Diversity

WARRIORS ON THE COURT AND IN THE BOARDROOM

Would you like your board to run like the well-oiled machine of the Golden State Warriors, 2017 NBA champions? I am going to demonstrate how you can achieve success by thinking like the Warriors.

Of note, I have not been inspired to follow an American sports team since Kareem Abdul-Jabbar and Magic Johnson played for the “Showtime” Lakers of the 1980s. The Warriors grabbed my attention with their beautiful, sleek and skilled playing in 2015 when they won their first NBA championship in 40 years.

The athletic and statistical prowess of each player can help make a good team yet not necessarily an extraordinary one. The key is what I call the “stealthy” skill set — those traits and experience that are not obvious on the surface, but that help to facilitate synchronicity on the court.

Some highlights of how the Warriors’ stealthy skills come into play:

Sixth man Andre Iguodala teamed up with a close friend in high school and became a self-directed stock investor. When he was a free agent a few years ago, he decided to play for the Warriors in part because of the team’s location in Silicon Valley and its ties to venture capitalists, including majority owner, Joe Lacob, a partner at Kleiner Perkins. Andre sought out VCs and personally connected with and was mentored by Ben Horowitz of Andreessen Horowitz, who recommended Andre for a portfolio company’s board seat.

Another stealth trait of Andre’s is his willingness and conviction to mentor, educate and guide more junior players in becoming champions and leaders in managing their own finances. NBA players’ careers typically last about six years. Many professional athletes don’t know how to deal with sudden wealth and wind up over-spending and then filing for bankruptcy after their playing days end. Through his mentorship, Andre contributes to the future well-being of his teammates.

Kevin Durant also embraced the Silicon Valley startup culture in starting his own investment firm, Durant Company. He has also launched a charitable foundation. Kevin is also an underground hip hop star, performing privately in his home among close friends. He describes it as music therapy; he lays down the words and it clears his mind.

Kevin, his teammates Zaza Pachulia, Draymond Green and others, along with coaches and staff, made the trek to San Quentin Prison in 2016 for the Warriors’ fifth year of playing against San Quentin’s Warriors’ basketball team. He told the inmates he wanted to “show you guys some love.” Draymond said he embraced the opportunity to “mingle and talk” and “show these guys they matter.”

Kevin appears to me to be an old soul. He emanates gentleness and sensitivity. The significance of his jersey number is a case in point: number 35, the age at which his childhood community center coach was murdered. He said, “It’s all about doing it for somebody I love. It’s not about what’s the better number and what looks better on me. It’s all about him.”

And I have to mention Stephen Curry. Is there anyone who can watch Steph Curry without a big grin on their face? Watching him play is one of the rare times when “awesome” carries the depth of its true meaning. Steph has his own charity, donating money for each three-point shot he makes to Nothing but Nets, a group that provides insecticide-treated bed nets to regions where malaria is prevalent.

Steph also maintains relationships with those who have helped him along the way. He recently returned to his high school to retire his jersey. He consults his former coaches and theater instructor about life to this day, and nurtures those friendships.

Behind the scenes, the Golden State Warriors’ General Counsel & VP of Basketball Management & Strategy David Kelly negotiates player and coach contracts, and manages legal and strategic operations for the Warriors’ forthcoming new sports and entertainment venue, Chase Center in San Francisco. He keeps all the balls in the air, so to speak. He, too, has a separate stealth skill he brings to the table: he is a successful hip hop artist. David also gives back via multiple board seats with non-profits, including the United Negro College Fund.

Finally, of note is the man who put them all together, advancing and exemplifying the theory that handcrafted, hand-picked teams are the secret to success: Warriors owner and CEO Joe Lacob (who coincidentally earned his bachelor’s degree from my alma mater, UC Irvine). He hired a general manager, Bob Myers, who had never worked for a team before, and two coaches who had not coached at any level, including beloved Warriors’ head coach Steve Kerr. OpenView recently posted these leadership lessons from Steve, and his tips apply to selecting board members: know your values and get to know your team through person-to-person relationships “based on compassion, trust and respect.” Joe also brought basketball legend Jerry West into the front office, not just as window dressing but as a real contributor. The San Francisco Chronicle noted, “One of the best things Lacob ever did was hire a presence who would offer a different opinion,” which is good insight for CEOs who prefer consensus-building boards; getting peak performance out of your team comes when differing opinions are at the table.

