Using the Diversity Impact Navigator to move from interventions towards diversity management strategies

Abstract

Purpose – The purpose of this paper is to study current problems of implementing Diversity Management (DM) in businesses and presents a concept for measuring and estimating a value for diversity interventions. Design/methodology/approach – An intellectual capital approach is used to identify a matrix of problems while implementing DM. To address the accounting problem for DM, advantages and disadvantages of the Diversity Scorecard are discussed and issues that require further conceptual development are identified. Findings – Understanding DM as a part of intellectual capital helps solve accounting problems. The tests of the concept of Diversity Impact Navigator show that measuring DM at this stage requires a simple design, that using key indicators forces diversity interventions and that the process of valuation increases the understanding of DM by all stakeholders and thus its economic legitimation. Originality/value – A newly developed concept helps solve the problem of measurement and valuation of DM. The paper presents the first test results.