The cover theme for the January 2022 issue of Governance & Leadership looks at practical things that civil society and charities can do to improve board diversity and inclusion - and as a result board quality.
A seat at the table: Helping prospective trustees learn governance skills. Less talk and more action: there are practical programmes that can improve board composition.
If we have learnt anything about the need to build more diverse and inclusive boards, it is that we must stop asking ‘why’ and move quickly to the ‘how’. This has been highlighted over the last two ‘pandemic-hit’ years where we have been living through times that few foresaw despite the likelihood of a ‘Contagion’.
Many people and organisations continue to suffer given the volatility, uncertainty, complexity and ambiguity. As we are emerging from Covid-19 restrictions, despite the ongoing pandemic, life and business is different to before. It is clear that we need new thinking and new solutions to move forward from the challenges and problems we did not envisage.
Alongside the disruption caused by the pandemic, we have seen digital acceleration and highlighting of inequalities particularly impacting those who are underestimated, underrepresented and underserved. This further drives the need for our leadership and boards to be more diverse and inclusive – being more reflective of talent pools and better representing those they serve.
-Pages 12-13 Building Inclusive Boards by Dowshan Humzah
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Building Inclusive Boards - by Dowshan Humzah - Leadership & Governance magazine p12-13 January 2022
1. 12 GOVERNANCE & LEADERSHIP JANUARY 2022 CIVILSOCIETY.CO.UK
COVER THEME: BOARD DIVERSITY
If we have learnt anything about the need
to build more diverse and inclusive boards,
it is that we must stop asking “why” and move
quickly to “how”. This has been brought into
sharp focus over the last two years where
we have been living through times that few
foresaw despite the likelihood of a Contagion-
style film plot materialising and impacting
all areas of our lives.
Many people and organisations continue to
suffer as a result of the volatility, complexity
and ambiguity of the ongoing pandemic. As
we approach the third year of coronavirus,
life and business is different to before and is
likely to remain so. It is clear that we need new
thinking and new solutions to move forward.
Alongside the disruption caused by the
pandemic, we have seen digital acceleration
and widening inequalities particularly
impacting those who are underestimated,
underrepresented and underserved. This
further drives the need for our leadership and
governance to be more diverse and inclusive
– more reflective of available talent pools and
more representative of those they serve.
For civil society and charities, the needs
of those who are underestimated – our
beneficiaries – are growing. Yet charities
themselves are facing a crisis of trust given
Let’s call out bias for what it is – there is nothing unconscious
bar an abdication of responsibility
a number of recent scandals highlighting poor
safeguarding and a lack of good governance.
Representation shapes policy
Charities have more of a representation
problem than the private sector. For instance,
the non-white/ethnic minority make-up of
FTSE 100 board directors is 11%, while it is
just 7% for trustees in the top 100 charities.
Furthermore, the average age of trustees is
61, versus 57 for FTSE 100 directors, and 75%
of trustees have household incomes above
the national median of £29,900 per year.
We know that diverse, qualified, high-calibre
talent is out there, but opportunity is not.
This must change if we are to thrive in a
post-pandemic, post-Brexit UK where it
will become more important to develop
and nurture talent. A significant challenge
is getting past the gatekeepers who are
comfortable maintaining the status quo for
the benefit of themselves and those like them.
In addition, for many of these gatekeepers
who are accustomed to privilege, diversity
of perspective, outlook, experience, thought,
sector and social background – which of
course correlates closely to those with
different protected and wider characteristics
– can feel like oppression.
Deeds not words
Personally, I have seen more than enough
business cases and research highlighting the
benefits of diversity. If these are required,
then please can we do business cases for
homogeneity and a lack of diversity, too.
We know diversity and difference matter
and deliver for the majority – not just the
underestimated group. Of course, there may
be short-term challenges in forming teams.
However, the bottom line is that diversity
is the right thing to do and ensures that
we have richer discussions, better
representation, increased creativity and
innovation, and achieve greater growth
and impact for our organisations. Yet we
are nowhere near where we need to be to
have diverse and inclusive boards.
So, what can we do about this? We often
hear about unconscious bias and a tick-box
approach to training or awards for under-
estimated groups. First, let’s call out bias for
what it is – there is nothing unconscious bar an
abdication of responsibility. Bias is bias. End of.
Also, please can we have fewer lists and
fewer award ceremonies? We have too many.
They take up much valuable resource (money,
time, collaboration) and have had limited
impact given the glacial pace of progress over
the last two decades. I’d rather see more active
listening – actually institutionalising listening,
more value put on lived experience, and
increased investment in practical programmes
that build a pipeline of visible talent.
Controversially, I’d also prefer to see
less coaching and less mentoring; however,
I recommend more overt sponsoring and
championing. Different and diverse talent,
ASEATATTHETABLE
Less talk and more action: there are practical programmes that
can improve board composition, says DOWSHAN HUMZAH
2. CIVILSOCIETY.CO.UK GOVERNANCE & LEADERSHIP JANUARY 2022 13
COVER THEME: BOARD DIVERSITY
Board Apprentice Global has a vision for
more diverse, purposeful and impactful
boards worldwide. It seeks to achieve this
by expanding the pipeline of diverse board
directors in partnership with organisations,
thereby developing tomorrow’s board
memberstoday.Inaddition,itseekstobreak
theclosedloopof:“Youcan’tbeonaboard,
unless you are on a board.” This is achieved
by being open to suitable, high-calibre,
diverse individuals and allowing them to
take part in a one-year educational board
placement (alongside their existing day job)
to gain practical insight into the operations
and dynamics of a board.
