Engaging Young Leaders on Aged Care Boards The Business Case for Age Diversity on Boards
Alicia Cur*s www.aliciacur6s.com alicia@aliciacur6s.com
aliciacurtis
About the Author Alicia Cur6s is one of Australia's most experienced mentors of young leaders. She has managed her own leadership development consultancy since 2002, working with thousands of young people aged 12 -‐ 35 years old. Alicia's talent is in developing engaging leadership programs that inspire young professionals to step up in their careers and community. Alicia herself has had a diverse range of leadership experiences including aJending the first Interna6onal Children's Conference on the Environment hosted by the United Na6ons in 1995 when she was just 12 years old. She then went on to co-‐found her own Children's Conference in Perth with three other young people when she was 13 years old. The organisa6on s6ll exists today as Millennium Kids. Alicia also holds a Masters in Business Leadership and currently sits on three community organisa6on Boards.
How this report came about Alicia Cur6s was contracted as the Project Manager/Facilitator for the Engaging Young Leaders on Aged Care Boards project, working with Southcare, Bap6stcare and MercyCare. Alicia has worked alongside Dr Nicky Howe, CEO of Southcare, Dr Lucy Morris, CEO of Bap6stcare and James Lawton, Director of Execu6ve Services, MercyCare to develop a Young Leaders Program and Unconven6on event series to encourage the engagement of young leaders in the aged care industry. This report is the colla6on of all the research, ideas genera6on and conversa6ons with the project team and aJendees of the Unconven6on event series and Young Leaders Program par6cipants. It is hoped that this report will serve as useful informa6on for Boards who are interested in moving to ac6on on the subject of engaging young leaders. You can find more informa6on about the project at hJp://youngleadersinagedcare.ning.com.
Special Thanks Special thanks to Dr Nicky Howe, CEO of Southcare for the many conversa6ons, research and willingness to explore the benefits of engaging young leaders on Boards. This report is a testament to your support, encouragement and hard work on this project. Also special thanks to Ce]na Raccuia for her support in edi6ng this report.
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Execu*ve Summary There is no ques6on that Boards play an integral role in the success of any organisa6on. Over the past ten years, as the not for profit sector has increased its contribu6on to Australia’s GDP, the governance and composi6on of its boards has also come under scru6ny. Board composi6on and the incorpora6on of diversity is a topical and important issue that directly impacts the Boards effec6veness (The Eversheds Report: The Effec6ve Board, 2013). Of late, a majority of research has focussed on gender diversity leaving age diversity unrealised. The purpose of this report is to demonstrate the importance of engaging young Directors on boards with a par6cular emphasis on the aged care sector. Why aged care? As our life expectancy increases, so does the requirement for services and support that meet the needs of our ageing popula6on. The aged care sector faces challenges that require prac6cal, innova6ve and community driven solu6ons to fulfill their community service. Subsequently, The Engaging Young Leaders on Aged Care Boards project was realised (youngleadersinagedcare.ning.com). The project aims to strengthen the leadership and governance of the aged care sector by encouraging and facilita6ng the involvement of emerging leaders onto Boards. The urgency for the considera6on of age diversity on Boards is grounded in that 29% of Board members on aged care and not-‐for profit boards are over the age of 60, demonstra6ng the poten6al for these organisa6ons to lose a third of their Board over the next five to ten years (Australian Government Corpora6ons and Markets Advisory CommiJee; 2009). In such a compe66ve climate, where funding and resources are becoming scarce, succession planning for the Board is paramount in ensuring the transfer of their knowledge and experiences to younger Directors. This risk could be far greater than any taken to engage a young Director. Engaging young Directors not only strengthens succession planning but also introduces a variety of skills, knowledge and experience to a Board. Engaging Genera6on Y has the poten6al to transform the sector, providing access to individuals who are more adept with social media, technology and connec6ng with a global community. This report also explores the poten6al barriers associated with considering young Directors for Board posi6ons including myths around experience and interest in aged care. Whilst the process of engaging emerging leaders is a gradual one, organisa6ons have a variety of ac6on steps that they can take to begin the process that include: Fostering inclusive and collabora6ve cultures that promote intergenera6onal partnerships: • • • • •
Inves6ng in trainee Board Director posi6ons Assessing Board processes and composi6on Encouraging an open appointment process Expanding leadership discussions; and Suppor6ng projects and ini6a6ves that provide the opportunity for mentoring and skills development
Whilst there is a significant amount of skep6cism around the need to have younger members, as well as concerns of isola6on and underperformance, taking ac6on is essen6al for the longevity of the aged care sector.
