While it’s gratifying that boards are increasingly focusing on addressing issues of gender, ethnicity and diversity in the boardroom, many are struggling to realize their full potential. Boards that treat the recruiting of diverse directors as a „check box“ exercise may end with a largely diverse board, but a lack of cognitive diversity, which could drastically hinder the effectiveness of the board.

When diversity is introduced to a board in the right method, the results could be transformative. For instance, if women are on the board and their perspectives on subjects like marketing or merchandising are brought to the table during deliberations and the result is an improved understanding of customers and their requirements that will likely increase profits and sales.

Diversity can also improve the company’s environment. For example the board with members from a variety of demographics can be more aware of issues related to sexual harassment and discrimination at work and more likely to anticipate changing attitudes of employees regarding equal pay and other corporate practices.

If a board is planning to move its efforts to increase diversity to the next level it’s a good idea to think about what it should look like and how it will identify and recruit candidates who possess the knowledge, skills, experience and contacts necessary to accomplish that. To achieve this, the board might conduct a self-assessment of their current composition. It can also utilize resources such as the Michigan Nonprofit Association’s board diversity tool to facilitate open discussions between board members and other key stakeholders about what they are looking for in terms diversity.

https://affordableboard.com/10-questions-boards-need-to-ask-about-cybersecurity/