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in making it happen . “ If an organization is going to really focus on diversity , it has to come from the leadership down . They really have to believe it , they have to live it ,” says Robert Boroff , managing director at executive search firm Reaction Search International , which has a Sacramento office .
Another part of leadership is developing a disciplined strategy for getting to a diverse board . That starts with a board refreshment policy , which the PwC results indicate many firms don ’ t have . Beyond that , the GAO says that experts it consulted recommended firms set numerical targets for board diversity and require a diverse slate of candidates be considered when board slots come open . And at a June 2019 U . S . House of Representatives hearing , the founder of a firm that tracks diversity best practices at U . S . companies reported that one approach shown statistically to be most effective is to have a company form an executive diversity committee that monitors and reports on progress toward broader representation among company executives and directors .
Board recruitment experts also agree that companies should look beyond CEOs when making director picks . Not every CEO makes a good director because the board member ’ s role — providing oversight — is quite different from a CEO ’ s , says Miller . In board recruitment , she recommends looking at the next level of executives — say , the head of finance or marketing at a bigger firm . “ If you ’ ve got an executive inside a large company ( as a possible candidate ) and you ’ re a small company , that can add a lot of value to your board ,” she says . It also makes diversity recruitment easier because the pool of diverse CEOs is “ supersmall ,” she says .
Another option is to forgo the traditional focus on those with corporate board experience . Jana Rich is founder of Rich Talent Group , a San Franciscoheadquartered executive search firm that specializes in helping companies diversify . In 25 years of recruiting executives , including for board positions , Rich says there has never been a board member recruit that did not work out — including those with no board experience . But that ’ s because her clients had developed a clear picture of what they needed . “ To me , this is about being really specific about the knowledge you ’ re trying to bring to the
“ If you ’ ve got an executive inside a large company ( as a possible candidate ) and you ’ re a small company , that can add a lot of value to your board .”
DIANE MILLER President , Wilcox Miller & Nelson
boardroom ,” she says . She points to the example of first-time corporate board member Dara Treseder , a 32-year-old Black chief marketing officer at Peloton who Rich recruited to serve on PG & E ’ s reconstituted board .
One reason companies need to be clear about what they ’ re seeking in a new director is the growing demand for talented people from underrepresented backgrounds . Interviewees are likely to ask sitting board members in interviews why they were sought out . Rich says the answer , “ because we were required to ,” is the wrong one . “ There has to be something in this person ’ s background that you think will add value to your board ,” says Rich . She points to a tech firm that wanted someone on its board with artificial intelligence expertise . She helped the firm recruit a woman of color who chairs the computer science and artificial intelligence lab at a major university .
Rich also says companies can open up their ranks by expanding the number of board slots , which can be good for governance . A lot of boards don ’ t have enough members to really offer oversight , she says : “ A five-person board is pretty small . You ’ re not going to get a lot of diversity of thought .” For companies that have some scale , nine members seems to be the sweet spot , she says . Nancy Lee , a Sacramento corporate and business lawyer who advises organizations and trade associations on board governance , also suggests creating a pipeline for diverse candidates by setting up an advisory board or associate board member roles to assess future candidates ’ potential while also preparing them for the role .
And Miller says companies that want board diversity need to reach beyond their own networks . That might mean asking for recommendations from groups like LCDA , Leadership Education for Asian Pacifics , Quorum ( which advocates for more LGBTQ representation on boards ) and the California Black Chamber of Commerce . And Lee suggests contacting the American Leadership Forum ’ s Mountain Valley Chapter , which cultivates emerging leaders and includes a focus on those from diverse backgrounds . It ’ s not clear how often companies reach out to groups like those for referrals : Josiah Young , a spokesperson for the California Black Chamber , says his group has never gotten a call from a company looking for a board candidate .
The pandemic has made recruitment for boards more difficult . American River
90 comstocksmag . com | March 2021