Diversity: An Innovation and Leadership Imperative

The US workforce is more diverse and educated than previous decades. And it’s getting more diverse and educated. This is a fact.

This transformation toward diversity is a big challenge. Because as any parent knows, a diversity of opinions leads to deliberation and friction. Managing diverse organizations is really, really hard - whether it’s a family, a volunteer organization, or a team within a large enterprise.

I’ve seen leaders respond to diversity in one of four ways:

Tyranny is fairly common. If you don’t want to deal with diversity, a leader can just suppress it - either by making their teams more homogenous or shutting down divergent ideas. The problem here is that coercive teams can rarely sustain high performance for extended periods of time, especially when the operating environment changes. Tyrannical leaders exterminate novel ideas, so when creative ideas are needed to solve a previously unseen problem, they struggle. Tyranny is also terrible.

Conflict avoidance is also fairly common. These are the teams that have diversity but don’t utilize it. On these sorts of teams, nobody communicates with candor and so diverse perspectives are never shared and mediated - they’re ignored. As a result, decisions are made slowly or never at all because real issues are never discussed. By avoiding the friction that comes with diverse perspectives, gridlock occurs.

Another response is polarization. Environments of polarization are unmediated, just like instances of conflict avoidance. But instead of being passive situations, they are street fights. In polarized environments, everyone is a ideologue fighting for the supremacy of their perspective, and nobody is there to meditate the friction and make it productive. Similar to conflict avoidance, polarization also leads to gridlock. I don’t often see this response to diversity in companies. But it seems a common phenomenon, at present, in America’s political institutions.

What I wish was more common was productive mediation of diversity. Something magical happens when a diverse-thinking group of people gets together, focuses on a novel problem, candidly shares their perspectives, and then tries to solve it. Novel insights emerge. Divergent ideas are born. New problems are solved. A more common word for this phenomenon is “innovation”.

It seems to me a central question in leadership of organizations today, maybe THE central question of leadership today is “how to do you respond to diversity?” Because, as I mentioned and linked to above - the workforce has become more diverse and more educated. Which means the pump is primed for lots of new, weird ideas and lots of conflict within enterprises.

Leaders have to respond to this newfound diversity. And whether they respond with tyranny, conflict avoidance, polarization, or productive mediation matters a great deal.

I wanted to share this thought because I think this link is often missed. Leadership is rarely cast as a diversity and innovation-management challenge, and diversity is usually cast as an inclusion and equity issue rather than as an innovation and leadership imperative.

The types of questions asked an interviews are a good bellwether for whether enterprises have understood the nuance here:

A traditional way to assess leadership: “Tell me about a time you set a goal and led a team to accomplish it.”

A diversity and innovation-focused way to assess leadership: “Tell me about a time you brought a team with diverse perspectives together and attempted to achieve a breakthrough result.”

The person who has a good answer to question one is not necessarily someone who has a good answer to question two, or vice versa. The difference matters.