• About 39% have no women.
• Only 11% have three or more females.
• Four out of five companies have no term or age limits for directors.
• And just 26% of open board seats last year were filled by women.

Despite years of advocacy, persuasion and occasional browbeating, Canada’s record on gender diversity and boards remains a slow crawl.

The diversity group Catalyst, at its annual Canada Honours Conference in Toronto this week, tried to tackle the problem. Here are some of the highlights:

Persistence Matters

Justin Trudeau made headlines around the world for his appointment of a gender-balanced cabinet in 2015. The real work actually began in 2012, when he was in third place and recruiting candidates. Katie Telford, the Prime Minister’s chief of staff, said it was a slog, not least because women tend to turn down offers a lot more than men do. She said Chrystia Freeland, now foreign minister, said “no” about a dozen times before throwing her hat in the ring. “Diversity doesn’t happen by accident,” Telford noted. “These things have to be intentional. There has to be a plan around it.” A lesson for corporate boards: If at first you don’t succeed …

Process Matters

It’s not just board selection; women are screened for jobs, loans and investment capital with questions designed by and for men. We shouldn’t be surprised by the results. “Women get asked preventive questions. Men get asked promotional questions,” argued Annette Verschuren, the business executive who’s on the board of four major companies, and three registered charities. Telford pointed to the word “experience” as a barrier in many selection processes, arguing it can be designed by the recruiter with a prototypical director in mind. “Too often,” Telford argued, “experience is a proxy for something else.”

Economics Matter

Too many business leaders feel the need to add women to their boards (and executive teams) for social or compliance reasons, rather than economic gain. In a knowledge-driven economy that thrives on teams and diverse thinking, gender balance is increasingly a smart business investment, and needs to be portrayed as such. “New ideas require new ways of thinking. It’s diversity-enabled innovation”, said Rahul Bhardwaj, president and CEO of the Institute of Corporate Directors.

Genders Matter

Gender diversity on boards is more than a women’s issue. Which is why men are being encouraged to do much more. They can start by finding more ways to help develop women for key operating roles, as those are the best springboards to board seats. Sponsorship is also key. Interestingly, Catalyst finds men who were sponsored early in their careers by women tend to promote diversity on their own teams later. And yet, despite many campaigns to increase sponsorship, Verschuren sees a key barrier, “Men are reluctant to sponsor women. It’s a trust issue. Business is built upon relationships, upon trust.”

Accountability Matters

In government, Telford has noticed how much change is driven just by the Prime Minister’s questions. Trudeau regularly chairs “stocktake” meetings with the federal bureaucracy to ask about progress in diversity. The county’s top civil servants are now showing up with plans. The same effect can work with boards, through ‘comply or explain’ rules. Trouble is, the social and economic cost of poor performance is not yet seen as significant in Canada. To help bend that, Trudeau is looking to speak out more — positively and critically — about Canadian companies and their progress (or lack thereof). The Liberals have also introduced legislation to require federally incorporated companies to explain their diversity policy to shareholders.

Inclusion Matters

Whether it’s in the board room or the lunch room, not enough corporate leaders talk openly about inclusion, and how to get a wide range of people leaning into conversations. “It’s not just about diversity,” argued Candice Morgan, Pinterest’s head of diversity and inclusion. She noted a New York consulting firm that achieved gender balance in its partnership ranks only to discover, in a survey, that half its female partners were ready to leave. They felt excluded from key decisions, including how the office operated and how the partners shared workloads. She said more boards and management teams need to talk about their differences, and what each person needs to contribute. “Talking about our differences is less comfortable than talking about what we have in common,” she said.

Action Matters

Ottawa and the provinces may be running out of patience. They’ve studied quota-based approaches to boards, most notably in Norway. The federal government would prefer to use moral suasion, in part because its legal powers are limited. It also knows smaller companies, largely in the resources sector, could move to the U.S. or elsewhere if rules are seen as too restrictive. But there are softer options, such as pushing boards to institute term and age limits. “We have left the door open to doing more,” Telford said.

