Academics on Boards – good idea or not?

Diversity on Boards is commonly understood as a diversity of skills, experience, gender, and ethnicity. However, when it comes to diversity of thought, the infusion of academic expertise offers a compelling avenue for bolstering strategic oversight and stakeholder engagement.  Tapping into the rigorous thought process of academics can bring invaluable insights and research-driven perspectives to boardrooms.

Whilst I commonly hear “but they don’t have commercial skills”, this concept is misguided. It assumes that all academics are backroom boffins and have not run business units that must balance budgets and manage staff. Indeed, some have DBAs, and MBAs or have been involved in successful scientific business start-ups and innovations. Some run multibillion-dollar enterprises with thousands of staff and billions in assets.

Also, Boards and executive leadership teams already have substantial commercial skills. Diversity reflects the need to bring in skills that you don’t already have so that better outcomes are achieved. For example, I have had the pleasure to serve on a NFP Board that also included a nurse. I am grateful that she was on the Board as we could always count on her to provide a patient-care perspective to help shape the Board’s thinking and ensure that decisions are pragmatic and rooted in principles of transparency, accountability, and ethical conduct.

The proficiency of academics in strategic planning, financial management, and compliance ensures sound fiscal stewardship and governance integrity within organizations, while their adeptness in stakeholder engagement fosters collaboration, transparency, and trust among diverse stakeholders.

Collectively, the amalgamation of academic and administrative talent on boards catalyses a culture of innovation, resilience, and ethical leadership, positioning companies for sustained success in today's complex and dynamic business environment. By harnessing the diverse expertise, analytical rigour, and stakeholder management skills of academics and administrators alike, corporations can enhance their governance practices, mitigate risks, and capitalize on opportunities for long-term value creation. Embracing this fusion of academic and administrative perspectives underscores a commitment to excellence in governance, ethical leadership, and stakeholder stewardship, ultimately driving organizational performance and shareholder value in the pursuit of sustainable growth and prosperity.