Mar. 9, 2018 "Eight tools to help build a gender-balanced board": Today I found this article by Beatrix Dart and Ekta Mendhi in the Globe and Mail:
Beatrix Dart is a professor of strategic management and the executive director of the Initiative for Women in Business at the Rotman School of Management.
Ekta Mendhi is senior director of corporate strategy at CIBC. She serves as the co-chair of Women in Capital Markets' Women in Leadership Network. They co-founded and co-chair the Canadian Gender and Good Governance Alliance.
Board composition and gender diversity are on the radars of most CEOs and board chairs today. At the end of 2017, only two of the S&P/TSX 60 companies had no women on their boards, and almost half of the companies report they have specific gender-diversity targets in place.
However, that picture changes dramatically when we look at all of the more than 1,400 companies listed on the Toronto Stock Exchange (about 65 per cent of these have a market cap of less than $1-billion). Here, women hold only 14 per cent of board seats, and 39 per cent of issuers have not a single woman on their board.
However, that picture changes dramatically when we look at all of the more than 1,400 companies listed on the Toronto Stock Exchange (about 65 per cent of these have a market cap of less than $1-billion). Here, women hold only 14 per cent of board seats, and 39 per cent of issuers have not a single woman on their board.
New research regularly reaffirms the business case. For companies who want to take action, the Canadian Gender and Good Governance Alliance has curated practical tools that can help organizations of all sizes achieve gender diversity on their boards.
1. Conduct a regular formal board evaluation: Formal board evaluation processes – ideally administered by an independent governance committee or an unbiased board chair – are an effective way to optimize board renewal and encourage diversity.
Board evaluations provide an opportunity to assess the board's approach to gender diversity and identify improvements that need to be made. For example: Are diversity objectives clearly stated? Which processes are in place to achieve the targets? And does our board director nomination process identify high-quality women with the skill set and cultural fit that we need to be effective as a team?
Board evaluations provide an opportunity to assess the board's approach to gender diversity and identify improvements that need to be made. For example: Are diversity objectives clearly stated? Which processes are in place to achieve the targets? And does our board director nomination process identify high-quality women with the skill set and cultural fit that we need to be effective as a team?
2. Use a board competency matrix: Skills or competency matrices have been in use for many years but have not significantly led to an increase in the number of women on boards.
Part of the problem is that the skills prioritized by nominating committees often have a built-in focus on positions. For example, public issuers often seek board members who have experience as the chief executive officer of another public issuer. Given that the proportion of women CEOs in TSX-listed companies has stagnated at approximately 5 per cent for the last decade, this criterion narrows down the pool of female candidates dramatically.
Interestingly, many boards indicate that the characteristics that make their directors effective in the boardroom have little to do with these typical résumé markers. Instead, they indicate that success as a board director rests more with attributes and behaviour, such as being a great consensus builder, or asking the tough questions when necessary.
Part of the problem is that the skills prioritized by nominating committees often have a built-in focus on positions. For example, public issuers often seek board members who have experience as the chief executive officer of another public issuer. Given that the proportion of women CEOs in TSX-listed companies has stagnated at approximately 5 per cent for the last decade, this criterion narrows down the pool of female candidates dramatically.
Interestingly, many boards indicate that the characteristics that make their directors effective in the boardroom have little to do with these typical résumé markers. Instead, they indicate that success as a board director rests more with attributes and behaviour, such as being a great consensus builder, or asking the tough questions when necessary.
3. Set term and/or age limits: A disciplined approach to board renewal remains the most fundamental condition for refreshing board composition and creating an opportunity to increase the number of women on boards. Without vacancies, adding women is difficult.
Term limits are often considered a leading governance practice based in part on the view that after a certain period of time directors risk losing their independence from management. Age limits in Canada typically range between 72 and 75 years. Both types of limits force boards to prepare for turnover in a planned and meaningful way.
Term limits are often considered a leading governance practice based in part on the view that after a certain period of time directors risk losing their independence from management. Age limits in Canada typically range between 72 and 75 years. Both types of limits force boards to prepare for turnover in a planned and meaningful way.
