Diverse engineering teams generate 19% more revenue from innovation. Here's the mechanism.
BCG research: companies with above-average diversity generate 19% more revenue from innovation. Mechanism: diverse teams challenge assumptions more, identify edge cases earlier, and build products that serve broader markets.
Economic impact for a $50M revenue company: 19% innovation premium = $9.5M additional revenue potential. Investment: 10-15% premium on recruiting costs for diverse pipeline development ($50-100K/year). ROI: 95-190x.
Like this analysis?
Get the weekly engineering economics briefing — one email, every Monday.
Subscribe Free →Companies with high engineering culture scores have 2.5x lower attrition and 40% higher velocity.
9 minRemote engineering saves $10-15K per employee in office costs but changes other economics.
10 minCompanies without clear career ladders have 35% higher attrition. The cost is enormous.
8 minPublished Work
This article expands on ideas from my published work in CIO.com, Built In, Mind the Product, and HackerNoon. View published articles →
The Product Economist — Quantifying engineering economics for technology leaders, PE firms, and boards.