Richard Branson: The Power of Diversity
June 21, 2023
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In the realm of business, fostering an environment that values diversity is not just about ticking a box for corporate social responsibility. It’s about driving innovation, enhancing problem-solving, and ultimately, achieving business success. This blog post is inspired by a YouTube video featuring Rocío Lorenzo, a management consultant, who shares her research and insights on the impact of diversity on innovation.
Diversity in the workplace is about bringing together individuals with different backgrounds, experiences, and perspectives to create a richer mix of ideas. As Lorenzo points out, “You get better everything if you have diverse groups.” This includes better innovation, better decision-making, and better problem-solving.
Lorenzo and her team conducted a study with the Technical University of Munich, surveying 171 companies to find out if diverse companies are more innovative. They measured innovation by looking at the share of revenues companies made from new products and services in the last three years. The results were clear: more diverse companies are more innovative.
However, having a few diverse individuals in a company is not enough. Lorenzo’s data shows that for gender diversity to have an impact on innovation, you need to have more than 20 percent women in leadership. Only then do you see a clear jump in innovation revenue to above-average levels.
Businesses play a crucial role in promoting diversity. They can create inclusive work environments, implement fair hiring practices, and support initiatives that promote diversity in society. Companies like SAP, for example, have set measurable targets for increasing the number of women in leadership and have achieved their goals.
The impact of diversity on innovation is undeniable. It not only creates a more inclusive and harmonious workplace but also drives business success. As Rocío Lorenzo concludes, “By embracing diversity, by embracing diverse talent, we are providing true opportunity for everyone.”
By embracing diversity, by embracing diverse talent, we are providing true opportunity for everyone
Rocio Lorenzo
CCO at Liberty Latin America
By embracing diversity, by embracing diverse talent, we are providing true opportunity for everyone
Rocio Lorenzo
CCO at Liberty Latin America
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