More social diversity means stronger performance

I was recently interviewed by a French business journal and these are some of the questions I was asked and the answers I gave:

Do large companies in Europe and in the United States manage diversity in the same way?

Ian Dodds: Not really. It is approached differently. In the United States, the concept arose out of the Civil Rights Movement. In Europe, on the other hand, diversity was first confronted from the standpoint of cultural differences, with companies seeking to understand their impact. A good example is the appearance of the concept of diversity at ICI [the British industrial group for which I used to work]. In the late 1970s, company directors wanted to increase top management's ability to stimulate strategic and operational synergies between different European locations. A study group was created, and it concluded that increasing the presence of women and ethnic minorities within company management would facilitate the creation of these synergies.

Many multinational corporations in Europe and Japan followed a similar path in the late 1980s. Why was this?

Ian Dodds: Above all, to better understand their markets and the needs of their clients. Businesses had to adapt to globalisation, to learn how to negotiate with clients and suppliers from other cultures, and to develop partnerships across the globe. Diversity within management rapidly appeared to them to be a good means of achieving this. There is also a significant human resources dimension: businesses quickly saw increasing diversity as a way of attracting the best talent, and of managing it efficiently.

Concretely, what forms can diversity management take in businesses today?

Ian Dodds: Certain companies place the emphasis on more innovative problem solving. They have found that diverse teams provide different, more creative and more durable answers to certain problems, such as new products, customer relations or manufacturing processes. Other companies form specific working groups relating to women, ethnic minorities, gays and lesbians and other socially excluded groups. Their role is to advise the company on its policy towards minorities, and to help it find products and services that will help attract them as customers. Still, other companies work to advance different categories of employees internally. For example, a woman with a high-level position sends a strong signal to other highly qualified women, motivating and inspiring them to commit themselves to the company.

Are there examples of large companies with particularly advanced practices that could serve as a model in this area?

Ian Dodds: Many examples could be cited. The management of diversity in many companies is becoming more and more sophisticated. They have understood that this presents a tremendous economic opportunity.

Related article:

·      Cross-cultural competence raises productivity and adds commercial value

·      Profiting from diversity

·      Getting quick wins from diversity and inclusion (part 1)

·      Getting quick wins from diversity and inclusion (part 2)

·      Gaining the top and bottom line improvements offered from effective diversity policies

·      To avoid performance loss, make managers culturally aware when assessing diverse employees