Overdue Change? How Women Impact On Boardroom Dynamics and Why Boards Need It

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focused-diverse-women-working-trading-strategyCurrently, Boards Are Underperforming and a recent article in HBR went further to declare that “boards aren’t working.” Boards are failing at “their core mission: providing strong oversight and strategic support for management’s efforts to create long-term value.”

Bartman & Wiseman reported that boards are at the top of the blame list for pressuring companies to focus on short-term financial results, with board members being the first to admit so. A previous McKinsey study among board directors revealed serious gaps in understanding company strategies, how firms create value, and in-depth knowledge of industry dynamics.

As a core part in how to address this issue, the authors stated, “Part of the lack is in deep, strategic understanding of the business… If the aim is fostering the proper long-term view, what matters most is the quality and depth of the strategic conversations that take place.”

So, boardrooms are broken? How can gender diversity help?

Increasing the number of women directors changes boardroom dynamics, says a recent article in the Harvard Business Review penned by Laura Liswood, Secretary General, Council of Women World Leaders – who reflects upon ongoing progress.

Real Gender-Diversity Creates Results

The impact of gender diversity on results has been repeatedly demonstrated. Recently a French study found that women in boardrooms has a “significant and positive impact on economic performance” and that “gender diversity even reduces corporate inefficiencies and enables firms to come closer to their optimal performance.” Studies show that corporations with more women in the boardroom experienced greater financial performance.

Beth Brooke-Marciniak, Global Vice Chair of Policy at Ernst & Young, stated, “The evidence abounds: In 2012, Ernst & Young reviewed 22,000 audits that our member firms were performing in four countries on three continents. We found that gender-balanced teams were much more successful than other teams. They don’t just outperform other teams in quality – they also bring back better returns…Research shows that companies with at least one woman on the board have a higher return on equity, higher earnings and a stronger growth in stock price than companies with all-male boards. Bringing diverse voices to the table improves the solutions we see.”

Critical Mass Matters

Many studies demonstrate that a critical mass of women on the board, not just tokenistic representation, leads to better financial results and a greater impact on boardroom dynamics. As an article in Forbes put it, “Forget ‘one and done’ or ‘two and through’ – put three or more women on the board and the financial results are even better.”

A study by Thomson Reuters across 4,255 public companies found that while 64% had women on the board, only 20% had boards with over 20% women – while indices made up of mixed boards performed better. Debra Walton, Chief Content Officer, writes, “One idea in particular resonates for me. It’s called the ‘Power of Three’: One woman is a token, two are a presence, and three are a voice. Some would argue that company boards — which, after all, exist to offer insight on important strategic decisions — need that power because of the potential it offers.”

Some studies assert that women in insignificant numbers impact insignificantly on board performance, whereas the inclusion of at least three women on the board has a positive impact on firm value. Organizations like law firm Herbert Smith Freehills aim for 30% representation. Global Head of Mergers and Acquisitions Stephen Wilkinson said, “Just about every respectable study that has come out in the last ten years shows organisations which have a greater gender balance at management level are financially more successful.”

Impacts of Critical Mass on Boardroom Dynamics

Featured in the HBR and in his book Challenging Boardroom Homogeneity: Corporate Law, Governance and Diversity, Dr. Aaron A. Dhir’s work provides an insider look into Norwegian boardrooms and illustrates the impact of having at least 3 women in the boardroom. Dhir identified seven effects of gender-based boardroom heterogeneity for work, governance, and group dynamics:

  • Enhanced dialogue
  • Better decision making, including the value of dissent
  • More effective risk mitigation and crisis management, and a better balance between risk-welcoming and risk aversion behavior
  • Higher quality monitoring of and guidance to management
  • Positive changes to the boardroom environment and culture
  • More orderly and systematic board work
  • Positive changes in the behavior of men

He also noted outsider status and independence were powerful influences, opening up closed social groups and network dynamics and restructuring social bonds between directors, the CEO, and high-level management.

Enhanced Dialogue & More Thorough Decision Making

Dhir found that many women brought “a different set of perspectives, experiences, angles and viewpoints” than their male counterparts. Lisswood noted, “Board members also observed that female directors are ‘more likely than their male counterparts to probe deeply into the issues at hand’ by asking more questions, leading to more robust intra-board deliberations. Most women appeared to be uninterested in presenting a façade of knowledge and were loath to make decisions they did not fully understand.”

Female directors tended to foster a different approach to engagement – seeking the opinions of others and working to ensure everyone had a say in the matter.