4. Adopt a gender diversity policy: Regulators now require publicly traded non-venture issuers to disclose whether they have a gender diversity policy. Large institutional investors are considering gender diversity an important corporate responsibility factor when evaluating a potential investment opportunity. Responsible investment policies are increasingly adding gender diversity as a key criterion in decision-making, and public companies with all-male boards have been increasingly challenged at shareholder meetings.
While only 35 per cent of issuers have a gender diversity policy, those that did had almost twice as many women (19 per cent) on their boards compared to 10 per cent average female representation without a policy. You can find a customizable policy template as part of the Director's Playbook at www.cggga.ca.
While only 35 per cent of issuers have a gender diversity policy, those that did had almost twice as many women (19 per cent) on their boards compared to 10 per cent average female representation without a policy. You can find a customizable policy template as part of the Director's Playbook at www.cggga.ca.
5. Expand the scope of your candidate search: The question "where can I find the female board members I would like to bring to our organization?" seems to be one of the bigger hurdles. There is a tendency to identify candidates from familiar networks such as former colleagues.
However, this often leads to a narrow and homogeneous candidate pool in both skills and gender. There are ways to broaden the search and use a network approach to identify the best women candidates.
However, this often leads to a narrow and homogeneous candidate pool in both skills and gender. There are ways to broaden the search and use a network approach to identify the best women candidates.
6. Leverage board-ready lists: Look to organizations such as the Institute for Corporate Directors, Catalyst, and Women in Capital Markets that have lists of highly qualified and accredited board candidates from across a wide variety of industries and leadership roles, who have declared an interest in serving on boards.
7. Engage a search firm: Look for search firms that demonstrate success in identifying and engaging outstanding women candidates to boards in your industry. Probe for examples of where search firms have been successful in both identifying and, more importantly, securing high-quality women candidates for their client boards. Be sure to ask the search firm about how they cultivate their own evergreen list of up-and-coming female board talent.
8. Maintain an evergreen list of candidates: When a board only seeks potential nominees at the time of a planned vacancy, it risks being ill-prepared for an unexpected turnover.
Rushing to fill an unplanned vacancy creates an increased risk of not being able to find the ideal candidate. We recommend maintaining a roster of potential board nominees who have been identified because they possess the skills, character and demographic characteristics the board needs at a given point in time or anticipates needing in the future.
Rushing to fill an unplanned vacancy creates an increased risk of not being able to find the ideal candidate. We recommend maintaining a roster of potential board nominees who have been identified because they possess the skills, character and demographic characteristics the board needs at a given point in time or anticipates needing in the future.
We believe that organizations experience the greatest benefits of diversity when they have between 40 per cent and 60 per cent female representation at all levels, and this is true of corporate boards as well. It is good for all of us when corporate Canada represents the best of us.
"Gender diversity and inclusion require strong advocates": Today I found this article by Luc Villeneuve in the Globe and Mail:
Canadian country leader and general manager at Red Hat, Inc., a global leader in open source.
Years ago, when I attended my first industry women's luncheon, I looked around and realized I was one of two men. Instead of feeling out of place, I felt incredibly welcomed in the gender diversity and inclusion community when the host and many attendees came over to thank me for taking the time to listen, support and understand their important work. After this meeting I became a strong advocate.
The recent media stories about unwanted behaviour in the workplace spanning various industries, and the subsequent social-media movements this has spawned, have amplified what can be done when we all come together as a community and lend our talents to guide change As Deloitte declared last year in their study Outcomes over Optics: Building Inclusive Organizations, what Canada needs is more courageous business leaders to move beyond "colourful window dressing" to take decisive action.
I work in the open source software industry and have seen first-hand the impact of bringing diverse minds together for the greater good. Open source was established around the ethos of sharing and collaboration to develop, test and openly share software code that anyone is able to use.
Twitter, Facebook, LinkedIn and Netflix are just a few of the corporate giants created using open source. Open source is rooted in the belief that the more we collaborate, the more voices join the conversation and the more diverse we are, the better we are able to innovate and meet new challenges.
