Achieving Board Diversity

Board Diversity is an aim that associations are striving for to be more inclusive, remain relevant and plan for the future. It takes time and effort to accomplish the goals of diversification on the board. It requires the willingness to examine the way your association is governed and who sits in the boardroom to see how the process can be improved, and to make decisions that will affect the future of your organization.

Diverse board members with different skills and experiences that align with the future direction of the company help the board to make better decisions, which enhances the performance of the business and benefits all stakeholders – employees as well as suppliers and communities. Diverse thinking stimulates new ways of thinking and problem solving, creates options and adds value.

When we bring in women into boardrooms, for instance, this provides insight into the preferences and culture of women customers. This perspective assists the board in making decisions that improve the quality of products and services, as well as strengthen relationships with consumers. This is why a properly thought-out diversity strategy is so important for the boardroom.

A number of academics have claimed that increasing the diversity of the board will increase its knowledge base by providing information that would otherwise go not noticed by a board with a homogenous composition. A recent study on board dynamics suggests, however, that the diversity of the board is less important than what new directors can bring to the table in terms of expertise, experience and relationships.

Boards can encourage diversity in a variety of ways, such as by setting goals in addition to expanding the candidate pool, and encouraging inclusion throughout the company. It is important to create an appropriate strategy that matches your requirements and culture.

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