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Diversity alone is not enough: it takes diversity management

Diversity needs leadership. Only through targeted diversity management does variety drive innovation and become a competitive advantage. What that means in practice, and where it often still falls short.

Leading diversity, not just promoting it

Diversity is now part of everyday life in companies. But it doesn't automatically become an advantage. As already described in the article Diversity as a success factor, it only takes effect through targeted strategies. This is exactly where diversity management comes in.

Diversity management (DiM) is a strategic approach that not only acknowledges differences between people but actively fosters and deliberately uses them. It aims to strengthen equal opportunity, reduce discrimination and turn the potential of a diverse workforce into measurable success (Bendl et al., 2012a, p. 14; Hermann, 2012, p. 266).

What diversity management means

Diversity management is the strategic way of handling diversity within a company. It's not just about accepting differences such as background, age or gender, but about actively fostering them and integrating them into the organisation. The goal is to create equal opportunity, avoid discrimination and make use of employees' potential for the company's success (Bendl et al., 2012a, p. 14; Hofmann, 2012, p. 30).

But how can diversity be managed so that it actually becomes an economic advantage?

By not merely tolerating diversity but understanding it as a strategic success factor. The economic benefit is increasingly coming into focus here, known as the “business case for diversity”. Diverse teams often make better decisions, are seen as more creative and stay closer to the needs of a diverse customer base.

For diversity management to have an effect, clear structures are needed. An appreciative leadership culture, backing from senior management and concrete measures in training, communication and staff development are essential (Hermann, 2012, p. 291). DiM can only work sustainably if diversity is anchored in the corporate culture and employees are actively involved.

More than organisational hypocrisy

But if diversity is understood only as a means to maximise profit, its social and cultural core is lost. Diversity management then becomes a PR tool and a symbolic gesture (see Hermann, 2012, p. 291).

Warmuth (2015, p. 209 f.) calls this phenomenon organisational hypocrisy: diversity is visibly staged for the outside world without really being lived internally. Genuine change only comes about once diversity becomes lived practice, as part of responsible corporate governance (see Hermann, 2012, p. 291).

Without this foundation, it often stops at well-meaning mission statements or workshops with no lasting effect. DiM then degrades into a symbolic gesture, an organisational myth: a routine that sounds good but has no real effect (Hermann, 2012, p. 286). Genuine change only happens once diversity is lived day to day.

Knowing the risks and counteracting them

Diversity brings potential, but also challenges. Where are the most common stumbling blocks, and how can they be overcome?

A key problem is the formation of groups. People tend to identify with their in-group and exclude others. This so-called in-group effect can heighten tension within a team (Ehrke & Steffens, 2015, p. 213). Awareness and targeted team development help to recognise such dynamics and counteract them.

Another obstacle is the difficulty of measurement. While data on gender or age is usually available, less visible characteristics such as worldview, sexual orientation or disability are often overlooked (Bendl et al., 2012b, p. 80).

Diversity doesn't happen by itself. It has to be shaped through effective diversity management. Diversity management creates structures that foster innovation, enable fair working conditions and contribute to long-term business success. For organisations that want to go beyond symbolic commitments, DiM offers a clear path: making diversity visible, creating the right conditions and actively working towards an inclusive culture.

Diversity begins in everyday life, and that's exactly where VielfaltWerk comes in.

Bibliography

This article is based on the academic work by Bircher, F. (2018): Generiert Behinderungs-Diversität Synergieeffekte im Unternehmen? GRIN Verlag. The content has been adapted for practical use and further developed.

References

  • Bendl, R., Hanappi-Egger, E., & Hofmann, R. (2012a). Diversität und Diversitätsmanagement: Ein vielschichtiges Thema. Vienna: Facultas.
  • Bendl, R., Eberherr, H., & Mensi-Klarbach, H. (2012b). Vertiefende Betrachtungen zu ausgewählten Diversitätsdimensionen. In R. Bendl, E. Hanappi-Egger, & R. Hofmann (Eds.), Diversität und Diversitätsmanagement (pp. 79–135). Vienna: Facultas.
  • Ehrke, F., & Steffens, M. C. (2015). Diversity-Training: Theoretische Grundlagen und empirische Befunde. In E. Hanappi-Egger & R. Bendl (Eds.), Diversität, Diversifizierung und (Ent)Solidarisierung (pp. 205–221). Wiesbaden: Springer VS.
  • Hermann, A. (2012). Diversitätsmanagement in Teams. In R. Bendl, E. Hanappi-Egger & R. Hofmann (Eds.), Diversität und Diversitätsmanagement (pp. 265–298). Vienna: Facultas.
  • Hofmann, R. (2012). Gesellschaftstheoretische Grundlagen für einen reflexiven und inklusiven Umgang mit Diversität in Organisationen. In R. Bendl, E. Hanappi-Egger & R. Hofmann (Eds.), Diversität und Diversitätsmanagement (pp. 23–60). Vienna: Facultas.
  • Warmuth, G.-S. (2015). Gelebte Diversität? Erfolgreiche Umsetzungsstrategien am Beispiel einer technischen Hochschule. Wiesbaden: Springer VS.

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