The Hidden Cost of Consensus: How Embracing Diverse Perspectives Shatters Groupthink

Many conversations around diversity are focused around the ‘how’, rather than the ‘why’. Which to my mind is doing the ‘why; a great disservice.

Time and time again, the data shows that companies embracing diversity outperform those that don’t, plain and simple. McKinsey’s research from a couple of years ago was pretty definitive: companies in the top tier for ethnic and gender diversity are significantly more likely to outperform their peers. And here’s the kicker, those lagging behind are falling further and further behind. Diversity isn’t just a buzzword; it’s becoming essential to stay competitive.

Picture this: You’re trying to solve a problem with the same three people you always brainstorm with. Sure, you’ll come up with something, but now imagine bringing in folks with completely different backgrounds and experiences. The ideas start bouncing, evolving, and building into solutions you never dreamed of. That’s the magic of diversity. It’s like adding a splash of spice to a familiar dish, you elevate the whole experience.

Innovation thrives when people feel safe to speak up. A diverse team can unlock creativity simply by making everyone feel like their voice matters. Jamaal Wesley, author of ‘Authentically Authentic’, captured it perfectly: “Imposter syndrome makes you hesitate even when you have a game-changing idea. When diversity and inclusion become more than just slogans, people feel comfortable bringing their best to the table.”

At a recent event, I was staggered to hear a female adviser who was, by any measure, an incredibly successful business owner, admit she suffered persistent imposter syndrome. Fortunately, we’d put a great deal of effort into creating an environment where all views and insights were encouraged – where every opinion carried equal weight – and that event turned into one of the most productive and enjoyable I have attended in a very long time.

A Place to Belong, Not Just Work 

Belonging is where the magic happens. It’s more than just inclusion—it’s about truly knowing your teammates and valuing their individuality. In my experience across organisations of all shapes and sizes, I have seen how creating spaces where people feel they can be their authentic selves transforms not just individuals but entire teams.

When employees don’t feel the pressure to conform, the workplace becomes a place where they thrive. It’s like swapping a stiff uniform for comfortable clothes—you perform better when you’re at ease.

Groupthink can have devastating consequences

The opposite of diversity of thought – groupthink – can not only be bad for business, stifling innovation and creativity, it can be fatal.

The Challenger space shuttle disaster serves as perhaps the most sobering reminder of the dangers of groupthink.  As we now know, it was the simple yet tragic failure of O-ring seals in that led to the event that shocked the world.

Engineers from the contractor responsible for the Challenger’s rocket boosters repeatedly raised concerns about the O-ring seals. These seals, critical to preventing fuel leaks, were not tested for the freezing temperatures expected on the morning of the launch. However, when they voiced their concerns in a conference call with NASA officials, they were overruled. NASA, blinded by the PR gold of the first civilian in space (teacher Christa McAuliffe), their past glories, and pressure to maintain funding for the expensive Shuttle program, just didn’t want to know.

In this case, the focus on maintaining consensus, the suppression of dissenting voices, and the overconfidence in past successes all led to a catastrophic failure. Tragically, had the concerns of the engineers been heeded, the disaster could have been averted. The incident underscores the importance of fostering a culture where diverse opinions are welcomed, risks are openly discussed, and decision-making processes are not compromised by the desire for conformity.

Attracting and Keeping the Best Talent 

Here’s a fun fact: Nearly 70% of Millennials and Gen Z workers say they’d stick around for five years or more with a company that values diversity. It’s not rocket science (pardon the pun). People want to be where they feel seen and valued. And retaining top talent isn’t just about making individuals happy; it makes the whole team better. A rising tide truly lifts all boats.

A Competitive Edge That Pays Off 

In today’s fast-changing world, diverse perspectives aren’t just nice to have—they’re essential. Whether it’s adapting to market shifts or solving complex challenges, diversity equips teams with the agility they need. The stats are clear: companies with diverse executive teams enjoy a 36% higher likelihood of financial outperformance. The cost of exclusion? It’s becoming too high to ignore.

Diversity of thought among financial advisers = a co-creation dividend of 45%

Across the Ensombl platform, there are over 9,100 advice professionals, including practice owners, employed advisers, practice managers and support staff. They represent over 900 licensees, big and small, and come from all ages. But for all their differences, they are also united in their desire to share and learn from each other, to improve themselves, their peers, and the advice profession as a whole.

Their diversity – of experience, skills, and perspectives – is what makes the Ensombl community tick, and their insights represent our ‘secret sauce’. The views advisers respect the most are those of their professional peers, and unsurprisingly, the content we develop which is infused with adviser perspectives – in all their diversity – significantly outperforms standard corporate content (by around 45% to be precise).

We call it our co-creation dividend, and it’s a tangible demonstration of the power of diversity of thought.

We work with many of Australia’s leading fund managers, insurers, and tech vendors, all of whom are seeing their marketing ROI boosted by this dividend. And we’d love to have a chat to see if we can bring your own adviser solutions to life.

Just reach out.