How diverse teams unlock product innovation

Product teams composed of individuals with diverse perspectives, backgrounds, identities, and work styles bring a rich tapestry of expertise and varied creative thinking methods. This diversity is not about ticking boxes or meeting quotas; it’s about enriching the team’s intellectual and creative fabric.

In today’s rapidly evolving marketplace, the ability to innovate is not just a competitive advantage; it’s a necessity. Amidst this landscape, the composition of teams becomes a critical factor for success. Research by the World Economic Forum underscores this point: Companies with above-average diversity scores drive 45% of their average revenue from product innovation, compared to just 26% for those with below-average diversity scores[1]. Similarly, a study by the Boston Consulting Group highlights that companies with more diverse management teams have 19% higher revenues due to innovation[2]. This data presents a compelling case for the intentional design of innovative teams that are both inclusive and diverse. When diverse teams collaborate, the results are often extraordinary: unexpected ideas surface and radically different product opportunities are identified, which can accelerate customer and business outcomes.

In the world of product management, there is often a tension between the rapid delivery of agile development and the need for time and space to do creative, big-picture thinking. Agile methodologies, while efficient, can sometimes constrain the team’s ability to dedicate time and space to generate groundbreaking ideas. This challenge underscores the importance of carefully crafting product teams to maximize their creative potential.

The advantages of diversity in innovation are manifold.

Research has shown that diverse teams have a significant advantage when it comes to understanding and catering to the needs of a diverse customer base. When teams are comprised of individuals from various cultures, genders, and backgrounds, they possess a broader range of experiences and perspectives that allow them to better empathize with the needs of different customer segments. This empathy translates into developing products that are better aligned with the unique requirements of diverse consumers.

Moreover, diversity in teams promotes a growth mindset, which encourages members to question the status quo and embrace new ideas. When team members bring different backgrounds and experiences to tackle a problem, they introduce fresh perspectives that can stimulate innovative thinking. This environment of open-mindedness enables more and varied contributions.

Finally, diverse teams are better equipped to anticipate shifts in consumer trends and adapt to changes in the market. This agility results from the collective experiences of team members and their willingness to evolve their perspectives in the face of new inputs. Thus, diversity in teams not only fosters a culture of innovation but also promotes forward-thinking and adaptability, which is critical in being an inspiring, innovative leader.

Leaders also need to think more broadly about how they define diversity to deliver broader benefits for their customers. Diversity in teams can come from team members having distinct learning styles, dedication to excel in pursuits outside of work, or even just changing career paths.  One of the highest-performing teams I have led included multiple people whose professional backgrounds involved previous work in an entirely unrelated field. For example, I hired a leader for my QA team who had graduated from the Culinary Institute of America and had been a professional dessert chef. He showed a unique blend of art and science that gave him a growth mindset when it came to fixing problems.  A program manager I brought onto the team also served as a court-appointed child advocate for children in foster care. Her high empathy levels made her an invaluable representative of the customer in every prioritization and trade-off discussion. I spent thirteen years in the film industry and am a Director’s Guild of America member. This initial career gave me invaluable training to lead large organizations, deal with ambiguity, and creatively solve problems.

Conformity is the enemy of diversity and undermines innovation.

Diverse teams are less prone to “groupthink” and more likely to consider a broader range of solutions before making decisions. In diverse teams, the likelihood of groupthink – where the desire for harmony or conformity leads to dysfunctional decision-making – is significantly reduced. Disrupting this kind of “go along and get along” consensus-driven culture can enhance team decision-making processes. This leads to more thoughtful, well-rounded, and innovative outcomes. Similarly, stacking the team with too many “experts” can also limit the boundaries of solution design, especially if it limits a team’s willingness to challenge that authority. Diverse teams are more adept at recognizing and challenging inherent personal, cultural, or systemic biases. This awareness helps make more objective and balanced decisions about the product.

