I remember a conversation we had at M&P. We were considering a candidate—not from the typical consultancy mould, but someone with deep roots in tech and manufacturing.
While discussing our team’s expectations, we uncovered several benefits of hiring individuals from different industries:
Seeing Things Differently
When you hire someone from a different industry, you gain fresh perspectives and innovative thinking. As David Epstein argues in Range, generalists who draw from diverse experiences are often better at solving complex problems than specialists trained in a single domain.
This is reinforced by Scott Page’s The Diversity Bonus, which found diverse teams (including diversity of industry background) outperform homogeneous ones in problem-solving by 20–35%.
Case Study: When Netflix expanded into gaming, they didn’t just hire more engineers—they brought in storytellers from Hollywood and game designers from Riot Games. The result? Interactive hits like Bandersnatch.
The Medici Effect: Innovation at Intersections
Frans Johansson’s The Medici Effect explains how innovation happens at the intersections of different disciplines. When people from vastly different worlds meet, they spark ideas that wouldn’t emerge otherwise.
Data Point: A Harvard Business Review study found that companies employing staff from varied industries see 19% higher innovation revenues.
Example: Apple’s iconic design direction under Jony Ive was influenced by his background in industrial design, not just computing. That outsider lens redefined hardware aesthetics.
Deep Domain Knowledge in New Contexts
Sometimes, what seems irrelevant becomes revolutionary in a new context. When Microsoft appointed Satya Nadella, a cloud computing leader—not a Windows insider—he reshaped Microsoft’s focus around Azure, dramatically boosting growth.
Lesson: You don’t need someone who “knows how things work here.” You need someone who asks why they work that way in the first place.
Collaboration: Beyond Buzzwords
Real collaboration happens when different ways of thinking challenge each other. McKinsey’s Delivering Through Diversity report shows that cross-industry teams are 21% more likely to outperform on profitability.
Example: SpaceX merged aerospace engineering with manufacturing efficiencies learned at Tesla. This cross-pollination significantly reduced rocket production costs.
The Customer Lens Widens
The more varied your team’s experiences, the better you understand diverse customer needs.
PwC Data: 73% of consumers say they prefer companies that understand their unique needs. That’s easier when your team have lived in different worlds.
Example: Airbnb hired veterans from Marriott and Hilton to refine host-guest trust systems. That empathy wasn’t natural to a team built solely on tech.
Learning Loops and Mutual Growth
When people from different industries come together, learning accelerates. LinkedIn’s 2023 Workplace Learning Report showed 45% of L&D leaders prioritize cross-functional upskilling—much of it sparked by hiring from outside.
Example: IBM pivoted into AI and cloud not just by retraining staff, but by bringing in neuroscientists and climate scientists. Their knowledge reframed Watson’s potential in new verticals.
Competitive Moat Through Talent Mix
Your competitors can copy your products—but they can’t easily copy your people. As Yvon Chouinard writes in Let My People Go Surfing, Patagonia built brand authenticity by hiring environmentalists—not just retail experts. That mix gave them an edge.
At M&P, I’ve seen similar patterns. A sustainability consultant shaped our fintech strategy. A former military officer helped crack open a difficult market entry case in ASEAN. Their perspectives weren’t just additive—they were transformative.
But Yes, There Are Challenges
Let’s not pretend that everything is easy. People from different industries may:
- Struggle with jargon
- Feel isolated or unsure how to contribute
- Get misunderstood
What Helps:
- The First 90 Days by Michael Watkins suggests structured onboarding with dual-track integration: one, teach them the basics of your industry; two, invite them to share their previous expertise early.
- Google’s Project Aristotle found that psychological safety is the #1 factor in high-performing teams. Make it safe to ask naive questions.
The ROI of Cross-Industry Hiring
This isn’t just feel-good theory. The business case is solid:
- Faster innovation: BCG found diverse-hiring firms launch 2.5x more products per year
- Lower attrition: Gartner reports 30% lower turnover in such teams, likely due to richer learning environments
- More resilient strategy: Teams that aren’t locked into one way of thinking adapt faster to market shifts
Tip: Conduct “Culture Add” interviews rather than “Culture Fit” interviews. Ask: How will this person challenge our assumptions—not just blend in?
What This Means for Global Business
In global markets, the need for cross-industry and cross-cultural teams is even greater.
Example: Uber’s failure in China was partly due to a lack of local insight. Didi, in contrast, hired public transit experts and built regulatory relationships early.
When venturing into new markets or domains, don’t limit your search to the typical suspects. Search for people who’ve walked different paths. They might just see the future more clearly.
Final Thought
Diversity isn’t about ticking boxes. It’s about seeing around corners, challenging orthodoxy, and unlocking potential. Hiring across industries isn’t risky—it’s essential.
Because the real disruption often comes from someone who’s never done it “that way” before.
Strength lies in differences, not in similarities.” — Stephen R. Covey
References:
- Epstein, David. Range: Why Generalists Triumph in a Specialized World. Riverhead Books, 2019.
- Page, Scott E. The Diversity Bonus: How Great Teams Pay Off in the Knowledge Economy. Princeton University Press, 2017.
- Johansson, Frans. The Medici Effect: What Elephants and Epidemics Can Teach Us About Innovation. Harvard Business Review Press, 2006.
- Harvard Business Review. “How and Where Diversity Drives Financial Performance.” 2018.
- McKinsey & Company. Delivering Through Diversity. 2018.
- PwC. Future of Customer Experience Survey 2022.
- LinkedIn Learning. 2023 Workplace Learning Report.
- Gartner. Diversity and Inclusion Analytics. 2022.
- BCG. The Mix That Matters: Innovation Through Diversity. 2017.
- Watkins, Michael D. The First 90 Days: Proven Strategies for Getting Up to Speed Faster and Smarter. Harvard Business Review Press, 2013.
- Google. Project Aristotle: Understanding Team Effectiveness.
- Chouinard, Yvon. Let My People Go Surfing: The Education of a Reluctant Businessman. Penguin Books, 2006.
