It's Time to Talk about Diversity in a Divided World

Moderator   Please introduce yourself.

Beth McGrath   Many years ago, I started my government career at the US Department of Defense (DoD) as an intern and 25 years later, left as a political appointee. My journey began working for the Department of the Navy and concluded in a political position where I oversaw the “business of defense” – those critical enabling areas such as finance, human resources, logistics, etc.  I learned the importance of working together as a team to achieve objectives and the value of strong national security both domestically and globally.  I retired from Defense about 10 years ago and joined Deloitte US, and currently serve as the global leader for Government and Public Services (G&PS) I'm proud of the work we do and the impact we are making.

Haruko Nagayama   My areas of expertise are accounting and auditing. When I was a university student, I passed the Japanese Certified Public Accountant (CPA) exam. After graduating, I started my career at Tohmatsu, a limited liability auditing firm, and worked as an auditing partner for clients, mainly multinational corporations. It is my pride as a certified public accountant to have contributed to the economy and society through accounting and auditing. I am now chairperson of the board of the Deloitte Tohmatsu Group and the auditing firm Tohmatsu. I am also a board member of Deloitte Asia Pacific.

Moderator   You are both role models for women, but you must have been through some hardships to get to this point. What barriers have you faced, and how have you managed to overcome them?

Beth McGrath
Global Government & Public Services Leader, Deloitte US

Beth McGrath is Deloitte’s global leader for Government and Public Services. In her role, she is committed to strengthening synergies across global Industries and government and public services with a focus on client mission needs and solutions. McGrath has broad, multidisciplinary, strategic, and operational management experience acquired from 25 years of successful performance in the United States government sector. As a member of Deloitte’s Strategy practice, she advises government and commercial organizations on strategies that help further innovation and improve business operations.。

Beth McGrath   Of course, there were walls. Men may face them too, but the barriers women face in the workplace seemed higher and more imposing. 

For most of my time working in the US government, much of the room I was in didn’t look like me.  People/women should not let that hold them back. There are endless opportunities that will inevitably involve a wider set of partnerships than we’ve seen before. If you’ve got the skill and courage to get involved, there’s a place for everyone at the table.

In the United States, when I began my career, there were far fewer women in the workplace than men, especially in National Security and Defense; the gap between men and women in the workplace was stark. For example, while working for the Navy, I supported ships during maintenance, repair and overhaul (MRO) operations, where it was very uncommon to see women.   However, for those who are in the earlier stages of their public service careers, McGrath is full of encouragement: “Have confidence in your abilities and capabilities even if the room doesn’t look like you. When you walk into a room and see seats around a table and a second row along the wall, don’t automatically take the seats along the wall.”

I was also fortunate that I had good mentors along the way. I think having a good mentor is very important for everyone and at every level. I think that being a mentor is important as well - it helps you grow as a person by becoming a mentor and passing on the experience to others. 

Staying true to my values and following the lead of a good mentor are two things that have helped me overcome many barriers.

Haruko Nagayama
Chair of Deloitte Japan

Haruko has been engaged in a wide range of industries including general trading, retail, global manufacturing, travel, and finance, including auditing under Japanese and IFRS accounting standards, supporting the preparation of consolidated financial statements, and supporting the introduction of IFRS. She has also experience in developing accounting standards as a member of the committees of Accounting Standards Board of Japan and the Japanese Institute of Certified Public Accountants. 

From June 2018, she was a Managing Partner and was in charge of Corporate Planning in Deloitte Touche Tohmatsu LLC (until August 2020). From August 2020, she was also a Member of the Board of Deloitte Tohmatsu LLC and a Member of the Board of Tohmatsu LLC (until July 2022)

Her current position is the Chair of Deloitte Japan Board of Directors (since July 2022) and a Member of Deloitte Asia Pacific Board of Directors (since June 2022) 

Haruko Nagayama   I too have struggled a lot with work-life balance. Luckily, at Deloitte, women were rarely discriminated against, and were not difficult to work for. I was given ample opportunity to challenge to worry that it would seem to be a reverse discrimination and unfair preferential treatment to men.

