Methods for generating genetic diversity in a polynucleotide or polypeptide sequence are included. The methods include permutational mutagenesis strategies for introducing genetic diversity to alter or improve the function of the polynucleotide or polypeptide. The methods include aligning a set of homologous sequences and generating a consensus translation or a consensus sequence that encompasses the full diversity of the aligned sequences, and then incorporating that consensus translation or consensus sequence into a functional polypeptide or polynucleotide to test for altered or improved function.