New research by mckinsey concludes that gender and ethnic diversity clearly correlate with profitability, but women and minorities remain underrepresented in spite of this. How inclusion matters, the full report on which this article is based pdf 10. Our latest research finds that companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns. Trends in the representation of women based on five years of pipeline data, datadriven recommendations for closing gender disparities in hiring and promotions, findings on the practices. Delivering through diversity executive summary 2 ocal context matters. Mckinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. This article is adapted from the report diversity matters pdf 1,732kb, which was re released in. Mckinsey released a new diversity matters report that finds that the companies in the top quartile for gender and racial or ethnic diversity are more likely to outperform above national industry means.
Although each consulting firm hasor at least claims to haveits own methods, the root of all management consulting is the application of objec. Why diversity matters was our firms most downloaded publication on diversity in 2016, demonstrating an increasing interest in the business case for diversity. Like many global companies, we grapple with diversity hurdles created by varying business practices and inconsistent levels of awareness of the importance of diversity. Diversity wins is the third report in a mckinsey series investigating the business case for diversity, following why diversity matters 2015 and delivering through diversity 2018. Aug 16, 2019 for genomics and science in general to fulfil its potential of supporting efforts to understand disease and improve human health, diversity and inclusion must be recognized as essential. Matters mckinsey, 2014 was used in devising a corporate diversity metric1. Download delivering through diversity, the full report on which this article is based pdf 7 mb. Companies with more diverse leadership teams make more money just to be sure, mckinsey repeated its analysis with a broader data set of 1,000 companies covering 12 countries. Yet, our power structures are still fairly homogeneous mostly male, middleaged, white, heterosexual, and in. Using technology to improve workforce collaboration. Download the ebook success in managing diversity for free.
The new report delivering through diversity reinforces the link between diversity and company financial performance. Our latest report, diversity matters, examined proprietary data sets for 366 public companies across a range of industries in canada, latin america, the united kingdom, and the united states. In addition, this book will give any executive who works with management consultants, whether from mckinsey or elsewhere, some insight into how these strange beings think. This article is adapted from the report diversity matters pdf1,732kb, which was re released in. Its also increasingly clear that it makes sense in purely business terms. Lessons from a veteran diversity advocate mckinsey. Thank you all for not only your time, but also for your courage to share, at times very painful, experiences, with me. The diversity matters research looks at the relationship between the level of diversity and company financial performance. Addressing the emerging impacts of the covid19 pandemic on migrant women in asia and the pacific for a genderresponsive recovery.
Genderdiverse companies are 15 percent more likely to outperform, while ethnically diverse companies are 35 percent more likely to outperform. The case for gender diversity is compelling, but mckinsey researchincluding a new report, women matter 2016. Why diversity matters mckinsey new research makes it increasingly clear that companies with more diverse workforces perform better financially. Diversity management is an emerging field within human resource management. Benefits, challenges, and the required managerial tools 2 advantages. The first report, women matter, published in 2007, identified a positive relationship. When internal diversity and inclusion scores are strong, and employees feel.
Gender diversity in the workplace increases sales, customers and. Delivering growth through diversity in the workplace mckinsey. Effective feature management download the ebook by oreilly. Dozens of studies have shown that diversity is just good business. When managers genuinely listen to employees suggestions and make use of them, diversitys benefits multiply.
Dec 08, 2014 mckinsey has since expanded the focus of its research on the relationship between performance and diversity to include diversity in race and ethnicity and sexual orientation as well as gender. For more, please visit, careers in the mckinsey knowledge network on m. Reinventing the workplace for greater gender diversity. I feel very honoured that you showed me such confidence. Detailed information on the use of cookies on this site, and how you can decline them, is provided in our cookie policy learn more about cookies, opens in new tab.
In the past, the indirect benefits of diversity were sufficientan expansion of the job candidate pool at all levels, or an increase in social and political status for the company. Mckinsey diverse young leaders scholarship careers. Mckinsey recently completed a follow up study to that report in which they analyzed more than 1,000 companies across 12 countries, looking at their respective profits. Diversity has the greatest impact on innovation at companies that reinforce diversity through five conditions in the work environment. The mckinsey diverse young leaders scholarship was established with the goal of supporting and building relationships with promising and diverse students from chicago, denver and minneapolis and their surrounding areas. About the authors sundiatu dixonfyle is a senior expert in mckinseys london office, where vivian hunt, dbe, is a senior partner. Managing diversity is a key component of effective people management in the workplace black enterprise 2001.
The first report, women matter, published in 2007, identified a. As a followup to its why diversity matters study in 2015, mckinsey analyzed more than 1,000 companies across 12 countries, looking at their respective profits and value creation. Organization article january 2015 why diversity matters by vivian hunt, dennis. Mckinseys report, diversity matters, was published in 2015, but in light of the growing discussion on diversity in the it industry, a summary of the results will prove helpful to many. Org is the largest study of the state of women in corporate america. Mckinsey recently completed a follow up study to that report in which they analyzed more than 1,000 companies across 12 countries, looking at. Learn more about why diversity is a way of life at mckinsey. This article is adapted from the report diversity matters pdf 1,732kb, which was rereleased in february 2015. Based on five years of data from almost 600 companies, this years report features. Mckinsey report reinforces again link between diversity. The new analysis expands on our 2015 report, why diversity matters, by drawing on an enlarged. A report from mckinsey, titled delivering through diversity, released last week, shows that gender diversity in management positions actually increases profitability more than previously. After all, the purpose of the board was to support the chief executive officers ceo plan and assure the shareholders that experienced, intelligent people. May 22, 2020 diversity wins is the third report in a mckinsey series investigating the business case for diversity, following why diversity matters 2015 and delivering through diversity 2018.