 

Welcome to the digital frontline of the talent wars, where human resources is becoming the most critical element of any management group trying to win the innovation game. Who knew that the people, not the tech, would be the deciding factor.

Shopify, the Ottawa-based ecommerce company, has grown to 2,500 employees in just a few years, and is now discovering its success, in an Amazon jungle, depends heavily on every new hire.

And they certainly know how to hire well. Shopify was named the #1 Best Place to Work in Canada by Glassdoor — an award is based solely on feedback from employees.

It’s not so much what they can do, but how they will work with others. Passion, curiosity, self-awareness and an unusual mind all matter more than any technical skill. Growth mindsets and resourcefulness count for a lot, too.

As John-Michael McColl, Shopify’s head of talent acquisition puts it: “Interesting ideas come from the weirdest of places.”

I heard McColl and his colleague, Jace Meyer, talk recently about Shopify’s talent strategy, with the cheeky title, “Why HR will be the Most Exciting Place to Work this Decade (yes, for real).”

You’re Only as Good as Your People

The company is no longer looking for position players — individuals who may have a skill that’s in demand. Instead, it needs people who can play on teams, and be nimble enough to pivot (or perish).

It’s also looking for people who want retraining “all the time.” In other words, people who are always learning, always questioning, always contributing.

That makes HR a whole new ballgame.

At Shopify, human resources has been reimagined to hire for qualities over qualifications. What does that mean? People who know who they are — and are burning to build, to create more for the company, its customers and themselves.

The Un-Interview Interview

Shopify does that by turning the interview process on its head. Each new hire is screened by a panel of employees — about half of all staff are now involved — and put through four or five interviews. Only then does the company feel it knows the person more than their resume.

In fact, the company doesn’t even review candidates’ resumes in advance of their first interview. And don’t waste time rehearsing answers – come as yourself armed with what you know.

Off to Camp!

Then there’s onboarding. Every month, all new hires are sent to “RnD Camps,” two-week efforts that bring together new employees to learn the Shopify Way — “we get sh** done” — and are then put on teams of newcomers to solve on some of the company’s challenges.

Regardless of team, everyone participates and are encouraged to start a real Shopify shop during the week –- a real chance to become intimate with the platform.

Employees are always encouraged to experiment, take risks, and pursue the things they care about. Mess something up? Failure is embraced and learnings are shared with the rest of the team.

All of this not only makes new employees feel engaged from the get-go; they learn Shopify is willing to invest in their futures.

An extra benefit: emerging leaders run the camps and coach each team. Again, failure is encouraged. Fun is expected. “It’s like summer camp. When you’re seven, you’re not afraid to f- up,” says Meyer, Shopify’s education architect. “You’re asked to be silly. People need to feel safe, and that’s when they feel free to speak up.”

Want to hear more about Shopify’s culture and hiring practices? Join us for the next #RBCDisruptors: The future of e-commerce on Nov. 8. We’ll be joined by Shopify COO Harley Finkelstein. Tune in via Facebook Live and follow the conversation on Twitter using #RBCDisruptors.

 

The hours are taxing, the material often dreary, and the comp, at least among growth firms, questionable. Not to mention the stress from regulators, the ire of shareholders (activist ones, especially) and some occasional public wrath.

Who Needs It?

Not everyone, for sure. Which is one more reason we need to figure out why Canada is falling short on board diversity. Demand is one side of the problem; supply is the other, and often negated.

To better understand the supply side challenges of board diversity, I led a discussion on, “The Role of the Board” last week with theBoardList, a Canadian-run group from Silicon Valley that RBC supports to curate private lists of board-eligible women for different sectors and markets, including Canada. Joining me were Sukhinder Singh Cassidy, theBoardlist’s founder; Deepak Ramachandran, a prominent venture capital and tech investor; and Mona Sabet, managing director of Tribal Ventures, an M&A advisory firm in the Valley.

