Embracing Diversity and Effective Leadership forSuccess!Written by: Bill Davis, MA, CM, Ron Beach, Ph.D. and Mike Reilly, Ph.D. | July 7, 2016

Today, organizations large and small operate in a dynamic world. Continuous change is allaround us creating risks, challenges, and opportunities for organizations. Technology,government, and economic forces are driving this change. Plus, global forces are changingthe workforce, introducing virtual teams where people collaborate, communicate, work, andlive around the globe. We wrote this article to help you embrace and work with diversity inorder to lead and manage across cultures more effectively. Our goal is to help you bridge

the gap of understanding between theory and practice. The importanceof diversity Diversity is important for organizational effectiveness and long-term success; it creates sophistication and broadens organizational perspectives. Exposure

to a variety of perspectives helps us to see the world, its issues, and events more clearly.(Johnson and Johnson, 2006). Perspectives on diversity are also changing. Leaders arestriving to keep their organizations relevant as they become highly committed to diversityand inclusion. Many have put teams and programs in place to manage diversity within theirorganizations. As they take these actions, companies gain value from effective cross-culturalmanagement. One example is PepsiCo, a billion-dollar food and beverage company. PepsiCostated this about their commitment to diversity: “A diverse workforce and inclusiveworkplace has never been more vital to PepsiCo’s success. As we face new challenges in anincreasingly complex world, we rely on a diverse team of individuals to understand localconsumers in more than 200 countries and territories and to drive our business forward”

(2016). The benefits of embracing diversityManaging a diverse workforce brings many benefits to an organization and adds value to itsculture. Dr. Joseph Weiss (2011) stated this about the many benefits that can be realized:“According to researchers, diversity (1) creates a socially responsible culture and climateand enhances an organization’s reputation; (2) helps recruit and retain talented people; (3)enhances performance; (4) provides a creative marketing advantage and improves problem-solving and decision-making capabilities; and (5) produces cost savings.” It is important toremember that diversity is not only about gender, race, and age; it also includes workbackgrounds, careers, skills, and life experiences” (p.134). When working with a team,recall what Weiss said and the TEAM acronym created by Dr. John C. Maxwell (2007):

T = Tolerance; Be tolerant of individual differences

E = Encouragement; Encourage each other

A= Acknowledgement; Acknowledge each other

M = Mindfulness; Be mindful that we need each other

Consider the power of collaboration and an inclusive workplace culture. When we valuedifferent perspectives, does it build employee engagement? Does it foster creativity andinnovation? Does it help us recruit the best members for the team? We believe when peoplecome together, collaborate, and work toward their goals, synergy emerges and greatoutcomes occur. Dr. Fred Jandt (2016) says, “If we assume similarity between cultures, wecan be unaware of important differences” (p.88). Embracing diversity and creating a cultureof inclusiveness increases leadership, organizational, and team effectiveness. In addition, itis critical for managers to realize the organization’s broader role in society. “Organizationstoday increasingly are judged as much for their contributions to society as they are for theirreturns to shareholders” (Casey, 2016). Furthermore, companies are expected to serve anincreasingly diverse marketplace, so it makes good business sense for the company to

embrace diversity through its workforce and its management. The changingworkforce According to a Policy Alert on the National Center for Public Policyand Higher Education website (2005), “The U.S. workforce (generally ages 25 to 64) is inthe midst of a sweeping demographic transformation. From 1980 to 2020, the white

working-age population is projected to decline from 82% to 63%. During the same period,the minority workforce is projected to double from 18% to 37%, while the Hispanic/Latinoworkforce is projected to almost triple from 6% to 17%” (para 1). These statisticsforeshadow the challenges that leaders will face due to cultural changes in the workplace.

