Ethnically diverse leadership: what can housing learn from the Parker Review?

The review  

The Parker Review has been published annually since 2016 and has examined the ethnic diversity of boards in FTSE 350 companies. Last year, it expanded its remit to include the top 50 private companies in the UK.

Findings showed there were 12 chief executives and seven chairs from ethnic minority backgrounds in the FTSE 100, and 70% of the FTSE 250 had at least one director on their board from an ethnic minority background. In private companies, this figure was 61%.

The ‘One by 24’ target 

The ‘One by 24’ target was for all FTSE 100 companies to have at least one board member from an ethnic minority background by December 2021 and for FTSE 250 companies to achieve the same by December 2024.

In 2016, this was true of only 47 of the FTSE 100, prompting the target. Now, the number of FTSE 100 companies meeting the target is 97. 

“Following a general election that had housing very much at the forefront, it is worth considering how much political backing can help widen the reach and impact of data”

In December 2023, the FTSE 250 had 175 boards that met the target, up from 149 the previous year.

Of course, while this does demonstrate clear progress, there is still a way to go to meet the target fully and for true diversity and inclusion, which can’t be fully realised or held by one person.

How was this progress achieved and could housing emulate it? At Leadership 2025, we wanted to understand what had contributed to this progress. Three main themes were highlighted.

Endorsement and publicity

The Parker Review receives much publicity and a high level of engagement with its findings. The review also receives ministerial backing, most recently from Nusrat Ghani, when she was a minister of state at the Department for Business and Trade. Sir Trevor Phillips, the writer, broadcaster and businessman, also sits on the review committee.

Following a general election that had housing very much at the forefront, it is worth considering how much political backing can help widen the reach and impact of data.

Some housing reports do receive a large amount of publicity. It is therefore a question of how to fully utilise that publicity to secure buy-in and a commitment to improvement.

Sharing organisational data

Organisational data is published as part of the review. It is clear which companies have made progress and which have not met targets.

In many cases, organisations are able to share their progress and, more importantly, their methodology, to support further change. We know that sharing good practice is a fundamental tool for driving real progress.

In an ideal world, organisations would share their diversity data, even when it is disappointing, and work towards improvement for moral reasons and not reputational ones.

However, it is clear that when the diversity of leadership in organisations does not progress, there is power in sharing this information and addressing it publicly. In explaining where diversity is lacking and, critically, what steps are being taken to improve it, organisations take the first steps to becoming more inclusive, anti-racist and welcoming for all.

“It is clear that when the diversity of leadership in organisations does not progress, there is power in sharing this information and addressing it”

Perhaps such approaches require some bravery. The more leaders are willing to lead the way here, the quicker we will open the dialogue. This will support the recruitment and retention of more diverse teams and create a leadership which can best reflect and support tenants and housing’s broader social purpose.

Target-setting  

The review invited businesses to set their own targets for the share of ethnic minority executives in their senior management teams by the end of 2027. This approach has been advocated by Leadership 2025 and the National Housing Federation in its Chairs’ Challenge. Again, explicitly sharing where we want to be and how we are going to get there are fundamental in driving improvement.

The public nature of data and of targets may invite competition, particularly in more corporate contexts. It may be that housing is, by its nature, a more collaborative environment.

What is sure though, is that where we are ambitious to improve and compete, at least with our own track records and culture, we can start to see results.

Jessica Parsons, director, Leadership 2025