DID YOU KNOW that black buying power within the United States has now reached $1.5 trillion? By 2024, that number is going to grow to $1.8 trillion—a number that is larger than the GDP for Mexico.

Did you know that the Hispanic buying power for Hispanic Americans is $1.4 trillion, or roughly the GDP for Australia?

Did you know that the buying power for Asian Americans is currently $1.2 trillion and expected to grow to $1.4 trillion in the next few years?

How much of this buying power are you leveraging every single day?

Statements Versus Standards

As you assess your team’s current state, consider a Washington Post article released this year entitled Corporate America’s $50 Billion Promise. When you look at the breakdown of how this $50 billion was allocated, only $71 million went to organizations focused on criminal justice reform.

I mention that because the bigger question is, why are we here again? It’s not to say Corporate America didn’t step up, but there’s a difference between pressure and practice. You cannot pledge your way out of systemic racism. While the companies in this pledge made a statement, it was not a standard.

Everyone wants a seat at the table. When you invite people to the table, you aren’t just offering equality, you’re offering racial equity. This is about giving a hand up, not just a handout—which, it turns out, is not only the right thing to do, it’s good business.

A Trillion-Dollar Opportunity

So, who is currently incorporating effective racial equity initiatives into their business strategy? Let’s look at some examples.

• Salesforce decided they would create ventures that will invest $100 million in marginalized communities to help those businesses level-up and have a seat at the table. Salesforce has also gone on record to say that by 2023, they will increase their leadership ranks by 50 percent as it relates to people of color being directors and vice presidents in their organization. They are intentionally impacting communities that have been marginalized and disenfranchised.
• McDonald’s announced they will not only continue to invest $1 billion in black suppliers, but also that they understand it is not enough to have two board members who are black and two women on their board. Over the next few years, they have plans to increase diversity within their executive ranks by 25 percent.
• Nike’s CEO has gone on record saying that Nike would not be the company it is today if it had not had the support of black Americans and the black population around the world.

Who is at the table making decisions for your company?

The McKinsey Global Institute’s research is saying that in the United States, there is a linear relationship between racial and ethnic diversity and better performance. For every 10 percent increase in racial and ethnic diversity on the senior executive team, McKinsey says earnings before interest and taxes rise 0.8 percent. And in their study of 1,000 organizations in 12 countries, they found that organizations in the top 25 percent when it comes to gender diversity among the executive leadership teams were more likely to outperform on profitability and value creation.

And think about this particular piece of data: The Center for Talent Innovation says teams are 158 percent more likely to understand target consumers when they have at least one member who represents their target’s gender, race, age, sexual orientation or culture.

When you consider those numbers, where does your organization sit right now?

Do you have individuals who have their finger on the pulse of trillions of dollars of buying power?

Racial Equity Role Models

In October 2019, T-Mobile said they didn’t want to just throw dollars at the problem, but rather think long-term how they could grow together and solve racial injustice once and for all. They set aside $25 million and created a memorandum of understanding with organizations like the National Urban League, the National Action Network and the League of United Latin Americans to really look at how they think about talent, culture and brand.

Netflix has invested $100 million in disenfranchised communities and, understanding that it’s not just enough to write a check, they specifically look at putting money into financial institutions in black communities. Dr. Stacy Smith with the University of Southern California Annenberg Inclusion Initiative says, “When you have diversity and inclusion behind the camera, you will have diversity and inclusion in front of the camera.”

I had the opportunity to speak with the team at General Mills this year. The company is headquartered in Minnesota, which has one of the lowest ranked education systems for black Americans in the country. In Minneapolis, the incarceration rate of blacks is 11 times higher than whites and, according to NPR, while 84 percent of whites in Minneapolis own their home, less than 25 percent of blacks do.

