Although organizations today are making efforts 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 the reputation of a firm, it represents a missed opportunity. A diverse board with a range of viewpoints and experiences mitigates group think and is therefore a prerequisite to the success of a leadership team and an organization as a whole.

In the last few years, companies have put in place policies and initiatives to increase their Board diversity. In the UK for example, 94 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 new Board Diversity Rules, where companies looking to list on Nasdaq are required to have at least one member of an underrepresented minority in their Boards.

Despite this, companies are still failing specifically to bring Black leaders on board. In 2020, Stanford University found that 3 percent of Fortune 100 CEOs were Black and African American, and according to Black Enterprise, out of 5,466 S&P 500 directors and chairs, only 14 were Black American. Meanwhile in the UK, the Parker Review found that there were only six FTSE 100 CEOs that are from a minority ethnic background, and it doesn’t specify whether any are Black.

How can your company fix the lack of Black leaders on the Board?

If organizations are serious about introducing more diversity at Board level, there is work that 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 last year 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 have an awareness of their recruitment process and ensure that they are putting in place tangible change 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, are the directors’ networks reflecting a diverse pool of potential new members?
• The factors that are being used to rule potential candidates out: are these genuine reasons or is bias interfering with the process? To understand what biases come at play when recruiting new talent, download our Inclusive Recruitment Guide.
• The relevant experience truly 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 in order 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 which 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

Trainings and workshops are important to foster an inclusive culture within the Board. It shows a willingness to address many of the 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 are able to create these connections through introductions to the right people and also 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 to build a pipeline of diverse leaders by ensuring that the organization is taking a strategic approach to DEI led by leadership. If leaders can’t make it to senior management positions within the organization, then Board positions are always going to look out for each. Therefore the Board needs to hold leadership teams accountable for defining plans to accelerate Black talent into 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 on the challenges faced by Black leaders on their route to the boardroom, and open the door to relationships with senior Black talent.

These networks provide support for Black leaders but also connect Black directors to organizations.

Reach out to executive search companies

The Harvard Business Review survey also found that 33 percent of Black directors that were introduced into Boards were placed by executive search firms, in contrast to 25 percent of white Board members.

Audeliss has extensive knowledge in 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.