Diversity Wins: How Inclusion Matters | McKinsey & Co.

Workforce Trends

This 50+ page survey report on Inclusion and Diversity (I&D) by McKinsey reaffirms the strong business case for both gender diversity and ethnic and cultural diversity in corporate leadership—and shows that this business case continues to strengthen. Some starting insights include 1) Companies in the top quartile of gender diversity on executive teams were 25 percent more likely to experience above-average profitability than peer companies in the fourth quartile. This number was up from 21 percent in 2017 and 15 percent in 2014. 2) Companies with more than 30 percent of women on their executive teams are significantly more likely to outperform those with between 10 and 30 percent women. And while the report contains various statistics on the impact of I&D, its value is found in the actions that organizations are implementing to drive I&D, including overviews from Citigroup, Pentair, Target Corporation, and Lockheed Martin. Before looking at the practices, I recommend that organizations use the framework beginning on page 26 to determine which of the five cohort types best describe their organization’s approach to I&D. 1) Diversity Leaders, 2)Fast Movers, 3) Moderate Movers, 4) Resting on Laurels, 5) Laggards. Once organizations determine the cohort to which they belong, they can reference page 45 for suggestions and actions that are most relevant to that cohort type. This report is replete with insights and will take time to comb through all of the findings.

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