What’s the perfect mix for a board of directors? Well, they should all be well informed as to the organization’s mission and be able to give the time necessary to further that mission. In addition, board members must be trusted by those that the organization serves and abide by legal and fiduciary obligations.
Ideally, a board should be comprised of individuals with varied backgrounds, skills, perspectives and areas of expertise. Those members should strive to maintain a board that reflects the makeup and diversity of the communities served. Geographic diversity should also be a goal for the board to capture the needs of constituents in all areas served by the organization.
When constructing a quality board of directors, organizations should seek individuals who are experienced, responsible and collaborative for an environment in which challenging issues can be confronted, opposing opinions are sought and trust is implicit. Here’s why:
• Having multiple views on the possible outcomes of any action makes for a decision-making process that is more likely to take into account the various risks, consequences and implications of possible actions. A diverse board allows for the group to better anticipate and consider the concerns and perspectives of all its members.
• A board needs to draw upon a range of experiences in understanding opportunities, anticipating challenges and assessing risks. Rarely does a right or wrong answer exist for the many issues a board faces. A board needs to constantly challenge itself to keep pace with the changing dynamics a company faces. That is best done through a dialogue of differing views as long as they are offered respectfully and listened to carefully.
• Creating a board composed of directors with a broad range of perspectives must be a conscious choice by the nominating committee. The natural tendency to turn to your own network when looking to identify candidates is too limiting. Look at the bigger picture of qualified candidates. The benefits of having a diverse board are particularly powerful when there are varied perspectives to support broad thinking.
Diversity of perspective within a board does matter. Having a broad range of collective attributes, rather than overlapping or redundant qualities, helps the board significantly in fulfilling its responsibilities of providing good governance and strategic oversight to membership. Boards that can collectively draw upon a broad assortment of competencies, priorities and insights are an invaluable resource to their members.
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