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- Herausgeber: John Wiley & Sons
- Sprache: Englisch
Empower your journey to the corporate boardroom with practical guidance and real-life examples.
The Boardroom Journey: Practical Guidance for Women to Secure a Seat Table by Dr. Keith D. Dorsey offers a clear, actionable roadmap for women at any career stage to strategically build a path to the boardroom. The evidence-based strategies and inspiring success stories presented throughout this book have been gleaned from interviews with hundreds of current corporate board members. Specific tactics are outlined for early career professionals shaping their leadership journey, mid-career professionals navigating their way to the C-suite, and current and retired C-suite executives actively seeking their first (or next) corporate board seat. This book helps readers navigate the nuances of these journeys by moving from theoretical insights to actionable advice.
The Boardroom Journey is an invaluable guide that helps women assess their personal motivations for career growth and board service, identify suitable boards, and enhance their board readiness through assessment tools and exercises. The book also offers strategies for building and leveraging a network of mentors, sponsors, and allies to gain support and boost confidence throughout the board journey.
Inside the book:
- Discover strategies to effectively prepare for board service
- Gain insights on how to present and differentiate oneself via five types of capital
- Learn how to build and leverage a support team
The Boardroom Journey is perfect for anyone aspiring to bring their unique perspective to corporate governance. The evidence-based strategies offered here give readers a proven method for charting an intentional path to executive service and securing a seat at the corporate boardroom table.
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Seitenzahl: 419
Veröffentlichungsjahr: 2025
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Table of Contents
COVER
TABLE OF CONTENTS
TITLE PAGE
COPYRIGHT
DEDICATION
FOREWORD
PREFACE
ABOUT THIS BOOK
CHAPTER ONE: INTRODUCTION
THE PUSH TO IMPROVE GOVERNANCE
THE CASE FOR GENDER AND ETHNIC DIVERSITY ON CORPORATE BOARDS
BOARD DIVERSITY BY THE NUMBERS
MY STORY
MEET THE WOMEN
HOW THIS BOOK IS ORGANIZED
Notes
PART I: SURVEYING THE LANDSCAPE
CHAPTER TWO: WELCOME TO THE BOARDROOM
WHAT IS A BOARD OF DIRECTORS?
WHAT BOARDS DO
TYPES OF BOARDS
TYPES OF DIRECTORS
WHERE THEIR STORIES BEGIN
ACTION ITEMS
SUMMARY
Notes
CHAPTER THREE: FIND YOUR WHY
THE THEORY AND NATURE OF WHY
HOW TO FIND YOUR WHY
THE WHYS OF OUR FOUR PATHMAKERS
ACTION ITEMS
SUMMARY
NOTES
CHAPTER FOUR: SELECT A DESTINATION
THE IMPORTANCE OF THE DESTINATION
REVIEWING THE OPTIONS
A GENERAL PATHWAY
FOUR DESTINATIONS
ACTION ITEMS
SUMMARY
NOTES
CHAPTER FIVE: GAUGE YOUR BOARD FITNESS
THE IMPORTANCE OF FITNESS
MEASURING BOARD FITNESS
SOME BASIC FITNESS GUIDELINES
TWO FITNESS EVALUATIONS
ACTION ITEMS
SUMMARY
NOTES
PART II: GEARING UP FOR THE TREK
CHAPTER SIX: CULTURAL CAPITAL
WHAT IS CULTURAL CAPITAL?
THE ORIGINS OF CULTURAL CAPITAL
THE IMPACT OF CULTURAL CAPITAL
CULTURAL CAPITAL AND BOARD DIVERSITY
YOUR CULTURAL CAPITAL DEVELOPMENT PLAN
TWO CASES OF CULTURAL CAPITAL
ACTION ITEMS
SUMMARY
NOTES
CHAPTER SEVEN: DIRECTOR CAPITAL
WHAT IS DIRECTOR CAPITAL?
