By Mike Davis
Originally published: April 12, 2017
In my previous March post for Pro Bono News, I discussed how effective Australian not-for-profit leaders are resourceful, inclusive and empowering. A key component of inclusiveness involves promoting diversity in teams and building diverse leadership teams.
Diversity improves performance
High performing teams are teams with well-balanced gender diversity as well as a good mix of ethnic and racial diversity.
The evidence supports this conclusion with a recent McKinsey report showing that organisations in the top quartile for ethnic and racial diversity in management are 35 per cent more likely to produce financial returns above the industry mean. Similarly, organisations in the top quartile for gender diversity were 15 per cent more likely to have returns above the industry mean.