Diversity and Inclusion is More Intricate than Adding a Few Women on Boards

When we discuss diversity, gender and race are usually the first factors that come to mind. These are frequently highlighted aspects of diversity. However, diversity encompasses much more. In my view, every individual brings a unique form of diversity. Since no one understands your individuality better than you, if your specific diversity isn’t immediately clear, it’s your responsibility to demonstrate to the chairperson or nominations committee how your unique perspective could enhance their board.

Despite significant progress in increasing female and racial diversity on boards, there remains substantial work to be done. It’s essential to shift focus from just gender and race to a broader spectrum of perspectives. For instance, a woman should be included not solely because of her gender but because she offers a distinct viewpoint that can contribute to better decision-making and deeper insights into issues the board might have previously overlooked. This principle applies to all board members.

Diversity can manifest in many dimensions, including:

• Gender
• Race
• Religion
• Age
• Geography
• Disability
• Functional experience
• Education
• Interests

There are probably many more forms of diversity that I haven’t thought of yet. Can you add any that may be relevant to you?

A board that includes a diverse range of individuals will benefit from a more comprehensive and multi-dimensional understanding of the issues it faces, leading to improved decision-making. However, it is up to you, as a candidate, to identify which aspects make you stand out and to persuade those responsible for board appointments that your unique perspective would be advantageous.

Creating a board with a wide range of perspectives requires deliberate effort from the nominating committee. It’s easy to fall into the trap of drawing from familiar networks, which can perpetuate a homogeneous group. Often, we are unaware of how limited our networks are compared to the broader pool of qualified candidates.

The benefits of a diverse board are especially pronounced when there is a critical mass of varied viewpoints. The modern view is that a board is better off if the representation is as balanced as possible.

It’s important to note that diversity for its own sake isn’t the goal. Diversity without unity can lead to a ‘cacophony of voices,’ where differing opinions clash rather than contribute constructively. We need to keep in mind that cultural fit is still important to boards. Also, board members must possess a solid foundation of business experience and judgment and must be chosen to align with the company’s strategic needs. The challenge for nominating committees is to assemble a board where diverse perspectives and personalities work within a coherent framework to serve the organization’s needs effectively. Good governance involves having a breadth of perspective. It’s about bringing in ideas from outside. A board lacking quality input will likely have weaker governance and less disciplined business practices.

How can nomination committees effectively incorporate diverse perspectives into candidate selection?

Define Competencies and Priorities

Establish what competencies and insights are needed, including functional or regional expertise, as well as conceptual thinking, resilience, and the ability to manage ambiguity. The specific competencies will vary from board to board and require careful consideration by the committee.

Conduct a Comprehensive Gap Analysis

Analyze the board’s current attributes and identify any gaps. Traditional gap analyses often focus on a narrow range of competencies, but expanding this to include diverse attributes and experiences can provide a more complete picture of the board’s needs.

Prioritize Communication Skills and Interpersonal Acumen

Effective communication is crucial, especially in diverse settings where shared perspectives are not assumed. Candidates should have a history of working with various groups, articulating their views clearly, and engaging in productive dialogue.

Broaden the Search

Until now, C-suite executives have found it much easier to gain a board or committee role than those without C-suite experience. Nomination committees need to consider emerging talent just below the C-suite level. These candidates can offer fresh perspectives and energy and increase diverse thinking on a board.

Implement a Rigorous Evaluation Process

Ensure that there is a thorough evaluation process in place to maintain high standards and goals. This helps avoid the “clubby” mentality and ensures robust direction and assessment.

The Point of Diversity on Boards

Diversity of perspective is crucial. A board with a wide range of attributes, rather than redundant qualities, enhances its ability to provide strong governance and strategic oversight. Boards with diverse competencies, priorities, and insights offer invaluable support to CEOs and management teams navigating complex business environments. Such diversity fosters innovation, improves risk management, and strengthens connections with various stakeholders.

While progress has been made, there is still much work to be done. Women are often considered for boards based on demographic diversity rather than the specific perspectives they bring. However, as the pool of qualified women expands and boards become more aware of the importance of broad perspectives, we can expect continued improvement in board diversity. Although our focus has been on women, these principles are applicable beyond gender considerations and should include all strands of diversity.