The new UK Corporate Governance Code, formerly the Combined Code, that came into effect on the 29 June, demonstrates that the private sector have finally realised the benefit of a more diverse board, as sound business sense, and a way of avoiding the group think that led to the current economic crisis.
The code seeks to improve the accountability and increase the diversity of the private sector boards, recognising that a board comprised of talented individuals, who bring with a range of experiences and perspectives are more effective, more challenging and more efficient than the traditional board formed of people, who it often seemed were appointed for their similarities to other board members. The Code makes some very specific recommendations about trying to increase the gender diversity of board -at present, only 10% of directors in Britain’s top 100 companies are women, and 25 of the top firms have no women board members at all.
New board members, the code states, should be appointed on merit, against objective criteria, and with due regard for the benefits of diversity, including gender diversity. The Public Sector has been committed to recruiting on merit for some time, and whilst OCPA seeks to make sure appointments are transparent, it is clear from the conversations we have with participant on our About Time courses that the application process is far from straight-forward.
It will be interesting to see how the private sector approaches these recommendations, how quickly, if at all, any changes will be seen, and if there are successes in increasing the diversity of board, what the public sector will be able to learn from these.
Common Purpose’s About Time campaign to get more and more people involved in public appointments, from across a diverse range of backgrounds, walks of life, experiences and opinions has a celebrity champion! Bonnie Greer is one of the Government Equalities Office’s Diversity Ambassadors, and is doing a fantastic job at raising issues of board diversity in the national media.
In addition to the video above, Bonnie is interviewed in The Guardian’s Society section this week, talking about why it is so important for people who aren’t the ‘usual suspects’ to think about contributing to public boards, and sharing her experiences of board life. Read the article here
Bonnie suggests diversifying boards defeats complacency. It is not she says, about defeating inequality, but about keeping boards fluid. This has been at the heart of About Time since it began, boards need the breadth diversity brings to help them spot opportunities and trends. It’s not about ticking boxes, but about ensuring that the most talented individuals are appointed to board positions, to challenge the board, and stop them getting complacent.
Doncaster YMCA is a local charity and housing association, based in Wood Street. Our work focuses on young adults aged 16 to 25. Although we’re an independent body, we’re proud to be a part of the international YMCA Movement. Our Hostel is staffed 24 hours a day, all year round. We provide 26 rooms, each with its own fully equipped kitchen and living space. We recognise that homelessness is about far more than not having somewhere to live. Young adults coming to the YMCA often do so as a result of complex and traumatic situations. Residents are able to stay with us for up to two years. During that time, and for a period of around six months afterwards, our support focuses on building independent living skills and preparing for a stable adult life.
Our Board of Governors includes a President, Treasurer and between six and twelve elected members of the YMCA. We’re also able to co-opt others onto the Board to fill vacancies. At present, our Board is primarily retired people who are all experienced volunteers. All support and contribute to a wide range of charities and causes in Doncaster, and all contribute a great deal of wisdom and life experience to the YMCA. During their working lives, Board members were involved in private and statutory sector work at senior levels.
The Board recognises that it would benefit from input from a broader range of people, and we are particularly keen to involve people with current business skills. Present Board members are willing to play their part in nurturing new people, and are happy to offer guidance and support where needed.
No special qualifications are required of Board Members. Above all, we’re looking for time, wisdom and a broad life experience. The following pointers may be helpful. Time – Attending meetings every two to three months and setting time aside to read background material beforehand. – Representing the Board at YMCA social and fundraising events where possible, particularly where young adults are presenting and celebrating their projects. – Contributing to welcoming new Board members, and to helping them to learn about the YMCA and their role within it. Wisdom – Working in partnership with senior staff recognising the clear governance role of the Board. – Ensuring that matters discussed during Board meetings are treated in confidence. – Working within Doncaster YMCA’s policies and strategic plans and contributing to developing them. – Acting within the law, and complying with standards set out by the Charity Commission, Tenant Services Authority and other regulatory bodies. – Ensuring that any conflicts of interest are properly declared. – Working alongside fellow Board members, taking account of differing experiences and views in order to make sound judgements. Business experience, including a broad knowledge of change management, human resources and finance issues would be welcome but isn’t essential. Life Experience – Being aware of local community issues. – Being interested in young adults, particularly where difficult choices or chances mean that they need additional support. – Strong moral / ethical standards as a positive role model. – A sense of fairness and equality.
How do you apply or get more information?
An information pack is available for download below, or at our website www.doncaster.ymca.org.uk Alternatively, please call our Chief Executive, Louise Roffey, on 01302 342148
Changemakers are looking for new trustees to join their board. Changemakers are young people who lead positive change in their world. Anyone can be a Changemaker. The Changemakers Foundation is creating a world in which young people have the confidence to lead and everyone understands we need them to.