So, how can we help more women get to the board list?

Here’s some of what they had to say:

1. Why Join a Board? (Hint: It’s Not the Money)

Cachet aside, boards can be excessive taxes on directors’ time, with weekends and evenings going to prep time, and meetings eating into your day job. For most directors, the benefits make it worthwhile — and it’s not about money or status. Singh Cassidy highlighted the personal fulfillment she finds in helping companies grow, adding jobs and building communities, and helping entrepreneurs succeed. Ramachandran finds board work “exercises a different part of the brain.” Not only does he help entrepreneurs; he finds start-up boards grow his network and expand his influence beyond any one company.

2. What Do Start-Up Boards Look For?

Most directors start with start-up companies and growth firms. Beware: the boards of young, fast-growing companies aren’t just there for the ride. They have to pull their weight plus more, guiding and challenging the CEO while helping firms navigate the strategic landscape, without the resources of bigger firms. Think rowing scull, not racing yacht.

3. What Skills Are Needed Most?

Effective board members open doors to key business partners, and try to bring specialized knowledge — finance or marketing, usually — to the table. Specialists are most in demand, especially if they can help an audit committee. Oddly, human resources less so. This is particularly strange in light of the general sentiment that talent is a company’s most important asset.

4. Do You Look the Part?

Boards tend to look for new members to fit a certain bill. Perhaps they want a digital thinker. Or someone with social values, or political connections. But don’t think your resume tells the whole story, at least not well. Singh Cassidy said to start by looking at your online headshot (because that’s what search committees and head hunters will see). Do you look digital?

5. Can You Play the Part?

Even if you’re a position player — the coveted specialist — it may not be enough. A company big enough to have a strong board is big enough to have strong position players — and they’re in management. They don’t need another sales veteran. What they do need is a big thinker, with a curious mind, unafraid to show authority. Are you a thought leader in your field? Have you written or given TED Talks about topics that will excite the room? When a board comes calling, they’ll want to know as much about your influence as your experience. Make sure you have some.

6. Soft Hands or Sharp Elbows?

While we push rightly for diversity, boards also need to work as one unit (sculling, remember.) They need to foster debate, but then present as a united front. And they must come together around the ultimate litmus test: the hiring and/or firing of a CEO. “Boards are supposed to question the CEO, which isn’t fun,” Sabet told the room. It’s not an environment that tends to welcome lone wolves, or outliers. It’s a group that needs people who can manage conflict, not add to it. Good boards have lots of debate, and need people who can land the debate without a crash-and-burn. Are you one of those? Can you negotiate, probe, critique and communicate? These same qualities are all the rage in the labour market. Boards are no different.

7. Who’s Singing Your Song?

Everyone’s got a rap or two against them. Perhaps it’s moodiness, or an inability to warm up a room. When the search gang digs into your story — and they will — have you established a positive narrative with your network to overshadow any naysaying?

8. It’s Not About You (Alone)

Boards are looking for a missing piece to a puzzle. Just because you’re not that piece doesn’t reflect poorly on you as a candidate, it’s just that you may not add the exact qualities they need to make the group whole. Whether it comes down to experience or personality, you may not be the right person. And guess what, they may not be right for you either. “Every Board that wants you, you may not want. Go where the culture fits,” Singh Cassidy said.

9. Can You Connect With the CEO?

Boards can be full of contradictions. They’re there to keep the CEO, and management, in check. They’re also a CEO’s best source of wisdom, contacts and encouragement, especially for growth firms. “The CEO is looking for someone they can learn from,” Sabet said. She finds women, too often, don’t market themselves as CEO counsellors, instead relegating themselves to the role of position player. Reality is, that’s usually the job of management — or the armies of consultants they can hire.

10. How’s Your Network?

Too many people think they will be recruited for boards solely based on their own merits and experience. In reality, it takes a lot more hustle than that. Are you actively networking with CEOs or other board members? Will you be top of mind — any mind — when an opening emerges? And is your story sufficiently known, so people won’t scratch their heads wondering who you are?

