Innovation, diversity, data: these buzzwords are at the forefront of global discussion today. They are the subject of formative reports, skilfully weaved into the rhetoric of world leaders, and bandied around corporate boardrooms. But without a solid understanding of these terms and their invaluable relationship to success, they remain just as they are; buzzwords. When we look more closely, we can begin to understand the intricate and nuanced relationships between these concepts, and the power they have when they coexist in a workplace.

A report by the Harvard Business Review last year revealed the indisputable correlation between innovation and financial success. Businesses that innovate are able to position themselves ahead of their competition, grow far more rapidly, and tap into emerging markets.

In saying this, businesses need to be aware of the fact that there is no cookie-cutter model of innovation. A business does not need to invent ground-breaking technology in order to be deemed innovative. Nor is innovation always the company that has a ball pit, an office dog, regular meditation sessions or walls covered from floor to ceiling with Post-It notes. Innovation can be as simple as a shift in thinking.

In an article regarding the rise of the ‘intrapreneur’, the Harvard Business Review stated that in order for innovation to be successful, it must be a company-wide endeavour, with systems in place to ensure that transformative ideas are nurtured and valued. Statistically, innovation drives profit. And, you may be surprised to learn, diversity drives innovation.

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“Companies have come to the realisation that in this time of disruption and change, the ‘traditional’ perspective on governance is no longer sufficient. New voices are needed - and many of those are women.”

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- Jill Ader, Chairwoman, Egon Zehnder.

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Realistically; it makes sense. Diversity welcomes individuality, enriches discussion and celebrates difference. This consideration of worldviews creates a space in which members of a team can safely express their ideas, in turn cultivating a culture of innovative thinking and eliminating the risk of stagnation. The data is irrefutable; companies that have more diverse management teams have 19% higher revenue than their competitors thanks to their innovative practices.

A study by the Harvard Business Review analysed survey data from more than 1700 companies across 8 countries to reveal a beneficial correlation between innovation and gender diversity in the workplace. Specifically, they found that the most diverse companies (as measured with respect to gender, age, career path and education), were the most innovative and the most profitable.

But what does gender diversity look like? Well, it can be easy to fall into the trap of thinking that achieving gender diversity is as simple as having a female CEO. In reality however, this mentality can be damaging and tokenistic. A study by BCG last year revealed that gender diversity occurs primarily at the bottom line for companies, with the top jobs remaining dominated by men. In addition, 91% of companies in the study said they had a gender diversity program, yet only 27% of women said they had actually benefited from it.

Egon Zehnder’s 2018 Global Board Diversity Tracker recommends three as its ‘magic number’ of women on a board. According to the report, it takes at least three women on a board for the full effects of gender diversity to incite positive change in the company. While including one woman on a board is certainly a move in the right direction, having three has been shown to increase return on equity and change the dynamic of the workplace so that shared insights are valued and healthy discussion is encouraged.

The evidence is clear; innovation, diversity and data are more than just buzzwords. Innovation is essential to company growth. Diversity is essential to innovation. And data is essential to understanding diversity. Knowing this, we can work towards an inclusive future that nurtures and celebrates gender diversity in the workplace, not to fill a quota, but to make a real difference.

[Cover Photo by Lukas Blazek from Unsplash]

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