Archive for the ‘Board Composition’ Category

Boardroom Diversity: There is Work to Be Done

August 5th, 2015 | By

In all my years as a director, I have found that boards with the most gumption, versatility, and innovative force share one common attribute: diversity.

When we embrace diversity—of gender, race, culture, or perspective—we stretch our minds and transcend the limits of our own experience. These actions empower us to think, and to lead, “beyond borders.”

Diversity has become a global business imperative, and I am delighted by the work being done by my friends and esteemed colleagues at the National Association of Corporate Directors (NACD) to promote all types of diversity in the boardroom.

The 2015 Global Board Leaders’ Summit will open with NACD’s first-ever Diversity Symposium, which will take place on September 26 from 12:30 to 5:30 p.m. Discussion at the Symposium will focus on the following topics:

  • Unconscious Bias — Less than 15 percent of American men are over 6-feet tall, yet almost 60 percent of CEOs are taller than 6 feet. Unconscious biases like the one implied by this pair of statistics can significantly influence how we think and make decisions. Leaving such biases at the door can create space for new talent and innovative ideas.
  • Case Study: The Rooney Rule — The 2003 Rooney Rule requires NFL teams to interview minority candidates for head-coaching and other top-level positions, and over the past 12 years its implementation has dramatically increased diversity on NFL coaching and front-office staffs. How might this rule inspire new practices in the boardroom?
  • Meet the 21st-Century Board — In order to compete globally, companies will need to recruit a new breed of director. Who are the directors that will form this boardroom vanguard? What skills do they possess? And where can they be found?
  • The Diverse Board: Moving From Interest to Action — With findings in the Report of the NACD Blue Ribbon Commission on The Diverse Board as their starting point, seasoned directors and experts will discuss specific, actionable steps you can take to optimize the composition of your board.

The business world is not the same as it was 30, 10, or even 5 years ago. Today’s boardroom is a reflection of the changes that have occurred in the marketplace and in society at large. Much progress has been made in incorporating new perspectives and heterogeneous backgrounds into the sphere of corporate directorship, but we have much work yet to do.

Join me and NACD in going “beyond borders” and championing the ideals that will change the boardroom, our companies, and the global economy for the better.

Prepare to gain unexpected connections, insights, and inspiration.

2015 NACD Global Board Leaders’ Summit | Beyond Borders. Leadership Evolved.
September 26–29, Washington DC

For more information about the NACD Global Board Leaders’ Summit, visit www.NACDonline.org/Summit.

Diversity in the Boardroom: The Importance of Change

February 23rd, 2015 | By

For years, boards have discussed diversity but little action has been taken. Demographic shifts and the continuing focus on global competitiveness point to change on the horizon.  While it won’t happen tomorrow, all signs point to increasing diversity within the next few decades — when the current millennials are in their 50s, the boardroom will be much more racially diverse.

I recently addressed two highly engaged groups in Washington, D.C., and the attendees reflected very similar attributes and a common aspiration — a desire to gain their first board seat. My advice for gaining that first board seat was clear. It’s all about who — and what — you know.

The first group I met with was from Ascend, and the second group was from Women in the Boardroom. While the composition and mission of the latter is evident, the former may be new to you. Ascend is an association consisting of nearly 50,000 Pan-Asian leaders who are passionate about ascending the highest ranks of business. I spoke during Ascend’s recent global conference of more than 2,500 people.

NACD believes diversity is a global business imperative. I mentioned during my talks that NACD has been a champion of diversity in the boardroom for more than 37 years, dedicating content, events and actions to the issue. Further, we don’t define boardroom diversity as being simply about color or gender. It’s about diversity of thought, perspectives and experience – from a cognitive perspective.  Ideally, the skills, experiences and perspectives of a company’s directors should reflect those required to proactively oversee the company’s strategy.

For more information about NACD’s positon on diversity in the boardroom, please read our Blue Ribbon Commission Report here.

Through the Boardroom Lens

July 25th, 2014 | By

Directors attending the recent NACD Directorship 2020® event in Denver, Colorado engaged in group discussions about how boards can anticipate and effectively respond to environmental and competitive disruptors in the marketplace.

The half-day symposium at the Ritz-Carlton on July 15 was the second of three NACD Directorship 2020 events this year addressing seven disruptive forces and their implications for the boardroom. Summaries of the Denver speakers’ main points are available here.

Following each speaker, directors developed key takeaways for boards. Those takeaways fell within the parameters of the five elements of effective board leadership defined at last year’s NACD Directorship 2020 forums: strategic board leadership and processes, boardroom dynamics and culture, information and awareness, board composition, and goals and metrics.

Environmental Disruptor Takeaways

Strategic Board Leadership and Processes

  • Crisis response plan. Ensure that the company has a contingency plan in place that takes into account a potential environmental crisis. The plan should include how the company will respond to disruptions in the supply chain and production cycle, as well as to employees, customers, and investors.

Boardroom Dynamics and Culture

  • Culture. Boardroom culture should reflect that directors are ready and willing to be held accountable for environmental or climatological issues that arise for the company.

Information and Awareness

  • Engagement. The company should have an established communications plan to use in response to requests from shareholders and stakeholders regarding environmental matters.

Goals and Metrics

  • Green metrics. Becoming a sustainability-focused company requires adopting a long-term commitment to the cause. The board can communicate that commitment by establishing environment-related performance metrics that align with the corporate strategy.

Competitive Disruptor Takeaways

Strategic Board Leadership and Processes

  • Board agenda. Set aside time on the board agenda to discuss forward-looking strategy, so that the board’s focus is not limited to reviewing the company’s past performance.

Boardroom Dynamics and Culture

  • Culture. Fostering innovation requires risk. The culture throughout the organization should support failure and risk taking within the company’s tolerances. Also invite outside experts—or “white space” teams—to help trigger new, innovative thoughts.

Board Composition

  • Composition. Board composition should reflect a diversity of thought and experience. Regardless of background, directors should be willing to ask probing questions and stay aware of marketplace trends.

Goals and metrics

  • Understanding the marketplace. Management should be able to answer who future competitors might be and what trends might gain traction.