The Benefits of Building a Diverse...

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Lyn Corbett, University of San Diego The Pivotal Group Consultants Inc.

[email protected]

The Benefits of Building a Diverse Board

I. The Benefits of Building a Diverse Board

1. The Current State of Diversity and Inclusion in the Boardroom

2. The Benefits

3. Preparing the Board

4. The Secret Sauce

• T

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Behaviors RaceLanguage Actions

Gender

Style

Physical Abilities

Life Experiences

Religion

Culture

Sexual Orientation

Thoughts

Perspectives

Values

Age

Source: Hugh Molotosi What do you see?

The Study• Biennial study of board composition,

culture, and performance. • First data collected in 1994.• Moment in time snapshots of

board strengths and challenges.• Convenience sample of executives

and board chairs.• Available for download at

leadingwithintent.org.

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Unive~t ~ of San Diego·

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Board Composition: 2017 LWI

Board Chair

Board

90%

10%

Race/Ethnicity

White

Person of Color

43%

57%

Age

Under 4040 and Over

48%52%

Gender

Women

Men

42%

58%

Gender

WomenMen

84%

16%

Race/Ethnicity

White

Person of Color

28%

72%

Age

Under 4040 and Over

<1% - Other

<1% - Other

Racial & Ethnic Diversity• Both chief executives and board chairs report the highest levels of

dissatisfaction with their racial and ethnic diversity.

• 27% of boards reported that they are 100% white; up from 25% in

2015.

• D

D •

• D

D •

HOW SATISFIED ARE YOU WITH YOUR BOARD'S RACIAL ANO ETHNIC DIVERSITY?

Executives 4" 14"

Board Chairs ,,,.

°" Extremely

satisfied Somewhat satisfied

19"

25"

Neither satisfied or dissatisfied

501<

Somewhat dissatisfied

75"

~ LEADING 'T'

WITH INTENT' A tlational lndeJC c,f lfonpmfit Board Practices

22 ..

" " 8"

D

D

D

D

~ LEADING 'T' iiimilNTENT J

1001<

Extremely dissatisfied

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How Important is a Diverse Board?

The Disconnect: Board Recruitment

~ LEADING 'T'

WITH INTENT' A tlational lndeJC c,f lfonpmfit Board Practices

CHIEF EXECUTIVE PERSPECTIVES ON THE IMPORTANCE OF DIVERSITY

Understan ding external context from a broader perspective

Developing creative new solution s to new problems

Understanding th e clie nt popu lations served by th e org..

Enhancing the organization's standing with the public

Planning effectively

Increasing fund ralslng or expanding donor networks

Monitoring & strengthening programs and services

Attract ing & retaining top board talent

Attracti ng & retaining top staff talent

"'" "" .,,.

.... • ti.

-21% 30 "

.,.

15" 4"

Very Important Import ant Somewhat Importan t Not Important Don't knoww/no opinion

WHAT IMPORTANCE DOES THE BOARD ASSIGN TO THE FOLLOWING ITEMS WHEN RECRUITING BOARD MEMBERS?

[ eom......,1ty connection s (ex.es) 5::::::::::::::;.~;~:-~;:: CommunityconnectlonskNllrs) ._ ______ _...,.=-

[ OccupaUon(IJCees) == .. ::::::365~"[;---0ccupatlon(cNllrs)

,.,.

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14" • 7 1n l-f 2"

,..- ] ... _ ··"- ] 45"-

Lowornotapriorlty

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Important Candidate Characteristics • Genuine enthusiasm for mission

• Willingness to commit time,

connections, and to give and get

• Influence in their network,

community, or organization

• A connector

Leading with Intent 2017Hasyourboarddonethefollowing? Yes

Incorporateddiversityintotheorganization’scorevalues 76%

Modifiedrecruitmenttoreachmembersofdiversebackgrounds

48%

Conducteddiversitytraining forstaffandboardmembers 21%

Developedadetailedplanofactiontocreateaninclusiveculture

18%

* University efSanDiego

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W1 tnout CNtnus1asm.

