DELIVERING DIVERSITY - Race and ethnicity in the management pipeline - CMI
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Executive summary
DELIVERING
DIVERSITY.
Race and ethnicity in the
management pipeline.
July 2017
FOREWORD
We’ve made significant progress with workplace diversity It’s resoundingly clear that we have to reboot the conversation
in recent years. Managers have heard and understood the about race and ethnicity. Business leaders need to set the
business case: when you have ever-more diverse customers, tone and work with managers throughout the line to reshape
you need diverse management and leadership to thrive. business cultures. While this research focused on FTSE 100
companies, its findings are not relevant only to those
Action to achieve diversity has been most visible on gender businesses, important as they are to the health of UK plc.
but when it comes to race and ethnicity, real progress has Its insights and recommendations for action point the way
been much less tangible. forward for managers in any organisation.
The recent McGregor-Smith and Parker reviews have outlined It’s been my privilege to chair an excellent employer-led
the scale of the challenge. Only 6% of top management jobs Research Advisory Board throughout this work, working with
Pavita Cooper
Chair of the Delivering Diversity are held by Black, Asian and minority ethnic (BAME) leaders, CMI and BAM, and I’m grateful to my Board colleagues for
Research Advisory Board, which just isn’t good enough when BAME groups make up their brilliant input and support.
Founder, More Difference 12% of the working population. Parker called for at least one
“leader of colour” on FTSE 100 boards by 2021. About time Moving forward, I’m delighted to be supporting the next phase
too: many boardrooms remain diversity-free zones. of this work, as Chair of a new initiative, CMI Race. Our
research made clear the need for a new focus on changing
But just as with gender, we won’t make the progress that’s how managers engage with difference and diversity at every
needed if we only talk about the boardroom. We have to go level of organisations. I look forward to working with managers
deeper into companies to understand why so few BAME from all sectors, of every background, and other partners in
managers reach the top, and how we can create a more developing plans for CMI Race ahead of its full launch.
diverse management pipeline at every level of business.
Business as usual won’t cut it. The world is changing rapidly
This research does just that. By talking to diversity leaders and and leaders that don’t respond will struggle to attract and
to BAME managers themselves, it provides a rounded picture retain the best talent in the future.
of the challenges.
It’s time to deliver on diversity.
THE DIVERSITY OPPORTUNITY
Black, Asian and minority ethnic (BAME) people are under-represented
in business and especially in management roles.
It’s time for change.
Around 12.5% of the UK population are BAME – yet they hold just
6% of top management positions.1 Closing this representation
gap is an urgent challenge. The UK’s BAME population is set
Only 54%
to grow to 20% by 2030 and busineses are missing out on the
talent they need.
Global changes demand diversity too. FTSE 100 businesses OF SENIOR FTSE 100
already generate 75% of their income from outside the UK,2 LEADERS CHAMPION
and emerging markets are growing rapidly. More than ever, BAME DIVERSITY
businesses need diversity of backgrounds, life experiences
and viewpoints at every level of management.
The economic benefits are clear. Full representation of BAME FULL BAME
REPRESENTATION
individuals across the labour market would be worth £24bn WOULD BE WORTH
a year to the UK economy.3
The biggest business driver for diversity is improving
performance, as 75% of HR/diversity leaders told us. Despite
£24 billion
A YEAR
that, not a single one of the diversity leaders we interviewed gave
their company’s current performance on BAME diversity top
marks, a ‘very good’ rating. Only 54% said that senior business
leaders are championing BAME diversity.
ONLY
That has to change. We need action now, to deliver diversity
at every level of the management pipeline.
