Teams with diverse expertise produce innovative ideas, but are they practical?

Friday, January 17, 2025

By Rachel Doherty

Researcher from the School of Accounting and Finance explores the challenges of turning creative ideas into workable solutions

A recent study led by Dr. Adam Presslee from the University of Waterloo’s School of Accounting and Finance is challenging the belief that teams with diverse skill sets are inherently more creative. Collaborating with researchers from Xiamen University and Texas Tech University, the study explored how teams with different skill sets generate and refine ideas using advanced neuroimaging technology.

The research is the first in the accounting field to use functional near-infrared spectroscopy (fNIRS) to examine team creativity. Teams composed of engineers and accountants were tasked with coming up with creative uses for an unused university space. While these teams produced more unique ideas, the study found their solutions often lacked practicality compared to teams with more aligned expertise.

“Our study challenges the trendy belief that teams with diverse expertise always boost creativity,” said Adam Presslee, a professor from the School of Accounting and Finance at Waterloo. “While teams with differing skill sets and perspectives tend to come up with more original ideas, they also face friction when trying to turn those ideas into practical, implementable solutions.”

Adam Presslee Headshot
A women sitting in a chair attached to a neuroimaging machine.

The findings offer important insights for businesses, suggesting that team composition should be aligned with specific creative goals. Diverse teams may be ideal for generating innovative ideas, but for practical, implementable solutions, a more uniform team might be more effective.

This research, published in Management Science, provides valuable guidance for managers looking to optimize team performance and creativity. By understanding the trade-offs between diversity and practicality, businesses can better harness their teams’ creative potential.

To learn more, read the full story on Waterloo News.