{"id":2212190,"date":"2024-04-03T12:10:02","date_gmt":"2024-04-03T16:10:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-study-shows-mckinseys-studies-promoting-dei-profitability-were-garbage\/"},"modified":"2024-04-03T12:10:25","modified_gmt":"2024-04-03T16:10:25","slug":"new-study-shows-mckinseys-studies-promoting-dei-profitability-were-garbage","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-study-shows-mckinseys-studies-promoting-dei-profitability-were-garbage\/","title":{"rendered":"Recent research reveals that McKinsey&#8217;s efforts to promote diversity, equity, and inclusion (DEI) for profitability were found to be ineffective"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">40<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fnew-study-shows-mckinseys-studies-promoting-dei-profitability-were-garbage%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2212190&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A\u200b recent\u200c report exposed flawed research by McKinsey &#038; \u200cCompany, disputing the correlation between DEI programs and \u200dprofits. Despite lacking empirical\u200c support, the U.S. \u200bmilitary referenced McKinsey&#8217;s\u200b 2015 diversity report. Caution is advised regarding McKinsey&#8217;s DEI recommendations due to their inability to replicate results. The firm&#8217;s\u200c tests\u2062 suggest \u200ca reverse causality, undermining the reliability of their \u200dstudies.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<div>\n<figure>                         <\/figure>\n<\/p><\/div>\n<p>A <a href=\"https:\/\/econjwatch.org\/articles\/mckinsey-s-diversity-matters-delivers-wins-results-revisited\" target=\"_blank\" rel=\"noreferrer noopener\">report<\/a> out last month shows that studies from the global consulting firm McKinsey &#038; Company showing a correlation between Diversity, Equity, and Inclusion (DEI) programs and significant profits were based on junk research.<\/p>\n<p>A 30-page paper published in Econ Journal Watch found that studies conducted by the consulting giant in 2015, 2018, 2020, and 2023 could not be verified to find significant results supporting conclusions that favor corporate DEI regimes.<\/p>\n<p>\u201cOur results indicated that despite the imprimatur often given to McKinsey\u2019s 2015, 2018, 2020, and 2023 studies,\u201d researchers concluded, \u201cMcKinsey\u2019s studies neither conceptually (in terms of the correct definition of causality) nor empirically (in terms of their set of large US public firms) support the argument that large US public firms can expect on average to deliver improved financial performance if they increase the racial\/ethnic diversity of their executives.\u201d<\/p>\n<p>In other words, McKinsey\u2019s studies touting diversity are not reliable. <\/p>\n<figure>\n<p><span><\/p>\n<blockquote data-width=\"500\" data-dnt=\"true\">\n<div lang=\"en\" dir=\"ltr\">\n<p>Over the past few years, <a href=\"https:\/\/twitter.com\/McKinsey?ref_src=twsrc%5Etfw\">@McKinsey<\/a> has released at least 4 studies claiming a positive relationship between DEI and firm performance.<\/p>\n<p>A new paper published today in <a href=\"https:\/\/twitter.com\/EconJWatch?ref_src=twsrc%5Etfw\">@EconJWatch<\/a> finds these results can&#8217;t be replicated.<\/p>\n<p>&#8221;Our inability to [replicate] their results suggests that\u2026 <a href=\"https:\/\/t.co\/W2qKHasLRy\">pic.twitter.com\/W2qKHasLRy<\/a><\/p>\n<\/div>\n<p>\u2014 Chris Brunet (@realChrisBrunet) <a href=\"https:\/\/twitter.com\/realChrisBrunet\/status\/1774840588015120433?ref_src=twsrc%5Etfw\">April 1, 2024<\/a><\/p><\/blockquote>\n<p><\/span> <\/p>\n<\/figure>\n<p>According to the pair of researchers who reviewed McKinsey\u2019s work, \u201ccaution is warranted\u201d when considering the recommendations from the firm to support DEI initiatives because results could not be replicated.<\/p>\n<p>\u201cThe structure of McKinsey\u2019s tests,\u201d they added, point in \u201cthe default direction of causality,\u201d showing \u201cbetter firm financial performance causes firms to diversify the racial\/ethnic composition of their executives, not the reverse.\u201d<\/p>\n<p>Despite the flaws in McKinsey\u2019s work, the U.S. military cited the 2015 diversity report from the consulting company in 2021. In the Navy\u2019s \u201cTask Force One\u201d final <a href=\"https:\/\/www.navy.mil\/Press-Office\/News-Stories\/Article\/2490996\/task-force-one-navy-completes-report-to-enhance-navy-diversity\/\" target=\"_blank\" rel=\"noreferrer noopener\">report<\/a> espousing the need to diversify the force, the authors wrote that \u201cgender-diverse organizations are 15 percent more likely to outperform other organizations and diverse organizations are 35 percent more likely to outperform their non-diverse counterparts.\u201d<\/p>\n<p>\u201cWhen compared to 2018 U.S. Census population data, our enlisted force has greater racial and ethnic diversity than our society, however, is under represented from a gender perspective,\u201d the Navy reported. \u201cOur officer corps remains overwhelmingly white and male and, except for Asian representation, is not representative of the U.S. today.\u201d<\/p>\n<p>Elaine Donnelly, the president of the Center for Military Readiness, <a href=\"https:\/\/thefederalist.com\/2024\/03\/29\/if-diversity-is-our-strength-why-is-our-military-so-weak\/\" target=\"_blank\" rel=\"noreferrer noopener\">outlined<\/a> the military\u2019s recruiting woes for The Federalist last week as the Pentagon prioritizes far-left DEI initiatives. <\/p>\n<p>\u201cChronic recruiting shortages are forcing the Army to cut 16,500 occupational positions, most of them vacant,\u201d she wrote. \u201cThe Air Force has proposed a reduction of 8,000 troops after missing recruiting goals for the first time in over 20 years. The Navy is short 9,000 sailors, forcing longer deployments for others.<\/p>\n<p>She explained, \u201cRace-conscious \u2018diversity, equity, and inclusion\u2019 (DEI) policies are making personnel shortages worse.\u201d<\/p>\n<p>\u201cMinority recruitment has remained steady or increased, which is fine,\u201d Donnelly wrote, \u201cbut a steep decline in white recruits almost entirely accounts for the ongoing recruiting crisis.\u201d<\/p>\n<hr>\n<p>      Tristan Justice is the western correspondent for The Federalist and the author of Social Justice Redux, a conservative newsletter on culture, health, and wellness. He has also written for The Washington Examiner and The Daily Signal. His work has also been featured in Real Clear Politics and Fox News. Tristan graduated from George Washington University where he majored in political science and minored in journalism. Follow him on Twitter at @JusticeTristan or contact him at Tristan@thefederalist.com. Sign up for Tristan&#8217;s email newsletter <a href=\"https:\/\/socialjusticeredux.substack.com\/about\">here<\/a>.<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A recent report revealed that McKinsey &amp; Company&#8217;s studies linking Diversity, Equity, and Inclusion (DEI) programs to substantial profits were built on flawed research. The Econ Journal Watch published a 30-page paper debunking McKinsey&#8217;s studies from 2015, 2018, and 2020, highlighting the lack of credibility in their findings<\/p>\n","protected":false},"author":494,"featured_media":2212191,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/04\/52282679317_a6e0e69fbb_k-e1712159796398.jpg","fifu_image_alt":"","footnotes":""},"categories":[546],"tags":[],"class_list":["post-2212190","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-federalist"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/04\/52282679317_a6e0e69fbb_k-e1712159796398.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2212190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/494"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2212190"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2212190\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2212191"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2212190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2212190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2212190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}