6%
OF MANAGERS IN
THE UK ARE BAME
1
McGregor-Smith Review 2017
2
Parker Review 2016
3
Department for Business, Energy and Industrial Strategy 2017SEVEN KEY FINDINGS
BAME diversity in the workplace
1. LET’S TALK ABOUT RACE 2. LEARN FROM THE 3. FACE THE NUMBERS
GENDER AGENDA
We need to end what one FTSE 100 leader described Employers can transfer lessons from the progress 83% of the HR/diversity leaders surveyed say
to us as “the silence around race and ethnicity.” made on gender diversity, among them the power of they need better data to drive progress on race
Many managers are uncomfortable discussing it and transparency to drive change. For now, BAME lags and ethnicity. Many report employee reluctance to
wary of causing offence. Only 54% of HR/diversity far behind. Only 21% of companies surveyed report share personal information, but data from across
managers see their business leaders championing publicly on BAME, compared to 71% on gender the employment cycle is vital to driving business
BAME diversity. Leaders need to find their voice and diversity. 42% even told us that the prioritisation of improvements. Most powerfully, publicly setting and
show their commitment to diversity and to building gender has become a barrier to progress on BAME: reporting on key diversity indicators is a major lever
inclusive business cultures. it has to be ‘and’, not ‘or’. of accountability and change.
54%
OF HR/DIVERSITY MANAGERS
21%
OF COMPANIES SURVEYED REPORT
83%
OF HR/DIVERSITY LEADERS SAY
SEE THEIR BUSINESS LEADERS PUBLICLY ON BAME, COMPARED TO THEY NEED BETTER DATA TO DRIVE
CHAMPIONING BAME DIVERSITY. 71% ON GENDER DIVERSITY. PROGRESS ON RACE AND ETHNICITY.“I ENTERED THIS ORGANISATION WITH NO ROLE
MODELS. I STILL DON’T HAVE ANY BLACK AND
ETHNIC MINORITY ROLE MODELS ABOVE ME.”
BAME SENIOR MANAGER
4. IT AIN’T WHAT YOU KNOW – 5. WANTED: ROLE MODELS AND 6. FITTING IN? 7. EVIDENCE BASED
IT’S WHO KNOWS YOU MENTORS AT EVERY LEVEL DEVELOPMENT
Many BAME managers say Role models show the company Many BAME managers question the perceived ‘fit’ Companies should accelerate their
their careers were significantly welcomes diversity. ‘Next up’ role models for BAME employees in their businesses, pointing progress by gathering evidence from
influenced by a senior executive – drawn from all levels of a business, to norms that favour what one interviewee called outside the business, like good practice
who took a special interest. not just those at the very top – inspire “white middle class men from elite schools and case studies and benchmarking data.
Managers at all levels need confidence and ambition from those universities.” Some stressed the responsibility of This data can be used to identify
to make sure they support who follow them, showing that career BAME employees themselves to understand and opportunities for improvement and
diversity through the emerging progression is possible. Mentoring also navigate these differences. Internally, companies ways to develop key decision makers
leaders they sponsor. needs to be encouraged at all levels; peer need to bridge this gap, tackling outdated cultures. throughout the business – including,
mentoring, mentoring circles and reverse Externally, they need to show a more diverse ‘public critically, line managers.
mentoring offer powerful benefits. face’ in company websites and annual reports.
“THE MOST IMPORTANT THING IS TO “ON BAME, WE FEEL “THERE IS DEFINITELY A LACK OF
TALK ABOUT RACE… PEOPLE WON’T BE SELF-CONSCIOUS AND PROPORTIONATE BAME REPRESENTATION
OFFENDED BY JUST HAVING NORMAL A BIT SHAMEFUL. WE FROM MIDDLE MANAGEMENT UPWARDS; THIS
CONVERSATIONS ABOUT IT. PEOPLE JUST HAVE A HUGE AMOUNT IS VISIBLE ACROSS ALL BUSINESS AREAS IN
DON’T TALK ABOUT RACE OR COLOUR AT TO DO TO GET OUR OUR COMPANY. THERE DOES NOT SEEM TO
WORK AND I THINK THAT’S THE BARRIER.” HOUSE IN ORDER.” BE A REAL EFFORT TO ACKNOWLEDGE THIS.”
