Idea in Brief

The Problem

Research shows that the best way for companies to improve their record on diversity, equity, and inclusion (DEI) is to use metrics to identify trouble spots, establish baselines, and measure progress. But few companies follow that approach.

The Explanation

In-house lawyers and midlevel managers often worry that if their companies collect diversity data, they might end up gathering evidence of discrimination that can be used against them in lawsuits.

The Recommendation

Many companies have protocols for handling sensitive information, along with procedures for conducting internal investigations. They need to apply those protocols and procedures to DEI matters too.

When companies realize they are falling short in improving their operations, expanding their offerings, or connecting with customers, they typically define what they want to achieve, identify relevant metrics, and then try out various strategies until the metrics reveal progress toward their goal. It’s a practice that works, and businesses use it to address any problem they truly care about. Hence the aphorism “We measure what we treasure.”

A version of this article appeared in the March–April 2022 issue of Harvard Business Review.