'Delivering Diversity' report challenges UK business

Published On Wed 19 Jul 2017 by Roddy Isles

British businesses must break their "silence" on the under-representation of black, Asian and minority ethnic groups (BAME) in key roles, according to new research commissioned by the British Academy of Management (BAM) and the Chartered Management Institute (CMI) and co-authored by researchers at Universities including Dundee and St Andrews.

Sponsored by the CMI and BAM, Delivering Diversity, highlights the everyday challenges facing BAME managers, how BAME issues are represented and managed by FTSE companies, and the recommendations the research team identified as the main policy changes to be made by companies and government. The report highlights practical steps that companies can take immediately and in the medium term to develop truly adaptive cultures, fit for purpose in times of political, economic and social challenge.

Just six per cent of management jobs in the UK are held by minorities. Despite this, Delivering Diversity finds that only 54 per cent of FTSE100 leaders are seen to be actively championing greater diversity in their companies, with just 21 per cent revealing their current diversity levels through published progression targets and data.

Professor Nic Beech, Vice-Principal at the University of Dundee and co-author of the report, said, "Our report shows that in the area of Black, Asian and Minority Ethnic (BAME) leadership the UK’s leading companies have a long way to go. Companies need to have diverse, adaptive cultures which allow them to think differently, innovate and connect to a wide range of customers. However, relatively few are leading the way in developing BAME people in their management population pipelines."

Professor Nelarine Cornelius, co-author of the report and researcher at Queen Mary University of London, said, “This project is unique in that it was led by a team of the UK’s leading equality and diversity scholars. Critically it was supported by insights from senior managers at leading FTSE companies. The research is an important step in the development of new and more robust ways of understanding the barriers to progression BAME managers face and the positive steps that organisations need to take to create a fairer and more inclusive environment. The simple message is that progress to-date is not nearly good enough.”

Delivering Diversity highlights that many companies lack clear information about the diversity of their management pipeline. Eighty-three per cent of the HR leaders surveyed admitted that they need better data on BAME diversity to drive improvements.

The report finds that businesses need to apply the lessons from recent progress on gender diversity, including setting targets and publishing progression data. Seventy-five per cent of the FTSE100 companies surveyed now set progression targets for gender and 71 per cent publish related data. While only 21 per cent do so on BAME, almost half (47 per cent) of the rest say they expect to set targets over the coming year.

The project team included expert researchers from Cardiff University, Queen Mary University of London, University of Bradford, University of Dundee, and University of St Andrews.

As a key outcome of the research, CMI and BAM are calling for action from businesses on seven key areas.

Seven Steps for Action

• Break the silence. Leaders need to re-boot the conversation on race, show commitment and communicate a clear business case for change to deliver diversity.
• Learn from the gender agenda. Business has shown that it can generate momentum to make change happen, with inclusive leadership at all levels and transparency about strategies, targets and progress
• Face the numbers: measure it, manage it, report it. Companies need to measure BAME diversity at every level of the management pipeline.
• Tap into the power of sponsorship. Senior leaders need to actively seek out and meet diverse emerging leaders to sponsor them and support their development.
• Build diversity through 'next up' leadership. Role models and mentors at the next level up – not just remote role models at the top of business – can be powerful forces for change. Use innovative models like mentoring circles and reverse mentoring
• Be inclusive and adaptive. Build adaptive cultures that respond to the differences people bring to work. Make it clear that the company values difference so no minority employee is left questioning whether they fit in.
• Benchmark and collaborate. Businesses should compare performance with others in their sector and collaborate on ways to accelerate change.

The Delivering Diversity report, which includes case studies from leading companies like Aviva, Google, Lloyds Banking Group, RBS, Sainsbury’s, Schroders, and Virgin Money, is available at www.managers.org.uk/deliveringdiversity. The report was launched today (19 July) at the Houses of Parliament.

Notes to editors

About the research

Delivering Diversity incorporates several strands of research carried out by CMI and researchers at several universities through the British Academy of Management. It included:

analysis of the 'public face' of all FTSE100 companies through a web-based evaluation of their diversity policies and practices

an online survey of FTSE100 HR and Diversity and Inclusion (D&I) leads on current diversity practice regarding BAME representation, conducted between March and June 2017 among 24 leaders, plus roundtable discussion with 13 companies

26 lived experience interviews with pairs of BAME and non BAME managers at similar positions in the same organisations, exploring experiences of working life in FTSE100 companies

in-depth employer case studies with leading companies including Aviva, Google, Lloyds Banking Group, RBS, Sainsbury’s, Schroders, and Virgin Money.

About CMI

The Chartered Management Institute (CMI) is the only chartered professional body for management and leaderships, dedicated to improving managers’ skills and growing the number of qualified managers.

Our professional management qualifications span GCSE to PhD equivalents, including the unique Chartered Manager award, which increases earning potential and improves workplace performance. We have been registered as an apprentice assessment organisation by the Skills Funding Agency.

We provide employers and individual managers with access to the latest management thinking and with practical online support that helps them to embrace change, create high-performing teams and keep ahead of the curve.

With a member community of more than 140,000 managers and leaders, we promote high standards of ethical practice through our Professional Code of Conduct, and help managers to build their expertise through online networks, regional events and mentoring opportunities.

About BAM

The British Academy of Management (BAM) is a leading learned society representing business and management researchers and academics from over 60 countries. BAM provides leadership in management research, education and supports the field through publication of two prestigious journals, The British Journal of Management and the International Journal of Management Reviews, running a large annual conference, doctoral symposia, more than an event per week and over 20 special interest groups.

BAM works in partnership with key stakeholders including business schools, research funding councils, policy makers, employers, practitioner communities, national and international learned societies to advance and promote business, management and related subject areas.

For media enquiries contact:
Roddy Isles
Head of Corporate Communications
University of Dundee
Nethergate, Dundee, DD1 4HN
Tel: +44 (0)1382 384910
Mobile: 07800 581902
Email: r.isles@dundee.ac.uk