How Diversity Can Help Organizational Performance and Profitability

Better Health Today, LLC

321 Leadership Way, Suite Success

Bonus Salas, Oklahoma 74119

(918) 555-8888

M E M O R A N D U M

To: Board of Directors

From: Executive Director

Subject: Addressing the Diversity Gap in Corporate Leadership at Better Health Today

This memorandum is in response to your request for a review of the company’s current lack of diversity and support for our community which have interfered with the ability to obtain major federal funding opportunities in recent years. Based on a critical analysis of the grant reviewer’s feedback, there are several steps the company can take now and in the future to overcome these constraints. In this regard, the memorandum first describes two key leadership competencies that are needed to improve Better Health Today’s community relations followed by an examination of the impact that the lack of diversity has on the community meeting national public health initiatives. Finally, an analysis of two of the major challenges the company faces in improving diversity is followed by a description of two strategies designed to minimize the impact that lack of diversity may have on the company in the future.

Two key leadership competencies needed to improve community relations

In the context of organizational leadership, the term “competencies” refers to those attributes and behaviors that help public and private sector enterprises achieve superior outcomes in achieving their objectives. For instance, according to the Society for Human Resources Management, “Leadership competencies are leadership skills and behaviors that contribute to superior performance” (Leadership competencies, 2022, para. 4). Although organizational leaders typically require a comprehensive skill set that varies depending on the situation, some of the key competencies that have been consistently identified as needed for improving relations with the communities in which they operate include 1) valuing diversity and differences and 2) managing politics and influencing others which are described further below.

Valuing diversity and differences:

It is reasonable to suggest that some directors who prefer a homogeneous board that looks just like them might be reluctant to embrace diversity as an important priority. Indeed, the resurgence of violent racial strife in the United States in recent years is proof positive that while the Civil Rights Movement may be over, its overarching aims have not been fully realized throughout American society. Moreover, the relentless diversification of the nation’s demographics has been met with multiple unfounded conspiracy theories such as replacement theory which has further exacerbated the problem.

Consequently, it is essential for our company’s top leadership team to recognize the criticality of not only accepting the reality of the nation’s changing demographics and values, but to make the improvement of Better Health’s corporate culture concerning workforce diversity a major priority. For instance, Elliott-Engel et al. (2021) emphasize that, “Competencies of diversity and cultural competency reflect the growing emphasis on shifting community demographics” (p. 6). By definition, making something a priority means that it is supposed to get better. Therefore, assigning this competency among the top leadership team a high priority represents a good place to start when searching for different strategies that will help the company secure federal grants in the future.

Managing politics and influencing others:

Practically all leaders have encountered the administrative brick wall that office politics frequently create at some point in their careers, but local politics are another matter altogether. Indeed, as the rancorous atmosphere of the political realm today so clearly illustrates, private sector leaders are faced with a daunting mix of diverse public points of view and interests and political leaders are razor-focused on those issues that will help them get reelected, even if these interests are not necessarily what is best for their community at large (Warshaw, 2019). Furthermore, the same set of leadership competencies that make individuals effective in the workplace are not necessarily the same ones that are needed to influence others in the public sector.

Examination of the impact that the lack of diversity has on the community meeting national public health initiatives

The national Healthy People 2030 initiative sets forth several community-based goals that are affected by a lack of diversity in Better Health’s workforce as described in the feedback received front grant reviewers. While it may not seem apparent, there is an inextricable relationship between our community and the health of its citizens, including our customers. For example, according to the U.S. Department of Health and Human Services, “A person’s community can have a major impact on their health and well-being. Healthy People 2030 focuses on ways organizations, businesses, schools, and residents can help build healthier communities” (Promote health and safety in community settings, 2022, para. 2). Therefore, the company should strive to ensure that the demographic composition of our workforce mirrors the larger community in which we compete.

There are some major challenges that are involved in improving diversity at Better Health, however, that must be taken into account. The first challenge is the dearth of qualified candidates for some of the specialty positions the company requires to market its products and services. The second challenge in improving diversity at our company is the aforementioned lack of this goal as a corporate priority. Despite the challenges that are involved, though, the company’s future success is directly tied to its ability to improve its recruiting function to attract more qualified minority members and to inculcate a corporate culture that values and celebrates diversity and differences.

Two strategies to minimize the impact of a lack of a diversity on Better Health