Inclusive Leadership: What It Is and How to Build It Across Teams?

Inclusive teams outperform on innovation, decision-making, retention, and financial performance—backed by research. A 180-degree measure of inclusive leadership was constructed using Hinkin, Tracey, and Enz’s (1997) seven-step scale development process.46 Interviewees were identified by either Deloitte professionals or diversity and inclusion leaders within their organizations. The six-factor inclusive leadership model described in this report was developed through a comprehensive review of the literature and refined on the basis of interviews. Inclusive leaders understand that, for collaboration to be successful, individuals must first be willing to share their diverse perspectives. Highly inclusive leaders empower individuals as well as create and leverage the thinking of diverse groups. But more than just changing systems and structures, organizations are increasingly focusing on cultivating more customer-centric mindsets and capabilities. To remain competitive in this environment, organizations have realized, customer centricity is paramount. This growing population now represents the single biggest growth opportunity in the portfolio of many companies around the world.6 By 2025, the world’s middle-class population is expected to reach 3.2 billion, up from 1.8 billion in 2009, with the majority of this growth coming from Asia, Africa, and Latin America.5 As income levels rise, so does consumer demand. Four global mega-trends are creating a business context that is far less homogenous and much more diverse than has historically been the case. Intriguingly, however, many of the leaders interviewed in our research cited the extrinsic reward of enhanced performance as a secondary motivator. “When you look at the changes in the business environment, it would be very difficult for any business leader to say they don’t need to pay attention.” Clearly, an understanding...

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