It’s time to reframe DEI

Rather than run bolt-on programs full of box-ticking and lofty generalities, focusing on what DEI does, where it touches your business, and what it can deliver can make it a lot more achievable and far less scary, writes Lily Carlyon.

What do we mean by DEI, actually?

Thanks to the huge change in American politics in 2025, diversity, equity, and inclusion (DEI) has been making headlines around the world this year.

While common across Australian businesses and institutions, DEI policies have become a significant lightning rod in the culture wars, supercharged by a major pushback being spearheaded by the Trump White House, both within its own borders and abroad.

While not as fervent, debate over DEI has also renewed in Australia.

But beneath the noise, most Australians probably still agree with what DEI tries to represent: probably the most Australian value of all, namely, that everyone gets a fair go. For businesses, it’s about keeping your business connected to the community, and understanding your customers and serving their needs. About making sure the people building your products understand the people buying them. About expecting your suppliers and partners to do the same. About making sure everyone feels respected and confident enough to contribute ideas and new ways of doing things. And it’s about removing barriers that might be preventing some people from getting a fair go.

So, why all the pushback? Maybe it’s time to change how we talk about DEI.

Less box-ticking, more inclusion

One of our clients recently described the old approach to DEI as the “Noah’s Ark” of representation – making sure you’ve got two of every kind. It’s based on what is, in truth, often one-dimensional labelling of people, which allows you to tick the diversity box.

But filling seats isn’t the same as giving people a voice. Representation is the starting line, not the finish.

Inclusion is about culture. Equity is about access. The Australian HR Institute’s DEI Maturity Model shows that mature organisations embed inclusion into leadership capability, talent practices and customer engagement – not just hiring stats. Smart companies chasing customer growth know that inclusivity must be built-in from the ground up, playing a role in things like product engineering and development.

The organisations getting this right are shifting from reactive representation to proactive inclusion and equity. They know people don’t just want to be seen; they want to belong. And that applies just as much to customers as it does to staff.

Align DEI with business strategy – or risk missing the point

For DEI to stick, it needs to be more than a side project, justified only by references to the same external studies everyone else cites. That approach will never make it feel like an essential part of your business. Rather, it needs to be baked into your strategies and justified on your own organisation’s terms, with your own metrics and data.

As respected HR leader Liz Griffin told HRM Online, DEI policies can be either quite complex or “a little bit airy-fairy”. Too often, they spend a lot of time on awareness and engagement, but not enough on developing capability. “We need to get really clear around specific and practical capabilities and accountabilities,” she said.

Rather than a bolt-on program, DEI must be seen as a commercial enabler – something that adds to your performance as a business.

Commonwealth Bank is one organisation that has successfully turned inclusion into commercial outcomes. In its 2024 Annual Report, the bank detailed the “banking is for everyone” program it runs to improve the cultural competency of branch staff to ease the banking experience of new migrant customers. CBA’s Community Council provides recommendations to improve products and services.

It has proved to be a hugely successful commercial strategy, with The Australian Financial Review reporting CBA had “attracted a staggering 62 per cent of new migrants to the bank”.

CommBank has integrated DEI into how it grows, serves customers, and attracts top talent. It’s not separate from the business – it is the business.

That mindset is catching on. And it’s not just the big players. From start-ups to legacy organisations, those embedding DEI into their strategy are building more resilient, responsive, and relevant businesses.

Metrics make it matter

The business case for DEI is often scrutinised. Some argue it’s soft, unclear, or even performative. But that misses the point. DEI is like any other long-term investment – it takes time, data, and discipline. And the value it delivers is going to be assessed and measured differently across different companies.

You can’t manage what you don’t measure. And you can’t prove progress without data. Boards and executive teams are being pushed – rightly so – to move beyond vague commitments.

Rather than rely on ubiquitous McKinsey studies, which rely on research that continues to be questioned, companies need to bring together the data and return-on-investment statistics that show how DEI works for them.

Rather than a tricky and unforgiving moral hazard, seeing DEI as a business enabler moves it into territory that far more businesses and executives are comfortable engaging with and championing.

Reframe the conversation, refocus the intent

DEI isn’t just about doing the right thing. It’s about doing the smart thing. It’s about building cultures that adapt faster, serve better and last longer. So, yes, let’s reframe DEI. Let’s stop treating it as a side note and start seeing it as a strategy. Let’s ask better questions, gather better data and get clearer on the outcomes we want.

Because when DEI is done right, everyone wins.

Lily Carlyon is the head of strategy at Mahlab.