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30 | TH E M R EP O RT FEATURE I t's no secret that the mortgage industry has a diversity prob- lem at the corporate level. When it comes to enhancing diversity, we've been pruning the leaves and branches for some time now, but it's time to get to the root of the issue. While old habits die hard, we need to let go of the most significant myth that is holding back real progress. Many industry leaders believe diversity in the C-suite can be achieved organically through train- ing and awareness, but it can't. Diversity doesn't just "happen" on its own. It requires a strategic change or a game plan that organi- zations must see through. Most of all, it needs to start at the very top of the corporate ladder. Fortunately, support is avail- able to mortgage industry leaders who truly want diversity in the C-suite. There are many advi- sors, organizations, and resources available to help mortgage lenders build diversity at every level of their organizations. There are many effective recruitment and promotion strategies, too. The results are clear–making these changes works. But it starts with letting go of old habits. 'I Know a Guy' A ccording to the 2017 study "Women in the Workplace" by LeanIn.Org and McKinsey, diversity is plentiful at entry- level positions and growing in mid-management positions. When one looks at senior man- agement positions, the propor- tion of women and minorities falls dramatically, and at the C-suite level, their numbers are extraordinarily small. So, what's going on here? Many organizations have a standard recruiting process for the lower- and midlevel staff members, but many companies either don't have or follow the same procedures for their executive hiring. This is because senior hiring is so often a relationship-based decision, which perpetuates affinity bias. The phrase "I know a guy" is an all- too-familiar sound to those of us who have experienced this bias. The first step towards increas- ing diversity at the higher levels of an organization is to acknowledge how and why it happens. The second is for the CEO to make an active commitment to increase di- versity through targeted methods. For example, often the CEO and HR are in alignment with diversi- ty hiring, but the senior managers continue to disregard the direc- tion. To overcome this obstacle, the CEO could send a direct message to his group notifying everyone that available positions must move through a specific and open process. When the process is overlooked, the CEO needs reporting to demonstrate it is hap- pening and then hold his direct reports accountable. The third step is to put those methods in place and stay committed to them. The most prominent roadblock to success is falling back on the "I know a guy" approach. This is nothing more than an excuse that pre- serves the affinity bias, which got us to this place initially. To ce- ment a new process, it's essential to track, measure and report on candidate selection and internal promotion activity, including such detail as the source of the candi- date and the candidate's gender and ethnicity. Opening the Process W hile many mortgage organizations struggle with diversity, there are human resource and recruiting firms who are more than happy to work with lenders to improve diversity among the executive team and can help define the hiring process. Often these firms have standard processes in place for recruiting senior manag- ers and C-level executives that can be augmented to attract a more diverse pool of candidates. Other executive recruiting firms specialize in identifying highly talented women and minority candidates. Whether they get help in the recruiting and promotion of C-level talent or not, organiza- tions can develop their strategies for improving diversity, such as blind resume reviews. This is where you remove the name from a resume, but everything else remains, including past positions, accomplishments, and skills. This makes it less likely that interview- ers make assumptions about a candidate based on the candidate's name, gender, or ethnicity. Another method is to make sure the interview panel itself is diverse and comprised of people with a variety of backgrounds, which helps reduce bias in the process. Interviewers should also be given a set list of questions about skills and job requirements and give each candidate numerical scores based on their answers. At the end of the interview process, the panel should come together to discuss each candidate with the hiring manager. Promotion is an important part of increasing diversity at the C-level. However, it can also be challenging, particularly for a large organization. Often, people who have higher day-to-day visibility are more likely to be promoted to leadership positions. Candidates Slaying the C-Level Diversity Myth Creating diversity at the corporate level starts with letting go of old habits and installing new procedures that will create lasting change. By Deb Aydelotte