Fact check: McKinsey studies on DEI profitability are bullshit, have been shown to be bullshit by multiple other studies, but Grifters continue to quote them like scripture when extolling the benefits of DEI initiatives.

1. Summary of the results

The analyses present a complex picture of McKinsey's DEI (Diversity, Equity, and Inclusion) studies and their credibility. Academic scrutiny has revealed significant methodological flaws in McKinsey's research from 2015-2023 ^[1]. Business scholars and economists, including Alex Edmans, have characterized these studies as marketing materials rather than rigorous scientific research ^[2]. Professors Green and Hand's comprehensive analysis concluded that the studies fail to support claims about improved financial performance through increased executive diversity ^[3].

2. Missing context/alternative viewpoints

McKinsey's own research presents significantly different conclusions:

• Their 2017 study showed gender-diverse teams had 21% higher likelihood of outperformance, while ethnically diverse teams showed 33% higher likelihood ^[4]
• The 2019 follow-up indicated strengthening trends, with gender diversity showing 25% higher likelihood of above-average profitability ^[5]
• Their 2023 report claims the business case for gender diversity has doubled over a decade, showing 39% greater likelihood of financial outperformance ^[6]

A crucial piece of missing context is the question of causality - researchers suggest that the relationship might be reverse: successful companies might be more likely to implement diversity initiatives, rather than diversity initiatives leading to success ^[1].

3. Potential misinformation/bias in the original statement

While the original statement's skepticism is supported by academic research, several stakeholders have vested interests in this debate:

• Consulting firms like McKinsey benefit financially from promoting DEI initiatives through their consulting services
• Academic researchers gain recognition and funding for conducting critical analyses of corporate studies
• Organizations like the U.S. Navy have cited these studies to support their own diversity initiatives ^[1]
• Corporate leaders may use these studies to justify either implementing or rejecting DEI programs

The original statement's strong language ("bullshit") oversimplifies a complex issue where correlation and causation are difficult to establish definitively. While academic scrutiny has indeed identified significant methodological issues, the debate continues to influence major organizational decisions and policies.