In both developing and developed economies, companies with above-average diversity on their leadership teams report a greater payoff from innovation and higher EBIT margins, according to the Boston Consulting Group (BCG) study 'How Diverse Leadership Teams Boost Innovation'.
It said companies can start generating gains with relatively small changes in the makeup of their senior teams.
The study was result of a survey among more than 1,700 companies in eight countries, including Austria, Brazil, China, France, Germany, India, Switzerland and the US, across a variety of industries and companies.
She said multifaceted teams offer a robust range of perspectives and this allows organisations to formulate strategic solutions that can help them efficiently accomplish their goals and bring new ideas to the table.
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The study also found that implementing small changes in the makeup of the management team can make a lasting impact and boost business innovation revenues.
Those companies reported even higher percentages of revenue from new products and services.
"Our study indicates that companies that strongly invest in digital technology show the biggest benefits from diverse leadership teams. They're able to capitalise on the wealth of new ideas those teams can generate," BCG partner and co-author of the study Miki Tsusaka said.
In addition to building more diverse leadership teams, companies need a solid foundation, including maintaining fair employment practices, implementing leadership that is receptive to diversity and fostering an open-minded culture.
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