Does Diversity Really Improve Companies?

Diversity is trending. But what are we really talking about?

Gender quotas dominate the conversation. Issues of ethnicity and migration background receive far less attention than gender when diversity is discussed.And in the rush to promote inclusion, performance is often left out of the picture.

In “From Nothing Comes Nothing,” my latest column for the Kölner Stadt-Anzeiger, I explore a simple question with a complex answer: Does diversity truly improve companies?

Drawing on the latest McKinsey research, personal experience as an entrepreneur and consultant with hundreds of client engagements, I reflect on why some diverse teams thrive while others stall.

This is not about diversity as a checklist. It is about contribution, clarity, and the cultural foundations that make differences add value without overshadowing what drives performance.

We frequently hear that diversity makes companies more successful. If that's true, why does the public debate in Germany focus almost entirely on gender or LGBTQ+, while quotas for people with migrant backgrounds are never discussed?

This isn’t coming from frustration. I'm a migrant myself. Today, I run a successful company with a team of eight people from eight different countries. I never wanted to be hired simply because of my background, but because I can help the business succeed.

Diversity is not our goal. It is the result of a clear principle: performance counts. Meritocracy.

I strongly believe that the most fair system is one based on performance. Not everyone starts from the same place, but meritocracy remains the most honest way to recognize talent and build lasting success.

So what does the research say?

In McKinsey’s 2023 report “Diversity Matters Even More,” the authors analyzed data from over 1,200 companies in 23 countries. They found that companies in the top quartile for gender diversity in executive teams were 39 percent more likely to outperform financially. A similar pattern appeared with ethnic diversity.

Even more interesting was the combined effect. Companies with both high gender and ethnic diversity had a 25 percentage point higher likelihood of strong financial performance compared to those with homogeneous leadership.

That sounds impressive. But it's not proof. Correlation is not causation. In some regions, there’s a correlation between the number of storks and birth rates, but no one seriously believes storks deliver babies.

Still, correlations like these are often used for political messaging. Diversity is usually reduced to gender and presented as a political objective. Other factors, such as ethnic background, are overlooked. Meanwhile, aspects like LGBTQ+ representation are promoted even when there is no proven link to business performance.

Instead of focusing on solid evidence, we chase buzzwords. But if we want to take diversity seriously, we should ask a different question. What makes some diverse teams truly successful, while others only look diverse on paper?

The answer may lie in what matters most right now: a shared purpose. Shared values. And a culture that puts performance at the center, not labels.

A Shared Understanding of Performance

At our company, diversity has never been the goal. It is the outcome of consistent meritocracy. People work here because they move the business forward.

The best teams combine difference with dependability. Different perspectives, mindsets, and experiences. But also a shared understanding of performance. Without that, success doesn't happen.

That is why clear leadership principles matter. They reflect the common ground that holds a team together. Diversity adds value beyond this foundation. It brings new input, broadens thinking, and sparks inspiration. But it does not replace the core.

Diversity is not an end in itself. It is not a guarantee of success. But it can be the result of doing things right. When organizations judge people by their contribution, not by appearances.When they demand performance, they also support people in reaching it.

This is not a comfortable stance. But it is one that lasts. For companies. For society. And for anyone who wants to be seen not as a quota but as a real contributor.

From Nothing Comes Nothing