Cognitive diversity – the journey is only just beginning
Diversity can take many forms. People from ethnic minorities, those with experience in different sectors and younger people can all bring new perspectives to board discussions.
While many may celebrate the fact that the most recent FTSE 100 report showed that over 30% of seats on boards of UK publicly listed companies are now occupied by women, the question of whether gender diversity equals cognitive diversity is now coming to the fore, as highlighted by Johanne Grosvold in her upcoming article in Governance and Compliance magazine.
In her session at the upcoming Diversity and Inclusion Summit taking place on 22 March, Johanne, a co-author of the Scottish Widows report Great Minds Don’t Think Alike: Cognitive Diversity in The Boardroom, will be discussing the theme of cognitive diversity. Often described as how someone processes knowledge, solves problems and learns, and the norms, experiences and values that shape their decision-making, cognitive diversity is an increasingly hot topic when discussing board composition.
When reflecting on the credentials sought by executive recruiters – previous board experience, having worked for large City institutions, chartered status – it becomes more evident that the pool of candidates for consideration is quickly narrowed. While it’s important to make sure that board members are sufficiently qualified to take up meaningful positions on boards, it’s evident that with similar backgrounds and experiences, women may not bring cognitive diversity to board discussions simply by virtue of their gender.
Research into cognitively diverse groups indicates that they generally make more robust decisions as they engage in less groupthink than homogenous groups. However, achieving the required level of diversity is not without challenges. For example, those from alternative spheres of experience may belong to different professional networks making them less visible to recruiters, and it can take longer to achieve a common language and sense of belonging with a more diverse group. In addition, limited spaces on boards may curb diversity as there are only so many facets that can be represented within a relatively small group.
In her article, Johanne highlights steps that boards can take to identify potential diversity gaps in their make-up. Undertaking a board review, seeking input from an outsider such as a consultant and asking yourself to take an alternative viewpoint are all methods that can be used to alert boards to cognitive diversity issues.
Diversity can take many forms. People from ethnic minorities, those with experience in different sectors and younger people can all bring new perspectives to board discussions. It is time to harness the momentum achieved by corporate board gender diversity and use it to support diversity in all characteristics – ethnicity, neurodiversity and sexuality, to name but a few. In the aftermath of the COVID-19 pandemic, which has exposed and, in some cases, exacerbated inequalities, now is the time to ensure that your board, company, and shareholders benefit from the improved decision-making that can be achieved with a truly diverse board.
Johanne’s full article will be featured in the March 2022 issue of Governance and Compliance.