IMPACT OF DIRECTOR CAPITAL ON YOUR BOARD SEARCH
ASSESSING AND DEVELOPING DIRECTOR CAPITAL
Scoring
DEVELOPMENT
CASE STUDIES
ACTION ITEMS
SUMMARY
CHAPTER EIGHT: HUMAN CAPITAL
THE MAKEUP OF HUMAN CAPITAL
IMPACT OF DIRECTOR HUMAN CAPITAL ON GOVERNANCE
ASSESSING YOUR HUMAN CAPITAL
YOUR HUMAN CAPITAL DEVELOPMENT PLAN
CASE STUDIES
ACTION ITEMS
SUMMARY
CHAPTER NINE: SOCIAL CAPITAL
WHY SOCIAL CAPITAL IS SO POWERFUL
HOW RELATIONSHIPS AFFECT YOUR BOARD SEARCH
EVALUATING YOUR SOCIAL CAPITAL
YOUR SOCIAL CAPITAL DEVELOPMENT PLAN
CASE STUDIES
ACTION ITEMS
SUMMARY
NOTES
CHAPTER TEN: COMMITMENT CAPITAL
THE MAKEUP OF COMMITMENT CAPITAL
EVALUATING YOUR COMMITMENT CAPITAL
INCREASING YOUR COMMITMENT CAPITAL
CASE STUDIES
ACTION ITEMS
SUMMARY
NOTES
CHAPTER ELEVEN: LEVERAGING YOUR CAPITAL PORTFOLIO
IMPORTANCE OF LEVERAGING AND SHOWCASING YOUR ABILITIES
THE BOARD READINESS STORY
SHOWCASING YOUR CAPITAL PORTFOLIO
HOW TWO WOMEN LEVERAGED THEIR CAPITAL
ACTION ITEMS
SUMMARY
PART III: NAVIGATING THE JOURNEY
CHAPTER TWELVE: NEUTRALIZING NAYSAYERS
YOUR INNER IMPOSTER
YOUR INNER SUPERSTAR
YOUR HATERS
YOUR FRENEMIES
CASE STUDIES
ACTION ITEMS
SUMMARY
NOTES
CHAPTER THIRTEEN: ASSEMBLING YOUR SUPPORT TEAM
ROLE MODELS
MENTORS
ALLIES
SPONSORS
ACCOUNTABILITY PARTNERS
CASE STUDIES
ACTION ITEMS
SUMMARY
CHAPTER FOURTEEN: FAIL‐PROOFING YOUR JOURNEY
THE NEED FOR FAIL‐PROOFING
PICKING YOUR BATTLES
SET AND MONITOR YOUR PACE
CASE STUDIES
ACTION ITEMS
SUMMARY
NOTE
CHAPTER FIFTEEN: CONCLUSION
WHAT'S NEXT
HELPFUL RESOURCES
THE ONE THING TO DO NOW
WHERE THEY ARE NOW
SUMMARY
INDEX
END USER LICENSE AGREEMENT
List of Tables
Chapter 1
Table 1.1 Fortune 500 Board Seats by Gender and Ethnicity.
Chapter 2
Table 2.1 Features and Needs of Boards of Directors.
Chapter 8
Table 8.1 Human Capital Self‐Assessment.
Table 8.2 Human Capital Competency Percent Scores.
Chapter 9
Table 9.1 Relationship Action by Relationship Planning for Aligned Contacts...
Chapter 10
Table 10.1 Measuring Commitment Capital.
Table 10.2 Diagnosing Commitment Capital.
List of Illustrations
Chapter 4
Figure 4.1 Organizational Life Cycle.
Chapter 5
Figure 5.1 Determining Next Steps.
Chapter 9
Figure 9.1 Possible Relationship Actions.
Chapter 10
Figure 10.1 Vroom's Expectancy Theory.
Figure 10.2 Commitment Capital Formula.
Chapter 14
Figure 14.1 Questions for Stakeholders When Evaluating a Glass Cliff Opportu...
Guide
COVER
TABLE OF CONTENTS
TITLE PAGE
COPYRIGHT
DEDICATION
FOREWORD
PREFACE
ABOUT THIS BOOK
BEGIN READING
INDEX
END USER LICENSE AGREEMENT
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THE BOARDROOM JOURNEY
PRACTICAL GUIDANCE FOR WOMEN TO SECURE A SEAT AT THE TABLE
DR. KEITH D. DORSEY
Copyright © 2025 by Keith D. Dorsey. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per‐copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750‐8400, fax (978) 750‐4470, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748‐6011, fax (201) 748‐6008, or online at http://www.wiley.com/go/permission.
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Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Further, readers should be aware that websites listed in this work may have changed or disappeared between when this work was written and when it is read. Neither the publisher nor authors shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
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Library of Congress Cataloging‐in‐Publication Data is Available:
ISBN 9781394331789 (Cloth)
ISBN 9781394331796 (ePub)
ISBN 9781394331802 (ePDF)
Cover Design: Jon Boylan
Cover Image: © Dabarti/Adobe Stock
Author Photo: Courtesy of the author
To early career women like Lauren, who take bold first steps to shape the future of business: dream big and start now.
To mid‐career women like Denise, who balance ambition and resilience to carve their unique paths: embrace the journey and grow stronger with each step.
To late‐career women like Michelle, whose expertise and determination inspire and transform boardrooms: know that your contributions leave a lasting impact.
To post‐career women like Sharon, whose legacy empowers the next generation: pass the torch, and let your wisdom empower those who lead.
To the mentors, sponsors, and allies standing beside them in solidarity, championing that diversity and meritocracy can coexist: united in purpose, we drive excellence together.
To the organizations and networks dedicated to helping women secure board seats: keep driving meaningful change in corporate leadership and governance—our journey continues.
To all: let’s move forward together on this inspiring path.
FOREWORD
Embracing diversity and inclusion or delivering strong business performance is not a choice. You can and should have both. The cultural conversation right now is largely ignoring the most obvious point: two things can be true. In a global economy, creating a product or service that resonates with the largest possible base of consumers is an absolute imperative.
The most effective approach for a business to connect with the community it serves is to have its workforce and board of directors reflect its consumers. Delighting the community becomes part of a company's ethos when it lives and breathes the same wants, needs, and desires.
At e.l.f. Beauty, our team is 74% women, 76% Gen Z/millennials, and 44% diverse, largely mirroring our consumers. We believe this gives us a competitive advantage in our speed and quality of decision‐making.
