Neumeier stated that he first got the idea of RoboCop when he walked with a friend past a poster for Blade Runner. He asked his friend what the film was about and his friend replied, "It's about a cop hunting robots".
Having people on your board of directors who were reliable, like-minded and known entities was the most logical strategy to build a board.
Even if this strategy was well-intentioned, it came with a number of significant downsides. First, it created an environment in which directors were beholden to the CEO for their seat—something that clearly undermined board independence.
Second, a board built on a handful of relationships has the inherent risk of insularity. This homogeneity can be a hindrance in an increasingly dynamic environment. As globalization, the rapid deployment of technology, an increasing need for risk management and the shifting demographics of workforces made businesses much more complex, boards began to broaden their composition.
But diversity for its own sake falls short of both the need and the opportunity. An evolution is under way, and boards now are beginning to realize that it is the breadth of perspective, not the mere inclusion of various diverse traits, that benefits the organization.
Executing these changes requires two general conditions: This complicates the task of the board nominating committee, which has taken the lead in shaping the composition of the board. How does the board determine the characteristics sought in new directors—and the combination of them—whose service will be in the best interest of the company?
Which candidates should be selected, especially in the context of those already on the board? What guideposts should nominating committees use given the wide latitude public companies have in who they place on their boards?
In view of the evolving responsibilities and influences of boards, we set about to study how boardroom heterogeneity is perceived and valued by directors. Our focus was gender, as there has been a significant amount of change regarding women in the boardroom over the last decade.
As we began to probe, we realized that our findings on this issue transcend gender to address a broader subject. How does diversity of perspective in the boardroom lead to a good dynamic and better governance? How can boards better structure themselves to benefit their constituents?
Finally, how can candidates and nominating committees respond to the opportunities and needs that already exist? Our Learnings "We have a hunger of the mind which asks for knowledge of all around us. A wide range of perspectives, not merely token representation, is critical to effective corporate governance.
The trend toward diversity is essential as boards look to navigate the complex and dynamic issues that companies now face. Boards become greater advocates for diversity as they have more direct beneficial experiences with it. We learned the following: Fortune boards include a large number of women directors from non-business sectors.
Women from government service, academia, nonprofits and the legal profession currently account for nearly half of all women directors. Among women directors who have joined these boards more recently, however, we see an increase in those with corporate backgrounds. This trend is not surprising.
A decade and more ago, women with significant professional accomplishment were more likely to be found in universities, foundations and government, sectors that were quicker to lower the barriers to their most senior leadership ranks.
As more women gain C-suite experience, director candidate pools are bolstered see Chart 1. The board committees on which directors sit often reflect numerous factors.
Our anecdotal findings suggest that women are perceived as being particularly valuable on nominating committees because these directors represent a desired diversity group the old reasonand they bring a broader perspective the new reason.
Notably, women are underrepresented among the ranks of those chairing committees. This, along with the underrepresentation on executive committees, may be a function of the influence that board tenure plays in determining these roles.
Other factors could be at work here as well. What We Heard from Directors The directors with whom we spoke were passionate about the topic of diversity of perspective, both in general and in the specific case of gender.
They had strong opinions about the effect of bringing different perspectives to the boardroom, the qualities most sought in directors and the paths that lead to the boardroom. Here is what we heard: Having a wide range of perspectives represented in the boardroom is critical to effective corporate governance.
Having multiple views on the possible outcomes of any action makes for a decision-making process that is more likely to take into account the various risks, consequences and implications of possible actions.
Having directors from very diverse backgrounds really helps. A diverse board allows for the group to better anticipate and consider the concerns and perspectives of all key constituencies. Being able to draw upon a diverse set of competencies and knowledge is essential if boards are to successfully address the complex issues their companies face.Ethical Boardroom is the premier, subscription based magazine and website that is trusted by influencers for its unparalleled track record in delivering in-depth coverage and critically aware analysis of global governance issues.
Just as artificial intelligence is helping doctors make better diagnoses and deliver better care, it is also poised to bring valuable insights to corporate leaders — if they’ll let it.
At first blush, the idea of artificial intelligence (AI) in the boardroom . the UK corporate sector are female, women hold only 6% of non-executive director positions. Another argument is that, because they do not belong to the “old boys club,” female directors may more closely correspond to the concept of the independent director emphasized in theory.
Prior to this position, Mr. Billing was Hasbro's Executive Vice President, Chief Operations and Business Development Officer and Executive Vice President, Chief Development Officer.
In these role’s, he led Hasbro’s global toy and game product development efforts, worldwide supply chain operations and the new business development team. In , Mulally was an inductee as a Pathfinder in the Museum of Flight and the Automotive Hall of Fame.
Mulally was named to Google’s board of directors in July , the board of directors of Carbon3D in May , and serves on the board of The Mayo Clinic. the UK corporate sector are female, women hold only 6% of non-executive director positions. Another argument is that, because they do not belong to the “old boys club,” female directors may more closely correspond to the concept of the independent director emphasized in theory.