Improve Your Diversity Measurement for Better Outcomes

• Published in: MIT Sloan management review Vol. 64; no. 2; pp. 54 - 59
• Main Authors: Avery, Derek R, Ruggs, Enrica N, Garcia, Larissa R, Traylor, Horatio D, London, Noelle
• Format: Journal Article
• Language: English
• Published: Cambridge Massachusetts Institute of Technology, Cambridge, MA 01.01.2023
• Subjects: Business metrics; Diversity equity & inclusion; Strategic planning; United States > US
• ISSN: 1532-9194

Business leaders need to implement effective measurements to track progress and hold managers accountable for diversity, equity, and inclusion (DEI) efforts. However, many organizations struggle with understanding what metrics to collect and how to interpret the data. Here, Avery et al highlight six factors to consider when measuring and tracking DEI data. The first step is to have clear strategic goals and objectives for DEI. Goals should encourage steady improvement over time and provide identifiable outcomes. Organizations should also take a multilevel view of diversity to avoid misleading summary statistics that hide over and underrepresentations. They should consider the impact of location on diversity dynamics and adjust goals accordingly. Additionally, organizations should track multiple dimensions of diversity and consider intersecting identities to understand true compositional makeup and potential bias. Integrating data systems is crucial for tracking outcomes and identifying inequities in opportunities and returns. Finally, organizations should factor in the time of year when collecting data to avoid misleading snapshots. By considering these factors, organizations can improve their DEI measurement practices and make more informed decisions to promote diversity and inclusion.