Leaders, especially at the board of directors or C‐suite levels, condition and reinforce the muscle to understand where the community is and what it is thinking. They not only set the tone but also it's their own perspectives that set the strategy for the future. Life lessons can be the greatest asset in that blueprint. Building governance on this sets up a business to be agile, spot opportunity, and enhance credibility and connection its community.
Growing up in suburban Washington, DC, I had the invaluable experience of helping my immigrant family run our motel business. That taught me the importance of treating people with respect and shaped my framework for approaching business. At e.l.f. Beauty, we believe in the power of inclusivity and stand by the notion that having top talent and unique voices make us stronger in every way.
The relationship between being purpose‐led and results‐driven is complementary, not contradictory. Businesses and boards have a tremendous opportunity to reap the benefits of diversity of thought, which have been left on the table for years. If, as business leaders, our goal is to maximize returns for shareholders, we must take seriously our responsibility to have a best‐in‐class brain trust surrounding us.
At e.l.f., we've never had a DEI department, targets, or quotas. We haven't needed them. Positivity, inclusivity, and accessibility are the principles on which we built the company and have seamlessly woven through the entire fabric of our organization. It is who we are, what we are all about and what shapes our highly engaged workplace environment, including our board.
Strong boards shape what's next. They drive innovation, growth, and expansion, and, hopefully, long‐term success. That's the equation for productive financial performance. The people who sit in these highest seats of power should be there because they have incredible expertise and experience so they can navigate opportunities and challenges with clear, steady, and informed guidance. An inclusive approach, in my opinion, is the most effective way to build a board that leads to improved outcomes and reduced risk.
Since taking e.l.f. public in 2016, I have been very intentional in finding complementary talents to enhance the future of a company with incredible whitespace ahead of it. The knowledge doesn't come from one sector, one geography, one gender, or one generation. A diverse team encourages every individual to leverage their strengths and contribute to a sum that is greater than its parts. The power is in the collective.
Getting to this point, where e.l.f.'s board of directors is 78% women and 44% diverse, wasn't hard, but required purposeful action. I consider myself lucky to have a highly inclusive network that represents the leading voices in business. Not every CEO, and certainly not every potential board member, has that lever to pull.
We must all help carve a path for the next generation of board members that are influenced by what they know and how they learned it versus who or where they learned it from. Board readiness is an art and science that not enough people have access to. I applaud what Keith advocates in The Boardroom Journey to equip women with the tools they need to gain exposure and skills—especially those concerning governance and competence in business continuity that grow a business to the next level. Let's be honest: that's what we all want.
In 2025, we shouldn't be starting board journeys from scratch. A guide like this book provides a road map so we create a broad and diverse pool of exceptional director candidates to fuel the best and brightest companies. I encourage all the leaders of today and tomorrow to prioritize normalized board diversity and development, improved market understanding and decisions, productive conflict, enhanced management accountability, and, perhaps most important, board participation. Your value and your influence are directly related to being an active participant in the conversation.
Each one of us has a responsibility to our investors, teams, and customers to strengthen our companies’ performance and the communities around us. By earning a seat at the boardroom table, your potential impacts have the possibility of outsized impact.
—Tarang Amin
PREFACE
Every great journey starts with a single step.
—Maya Angelou
In the early stages of conducting research for my doctoral dissertation, I found myself continually distracted. I realize this is not uncommon for doctoral students. But rather than reading what I sat down to read, I repeatedly found myself engrossed in articles, books, and studies related to the composition and dynamics of corporate boards. I came to realize that this behavior wasn't merely a distraction. Instead, it reflected a deeper passion and an urgent issue I felt compelled to address.
The more I delved into the subject, the more apparent the disparities and challenges faced by women and other underrepresented groups in boardrooms became. I vividly recall one particular evening when I was supposed to be researching my original dissertation topic. Instead, I was reading a compelling study on the effects of gender diversity on corporate governance. The insights were too powerful to ignore, and I spent hours jotting down notes and brainstorming ways to address these issues comprehensively. The consistent pull toward this topic led me to realize that my original dissertation topic could wait, but the need for actionable guidance on increasing boardroom diversity could not. I switched my dissertation topic, and the idea for this book soon began to take shape.
During my own evolution, a complex backdrop of divisiveness and upheaval surrounding diversity, equity, and inclusion also was unfolding. We moved from an era of negligible corporate board diversity to a period marred by corporate scandals, social unrest, and consequent demands for diversity and inclusion. Movements, organizations, and legislative acts were launched. Real improvement followed. Diversity initiatives shone the light on the incredible talent that exists around the world, and boards began learning how to find and recruit this talent.
Alongside these changes, other movements and organizations have dedicated themselves to increasing women's representation in executive roles. Lean In, launched in 2013 by Sheryl Sandberg, ignites conversations about women's leadership and highlights the gender gap in corporate leadership. Organizations like the Athena Alliance work to equip women leaders through executive coaching, mentorship, and networking opportunities. Chief, an exclusive network designed for women in leadership roles, offers a community where female executives can support one another while also preparing for corporate board roles.
e.l.f. Beauty launched its bold campaign Change the Boardgame in May 2024, which grabbed attention with its memorable slogan “So many Dicks, so few of everyone else.” Pointing out that public corporate boards in the United States have more men named Dick (e.g., Richard, Rich, Rick) than entire groups of underrepresented people, this cheeky but powerful campaign calls for direct action in diversifying boards and achieving gender equity in leadership roles.
