Corporate Board Diversity
Investors, customers and the general public are demanding that the board of directors of a business reflect the demographics of the community it serves. Adding diverse members increases the effectiveness of a board and also gives it a more positive reputation as discover here an employer. But diversity in a company boardroom can be different to different boards and companies.
Diversity is often defined in terms of gender and ethnicity. However, the benefits of diversity go beyond the traditional attributes. Research suggests that boards with a higher variety of experiences in the workplace are less likely to fall prey to groupthink. The idea is that directors with different backgrounds and perspectives are better able to challenge their own views to create robust discussions, stress-test alternatives and produce more informed decisions than those with similar backgrounds.
It’s hard to argue with the need for greater diversity in corporate boards, but it can be difficult for board chairpersons and executives to identify the best candidates. Some advocacy groups provide lists of possible board candidates however, they aren’t often in the networks of board chairs or have not been considered for top management positions.
Boards can begin by examining their current member profile. Then, they can utilize their annual evaluations to eliminate members who are no longer productive and find new talent that matches the future prospects of the business. They can also tap into their advisors and consultants to find the trailblazers that aren’t part of their homogenous director pool.