Want FREE Templates on Organization, Change, & Culture? Download our FREE compilation of 50+ slides. This is an exclusive promotion being run on LinkedIn.







Flevy Management Insights Q&A
What measures can be taken within a Target Operating Model to enhance diversity, equity, and inclusion (DEI) in the workplace?


This article provides a detailed response to: What measures can be taken within a Target Operating Model to enhance diversity, equity, and inclusion (DEI) in the workplace? For a comprehensive understanding of TOM, we also include relevant case studies for further reading and links to TOM best practice resources.

TLDR Integrating DEI into the Target Operating Model involves Strategic Alignment, Leadership Commitment, unbiased Recruitment, Development, Advancement Practices, and cultivating an Inclusive Culture, improving overall organizational performance.

Reading time: 4 minutes


Enhancing diversity, equity, and inclusion (DEI) within an organization's Target Operating Model (TOM) is not just a moral imperative but a strategic one. A diverse workforce fosters creativity, innovation, and resilience, contributing to better decision-making and improved financial performance. According to a McKinsey report, companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability than companies in the fourth quartile. This underscores the importance of integrating DEI principles into the very fabric of an organization's operating model. Here are specific, detailed, and actionable insights to achieve this.

Strategic Alignment and Leadership Commitment

The first step in enhancing DEI within the TOM is ensuring strategic alignment and leadership commitment. DEI initiatives must be woven into the organization's strategic objectives, with clear goals and KPIs that are regularly reviewed at the highest levels. Leadership must not only endorse these initiatives but actively participate in and advocate for them. This involves setting a tone at the top that values diversity and inclusion as a business imperative, not just a HR function. Leaders should undergo training to understand their unconscious biases and learn how to foster an inclusive culture. Additionally, tying executive compensation to DEI outcomes can significantly enhance leadership commitment and accountability.

Real-world examples of companies that have successfully integrated DEI into their strategic planning include Accenture and Deloitte, both of which have publicly committed to increasing the representation of underrepresented groups in leadership roles. These organizations have established clear metrics to track progress and hold leaders accountable for meeting DEI objectives, demonstrating a strong alignment between DEI initiatives and business strategy.

Furthermore, embedding DEI objectives into the organization's Balanced Scorecard or similar strategic performance management tools can ensure that DEI is considered alongside other critical business priorities. This approach facilitates a holistic view of performance, encouraging leaders to balance financial outcomes with social and human capital objectives.

Explore related management topics: Strategic Planning Performance Management Balanced Scorecard

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Recruitment, Development, and Advancement Practices

To enhance DEI, organizations must revisit their recruitment, development, and advancement practices. This includes implementing unbiased recruitment processes, such as structured interviews and blind resume reviews, to minimize unconscious bias. Leveraging diverse recruitment channels and partnering with organizations that focus on underrepresented groups can also widen the talent pool. Once talent is onboard, providing equitable access to development opportunities is crucial. This can be achieved through mentorship programs, leadership development initiatives, and targeted training that prepares underrepresented employees for advancement.

For instance, Google has implemented AI and machine learning tools to identify and mitigate bias in hiring and performance evaluation processes. Additionally, companies like IBM have established robust mentorship programs that pair high-potential employees from underrepresented groups with senior leaders, facilitating knowledge transfer and accelerating career advancement.

Equally important is creating transparent pathways for advancement within the organization. This involves clearly communicating the criteria for promotion and ensuring that all employees have equal access to the experiences and assignments that are critical for career progression. Regularly reviewing promotion data for disparities and adjusting processes accordingly can help ensure fairness and equity in advancement opportunities.

Explore related management topics: Machine Learning

Culture and Inclusivity

Creating a culture that celebrates diversity and practices inclusivity is essential for enhancing DEI in the TOM. This involves fostering an environment where all employees feel valued, heard, and empowered to contribute their unique perspectives. Organizations should encourage the formation of employee resource groups (ERGs) that provide support, advocacy, and community for underrepresented employees. These groups can also serve as a valuable feedback mechanism for leadership on DEI-related issues and initiatives.

Companies like Salesforce have led the way in creating an inclusive culture by actively supporting ERGs and leveraging them to drive policy changes and community engagement initiatives. Salesforce's approach to inclusivity extends beyond internal policies to influence its ecosystem, including customers and partners, demonstrating the far-reaching impact of a truly inclusive culture.

