Inclusive leadership in action

Do you still remember where you worked after your training or studies? Your first boss?

Looking back, many of us probably cringe at the memory. From strong and impenetrable hierarchies to poor communication and stereotyped thinking to low esteem – such working environments were often the norm in the past (okay, they probably still exist today – but at least we can say this much: they used to be the norm more often). The boss makes an announcement and the employees have to follow it.

But the world of work has changed, and with it, the demands on good leadership. Today, it’s no longer just about giving instructions and assigning tasks. Employees want to make a difference. They want to be seen, heard and appreciated. Above all, they crave the sense of being an essential part of a larger whole. They want to feel community and purpose in their daily work.

How can an organisation create community and purpose for its employees? A 2020 Harvard Business Review study examined the power of leadership. The result: more than 70% of respondents said that what leaders say and do is the key factor in determining whether people feel included. [1] This is precisely where inclusive leadership comes in.

What is inclusive leadership?

Inclusive leadership is a management style that aims to include, value and empower all members of a team, regardless of their background, gender, culture or other individual characteristics. An inclusive leadership style creates an environment in which everyone feels heard, respected and valued. The different perspectives and backgrounds of team members are not only tolerated, but seen as an essential enrichment for the success and innovative strength of the entire team.

Inclusive leadership requires managers to consciously promote equal opportunities and reduce prejudices. They are aware of their own prejudices and actively work to break down barriers that could limit diversity in opinions, perspectives and backgrounds. They create spaces in which dialogue on diversity and inclusion is encouraged and every team member can contribute their ideas without fear of rejection. This actively includes different voices and experiences and creates a culture of belonging.

The benefits of tomorrow’s leadership

We all agree: an old-school management style – characterised by strong hierarchies, prejudices and a ‘top-down’ mentality – is no longer appropriate in a modern, dynamic working environment. These management methods are not only outdated, but also cost companies their success in the long term. Numerous studies show that diverse companies not only make better decisions, but also achieve better returns and business success.

For companies to realise their full potential and benefit from the advantages of diversity and inclusion in the economy as a whole, they must actively embrace inclusion and diversity. And that’s where leaders play the key role.

What are the advantages of inclusive leadership?

• When employees feel valued and included, their loyalty to the company increases significantly. This results in lower turnover and fewer sick days, which in turn saves costs. An inclusive work environment also increases employee motivation, leading to higher productivity and better performance.
• Companies known for their inclusive culture attract top talent. In times of skills shortages, this is a decisive competitive advantage. In particular, the younger generation expects a diverse, tolerant and open working environment that offers better career and advancement opportunities.
• According to the Harvard Business Review, inclusive leadership is directly linked to increased employee productivity. 2] Furthermore, a McKinsey study shows that diverse companies are 33% more likely to achieve higher profits.
• By incorporating diverse perspectives into the decision-making process, more informed and comprehensive decisions are made. This leads to a higher rate of innovation while improving risk assessment, as diverse teams approach challenges from different angles.
• In a constantly changing world, adaptability and resilience are crucial for long-term success. An inclusive leadership culture promotes these qualities by supporting openness to change and creating an environment in which continuous learning and development are taken for granted.
• An inclusive company not only improves customer satisfaction and loyalty, but also taps into new markets and customer segments. Diversity within the team promotes an understanding of different customer needs, which increases competitiveness. According to CEPC, organisations that prioritise inclusive leadership and diversity are 70% more likely to tap into new markets than their competitors. [4]

How do you become an inclusive leader?

The advantages of inclusive leadership are obvious. But how do you become an inclusive leader? What makes an inclusive leader?

The so-called six signature traits of inclusive leadership illustrate the qualities that an inclusive leader brings with them.

1. Commitment
2. Courage
3. Cognizance of bias
4. Curiosity
5. Culturally intelligent
6. Collaborative

1. Commitment

Inclusive leaders are committed to fostering a diverse and inclusive work environment. Their commitment to diversity and inclusion is firmly rooted in their personal values and their firm belief in the importance of diversity, equity & inclusion (DEI) for business success.

Inclusive leaders are committed to the following:

• They make targeted investments to promote diversity and inclusion.
• They prioritise equity and respect in their daily work.
• They emphasise the importance of different perspectives and backgrounds to colleagues and teams.
• They track the results of their inclusive efforts and take personal responsibility for them.
• They find ways to integrate each person into the team and connect with the group as a whole.
• They recognise and appreciate the uniqueness and diversity of each individual.

2. Courage

Creating a diverse team and an inclusive work environment is not possible without courageous leadership and management. Inclusive leaders deliberately challenge the status quo of their organisation, their colleagues and even themselves.

