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- Deloitte Australia urges Australian boards to look further afield when searching for new executives and directors in a new report put together with the 30% Club Australia
- The report questioned whether relying on traditional ex-CEO and CEO appointments or on directors from personal networks was setting boards up for future success
- The report says a new operating environment in the aftermath of the pandemic requires a greater diversity of thinking to better respond to future risks and maximise opportunities
- Deloitte and the 30% Club say many directors feel times of crisis could be precisely when new talent is needed, though some directors may still favour stability over change
- The report urge Chairs, specifically, to be the spearheads of greater diversity on their boards
Deloitte Australia has urged Australian boards to look further afield when searching for new executives and directors in a new report put together with the 30% Club Australia.
The report posed the question to Australian boards whether they were setting themselves up for success in a post-pandemic world by relying on more traditional ex-CEO and CFO appointments or on directors drawn from their own personal networks when looking to fill new roles.
While boards typically performed well in terms of managing the global pandemic, three-quarters of directors surveyed by Deloitte and the 30% Club said the broader operating environment could be better managed in the future through a more diverse set of views around the board table.
The 30% Club is an organisation dedicated to increasing gender diversity on boards and senior management teams.
Deloitte Australia Chair Tom Imbesi said the COVID-19 pandemic brought with it challenges that “irrevocably” impacted many aspects of company governance.
“This report outlines several specific and actionable measures for chairs to become true advocates for diversity, resulting in better board decisions,” he said.
“We also highlight great examples of leaders who bravely champion diversity, making strategic choices and patiently searching for new board talent to augment the skills mix of experienced board members.”
The report said a new operating environment in the aftermath of the pandemic required a greater diversity of thinking to better respond to future risks and maximise opportunities.
Deloitte explained that strong governance foundations need to be combined with broader sets of skills and capabilities for future-fit boards. This means boards need to look further afield when appointing new directors.
“The most forward-thinking of the directors interviewed are focused on climate, customers, the broader community, digital transformation and the workforce, and are prepared to look for potential candidates who can bring those perspectives and experiences to the board table,” Deloitte said.
The report acknowledged a concern among some directors that introducing new and different talent in times of crisis could be a problem when stability is so crucial. Inversely, other directors suggested moments of crisis were precisely when new talent was required.
In any case, the Deloitte/30% Club report encouraged boards to open up discussions to scope the future context, invite independent reviewers to assess existing capabilities, skills, and traits, and broaden the brief for missing capabilities and skills while looking in new fields.
The report also urged Chairs, specifically, to be the spearheads of greater diversity on their boards.
Telstra Chair John Mullen, commenting on the report, encouraged boards to “take a chance and see it through”.
“Diversity means a lot more than gender. Diversity means diversity of thought, diversity of experience, and diversity of approach, irrespective of your gender. Don’t shut down something because you feel slightly uncomfortable, or it isn’t quite working out,” Mr Mullen said.
“You want somebody who’s their own master, who speaks up most vigorously to defend their point of view.
“You can look at people who would never even get considered for a major board role — and because it’s three out of ten, if you make a mistake, is it the end of the world?”