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Contents Execu*ve Summary
3
Introduc*on
5
Benefits of a Young Director
6
Diversity of skills, knowledge and experience Strengthening succession planning Engaging Genera6on Y Barriers
10
No Interest in Aged Care No Time or Interest in Boards Organisa6onal Barriers Age Diversity – The Next Fron*er
13
Intergenera6onal Partnerships Ac*on Steps
15
Beyond Tokenism Inclusive and Collabora6ve Cultures Board Processes and Composi6on Mentoring Leadership Discussions Conclusion – Working on the Same Team
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References
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Introduc*on
Currently, 62% of board members
on publicly listed Boards across
Australia are 50 years old or
above (including
29% that are 60 and above), with only 12% being
under 40 years of age.
Given our ageing popula6on, it is no surprise that the aged care sector is tackling challenges around recruitment, funding and service provision that require prac6cal, innova6ve and community driven solu6ons. The Engaging Young Leaders on Aged Care Boards project adopts a unique approach. The project aims to strengthen the leadership and governance of the aged care sector by encouraging and facilita6ng the involvement of emerging leaders onto Boards. This approach not only supports the succession planning of aged care Boards but also adds to their overall diversity, thus encouraging various perspec6ves, facilita6ng robust discussions and decision-‐making. Whilst diversity on boards is a topical issue, there is no denying that it provides an opportunity to further enhance the board’s independence and objec6vity adding value to its func6on. Over the last two decades gender has taken top spot in research and discussion on board diversity with age diversity receiving liJle aJen6on. This paper presents a case for age diversity by exploring the engagement of younger Directors on aged care boards. The Need for Urgency Over the past ten years the significance of the not-‐for-‐profit industry in Australia has come into the spotlight with the sector contribu6ng $43 billion to Australia’s Gross Domes6c Product (Produc6vity Commission, 2010). As the sector gains momentum the governance structure within not-‐for-‐profit organisa6ons has been ques6oned, including the composi6on of Boards. The role of a not-‐for-‐profit board is an important one and tradi6onally board members hold a similar industry background, culture, gender and age. This is s6ll reflected in many boards today. Currently, 62% of board members on publicly listed boards across Australia are 50 years old or above (including 29% that are 60 and above), with only 12% being under 40 years of age (Australian Government Corpora6ons and Markets Advisory CommiJee; 2009). Organisa6ons con6nue to look to more experienced, well trusted, Board Directors to lead as a strategy to mi6gate the risk for the organisa6on. On face value, younger Directors may represent a lack of understanding pertaining to the governance roles and responsibili6es of Board Directors. However, as the demand for aged care services increase, maintaining the status quo and not exploring innova6ve ways to build and sustain strong not-‐for-‐profit organisa6ons presents as the greater risk. Given that 29% of Board members are over the age of 60, not-‐for-‐profit organisa6ons, especially in the aged care sector, have the poten6al to lose a third of their Board over the next five to ten years. In such a compe66ve climate, where funding and resources are becoming scarce, succession planning for the Board is paramount in ensuring the transfer of their knowledge and
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experiences to younger Directors. This is an opportunity to provide a plamorm for them to gain experience and learn from older and experienced Board members. General Peter Cosgrove endorsed fast-‐tracking the development of younger non-‐execu6ve directors by adding a place for an emerging director on all Boards (Australian Ins6tute of Company Directors, 2011). These emerging Directors would access Australia’s top directors, paving the way for future leaders who were veJed through mentorship with the country’s previous genera6on of successful leaders. Cosgrove explains that “no amount of director training or fancy networking events for emerging directors will ever beat the learning from being on a board and mixing with top directors in real ?me” (Australian Ins6tute of Company Directors, 2011). If the benefits of encouraging and facilita6ng board diversity within the aged care sector would ensure its sustainability we have to ask ourselves: Is our perceived risk of greater diversity on Boards clouding the opportunity for innova6on? There are no easy answers however, lets start by exploring the benefits of engaging younger Directors in the aged care sector.
