 By Steve Moss and Luis Moreno When many organizations talk about their commitment to Diversity, Equity and Inclusion (DEI), they talk with pride about the fact that they have Employee Resource Groups (ERGs) for the major ethnicities and groups. But although ERGs can be a sign of an organization’s commitment to DEI, they need to be looked at, as they may not always be working well for the employees or the organization.
A close look at ERGs A review of ERGs in thousands of organizations shows that many are created as an initiative of the employees themselves and not as an initiative of the organization’s leadership. In many cases, they do not emerge out of the strategic vision of the organization. Frequently, they have little to no budget for the first few years of operation, until they can secure a few dollars, generally to pay for food and beverage for an event or two. ERGs are also often run on a volunteer basis by employees who need to do that work on top of the actual job that they were hired to do, which is not always good for them or the organization. Their small budgets frequently get even reduced through cuts over the years. In such cases, the impact of ERGs may not be as high, as they don’t have the resources to plan activities of significance. In some cases, ERGs can be seen more as a space for some employees to socialize, without much positive impact to their careers. Professional development requires budgeting Many organizations say that among the objectives of ERGs is professional development, yet with little or no budget, many ERG members find themselves having to be asking for favors. ERG members usually need to contact other employees to see if they can speak at events. When they contact professional trainers and speakers, in many cases they need to ask if they would speak or do training for free or at a reduced fee because they don’t have the funds needed to afford their professional services. This lack of budgeting and funding limits the quality of the speakers and the training, which limits the quality of the employee learning and development and the experience. In such cases, the words don’t match the actions. For ERGs to be impactful, they need to be part of the organization’s vision, so that they are part of the annual planning and budgeting process. They need to have the funding to afford and acquire the high quality training needed for their members to be able to develop and grow personally and professionally. That way, ERG members don’t have to be asking for favors, which can be uncomfortable and discouraging and sends the wrong message to external partners about the commitment of the organization to DEI. One way to help to set ERGs up for success is by looking for ways to better fund them. Historically, when ERGs have funding, it often comes from an allocation from a DEI or HR function in the organization. But there can be other sources, when other departments, businesses and executives become sponsors. There have been multiple roadmaps to identify opportunities for funding, which can come handy, when exploring options. ERGs can help to bring employees together But even when not having access to sufficient budgets, there are still ways in which ERGs can increase their impact. At a time when people are not all bought into mandatory time in the office, a critical component is to create a sense of community. People have to feel like they can get more out of their careers by being with colleagues. This is an opportunity for ERGs to help to bring people together in a fulfilling, relevant, fun and engaging way. If ERGs do this right, events can draw people from throughout the company, whether they are in the ERGs or not. Once together, it is about having content and activities that can help them develop so that they can leverage career opportunities in the organization. Leadership sponsorship and involvement are key for ERGs’ success Another important observation for ERGs is that their activities usually appeal mostly to employees at junior levels. Their events and activities are usually not as well attended by members of the leadership or executive team. But the interest, engagement and involvement by the leadership team are critical for the success of ERGs and other DEI initiatives. That’s an indication for whether the efforts are directly connected to the organization’s strategic vision. If employees see the Chief Financial Officer (CFO), who is Indian, attending an ERG sponsored panel during the Diwali observance in the company, or if they see the Chief Executive Officer (CEO), who is African American, attending a speaker event during Black History Month, it sends a message of executive sponsorship and alignment that goes beyond a celebration of a cultural identity. It becomes a message to employees that the leadership and the executive team support and are committed to DEI in the organization and are willing to make the time to join at events and activities because they are important. Strategic alignment and focus are key for ERGs ERGs have many benefits for their members and the organizations, but, just like with everything, they need to be managed strategically and thoughtfully. They can also have their challenges and limitations, which are not always as obvious or intuitive. The CHRO at a major university recently mentioned her institution's experience with them. ERGs should be structured to provide support and to cascade corporate culture to employees who share underrepresented characteristics, enhancing retention and developing leaders. But if left unattended, they can run amok, taking on their own identities, creating silos and sometimes serving as venting forums, instead of unifying people. When that happens, the results are not as positive for the employees or the organizations. Recently, there has been interest in revisiting and better understanding ERGs, so they can be either improved or replaced with alternative models. In the Diversity Journal, Stephen Young & Barbara Hockfield recently proposed a new model, replacing affinity teams with cultural equity teams. But before giving up on ERGs, many organizations are interested in learning about ways to increase the chances they succeed. What’s important is connecting ERGs with the strategic vision of the organization, establishing business objectives and success metrics, just like any division, unit or initiative. With the right focus, ERGs will be beneficial for both employees and organizations ERGs can be very beneficial to employees and organizations when managed strategically. They can provide a multiplier effect on companies’ DEI efforts, by fueling employee engagement, learning, and development. But this won’t happen on its own, and good intentions are not enough. For ERGs to be successful and to have a meaningful impact on the organization and employees, they must be adequately funded, sponsored by members of the leadership team and clearly linked to the organization’s strategy, objectives and metrics. About the authors: Steve Moss is the President of Executive Springboard. He served as a marketing executive in global organizations, as CEO in a green-tech start-up and as a consultant, marketing best practice trainer and brand strategist before founding Executive Springboard. He earned his BA degree from Georgetown University and his MBA from the Wharton School. Luis Moreno has a passion for Personal and Professional Development and reads, studies, speaks, and writes on topics related to Human-Centered Leadership, Emotional Intelligence, Diversity and Inclusion and other related topics. He earned an MBA from the Carlson School at the University of Minnesota and is a Humphrey Public Policy Fellow. He is a member of the Young American Leaders Program (YALP) at Harvard Business School. The State of Minnesota gave Luis the Distinguished Service Award for his contributions in the areas of race relations, justice, community service, education, and civil and human rights.
