Diversity is a state of mind.
The logic goes something like this:
Diverse boards are more likely to recognise and understand the diverse needs of their customers and the communities they operate in.
By structuring boards to be diverse and creating an environment in which alternative insights are expressed and listened to, these boards are more likely to make better strategic decisions.
Better strategic decisions, well executed are more likely to lead to improved business performance and deliver the value which the board is responsible for creating.
Given this compelling argument, why is the reality often different?
Diverse boards means having to listen to people who don’t think like you, which may be exciting but is also challenging and often uncomfortable.
‘Because I say so’ may work for small children but not for those approaching adulthood and certainly not in a boardroom of highly talented individuals.
The goalposts are moving daily. The rapidly changing business environment is shortening strategic planning timescales and requiring business leaders to engage across a complex web of geographical, gender and generational boundaries. The language (vocabulary and idiom) for dialogue is continuously developing and it is easy to be left behind.
What does this mean for boards?
The challenge is to create a board with a shared vision but different perspectives.
Board recruitment and succession planning need to be imaginative, seeking to complement rather than replicate existing knowledge, skills and experience.
Board development needs to recognise the merits of creative tension and create a respect for difference. When evidencing diversity, the use of age and gender are simplifications.
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Cutting Through the Grey 