Today's CEOs are in a constant state of hustle. There doesn't appear to be much time for self-reflection or self-care, such as sitting back and relaxing. So there's definitely no time for pity parties or crying over spilled milk. They're facing another dilemma: DEI and what to do about it. For the time being, HR needs to be temporarily sidelined as CEOs step in to manage the situation and reduce the numerous liabilities DEI policies contain- at the hands of HR.
While no harm was intended, you can guarantee that liabilities are a topic that keeps CEOs up at night- not HR directors or managers.
A CEO's primary responsibility is to effectively oversee and guarantee successful business results. Failing to proactively manage outcomes can decrease sales, talent attrition, layoffs, acquisitions, and more. Without a team or offerings to drive outcomes, the role of a CEO loses its significance. The risks of substantial adverse effects, like reputational harm or market share loss, are unequivocal.
To that end, CEOs must take accountability for their decisions to assign DEI to HR. By doing so, they can confidently own the mistake and effectively connect the importance of DEI to business outcomes, potentially leading to increased sales, talent retention, and a stronger company culture—all of which fall under the CEO's role.
Decisiveness is key in this situation. The CEO must step up, take control, and make a decision. Staying silent and deferring to HR could result in a discrimination lawsuit involving employees or customers. Conversely, speaking out and assuming responsibility may face backlash from woke supporters who believe the CEO has not been sufficiently proactive. It's a tough spot, but action is imperative. What will the CEO decide?
First and foremost, it is crucial to recognize that as the Chief Get It Done Officer, you may inevitably upset some individuals and inadvertently cause offense. Although this is not the intention, it is an unavoidable consequence of pursuing your goals. Embrace this reality with confidence and determination. Take the necessary actions without hesitation.
Assertively safeguard the business without hesitation or apology. If a DEI initiative risks revenue, reputation, or retention, take immediate action to modify or eliminate it. This critical decision-making moment requires firmness and no tolerance for hesitation towards your HR team. Any resistance should be redirected to Bud Light, Planet Fitness, Starbucks, Disney, Target, Listerine, Walmart, Coca-Cola, Johns Hopkins, or Gillette. These companies all deviated from their core customers by adopting misguided woke policies or messages that resulted in negative consequences.
Steer clear of social issues. I understand that your employees and customers may be passionate about them. Let them channel their passion while you focus on driving business results. Taking a stand on social issues can be a lose-lose situation. You risk alienating someone, possibly even your key customers. It's not worth the gamble unless you can directly link the issue to your business objectives. In such cases, it's best to stay neutral.
Finally, and without a doubt, the most critical aspect to consider. If you have not thoroughly assessed the risks associated with your current DEI policies, rest assured – you are at risk. I am not talking about the glossy CSR or ESG documents you submit to regulatory bodies. I am referring to the policies that permit the use of women's restrooms by men because accommodating individuals based on their "gender identity" is considered part of DEI, according to HR.
I am talking about policies drafted by HR, the internal department, which has limited (if any) comprehension of the external implications of such decisions and, most often, zero business acumen. Reach out to them, request a copy, prepare yourself a very strong drink, and scrutinize them.
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