Diversity of Thought

We continue to be surprised by the propensity of Chief Executives and New Zealand boards to make appointments from their business and personal contacts, a pool that is, too often, demographically narrow and industry specific.

Enlightened decision makers run a rigorous process, beginning with an in-depth analysis of the skills, competencies and experiences that are required before going to market.  These leaders also recognise the benefits of becoming more diverse.  However, even those with clearly stated objectives to hire more diverse people, still employ those they feel most comfortable with, and who are like them.

“It is too easy to hire more of the same”, explains Kin U, Managing Partner at SIGNIUM Greater China.  “In our personal lives we tend to hang out with people with similar interests and hobbies.  However, in the team at work we need to have people with different styles, different skills and different interests to be truly effective.”

To gain the proven benefits that come from diversity, organisations need to be very clear about the purpose and process of becoming more diverse. Leadership must champion diversity.  Diversity cannot be simply assumed to occur through the introduction of those with different demographics. It is Diversity of Thought that contributes value to an organisation.

This Diversity of Thought, as we in SIGNIUM emphasise, is a critical factor in achieving true balance at a management or governance level. A balanced team with different demographics, base of experience, industry knowledge and personal values creates a climate in which diversity of thought can flourish.

The challenge, as we have identified, is that assembling a balanced team calls for adopting new methods.  The easiest and quickest way of injecting Diversity of Thought into an organisation is to introduce this diversity when recruiting new senior leaders or directors.  This demands business leaders engage in recruitment processes with a refreshed approach to defining the role’s competencies, behavioural expectations, demographics and experience.  To remove any cognitive bias in the process and identify Diversity of Thought beyond demographic attributes, real value comes from business leaders seeking external advice with the appointment process.

Independent advisors can also infuse insight into the way organisations can change mindsets and practices, implement new decision-making techniques and bring agile thinking processes to fully extract the benefits of a diverse team and promote creative thinking.  Most importantly, for Diversity of Thought to thrive, conversations at management meetings or at the board table must be where everyone can freely air their thoughts in an authentic, constructive and respected manner.

SIGNIUM has a proven successful track record and expertise in bringing objectivity to the appointment of senior executives and directors of both large corporates and SMEs. We have demonstrated our ability to ‘think outside the square’ and focus on the primary personal attributes that are required. These are more often found in up-and-coming executives and directors, i.e. those who can enrich the organisation and complement the wisdom of the more experienced executives and Directors.