The proposition is clear for most of us in the business community: if you want to build, nurture and grow a successful organisation in the 21st century – the services century – you must have access to people with the greatest and most distinctive talents. This talent is not borne of a monoculture but the opportunity provided by a vibrant multiculture. This is the genius of the Australian experience and the promise of our collective future.
It's why we care about diversity. And those of us in leadership positions will keep on arguing for greater diversity.
Can do better
Despite our best efforts it is clear that we can all do better. For example, research conducted for a report last year by the Human Rights Commission, Leading for Change: A blueprint for cultural diversity and inclusive leadership, found that in corporate Australia, the ranks of senior leaders remain overwhelmingly dominated by those of Anglo-Celtic background. Among the 201 chief executives of ASX 200 companies, 77 per cent had an Anglo-Celtic background and 18 per cent had a European background. Only 10 chief executives – or 5 per cent – had a non-European background, and none had an Indigenous background.
So there is still work to do, clearly. If we don't get it right, talented Australians from culturally diverse backgrounds could conclude that their best prospects of getting ahead may lie not here, but elsewhere. We never want to lose talent because of complacency.
For example, at a time when the economic and political ascent of Asia is apparent to us all, we must do all we can to be Asia-capable. Recent research by Asialink Business highlights corporate Australia's Asia capability is "profoundly low". Raising this capability isn't just about having more cultural diversity on boards or in management teams. And Asia is not the only place where we will find growth. There is no question that diversity does help organisations to be more adaptive to different cultural contexts.
No cultural data
Our experience with diversity helps in grappling with opportunities for growth in our own economy.
The work on cultural diversity remains in an early stage. We are yet to have comprehensive data on the power of cultural diversity.
The challenge we face is having the right conversation about cultural diversity. A conversation that seeks to ensure people understand diversity is about how organisations perform in the 21st century – and about the kind of society we should want to be.
The real value of building organisational diversity based on a relentless commitment to recruiting and fully utilising talent lies in its multiplier effect: its capacity to develop individuals and teams that are equipped for our complex world; individuals and teams confident in grappling with complexity and ambiguity; and citizens who are fearless about difference, open to new discoveries, and therefore are ready for anything – and everything – a diverse world throws at them.
Getting it right is by no means easy. But it's important that our leaders set the tone, set an example and clearly articulate the myriad benefits of diversity and multiculturalism. For us to get the most out of our cultural diversity, we need to do more than just celebrate it. We need to harness its power to transform our thoughts and practices to help us win in this services century.
It's a worthy challenge for all of us. We are up for it.
John Denton is CEO of Corrs Chambers Westgarth and a founding member of the Leadership Council on Cultural Diversity.
