Capitalizing on Thought Diversity for Innovation: Team Dynamics Can Affect Innovation Both Positively and Negatively. Here's How to Accentuate the Positive

Abstract

Diversity in R&D innovation teams is unavoidable. The growing need for scientific discoveries that bridge fields and reduce time to market has led to greater reliance on cross-functional teams, cross-disciplinary work, and open innovation. In addition, changes in the scientific and technical workforce have brought people together who are not always used to working with each other. In these circumstances, companies face the challenge of developing breakthrough innovation within teams whose members often see the world through the lens of their own areas of expertise, knowledge or organizational affiliation, and who bring to the team different problem solving approaches. Current research has identified effects of demographic diversity (e.g., gender, race/ethnicity, age, tenure) and the mechanisms by which it works within groups. However, much less is known about how team dynamics and innovation are affected by the diversity of thought in teams (e.g., diversity in perspectives and in approaches to problem solving). This paper reports on our study of 28 innovation project teams at 14 Industrial Research Institute member companies. The goal of the study was to understand how a team's thought diversity affects its innovation outcomes and interpersonal team dynamics (i.e., collaborative learning, psychological safety, and a shared mindset). We drew on Scott Page's work (1) and measured a team's thought diversity by the variety of perspectives present on the team (e.g., the variety of educational and functional perspectives) and by the team's reliance on two approaches to problem solving: sequential thinking (i.e., using logical and sequential thinking routines) and connective thinking (i.e., linking many previously unconnected ideas). Our results provide guidance on composing or re-composing teams to facilitate innovation and enhance skill development. At the same time, our results draw attention to how thought diversity may inhibit or enhance interpersonal team dynamics that foster innovation depending on the team composition. (See How the Study Was Conducted, page 18). A Double-edged Sword Thought diversity is best described as a double-edged sword for innovation. On one hand, diversity provides knowledge, expertise, problem-solving approaches, and other resources that, combined in novel ways, produce innovation. Thought diversity in a team (diversity in perspectives and in approaches to problem solving) helps members maintain multiple sets of assumptions as the team considers a problem. This, in turn, increases the number of alternatives that members consider. Teams that consider more alternatives produce more innovative outcomes (2). Thought diversity is especially beneficial in groups where minority views can be expressed and get due consideration (3,4). On the other hand, diversity carries within itself the seeds of conflict. When team members have different values, priorities, communication styles, and incentives, they identify less with the team, are less cohesive, feel less comfortable voicing divergent opinions, and are more likely to develop negative feelings toward other team members. In order to understand one another and hence leverage their resources, team members with different backgrounds and perspectives tend to develop a shared mindset, that is, create a shared way of seeing and interpreting reality. Paradoxically, however, once a shared mindset develops, team members may be less likely to share unique points of view or knowledge that contradicts the shared mindset in the group. Hence the advantage of diversity may be lost in team members' efforts to create a shared mindset. Because thought diversity is a double-edged sword, the outcomes and the innovativeness of diverse teams are uncertain. The purpose of this study was to explore the relationships between team composition, team dynamics, and innovativeness in order to provide recommendations that help diverse teams innovate more consistently. …