The Diverse Board: Moving From Interest to Action

The co-chairs of the Blue Ribbon Commission Report on The Diverse Board: Moving From Interest to Action introduce the report's actionable recommendations.

Our hope is that this report will soon be obsolete.

Until recently, corporate boards have been predominantly homogenous groups—largely lacking in diversity of gender, race, and world view— with seemingly little appetite for change. Today, after decades of relatively unvaried boardroom composition, we are at an inflection point. This composition model, long assumed to be effective, is now outdated.

Demographic, societal, and economic changes are rapidly shaping a future that looks very different from the past. Stakeholders of corporations, including shareholders, customers, employees, suppliers, and regulators are increasingly aware of, and often times reflect, these broad population trends. Board composition, however, has not always kept pace.

SLOW PROGRESS

The benefits of board diversity, both tangible and intangible, range from greater understanding of customers and employees to the value of having multiple perspectives around the table. Yet despite demonstrated openness to diversity, boards have been slow to incorporate it. The sluggish transition to more diverse boards has been antithetical to the pace of business, technology, and human progress in general. In fact, board diversity has lagged behind the increased diversity we see today in all other facets of society.

The world is changing, and it is happening faster than ever. As directors, we have a responsibility to prepare for the future of our organizations and to take the strategic actions necessary to adapt to the rapidly changing world in which our companies must compete. And that means being able to look at our companies and ourselves with a critical eye. This commission understands that change of this type is difficult—change always is. But good intentions alone have not worked; only sustained leadership by the director community will move our organizations in the right direction.  

More than a few exemplary boards have seen the road ahead and made the necessary changes. This commission is composed of individuals who have had the good fortune to serve on such boards. Indeed, many of the commission members have led movements to bring diversity to their companies or organizations.

THE DIVERSITY MANDATE

In light of new global trends and business imperatives, the need for diversity of experience and perspective has become an unmistakable mandate. This issue is too important to be delegated entirely to management; it belongs to the board, which has a major role in unlocking the potential of the organization and its leaders.

Some who read this report may think that skills alone matter, and that diversity of gender, race, and background should not be an issue for boards. Others might argue that women and racially diverse individuals are statistically underrepresented on boards and assert that companies need to “right” this situation.

This commission views diversity, first and foremost, as a business issue—as a means to competitiveness. A board’s performance relies on its understanding of the company and its operating environment. In today’s business landscape, the board cannot properly fulfill this responsibility without having directors who reflect the composition of its stakeholders, particularly its employees and customers. Put simply: corporations will not be able to build or maintain a successful enterprise that yields sustainable long-term shareholder value, without bringing a greater variety of perspectives into the boardroom.

Every director has a responsibility to set a tone at the top that embraces and leverages this new reality. The board has a unique role and responsibility in diversifying its own membership, and, ultimately, the leadership and workforce of the organization.  

This report outlines the current state of boardroom composition, offers a road map to help improve board diversity, and identifies tactics to overcome the key barriers to broader diversity. Our hope is that every board embraces this message and acts on it.

Sincerely,

Curtis Crawford

Cari Dominguez

Bill McCracken

Kathi Seifert