2. Recognise and address unconscious bias

Bias can come in different forms. It includes using stereotypes and the tendency to gravitate toward those we immediately recognise as familiar (think about who you choose to sit next to on the bus). Bias is a human trait, used to make quick decisions about our personal safety and who we surround ourselves with. We use biases every day to make decisions from what bread to buy to how we travel to work.

The downside of bias is that we can make quick and final judgments about others. It provides a fast track for decisionmaking that leads us toward the familiar. In board composition terms, we can end up surrounding ourselves with similar people.

There are many types of biases. For example, confirmation bias is when one actively seeks information and interpretation which affirms established beliefs while missing information that contradicts established beliefs.

Unconscious bias is the product of unconscious knowledge (what we know) and unconscious thinking processes (how we think) and can happen automatically or quickly (fast thinking).¹

This may seem more efficient but if relevant information isn’t considered, then decision-making, for example on appointments, may not be optimal.

Unconscious bias can be overcome in recruitment by ensuring there is a merit-based appointment process. For example, in the late 1970s the top five orchestras in the USA had fewer than 5% women members. Blind auditions were introduced – with auditioning candidates behind screens in the early rounds. Women now make up over 30% of members.

A lack of board diversity can indicate unconscious bias influencing decision-making about board appointments. This could mean the composition of the board may not be based on what the company needs and therefore not as effective as it could be.

The thing about unconscious biases is that we are not aware of them. Even if you support diversity there will be biases that have shaped your world and continue to do so. The challenge is to be aware of, and overcome biases, both conscious and unconscious. Online tools and tests can provide a good starting point for identifying individual biases.

In 2017 only 19% of directors of NZX listed boards were women, compared to 26% in Australia and 27.9% in the United Kingdom. Internationally we are lagging rather than leading on listed boards.

Tips for recognising and addressing unconscious bias:

• Acknowledge that unconscious bias exists
• Question assumptions and build awareness of biases – try one of the online tests to identify your biases
• Take time to consider and evaluate decisions, eg seek an independent/peer review
• Ensure there is an objective competency and merit-based appointment process, eg remove personal information from CVs
• Give appropriate weight to intrinsic competencies and capabilities, rather than over-valuing certain kinds of experience

¹ Ministry of Women’s Affairs, Realising the opportunity: Addressing New Zealand’s leadership pipeline by attracting and retaining talented women (2013)