Read on to get a better understanding of how a DEI strategy can transform your organisation’s culture, brand, productivity, innovation and profitability.
Written by: Josephine Palermo
Josephine Palermo is a leading advocate for gender equality and diversity, equity, and inclusion (DEI) in the workplace. With a PhD in Organisational Psychology and extensive publications on the psychology of gender, change management, and organisational development, she brings a deep understanding of organisational dynamics to her work.
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Diversity, equity, and inclusion are more than buzzwords – they’re powerful drivers of innovation and adaptability in a fast-evolving work environment. By promoting gender equality and a broad array of perspectives, diverse teams foster innovation and resilience that can transform organisational outcomes. In this blog, we delve into research on DEI and team performance and explore actionable strategies that teams and leaders can employ to cultivate a culture of inclusion.
The Impact of Diversity on Innovation and Team Success
A study by Boston Consulting Group (BCG) in 2018 surveying over 1,700 companies across eight countries, revealed that diverse leadership enriches team performance and significantly boosts innovation. Companies with high leadership diversity generated nearly 45% of their revenue from innovative products, compared to 26% for less diverse teams. This impact extends across all levels, with diversity encouraging broader thinking and fresh approaches that enhance team success.
The Business Case for Gender Equality and Inclusion
Gender equality is a critical aspect of DEI that strengthens teams by fostering equitable participation and respect. BCG’s study noted that companies with gender-diverse teams experienced greater innovation, underscoring how diverse voices contribute to creative problem-solving and cultural understanding. Organisations prioritising gender equity through equal pay, flexible policies, and diverse leadership are creating inclusive environments that drive collective success.
DEI as a Strategy for Building High-Performing Teams
An inclusive culture is essential for a DEI strategy to genuinely improve team performance. Research highlights that teams need fair employment practices and participative leadership to reach their full potential. An environment where all members feel valued and supported allows diverse perspectives to flourish, fuelling team performance and creativity. Leaders can support this through structured DEI initiatives, regular diversity training, and team-building practices that prioritise inclusivity.
The Developmental Model of Intercultural Sensitivity (DMIS) for Team Cohesion
Milton Bennett’s Developmental Model of Intercultural Sensitivity (DMIS) provides a framework for progressing from ethnocentric to ethno-relative perspectives. The DMIS was developed through a grounded theory approach, using extensive qualitative observations of people in cross-cultural interactions. Bennett’s work drew on cognitive and experiential constructivism, which emphasises that individuals construct their understanding of cultural differences through stages of increasing cognitive complexity.
This model helps team members understand cultural differences and approach interactions with empathy and adaptability, fostering smoother communication in diverse environments. In workplaces committed to DEI, Bennett’s model can serve as a valuable tool to enhance intercultural sensitivity and team cohesion.
Bennett’s model outlines six stages of cultural awareness, from Denial to Integration.
- Denial – Limited or no recognition of cultural differences.
- Defense – Recognition of some cultural differences, but viewing one’s culture as superior.
- Minimisation – Awareness of cultural differences, yet assuming basic similarities across cultures.
- Acceptance – Recognition and appreciation of deep cultural differences.
- Adaptation – Ability to adjust one’s behaviour to fit different cultural contexts.
- Integration – Ability to integrate multiple cultural perspectives into one’s identity and worldview.
As team members move through the stages of this cultural awareness spectrum, they begin to view embracing culture as central to integrating diverse cultural perspectives. Organisations using DMIS principles can more effectively guide team members through these stages with tailored DEI training, encouraging growth in cultural understanding and reducing misunderstandings in diverse teams.
How a DEI Strategy can Drive Sustainable Team Development
Achieving equity and inclusion means ensuring all team members have the resources and support they need to thrive. This goes beyond equal opportunity; it requires leaders to assess individual and collective needs, removing barriers to participation. Equity-focused practices, such as mentorship programs and targeted resources foster a truly inclusive environment that enhances productivity and job satisfaction.
Addressing the Challenges of Diverse Teams through Inclusive Leadership
Diversity can present challenges, such as initial communication barriers or alignment issues. Ruth Wageman and Richard Hackman’s research stresses the importance of leadership in overcoming these challenges
Effective leaders create inclusive team structures, set shared goals, and support open communication, helping diverse teams achieve through alignment and cohesion. This structured approach is essential to ensure that diversity is an asset rather than a hurdle.
Structured Coaching for Diverse Teams
Structured coaching provides diverse teams with the tools to manage differences constructively. Team coaches can use clear goal-setting, facilitation of open dialogue, and the establishment of shared norms to guide teams towards mutual understanding and collaboration. Structured coaching enables teams to leverage their diversity, harmonising varied perspectives for more effective collaboration.
Creating an Inclusive Culture through DEI Practices
DEI practices are integral to building an inclusive workplace. Leaders can embed DEI principles in every aspect of team dynamics by encouraging open feedback channels, recognising and rewarding diverse contributions, and fostering a culture where all team members feel valued and heard. These efforts lay the groundwork for an inclusive culture that respects individual differences and amplifies team synergy.
Small Changes Big Impact with the Right DEI Strategy
BCG’s research shows that even modest changes in diversity practices can significantly improve innovation. Whether it’s hiring managers from varied backgrounds or implementing fair pay policies, incremental shifts in DEI practices help create an inclusive environment where diverse ideas can take root and flourish. These small but meaningful steps reinforce a commitment to equity and inclusion at every level.
The Future is Inclusive Teams
Investing in DEI, gender equality, and equitable practices fosters a work culture that thrives on diverse perspectives and values every individual’s contribution. Teams supported by inclusive practices and leaders committed to DEI are better equipped to tackle complex and adaptive challenges that drive innovation. By embedding DEI into the fabric of team design, organisations can cultivate resilient, high-performing teams that are fit for future success.
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