It’s time to focus on another acronym, business leaders should think about when it comes to executive recruiting: EBITDA.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is the core focus of a successful business. After all is said and done, are you making money? That’s the business of business.
Here’s a secret: companies with more diverse executive teams outperform their competitors by 36%, according to the latest McKinsey study. Let that sink in for a moment.
More than 1/3 greater profit and the only difference is more diversity.
And it’s not just one study. Research from Deloitte, Boston Consulting Group, the Harvard Business Review and more all show the same thing: more diverse and inclusive companies are more innovative and profitable companies.
But too often, efforts to add diversity to the C-suite are driven by the desire to do something visible. While it’s certainly a positive step – any improvement in C-suite diversity is a step in the right direction – the misplaced motivation may condemn the efforts to be short-lived.
Instead, by aligning executive talent recruitment efforts with the business’ bottom line, lasting change can be achieved. And as diversity expands within the C-suite, the rest of the organization (and society) will benefit as well.
It’s time to shift the thinking around diversity in executive talent recruiting from CYA to P&L.
Until we meet again.
CEO, Focus & Find