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Body of Knowledge · Techniques and Models

Diversity and decision quality

The formal argument that groups with diverse perspectives outperform groups of uniformly able people on complex problems, together with the widely cited consultancy studies that link workforce diversity to financial performance. The formal argument depends on its assumptions, and the consultancy findings have not survived independent re-analysis.

Evidence grade: contested Useful but disputed; the limits below say what is contested.

Use it when

The make-up of the rooms where decisions are taken, treated as a matter of decision quality. Homogeneous groups demonstrably converge fast, and can converge on the wrong answer.

Where it stops working

The strong quantitative claims are not established. The equity case does not rest on them, and a case that overclaims is easier to dismiss.

Where the standard uses it

Sources

  • Jeremiah Green and John R. M. Hand. McKinsey's Diversity Matters/Delivers/Wins Results Revisited. Econ Journal Watch, 21(1), 2024. In the bibliography
  • Scott E. Page. The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies. Princeton University Press, 2007. In the bibliography

Used alongside it

Engineering Management Academy. (2026). Diversity and decision quality. In Engineering Management Academy Body of Knowledge (Version 3.1, TEC.diversity-and-decision-quality). https://www.engineeringmanagement.academy/body-of-knowledge/techniques/diversity-and-decision-quality