Organisations need good governance to stay on track and fulfil their purpose. Good governance involves a group of people, such as a board of directors or trustees, providing strategic oversight and ensuring that an organisation makes sensible strategic decisions and operates ethically. Such governance structures function effectively when they consist of the right people having the right conversations. These are the two key ingredients for successful governance.
In this context, the “right people” means capable individuals with a diversity of knowledge, experience, and mental models. The “right conversations” include a willingness to invest time and effort in thoroughly exploring the matter at hand with fellow directors.
Organisations should therefore be mindful and intentional about the types of people they wish to recruit for their boards, the types of conversations they want to encourage, and the type of governance culture that would be a strategic asset.
This article pulls together some ideas that have been floating around my mind for a few decades and also tackles the relationship between thought diversity and demographic diversity.