Benefits of a Young Director Diversity of skills, knowledge and experience Diversity is now recognised as a key strength for any Board. It is commonly argued that different genera6ons are exposed to different economical, technological and poli6cal climates that impact their perspec6ve, ideas, behavioural styles and a]tude (Østergaard, Timmermans and Kris6nsson, 2011). For instance, Genera6on Y, commonly described as those born between 1976 and 1991, are generally perceived as highly educated, well travelled and connected to technology changes that have happened over the last twenty years in comparison to older counterparts (Taylor, 2003). In contrast, older genera6ons may be more experienced with business in an offline context, having greater experience in this field across the span of their career. In addi6on, age diversity has the capability of transforming board performance given that directors of different ages will not only provide differing insights but are connected with varying social networks. These differences in exper6se, if harnessed, become strengths for not-‐for-‐ profit Boards. Strengthening Succession Planning The importance placed on succession planning is emphasised by Wolfred in the Building Leaderful Organisa6ons: Succession Planning for Nonprofits report that “It is cri?cal to ensuring the viability of an agency in the event of a key manager’s unplanned absence. An organisa?on that gives ongoing aDen?on to talent-‐focused succession planning can be more nimble and
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flexible, having the skills and capacity at hand to meet whatever challenges may arise. In turn, the execu?ve’s job becomes more ‘doable’ because leadership is shared”. (Wolfred 2008, p5) Managing succession effec6vely requires Boards and organisa6ons to be proac6ve as Davis (2007 p. 34) explains in a Young Nonprofit professionals report “Eventually, Boomers will re?re and there will be leadership gaps which boards will need to fill. Rather than act defensively, boards and execu?ves can take a proac?ve approach in preparing for the inevitable future. Without prepara?on, nonprofits are likely to face greater hardship, poten?ally limi?ng services nonprofits provide which the government and for-‐profit sectors do not” .
“Eventually,
Boomers will
retire and there
will be leadership
gaps which Boards will need to fill.
Rather than act defensively, Boards and
executives can
take a proactive approach in
preparing for the inevitable future.”
The impact of poor planning can be detrimental not only to the Board but also more broadly on the performance of the organisa6on. Planned and organised long-‐term succession planning not only avoids leadership gaps, but also helps investors remain confident in the organisa6on as it moves forward. Older members can counsel and teach the history and philosophy of the organisa6on to the young members, helping retain the mission and core values of the organisa6on for genera6ons to come. It is a topic that needs to be taken seriously by all Boards par6cularly in the community sector whereby access to appropriately qualified members may be restricted. George (2013) discusses the importance of succession for boards in the report, Board Governance Depends on Where You Sit and recommends Boards to conduct leadership succession planning sessions to review candidates and ensure that they have access to required experiences to prepare them for the role. (George, William, 2013) Specifically he states “In these reviews, the age of the poten?al top leaders maDers. They should not be so close in age to the CEO that they would be unable to have a sufficiently long tenure as CEO prior to reaching mandatory re?rement, nor can they be so young that there simply isn’t ?me for them to have the experiences they need for such a major task. Thus, the process of iden?fying candidates for top roles must start early—typically, with leaders who are barely 30 years old.” (George, William, 2013). What an insight. Succession is not about filling the gap without any prior thought or analysis, it is about thinking beyond the now and looking at the needs of future genera6ons.
Engaging Genera*on Y across the Aged Care Sector There is no denying that the aged care sector and the services that it provides to the community are important. The reach of issues pertaining to aged care and the future it faces is not only per6nent to the current consumers of these services but for the future genera6ons that will need to
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service this growing industry. The need to engage younger genera6ons across the sector is one that not only requires considera6on but ac6on. Why? In today’s digital world Genera6on Y are connec6ng far more than the previous genera6ons. They have adopted social media in far greater numbers than previous genera6ons. This outreach into not only the local community but also the global community could benefit organisa6ons. It provides an avenue to access the outside perspec6ve of a global community, of millions of people who are passionate about the cause. Younger genera6ons are known to be increasingly difficult for older managers to engage and retain as employees. However, organisa6ons that wish to grow their younger employee base will benefit from a younger perspec6ve on their Boards and CommiJees to inform them on the changing expecta6ons and mo6va6ons of younger employees. Younger members are ouen more adept at aJrac6ng youth in the community which can improve collabora6ve efforts and aid the development of intergenera6onal partnerships. Collabora6on can help reduce turnover rates of younger volunteers and workers. Adding a younger perspec6ve will also encourage innova6on and adop6on of strategies that the older members are not accustomed to. The history embedded into the company will not be lost. It will be passed along from the older members to the younger members.