Organisations can work with Board
Apprentice in three ways: as a franchisee,
corporate member or host board.
Franchisees run the concept locally
(either in their geography, sector or
target audience). This includes signing
up local corporate members who may
nominate staff to learn from host boards.
After formal application, apprentices are
identified and interviewed by a selection
committee to assess their suitability as
a future non-executive director before
being assigned to a host board to observe
a full annual board cycle and to become
better known to existing directors and
gatekeepers.
Apprenticesareissuedwithallthesame
78% of Board Apprentice Global’s apprentices go on to
secure a permanent board position within a year of their
apprenticeship on their own volition
boardpapersastheirpermanentequivalents,
andattendallthemeetingsandstrategy
days,includinganysubcommitteestheyjoin.
Theyhavenovotingrightsandarenotlisted
asaboarddirector.However,someboards
publiclypromotethefactthattheyhavea
boardapprenticetosignaltheirCSR/ESG
focusondiversityandinclusion,andgrowing
thetalentpipeline.
There are legal contracts and riders in
place between Board Apprentice, the host
board and the apprentice to protect the
apprentice and mitigate any risk of “shadow
directorship” claims. Some chairs and boards
welcome contributions in meetings from the
apprentice, and to this effect the host
board adds them to their directors’ and
officers’ liability insurance.
Take-up by charities
More than 90 UK companies have used Board
Apprentice to date and around 15% are from
organisations where board members are
not paid, such as charities and universities.
The cost to charities as host boards is zero.
Corporate members pay £1,500 for each
employee they want to sponsor to sit on, and
learn from, a host board for a year. Of course,
an individual can pay this themselves if they
wish. This is great value compared with a senior
leadership course or executive development
programme at a business school.
Success rate
An impressive 78% of apprentices go on
to secure a permanent board position
within a year of their apprenticeship on
their own volition. Over 95% of these join
new boards. It is generally discouraged
that existing host boards take on their
own apprentice, as Board Apprentice
Global is not a recruitment organisation;
the mission is to expand the pipeline
of diverse, board-ready directors.
In our view, all charities could and
should be host boards as part of their
social impact. In addition, we advocate
for a specific charity sector scheme/
franchise where large charities are
encouraged to open their boards to
a diverse observer who has the experience
and calibre to serve on a board but hasn’t
had the opportunity.
To be clear – this is not an appointment,
just a seat at the table for education.
Chairs and boards of all organisations
must become better at succession
planning and think more strategically
about board composition. Diverse
board composition in respect of
protected characteristics (such as
gender and race) is not on its own a
guarantee of success. Diversity and
inclusion resulting in quality and impact
is as much about cognitive diversity and
difference of perspective, outlook,
experience and thought, as well as sector
and social background. This of course
correlates closely to those with different
protected and social characteristics that
are reflected in our communities.
or gatecrashers, need to be recognised and
promoted given their substantive presence in
the talent pool. We must have clear visibility
of how many of each group apply to roles or
are placed in selection pools – and how many
then make it through to the longlist, shortlist,
first interview, second interview and eventual
offer. In terms of metrics, this will highlight
discrepancies and bias, as well as being
a wake-up call for gatekeepers.
To find new and transformative solutions
to current challenges – rather than
incremental and glacially slow ones that
maintain the status quo – we must think
obliquely, be creative, and work with people
who are different or challenging – even
if they make us slightly uncomfortable.
Charlotte Valeur, the founder and chair
of Board Apprentice Global, states: “Inclusion
is key because it is clear that diversity without
inclusion is an illusion.” Beyond words, this
requires action, more direct interventions
and practical solutions. As such, Board
Apprentice is low-hanging fruit (see boxout).
Penny Wilson, chief executive at Getting
on Board, says: “Organisations are often
embarrassed to realise that their boards don’t
reflect their service users or wider society.
But trying to sort this out surreptitiously
is the wrong approach. Be honest about
where you are and why you want to shift the
composition of your board. That vulnerability
is more likely to attract potential trustees,
and to set you up to embed new perspectives
into your governance.”
Practically, this comes down to a board
being open to hearing new, challenging voices.
Gatekeepers often recruit to challenge
but select to fit. They are comfortable
being comfortable. This needs to change.
If you’re clear about your needs and how
new board members will help, you are more
likely to avoid tokenism. Only then should you
think about recruitment; the most important
part of which is reaching beyond your current
network and recruiting from a much broader
and richer talent pool to improve board
oversight, insight and foresight. That way
we reduce the likelihood of hindsight.
Dowshan Humzah is an independent
board director and strategic advisor.
He chairs Board Apprentice Global’s
UK Advisory Board.
BOARD APPRENTICE GLOBAL: A PRACTICAL SOLUTION