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Ever since the Higgs Report and the efforts of the DTI through the Tyson Report, diversity is a topic of conversation amongst chairmen and chief executives of leading companies. There is a broad consensus that a senior management team, which has people with a wide range of backgrounds and opinions, will be more creative and better able to deal with crises than a team with a very narrow outlook. In companies where a significant proportion of the workforce is either female and/or from ethnic minorities, it also sends a message to the employees that they too can reach the boardroom. Furthermore, in companies where a significant proportion of their customers are female and/or from ethnic minorities, it brings the board closer to the customers. The question is what needs to be done in order to achieve more diversity in boardrooms? As a search consultant with a “diverse background” (Indian Origin), I find some of the initiatives proposed by the various reports and indeed consultants mildly amusing. Words like sexism, racism and prejudice are bandied about far too often. Some Chairmen seem to have abandoned any thought of skill sets and are in a mad rush to appoint a woman to the board, lest they too be accused of being dinosaurs. Chairmen must bear in mind that first rate candidates will not join their boards if they sense even a whiff of tokenism. Second rate candidates are not worth appointing whatever their gender or colour of skin. First rate female and ethnic minority candidates, who are suitably qualified to contribute to boardroom decisions, are still somewhat limited. It will probably not be the case in years to come but everything takes time. It is a good thing that the corporate sector has woken up to the advantages of having a diverse board. However, to lower the quality threshold too far and convert it into a box-ticking exercise, will undermine what is a thoroughly sensible policy. Companies still need to start off by identifying the skill set that they require in a new director. They should then emphasise to the search firm that they would prefer to see a diverse shortlist. The consultants should go the extra mile in seeking out people who are suitably qualified but not necessarily the most obvious. The second and very important aspect is the interview. Chairmen and fellow directors must make an extra effort to get to know and establish a chemistry with candidates from diverse backgrounds. Most companies without women or ethnic minorities on the boards are neither sexist nor racist. It is just that the people making the appointments feel more at ease with others from a similar background and fail to appreciate the calibre of somebody with a different background. This is due to many factors including different mannerisms and interests etc. It helps if the consultants engaged are not falling into the same trap themselves. The writer is chairman of Buchanan Harvey & Co., an executive search firm.
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