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The Impact of DEI on Innovation: Creating Inclusive Success

by M&Co. Staff

Diversity, equity, and inclusion (DEI) are powerful drivers of innovation in the workplace. However, their true impact comes when these principles go beyond formal policies and become integrated into both everyday business practices and day-to-day habits inside the workplace.

In any sector, and not just PR, embracing both inherent diversity (race, gender, age, ethnicity, etc.) and acquired diversity (traits gained through experience, such as personal passions, interests, cultural fluency, and language skills) can transform the way companies foster healthy work environments and thrive. Inherent diversity refers to the characteristics a person is born with, while acquired diversity relates to the experiences, skills, and mindsets a person develops over time. Both are crucial when defining diversity in an organization, as they allow teams to tap into a broad spectrum of perspectives that drive innovation revenue and problem-solving.

Certain industries, such as PR, face higher expectations in championing, living and breathing DEI because of the nature of their work. PR firms advise companies on how to communicate about DEI in a way that is genuine as opposed to window-dressing. At Montieth & Company, we actively work to meet these expectations, understanding that our credibility depends on our ability to practice what we preach.

To that end, if a PR firm is not experienced in embracing DEI themselves, how could they advise their clients on it?

How to truly embrace DEI in the workplace

When employees are encouraged to bring their unique perspectives, personal passions, and diverse experiences into their workplace, that will naturally lead to stronger, more genuine relationships with both coworkers and clients.

For example, an employee who shares a client’s language or cultural background can bridge communication gaps and provide insights that deepen the client relationship. Similarly, someone passionate about photography or graphic design might proactively enhance client materials with their creative input, adding value beyond the scope of their formal role.

At M&Co, our team’s diversity has been a critical asset in serving our global clients. A Harvard Business Review study found that teams with members who share a client’s ethnicity are 152% more likely to understand a client’s needs than a team that does not. This finding underscores the importance of prioritizing diverse perspectives in building PR strategies, making them not just culturally resonate but also more effective. That is not to say that a client who does not share a client’s ethnicity cannot serve them well, but rather that if we uplift and bring diversity into the workplace, we can only benefit.

The business case for DEI

One of our global clients initially approached us to help build their media profile in the U.S. Over time, as their business expanded and they entered new markets, they realized that our team’s cultural fluency and diverse backgrounds enabled us to support their global PR efforts. Rather than hiring different PR firms in each region, they trusted our team to provide nuanced communication strategies that resonated with global audiences.

This partnership grew alongside Montieth & Company, as we expanded into new markets ourselves, opening offices in London, Hong Kong and extending our work into LATAM. Our team’s deep understanding of regional nuances and multilingual capabilities have been key to helping our clients globally. This enables us to serve clients in over 25 money and media markets and work in 7 time zones simultaneously, underscoring how diversity and inclusive leadership can drive business growth.

Creating an Environment for Inclusive Innovation

Innovation thrives when diversity is not only embraced but actively encouraged. At Montieth & Company, we’ve seen how a culture that values both inherent and acquired diversity can unlock creativity. When employees are empowered to share their unique perspectives and pursue their passions, it leads to the development of standout communication strategies and new opportunities in under-leveraged markets, setting them apart in the competitive PR landscape.

To further the value of diversity in driving business success, a Harvard Business Review study found that companies with both inherent and acquired traits are more likely to out-innovate and outperform their competitors. Employees in such companies are “45% likelier to report that their firm’s market share grew over the previous year and 70% likelier to report that the firm captured a new market.”

Fostering a Culture of Inclusive Innovation

To fully harness the innovative potential of a diverse workforce, firms should encourage the expression of diverse perspectives by:

  • Ensuring that everyone is heard
  • Creating a safe space for proposing novel ideas
  • Empowering team members with decision-making
  • Sharing credit for successes
  • Giving actionable feedback
  • Implementing feedback from employees

Only by embracing the unique perspectives and passions of their team members, firms can create communication strategies that resonate deeply with clients, drive innovation, and foster a more fulfilling work environment for all. DEI shouldn’t be seen as a business strategy. However, embracing it in the workplace has a proven impact on business and individual performance. It’s a pathway to empowering team members to be themselves, grow, and succeed – and to do so wherever they are.

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