Lesson 42: Diversity

My mission is to increase representation of Black leaders at the executive, investor, and board level. By acquiring a company, I will simultaneously become a CEO, investor, and board member of the business. Entrepreneurship Through Acquisition allows me to increase diversity in a tangible way. 

I would bring more than racial diversity; my experiences include international research, teaching, sell-side and buy-side M&A. These diverse experiences empower me with a range of skills for my future as owner and operator of a business. 

My biggest weakness is that I have no operating experience. During my time in business school, I need to continue diversifying my skillset to prepare for operating a business. Diversity expands the toolkit for a business to address complex problems. 

This quarter, I reinforced my toolkit for statistical analysis through my class with Prof. Bryan Aragam. He taught us to think critically about statistics in the news, online, and other media; even statistics I have cited in this newsletter. 

Statistics are often not what they seem. For example, the Chicago Booth Review published an article entitled “C-Suite Demographics Are Less Racially Biased than They Seem.” Sekou Bermiss, Jeremiah Green, and John Hand studied the demographics of S&P 500 C-Suite executives to examine the extent of racial/ethnic misrepresentation relative to the broader population.

First, they compared the demographics of executives to the demographics of the entire U.S. Next, they compared the demographics of executives to the demographics of the schools from which they graduated. Their conclusion? C-Suite executives at companies in the S&P 500 who are non-White are not underrepresented given they reflect the graduating class of peer schools. “The likely amount of discrimination and bias that may have been exerted by businesses against their non-White executives, says [John] Hand, 'shrank down to almost zero.'”

Unfortunately, bias can creep into data when you do not account for other variables. Businesses are imperfect, so their systems for advancing the most talented employees is imperfect. We must continue to examine how these systems retain and promote talent. 

I need a diversity of talent on my team once I acquire a business. Someone in our C-Suite must have a critical eye for recruiting and retaining diverse talent if we are to have the best employees. Statistically, this is a variable that helps businesses, no matter the size, outperform their peers.

 Diversity is Lesson 42. Next week, I will share Lesson 43: Resilience.