Why transformed companies win, each and every time
Transformed businesses don't just meet human capital diversity goals; they also meet (and usually exceed) performance targets too. That is not just an opinion, but a clear-cut fact.
McKinsey's 2015 Why Diversity Matters survey, which is based on the feedback from 366 public companies worldwide, has found that businesses in the top quartile for ethnic and racial diversity in management were 33% more likely to outperform their homogenous peers on profitability.
Recent reports have since reiterated this. The 2018 How Diverse Leadership Teams Boost Innovation assessment by the Boston Consulting Group, for instance, shows that companies with diverse management teams are more innovative and productive. As a result, they enjoy up to 19% higher revenues than businesses with non-diverse management teams.
In other words, the most successful companies are those that represent all of their customers, not just a select few.
Incorporating a variety of cultural and racial backgrounds, genders and perceptions in your teams, boards and executive committees, enables you to serve all audiences and develop solutions that cater to a much-wider market.
This turns your business into an agent of change that maximises every opportunity in a highly competitive market. Create an environment where your people are unlimited in their opportunities, growth and development and you will have a company with unlimited potential.
In short, we regard transformation as the process of acknowledging the new and working towards an equitable paradigm whilst preserving traditional practices and improving our clients' experiences. Agility is a key ingredient in this.
Embracing a corporate culture of transformation and diversity, and working around it every day, has done wonders for our company's ability to adapt to changes quickly.
We are not alone in this: Deloitte's 2018 Diversity and Inclusion Revolution survey notes that ventures with transformed and diverse teams are six times more agile and eight times more likely to achieve better financial outcomes.
This isn't rocket science. The more diverse your team, the better you can deal with market fluctuations and disruptive elements. Being overwhelmingly black, overwhelmingly female, and overwhelming South African truly helps us adapt to an ever-changing world for Africa, especially to the exciting changes in store for the continent as it continues on its upward growth trajectory.
Another winner of corporate transformation is the ability to develop new and innovative solutions to ensure our services continue to add value to our clients' businesses.
This is what makes us modern. All of this makes inclusive companies like ours far more attractive amongst global players, for instance, as investment targets, joint venture partners, and business associates. Earlier this month, CMS - with 4,800 lawyers in 43 countries, one of the largest law firms in the world - expanded its southern African footprint, and they did so through us.
Our excellent track record in the broadest sense of the word is why they picked us. Since our inception, we have been working with some of the most prolific companies in the region, from South Africa's largest banks to global natural resources companies and international advertising agencies.
Besides helping them with all their legal and tax matters, we are working with the government, too.
*Moosa is a banking and finance lawyer specialising in finance transactions and insolvency.
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