The New Talent Matrix
It is the board’s responsibility to identify and develop a diverse slate of prospects.
Today’s business climate is constantly evolving, but the boardroom talent matrix remains centered around traditional skillsets, including prior CEO experience. To build a more inclusive board, companies must expand the talent criteria to consider additional skills and functional experience.
The Alliance supports the development of a new board talent matrix and standards that take into consideration a broader lens of experience and titles.
Competencies to be considered include:
- Risk Management
- Future of Work
- Gig economy models
- Legal and Human Resource
- Other corporate leadership (division heads, EVPs, SVPs or functional unit leaders)
In addition to expanding skillsets, The Board Diversity Action Alliance will support boards in expanding their prospecting networks by encouraging search partners to expand candidate databases.
Accountability & Progress
Reporting on diversity progress requires data
Investors and other stakeholders have increased their focus on diversity data, not just at the board level, but also for the workforce. ISS and a number of investment funds, including Calvert and SSGA, are pressing for greater disclosure. In addition, New York City has made a recent push for companies to disclose EEO-1 employee diversity data.
The Board Diversity Action Alliance seeks to drive the conversation around potential disclosure requirements by helping to establish general criteria that companies can voluntarily adopt to track and report DEI progress. Additionally, to aid the effort, Teneo is developing and launching a national DEI benchmark to understand, measure and assess progress over time. The benchmark will provide both normative data as well as limited industry data on Board diversity and structure, corporate diversity, as well as the impact of DEI on corporate leadership and culture.