Dealing with diversity fault lines

IN recent years, boardroom diversity has been the subject of much discussion.

The benefits of board (not just gender) diversity are well known. It avoids groupthink, and provides fresh and multiple perspectives that enhance decision making. A diverse board is more likely to challenge management when circumstances demand, and enables the board to better understand and appreciate the perspectives of different stakeholders. Several studies have shown that board diversity does improve the performance of companies.

However, much as the benefits are being touted, much less attention has been directed at understanding how a better managed, diverse board can increase effectiveness in decision making.

Pros and cons of diversit…