What Working with Diverse Teams Really Means • Roisin Parkes • YOW! 2017

Diverse teams outperform homogeneous teams in decision-making and problem-solving by processing information more carefully and examining facts more objectively

There are three key types of diversity that impact team performance differently:

• Social category (race, gender, age)
• Informational (education, expertise, experience)
• Value diversity (beliefs, politics, culture)

Team composition matters significantly:

• Uniform groups: All members share same status (fastest communication)
• Skewed groups: 1-15% minority
• Tilted groups: 15-35% minority
• Balanced groups: 35-65% minority

Creating diverse teams isn’t enough - organizations need to build an inclusive culture where:

• All team members feel psychologically safe to speak up
• Different perspectives are actively encouraged
• Shared goals and values unite the team
• Communication bridges are built across groups

Best practices for managing diverse teams:

• Keep teams small to prevent factions
• Create team manifestos to align on values
• Focus on shared goals rather than differences
• Have leadership advocate for minority voices
• Match team composition to type of work (exploration vs exploitation)

Organizations naturally trend toward homogeneity through:

• Attraction of similar people
• Selection bias in hiring/promotion
• Higher attrition of those who are different

Companies with diverse leadership (e.g. women on boards) show measurably better financial performance

The “discomfort” of diversity can be positive - it leads to:

• More careful information processing
• Multiple perspectives being considered
• Better problem-solving and innovation