From Performative to Performance: If You Cut “DEI” You Probably Weren’t Measuring ROI- What Now?

By Lili Gil Valletta – Chief Executive Officer

Could it be that if you cut “DEI” you probably weren’t investing in the right strategies, or you turned it into a compliance effort? Was DEI performative and not about performance? Here is my take and humble reflections, above the noise and fears of the moment. You can call it whatever, rebrand it, or kill it, but the market is the market, and the growth drivers are the growth drivers, and the power of culture as the new mainstream remain strong.

My disclaimer:

As someone who has talked to CEO’s, board directors and even all NFL team owners about the power of cultural economics and inclusion, this DEI reset has become a “come to Jesus moment” to self-reflect, evaluate and elevate from the noise, fear, and actions of many getting back to the core of business with Cultural Intelligence®. To us this moment doesn’t change much, since our work and firm has been always about GROWTH and following the evidence in numbers to where culture and market shifts can turn into impact and profits.

This is NOT political, and if you are making it, you are missing out BIG TIME. This is about business. I hope you can read this short and sweet entry as a self-reflection and challenge to evaluate your own strategies and approach. Is it performative, or is it about performance?

No matter who is influencing you or who you voted for, the evidence is clear, and while DEI may be dead, a fast-growing, diverse market that drives 100% of all population growth is not. The challenge is…how will you shift from simply a “program to a mindset”?

Many jumped into the DEI renaissance in 2020-2021, a moment when I could sense almost as a crystal ball premonition that it didn’t feel right. This was when DEI sadly became equated with quotas, listening sessions, perceived preferential treatment, punitive demands, an obsession with visual “representation” and not diversity to promote innovation and better thinking, when Employee Resource Groups started sounding more like activists than business partners. A moment of corporate letters and Instagram posts that seemed like virtuous signaling in response to corporate guilt-tripping versus real investment, systemic, and corporate changes for long-term success- with no receipts or real investment change. And yes, it backfired, hence why my TED talk then was called “Diversity is overrated,” and here we are now. Only those who seek higher ground beyond taking sides but stay disciplined following the trends and the needs of their customers and dare to remain culture-ready and future-proofed will truly WIN. And if you don’t, you let your own political, personal, and fearful bias get in the way of good decision-making. Do you need a program or a mindset? Don’t let this moment backfire on you as the death of pursuing strategies for growth that tap into growth trends.

DEI Didn’t Fail. Leaders Failed to Tie It to Performance.

Let’s be honest—many companies are ditching DEI not because it didn’t work, but because they never had the discipline to measure ROI in the first place. They got caught up in the performative virtue signaling and failed to tie inclusion to business outcomes, growth, and profitability.

So now, they’re pulling back—not because diversity isn’t valuable, but because they never built the right business strategy around it.

But here’s the reality check: 100% of U.S. population, consumer, workforce, and voter growth comes from diverse segments. Cutting inclusion isn’t just a “cultural” decision—it’s a business failure.

So, if your company is walking away from DEI, ask yourself:

• Was it a growth strategy? Or just a PR move?
• Did you measure impact? Or just “check the box”?
• Were you chasing change? Or just chasing applause?

If it wasn’t driving sales, market share, and competitive edge, then you weren’t doing it right. And if it was, reframe it and rebrand it, but it doesn’t die unless your fear is bigger than the proven inclusive growth that you’ve experience.
The Market Has Already Shifted. Did Your Strategy and How You Talk About It?

For the companies still thinking they can ignore America’s changing demographics—wake up. The numbers aren’t just shifting; they have already changed:

• 41.6% of the U.S. population is non-white—up from 24.4% in 1990. And it’s only growing. (Source)
• Latinos contribute $3.2 TRILLION to U.S. GDP, larger than the economies of the U.K. and France. (Source)
• Between 2022 and 2023, the Hispanic population accounted for nearly 71% of the United States’ overall population growth, primarily due to natural increase. census.gov
• Gen Z is majority “minority” hence the NEW mainstream and “general market”—over 50% identify as Black, Hispanic, Asian, or multiracial. This is your future consumer and workforce. (Source)
• Hispanic buying power is set to exceed $2.5 trillion, growing twice as fast as non-Hispanic markets. (Source)
• Latinas alone accounted for 30.2% of U.S. labor force growth in the last decade. (Source)
• Latin music has become the 4th most popular genre in the U.S., surpassing country music for the first time. businessinsider.com
• Women of color account for 50% of all women-owned businesses, making them the fastest-growing entrepreneurial segment in America. (Source)
• Affluent multicultural households are projected to grow by 74% over the next decade, outpacing the 24% growth rate of affluent non-Hispanic White households. www3.nbcuni.com
• In 2022, 62.5% of Asian 18- to 24-year-olds were enrolled in undergraduate programs, the highest rate among all racial and ethnic groups. equityinhighered.org

…and the numbers go on and on across industries

Ignoring these numbers is not just a missed opportunity—it’s reckless and blind leadership. Time for a Reset: From performative DEI to performance with Cultural Intelligence. From diversity for representation sake to inclusion for innovation and growth.

This is not a program. It’s not charity. It’s not “woke” politics.

This is about winning in business. It’s about cultural economics.

The companies that thrive in the next decade will be the ones that graduate from performative efforts to achieve growing performance. It is a mindset shift—one that embeds Cultural Intelligence into:

• Marketing & Customer Growth – Are your campaigns built for the America of today, or the America of 1990? If your team is still treating multicultural consumers as a side project, you’re losing market share.
• Product & Innovation – Does your pipeline reflect the new mainstream? Because if you’re not developing products and services that resonate with the evolving market, someone else is.
• Talent & Leadership – The workforce of the future is already diverse. If your executive team doesn’t reflect that, expect to struggle with recruitment, retention, and performance.
• Revenue & Investor Confidence – If you think inclusion doesn’t impact your bottom line, show me the numbers. The data proves otherwise. Investors are looking for future-proofed businesses—companies that see where the market is going and act accordingly.
  ROI: Return on Inclusion or Return on Ignored?

You have a choice.

You can measure, adapt, and leverage the business case for inclusion to drive sustainable growth.

Or you can let outdated fears and lazy execution keep you chasing yesterday’s market instead of capturing today’s new mainstream and tomorrow’s culture shifters.

• The companies that own the future will be the ones who dare to follow the evidence instead of falling back on excuses. Follow the evidence and ask yourself, is there another path to growth if not by tapping into high-growth markets?
• The Switch: From Playing Defense to Playing to Win

This is the reset moment for leaders who are serious about growth.

Not because it looks good on a PowerPoint. Not because it gets media coverage. But because it makes money, builds brands, and creates market dominance. And yes, by the way, it also creates economic empowerment, opportunity, upward mobility and prosperity for ALL.

So, CMOs and CEOs—are you ready to switch from performative to performative and profitable?

The next era of Cultural Intelligence® Acceleration is here. And those who ignore it?

They’ll be the case studies of what not to do.