Organizations with more diversity deliver better performance.
by Mehdi Rizvi
Maytree foundation and Civic Action recently released the fifth report in the DiverseCity Counts series. The series features research by Dr Chris Fredette, an Assistant Professor with the Sprott School of Business in the area of management and strategy. He holds a PhD in Organizational Studies from York University's Schulich School of Business.
These researchers used three surveys of board chairs and executive directors to develop detailed analysis of diversity in the boards of non-profit sector organizations. They say that the focus on governance and leadership diversity is both timely and increasingly instrumental to the success, legitimacy, and viability of nonprofit and public organizations.
Dr Fredette says that greater leadership diversity among senior executives and boards of directors can help nonprofit organizations meet challenges such as funding and fiscal instability, limited access to highly skilled human capital, and the changing demographics of the communities and constituents that these organizations and agencies have pledged to serve.
Of the total 4254 board members in the study, only 15.59 percent are visible minorities. This compares with 40 percent of visible minorities in the GTA's population. However, 77.9 percent of organizations have at least one visible minority on their boards, suggesting majority of boards are making some some progress on the to diversify their leadership.
Regardless of the organization's own diversity, overwhelmingly respondents to the survey — who were primarily executive directors and board chairs — said that a diverse board generates strong returns and better performance.
Even small amounts of diversity benefit boards and organizations by adding new and fresh perspectives in decision-making, bringing innovative new thinking and ideas to bear, extending the reach of organizational networks and social inclusion. In addition, leadership diversity was found to contribute to organizational governance by helping to shape and guide the strategic direction of the board, improving board governance procedures, strengthening the board's financial management, and enhancing fundraising.
As our demographic make up changes, diversity and inclusion have become essential to nonprofit sector success. Immigrant communities also benefit from increased confidence and trust, and the chance to exchange experiences and learning.
To achieve these benefits, the report recommends making participation meaningful; assign diverse members to special committees and taskforces where ideation and problem-solving are critical, and mobilize senior organizational leaders as catalysts of change.
Diversity is one lens for looking at, identifying, developing, and advancing talent of those who came from distant lands with good knowledge and valuable skills.
We bring in nearly 250,000 immigrants every year. Along with differences in race, gender, and socio-economic and educational background they bring differences in learning style or differences in professional field and working culture.
Diversity is about empowering people.
Diversity is about empowering people. It makes an organization effective by capitalizing on all of the strengths of each employee, by understanding, acknowledging, and using the natural differences from person to person.
In the private sector, research has documented a connection between investment in diversity and overall organizational success and performance. This connection needs more attention from employers and policy makers to make Canada a truly diversified and successful nation.
Honestly speaking, the model of leadership in Canada has been largely based on white males. Therefore, as people from different ethnic backgrounds come forward, we must monitor whether they are being asked to continue to play as subordinates, or being given the full opportunity to effect change as leaders in their organizations.
Immigrants usually come to Canada seeking a peaceful, tolerant and welcoming society. The host communities respect newcomers and treat them equally and respectfully. But the doors to leadership are still not fully open to them.
Diverse leadership is more likely to attract and retain a diverse workforce and it may help new immigrants to learn and understand how to contribute, participate, make progress and integrate, and attain leadership in a new working culture and environment.
About Mehdi Rizvi
Mehdi Rizvi is a former member of the Community Editorial Board, Toronto Star and an affiliate of the Center of Excellence for Research on Immigration and Settlement, which is a consortium of three Toronto universities. He is a chemist who has worked in the manufacturing of pharmaceuticals, cement and UV printing products for the last 35 years.
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