Posted on 06/30/2024 2:33:30 AM PDT by RoosterRedux
When management consulting firm McKinsey declared in 2015 that it had found a link between profits and executive racial and gender diversity, it was a breakthrough. The research was used by investors, lobbyists and regulators to push for more women and minority groups on boards, and to justify investing in companies that appointed them.
Unfortunately, the research doesn’t show what everyone thought it showed.
...
Since 2015, the approach has been tested in the fire of the marketplace and failed. Academics have tried to repeat McKinsey’s findings and failed, concluding that there is in fact no link between profitability and executive diversity. And the methodology of McKinsey’s early studies, which helped create the widespread belief that diversity is good for profits, is being questioned.
...
The trouble is that McKinsey behaves as though the studies do show causation, constantly talking of the corporate benefits of diversity.
Even the correlation is in doubt. Academics can’t replicate McKinsey’s study precisely, because it keeps secret the names of the companies it used. But a paper published this year finds that McKinsey’s methodology doesn’t show benefits from diversity for S&P 500 companies for a range of profitability metrics. It isn’t that a lack of diversity is good for profits either, it’s just there’s no link.
...
Finally, correlation is not causation! McKinsey repeatedly says in its study that it only found a correlation. The Aztecs mistook correlation for causation with tragic results, cutting out the heart of a victim to rekindle fire every 52 years in order to ensure the world’s survival. There was a strong correlation between the human sacrifice and the world not ending—but no causation.
Investors don’t risk having vital organs removed, but they should pay more attention to the studies they rely on.
(Excerpt) Read more at wsj.com ...
The correlation would be more correctly ‘ in spite of’
Meritocracy = Success = Profits
All else is destructive , rent seeking, claptrap.
Thus ends the lesson.
They used unqualified diversity hires for this study.
diversity makes us all sick, its affirmative action on steroids
My first ever introduction to “diversity” was in company quality circles. The idea was to get a diverse group of people involved in producing products to improve the production process. Prior to this, and for decades going back, only the product “experts” were included. The line workers were always left out as they were just hands and fingers assembling stuff and what did they know? This “diversity” approach was hugely successful*. Next thing I knew, the word had been picked up by HR and changed to mean, “people who are not white, Christian or who speak English.”
* At a design review I brought in a cute young girl tasked with assembling the product. I was afraid they’d eat her alive and there was some snickering. She brought along the unassembled chassis, a tiny screw, a screwdriver and her work instruction. When it was her turn to talk, she sweetly asked the chief engineer if he’d put that screw into the proper place. He read the instruction then tried. Hilarity ensued. There was no way to do it. The screw was almost completely hidden between the chassis wall and under a transformer. After that they grudgingly included production in design reviews.
In reality, anything the left says is good is the exact opposite. Same thing when it comes to the federal government.
Anybody who believed that propaganda is a fool. (And P. T. Barnum was right.)
Diversity yielded Black led City States that are a disaster but which bring on the end to Progressive rule of the country
“The studies were already performed repeatedly and reliably over the past 50 years: the NBA and the NFL.”
Perhaps you’re on to something. Maybe the study only used the NBA, which is, by far, the most diverse large, successful, business (don’t know the exact number, but somewhere between 80% and 90% black - can’t beat that for diversity). And so they concluded that if corporate America was the same, they would be as successful.
That is because these "experts" are diversity hires.
Who couldn’t have seen this?? Hire less qualified individuals and just watch things improve!!
They did a flawed study to show that diversity improves profitability. Not only was their study biased from the get-go (a no-no in the scientific method), these academics failed to see that the profit in their study was realized before the diversity program was implemented.
How do you get rich with the Diversity Crowd that has an average IQ of 70?
Diversity achieved through affirmative action or quotas will akways lead to poor performance.
You want excellence? Try the merit system in a free-market environment.
And if a strictly merit and market based system does not result in a diverse team, that means the diverse groups that make up that society are not equally talented in certain areas.
Passing over far better qualified candidates, because they’re White, for under- or un-qualified DEI hires will never work - and these companies well know it.
That’s why the government has to force it.
Reminds me California Gov. Newsom’s constant claim that raising the minimum wage to $20/hour for fast food workers would “give them a path to a good middle class life.”
The reality, of course, has been entirely different with 10,000 fast food workers laid off since the bill went into effect - and fast food closures all over the state, along with self-serve kiosks and automation being installed.
Hoover Institute:
“California Loses Nearly 10,000 Fast-Food Jobs After $20 Minimum Wage Signed Last Fall”
Only someone wholly ignorant of Economics 101 would have not have seen the result, such as Newsom for example.
He’ll bring this nation wide if he is ever (God Forbid) elected POTUS.
Just what the hell does that mean???
Diversity based on COMPETENCE and the contest of ideas, not forced diversity based on skin color.
Diversity is nothing more than the leftist/neoCON sledgehammer to destroy Western Christendom. Because these people are satanic and they hate Christianity.
WSJ is DEI diversity compliant so the affirmtive action analysts are too dumb to realize the fault in their reasoning. It is like a snake eating its own tail.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.