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 By Steve Moss and Luis Moreno
Our long-held notions of what is involved in effective leadership are getting a serious relook. There is a decoupling of several things that were closely associated with leadership: masculinity, swagger, overconfidence and extroversion to name a few. We have leveraged our experience, expertise and research on Emotional Intelligence, Human Centered Leadership, and Executive Leadership Coaching and Consulting to discuss the effective qualities of leadership and how they evolve in time. We have discussed these dynamics with multiple organizations and would like to share some with you. It’s said that people don’t leave organizations, they leave bosses. While many people around the world have identified with that sentiment, there is another important insight: People leave organizations that don’t respond to bad bosses. If somebody brings up the shortcomings of a boss, especially when the boss’s behavior and actions are against the values of the organization, and the organization’s leadership looks the other way and takes no action, employees notice. Employees expect organizations to control the quality of its leadership. Organizations have a responsibility to plan and invest in training and coaching their leaders, or they risk employee flight beyond that manager’s direct reports. Also, when employees leave, those who stay also start leaving in their mind, as it has been studied through the workplace dynamic known as "Quiet Quitting", when employees experience low engagement and limit their efforts to the requirements of their roles, without doing extra efforts. Some organizations and leaders have believed the idea of “Once a great leader, always a great leader” but we dispute that notion. In fact, as demonstrated by research and anecdotal experience, great leaders are like great athletes; they need the continuous training, coaching and practice to remain at the top of their game and to continue to win events, matches, and medals. The moment we stop learning, we begin to fall behind. Steve shares this experience from a few months ago: I had a tough conversation with a sales leader seeking a new job. He had great stories of accomplishments with his previous employers, not just as driver of revenue but as a manager of other salespeople. But I had to stop him when he referred to the recruiter at a prospective employer as "the gal who interviewed me." I told him, "Dude, you’re not going to get past the screener interview if you call her ‘the gal.’ You just proved yourself to be a fossil." Business evolves. We must evolve as leaders, too. The workforce is changing constantly, as new generations of employees join the team. Expecting to have now the same great results we had a few years ago using the same leadership practices of the past, represents a big risk for the leader and for the organization. They may no longer work. Leaders need to remain coachable. Kevin Wilde notes that, as we get older and more senior, we tend to be less interested in feedback. That’s natural. But shutting down completely to feedback is highly correlated to failing in a job --- even if you’ve been successful in every previous role. This doesn’t mean just asking for feedback. It is about listening, considering, believing, and appreciating the feedback, and acting on it. Some leaders pride themselves on asking for feedback, but they dismiss it when they get it, by not believing it, by being defensive about it and by basically resisting the feedback. When it comes to leadership, what has worked in the past won’t necessarily work now. The world changes continually and so do organizations and employees, especially their expectations of what great leadership is. Board and leadership team composition is different today. The workforce is dominated by Millennials who want different things from work than Boomers and Gen Xers did. And leaders often know what change is necessary, even if they have yet to completely embrace it. In Luis’ work and research, he has identified some notable new directions in leadership. 1. Involved Leadership The leadership of the past: "Don't come to me with problems, come to me with solutions." The new leadership: "Thanks for identifying this problem. Let's go over it together. I may be able to share some perspectives and may point out some resources that may help." If the boss is only there to be presented with already well-thought-out solutions, why do we even need a boss? Sometimes this can play into the development of employees. People may not be experienced or confident enough to decide or to resolve a complex problem that even experienced leaders may not be able to resolve easily. This is especially important when navigating complex workplace dynamics involving Diversity, Equity and Inclusion (DEI), such as differences arising from racial, cultural, gender or generational factors. Steve comments: I once had three managers reporting to me who were at different points of their leadership journey and development. One would say, “I saw this problem, and after considering options, I took this course of action. I hope you agree.” The next would say, “I’m facing an issue, I’ve identified some options, but I need help on finding the right course.” And the third would say, “I think I have a problem.” For me, there was joy in working with all three as they grew as leaders. In case you are wondering what happened to the manager who was not yet ready to identify problems and come up with solutions, she successfully grew into VP Marketing roles at world-famous sporting goods and accessory companies. This is another manifestation of inclusion. Different team members want to identify and solve problems differently and we need to be open minded and engage with all of them so that we can arrive at the best solution as a team, together. Luis comments: In my work with Law Enforcement agencies, I have learned something very important. As leaders, we need to learn to see the value in an employee’s ability and diligence to identify a problem, even if the person has still not identified the solution. Consider when Law Enforcement agencies are working