Collaboration can help reduce
turnover rates of
younger volunteers and workers.
What does this mean for a Board? The role of a Board member is not one that is taken lightly. It comes with associated responsibili6es that ouen have financial and legal implica6ons. Boards ouen have input into the strategic direc6on of the organisa6on, with the poten6al to impact all levels and func6ons. In saying this, it does
Case Study: Tanya Dupagne Tanya Dupagne was elected as the youngest Councillor ever to the City of Kwinana’s Local Council at 28 years old. Despite her young age, she has already worked as a program coordinator for mul6ple Summer Camps in America and Canada with under privileged and at risk children, volunteered in South Africa and Vietnam and founded various arts projects back home in Kwinana including Dance groups, choir groups and Boys and Girls Clubs. In 2012, she received the coveted Churchill Fellowship to explore domes6c violence programs interna6onally to share with organisa6ons such as The Global Good Founda6on where she was previously Chief Execu6ve Officer.
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Case Study: Alexis Guillot Alexis Guillot, 30 years old, is an experienced not-‐for-‐profit company director, and works as a governance and risk advisor to some of Western Australia’s largest companies and statutory authori6es. Most recently, Alexis has contributed to the development of Western Australia’s public sector governance framework, assisted a large government department with their risk management framework, assisted a number of leading energy and resources companies with their risk and con6nuity readiness, delivered the Governance Manager products for various organisa6ons in Australia and Singapore, and undertaken a variety of other high-‐profile engagements.
not mean that organisa6ons should automa6cally dismiss younger Directors. Young Directors have a number of strengths that can greatly benefit a Board and the role it takes within an organisa6on. The following case studies provide valuable insight into the possibili6es and poten6al benefits for engaging young Directors:
Like in every generation, there would be people that have the appropriate knowledge and experience to contribute to a Board and those who don’t.
The effec6veness of a Board is largely determined by its composi6on and diversity is key to crea6ng successful boards (The Eversheds Report: The Effec6ve Board, 2013). However, when considering the composi6on of a board every prospec6ve Board Director must be assessed on the individual contribu6on they could make to the organisa6on and this would be weighed up again the poten6al cost of having them on Board. Like in every genera6on, there would be people that have the appropriate knowledge and experience to contribute to a Board and those who don’t. Young Directors who would be most appropriate to sit on Boards would possess their following characteris6cs: • • • • •
Experienced in business or professional services Experienced in community volunteering and leadership Highly connected in the community Possess certain skills such as public speaking, Engaged as a thought leader in community, government and business consulta6ons
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Barriers Myths and misconcep6ons about prospec6ve young Board Directors and the value young leaders can add to an aged care Board can be a barrier. Below are some of the common misconcep6ons about prospec6ve young Board Directors. No Interest in Aged Care It may be thought that younger leaders have no interest in aged care, but it’s certainly not what the Engaging Young Leaders on Aged Care Boards project has experienced. Given the increased life expectancy, Genera6on Y have developed strong bonds with their grandparents, maybe more than any other genera6on. Many have experienced having their grandparents engage with different aged care facili6es and services and have shown a deep interest in contribu6ng to this sector. No Time or Interest to contribute to Boards There is an increasing number of young people on community Boards in sectors such as youth, health, arts and environment. Aged care is actually a sector that’s lagging behind other sectors in maximising the poten6al of young leaders. Many young leaders have a real interest in contribu6ng their leadership to causes they feel passionate about and are willing to give 6me and energy towards these causes.
Myths and
misconceptions
about prospective young Board
Directors and the
value young leaders can add to an aged
care Board can be a barrier.
