Deprioritised areas Has anything been forgotten?
Diversity
Covid-19 survival strategies have rightly dominated the corporate agenda over the last few months. But other business priorities – such as ESG and innovation – have not fallen by the wayside. Instead, and perhaps surprisingly, the pandemic has fast-tracked conversations around sustainability and diversity, arguably waving in a new era of responsible capitalism. Similarly, when it comes to innovation, Covid-19 has required organisations to adopt agile approaches to product development, and employ creative thinking to bring new products to market as they’re needed.
We hope to see Covid-19 fast-track the conversation around diversity in businesses. Practically speaking, the last few months have shown us that remote and flexible working is effective – possibly even more effective than was originally thought – and should no longer be a barrier to progression. In line with the increased visibility around a company’s people, there has been a rise in conversations around empathy and inclusion. Businesses should carry these values with them into the next phase of Covid-19.
In a recent interview, former Unilever CEO Paul Polman affirmed this view, saying: “if this crisis has shown us anything, is that it’s time for ESG. It is time for more responsible, sustainable, long-term business models.” From an investor standpoint, ESG remains firmly on the list of priorities. In June, for example, the private equity firm EQT took out a borrowing facility committed to funding portfolio businesses which meet certain targets around sustainability and diversity.
There is also a new opportunity to rebuild with D&I at front of mind. Research by The MBS Group and WiHTL shows that a blocker to progress in creating diverse leadership teams is the slow rate at which senior leadership roles have historically been replaced. This is especially true in functions such as Operations, where incumbents have often been in post in senior roles for long periods of time, preventing progression opportunities for diverse talent in the layers beneath. Undoubtedly over the coming months, many businesses in our sector will be forced to restructure to reflect their new trading reality – and as companies rebuild teams and organisational structures, it will be possible for different, more diverse, leaders to emerge.
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