The answer: Having a good mix of people.
It just keeps things more interesting. What’s true for any great party is also true for business.
A study looked at the makeup of over 2,000 corporate boards and the results send a very clear message:
“They found that the more diverse a company’s board was, the less likely it was to engage in risky behaviors, the more likely it was to issue dividends, and the larger those dividends were likely to be.”
Why is that so? — Well, the more homogeneous a board (or any group of people) is, the quicker it’s assumed that everyone’s on the same page and the less they engage in more analytical considerations about potential outcomes of proposed ideas. It’s much easier to make thoughtless, risky decisions when everyone is in a “Let’s try it!” state of mind than when someone with a different point of view challenges or at least tempers your perspective.
Makes so much sense, doesn’t it, ladies? So let’s do those companies and shareholders a favor and knock on those board room doors.
Read the article on New York Magazine.