Building an inclusive boardroom together

A board’s composition and culture shape decision making, stakeholder trust and, ultimately, organisational success.

At the recent Institute of Directors (IoD) event on Accelerating action for women’s equality, the message was clear: the battle for inclusion in governance is far from over. 

IoD Chief Executive Kirsten Patterson CMInstD referred to “the power of and”, highlighting the need for men and women to work together to build an inclusive boardroom, to support a pipeline of women into executive and board positions, and to call out discrimination and bias.

The challenge for boards is to move beyond passive support for inclusion and take active steps to ensure governance structures, recruitment processes and leadership development create real pathways for women and other underrepresented groups.

IoD President Jackie Lloyd CFInstD acknowledged the importance of being strategic in board appointments. “I expect a balanced shortlist, even if they have to try really, really hard and go back again.” 

That deliberate approach can make the difference between progress and stagnation. 

Strategies such as using an external recruitment company rather than shoulder-tapping, ensuring the appointment panel is diverse in its make-up, using inclusive language in advertisements and considering your skills mix to ensure it reflects your strategy, were highlighted as important steps when undertaking board appointments. 

Company director Carolyn Steele CMInstD emphasised looking for potential when considering candidates. “Identify candidates outside of the typical network and really focus on the skills that you’re wanting,” says Steele. 

Not having held positions at the executive level doesn’t mean people don’t have the potential to be effective in governance.

Succession planning was another key element of board recruitment. Governance is not just about who is in the room now; it is about who will be in the room next. Boards need to take an active role in succession planning and talent identification, ensuring diverse candidates are considered for both executive and governance roles. Chairs can encourage structured board development programmes, such as Future Director initiatives, governance education and mentoring, that provide emerging leaders, particularly women and other underrepresented groups, with real governance experience and support.

Mentoring and sponsorship have long been demonstrated to be critical as a means of levelling the playing field. Lloyd reinforced the importance of helping uplift people and building their confidence. 

“You should never undervalue your role in helping other people,” she says. Whether it’s a comment such as “you handled that really well”, suggesting their name for a board role, introducing them to people in your network or an invitation to an event, sponsorship can be incredibly helpful. 

“Never doubt that the small things make a difference,” said Patterson.

Critically, boards also need to think about how they create an environment where diverse perspectives are valued. All three speakers reinforced that it’s not good enough just to have diverse people on the board, but the importance of them having a voice, and being listened to.

Lloyd introduced the term “he-peating” – which resonated strongly with the room of women (plus one man) viewing the event via livestream in Nelson. He-peating refers to when a woman suggests an idea or raises a concern and is dismissed or ignored, but later when a male says the same thing, it is listened to and agreed with.

When such behaviour does take place – hepeating, mansplaining, manterrupting – or open misogyny and bias – the responsibility should not and does not fall solely on women or minority board members to call it out. Patterson reinforced the role of allies – such as panel facilitator Matt Prichard, who is chair of KPMG and World Vision and co-chair for the global women’s Champions for Change – to help drive and accelerate the change that’s needed.

Boards that are serious about inclusion cannot afford to be complacent. Steele noted that while New Zealand ranks among the top three countries for board gender balance, according to The Economist’s annual Glass Ceiling Index, the work is not done. True inclusion requires deliberate action from chairs, directors and leadership teams to ensure governance is not just diverse on paper, but that the business benefits are delivered in practice.

For boards and chairs, the question is not whether inclusion is important – that has been settled. The real question is whether they are prepared to lead the change, or whether they will be left behind by those who do.