“Boards are intellectually and socially enriched by the presence of women and consistently more effective through balanced judgment and opinion in decision-making.”
Sir Roger Carr, Chairman, Centrica

By taking positive steps, a company can quickly begin to improve the gender balance of its board. The key is to ensure it is a strategic issue, not a women’s issue. Following the global financial crisis, board effectiveness is more critical than ever, and companies should be rigorously assessing their leadership teams.

Developing the pipeline

To increase the overall pool of women qualified to serve at board level, it is imperative that companies develop their own talent by:

• Identifying women within the organisation with board-level qualities;
• Making sure there is a range of initiatives in place to ensure that women progress: these could include introducing flexible working; assessing institutional policies, culture, language and processes; understanding barriers to progression;
• Instigating sponsorship programmes to develop promising individuals;
• Ensuring all managers, many of whom are men, are conscious of the issue.

This issue is a vital one to resolve if we are to see a sustainable and growing pool of female talent that will benefit businesses: there is more to do to ‘unlock’ this and we would like to hear from you if you are developing programmes or have ideas to help here.

Sourcing non-execs

Firms can improve the diversity of their non-exec directors by:

• Ensuring the nominations process encourages the emergence of female candidates;
• Making sure any executive search firm they use has demonstrable experience conducting successful board searches for women and diverse candidates. A number of firms working in the field of board appointments have developed specific ideas and lists of female candidates, consistent with the 30% Club’s aims. Visit Executive search firms;
• Looking more laterally at top-performing senior executives and experienced women in other fields and non-profit organisations to spot potential board members, since women currently serving on other boards are often already committed;
• Considering senior women who may not have previous board experience;
• Contacting groups such as the Professional Boards Forum, which works with highly qualified women to introduce them to company Chairmen and the board working environment.

Formalising the selection process

Companies can introduce better procedures to promote diversity, for example by:

• Ensuring the Nominations Committee develops not just a profile of board member competencies but a clear understanding of the qualities needed to further overall board effectiveness;
• Ensure that the nominations process involves lateral thinking about candidates, not necessarily requiring prior board experience, but considering candidates with strong intrinsic capabilities.
• Limiting board terms, so there is a regular requirement to recruit new people with fresh perspectives, thus reinvigorating the board;
• Making sure there are female candidates on long- and shortlists and that an executive search firm is clearly briefed if a female board member is the preferred outcome, provided there is a candidate of sufficient merit.

The 30% Club is working on more detailed recommendations in each of these areas and will develop guidance that will be added to the website.