Why should leaders improve team performance and inclusivity?

In a world that is becoming more diverse and interconnected, a team’s effectiveness heavily depends on its inclusivity and diversity. Effective leadership is vital for promoting team cohesion, encouraging innovation, and establishing a setting where every member feels appreciated. Initiatives such as PENTATEAMS, which aim to promote team leadership and interpersonal dynamics, are key in this endeavour.

Diversity & Inclusion: Key to success

The heart of PENTATEAMS lies in Diversity and Inclusion (D&I) policies and their positive impact on productivity and social impact. Numerous studies show that diverse teams, with various perspectives, outperform homogeneous teams in innovation, decision-making, and problem-solving.

A prominent example is Google’s Project Aristotle, which analyzed over 180 teams and found that psychological safety was the key factor for team success. Teams where members feel comfortable sharing ideas, expressing opinions, and making mistakes without fear of judgment perform significantly better. This finding highlights the importance of creating inclusive, safe environments to foster organizational success.

Aligned with these insights, PENTATEAMS integrates activities centered on inclusive leadership, improving interpersonal relationships, and training leaders to manage diverse teams effectively. The project fosters the creation of inclusive spaces where all team members feel valued and safe to contribute. Beyond improving productivity, PENTATEAMS also strives to generate a positive social impact by promoting these principles of inclusion.

The benefits of diversity

The benefits of diversity in teams are well documented in academic research. A study by McKinsey & Company in 2020, titled “Diversity Wins: How Inclusion Matters,” reinforces these findings. Key takeaways from the study include:

  • The study analyzed data from over 1,000 companies globally.
  • Companies with higher gender and ethnic diversity are more likely to achieve superior financial performance.
  • Companies in the top quartile for gender diversity are 25% more likely to have above-average profitability.
  • Companies in the top quartile for ethnic and racial diversity are 36% more likely to outperform their competitors in profitability.

This study underscores the importance of promoting diversity as an ethical value and a strategic factor in organizational success. Leaders must recognize the importance of diversity and inclusion in teams, which is crucial for organizational success. By fostering diversity, leaders can unlock their team’s full potential, leading to not only better results but also a broader and more positive social impact.

Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or Agence Erasmus+ France / Education Formation. Neither the European Union nor the grating authority can be held responsible for them. Project Number: 2023-1-FR01-KA220-VET-000152480

All resources are published under the Creative Commons License CC BY-NC 4.0

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