Diversity in Global Business

Diversity in Global Business: How Business Schools Can Prepare Future Leaders

by Oliver Ashby | Diversity Executive

As business continues to evolve following the recession, it's becoming more and more apparent that having an international presence and acceptance of diversity are imperative. Research and labor statistics indicate a continual increase in the general recruitment of women and racial and ethnic minorities: Bureau of Labor Statistics data show that 68.3 percent of entrants into the labor force from 2006 to 2016 will be people of color and women. As such, diversity, both in terms of nationality and professional background, plays a key role in the makeup of a business school education.

By instilling in students the importance of diversity, business schools are ensuring that future leaders are confident and able to lead and succeed in every environment, be it finance in New York, consulting in Europe, manufacturing in China or startups in Latin America. After graduating, students apply their respect for diversity and global presence to their corporate culture, spreading the value of a multicultural workforce.

At London Business School, for example, the current first-year MBA class has more than 400 students, 91 percent of whom come from outside the UK., representing 62 nationalities.

By offering truly global classes, business schools can create environments where students share experiences from different parts of the world, instilling within them a well-rounded global management perspective. In light of the proliferation of global business and our increasingly flat world, this perspective is critical for future business leaders, who will see far more opportunities and requirements to work on a much more interconnected global stage. Today, companies ranging from General Mills and Deutsche Bank to The Boston Consulting Group and LexisNexis International seek employees who understand the global marketplace and bring a unique worldview to their companies. Having a diverse background is now a core quality that job candidates must exude when applying for jobs in all industries.

So, to foster collaboration and encourage diverse groups of students to work together, business schools throughout the world are putting programs in place to ensure students graduate with a holistic and diverse education. MBA study groups at London Business School, for example, are designed to combine six or seven individuals from different nationalities and backgrounds. A real-life case: One of this year's groups is composed of a banker from Brazil; a corporate development director from the U.K.; a management consultant from Italy; a captain from the U.S. Army; a financial controller from the Ukraine; and a helicopter pilot from the Middle East.

These diverse groups take a wide range of core courses together, using each other's skills to enhance their development. Often, feedback from students indicates that they gain almost as much from their fellow study group members as they do from faculty. This unique approach to encouraging diversity gives students the opportunity to work closely with peers from nationalities they may not have been familiar with before starting business school - ultimately giving students an advantage in their careers.

However, diversity isn't as simple as grouping together just anyone with different nationalities or cultural backgrounds. It's about building a team with assorted thoughts and beliefs that, when combined, will help create a more comprehensive solution to growing global business issues. By also incorporating a globally diverse faculty into the mix, business schools can ensure students are being exposed to a variety of cultures and business backgrounds during their studies. For example, at London Business School, the 99 faculty members come from more than 20 countries. The school's 30,000 alumni represent more than 100 countries - another diverse pool of resources that students are exposed to.

By giving MBA students an international experience, business schools can help prepare future business leaders for what is becoming a truly global and interconnected workplace. How are you incorporating diversity into your work? What gains have you or your organization made as a result?

[About the Author: Oliver Ashby is the business development manager for London Business School.]