We, in Atlanta, have a special feeling for diversity and as Partner in The Koblentz Group, the issue of diversity is personal and professional.
Diversity, however defined, has gained acceptance among our corporate leaders. Yet, many CEOs and board members of Atlanta companies continue to define diversity narrowly. In my view, a broad view of diversity creates tangible value and Boards must lead by promoting inclusion, going forward.
Domestic corporate boards have been historically male, with females filling less than 15 % of Fortune 1000 board seats. Nearly 30% of Fortune 1000 companies have no female directors.
European companies have turned to regulations specifically designed to increase board diversity. Is that where the United States is headed?
This is more than a male/female issue, but one of diversity and competencies. I have experienced this first hand as our clients seek to recruit diverse members for their boards.
Professional women want to be valued for industry knowledge, critical thinking, intellect, emotional intelligence and integrity. To evaluate a potential board candidate strictly on gender is therefore a disservice to both candidate and shareholders. A one dimension overview marginalizes the competencies each woman has worked hard to acquire. In discussing board opportunities with qualified women, clearly, these highly successful individuals want to be respected first and foremost for the competencies they possess rather than as a “diversity candidate.”
More companies are acknowledging that qualified women provide tangible shareholder value and are valuing diversity as a competence.
The Wellesley Centers for Women commented;
“Women bring a collaborative leadership style that benefits boardroom dynamics by incresing the amount of listening, social support, and win-win problem-solving. Although women are often collaborative leaders, they do not shy away from controversial issues. Women also bring new issues and perspectives to the table, broadening the content of boardrooms discussions to include the perspectives of multiple stakeholders.”
It is our responsibility to evaluate each client’s unique requirements, i.e. their business case, and to present each board with the most qualified candidates based on a “deep dive” approach that takes into account their situation, diversity included. We encourage our clients to focus on the compentencies and strengths of individuals, and to take into accoun that diversity often brings valuable insights, complimentary skills, and experiences to bear on complex boardroom matters. We are blessed in Atlanta with having exceptional women, such as Mylle Mangum, Martha Brooks, and Carol Tome serving as notable role models of the value they bring to thier numerous boards. Through their diverse skill set, companies such as Haverty’s, Harley Davidson, the Atlanta Fed, and UPS have greatly benefited from the wisdom of these highly qualified individuals.
So, yes, I support diversity, but it should be considered within the broader context respecting each individual’s unique accomplishments and competencies, including specific industry or functional experience, leadership skills, knowledge of enterprise risk factors, and cultural boardroom fit.
Regulating the number of women on any given board likely will lead to a disservice to the shareholders. Hopefully the European concept is not in our future!
So what needs to happen?
Simply said, women must win and perform well in high impact leadership positions to gain the competencies and board recognition needed to compete for director election.
As Elin Hurvenes, founder of the Professional Boards Forum advised;
“Don’t sit around and wait for divine intervention. Realize you are on your own and make it known to everyone in your network that you are ready, qualified and keen to take on a non-executive director role. Spend some time thinking about what type of company, size, sector and board role you feel ready to take on. Define the skills and abilities you will bring to a board and how will you be able to contribute, and then articulate it.”
Boards gain advantage with the right blend of skills to govern strategy and deal with governance challenges. In my work, I remain committed to presenting highly credentialed candidates while strongly urging our clients, based in Atlanta and elsewhere, to recognize the true value that diversity provides inside the boardroom.