The Importance of Diversity in Organizations

Diversity in business consulting

Hi, team! It’s your friend, Mary, with the “I” in Team series where you can find , be , and build your positive influence. In honor of Black History Month (and in the spirit of fostering growth and inclusion for all types of diversity), our team decided to put together our thoughts on the importance of diversity in organizations. While this blog will certainly not highlight all the ways in which diversity is important, it will help outline the basics. Should you be curious and wish to dive deeper into the topic of diversity in your organization, one of the best resources is Harvard Business Review’s section on Race, Equity, and Power at Work.

Support Growth

One of the number one reasons why diversity in organizations is so vital is because there are numerous types of diversity that must be celebrated, and, in doing so, you bring valuable insight into your team. With diversity supported, you promote growth within your organization by ensuring fresh ideas are constantly circulating, people engage in healthy discussions that support personal and professional development, and you put yourself ahead of the competition. To provide a simple example, let’s look at food. If you lack food diversity, you don’t get all the vitamins and minerals you need, your tastebuds will probably get lonely, and you will eventually burnout from boredom. However, if you can eat a diverse array of foods and celebrate those foods, then you keep your body running in optimal condition, your tastebuds are happy and look forward to eating, and you won’t have to worry about boredom creeping up and creating a stale environment.

It sounds like a silly comparison (food to people), but it’s an easy way that we can understand why diversity is so valuable to the growth of an organization. Since organizations are considered entities, they must be treated and nourished as such. And the best entities take in, celebrate, and enjoy the diversity of humanity. Organizations will not only realize increased innovation and creativity from their diverse teams, but they will also quickly see an increased bottom line. So not only is fostering diversity in organizations what is best for the community, but it is also best for the longevity of the company. However, it is vitally important to understand that diversity will not simply happen because you have differing people and minds on your team. Diversity will not stay or grow if inclusion is not a core tenant of the company’s culture.

Fostering Inclusion

Building diversity in organizations will likely not be possible if your team lacks the ability to be inclusive, but what does inclusion mean? What does it look like? In the simplest terms, inclusion is about treating people as people rather than treating them as objects. By this we mean that you foster compassion, communication, and a desire to understand that every other person on this Earth is just as valuable as you are. People all have their own dreams, wants, and desires; they are just like you and me. When we treat people as people, we see them as equal to us and extend our compassion toward them. This opposes seeing people as objects, where we see people as pawns to our plan and refuse to see them as someone who is just like us (meaning, they are also a human being).

Fostering inclusion on your team isn’t about being perfect; it’s about creating positive connections that build trust. Will you make mistakes at times? Yes. But this is normal and should not deter you from trying to hold compassion for yourself and others. We are all human, which means we are all imperfect and make mistakes. The best ways to foster inclusion are to have a growth mindset and be open to having new experiences, learn from different perspectives, and help others to feel valued, heard, and appreciated for their contribution. We all want to feel like we are respected for being ourselves, regardless of how we may look or sound or by what makes us diverse in ways that others may not be able to see. One of the most important aspects of fostering inclusion in the workplace is having leaders who support building positive culture.

Positive Culture

Culture is people ; it is propelled by how each individual member acts toward themselves and others. This is ultimately led and demonstrated by the leaders of the company. While anyone can ultimately strive to build a positive culture in their organization, it’s typically the people who others look up to that will set the tone. Unfortunately, if leaders don’t take it upon themselves to actively build a positive culture, the culture will be left to build itself. This typically turns out poorly.

However, if you strive to build a positive culture that fosters inclusion and diversity in your organization, then you will see innumerable benefits for all stakeholders. Employees will have better performance, productivity, satisfaction, engagement, and motivation (with decreased turnover). It can also help to attract top talent and instill a positive reputation within your community, as well as increase shareholder value.

Bottom Line

The importance of diversity in organizations should not be overlooked. If you want to be a proponent of the beauty of humanity (diversity), it starts with you and how you treat those around you. Diversity will increase the likelihood of your organization’s success for the foreseeable future as you bring together great minds for collaboration. You will get the best out of all your people if you make them feel included, appreciated, and valued for their contribution to the team, rather than making them feel judged. This all starts with a positive culture propelled by leaders and adopted by the rest of the team.

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How to Mitigate Financial Risk Using the S.M.A.R.T. Management System

