Natalie Holder
Chief DEI Officer at the National Lab Operated by Stanford University
SLAC National Accelerator Laboratory (managed by Stanford University)
Episode 327
The Glass Cliff Threat to DEI: How to Empower CDOs for Strategic Growth.
Current chapter: Built by People podcast features insights from world's top HR leaders
Built By PeopleJanuary 28, 2025 · 16:13
Thesis
“Chief Diversity Officers are critical strategic partners for organizational competitiveness and relevance, but organizations must provide clear intentionality, adequate resources, and strong stakeholder support to empower them and prevent the 'glass cliff' phenomenon.”
Show notes
The statistics are stark: many organizations that loudly elevated Chief Diversity Officers to the C-suite in the wake of 2020 have since quietly eliminated those roles or pulled them back. Natalie Holder — a former employment attorney turned Chief DEI Officer — calls this the "glass cliff," and she's spent her career studying both how it happens and how to prevent it. Her answer lies not in better intentions, but in structural design: defining the role clearly before making the hire, identifying the right stakeholders, and treating DEI as a competitive business function rather than a reputational hedge.
Natalie argues that CDOs who survive and thrive are those who bring organizations something they can't get elsewhere: a lens for identifying market opportunities, supply chain relationships with minority-owned businesses, and the ability to translate demographic shifts into strategic advantage. That framing — DEI as business intelligence, not just moral obligation — is what gives the function durability when political winds shift.
Her advice for organizations navigating the current moment is direct: the data doesn't lie. It reveals where you're missing market share, where your procurement is leaving value on the table, and whether your stated values align with your actual behavior. Public memory, she notes, is long.
- The CDO as strategic business partner — how diversity officers identify competitive opportunities other functions miss
- Avoiding the glass cliff — the structural conditions that determine whether a DEI leader succeeds or becomes a cautionary tale
- Cross-functional DEI impact — how the work touches marketing, procurement, communications, and brand reputation
- Stakeholder mapping before saying yes — why identifying board, shareholder, and leadership sponsors is non-negotiable before taking the role
- Data as the anchor for DEI strategy — using evidence to reveal missed market opportunities and guide decision-making
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What you'll take away
- 1CDOs are strategic business partners who bring a unique lens to identify new competitive initiatives, rather than merely a 'nice-to-do' function.
- 2Organizations must actively prevent the 'glass cliff' by clearly defining the CDO's role, providing necessary resources and support, and ensuring strong internal stakeholders.
- 3DEI initiatives positively impact various departments, including marketing, procurement, and communications, by enhancing brand reputation, uncovering market opportunities, and fostering diverse supplier relationships.
- 4Individuals taking CDO roles should diligently identify key stakeholders (e.g., boards, shareholders, government agencies) to ensure the work is valued and supported.
- 5All organizations making shifts in DEI must be data-driven, as the data reveals missed market opportunities and informs effective change, while public opinion remembers inconsistencies in stated values.
What most organizations get wrong
- •Pushing back on simply 'stuffing' CDOs into talent acquisition, arguing their expertise spans organizational dynamics, psychology, and overall business strategy.
- •Challenging the notion that DEI is a 'hobby' by asserting it's a data-driven business imperative directly linked to market opportunities and competitive advantage.
In Natalie's words
“It's not really a career ladder anymore. It is a very circuitous path to getting to a place where you eventually find happiness and joy with what you're doing professionally.”
This quote reframes modern career progression as non-linear and highlights the importance of professional fulfillment.
“When organizations are looking at new and different ways to be competitive and to stay relevant, it's your chief diversity officer who oftentimes is going to be that person to help you examine, evaluate, and execute on new and different initiatives.”
This quote defines the strategic and competitive value a CDO brings to an organization, beyond just compliance.
“But statistically, if you look at many of the, many of these organizations that had these pronouncements of, you know, moving the chief diversity officer into the C-suite, even hiring one, many of those organizations have now backtracked and those chief diversity officers have fallen off of the glass cliff.”
This highlights the 'glass cliff' phenomenon, where CDOs are hired for visible roles but often lack support, leading to their departure.
“I often say to people, don't take a role unless you know who your stakeholders are.”
This provides critical advice for individuals to assess the viability and support for a CDO role before accepting it.
“As one of my fellow chief diversity officers said, the D&DEI should stand for data. The data tells you a lot about how and where you're missing market opportunities.”
This emphasizes the critical, data-driven aspect of DEI, repositioning it as a tool for identifying business growth and market insights.
The problems this episode addresses
- •Organizations struggle with effectively utilizing their Chief Diversity Officers, often pigeonholing them into limited roles like talent acquisition.
- •The 'glass cliff' risk where underrepresented leaders are placed in high-pressure roles without adequate resources or support, leading to their failure and departure.
- •Lack of clear understanding within organizations about the strategic business impact and definition of Diversity, Equity, and Inclusion.
- •Failure to identify and engage with diverse supplier businesses (e.g., veteran-owned, women-owned, minority business enterprises) for procurement opportunities.
- •Reputational damage and loss of trust when organizations backtrack on publicly stated DEI values, affecting employee morale and external perception.
- •Absence of data-driven decision-making in DEI strategy, leading to missed market opportunities and ineffective initiatives.
In this episode
Built by People podcast features insights from world's top HR leaders
Built by People
I started out as an employment attorney, litigating cases of discrimination
On Your Career Path
Chief diversity officer helps organizations identify, evaluate, and execute new initiatives
What is the role of a Chief Diversity Officer?
Can you share examples of how organizations can utilize chief diversity officers to drive organizational effectiveness
The Chief Diversity Officer's Role
How do you approach the challenge of avoiding the glass cliff for diversity officers
The Glass Cliff: Preventing Diversity Officer Fall
How does diversity impact areas like marketing, procurement, and communications
How Diversity Impact Marketing, Procurement, and Communications
Many organizations are making shifts around diversity, equity, inclusion
In the End: A message for diversity and equity
Topics covered
Organizations and entities mentioned
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