The Importance of Diversity in Board Composition

A board is a set of people which oversees an organisation and ensures that it is legally run in the best interest of shareholders and stakeholders. It does this independently from the management of the company and its day-to-day activities. The role of a board is a essential one, particularly as the world continues to change in a more volatile way with new opportunities and risks.

A successful board includes an array of abilities, leadership styles and experiences. This is a requirement to think differently and from various perspectives. The composition of the board needs to be carefully thought out and planned considering the requirements of leadership today and in the future.

Boards also need to be agile and flexible enough to adapt to rapidly changing situations, which could require them to rethink their structure and committees. For example the rapid development of cybersecurity risks has forced boards to search for new expertise in this field. In addition, the global volatility has forced boards to look for directors who have experience in managing challenging times.

A well-run board will be able to recruit and retain members who have diverse backgrounds, abilities, and perspectives to help it reach its goals. It’s crucial that boards use an effective board-matrix to select candidates with the right mix of hard and soft capabilities. This can be used in conjunction with a board portal like iBabs which can assist new directors become proficient quickly by giving them more opportunities to collaborate and interaction with their peers.