Diversity Takes Skill

Diversity, Inclusion & Belonging (DIB) continue to be cornerstone principles for many of today's top-performing organizations. But despite the widespread adoption of these ideals, a critical shift is taking place—one that may alter the trajectory of DIB strategies globally.

Recent years have witnessed a dismantling of Diversity, Equity, and Inclusion (DEI) programs in some companies worldwide, primarily due to shifting business priorities and political pressures. While such actions may appear to simplify organizational structures, they also miss the point: diversity remains not just a moral imperative but a strategic advantage in the increasingly complex global marketplace.

So why is diversity still crucial? Let’s explore the complexity of what it means for organizations to build truly diverse teams and how the right skills can turn this diversity into a competitive edge.

The Traditional Approach: A Narrow View of Diversity

When leaders begin the journey of diversifying their teams, they typically look at the Big 5 indicators—age, ability, gender, sexual orientation, and ethnicity. While these dimensions are a good starting point, they are often insufficient in achieving meaningful diversity. Companies that focus exclusively on these surface-level metrics may find themselves imposing tokenistic quotas, rigid processes, and mandatory training, which can breed resentment or, worse, disengagement from employees.

Simply ticking boxes doesn't result in true cultural transformation. Diversity, to be meaningful, must go beyond these basic categories and align with an organization's values and purpose. Without a corresponding cultural shift that embraces inclusivity, the systems intended to promote diversity may end up creating more friction than harmony.

Redefining Diversity: Beyond the Surface

The real power of diversity lies not in the demographic makeup of a team but in the variety of thought and experience each individual brings. The INSEAD Global Talent Competitiveness Index (GTCI), in collaboration with the Adecco Group and Tata Communications, redefined diversity in the workplace as "collaboration between people with different personalities, knowledge sets, experiences, and perspectives." This perspective shifts the focus from visible traits to cognitive diversity, acknowledging that true innovation comes from diverse thought processes.

The value in embracing diverse perspectives is clear: differing opinions challenge the status quo, foster innovation, and allow teams to see issues from multiple angles. This results in stronger, more resilient teams capable of navigating complex challenges and achieving superior outcomes. In today’s fast-paced business environment, organizations cannot afford to overlook the power of diversity of thought.

Measuring Diversity of Thought

Unlike traditional measures of diversity, which can be counted by categories, diversity of thought is more abstract—and therefore harder to measure. However, some organizations have found success in assessing team dynamics through psychometric assessments or personality frameworks to intentionally select team members who bring a variety of perspectives. This approach, while controversial, can be beneficial if used thoughtfully. Think of it as creating a "dream team" by selecting members based on their ability to challenge assumptions, argue constructively, and bring fresh ideas to the table.

Of course, hiring for diverse perspectives is only the first step. To truly unlock the potential of a diverse team, organizations must support and nurture these differences. This is where coaching, mentorship, and group dynamics training come into play. By fostering self-awareness and empathy, leaders can help teams navigate the inevitable conflicts that arise from diverse perspectives, ensuring that differences become sources of strength rather than division.

The Skills That Make Diversity Work

In addition to recruiting for diversity, it’s essential for organizations to focus on the skills required to manage and leverage that diversity. Leaders need to invest in training their teams—not just on awareness of bias or superficial inclusion tactics—but on the critical interpersonal skills required to thrive in a diverse environment.

Emotional intelligence (EQ), communication, and conflict resolution are essential competencies for team members to manage diversity effectively. However, measuring the impact of such skills at an organizational level remains a challenge. The absence of concrete data on how diversity initiatives contribute to bottom-line performance has led some companies to question the ROI of DEI efforts. The question is, how can organizations measure and track the real value of these skills?

The Performance Gap in Diverse Teams

INSEAD’s GTCI report also highlighted a performance disparity in diverse teams—often referred to as the "double hump" effect. This finding suggests that while a small number of diverse teams outperform homogeneous groups, a larger proportion actually underperform. This underperformance can often be attributed to a lack of support in nurturing the skills required to make diversity work.

Simply put, it’s not enough to hire for diversity; organizations must actively develop the competencies that allow diverse teams to function optimally. The failure to do so can result in a significant gap between diverse teams’ potential and actual performance.

Why DEI Remains Vital in 2025

The backlash against DEI programs may be growing in some parts of the world, but the essential role of diversity in fostering innovation, resilience, and growth cannot be understated. Companies that dismantle DEI initiatives risk falling behind in the global race for talent and market leadership. Diversity of thought is a key driver of innovation, and teams that embrace it are better equipped to adapt, solve complex problems, and stay ahead of the competition.

In conclusion, organizations must invest not only in building diverse teams but also in developing the skills needed to make diversity truly effective. Diversity requires effort, support, and a long-term commitment to cultivating inclusive cultures where every voice is heard and valued. When done correctly, diversity doesn't just improve business outcomes; it transforms how organizations think, operate, and thrive in an increasingly interconnected world.

If you're interested in learning more about how BOLDLY can help your organisation with DEI initiatives and coaching, we invite you to explore our or write to us here.