McKinsey's January 2018 report "Delivering Through Diversity", Re-examined the business case for inclusion and diversity, and found:
The relationship between diversity and business performance persists.
The statistically significant correlation between a more diverse leadership team and financial outperformance demonstrated three years ago continues to hold true on an updated, enlarged and global dataset.
Leadership roles matter. Companies in the top quartile for gender diversity on executive teams were 21% more likely to outperform on profitability and 27% more likely to have superior value creation. The highest performing companies on both profitability and diversity had more women in line roles (i.e., typically revenue-generating) than
in staff roles on their executive teams.
It’s not just gender. Companies in the top quartile for ethnic/cultural diversity on executive teams were 33% more likely to have industry-leading profitability. That this relationship continues to be strong suggests that inclusion of highly diverse individuals – and the myriad ways in which diversity exists beyond gender (e.g., LGBTQ+, age/generation, international experience) – can be a key differentiator among companies.
There is a penalty for opting out. The penalty for bottom quartile performance on diversity persists. Overall, companies in the bottom quartile for both gender and ethnic/ cultural diversity were 29% less likely to achieve above-average profitability than were all other companies in our data set. In short, not only were they not leading, they were lagging.
Click here to read the full report.