25 Oct Achieving Board Diversity
Boards require a wide spectrum of expertise to meet the demands and complexity of businesses and organizations. Different board members offer the depth of expertise, multiple perspectives, and the https://affordableboard.com/4-key-components-of-a-successful-strategic-plan/ wealth of experience required for effective discussions that lead to well-rounded decisions.
Many boards still struggle to make this leap from “nice-to-have” to a requirement. The discussion about diversity in boardrooms is often focused on ethnicity and social background as well as gender. However, it is important to broaden the discussion to include a variety of professional backgrounds and qualifications.
A diverse board requires commitment and a change in approach. Some trustees are not comfortable with revising their existing procedures, like the tendency for board nominating committees to put their search in the same areas for new members. Boards can boost their diversity by broadening the search area and by incorporating diverse communities. They can also recruit candidates with expertise in areas that the company is in the greatest need of (for example, an organization focusing on marketing may be seeking candidates with a background in geopolitics, or multinational companies may require directors with expertise in geopolitics) and making connections before the need arises historically underrepresented candidates.
The trustees who report a more equitable board culture say that having the right mix of professional and social diversity fosters a board atmosphere where all views are respected. They argue that boards with diversity are better equipped to comprehend the complex issues that confront their organization, as well as the challenges faced by the stakeholders and customers.