Research: Delivering through diversity

The latest research from McKinsey & Company reinforces the link between diversity and company performance, and suggests how organisations can create better inclusion strategies.

Key findings:

• Companies in the top quartile for gender diversity on their executive teams were 21 per cent more likely to experience above-average profitability than companies in the fourth quartile.
• A positive correlation between gender diversity on executive teams and financial performance was found. Top-quartile companies on executive-level gender diversity worldwide had a 21 per cent likelihood of outperforming their fourth-quartile industry peers on profitability, and a 27 per cent likelihood of outperforming fourth-quartile peers on longer-term value creation.
• Companies with the most ethnically diverse executive teams - not only with respect to absolute representation but also of variety or mix of ethnicities - are 33 per cent more likely to outperform their peers on profitability.

The research draws on a data set of 1,000 companies covering 12 countries. Not only does it measure profitability but also longer-term value creation. It explores diversity at different levels of the organisation, considers a broad understanding of diversity and provides insight into best practices.