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WITH INTENT' A National Index of Nonprofit Board Practices

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Key Finding:84% of all board members are white27% of boards don’t have a single person of color

§ Board Diversity: Boards are no more diverse than

they were two years ago and current recruitment

priorities indicate this is unlikely to change.

Leading with Intent 2017

STATE Of NONPROFITS & PHILANTHROPY

(:\ '""°'"" ''""'' " SCHOOL OF LEADERSHIP C; AND EDUCATION SC IENCES

THE NONPROFIT IN STITUTE

1/3 1/3 18%

~ LEADING 'T'

WITH INTENT' A National Index of Nonprofit Board Practices

Unive~ Diversity, Equity and Inclusion efSanDiego·

reported having strategic plan objectives

related to diversity, equity and inclusion

have specific targets for achieving diversity, equity and inclusion goals for recruiting board members

have specific targets for achieving diversity, equity and inclusion goals in hiring of staff

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Diversity Challenges or Challenges of Diversity“…diversity leads to more innovation, more outside-the-

box thinking and better governance… To unlock the

benefits…boards must learn to work with colleagues who

were selected not because they fit in—but because they

don’t.”—Excerpt from “Why Diversity Can Backfire on Company Boards”

Jean-Francois Manzoni, Paul Strebel, and Jean-Louis Barsoux

Wall Street Journal (January 25, 2010)

Diversity in California • 50.3% female• 13.3% over 65• 38 % White only – non Hispanic• 38.8% Hispanic or Latino only• 6.5% African American only• 14.7% Asian only• 1.7% Native American only• 27% Foreign-born• 6.7% under 65 with disability

July 2015 estimates US Census https://www.census.gov/quickfacts/table/PST045215/06

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Unive~i ~ of San Diego·

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A Different Approach: Capitalizing on Diversity Means Highlighting —Not Hiding from — Differences

Why Diversity and Inclusion Matters?

Diverse organizations

are more likely to attract more diverse donors.

Heterogeneity promotes

creativity and innovation.

Best boards harness a

variety of skills, perspectives, backgrounds

and resources to meet

challenges.

/ /

Un ~ efSan Diego·

1.& Unive~!~ efSan Diego·

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What are the Benefits?Diverse Boards….

✓Greater creativity

✓Improved problem-solving✓Better insight into the needs

of a diverse client base✓Have defining moments

✓Create deeper relationships ✓Make your core values

come alive

“A homogenous board limits viewpoints

and ideas, which can result in lost service

opportunities and, in turn, lost impact.”

- Nonprofit HR

lkri~ efSanDiego·

um~ ctSan Diego·

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What’s at Stake?

Potential soft costs will be:• Low staff/board morale • Fewer innovative ideas • Inaccurate/unfocused communication with key

audiences • An unwelcoming environment

-The Denver Foundation’s publication, Inclusiveness at Work: How to Build Inclusive Nonprofit Organizations

Potential hard costs will be:

• Expenses for recruitment and retraining • For nonprofit organizations, it means fewer clients

and less revenue • Decreased funding from donors, foundations, and

government.

-The Denver Foundation’s publication, Inclusiveness at Work: How to Build Inclusive Nonprofit Organizations

What’s at Stake?

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Everyone has a Role

Board Chair and Chief Executive

and Nominating Committee

As partners in leadership

The Advocate

The Board Collectively

As teammates with shared purpose, authority, and accountability

Board Recruitment

“The main point is to first get the right

people on the bus (and the wrong people off

the bus) before you figure out where to

drive it.”

—Jim Collins, Good to Great

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© 2016 BoardSource

“Exceptional boards shape and uphold

the mission, articulate a compelling

vision, and ensure the congruence

between decisions and core values.”

