Delivering through Diversity
Since Why Diversity Matters was published in 2015, we have seen growing awareness of the business case for inclusion and diversity. Widely cited, the report has influenced inclusion and diversity policy-setting and transformation efforts by corporations, the public sector, and third sector organizations worldwide. While social justice, legal compliance, or maintaining industry-standard employee environment protocols is typically the initial impetus behind these efforts, many successful companies regard inclusion and diversity as a source of competitive advantage, and specifically as a key enabler of growth.
Yet progress has been slow. The 346 companies in our 2015 research (mostly based in the US and UK) have increased average gender representation on their executive teams only 2 percentage points, to 14%, and ethnic and cultural diversity by 1 percentage point, to 13%. What’s more, many companies are still uncertain as to how they can most effectively use inclusion and diversity to support their growth and value creation goals.
Delivering through Diversity both tackles the business case and provides a perspective on how to take action on inclusion and diversity to impact growth and business performance. This latest research reaffirms the global relevance of the correlation between diversity (defined here as a greater proportion of women and ethnically/culturally diverse individuals) in the leadership of large companies and financial outperformance. The research is based on a larger dataset of over 1,000 companies covering 12 countries and using two measures of financial performance – profitability (measured as average EBIT margin) and value creation (measured as economic profit margin). As importantly, we studied the inclusion and diversity efforts of 17 companies representing all major regions and multiple industries to have a more granular view of where in the organisation diversity matters most, and crucially, how leading companies have successfully harnessed the potential of inclusion and diversity to help meet their growth objectives.
Click here to read this report from McKinsey and Company
Click here to read Why Diversity Matters (2015)