THE 5 DISCIPLINES OF INCLUSIVE LEADERS
THE 5 DISCIPLINES OFINCLUSIVELEADERSUNLEASHING THE POWER OF ALL OF US
Diversity and inclusion have been championed inbusinesses across the globe for years now. Yet,the stark reality is those from underrepresentedgroups, and in particular, racial and ethnicminorities in many countries, are still not treatedequally and do not feel they have a voice.And now in the wake of recent events in theUnited States that have highlighted the everpresent mistreatment of Blacks, which has hadripple effects around the world, many leadersare finally waking up to the fact that they have arole in speaking to inequities rooted in systemicracism. Other underrepresented groups are alsofacing their own forms of exclusion whetherit’s due to gender, sexual orientation, genderidentity and expression, disability, age, and so on.While the nature of each exclusion has its ownparticularities, patterns, and histories, the bottomline is that many people, just by the nature of whothey are, are living without the sense of physicaland psychological safety that should be a given.The 5 Disciplines of Inclusive Leaders02
Many employers in all sectors have a genuine concern forensuring their talent feels valued, respected, and safe. Theyseek to have equitable organizations where disparities at anylevel including in access, opportunity, support, and reward don’texist. They want to deliver on their promise of equality that noone will be favored or disfavored on the basis of who they are.They find themselves wondering: How to attract the best talent from talent pools that havenever before been tapped? How to ensure that all talent including women, people ofdifferent races, and ethnicities, socioeconomic status, andthose with different physical and cognitive abilities, sexualorientations, or personalities can rise to the fullness of theirpotential and into the highest levels of leadership? How to ensure the increased complexity of more diverseworkforces does not lead to destructive conflict but ratherto better ways of managing it? How to optimize the diversity for greater innovation andorganizational growth? How to tap an organization’s diversity to reach increasinglydiverse, previously unreached consumers and markets anddelight them in a way that is meaningful to them?All these questions seek answers even as we are in the midst ofa global pandemic upending nearly every dimension of life andwork, all piling on unprecedented challenges for how to bestlead. These tumultuous times are also upturning the traditionalmethods of effective leadership. Making good businessplans, managing them well, delegating tasks and protectingemployees from ambiguity is no longer enough in the face ofcontinual disruption.All of this requires a new type of leader.A leader who takes a collaborative and facilitative approachas opposed to one characterized by command and control. Aleader who operates transparently rather than behind closeddoors. A leader who is culturally agile, not tied to their ownworldview. A leader who is able to fully embrace and leveragethe vast diversity of today’s workforces. A leader who cancreate a safe space, regardless of what is happening externally,where people feel accepted and empowered to give the bestof their talents.In essence, an inclusive leader.The 5 Disciplines of Inclusive Leaders03
The bottomline on inclusivityIn a recent Korn Ferry survey ofwhich found that companies in thelagging, rather than merely nottalent leaders there was full ortop quartile for racial and ethnicleading (McKinsey & Company 2018).near consensus about the positivediversity were 33% more likelyimpact of inclusive leadership, withto have financial returns abovemost respondents strongly agreeingtheir respective national industrythat inclusive leaders empowermedians, while those in the topteam members to take risks andquartile for gender diversity werebring their authentic selves to work21% more likely to have financialwhile also helping organizations toreturns above their medians.innovate and capitalize on newConversely, companies in thebusiness opportunities.bottom quartile both for gender(Korn Ferry Institute, 2019)and for ethnicity and race wereOther research points to variousother benefits. Diverse and inclusiveorganizations outperform their peersby being 70 percent more likelyto capture new markets (Diversity& Inclusion in Corporate SocialEngagement 2018), 75 percent morelikely see ideas become productized(Center for Talent Innovation 2013),19 percent SEE higher innovationstatistically less likely to achieveThis view is backed up by hardabove-average returns than averagefinancial metrics. Take themore likely to make better decisionscompanies to which they wereMcKinsey & Company study ofrevenue (BCG 2018), and 87 percentcompared—showing that they were(Korn Ferry Institute, 2018).1,000 companies in 12 countries,Done well, diversity and inclusion maximisesperformance of individuals, teams and organizationsDiverse and inclusive organizationsDiverse and inclusive teams make betteroutperform their peersdecisions and better solve complex problems70%Higher growth70% more likely tocapture new markets33%Better profitabilityCompanies withethnically diverseteams are 33% morelikely to outperformon profitabilityThe 5 Disciplines of Inclusive Leaders75%Faster time to market75% more likely to seeideas become productized19%Better innovationCompanies withabove-average diversityreport 19% higherinnovation revenue87%Better decisionsDiverse and inclusive teams makebetter decisions 87% of the time87%Impact on performance87% of the Most AdmiredCompanies see positive impactof diversity and inclusions ontheir businesses performance04
