In the dynamic landscape of today's global economy, the concept of innovation has become more than...
In today's rapidly evolving world, we know innovation is the key to business success. It is a well-established fact that diverse teams drive innovation in remarkable ways. By combining different perspectives, backgrounds and experiences, groundbreaking solutions and creativity can emerge. In this article, Zaakirah and Tim explore diversity and its role in innovation and the workplace.
What is Cultural Diversity?
Cultural diversity fosters the exploration of different cultural contexts, norms, and values. These bring different paradigms for thinking. This leads to creative ideas that resonate with a broader, global audience and use a wider set of problem-solving approaches. Cross-cultural teams can develop products, services, and strategies that are inclusive and appealing to a wide range of customers. There is greater market insight, superior problem-solving and a deeper appreciation of local consumer needs.
A key example of diversity in innovation is the return and increase of female founder businesses. Zarina Bazoeva is the female founder and CEO of Neocrete. She develops zero-carbon concrete and focuses on leveraging NZ resources and capabilities. Her innovative company is helping to reduce carbon emissions and create a more sustainable measure to rebuild infrastructures.
Diversity in the Workplace
According to a Forbes article, having a diverse workforce can also mean increased employee morale and a 19% higher innovation revenue. Ethnically diverse companies are 35% more likely to perform well, while gender-diverse companies are 15% more likely. Diversity will drive innovation and attract other bright employees.
In a homogenous group, there's a risk of groupthink where members conform to a single, popular viewpoint, mainly to ‘fit in’. Diverse teams, on the other hand, are less susceptible to this phenomenon, as they naturally introduce various perspectives and alternative solutions due to a different background or worldview. This leads to more creative solutions and new ways to address market gaps.
Without diversity, it is difficult to benefit from wider perspectives to create robust business solutions. Take Deloitte for example. As one of the Big 4 companies and a global leader in a variety of consulting areas, they have a strong diversity showing, with 46.8% ethnic diversity in the USA and a 43% increase in such professionals since 2020. They utilise their diversity to enable innovation investments to create services that reduce carbon footprints and help create a low-carbon economy.
Evidently, diversity is the key to innovation.
