The Importance of Diversity in Board Composition

A board is a set of individuals who oversees and guides an organization to ensure it is operating legally and in the best interest of stakeholders and shareholders. They do this independent of the management of the company and its day-to-day activities. The role of a board is vital, especially in a world that is constantly changing and become more volatile due to new threats.

A successful board includes diverse skills, leadership styles and experiences. This includes a diversity of ideas, and the ability to think outside of the box and examine a situation from all angles. The composition of the board needs to be carefully planned and considered in accordance with the requirements of leadership today and in the future.

Boards also need to be flexible and agile enough to respond to rapidly changing issues, which may require them to reconsider their structure and committees. For instance the rapid growth of cybersecurity threats has required boards to find new expertise in this area. Additionally, global volatility has forced boards to search for directors who have had experience in managing difficult times.

A well-run board will be able to attract and retain members who have different backgrounds, skills and perspectives to help it to achieve its goals. This is why it’s important for boards to implement a matrix for their boards that helps to find candidates who possess the right mix of hard and soft skills. This can be used with an online board portal like iBabs to help new directors get up-to-speed quickly by providing them with greater opportunities to collaborate and interact with their colleagues.