The Importance of Diversity in Board Composition
A board is a group of individuals who oversees and guides an organization to ensure it is operating legally and in the best interests of shareholders and stakeholders. It does this independent of the management of the company as well as day-today operations. The role of a board member is vital particularly in a world which is constantly changing and become more volatile as it encounters new dangers.
A successful board is composed from a variety of abilities, experiences and leadership styles. This is a reflection of diversity of thought and the ability to think outside of the box and examine an issue from all angles. The composition of the board should be carefully planned and considered in accordance with the requirements of leadership today and in the future.
Boards also have to be flexible and agile enough to be able to respond to quickly changing circumstances, which could require them to reconsider their structure and committees. For instance the rapid increase in cybersecurity threats has required boards to find new expertise in this field. In addition, the global volatility has led boards to seek out directors who have had experience in managing difficult times.
A successful board should be able to attract and keep members with different backgrounds, perspectives, and skills that can assist the board reach its goals. It is essential that boards utilize a board-matrix to help them identify candidates who possess the right mix of hard and soft capabilities. This can be used in conjunction with an online portal for boards like iBabs to help new directors become more proficient by providing them with greater chances to collaborate and engage with their peers.