These are important contributions and, yet, we have turned another corner: as I finished this manuscript in 2024, a seismic backlash emerged to question the goals and methods of diversity initiatives, slowing the pace of our progress.
This tumultuous backdrop only strengthened my resolve to contribute meaningfully to the conversation by revealing and emphasizing the fact that meritocracy and diversity can and do coexist. For example, the many individuals I interviewed in this book have had incredible careers and have provided equally impressive value to their boards. To this end, I offer the concept of Optimal DiversityTM, which refers to ensuring that observable/demographic diversity is coupled with diversity of thought. This approach emphasizes not only what we see but also the diverse experiences, perspectives, and cognitive approaches that individuals bring to the table. It is only by assembling an optimally diverse board that we can confidently say we are serving our boards, organizations, communities, and various stakeholders to our best capabilities.
My key objective through this book is to equip women with the tools they need to be seen and known as they work toward securing corporate board seats and, in doing so, dispel the myth that there aren't enough qualified women to serve on corporate boards. First, I demystify the boardroom and the process of securing a seat at the corporate table by offering a proactive, strategic road map for women at every career stage. Insights, strategies, actionable steps, and real‐life examples are provided to illuminate readers' journeys.
Second, I want to spark a broader conversation about Optimal Diversity, revealing that meritocracy and diversity are not opposing aims but instead are symbiotic and share a common goal. I do this to help close the gaps created by well‐intentioned but often superficial boardroom diversity initiatives, such as diversity quotas or one‐off training programs that focus on meeting immediate targets but frequently result in tokenism, where diversity is pursued for appearance's sake rather than for its intrinsic competitive value.
Producing this manuscript required extensive and meticulous research. I conducted countless conversations, panel discussions, and interviews with female executives, board members, and industry experts around the globe to gather firsthand insights and connect the many dots that make up the puzzle of Optimal Diversity. These conversations were supplemented by a thorough review of existing literature and research on board diversity, governance, and leadership. My approach was holistic, integrating quantitative and qualitative data to provide a breadth and depth of perspectives. Producing this manuscript involved not just reading, thinking, and writing but also iterative feedback sessions with my peers, mentors, and a dedicated editorial team.
This book would not have been possible without the support and involvement of many individuals. Thanks go to my dissertation chair, Dr. Corinne Hyde, who first gave me the vision that I could turn my passion into a book, and to my dissertation committee member, Dr. Sharoni Little, who echoed that such a book was needed. I am indebted to the hundreds of existing and aspiring board members who shared their insights through formal interviews and informal conversations, and specifically to the women who generously shared their stories of struggle and triumph in the making of this book. Your stories have been a constant source of inspiration and motivation. I will never forget a conversation with one senior executive who, despite her achievements, expressed doubts about her readiness for board service. Her story reinforced the need for this book and reminded me of the importance of self‐belief and perseverance.
Thanks also go to my colleagues, family, and friends, who gave me grace when I missed many events and one‐on‐one time in service of writing this book. Their words of encouragement sustained me as I spent countless days and nights reviewing and revising chapters, navigating moments of doubt that eventually gave way to the satisfaction of seeing the manuscript take shape. In this process, editorial support from Dr. Karen Koepp was instrumental in bringing this book to fruition in my uniquely “bilingual” dialect of executive and academic speech. Her dialogue, insights, and feedback, and unwavering belief in the project, helped me balance reflection with progress.
For readers, I suggest approaching this book not as a one‐time read, but as a guide to be revisited throughout your career. Each chapter is designed to provide insights and action steps that can be worked through and implemented for your development. The effort you dedicate to these exercises will have a powerful effect on your search. Use this book as a resource to plan your path, reflect on your progress, and stay motivated. Whether you are just starting out, are already on your way to board service, or are on your path to gain your next seat, this book offers something for every stage of your journey.
In conclusion, the landscape of boardroom diversity has seen some progress, but there is still a long way to go. We have moved from a time when boardrooms were almost exclusively male to an era where diversity is at least part of the conversation. Looking ahead, I envision a future when optimally diverse boards are the norm. This book is a step and a call to action toward that future, challenging you to dream bigger, to push through barriers, and to claim your place at the table.
To Your Journey,
Dr. Keith D. Dorsey
ABOUT THIS BOOK
This book is a comprehensive guide designed to empower women at every career stage to secure a seat at the corporate boardroom table. It navigates the complex journey of board service with practical, actionable advice and real‐life examples. Throughout this book, we follow four women on their journey to the boardroom. Each woman represents a different life and career stage; consequently, readers will be able to find examples and inspiration from their stories.
The book begins by outlining the urgent need for greater boardroom diversity and setting the stage for the journey ahead. In Part I, Surveying the Landscape, readers are introduced to the corporate board environment, its significance, and the current state of diversity. Readers also learn how to identify their personal motivations for seeking board service and define their board service goals. The final chapter in this section offers tools for self‐assessment so readers can determine their readiness for board roles.
