Diverse Leadership Teams Perform Better
Leadership teams made up of individuals from diverse generations, cultures, communication styles, and genders, have better business results. Teams with diverse perspectives, often shaped by different backgrounds, preferences, and experiences, have better ideas, and make better decisions. A recent McKinsey study sheds light on this interesting phenomenon. Gender-diverse companies are 15% more likely to outperform the national industry median, and ethnically diverse companies are an overwhelming 35% more likely to outperform their less-diverse peers. We know correlation does not equal causation, but what this study does offer is great insight into why organizations need to focus on diversity. They further elaborate:
“More diverse companies, we believe, are better able to win top talent and improve their customer orientation, employee satisfaction, and decision making, and all that leads to a virtuous cycle of increasing returns. This in turn suggests that other kinds of diversity—for example, in age, sexual orientation, and experience (such as a global mind-set and cultural fluency)—are also likely to bring some level of competitive advantage for companies that can attract and retain such diverse talent.”
An organization I speak and support, Integrated Woman Leaders Foundation, shared this powerful video at their annual conference this year about the current diversity statistics, and the results that organizations get with more diverse leadership teams. For those wanting to influence more diversity in your organization, this two-minute video gives all the reasons why diversity matters.