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Culture War Roundup for the week of February 13, 2023

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There exists an entire consulting industry that performs research on the benefits of DEI training, the benefits of a more diverse workforce, the success of organizations which have more women/LGBT people in leadership positions, etc. Here is the consulting company Accenture's summary of the benefits of DEI to companies and organizations that adopt their practices.

I am of the belief that it is people's knowledge, experience and competence that determines whether or not an organization will be successful in its goals. It seems extremely unlikely to me that any problem corporations are interested in solving becomes easier the more members of your project team possess a uterus. Likewise, it seems unlikely your organization will gain magical insight into any real problem of interest by virtue hand-selecting team members whose ancestors have a specific continent of origin. And I have a hard time believing there is a benefit to adding more members of your team who are sexually aroused by humans who share their same sex organs (or adding members of your team who wish to change their sex organs via surgery or chemical sterization).

My priors are stacked so incredibly hard against studies which demonstrate that there is actually a benefit to structuring teams based on hand-selecting people who are LGBT, people from Africa, or adding more women. Indeed, it feels like if you lower qualifications to hire people from these groups, it can only result in organizations which are less qualified.

I'm wondering how it is possible that these consulting companies succeed in designing studies that show the opposite of (what I believe to be) reality. Is it all publication bias and p-hacking? My intuition says that it is. But there are some pretty powerful-looking studies that seem to be hard to explain via that explanation alone. Looking at an example of one of the studies done by McKinsey in the above link:

Earnings Before Interests and Taxes (EBIT) margins

McKinsey & Company’s global study of more than 1,000 companies in 15 countries found that organizations in the top quartile of gender diversity were more likely to outperform on profitability—25% more likely for gender diverse executive teams and 28% more likely for gender-diverse boards. Organizations in the top quartile for ethnic/cultural diversity among executives were 36% more likely to achieve above-average profitability. At the other end of the spectrum, companies in the bottom quartile for both gender and ethnic/cultural diversity were 27% less likely to experience profitability above the industry average. Researchers measured profitability by using average EBIT margins

What is the plausible mechanism behind which research that shows these kind of results are created? Are they measuring something that is real (i.e. does a more diverse workforce actually make companies more money)? Or are the brilliant people at McKinsey meticulously hand-selecting the companies to design studies which will show the opposite of reality?

It could just be the wrong way around; established, profitable companies can afford to spunk money away on diversity hires and vanity projects like stuffing boardrooms for social goodboy points, and less or un-profitable companies who don't have that kind of capital would just go bust when they try to do so. The end result is that only the companies who can afford to shoulder X% of deadweight engage in this behaviour.

A more convincing metric would be if startups are more or less likely to fail due to being diverse, but even this can be skewed by things like grants for X-led companies or whatever.

I can believe the relation exists and causality goes the opposite way. Anecdote: the woke tech company I work for recently had a big layoff+bad stock market results and now suddenly there's just less of all this stuff.

Teams devoted to diversity/etc had fairly big cuts, while teams devoted to making money with tech had comparatively small cuts. Within the tech part of the org it's openly acknowledged that individual performance played a big role in who got cut. Most of the people whose names you recognize for woke stuff are gone and the people who remain you recognize because of what they shipped.

You sound like a 'character', is that right?

While I'd heard similar groups had gotten caught, I'd heard mixed things about performance. It would actually be encouraging if it were more performance based, and less random-seeming, as it does from the other side of the Atlantic, where the cuts aren't all through yet.