Even if the average person might not be able to name an organizations board members, they have a strong impact on how. Delivering through diversity executive summary 2 ocal context matters. Why diversity matters leaders working to create diverse and inclusive workplaces in which women can advance must make the connection between diversity initiatives and their organizations business goals. Mckinseys report, diversity matters, was published in 2015, but in light of the growing discussion on diversity in the it industry, a summary of. As a followup to its why diversity matters study in 2015, mckinsey analyzed more than 1,000 companies across 12 countries, looking at. A mckinsey view on whether information technology matters. Us, ethnicracial diversity has a stronger impact on financial performance than gender diversity, with earlier pushes to increase. Learn more about why diversity is a way of life at mckinsey. Diversity matters because it makes sense in purely business terms. The study comes at a time when diversitys business benefits have become a topic of intense discussion. For genomics and science in general to fulfil its potential of supporting efforts to understand disease and improve human health.
The business benefits of having women on a board of directors are numerous, and they include broadening your talent pool and even higher return on equity. January 2015 why diversity matters vivian hunt, dennis layton, and sara prince new. This is a key differentiating factor between australia and better performing, more innovative countries. Yet, our power structures are still fairly homogeneous mostly male, middleaged, white, heterosexual, and in many cases from catholic upbringing 4. 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. Delivering growth through diversity in the workplace mckinsey. Despite being significantly underrepresented in csuites and corporate boards across the gulf cooperation council gcc states, 1 women are making strides. The financial returns of companies that invest in diversity are higher than their national industrial medians. Mckinseys newest report shows just how good diversity is. A mckinsey analysis report says that 15% are more likely to outperform in a genderdiverse company and 35% are more likely to outperform in an ethnically diverse company. Responding to the socioeconomic impacts of covid19. Through the women matter and women in the workplace series, as well as the mckinsey global institutes reports, we have developed a global and regional understanding of the situation, built a clear.
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. About the authors vivian hunt is a director in mckinsey s london office, where dennis layton is a principal. Why does workplace diversity matter people matters. He will address the business implications of diversity in the workplace and delve deeper into the genderspecific insights the research has uncovered. Download delivering through diversity, the full report on which this article is based pdf 7 mb. Mckinsey has been examining diversity in the workplace for several years. Mckinsey diversity matters database likelihood of financial performance 1 above national industry median, by diversity quartile 2 percent, n991 companies 12 geographies for gender. The strategy realises the diversity and inclusion pillar of the people strategy, breathing life into our one ministry aspirations. We live in a diverse world in terms of gender, race, religion, sexual orientation 3. Use this graphic and accompanying tool to raise awareness, move toward mobilization and action, and enact change. 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 and inclusion strategy 2018 2028 1 message from the chief executive i am delighted to endorse the ministrys first ever diversity and inclusion strategy.
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. Mckinsey updates its 2015 study on diversity supplierty news. The first report, women matter, published in 2007, identified a positive relationship. The findings suggest that while some of our firms are as good as any in the world, we still have a substantial tail of firms that are mediocre, especially in their approach to people management. Indeed, a mckinsey research project 2 finds that gender diversity is gaining a place on the corporate agenda across the gcc as companies there increasingly recognize the potential of women leaders to. Companies in the topquartile for gender diversity on executive teams were 21% more likely to outperform on profitability and 27% more. 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. Mckinsey 2017 delivering through diversity diversity. 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. We are the trusted advisor to the leading businesses, governments, and institutions.
About the authors vivian hunt is a senior partner in mckinsey s london office, where sundiatu dixonfyle is a senior expert. View why diversity mattersmckinsey report jan 2015. The new report delivering through diversity reinforces the link between diversity and company financial performance. Having an effective board of directors is crucial to an organization. Our latest research finds that companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns. Supporting employee diversity is broader than eeo and focuses beyond categories such as race, gender, and age. Org is the largest study of the state of women in corporate america. Use this graphic and accompanying tool to raise awareness. Diversity matters is the proactive, countywide program to support and celebrate county employees. The diversity matters research looks at the relationship between the level of diversity and company financial performance. Mckinsey report delivering through diversity diversity uk. A report from mckinsey, titled delivering through diversity, released last week, shows that gender diversity in management positions actually. The new analysis expands on our 2015 report, why diversity matters, by drawing on an enlarged data set of more. Back in 2015 mckinsey ran the numbers and came up with the conclusion.
Diversity still makes companies more profitable, says mckinsey. 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. 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. Genderdiverse companies are 15 percent more likely to outperform, while ethnically diverse companies are 35 percent more likely to outperform. 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. The first report, women matter, published in 2007, identified a positive relationship between corporate performance and elevated presence of women in the. 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.
Mckinsey report reinforces again link between diversity. Since 2015, senior leader and manager commitment to gender diversity has also increased, and employee commitmentespecially among menhas risen. It provides information to all levels of the county workforce. Its study entitled delivering through diversity reaffirms the global relevance of the link between diversity and performance. 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. Based on five years of data from almost 600 companies, this years report features. For the past ten years, mckinsey has been researching to build the case for greater parity in the economy and in corporations top management, and to understand the levers to make change happen.
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. Lareina yee is a senior partner in the san francisco office. To learn more about diversity matters diversity matters. Using technology to improve workforce collaboration. About the authors vivian hunt is a director in mckinseys london office, where dennis layton is a principal. This article is adapted from the report diversity matters pdf 1,732kb, which was rereleased in february 2015. In fact, the diversity of the groups members matters as much as their ability and. 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.
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