Section Menu

Building Better Boards

The DTI published `Building Better Boards’ in December 2004, which was a product of extensive discussions with business, academia and head-hunters.  This provided the basis of the case studies integrated in the document.

This best practice guide offers recommendations and tools to help companies improve recruitment and performance in the boardroom.  

This guide:

• sets out the business case for effective diversity and better practices in the boardroom;·
• cites the benefits for companies, with evidence from some of Britain’s best-known businesses and names; and,·          
• outlines Government and business-led initiatives to develop the talent of a diverse range of candidates.

`Building Better Boards’:  Key Messages:

• Building Better Boards is about companies thinking more systematically about the effectiveness of their boards, their recruitment processes and the way in which they develop their own people.

• Boards, which have the scope to consider a wider range of perspectives, and generate richer, more informed discussion of the issues facing the company, are more likely to anticipate problems and produce high quality solutions.

• Board members with diverse experiences and backgrounds bring varied and complementary perspectives, contribute in the making of strong and dynamic boards and lead to companies that can compete successfully in the global economy.

• Diversity isn’t about tokenism.  It’s about getting the right skills mix on the board.  There are real business benefits, which companies can derive from broadening the base of their boards and bringing in fresh minds with different skills and new perspectives to contribute to the growth and development of the business.

• Provides managers with an overview of the scope of development available for their talented executives, enabling them to make a positive contribution in a boardroom in the future.

• Provides an overview for aspiring executives as to the skills required to secure a position on the board of a UK company. It also includes a range of case studies demonstrating how individuals and businesses have pursued their own and their staff’s development.

• Good corporate governance is ultimately about people.  The key to building better boards is a commitment from the top down to the dynamic development of the board in the best interests of the company.

There is a significant opportunity now for businesses to come together to explore how more development opportunities for their executives from the marzipan layer may be opened up and pursued.