June 9, 2025

In an increasingly volatile economy, businesses cannot afford to be reactive when it comes to their finances. Whether you're a startup founder, a growing enterprise, or a seasoned business owner, the risk of financial instability is real—and growing. At IA Business Advisors, we help companies proactively navigate these risks using our comprehensive S.M.A.R.T. Management System . S.M.A.R.T. is more than just a goal-setting acronym. It is a decision-making and execution framework that brings clarity, structure, and alignment to every part of your business. From six-week action plans to one-year targets and long-term strategy, S.M.A.R.T. ensures your financial operations support healthy growth and resilience. Understanding Financial Risk in Today’s Business Climate Financial risk is multifaceted. It ranges from cash flow disruptions and market shifts to internal mismanagement and over-leveraged growth. As Brian Smith shared on a recent Daily Influence podcast episode, unchecked growth can drive a company into bankruptcy. Scaling without intention—chasing fast growth without aligning the internal team and financial resources—leads to diluted communication, quality issues, and operational chaos. Mitigating financial risk begins by understanding that more revenue doesn't always equal more stability. True sustainability comes from building systems that support intentional, well-paced growth. The S.M.A.R.T. Framework in Action: Reducing Financial Risk Our S.M.A.R.T. Management System guides businesses in creating resilient, financially stable operations through: 1. Specific: Build with Intentionality Clarity is power. One of our podcast guests, Mike Heatwole (CEO of The Dala Group), emphasized the importance of sitting down to define what matters most—whether that’s paying down debt, investing in growth, or launching a new venture. When your financial goals are specific, your strategy becomes targeted and less prone to reactive decision-making. “If we don’t know what the goal is, how do we get there?” — Mike Heatwole, CEO of The Dala Group 2. Measurable: Track What Matters Many companies are blindsided not by invisible risks, but by unmonitored ones. We help clients implement tools to track cash flow, margin fluctuations, and budget variances in real time. Visibility into your financial health gives you the power to respond early and course correct as needed. 3. Achievable: Assign Financial Stewardship Risk is reduced when financial responsibility is distributed. Through teamwide financial literacy and clear accountability, we empower organizations to make stronger daily decisions. No individual person should carry the entire burden—and no key area should go unmonitored. 4. Relevant: Make Risk Management a Habit Quarterly or biannual financial health check-ins create a sustainable rhythm. These don’t have to be complicated—they just need to be consistent. Regular reviews embed risk awareness into your company culture and decision-making process. 5. Timely: Foster Honest Dialogue Financial silence is a hidden threat. As Brian noted on the podcast, emotions like fear or shame can prevent businesses from facing financial realities. We encourage honest, blame-free communication around financial performance, creating space for solutions and collective action. Case in Point: Short-Term Action, Long-Term Impact One of our clients, a family-run distribution company, had strong revenue but was bleeding cash due to aging receivables. Together, we built a six-week S.M.A.R.T. Plan focused on accounts receivable recovery. We implemented weekly check-ins, assigned ownership, and used real-time tracking. Within 90 days, their outstanding A/R dropped by 22%, freeing up capital and restoring operational confidence. It’s Never Too Late to Get Financially Intentional Many leaders in their 40s, 50s, or 60s worry they’ve waited too long. But as Mike Heatwole wisely shared: “It’s never too late. Just get started. Do something.” Progress—not perfection—is the goal. Start small. Build momentum. Take the next best step. This mirrors a concept we love from The Gap and The Gain by Dan Sullivan: measure progress based on how far you've come, not just how far you have to go. Final Thoughts: Make Financial Stability a Strategy Mitigating financial risk isn’t about a dramatic overhaul. It’s about consistent action, visibility, and intentional decision-making. With the S.M.A.R.T. Management System, IA Business Advisors helps businesses turn risk into clarity, fear into focus, and instability into opportunity. If you’re ready to start, we’re ready to help. Let’s have a conversation about what matters most to you—and build from there.

Enhancing Interpersonal Relationships for Toxic Workplace Recovery

May 29, 2025

Hello, team! Mary here, continuing our journey through the I in Team series, where we challenge and empower you to Find , Be , and Build Your Influence. One of the most common things we’re asked to help our clients with is toxic workplace recovery. This directly connects to the culture of the team, and while rebuilding that culture takes time and intention, it is absolutely possible. In fact, with the guidance of our I in Team approach and S.M.A.R.T. Management system, we’ve successfully helped more than 19,000 teams evolve into high-performing, values-based cultures. If you’re ready to take the lead and breathe life back into your team, we’re here and ready to support you. Practice Emotional Intelligence One of the most impactful steps you can take on your toxic workplace recovery journey is to practice emotional intelligence (the ability to recognize, understand, and manage both your own emotions and the emotions of those around you). Toxic environments are often the result of emotional disconnection, poor communication, unnecessary competition, and a culture that avoids constructive feedback. Begin by shifting your perspective: respond with empathy, ask thoughtful questions, and use “I” statements. These habits model two traits, emotional regulation and empathy, that influence how your team interacts and solves problems. Start small. For example, set a personal goal to give one piece of sincere praise or recognition per day. This is a S.M.A.R.T. goal, and it starts to reinforce positive emotional exchanges. Over time, this contributes to a psychologically safe environment where people feel seen and supported. Foster Open Communication Once emotional intelligence begins to take root, toxic workplace recovery is just around the corner. Open communication becomes more natural because when team members are aware of their own and others’ emotions, communication becomes seamless. The number one rule? Listen. Really listen. Without listening, communication is incomplete. Try implementing monthly influence partnerships—team pairings that rotate so members can get to know each other beyond surface-level roles. This creates connection and, when done with consistency (Timely), fosters trust across your team. Another way to build open communication is by creating a structured feedback loop. Clarify how and when feedback should be given—perhaps during weekly one-on-ones or monthly review meetings—and make sure all team members understand the difference between criticism and constructive feedback. S.M.A.R.T. feedback is Specific and Relevant, and when delivered with respect, it encourages team members to grow without fear. Lead by Example As we say throughout the I in Team series, everyone is a leader regardless of title. Whether you’re in the C-suite or just starting your first job, how you show up directly shapes the culture of your team. To begin, set some respectful boundaries rooted in your values. Let others know what you need to succeed and what behaviors support or disrupt your work. When disagreements arise, demonstrate what respectful disagreement looks like—calm, focused on solutions, and free from personal attacks. If your workplace has leaned into competition, shift the focus to collaboration. Collaborate on micro-goals, like shared tasks or cross-functional projects. Make the results Measurable and celebrate wins together (publicly, if possible). Consider S.M.A.R.T.-based team-building events (like problem-solving challenges or goal-setting workshops) to reinforce collaboration in a meaningful way. Final Thoughts Toxic workplace recovery starts with you. Every interaction, every word, every moment of listening is a chance to model what’s possible. Show up the way you want others to show up. If your team is struggling to rebuild or you need expert guidance, reach out . We’re here to help. Let’s keep influencing responsibly and positively together.