In response to these statistics, General Mills looked at whole equity and representation and made the choice to double the representation of black managers, increase minority representation to 25 percent, and double its spending with minority-owned suppliers. Then it partnered with other local brands to create the Minnesota Business Coalition for Racial Equity which specifically focuses on workplace, policy, philanthropy and allyship, and outlines how the group will tackle education, housing, healthcare and internet access. All of these things help individuals level up.

This is the conversation. Equality, yes, but the goal must be equality plus equity.

Your Next Steps

What can you do?

First, it starts with a CEO’s commitment. The Corporate Leadership Council says emotional commitment is four times more important than rational commitment in driving discretionary effort. When the CEO is committed to the goal, the conversation flips from “this is something we have to do” to “this is something we want to do.” That emotional commitment lets the entire organization know this is important.

As leaders consider how to approach these important strategic decisions, the website CEOAction.com can be a powerful resource, providing examples of what 2,000 CEOs from 85 different industries are doing every single day to think about racial equity through a fresh lens.

From there, establish an executive champion who will own the mission and ensure that racial equity does not get pushed to the back burner while also providing accountability for implementation. This champion will keep the organization focused on how talent is attracted, activated and advanced; which policies impact the people you serve; how much purchasing power is spent with diverse businesses who need a seat at the table; and the measurable net impact of your philanthropic initiatives.

People, policy, purchasing power and philanthropy—that’s how we begin addressing racial equity.

Your Bottom Line Is at Stake

Having hard conversations is good business. If we really want to understand how we can make a great impact and take a long-term view of this trillion-dollar opportunity before us, we need to ask how we will lead differently.

McKinsey tells us that companies pay a penalty for a lack of diversity. Organizations in the bottom 25 percent for both gender and cultural diversity were 29 percent less likely to experience profitability above the industry average. Working to create racial equity isn’t just the right thing to do, it’s a proven strategy for developing longevity and success.

Where are you right now in your diversity, equity and inclusion journey?

Simon T. Bailey’s purpose is to spark listeners to lead countries, companies and communities differently. He goes beyond feel-good content to deliver practical strategies, based on 30 years of experience in the hospitality industry, including serving as sales director for Disney Institute, based at Walt Disney World Resort.

From the December 2021 issue of Direct Selling News magazine.

The post The Business Case for Diversity, Equity & Inclusion first appeared on Direct Selling News.

The one thing that has been predictable about 2021 is that it has proven itself to be just as unpredictable as 2020. Direct Selling University (DSU), one of the most anticipated industry events of the year, was originally scheduled to be an in-person gathering, where leaders from around the world could network, build relationships face-to-face and connect over their shared challenges and wins during this unusual pandemic season. But growing concerns around the Delta Variant and COVID-19, as well as the changing travel and meeting restrictions, led to the difficult decision to transform the event—once again—into a vibrant virtual experience that would protect the health and safety of attendees, presenters, sponsors and employees while providing groundbreaking insight from some of the industry’s most experienced and talented executives.

This year’s unpredictability, with its supply chain and logistical hurdles, a market that continues to shift at lightning speed, increased regulatory pressure and a hovering sense of disconnection between the field and corporate teams, meant that this year’s second Direct Selling University was even more crucial than ever before. The audience was eager for tangible action plans, straightforward strategies and new approaches—and the 30 speakers assembled for this year’s event delivered.

“Change continues to come at us fast and furious as market conditions, technology, consumer behavior and expectations continue to evolve,” said Stuart Johnson, Founder and Chief Executive Officer of Direct Selling News, NOW Technologies and Direct Selling Capital Advisors.

Amid these challenges, however, the channel experienced positive momentum, put in motion by 2020’s explosive growth. Last year, revenue within the industry reached $40 billion domestically and $180 billion globally, and there are many companies positioned to capitalize on this energy, like OPTAVIA, whose annual revenue is set to exceed $1.5 billion.

“Direct selling remains perfectly positioned to maintain and increase our growth and improve our reputations—just by continuing to do what we do best!” Johnson said.

