The Future of Tech is Sustainable, Diverse & Makes a Difference - - PowerPoint PPT Presentation

Mark Aufflick @mark_sabbatical

The Future of Tech is Sustainable, Diverse & Makes a Difference

mark@htb.io

–The Diversity Paradox: The Boston Consulting Group, bteam.org

“More talent. Broader perspectives. Better innovation. A healthier bottom line.”

Management Diversity Organisational Diversity

Management Diversity Organisational Diversity

40 80 120 160 Returns on Equity (ROE)

Executive Board Gender Diversity Top Quartile Bottom Quartile 53% more ROE

McKinsey & Company report in 2010

Management Diversity Organisational Diversity

Executive Board Gender Diversity 53% more ROE

& EBIT, Stock Price

Management Diversity Organisational Diversity

Executive Board Gender Diversity Nationality Diversity

positively associated with ROE (p < 0.05)

53% more ROE

& EBIT, Stock Price

Management Diversity Organisational Diversity

Executive Board Gender Diversity Reputational Risk

📊 likelihood of financial restatement

53% more ROE

& EBIT, Stock Price

Nationality Diversity

positively associated with ROA (p < 0.05)

Management Diversity Organisational Diversity

Executive Board Gender Diversity Reputational Risk

📊 likelihood of financial restatement & embezzlement; illegal share buybacks…

53% more ROE

& EBIT, Stock Price

Nationality Diversity

positively associated with ROA (p < 0.05)

Management Diversity Organisational Diversity

Nationality Diversity

positively associated with ROA (p < 0.05)

Executive Board Gender Diversity Reputational Risk

📊 likelihood of financial restatement & embezzlement; illegal share buybacks…

53% more ROE

& EBIT, Stock Price

Management Diversity Organisational Diversity

Executive Board Gender Diversity Reputational Risk

📊 likelihood of financial restatement & embezzlement; illegal share buybacks…

More Innovation 53% more ROE

& EBIT, Stock Price

Nationality Diversity

positively associated with ROA (p < 0.05)

Management Diversity Organisational Diversity

Executive Board Gender Diversity Reputational Risk

📊 likelihood of financial restatement & embezzlement; illegal share buybacks…

53% more ROE

& EBIT, Stock Price

More Sales Nationality Diversity

positively associated with ROA (p < 0.05)

More Innovation

More Sales More Innovation

Management Diversity Organisational Diversity

Nationality Diversity

positively associated with ROA (p < 0.05)

Executive Board Gender Diversity Reputational Risk

📊 likelihood of financial restatement & embezzlement; illegal share buybacks…

53% more ROE

& EBIT, Stock Price

Increase in diversity

9%

REVENUE

9%

REVENUE

3%

REVENUE

1

%

Gender Ethnic

American Sociological Review study of

• ver 1,000 organisations, published in

2009, found that a racially and gender diverse workforce was positively associated with more customers, increased sales revenue, greater relative profits, and greater market share

Management Diversity Organisational Diversity

Executive Board Gender Diversity Reputational Risk

📊 likelihood of financial restatement & embezzlement; illegal share buybacks…

53% more ROE

& EBIT, Stock Price

9%

9%

3%

1

More Sales

• Nationality Diversity

positively associated with ROA (p < 0.05)

More Sales More Innovation

Management Diversity Organisational Diversity

Executive Board Gender Diversity

& firm nationality diversity (p < 0.10)

Reputational Risk

📊 likelihood of financial restatement & embezzlement; illegal share buybacks…

53% more ROE

& EBIT, Stock Price

9%

9%

3%

1

Nationality Diversity

positively associated with ROA (p < 0.05)

More Sales

• More Sales

More Innovation

Management Diversity Organisational Diversity

Executive Board Gender Diversity

& firm nationality diversity (p < 0.10)

Reputational Risk

📊 likelihood of financial restatement & embezzlement; illegal share buybacks…

53% more ROE

& EBIT, Stock Price

9%

9%

3%

1

Nationality Diversity

positively associated with ROA (p < 0.05)

More Sales

• More Sales

More Innovation

Management Diversity Organisational Diversity

Executive Board Gender Diversity

& firm nationality diversity (p < 0.10)

Reputational Risk

📊 likelihood of financial restatement & embezzlement; illegal share buybacks…

53% more ROE

& EBIT, Stock Price

9%

9%

3%

1

Nationality Diversity

positively associated with ROA (p < 0.05)

More Sales

• More Sales

More Innovation

8,000,000,000 USD

Psychology

Diversity training Measuring representation

–Patricia Devine 1989, Journal of Personality and Social Psychology 56:5–18

“Prejudiced attitudes and beliefs can

• perate without a person’s

awareness or endorsement.”

