Why Diverse Teams Are Smarter

15 March, 2021

David Rock and Heidi Grant explore for Harvard Business Review why diverse teams are smarter.

Striving to increase workplace diversity is not an empty slogan — it is a good business decision. A 2015 McKinsey report on 366 public companies found that those in the top quartile for ethnic and racial diversity in management were 35% more likely to have financial returns above their industry mean, and those in the top quartile for gender diversity were 15% more likely to have returns above the industry mean.

In a global analysis of 2,400 companies conducted by Credit Suisse, organizations 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.

In recent years a body of research has revealed another, more nuanced benefit of workplace diversity: nonhomogenous teams are simply smarter. Working with people who are different from you may challenge your brain to overcome its stale ways of thinking and sharpen its performance. Let’s dig into why diverse teams are smarter.

Several studies have found that diverse teams focus more on facts, process those facts more carefully and are significantly more innovative. For details read the full article, and consider whether your organisation would benefit from more diversity in the office.

Harvard Business ReviewDavid Rock and Heidi Grant, 4 November 2016. Read the full article here.

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