You Can Be the CEO, It Just Takes Longer as a Woman
In the good/bad old days, if someone wanted to climb the ranks of a company, they did so through hard work and loyalty. Take whatever job you can get, work hard and get promoted on your merit. Despite trends since the late 1970’s when the MBA started to become an assumed pre-requisite for entry to upper management and the modern axiom of bouncing between firms, a recent study conducted by the Harvard Business Review shows that women are achieving entry to the upper echelons of senior management by tenured climb inside one firm as opposed to lateral hire.
The study which featured 24 female CEOs of Fortune 500 companies revealed a number of interesting and unexpected facts. Perhaps the most surprising of those facts is the median length of time those involved spent at one firm before climbing to CEO. 23 years on average these women were loyal to one company before reaching top management roles. This is in sharp contrast to that of men studied who achieved their goal within 15 years.
The data seems to reveal that a woman needs to truly show their value over a long period of time to reach the top jobs, whereas a man has a better chance of getting a high level position based on his resume. An earlier study conducted by the Harvard Business Review affirms this idea. Among other things, the study showed that managers were twice as likely to hire a man based on his application than a woman with the same skills and experience.
The reasons behind why all these disparities exist can be and is discussed at great length. This study done by McKinsey does a good job of both illuminating the issues and presenting possible solutions to them.
Do you need an MBA to be the CEO?
In the area of education, the statistics for men and women were actually relatively similar though both contrary to popular notions. Only two of the 24 women involved and 4% of male CEOs have an Ivy League undergraduate degree. As well, only 25% of female and 16% of male CEOs interviewed attained MBAs. It seems the world has not changed much in this aspect. Experience is still the most important piece of a resume.
This does not definitively mean that getting an MBA is not worth the investment of time and money. It is a highly debated issue with strong points on both sides but the consensus today seems to be that an MBA is valuable but not necessary.
Since longevity seems to be the key to success, put in the time doing research on the companies you are thinking about applying to. Put yourself in a good position to make the climb. If you are interested in applying to a company, a simple Google search and browse of their website can give you access to a range of reviews.
You want to make sure that not only are the corporate values women-friendly but also that the company tends to hire from within. Also, do not hesitate to leave a company you are not happy with. The amount of time a woman must spend at one firm leaves less time to move around so finding the right fit as soon as possible seems to be beneficial to the tenure career strategy.
Does precedence mean a great deal to your success? No evidence one way or the other but sometimes it is nice to trail blaze and other times it is nice to have a pathway built.
Interestingly, Fortune’s recent list of the 50 most powerful women in business showed that 8 of the 10 most powerful women in business work in the consumer goods, tech and defense industries. The highest paid female CEO, according to a recent article from the New York Times, is Marissa Mayer of Yahoo! (Technically, Martine Rothblatt of SiriusXM is the highest paid female CEO but she was born and rose to power as a man.)
So when plotting your path to the C-suite, keep in mind the common trends facing women and do your best to plan accordingly.
By Paul Maupin
