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Board Diversity is an aim that associations are striving for to be more inclusive, remain relevant and prepare for the future. It takes time and dedication to reach the goals of board diversification. It requires the willingness to examine the way your organization is run and who sits in the boardroom to consider how the process could be improved and make decisions that affect the future of the association.
The diversity of board members with skills and experiences that support an imagined future helps the board make better decisions which enhances the performance of the company and benefits all stakeholders in the company – employees, shareholders and suppliers, as well communities. Diversity stimulates new ways of thinking and problem solving, which creates new perspectives and generates value.
When we bring in female board members, for example, this provides us with insight into the values and attitudes of women customers. This information helps the board to make decisions that improve the quality of products and services, and also strengthen relationships with customers. This is why a well-thought-out diversity strategy is essential for the boardroom.
A number of academics have argued that improving the diversity of the board will increase its knowledge base by providing information that is otherwise not noticed by a board with a homogenous composition. A recent study on board dynamics suggests, however, that the demographic diversity of the board is not as important than what new directors can bring their website to the board in terms of their expertise or experience, and also relationships.
Boards can promote diversity in a variety of ways, such as by setting goals and extending the pool of candidates, and encouraging inclusion throughout the organization. The most important thing is to create the best strategy to meet your needs and be a good fit with your culture.
