Board Effectiveness In Ftse 250 Companies: Diversity May Hold The Key

This chapter takes the argument of Levrau and Van den Berghe (2007) further and explores yet another tool for improving board effectiveness. Guided by Strategic Leadership theory, this study interviews 30 board members of FTSE 250 companies and seeks their perspective on attributes of effective boards. The findings of the study reveal that board effectiveness relies on their member’s experiences. Boards with a range of varied experiences of Directors, such as their gender, nationality, and professional background challenge the assumptions of the executive more constructively, and also enrich the decision-making process. There is an increased awareness among stakeholders of FTSE companies about diverse boards having an enhanced role effectiveness. As a result, companies with diverse boards communicate positive signals more effectively.