Reading 15 - corey-marchand/data-structures-and-algorithms GitHub Wiki

• Diverse teams are smarter and more creative

Study after study in fields like organizational science, psychology and education indicate that diversity offers significant benefits for teams focused on creativity and innovation. According to Scott E. Page, professor of complex systems, political science and economics at the University of Michigan: "Diverse groups of people bring to organizations more and different ways of seeing a problem and, thus, faster/better ways of solving it."

At Intel, CEO Brian Krzanich has said: "A fully diverse and inclusive workplace is fundamental to our ability to innovate and deliver business results." A number of leaders we’ve spoken to are motivated by this research in their efforts to build the strongest, most innovative teams.

*Diverse companies perform better

Given that diverse teams are smarter and more creative than homogeneous ones, it is unsurprising that a wealth of research shows a strong correlation between diverse organizations and positive financial outcomes. In a 2011 study of diversity in the top firms in Standard & Poor's Composite 1500 list, researchers found “female representation in top management leads to an increase of $42 million in firm value.”

And in a 2003 study looking at 177 banks across the U.S., researchers found that for banks focused on innovation, racial diversity was clearly tied to better financial performance. Research also links gender representation at the executive and board level with better company performance.

We’ve spoken with a few leaders that are hesitant to rely on the reasons above because, as they point out, some of the most successful and innovative companies are not very diverse. Just as the example of a smoker who lives to be 100 does not disprove that smoking is bad for one’s health, anecdotes of companies that have succeeded in spite of homogeneity are not a counterpoint to the overwhelming evidence that diversity makes teams smarter and is linked to positive business outcomes.

• It’s the right thing to do

While diversity and inclusion efforts are most often driven by business rationales, we’ve spoken with a few CEOs who are motivated primarily by a belief that cultivating an inclusive tech community is simply the right thing to do.

Some of these leaders have noted that the tech industry is creating vast opportunity and that by excluding certain groups from that opportunity the industry is perpetuating and exacerbating existing social inequality. Others have emphasized a concern that by failing to involve particular communities in the process of creating of new technology, we as a society lose out on the benefits of those community members’ ideas.

For company leaders beginning to consider diversity and inclusion, understanding these rationales and identifying one that resonates for you and your organization can be a helpful first step.

But it’s only a first step. After deciding that diversity matters and articulating its importance, leaders must create a strategy for building a more diverse, inclusive company and an accountability plan to ensure that strategy is effective.