This article first appeared in The Edge Malaysia Weekly on March 18, 2024 - March 24, 2024

In the dynamic landscape of constant innovation and disruption, the maxim “women hold up half the sky” encapsulates the essence of diversity’s pivotal role in fostering innovation and driving success.

While companies may boast diverse workforces, it is the strategic harnessing of this diversity and the bold move to remove barriers that distinguish between industry leaders and stragglers.

As a diversity recruitment advocate, I recall a collaboration with the chief human resources officer of an international offshore contractor to revamp its audit function.

Initially, the role’s masculine-oriented description and emphasis on technical requirements deterred many potential candidates. Subsequently, through a recalibration of the function’s purpose and a focus on leadership qualities beyond technical expertise, we successfully attracted a highly qualified female Malaysian candidate.

A former auditor at a local conglomerate, her impactful leadership transformed the audit culture in her organisation. In addition, her achievement prompted the board to explore further inclusive hiring practices, demonstrating the power of diversity in recruitment.

Today’s workforce is characterised not only by its multigenerational composition but also by its diverse array of gender, cultural background, nationality and skill sets. In this fiercely competitive talent market, achieving success necessitates not only attracting new talent but also harnessing, retaining and developing existing personnel.

The dynamic nature of modern business contrasts sharply with the challenges encountered a decade ago. What once guaranteed success may no longer be adequate for future ventures.

Yet, despite this shift, numerous organisations cling to unchanged organisational structures and leadership compositions, jeopardising potential growth opportunities. This tendency is particularly notable within family-owned small and medium enterprises, where board members and management teams often maintain close ties to the founders and are rewarded for their long-standing loyalty.

Therefore, for expansion into regional markets, boards must consider the necessity of recruiting leaders possessing relevant skills and experience. Unfortunately, this crucial step often occurs solely at the operational level, resulting in a misalignment between strategic oversight and operational execution.

Diversity also stands as an invaluable asset in the arsenal of any business endeavouring to affect a turnaround.

I vividly recall the transformative surge of energy catalysed by the introduction of a wholly new and diverse management cadre we recruited for an oil and gas component manufacturer with substantial investments in Pulau Indah.

This infusion brought forth a palpable sense of pride and unity, instigating fresh perspectives on operations and unleashing a fountainhead of innovative ideas and resolutions.

So, how to embark on the diversity, equity and inclusion (DEI) change journey? There are many opinions on this but one that is demonstrated is the DEI Change Model introduced by the Association of Executive Search and Leadership Consultants in late 2023.

The study is based on 52 client interviews and a survey of 1,300 participants from around the world, where John Kotter’s “Leading change model” was used as a framework to map the findings. The model underpins three top strategies: Fostering a safe and inclusive environment; communicating the importance of DEI; and demonstrating unparalleled leadership commitment to sustain the climate for change.

I encourage organisations to take the first step towards fostering inclusivity by prioritising comprehensive employee engagement surveys and hosting targeted focus group discussions.

These initial actions serve as essential tools for understanding current levels of engagement, identifying prevalent challenges and uncovering barriers to inclusion within the organisational structure.

In conjunction with these proactive measures, we have seen positive results in organisations that mandate unconscious bias training across all levels of the hierarchy.

Fortune favours the bold, and the time to embark on the DEI journey is now — it’s not only the right thing to do but also the smartest move for long-term success.

Raj Kumar Paramanathan is the managing partner of CnetG Asia and a steering committee member of the 30% Club Malaysia. These are his personal views.

This op-ed is part of a thought leadership series — Equity, Equality, Prosperity, by diverse voices for inclusion — done in collaboration with 30% Club Malaysia, part of a global business campaign. 

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