Diversity of thinking styles across a product team can also supercharge innovation. Teams that blend different thinking styles (analytical, creative, logical, intuitive) are better equipped to approach problems from multiple angles, leading to more comprehensive and effective solutions. Different thinking styles stimulate creativity in distinct ways. For example, lateral thinking can lead to more radical, groundbreaking ideas, while analogous thinking, which involves drawing parallels from one domain to solve problems in another, can spark creative solutions through metaphorical or comparative thinking. Associative thinkers make connections between seemingly unrelated ideas to identify novel ideas. Each thinking style approaches problems differently, which can be incredibly beneficial in ideation and problem-solving.   

Why is addressing diversity in the workplace such a complex challenge?

Diversity encompasses many dimensions, and companies often struggle to embrace them all. Addressing diversity in the workplace is a complex challenge that requires a more profound, ongoing commitment to inclusivity rather than treating it as a quota to be met. While many companies aim to hire a diverse workforce, more is needed to achieve the desired outcomes. It is essential to create an environment that allows everyone to bring their experiences, perspectives, and questions into the discussion.

Without training and awareness programs, cultural norms can continue influencing how people are received when raising unique points of view or novel ideas. It is crucial to make a deliberate effort to navigate through these differences and create an inclusive work culture. A diverse workforce unites individuals from various cultural backgrounds, each with their own values, traditions, and communication styles. Therefore, it is essential to recognize and appreciate these differences to foster a productive and inclusive work environment.

Hiring a diverse workforce without encouraging individuality can lead to high turnover rates among underrepresented groups. Companies must focus on the metrics of diversity hiring and acknowledge the outcomes they expect from their DEI initiatives. The efforts should not stop when the recruiting KPIs have been met, but instead, a comprehensive plan should be in place to retain these hires. Investing in employee training and development, mentorship programs, and leadership opportunities can create a more inclusive work environment that supports the growth and success of all employees.

Creating an environment for inclusive product management takes conscious effort.

Leaders must intentionally create an inclusive environment where all voices are heard and valued. This includes making time and space to encourage creative thinking and brainstorming, even in agile environments where the focus is often on speed and efficiency. While it’s common for people to consider “icebreakers” to encourage employee engagement within a corporate setting, meetings less commonly include a creative thinking exercise or creative project to reset the team from operational thinking mode to creative problem-solving mode. Leaders should encourage team members to share their unique perspectives and ideas and encourage taking risks and thoughtful experimentation.

As leaders in the field of product management, it is our responsibility to create environments that not only embrace different perspectives but actively seek them out. For instance, with fewer diverse voices represented in AI development, we risk delivering less relevant products to customers. Regular training and awareness programs can help product team members evaluate machine-generated output fairly, understand the importance of soliciting new inputs and diverse perspectives, recognize when unconscious bias is present in discussions, and learn how to foster an environment that engages and retains talent and services customers effectively. Regularly exposing team members to other employees tasked with sales, customer service, and support can prompt innovative ideas for improved service design or uncover unexpected customer challenges. Companies that require product teams to work the “front lines” side by side with customer-facing employees increase empathy and improve customer engagement[3].

Developing the appropriate informal and transparent communication forums with integrative feedback loops can facilitate idea sharing and encourage out-of-cycle concepts to emerge. For instance, in a team Slack channel, a kernel of an idea can evolve with some give and take from fellow team members before it is brought to customers, stakeholders, and partners to explore further and develop. Supported by simple guidelines – such as encouraging teammates to use phrases like “yes, and…” and “how might we” when testing a concept – these channels will encourage everyone on the team to feel safe contributing while welcoming new voices to the ideation process.

Throughout my career, which has been centered around launching new product innovations, I’ve observed first-hand the power of diversity in teams. When we intentionally include different voices in our product development efforts, we open the doors to a world of creativity and innovation that can lead to groundbreaking products and services, ultimately driving greater success and competitiveness in the market. Embedding inclusivity into the core values of the organization is crucial. This means going beyond mere acceptance of diversity to actively celebrating and seeking it out.

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