How to show courage as an inclusive leader:

• Admitting your own mistakes. This includes not only admitting your own mistakes in private, but also in front of your team.
• They ask for help. Even a boss doesn’t have to be able to do everything, and there’s always someone who knows more than you do.
• The status quo of business practices is constantly being challenged. Inclusive leaders dare to turn previous practices upside down and break new ground.
• Inclusive leaders show courage by unapologetically seeking open dialogue. The truth can sometimes be painful, but an inclusive leader knows that honest and respectful communication is the key to a healthy work environment. They create a space in which employees feel safe to express their opinions and concerns without fear of negative consequences.
• They take personal responsibility for change. Even in the face of critical looks from the outside: ‘What do you want with him/her?’

3. Cognizance of bias

No one is free of prejudice. Stereotypical thinking and prejudices are part of human nature. They help us to get through our daily lives. They only become a problem if we are not aware of them.

An inclusive leader is aware of their prejudices and takes responsibility for them. And this is how it works:

• A good inclusive leader accepts their biases. They know that they are part of our everyday lives, but at the same time they try to question them again and again and not let them control them. They learn about their personal biases.
• Inclusive leaders not only question their own biases, but also critically question organisational processes.
• Fair play is the highest premise! This means that all employees receive the same conditions and opportunities to develop and succeed. Decisions that affect employees’ careers are clearly communicated so that everyone can understand why certain decisions were made. This also includes transparency in promotions and rewards. These are awarded based on performance and abilities and not based on personal preferences or prejudices.

4. Curiosity

Curiosity in this context means that inclusive leaders have a natural urge to understand the person opposite them. They want to understand how other people perceive the world. They know – to quote Heinrich Heine – that every person is a world. This means that they understand that we all feel, think and perceive differently, and they are comfortable with this ambivalence.

How do you demonstrate curiosity?

• You actively seek the perspectives of diverse individuals in decision-making processes and idea generation. You refrain from making snap judgments when confronted with different points of view.
• Inclusive leaders listen empathetically when someone expresses their opinion and ask respectful and curious questions to develop a better understanding of others’ views.
• Inclusive leaders are able to see things from the perspectives of others and create an environment that fosters divergent thinking.
• They actively seek opportunities to network with a wide range of people and deal effectively with change.

5. Culturally intelligent

Some people may think that they are very culturally savvy. After all, they have been working with that one company in China for a long time. They also know the cultural differences and similarities like the back of their hand. While these insights are certainly helpful, inclusive leaders have a broader understanding of culture. They understand how their own culture has shaped them. Their broad cultural understanding extends beyond national borders. They know that different religions, generations or ages also shape people culturally and influence their perspective on the world.

So what does cultural intelligence mean in this context? It’s about understanding people in their context, not being guided by bias or stereotypes, and above all not seeing oneself and one’s own culture as the measure of all things.

How do you demonstrate cultural intelligence?

• Actively gathering knowledge about other cultures: Taking an interest in the history, traditions and values of other cultures and continuously learning about them.
• Actively experiencing cultural diversity: seeking out opportunities to work, travel or socialise in different cultural contexts to gain deeper insights.
• Approaching other cultures with an open mind and respect: listening carefully and asking respectful questions to better understand other perspectives.

6. Collaborative

True inclusive leaders are masters of collaboration. They know that great results are rarely achieved by individuals alone, but through the collective intelligence of a team. They understand team dynamics and know how to lead a diverse team without intervening too much. They create an environment that fosters collaboration and ensures that every voice is heard and valued.

How does collaboration work in the inclusive leader style?

• Inclusive leaders create a culture in which collaboration and teamwork are paramount.
• They make targeted use of the individual strengths of team members to achieve shared success.
• Communication is clear and open to avoid misunderstandings and ensure common goals.
• Conflicts are seen as an opportunity and innovative solutions are encouraged through open discussion.
• Responsibility is delegated and initiative is encouraged. The team is involved in decision-making.

Why is inclusive leadership so important?

Inclusive leadership is not just a moral issue, but rather a smart business decision. Many studies show that diverse teams and diverse organisations perform better and even achieve higher returns. This makes inclusive leadership a strategic necessity. However, for diverse teams to perform so well, an inclusive leader is essential for diverse teams. This is because diverse teams often face particular challenges that can make collaboration and communication more difficult. This is precisely where inclusive leadership comes into play: a manager who acts as a role model and creates an inclusive working environment is crucial to unlocking the full potential of diverse teams.

And inclusive leadership improves all of this:

• When employees feel valued and included, their loyalty to the company increases. This leads to lower turnover and fewer sick days, which saves costs and increases productivity. An inclusive work environment also promotes motivation and team spirit.
• By incorporating different perspectives, more comprehensive and well-founded decisions are made. This leads to a higher rate of innovation and better risk assessment.
• Inclusive leadership creates an environment in which different perspectives, backgrounds and abilities are valued. This helps to reduce unconscious bias and ensure fair treatment of all team members.
• In a rapidly changing world, these qualities are crucial for long-term success. An inclusive leadership culture promotes openness to change and creates an environment in which continuous learning and development are second nature.
• A diverse team can better understand and serve the needs of a diverse customer base. This improves customer satisfaction and loyalty, opening up new markets and segments.
• Companies with an inclusive culture attract top talent. The younger generation in particular takes diversity for granted and associates it with better career and advancement opportunities.

