In this post, we will explore why inclusive boards outperform competitors, how developing female talent plays a central role, and why initiatives like our Women's Leadership Programme are vital for companies that want to thrive.

Inclusive Boardrooms, better outcomes

1. Better decisions through diverse perspectives

• When people come from different genders, cultural, and professional backgrounds, they bring different frames of reference. This leads to more robust debates and more creativity.
• For example, studies have shown that board gender diversity improves transparency, accountability, and lowers risk.

 2. Stronger financial performance

• Firms with more gender diversity on their boards tend to have better financial outcomes.
• Boards with female representation are also better at holding CEOs accountable. A recent study found that gender‐diverse boards were much more likely to replace underperforming CEOs, and that this brought higher performance over subsequent years. 

3. Enhanced ESG, sustainability & social responsibility

• Diverse boards are often more responsive to environmental, social and governance (ESG) concerns. They tend to listen to more stakeholders and have broader ethical perspectives.
• In many sectors, customers, investors, and regulators increasingly expect companies to act sustainably and responsibly—and diversity in governance helps deliver that.

4. Better risk management and resilience

• A board whose members think differently is more likely to spot risks, question assumptions, anticipate disruptions.
• During periods of crisis (financial, reputational, industry disruption), companies with diverse leadership have been shown to do better on measures like revenue/expense ratios, risk adjusted returns, regulatory compliance. 

5. Threshold matters: Not just having one, but many

• It’s not enough to have a single woman on the board as a token. Research suggests that until there is more than one, the “token” board member may feel isolated or less able to influence, and other board members may (consciously or not) not fully engage with her input. 
• Once a threshold (say two or more) is reached, the positive effects multiply.

Why companies should invest in developing female talent

All the advantages above depend on having women who are not only present but are empowered, visible, prepared, and supported. That means:

• Succession planning & pipeline development: Ensuring that mid management and senior leadership are prepared to step into board or executive roles.
• Training, mentoring, exposure: Providing experiences that build board level competencies: strategic thinking, financial literacy, stakeholder management, negotiation, etc.
• Removing structural barriers: Flexible working, addressing unconscious bias, ensuring fair access to high visibility assignments.
• Failing to do this risks having seats filled but without genuine influence, or having women drop out before they reach board ready levels.

How our Women's Leadership Programme can help

• What it is: Our Women's Leadership Programme is designed to develop female leadership talent, preparing women for senior roles and helping companies build stronger pipelines into board and executive positions.
• What it offers: Through coaching, training, skill development and exposure to other women, the programme helps participants build the confidence, skills and network needed to take on high stakes leadership roles.
• How it links to board performance: By preparing women earlier in their leadership journey, companies are better able to reap the performance benefits of diverse boards. When boards are drawn from a strong, diverse pipeline, the “threshold” effects kick in, and the quality of decisions, risk management, innovation, ESG performance follow.

Why this should be a strategic priority

For companies who care about long term sustainability, growth and reputation, investing in gender & background diversity isn’t optional—it’s essential. Here's what we recommend:

1. Audit your board / leadership diversity: What’s the current mix? Where are gaps?
2. Commit to measurable goals: Set targets for female representation at leadership and board levels.
3. Invest in leadership development early: Support women in middle and senior management, not just at board or “C‐suite” level.
4. Ensure inclusion: Diversity without inclusion risks being tokenism and can backfire. Inclusion is where voices are heard, respected, and embraced so that they positively impact the bottom line.
5. Partner with programmes like Women's Leadership Programme: Tap into external expertise, networks, training to accelerate development of female talent.

In short, mixed boards of different genders and backgrounds are about more than fairness—they’re about effectiveness. They make companies more innovative, resilient, accountable, and better able to succeed in a complex world. But without investment in female talent, the promise of diversity remains just that—a promise rather than a plan.
 
That’s why programmes like our Women's Leadership Programme are so important. They bridge the gap between aspiration and reality. Companies that invest in developing their female leadership today will be the ones leading their sectors tomorrow.

Talk to our team

To find out more about our next programme, head to: https://womeninleadership.prs.uk.com/