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Harvardbusinessreview

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Most managers accept that employers benefit from a diverse workforce, but the notion can be hard to prove or quantify, especially when it comes to measuring how diversity affects a firm’s ability to innovate. But new research provides compelling evidence that diversity unlocks innovation and drives market growth—a finding that should intensify efforts to ensure that executive ranks both embody and embrace the power of differences. In this research, which rests on a nationally representative survey of 1,800 professionals, 40 case studies, and numerous focus groups and interviews, we scrutinized two kinds of diversity: inherent and acquired. Inherent diversity involves traits you are born with, such as gender, harvardbusinessreview, and sexual orientation. By correlating diversity in leadership with market outcomes as reported by respondents, we learned that companies with 2-D diversity out-innovate and out-perform others. When minorities form a critical mass and leaders value differences, all employees can find senior people to go to bat for compelling ideas and can persuade those in charge of budgets to deploy resources to develop those ideas. This costs their companies crucial market opportunities, because inherently diverse contributors understand the unmet needs in under-leveraged markets.

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Inherent diversity, however, is only half of the equation. Leaders also need acquired diversity to establish a culture in which all employees feel free to contribute ideas. These findings constitute a powerful new dimension of the business case for diversity. A version of this article appeared in the December 2013 issue of Harvard Business Review. Melinda Marshall is executive vice president and director of publications at CTI, where she drives the Center’s research on innovation, sponsorship, and leadership.

Laura Sherbin, PhD, is co-president of the Center for Talent Innovation. She is an economist who specializes in the creation of competitive advantage through inclusion and diversity. Harvard Business Publishing is an affiliate of Harvard Business School. Results from a study of MBAs. It’s an idea that needs to be a part of the future of work. Five strategies for getting out of your head.

Even walking to and from meetings together can build rapport. Brexit serves as a useful case study. Remind them why they belong in the job. It’s especially important for working parents.

Quick, practical management advice to help you do your job better, delivered weekdays. Links to all the digital articles published in the last 24 hours. Must-reads from our most recent articles on leadership and managing people, delivered once a month. The editor of Harvard Business Review picks highlights from each new issue of the magazine. Harvard Business Publishing is an affiliate of Harvard Business School.

Despite the difficulty of this issue, it must be confronted, as it is simultaneously rooted in and influential towards the moral foundations and political ideals of America.
This is a scene from the book Divergent, by Veronica Roth.

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