Given the fast pace and complexity of the business environment, it is critically important that the board include the right mix of skill sets and perspectives to help guide the company’s strategy and oversee risk.
While every company has different needs and different expectations placed on it by stakeholders, the following considerations may be helpful as a board works to develop a plan for enhancing diversity:
- Does the board have an appropriate level of turnover?
- Is the board making a sufficient effort to ensure that it is using board recruiting as an opportunity to add qualified candidates who not only provide the needed skill sets but also bring different backgrounds and add different ways of thinking into the boardroom?
- Does the composition of the board include directors with backgrounds who can provide special insight into important aspects of strategy, such as a key international market or the demographics of a key consumer, employee, or other stakeholder base?
- Are there other considerations that should be considered in building a diverse—and inclusive—board?
- What message is the company sending to its stakeholders with regard to the composition of the board?
This article was originally published in The Power of Difference, a supplement to the November/December 2017 issue of NACD Directorship magazine.