(#1,Determine mission and purposes, and

advocate for them)

Skills/Attributes Matrix

PROFESSION/EXPERTISE AND CONSTITUENCIES

Trustee Fem

ale

Mal

e

Age

<35

35 -

50

51 -

65

> 65

Afric

an A

mer

ican

Asia

n-Am

erica

n

Cauc

asia

n

Latin

o/Ch

icano

Nativ

e Am

erica

n

Oth

er

North

Cou

nty

Inla

nd

North

Cou

nty

Coas

tal

Cent

ral

Sout

h Ba

y

East

Cou

nty

Oth

er

Adm

in./B

usin

ess

Ope

ratio

ns

CEO

Cons

ulta

nt

Entre

pren

eur

Fina

nce:

Acc

ount

ing

Fina

nce:

Ban

king

and

Trus

ts

Fina

nce:

Inv

estm

ent P

rofe

ssio

nal

Gov

ernm

ent

Educ

atio

n/Li

brar

y

Tech

nolo

gy

Hum

an R

esou

rces

Insu

ranc

e

Law

Mar

ketin

g/Sa

les

Phila

ntro

pist

/Com

mun

ity L

eade

r

Publ

ic Re

latio

ns

Real

Est

ate

Tour

ism/H

ospi

tality

Oth

er

Busin

ess

Com

mun

ity

Adva

ncem

ent

Audi

t

Exec

utive

Fina

nce

Gov

erna

nce

Mar

Com

Nom

inat

ing

Plan

ned

Givi

ng

BOARD COMMITTEESDIVERSITY DEMOGRAPHIC

Assess Board Needs

The Universe of Nonprofit Management and Govemance Capacity-Builders (A lliance Members and Potential Members)

As~;=~,~ to (1.g.NCNA.MAO

Nalional NP financial Intermediaries

(t.9.USC.WEC.Htlghborhood lltlnwwntntC01por,11oft)

Communi~ Organizing and Leadership Development

(1.g.(ul'tU,NltlONl(Oll'IIIHllllly lwaldin9Nttworll

Philanthropy-Focused Associations (t.g.,(OijflCtlOllfOU .. tloftt.

GCQ.lAG1,,tl(.)

Sector Advocates (t.9.,CUl'l.ts.OMIWatch)

~r;~~~:~:'n~ 5(~ro3 {trillning.COM!lltlll!l,IIMlllrlllf.lndtoOli)

National Capacity Building Programs

(t. g.,lollu!SOuttt,SOOll(nttrplistAll111<1, NOflJH'OitTKM01ogy£nttrprl1,tNt~

Associa~i~3~a~\!1:round (1.11-.AmfrklnAl!.OdallonofMIMllm!J

Grantmakers (mlndatlolll.Corporate l'tlHl!thrap KPfo9r1m1)

Associations Organized Around Management

(1.g.MP,Amtric.lnM.utl11g

-""''

• • University of San Diego·

Unive~ efSanDiego·

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Often Led by Governance Committee:

Reviews the Board Recruitment Matrix and Conducts a Gap

Analysis

1. What is the board's current composition?

2. What is needed now?

3. What gaps need to be filled in the future?

4. What are the priorities?

5. What other attributes are important?

Nominating

The Current Board

• It’s critical to note that simply making a team

more diverse is not necessarily enough to see

the benefits. Diverse teams must find ways to

work together productively, and often the best

ways of working may seem counterintuitive.

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Adaptive Learning

Source: Heifetz & Linsky: Leadership on the Line, 2002

“Don’t Be Fooled By Your Comfort”

❑ Questionsarewelcomed❑ Differingviewpointsareencouraged❑ Unwrittenrulesareexplained❑ Timelyinformationexchanges❑ Opencommunication❑ Activelyseekdifferentviewpoints❑ Tolerateambiguity❑ Brainstormsilentlyandopenly❑ Consultoutsiders❑ Searchwidelyforinformation

3)

CULTUREOFINQUIRYEXERCISE

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THRESHOLD OF TOLERANCE

.... -- - -· TIME

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➢Aredifferentformatsusedforboardmeetings,suchasarticles,research,smallgroupdiscussions,facilitatedsessions,oroutsidespeakers,tohelptheboardaddressimportantissues?