Inclusive leadershipis not just aboutdiversity and inclusionBefore we look in more detailWhat is significant is the amountat the traits, competencies, andof overlap that exists betweenexperiences that define inclusivethe model for self-disruptiveleadership, let us first consider it inleadership, on the one hand, andthe context of effective leadershipthat of inclusive leadership, on theas a whole.other. Through our research, weInclusive leaders driveorganizational growthin the 21st century.identified five key qualities that selfAt Korn Ferry, we assess anddevelop leaders globally at a rateof 100,000 per month, and wecontinually engage in analysis, study,discussion, and debate about theskills leaders need to succeed. Indisruptive leaders possess, whichare the ability to: anticipate, drive,Biggest challenge:create growth.accelerate, partner, and trust. Manyof the qualities associated with“partner” and “trust” are shared byinclusive leaders.recent research, we have focusedon those key qualities that enableThe point is that being an inclusiveleaders to rise to the challenge ofleader does not just make youmassive disruption. Why is it thata good leader of inclusion andsome leaders can handle change,diversity—it makes you a goodambiguity and unpredictability soleader overall. In fact, 40 percent ofeffectively while others fail?the competencies and traits that defineTo have growth youneed to differentiate.To differentiate youneed to innovate.inclusive leaders are the same as thoseBy analyzing the profiles of morethat define self-disruptive leaders.than 150,000 leaders, and surveying795 investors who fund outwardlyThis is perhaps unsurprising. Leaders“winning” organizations, we werewho will succeed in the futureable to identify a type of leader whoare those who are exceptionallysurvives and thrives amidst constantgood at partnering with diversechange by continually disruptingpeople across internal and externalthemselves—their thoughts, theirecosystems, and at creating thevalues, their actions. We call thesetrusting, inclusive environments thatpeople “Self-Disruptive Leaders”are required to unlock the full powerand we believe they will haveof all the people in the organization.an indispensable role to play inInclusiveness is the new currency ofenabling organizations to innovate,power, influence and effectiveness.grow, and remain competitive inBy harnessing it successfully,the future.leaders will enable their companiesto take the world’s opportunitiesTo innovate youneed diversity.To activate the diversityyou need inclusion.To manage all this you needinclusive leadership.Figure 1: The business casefor inclusive leadership.by storm.The 5 Disciplines of Inclusive Leaders05
we wereable toidentify atype ofleader whosurvivesand thrivesamidstconstantchangeThe 5 Disciplines of Inclusive Leaders06
Why greater diversitydoes not automaticallylead to better resultsA study by the Canadian researcherIt is, after all, much easier to manageexperiences, backgrounds,N. J. Adler has revealed that whilea group of people with similarthinking, and communicationdiverse teams do indeed outperformbackgrounds and experiences thanstyles are brought into a team.and out-innovate homogenousit is to convince teams made up ofteams, they can also be significantlydiverse individuals to understandless effective. (See Figure 2)their varying thought patterns andbehaviors and value them at a deepWhy? Because diversity willGiven time, however, awell-managed diverse teamcan significantly outperform awell-managed homogenous one.and personal level.only lead to better results if it isThe key is having a leader whoskillfully managed in an inclusiveEven when diverse teams areis a self-aware advocate forway. Without inclusion, it has amanaged by skilled inclusive leaders,diversity and has the inclusivehigh chance of becoming chaotic,they may be outperformed byskills to leverage the differencesleading to lower productivity andhomogenous teams in the earlywithin the team to achieveengagement, higher turnover,stages (See Figure 2) because ofbetter performance.and litigation.the disruption and conflict that canresult when different perspectives,Figure 2: Impact of diversity on team performanceDiverse teamswell ivityMulticulturalteamsHomogenous teamswell GPERFORMINGThe figure synthesizes the work on the performance of diverse versus1homogenous teams by Katherine W. Phillips (October 2014), and BruceLessEffectiveness in creative tasksMoreTuckman’s framework (1965) for the maturity over time of team performance.Reference: Adler, N.J., International Dimensions of Organizational Behavior (4th ed.).Cincinnati, Ohio, South-Western. 2002 Milton J. Bennett, 2008The 5 Disciplines of Inclusive Leaders07
