The Government has announced new aspirations to increase the diversity of boards, with at least half of all new appointees to public boards to be women by the end of the Parliament. The Business Minister Edward Davey, and the Equalities Minister, Lynne Featherstone, have also announced that a business strategy will be developed to increase the number of women on the boards of listed companies in the UK.
The Commissioner for Public Appointments Annual Report in 2008/09 showed that just 35.7% of appointments and reappointments to public bodies were female, and research from Cranfield University shows the women account for only 7% of directors of FTSE 250 companies, and almost half of these boards have no women on their boards.
Lord Davies of Abersoch has been commissioned to deliver a report on the obstacles preventing women becoming directors of list company boards, and make proposals on what action needs to be taken to help improve the position.
These announcements and commitment to addressing the gender disparities of boards come at the same time as a Headhunters’ survey has been published suggesting that if women want to get to the top of their chosen professions, they would be wise to forget about taking even a few months career break, for health reasons, travel or to look after children.
With diversity of thought, experience and perspectives making clear business sense, and the breadth that diversity provides critical to a boards ability to spot issues and trends, it will be interesting to read Lord Davies recommendations, and to see how the Government and business choose to approach reaching their aspirational targets.
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.
Atul K. Shah, MLA Board Member and About Time alumni
When I tell my children I have joined a Board, they make fun of me – they say, ‘is it to get bored!’. Well, it is too late now, I have taken the dip, so here’s my (hopefully) not so boring story!
The MLA is the Museums, Libraries and Archives Council, a strategic body for the sector, giving advice, setting best practice guidelines and standards, and also providing leadership tools and support. I had previously come into contact with the MLA Board and its activities, and was very impressed by its goals and ambitions – they had given their precious time to go on a Diverse Ethics Culture Tour of London, and enjoyed it very much. In November 2009, Subnum Hariff and I were formally interviewed and appointed on its first Board secondment scheme, as Non-Executive Directors for the calendar year 2010. The Chairman of the Board is Sir Andrew Motion, and the Chief Executive is Mr. Roy Clare, CBE – both of whom are major champions of diversity. This is an excellent scheme as it gives me mentoring and support, and a chance to understand the Board and see how it works. I have already had a fantastic two day orientation at their head offices about the work of the MLA. My mentor on the Board is Yinnon Ezra who is also a trustee of the Heritage Lottery Fund. My buddy on the staff is Isabel Wilson – a most helpful and creative soul.
Being a board member is not a full time role, but oddly, I think about this work every day. The board is excellent at communication, so I get at least one email a day about something or the other – decisions taken by the Executive Board, press coverage about the sector, new reports which have been published, etc.
I have been very active in my Jain community all my life, and am passionate about public service. I have also led and created many institutions from scratch. I also have professional qualifications, and have worked in large professional organisations of international fame. I am on the National Council of Faith & Belief in Further Education, and this has given me very valuable training in the operation of advisory Councils. However, I have never been at the nub of a large professional charity or public body, well endowed to provide a skilled service with skilled professional staff, helping shape its thinking and strategy. Here is my golden opportunity.
This Board opportunity is the first time that I am able to combine both, my passion and experience of public service, with my professional expertise, at a senior leadership level in a national body. At the same time, I see a lot of enthusiasm in my appointment – there is a genuine desire to seek my expertise and listen to my views and perspectives. I was really overwhelmed that so early on, my suggestion to have a Board meeting at the Jain temple complex in London during the Ayambil Festival was accepted – they are going to come to ‘my’ culture and community, to discuss matters of national strategy for the sector. This is a huge symbolic gesture of the MLA’s commitment to diversity and will also really inspire members of the Jain community and help start a bridge.
Initially, the task of joining a Board is daunting. A lot of homework needs to be done to familiarise oneself with the new organisation, its core activities and its goals and aspirations. I was fortunate in that in the design of this secondment scheme, there were two days of orientation where I met key staff and visited some Museums, Libraries and Archives in Birmingham, where the Board is based. This was really helpful indeed. Then when I got the first set of papers for the Board meeting, I was able to understand the jargon and relate to the critical concerns and issues. It still did take a long time to read and re-read them to get a sense of the priorities and strategies. I have just had my first Board meeting, and must say that everyone was very welcoming and hospitable, there was another small orientation and introduction session to the Executive Board and the Chairman in the morning, and a chance to meet the other new recruits and observers. At lunch, we had an opportunity to socialise with the new Board. I have been allocated a Board mentor and a buddy which is really excellent for breaking us into the organisation. My mentor Yinnon Ezra has kindly invited me to Winchester, where he is head of Cultural Services for the County Council and will also organise a guided tour for me to visit local museums and libraries. A treat indeed! Subnum has also very kindly invited me to Bolton where she is a Manager in Library and Youth services.
Personally, when I see advertisements for Board opportunities, so many of them start with the requirement that one needs to have significant senior management experience, and this is usually a killer for ethnic professionals, because in the UK, we rarely have this opportunity because of the glass ceilings. However, in truth, this is not what is required – more an awareness and appreciation of the context of large organisations, and their methods of operation. Also a little self-confidence and self-belief in questioning a large professional group helps. An educated professional, given the commitment and dedication and the proper initial orientation, can pick this up very quickly. Then they can make a real and diverse contribution.
And we will have something useful to contribute. Here are some examples:
• The Executive Board are steeped in their day to day work and targets and priorities. It is therefore not easy for them to have overviews, and also see similarities in their problems with other sectors or wider public agendas. As non-executives, we are distant from the day to day, and therefore can see the same problem with fresh eyes and also bring new perspectives. It is not about being more or less intelligent – it is about being different. And coming from a different culture also helps enhance this difference, and also the potential quality of your contribution.
• As public citizens, we use public services all the time, and have grassroots experience as users. This perspective is very important because ultimately, all public services are aimed at the public and need to fulfil their needs and aspirations. So do express these views in the Boardroom as it helps give checks and balances to the work. It should also mean that the challenges should help the organisation and its achievements become more robust in the long run.
• Good boards should welcome challenge and critique, otherwise, for the Executives, it is like a ritual with not much meaning. I am fortunate that the MLA welcomes our input and is open and welcoming to challenge.
I also see a very large learning opportunity ahead – of how Board’s work, the critical issues facing the sector, and how the MLA can reach out into various ethnic communities throughout the country. It will take up my time, and already individual staff and executives are seeking my guidance, which I am happy to provide. I think that Britain has a great public service culture and profession, and there is much that diverse peoples who themselves have strong public values, can learn from and contribute to. Joining a Board is a small step to a Big Opportunity for personal growth and development, and for building bridges between ethnic communities and the public sector in Britain. I owe a huge debt to Common Purpose and About Time for helping me onto this path, by carrying me on their shoulders and showing the map and directions – people like Rajinder Bhuhi, Adirupa Sengupta and Amy Ritman are angels who open new channels of light and wisdom. I encourage everyone to Go for it and Grow through it, hopefully helping make this world a little better than when we found it.
This morning at breakfast, my eleven year old son was most curious about my first Board meeting – so what exactly did I do, what was my experience like, and who did I meet. Maybe he is already preparing to get on Board….. Any takers for eleven year-old board members!
Dr. Atul K. Shah is a writer, speaker, consultant and broadcaster, and founder of the internet portal www.diverseethics.com
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.
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.
Entries (RSS)