The benefits of diversity on boards are well-documented and efforts to improve the representation of minorities and women in boardrooms are beginning to pay off. The impact of diversity on performance is still not well understood.
An argument that is often cited is the fact that a board with a greater diversity of ages and genders will have a wider knowledge base. This information would not be available to a group of men and women who are the same. In other words, a board with more diversity is expected to have more „cognitive variety“ and explore more options for deciding how to move the business forward than a less diverse one.
But there are other factors that are at play. People who are seen as tokens or minorities in a group may self-censor and avoid expressing opinions and beliefs that are in opposition to the majority. This means that the board might not be able to take full advantage of the https://boardroomsales.com/ cognitive diversity it has incorporated into its makeup.
Additionally, while research in the field of academia suggests that demographic diversity has a positive impact on board decisions, research shows that it’s not the only factor to consider. Other aspects, like board independence and education qualifications, measured by the number of years of college education beyond a bachelor’s degree can also have a significant effect on performance.
To find new members, companies should be creative in searching for them. Companies should, for example look into contacting business schools and universities to identify potential candidates. They could also create task forces that are tasked with examining the areas where the most qualified candidates might not be easily identified. This is a more efficient method of increasing diversity than relying solely on consultants either external or internal.