Twitter, Facebook, LinkedIn and Netflix are just a few of the corporate giants created using open source. Open source is rooted in the belief that the more we collaborate, the more voices join the conversation and the more diverse we are, the better we are able to innovate and meet new challenges.
If you aren't engaged in the gender diversity and inclusion community, I challenge you to make 2018 the year of solid outcomes and sharing successes. Here's how I've been collaborating to drive change.
Leverage your unique talents – One of my strengths is as a connector. I am leveraging my networks to attract the best diverse talent, but I'm also continually bringing together groups of experts. I just hosted my second annual Women + Leadership thought leadership event where we brought together tech and gender diversity leaders in Canada from Microsoft, HPE, Catalyst Canada, Ryerson University and more to share stories about unleashing their power.
Men and women shared the stage to speak candidly, which generated lively and thoughtful discussions on stage and in the audience. The main audience takeaway was that we all want to work together.
Men and women shared the stage to speak candidly, which generated lively and thoughtful discussions on stage and in the audience. The main audience takeaway was that we all want to work together.
Step up as an ally – I often find myself in the position of being an ally, and I am committed to helping guide positive change for underrepresented and minority communities. Being an ally is all about showing vulnerability, confronting your own prejudices and dealing with discomfort to be an understanding and open-minded friend.
Red Hat has created resources for associates who want to be better allies, as part of our D+I Communities program. These materials were adapted from expert resources, including a concept developed by the Human Rights Campaign, an advocacy group that works for the LGBT community to ensure their rights and safety at work, home and in the community.
Red Hat has created resources for associates who want to be better allies, as part of our D+I Communities program. These materials were adapted from expert resources, including a concept developed by the Human Rights Campaign, an advocacy group that works for the LGBT community to ensure their rights and safety at work, home and in the community.
Review your HR foundation – A number of leaders, including Canadian Prime Minister Justin Trudeau, have proclaimed that "systemic problems" are at the heart of unwanted behaviours.
An organization's foundational processes – compensation, hiring, promotions, performance assessments and development – guide the way our organizations operate and need to be continually reviewed. I'm working with my HR experts to review all of our processes to make them more fair and transparent to help eliminate systemic biases that can be barriers to success.
An organization's foundational processes – compensation, hiring, promotions, performance assessments and development – guide the way our organizations operate and need to be continually reviewed. I'm working with my HR experts to review all of our processes to make them more fair and transparent to help eliminate systemic biases that can be barriers to success.
Be a brave champion for others – Dr. Imogen Coe, Ph.D., dean, faculty of science, Ryerson University, is an inspiration in leveraging influence to enable everyone to contribute and be heard. "I have been a vocal advocate on behalf of equal representation for women in various situations," says Dr. Coe.
"Some men have contacted me privately to say they agree with my statements. I ask them to speak up publicly and be active visible allies so that the burden of the work in support of equal representation and gender equity does not always fall to one person, and importantly, not on the shoulders of those who are members of the under-represented group."
"Some men have contacted me privately to say they agree with my statements. I ask them to speak up publicly and be active visible allies so that the burden of the work in support of equal representation and gender equity does not always fall to one person, and importantly, not on the shoulders of those who are members of the under-represented group."
Lend your voice to engage the community – I have chosen LinkedIn to regularly share my views and this has led to opportunities to speak on panels, be part of gender-diversity academic case studies and help broker introductions to other experts.
There are numerous innovative social movements where leaders share examples of how they are supporting women. #GoSponsorher, co-founded by Deloitte, McKinsey and Catalyst, challenges senior leaders to post a photo on social media with women they are sponsoring along with the hashtag to encourage others to take action.
There are numerous innovative social movements where leaders share examples of how they are supporting women. #GoSponsorher, co-founded by Deloitte, McKinsey and Catalyst, challenges senior leaders to post a photo on social media with women they are sponsoring along with the hashtag to encourage others to take action.
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