Simple Strategies for Building Board Diversity
Josette Thompson, Managing Director and Diversity Lead at Prosek Partners
The business case for diversity has been made time and again in numerous studies, and rightfully so. We know that diverse teams lead to better outcomes and have an impact on a company’s bottom line. Yet, when we look at public companies and non-profit organizations and their boards of directors, there is still an overall lack of diversity. There certainly has been progress made, particularly over the past few years with companies like Goldman Sachs announcing it would only carry out IPOs for companies with at least one woman or non-White board member, and BlackRock calling for its portfolio companies to increase their gender diversity on boards.
As we look at the broader business environment in light of COVID-19, an increased focus on ESG, and the social awakening about disparities related to race and ethnicity, the timing couldn’t be more urgent for organizations to examine and address the diversity (or lack thereof) within their ranks, and particularly at the board level.
So, why is it seemingly so difficult for organizations to tap diverse talent for board seats? The short answer is that it’s not necessarily that challenging, but like any business initiative, a strategic approach with clear parameters and goals is needed to achieve success. The three most important steps to follow for organizations looking to diversify their board of directors, include: implementing creative recruitment strategies, seeking out diverse skill sets, and building in accountability with existing board members.
- Think creatively about recruitment. Consider creating advisory groups or associate boards that tap emerging leaders who can be groomed for future board seats. Millennials are among the most diverse generations in the U.S., and by seeking out and actively investing in that next level of talent, organizations will naturally be exposed to a more diverse slate.
- Identify skill sets that can enhance the strength of the board. Increasingly, executives with communications, marketing and technology skills are sought-after candidates as they can help boards fully understand and communicate to their audiences, introduce social media processes and enhance operations with advanced tech. By seeking out diversified skills, you will increase your ability to tap into diverse talent whether than be by ethnicity, gender or also important, diversity of thought.
- Hold board members accountable. Typically, board seats are sourced somewhat informally through existing relationships. To diversify the candidate slate, take an audit of the existing board and identify where gaps need to be filled. In addition to ethnic or gender diversity, think about geographic and cognitive diversity, and have honest conversations about why diversity is a strategic priority and important to the success of the organization. Challenge board members to think creatively with their personal recommendations, outlining the skills and other characteristics that will make the board more effective.
Overall, diversity for the sake of diversity won’t cut it, and when it comes to creating impactful change, communication is key. Solicit the perspectives of all board members, give them a platform to share even if they don’t hold a popular opinion, and cultivate the diversity of thought you will undoubtedly tap into by looking beyond the usual board candidates.
About the Author: Josette Thompson is a managing director and diversity lead at Prosek Partners. She is also on the board of directors for The HOPE Program, a workforce development nonprofit.