Moreover, regular training on topics such as unconscious bias, cultural competency, and inclusive communication is critical. These training programs should not be one-time events but part of an ongoing education effort that evolves as the organization and its understanding of DEI deepen. Implementing regular DEI climate surveys can help organizations gauge the effectiveness of their inclusivity efforts and identify areas for improvement.

In conclusion, enhancing DEI within the Target Operating Model requires a multifaceted approach that includes strategic alignment and leadership commitment, equitable recruitment, development, and advancement practices, and the cultivation of an inclusive culture. By taking these steps, organizations can not only improve their DEI outcomes but also enhance their overall performance and resilience in an increasingly diverse and global marketplace.

Explore related management topics: Target Operating Model

Best Practices in TOM

Here are best practices relevant to TOM from the Flevy Marketplace. View all our TOM materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: TOM

TOM Case Studies

For a practical understanding of TOM, take a look at these case studies.

Operational Efficiency Strategy for Mid-Size Automotive Manufacturer

Scenario: The organization, a mid-size automotive manufacturer, is grappling with an outdated target operating model that has led to operational inefficiencies and increased production costs.

Read Full Case Study

Operational Excellence & Target Operating Model (TOM) Design in Specialty Chemicals

Scenario: The organization is a specialty chemicals producer in North America facing challenges in aligning its operations with strategic objectives.

Read Full Case Study

Customer Experience Strategy for Luxury Retail in APAC

Scenario: A prominent luxury retail brand in the Asia-Pacific region is at a critical juncture, needing to redefine its Target Operating Model to stay competitive.

Read Full Case Study

Target Operating Model Transformation for an IT Services Firm

Scenario: An established IT services firm in North America has been struggling with its Target Operating Model due to a rapid expansion into new markets and technologies such as artificial intelligence and cloud computing.

Read Full Case Study

Renewable Energy Efficiency Improvement Program

Scenario: The organization is a mid-sized player in the renewable energy sector, focusing on wind power.

Read Full Case Study

Security Protocol Strategy for High-End Retail Chains in Europe

Scenario: A leading high-end retail chain in Europe is revising its target operating model to address significant security challenges.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

How does the integration of virtual reality and augmented reality technologies into a Target Operating Model affect customer engagement strategies?
Integrating VR and AR into the Target Operating Model revolutionizes Customer Engagement Strategies by creating immersive experiences, improving Operational Efficiency, and offering valuable insights into customer behavior, driving revenue growth. [Read full explanation]
How is the rise of artificial intelligence and machine learning reshaping the expectations and capabilities of a Target Operating Model?
The integration of AI and ML is transforming Target Operating Models by driving Operational Excellence, enhancing customer engagement through personalization, and enabling innovation for a competitive edge in the digital era. [Read full explanation]
How can a Target Operating Model facilitate a company's agility in responding to market changes?
A Target Operating Model enhances a company's agility by defining operations, roles, and processes for Strategic Agility, Operational Excellence, and a Culture of Innovation, enabling swift adaptation to market changes. [Read full explanation]
In what ways can a Target Operating Model be leveraged to enhance customer experience and satisfaction?
A well-designed Target Operating Model enhances customer experience by aligning Operations with Customer Expectations, fostering Operational Excellence, and driving Digital Transformation for improved engagement and satisfaction. [Read full explanation]
How does a Target Operating Model need to adapt to the increasing regulatory demands across different industries?
Adapting a Target Operating Model to increasing regulatory demands involves integrating compliance into Strategic Planning, leveraging RegTech, enhancing Governance and Risk Management, and building a compliance Culture. [Read full explanation]
What are the implications of decentralized finance (DeFi) on the strategic priorities within a Target Operating Model?
DeFi necessitates a comprehensive reevaluation of the Target Operating Model, emphasizing Strategic Planning, Digital Transformation, Operational Excellence, Risk Management, and Performance Management to ensure competitiveness in the evolving financial landscape. [Read full explanation]
What are the key considerations for integrating ESG (Environmental, Social, and Governance) principles into a Target Operating Model?
Integrating ESG principles into a Target Operating Model involves Strategic Alignment, Leadership Commitment, embedding into Core Business Processes, robust Data Management and Reporting, and fostering Continuous Improvement and Innovation for resilience and value creation. [Read full explanation]
What strategies can be employed to ensure the sustainability of a Target Operating Model in a rapidly evolving business environment?
Ensuring a Target Operating Model's sustainability involves Strategic Planning, Continuous Improvement, Innovation, and leveraging Technology and Data Analytics, with a focus on alignment, efficiency, and adaptability. [Read full explanation]

Source: Executive Q&A: TOM Questions, Flevy Management Insights, 2024


Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.