Strategies for Building Diverse Leadership Teams

In the sanitation sector, two-thirds of all leaders are white, with Black, Indigenous, and other Women of Color being the least represented group in leadership, according to pmc .

DC
Daniel Cross

April 14, 2026 · 5 min read

A diverse group of professionals collaborating around a table, discussing plans with innovation and shared purpose.

In the sanitation sector, two-thirds of all leaders are white, with Black, Indigenous, and other Women of Color being the least represented group in leadership, according to pmc. This underrepresentation silences a significant portion of the workforce and the communities they serve, hindering responsive and equitable service delivery.

Many large U.S. companies have formal mentoring programs for underrepresented leaders, with nearly 60% of 59 surveyed organizations reporting such initiatives, according to ideas. Yet, white leaders are still 8.7 times more likely to hold multiple positions across different organizations than Black, Indigenous, or other People of Color, according to pmc. This disparity reveals a tension between program existence and actual influence accumulation.

Without a deeper commitment to systemic change and the active practice of inclusive leadership, current diversity initiatives risk remaining performative. They perpetuate existing leadership disparities and stifle organizational innovation, particularly within high-income countries where 88 out of 100 analyzed organizations are headquartered, according to pmc. These statistics expose a persistent, systemic issue of underrepresentation for diverse leaders, especially women of color, in top-tier positions.

Developing Key Attributes of Inclusive Leadership

Effective leaders must cultivate attributes like self-awareness, empathy, and active listening. These foundational skills create an environment where all voices are heard and valued. Deepening self-awareness, fostering social awareness, and listening to understand are also part of the 7 acts of inclusive leadership, according to ccl. Building personal capacity for inclusive behavior addresses root causes of non-inclusive practices, though it requires continuous self-reflection and may not address systemic organizational barriers alone.

The 7 Acts of Inclusive Leadership

This framework provides specific, actionable behaviors for leaders. The 7 acts include deepening self-awareness, fostering social awareness, listening to understand, creating connections, making a meaningful impact, and leading with courageous vulnerability. Implementing these acts consistently builds trust and engagement within teams. This offers clear behavioral guidelines and promotes comprehensive development, but requires consistent application and organizational support.

Commitment to Fairness, Belonging, Value, Resources, and Support for All Team Members

Inclusive leaders ensure every team member receives fair treatment, feels a sense of belonging, and perceives their contributions as valued. They also provide the necessary resources and support for individuals to achieve their full potential. This commitment fosters psychological safety, allowing diverse perspectives to emerge. It directly addresses core needs for psychological safety and equity, building strong team cohesion, though it demands ongoing vigilance.

Diversifying Social Networks and Adopting a Network-Wide Perspective

Leaders who actively seek information from varied sources and perspectives become more flexible, resilient, and agile. This involves consciously expanding professional and social networks beyond immediate circles, inviting diverse viewpoints into decision-making processes. This practice enhances strategic thinking and problem-solving by reducing echo chambers, but requires intentional effort to build new connections and seek differing opinions.

Implementing Formal Recognition Programs

Formal recognition programs acknowledge contributions and successes within an organization. These programs reinforce positive behaviors and foster a sense of appreciation among team members. While specific metrics vary, the goal is to strengthen workplace bonds and individual motivation. Such programs can boost morale and engagement, but must be equitable and transparent to avoid perceived favoritism.

Consciously Cultivating Inclusivity

This involves a deliberate and continuous effort to understand, support, and integrate diverse perspectives into daily operations and strategic planning. Individual perceptions of inclusive leadership are positively related to individual innovative performance through the mediation of individual psychological safety, according to pmc. This intentional cultivation drives deeper team engagement and higher performance. Implementing specific, actionable behaviors and robust mentorship frameworks are crucial for cultivating an environment where diverse leaders can thrive and contribute to innovation by fostering psychological safety.

Bridging the Gap: Programs vs. Impact

Initiative TypePrevalenceStated GoalObserved Impact on RepresentationImpact on Innovation/Psychological Safety
Formal Mentoring Programs for Underrepresented LeadersNearly 60% of large U.S. companies (30% globally), according to ideas.To develop and support leaders from underrepresented groups, fostering their career progression.White leaders are 8.7 times more likely to hold multiple positions across different organizations than Black, Indigenous, or other People of Color, according to pmc. This suggests limited impact on accumulating influence.Team perceptions of inclusive leadership are positively related to team innovative performance through the mediation of team psychological safety, according to pmc. However, formal programs alone may not consistently generate this safety or innovation.
Inclusive Leadership Practices (e.g. 7 Acts)Varies by organization; often integrated into leadership development.To create an environment where all team members feel valued, respected, and psychologically safe to contribute.Aims to increase diverse representation by fostering an environment where diverse leaders can thrive and gain influence.Team perceptions of inclusive leadership are positively related to individual innovative performance through the cross-level mediation of individual psychological safety, according to pmc. Direct correlation with enhanced innovation.

While many organizations initiate formal programs, persistent disparities reveal these efforts often fail to address systemic barriers or translate into comprehensive team and individual psychological safety. Companies relying solely on formal mentoring programs (ideas) are failing to address the structural inequalities that prevent diverse leaders from accumulating significant influence and are likely missing out on critical innovation, as evidenced by pmc's data showing white leaders are 8.7 times more likely to hold multiple positions.

Achieving truly diverse leadership requires a fundamental shift in organizational culture and practice, embedding inclusive principles into ongoing leadership development curricula. This systematic approach, rather than sporadic workshops, ensures inclusive leadership becomes a core competency for all leaders, consistently practiced across all levels. The stark representation gap in the sanitation sector, where two-thirds of leaders are white and women of color are least represented, according to pmc, indicates that sector-specific systemic barriers actively undermine broader diversity efforts and hinder the potential for new ideas and approaches. Structured development can dismantle these barriers by intentionally preparing diverse leaders for multiple influential roles and equipping existing leaders to champion their advancement.

By Q3 2026, organizations that have not actively addressed the structural inequalities preventing women of color from accumulating influence through multiple leadership roles will likely find their internal innovation capacity stifled, mirroring the broader industry trend of missed opportunities in diverse talent development.

Frequently Asked Questions About Inclusive Leadership

How can companies improve diversity in leadership?

Improving diversity in leadership involves a multi-faceted approach beyond formal mentoring programs. This includes implementing blind resume reviews to mitigate unconscious bias during hiring, establishing clear diversity targets for executive roles, and holding leadership accountable for meeting these targets. Organizations should also invest in unconscious bias training for all hiring managers and actively seek out diverse candidate pools through expanded recruitment networks, ensuring equitable opportunities for advancement.

What are common challenges in building inclusive leadership?

Common challenges include resistance to cultural change, often stemming from deeply ingrained organizational norms. Unconscious biases among existing leaders can inadvertently hinder the progression of diverse talent, even with the best intentions. A lack of consistent, long-term commitment from top leadership, beyond initial program launches, also poses a significant hurdle, preventing the sustained effort required for true systemic transformation.

How to measure diversity and inclusion in leadership?

Measuring diversity and inclusion in leadership requires tracking specific metrics beyond simple headcount. Key indicators include the representation of diverse groups at all leadership levels, promotion rates for underrepresented individuals, and employee perceptions of inclusivity through surveys.e groups at each leadership level, promotion rates for underrepresented individuals, and retention rates across demographic groups. Furthermore, regular employee engagement surveys can assess perceptions of psychological safety and belonging within teams, providing qualitative data on the effectiveness of inclusive practices.