As Joe Lacob says, “There is an architecture to building a board of directors.” Unearthing stealth information, experience and passion that is not on a board bio, resume or LinkedIn profile is how you will create a “board of warriors” and succeed, keeping your shareholders profitable and happy.

Kim Clancy is founder and CEO of search firm Hampton O’Bannon Partners, LLC (HOP, LLC. She handcrafts retained searches in the SaaS space, helping CEOs, Nominating Governance Committee Chairs and investment bankers hand select board members for championship-level success.

https://www.linkedin.com/in/kimclancy

Legacy of Racism

A recent conversation with my parents revealed a history of racism in my family, some of which I knew and some of which shocked me. The revelations spurred me to conduct further research which not only shed light on my family’s participation in the racism that has historically marred our country, but also helped me understand what motivates me to do the work I do: assisting CEOs in building inclusive boards. I will tell my family’s story here in the hope that it can play a part in defeating the racism that continues to plague our society.

On a visit with my parents, we were discussing my mom’s upbringing and multiple residences in St. Louis. She remembered the address of the home her dad built when she was a young child and I found the image on Zillow. That led to a discussion regarding her dad’s sister, Eva, who also lived in that house as a young adult. My mom’s Aunt Eva, who lived to age 104, was a member of, and spent her last years in a home run by, the Daughters of America, also known as DoA (and not to be confused with the Daughters of the American Revolution, or DAR). We used to get letters from her with the return address of National Home D of A, Tiffin, OH. According to Wikipedia, the DoA was established as the “ladies auxiliary” of the Junior Order of United Auto Mechanics (JOUAM), a youth subsidiary that broke off from the Order of United Auto Mechanics. The OUAM name sounds innocuous to me, like an auto workers’ labor union, but in fact it was founded in the mid-1800s as an anti-Catholic, anti-immigrant organization.

The Daughters of America mission statement declared it to be a “patriotic fraternity, which seeks to aid in preserving and perpetuating the Public School system; to instill a spirit of patriotism into the youth of our land; to place our flag over every schoolhouse; to promote the reading of the Holy Bible therein; and to protest against the immigration of paupers, criminals, and the enemies of our social order.”

The DoA is noted to have been associated with the KKK in the 1920s, and admitted only white American women age 16 or over and JOUAM members. As recently as 1979, documents note that admission in the group was open to “patriotic, white male and female citizens of good moral character, who believe in a supreme being as the creator and preserver of the universe and who favor the upholding of the American public school system and the reading of the holy bible in the schools thereof…” If you have read the book or seen the film “The Help,” the DoA is the secret society to which the women and girls belonged.

I knew from genealogy records that my Irish-American relatives from the late 1700s had owned slaves. Excerpts of two family wills from Fauquier County, Virginia, include assigning “acres and slaves” to one son, “one Negro” each to a boy and two girls, and the remaining eight children received a “good suit of clothes,” “one riding horse,” or a “new saddle and bridle.”

Learning of the DoA’s KKK connection on top of the slave ownership in my family background was like getting pulled underwater, choking on sea water, coming up for air thinking all is okay, and then getting caught by the riptide and pulled underwater again.

The DoA’s white supremacist beliefs are counter to who I am, what I am about, and the polar opposite of the foundation of my work: helping CEOs who are building, growing or refreshing their boards of directors with an eye for inclusion.

I then revisited some of Aunt Eva’s old letters, and I found a few in which she revealed her racism. During her stay at a prior nursing home in St. Louis in the early 1970s, she didn’t like the “riff raff” that came to visit the black residents, and she complained of the home starting to put whites and blacks in the same room. She said if that happened to her, she would move, which appears to be one of the reasons for her relocation to the DoA home in Ohio in the late 1970s.

