By Meryn Zumbo Willetts
Co- authors: Jyoti Sohal-David, COO & Co-founder, Umbrella/Boardiverse Meera Bhatia, SVP Communications & Government Affairs, Scatec
Boardrooms, leadership and executive management teams today, reflect a homogenous landscape that fails to represent Norway’s diverse society. This homogeneity arises from a fixed mindset and a reluctance to venture beyond our established networks.
It’s astonishing to see that in 2023, only 0.2% of leaders amongst Norway’s 50 largest companies have a multicultural background in the private sector, according to PA Consulting. We know that there is a clear correlation between diversity and better financial performance of companies. We know that to ensure a fair and equitable future, diverse perspectives are crucial in shaping business for the better. We know that more diverse companies are better able to attract top talent; increase employee satisfaction, customer orientation and decision making and generally secure their license to operate.
But awareness, talk and intentions need to be turned into actions.
Unfortunately, systemic barriers further compound this issue, creating challenges for individuals with multicultural backgrounds to be recruited at top management. The consequences of the glass ceiling hinder progress and innovation in Norway. This phenomenon not only deprives talented individuals of opportunities but also stifles progress and innovation within organisations themselves.
In the pursuit of maintaining the status quo, a fixed mindset and fear of the unknown hinder the path to diversity today. Norwegians are known for hiring within their networks which limits the exposure to diversity and untapped talent. Overcoming these mental barriers is vital in fostering meaningful change. With lack of role models it becomes challenging for individuals from multicultural backgrounds to find relatable role models. This absence of visible representation can lead to the perception that people from these backgrounds are not capable of excelling in leadership roles.
Systemic barriers within society act as formidable obstacles for individuals with multicultural backgrounds which has contributed to a predominantly homogenous leadership landscape. Traditionally, there have been certain groups who held positions of power and influence, creating an environment where people with diverse backgrounds are being excluded or marginalised.
So how do we bring about that systemic change that is desperately needed to ensure top-notch diverse professionals shape executive management teams and boards? What are the solutions?
In our view actual understanding of what diversity means and entails, clear commitment and strategies driven by the CEO and executive management teams need to be in place.
Clear action plans need to be followed and cascaded throughout the organisation; quota systems and regulations cannot be the reason for implementing the change – they should be viewed as support mechanisms. The willingness to change and act must be based on putting a stop to insular thinking.
Surely, a nation like Norway, not free of global interdependence, cannot really remain competitive, inclusive and a beacon of excellence, by ignoring the make-up of its society and incoming immigrants. If we want to be an attractive nation, we need to walk the talk and not talk in headlines.
Here are some of Boardiverse’s strategies to help your company create systematic change in management and boards:
Conduct regular diversity audits: Regularly review and assess board diversity metrics to track progress and identify areas for improvement. Analyse data on the composition of the board, including gender, ethnicity, and cultural background, and use the insights gained to refine diversity strategies.
Provide board education programs and hold board members accountable: For established board members and C-Suite develop workshops and programs and explore strategies and best practices for fostering an inclusive board culture. Hold board members accountable for advancing diversity and inclusion goals. Consider incorporating diversity metrics into board evaluations and linking board compensation to diversity outcomes to drive meaningful change
Expand the candidate pool: Broaden the recruitment channels to attract a diverse range of candidates. This can include partnering with diversity recruitment agencies focusing on multicultural profiles.
Regularly evaluate and refine diversity efforts: Continuously evaluate the effectiveness of diversity initiatives and make adjustments as needed. Collect and analyse data on board diversity, track progress, and assess the impact of systemic changes on achieving multicultural diversity goals.
Implement board diversity targets: Set specific targets and timelines for increasing multicultural diversity on boards. These targets should be ambitious yet achievable, and progress towards them should be regularly monitored and reported.
If you’d like to learn more about diversifying your board and how Boardiverse can help, get in touch!
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