Although organizations today are trying to increase their board diversity, there is still a distinct lack of visible Black leaders.
An absence of diversity in senior management is not just damaging to a firm’s reputation; it represents a missed opportunity. A diverse board with a range of viewpoints and experiences mitigates groupthink and is, therefore, a prerequisite to the success of a leadership team and an organization as a whole.
Companies have implemented policies and initiatives to increase board diversity in the last few years. In the UK, for example, 96 FTSE 100 companies now have at least one ethnic minority board member due to a requirement put in place by the government in 2017. In the U.S., The Securities and Exchange Commission has also put in place Board Diversity Rules in 2021, requiring most Nasdaq companies to have at least two board members who are women or part of an underrepresented minority or LGBTQ+ by 2025.
Despite this, companies are still failing specifically to bring Black leaders on boards. In the UK, the Parker Review found that out of 186 directors in the FTSE 100, only 16% are Black. Meanwhile, in the U.S., things get a bit more complicated; The Conference Board found that African American board directors in the S&P 500 have stagnated at 12% regardless of the Board Diversity Rules requirements, and this is due to challenges by conservative groups claiming these rules violate the U.S. Constitution’s prohibition of discriminatory laws and restraints on free speech.
How can your company fix the lack of Black leaders on the board?
If organizations are serious about introducing more diversity at board level, work needs to be done to create an environment where Black and other diverse leaders will be appointed and be able to succeed.
Learn to talk openly about race
Before carrying out any changes, board members must understand what obstacles Black talent face in the workplace and on their route to the boardroom. This starts by opening up the conversation on race and systemic racism within business. Our report Can I say that? How comfortable are we talking about race in the workplace?, released in 2021 with our sister company INvolve, suggests that barriers still exist in simply being able to discuss the lack of representation in business and the experience of diverse leaders. It also provides an insight into how the conversation on race is developing in organizations and offers actions that can be taken.
Assessing the appointment process
Board members should be aware of their recruitment process and ensure that they are putting tangible change in place to become more inclusive. Members should reflect on:
- The demographic of existing board members’ professional networks: A survey carried out by Harvard Business Review found that 54 percent of Black directors were known to a fellow board member before being appointed. With that in mind, do the directors’ networks reflect a diverse pool of potential new members?
- The factors being used to rule potential candidates out: Are these genuine reasons, or is bias interfering with the process? To understand what biases come into play when recruiting new talent, download our Inclusive Recruitment Guide.
- The relevant experience genuinely needed by the board: Is having CEO experience really necessary to excel at the job? What skills are lacking in the current board composition that a new director can bring?
- The onboarding process for new directors: Are new members shadowing current board members to gain insight and experience? Are they getting regular feedback, guidance, and support to guarantee high performance, psychological safety, and belonging?
Through these evaluations, those involved in selection and appointment processes will be able to identify which processes require modification to welcome more diverse directors.
DEI training for board members
Many organizations provide DEI training for employees, but it doesn’t always reach the board level despite how vital it is for senior leadership to drive change. Implementing training programs and workshops that are specific to board level and led by experts in the space is imperative to identifying and eradicating potential biases at play in the selection process.
These trainings and workshops can provide insight such as:
- How to talk about race in the workplace
- Share practical actions directors can take to become advocates of Black colleagues
- Take practical action to tackle biases rather than just raising awareness that they exist
- Equip board members with tools to help confront their own and others’ biases through both introspection and practical action
- Instill an environment where diverse opinions will be listened to
Training and workshops are essential to foster an inclusive culture within the board. It shows a willingness to address many challenges in creating an inclusive environment and building a foundation ready to allow Black directors to succeed.
Mentoring and sponsorship for Black leaders
Mentoring and sponsorships can assist with board diversification.
It’s evident that in a corporate career, it’s important to create networks, and Black directors are more likely to be introduced to boards by those they know. Mentors and sponsors can make these connections through introductions to the right people and guide potential board members on some of the core competencies they need to develop.
Sponsors can also champion leaders by putting them forward for development opportunities, such as internal or external board development programs for potential new directors.
Widening the gate through accountability
Board members can help build a pipeline of diverse leaders by ensuring that the organization takes a strategic approach to DEI led by leadership. If leaders can’t make it to senior management positions within the organization, then board positions will always look homogenous. Therefore, the board needs to hold leadership teams accountable for defining plans to accelerate Black talent in management and leadership.
These should include putting in place tangible aims that Black employees can undertake to prepare them for leadership, with step-by-step processes and targets to be met.
Partnering with diverse networks
Engaging with organizations that support diverse groups into board positions, such as the Black Boardroom Initiative, The Board Challenge, the Black Professionals Network, the Black Economic Alliance, and the BYP Network, can increase knowledge of the challenges faced by Black leaders on their route to the boardroom and open the door to relationships with senior Black talent.
These networks support Black leaders and connect Black directors to organizations.
Reach out to executive search companies
The Harvard Business Review survey also found that 33 percent of Black directors introduced to boards were placed by executive search firms, in contrast to 25% of white board members.
Audeliss has extensive knowledge of helping boards become more diverse. We engage with our diverse senior networks to find Non-Executive Directors who can bring a new perspective on strategic leadership while meeting your brief on skills, knowledge, and experience. Since 2011, 83% of our global board appointments have been diverse.
If you want to increase your Board diversity, get in touch with us to see how we can help.