➢Isthereatwo-wayappreciationofchallengingquestions?

➢Isthereasharedcultureofinquirythatleadstobetter,moreinformeddecisionswithinyourorganization?Ifnot,whatareyouwillingtodotoenhanceit?

CULTUREOFINQUIRYEXERCISE

SampleRecruitmentPacketDownSyndromeAssociationofWisconsin

BECOME A LEADER. MAKE A DIFFERENCE.

Board of Directors and Leadership Recruitment Packet

www .dsaw .org 414 .327 .3ng lnta O dsaw .org

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A Path Forward

2. Develop a detailed plan of action

1. Confront your board’s “history and habits.” Assess

your board’s culture & identify barriers to inclusion.

3. Commit to diversity, equity, and inclusion

as an ongoing initiative

4. Implement policies and procedures

“Even if you are on the right track, you’ll get run over if you just sit there.” Will Rogers (1879 – 1946), American actor and comedian

Reflection and Action Steps

• How can you help your board/organization understand why diversity

and inclusion matter?

• What can you do in your role?

lkri~ efSanDiego·

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Unive~t ~ of San Diego·

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Does Your Nonprofit Prioritize Diversity?

1.What is the racial equity policy around your board recruitment? If there is not one, has diversity, and inclusion at least been discussed as an area of growth and development among members of the board?

By Andrea J. Rogers


2. Are staff, board members, and/or the CEO/executive director willing to reach out to their colleagues in the sector and their peers from diverse backgrounds for suggestions?

By Andrea J. Rogers

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By Andrea J. Rogers


3. What are you doing at the board level to change the culture, such that people from diverse backgrounds feel welcome, included and want to remain on your board?

By Andrea J. Rogers


4. Are the people on your board ready to listen to and welcome different points of view, and move away from “this is how we have always done this”?

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…….adds that one ingredient that puts it over the top without being overpowering

The Advocate

• The Natural Ambassador

• They know the landscape

• Often future focused

• Already in the position with established relationships

• Already constantly looking outward when many others

in organization are forced to look inwards

• In a position that they can exert influence

SECRET SAUCE

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“One of the great liabilities of history is that all too many people fail to remain awake through great periods of social change. Every society has its protectors of status quo and its fraternities of the indifferent who are notorious for sleeping through revolutions. Today, our very survival depends on our ability to stay awake, to adjust to new ideas, to remain vigilant and to face the challenge of change.”

Thank You!

Leadership is Intentional

Lyn Corbett [email protected]

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Resources

• The Board Building Cycle,Nine Steps to Finding, Recruiting, and Engaging Nonprofit

Board Members:BeritM.LakeyPh.D.

• The Governance Committee:BeritM.LakeyPh.D.,SandraR.HughesPh.D.,OutiFlynn

• Building the Governance Partnership: The Chief Executive's Guide to Getting the Best

from the Board:KathleenA.McGinnis,SherrillK.Williams

• Vital Voices: Lessons Learned from Board Members of Color:VernettaL.Walker,

DeborahJ.Davidson

• Diversity in Action E-Toolkit

• Race to Lead

Resources•Beyond political correctness: Building a diverse and inclusive board (BoardSource)•Practical strategies for diversifying your board (webinar - Nonprofit Quarterly/BoardSource)•Leading with Intent (BoardSource)•The declining diversity of nonprofit boards and what to do about it (BoardSource and Nonprofit Quarterly)•A Fresh Look at Diversity and Boards, includes a discussion of a diversity statement.(Blue Avocado)•Why diversity matters in the boardroom (Russell Reynolds)•Vital Voices: Lessons Learned from Board Members of Color (BoardSource)•Can Minors Serve on a Nonprofit Board? (Nonprofit Law Blog)

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