When the issue of diversity on boards is raised, most Housing Association NEDs acknowledge that they have a long way to go. This is disappointingly quickly followed up by ‘yes but …’ and some form of ‘explanation’. Frankly, the excuses are exhausting, as Lubna Haq explores the barriers to improved diversity in Housing Associations.
FTSE 100 companies are required to have at least one ethnic minority member and 40% women representation. Remarkably, withing the housing sector, the diversity of a Board is not a regulatory requirement so why would any Housing Association Board take it seriously?
Starkly put, there is no perceived consequence to lack of Board diversity, and the research or anecdotal cases alone are clearly not compelling enough. Surely it should be an imperative to show all tenants, customers, and council tax payers that communities are at the heart of all decision making and those that reflect the communities are making the decisions.
We know that 39% of the UK population is made up of white men yet they make up 80% of Board rooms. Therefore, it’s not a stretch to suggest the current system is designed for white men by white men. So, what’s the solution in an action focused way? Intentionality is key. It can be done.
The previous CEO of MTVH, Geeta Nanda is a case in point. When she joined the Board, she was the only “brown face” in the room. When she left earlier this year the board was much more diverse with both a black CEO and a black Chair.
Recruitment specialist companies with a value around diversity will bring this lens to their work. The question is… are most? As clients, you can be challenging and directive. You can insist on diverse shortlists and proof that efforts and practices reflect a desire beyond rhetoric. This means that you don’t approach potential candidates two days before the closing date and then report back that people don’t respond as we have been told has happened.
There are many barriers to why diversity on boards is not better, all of which are relatively easy to address, and there are many quick wins for leadership culminating in significant cultural change. Here are some suggestions:
Starting with the basics can lead to a significant paradigm shift.
- For example, remove the much used and believed notion about a lack of talent. This is simply not true.
- Address the fundamental challenge. Getting all members of housing boards to fully understand the benefits of having a diverse board, such as improved decision-making, increased innovation, and better representation of the communities they serve. Removing blind spots, increases capabilities.
- Review the way recruitment packs are put together and the language used. Don’t rely on the comfort zone of traditional networks and the way things have always been done. You’ll only repeat old outcomes. Unintentional biases in the recruitment process lead to overlooking exceptional NEDs from diverse backgrounds.
- Identify internal talent through assessment and create development support for them to become board members. Grow your own.
- Explore your organisational cultural and systemic barriers. You may unintentionally be making things difficult or discouraging diverse individuals from applying for board positions.
- Housing Associations should actively promote Board roles through education – buddying schemes, shadowing a member, developing content on the basics, demystifying by showing the transferable skills people require.
In addition, if diversity is to be believed in, we need proactivity. For example, we should all encourage five people in our personal networks to apply for NED roles. Diverse Boards is not a Utopian dream. It is all achievable with the right mindset and actions. Want to discuss this further? please contact Lubna Haq at lhaq@nscg.com