What does an inclusiveleader look like?Designing and building the equitableinclusive leaders, and focusorganizations of the future willgroups across the world.require inclusive leaders at everylevel and in every nook and crannyof the organization. What do thoseinclusive leaders look like?The elements of inclusiveleadership, which we haveempirically and experientiallydefined, align with KornThere is plenty of opinion in theFerry’s holistic model ofpublic square about this as wellbroad-based leadership thatas many inspiring stories, but welooks at individual, team andwanted to start with the science andorganizational performanceengaged our statisticians and I/Oin an integrated way:psychologists from the Korn Ferrythe traits (who someone is),Institute to help identify inclusivethe competencies (what oneleader traits and competencies.does), and their biography (theirformative and adult experiences).The foundational and confirmationalresearch was based on a thoroughOn the next pages, we examineanalysis of Korn Ferry’s databasethese key elements that defineof over 3 million leadershipinclusive leadership. We will seeassessments from which we mappedthat the inclusive traits alone, asout a clear inclusive leader profileadmirable as they are, cannotlooking at competencies and traitsbe enough to make inclusivethat facilitate inclusive leadership.leadership a reality.We then used a variety ofqualitative testing that includeda survey of talent leaders,in-depth interviews withThe 5 Disciplines of Inclusive Leaders0408
Traits – theinner enablers ofinclusive leadershipTraits are generally hardwired. They include anindividual’s personality, sense of purpose, and values.They also indicate preferences. For inclusive leaders,they are the inner enablers that make inclusiveleadership possible and, when taken as a whole, theyInclusive Leadership Leads to theAdvancement of Women from Ethnicand Racial Minorities at PepsiCotell us the leader’s disposition toward differences. Thecore enabling trait clusters of an inclusive leader are:Authenticityrequires humility, setting aside egoand establishing trust in the face ofopposing beliefs, values or perspectives.Emotional Resiliencerequires the ability to remaincomposed in the face of adversityand difficulty around differences.Self-assurancerequires a stance ofconfidence and optimism.Inquisitivenessrequires openness to differences,curiosity, and empathy.FlexibilityPepsiCo sought to address low jobsatisfaction rates and high intention-toleave rates for women of ethnic and racialminorities, who also experienced longertimes to promotion and lower trust scores.In part, this had to do with teams wherethere was a disconnect between managersand the employees. A comprehensivetalent solution was put in place toboost employee morale and reducedisproportionate loss among this minoritygroup. The key component was helpingmanagers who were mostly white males,develop greater ability to gain deepertrust from these employees through betterinclusive listening.This led to 100% reduction in attritionamong program participants; turnoverwas slashed to less than 2% from 42% inthree years. PepsiCo saw a 75% increasein advancement for women of ethnic andracial minorities, with their representationat the senior manager/director/vicepresident level rising to 6.8% from 4% intwo years (Korn Ferry 2014). The successof the solution has also enhanced thecompany’s brand, with PepsiCo beingrecognized for its leadership in fosteringan inclusive workplace with such corporatehonors as the Advancing Women Awardand the Opportunity Now Excellence inPractice Award 2015 (PepsiCo, 2015).requires the ability to tolerate ambiguityand to be adaptable to diverse needs.The 5 Disciplines of Inclusive Leaders09
Competencies –The five disciplinesof inclusive leadersWhile the traits outlined above are foundational for inclusive leadership,they are not enough on their own. An inclusive leader must also possessthe skills to lead inclusively. Korn Ferry research has identified thecompetencies that are essential for inclusive leadership. We have alsoused empirical analysis to organize these competencies into clusters.We call these The Five Disciplines of the inclusive leader. They are:Builds Interpersonal Trustis honest and follows through; establishes rapportby finding common ground while simultaneouslyable to value perspectives that differ from own.Integrates Diverse Perspectivesconsiders all points of view and needs ofothers; skillfully navigates conflict situations.Optimizes Talentmotivates others and supports their growth; joinsforces for collective success across differences.Applies an Adaptive Mindsettakes a broad worldview; adapts approach to suitsituation; innovates by leveraging differences.Achieves Transformationwilling to confront difficult topics;brings people of all backgroundsalong to achieve results.The 5 Disciplines of Inclusive Leaders04
