth it—45% of employee experiences ofworkplace inclusion can be explained by our leadership model of leadingoutward and leading inward.45%CATALYST.ORGPercentage of Experiences of anInclusive Workplace Explained byManagerial Inclusive LeadershipGETTING REAL ABOUT INCLUSIVE LEADERSHIP: WHY CHANGE STARTS WITH YOU 6

Six Core BehaviorsWe found six core behaviors associated with leading outward and leadinginward. Some of them may come naturally to you—and some may not. Youmay have discussed some of them with a mentor, in business school, or ina leadership-development course. Others may surprise you or make youuncomfortable.15 But our data show that they’re all important to generatinga team that is successful because its members support, trust, and respectone another.LEADING OUTWARD AND YOUR ROLE IN CREATING ANEMPOWERING WORK ENVIRONMENTKeep in mind that part of your role as an inclusive leader is to lead outward—ensuring team membersare empowered, treated fairly, and can flourish at work. However, you must take a bold step andreconsider what it means for people to be empowered.Empowerment is something that is owned by an individual or community. Although peoplecommonly say, “I empower my team,” “I empower you,” or “Leaders empower their people,” thesestatements misconstrue empowerment. In fact, a manager—or any person—can’t empower anotherperson; a person or community must empower themselves. Saying “I empower you” implies that powercan be given and taken away, which actually can be disempowering, and reinforces existing inequitiestypically found in company hierarchies. Instead say, “I focus on creating opportunities for the team tofeel empowered.” Or “I am dedicated to making sure our team has what they need to succeed.”Still, a manager can help create an environment in which people can feel or be empowered. Catalystresearch points to three behaviors essential to leading outward to ensure your employees areempowered: accountability, ownership, and allyship.CATALYST.ORGGETTING REAL ABOUT INCLUSIVE LEADERSHIP: WHY CHANGE STARTS WITH YOU 7

LEADING OUTWARD, LEADING INWARD: SIX CORE BEHAVIORS (1 of 2)Leading OutwardYour ability to bolster team members’ capacity to be empowered, treatedfairly, and flourish at work.ACCOUNTABILITYOWNERSHIPALLYSHIPYou hold team membersYou guide team members toYou actively support people fromresponsible for their behavior,solve their own problems andunderrepresented groups.development, and workmake their own decisions.processes. Guide team members to set Share the broader purpose and Amplify the voices oftheir own clear and measurablecontext of the work, creatingunderrepresented orgoals.a clear line of sight. Allowmarginalized groups.2116 Check in regularly andreevaluate goals as situationschange. Set expectations for ongoingconstructive two-way feedback. Engage in dialogue withpeople to identify and solveemployees about the realitiestheir own problems.17 Encourage team members toof biases, discrimination,develop “big picture” thinking.18 Have candid discussions aboutand barriers.22 Interrupt biased behaviors—Focus on both strengths and“non-negotiables” to helpand encourage others to doareas of improvement.team members make decisionsthe same.2319and do their work. Ensure team members have Reflect on who is consideredan ally or not. Then disrupt theresources to perform well inidea that allyship is reservedtheir roles. 20for people who are white and/or male.CATALYST.ORGGETTING REAL ABOUT INCLUSIVE LEADERSHIP: WHY CHANGE STARTS WITH YOU 8

LEADING OUTWARD, LEADING INWARD: SIX CORE BEHAVIORS (2 of 2)Leading InwardYour ability to act courageously, learn, and self-reflect.CURIOSITYHUMILITYCOURAGEYou proactively seek toYou take ownership for mistakesYou act in accordance withunderstand different pointsand learn from missteps.your principles, even when itof view.involves personal risk-takingor is uncomfortable. Learn from those around you, Don't assume that others share Stand up for your convictionsparticularly those with differingyour viewpoints or approaches.and principles, even if it’sviews and experiences.24Check your assumptions.uncomfortable.25 When listening to a teammember describe an issue orproblem, don't immediatelytry to fix it. Instead, ask ameaningful follow-up question. Seek feedback. Encourage Create a one-day leadershipteam members to tell youchallenge for you and teamthe truth.members. Pinpoint one thing Talk to your team membersyou each can do differently.about your failures.Track and discuss misstepsRole model by sharing storiesand progress.and learnings.CATALYST.ORGGETTING REAL ABOUT INCLUSIVE LEADERSHIP: WHY CHANGE STARTS WITH YOU 9

