What are the key strategies to ensure diversity in board composition?
Diversity in board composition is not only a matter of social justice, but also a source of competitive advantage for businesses. A diverse board can enhance decision-making, innovation, stakeholder engagement, and reputation. However, achieving diversity in board composition is not easy, as many factors can limit the representation and participation of different groups. In this article, you will learn some key strategies to ensure diversity in board composition, based on best practices and recommendations from experts and organizations.
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Deepa PurushothamanFounder re.write | Author | Senior Executive | Executive Fellow Harvard Business School | Board Member | TED Speaker
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Ngozi CadmusTEDx Speaker | I help organisations create mentally healthy, happy workforces for enhanced employee well-being and…
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Kasia JakimowiczEnabling Global Digital Innovation Ecosystems | AI Policy Technologist | Avid Explorer | Ocean & Mental Wellness…
The first step to ensure diversity in board composition is to assess the current situation and identify the gaps and opportunities. You can use various tools and frameworks to evaluate the diversity of your board, such as the Global Board Diversity Tracker by Egon Zehnder, the Board Diversity Census by Deloitte and the Alliance for Board Diversity, or the Board Diversity Toolkit by Catalyst. These tools can help you measure the diversity of your board across different dimensions, such as gender, race, ethnicity, age, disability, sexual orientation, and skills. You can also compare your board diversity with your peers, your industry, and your market.
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An effective board must reflect the company's composition and customer base so decisions aren't made in a vacuum. Racial and gender diversity should be no-brainers, though issues persist. Boards are not mirroring frontline staff and company culture risk being out of touch and making hollow decisions. The answer is simple: look at your brilliant workforce. The key to your next board member is right there. Rather than parachuting in big names, promote from within - people who know the organization intimately. An authentic blend of internal experience and external expertise often makes the best board. But it starts with the intent to create accurate representation. That commitment enables finding incredible diverse talent already within.
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Assessing the current situation is a foundational step in promoting board diversity. However, it’s also crucial to cultivate an inclusive environment where diverse voices are heard and valued. Diversity extends beyond representation, encompassing the various perspectives and ideas that board members bring. A focus on inclusion ensures that the board doesn’t just look diverse but leverages the multifaceted insights that diversity offers. This involves creating spaces where board members feel comfortable sharing unique viewpoints, and where differing opinions are encouraged and respected, driving richer discussions and more robust decision-making processes.
The second step to ensure diversity in board composition is to set clear and measurable goals that align with your business strategy and vision. You can use the SMART framework to define your goals, which means they should be specific, measurable, achievable, relevant, and time-bound. For example, you can set a goal to increase the percentage of women on your board from 25% to 40% by 2025, or to have at least one board member from each of the regions where you operate by 2023. You can also use the 30% Club, a global campaign that aims to achieve at least 30% women on boards, as a benchmark or inspiration.
The third step to ensure diversity in board composition is to expand the pool of candidates and avoid relying on the same sources and networks. You can use various methods and channels to find and attract diverse candidates, such as executive search firms, professional associations, databases, referrals, or social media. You can also partner with organizations that promote diversity in leadership, such as Women Corporate Directors, Black Corporate Directors, or Out Leadership. You should also ensure that your selection criteria and process are fair and transparent, and that you avoid biases and stereotypes.
The fourth step to ensure diversity in board composition is to support and develop existing board members and create a culture of inclusion and belonging. You can provide mentoring, coaching, training, or networking opportunities to help your board members grow and succeed. You can also encourage them to share their perspectives, experiences, and insights, and to challenge the status quo. You should also foster a respectful and collaborative environment, where everyone feels valued and respected, and where diversity is celebrated and leveraged.
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More than just looking at board composition we need to make sure that people who takes seats have room and space to show up in full voice. Just having people in seats isn’t enough. They need to be able to bring their lives experiences to the boardroom if we really want the gather their full value and contributions.
The fifth step to ensure diversity in board composition is to monitor and report on progress and hold yourself and others accountable. You can use indicators and metrics to track and evaluate the impact of your diversity efforts, such as the composition, performance, satisfaction, and turnover of your board. You can also communicate your progress and achievements to your stakeholders, such as your shareholders, employees, customers, and regulators. You should also seek feedback and input from your board members and other parties, and use it to improve and refine your strategy.
The sixth and final step to ensure diversity in board composition is to learn and adapt to the changing needs and expectations of your business and society. You should recognize that diversity is not a one-time project, but a continuous journey that requires commitment and flexibility. You should also be open to new ideas, trends, and best practices, and to learn from other organizations and leaders that have achieved diversity in board composition. You should also be ready to face and overcome the challenges and barriers that may arise, and to celebrate and reward the successes and benefits.
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The great thing about having a diverse and fully engaged board, and allowing them to be there authentically, is that it automatically helps with learning and adapting. If you have a diverse board with a growth mindset, they will welcome change and challenges with flexibility. Getting to this goal is not as difficult for the people that have moved well past needing the business case. It just makes sense.
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Consider what the broader concept of diversity entails. In my opinion, diversity on boards is about enabling a diversity of voices - not only in terms of ensuring gender and demographical representation but also in terms of safeguarding representation of different know-how. For instance, including AI governance and sustainability experts in board composition.
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Board diversity isn’t about having different faces in the boardroom. It’s about genuinely valuing and leveraging diverse perspectives and experiences. One way to assess the commitment to real diversity is to look at how diverse members are appointed to critical board committees to foster creativity, innovation and strategic decision making. Bias on boards to maintain the status quo is a persistent challenge that limits progress.
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