How Diversity and Inclusion Fuel Innovation

The focus on diversity and inclusion (DI) is more pronounced than ever before in our world today. While the awareness and impact of DI is profound, everything indicates we are just in the early stages of understanding its importance.

However, numerous studies have shown the positive impact of DI in organizations and all spheres of life. Therefore, organizations and people cannot afford to lose momentum in weaving both diversity and inclusion into every aspect of our world today. This article examines innovation through the lens of DI and how DI fuels innovation, leading to better financial results.

According to the National Association of Social Workers (NASW), the definition of DI goes beyond race and ethnicity. DI embodies the socio-cultural experiences of people, including but not limited to national origin, color, social class, religious and spiritual beliefs, immigration status, sexual orientation, gender identity or expression, age, marital status, and physical or mental health. There are two aspects of diversity and inclusion: inborn traits (such as age, gender etc.) and experiential traits (career, field of study, etc.). These traits are endowed in people and organizations.

Until recently, many of the benefits of adopting DI in innovation processes to drive better results were understudied and often misunderstood. However, there are now ongoing surveys and studies to help DI adoption efforts. For example, a

recent study published by PwC revealed that a meager 16% of corporate directors believed their organization scored “excellent” for employing a diverse workforce. Also, 15% of the corporate directors felt their organization was excellent in developing diverse executive talent. Further, 83% of directors surveyed believed their organization should be doing more to promote gender and racial diversity. These survey results show that there is an opportunity for organizations to unearth the full benefits of diversity and inclusion.

Within the purview of this unprecedented opportunity, adoption appetite, and times we live in, I wholeheartedly believe organizations should fully commit to

integrating DI into their value creation process. Organizations that fully embrace and integrate DI into their corporate culture set themselves up to challenge the status quo in thought patterns, ultimately building formidable and agile solutions. In the words of Sir Tim Berners-Lee (who invented the World Wide Web), “We need diversity of thought in the world to face the new challenges.” The words

of Sir Tim Berners-Lee accentuate that diversity of thought is the bedrock of transforming national economies and organizations into more sustainable and inclusive economic and social models capable of meeting current needs while ensuring adequate resources are available for future generations. The need for diversity of thought hinges on diversity and inclusion.

A proper inclusive and diverse workforce will incorporate collaborative efforts by multidisciplinary teams from diverse backgrounds, paving the way for diverse viewpoints and multiple interpretations for optimal problem solving. Thus, integrating DI will power an organizational value creation process with impactful

differentiation and an improved customer experience. Further, nurturing DI within corporate DNA may lead to competitive advantage and help unlock hidden value in current products, services, technologies, and assets.

The gains from embracing DI were evident in Forbes’s recent article titled “Diversity confirmed to boost innovation and financial results,” where it was posited that diverse teams are well-positioned to unlock innovation and growth. It further noted that diversity is nonlinear thinking and its adaptability fuels innovation. The findings of the article were based on BCG’s published report that proves diverse teams are more innovative than less diverse teams after surveying 1700 companies of varying sizes and in different locations.

Given the available qualitative and quantitative data, the importance of DI within an organization is not just media hype or a fad. Organizations that integrate

DI into their value creation process set themselves up to gain a competitive advantage. Therefore, looking into the future, I boldly declare that DI contributes to innovation and, ultimately, fuels the growth of all organizations and national economies, leading to optimal and sustainable global output. Hence, organizations that shy away from fully integrating DI into their value creation process will be left behind.

Author Bio: Anthony Kofi Benson, MBA, CIM, FCSI, FGAFM, MFP, CWM, CPM,

ChFM, is an adventurous, positive possibility thinker and lover of innovative ideas and execution. He is a visionary and transformational leader with over 15 years of global experience in creating bottom-line impact by leading investment portfolios, directing business development initiatives, and providing strategic roadmap of financial management across financial service sector. Anthony is currently pursuing a PhD at the International School of Management. He is passionate about transforming lives and businesses globally.

This article originally appeared in the September 2022 issue of Perspectives (Page 37).