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J Chua succinctly states Chua, R. Without the necessary organizational framework, intercultural training, and support, diverse teams will have difficulties becoming cohesive, innovative, and productive units. Select a cross-culturally competent team leader. Leading a multicultural team successfully requires competencies that go well beyond the technical knowledge and the leadership qualities usually required.

To be effective, leaders of multicultural teams need:. These intercultural competencies are best learned through cross-cultural training combined with personal work experience e. Select the team members. These selection criteria need to be clearly defined and transparently communicated to all team members. Make the kick-off phase personal. Start any project or team kick-off phase with a team event that gives members an opportunity to get to know each other personally, such as a shared meal.

Take the time to build relationships and trust. Personal relationships and trust are a central element of doing business in many cultures around the globe. Other cultures e. However, unless you are German and manage a team of Germans especially men , investing time to build trusting relationships is never wrong. By the way, even German men like to socialize and build relationships after work.

10 Companies Around the World That Are Embracing Diversity in a BIG Way

Learn about differences. While team members might have similar educations, professional experience, and work in the same industry, there are still considerable differences to be found between team members. It is those differences e. For example, a large American telecom company increased sales and retention of customers calling to Brazil by listening to its South American team member.

  1. Tri-Hard.
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  4. Managing Diversity: 10 Steps to Multicultural Team Success.

She explained that Brazilians like to take their time talking to friends and family back home. As a result, the company lowered the call rate, but still increased its profit because of the longer call times. Clarify expectations: Leaders: The process of discussing and clarifying expectations is a necessary step for any team, but is particularly crucial for multicultural teams.

Diverse employees will have different expectations about leadership due to factors such as age and professional or cultural background. Consider the varying patterns of expectations and common processes that need to be negotiated. Who expects what, and why? How will decisions be reached? Who decides ultimately? Who can voice criticism? Team members: The members need to be able to voice and discuss their expectations before some kind of common ground can be negotiated. Clarify potential conflicts and explore possible remedies. Washington Post. Retrieved 27 July Pew Research Center.

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    2. Empathetic leadership is key

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    Delivering growth through diversity in the workplace | McKinsey

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    Diversity in Management

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    Yet these top-quartile companies also have a greater proportion of women in line roles than do their fourth-quartile peers: 10 percent versus 1 percent of total executives, respectively Exhibit 3. Top-team ethnic and cultural diversity is correlated with profitability.

    In our data set, we looked at racial and cultural diversity in six countries where the definition of ethnic diversity was consistent and our data were reliable. As in , we found that companies with the most ethnically diverse executive teams—not only with respect to absolute representation but also of variety or mix of ethnicities 2 2.

    The penalty for not being diverse on both measures persists. Now, as previously, companies in the fourth quartile on both gender and ethnic diversity are more likely to underperform their industry peers on profitability: 29 percent in our data set. Ethnic and cultural diversity on executive teams is low. We focused on our US and UK data sets to examine ethnically and culturally diverse representation among US and UK companies, considering the pipeline starting with university graduates. Black Americans comprise 10 percent of US graduates but hold only 4 percent of senior-executive positions, Hispanics and Latinos comprise 8 percent of graduates versus 4 percent of executives, and for Asian Americans, the numbers are 7 percent of graduates versus 5 percent of executives.

    In the United Kingdom, the disparity is even greater: 22 percent of university students identify as black and minority ethnic, yet only 8 percent of UK executives in our sample do. Black women executives are underrepresented in line roles and may face a harder path to CEO. As discussed, within our US and UK data sets, overall representation of women on executive teams shows an apparent bias toward staff roles. Among our US sample, not only do women hold a disproportionately small share of line roles on executive teams but also women of color including Asian, black, and Latina women hold an even smaller share.

    Line roles versus staff roles on executive teams tend to differ in their ability to propel individuals to the CEO position, with line roles the more likely incubators of future CEOs. In our US sample, black female executives, specifically, are more than twice as likely to be in staff roles than in line roles, and our sample denotes an absence of black female CEOs. Other studies have found that black women suffer a double burden of bias that keeps them from the uppermost levels of corporate leadership.

    Underrepresentation on executive teams in general, and in line roles in particular, could be an important piece of this story. The correlation between gender and ethnic diversity and financial performance generally hold true across geographies, though with some variations in certain regions.

    Our data yielded some noteworthy findings concerning the country-level differences in executive-team diversity:. The share in the United States is 19 percent and in the United Kingdom is 15 percent. The same holds true for board positions, with Australian companies at 30 percent, US companies at 26 percent, and UK companies at 22 percent—and for women at the whole company level. The picture on ethnic and cultural diversity on executive teams is nuanced. Among our sample, South Africa has the highest levels of diverse representation on executive teams, with 16 percent of executive positions held by blacks.

    Singapore, the United Kingdom, and the United States follow South Africa with 11 to 12 percent of ethnically diverse executives. Ethnically diverse representation on UK and US executive teams increased by an average of six and five percentage points, respectively, since However, this was offset by declines in other geographies, leading to an overall lower increase of one percentage point across regions Exhibit 5.

    Our research confirms that gender, ethnic, and cultural diversity, particularly within executive teams, continue to be correlated to financial performance across multiple countries worldwide. In our report, our hypotheses about what drives this correlation were that more diverse companies are better able to attract top talent ; to improve their customer orientation , employee satisfaction, and decision making ; and to secure their license to operate — all of which we believe continue to be relevant.