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Board diversity index

Definition of this KPI:
A metric used to measure the representation of diverse groups within the board of directors of an organization. It assesses the extent to which individuals from different backgrounds, including gender, ethnicity, age, and other dimensions, are included in the leadership and decision-making processes.

  • This KPI can be calculated as: Board diversity index = (Number of Diverse Board members / Total number of Board members) x 100
  • The KPI will be measured as: percentage (%)
  • How to interpret the KPI: higher is better
  • The strategic objective to measure with this KPI: Happy employees make happy customers, which make happy shareholders
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