The case against diversity

The Economist ^ | June 9th 2010 | Schumpeter

[unclebankster]

Tesco's successful succession shows that the advocates of diversity in the boardroom overstate their case

SIR TERRY LEAHY, who announced that he will retire as Tesco's chief executive next March, is one of Britain's great businessmen. During his 14 years at the helm, Tesco has become Britain's biggest food retailer, its biggest private-sector employer, and one of its most innovative companies. Over and over again, it has anticipated shifts in consumer demand, providing smaller "Metro" stores, healthier food and "ethically sourced" products.

Tesco has, rightly, tried to replace Sir Terry with a Sir Terry clone. Philip Clarke has had a very similar career, starting on the shop floor and working his way up. Mr Clarke even comes from the same city, Liverpool (the big difference between the two men is that Sir Terry supports Everton Football Club and Mr Clarke supports Liverpool).

What does this tell us about the mantra about diversity, which we hear endlessly repeated by business-school professors, diversity consultants etc? There is certainly a prudential case for diversity. Companies should cast as wide a net for talent as possible. BP would be (a bit) better off had it had more American directors to throw at America's media wolves.

But diversity's proponents need to grapple with the Liverpool effect. Some business skills are concentrated in certain places, certain groups of people, and certain cultures. Daimler owes its success to the fact that it is full of German engineers, just as Google owes its success to the fact that it is full of Californian geeks. Narrowness can be a source of strength and cohesion, not a sign of weakness.

Diversity is a technique, not an end in itself. It needs to be balanced against other considerations, such as the clustering of skills. Companies should block their ears to diversity consultants, who think that there is a single solution to every problem, and to proponents of affirmative action, who will not be happy until the corporate sector is "representative" of the population as a whole.

We need much more diversity of thought on the subject of "diversity".

[unclebankster]

"We need much more diversity of thought on the subject of "diversity"."

AND I'll still HATE that word till the day I die!

[neutrino]

Thank you for posting this.

Could this article mark a change? Have we, perhaps, recognized that the nonsense about diversity always representing an end preferable to all others is wrong? I hope so.

I, too, despise the word diversity as well as its foolish proponents.

[I Buried My Guns]

For many years now, diversity has simply been a code word for "too many white people".

Most Americans are apathetic and care about little more than their immediate concerns, but I sense an awaking of civic involvement lately (thanks Obama!), and one of the issues they are taking offense to is the PC monster that says people of color automatically add value to any group or organization irrespective of their skills and values, coupled with the idea that the presence of white people automatically decrease that value.

I say let folks rise or fail according to their merits, but wait, common sense is the enemy of PC, just light sunshine is the enemy of moldy fungus.

[unclebankster]

“I, too, despise the word diversity as well as its foolish proponents.”

I should’ve focused on those liberal proponents instead of the word diversity.

The PC police/thugs are the real issue.

[SamuraiScot]

For many years now, diversity has simply been a code word for "too many white people".

In my experience, diversity is a synonym for "does not achieve results."

Similarly, Thomas Sowell defined "biligual" as "does not speak English."

[neutrino]

I say let folks rise or fail according to their merits

Exactly. That's the American way - or at least, it was. It's the way to give honest effort and ability the reward it has earned.

Which is why the liberals find it so offensive.

[MEGoody]

I’m all for diversity in the workplace. But when diversity trumps being the best person for the job, then we have a problem.

[I Buried My Guns]

But when diversity trumps being the best person for the job, then we have a problem.

It does, and we do.

It is that way by design. There is no measurable value to that godless idol worshipped by the left called diversity, except maybe the value derived from disenfranchising the pale-hued, productive members of society, which makes liberals happy for some reason.

[Free Vulcan]

I prefer balkanization, because that’s what it really is.