Lessons from Norway - Building Gender Balanced Business

1. Norway has led the world in being the first country to increase the proportion of women on boards to 40%
2. The arguments against the quota legislation proved weak
3. It destroyed the closed world of the old boy’s network and opened up companies to wider and hitherto untapped networks of talent
4. The best way to source high-potential women for the board is to ask your own female board directors to tap into their networks

“Organic growth and voluntary measures were not opening the boardroom doors to women in Norway quickly enough.”

All of the evidence about changed boardroom practices, performance and input from the women is anecdotal at this stage. What we can acknowledge without a shadow of a doubt is the sizeable impact the quota law has had on board recruiting.

The stale, old fashioned board recruiting practices, that effectively favoured men, have changed beyond all recognition. With owners forced to appoint women, they have had to look outside of their own networks, where they, not surprisingly, found many skilled and experienced women. Head hunters, who were previously unwilling to take the “risk” of putting women on their shortlists were forced to work harder at expanding their pool of candidates.

In 2002 around 30% of the companies on the Oslo Stock Exchange had board selection committees – today the number is close to 60%. The committee members are no longer shrouded in secrecy and their names are often published on company websites, something that was almost unheard of in 2002. I can recall contacting a company secretary in 2002 and being cut off because I had asked for the names of their selection committee members, so as to invite them to my forum. Today companies are much more open and accommodating.

But this year, something extraordinary happened. DnBNOR Bank appointed a woman chairman. This would not have happened in 2002.

As for the future recruiting of women to company boards, company owners know exactly who to consult: their own female board directors. I predict that owners will find it increasingly easy to recruit talented women to their boards. Experienced women board directors have networks with up-and-coming talent in their organisations and amongst businesswomen associates and they are going to be happy to recommend them.

Owners have acknowledged that ignoring 50% of the talent pool was not the best method of securing the best talent for their board. Broadening the horizon, doing a wider search and including women was once a novel thought. But this year, something extraordinary happened. DnBNOR Bank appointed a woman chairman. This would not have happened in 2002.

I am extremely impressed by the way the Norwegian business community has taken the “quota law” in its stride and just got on with it. They have adapted and now it is business as usual.

Diversity can bring about business opportunities for a willing and creative board. If women can bring a different perspective to the board that makes good business sense, it would be insane for companies to ignore their talent, wouldn’t it? This is supported by the Catalyst Bottom Line study where US researchers were able to conclude that organisations with women on their boards outperformed their counterparts.

And hence, with the world in financial turmoil and global economies in free fall before our very eyes, I leave you to reflect on the following: the board of collapsed investment bank Lehman Brothers consisted of ten men and one woman. Would Richard Fuld have received a multi billion dollar package on departure had there been more women on Lehman’s board?

Norwegian entrepreneur Elin Hurvenes founded the Professional Boards Forum in 2003 when the Norwegian Government, through new legislation, demanded 40% women directors on company boards. Elin took action when business communities and company owners claimed they did not know where or how to find qualified women.

The Professional Boards Forum, sponsored by the Norwegian government and several large corporations, brings together company owners, CEOs, chairmen and experienced business women. Elin has placed several women directors on the boards of Oslo Stock Exchange companies and offers one-to-one Board Positioning Programmes for women who aspire to reach the board level. She is a London Business School MBA.

The Professional Boards Forum is now expanding to Spain and the UK. The first UK event is scheduled in May 2009 in cooperation with UK business partner Jane Scott and major UK companies.