In Part II, Gearing Up for the Trek, readers are introduced to five types of capital they need to develop and leverage to secure a seat at the corporate board table. These capitals include cultural capital, the strength and drive we acquire during our formative years as a result of our family, friends, experiences, successes, and challenges; director capital, the personality traits and working style, training, experience, and knowledge specific to filling the role of a director on the board; human capital, the sum of our education, knowledge, skills, personal attributes, and experience to generate a given set of outcomes; social capital, the sum of structural, cognitive, and relational resources available to us via our social networks; and Commitment Capital™, the combination of human, social, and other resources we use to execute and complete a specific task. The final chapter in this section discusses how to integrate the various forms of capital to create a compelling board readiness story and candidacy.
In Part III, Navigating the Journey, readers are encouraged to optimize their chances of success in reaching the boardroom by employing strategies for overcoming opposition and skepticism as well as assembling a support team of mentors, sponsors, and allies. The final chapter in this section describes how readers can fail‐proof their journeys to bolster their resilience and long‐term success.
The book concludes with a look ahead at what's next for readers, a review of various resources that can help them along the way, and a return to our four protagonists to find out where they are now.
By addressing both observable demographic diversity and the often hidden sources of diversity within all board members, this book advocates for Optimal Diversity as a means to enhance corporate governance and performance.
CHAPTER ONEINTRODUCTION
To get something you never had, you have to do something you never did.
—Denzel Washington, University of Pennsylvania Commencement Address, May 16, 2011
It was an exciting time, indeed. The stock market was booming, and nearly everyone from the working poor to the well‐heeled were in it to win it. Shareholders of all stripes piled on as initial public offerings were released. Stock prices soared, money flowed, and times were good.
But like most good things, it wasn't to last. Less than a year later, prices started dropping. One after another, investors were forced to liquidate their positions, triggering a spate of bankruptcies. As similar bubbles started popping around the world, share prices continued to fall. The wealth of many was decimated and significant global economic damage was evident.
Then came the ugly truth. The company that had started it all (and the companies that followed suit) had defrauded the public and their shareholders by misrepresenting their prospects, inflating their stock prices, and encouraging speculative trading. It was corporate scandal writ large, all made possible by insufficient governance.
Does this story sound familiar? Probably. Can you name the company in question? Probably not.
The reason it is difficult to recognize this as England's 1720 South Sea Bubble1 (named after the public‐private partnership titled the South Sea Company) is because problems of inadequate corporate management and governance are far too common. The subsequent three hundred years have been riddled with such events, including corporate accounting scandals; national financial crises; environmental disasters; and ethical, social, and health care crises. Many of these outcomes can be traced back to mismanagement, unethical behavior, and excessive risk‐taking, resulting in severe impacts for the organizations in question, in addition to serious economic and social consequences for organizational stakeholders and the public. The quest to prevent and mitigate such events has heightened efforts to improve how we regulate, manage, and oversee the corporations on which we and our global economy rely.
THE PUSH TO IMPROVE GOVERNANCE
The mandate is simple: corporate governance must improve to ensure effective and responsible business operation, risk mitigation, business continuity, and success. That is how boards protect shareholders' interests.
Protection of shareholder interests.
Strong corporate governance guarantees that management behaves in the shareholders' best interests and gives them access to information and a say in business decisions. By promoting a more sustainable approach to business and balancing management's objectives with the company's long‐term health, better corporate governance can also aid in the shift in emphasis from short‐term gains to long‐term value generation.
Accountability and appropriate risk‐taking.
Sound corporate governance fosters accountability from organization leaders. Executives and board members are held accountable for their activities by establishing clear procedures for decision‐making and reporting. This kind of accountability aids in the prevention of mismanagement, fraud, and unethical activity. Sound company governance also promotes effective risk identification and management, which lower the possibility of monetary and reputational problems.
Sustainability.
Good corporate governance promotes moral and conscientious business practices, including attention to the social and environmental effects of business operations. Robust governance frameworks also have the potential to foster organizational creativity and flexibility balanced with effective decision‐making procedures and cultural practices that honor the company's original concept. These in turn can support a company's long‐term viability and strengthen the company's competitiveness and brand.
Achieving these aims helps preserve customer and public trust, attract investors, and uphold the organization's role as social actor. These outcomes are critical because the success of any corporation depends on the trust of its stakeholders—including the public and its suppliers, employees, and customers. To further safeguard public interest, corporate governance must hold itself to relevant regulations. Companies who disregard these regulations risk legal repercussions as well as reputational harm.
Furthermore, both institutional and individual investors are more inclined to invest in companies that have sound governance, as such practices improve the company's reputation and help reduce costs. Top talent also tends to gravitate toward employers who value sound governance in the form of transparency, ethical behavior, and responsible decision‐making.
One board member I interviewed as part of my research for this book explained that improving governance was her driving motivation to become an independent director. She shared:
When I dealt with boards, I realized that a lot of board members are detached from business and ecosystem. They're career board members. It's almost like becoming inbred. The way to fight it is to make sure that the other large enterprises take the necessary step to save themselves and have impact on the ecosystem so that we don't end up with only three companies in the world.
