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This interesting research shared by Harvard Business Review highlights the importance of cognitive diversity, when it comes to high performing boards. This resonates strongly with my own experience as a Charity Board Trustee and Chair of Governance, alongside more than 20 years of experience in leadership roles and advising executive teams and boards.
Good governance requires a breadth of skills and experience from NEDs and the executive team, but also diversity in background and perspective. There is a comprehensive commercial case for diversity in business and strong evidence demonstrating the link between diverse boards and higher results. The voice of the customer or beneficiary, in the case of the third sector, is also critical.
The best boards and executive teams that I have observed retain a healthy 'creative tension'. This means having a range of perspectives, but also being prepared to ask awkward questions and challenging management proposals in a constructive way. The Global Financial Crisis demonstrated the dangers of 'group think' in boards - we clearly still have a long way to go though.
Focusing on targets for gender, race and other dimensions of diversity is a very good start. However, if everyone on your board grew up in similar kinds of neighbourhoods and attended the same business schools, then you need to ask the slightly uncomfortable question of whether you have really achieved diversity of thought and approach. In times of continued disruption, maintaining the status quo is a high risk strategy for any organisation.