on preventing terrorism, narcotraffic and crime. When an agent says: “I have identified a problem,” if we leave it to that agent to resolve the problem alone and we wait for the agent to have the solution, it may be too late. A building could be blown up or a person could be hurt in the meantime. We need to value the identification of a problem and engage. In some corporate scandals that have made it to the news in the past decade, the investigations revealed that multiple employees had identified the problem and had brought it up to their leaders. But some leaders waited for them to come up with the solutions. The result was not good, as many of us saw in the news. This also reminds us of a quote from Barack Obama about what he learned early in his first term as president. “One of the first things I discovered…was that not every decision that landed on my desk had an easy, tidy answer. The black-and-white questions never made it to me- somebody else on my staff would have already answered them.” 2. Caring Leadership The Leadership of the Past: "It's 7:00 am, let's get started. This is the agenda…” The new Leadership: "How's everybody doing? How was your weekend?" At the guts of the Entrepreneurial Operating System (EOS) is the weekly L10 meeting among leaders. The first 5 minutes on that 90-minute agenda is called the Segue or the Check-in. It is a personal connection. Attendees share a personal or professional win from the past week or a discovery that would inspire others. Why would you start a strictly facilitated meeting with something soft like this? Because businesses are composed of people, and the connection of people is what gives a business its traction. For decades, leaders believed the Jack Welch credo that it was not necessary to be liked, as long as you were respected. But new research suggests that being liked can lead to being respected. There is a difference between treating people as people and working so hard to please that you don’t make the tough calls. We are not advocating for lenient management. There are also cultural and generational layers to this dynamic. In certain cultures, like in the Latino culture, it would be very hard for people to respect a leader that they don’t like. That’s because liking someone is part of the result of them seeing themselves identified with the person and their human values. Younger employees are also less likely to respect leaders who they can’t relate to and like, in the way that previous generations were more likely to do. 3. Inclusive Leadership The leadership of the past: "You did a great job! I'll present it to the Board!" The new leadership: "You did a great job! I'd love for you to present it to the Board. How’s your calendar for next Tuesday at 10:00 am" This is not necessarily how we think about inclusion. Bear with us. Steve comments: Michael Gaffney teaches functional leadership at Nova Southeastern University and is an internationally known keynote speaker on inclusion, diversity, belonging and equity. He once told me, “Diversity is about counting numbers, and inclusion is about making numbers count.” Making the numbers count at a micro level means giving team members the chance to exhibit what they can do. I once had a boss who would say, “There is no limit to how far you will go if you are willing to give others credit.” Think of four steps in a job well done: First, it is in the accomplishment itself. Second, is the recognition from your boss. Third, being sponsored for your performance. Fourth, being given the visibility that your accomplishment deserves. Perhaps your employee is internally driven enough to take satisfaction from their achievement without it being acknowledged. That may not do as much to move their career forward. You could praise them and take no further action. This reaffirms the value of what they have done, while leaving unsaid what, if anything, you will do as their advocate. You might use their accomplishment as a data point in your advocacy of them. Here, you tell others of the value they are delivering. The final step in inclusive leadership is giving them the chance to impress others, as they have impressed you. There is the risk that they might fail. You may have to spend time coaching them to mitigate that risk. But this wins respect from your achieving direct report and from others who see the exposure they are getting. This helps with employee engagement, motivation, development and retention. It’s a win for the employee, the leader and the organization. It’s a new era with new leadership challenges. Employees’ expectations of leaders have changed. Fundamental goals have changed. Leaders have to evolve to this new reality. Great leaders, like great athletes, need to be checking the new trends and research, and get the coaching and the training necessary to keep learning, practicing, pivoting, and putting in the work to become and remain great leaders. About the authors: Steve Moss is the President of Executive Springboard. He served as a marketing executive in global organizations, as CEO in a green-tech start-up and as a consultant, marketing best practice trainer and brand strategist before founding Executive Springboard. He earned his BA degree from Georgetown University and his MBA from the Wharton School. Luis Moreno has a passion for Personal and Professional Development and reads, studies, speaks, and writes on topics related to Human-Centered Leadership, Emotional Intelligence, Diversity and Inclusion, Talent, and other topics. Luis obtained an MBA in Marketing & Strategy from the Carlson School at the University of Minnesota and is a Humphrey Public Policy Fellow. He is engaged in efforts to increase U.S. Competitiveness and Shared Prosperity as a member of the Young American Leaders Program (YALP) at Harvard Business School. The State of Minnesota gave Luis the Distinguished Service Award for his contributions in the areas of race relations, justice, community service, education, and civil and human rights. |
AuthorExecutive Springboard President Steve Moss shares learning from years as an executive and a mentor. Archives
March 2023
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