How do you measure the impact of diverse leadership in the workplace?
Part of the answer may be in dollars and cents. A recent study found that large companies with more diverse leaders reported better financial results.
A study of 366 public companies in the U.S., U.K., Canada, Mexico, Chile and Brazil by McKinsey & Co., a major management consultancy, found “a statistically significant relationship between a more diverse leadership and better financial performance.”
Companies with gender diversity that ranked in the top quartile were 15 percent more likely to have financial results above their national industry median. The returns were even better for companies in the top quartile of racial/ethnic diversity. These businesses were 30 percent more likely to have financial returns that outpaced their industry.
On the other hand, companies that ranked in the bottom quartile for ethnicity/race and gender were less likely to achieve above average financial results.
The link between diversity at the highest levels and increased profitability should not be a head scratcher. Highly diverse companies appear to excel financially due to their recruitment efforts and talent pipelines, improved decision-making, strong customer orientation and increased employee satisfaction, the report said.
How does your workplace fare in the diversity arena? Are the decision-makers reflective of an increasingly changing nation, not just in in terms of gender and ethnicity/race, but also sexual orientation and age?
Is there a systematic approach to achieve a diverse talent pool where you work?
Investing in diversity not only increases creativity and encourages personal growth, it can improve your workplace’s competitive edge. Learn more at http://www.mckinsey.com/insights/organization/why_diversity_matters.
Let us know what you think.
Robin writes about health, business and education. Visit her at RobinFarmerWrites.com