Do You Have What It Takes to Lead Today’s Diverse Teams?

To no one’s surprise, the latest report from the U.S. Census Bureau provides compelling evidence that America is an increasingly diverse nation.

People of color represented 43% of the total U.S. population in 2020, a dramatic leap from 34% in 2010, with significant increases among people who identify as multi-racial, Hispanic and Asian driving much of the nation’s population growth.

The changing face of the population and workforce creates an opportunity for business leaders and managers who are prepared to unleash the power of diversity and inclusion to achieve a competitive advantage.

Academic research shows that diverse cultures?are more resilient, and diverse and inclusive organizations are more successful. For example, in The Diversity Bonus: How Great Teams Pay Off in the Knowledge Economy, Scott Page presents a convincing case that teams that include different kinds of thinkers outperform homogenous groups on complex tasks, producing what he calls “diversity bonuses,” such as improved problem solving, increased innovation, and more accurate predictions -- all of which drive better results.

Business findings support this notion. McKinsey studied data from more than 1,000 large companies in a dozen countries and found the business case for diversity is stronger than ever. For example, companies in the top-quartile for ethnic/cultural diversity on executive teams were 33% more likely to have industry-leading profitability.

Throughout my own career, spanning the private and public sectors, I have consistently found that diverse teams are not just more productive, they’re also more engaging, more intellectually stimulating, and even more fun to be a part of.

The question is: Are managers ready to lead more diverse teams?

While many think they are not, I believe the skills required to manage diverse teams are simply the skills of being a good manager.

First, an outstanding team leader brings together individuals that offer differing and complementary skills, perspectives and experiences. Ask yourself: If you only hire people who look like you, think like you and act like you, are those employees really bringing something new and additive to your team? Effective managers have the wisdom, the courage and the confidence to look outside their comfort zone for talent. This can help avoid “group think,” generate new ideas, and drive better decisions.

Second, a great leader proactively gives all members of the team an opportunity to contribute. This is why the diversity efforts of most organizations today are focused on building an inclusive culture. It’s easy to understand why people are more likely to be successful in a work environment in which every employee is treated fairly and has equal access to opportunities and resources.

Third, great leaders show empathy and understanding for each team member. They make a concerted effort to see the value in every individual, give them their full respect, and help them to be their best. They recognize that when team members feel comfortable bringing their full and “authentic” selves to work, they will also bring the full breadth of their skills and capabilities to the job – boosting the overall performance of the team.

Finally, a good team leader recognizes that we are all on a never-ending journey to inclusion, seeking continuous improvement and ever-expanding understanding in both our personal and professional lives. There are so many dimensions to diversity, and so many things to learn and know about every individual, that we’ll never be done. And for me, this never-ending process of discovery and growth is easily one of the most exciting and satisfying parts of being a leader.?

What skills do you think are critical for managers to attract, retain, and motivate today’s increasingly diverse teams?