Diversity key to biz innovation: BCG

In both developing and developed economies, companies with above-average diversity on their leadership teams report a greater payoff from innovation and higher EBIT margins, according to the Boston Consulting Group (BCG) study ‘How Diverse Leadership Teams Boost Innovation.’ 

It said firms can start generating gains with relatively small changes in the makeup of their senior teams. A survey among over 1,700 companies in eight countries, including Austria, Brazil, China, France, India and the US, across diverse industries and companies, was conducted.   

“Diversity offers organisations a wide range of benefits, and our analysis shows that having a more heterogeneous team can deliver measurable gains in innovation and financial performance,” BCG partner and co-author of the study Rocio Lorenzo said. 

Multifaceted teams offer a robust range of perspectives and this allows organisations to formulate strategic solutions for efficiently accomplishing their goals and bringing new ideas to the table.  

Employees at companies in emerging markets (China, Brazil and India) reported greater progress over the past several years than those in developed markets. Firms invest that heavily in digital tech show an even stronger relationship between diversity and innovation.