The document discusses several studies that have found a relationship between increased diversity and innovation, but notes that diversity alone does not guarantee better performance and can result in negative outcomes without careful management. It then summarizes various frameworks for understanding different types of diversity and the leadership behaviors needed to promote an inclusive culture where diverse voices feel empowered to contribute new ideas. The overall message is that diversity of thinking driven by inclusion is critical for fueling innovation when different perspectives are brought to problem solving.

1. Publications by
(Roberge et al., 2010; Forbes et al., 2011; Hewlett et al., 2013;
Boston Consulting Group, 2014; Bourke et al., 2015; and Rob,
2015)
Prepared Presentation by
Khurram Zafar Awan under supervision of DR. Basharat
Naeem
COMSAT Univesity Islamabd, Lahore
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2. Role of Diversity in
Innovation
 There are many opinion papers and studies pointing
to a relationship between increased diversity and
innovation. But what’s the nature of that relationship,
and how does it work? Diversity on its own, without
careful management and leadership, can result in
negative rather than positive disruption.
 Roberge & Dick (2010) found that diversity does not
automatically lead to better performance. Without
‘diversity intelligent’ inclusive leadership, diverse
groups can become polarised and marginalised.
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3. Role of Diversity in
Innovation
 Roberge & Dick (2010) distinguish between surface
or visible diversity and deep diversity. Visible
differences include reasonably obvious things like
race/ethnicity, gender, age, and physical disability.
(Some may argue that even these characteristics are
not necessarily obvious). Deep diversity might
include more subtle attributes like personality,
attitudes, values and knowledge sets.
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4. Role of Diversity in
Innovation
 A Forbes (2011) study identified barriers to
implementing a diversity and inclusion strategy as
being: failure of middle management to execute
strategy; budgetary issues; being too focused on
survival in the current economy; and a failure to
understand the connection between diversity and
business drivers. This is about what we shouldn’t do.
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5. Role of Diversity in
Innovation
 Hewlett, Marshall & Sherbin (2013) characterize
diversity in a slightly different way, into inherent and
acquired diversity. Inherent diversity includes traits
you were born with, such as ethnicity and gender,
while acquired diversity is about what you gain from
experience. They give a couple of examples:
working in another country usually gives you cultural
intelligence, while experience of selling to females
might give you insights into gender.
 “Inherent diversity, however, is only half of the
equation. Leaders also need acquired diversity to
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6. Role of Diversity in
Innovation
 Hewlett et al (2013) identified six leadership behaviours
to drive innovation through diversity. Leaders need to
1. make sure everyone has a voice and is heard;
2. create a climate of psychological safety so people are
willing to share ideas;
3. give team members decision-making authority;
4. share the credit;
5. give useful feedback;
6. and listen to and implement team feedback.
 Other success factors include the development of
empathy or the ability to take on the perspective of
others. This means not just the appearance of taking on
board other people’s ideas, but actually integrating them.
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7. Role of Diversity in
Innovation
 A team with a member who shares a client’s ethnicity
is 152% more likely to understand that client than a
non-diverse team (Hewlett et al 2013).
 Leaders who give diverse voices airtime are nearly
twice as likely as others to unleash value-driving
insights, and employees in a ‘speak-up’ culture are
3.5 times as likely to contribute their full innovative
potential” (Hewlett et al 2013).
 In a 2015 global Boston Consulting Group study of
1500 executives, 75% claimed that innovation was
one of their company’s top 3 priorities. However 83%
said their company’s innovation capability was
average or weak.
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8. Role of Diversity in
Innovation
 2015 Deloitte study found that idea generation was a critical
factor that set ‘breakthrough’ innovators apart from the rest.
And what is essential for idea generation? Diverse thinking
and experience.
Bringing this back to the three foundational shifts in the context
of:
1. Diverse talent – when employees feel highly included, they
are more engaged in their work, more likely to stay,
advocate and go the extra mile for their employer.