–Paluck & Green 2009, Annual Review of Psychology, citing Banaji MR.

• 2001. “Implicit attitudes can be measured”, The Nature of

Remembering, American Psychological Association

“(un)consciousness-raising” strategies aim to combat implicit prejudice through thought suppression, awareness, reconditioning”

Instruction to suppress stereotypes has the opposite effect

(Galinsky & Moskowitz 2000; Kulik et al. 2000)

(Greenwald et al. 1998, Dasgupta & Greenwald 2001, Wittenbrink et al. 2001)

And that’s the carefully constructed theoretical studies…

Representation

–The Diversity Paradox: The Boston Consulting Group, bteam.org

“exclusively focusing on and measuring the representation of minority groups in an effort to create a diverse staff not only fails to accomplish that end but also prevents companies from capturing the value of difference.”

–Financial Times paraphrase of BCG report into UK Company Diversity

“Men were more likely than women to believe that their company was committed to gender diversity and were also more likely to believe that men were involved in championing gender diversity at their company.”

Representation is not the same as Diversity

–Aubrey Blanche, Tech Firms Striving For Diversity Fixate On The Wrong Metric, Wired, May 2017

–Why Diversity Programs Fail—Dobbin & Kalev, HBR July 2016

“Interventions such as targeted college recruitment, mentoring programs, self- managed teams, and task forces have boosted diversity in businesses. Some of the most effective solutions aren’t even designed with diversity in mind.”

Self worth

Claude Steele, Vol. 21: Social Psychological Studies of the Self: Perspectives and Programs 1998

Contact Hypothesis

Gordon Allport

Hypothesis: Larger Wholistic Cultural Change Is Needed Organisations as Organisms

Social and durable products li fjnancial performance Diversity and female leadership Lead by example Life long learning

Your Company name

Honest and fostering fairness Employer

• f choice

W h y w e ’ r e i n b u s i n e s s

T h e w a y w e d

• b

u s i n e s s H

• w

t

• s

t a y i n b u s i n e s s

to benefjt from the opportunities provided by the SDGs to scale and In order to yield the most benefjt from the established strategic SDG

2.2 Establishing strategic SDG linkages

with fjrm specifjc strategic topics. Using the SDGs as a starting point The fjgure below provides an example of how company X can link its

an example of a random company

–Franc van den Berg Partner EY Climate Change and Sustainability Services

“When companies focus on a purpose that is rooted in creating value for others, improving the world we live in and inspiring the organization at all levels, they increase their ability to drive profits and create sustainable value.”

#1 #3

2017, 2016, 12 years on list

increased understanding of what it means to behave inclusively how to work more effectively with

• thers to achieve outcomes

better enabling … leveraging diversity in the workforce

Disruptive Innovation for Social Change

Disruptive Innovation for Social Change

• In the social sector, too much

Disruptive Innovation for Social Change

Disruptive Innovation for Social Change

• In the social sector, too much

Catalytic innovators share five qualities:

• 1. They create systemic social change through scaling and replication.
• 2. They meet a need that is either overserved (because the existing solution

is more complex than many people require) or not served at all.

• 3. They offer products and services that are simpler and less costly than

existing alternatives and may be perceived as having a lower level of performance, but users consider them to be good enough.

• 4. They generate resources, such as donations, grants, volunteer manpower,
• r intellectual capital, in ways that are initially unattractive to incumbent

competitors.

• 5. They are often ignored, disparaged, or even encouraged by existing

players for whom the business model is unprofitable or otherwise unattractive and who therefore avoid or retreat from the market segment.

Thank you!

Mark Aufflick @mark_sabbatical mark@htb.io