In the 1970s, Chevrolet made a marketing error that became a textbook case for cultural sensitivity when it tried to sell the Nova (translation: "no go,"), in Spanish-speaking countries. If your board does not reflect the makeup of your client population, it's possible that your hospital could be headed for the same kind of blunder. To avoid it, smart organizations are diversifying the composition of their boards and using the new insights garnered to improve their business strategy.
The U.S. Census projects that 90 percent of population growth between 2000 and 2050 will be in the minority population. However, a culturally competent board is more than simply a politically correct maneuver. Including board members who can express community members' values and viewpoints helps to create services that respond to their needs. And, recognizing the importance of better balanced boards, federal and state governments are making board diversity part of their monitoring of not-for-profit hospitals.
The American Hospital Association (AHA) has also become active in the effort to make board membership more inclusive. It recently completed a benchmark study, "State of Healthcare Diversity and Disparities" which surveyed 182 health care organizations nationwide. Results indicated that nearly 90 percent of hospital executives and trustees are Caucasian. In response, the AHA now offers a minority recruitment and education program to prepare individuals who are interested in serving on their local hospital's board.
When Good Boards Go Wrong
Here's one example of how a more diverse hospital board can better respond to the community's needs. Until recently, Kingsbrook Jewish Medical Center in Brooklyn, New York served an all-kosher menu despite the fact that only 10 percent of inpatients are Jewish. Concurrently, orthodox Jewish patients didn't trust the hospital's kitchen and typically brought in their own food. A better-balanced board recognized the opportunity for improvement, arranged for the hospital's main kitchen to serve non-Kosher food, and created a separate kitchen that a well respected Rabbi was appointed to oversee. Although one board member resigned in protest, the move yielded greater patient satisfaction and saved the hospital $250,000 a year.
Moving Towards Diversity
Creating a more diverse board takes time and can be challenging. When considering possible candidates, think beyond ethnicity and race to include more women and those of diverse sexual orientation or religious beliefs. Frequently, the best candidates are already overcommitted. It can also be difficult to let go of long-standing board members who want to retain their positions. Those who have been through the recruitment process say that traditionally effective "word of mouth" recruitment methods may not work. Instead, they recommend networking with local professional and trade associations, as well as business and community leaders. The AHA's Center for Healthcare Governance maintains a national, online registry of minority candidates which contains individuals who have taken the Center's trustee training course and can also be a productive resource. It is also helpful to assign direct responsibility for the recruitment process, or to appoint a special task force.
The greatest challenge, however, may be getting your current board to commit to creating diversity among its ranks. After all, it is always easier to come to a consensus with a homogeneous group. However, the issue should be considered and acted upon in a timely manner. Plan now to put board diversification on the agenda, before others decide to bring the issue to your boardroom.
