It’s encouraging to see boards increasingly focusing on gender and ethnicity as well as diversity, yet they aren’t always able to fulfill their potential. Boards who rely on the recruiting of diverse directors to “check boxes” may end up with a board that is diverse in demographics but lacking in cognitive diversity, which could decrease the effectiveness of boards.
When the right diversity is brought to a board the outcomes can be transformational. For instance, when women are included on a board and their perspectives on issues like merchandising or marketing are brought to the table during deliberations it can result in an improved understanding of the customer and their requirements that will likely increase profits and sales.
Diversity can also improve the work environment of a business. For instance an executive board that has demographically diverse members can be more attuned to issues surrounding sexual harassment and discrimination at work and https://affordableboard.com/4-key-components-of-a-successful-strategic-plan/ more likely to anticipate changing attitudes of employees regarding equal pay and other corporate practices.
If a board wants to take its diversity initiatives to the next level, a good place to start is by contemplating what it will look like in the future and how it will identify and find people with the right expertise, experience, and contacts to make the change. To achieve this, the board can conduct a self-assessment to determine its current composition. It can also utilize resources such as Michigan Nonprofit Association’s board diversity tool to stimulate candid conversations between board members and other key stakeholders about what they are looking for in terms diversity.