Every year, the number of news articles on gender diversity in the business environment peaks in the month of March. On March 8, the UN emphasizes the importance of gender balance in society during International Women’s Day. About a week later, Equal Pay Day highlights the still existing pay gap between men and women in the US. The day marks how far into the next year women need to work to earn the same as men did in the previous year.

Leadership qualities

Maya Angelou once said: In diversity there is strength. In the boardroom and elsewhere, this statement is increasingly embraced for several reasons. Numerous studies show that diverse teams with members from different backgrounds perform better and support the thesis that it is important to get more women in leadership positions. For example, research from Harvard Business Review shows that in today’s society, women score better than men on seventeen of the nineteen most important leadership competencies, including taking initiative, personal development, integrity, being result-driven and problem-solving ability.

Advantages of diversity

The benefits of diversity are seemingly obvious; it provides new perspectives, a fresh way of thinking, and also more innovation and creativity. Organizations that consciously opt for more diversity and inclusion in the boardroom and top management are healthier. They also attract talent more easily and appear to be better able to retain this talent. Moreover, organizations with a diverse top are demonstrably less likely to abuse power. What positive impact can the vision and way of thinking of female board members have on a corporation? Feminine leadership qualities such as cooperation, empathizing with conflicting interests, and taking multiple perspectives into account in decision-making are important attributes of effective leadership – especially in turbulent times.

At the top and the front door

Under which conditions does board diversity flourish? Diversity in the boardroom offers strategic opportunities that benefit everyone. Commitment from the top of the organization is a requirement. Responsibility for an inclusive diversity policy must be on the priority list of the company. In addition, it is key that diversity policy becomes a permanent part of regular strategic and HR policy. Diversity starts at the front door; be critical and look carefully at the recruitment process. This ensures that diversity does not depend on a few dedicated people but that it is integrated throughout the organization.

Getting serious about board diversity

Despite multiple studies showing the positive impact of board diversity, the reality is more complex. In 2018, Senate Bill (SB) 826 got approved, which required publicly held companies in California to have a minimum number of female directors on their corporate board by the end of 2021. The California secretary of state issued a report in March last year on board diversity and found that 186 out of 716 corporations had complied with the gender diversity bill SB 826. While that is not an overwhelming result, and the Bill got struck down in court in May 2022, the state is still positive about this progress. Diversity is about numbers; inclusiveness is about behavior. Truly diverse organizations do not make this choice to avoid sanctions or because it makes them look good. Diversity can improve a company’s performance, with the caveat that people are hired or awarded a position based on their actual added value and unique identity, not to meet a quota or standard.

First-time directors

Companies that are serious about diversity are increasingly looking at first-time directors. However, they are not lowering the bar when it comes to the needed skills, expertise, experience, and mindset expected from a board member. So no matter what your gender or demographic background is, being board ready before joining a board is essential when you want to secure a board seat.

At Corporate Boards USA, our mission is to prepare executives to be highly qualified board candidates. We offer our members educational courses and events, networking opportunities, boardroom news, workshops, and mentorship programs.  If you’re serious about getting on the path to the boardroom, apply for membership. We Make You Board Ready.