BAME SENIOR MANAGER FTSE 100 DIVERSITY LEADER FTSE 100 DIVERSITY LEADERACTION FOR LEADERS
How to improve BAME diversity in the workplace
1. BREAK THE SILENCE 2. CHANGE THE STORY 3. MEASURE IT, MANAGE IT, 4. TAP INTO THE POWER
REPORT IT OF SPONSORSHIP
• Re-boot the conversation. Show • Generate momentum: make • Measure BAME diversity throughout • Create more opportunities
commitment, make the business case and BAME your focus and define the talent pipeline, including for senior leaders to meet
build employee buy-in to deliver diversity a plan for change representation at management levels emerging BAME leaders and
build diverse networks
• Support BAME networks to voice BAME • Use the power of transparency. • Build employee trust and confidence
employees’ views Publish your strategies, your for the use of personal data on • Actively seek out diverse
targets and your progress ethnicity emerging leaders to sponsor
• Build line managers’ capacity to deliver and advocate for within the
diversity. Make it OK to be curious and • Show inclusive leadership and • Establish pipeline indicators and use organisation.
ask questions. call out bias. time-trend data to manage progress.
5. B
UILD DIVERSITY THROUGH 6. B
E INCLUSIVE 7. BENCHMARK AND
‘NEXT UP’ LEADERSHIP AND ADAPTIVE COLLABORATE
• Identify and use ‘next up’ mentors and role • Make clear that the company values difference and diversity so no • Benchmark with others in your sector
models, not just remote senior leaders. Make minority employee is left questioning their perceived ‘fit’ in the company
mentoring the norm • Collaborate and share good practice to
• Build adaptive cultures that respond to the differences people bring to accelerate change
• Use mentoring circles and reverse mentoring work, rather than just asking others to fit in
• Build diversity training into management
• Share stories of diverse employees and • Prove to the external world that your organisation is diverse, remembering and leadership development and make it
showcase cultural differences. that your online presence is your public face. a requirement for career progression.FOR BAME COMMUNITIES TAKE ACTION
• BAME managers and employees have a critical role to
play. Help colleagues to break the silence by talking about
difference. Engage with business initiatives to seize the
Head to www.managers.org.uk/
opportunity for change deliveringdiversity to:
• Share your background information with HR when they
collect ethnicity data and encourage others to do the same Read the full report for our
full analysis and employer
• BAME managers need to put themselves forward. Ask for case studies including Aviva,
more – from line managers, from mentors and sponsors,
and from the business. Seek opportunities to develop Google, Lloyds Banking
skills. And challenge the status quo. Group, RBS, Sainsbury’s,
Schroders, and Virgin Money
Use our framework for
company-wide action, to
lead progress from ‘just
starting’ to ‘leading’
FOR POLICY MAKERS Sign up to CMI Race, CMI’s
new network for managers of
• Encourage change throughout the management pipeline
– not just in the Boardroom. Encourage transparency on
all backgrounds supporting
the BAME pay and progression gap, working with the BAME diversity at work.
management community to shape policy
Follow us on Twitter
• Champion progressive employers to encourage change
@CMI_managers #CMIRace
• Address inequalities in educational access and attainment,
which are critical for the intake to the talent pipeline.Chartered Management Institute (CMI) British Academy of Management (BAM) Copyright Chartered Management Institute ©
CMI is the only chartered professional body for management The British Academy of Management First published July 2017
and leadership, dedicated to improving managers’ skills and (BAM) is a leading learned society
growing the number of qualified managers. representing business and management All rights reserved. Except for the quotation
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award, which increases earning potential and improves supports the field through publication a retrieval system, or transmitted, in any
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Journal of Management and the photocopying, recording or otherwise,
CMI has led the way in developing a suite of trailblazing International Journal of Management without prior permission of the publisher.
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With a member community of more than 140,000 managers subject areas. Chartered Management Institute
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regional events and mentoring opportunities.
Report Authors:
Visit www.managers.org.uk/deliveringdiversity Beech, N., Cornelius, N., Gordon, L.,
5850 7/17
for the full report, case studies, framework for action Healy, G., Ogbonna, E., Sanghera, G.,
and information on CMI Race. Follow us on Twitter Umeh, C., Wallace, J. and Woodman, P.
@CMI_managers #CMIRaceYou can also read
