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This post is part of a series, “The One Thing,” where I ask today’s successful leaders to identify the single most important lesson they’ve learned on a given topic.
Today, women account for less than 20% of all S&P 500 directors with their representation in the highest levels of leadership flatlining in recent years. Yet research continues to show that diversity within the boardroom drives bottom-line benefits for shareholders. Companies with as few as three female board directors, for example, have statistically demonstrated stronger-than-average financial performance. So can we realistically balance the boardroom in the coming decade – and can we do so in a way where experience isn’t sacrificed for the sake of social equity?
These were some of the questions being addressed at the recent Breakfast of Corporate Champions, hosted by the Women’s Forum of New York, which brought together over 650 business leaders committed to transforming the face of America's boardrooms. From Muhtar Kent of
While there’s no single force that will solve for the current challenges, these leader's shared a number of strategies that can be employed to ensure that diversity is front and center as a business imperative.
What's "The One Thing" that leaders can do to ensure that diversity remains a priority within their organizations?
Leadership MUST Represent the Market You Serve
“We have to keep talking about the importance of gender diversity in business and on our boards in terms of the positive impact it can have on business results in dollars and cents. That’s something business leaders understand. Women today represent 40 percent of the global workforce, make 70 percent of global household purchases and control about $20 trillion dollars in annual spending. This is why at Coca-Cola we have been on a journey to make our board and company leadership more closely reflect the market we serve.”
-Muhtar Kent, Chairman & CEO, The Coca-Cola Company
Diversity Needs To Be Mandated From The Top
"The first thing to ask is, how bad do you want it? It’s nice to say ‘I wish my board had more gender diversity.’ But if you want it, you have to go out and make it happen. There is no need to trade off talent, skills, or experience because you like a woman. You have to find a way to get past the usual way of doing things. There is no need to compromise on anything. A bad place to start is ‘I’d like a woman who.’ A good place to start is, ‘Here are the skills that I need.’”
-Shelly Lazarus, Chairman Emeritus, Ogilvy & Mather
"Boards and CEO’s must take an active role in seeking female directors, understand that this is a business imperative, be open to unconventional candidates and be resolute that the search be limited to a female slate with no exceptions."
-Mindy Grossman, CEO, HSN, Inc.
Expand Board Criteria…And Link It With Corporate Growth
"There’s a lot of work that can be done with skills expansions. The question I consistently ask is, are we marrying the strategy of the company along with the focus of the board? We should see a representation of where the company sees itself in five years versus where it is at the moment. The growth in technology opens up windows for women engineers that are very prevalent and very talented. As we look at just how critical it is in the compensation area, women in HR roles have not been considered for board seats in the past…Get that talent and skills expansion in the right seats and talk about marrying that with growth of the company."
-Rosalind Brewer, President & CEO, Sam's Club
Empower The Talent Within
“Ensure women are represented throughout the corporate pipeline, especially in roles with P&L responsibility. Operational and leadership experience is critical to achieving parity.”
-Maggie Wilderotter, Executive Chairman, Frontier Communications
Create an Inclusive Board Culture
"Diversity starts with a conversation not only with the CEO but with the other board members. The board culture has to be that everyone wants a diverse board. You always have to be looking for board members. You cannot be looking for board members when its coming up to the time you need a succession plan. You need a succession plan that’s plan on-going. And if we have to increase the board for one person because we’ve found someone fantastic, that’s what we should do. The whole board has to be involved and engaged in the culture of a diverse board."
-Catherine Kinney, Former President and Co-COO, New York Stock Exchange
“A truly diverse Board is created purposefully. Nominating and governance committee members must be unified in the view that a broad array of expertise, knowledge, skills and perspective enable a competitive advantage that avoids “group think” and creates a business readily adaptable to an ever-changing business environment.”
-Rodney O. Martin, Jr., Chairman and CEO, Voya Financial
More From 'The One Thing' Series
I Wish I Knew Then: 6 Power Women Share Most Valuable Career Advice: What’s “The One Thing” You Wish You Had Known Starting Out In Your Career?
'When Your Gut Speaks, Listen' - And More Advice On Building A Million-Dollar Business: What’s “The One Thing” you didn’t see coming when launching your business?
Why You Always Need A 'Ride Or Die' Investor And Other Top Advice On Getting Funded: What’s “The One Thing” you wish you had known going into the fundraising process?
What I Wish Someone Had Told Me Before Starting College: What’s ‘The One Thing’ you wish you had known before setting onto campus for the first time?
