You can’t get listed on NASDAQ without a diverse board and many investors like Blackrock are now requiring diversity in leadership and in the boardroom. Additionally, over the last several years we have seen volumes of research and data tell us that companies with diverse boards are more profitable and perform better. As a result, we’ve seen companies increase their efforts to intentionally diversify their boards and leadership.
But, is adding diversity to your boardroom enough?
Starting a new board for any first-time board member is hard. You are entering a very small, usually close-knit group of people that have been together likely for several years or even decades. They are new to you and you are new to them. You each must learn to trust each other. But if you are the first, the few, or the only in the boardroom, the journey to the boardroom is even more difficult.
You might quickly find yourself as the only one who has a different perspective and thus the outlier on most topics. You might not know the “rules of the road” when it comes to board dynamics. You might also struggle with imposter syndrome and question whether you were asked to join the board simply to “check the box.”
As a CEO or board member, you have an opportunity to address some of these concerns right from the start to ensure a smooth transition for your new board. Here are 5 strategies you can do to help create a more inclusive boardroom:
- Expect different opinions.
If you appoint a new board member from an underrepresented or diverse background, then expect that you will get different opinions or thoughts than you had before. Welcome these conversations rather than stifle or ignore them or ask them “why they can’t just agree with everyone else.” - Don’t refer to your new director as the “diverse candidate.”
If your director is feeling like they were appointed to simply comply with a diversity mandate, they will not have a sense of belonging. Characterizing recruiting in this manner also undermines the skills and qualifications of a diverse candidate when they join the board. Right from the start, they will feel like they have to hustle a little bit harder to prove they belong in the room. Instead, frame your recruiting efforts like this — wanting to appoint the most qualified person for the position, that is also diverse, making them even more qualified because of their unique perspective. Make it clear that you are not lowering your standards. - Notice who is NOT speaking during a meeting.
During meetings oftentimes there are one or two voices that dominate a conversation. This makes it hard for others to contribute. In a group discussion, intentionally involve everyone, especially the less vocal. You can encourage contrarian ideas by asking the group, “Why will this idea not work?” - Don’t place the entire burden of diversity, equity, and inclusion (DEI) on one person.
DEI should be a strategic priority for the entire board. It is essential that all members of your board, especially the CEO, are actively involved in advocating for a strong DEI program at your company in order for it to be successful. Employees are looking for executive teams and boards who are genuinely examining their workplace, doing the work and making positive changes—not just window dressing. - Be an Ally.
Allyship is a verb. It requires action. It is not just about saying that you believe in DEI, it is about intentionally taking action to advance its efforts, such as interrupting bias when you hear it or ensuring that underrepresented voices are heard. Reach out to a new board member who may be the “only” in the room and find ways to support them. Proactively reach out and give them history and context as to the board dynamics so they are prepared when they join their first meeting. Check in periodically to see how they are doing. By investing time in building that personal relationship, you will not only pass down critical information on how to succeed as a new board member but more importantly, you will create a more welcoming space for that director to voice their opinion during a meeting.
By implementing these strategies in the boardroom, you will ensure that all voices are heard and all perspectives are considered. Once those unique perspectives are welcomed, you will benefit from all the advantages a diverse board can provide you.
Written by Tricia Montalvo Timm.
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