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Released: August 30, 2023
Researchers from Harvard Business School have published findings from a large-scale study investigating the impact of team diversity on project outcomes. Through an analysis of over 1,000 different projects across multiple industries, the study assessed relationships between the diversity of project teams and metrics like budget performance, schedule adherence and customer satisfaction.
Project team diversity was measured based on gender distribution and cultural/ethnic composition of members. Budget performance was considered as the percentage variance from original cost estimates, while schedule adherence referred to meeting originally planned timelines. Customer satisfaction drew on post-project ratings from clients.
Statistical analysis revealed projects with above-average gender diversity on teams demonstrated significantly stronger results. Specifically, budgets for these projects were found to be 19% more likely to come in at or under original estimates compared to projects with less gender-diverse makeup. Schedule adherence rates were also higher, with these diverse teams 16% more likely to complete implementation on time. Customer satisfaction ratings averaged 14% greater for projects staffed by gender-balanced groups.
Similar correlations emerged for projects employing culturally diverse teams, though effects were slightly smaller in magnitude. Budgets for cross-culturally diverse teams exhibited a 17% likelihood of coming in on or under forecast, while schedule performance saw a 14% greater chance of meeting deadlines. Customer evaluations reflected an 11% boost for projects using international or ethnically mixed groups.
The researchers suggest diverse teams may benefit projects by incorporating a broader range of skills, enhancing creativity and encouraging innovative problem-solving. Diverse viewpoints could also strengthen stakeholder relationships and help ensure delivered solutions fit varied customer needs.
With growing focus on inclusion across industries, these findings offer empirical support that diversity delivers clear Project benefits by strengthening delivery success metrics. When selecting project resources, the research indicates consideration of diversity factors could optimize project outcomes.
