Fostering Innovation through Diversity

The latest survey by Forbes Insight “Global Diversity and Inclusion – Fostering Innovation through a Diverse Workforce” proved once more, that Diversity is a key driver of innovation and crucial for global success. 85 percent of the about 320 surveyed executives from the Americas, Asia-Pacific and EMEA agreed that a diverse and inclusive workforce is crucial to encourage different perspectives and ideas that drive innovation. Furthermore, they see diversity as essential for attracting and retaining top talents in the global competition for the best employees. The strategic focus of diversity, however, widely differs across the regions. While the Asian-Pacific area has a significantly higher prioritisation on Nationality and Age Diversity, EMEA companies show an above average focus on Disability. Nevertheless, gender diversity remains the most prioritised topic in all of the regions. Furthermore, there are some differences in the inclusion of regional differences in global strategies. About one third of the companies stated that their global strategy only allows minimal regional modification, whereas the strategy in half of the companies can be adjusted in terms of different approaches and programs in various regions to address regional needs as well as cultural differences.
The priorities and goals in the diversity strategies in most of the companies lie clearly in the retention and development of diverse talent, the ensuring inclusiveness in the work culture as well as the development of a robust pipeline or high-potential diverse talent. According to the participating companies, the current prioritisation in the corporate world will hardly change over the next three years. In most cases, the CEO, the CHRO or the Board of Directors are ultimately held accountable for the success of the diversity and inclusion programmes, in addition to an internal board or committee, which oversees the D&I strategies and initiatives at the majority of the companies.
Despite the clear statement that diversity fosters innovation and competitiveness, there are still existing barriers for more diversity progress. Although a lot of companies stated that they are advancing in regards of gender and ethnic diversity, they also see a lack of progress in terms of disability, age and sexual orientation. Concrete barriers are mainly seen in an adequate middle management execution of diversity programs and in budget issues which prevent a more consistent implementation. The report also quotes common excuses including a current focus on the survival in the current economic situation and the challenge to establish a clear connection between diversity and business priorities.
Unfortunately, the survey does not provide empirically robust evidence for the linkage of D&I and innovation capacity. On the other hand, this lever has never been disputed by smart managers while it has been supported by other scientific research presented in the International Business Case Report (IBCR).