Posts Tagged ‘board diversity’

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.

What a Difference Three Years Makes

February 14th, 2013 | By

The state of the economy was remarkably different the last time NACD issued a governance survey dedicated to nonprofit organizations. In 2009, companies were just starting to stage a recovery from the financial crisis, and action plans were in the formative stages. At that point, survey respondents indicated the areas of most critical importance to their board were “board leadership,” “ethics and social responsibility,” and “board effectiveness.”

Fast forward three years to the 2012–2013 NACD Nonprofit Governance Survey, which shows that nonprofit boards have altered structures to meet the economic climate. Across the board, nonprofits have shifted focus to areas directly related to performance and strategy. Today, survey respondents indicate the priority governance issues are those that drive results: “strategic planning and oversight,” “fundraising,” and “financial oversight/internal controls.”

In addition to a more performance-driven outlook, nonprofit organizations have also increased the number of diverse directors present in the boardroom. According to NACD’s 2012 Blue Ribbon Commission on the Diverse Board, this development is a logical step, as boardroom diversity is a business issue: a means to competitiveness. Nonprofits are therefore more than competitive—female representation is ubiquitous with 97.7 percent of respondents reporting at least one female director on their board. The percentage of boards with at least one minority director has increased nearly 20 percent since 2009 to 76.4 percent.

Nonprofit organizations are ahead of their public and private company peers with respect to boardroom diversity. For public companies, diversity is a focus of pension funds and other institutions, as noted in last week’s NACD Directors Daily. Groups such as the Thirty Percent Coalition are urging Russell 1000 companies to increase gender equality on boards specifically—setting a goal that 30 percent of board seats are held by women by 2015. To meet this, U.S. public companies would need to work fast—current reports estimate that just 12 to 16 percent of board seats are currently held by women. Furthermore, according to NACD’s 2012–2013 Public Company Governance Survey, 27.4 percent of boards have zero female directors.

For more information about the 2012–2013 NACD Nonprofit Governance Survey, visit NACD’s bookstore.