Remember, board selection is not like any other recruitment exercise. It’s about team building, balancing power, personal brands and collective wisdom. And a lot of hard work. But find the right fit, and you’ll be hooked.

There were artists (Ai Weiwei, Margaret Atwood) and journalists there, and Canadian political figures actively engaged in the larger debate (Adrienne Clarkson, Sophie Grégoire Trudeau). As well as many who work on the front lines of inclusion (migrant rescuers, civic policy makers). RBC was there too, talking to another group that’s on the front lines of diversity and inclusion: Canadian employers. If that strikes you as odd, consider that for many of us, how we are treated at work could ultimately determine whether we consider our society truly inclusive. The workplace is where we spend many of our waking hours, where we interact with the broader community, and where life-changing opportunities are extended (or not) in return for our time, effort and talents. What we learned: Canadian firms get diversity. They hire for it, and they measure it. Inclusion is a different matter. That’s partly because, as Charlie Foran, CEO of the Institute for Canadian Citizenship (which puts on the 6 Degrees conference) put it, “so much of inclusion is not intuitive.” But it is a measure of how a community—and by extension, a business—is functioning, he said. In a forum on fostering inclusive workplaces, we asked some organizations that seem to be getting it right what they mean when they talk about inclusion.

It Takes Commitment

Canadian firms admit it—baking diversity and inclusion into an organization’s culture is hard work. For many, it begins with appointing senior leaders to positions that deal with diversity issues. Our forum participants—EY, Maple Leaf Foods, Humber River Hospital—have done it. So have most of the 64 large employers we surveyed as part of a joint RBC-ICC study we conducted over the summer. It also means implementing initiatives—affinity groups, talent-development pipelines, and so on—that promote or support employees with differing perspectives. It also means being open to recognizing where you fall short, and trying to course-correct. Joe Gorman, Humber River’s Director of Ethics and Community Relations, talked about his hospital’s initial disconnection to the area it serves: one that scores low on numerous measures of income, education and well-being. Humber River is state-of-the-art, but for many local residents it was the “Castle on a Hill,” remote and inaccessible. That led the hospital’s leaders to ask: was the hospital there to deliver healthcare, or more? Humber River decided to make people it serves a core part of every major decision it makes, asking community members what they needed and inviting them to sit on patient-care councils. The results: changes in patient transportation, adding language capabilities, to name a few.

It Takes Dialogue

For many, diversity and inclusion are visceral issues, and it’s hard to check feelings about them at the office door. Sadaf Parvaiz, Director of EY’s Americas Inclusiveness Office, said EY has made inclusion a core workplace value for years. But recently, it has become more sensitive to how events outside the workplace—such as incidents of racialized violence—are affecting employees. The firm has held town-hall-style conversations at which employees can talk about these issues—for instance, after a deadly shooting at an Orlando nightclub. To assist the firm’s partners, who typically lead these discussions, EY provides a “talk track,” or a way to guide the conversation. The point isn’t to solve these problems, she noted, but to underscore that EY understands the stress such incidents can cause.

It Takes Investment

EY’s Parvaiz said employees who required a space to pray often faced questions from colleagues about why they were disappearing for brief periods of time. The firm’s solution: installing quiet rooms in each of its offices, for prayer or reflection. She said EY started doing this more than a decade ago, and gets queries from other employers who still see it as a cutting-edge solution. Our survey uncovered many other examples of firms investing in diversity and inclusion—everything from recruitment initiatives to equipment that fits women.

Actions Bear Fruit

Luka Amona, who’s Director of Human Resources at Maple Leaf, said the food company thinks a lot about how diversity and inclusion can help it fulfill its core mission: feeding Canada, and increasing food security for all Canadians. He credits the company’s listening to employees for its foray into Halal products, which served a customer need it wasn’t previously meeting. That was just one example of how inclusion can be part of a firm’s core strategy, and drive new business while also making employees feel valued.