Our country has deep roots in racism, many years of a white supremacist culture, and inequality that persists to this day; we are all affected by racism in some way, whether we are privileged or not. Someone I know attended a workshop several years ago on white supremacy culture, and I found the material instructive on different ways racism both stealthily and blatantly manifests itself in our daily lives as perfectionism, individualism, fear of open conflict, discomfort with emotions and feelings, and other disheartening characteristics, several of which I regretfully experience within myself.

Would you be willing to join me in overcoming the history of racism in our nation? Below are a few small steps you can make:

• Hire, contract, work or volunteer with someone who doesn’t look like you;

• When there are two empty seats, take the seat next to the person who is most unlike you and initiate a conversation;

• Look your neighbors, fellow citizens and non-citizens in the eye, smile, say hello and take interest in how they are different from you;

• Access your empathy and use it.

Although our history is undoubtedly troubling, and there is still much work to be done, I take heart in seeing signs of progress in the arena in which I work, corporate board membership. The consulting firm Deloitte published a Missing Pieces Report: The 2016 Board Diversity Census of Women and Minorities on Fortune 500 Boards, which declared: “There has been an increase in the Fortune 500 of African American/Black women board members by 18.4 percent since 2012.” Let’s keep increasing those numbers!

Kim Clancy is founder and CEO of search firm Hampton O’Bannon Partners, LLC (HOP, LLC). She helps CEOs of public and private companies who want to build, grow or refresh their boards.

https://www.linkedin.com/in/kimclancy

 

All [A]board: Insights and Inspirations for Your Journey to and in the Boardroom

“When a company is trying to fill a board seat, the CEO and sitting board members often inadvertently default to their own immediate circle, and that pool and their ultimate judgments tend to tip toward finding sameness.” Kim Clancy (page 37)

Read the collective wisdom here as composed and published by Farella, Braun + Martel.

CEOs: How to Recruit Your Boss — Board Members Who Increase Your Bottom Line

Kim Clancy video interviews Penny Herscher on HOPTalks.

Hear the following take-aways:

*How to understand the role of the activist type investor.
*Learn the value of educating and networking one’s way including the use of a recruiter, onto a board.
*Hear how the diverse range of backgrounds, experiences, opinions lead to better board decision making.
*How stressing the importance of needing to see a diverse candidate range is the CEOs role.
*How a diverse management team is more successful at delivering better financial results.

Walking The Talk. Even Diversity Advocates Must Battle Unconscious Bias

I was not entirely comfortable producing a four-minute branding video for my business, but I know I have to put myself out there. I didn’t realize how much I would learn in the process — that I would reveal my own unconscious biases, it would give me greater understanding of what CEOs go through in filling their board seats, and enable me to “walk the talk” of my business in a much more effective manner.

As an introvert, I try to live by the saying, “Do something every day that scares you.” As a small business owner, I have to promote my work or I won’t have a sustainable, successful business. So I got out of my comfort zone, hired a videographer, and started interviewing people on camera for my branding video. My goal was to showcase my work helping CEOs build diverse boards of directors. I picked three great connections for my interviews:

*Tom Kalinske, a CEO who has a long history of successes in the toy and gaming industry.

*Olga V. Mack, a young attorney who launched a company in high school and sold it to her competitor years later. Olga is now general counsel at a reputable tech startup and serves on startup advisory boards.

*Penny Herscher, a CEO with activist investor experience who is on public and private boards.

I was extremely self-conscious in the first two video shoots, like a deer in headlights. I felt very uncomfortable in the spotlight. By the third interview shoot, I felt a little more relaxed.

After completing the three interviews, my videographer, who is also a journalist, wanted one more shot of me interviewing a board candidate via Skype. In thinking of who I could ask to do that, I reflected on who I already interviewed. I was mortified when I realized I was not “walking the talk.” I had diversity in gender and geographic origin, but no people of color (POC) nor LGBTQ community members in my interviews. I had gone to my immediate network, which tended to look like me.