If you have a passion for the work of Changemakers, can think creatively and strategically and provide constructive challenge to our executive team, and have a willingness to devote the necessary time and effort we would welcome your application. We would welcome in particular applications from individuals engaged in the public sector, those with experience of youth leadership.
What competencies do you need? Commitment to our mission, vision, values and aims and objectives; A passion for the work of Changemakers; Understanding and acceptance of the legal duties, responsibilities and liabilities of trusteeship; Willingness to devote the necessary time and effort; Strategic vision and a sensitivity towards setting strategic direction; Proven track record of sound judgment, effective decision making, and corporate responsibility; Ability to think creatively; Willingness to speak their mind and to act impartially and apolitically; Ability to work effectively as a member of a team; Maintain Nolan’s seven principles of public life: selflessness, integrity, objectivity, accountability, openness, honesty and leadership.
For information on the role and how to apply: http://www.changemakers.org.uk/work-for-us
Is there anything else you should know? Applicants welcome from anywhere in the UK.
Last week, I went to the Government Equalities Office’s launch of their new Ambassadors for Public Appointments network, and the two new development courses we’re running in partnership with them. The venue was packed, and the atmosphere fantastic, as Maria Eagle and Bonnie Greer issued their call for action, highlighting the importance of public boards in making decisions, and the importance of having individuals with a diverse range of backgrounds, experiences and perspectives on every board.
Speaking to the ambassadors from across the country, of many different backgrounds, ages and with a wealth of experience between them, it was clear that everyone of them had learnt a great deal from their non-executive experience, and had acquired skills and confidence that they used in all aspects of their lives. The benefits of taking up a public appointment are many – for both the communities and wider society that the boards work with, and as part of your continual learning and development.
It would be great to hear what you’ve learnt through your non-exec roles. Have you developed new skills? Were you expecting this or has some of it been a surprise for you?
If you’d like to get involved, to take the first step of your non-exec carrier, or to make the leap to holding a more senior regional or national public appointment, why not apply for one of our About Time Public Leaders Courses.
The report detailed the Commissioners intention to continue to identify the particular issues affecting under-represented groups, and to develop practical tools to assist potential applicants from these groups. In 2008 the Commissioner was given new powers to promote diversity in public appointments, and seems determined to do all she can to make sure those appointed to public bodies are ‘drawn from the broadest possible sources of talent in society’, in the last year of her tenure.
The report also details some statistics relating to public appointments, and particularly the diversity of appointees, and the need for the development of the talent pipeline from those groups currently under-represented in public appointments becomes clear.
Whilst the report shows a slight increase in the number of women appointed or reappointed to public boards in 2008/09 on the previous year, the levels were still significantly less than the numbers recorded between 2001 and 2003. There was also a slight percentage increase in the numbers of ethnic minority candidates appointed or reappointed, up to 7.9% from 7.7% the previous year. The numbers of candidates declaring a disability fell from 4.6% in 2007/08 to 3.95 in 2008/09.The average age of appointees and reappointees continues to be between 46 and 65, with only 2% being below 35.
In the reporting year, there were 2,417 appointments and reappointments to bodies within OCPA’s remit. 1359 of these were new appointments, and 1058 reappointments. Having over 43% of reappointments certainly makes it difficult to redress any issues of diversity, and does seem to suggest that boards tend not be looking for new board members with fresh ideas, opinions and perspectives. Maybe current tenure lengths aren’t long enough to have a real impact, and board members feel they still have more to give. However, if we are to try and increase the diversity of boards, and alter their makeup significantly, the emphasis will need to shift to new appointments, and the Commissioner’s intention to increase the talent pool of diversity of the pool of applicants to these posts will be crucial.
The report sets out some of the Commissioner’s plans, including a pilot cross-sectoral mentoring scheme, a commitment to maintain the principle of selection on merit and focus groups and meetings with organisations interested in different aspects of diversity. What other suggestions do you have? How would you help to increase the talent pipeline?
On Thursday and Friday of last week, 25 aspiring non-execs from across the country gathered at the Anchor Trust offices in Covent Garden for an inspiring two days exploring good governance, the board dynamic, the skills they would need as non-execs, and took time away from their day-to-day commitments to examine where they were on their non-exec journeys and where they wanted to be.
From quizzing a variety of experienced non-executives, to being quizzed themselves in a series of mock interviews and application writing workshops, the participants left inspired and motivated, and raring to find new opportunities for themselves. The feedback we received for the programme was unanimously glowing, and we’re obviously delighted with how it turned out.
We’d like to say a huge thank you to all the contributors and participants for helping to make the programme such a valuable experience, and also to the Anchor Trust for the great venue.
If you’re interested in participating in the next About Time programme, we’re currently accepting applications for the next programme, which will run on the 25 & 26 March 2010.
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