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Date
10 April 2025
Author
Le Anh Nguyen
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In this edition of the Masterclasses in Managerial Excellence, we had the honor of welcoming Olivier Sibony, affiliated professor at HEC Paris and associate fellow of Oxford’s Saïd Business School. A former partner at McKinsey & Company for over 20 years, co-author with Daniel Kahneman of the bestseller “Noise”, he deconstructs received ideas about diversity in business. His new book “Diversity is Not What You Think” goes beyond conventional discourse to demonstrate how cognitive diversity can become a true strategic lever, revolutionizing our understanding of collective performance challenges.
From Rosa Parks to Businesses: the Evolution of the Concept of Diversity
The history of diversity begins with Rosa Parks in 1955 and Martin Luther King in 1963: a quest for justice and equality. But how did we move from this ethical imperative to the “business case” for diversity? “My perspective on diversity is that we should start by asking where we have an ethical imperative,” states Olivier with his characteristic rigor.
The conceptual transformation stems from an American legal problem. When affirmative action creates positive discrimination, the Supreme Court, facing the Allen Bakke case in 1978, invented a revolutionary justification: diversity has educational benefits for all. This “legal invention” spread to businesses, transforming a moral imperative into an economic argument.
Today, 99% of companies justify their diversity policy with a business case rather than ethical arguments. Capitalism has won the battle of ideas, but is this victory well-founded? This is the whole question Olivier raises.
The French Paradox: why Do Companies Resist?
Olivier highlights a troubling paradox: if gender stereotypes explained the lack of diversity, we should observe the same phenomenon everywhere. However, the figures reveal considerable disparities: 10% female CEOs in the CAC 40, but 42% in government, 80% young female magistrates, 33% female regional presidents.
“We cannot claim that a problem affecting all of society produces such radically different consequences” depending on the sector. The specific problem in companies requires a specific explanation: leadership stereotypes. This detailed data analysis reveals the complexity of the subject.
The intersection of gender stereotypes and leadership stereotypes creates this particular resistance in companies. The solution lies in transforming leader selection methods, not just in fighting prejudice.
The Five Levers of Organizational Transformation
Rather than changing mindsets – a long and uncertain endeavor – Olivier proposes to change processes. First lever: inclusion through the confrontation of ideas. American intelligence Red Teams or competing teams at L’Oréal create this dynamic. Micro-inclusions replace microaggressions: listening, involving, providing the opportunity to express oneself.
Second revolutionary lever: centralizing recruitment and abandoning intuition. “An interview is a very poor way to recruit”, states Olivier, citing a century of ignored research. The example of the startup CEO using online tests reveals unexpected talents: “people who perform much better than engineers from the best French schools”.
The method he advocates? Lowering prospecting costs to broaden sources. Instead of changing mindsets about Indian versus French engineers, “I’m changing my method, and you’ll find that Indians are better”. A pragmatic approach that hits the mark.
Beyond the Business Case: towards Cognitive Diversity
Traditional economic arguments prove fragile according to Olivier: resembling one’s clients can lead to segregation (Black bankers for Black clients), innovation through diversity would require an “extraordinarily colossal” impact to affect the bottom line.
The real revolution lies in cognitive diversity: diversity of experiences, backgrounds, and perspectives. This approach goes beyond demographic categories to address the true challenges of collective performance. Companies that transform their processes – selection methods, debate organization, team structure – naturally achieve more diversity without restrictive quotas.
As Olivier summarizes: “Reality changes, mindsets follow.” An inverted logic that overturns traditional approaches.
In a nutshell…
Here are the three major lessons to take away from this Masterclass with Olivier Sibony:
Distinguish between ethical imperative and business case: Clarifying diversity objectives allows for the adoption of the right methods and avoids contradictions between laudable intentions and disappointing results.
Transform processes rather than mindsets: Changing recruitment and organizational methods produces quick and lasting results, more effective than awareness campaigns.
Prioritize cognitive diversity: Focusing on the diversity of experiences and perspectives rather than demographic categories creates true complementarities and improves collective performance.
Don’t miss the next Masterclass!
Tags
Date
10 April 2025
Author
Le Anh Nguyen