1. Create an inclusive culture

Leading an effective culture is fundamental to how a board adds value. Board composition and a commitment to a high performance culture focused on engaged, quality governance underpins an effective culture. An effective board champions debate, diversity, thoughtful challenge and dissent.

The board also sets the tone for the culture of the organisation. The importance and value of diversity needs to be integrated and embedded into the culture of both the board and the organisation.

International research, including work by Tomorrow’s Company, McKinsey & Co and Deloitte, maintains that to achieve greater diversity we need to focus on creating a merit-based culture that supports inclusion and diversity. It’s about accessing and optimising diverse talent to enhance individual and collective capability.

Central to this is recognising and addressing biases, assumptions and language that underpin the existing culture. For example, unconscious bias (see Step 2) can be embedded in organisational structures and processes, such as recruitment, performance management and talent selection, and can undermine the achievement of meritocracy.

There are big challenges in re-shaping a culture. It is not about a ‘bad’ culture becoming ‘good’ but instead it’s lifting the game to get the best out of everyone. Inclusion is about making a diverse mix of people, with all their similarities and differences, work.

The chair has a pivotal role in leading the board but every board member contributes to the culture of the board. Individual board members can have different degrees of influence and power within a board and actively avoiding a ‘pecking order’ will help foster inclusion.

All board members have a responsibility for creating an inclusive culture that enables contribution with respect.

Tips for creating an inclusive culture: 

• Put a stake in the ground. Be explicit that diversity matters: be vocal and be prepared to measure yourself
• Have an open mind-set that values diversity of thought and facilitates full participation of all members
• Address expectations about board inclusiveness in the interview and orientation process
• Respect and treat people fairly based on abilities
• Put diversity on the agenda for regular discussion, eg annually, as part of strategy, board evaluation and succession planning discussions
• Encourage diversity throughout the organisation – especially in middle and senior management – the executive and governance pipeline.

Role of the chair

The chair is uniquely placed to lead an inclusive culture and promote diversity on the board and in executive management.

Effective leadership from the chair can make the difference between a high or low functioning board. The chair frames and stimulates debate on issues while supervising the conduct of the meeting. Good chairs draw out the views of more reticent board members and manage the more zealous contributors. They help create a culture where directors can bring a robust, independent view to the table, and where appropriate dissent is valued.

Recent research highlights the need for inclusive leaders to adapt to different contexts and this includes diversity of thinking. Leading a diverse group is more challenging than leading people who are similar. Courage and self-awareness are key enablers.

Tips for chairs:

• Champion diversity and lead by example – set the tone from the top
• Demonstrate a commitment to inclusive behaviour
• Take an active view on diversity in appointment and selection processes
• Seek and welcome different and contrary views into discussion
• Dig for value: See that dissent and different perspectives have value and manage them appropriately
• Recognise differing boardroom styles to take the best from each director