A long way to go

It’s all very well to have diversity, but most people lack the tools for how to get the best out of a diverse team.

Instead the reverse is true and diversity can lead to an unlevel playing field, says Laura Liswood, secretary general of the Council of Women World Leaders, former senior advisor to Goldman Sachs and author of “The Loudest Duck”.

“We all bring ourselves, our unconscious selves to the workplace – this includes our perceptions, archetypes and biases. In the process of that, diversity has the potential to unlevel the playing field, certain people are advanced, and there is the potential to over or under-hear people,” Liswood says.

“One of the problems in diversity is people think it’s like Noah’s ark, you just get two of everything on the ark and it will all be fine. But the giraffe looks at the zebra and sees something so different. If you think like that you won’t get what you want from diversity.”

At the Thinking Ahead Institute cognitive diversity topical day, Liswood challenged the audience to think about a meeting when the way people are heard is equal. People either get under or over-heard, she says.

“We have got to Noah’s ark, we have diversity, but we haven’t taught people how to deal with it. We don’t have the tools to deal with heterogeneity.”

Sponsored Content

Liswood, who was previously managing director of global leadership and diversity at Goldman Sachs, gave some examples of how diversity can unlevel the playing field.

“You can have all the nationalities you want, but what does everyone actually think about each other? You go to Japan and what do they think about China or Korea, you go to England and what do they think about the French? What does an older generation really think about a younger generation – that they’re lazy, they don’t know anything, they need constant feedback. You get diversity but we don’t know how to deal with it.

“With regard to diversity in thinking it’s not whether you’re an extrovert or an introvert that is the issue, it’s not how you think about things, it’s how you react to people who are not like you.”

So, she says, diversity can unsettle the workplace.

“It’s about like and like. If I went to Oxford I’m more likely to look out for my new hire who also went to Oxford.”

In some ways it is up to managers to be aware of these differences, and of their own behaviours, and manage for that. While bonding is a really important part of creating a team culture, a manager is more likely to promote or give bonuses to those who they’ve bonded with. If bonding activities, for example drinking alcohol, can exclude certain people, then managers should bond in other ways so that when it comes to making decisions, it’s equal.

“That type of bonding is giving unlevel managerial access, and in a hierarchy, that has consequences,” she says.

“There is a bias to those you’ve bonded with. That doesn’t make you a bad manager, it makes you a human manager.”

Liswood also pointed out, though, that while the manager has 50 per cent responsibility to build on the relationship with employees, the individual also has a 50 per cent responsibility to further their own career, and can for example ask their manager out for a coffee.

“The point is, we all live in different worlds, and senior executives need to work out the worlds that people are living in within their organisations.”

Another example that Liswood gave was that of race. She says that research has shown people with a non-Anglo Saxon name need to send out 50 per cent more resumes to get a job.

“We all live in different worlds. A cab goes past me in NYC; an African American experiences that five times more than me. It’s a possibility for me but it’s a frequency for him. You can’t say we have the same experience,” she says.

So it’s not diversity on its own that will create a better workplace, but how people react to others that are not their archetype.

Managers need to use certain tools, like being a traffic cop and making people take turns in meetings, and if they don’t then diversity will disadvantage certain people.

“In a diverse organisation you have got to tell people they have a responsibility to get out of their comfort zone and speak up,” she says.

“If you let the conversation flow naturally the loudest person – i.e. the American – will speak the most. You need to know your people and manage them, be a traffic cop.”

Liswood advises the best tool a manager can have in their toolbox is to provide every employee with critical feedback.

“The performance difference between those that have received critical feedback and those that haven’t is massive. Managers find it easier to give critical feedback to those that are like them. It is hard to give it to those unlike them as it is unknown how they will take it,” she says. “A tool I highly recommend is three up and three down every three months. Tell employees three things they’re doing well, and three things they need to work on, and do it for everyone every three months. All critical feedback beyond the three months doesn’t change behaviour.”

Liswood says there needs to be more tools in the tool box to deal with the cognitive diversity that organisations aim to get to.

There are some circumstances where it is better to have homogeneity in a team, but Liswood says there are three requirements necessary for that to be the case: The problems are simple; communication is easy e.g. turn the screw; the environment doesn’t change e.g. if all you need to do is dig 50 holes, then just get 50 hole diggers.

Leave a Comment

Sort content by

DB dose needed to purge DC parasites

This month Australia celebrated 20 years of its compulsory superannuation guarantee system. Observing the past two decades, “entrepreneurial academic” Jack Gray has some advice for those rebooting their system, and it’s not defined contribution. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

POLL1

Have your say What is the collective noun for a group of global pension funds? * What is the collective noun for a group of fund managers? * The best results will be published next week. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Back to the future: short-selling ban lambasted

Cliff Asness must be a very stressed man. Not only has he been “mad as hell” for nearly three years (or is it mad again?) but also the reprise in responses by regulators around the globe to market crises, namely banning short selling, means he doesn’t have to write any original words in response.mrec4inarticleinline Sponsored

Texas Teachers examines incentive pay to staff

The Teacher Retirement System of Texas has reviewed the benchmarks it used to calculate investment staff compensation after concerns were raised over the level of bonuses it paid to senior staff earlier in the year.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Are pension funds really long-term investors?

Pension funds used to be considered long-term investors, but the reactionary behaviour of a recent prudence* of pension funds globally has changed my view of their time-horizons and subsequent role in capital markets. *Prudence is the newly-crowned collective noun for pension funds as per the competition in our newsroom. Have your say in our poll.

CalPERS looks to bolster ESG integration

CalPERS has instigated an extensive review of its environmental, social and governance policies and practices and its move towards fuller integration of ESG factors into its investment decision-making which will include an overhaul of its procurement policies for external managers.mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

Previous