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Lyn Corbett, University of San Diego The Pivotal Group Consultants Inc.
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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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
~ LEADING 'T' iiimilNTENT J
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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
~otn1N~ ~EAT was eve, acn1evet!
W1 tnout CNtnus1asm.
~ LEADING T
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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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.
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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·
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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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Unive~i ~ of San Diego·
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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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Unive~i ~ of San Diego·
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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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
Does Your Nonprofit Prioritize Diversity?
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
Does Your Nonprofit Prioritize Diversity?
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
Does Your Nonprofit Prioritize Diversity?
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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