And how can inclusive leadership be integrated into existing management structures?

The path to inclusive leadership is not a sprint, but a marathon. Existing leadership structures cannot be transformed overnight – nor is it necessary to do so. It is much more important to make small changes step by step and continuously, to communicate regularly and transparently, and to take everyone involved with you as best you can, than to use a crowbar to introduce a new management style that no one really understands at first.

Here are the most important steps for successful integration:

1. analyse the status quo

Before you can introduce change, you first need to get an overview of the current situation:

• How inclusive is the organisation already?
• Where are there still gaps?
• Which groups might feel excluded?
• Which leadership practices promote or inhibit inclusion?

2. get top management on board

Inclusive leadership must be exemplified from the top. If top management does not pull its weight, individual team leaders can be as good inclusive leaders as they like, but diversity and inclusion will still not be fully integrated into the corporate culture.

• The economic benefits of inclusion must be made visible to the management level.
• A clear vision for inclusive leadership must be developed, including jointly defining goals and milestones.

3. establish training and development programmes

Inclusive leadership is something that needs to be learned:

• Regular workshops on topics such as unconscious bias help to turn leaders into inclusive leaders.
• Coaching and mentoring programmes support managers in specific situations and in changing their perspectives.
• Managers often feel alone. Spaces for managers to share their experiences can help to uncover blind spots more quickly and lead teams in a more inclusive way.

4. adapt processes and structures

Inclusion must be integrated into everyday processes:

• recruiting and promotion processes need to be revised. The question should be asked: how can we recruit in a more inclusive and diverse way? Above all, this includes questioning one’s own unconscious biases in the application process. Want to know more about this topic? Then read on here!
• The field of human resource management is particularly critical for inclusive leadership. All personnel decisions must be well-founded. Transparent criteria that are comprehensible to all parties involved help to ensure this.
• Flexible working models are also part and parcel of inclusive teams, organisations and, by extension, inclusive leadership. Managers must actively promote and support flexible working models in order to meet the diverse needs of employees. This includes not only the option of working from home or flexible working hours, but also individual solutions that take into account personal circumstances such as family responsibilities or health restrictions.
• Feedback systems help to give everyone a voice.

5. identify quick wins and capitalise on them

Quick wins motivate people to keep going. To make sure things get off to a flying start, it helps to:

• identify actionable measures,
• communicate initial successes transparently,
• acknowledge leaders who lead by example, and
• share best practices across all teams in the company.

6. address resistance constructively

People are creatures of habit and change often creates unease. The topics of diversity and inclusion also often meet with resistance. The question that is then raised is: ‘Why should we change anything? We have always done it this way!’ To prevent these voices from spreading like wildfire and nipping diversity and inclusion efforts in the bud, targeted action must be taken from the outset:

• Take fears and concerns seriously.
• Create spaces for open dialogue.
• Highlight the personal benefits for everyone involved.
• And last but not least: change takes time. Step by step is the best approach.

Conclusion

Inclusive leadership is more than just a trend – it is an essential prerequisite for sustainable corporate success in a diverse working world. By consciously promoting diversity, breaking down prejudices and creating an appreciative environment, managers not only increase motivation and productivity, but also innovative strength and economic success.

The key to success is to understand the integration of inclusive leadership as a continuous development process. It’s not about being perfect, but about constantly improving and taking all employees with you on the journey. Only in this way can sustainable change be achieved that benefits both people and the company.

And above all: Rome wasn’t built in a day – and so inclusive leadership structures also need time to grow. What is important is to take the first step and then consistently follow through.

Notes:

Lilian Gehrke-Vetterkind will be happy to support you on your journey to gender diversity. Simply arrange a free initial consultation.

[1] Harvard Business Review: The Key to Inclusive Leadership
[2] Harvard Business Review: Why Inclusive Leaders Are Good for Organizations, and How to Become One
[3] McKinsey & Company: Delivering through diversity
[4] Chief Executives for Corporate Purpose (CECP): Diversity & Inclusion in Corporate Social Engagement
[5] Deloitte University Press: The six signature traits of inclusive leadership

Would you like to know more about this topic? Lilian Gehrke-Vettrkind has written a book well worth reading: “Frau kann Chef. Mit Freude und Gelassenheit in Führung gehen“.

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Lilian Gehrke-Vetterkind has published two more articles on the t2informatik Blog: