David D. Ireland, Ph.D., is a global expert in leadership and building inclusive cultures, serving as the CEO of Belong Group.
In the last decade, Diversity, Equity, and Inclusion (DEI) initiatives have evolved from being corporate buzzwords to becoming central pillars of organizational culture. However, despite its noble intentions, DEI has increasingly been hijacked by political forces and competing agendas, distorting its original purpose. This co-opting has led to DEI initiatives that often alienate key stakeholders, particularly White men, and focus on check-box exercises rather than meaningful change.
It is time for a reset—a new approach that preserves the core of DEI but strips away the politicization and divisiveness. Enter Cultural Portfolio Management (CPM), a framework that emphasizes cultural strengths, diverse backgrounds, and cultural intelligence without the political baggage. Just as a financial portfolio manager balances a range of assets for optimal returns, a Cultural Portfolio Manager strategically curates and integrates diverse cultural perspectives to foster innovation, collaboration and, ultimately, business success.
It’s clear that the original vision of DEI has been blurred. What was once about creating fair, welcoming and inclusive workplaces has too often become a platform for competing ideological agendas. Many corporations—once committed to building diverse teams—are quietly pulling back their DEI initiatives. These organizations and dozens of universities have chosen to dismantle their DEI efforts after finding that the strategies in place were either ineffective or causing more division than unity.
I argue that the problem isn’t with diversity, equity or inclusion itself, but with how the initiative has been framed and communicated. The rise of “woke” terminology, Critical Race Theory and accusatory tones toward certain demographics—particularly White men—has resulted in increased resistance and disengagement from DEI programs.
We must toss out the bathwater of politically charged DEI strategies but keep the baby of cultural inclusiveness and intelligence. Cultural Portfolio Management is how we do that.
Cultural Portfolio Management (CPM) is a strategic approach to managing and optimizing the diverse cultural assets of an organization. Like a financial portfolio manager who diversifies assets to mitigate risk and maximize return, a Cultural Portfolio Manager leverages the varied racial and cultural backgrounds within an organization to create a thriving, innovative and adaptable workplace. The ultimate goal? To maximize the organization’s revenue potential and stay competitive in an ever-evolving global market.
CPM avoids the politicized connotations associated with traditional DEI initiatives by focusing on cultural intelligence, collaborative practices and strategic inclusion. This new approach speaks to all employees—regardless of race, gender or background—and unites them toward a common business goal.
The Top Five Functions Of A Cultural Portfolio Manager
To understand the true value of CPM, let’s consider the top five functions of a Cultural Portfolio Manager:
1. Cultural Strategy Development
The Cultural Portfolio Manager develops and implements strategies that align cultural diversity with the organization’s broader mission and business goals. By assessing the current cultural climate and identifying gaps, this manager sets clear, measurable objectives that promote inclusivity and support long-term success.
2. Cultural Asset Allocation And Integration
Just as a financial manager allocates assets to maximize returns, the Cultural Portfolio Manager evaluates and integrates diverse cultural competencies across departments. This ensures that diverse perspectives are not only present but fully utilized to drive innovation and solve complex business problems.
3. Cultural Risk Management
Cultural misalignment or conflict is a risk to any organization. A skilled Cultural Portfolio Manager proactively addresses potential issues, from unconscious bias to cross-cultural misunderstandings. By fostering a respectful and harmonious workplace, they reduce the risk of cultural tensions while promoting a productive work environment where team members feel a deep sense of belonging.
4. Performance Monitoring And Adjustments
Tracking cultural performance is key to success. The manager regularly evaluates key metrics—such as employee engagement, retention rates and innovation outputs—to make data-driven adjustments. Companies with inclusive cultures report a reduction in employee turnover and higher employee satisfaction. In essence, diversity buoys employee retention. This ensures that the organization’s cultural strategy remains aligned with its evolving needs and market conditions.
5. Stakeholder Communication And Reporting
Transparency is essential. The Cultural Portfolio Manager communicates cultural initiatives and progress to both internal and external stakeholders, presenting data-driven insights that demonstrate the tangible benefits of cultural diversity. This transparency builds trust and reinforces the organization’s commitment to inclusivity. A tangible byproduct of diversity, according to a 2018 Harvard Business Review finding, is that it garners a 70% increase in the likelihood of capturing new markets.
The Business Case For Cultural Portfolio Management
Organizations that fail to adapt to the evolving landscape of workplace diversity will be left behind. DEI, as it currently exists, is no longer enough—its political baggage has caused alienation and resistance in many companies like Meta, Tesla, DoorDash, Lyft, and Home Depot. However, CPM presents a solution that moves beyond political divides and focuses on what really matters: fostering a high-performance culture that drives innovation and engagement. Non-monocultural organizations are also 35% more likely to have financial growth above their national industry medians.
Recent studies consistently show that diverse teams outperform homogeneous ones in terms of problem-solving, decision-making, and increased revenue from innovation. CPM enables organizations to harness these benefits while avoiding the traps of traditional DEI initiatives. By emphasizing cultural intelligence and strategic inclusivity, CPM is not just a moral imperative but a business one.
Conclusion: The Time For Change Is Now
The business world can no longer afford to ignore the cracks in traditional DEI programs. Political agendas and divisive rhetoric have tainted the original goals of fairness and inclusion. CPM offers a fresh, strategic approach that is free from the social and political baggage of DEI, while still delivering on the promise of a more inclusive and innovative workplace.
As we move forward, organizations must take bold steps to embrace CPM and reap the rewards of a truly diverse and culturally intelligent workforce. Defunding your DEI program may seem like the easy choice, but the real investment lies in building your CPM strategy. In a rapidly evolving world, you can’t afford to sit this one out—your future success depends on it.
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