Sharing Wisdom and Experience

Executives from more than 50 companies attended Direct Selling University for the first time, signaling a growing passion and need for shared wisdom and insight across the industry. From innovative strategies for cultivating an empowered and connected field to teaching data-backed masterclasses on the importance of diversity, inclusion and racial equity, presenters offered powerful, timeless messages that are particularly relevant and important in today’s landscape.

“At DSN, we strive to edify the channel and inform the executives that lead it,” said Shelley Rojas, Direct Selling News Publisher and Chief Brand Officer. “Direct Selling University is a big part of that goal.”

The Power of Proximity:

Kami Pentecost, Chief Networking Officer, It Works!, discussed the consequences of disconnection and offered tangible ways leaders could invest in their teams to increase performance, morale and longevity, even as in-person gatherings remain out of reach.

Living with a Longevity Mindset:

Nancy Bogart, Owner and Founder, Jordan Essentials, shared her company’s 21-year history of adjusting, adapting and overcoming the odds in order to protect the long-term vision.

Building a Legacy Brand:

Melissa Thompson, CEO and Founder, BELLAME, reflected on the company’s earliest days, and how their commitment to strategic SEO, customer research and developing their own tech platform provided momentum that has carried them through the pandemic.

The Bokeh Effect:

Mark Stastny, Chief Marketing Officer, Scentsy, encouraged leaders to sharpen their focus on what truly matters and to allow distractions to blur and fade into the background.

The Stories We Tell:

Kindra Hall, Author, Speaker and Chief Storytelling Officer, SUCCESS, illustrated how executive leaders can motivate their field from the inside out with four specific stories distributors can learn to tell themselves.

Permission to Play: Strategies to Accelerate Growth in a Digital World:

Jacob McLain, Senior Vice President and Chief Strategy Officer, MONAT Global, offered strategies that take advantage of the macrotrends presenting opportunities for the channel, and how companies can leverage and adapt to the new digital-first economy.

Connecting with Hispanic and Latino Markets:

Judith Sánchez, General Manager, JAFRA USA, explained how understanding the cultural nuances of the Hispanic and Latino markets is crucial to revenue growth and mastering the inclusive language, behavior and tone that attracts these growing populations.

Building a Social Media Brand:

Jessie Lee Ward, Coach & Rank 10 Prüvit Leader, taught corporate leaders how to leverage viral content, artificial intelligence and social media trends to ignite explosive sales growth.

Prioritize Meaningful Over Measurable:

Shama Hyder, Chief Executive Officer, Zen Media, explained why ROI is a terrible metric, and how owning the conversation and embracing dark social is crucial for success in a digital ecosystem.

Direct Selling’s Highest Potential:

Stuart Johnson, Founder and Chief Executive Officer, Direct Selling News, NOW Technologies, Direct Selling Capital Advisors, cast vision for the future of the channel and offered unique opportunities that can enhance the lives of the industry’s 120 million micro-influencers and provide enormous value to customers.

The Sales and Marketing Trojan Horse:

Jim Caldwell, Chief Marketing Officer, LifeWave, illustrated how captivating storytelling can decrease skepticism, and why word-of-mouth marketing is a sure-fire way to create unstoppable momentum.

Using Change to Propel Growth:

Chris Cicchinelli, President and Chief Executive Officer, Pure Romance, explained how the company pivoted early in the pandemic and helped employees and distributors find success in the face of fear and uncertainty.

Purpose First:

Tyler Whitehead, Chief Executive Officer, Arbonne, challenged leaders to elevate their brands by balancing people and profits, offering value without requesting a monetary exchange, and to never lose sight of their purpose.

The Business Case for Diversity, Equity and Inclusion:

Simon T. Bailey, Speaker, Author, Life Coach and Entrepreneur, delivered a masterclass on why executives should implement racial equity initiatives and hiring practices—not just because it’s the right thing to do, but because it’s a crucial business strategy for developing longevity and profitability.

