Previously, Diermeier was the David Lee Shillinglaw Distinguished Service Professor at the University of Chicago, where he also served as provost.

During his tenure the Harris School increased the number of students and faculty,[6] expanded key areas of scholarly research, and led fundraising efforts for the renovation of The Keller Center.

[8] On December 4, 2019, Diermeier was announced as the ninth Chancellor of Vanderbilt University, beginning July 1, 2020, and was officially invested April 9, 2022.

[18] Diermeier has served as a board member for the University of Chicago Medical Center, Argonne National Laboratory, the Civic Consulting Alliance, CityBase, the Marine Biological Laboratory, the National Opinion Research Center, the Field Museum of Natural History, and the management board of the Federal Bureau of Investigation.

[19] He also has been an advisor to governments, nonprofit organizations, and leading corporations, including Abbott, Accenture, Allianz, the City of Chicago, the Government of Canada, Ernst & Young, Exelon, the FBI, Hyatt, Johnson & Johnson, Medtronic, Metro Group, PricewaterhouseCoopers, State Farm, UnitedHealth Group, and the United States Olympic and Paralympic Committee.