The Importance of Diversity in Board Composition

A board is a body which oversees an organisation and ensures that it is operating legally and in the best interest of shareholders and stakeholders. It does this without regard to the management of the company and its day-to-day operations. The role of a board is vital, especially in a world that is constantly changing and become more volatile as it encounters new dangers.

A great board is comprised of a mix of capabilities, experiences and leadership styles. This includes the ability to think differently and from various perspectives. The composition of the board must be carefully assessed and planned taking into account the needs of the leadership as well as the future.

Boards also need to be flexible and nimble enough to adapt to changing situations, which usually require the board to revise its structure and committees. For example, the rapid growth of cybersecurity threats has required boards to acquire new expertise in this field. Additionally the global volatility has led boards to look for directors who have the experience of managing turbulent times.

A well-run board must be able to find and retain members with a variety of backgrounds, experiences and perspectives which can help the board meet its objectives. It is essential that boards utilize a board-matrix to help them find candidates with the right combination of hard and soft capabilities. This can be used with an online board portal like iBabs to help new directors get up-to-speed quickly by giving them greater opportunities to collaborate and interact with their colleagues.

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