AGRiP Governance & Leadership Conference Diversity as a Good Governance Tool March 7, 2017

Spartanburg County Foundation Board of Trustees Planning Meeting Principal Sage Consulting Network, Inc. BoardSource Senior Governance Consultant Standards for Excellence An Ethics And Accountability Code For Nonprofit Organizations Clinical Psychologist Previous Healthcare Performance Executive Dr. Robin H. Stacia LEAN Six Sigma Process Improvement Green Belt robin@sageconsultingnetwork.com 404.973.0233

Objectives Examine the dimensions of diversity, Examine intentional governance policies and processes that strengthen diversity practices, Enhance the ability of executives and board leaders to develop inclusive boards through commitment and implementing key action steps.

What do you want to take away from today’s presentation? Goal Setting What do you want to take away from today’s presentation?

Poll Questions Has your board had a serious conversation about diversity and inclusion? Yes No Somewhat..

One of the reasons that these conversations tend to be frustrating and unproductive is that there lacks a clear framework, a starting point that emphasizes consensus around definitions of terms and concepts, and most importantly, a clear set of goals. CONSENSUS FRAMEWORK

All of the similarities and differences that make each individual unique. Diversity Systematic differences in the incidence, prevalence and burden of adverse conditions on a particular population group. Disparities The ability of diverse peoples to raise their perspectives authentically and for those voices to matter and affect decisions. Inclusion The capacity of organizations and individuals to provide quality, culturally sensitive services to diverse populations. Cultural Competence Governance and Management Driven Diversity Leadership-driven systems approach that promotes diversity and inclusion through governance and organizational policies and practices.

They define the following: DIVERSITY is about people, INCLUSIVE is about processes, and EQUITY is about inclusion + fairness ...meaning correcting and ensuring that we are doing things that are going to impact those individuals that have been historically shut out (not just about race, but focuses on gender, age, sexual preference, religion etc.).   D5 COALITION: FOCUSES ON ADVANCING DIVERSITY, EQUITY AND INCLUSION (DEI)

Good Governance

Boards Matter Why What Where Solution How When Who

12 PRINCIPLES OF GOVERNANCE THAT POWER EXCEPTIONAL BOARDS The difference between RESPONSIBLE and EXCEPTIONAL boards lies in — thoughtfulness and intentionality, action and engagement, knowledge and communication. 12 PRINCIPLES OF GOVERNANCE THAT POWER EXCEPTIONAL BOARDS

INTENTIONAL GOVERNANCE PRACTICES Board Revitalization & Composition Board Structures & Practices – “new work” Designing Board Meetings that Matter Ensuring Board Involvement that makes a difference INTENTIONAL GOVERNANCE PRACTICES

Pool Board Considerations

Pool Boards: (some) structure and practices Small Boards of 8- 12 members. The focus of the Pools are specific and this impacts the board’s membership. Some Pool Boards have designated member criteria- this creates challenges for recruitment. Some Pool Boards experience challenges overall with recruitment. Governance practices vary. Tendency to focus on fit and culture vs divergence and differences. Generally, terms but no term limits Rotation off the boards – usually occurs with retirement. Recruitment is limited to membership- most have no or limited recruitment process. Boards are typically white, males with few woman and people of color. Typically older. Generally, don’t use a composition matrix that identifies diversity priorities.

Diversity Considerations

Diversity is Multiple-Faceted Race Ethnicity Gender/Gender Identification Sexual Orientation Age/Generation Social Class Thought Leaders-Diverse Opinions Ability/Disability Religious/Spiritual Geographic Regional Skills/Expertise Professional/Career Role Interest

Diversity Considerations 1 How do we define diversity? Why is diversity important to us? Have we had an open discussion about changing demographics in our Pool organizations and membership and how it impacts our services? How might diversity and inclusion increase our ability to serve our members? What are the potential points of contention or resistance related to diversity? 2 3 4 . 5

Diversity Considerations Can our practices, traditions be perceived as barriers or biased? What do we have to change in order to become more diverse and inclusive? Is our chief executive and Board Chair committed to inclusiveness? If so, how has this been demonstrated? Is the board committed to inclusiveness? If so, how has this been demonstrated? What are the elephants in the room? 6 7 8 9 . 10

Intentional Governance Practices

A Champion- someone who speaks up, has an interest, and the journey begins. A Critical Incident- a situation or issues that creates the motivation for change. Connecting to Mission- defining and embracing how diversity is Mission Central Connecting to real occurrences and events within your community Movements- demographic shifts, legislative issues, dynamic and meaningful events that shift the comfort zone, challenge the status quo- Moments- Black Lives Matter, Gay Marriage Equality, Women’s Pay Equality Efforts…. What’s the Motivators