The importance of diversity in decision-making is paramount. Research has found that homogenous groups don’t reach better decisions, but they’ll think they have. Heterogenous groups arrive at better decisions, but won’t think so. Experience and outcome are two different things.

INSEAD research postulates that in-group and out-group dynamics in a diverse group lead to more contentious and comprehensive discussions, and results in “more thorough, more comprehensive decisions” when women are on boards.

The importance of diversity in decision-making is paramount.

Diversity Disrupts Groupthink

Groupthink is defined as a pattern of thought characterized by self-deception, forced manufacture of consent, and conformity to group values and ethics – a serious liability of homogenous boards. Disrupting it is a big asset of women in the boardroom, even if and especially if they disrupt the existing dynamic.

“Groupthink seriously imperils the board’s decision-making process as it introduces decision biases and blind spots into the process. This is mainly attributed to directors’ endeavor to maintain cohesiveness and solidarity within the board at all costs. Such group pressure compels many directors to ‘go with the flow’ instead of challenging the dominant view in the boardroom,” states Fause Antelo Ersheid, Economist and Senior Corporate Governance Analyst & Researcher at the Abu Dhabi Center for Corporate Governance.

Ersheid recommends, “To overcome this decision-making impediment, companies need to implement a comprehensive diversification program in the boardroom; the board should be as diverse as the company’s client base and perhaps more.” He recommends gender, age, racial, and professional diversity and individually-appointed directors, underlining chairs must champion diversification.

As Thomson Reuter’s Walton states, “Diversity of gender brings a diversity of thought. Getting more women involved reduces groupthink, unlocks fresh perspectives, and fosters innovation and organizational creativity – ultimately emulating a diverse customer base. Only with a broad range of viewpoints can a board make governance and advisory functions meaningful and offer a balanced approach to risk management.”

Not a pipe dream?

According to Liswood, “The Norwegian experience has provided a window into what might happen if and when board leaders and companies elsewhere decide to seriously commit to making sure their boards are truly diverse, moving consciously from homogeneity to heterogeneity.”

By Aimee Hansen

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Changemakers: The Athena Leadership Column

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Women workingVenture capitalist Jeanne Sullivan’s bio is one that defies history. Hers is the resume that appeared – under a woman’s name – thirty years ahead of the pack. She was a partner in Olivetti, and hammered out 40 tech deals in seven years, which “emboldened me,” she says, as Sullivan was “sitting at the table with the great VCs.”

This led her to co-found StarVest Partners – now a hugely successful VC firm – in 1998, when women angels and VCs in the tech world were mythically rare characters. She is revered today as one of those women who is not only vastly successful, but also down-to-earth, funny, and focused on mentoring younger women in technology.

What is the secret to success?

In this series of Athena Changemakers articles, I want to ask the question: what makes the outliers in women’s leadership, different? What lessons did they teach themselves? What skill sets do they themselves highlight? This set of questions, put to this small, unusual population of female “superachievers”, is critical at our point in US and global history. It is now well documented what institutional hurdles women are facing in the workplace; but far less well documented – since it is much less socially acceptable to talk about. Is the bottom-line learning about what the very successful cadre of female changemakers actually did differently from their equally talented peers? Tracking that ‘difference’ in these unusual women’s approach and perhaps even philosophy is the goal of this series.

In a recent interview, Sullivan identified six guidelines for success for women starting out in the tech field – or in any field.

Rule #1

First, “identify your passion,” she insisted. She knew early on that she herself was “an inner geek”and she comments that “I was the one who wanted to take the watch apart.” She also stresses how important it is to trust one’s own unique sensibilities: “with all the windows out there, I knew one was lit for me.”

Rule #2

Then: “Put role models in front of girls.” “We only were teachers, mommies, nurses and secretaries,” she explains of her generation – but she knew that “I wanted to carry a briefcase. I wanted to be in the business world.”

Rule #3

Her third rule – “Build your networks.” Sullivan’s supportive Italian family of eight kids was a resource for her in boosting her sense that she could do anything. But she explains that with what she calls “intelligent teams”, citing the work of MIT professor Thomas Malone, anyone can create that supportive emotional/ professional environment around herself. In 1980, she joined a law firm that attracted ‘computer geeks” and built her first “kitchen cabinet”. She stresses the value of always cultivating an “intelligent team” of vibrant, supportive men and women to nurture one’s goals. Sullivan makes the case that it is up to the woman to hand-pick this group around her. This guidance is quite different from the usual advice women are given about success in the workplace – advice to adapt and fit in, strategize and suppress. It is startling to consider, as it presumes a truly healthy female consciousness and a revamped social Darwinianism: a woman is actually choosing her own environment to enhance her own chances of success, rather than being at the mercy of her environment.