THE CASE FOR GENDER AND ETHNIC DIVERSITY ON CORPORATE BOARDS
Although poor governance has a long global history, the push for diversity on boards did not begin in earnest until the early 2000s as corporate scandals and questionable business tactics grew rampant. Psychologist and Stanford professor Philip Zimbardo, who created the 1971 watershed Stanford prison experiment and later produced a range of works examining why good people do bad things observed, “Most of the evil of the world comes about not out of evil motives, but somebody saying ‘get with the program, be a team player,’”2 ultimately resulting in uncritical adherence to group norms. Boards tend to be relatively homogeneous compared to the stakeholders they serve, and researchers suggest that this lack of diversity is the reason for poor corporate governance and missed opportunities. Researchers have found that homogeneous boards lack cognitive diversity and are less likely to promote strategies that differ from historical norms and industry competitors.3 In turn, board diversity is believed to be an antidote to the risk of playing well together that instead turns into the slippery slope of groupthink.
Combined with increased risks such as cybercrime and an accelerating pace of change and industry disruption, boards began turning to “refreshment practices,” meaning strategies boards use to periodically evaluate and update their composition, bringing in new members with relevant skills, expertise, and perspectives to ensure they had the human capital they needed to fulfill their mandates and navigate the complex demands they faced. These pressures led businesses, institutional investors, stock exchange indexes, government leaders, and other policymakers to argue for increased gender and ethnic diversity in the boardroom.
The focus on board diversity has been accompanied by a rash of gender diversity research and a somewhat less vigorous exploration of board diversity based on race and ethnicity.4 These studies have revealed that not only does board diversity make ethical sense5 but also several practical benefits follow an increase of women and people of color on corporate boards6:
Normalizes board diversity and development.
Research suggests that having at least one‐third of the board directors be female creates a critical mass that normalizes diversity.
7
These studies additionally found that such boards are more likely to commit to creating board development practices that enhance the board's operational and strategic control, enhancing organizational performance and innovation.
8
Improves board participation.
Attendance at periodic board meetings is essential because directors carry out their board duties during these meetings. Studies show that women directors have better board meeting attendance, prepare better for meetings, engage more actively, and require more robust discussion compared to their male counterparts.
9
These same studies indicate that male directors' attendance, preparation, and participation improve in response to their female colleagues' behavior, thus improving board decision‐making and performance.
10
Improves market understanding and decisions.
Women and ethnically diverse directors help the board gain a broader understanding of the marketplace, its stakeholders, and complex issues. These fresh perspectives aid in correcting informational biases during problem‐solving, leading to improved decisions, oversight, and organizational bottom lines.
11
Creates productive conflict.
Although more homogeneous boards tend to be more cohesive and have less debate and conflict,
12
sthese debates have a high likelihood of being productive, as women directors have been found to have enhanced collaboration skills, heightened sensitivity toward others, and increased ability to resolve task‐related and interpersonal disagreements.
13
Without conflict negotiation skills on the board, however, heterogeneous boards risk losing their diversity advantage if there is destructive dialogue or an excessive focus on consensus‐building.
14
Enhances management accountability.
Women and people of color are more likely to have encountered discrimination in their careers, potentially heightening their awareness to inequity and other unethical behavior.
15
Accordingly, studies suggest that these directors demand more management accountability, are more challenging monitors of executive teams, and are less apt to excuse financial misreporting, inadequate executive performance, and excessive chief executive pay.
16
Care must be taken, however, to ensure that productive challenge does not turn into over‐monitoring, which builds distrust between management and the board, slows down decision‐making, increases agency costs, and delays the achievement of strategic growth objectives.
17
Many of the directors I speak with deeply understand these benefits. One of these explained to me:
I do spend a lot of time on conservative boards explaining the business value of diversity. I compiled a list of the top 10 studies from the most conservative outlets like Wall Street Journal to show the business benefit of diversity and how companies can make more money. Investors see that this makes sense and, frankly, customers do too. There's a lot more attention to companies that have leadership that lacks diversity, and that will hurt them.
Several noteworthy examples prove this director's point. Accenture, which ranks among the companies with the most diverse boards, stated that its director diversity enables it to incorporate more viewpoints, leading to enhanced global competitiveness. However, Uber faced challenges related to lack of board diversity and inadequate oversight, which critics say contributed to a toxic culture, poor decision‐making, and numerous scandals. Furthermore, the longer board homogeneity is allowed to persist, the more vulnerable the board is to overlooking risks, signposts, and critical moments when executives' decisions need to be challenged rather than simply approved. These benefits reveal that increasing the number of women and people of color on boards simply makes good business sense. So where do we stand today?