Organisa6onal barriers to engaging younger leaders: Perceived Lack of Board and Business Experience Our percep6ons play a great role in the opportuni6es we see. At an organisa6onal level our previous experiences, and the view to mi6gate risk where possible fosters a perpetual cycle of the status quo and emphasises the influence that culture has on innova6on. Board culture of the organisa6on can some6mes be a barrier to recrui6ng young Directors. For example, current Board Directors may only look for prospec6ve Board Directors based on 6me served or years of business experience which keeps younger members from ge]ng access to the Board room.
Younger Board Directors may also have experiences that can add value to the board regardless of their lack of seniority.
Undoubtedly, Board Directors with many years of business and Board experience are valuable to the organisa6on. However, younger Board Directors may also have experiences that can add value to the board regardless of their lack of seniority, such as global trends, diverse industry experience, online technologies and different leadership approaches. To build the next genera6on of leaders, aged care organisa6ons must begin to factor in their budgets leadership and Board accessibility ini6a6ves. No Room at the Top There is a lot of pride in today’s organisa6onal leaders. For older members who have had tougher experiences, there can be a sense of hos6lity towards younger members who they feel haven’t paid their dues. They look down on the younger members for not having put enough 6me in or goJen their hands dirty enough to deserve a seat on the board. This kind of a]tude is divisive in itself. It may not be spoken, but the atmosphere created by this kind of thinking will push younger members away. Founding members may also have trouble le]ng go. For those who were at the helm when the organisa6on was founded may have the hardest 6me turning over the reins. They can become possessive and protec6on of the founda6on that they believe in some cases that they build on their own. Because of their deep dedica6on, they may ouen fail to delegate responsibili6es to others for fear that the tasks won’t be completed to the standards that they have set. This type of leader thinking is the very thing that creates a leadership gap when finally move on from the organisa6on. The leaders who follow them will not have had the benefit of learning those tasks before they moved on, which is an enormous disadvantage for the organisa6on. Age Discrimina*on Young Board Directors can ouen be asked about their age with comments and jokes ouen follow if they say they are below 35. Through dialogue that
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could be considered as jovial, older members are aliena6ng younger members by indirectly de-‐valuing the younger leaders contribu6ons before they are even made. This also cuts off the lines of communica6on. Younger members who felt like they haven’t been heard will move on to other opportuni6es. It is valuable for organisa6ons to take a posi6ve stance in rela6on to young employees, who poten6ally could become future directors. If leaders in the organisa6on, including the board, do not see value in engaging with the poten6al of young people then it is difficult to expect others to do the same. Boards and senior leaders in organisa6ons need to take a posi6ve step in paving pathways for young individuals who demonstrate the necessary skill set to take on Director posi6ons. There may also be a lack of respect for academic training. Baby boomers, who ouen made change by working in the trenches, don’t always value the training, graduate degrees and cer6fica6ons that younger members may have. They value hands-‐on experience without realising that they are cu]ng off the younger members from gaining that experience by not giving them a voice on the board.
Board and senior leaders in organisations need to take a positive step n paving pathways for young individuals who demonstrate the necessary skill set to take on Director positions.
Closed Pipelines to Boards Access to Boards and their recruitment processes is also a barrier to engaging young Directors. Tradi6onally, pipelines may have included religious affilia6ons or community service clubs. The lack of variety in the pipelines or appointment processes ouen results in organisa6ons not considering a younger Board Director. Young people who are interested in such opportuni6es do not know where to go, how to access the process or even where to start. In these instances, organisa6ons are rendering themselves invisible to poten6al candidates that are passionate, ac6on-‐ oriented and that could provide a new perspec6ve.
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Age Diversity -‐ Next Fron*er on Boards
The term, Reverse Mentoring, is commonly known as an approach that acknowledges that everyone brings some knowledge to the table.
