How Diverse Teams Produce Better Outcomes: The Power of Different Perspectives

Diversity has become a buzzword in recent years, but it's not just a politically correct term. Research shows that diverse teams often outperform homogenous ones. Why? Here’s what we need to know.

Enhanced Problem-Solving

One of the main reasons why diverse teams are better than homogeneous ones is the manner in which they approach problem-solving. It is more likely that when you have people from different backgrounds, experiences and perspectives coming together, you will develop unique solutions to problems. According to McKinsey (2015), firms with more diversified executive teams had higher EBIT margins than their counterparts with less diversity.

When you have a team that is diverse, there are more chances for people thinking out of the box. They may lack similar cultural references or educational background or life experiences leading to fresh ideas and approaches to problem solving. If everyone on the team has a similar background, then they could be inclined to approaching problems similarly which limits creativity and stifles innovation.

A varied team can also provide several skills on the table such as strong budgeting skills from someone who grew up poor or deep knowledge of social dynamics for somebody coming from a privileged background. Therefore, two or more such individuals could result into fuller solutions towards one problem.

Do you want your problem-solvers to improve? Create a diverse team consisting of different individuals in terms of race, culture and social economic status.

Better Decision-Making

Another advantage of having a diverse team is that they make better decisions. There’s always risk of groupthink whenever there is homogeneity within any given group. Groupthink occurs when everyone on the team thinks the same way and is hesitant to express dissenting opinions. This can lead to poor decision-making processes.

Diversity within the membership ensures that there won’t be groupthink since each person comes with their own point of view. Hence, assumptions can be questioned while different viewpoints provided by other members create healthier debates among them for a better decision making. This is particularly important in situations that involve ethical decisions. In a study conducted by the Harvard Business Review, it was found that teams with more diverse members were likely to make more ethical decisions than those without these differences.

Do you require assistance in making better decisions? Create a diverse team which encourages good debates and includes people from different perspectives.

In summary, diversity brings many viewpoints, experiences and abilities to bear upon problems among teams working on them thus leading to improved outcomes. Their problem-solving and decision-making skills are superior, and they frequently develop innovative solutions. A different approach towards teamwork can be achieved by having a more diverse team in case you want your team to perform better.