Want to generate inventive new ideas that can win in the market? Build management teams comprising people with the widest possible range of backgrounds and perspectives.
A new study from Boston Consulting Group quantifies the benefit of diversity on innovation and financial performance.
The report points to the fact that people with different backgrounds and experiences often see the problem in new ways. Specific findings included:
- Companies with above average diversity scores averaged 45% income from products and services launched in the past three years. Those with below-average scores averaged just 26% innovation income.
- Margins for the above-average group were 9 percentage points higher than the low diversity group.
- The biggest payoff came from diversity in national origin, industry backgrounds, gender and career path. Age and educational focus showed impact too, but to a lesser extent.
There's lot's more to read here, so if innovation is important to you (and it should be), take the time to read the whole thing.