2. Diverse ideas – when employees feel highly included, they
are more willing to speak up with new or alternative views,
enhancing decision making.
3. Diverse markets – when these ideas come from individuals
with different backgrounds and life experiences (e.g.
culture), new opportunities and greater insights are
identified in new markets or untapped customer segments
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9. Role of Diversity in
Innovation
 In all these cases, a leader casts a powerful shadow
on an organisation’s culture. When employees see
and experience leaders behaving inclusively, they
too will adapt their own behaviours and actions to
the benefit of others, including customers.
THE SIX SIGNATURE TRAITS OF AN INCLUSIVE
LEADER
 Deloitte (2015) research has pinpointed the six
signature traits (Committed, Courageous,
Cognisant, Curious , Culturally intelligent, and
Collaboration) of inclusive leadership that will enable
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10. Role of Diversity in
Innovation
 Deloitte (2015) conducted interviews with best-in-
class inclusive leaders reveal the details of each of
these traits in terms of what such leaders think about
and do.
 Draw conclusion that they think deeply about their
commitment to diversity and inclusion and expend
time and energy towards being inclusive. Why?
Because staying the course is hard.
 They demonstrate courage in their willingness to
challenge the status quo, and humility when talking
about their own limitations.
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11. Role of Diversity in
Innovation
 They are curious about others’ views and seek to
understand context, knowing they don’t have all the
answers.
 They are highly cognisant of their own biases and
actively work on mitigation strategies (with respect to
self, others and systems) to ensure they bring out the
best in diverse others.
 They are open to learning experiences that enable more
effective cross-cultural interactions to take place, and
are confident in doing so.
 Finally, they focus on creating collaborative teams and
networks, so that diversity of thinking can become a
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12. Role of Diversity in
Innovation
 Rob Balmer (2015) argued that the point here is that
diversity is more complex than we might think. But it’s
also simpler than we think, because in the end the
benefit of all varieties of diversity is the multiple
perspectives that all these attributes bring to the
workplace and to innovation. Diversity of thinking is what
it’s all about when we’re talking innovation.
 Diverse work groups will have a broader range of
knowledge, skills and viewpoints to bring to the table.
 Multi-disciplinary teams, for example can make a huge
contribution in collaborative solving whole of systems
issues like environmental sustainability.
 A culturally or demographically diverse team brings you
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13. Role of Diversity in
Innovation
 Rob Balmer (2015) there should develop inclusive
leadership. Most companies will have a diversity
strategy: understanding how to make it work is the
challenge, and making it work starts at the top.
Senior managers need to acquire understanding of
diversity and their role in driving strategy.
 No prizes for guessing the answer here: there’s a
strong business case for diversity as competitive
advantage, with increased innovation, market
alignment and growth, and high levels of team
performance. And we haven’t even got started on the
benefits of diversity in terms of attraction, retention
and organisational culture.
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14. References
 Roberge, M. and van Dick, R. (2010) Recognizing the benefits of diversity: When and
how does diversity increase group performance? Human Resource Management
Review. 20: 295 – 308.
 Forbes (2011) Fostering innovation through a diverse workforce. Forbes Insights.
http://www.forbes.com / forbesinsights/ innovation_diversity/
 Hewlett, S., Marshall, M., and Sherbin, L. (2013) How diversity can drive innovation.
Harvard Business Review. December 2013.
 Boston Consulting Group (2014) The most innovative companies – 2014.
https://www.bcgperspectives.com/content/articles/innovation_growth_digital_econom
y_ innovation_in_2014/
 Bourke, J. and Dillon, B. (2015) Fast forward: Leading in a brave new world of
diversity. Chartered Accountants ANZ with Deloitte. http:// www2.deloitte.com/content
/dam/ Deloitte/nz/Documents/human-capital/deloitte-au-hc-fast-forward-diversity-
290515.pdf
 Rob Balmer (2015). Executive Central Diversity and Innovation Programs contact:
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