How to be an effective leader Effective leadersunderstand the importance of context and culture in leadership situations. For organizationsto succeed, leaders need to embrace diversity and ensure they are creating a culture ofinclusiveness. An effective leader knows how to work well with others, is flexible,adaptable, and innovative. Leaders need to demonstrate emotional intelligence, whileexemplifying the qualities of a high caliber leader (i.e. self-awareness, social awareness,self-management, and relationship management). Being self-aware is the most importantquality, as managers have to understand themselves first before they can lead others. Beingculturally intelligent is another important component of leading across cultures. Tounderstand cultural intelligence, Dr. Joseph Weiss (2011) offers three thoughts:

Cultural intelligence has three components: First, the cognitive component (head) is1.the ability to observe, listen, and pick up factual clues about relevant behaviors, suchas differences of opinion, deadlines, and the ways people interact with each other.The physical component (body) relates to actions, body language, speech, gestures,2.habits, and expressions.The third component of cultural intelligence is emotional/motivational (heart), which3.involves having self-confidence and the courage to keep trying and not give up whenyou make cultural mistakes. Adapting to new settings is important and can be trying.Gaining cultural intelligence requires time and preparation. It can be increased byreading about cultural habits and values, attending cultural events, and getting toknow people from different cultures. “Having an open mind and heart also helps withthe adaptation process" (p. 146).

What do the experts say about an effective leader? According to Reilly, Minnick, and Baack(2012), “An effective leader is able to maintain a motivated and committed workforce. Anexample of leading effectively is a manager who stays calm, cool, and collected. A leaderremains open to suggestions from colleagues and takes the time to listen to and mentoremployees” (p.31). A leader puts time and effort into studying people. Having an increasedlevel of awareness and being able to deal with cultural differences is paramount (Weiss2011). It is also essential to show mutual respect to each person despite differences, suchas varying beliefs, customs, upbringing, or personality. Respect builds trust and facilitates

an improved working relationship. Management andleadership matter What is needed today to lead and manage acrosscultures effectively? We believe it is a combination of many things: embracing diversity,committing to leading to the best of your ability, and integrating quality and caring in allyou do. Reflect on your values and bring them to life as you lead. Walk the walk and talk thetalk by consistently applying values that include inclusiveness, fairness, honesty, innovation,integrity, quality, and caring. Do all you can to further the success of your employees and

the organization. We define ethics as a system or code of conduct based on moral and legalduties and obligations. Accordingly, managers should lead ethically and apply interpersonalskills, emotional intelligence, and cultural intelligence to people as a means to themselves.

Create a culture that supports diversityRemember, culture is fluid and dynamic, not static. Organizational culture is the drivingforce and operating system of the organization. It guides how employees think, act, and feel.Some cultures are effective for the short term; when situational variables change or othercircumstances arise, a culture may become ineffective. One culture does not fit allorganizations. As you view cultures, there are two viewpoints. An ethnocentric view is thetendency to view and evaluate a different culture using the norms and values of one’s ownculture. In contrast, a cultural relativist view steps outside one’s own cultural norms, values,and biases to judge and understand a different culture on its own terms. As you manage andlead across cultures, focus on the cultural relativist view. Take the time to examineassumptions with a healthy dose of skepticism. This way you can take a more informedapproach to action by applying both critical thinking and culture intelligence to increaseleadership effectiveness. (Dr. Stephen Brookfield, 2011).

References:

Brookfield, S. (2011). Critical thinking workshop. Community of Critical Thinking. San Diego, CA: Ashford University.

Casey, D. (2016). Diversity: It’s good for business, and here’s why. Profiles in Diversity Journal. www.diversity jounal.com.

Jandt, F. (2016). Intercultural communications: Identities in a global community. New York, SAGE Publications

Johnson, D.W., & Johnson, F.P.(2006). Group theory and skills. Boston, MA: Pearson Education

Maxwell, J. (2007). Lessons on leadership, Duluth, GA: Maximum Impact

National Center for Public Policy and Education (n.d). Retrieved from http://www.highereducation.org/

PepsiCo Website (2016), Retrieved from http://www.pepsico.com/

Reilly, M., Minnick, C., & Baack, D. (2012). The five functions of effective management. San Diego, CA: Bridgepoint Education, Inc.

Weiss, J. W. (2011). An introduction to leadership. San Diego: Bridgepoint Education, Inc.

About the Author

Bill Davis, MA, CM, Ron Beach, Ph.D. and Mike Reilly,Ph.D.

Bill Davis is an Instructor and a Faculty Senator in the Forbes School ofBusiness at Ashford University. --- . Dr. Reilly is an Ashford professor andformer Dean of The Forbes School of Business ---Dr. Beach is an Ashfordassistant professor and Program Chair of the BA in BusinessAdministration Program in The Forbes School of Business.

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