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COO Magazine Q1 2025

The DEI backlash – a good thing?

Georgina Philippou
Former FCA COO and FCA Senior Adviser Equality
Armstrong Wolfe Advisor

Do I think the DEI (Diversity, Equity and Inclusion) backlash spreading around the world from the States is a good thing?

Do I like what President Trump is saying and doing on DEI? Do I applaud those major companies which have announced that they are abandoning or reducing their DEI initiatives? Do I support those activists and critics who are loudly trying to undermine the business case for DEI? Do I think that DEI has no place in a UK government strategy focused on economic growth? Do I think DEI is bad for business? Err, no, six times over no (obvs.).

But, on the assumption that we are not going to give up on DEI, do I think we need to take all this seriously and think carefully about what this means for our future DEI approach? Well, yes (just as obvs.).  In fact, I would go further and say that this might be the kick we all need to rethink our approach to DEI to ensure it remains relevant and effective.

A few ideas which might be helpful:

Let’s start with the words. I have never been a fan of DEI programmes built on personal characteristics, or Protected Characteristics as they are termed in the UK Equalities Act.  After all, we are all without exception a bundle of characteristics (I am female, cisgender, straight, white, old (er), with ethnic heritage, from a lower socio economic background etc. etc.). 

Talking about characteristics, particularly without recognising this incredible intersectionality, encourages an approach that focusses on D without EI, which is very vertical, which suggests favouritism, and which leaves some groups of people feeling excluded.  What we are essentially trying to do is about fairness and diversity of thought and what that is about is ensuring happy, health, engaged staff doing quality, productive work.  So let’s start with rethinking the language.

We all know it is easy to pull apart any business case, particularly one which appears to have little relevance to your firm or circumstances. So let’s build better business cases – if they are generic, let them be peer reviewed. Better still, build your own business case which links the performance of your firm with the make up of your employee base.  If you can get away without having to refer to a business case, then so much the better, but the fact is that we work in a numbers based industry which likes data and analysis and logic.

What to do about targets? I blow hot and cold on targets. Experience has shown that they can provide a meaningful impetus for getting things done.  Experience has also shown that progress can grind to a halt (women leaders, pay gap anyone?).  They can also be viewed as divisive (see “language” above).  Is there a different approach?  Perhaps not targets but a RAG rating approach where data shows when you are veering away from societal, community or company averages.

Put your best performers into your DEI (or whatever you choose to call it) team.  I have met some amazing DEI practitioners, and I have also met people working in DEI who are there because they are nice, which of course is not nearly enough to drive major behavioural change, or because they have been put there, or because they think it will be an easy ride.  DEI is not easy and cannot be left to HR. Perhaps rotate your best performers through the team – no progression without a stint in DEI?!

Elevate the conversation and take it outside the confines of formal meetings. Discuss your DEI concerns with trusted peers within and without your organisation and shamelessly steal ideas and lessons. Also talk to those much younger and otherwise very different to you.

Make sure DEI is on your register of non-financial risks.  From there, you can treat it the same way you would any other strategic business risk and ensure it gets executive and board attention.

Make sure Board Effectiveness Reviews look at decision making on the Board through a DEI lens.

Watch out for your microbehaviours. As a senior leader you are visible to the whole organisation and everything you do and say matters. Tell your story, be authentic, bring DEI into a conversation that isn’t about DEI, share success stories where DEI has generated good ideas or good outcomes, show that you are willing to listen and learn, lean on your network groups to help you action all of the above.

The ultimate goal must be to do away with separate DEI programmes because DEI is embedded in the day to day operations of the firm, in its values and culture, in its strategies and policies. That would shut up the naysayers.

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