The evolution of executive roles and company boards highlights a crucial trend: diversity matters.
Research by McKinsey shows that companies with gender-diverse executive teams are 25% more likely to have above-average profitability.
BCG found that firms with diverse leadership drive 19% higher innovation revenue.
Ethnically diverse companies are 36% more likely to outperform their peers
Credit Suisse reports that companies with at least one woman on the board see higher ROE and better stock performance.
Diversity isn’t just a moral imperative; it’s a strategic advantage.
Yet, while diversity is essential, it's not the first step. True impact comes from fostering inclusion and this means creating cultures of trust and psychological safety where all voices are heard and valued. Without this, even the most diverse teams can fail to thrive. Inclusion ensures that diversity initiatives lead to genuine innovation and sustained success.
As we look to the future of executive and board leadership, several key skills and focus areas emerge as essential. Digital and technological expertise, sustainability and ESG, and innovation management are becoming increasingly vital. To navigate the future, embracing diversity in executive roles and boards isn’t optional – it’s essential. But equally crucial is fostering inclusive environments that draw upon this diversity for broader success. Truly inclusive leaders foster innovation, drive financial success, and create wider inclusive cultures that benefit everyone. Prioritising skills in digital transformation, sustainability, and crisis management to stay ahead in a rapidly changing business landscape need to go hand in hand with the ability to take diversity beyond hiring practices and initiatives.
We will be returning to this theme during the coming weeks as board member assignments are an impactful part of a dynamic portfolio career. The path to these assignments usually goes through experiencing executive roles and building impact across multiple functions and/or companies, which is at the heart of fractional careers in leadership.
By championing both diversity and inclusion, we can shape a future with leaders who are not only diverse but also equipped with the skills needed to lead by including others.
Do you agree?
***
This post is part of a larger campaign by the formidable Angela Scott and myself. Together we are on a mission to empower accomplished women to unlock their potential in fractional roles. We aim to foster a supportive community and to help promote greater inclusion at work. Comment and follow us to join the conversation!
