- JUNE 2003

KEY ISSUES:

The Personal Attributes of Effective Non-Executive Directors

The Benefits and Encouragement for Greater Diversity Among Non-Executive Directors

Constraints of Creating More Diverse Corporate Boards

Need for effective Selection and On-going Training and Assessment

MAIN ISSUE : DIVERSITY

WHY???????

The Personal Attributes of Effective Non-Executive Directors

Judgement

Effective Decision Making

“A major contribution of the non-executive director is to bring wider experience and a fresh perspective to the boardroom. Although they need to establish close relationships with the executives and be well-informed, all non-executive directors need to be independent of mind and willing and able to challenge, question, and `.” (Higgs, 9.1)

The Benefits and Encouragement for Greater Diversity Among Non-Executive Directors

Board Effectiveness

Marzipan Layer

Skills and Experience

Catalyst – WOMEN!!!!!!!!!!

Synergy

Positive sign for Shareholders

“The best boards are composed of individuals with different skills, knowledge, information, power, and time to contribute. Given the diversity of expertise, information, and availability that is needed to understand and govern today’s complex businesses, it is unrealistic to expect an individual director to be knowledgeable and informed about all phases of business. It is also unrealistic to expect individual directors to be available at all times and to influence all decisions. Thus, in staffing most boards, it is best to think of individuals contributing different pieces to the total picture that it takes to create an effective board.”

- (Conger and Lawler, 2001)

SYNERGY

ASSISTANCE FROM NEDs

AVOIDING CONDITIONAL ASSISTANCE OR CONFLICTS AT WORK

Constraints of Creating More Diverse Corporate Boards

Different Needs

Coordination

Difference Issues

a) GENDERb) CULTUREc) BACKGROUNDd) WORKING METHODS

Need for effective Selection and On-going Training and

Assessment Awareness

Introduction to organisation culture

Training and Induction

Pumping Confidence and integrating NED’s skills with the Organisation Culture

Avoid Information, Communication GAPS

Effective Selection to select the Deserving Candidate

EFFECTIVE TRAINING AND INDUCTION DEPICTED

COMMUNICATION GAPS AND UNEFFICIENT DIRECTOR DUE TO

LACK OF PROPER SELECTION, TRAINING AND INDUCTION.

FACTS:

According to Goldman Sachs Urban Investment Fund, the Fortune 500 invest nearly $2B yearly in corporate diversity programs, ranging from diversity training to the recruitment of diverse candidates.

Conclusion

WE ARGUE........

Every coin has two sides...... Doesn't matter the benefits of Diversity, what

we perceive things in an unorthodox way...... Parameters: Gender Background Age Nationality Experience

POSITIVE BRIGHT SIDE

ADVANTAGES

CONTRIBUTION

ALTERNATIVES

INNOVATIVE IDEAS

NEGATIVE AND A BIT SCARY DARK SIDE

CONFLICTS

PERSONAL ISSUES

LACK OF CO-ORDINATION

FLEXIBILITY