A couple of months after coming to kaiser permanente, in 2002, i sent a letter to all our employees saying that diversity would be one of our strengths, and i worked closely with my teams to build a set of processes to follow through on that promise. In my opinion, this is one of the most cited sources that is used to justify the business case for diversity in organisations, when i say that i mean people generally use this report as evidence to support their argument when claiming that diversity is good for business, specifically because it leads to more profits. Why diversity matters mckinsey pimfa building personal. Lareina yee is a senior partner in the san francisco office. In western europe, only 17 percent of executivecommittee members are. Download delivering through diversity, the full report on which this article is based pdf7 mb. Im proud that today, fiftynine percent of the companys employees are minorities, the majority of its workforce is women, and four of the.
August, the editors present here a summary of the diversity matters report. Faculty of health sciences, durban university of technology kev words abstract. January 2015 why diversity matters vivian hunt, dennis layton, and sara prince new. As many of my website followers are aware, mckinsey released a study in 2015 entitled why diversity matters covering the benefits of corporations that housed a diverse workforce and leadership. Effects of climate change on agriculture in africa mckinsey. Sep 28, 2017 mckinsey s report, diversity matters, was published in 2015, but in light of the growing discussion on diversity in the it industry, a summary of the results will prove helpful to many. About the authors vivian hunt is a senior partner in mckinseys london office, where sundiatu dixonfyle is a senior expert. View why diversity mattersmckinsey report jan 2015.
Diversity still makes companies more profitable, says mckinsey. Back in 2015 mckinsey ran the numbers and came up with the conclusion. The important statistics that are missing from most diversity reports. We also partner with local organizations to advance human rights. They cannot be named, but without their input this book would not exist. Success in managing diversity a diversity diy for leaders that want to build high performance teams with this summary, i would like to help those managers who do not want to wait for the next policy statements or diversity kpis, but intrinsically want whats best for their teams and organization. Yet, our power structures are still fairly homogeneous mostly male, middleaged, white, heterosexual, and in many cases from catholic upbringing 4. According to mckinsey the 346 companies included in its 2015 research mostly based in the us and uk have increased average gender representation on their executive teams only 2 percentage points, to 14 per cent, and ethnic and cultural diversity by 1 percentage point, to per cent. For genomics and science in general to fulfil its potential of supporting efforts to understand disease and improve human health, diversity and inclusion must be recognized as essential. Mckinsey has been examining diversity in the workplace for several years.
How would our country look, and would it be more peaceful and more prosperous if we were less diverse. Mckinsey 2017 delivering through diversity diversity. Reinventing the workplace to unlock the potential of gender diversityshows many companies are struggling to ensure women are represented fairly in top management. Jan 25, 2018 new research by mckinsey concludes that gender and ethnic diversity clearly correlate with profitability, but women and minorities remain underrepresented in spite of this. We live in a diverse world in terms of gender, race, religion, sexual orientation 3. Apr 26, 2017 the study comes at a time when diversitys business benefits have become a topic of intense discussion. The 2017 report, delivering through diversity, expands on the 2015 report, why diversity matters. About the authors vivian hunt is a director in mckinsey s london office, where dennis layton is a principal. Sylvia weinstock talks to all the career backgrounds of our knowledge network staff.
He will address the business implications of diversity in the workplace and delve deeper. Mckinseys report, diversity matters, was published in 2015, but in light of. Our latest report shows not only that the business case remains rob. Companies with 10 percent higher gender and ethnicracial diversity on management teams and boards in the us, for instance, had ebit that. He will address the business implications of diversity in the workplace and delve deeper into the genderspecific insights the research has uncovered. About the authors sundiatu dixonfyle is a senior expert in mckinsey s london office, where vivian hunt, dbe, is a senior partner. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The important statistics that are missing from most. In this research, we looked at metrics such as financial results and the. The research proceeded through the creation of proprietary datasets for 366 public companies across a range of industries in the united kingdom, canada. Jan 18, 2018 as a followup to its why diversity matters study in 2015, mckinsey analyzed more than 1,000 companies across 12 countries, looking at their respective profits and value creation. L on gender, while there is plenty more to do, some companies lead the way in both absolute average diversity and representation in topquartile australia, uk, and us companies make up over 70% of this group. Our latest research reinforces the link between diversity and company financial. The first report, women matter, published in 2007, identified a positive relationship between corporate performance and elevated presence of women in the workplace in several western european countries, including the uk, france, and germany.
Having people on your board of directors who were reliable, likeminded and known entities was the most logical strategy to build a board. Mckinsey report delivering through diversity diversity uk. However, most of the literature and consulting in the management of diversity in a workforce is focused on and applied. The first report, women matter, published in 2007, identified a positive relationship between corporate performance and elevated presence of women in the workplace in several western. In canada, we pride ourselves on getting things right when it comes to diversity, and overall we should, but we all know that there is a long way to go before poor kids get a decent education, aboriginal communities get more respect, women break the glass. Stephen butler, cochair of the businesshigher education forum, believes diversity is an invaluable competitive asset robinson 2002. The diversity matters research looks at the relationship between the level.
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