Groundbreaking News, In-depth Research:

Shelley Rojas, Publisher and Chief Brand Officer, Direct Selling News, shared DSN’s mission to serve, educate and edify the channel as the go-to resource for breaking global news, emerging trends and powerful stories, and announced exciting new offerings, like the text-based DSN VIP Community, the DSN Membership Program and the DSU On-Demand Library.

The Ups and Downs of Hyper Growth:

In a special excerpt from the Direct Approach with Wayne Moorehead podcast, Jesse McKinney, Co-Founder & CEO, Red Aspen, got candid about the realities of hyper growth, technology, social selling, product rationalization and more.

Shifting Focus to the Customer:

Laura Brandt, Chief Experience Officer, IDLife, shared how transforming the company’s compensation plan, communication and ecommerce solutions to become customer-centric, increased their customer acquisition by 28 percent.

The Entrepreneurial Mindset:

In highlights from the Direct Approach with Wayne Moorehead podcast, Glenn Sanford, Founder, eXp Realty and CEO eXp World Holdings, discussed the inherent benefits and opportunities of entrepreneurship and how the conventional wisdom surrounding risk vs. reward is counterintuitive.

Experience the Future:

Joe Cannon, President, Young Living, explained how the future of business is experiential, and why showcasing the scientists and farms behind their essential oils have validated the authenticity of their products.

Stick to Your Strategy:

Heather Chastain, Founder & CEO, Bridgehead Collective, commissioned leaders to commit to their strategic plans and rally their teams around them in order to develop a consistent stream of actions that will ultimately create success.

Adapting Incentives for the New Normal:

Rolf Sorg, Chief Executive Officer & Founder, PM-International AG, shared his company’s strategies for motivating people and developing a team mindset in the face of continued pandemic lockdowns and challenges.

Putting Technology to Work:

Wayne Moorehead, Marketing, Branding, Direct-to-Consumer Industry Expert & Podcast Host, took attendees on a deep dive into all things digital, sharing the ways technology is accelerating growth in the channel and how to leverage them.

The CEO Roundtable:

In highlights from the DSN podcast, four CEOs, Joni Rogers-Kante, SeneGence; Sarah Shadonix, Scout & Cellar; Amelia Warren, Epicure; and Michele Gay, LimeLife by Alcone, engaged in a lively discussion about the importance of providing aspiring entrepreneurs a viable opportunity through direct selling.

Finding New Success:

Al Bala, President & CEO of Mannatech, shared how Mannatech has implemented a disciplined focus on business basics over the last 18 months. The result? Mannatech has become a “new” success story after nearly 30 years in business.

The Social Strategy for NOW:

Ami Perry, VP of Business Development at NOW Technologies, spoke with Rallio’s Co-Founder and CEO Chuck Goestchel and VP of Business Development, Ryan Hicks to discuss the impact of social selling on businesses and how the new NOW Social platform helps systematize, streamline and enhance social media strategies.

The Power of the Pivot:

In a special excerpt from the Direct Approach with Wayne Moorehead podcast, Dan Macuga, Chief Marketing and Communications Officer, USANA, shared insights into the “do”s and “don’t”s in building relationships with brand ambassadors, influencers and athletes.

Doubling Down on Digital:

Chris Postler, COO at Pure Romance shared the company’s approach to technology and how it plays a vital role in all aspects of their business from communication strategies to analytics with Noah Westerlund, EVP at NOW Technologies.

Competing with Online Retailers:

In a special excerpt from the Direct Approach with Wayne Moorehead episode, Danny Lee, President & CEO, 4Life, shared 4Life’s retail pricing strategy and how it turned the Amazon challenge from being the elephant in the room into a positive piece of the business that benefits everyone. DSN

The audience was eager for tangible action plans, straightforward strategies and new approaches—and the 30 speakers assembled for this year’s event delivered.

From the November 2021 issue of Direct Selling News magazine.

The post DSU: Connect & Empower first appeared on Direct Selling News.