Inclusion and diversity in boardrooms are not only moral requirements but also strategic requirements. Diverse boards are:
- 25% more likely to be profitable than average (McKinsey).
- Twice as likely to reach or surpass financial targets and six times more likely to be creative and adaptable (Deloitte).
Two main models to boost inclusion and diversity on boards:
The Rooney Rule: Originally implemented in the US Football League (NFL), it mandates that teams interview minority applicants for leadership roles. Today, organisations have modified the policy to allow a diverse group of individuals to be considered for board positions.
Diversity Quota System: Several European nations have instituted this approach, which sets a minimum percentage of women or minorities on company boards to guarantee proper representation.
Summary
Organisations can enjoy the rewards of expanded perspectives, improved decision-making, and higher profitability by combining tried-and-tested frameworks with novel approaches such as mentorship programmes, unconscious bias training, and skills-based selection. Accepting diversity is a step towards building a more robust and successful company as well as an equitable society.
Our 'Eyes On Production' survey is professionally crafted to benchmark your team's progress and guide you in DEI initiatives.
Learn how 'Eyes On Production' consultation guides you in creating a safe and productive workplace at: https://www.talenttrustservices.com/eyes-on-production
This is advice only. Always ask a consultant.