Internal-External Diversity Flywheel
Empower internal talent and translate representation into client relevance
- Difficulty
- Expert
- Time to result
- ~ongoing to results
- Steps
- 8
- Confidence
- 95%
Start by locating talented underrepresented employees already within the organization, especially people whose ability is not reflected in leadership representation. Ask members of that group to design and lead the initiative rather than having executives name and prescribe it for them. Executives provide unconditional support, funding, authority, and access while remaining accountable for removing barriers. Give the program a dual charter: improve opportunity and diversity inside the organization, and make the firm's services more relevant to the clients represented by that community. As participants gain visibility and leadership responsibility, their engagement strengthens recruiting and attracts additional talent. Clients then see a firm that better reflects their needs and values, reinforcing commercial relevance and organizational commitment. Scholarships, university relationships, events, and allies can expand the flywheel without replacing participant leadership.
Origin
Extracted from Masters in Business, where Dave Welling described the creation and growth of Mercer Advisors' InvestHERS initiative.
Core principles
- 01Begin with talented people already inside the organization.
- 02Let affected employees design and lead the initiative.
- 03Pair executive support with participant ownership.
- 04Give the program both an internal and an external purpose.
- 05Visible empowerment attracts talent and builds client trust.
- 06Allies should participate without displacing the people being supported.
How to run it
- 1
Find the existing talent
Identify capable underrepresented employees across roles and locations. Examine whether leadership representation matches the strength of the available talent.
Pro tip Look beyond formal titles for people already exercising influence.
Watch out Do not assume a pipeline problem before examining advancement barriers.
- 2
Transfer design ownership
Invite members of the represented group to name, charter, and lead the initiative. Let their lived and professional experience shape its priorities.
Pro tip State clearly that executive sponsorship does not mean executive control.
Watch out A program designed entirely by outsiders can miss actual needs and undermine trust.
- 3
Supply unconditional support
Provide funding, public backing, leadership access, and permission to challenge existing practices. Remove institutional obstacles the steering group cannot remove alone.
Pro tip Ask leaders what specific barrier you can clear each quarter.
Watch out Verbal enthusiasm without resources leaves participants doing unpaid symbolic labor.
- 4
Create a dual charter
Set one internal objective for representation and opportunity and one external objective for serving relevant client needs. Use both to make the initiative central to the business.
Pro tip Connect each objective to measurable activities and outcomes.
Watch out A purely external marketing goal can become performative; a purely internal goal may miss client relevance.
- 5
Elevate qualified leaders
Give talented participants meaningful leadership opportunities based on merit and readiness. Make their expertise visible throughout the organization.
Pro tip Use sponsorship as well as mentorship by advocating for concrete roles.
Watch out Avoid token appointments without authority or support.
- 6
Expand the talent pipeline
Build scholarships, university relationships, recruiting channels, and professional events around the initiative. Let current participants demonstrate the lived employee experience.
Pro tip Use employee stories and direct interaction rather than corporate claims alone.
Watch out Recruiting more diverse talent without improving retention and advancement will not sustain progress.
- 7
Engage clients and allies
Show clients how the program improves understanding and service while inviting allies to learn and advocate. Keep the represented group central to governance.
Pro tip Give allies specific supportive behaviors rather than a ceremonial role.
Watch out Allies should amplify the initiative, not become its primary voice.
- 8
Reinforce the flywheel
Track how leadership visibility affects recruiting, employee engagement, and client response. Reinvest gains into the next set of opportunities and partnerships.
Pro tip Review both internal and external indicators with the steering committee.
Watch out Do not reduce success to attendance at events.
In the wild
A financial firm discovers that many talented women work across planning, advisory, tax, and estate roles but few hold leadership positions. The CEO asks women employees to design and name the program, promises funding and support, and gives it a charter covering internal advancement and female-client relevance. Leadership opportunities, scholarships, university partnerships, and annual programming then reinforce one another.
→ The initiative improves leadership visibility, attracts more talent, strengthens client identification with the firm, and engages allies across the company.
Common mistakes
Letting executives design everything
A leadership team that does not represent the group may choose the wrong name, priorities, or activities. Participants should own program design while executives remove barriers.
Treating representation as charity
Qualified employees should advance because their talent warrants responsibility, not merely to improve an appearance metric. Sponsorship should reveal and support merit rather than substitute for it.
Choosing only one side of the charter
Internal advancement and external client relevance reinforce each other. Omitting either side weakens the flywheel and the program's connection to the business.
Is it for you?
Best for
It is best for organizations that already have underrepresented talent but lack representation in leadership and a practical diversity program.
Not ideal for
It is not ideal for companies seeking a short-term branding campaign without leadership opportunities, resources, accountability, or operational change.
From the transcript
“I need your leadership and I will give you unconditional support, but you need to tell me what you're going to do.”
“So it has an internal purpose and an external purpose”
“The the elevation and empowerment of the talented women in our organization has helped us from recruiting”
From the episode
Dave Welling on What Financial Services Should Look Like
Dave Welling