Balancing Boards

introduction

The under utilisation of the talents of women on both public and private boards is a global issue. The recent economic turmoil has focussed increased attention on the issue from government, business, investors and the media. Added to this is the underlying reality that women now represent a huge talent pool, have leadership skills needed for future success, contribute to innovation and problem solving and make the majority of consumer decisions.

Foreword

“There is still a disappointing lack of women on corporate and public sector boards. Back in 2003 the Higgs review of corporate governance highlighted that non executive directors were typically white males, nearing retirement age with PLC experience.  It showed that the supply of talent that was out there was not being sufficiently drawn upon and that areas in which women were strongly represented were often ignored.  To be honest the picture has only improved slightly in the intervening years.

Increasing the diversity of boards has always been an issue close to the heart of Opportunity Now.  We were founded in October 1991 in response to a Hansard Review which detailed the lack of women on boards.
We strongly believe that it is not a woman’s issue but rather a very important business issue. There is much compelling evidence that demonstrates that more balanced boards create better businesses.   We know there isn’t a silver bullet to make boards more balanced.  Instead it requires numerous interventions, tactics and dedication and commitment.    The solution to more balanced boards often lies in fixing inhospitable organisational cultures.  It is an issue which requires senior buy-in and action.
We have created this online toolkit as a resource for organisations that are looking to take more action.  It contains an overview of stats which paint a powerful picture of the business imperative.  It also explores some of the barriers, and offers advice to chairs about what action they should be taking personally to ensure that the rhetoric becomes a reality.”
I hope if will prove to be a useful resource.

Helen Wells, Director, Opportunity Now

executive summary

Low rates of participation in gender diversity on boards is a global issue, particularly in the private sector.  Public sector boards have a better balance, but there is still much to do as the rate of change is extremely slow, it will take an estimated 73 years for equal numbers of women to become directors of FTSE 100 companies.  A balanced board provides many business benefits, not least of all improved financial performance and corporate governance. Governments across the globe are keen to see change, and progress is being made, albeit slowly.  Different methods are being used, some such as Norway have introduced mandatory quotas, others like the UK, having established targets for diversity on public boards have opted for a voluntary approach to the private sector.
This research  takes a snapshot of the situation today, and gives guidance on taking the gender agenda forward. The issue is clear, although there are sufficient numbers of talented women available to balance the board, their careers paths are jeopardised by outdated practices. The final section of this document , the  Opportunity Now toolkit aims to provide good practice recommendations to facilitate behaviour and cultural change, to empower an organisation to make the necessary changes  that will lead to the proven business benefits of a balanced board.

Brochure