Innovating for Diversity

CHAPTER 3The Virtuous Cycle of Innovation and Diversity

Innovation has long been a central driver of business growth; without it, entire industries become extinct. While there are many factors that contribute to innovation success, a diverse and inclusive culture that is open to change is paramount. In recent years the linkage between diversity and successful innovation has been well documented. However, the opposite relationship is less explored—how innovation can drive success in advancing diversity. The diversity, equity, and inclusion industry is a big business and more often focused on compliance rather than confronting the deeper, persistent challenges brought on by the Fixed Practices and Fixed Attitudes discussed in Chapter 1.

This chapter outlines a general innovation framework we will reference throughout the book in discussing case studies of companies and organizations creatively solving for diversity.

Key Concept: Diversity leads to greater innovation; and innovation drives improved diversity.

The Power of Innovation

Throughout business history in America and around the globe, innovation has been the catalyst for wholly new industries and profound wealth creation. In recent decades, brilliant, well executed ideas have transformed how we communicate, travel, invest, heal, learn, and work. Few aspects of everyday life are untouched by the accelerating pace of innovation fueled by the availability of venture capital (VC), private equity, sovereign wealth funds, ...