Harnessing diversity in teams

The case of L’Oréal’s product development teams illustrates how cross-border work groups can drive innovation. Teams that are diverse, largely autonomous, composed of highly educated specialists, and often working virtually are vital in a digital world, but research reveals an interesting paradox: the qualities that are required for success, such as diversity of values, perspectives, and approaches, are the same qualities that may undermine the effectiveness of these teams. To unleash the creative potential of diverse teams, proper staffing and training, team empowerment, and skills in team process management are crucial. In this chapter we review how global firms can leverage diverse and geographically dispersed teams, and the role of leadership and people management in facilitating this. We then broaden the perspective by looking at how global companies can promote diversity and inclusion throughout the organization. We conclude this chapter with a discussion of the strategies, approaches and capabilities that allow teams and organizations to leverage diversity and create an inclusive environment.