Both traits and competencies can be developed, though giventhat they are part of identity and therefore can be inherentto who we are, traits can be more difficult to grow in.BUILDSINTERPERSONAL TRUST Values Differences Instills TrustACHIEVESTRANSFORMATION Courage Persuades Drives ResultsTHEINCLUSIVELEADERAuthenticityAPPLIES ANADAPTIVEMINDSET SituationalAdaptability Global Perspective Cultivates InnovationEmotional Resilience Self-Assurance Trust Composure Confidence Humility Situational Self Awareness OptimismInquisitivenessFlexibility Openness to Differences Tolerance of Ambiguity Curiosity AdaptabilityINTEGRATESDIVERSEPERSPECTIVES BalancesStakeholders ManagesConflict EmpathyTR AITSOPTIMIZES TALENT Drives Engagement Develops Talent CollaboratesCO M PE TE N CI E SThe Expanding Spheres of Influence of Inclusive Leaders: Self, Team, OrganizationLeaders can have expanding spheres of impact that flow from self, team, andorganization. Builds Interpersonal Trust largely involves the spheres of self and team.Integrates Diverse Perspectives moves more fully into the realm of impact on theteam. Optimizes Talent has major impact on both team and organization but is stillprimarily focused on talent. In the last two disciplines of Applies Adaptive Mindsetand Achieves Transformation, the impact becomes heavily focused on organization,not only on people strategies and experiences but also on other business imperativessuch as innovation, globalization, brand and reputation, and growing markets.The 5 Disciplines of Inclusive Leaders11
Biography MattersWe have one more vitalthe same and cannot be effectivelyelement to introduce thataddressed the same way across thein a different culture, inside orbecomes the wrapper aroundboard, which in turn helps themoutside their native country.The Five Disciplines model:realize that solutions can be variedthe experiences of eachand counterintuitive, and that,leader’s biography.sometimes, they are best reachedalong unconventional paths.As organizations become Undertaking an extended stayTaking on expatriate workassignments or on crossfunctional, cross-divisional orcross-market work assignmentsincreasingly diverse, there will bePersonal and professionalthat push them outside theira greater spread of work-styleexperiences that may enhance ancomfort zone.preferences within any given team.individual’s capacity for inclusiveTo excel at inclusive leadership,leadership include:it gives them an edge in thisindividuals therefore need to be ableidentify other people’s culturally driven preferences, as well as theirown, to compare their likes anddislikes with team members fromdifferent cultures, and to gaugecountry or region from the onethat they are leveraging thesethey live and work in today.experiences as much as they could.Having parents who have donenot-for-profit, government,military, or missionaryorganizations.Experiences that expose leaders Experiencing being in theminority or majority or in atheir understanding of culturallyfully racially or ethnicallydriven preferences by challengingmixed environment.their assumptions and ways of doingthings. Diverse experiences canjourney but it’s not automatican overseas stint in business,preferred style is likely to be.people, and contexts can increaseGrowing up in a differentInclusive leaders learn to more how helpful and productive theirto a broad range of geographies,If leaders have had these formatively Studying abroad oralso open their eyes to the fact thatparticipating in a serviceclient and employee needs are not allprogram while in school.savvily and profoundly leveragetheir biographies to lead othersinclusively. And for those who didnot have these early life exposureto more diverse experiences, it’snot too late to gain that type ofexposure through short- or longterm immersion experiencesand even lifestyle changes.
“In interactingwith the diversityaround them,inclusive leadersbuild interpersonaltrust, take theviews of othersinto account, andare adaptive. Theseabilities increase theireffectiveness and theimpact they have onindividuals, teams,clients, customers,and communities—and therefore onthe organizationas a whole.“The 5 Disciplines of Inclusive Leaders13
ConclusionMoving organizations beyond diversitymetrics to embrace inclusion requires 21stcentury inclusive leadership. By taking on thechallenges inherent in leading heterogeneousinclusive teams, these leaders bring theirorganizations to the next level in a highlycompetitive and increasingly diverse globalmarketplace. But as this discussion has shown,inclusive leadership requires commitmentand a strategy. It takes a comprehensive plan,grounded in the assessment and developmentof key leadership traits and competencies, tofoster inclusive leadership at the top of theorganization. This then can in turn inspirean inclusive mindset shift and capabilitydevelopment throughout the organizationto attain a more diverse workforceand realize its full potential.AuthorsAndrés T. TapiaSenior Client PartnerDiversity & Inclusion 1.773.372.3782andres.tapia@kornferry.comAlina PolonskaiaSenior Client PartnerDiversity & Inclusion 1.416.365.4001Alina.Polonskaia@kornferry.comThe 5 Disciplines of Inclusive Leaders14
The 5 Disciplines of Inclusive Leaders 05 Inclusive leadership is not just about diversity and inclusion Figure 1: The business case for inclusive leadership. Inclusive leaders drive organizational growth in the 21st century. Biggest challenge: create growth. To have growth you need
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