BOARD DIVERSITY BY THE NUMBERS
Since the 1990s, researchers studying board composition primarily focused on gender over other diversity categories. Scholars speculated that as board diversity increased, white women would be preferentially selected for sponsorship due the biases of similarity attraction and white male directors being more likely to select women from a similar racial group. Accordingly, ethnic minority women would be the least represented group on corporate boards because of the intersectional multiplying effect of being both female (gender diverse) and ethnically diverse.18
These speculations appear to bear out in the statistics. In Deloitte's 7th edition of their Missing Pieces report,19 which tracks board diversity in America's largest and most prominent public companies, researchers characterized the progress of diversity as “uneven.” They found that in 2022, women and individuals (of all genders) from underrepresented racial and ethnic groups held an unprecedented 44.7% of Fortune 500 board seats (up from 26.7% in 2012). However, women from underrepresented racial and ethnic groups occupied only 7.8% of board seats, and women of all racial and ethnic backgrounds held 30.4% of seats across Fortune 500 companies. Although these are impressive gains over 10 years compared to 3.2% of seats and 16.6% of seats in 2012, respectively, a stark lack of parity remains, given that women comprise 50.5% of the Fortune 500 working population (see Table 1.1). The researchers predict that board diversity for Fortune 500 companies will reach parity with the general population for African American and Asian men and women by 2030 and for women of all ethnic and racial backgrounds by 2040. However, the researchers do not predict ever reaching parity for Latino individuals for the forecasted period (up to 2060).
These statistics suggest that although gender diversity is improving on boards, white women's representation is increasing faster than that of ethnic minority women. Perhaps more shockingly, the 2020 PwC Annual Corporate Directors Survey revealed that 47% of board directors said gender diversity is very important, whereas only 34% of directors said it was important to have racial diversity on their board.20
Table 1.1 Fortune 500 Board Seats by Gender and Ethnicity.
Source: Deloitte (2022).
Demographic
2012
2022
Percentage of Working Population in 2022
All underrepresented racial and ethnic groups
13.3%
22.2%
40.6%
All women
16.6%
30.4%
50.5%
Women from underrepresented racial and ethnic groups
3.2%
7.8%
—
White women and individuals from underrepresented racial and ethnic groups
26.7%
44.7%
—
Becoming a board director myself and noticing the advantages diverse boards had over more homogenous boards motivated me to dedicate my doctoral studies to investigating board composition more deeply. What I learned convinced me that further research and action was needed to understand how the intersection of multiple identities could help reveal the disadvantages ethnic minority women directors accrue and what could be done to broaden the pathway to the boardroom for all women. That is the purpose of this book. But first, I want to share a little more about me.
MY STORY
My board service story traces all the way back to my early childhood in the late 1960s Washington, DC, although few, if any, at that time could have predicted the journey that culminated in writing this book. In my family, a high school diploma was a terminal degree and the career pathway for men was the military. I followed suit and enlisted in the Air Force the summer before my senior year of high school. I left for basic training just weeks after high school graduation. I rose in the ranks as quickly as I could, but my lack of patience for seniority‐based advancement ultimately prompted me to seek a civilian career in business in my early 20s.
I went on to forge a 30‐plus year track record of supporting businesses from small firms to large multinational companies achieve exponential sales growth and shareholder value. I held executive roles in sales and served as a coach and consultant. I specialized in helping businesses navigate significant periods of change by uncovering root causes, crafting strategic growth plans, and attracting, developing, coaching, engaging, and retaining key talent. As of this writing, I am transitioning from managing partner at a global executive search firm to The Boardroom Journey, my own firm dedicated to helping aspiring and existing board members find their next seat via accountability‐based coaching and helping boards achieve optimal outcomes.
My path to board service was far less straightforward—and, if I'm honest, it was accidental. I served on my first board, which was for the Pepperdine University Graziadio Business School, in 2016 but still didn't begin to comprehend the potential opportunities and responsibilities of board service until two years later when I received my first invitation to serve on a private company board. My full‐time role did not permit me to accept the seat, but the seed had been planted.
Only months later, a corporate reorganization dramatically changed the course of my career. Rather than accept another role in the company, I chose early retirement and dove headfirst into governance. I joined the National Association of Corporate Directors (NACD), swiftly completed their Governance Fellowship program, and was among the first 100 members to earn NACD's “Directorship Certified” designation. Additionally, I am a member of the Executive Leadership Council, and a graduate of Santa Clara University's Black Corporate Board Readiness program. As of this writing, I hold board seats at a private technology and third‐party administration company, a major university's business school, a municipality's financial advisory commission, and a well‐known trail association nonprofit. Previously, I served on the board of a firm that provides recruitment process outsourcing and talent acquisition services.
Although I didn't make it back to college until my 40s, I ultimately completed the journey, earning a bachelor's, master's, and finally an actual terminal degree in the form of a Doctor of Education (EdD) in organizational change and leadership from the University of Southern California. By that time, I was passionate about the role boards play in business and was convinced that effective board performance requires careful attention to who is on the board. I dedicated my doctoral dissertation to examining the pathways Black women executives take to secure corporate board seats.
Since then, I write, research, and speak extensively to help create signposts that illuminate and broaden the otherwise tangled pathway to the boardroom. I do this so that those individuals with the fortitude and passion to serve can reach this important destination. This book is my latest contribution to that effort.
As the adage goes, hindsight is 20/20. Given my nontraditional path to board service, I have ample hindsight and a dedication to improving corporate governance by equipping the talented and passionate individuals who can elevate our boards and organizations. By following the pathways of four women of different ages, career stages, backgrounds, and ethnicities, my hope is that you will begin to see how you, too, can chart your own pathway to board service.
