BREAKING NEWS LAST WEEK: Goldman Sachs will no longer be doing Initial Public Offerings (IPOs) with companies that have all-male boards.
The company announced last week that at least one board member had to be considered diverse before they considered any form of IPOs, and we thought – well why not? That’s a fantastic approach and something that all businesses should be considering.
Developing a diverse board is essential in this day and age, and it’s not only important for the diversity of views around a room but also for the understanding the cultural disposition of potential clients and their necessary demographics.
To create diversity within a board you need to:
1. Come up with a strategic plan – Remember the importance of the stakeholders or shareholders. It is absolutely crucial that when you put together a plan you remember why the company needs to improve the diversity.
2. Embrace diversity on a corporate level – It isn’t as simple of a task as you first may think. Creating a diverse board needs approval, time and an understanding of what is currently lacking on a corporate basis.
3. Recruit – Make sure you don’t limit your options when it comes to the minority missing member of the board. If you get 2-3 amazing members on board then congratulations – you have achieved an impressive board that other businesses would love to share opinions with.
4. Board Outreach – This is an ongoing project, and one that you should never just push to the back of the ‘to do list’. Always assess who you have on the board, and why they are sat in a seat. If you feel a diverse member of the team is missing then go through the process again and recruit someone impactful.
Improve your business perspectives and reputation today and grow with the future of diverse thinking and capabilities.