Want Peak Performance? Put More Woman on Boards

      Organizational performance is more scrutinized than ever.  According to the National Association of Corporate Directors, companies with diverse boards have broader market vision and better corporate reputations.  A research report published in Corporate Governance sites several positive results associate with woman on boards, including improved financial performance, improved governance, greater board independence and stronger commitment to social responsibility.   The report goes on to say “Diversity in the boardroom isn’t an egalitarian issue; it is a performance issue” and presents irrefutable data showing that companies female directors outperform those with all-male boards by more than six points.  The report presents data showing that companies with three or more female board members generated an average RoE of 16%, well above the 9% generate by all male boards.  When looking at the data from a Return on Sales perspective, diverse boards generated a 17% return vs. a 10% for all male boards.  Perhaps most important, diverse boards generated a 10% Return on Capital Invested, more than double the 4.7% generated by all male boards. Incredible!

Given the overwhelming data, we wonder what the hold-up is?  We emplore companies everywhere to implement diversity policies so society can benefit from the value created by diversity at the board level.