MEET THE WOMEN
Although the mindset, strategies, and tactics presented in this book can be useful for wide audiences, this book specifically focuses on women, who are needed now more than ever before on corporate boards. By blending research, practical tips, and compelling stories, this book provides the information, inspiration, and practical techniques for securing board member positions. Throughout the book, we will follow the stories of four women: Lauren, 25; Denise, 40; Michele, 55; and Sharon, 62. The stories of these women were inspired by a variety of talented professionals and board members I have been fortunate to meet in my career, research, and board service journey. However, any similarity to actual persons, living or dead, is purely coincidental.
Lauren
is an Asian American 25‐year‐old single college graduate. She grew up in the mid‐Atlantic United States and attended a public state university. She was intrigued by her business classes and knew since her junior year of college that she wanted to pursue a career in sales. This fell a bit outside her parents' hopes for her to be in medicine, as Lauren's mom is a pharmaceutical sales representative for a major pharmaceutical firm and her dad is a physician. Lauren's career inspiration was sparked by her dad's oldest brother, a chief financial officer who serves on several boards. She had always been intrigued by the stories he would casually share about flying here or there for board meetings. Lauren accepted an entry‐level sales position for a Fortune 1,000 company at age 22 and was tapped for a middle management position only three years later due to her sales prowess, willingness to help colleagues, and her selfless leadership on the team. She made certain that those around her were as successful as she was. When she was tapped for her first management role, her uncle started advising her about the things she should consider in shaping her career. Lauren found a willing mentor in her uncle, as his own children are in the medical and legal professions. Lauren's uncle took her under his wing and is now helping her craft her career to position herself for a board position.
Denise
is a Latina 40‐year‐old married mother of two teenagers. She grew up in Texas and earned her bachelor's at a public state university before earning a law degree at age 25. She completed two years at a small law firm specializing on energy and environmental law, and then took four years off to have her children. At age 31, she joined a boutique firm dedicated to environmental, social, and governance (ESG) consulting in the energy sector. She moved up the ranks from consultant to strategic advisor and was awarded a partner position at age 39. She never considered board service until she was asked to join the board of a prominent gymnastics not‐for‐profit organization due to her 13‐year‐old daughter's participation in competitive gymnastics.
Michele
is a married 55‐year‐old African American empty nester. She has one child in college and one who recently graduated. Michele grew up in the Bay Area and earned her bachelor of business administration at an Ivy League institution before being hired into the management training track at a Fortune 500 company. She gained a breadth of experience and business knowledge over her four years there thanks to the multiple six‐ to nine‐month cross‐functional rotations she completed. She then earned an Ivy League master of business administration before joining a Big 4 consulting firm where she gained extensive global experience focused on IT transformation. After four years, she returned to the Bay Area where she joined the ranks of various Fortune 500 tech firms as she moved through progressive leadership roles, beginning with manager of IT, then director, then vice president, and senior vice president. For the past five years, she has held the executive vice president of technology role at a Fortune 500 tech company. Board service didn't cross her mind until two of her C‐suite colleagues secured board seats. This intrigued her, but she filed it under “things to do when I have time.” Two events soon catalyzed her entry into the boardroom: the signing of California Senate Bill 826 in 2018, which instituted board gender diversity legislation, and the social unrest of summer 2020. The groundswell for gender and racial equity that followed led to Michele being tapped for a board seat.
Sharon
is a divorced 62‐year‐old white mother of three children. Sharon grew up in Michigan and earned her bachelor of science in electrical engineering at age 22 from a public state university. She worked for five years at an automotive manufacturer before becoming a stay‐at‐home mom. When she divorced at age 37, staying home with her children was no longer viable and she joined the ranks of her father's $45 million original equipment manufacturer family‐owned business. She gained a breadth and depth of experience as she rotated throughout the company and took over the chief executive role at age 50 when her father stepped down. After 12 years, she retired, handing the chief executive role to her 50‐year‐old brother. Although she had served on the internal board during her time as chief executive, she had never served on any other board, nor had she even thought about it until she realized she had few plans for her retirement besides some vague intentions to “spend some time with the grandkids” and “read that book everyone is talking about.”
In this book, we will follow these women as they survey the corporate board landscape, assess and grow the competencies they need to secure a board seat, and manage themselves and their mindsets through the arduous journey ahead. Each of these women are beginning at a different starting point, yet each has value to add and the potential to secure a seat. Their journeys will be different in their length and details. However, all will face challenges, and all will need careful self‐reflection, planning, and self‐management to navigate these challenges. My hope is that you can see aspects of yourself in their stories, learn with them and through them, and enjoy the journey along the way.
HOW THIS BOOK IS ORGANIZED
This book guides you through the process of finding your route to meaningful board service. First, we get oriented to the board landscape and the benefits of holding a board position. Then, we learn the process of self‐evaluation and mobilization for the journey. Finally, we gain tools and tactics for managing ourselves along the way in order to achieve the best possible board service results. In each chapter, we also revisit our protagonists to see how they are navigating each step of the journey and gain practical action steps to implement on the journey.
Part I
: Surveying the Landscape.
We begin in
Chapter 2
