Diversity Leads to Innovation. But How?
You’ve probably heard this before: “Diversity is important because it leads to innovation.”
And this is true.
Research shows that diverse organizations are more likely to file a higher number of patents. They’re more likely to report a growth in market share. They’re more likely to report capturing a new market, and they’re likely to see higher returns on their R&D investments.
The research seems pretty clear. Diversity drives innovation.
But how? If you’ve heard this before and stopped to wonder what makes diversity such an effective driver of innovation, I have the answers you’re looking for. Diversity does not just magically lead to innovation. In truth, diversity brings with it some key conditions, and it’s the key conditions that lead to innovative solutions.
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Here are the four clear, innovation-driving benefits any organization can experience if it invests in diversity.
Perspective
Diverse teams and diverse organizations bring people with different perspectives to the table.
This is one of the many reasons diverse companies capture new markets and grow market share. They're bringing together diverse perspectives that can contribute ideas in ways that may be more reflective of existing and new customers.
When those differing perspectives are brought together, they're also more likely to innovate on all sorts of initiatives, not just those related to customer-facing products. "Cultural identity shapes how people see and know the world," researchers Robin Ely and David Thomas write in their paper, Cultural Diversity at Work. "Hence, cultural differences can be a source of insight and skill that can be brought to bear on an organization's core tasks."
Network
Many people may be familiar with the experience of having a network full of people who know all of the same people. There are limits to that kind of network. When you have a diverse team, people on that team are likely to have different networks, which increases to power of that team.
If the team is working on a task that requires expert knowledge or access to a certain group, the diversity of that team may allow for a greater likelihood that the team can get in touch with what they need. Someone on the team is likely to be able to pick up the phone and text or call someone who can help.
Preparation
When people believe they're entering a room with teammates who may not automatically understand their point of view, they are more likely to prepare. And a team that prepares more often is more likely to work more efficiently and productively.
In fact, a study conducted in 2008 found that “the presence of socially distinct newcomers…motivates behavior that can convert affective pains into cognitive gains.” The discomfort that comes about when working with people who are not like you leads to behaviors - like preparing more - that ultimately make your team more effective and more innovative.
“The presence of socially distinct newcomers…motivates behavior that can convert affective pains into cognitive gains.” - Is the Pain Worth the Gain? The Advantages and Liabilities of Agreeing With Socially Distinct Newcomers
Think about it. If you are put on a team with people who have different experiences and backgrounds, you know you might need to explain your ideas a little more. You might spend some time reading about the task at hand before your meeting. You might write some notes. Those behaviors are what lead to innovation.
Task Management
In 2012 two researchers observed the impact of female representation in senior management on an organization. Their study found that the presence of women on the senior staff led to a change in the way tasks were managed. “Surface-level diversity,” the paper reads, “can trigger expectations that informational differences may be present and legitimize the expression of divergent perspectives…”
When you're on a team with people who seem a lot like you, you are less likely to take the time to define and delegate tasks effectively. So, when you bring together a diverse group of people, you're more likely to be more deliberate and find the people on that team that can do those roles most effectively.
Diversity drives innovation, and it does that by bringing together people with different perspectives, drawing on a diverse team’s wider network, by creating an environment where team members prepare more, and by increasing the quality of task management.
“But remember, organizations cannot reap all of the benefits of diversity without also investing in inclusion and building an inclusive culture.”
There are so many benefits to investing in diversity, even beyond these four that I’ve just described. But remember, organizations cannot reap all of the benefits of diversity without also investing in inclusion and building an inclusive culture.
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