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Financial perks of DEI, becoming your own media, & TikTok revives Converse’s discontinued sneakers
Introduction
Understanding DEI and Its Financial Impact
In 2015, a groundbreaking study by McKinsey claimed that there was a link between profits and executive racial and gender diversity. This study profoundly impacted investors, lobbyists, and regulators, leading to a push for greater diversity on company boards. However, the credibility of this study has recently been challenged, with subsequent academic research failing to replicate McKinsey's findings. The key takeaway here is that while diversity is undoubtedly valuable, hiring should always prioritize skills and alignment with company values over fulfilling diversity quotas.
Neil Patel, a notable entrepreneur, shared his perspective, emphasizing the importance of hiring talented individuals irrespective of their race, gender, or beliefs. He recounts instances where diversity hires were not aligned with company objectives, illustrating the potential downsides of enforced diversity policies.
You Are the Media Now
A tweet by Balaji Srinivasan claims that tech founders should prioritize founder-run media for more authentic and reliable coverage. He suggests engaging with media run by fellow founders, such as Mike Solana's Pirate Wires and David Sacks' All-In. According to Balaji, the technology sector now commands more followers and authenticity than traditional media outlets pretending to focus on tech.
The rise of platforms like TechCrunch has been marked by controversy, pushing many to seek alternative, more trustworthy sources. Srinivasan underscores the importance of creating your own content and media presence as it aligns more closely with individual company missions. As more tech founders and executives establish their media channels, the traditional media landscape is undergoing a significant transformation.
TikTok Brings Back Converse’s Knee-High Sneakers
Social media is an increasingly influential force, as demonstrated by the recent resurgence of Converse's knee-high sneakers. This revival was driven entirely by user demand and comments on TikTok, showcasing the platform's power in influencing corporate decisions. Though less relevant to the topic at hand, it illustrates the broader impact of social media on consumer behavior and corporate strategies.
Neil Patel also shared a personal anecdote, reflecting on the strong consumer influence in the age of digital and social media. Companies are increasingly listening to their consumers and making inventory decisions based on social media trends and feedback.
Keywords
- Diversity, Equity, and Inclusion (DEI)
- McKinsey Study
- Founder-run media
- TechCrunch
- TikTok influence
- Converse knee-high sneakers
- Hiring practices
- Skill alignment
- Social media trends
FAQ
Q: What was the initial impact of McKinsey's 2015 study on diversity?
A: McKinsey's 2015 study claimed a correlation between executive diversity and company profits, leading to a push for greater diversity on corporate boards.
Q: Has McKinsey's study been challenged since its publication?
A: Yes, subsequent academic research has failed to replicate McKinsey's findings, questioning the study's methodology and conclusions.
Q: What is the main argument against hiring based on diversity quotas?
A: The main argument is that hiring based on diversity quotas can lead to employing individuals who may not align with company values or possess the necessary skills, potentially hindering corporate performance.
Q: What does Balaji Srinivasan suggest about modern media?
A: Balaji argues that tech founders should engage with media run by fellow founders for more authentic and reliable coverage, as founder-run media now commands more followers and authenticity.
Q: How did TikTok influence Converse’s inventory decisions?
A: User comments and demand on TikTok led to the revival of Converse's knee-high sneakers, highlighting the platform's influence on corporate decisions.
Q: Why is creating your own content as a founder important?
A: Creating your own content as a founder is crucial for maintaining authenticity and aligning more closely with your company's mission, making you less reliant on traditional media outlets.