ASIC chair Joe Longo has called for “more science in the boardroom”. Lucid Consulting chair Paul Billingham GAICD explains how and why boards should eagerly embrace STEMM inclusion.
In March, ASIC chair Joe Longo spoke at the AICD Australian Governance Summit of the need for more “science in the boardroom”. He reasoned this would better equip boards to understand and engage with the risks facing their businesses.
Referencing the work of Dr Ruby Campbell in her book Scientists in Every Boardroom, Longo spoke to the lack of diversity of experience on ASX boards. He noted that with some 70 per cent of ASX directors having legal, financial or general management backgrounds, there seems to be little room on boards for those with STEMM backgrounds (science, technology, engineering, mathematics, medicine).
Perhaps this is a result of the belief held by some that where boards lack particular skillsets, they can access specific capabilities to give that insight. They rationalise — not unreasonably — that it is simply unfeasible to have all possible issues “covered” by permanent board members.
What this fails to recognise, however, is the value to board behaviour and decision-making that directors with STEMM backgrounds can bring every day. So what sets apart those with such experience around the boardroom table?
These comments are based upon my own experience and observations as a board adviser and a current director and chair of boards in the engineering, defence, health and energy spaces.
What is clear to me is the value those with a STEMM background bring to the quality of the board’s decision-making. The enjoyment factor of listening to those with an opinion from such a different place to my own is considerable. This manifests itself in several different ways.
Evidence-based decision-making is in their DNA
STEMM directors instinctively seek to define the root cause of an issue and clarify the expected outcome from an action before making a judgement. They will keep digging until satisfied they have the right information to make the call. The discipline their logical and critical thinking skills bring to board decision-making is extraordinary, although it can be challenging to those who prefer to act on instinct. This is not least in dispelling those nagging doubts as to whether “we have dug deep enough” on key resolutions.
Great team players
Directors with a STEMM background are seemingly the most collegiate, humble and respectful of board colleagues. But they are not afraid to be assertive when required. An openness to the views of others, a thoroughness of meeting preparation and a willingness to contribute without dominating builds incredible trust and respect.
Innovation mindset
STEMM directors are future-focused, prepared to challenge the accepted norms and are sometimes more embracing of change than those from a finance or legal background. This comes with a willingness to stretch discussion into untested areas, develop original thinking and identify new opportunities, quietly challenging groupthink tendencies.
Risk management
I’ve found at Lucid that there is always an extra dimension to risk awareness and mitigation coming from STEMM directors. Like myself, those with an accounting background are naturally most comfortable with the financial, legal and strategic elements of the risk management framework. We have learned to be proficient in technology, WHS and so on. But we don’t know what we don’t know. The problem identification and solutions approach that comes from professional problem solvers — such as my engineering board colleagues, for example — is incredibly complementary to the risk management function.
Engineering change
Board adviser and engineer Stacey Daniel GAICD suggests directors should ensure their board has sufficient professional diversity to reflect the work of the organisation. Consider the following:
Review the current composition, skills and gaps of the board- Recruit relevant STEMM professionals with strategic/business/governance skills
- Equip current directors with relevant STEMM knowledge.
Emotional intelligence
Again, at Lucid, I’ve found STEMM directors to be very aware of the indirect, perhaps unintended, consequences of decisions on stakeholders. This is less about a social conscience than about assessing the wider impact on the ecosystem in which the organisation operates — and therefore the future consequences of board decisions.
Always learning
STEMM directors learn for the sake of learning and will seek out knowledge, counsel and feedback along the way, including, refreshingly, in areas of complete unfamiliarity. This can help to foster a culture of learning with the other directors, leading to a higher-functioning board.
Perhaps another reason why there are comparatively few such directors serving on boards, despite the evident benefits they bring, is that the boardroom is an unfamiliar place to those with STEMM backgrounds.
The chair needs to recognise different engagement styles, giving STEMM background directors the time and space to find their voice so they feel able to challenge those they perceive to be “subject matter experts” on the board and so contribute outside their field of expertise. Inclusion in committees, leading board training and developing thought leadership are valuable ways of easing those with STEMM backgrounds into the often unfamiliar world of board life.
This article first appeared under the headline 'The Strategist: Why boards need STEMM skills' in the June 2025 issue of Company Director magazine.
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