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The Top 3 Reasons Why Goldman Sachs is Right in saying Diversity in the Boardroom Matters for Performance

“Goldman Sachs CEO David Solomon said on Thursday that the bank would refuse to take a company public unless it had at least one ‘diverse’ board member. … Diversity in the boardroom matters for performance”Fortune
We’re encouraged and appreciate seeing Goldman Sachs share our long held view that diversity in the boardroom matters for performance. We are the leader in identifying, recruiting, developing, and onboarding more diverse executive talent for senior-level appointments in the C-suite and boardroom, ensuring long-term success for our corporate and nonprofit clients as well as the candidates whose careers we champion.   To quickly touch on the top 3 reasons Goldman Sachs is right:
 1. Invaluable diverse perspectives is a core reason why diversity in the boardroom matters for performance. We have long known that homogeneity breeds ‘groupthink’, thwarts innovation and reduces the quality of decision-making. What is becoming increasingly clear is that diverse perspectives and experiences improve an organization’s insights into areas that are critical to the development of strategy, markets and risks.  Progressive companies began improving board diversity because they felt it was the right thing to do. Many have since reported a heightened focus on innovation, improved financial results, enhanced corporate reputation, all making it clear that diversity in the boardroom matters for performance.
2. Stakeholder trust and reputation. When we think of brands with outstanding reputations, they have often earned the trust of a broad spectrum of constituencies. Their shareholders, employees, customers, and business partners, as well as the communities in which they operate, all feel that the company understands and respects them. One way a company builds trust is by making sure that the C-suite and the board are a fair representation of its stakeholders, and that key constituencies can see themselves reflected back in the leadership of the company.  This “trust”, forged between all involved parties is; 1)  critical in overcoming the inevitable “rough patches” and missteps businesses occasionally endure and;  2)  clear evidence diversity in the boardroom matters for performance.
3. A competitive advantage.  A range of perspectives is critical for a board to help the C-Suite and management anticipate emerging risks and implement strategic pivots.  Companies that can mitigate risks and effectively pivot –  can optimize performance.  Moreover, trusted companies that have demonstrated their commitment to diversity and inclusion at all levels of the organization are often able to attract and retain top talent better than peers. The value of diversity on a company’s performance has been validated by think-tanks like Catalyst and the Peterson Institute as well as also from companies like Credit Suisse, McKinsey, Catalyst and Deloitte all reaching the same conclusion that diversity in the boardroom matters for performance.
Search is the foundation of our business and frequently marks the beginning of our relationship with our clients. Our cutting edge technology, robust database, and vast network provide a strong launching point and unparalleled experience for clients seeking diversity throughout all levels of their organization.  Reach us if you would like to have a more comprehensive conversation on how we can serve you.

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Janice Reals Ellig

Chief Executive Officer

As the head of the Ellig Group, Janice is dedicated to increasing the placement of women and diverse candidates on corporate boards and in C-suites by 2025. Janice joined the legacy firm in 2000 and became Co-Chief Executive Officer in its transition to Chadick Ellig in 2007; she assumed sole ownership of the company as the Ellig Group in 2017 with a new focus on Reimagining Search. Prior to her career in executive search, Janice spent 20 years in corporate America at Pfizer, Citi and Ambac Financial Group, an IPO from Citibank, where she was responsible for Marketing, Human Resources, and Administration.

Heralded by Bloomberg Businessweek as one of “The World’s Most Influential Headhunters,” Janice is often consulted for her expertise and her commitment to gender parity, inclusion, and diversity. She frequently appears at speaking engagements and as a media guest, and she has penned multiple articles for outlets such as Directors & Boards, Directorship, Corporate Director, The Huffington Post, and Forbes.com. Janice also co-authored two books: Driving The Career Highway and What Every Successful Woman Knows, acknowledged by Bloomberg Businessweek as “the best of its genre.”

A tirelessly active member of the industry and champion of her causes, Janice is Founder of the Women’s Forum of New York’s Corporate Board Initiative and its signature event, Breakfast of Corporate Champions. Since 2011, Janice continues to spearhead this event to honor companies committed to board diversity and to encourage CEOs to sponsor board-ready women for the Women’s Forum database. (LINK: www.womensforumny.org).

Janice is personally committed to several NFP organizations: Board Director of the National YMCA and Past Chair of the YMCA Board of Greater New York; Trustee of the Actors Fund and Committee For Economic Development (CED); Incoming Chair, University of Iowa Foundation; Women’s Forum of New York Past President and Chair of the Corporate Board Initiative; member of the Steering Committee, US 30% Club and The Economic Club of New York.

In recognition for her many philanthropic activities, Janice received the University of Iowa Distinguished Alumni Award in 2011 and the Association of Executive Search Consultants (AESC) Eleanor Raynolds Award for Volunteerism in 2008. Named one of the “21 Leaders for the 21st Century” by Women’s eNews, she was also a recipient of the Channel 21 Award In Excellence for her contribution to “Excellence in the Economic Development for Women.”

“Listening to our clients’ needs, learning their business and understanding their culture is how we present the best talent and provide  a competitive advantage. We place candidates with the character, competencies, commitment, (intellectual) curiosity and courage to make a difference. Our goal is always to go beyond the expected and deliver valuable advice, measurable results and great talent!”

– Janice Reals Ellig

  • Champion of gender parity, diversity, and inclusion
  • Industry expert, speaker, and author
  • Founder of the Women’s Forum of New York’s Corporate Board Initiative
  • Committed board and committee member and philanthropist

T: (212) 688-8671 ext. 226
E: Janice@ElligGroup.com