Taking Board Diversity to the Next Level

While it’s good to see that boards are focusing on addressing issues related to gender, race and diversity in the boardroom, many are struggling to realize their true potential. Boards who treat the hiring of diverse directors as an “check box” exercise could end with a largely diverse board, but one that is not cognitive diversity, which can significantly hinder the effectiveness of the board.

If the right pop over to this site diversity is brought to a board and the results can be transformative. If women are represented on a board, their perspectives on subjects like merchandising or marketing are able to be incorporated on deliberations. The result is a better understanding of the customer’s needs, which will likely boost sales and profit.

Diversity can also enhance the workplace environment of the company. A board that is diverse can be more sensitive to issues like discrimination in the workplace and sexual harassment and better equipped to anticipate changes in attitudes of employees regarding equality of pay and corporate practices.

If a board is planning to advance its efforts in diversity to the next step it’s a good idea to think about what it should look like and how it will identify and recruit candidates who possess the knowledge, skills of experience, and contacts needed to achieve that. To this end it could consider conducting self-assessments of its current composition and using resources like Michigan Nonprofit Association’s board diversity tool to encourage honest discussions among board members and other key stakeholders on what the board is looking for in terms of diversity.