Diverse teams are smarter, more innovative and focus more on facts

Increasing diversity in the workplace is not just an empty slogan but makes sound business sense, points out a recent article in Harvard Business Review titled “Why diverse teams are smarter” by David Rock and Heidi Grant Halvorson. It cites a 2015 McKinsey report on 366 public companies that revealed those in the top quartile for ethnic and racial diversity in management were 35 per cent more likely to have financial returns above their industry mean, and those in the top quartile for gender diversity were 15 per cent more likely to have returns above the industry mean. Further, the writers add, a global analysis of 2,400 companies conducted by Credit Suisse showed that organisations with at least one female board member yielded higher return on equity and higher net income growth than those that did not have any women on the board. Citing more examples, the article points out that diverse teams are smarter as “they focus more on facts”, “they process those facts more carefully” and “they are also more innovative”.