Government Non-Execs: No progress on racial equality
The Government Lead Non-Executive Director Lord Browne recommends keeping enhanced departmental boards, although for the third year running his annual report highlights that “the number of non-executives from black or minority ethnic (BME) backgrounds remains disappointingly low” with no new BME board appointees since the previous year. There are now 68 non executives across 17 departments. As of April 2014 there were 23 female non-executives, representing 35% of the total, compared to 36% last year. Women remain better represented on departmental boards than on the boards of FTSE100 companies but black and minority ethnic individuals continue to remain invisible in Whitehall.
Diversity UK stated that “government boards are failing to make progress on racial equality because they are focusing simply on gender diversity and not considering the wider benefits of equality and inclusion particularly at a time when the UK’s ethnic communities now account for 14% of country’s population.”
Get the talent management right for the Top 200
Lord Browne’s report says that enhanced boards, with external non-executives helping to drive more effective management of government departments, are now well-established in Whitehall and “should be here to stay”. Lord Browne’s cited his separate report on talent management in the civil service saying that it should “focus on the top of the organisation first. The civil service must get talent management right for the Top 200 if it is to become part of the organisation’s ‘DNA’.” However among the recommendations of that report was that “no new processes should be launched. Talent management requires that the right strategy, the right processes and the right culture are in place. The strategy and processes are generally fit for purpose. The changes that are now needed are about behaviour and leadership.” Diversity UK’s ‘Beyond the Glass Ceiling: Representation in Public Appointments’ published in November 2013 showed that the majority of black or minority ethnic individuals are shunning public sector roles like those on departmental boards.
Change in behaviour and leadership
Diversity UK agrees that what is needed is a change in ‘behaviour and leadership’ but asserts that more needs to be done to attract the right talent in the first place. Among its recommendations are racial diversity targets, ethnic-only short lists, a reduction in the number of re-appointments and new approaches to identifying, recruiting, mentoring and nurturing BME talent. “We would challenge the recommendation that [Civil Service] strategy and processes are generally fit for purpose. To quote the old adage ‘if you keep doing the same thing you will keep getting the same result’, so we would argue that it is time for fresh thinking on the issue, otherwise the number of non-executives from black or minority ethnic (BME) backgrounds will remain disappointingly low for decades.”
Sixty-eight leaders from the private, public and voluntary sectors act as non-executives, providing advice and scrutiny to support the government’s reform programme and greater efficiency. Lord Browne’s report says enhanced boards with prominent roles for non-executives have significantly improved the 5 priority areas identified in the Corporate Governance Code:
- strategic clarity
- commercial sense
- talented people
- results focus
- management information
Lord Browne sees important improvements in the leadership and management of major projects. The Major Projects Authority (MPA) has strengthened its reviewing processes, and the Major Projects Leadership Academy is working to enrol 340 participants by the end of 2014, using private sector best practice to raise competence and skills.
Despite the progress made, Lord Browne says it is incomplete and non-executives have more to contribute. The report’s main recommendations build on progress in 3 priority areas identified by Lord Browne in his 2012 to 2013 report:
- the capability of boards and departments
- major projects and procurement
- management information
Minister for the Cabinet Office Francis Maude said: “I have seen for myself how non-executives’ drive and expertise are helping government operate in a more business-like way, increasing commercial awareness and injecting a results-driven approach. But we acknowledge there is more to be done to maximise the benefits that non-executives bring. We will consider the report’s recommendations carefully and respond in due course.”
How non-executives help departments
On average, non-executives spend a third of their time in board meetings and the rest on other work. The best boards, Lord Browne believes, make the most of the use of this time outside the boardroom, asking non-executives to advise on specific initiatives or sit on governance boards for major projects.
For example, Sara Weller, Lead Non-Executive at the Department for Communities and Local Government, supported an efficiency review of the fire service in England. Drawing on her experience of large-scale business operations, she applied best practice for benchmarking and identifying opportunities for savings. This contributed to the review finding efficiency gains worth at least £200 million.
“With the priorities for next year including major projects and risk management and effective functional leadership functions such as finance, project management and IT, it is evident that of non-executives from black or minority ethnic (BME) could play a key role in helping government departments achieve their goals and we hope that considerable effort is made to attract them to these opportunities” said a spokesman for Diversity UK.
Click here to read Lord Browne's Annual Report 2012-13.
