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Monday, February 13, 2012

OPINION: Diversity at the Top

02/02/2010  | Sandra Lopes, Manager of Policy and Research, Maytree Foundation

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Photo credit: Michael Talbot, CityNews.ca

Courtesy TheMarkNews.com 

If you took a picture of the city’s senior leadership today, you’d think it was 1960, not 2010. 

In the past 50 years the city has changed from a predominately white, European, Protestant and Catholic city, to one that speaks more than 100 languages, prays at churches, synagogues, and mosques, and where almost half the population is a visible minority. In no other place can so much prosperity be attributed to the contributions of newcomers and their children.

Yet Toronto’s boardrooms, political appointments, senior executives, and elected offices have failed to keep pace with this change. According to research by Wendy Cukier and Margaret Yap at Ryerson University, only 13 per cent of more than 3,000 GTA leaders they looked at are visible minorities.

The good news is that the education sector is the most diverse. Diverse schools provide role models for students, support inclusive teaching curriculum, and promote stronger relationships with visible minority parents.

The bad news, however, is that the voluntary sector, at only 13 per cent, does not rank as high as you might expect, and the corporate sector is the least diverse, with only 5 per cent of board members and 3 per cent of executives who are visible minorities.

This is a missed opportunity. Research has shown a link between diversity in leadership and improved financial and organization performance. The Conference Board of Canada has noted that it can help companies grow into new global and domestic markets, find new talent, and ultimately enhance innovation. A diverse senior management makes better decisions because more views are taken into account and no assumptions are taken for granted. Dupont and IBM are two examples of companies that have seen the benefits of diversity. When they diversified their design teams, they saw business grow by $45 million and $290 million respectively.

Toronto has been hit hard by the recession, with unemployment rates as high as 9.1 per cent for those born in Canada and 17.7 per cent for recent immigrants. Diversity in leadership could be an unparalleled advantage as the city recovers, unique to Toronto and a model for the world. It could help us reach out to new markets, bolster our international reputation, and help us to attract the best talent from around the world.

Change in leadership will naturally happen over time, but we can’t afford to wait. Today’s leaders need to accelerate this transformation. Many of them provide mentorship to the next generation, though, unconsciously, they often choose to mentor those who look like them, who went to the same school or had similar work experience. To successfully diversify leadership we must look for talent in new or unusual places.

Much of Toronto’s future talent will arrive from overseas. Already all of the city’s net labour force growth comes from immigration, and almost 100,000 more people arrive every year. Their skills and international work experience is essential in a global economy. We need to see this talent as a competitive advantage, not a risk to be mitigated with the requirement for Canadian work experience.

Organizations should make diversity a priority, set targets, and meet them. This is what the City of Toronto’s public appointment secretariat did with the help of [DiverseCity OnBoard](http://www.maytree.com/divcity/onboard). The city increased visible minority representation on its boards significantly, from 21 per cent in 2003-2004 to 31 per cent in 2007-2008.

These organizations are now more responsive to the communities they serve because a variety of views are brought into their decision making process. They can serve their clients better because they understand their needs and so are more relevant to their community.

Diversity in leadership sends a message about who belongs and who doesn’t, about whose voice matters and whose doesn’t. In a city like Toronto, we need those who lead institutions to reflect the people they serve.

The Mark is Canada’s online forum for news commentary and opinion.

Related Links:

Audio: Toronto is wasting an opportunity by not tapping into the city's diversity, says Sandra Lopes

Institutional diversity would improve the spirits - and finances - of Canada's minorities, writes Maytree Foundation President Ratna Omidvar

More by Sandra Lopes

 
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