Boards & Governance

Diversity in the Boardroom: The Importance of Change

NACD Blog Feed -

For years, boards have discussed diversity but little action has been taken. Demographic shifts and the continuing focus on global competitiveness point to change on the horizon.  While it won’t happen tomorrow, all signs point to increasing diversity within the next few decades — when the current millennials are in their 50s, the boardroom will be much more racially diverse.

I recently addressed two highly engaged groups in Washington, D.C., and the attendees reflected very similar attributes and a common aspiration — a desire to gain their first board seat. My advice for gaining that first board seat was clear. It’s all about who — and what — you know.

The first group I met with was from Ascend, and the second group was from Women in the Boardroom. While the composition and mission of the latter is evident, the former may be new to you. Ascend is an association consisting of nearly 50,000 Pan-Asian leaders who are passionate about ascending the highest ranks of business. I spoke during Ascend’s recent global conference of more than 2,500 people.

NACD believes diversity is a global business imperative. I mentioned during my talks that NACD has been a champion of diversity in the boardroom for more than 37 years, dedicating content, events and actions to the issue. Further, we don’t define boardroom diversity as being simply about color or gender. It’s about diversity of thought, perspectives and experience – from a cognitive perspective.  Ideally, the skills, experiences and perspectives of a company’s directors should reflect those required to proactively oversee the company’s strategy.

For more information about NACD’s positon on diversity in the boardroom, please read our Blue Ribbon Commission Report here.

“Full Range” Reading: 25+ NACD Deep Dives for 2015

NACD Blog Feed -

Have you resolved to become even more proactive and knowledgeable as a director in 2015? I commend you!  As Dr. Reatha Clark King says in the annual Chairman’s letter, which appears in the January-February 2015 issue of NACD Directorship,

[S]trong boards should work with management to stay abreast of the full range of matters that may affect the success of companies. Today the emergence of significant issues on relatively short notice requires both management and boards to adapt more quickly.

To keep you current the first items on your reading list should surely be Directors Daily, NACD Directorship magazine, and the white papers and other timely content that flows from our Advisory Councils, NACD Directorship 2020® events, and many other educational programs.

But in addition to consulting these resources, consider making time for some of our deeper-dive publications, which provide extensive data and comprehensive guidance on key boardroom issues, both perennial and emerging. To help you locate the material that will be of most interest to you, here is a quick (at-a-glance) “catalog” of the most popular and most topical publications on the NACD bookshelves.

NACD’S ANNUAL SURVEYS. These studies cover governance trends among public, private, and nonprofit boards, as well as public-company director compensation. The facts and figures clearly presented here in charts, tables, and graphs—along with nuanced interpretation of the data collected—will enable you to benchmark your board’s practices against your peers’, no matter what size or type of organization you govern.

For more than 20 years, NACD has been tracking governance trends by industry and company size, from multibillion-dollar firms to those with under $50 million in revenues. Topics analyzed include board size, director hours, board priorities, committee variety, and specific practices for the oversight of risk and for CEO succession, to name just a few. While other fine organizations now support the effort to research board practices, NACD surveys are unparalleled in the scope of their topics and the size of respondent pools they cover.

BLUE RIBBON COMMISSION REPORTS. Our widely respected series of Blue Ribbon Commission (BRC) reports is required reading for directors who want to increase their mastery of the many issues facing them. Every year, NACD invites a new and select group of prominent board leaders and subject-matter experts to gather for dialogue about an emerging issue. Chaired by well-known leaders in the business or legal community, the commissions produce authoritative reports that have been cited in legal cases (notably Brehm v. Eisner, 2000) and have even been called “prophetic” by Delaware Supreme Court Justice Jack Jacobs, speaking at the University of Delaware. The following links lead to the most recent editions of 13 of these unique and eminently useful reports.

HANDBOOKS. Last but not least, for a firmer grasp of director duties, you may wish to consider one or more of NACD’s definitive handbooks, which are authored by experts and focus on the “how to” of directorship.

And, coming soon, The Family Business Board (in two volumes)!

Happy reading!

Subscribe to Lonergan Partners aggregator - Boards & Governance