How Smart Managers Make Diversity Work

Diversity is often revered as being the key to building a powerful team, but it’s actually variety that leads to innovation and success.

Texas McCombs
Big Ideas
3 min readApr 11, 2016

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By Adrienne Dawson

“What team in professional football has consistently been the highest performing team over the last 10 years?” asks McCombs School of Business Professor David Harrison. “The New England Patriots.”

“What professional basketball team has been the most effective, consistently highest performing over the last 10 years?” he asks again. “The Spurs.”

Now guess which teams are the most ethnically diverse. “It’s the New England Patriots and the Spurs. Just let that sit for a while,” he suggests.

In management, “diversity” is often heralded as the key to building a successful team. But Harrison points out that the real question should be: Does the team have variety, separation, or disparity? All three can make a team appear diverse, but only one leads to creativity and innovation.

“Variety is the hero of diversity.” — David Harrison

We want more variety in most of our teams. It’s hard to think of a team where you want everybody to think exactly the same way or have exactly the same information at their disposal. Because if they did, why would we need to have a team?”

Variety, he explains, leads to what researchers call higher information processing capacity. In others words, when a team has more variety, it has a greater range of talent, experiences, and perspectives. Those members “see more alternatives, they vet those alternatives more often, and they’re more flexible.” Which is why, he adds, that for most of the tasks a team performs, it’s better to have more variety among employees.

But what happens when, instead, a team has a high degree of separation or disparity? On the surface, it can look like that team is diverse — but in actuality, it is lopsided in terms of power, wages, or influence. Under those circumstances, Harrison says, no one wants to share information, which is critical to a group’s success. People often feel resentful, work ethic and output decline, and the team can implode. Separation and disparity, he adds, are the villains of diversity, and it’s up to managers to ensure they’re not creating teams that are destined to fail.

But how should managers design teams in the first place to ensure variety? What happens if a manager inherits a dysfunctional team with separation or disparity? To learn more, click below to watch the entire video from David Harrison’s presentation as part of the Texas Enterprise Speaker Series.

David Harrison’s presentation as part of the Texas Enterprise Speaker Series.

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Texas McCombs
Big Ideas

News, business research, and ideas from the McCombs School of Business at The University of Texas at Austin. Learn more at www.mccombs.utexas.edu