A Seat at the Table, the biennial report from Executive Women of New Jersey that tracks the representation of women on corporate boards in the state, offered great insights into New Jersey when it was released Wednesday morning.
For instance, women make up 35% or more of the boards of 24 of the state’s 82 eligible companies. That’s a dramatic increase from the first Seat at the Table report in 2013, when only 16% (or one in six) reached that number.
Even more, women made up 50% or more of the board at four companies (Hain Celestial Group, Barnes & Noble, Organon and Co. and Kenvue).
The report did more than just offer numbers; it offered a roadmap for companies who want to increase diversity on their board — and do so at a time when diversity initiatives are being challenged more than ever.
Here are five tips:
1. Companies should refocus on the core corporate value of serving consumers and customers in a diverse marketplace.
Bob Garrett, CEO of Hackensack Meridian Health, put it this way: “I think it’s so important that our workforce, our leadership and our board reflect the communities we serve. New Jersey is a very diverse state. Getting different perspectives is so important on the front lines of healthcare. It helps us connect with patients, with families. It’s hugely important in terms of patient outcomes. It’s important in the boardroom as well.
“As you’re making key investments in the future, you need to make sure that there are diverse voices at the table so that the investments are well-placed. For example, 65 to 70% of healthcare decisions are made by women. If we’re going to be attuned to health care decisions, we really need to have that voice at the table.”
2. Companies should recognize the link between diverse perspectives and the board’s fundamental responsibility to manage risk.
Kathlyn Card Beckles, chief Legal Officer at Verisk, framed this point this way: “There is a famous case of an ice cream company that had a listeria outbreak in its plants — a terrible situation — and it turned out there wasn’t anyone on the board who had direct experience in food safety or the food industry. The court basically said, ‘If you’re an ice cream company, maybe have someone who understands food safety at a deep level.’
“It sounds obvious, but it’s easy to overlook when you’re building a board out of familiar templates — CEOs, CFOs, generalists. That case really underscored for me the importance of matching board expertise to the company’s actual risks. That’s part of why I’m so passionate about looking beyond the traditional CEO box. We have to break out of the box of just looking for talent in this small place. Talent is in many places, because our problems are in many places.”
3. Companies need to build from the bottom up. Remember that diversity at the top comes from a diverse pipeline of candidates.
Susan Hardwick, retired CEO of American Water, describes her approach this way: “I’ve worked very hard to make sure we’re not closing the door to anyone. The candidate pool that is interested in [the energy] industry is just less diverse. We need to figure out a way to encourage more participation by everyone in this industry.
“What is it about the jobs? What is it about the training? What is it about the image of the industry that we need to be focused on to attract more diversity? I think as a leader and as an organization, you have to make sure the door is open and you’re encouraging people to come in, not just accepting the situation the way it is.
4. Companies need to remember that diversity does not “just happen,” it is the outcome of a deliberate process that creates value.
Cid Wilson, president and CEO of the Hispanic Association on Corporate Responsibility, summed it up this way: “I cringe when a CEO says, ‘Can you help me find a qualified board candidate?’ I always push back and say, ‘Tell me what you mean by qualified.’
“Every candidate in their potential pool is qualified by definition. They have earned the competencies to be there. What some of them lack is credibility. Assessing credibility is subjective. And that means there are factors other than competence that influence whether you see someone as a credible candidate. Maybe the two of you like the same sport, or are part of the same religious denomination, or you went to the same university? Maybe the two of you have something else in common that allows you to see in this person as a fit.
“Our position is that corporate leaders must be intentional in seeking out someone who is not just like the people already at the table. They have to recognize that a woman or a person from a historically underrepresented group brings value to the table because their life experiences are different.”
5. Finally, those who aspire to board positions should hone the skills that will make them good candidates. They should also take advantage of the infrastructure built over the past decade by organizations like EWNJ.
Kathlyn Card Beckles suggested this: “First, make sure you’re excellent at what you do right now. Boards are looking for people who bring real expertise. Second, think about the skills and experiences that boards need — audit and financial expertise, technology, cybersecurity, human capital management, regulatory knowledge. Third, network. Let people know you’re interested.
“Organizations like EWNJ can be great connectors. And sometimes you get the first opportunity from a nonprofit board or a smaller private company. That’s still board experience, and it counts. And finally, be open to roles that aren’t exactly what you pictured. The ‘perfect’ board might not be the first one you get, but each experience builds your profile.”
