Unlocking Board Diversity: Highlights from the WGOB Toronto Summit Q&A

At the recent sold-out WGOB Summit Toronto, Ivy Lumia and Alyssa Barry took the stage to provide valuable insights into the journey and importance of Deliberate Board Diversity. The discussion began with the inspiration behind the initiative, highlighting the rapidly changing global landscape and emphasizing the necessity for board composition to evolve to meet these new demands.

There are urgent calls for diversity, with several driving factors. These include the Canadian Securities Association's push for better governance disclosure, government-led challenges like the 50:30 initiative, legal requirements under the CBCA, and pressures from institutional investors and shareholder activism. With a show of hands from the audience, many in the room are affected in some way by these factors and this underscores the need for practical solutions in board diversity.

The Deliberate Board Diversity project, a collaborative effort between Women Get On Board (WGOB), irlabs, and Best in Governance (BIG), aims to fill the gap between understanding the importance of diversity and implementing it practically. Ivy stressed that while upcoming regulations might address the "what," the "how" remains a challenge. The project seeks to create a practical methodology to help boards navigate this complexity.

Research for the project included interviews with directors, governance professionals, and stakeholders across Canada, alongside the synthesis of numerous publications and public commentary letters. These efforts revealed several surprising insights.

Many organizations view diversity through a limited lens, often missing the broader implications of identity, professional background, and character diversity. Additionally, outdated perceptions of board directors and significant gaps in understanding were evident.

To develop practical solutions, the project identified key parameters. Recognizing that no one-size-fits-all approach exists, it acknowledges the multifaceted nature of diversity and the varied needs of organizations. These insights led to the formation of four distinct components essential for deliberate board diversity: Governance Foundation, Recruitment, Integration, and Evaluation.

Governance Foundation focuses on establishing a robust framework for defining diversity and accountability. Recruitment involves creating thorough processes to ensure diverse and qualified candidates. Integrationis about assimilating new board members to foster an inclusive environment. Finally, Evaluation measures board diversity to identify gaps and plan for future needs.

The process of achieving Deliberate Board Diversity is not linear. Boards must address different components as needed, much like a combination lock that turns back and forth to unlock the desired outcome.

And with that we share again our exciting news! The upcoming launch of a digital interactive toolkit designed to help organizations achieve Deliberate Board Diversity. This toolkit will provide practical guidelines and resources, enabling boards to address diversity challenges effectively, regardless of where they are in their journey.

Stay tuned for more updates on this innovative toolkit, poised to transform board diversity practices!

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