information for transformational people

Diversity 246How diversity makes us smarter 


From an article in Scientific American

The first thing to acknowledge about diversity is that it can be difficult. Research has shown that social diversity in a group can cause discomfort, rougher interactions, a lack of trust, greater perceived interpersonal conflict, lower communication, less cohesion, more concern about disrespect, and other problems. It is therefore reasonable to ask what good diversity does us?

The short answer is a great deal!

Diversity of expertise confers benefits that are obvious—you would not think of building a new car without engineers, designers and quality-control experts. Social diversity is also beneficial. If you want to build teams or organizations capable of innovating, you need diversity. Diversity enhances creativity. It encourages the search for novel information and perspectives, leading to better decision making and problem solving. Diversity can improve the bottom line of companies and lead to unfettered discoveries and breakthrough innovations. Even simply being exposed to diversity can change the way you think. This is the conclusion from decades of research from organizational scientists, psychologists, sociologists, economists and demographers.

The key to understanding the positive influence of diversity is the concept of informational diversity. When people are brought together to solve problems in groups, they bring different information, opinions and perspectives. This makes obvious sense when we talk about diversity of disciplinary backgrounds—think again of the interdisciplinary team building a car. The same logic applies to social diversity. People who are different from one another in race, gender and other dimensions bring unique information and experiences to bear on the task at hand.

Research on large, innovative organizations has shown repeatedly that this is the case. For example, business professors Cristian Deszö of the University of Maryland and David Ross of Columbia University studied the effect of gender diversity on the top firms in Standard & Poor's Composite 1500 list, a group designed to reflect the overall U.S. equity market. First, they examined the size and gender composition of firms' top management teams from 1992 through 2006. Then they looked at the financial performance of the firms. In their words, they found that, on average, “female representation in top management leads to an increase of $42 million in firm value.” They also measured the firms' “innovation intensity” through the ratio of research and development expenses to assets. They found that companies that prioritized innovation saw greater financial gains when women were part of the top leadership ranks.

Racial diversity can deliver the same kinds of benefits. In a study conducted in 2003, Orlando Richard, a professor of management at the University of Texas at Dallas, and his colleagues surveyed executives at 177 national banks in the U.S., then put together a database comparing financial performance, racial diversity and the emphasis the bank presidents put on innovation. For innovation-focused banks, increases in racial diversity were clearly related to enhanced financial performance.

Evidence for the benefits of diversity can be found well beyond the U.S. In August 2012 a team of researchers at the Credit Suisse Research Institute issued a report in which they examined 2,360 companies globally from 2005 to 2011, looking for a relationship between gender diversity on corporate management boards and financial performance. Sure enough, the researchers found that companies with one or more women on the board delivered higher average returns on equity, lower gearing (that is, net debt to equity) and better average growth.

In 2004 Anthony Lising Antonio, a professor at the Stanford Graduate School of Education, collaborated with five colleagues from the University of California, Los Angeles, and other institutions to examine the influence of racial and opinion composition in small group discussions. More than 350 students from three universities participated in the study. Group members were asked to discuss a prevailing social issue (either child labour practices or the death penalty) for 15 minutes. The researchers wrote dissenting opinions and had both black and white members deliver them to their groups. When a black person presented a dissenting perspective to a group of whites, the perspective was perceived as more novel and led to broader thinking and consideration of alternatives than when a white person introduced that same dissenting perspective. The lesson: when we hear dissent from someone who is different from us, it provokes more thought than when it comes from someone who looks like us. When disagreement comes from a socially different person, we are prompted to work harder.

In 2014, Richard Freeman, an economics professor at Harvard University and director of the Science and Engineering Workforce Project at the National Bureau of Economic Research, along with Wei Huang, a Harvard economics Ph.D. candidate, examined the ethnic identity of the authors of 1.5 million scientific papers written between 1985 and 2008. They found that papers written by diverse groups receive more citations and have higher impact factors than papers written by people from the same ethnic group.

Diversity is not only about bringing different perspectives to the table. Simply adding social diversity to a group makes people believe that differences of perspective might exist among them and that belief makes people change their behaviour. Members of a homogeneous group rest somewhat assured that they will agree with one another; that they will understand one another's perspectives and beliefs; that they will be able to easily come to a consensus. But when members of a group notice that they are socially different from one another, they change their expectations. They anticipate differences of opinion and perspective. They assume they will need to work harder to come to a consensus. This logic helps to explain both the upside and the downside of social diversity: people work harder in diverse environments both cognitively and socially. They might not like it, but the hard work can lead to better outcomes.

Read the full article here.

With such benefits, here is the question; how diverse is your church and your church leadership? Gender, ethnicity, wealthy, poor, young and old? A look at the leadership team on your church website would give you an indication. Are you missing out on unique perspectives and innovative approaches?

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From an article in Scientific American, 30/01/2017

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