Essay Sample on Diversity & Innovation: Keys to High Performance & Success for Established Firms

Introduction

Lorenzo researches to determine the impacts of diversity and innovation on the high performance of the established companies. She indeed finds that diversified and innovative firms rely on this crucial aspect as their competitive advantage tool over the others. Hence, increasing their sales revenue over the other rival companies. Again, Lorenzo notes that diversity and leadership are essential for the firms' success. The companies find it necessary to comply with the difference not only as a business priority but for political correctness and also defining business processes (Lorenzo, 00:42). Therefore, through diversification, firms can achieve their most important goals by creating new products in the market.

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The study among the 171 German Austria and Swiss companies also reveal that they are diversified and more innovative (Lorenzo, 00: 52). The findings show that these firms generate more revenues from the creation of new products, thus confirming the effects of innovation to their success. Based on these results, Lorenzo proves that there is the existence of links between the diversification and innovation in achieving growth by the high-performance companies. Again, the best-performing companies recognize the importance of effective leadership that opens up the opportunity for every member to speak up freely during the decision making the process. Hence, they can contribute by giving their best ideas on the improvement aspects that the company should consider.

Application of Concepts from Class and Reading

One of the most integral factors that influence high-performance in the company is the diversification and inclusivity. Firms that practice diversification is more innovative and create new ideas that enable them to generate new products in the market that boost their sales and subsequently, revenue. Further, diversified companies can build a better and robust system that accommodates every aspect of the challenge and provide an effective solution to them. Moreover, the idea of inclusion also is a significant catalyst to the success of the business entities. It is a concept that brings together different views from the members leading to a better decision-making capability for the successful performance of the firms. Most importantly, the treatment of diversity and inclusion by the firms as their main competitive advantage is also vital in their success. The companies create fresher and unique ideas that aid their creativity in the production of new products leading to their increased revenue generation (Lorenzo 01:26).

Comparing and Contrasting the Concepts

From the professional point of view, anticipating change and fostering innovation is a concept that enhances high performance in the big industries. Companies with diverse leadership can determine the possible changes that will occur in the future and predict the best ways to manage them. Besides, a sector that forecasts the challenges can generate new ideas and concepts that it will use to curb the situation and restore things to normal. More actions by the high-performance firms to prepare for the future gives them a competitive advantage over their rivals. Therefore, fostering their initiatives of being the most productive since no challenge can affect their operations. Instead, their systems and processes will remain operational and produces the expected results.

On the contrary, being on boss may not help every organization to achieve high-performance. Majority of the companies prefer including every member in their decision-making processes, enabling them to gain diversified ideas and concepts. Therefore, firms can develop new methods of achieving success through diversification.

References

Lorenzo, R. (2019). How diversity makes teams more innovative [Video file]. Retrieved from https://www.ted.com/talks/rocio_lorenzo_want_a_more_innovative_company_hire_more_women/transcript