It’s encouraging that boards are increasing their focus on gender, ethnicity, and diversity, but many are struggling to fulfill their potential. Boards who treat the hiring of diverse directors as an “check box” exercise could end with a diverse demographic board, but a lack of cognitive https://affordableboard.com/10-questions-boards-need-to-ask-about-cybersecurity/ diversity that can dramatically reduce board effectiveness.

When the right diversity is brought to a board, the results can be transformational. For instance, when women are on the board and their viewpoints on subjects like marketing or merchandising come to bear on deliberations, the result can be an increased understanding of customers and their needs. This can increase profits and sales.

The benefits of diversity can also extend to the company’s environment. A board with a diverse population can be more sensitive to issues such as workplace bias and sexual harassment and better able to anticipate changes in employee attitudes about equal pay and corporate practices.

If a board is looking to advance its efforts in diversity to the next step, it’s a good idea to think about what it might look like and how it will identify and hire candidates who possess the knowledge, skills, experience and contacts necessary to make that happen. To achieve this, the board could conduct a self-assessment to determine its current composition. It can also make use of tools like Michigan Nonprofit Association’s board diversity tool to spark open conversations between board members and other key stakeholders about what they are looking for in terms diversity.