In making that omission, I experienced the same issue CEOs and nominating governance committee chairs find when they look for board members: unconscious bias. I then made a conscious effort to ask my immediate network for referrals to executives who are people of color, in the LGBTQ community, or intersecting members of those groups. It did not surprise me when each person I asked had multiple referrals. Eventually, I called Darnell Kemp an investor who was perfect in giving me the balance the video needed, declaring, “In my day-to-day business world, I don’t see people like me, and I don’t see women.”

I am thankful for the experience I went through. I have renewed empathy for CEOs and nominating governance committee chairs who struggle to diversify their boards.

Are you experiencing unconscious bias when you or your executive search firm recruits board members? I can help. I am your conduit to a diverse network and, thanks to my video experience, it is a growing one!

Kim Clancy is founder and CEO of search firm Hampton O’Bannon Partners, LLC (HOP, LLC). She helps CEOs who want to build or grow diverse corporate boards.

LinkedIn : http://www.linkedin.com/in/kimclancy

Email : Kim@hopllc.com

Do It For The Right Reasons: Boards With More Women Grant Higher CEO Pay

Gretchen Morgenson’s “Fair Game” column in the Sunday New York Times Business section is a must read for CEOs, their teams and all investors. Gretchen is known for uncovering discrepancies, inequities, and potentially illegal maneuvers in the corporate world. The headline on this particular column, “Where More Women Are on Boards, Executive Pay Is Higher,” really grabbed my attention. My first thought was, this is a win-win. You get more women on boards and CEOs will be more highly compensated.

Alas, first thoughts are not always what they seem. As I dove deeper into Gretchen’s article, she pointed out several issues that countered my initial excitement.

The most disturbing notion was what may be behind the number: pressure women feel to avoid upsetting anyone in the boardroom. In the column, Nell Minow, a corporate finance expert, said executives are “looking for a consensus builder in a director. What that means is someone who doesn’t rock the boat.”

I was disappointed to learn that women in the boardroom are caving to the consensus; after all, the consensus may be wrong, or it may not be what is best for the company or its shareholders. In her column, Gretchen talks about how this may be the result of the hard road these women had to travel simply to get on a board. Even though they are often extremely successful and accustomed to speaking their minds, now that they’ve made it to the boardroom, they are not willing to go against the CEO for fear of losing their seat.

This attitude seems to fly in the face of the intent for diversity and inclusion. Yes, you need a consensus to move forward and get things done, but if you rely solely on a CEO and his or (in the rare case) her consensus-building directors, you will lose the statistically proven profitability benefit of a diverse board. You want a diverse board so you’ll hear perspectives you haven’t considered, not just so it can tell you what you want to hear.

Companies can remedy or alleviate this issue by implementing onboarding procedures that include discussions of the best practices for broaching opinions or ideas that differ from the CEO’s. Input on this can come from the CEO, board members and an outside vendor. Onboarding procedures should also include, in writing, the philosophy and values of the company. CEOs who embrace diversity in their corporate culture will have an easier time in allowing for differing opinions on their board. In the end, they’ll also have a more profitable company.

That’s because, after all, having diverse boards and workforces really do lead to better financial performance, and it’s got nothing to do with sycophantic behavior. See this Wall Street Journal article about how companies with more women and minorities in the upper ranks tend to turn in better financial performance, and this Yahoo Finance article about a study showing that companies with women on their boards outperformed those who only have men on their boards.

Smart CEOs don’t just want a rubber stamp. They want someone to give them honest answers. In the words of University of Notre Dame researcher Craig Crossland, management professor at the Mendoza College of Business: “Diverse groups tend to engage in discussions that are more thorough, more contentious and more likely to identify problems with the topic at hand.” CEOs need that frank and open dialogue, which will lead to better decisions.

Add women, people of color and LGBTQ community members to your board and encourage their divergent ideas, and you will make more money — not only for you, but for everyone in your company.

Kim Clancy is founder and CEO of search firm Hampton O’Bannon Partners, LLC (HOP, LLC). She helps technology companies attract and hire women and minorities to their boards.

LinkedIn : http://www.linkedin.com/in/kimclancy

Email : Kim@hopllc.com