wrote a corporate memo sharing his thoughts. “As much as I have been saddened seeing these acts of racism across our country, I am also confronted by the fact that our Company and our sport are overwhelmingly White, with incredibly low representation from people of color. I see this as a personal failing,” he said.
Katz was brutally honest and forthright—and humble—in his corporate memo. While acknowledging that the lack of diversity must be addressed and remedied, he also admitted, “I am not sure I fully know what the solution is,” but he promised to “start by talking about it” with his employees at an upcoming event. His honest assessment of the problem was impressive. One of the things he addressed in his memo was the tendency to be defensive when talking about the Whiteness of the sport that his core customers so dearly love:
While I'm sure most everyone in our industry believes they are tolerant and welcoming, we need to acknowledge that there are parts of the culture of our sport that are clearly not inviting. Maybe the image we have created of the mountain lifestyle needs to be more varied. Maybe, as a fairly close-knit and passionate group of skiers and riders, our community carries a deep implicit bias. It would not be a stretch to call us a clique. Maybe it's our fear of change. While I would like to think that I have been an agent of change in this industry, a decade later I am still running a company that has very limited racial diversity.
Growing diversity in the ski industry will take some time. It won't happen overnight. But it won't happen at all if the sport is not inviting and welcoming to diverse skiers of all races and ethnicities. I am encouraged by Rob Katz's candid assessment of his company's and his industry's lack of diversity and his commitment to work to do better. Vail Resorts is a huge company. It has 34 mountains in North America, and it is successful, wealthy, and the leader in the industry. Its sheer size gives it a big voice and tremendous influence. There is no doubt the steps it takes to put the welcome mat out for new and diverse customers will ripple through the rest of the industry and set the bar for its competitors.
In your business, or within your team, if everyone is pretty much the same, it's easy to miss opportunity, because your sameness becomes your blind spot. This is especially true if your business is successful. Doing well in business can lead to a laser focus on “what's working,” rather than “what are we missing?”
The answer to “what are we missing?” comes from different perspectives. It takes someone seeing something in a different light to point out a potential problem—or opportunity. That's why having an all-White or mostly White business can cost you: You may not get a different perspective or view on business issues that could grow your sales and profits. You might not see the signs. Look at your business as objectively as you can and see if any of these signs resonate with you. If so, you're probably missing out on some opportunities that could grow your business.
SIGNS THAT YOUR BUSINESS MAY BE MISSING OUT ON OPPORTUNITIES
The following list highlights signs that your business may be missing out on opportunities as a result of bias:
You could be, but are not, serving different populations: Black, Latinx, Asian, other people of color, LGBTQ+, different ages/generations, men, women, non-binary, disabled, and military.
You are serving different populations, but your staff isn't diverse. There is no one on your staff who might share the perspective of some of your best customers and, therefore, no one knows how to serve your diverse customers better.
You have trouble finding or keeping people of color as employees. Is it all on them, or is some of it on you? Perhaps your work environment isn't as welcoming or as comfortable as you think.
You are not paying attention to changing demographics. As of this writing, the Latinx/Hispanic population in the United States is 19 percent of the total population, and the Black population is 14 percent. That's a full third of the U.S. population! It would be foolish to ignore a third of the market, but many businesses do.
If you recognize any of these signs as being valid or true for your business or team, that's a big red flag. And an opportunity! You have to get better at this to run a good business or to be a good leader.
You know that there is value in diversity from a moral and social standpoint. You wouldn't be reading this book otherwise. But business runs on metrics. It runs on performance. The next chapter will show you just how powerful the business case for diversity is. I call it the “diversity remedy.”
CHAPTER 4 The Business Case for Diversity
Here's a fact that may come as a surprise to you: Businesses that are diverse do better in every way that matters in business. No exceptions. Study after study proves again and again that diverse businesses perform better on every metric that businesses use to evaluate success:1
Higher sales
Higher profits
Better company reputation
Enhanced company image
Higher brand value
Customer growth—in new customer acquisition and customer expenditures
Higher customer satisfaction
Greater customer loyalty
Better customer insights and ability to anticipate customer needs
Greater ability to attract and recruit talent
Better quality of employee applicants
Broader talent base with new and untapped perspectives
Better problem-solving
Better employee performance and productivity
Higher levels of employee engagement
Higher levels of employee satisfaction
Reduced employee absenteeism
Better employee retention
Increased creativity
More solutions
Increased adaptability
Greater innovation
Higher market share
A better, sharper, two-sided, competitive “edge”:The first “edge” that diverse companies have is that they are equipped to serve their diverse customers better. Customer service improves when staff can communicate effectively with customers from a range of backgrounds. When you have a diverse team, they bring their insights and experience to the table. They're going to deliver a better customer experience because they understand what diverse customers want and expect. A diverse team can meet those expectations and drive customer satisfaction and loyalty off the charts.The second “edge” that diverse companies have is that their leadership is likely to be more diverse than their competitors, now and in the future. When your “bench of players” is diverse, as they progress professionally and become leaders themselves, they'll be less likely to overlook the customers your competitors