About seven years ago, I sat down with David Cruickshank, then chairperson of the board of Deloitte Global and one of the founders of the 30% Club in the UK, to discuss my confusion. He replied immediately:

“People often ask me why diversity is so important in corporate organizations, and the answer is simple. Because of economic rationality. Statistics show that companies that promote diversity and are diverse perform better than those that are not. Providing women with the same opportunities as men is not reverse discrimination, it is a natural management strategy based on economic rationality.”

These words saved me. It was a moment when the stigma of being given an opportunity was lifted.

Creating an environment where people can talk about anything has made gender less taboo.

Moderator   The concept of diversity is being greatly expanded beyond women's participation in “DEI: Diversity, Equity, Inclusion.” How do you see this trend?

Beth McGrath   Each person has a unique story, which is not only about gender differences, but also about the language, knowledge, customs, and ideas acquired through their upbringing, culture, and experiences. As people, goods, money, and information circulate around the world, business has become more globalized, and connections across borders have become thicker and stronger, and as a result, awareness and understanding of diversity have exponentially expanded. Where there is diversity, there is progress, development, and innovation. Having a diverse team is a business imperative. The stage of questioning the effects and benefits of diversity has passed, and we need to put them into practice.

Gender was the first focus area to change the way people think about diversity. Through the promotion of women's participation, people's understanding of the importance of diversity was expanded, new goals were set, and actions were taken to create a more diverse workplace. The gap between ideals and reality is still wide, and there’s still more ground to cover in both the United States and Japan, but I think it’s important for female leaders like Ms. Nagayama and myself to actively talk about diversity and engage the younger generation. I believe that by creating an environment where people can talk about anything, no matter how challenging, diversity issues have become less taboo and have led to healthy and constructive discussions.

The approach is exactly the same, even as DEI is broadened. There are many challenges and a long way to go, but it is important to talk and think together first, and from there, action will follow.

Haruko Nagayama   I couldn't agree more with Beth's opinion. Japanese companies are working hard on this, but the problem is that the speed is a little slow. Especially in a Japanese organizational culture, it is essential for top management to clearly commit and strongly lead the change.

The Deloitte Tohmatsu Group regards diversity as a top management priority, and the Group CEO leads the way in promoting activities. Through various channels, including online events for company employees, the Group CEO himself sends out messages and engages in dialogue. At such events, they also pay attention to balancing the gender ratio of speakers (panel promises). By bringing together panelists from diverse backgrounds and having female leaders there, we hope to enhance discussions and motivate young female employees. That removes the unconscious bias.

Let's talk, take steps, make friends, create a better world.

Moderator   While organizations and societies face diversity, the world is becoming more divided. What should be done?

Beth McGrath   Yes, the world is going through a very difficult time. Globalization has connected everything, and the Internet has become a platform where individuals can freely express their opinions to the world. The world has become smaller, and we can instantly know where things are happening and how people are feeling. However, the opinions and ideas expressed out there vary greatly. While some are constructive in encouraging people to better understand each other, others are aggressive in amplifying division and conflict.

Because of this chaotic situation, it is increasingly necessary for companies and organizations to convey their values, ethics, and raison d'etre both internally and externally about the role they intend to play in society. 

As an individual in an organization, you should also reflect on where the boundaries of your beliefs and sources of motivation lie. If you are at odds with the organization's purpose, it may not be the right place for you. However, it is impossible to completely reconcile the organization's logic with the wishes of individuals. In the first place, an organization is a place where people with diverse ideas gather under a common purpose, so if they put their thoughts into words and confront each other without hesitation and care, it will easily collapse.

But it is also true that there is no understanding without dialogue. We've worked hard to learn techniques to expand our understanding and empathy and move forward on diversity issues, including how to communicate them without offending others, what to say to convince them, and what not to say to avoid creating conflict. I have learned the delicate art of communication, sometimes pushing hard, sometimes letting nature take its course, and sometimes daring to remain silent. I believe that this trial and error and constant dialogue will lead to the betterment of the organization, as well as society and the world to which it belongs.

Moderator   Finally, please give a message of support for young businesspeople in Japan.

Haruko Nagayama   The world is changing rapidly, so we have to change too. Take on new challenges, innovate, and create solutions with a diverse team. Don't be afraid to live up to your beliefs and forge your own future.

Beth McGrath   Let's talk more and more. Be brave and take the first step. Then you will have company. Let's work together to create a better world.

Also read “Women in Defense: U.S.-Japan Dialogue : Changing Japan’s Defense with the Power of Women”