Heikki Otsolampi, head of Global Client Development at Alumni, examines the growing need to diversify the profiles and skill sets of NEDs given the ongoing corporate climate of digital disruption and geopolitical instability.
“The non-executive directors of the moment have to do more than ensure compliance and drive the bottom line…A modern board member is beginning to look more like a modern-day renaissance genius than a one-dimensional business professional.”
Diverse, fresh perspectives are critical for building a more resilient and sustainable board, particularly in the midst of a corporate landscape marked by technological changes, economic unpredictability, and global political turmoil.
Research into board composition of FTSE500 companies shows that just 2.3% of board members have held positions and expertise outside of CEO, CFO or Company Secretary; at just 81 people out of more than 4800 executives, this staggeringly low proportion indicates a distinct lack of diverse board profiles.
Otsolampi explains why the conventional non-executive profile must evolve, stressing the need for a more comprehensive approach to diversity metrics, paired with a Chair who actively works to dispel groupthink and ensure that each member of the board has a voice.
Boards must embrace a wider range of skill sets to navigate the onslaught of change disrupting modern business. The article investigates the importance of HR representation, digital strategists, foreign affairs specialists, and sustainability leaders, showing how varied knowledge bases enable boards to seize opportunities amidst global uncertainty.
This is not to say that a board needs a specialist for every field, but rather that boards need generalists with a strong platform of knowledge and skills. While financial and business acumen remain essential, on-boarding programmes and company training can allow NEDs with diverse specialisms to be brought into the boardroom to create maximum value.
With a plethora of insights from leading professionals and up-to-date studies, Alumni Global’s comprehensive exploration of how boards can foster innovation, curiosity, and dynamic dialogue through more nuanced diversity is an essential read for NEDs.
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About Alumni Global
Alumni Global is a leading international executive search and board recruitment firm, with a broad base of corporate clients and contacts, especially at boardroom level.