In the Diversity on Board of Directors report , it is noted that Boards with an ac6ve and open approach to board composi6on and renewal including greater diversity on Boards are linked to greater long-‐term organisa6on performance (Australian Government Corpora6ons and Markets Advisory CommiJee; 2009). Age diversity can benefit an organisa6on the same way that cultural or gender diversity does. Different skills, experiences, social networks and perspec6ves enrich debate and allows for more construc6ve analysis. The report reveals that greater diversity enhances the effec6veness of the board and can improve the organisa6on’s financial performance. However, the true results derive from the collec6ve a]tude and ac6on from the Board. If the Board and the sector are open to engaging young Directors, if they foster construc6ve conversa6on and learning, then the poten6al impact for the organisa6on extends beyond its financial performance. Intergenera*onal Partnerships Engaging diverse genera6ons on Boards allows many not-‐for-‐profit organisa6ons the opportunity to leverage social and human capital, crea6ng scope for the development of intergenera6onal partnerships. The term, Reverse Mentoring, is commonly known as an approach that acknowledges that everyone brings some knowledge to the table. Jack Welch, CEO of GE, popularised this concept with younger less-‐experienced employees
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connec6ng with older, more experienced execu6ves to share their perspec6ve and experience. Senior execu6ves can stay up-‐to-‐date with business technologies and new workplace and community trends, while younger employees gets to see the bigger picture and understands the key challenges of the organisa6on. This approach also enhances mul6-‐ genera6onal engagement through building trust and understanding between the genera6ons and recognising that we all come with different strengths. The value of such rela6onships on a Board provides an avenue to enhance such rela6onships across all levels of the organisa6on.
True diversity is not about adding a particular
percentage of
member to a Board, it is about adding
new perspectives.
Ac*on Steps So what can an organisa6on do to move towards a more inclusive, representa6ve and effec6ve Board leadership team? Here are few strategies to get you started.
It is important to
not only review its members, but also the structure of the Board as
sticking to rigid
structures can prevent the
required flexibility and adaptability
needed to suit the movement of the organisation.
Beyond Tokenism Recrui6ng younger board members does not mean accep6ng younger individuals for the sake of diversity or purely to train them to be leaders that mimic the set of leaders already in place. The aim of this project is not to replace all Board Directors with young Board Directors either. True diversity is not about adding a par6cular percentage of membership to a board, it is about adding new perspec6ves. The case here is not that all young people should automa6cally qualify for a Director posi6on, but that age is not considered a barrier in determining a suitable candidate. Younger members should be appropriately veJed in the same way that any Board Director would. Many younger leaders are highly educated including graduate and post-‐graduate degrees, have interna6onal experience, have been highly involved in the NFP sector and are keen to learn and grow. Breaking a tokenis6c mentality is vital for the succession of the Board and also to the par6cipa6on of a young Director. Inclusive and Collabora*ve Cultures Younger members who don’t feel valued or that they are being heard are not afraid to walk away and in some cases, start their own organisa6ons. Over the past ten years we’ve seen an amazing amount of not for profit organisa6ons started by Genera6on Y leaders such as Oaktree Founda6on, Australian Youth Climate Coali6on and Useful. They’ve learned this valuable character trait from the very genera6on that are some6mes ignoring their value in the boardroom. Instead of losing younger members, age care organisa6ons should adopt an inclusive culture to engage and foster their innova6ve ideas. Recrui6ng younger members should not be thought of as an extra task or an addi6onal ini6a6ve to add to the agenda. It’s not a secondary diversity strategy. Recrui6ng younger members is cri6cal to the longevity of the organisa6on. Strategic planning should include including recrui6ng younger board members for: • • • • •
Strategic leadership development Developing more effec6ve processes Establishing the vision of the nonprofit organisa6on Se]ng long-‐term goals Iden6fying present and future needs
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Assess your Board processes and composi*on Boards that regularly assess their own processes and Board composi6on can be linked to greater organisa6onal outcomes. On a regular basis a Board should reflect where it currently stands and whether its composi6on is relevant to the future needs of the organisa6on. It is important to not only review its members, but also the structure of the board as s6cking to rigid structures can prevent the required flexibility and adaptability needed to suit the movement of the organisa6on. A Board Composi6on Review Informa6on paper could be one way to consider the current Board – assessing the age, gender, cultural background and industry experience of your current Board and then assess the gaps. Taking such an approach would improve overall governance and work toward sustaining achievements through successive genera6ons and board membership. Encouraging an Open Appointment Process As men6oned previously, many young prospec6ve Board Directors may be overlooked due to narrow or closed appointment processes. Nowadays there are a range of avenues to seek highly engaged young leaders that would be an asset on any Board.
