Why Diverse Teams Are More Innovative
After a long period of stagnation in science, art, philosophy, politics, and more, 14th-century Europe saw a rebirth of new ideas that flourished across the continent and the world, forever changing the way people thought about the human experience.
As you probably know, I’m talking about the Renaissance. What sparked this period of unprecedented innovation — the world-changing era that brought us da Vinci’s “The Mona Lisa”, Descartes’ foundation of philosophy, Copernicus’ discovery of the heliocentric solar system, and so much more?
In a word — diversity. The Renaissance began as a cultural movement centered around humanism, or the idea of embracing human achievements. But innovation didn’t truly flourish until ideas spread across borders thanks to Gutenberg’s printing press, invented during the mid-15th century.
For the first time in history, people from different ethnic and cultural backgrounds were able to join the conversation. As their ideas compounded, breakthroughs and discoveries built an unstoppable momentum. Our world has never been the same since.
Proven Effective
Diversity is including people from a variety of ethnicities, races, genders, ages, and sexual orientations, as well as people with different educational backgrounds and life experiences. It’s become a bit of a buzzword lately, but diversity at your company is endlessly beneficial.
A study by Deloitte that encompassed 50 companies across the globe and over a million employees found that diverse teams boosted innovation by 20% while reducing overall risk by 30%.
Additionally, a 2018 study by McKinsey & Company found that diverse executive teams are 33% more likely to see higher profits than non-diverse competitors (see: Executive Summary).
These stats and more show that prioritizing diversity isn’t just the right thing morally and ethically, but it also makes good business sense.
Why Diversity Makes a Difference
There are plenty of factors that make diversity so powerful in business settings, where creativity, insight, foresight, problem-solving, and market analysis are paramount. Bringing a diverse group of minds together is one of the best examples of synergy, or a whole that’s greater than the sum of its parts.
A diverse team, more so than a homogenous one, will:
Question Assumptions
Diverse teams bring a whole host of unique perspectives to the table. Because of this, there is no baseline for assumptions. Every idea is questioned with great attention to detail, because everyone on the team has a different viewpoint.
On the other hand, a homogenous group will most likely approach the topic in question with the same assumptions and understanding. This increases the potential for blind spots by a huge margin.
Offer Creative Solutions
Why do so many artists travel, spend time in nature, or strike up conversations with strangers when their creative wells are running dry? Because creativity is born of the previously unknown — new ideas, experiences, perspectives, and insights. Diverse team members who collaborate effectively can offer more creative and unprecedented solutions.
A team member from Belgium is going to have different ideas than one from California, just as one from an Ivy League school will have different input than one who traveled instead of going to college. As they share perspectives, new ideas will spark and grow.
Make Better Decisions
Diverse teams quite literally bring more ideas to the table. With more options to assess, test, and choose from, your chances of making the right call will increase. In fact, one study showed that diverse teams make better decisions a whopping 87% of the time.
Besides offering more ideas, diverse teams are also better able to spot potential problems with said ideas. I mentioned blind spots earlier, and they’re a big stumbling block in decision-making. A team of all-white, all-male, all higher-educated employees simply won’t recognize the same issues as a team from all backgrounds. When it comes to marketing, R&D, and many other areas of your business, diversity is a must.
Understand Broader Markets
Understanding and speaking to a target audience are vital in business, directly impacting the products and services you offer and how you market them. If your team is homogenous, their understanding of potential customers is very narrow. On the other hand, a diverse team offers a much broader understanding of people, including their wants, needs, and pain points.
Don’t miss out on potential business opportunities by clinging to a single perspective. That product you’re about to launch may attract more customers than you realize — but you have to learn how to speak to them first.
Attract Diverse Talent
It has become clear in recent years that diversity is a must, but it’s not enough to be merely “open” to diversity. Companies that want the best talent pool must attract diverse candidates — and overcome their own biases.
Creating a company culture that demonstrates respect and inclusion is the most impactful way to attract talent from all backgrounds and walks of life. Employees talk, so companies that make every voice heard and treat people as equals will stand out from the crowd.
It’s also beneficial to recognize that we all have biases and blind spots, as much as we’d like to think otherwise. Affinity bias, or the subconscious tendency to favor people similar to us, can take a massive toll on hiring practices. To combat it, implement strategies to reduce bias, such as blind recruiting. It’s also important to use a diverse hiring team to assess potential candidates.
Diversity is one of the greatest gifts you can give yourself as a business leader. With more ideas, talents, and backgrounds in the mix, innovation explodes. Perhaps as you reevaluate your company culture and hiring practices, ultimately expanding your talent pool, your company will experience its own Renaissance of ideas and innovation.