This article was produced by Harvard Business School Working Knowledge. Boards recognize that innovative problem-solving requires diverse talent, perspectives, backgrounds, and styles. Having a range of views prevents the groupthink and blind spots that undermine decision-making and creativity. But diversity can bring conflict. Board members—especially those who are new, more inexperienced, or from a different demographic background—don’t always feel psychologically safe, especially if their views run counter to the dominant perspective. They have good reason to be anxious. Many boards are unable to leverage the benefits of robust debate and discourse that involves different points of view. What does it take to draw on the talents of all members and build an effective team? To probe these questions, we spoke with 30 experienced directors one-on-one and as a group—nearly half of them Black and 40% women. They collectively served on the boards of 120 leading companies with a combined market value of $18 trillion. All but four of the companies are U.S. listed, and around 60% are part of the S&P 500 Index. Subscribe to the Working Knowledge newsletter to get their research coverage in your inbox every week. We learned several truths about what it takes to cultivate a truly inclusive board culture, where everyone feels, as one director put it, “valued in their own skin.” Inclusion Takes Effort As one director noted, “Inclusivity isn’t about a number; it’s about a spirit.” On a truly inclusive board, directors not only freely express their views, but the board leverages those unique insights in decision-making. However, our research confirms that the more varied perspectives become, the greater the need for skilled leadership and board members who see conflict that emerges from diverse views as grist for innovative thinking—not just “problems to be solved.” If not well-managed, differing views can bring miscommunication and misunderstanding. The barriers to “feeling really heard” as opposed to “just listened to” may be hard to detect. One board chair described her surprise at learning from conversations with members of her carefully constructed board that some didn’t feel their voices were being given the same weight as others, despite every director being highly accomplished. It might seem like basic civility, but it bears repeating: Small slights add up. A dismissive look, checking your phone while someone is speaking, failing to acknowledge another director’s comment—any of these seemingly small, and perhaps even unconscious behaviors, can convey a lack of respect that serves to diminish the speaker or what has been said. Inclusion starts with deliberate connection. That might mean asking a colleague to “say more” to encourage them to elaborate rather than dismissing their point because you aren’t sure you understand it or reinforcing a comment by a director whose input has yet to be incorporated into the discussion. Or it might mean inviting a quiet director for coffee before an upcoming meeting or sitting next to a new director rather than taking your usual seat next to a long-standing colleague. It’s about taking the opportunity to shake up old habits and create a healthier board culture. Previous Board Experience Isn’t Everything Companies are looking at board candidates more holistically, considering their unique skills and experiences, and how they might complement existing board members and key stakeholders. Beyond relevant business expertise, all directors should have: Interpersonal skills to engage effectively with colleagues and management. The courage to raise even controversial questions. The ability to listen and keep one’s ego in check. Traditional approaches to filling board vacancies, which often tap incumbent directors’ networks, don’t necessarily produce candidates with this profile. To cast a wider net, directors we spoke with said that boards should: Go beyond CEOs and CFOs. Several directors we spoke to recommend looking to the rest of the C-suite for candidates and considering experiences rather than job titles. For example, a candidate who is a CTO, a CIO, or even a digital native might be more well-versed in emerging technologies. Companies expanding globally might gain more from senior executives who have grown up and worked in their target markets. Be open to first-time directors. The perspectives they bring might make up for what they lack in board experience. To be sure, board leaders need to think through the support each new board member requires to do their best work and be prepared to provide that support. For the directors we spoke with, getting the right mix of talent is about basic board competence. Said one: “When I see a diverse board, I see a competent board first. Why do we need inclusion? Because without it, we won’t be competitive.” Board Leaders Set the Tone Leaders—chairs, lead directors, committee chairs—play special roles in ensuring inclusivity. Chairs and lead directors must be aware that they are, in the words of one chair, “a gatherer of peers and not a boss.” The best leaders: Facilitate discussions that elevate all voices. They create an atmosphere of openness and leverage the best of all the board’s members. Launching a discussion with “Here’s what I think—do you agree?” rarely leads to a healthy dialogue. This is not just a mechanical exercise of going around the room and inviting each director to speak—though that can be useful at times—but of managing the discussion to ensure that all directors are being heard. Identify and cultivate other potential leaders. They make sure that all directors have an opportunity to participate and be considered for leadership roles. As one director noted, ‘”A really great [committee or board] chair is someone who’s very intentional about drawing those[different] voices out” and devising thoughtful board succession plans. Take the pulse of other members. Several board and committee chairs recommend having one-on-one discussions with all directors periodically to get their views on the functioning of the board, and how they feel about their own participation and aspirations for leadership roles. These conversations help chairs assess whether more reticent members feel stymied by board dynamics. It’s also an opportunity for chairs to encourage outspoken directors—especially those who always interrupt others—to give others a chance to speak. Convene and train. Many participants say that informal gatherings are key to strengthening members’ sense of belonging and the board’s ability to function. This includes holding dinners, traveling to company site visits together, and ensuring that most meetings are face-to-face and not virtual. While easy to discount, these activities help board members get to know each other, and build trust and influence. Strong leaders ensure that all members have the relationships and knowledge they need. They help board members get to know management and high-potential executives in the organization. They offer opportunities for members to learn about industry trends or emerging technologies. Culture Starts with Onboarding A director’s early experiences and first impressions can disproportionately impact how they are perceived and their role over time. Consider the issue of credibility. No director, no matter how accomplished, enjoys instant credibility, but earning it can be harder for people with demographic identities that differ from those of the dominant group. During our conversations, minority directors said they’re often expected to represent or advocate for their identity group. These assumptions are rarely explicit, although navigating them can be emotionally charged for all concerned. Minority directors, even those who choose to advocate for their identity group, do not want to be seen as “single issue” directors. People who don’t share the same background or professional path may have different social networks than their peers. They may have had different upbringings, rely on different news sources, enjoy different leisure activities, or have different cultural interests. Such differences may make finding commonalities more challenging. What helps new members during this critical time: Onboarding support that reflects their distinctive experiences and backgrounds. A custom approach can help them contribute sooner while also showing the board’s appreciation for them as individuals. Mentoring so that new members can learn company lingo, context, and unspoken rules and norms. These relationships also give new directors a way to share concerns and help them meet key people in the company. Existing directors must actively forge relationships with new directors. And new members might need to help people get to know them by sharing their expertise and eagerness to engage. One director recommended that new board members proactively reach out to a different director every few weeks or months. “When the conversation turns to sailing, and you’ve never been on a boat in your life and never sailed, you have to include yourself,” said a Black director. His advice: “You’d better go over there and start [asking] ‘How did you learn to sail?’ ‘What kind of boat did you have?’ ‘Did the whole family sail?’” “If you are waiting for others to include you, you may have a long wait,” he added. A “Board-Within-a-Board” Will Undo Your Best Efforts A board should be a team of equals, but that’s not always the case. Many interviewees talked about the damaging effects of having, in effect, two classes of directors—“the ‘go-to’ directors versus the others.” CEOs sometimes gravitate toward the directors they know or those from similar backgrounds. Some managers may dislike being questioned and prefer directors who don’t rock the boat. Directors encourage this dynamic when they casually discuss board matters with executives over golf or tennis, or when an executive committee makes decisions on behalf of the full board. These seemingly innocuous behaviors can become insidious, culminating in a culture of insiders and outsiders. When these corrosive classes form, they can undo even the most thoughtful and deliberate efforts to foster inclusiveness. When that happens, companies compromise a true source of strength: the unique talents of their directors.
