Betting on the Crowd: The Intelligence of Diversity
The power of diverse groups to make better decisions than non-diverse groups is one of the most potent ideas to come along in a generation and is currently in the process of upending the way business is conducted. From Google to Procter & Gamble – and much of the Fortune 500 in between – the collective wisdom of the diverse crowd is being applied to everything from search engines to R&D, and this only the beginning. Nowhere is the application of this notion more meaningful than in the area of organizational diversity. This paper will explore how the diverse-group decision-making idea (as described by Surowiecki in the Wisdom of Crowds and Cass Sunstein in Infotopia) allows for a radically different approach to getting diversity integrated in the organization. Instead of a moral-based rationale for diversity, this approach provides a rationale based purely on business considerations while bringing diverse voices into the organization. Its implementation in companies such as Daimler-Chrylser and ANZ Bank, will also be explored.
Keywords: Activating Diversity, Wisdom of Crowds, Decision-Making, Business Case
Managing Director, Diversiteria