Maximising the Business Opportunity in Board Diversity
The News on Gender Diversity is Positive
As we celebrated the recent milestone of ASX200 Boards reaching the target of 30% women, I’ve learned it pays to look below the tip of the iceberg and investigate the health of the pipeline to make an assessment of whether this is likely to be short term success or one that is sustained.
From a gender perspective, the news in the ASX300 is also quite positive; Boards with no women have decreased from 59 in 2016 to 14 in 2021. On this current trajectory there will be no ASX 300 companies without a female director by 2026, and Gender Parity will be achieved in the boardroom by 2030.
So do we clap out hands, declare victory and say job done?
Not quite yet. In fact we’ll have our work cut out for us for some time if our Boards are to reflect our society.
Cultural Diversity Remains a Huge Opportunity
Cultural representation in the boardroom (and Senior Executive Teams) is moving at a much slower pace, with “90% of directors of Anglo-Celtic or European background”.
“Based on current trends, it will take 18 years for the boardroom to be reflective of Australia’s cultural diversity”.
As the Australian Financial Review documented this week (to much criticism in Diversity circles), Australia’s commercial history has been largely shaped by Anglo Celtic / European men.
It would be a mistake, however, to ignore the many Stakeholders and Shareholders pushing their boards to reflect their customers.
It makes good business sense and it’s also the right thing to do.
Board Diversity Represents Opportunity and Competitive Advantage
The Boards of Australia’s biggest businesses would be wise to proactively embrace the future and capture the opportunities which emerge from diversity in any team, at any level.
Much of the business value in diverse AND inclusive teams, comes from the Innovation they uncover as a result of the new perspectives which combine with the old, to create something new.
In diversity circles we say it’s ‘the mix that matters’ - and Australia’s predicted lagging future financial fortunes from our historical industries, reflect the urgency of us creating new mixes which create innovation and responds to the challenges and opportunities of our current epoch.
Let’s not take 18 years to maximise the business opportunity Cultural Diversity offers, rather, as any successful entrepreneur does, aggressively grasp and maximise an opportunity offered by both cultural diversity and gender diversity.
Diverse Teams with Inclusive Cultures unlock genuine business value. There’s a simple formula which any team, at any level can leverage, to achieve just that.
It’s also good for consumers and society.