Mentoring is one of the most valuable ways in which a transfer of
knowledge and
experience takes place.
Some avenues include: • • • •
Youth branches of industry associa6ons such as Young Lawyers and Young Accountants Youth Awards programs Students studying post graduate programs such as the Masters in Business Leadership Youth and Community organisa6on Boards
Awareness of our cogni6ve biases is the first step in overcoming them. As a Board it is impera6ve that members discuss some of the percep6ons that they have around engaging young Directors. An open discussion, encouraged through a safe environment is a definite way to iden6fy strategies to improve the Board’s composi6on, specifically in the way in which it engages with prospec6ve candidates. Mentoring/Skills Development Suppor6ng projects such as the Engaging Young Leaders on Aged Care Board that mentor and develop the skills of prospec6ve Board members will help close the experience gap of young leaders. Organisa6ons such as Southcare, host their own leadership development programs that engage employees as well as community members. Mentoring is one of the most valuable ways in which a transfer of knowledge and experience takes place. The use of real examples and case
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studies enhances learning and develops confidence. Trainee Director posi6ons, such as those recently launch by Swancare, are a great way to encourage young people to become involved in aged care whilst crea6ng a collabora6ve and open learning environment. The future leaders of the nonprofit organisa6on may already be within its ranks. The future of the organisa6on depends on key leaders passing along their knowledge and mentoring younger members as well as seeing the innova6ve outcomes that come from intergenera6onal partnerships. Including Board development in the strategic planning of the organisa6on will ensure that there is never a leadership gap when the older members decide to re6re. Older members can re6re with confidence that their legacies will not be lost and the organisa6on will con6nue the good work they have already started. Expansion of leadership discussions If currently appoin6ng or crea6ng a posi6on for a young Director is not possible for your organisa6on, there is s6ll opportunity to access younger leaders through other strategies such as think tanks, roundtables or youth commiJees. The Board may consider engaging a representa6ve from a youth organisa6ons to act in an advisory capacity. In doing so the Board taps into the experience and knowledge available and paves a future for younger leaders to engage with the organisa6on and poten6ally step onto the Board once a rela6onship has been established.
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Conclusion -‐ Working on the Same Team Despite the benefits of having younger members as part of a Board, many not-‐for-‐profit organisa6ons minimize the involvement and do not ac6vely seek out younger members. Once the aged care organisa6on opens its Board to younger members, it will enjoy many benefits. Inclusive conversa6ons will inspire more inclusive solu6ons that support all the people that are impacted by the decisions the organisa6on makes. The conversa6ons will help both the younger and older leaders get a beJer understanding of what the organisa6on is capable of and how to meet the needs of the cons6tuents it serves. Age diversity on Boards is a topic that s6ll requires considerable debate and research. Whilst there is a significant amount of skep6cism around the need to have younger members, as well as concerns of isola6on and underperformance, there is reason as discussed in this paper, to engage with young Directors par6cularly in the not-‐for-‐profit sector. This case has not only demonstrated the benefits of engaging young Directors on aged care board, but also listed a number of prac6cal recommenda6ons to assist in this process. Taking ac6on is essen6al for the longevity of the aged care sector. For this industry to move forward it needs to become accustomed to working with young talent and believe that younger leaders can handle the next level of responsibility and allow them to evolve.
* Show your leadership in the industry by contribu6ng to the Engaging Young Leaders on Aged Care Boards project. Register on the project website at hJp://youngleadersinagedcare.ning.com. * You can also join the two LinkedIn groups established by the Young Leaders Program -‐ search for ACORNS and CommunityBoard Connect.
