Diversity Programs Dismantled—Did They Ever Work?

The question isn't whether America will change but whether it can adapt quickly enough to maintain its global economic leadership.

While officials make formal programs and policies, minority business owners navigate an invisible landscape of unwritten rules and established networks.

What's Happening

• Trump dismantles diversity programs

• Black business owners express indifference to the changes

• Biden's policies show limited progress

• Minority firms remain excluded from federal contracts

• Trade associations consider legal challenges

• Business leaders cite persistent systemic barriers

The Perspective

Through my years of analyzing business culture, I see three different cultural perspectives here that illustrate why these well-intentioned initiatives often fail.

When Casey Cooper describes DEI programs that "look good on paper" but yield few results, we're witnessing more than policy shortcomings - we're seeing different understandings of how power operates, how communication functions, and how success is achieved in American business.

This cultural split imperils American economic prospects at a critical juncture when worldwide competition requires leveraging all human capital.

While other nations with different cultural perspectives successfully integrate diverse business perspectives, America's cultural perspective on power structure remains resistant to meaningful change, potentially compromising its position in the global economy.

Why It Matters

These cultural differences matter because they're reconfiguring the future of American business competitiveness. When Black business owners say DEI initiatives "aren't for us," they're not just expressing frustration with specific policies - they're revealing a fundamental disconnect between official American business culture and operational reality.

The persistence of the "good old boy network" reveals how power flows through established channels despite policy changes.

Patricia Sigers, a Black woman whose construction firm struggles to secure performance bonds, what should be a neutral business transaction, because her white male competitors have been in business longer and can obtain the bonds more easily.

This creates a cycle keeping minority-owned businesses from competing for bigger projects.

Each approach to business success emerges from unique cultural values and historical experiences. This doesn't suggest either traditional business culture or diversity initiatives are inherently superior - they're different ways of achieving success, each effective in particular contexts.

What It Means

This cultural divide reveals deep cultural differences with serious implications for America's economic future.

First, America's traditional power structure demonstrates remarkable resilience against change through its hierarchical business culture. In minority communities, business relationships often develop through mutual trust and community standing.

But the federal contracting world operates through established power networks that maintain control regardless of official policies. When minority business owners can't secure performance bonds despite strong qualifications, it shows how these different approaches to power and authority create systemic barriers.

As Wendell Stemley describes, the "good old boy network" isn't just an informal club - it's an embedded cultural system that determines who gets access to opportunities.

Second, the disconnect between stated and actual business practices reveals conflicting communication styles. American business culture claims to value direct, explicit communication through formal policies and procedures.

Yet success in federal contracting often depends on understanding unspoken rules and hidden expectations - a more indirect communication style that disadvantages outsiders. When Casey Cooper says DEI initiatives "look good on paper, but that money doesn't go to us anyway," she's highlighting how this dual system of formal and informal communication creates a maze that minority business owners must navigate.

Traditional contractors know instinctively how to read between the lines; newcomers often miss crucial cultural cues that determine success.

Third, the intensely competitive nature of federal contracting reflects traditional American masculine business values that prioritize individual achievement over relationship building.

While many minority business cultures emphasize collaboration and community benefit, the federal system rewards aggressive competition and established metrics. This mismatch between cultural approaches to success creates additional barriers, as Drexel Johnson notes when expressing frustration about "the little bit of progress that we've gotten over the years."

The system's rigid approach to defining and measuring success limits America's ability to adapt to more diverse business perspectives.

What's Next

Without new approaches that bridge the gap between policy and reality, these cultural divisions will only widen.

Traditional power networks will likely resist change through informal means, while formal diversity initiatives may continue to fall short without deeper cultural understanding.

Watch for minority business leaders to increasingly seek alternative paths to success, potentially through new business networks or innovative market approaches. The future of American business competitiveness depends on more than policy changes - it requires fundamental shifts in how power is distributed, how business communication occurs, and how success is measured.

Success will come from understanding that effective change means working with both formal and informal systems of power and influence. The question isn't whether America will change but whether it can adapt quickly enough to maintain its global economic leadership.