Boardroom diversity remains a pivotal subject for governance professionals, particularly in the context of gender, age, culture, race, and the diversity of professional skills and experiences.

Assessing the diversityequityinclusion of your Board entails a comprehensive review of academic qualifications, skills, knowledge, age, gender, experience, and nationality/cultural background. While considerable attention is rightfully placed on gender diversity, the age factor in Board composition often goes unnoticed.

In Kenya, significant progress has been made in gender diversity, with a 36% representation of women on corporate boards, surpassing the global average of 30% as illustrated in the Kenya Institute of Management’s Board and Diversity Inclusion Report.

When it comes to the age factor, Kenya is also demonstrating positive strides, with the average boardroom age at 47 years, diverging from the global averages of 64 years in the S&P 500 and 62 years in the Russell 3000 as of 2023.

While these figures may be commendable, it’s essential to continuously and conscientiously evaluate board compositions in light of the evolving global landscape, rapid technological changes, shifting consumer trends, and bridging the generational gap. The emerging influence of the younger generation in consumer behaviors cannot be disregarded any longer. Therefore, considering age as a preference in the next Board appointment is highly recommended.

A compelling example from the fashion industry showcases the impact of integrating younger perspectives into boardroom discussions. With the recognition that fashion trends were evolving rapidly, one prominent fashion house formed a shadow board comprising millennials and Gen Z staff. This move provided alternative viewpoints, leading to reframed strategic decisions that kept the fashion house relevant. Such initiatives facilitated the exploration of digital marketing, leveraging social media influencers, and drove brand growth and revenue.

Integrating younger leaders through methods like shadow boards can offer invaluable learning experiences, enabling them to engage in strategic discussions, comprehend organizational contexts, and chart potential career paths into board leadership roles.

In Kenya, young individuals (defined as persons under the age of 35) are often overlooked for board positions due to perceived lack of experience. Implementing concepts like shadow boards or inviting young talent to present departmental reports in board meetings can significantly alter this dynamic, providing firsthand exposure to boardroom operations.

Continually refreshing the faces in the boardroom is not only a governance requirement but a vital necessity for business sustainability in a rapidly evolving landscape.

Credits to: Kenya Institute of Management, Harvard Law School Forum on Corporate Governance, The Corporate Governance Institute