Five Hallmarks of InclusionWhen you practice the six core behaviors associated with leading outwardand leading inward, you can help drive experiences of inclusion. But youmay wonder what exactly these experiences are. Our data identified specificexperiences that people report when they are included—five aspects ofthe holistic experience of inclusion—that you may or may not have felt atwork yourself. Understanding these five hallmarks of inclusion will help youcalibrate your own behavior as you cultivate an inclusive team.WHEN YOU EXPERIENCE AN INCLUSIVE WORKPLACE, YOU ARE:VALUEDTRUSTEDAUTHENTICYou are appreciated andYou make meaningfulrespected for your uniquecontributions and are influentialwork and express aspects ofperspectives and talents.in decision-making.yourself that may be differentYou can bring your full self tofrom your peers.PSYCHOLOGICALLY SAFE: LATITUDEPSYCHOLOGICALLY SAFE: RISK-TAKINGYou feel free to hold differing views and makeYou feel secure enough to addressmistakes without being penalized.tough issues or take risks.CATALYST.ORGGETTING REAL ABOUT INCLUSIVE LEADERSHIP: WHY CHANGE STARTS WITH YOU 10

A DEEPER DIVE INTO TWO ASPECTS OFPSYCHOLOGICAL SAFETYWorkplaces that promote psychological safety are often thought of as environments whereemployees can make mistakes and take risks without being penalized. 26 Our findings reveal thatthese two aspects of psychological safety are distinct and unique. 27 For example, it’s possiblefor employees to feel as though they can express differences and make mistakes without beingpenalized, but that same sense of safety may not exist when it actually comes down to taking thoserisks and addressing tough issues. Recognizing this more nuanced view of psychological safetyallows managers to understand employee experiences more fully, pinpointing actions to fostera psychologically safe workplace.PSYCHOLOGICALSAFETY: LATITUDEWHAT IT ISWHAT MAKES IT DISTINCTYou feel free to holdHighlights the expectationdifferent views and makeand perception that peoplemistakes without beingcan step outside of the statuspenalized, rejected, orquo in thoughts or actions,viewed as a troublemaker.and that mistakes will not leadto undue consequences.PSYCHOLOGICALSAFETY:RISK-TAKINGWHAT IT ISWHAT MAKES IT DISTINCTYou experience a sense ofEmphasizes a worksecurity when addressingatmosphere where peopletough issues at work, askingfeel secure and confidentfor help, and taking risks.enough to engage inconstructive risk-takingbehaviors, rather thanfeeling undermined28 orshamed.CATALYST.ORGGETTING REAL ABOUT INCLUSIVE LEADERSHIP: WHY CHANGE STARTS WITH YOU 11

Mediocrity Doesn’t Cut ItWhen It Comes toEmployee InclusionOur findings showed that a large number of respondents “often” or “always”have a positive experience of inclusion at work.At first glance, you may think these scores are relatively positive, but let’sthink about it a bit differently. Take a mid-ranked score as an example: 6 of10 people (60%) report feeling secure enough to take risks or address toughissues at work. That’s more than half—but on the flip side, it means that 4 in 10people do not share that same experience. Perhaps those team members arelimited in taking constructive risks and tackling challenging issues within theteam. What are the costs to your team? To their ability to suggest new ideasand solve complex problems? To employee engagement?To reap the benefits of inclusion, you must recognize that mediocrity is notenough to drive meaningful impact. As a leader, you must take proactive andTO REAP THEBENEFITS OFINCLUSION,YOU MUSTRECOGNIZE THATMEDIOCRITY ISNOT ENOUGHTO DRIVEMEANINGFULIMPACT.intentional action. Remember—inclusion is a journey filled with successes andsetbacks; it’s not a destination.29PERCENTAGE REPORTING “OFTEN” OR “ALWAYS” HAVING POSITIVE EXPERIENCES OF INCLUSIONVALUEDTRUSTED56%PSYCHOLOGICAL OLOGICAL SAFETY:RISK-TAKING60%GETTING REAL ABOUT INCLUSIVE LEADERSHIP: WHY CHANGE STARTS WITH YOU 12

BREAKOUTS OF EMPLOYEE EXPERIENCESOur study findings point to both unique and shared experiences of inclusion across genders.We recognize that we have smaller sample sizes among some groups, yet meaningful patterns exist.If you also have a small sample size or your findings seem ambiguous, dig a bit deeper. Employees' worklives are often affected by their experiences as people with intersectional identities such as gender,race, ethnicity, religion, age, LGBTQ identity, etc. More granular views of employee experiences ofinclusion are needed to truly make an impact. Women reported statistically significantly lower scores than men on two of the five dimensions of aninclusive workplace: Trusted.30 Psychological safety: Risk-taking.31 People who preferred not to indicate their gender reported feeling less included across all aspectsof an inclusive workplace compared to people reporting their gender as woman or man. This patternis striking, even as we acknowledge that there is more insight needed. More and more employeeswant to reflect aspects of their identity in a dynamic way, rather than only “checking a box.”32Although this may be a challenge for understanding inclusion metrics, it is an opportunity formanagers to address real issues faced by their employees.CATALYST.ORGGETTING REAL ABOUT INCLUSIVE LEADERSHIP: WHY CHANGE STARTS WITH YOU 13

