Diversity — the key to creativity
A number of studies have impressively demonstrated the positive effect of demographically mixed managements on a company’s success. No wonder, then, that diversity has become a hot topic in the business world. But limiting diversity to gender and origin would be rather clumsy. Only by taking all dimensions of diversity into account will companies make full use of its potential.
As explained in a recent blog entitled “Creativity for problem solving or as an end in itself”, creativity is the key to corporate success. It enables us to stay focused, interested and agile in a volatile, uncertain, complex and ambiguous world (in short: VUCA). Being an extremely sensitive thing, however, creativity can only develop its full strength in an environment fostering it. A major ingredient of creative thinking is its variety.
Studies prove its effectiveness.
Large consulting firms such as the Boston Consulting Group, Price Waterhouse Coopers or McKinsey, among many others, have impressively demonstrated in studies the positive impact of diversity in managements. It is reported that companies with gender- and origin-mixed boards and managements achieve better growth rates and higher profit margins than their peers — and tend to be more likely to innovate. Similar findings are reported in the study “Women in Business and Management” conducted by the International Labor Office in Geneva. An inclusive corporate culture and policy, the study found, is more likely to increase profits, productivity, reputation, employer attractiveness and innovation levels.
Diversity — when nobody even talked about it.
The insight that diversity has a huge potential isn’t new at all. Already back in the 1980s, a Basel-based chemical company introduced so-called quality circles. Inspired by the Japanese Kaizen concept, the company initiated working groups. Volunteers from different organisational units teamed up in these groups. Guided by one member of the team team — and not by a “boss” — researchers, shift workers and process engineers discussed where there was potential for improving the status quo. Within a short time, the chemical company was able to achieve considerable progress in quality and occupational safety, along with financial benefits and a much better working atmosphere.
Beyond origin and gender.
What the Basel-based chemical company and its quality circles were able to benefit from, is likely to be the reason for the boom of numerous companies in Japan and South Korea in the 1980s and 1990s. Diversity is probably also a key ingredient of the Silicon Valley start-ups’ success. Apart from gender and origin — something that is called for every day — diversity also includes a variety of ages, functions and educations. No matter what someone’s personal background, as long as she or he fully engaged with the vision of the project, everything was fine.
Mental shortcuts miss the mark.
The reason mixed teams are more likely to be successful depends on how our brain works. In order to cope with the tens of millions of information and decisions our central computer has to process every day, it tends to take shortcuts. When solving a problem — which is basically every decision we need to make — it searches existing information that is related to the problem at hand. For example, when a marketing manager is trying to gain market shares, the brain immediately picks up on things like price reductions, advertising campaigns, influencers and so forth.
More of the same doesn’t make a difference.
Assuming that the marketing manager thinks in a team-oriented way and teams up with a colleague and another colleague from the same department, the odds of finding a slightly different solution are likely to be better. But only a tiny bit. The participants may consider their discussion to be very fruitful and feel themselves to be understood. However, in the sense of “finding a new approach to gain market share” the group isn’t effective. All team members share similar knowledge, similar experiences and similar mental images. They are also united by a tacit understanding of how solutions in marketing are supposed to be. Logically, therefore, the trains of thought in the group hardly differ. Unfortunately, the so-called confirmation bias hinders the group from being aware of this trap. They all share the same mindset, causing confirmation rather than contradiction. A disaster if a new, unconventional solution is needed to solve a problem.
More than demographic mix.
If creativity is to be used to solve problems in a new way, there is no alternative to heterogeneous teams. But, diversity needs to go beyond demographic parameters such as gender, age and origin. Diversity only becomes truly enriching when the differences within the group are of a psychological nature. This “diversity at the deep level” incorporates personality, values and skills, leading to much more diverse results compared to teams limited to a demographic mix.
Breaking down silos and disbanding hierarchies.
In addition to all the above-mentioned aspects, diversity in teams becomes truly effective by focusing on so-called task-related diversity. This means — as the Basel-based chemical company used to do back in the old days — connecting people in different functions and with various educational backgrounds into working groups. By breaking down organisational silos and overriding hierarchical levels, discussions arise where facts are examined from the most diverse perspectives and where information is interpreted in many different ways.
Friction leads to better results.
The perspective of an outsider is also very powerful. Someone from the outside is completely free from distortions caused by internal customs or unwritten industry codes. But be careful: integrating team members from outside your own organisation is inconvenient. They ask annoying questions, doubt familiar things and don’t give a damn about things that are like they always have been and have proven their worth. However, if a completely new, unconventional — i.e. innovative — solution is sought, the collaboration with outsiders is a terrific win.
