Board Diversity is an aim of all associations to be more inclusive, remain relevant and prepare for the future. It takes time and effort to achieve the goals of diversification on the board. It takes a willingness to review the way your business is managed, and the people who sit on the boardroom, to see how it can be improved.
Diverse board members with diverse skills and experiences that are in line with the direction of the company help the board to make better decisions, which enhances the performance of the business and benefits all stakeholders – employees as well as suppliers and communities. Diversity stimulates new ways of thinking and problem-solving, provides new perspectives and generates value.
When we bring in a woman into a boardroom for instance, this provides us with insight into the preferences and culture of women customers. The added perspective helps the board make decisions that will improve services and products and build stronger relationships with consumers. This is among the main reasons for why an effective diversity strategy for the boardroom is crucial.
A variety of academics have proposed that improving the diversity of the board will expand its knowledge base, providing information that would otherwise go under the radar of a homogenous board. A more recent study of board dynamics suggests that the demographic diversity of the board is less important than what new directors can bring to the table in terms of knowledge or experience, and also relationships.
Boards can promote diversity in a variety of ways, including by setting targets and extending the pool of candidates and promoting inclusion throughout the organization. It is important to create an approach that is compatible with your needs and the culture.
Add Comment