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References: Adams, Tom. 2010. Sustaining Great Leadership: Succession Planning Tom Adams. First NonProfit Founda6on Available at hJp://www.transi6onguides.com/images/stories/resources/sustaining.pdf American Council on Educa6on and American Associa6on of University Professors. 2000. Does Diversity Make a Difference? Three Research Studies on Diversity in College Classrooms. Available at hJp://www.aaup.org/NR/rdonlyres/97003B7B-‐055F-‐4318-‐ B14A-‐5336321FB742/0/DIVREP.PDF Australian Government Corpora6ons and Markets Advisory CommiJee; 2009. Diversity on Boards of Directors. Available at hJp://www.camac.gov.au/camac/camac.nsf/byHeadline/PDFFinal
+Reports+2009/$file/Board_Diversity_B5.pdf Australian Ins6tute of Company Directors. 2011. Q&A with General Peter Cosgrove Available at hJp:// www.companydirectors.com.au/Director-‐Resource-‐Centre/Publica6ons/Company-‐Director-‐magazine/ 2011-‐back-‐edi6ons/June/Interview-‐QA-‐with-‐General-‐Peter-‐Cosgrove Davis, Emily. 2007. Young Nonprofit Professionals: Preparing the Path for Leadership. Available at hJp://download.2164.net/PDF-‐newsleJers/preparingthepath.pdf Eversheds. 2013. The 2013 Eversheds Board Report. Available at hJp://www.eversheds.com/global/ en/what/publica6ons/board-‐report2/index.page George, William. 2013. Board Governance depends on where you sit. Available at hJp:// www.mckinsey.com/insights/leading_in_the_21st_century/ board_governance_depends_on_where_you_sit Østergaard, C, Timmermans, B & Kris6nsson, K 2011, ‘Does a different view create something new? The effect of employee diversity on innova6on’ Research Policy, vol 40, no 3, pp. 500-‐509. Produc6vity Commission 2010, Contribu6on of the Not-‐for-‐Profit Sector, Research Report, Canberra Spakur Dagsson; Emil Larsson. 2011. How Age Diversity on the Board of Directors affects Firm Performance. Available at hJp://www.bth.se/fou/cuppsats.nsf/all/ 9633d511deec8b15c12578bc00484365/$file/BTH2011Dagsson.pdf Taylor, H.G., 2003. Including Young People on Non-‐profit Boards of Directors. PA Times, Available at hJps://groups.cob.ohio-‐state.edu/•f/files/Young-‐people-‐on-‐boards.pdf Terry, Alexis. 2008. Next Genera?on and Governance. Available at hJp://www.cof.org/files/ Documents/Family_Founda6ons/Next-‐Genera6on-‐Philanthropy/Next-‐Gen-‐and-‐ Governence_BoardSource.pdf
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Wolfred, Tim. 2008. Building Leaderful Organisa6ons: Succession Planning for Nonprofits, Annie E Casey Founda6on. Available at hJp://www.aecf.org/~/media/Pubs/Other/B/ BuildingLeaderfulOrganiza6onsSuccessionPlann/Building%20Leaderful%20Organiza6ons.pdf hJp://youngleadersinagedcare.ning.com/
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Need help implemen*ng these ideas? Alicia Cur6s can help your organisa6on effec6vely implement the recommenda6ons in this report from facilita6ng emerging leaders programs for young employees, establishing reverse mentoring partnerships or brainstorming your own unique project. As an example Alicia regularly provides the following services: 1. Emerging Leaders Programs Alicia can develop and facilitate a customised leadership development program for your young professionals. The basis is eight workshops, all of which have been developed from the unique challenges facing young professionals in the workplace, then the program can include other ac6vi6es such as excursions, showcases, speakers, prac6cal challenges and more. 2. Mee*ng of the Minds Bring together eight young professionals to foster and mentor at a monthly Mee6ng of the Minds. These sessions are unlike any normal workshop, they focus on the individual workplace challenges of par6cipants and provide monthly accountability on their professional goals in a safe environment. Mee6ng of the Minds are three hours long and run monthly. They challenge par6cipants to share their goals, overcome their workplace challenges and review their learning and development plans. 3. Management Presenta*ons Alicia can present on the characteris6cs of Genera6on Y employees and how to maximise their poten6al in the workplace. 4. Join Emergen Alicia is the founder of Emergen, a collabora6ve online community for emerging leaders. Encourage your young professionals to register for Emergen -‐ www.emergen.com.au for a wide range of resources, events and opportuni6es. Alicia can provide all these AND MORE. Contact Alicia to start the conversa6on about how to engage your emerging leaders. Contact: Alicia Cur6s -‐ 0413 565 338 or alicia@aliciacur6s.com
aliciacurtis P.O Box 7273, Karawara WA 6152 + 61 8 9313 2880 alicia@aliciacur6s.com www.aliciacur6s.com