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Leadership and Growth – The Power of Diverse Perspectives in Strategy Development in Leadership and Why it Matters?

Have you ever wondered why The Power of Diverse Perspectives in Strategy Development in Leadership Matters?

During my three decades of leadership, I have seen firsthand how bringing in different views — diversity as a business strategy — changes the game. An example I still remember vividly is leading an international team and creating a new service offering in a highly competitive marketplace. We developed a diverse strategy by actively implementing ideas that the team members from various cultures and disciplines proposed; this allowed us to satisfy different demands and be ahead of trends. This strategy involved a diverse group of people, leading to a highly successful service launch and demonstrating the positive impact of different perspectives on strategic decisions.

Importance - Diverse perspectives must be considered in strategy development. Organizations must navigate complex and dynamic environments in today’s globalized and interconnected world. According to a study by McKinsey, companies with diverse executive teams are 33% more likely to outperform their peers in terms of profitability. Diverse perspectives foster creativity, innovation, and resilience, enabling organizations to develop robust strategies that address varied market demands and anticipate future challenges. Embracing diversity in strategic thinking is essential for staying competitive and achieving sustainable growth.

Impact - The impact of diverse perspectives on organizations is profound. When leaders actively seek and integrate diverse viewpoints, they unlock creativity and innovation. Consider the case of Procter & Gamble (P&G). By leveraging the insights of its diverse workforce, P&G has consistently developed products that resonate with a broad range of consumers. This inclusive approach has driven product innovation and market success. Similarly, IBM’s commitment to diversity and inclusion has led to groundbreaking advancements in technology and services, solidifying its position as a global leader. These, as many other examples, illustrate how diverse perspectives can drive organizational success and foster a culture of continuous improvement.

Challenges - Although this approach has benefits, it faces challenges when different perspectives are to be integrated into the strategy development process. Unconscious biases, however, can be a significant barrier to encouraging diversity and ensuring diverse perspectives are included. Creating a place where every voice is heard and respected also takes work. Specific actions include bias training, open and inclusive communication, and diversifying our team into various minds with differing experiences/styles. The leadership of an organization sets the tone that will either enable or impede real consideration and incorporation of a diverse set point when making strategic decisions.

Relevancy in Board Rooms - Developing strategic diversity - within the boardroom is also crucial to gaining eye-level views. As part of creating that strategy, we, as board members, have an essential duty. One way would be to promote diversity and inclusion on boards, helping ensure that various perspectives inform strategic decisions. This includes diverse board member recruitment, building an inclusive boardroom culture, and enabling rigorous dialogue considering multiple perspectives. An organization's strategic agility and resiliency can be fortified through board members prioritizing diversity.

Global Perspectives -The importance of diverse perspectives in strategy development is recognized worldwide. In Japan, “nemawashi,” or informal consensus-building, involves gathering input from various stakeholders before making decisions. This inclusive approach ensures that diverse perspectives are considered. In contrast, Scandinavian countries emphasize flat organizational structures and collaborative decision-making, reflecting a cultural commitment to equality and inclusivity. These global practices highlight the value of diverse perspectives in developing effective strategies and achieving organizational success.

Expert Opinions - Diversity of thought is the cornerstone of strategy development, and experts from different fields widely recognize it. According to Harvard Business School professor Francesca Gino, diverse teams are more creative and perform better in decision-making. Similarly, management consultant Peter Drucker observed that “the best way to predict the future is to create it,” acknowledging how differing viewpoints can be a harbinger of what's ahead. These findings echo a broader sentiment that diversity is central to strategic innovation and organizational performance.

Future Outlooks - In the future, having many varied perspectives in strategy development will become more essential. In a context of growing complexity and dynamics, the power to tap diverse voices appears essential in building adaptive strategies with robustness. There are many new trends, but I will mention a few - e.g., AI, AGI, digital transformation, globalization, and the elevated focus on sustainability- pointing toward inclusive strategic thinking as needed. So, in the future race, it will all be about being a step ahead, and organizations that incorporate diversity proactively into their strategies process are well set to focus on ensuring they can navigate this landscape successfully while achieving long-term success.

Three Takeaways for our Boardrooms:

Takeaway #1: Champion Diversity and Inclusion -We must encourage a culture that recognizes the importance of diverse viewpoints in all company parts, from your boardroom to its front line.

Takeaway #2: Advocate for Inclusive Communication—We must facilitate transparent conversation and ensure everyone has a seat at the table and an active voice in strategy discussions.

Takeaway #3: Integrate Multiple Viewpoints – We must blend various perspectives when developing a strategy to improve creativity, innovation, and flexibility.

Final Reflection -The power of diverse perspectives in strategy development is undeniable. Our duty as leaders is to create an atmosphere where diverse thoughts and more varied perspectives become a part of strategic decision-making. This focus on diversity and inclusivity is more than just the right thing to do. More importantly, it has proven to be a driver in business performance, leading companies that have embraced D&I practices to be more innovative and resilient, creating a long-term sustainability mindset. This includes embracing board diversity, modeling inclusive communication, and utilizing diverse points of view in strategy quests.

In authentic leadership, diverse perspectives serve as the vibrant threads that weave together innovation, resilience, and insight. By embracing these varied viewpoints, we transform strategy into a dynamic masterpiece, fostering growth, unity, and a future where every voice contributes to the collective success.

I invite you to share your experiences and challenges in incorporating diverse perspectives in strategy development.

How have you fostered inclusivity in your organization’s strategic processes?

What impact has it had on your organization’s success?

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