"Well, it's all in the name isn't it? 'Not for profit'. No-one from the charitable sector can possibly be effective on a private sector board". At a post-Davis report meeting about getting more women on boards, I fixed my smile and focused on the best way to tackle this sort of prejudice. Fortunately some key players wanted to do the same. As a result NCVO and Cass Business School at City University are holding a series of seminars to get seven very senior women in the voluntary sector 'board ready' for non-executive roles on FTSE 100 boards. The programme will begin to shatter the 'glass silos' that act as a barrier to seeing the voluntary sector as source of great and experienced women. We're fuelling the pipeline from a new and untapped source.
It's hard to say to what extent the lack of focus on the voluntary sector is a question of gender, and to what extent this attitude simply shows the almost total lack of understanding of the challenge of running a £100 million plus voluntary organisation, with distributed management, in several countries with different legislative frameworks. It's one of the things we'll find out as the programme gets going.
As someone who has held five chief executive posts in the not-for-profit sector (two in charities, three in the public sector) and who has been a trustee of many voluntary organisations, I'm conscious that the demands are not the same as in the business world. Arguably, in the not-for-profit world the focus on stakeholder management, building public trust and adding value are nuanced to a very high degree. Corporate governance is different from charity governance. This programme will focus on those differences and fill the gaps for seven of the most experienced women in the voluntary sector.
In the charity world, governance is focused on what Julia Unwin calls the five S's – strategy, stretch, scrutiny, support and stewardship. The corporate sector focuses too on strategy and scrutiny but substitutes the catch-all of stakeholder value for the other three. And it's that notion of stakeholder value, of the importance of earning one's spurs in mergers, acquisitions and hostile takeovers, corporate finance and of building in challenge and accountability, that Cass will add to the repertoire of these leaders.
The time is right for such an initiative. Gender diversity is hot news and as Sir Stuart Etherington of NCVO has said: "The breadth of knowledge that these talented women would bring to the major FTSE board tables is incredibly far-reaching. Having led their charities in competitive and international environments, with constant consideration of accountability, demonstrating impact, building public trust, motivating staff and stakeholder engagement; they also recognise the need to produce high quality results to a strict bottom line."
Building confidence in British business and the corporate sector also needs a new approach and a new urgency. Without thinking that the engagement of a few women who have excelled in the charitable sector will solve the problems, there is an opportunity to strengthen British boardrooms by adding greater gender diversity and contributing expertise in building public trust.
The Dean of Cass, Richard Gillingwater, commented: "The UK voluntary sector has a number of exceptional individuals who have proved themselves by leading complex, innovative and performance-oriented organisations delivering in turbulent environments. These chief executives have learned how to lead thousands of people in highly ethically conscious environments; how to earn and keep the public's trust and manage valuable brands; how to grapple with governments while preserving independence; and - fundamentally - how to thrive in an income-uncertain world while sticking close to purpose."
This is not a remedial programme – these women are highly skilled and successful. What interests them is bridging the sectors so they might contribute quickly and effectively in non-executive director roles. People who make the switch from the corporate sector to the charitable sector are often astonished by the subtleties of the challenge, the fierce focus on value for money, measuring impact and driving performance. Charities are not an easy or soft option. Many say they wish they had learned more about the voluntary sector before taking an executive or non-executive role. Following this programme, these women will be able to decide whether the world of non-executive directorships is for them. Cass and NCVO will provide a unique opportunity to explore differences of governance and stakeholder value, and to celebrate the difference the women can make to successful organisational leadership, accountability and trust.
Lynne Berry OBE is a senior visiting fellow at Cass Business School
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