Results at the Top

Chapter 8THE ROLE OF THE BOARD

There is one aspect of business on which there can be no debate and no excuses. Boards of directors that are diverse create superior performance in their firms compared to those that do not have diverse boards. There is no reason why boards cannot be diverse given that boards themselves (and the shareholders) control who is on the board.

“Let me ask you a question, Richard. Is it fair to say that, in reality, most boards have very little influence on impacting the advancement of women in the companies they serve?”

“Barbara, your assumption is right to a certain degree. If the CEO doesn't want to do it, it generally isn't going to happen. The movement in an organization must begin with the board itself and they can act as a role model for the organization; and there is a correlation between putting women on boards, and, with a bit of a lag, the increasing presence of women in senior management. So something is happening there.

“There are also CEOs who tend not to follow the board but rather, lead the board in appointing women to leadership positions. And we have an example of one such man and his rationale a bit later on in this chapter.

“The role of the board member is to act in the best interests of the corporation. Study after study has shown that a more diverse management structure, including women in meaningful numbers at all levels, will result in superior performance.

“Often you'll hear from the chair that there are insufficient female ...