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.

Tags: about time, boards, combined code, good governance

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

Tags: about time, board opportunities, common purpose, good governance, MLA, public appointments

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.

Tags: about time, common purpose, good governance, non-execs

We asked 70 senior leaders to share their tips on enabling boards to make effective decisions. Here are some of them.

• Use all available knowledge and experience to make decision- is there another organization using this particular method/equipment/ policy. Can the board learn from others’ experiences?
• Don’t respond to operational pressure to make a decision- the board is responsible for doing what is best for the organisation overall.
• Take necessary time to make the decision – don’t rush into it
• Consider all decisions to be made in light of the organisations overall objectives – and be sure that any decision made contributes toward the over all achievement of the organisations objectives
• Where possible invite an executive with knowledge of the decision to be made to present the business case to the board
• Think strategically about financial implications of decision making
• Consider the implications of any decision and the impact it will have on the organization
• Be sure that any board member who may have a conflicting interest declares this and that the board then acts appropriately
• Collect together all the relevant information prior to the meeting of the board, so board members can read and prepare in advance
• Document the decision to be made and ensure a shared clear understanding of the issue.
• Be absolutely clear about the decision the board wishes to make.
• The board demand regular reviews of strategy to assess relevance of organizational objectives in a changing world; the board rigorously review their objectives to be sure they are ‘fit for purpose’

What would your top tip be? Share it with us in the comment box below.

Tags: boards, good governance, leadership