By Tanya Castell, CEO of Changing the Chemistry.

Finding the key for success in business performance is something most companies strive for. While it may sound like something that results from a long, process driven procedure, in reality, it can be achieved by board members taking a few simple but meaningful steps. 

At our recent roundtable event, hosted in partnership with Deloitte and the Scottish Council for Development and Industry, we highlighted to both existing and aspiring board members from a range of sectors that the answer to ensuring successful business performance and innovation lies with a diverse board.

Jay Bevington, Partner at Deloitte leading the Board Advisory Practice, spoke at the event and drew on various observations from his experience in assessing board performance. He highlighted that effective boards have many characteristics in common, these include:

  • A selection of the right people with a diverse range of skills and experiences;
  • A board that focuses on outcomes and is aware of its impact and the value it adds;
  • For board members to truly understand why the organisation is successful;
  • Ensuring the board has clear lines of communication with a range of stakeholders from employees to customers;
  • A board that is able to apply the right balance between support and challenge (a good board is able to do both);
  • To be willing and able to self-reflect, review and develop;
  • Having an effective chair and CEO.

Changing the Chemistry aims to engage, educate and connect potential board members to not only improve business performance and innovation, but also to help streamline organisational processes. When recruiting and appointing to the board, it is important to remember that a broad set of viewpoints, skills and experiences can maximise performance. 

During our roundtable event, we asked: "What does diversity mean?" The response created lively discussion and we talked about what works well in boardrooms, drawing on examples of innovation such as rotational members and board shadowing.

Another interesting aspect of our discussion was the link between increased diversity (gender and ethnicity) and financial performance. We also talked about the challenges that come from a homogeneous board, group thinking and the impact of unconscious bias. Changing the Chemistry believes boards have a responsibility to seek out diverse candidates and adopt appropriate recruitment procedures to bring real benefits to business.

In terms of who's already succeeding, some people considered public sector boards to be amongst those that had made the most progress. This was down to greater transparency and accessibility to different roles. In the private sector, many agreed that there is work to be done and that there's a reliance on existing networks which often comprise of like-minded individuals. There was a discussion as to whether the private sector was guilty of unconscious bias, recruiting individuals who look and sound like existing members and excluding those who don't fit what is considered to be the 'norm'.

Attendees left the evening with a task: to think about what one step they could take within their organisations to promote diversity of thought in the boardroom. This should be viewed as a shared responsibility as we believe it's the key to increasing efficiency and functionality both inside and outside the boardroom.

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