The Importance of Diversity in Board Composition

A board is a body that supervises an institution and ensures that it functions legally and in the best interests of stakeholders and shareholders. It does so independently of company management and day-to-day operations. The role of a board is a crucial one, especially as the world is evolving in a more volatile way with new risks and opportunities.

A successful board includes an array of abilities leadership styles, experiences and styles. This is a requirement to think differently and from different perspectives. The composition of the board must be carefully thought through and planned, taking into account the needs of the leadership in the present and the future.

Boards also need to be agile and flexible enough to react to rapidly changing issues, which may require them to reconsider their structure and committees. For example, the rapid increase in cybersecurity threats has required boards to acquire new expertise in this field. In addition, the global volatility has led boards to find directors who have experience in managing difficult times.

A well-run board can recruit and keep members with diverse backgrounds, skills, and perspectives to help it to achieve its goals. This is the reason it’s essential for boards to implement a matrix for their boards that helps them find people with the right mix of hard and soft skills. This can be used with a board portal such as iBabs to assist new directors quickly get up to speed by providing them with greater opportunities for collaboration and interaction with their peers.

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