The Business Case for Diversity & Inclusion McKinsey & Company: review of public companies that commit to diverse leadership, found that they are more successful. 30% more likely to have higher financial returns Better able to win top talent Improve customer/client orientation Higher employee satisfaction Better decision-making

Policy Framework Considerations (informed by D5 and BoardSource Research) Actions Considerations Has the organization made an expressed commitment to diversity? Has it authorized diversity in organizational policy? Has it implemented diversity practices in its operations? Has it identified critical areas where diversity practices and thought leaders are relevant and needed ? Has it used accountability mechanisms to monitor diversity and expand interface with diverse opinions ? Make the case for Diversity; Craft policy to systematize and sustain efforts; Implement in operations; Implement in programmatic work; Monitor diversity efforts for accountability.

California Endowment’s Case Statement http://www.calendow.org The California Endowment is an equal opportunity employer committed to diversity and to creating a work environment where the individual is valued and respected. We believe that diversity and inclusion are essential to organizational effectiveness and excellence, and our commitment to diversity is reflected in the composition of our staff, management, and board of directors. The Endowment welcomes applicants from diverse backgrounds and seeks to hire qualified staff reflecting the rich diversity of the communities we serve. We define diversity in broad terms to include race, ethnicity, age, gender, religion, sexual orientation, gender identity and expression, disability, geography, and socio- economic status.

Commitment

Accountability and Sustainable Practices Hardwire Diversity Accountability and Sustainable Practices Practices Policies Mission and Vision Strategic Plan Value Statement – acceptance and appreciation of diversity and diverse thought leaders, opinions and content. Policy on Board Diversity Policy on Staff Diversity Investment- Vendor- Allocation Policies Intentional Board Building- Identification- Cultivation- Recruitment- Pipeline Engagement of diverse stakeholders, partners, thought leaders Integration of diversity commitment framework in orientation, training, communications, and media Assessments- gather data to better understand your specific diversity needs and gaps

9 Steps – Strengthening Board Revitalization

WHO ARE THE GENERATIONS? AGES IN MILLIONS BY PERCENTAGE Traditionalists 68+ 35.2 11% Boomers 48 – 67 80.3 25% Gen X 38 – 47 40.9 13% Millenials 18 – 37 86 27% Gen Z / iGen 0 – 17 74 23%

WHAT IS THE GENERATIONAL MIX? TRADITIONALISTS (1900-1945) BOOMERS (1946-1964) GEN XERS (1965-1980) MILLENIALS (1981-1999) ALSO KNOWN AS… Veterans, Silent Generation, WWII Generation Baby Boomers Xers Gen Y, Nexters, Nintendo Generation INFLUENCERS World wars, The Depression Television, Vietnam War, Civil Rights Movements Internet, Madonna, Bill Gates, Friends, Rodney King Social media, iPods, 9/11, American Idol MARKETING Conservative imagery, legacy, family, well-known brands Healthy lifestyle, hard work, team work Inclusive, straight talk, environment images, multi-channel Multi-ethnic, green, sexier, celebrity

Be Intentional: Develop Your Case Statement What’s your compelling Case? What benefits will be gained? Seek input from board, staff, members, stakeholders, others?

Leadership Commitment: Board Chair & Executive Make diversity a top objective for the entire organization. Make regular public statements of the organization’s vision and philosophy of diversity & inclusiveness. Appoint a Governance Committee or task force to study diversity and inclusiveness throughout the organization. Include progress on diversity metrics as a regular part of reporting to the board.

Leadership Commitment Be open to self-reflection, learning from real time events and data. Establish a manageable process- determine where you should start and how. Seek external support: Benchmark with others Include subject matter experts Peer- learning groups Use models and tools Seek consultants and other expert guides

Intentional Strategies for Pool Boards 1 Develop a board diversity case statement or framework that is based on your Pool Board’s unique diversity priorities. Review Bylaws and consider term limits and rotation of board members. Develop a plan for strategic and intentional board building practices. Create a pipeline – early entry points for engagement such as committees and task force projects. Create and use a composition matrix. Provide board training on diversity and governance. 2 3 4 . 5 6

Questions

THANK YOU! Thank You Dr. Robin H. Stacia Phone: 404.973.0233 robin@sageconsultingnetwork.com Phone: 404.973.0233 www.linkedin.com/in/robinhstacia www.sageconsultingnetwork.com http://standardsforexcellence.org/robin-stacia/ https://www.boardsource.org/eweb/DynamicPage .aspx?Site=bds2012&WebKey=60f1ac17-5c05- 4131-85a3-70db53faec52