Diversity in Startups: Why It Matters
The main issue
When it comes to decision-making within a company, there is a general image that comes to mind: a pale (and stale) group of men calling the shots. This exclusivity is becoming more familiar within mainstream conversations and the need for diversity within the workforce is not a new phenomenon. In Kalgera’s endeavour to support the elderly and vulnerable, embracing diversity across the company encourages unique and varying insight, increasing the chances of creating any positive customer experiences. Along with considering an organisation’s diversity though, it is vital to establish inclusivity in the decisions that are made across all levels.
Research and evidence
A study by Cleverpop, which analysed approximately 600 business decisions made by 200 different business teams over two years, shows the benefits of inclusive decision-making. Their analysis found that the most inclusive decision-making and execution teams performed 60% better than average. The study also establishes how businesses can suffer when inclusivity is not implemented at all stages of decision-making. The worst-case scenario described in the report is an all-male group making decisions that are to be executed by a gender-diverse group, as this approach led to an overall under performance of 15%.
The Kalgera team
Kalgera’s vision is to safeguard the financial lives of older people using technology. Specifically, Kalgera aims to address finance issues faced by the vulnerable starting with older people, as well as those living with dementia and other conditions that alter their clarity of thinking. Kalgera’s purpose is to address the needs of those who are commonly overlooked in society. Diverse and inclusive companies tend to embrace a broad range of people, including those who are commonly underrepresented because they do not fit the typical homogeneous workplace population. By enabling all voices to be heard, Kalgera are more likely to achieve a better connection and engagement with customers, who are more likely to feel that they are being fairly represented and listened to.
From a growth perspective, Kalgera also has much to gain from being a diverse and inclusive team. A study by Bain & Company shows that decision-making effectiveness and financial results positively correlate by 95%. Cleverpop’s report also states that diverse teams make better decisions 87% of the time, and that teams that follow an inclusive process make decisions twice as fast with half the number of meetings. Coupled with the fact that start-ups tend to bear the brunt of financial instability, the implementation of inclusivity across the whole company is a beneficial way of improving Kalgera’s economic strength.
Diversity in practice
Although its necessity is clear, there is much to do before the workplace is equal and diverse, especially when it comes to the technology industry. Cloverpop’s findings are helpful because they show companies such as Kalgera reap the benefits of diversity and provide pragmatic direction in applying inclusivity in the most successful way possible. Moreover, by embracing a diverse range of people with varying experiences and skills, offering innovative and fresh insight, the Kalgera team have the best chances of succeeding in their goal. Ultimately every company, including Kalgera, will only reach its full potential when diversity and inclusivity are paramount at every level, from the very first vision to on-the-ground realisation.