PERCENTAGE REPORTING “OFTEN” OR “ALWAYS” EXPERIENCING AN INCLUSIVE WORKPLACEGENDER1ALL WOMEN55%VALUED58%64%TRUSTEDPSYCHOLOGICAL SAFETY:LATITUDEPSYCHOLOGICAL SAFETY:RISK-TAKING24%65%58%WOMEN OF COLOR39%MEN OF COLOR53%56%65%69%53%51%AUTHENTICPSYCHOLOGICAL SAFETY:LATITUDEPSYCHOLOGICAL SAFETY:RISK-TAKING41%46%61%55%PREFER NOT TO SAYNOYESVALUED63%TRUSTED63%PSYCHOLOGICAL SAFETY:LATITUDEPSYCHOLOGICAL ALUEDIDENTIFY AS LESBIAN,GAY, BISEXUAL, QUEER,OR ASEXUAL 451%73%54%AUTHENTICRACE/ETHNICITY3PREFER NOT TO SAY2ALL MEN49%46%61%56%53%50%69%55%46%61%37%32%50%1. The difference between men and women for trusted and psychological safety: risk-taking is significant, p .01. Sample size was not large enoughto report on experiences of individuals who identify as non-binary or prefer to self-describe.2. The sample size of those who report preferred not to say for gender was small, so statistically significant differences could not be determined.However, the sample was sizeable enough to present patterns for exploring and further discussion.3. Race and ethnicity data were drawn from those in Canada, the United States, the United Kingdom, Ireland, and Australia only. No significantdifferences were found between women and men of color.4. Sample size restrictions prevented us from examining statistically significant differences for those who identified as LGBQA or preferred not to say.However, we present the pattern of findings for further discussion. Transgender individuals are not considered here because this question pertainsonly to sexual orientation, not to gender identity.CATALYST.ORGGETTING REAL ABOUT INCLUSIVE LEADERSHIP: WHY CHANGE STARTS WITH YOU 14

Lead Inclusively.Make an Impact.AS A MANAGER,YOU HAVE ARESPONSIBILITYTO BE ACONSTANTROLE MODELFOR INCLUSIVEBEHAVIOR.As you can see, inclusive leadership and employee experiences of inclusionare intertwined.33 Indeed, the more managers engage in inclusive leadershipbehaviors, the more employees feel valued, trusted, authentic, andpsychologically safe at work. It is a profound connection: our study findingsshow that for every one-unit change in inclusive leadership, there was a 2/3positive uptick, or step up, in respondents’ experience of inclusion.As a manager, you have a responsibility to be a constant role model forinclusive behavior. Because change starts with you, lead inward—demonstratecourageous leadership, be curious, learn from others, let go of your desireto be right, and own your limitations. And lead outward by supporting yourteam—hold them accountable, give them the support to take ownership oftheir work and their specific role, and advocate on their behalf.INTERCONNECTION BETWEEN INCLUSIVE LEADERSHIP AND INCLUSIONManagerial InclusiveLeadershipExperience ofInclusionCATALYST.ORGGETTING REAL ABOUT INCLUSIVE LEADERSHIP: WHY CHANGE STARTS WITH YOU 15

The Benefits of InclusionEmployee experiences of inclusion34 are sparks that generate benefits foremployees and employers. Previous research has found that different aspectsof inclusion are connected to enhanced innovation and team citizenship,35ability to speak up,36 and job performance,37 as well as reduced job neglect38and conflict among diverse groups.39 Adding to those benefits, our studyfound that employees' overall experiences of inclusion also explain:TEAM PROBLEM-SOLVING49%An employee’s view of how constructively theirteam works together to find solutions to problemsand resolve conflicts.WORK ENGAGEMENT35%An employee’s emotional investment in their workand the company’s mission.THE FACT THATINCLUSIONEXPLAINS 18%TO 49% OF THESEPHENOMENA ISINVALUABLE—ESPECIAL

inclusive leadership behaviors.1 And what are the manager behaviors that predict inclusion? We tested that, too—and we uncovered2 a model of inclusive leadership3 that balances both leading outward and leading inward. Leading outward is what you do to ensure team members are treated fairly, empowered, and able to flourish.

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