Achieving Board Diversity
Board Diversity is an aim of all associations to be more inclusive, stay relevant and plan for the future. Achieving the objectives of diversity on boards requires time and effort. It requires an openness to look at the way your association is managed and who sits in the boardroom, and to think about how the process could be improved and to take decisions that will impact the future of the organization.
The diversity of board members with expertise and experiences that are supportive of an envisioned future help the board make better decisions that improves the performance of the company and is beneficial to everyone associated with the business – employees, shareholders, suppliers and communities. Diverse thinking stimulates new ways of thinking and problem-solving, provides options and adds value.
When we bring an individual woman into a boardroom for example, it adds insight into the tastes and habits of female customers. This helps the board to make decisions that enhance products and services, and strengthen relationships with consumers. This is why a well-thought-out diversity strategy is vital for the boardroom.
Many academics have suggested that improving the demographic composition of boards will expand the knowledge base of the board, through providing information that would otherwise be a mystery when the board was homogeneous. A recent study on board dynamics suggests that the demographic diversity of the board is not as important than what new directors can bring to the board in terms expertise, experience and relationships.
Boards can encourage diversity in a variety ways including setting targets and securing more candidates and promoting inclusion throughout the company. It is essential to devise a plan that is appropriate to your requirements and culture.