Rule #4

Her fourth rule for success is surprising in its simplicity: “Go to conferences.” Sullivan did not grow up in privilege – she worked hard to enrich her own environment. She explains that any young woman can take her curiosity and passion – whether it is for fashion, tech, or any sector – and find a conference. It is cheap, she says, or free, to go inside. And if you ask questions, people will tell you anything, she notes. She claims that she learned about the tech world from “covering the floor” at conferences: “Are you hiring?” and “Who are your competitors?” are some of the questions she asked. This easy, practical step “into” a world is actually quite important: the obstacle many young women face in imagining what to do next to realize their professional dreams is a sense of mystification – that the world they want to enter is behind high locked walls with secret passcodes.

Rule #5

Her fifth rule? “Don’t look for ‘Safe”’. Sullivan cautions that women are often risk-averse – a finding that is confirmed by the research compiled at Barnard College’s Athena Center for Leadership Studies. Indeed, the latest peer-reviewed studies show that women in the workplace tend to identify for themselves an aversion to taking bold, strategic risks – along with a reluctance to advocate for themselves, and a hesitation to engage in longterm visioning — as areas in which they themselves would like to grow. Sullivan argues that in today’s world, you should not stay in a safe environment that lacks challenges, but should “punch your ticket and move along” as the landscape for opportunity is so vibrant.

Her most provocative conclusions are grouped under a riff she calls, I think hilariously, “Stupid Things Women Do.” I recognize these from years of watching women pitch, and from presentations to me by young women seeking mentoring. “Be prepared,” she says. “Read the board package! Many women show up to the pitch meeting not fully prepared. Ask them pointed, informed questions. Pitch better! Spit it out of your mouth!” she laughs. “Tell me what you are building!” Indeed, there is often so much anticipatory language – what we in journalism call “throat-clearing” – in women’s pitches, that her advice to get right to the gist of the matter is invaluable.

“How do you get there?” she asks, of that perfect pitch? By testing it with your “personal board of advisors.” She adds that you have to “know how to execute and scale”; that women often “leave off the marketing plan.” Finally, she reminds us, “have domain knowledge” – whatever it is, in the sector in which you want to “play big,” you have to know your field and show that you do.

Finally – back to your “intelligent teams” — call the people around you to open up those doors. “That is what guys do,” she remarks. “They call their buddies. ‘You saw that guy last month – can you get me a meeting?’ Do you know women who do that?” she asks rhetorically, as we all know the answer. Sullivan, in fact, cites a study that shows that if a woman knew her best friend’s husband could fund her venture – she still would not ask him for investment. That hesitation to be “pushy” with one’s peers, alone, is a real disadvantage for women.

The beauty of a role model such as Jeanne Sullivan is that she makes geeky, tech-savvy, knowledgeable, ambitious, even pushy advocacy for one’s own idea – seem really charming, inspiring, amusing, delightful, and eminently do-able. Sullivan sees a different future for the young women of today with their own ventures and dreams: “I see a kinder, gentler user interface of women VCs and Angels” she says. “Not gentler in the sense of softer but – they want you, young women, to succeed.”

With Sullivan’s advice and example, many more of them surely will.

By Naomi Wolf

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Update 2015: Is the FTSE 100’s Boardroom Progress real?

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BoardRoomThe news is out…at 23.5% the representation of women in the UK FTSE 100 boardroom has doubled over the past four years (12.5% in 2011), with the voluntary 2015 target of 25% within close reach. But is that number standing on stilts?

The race by businesses and government to hit the UK number has been a voluntary effort to avoid the threat of EU-imposed gender quotas. But the resounding press response to the latest annual report is a round of hands flying up to question how a weak executive pipeline is going to deliver sustainable change in the British boardroom. Not to mention the implications of a serious gender imbalance when it comes to executive directors.

Overall FTSE Numbers Reveals Progress & Room to Grow

Released in the Women on Boards report and crunched by Cranfield School of Management, the FTSE 100 numbers show progress at the top. There are now 263 female directors, with only 17 more to appoint this year to meet the target. There are no longer any all-male FTSE 100 boards, and 41 companies have over 25% female boards (vs 12 in 2011).

FTSE 250 numbers reveal significant rates of change, but ultimately still low numbers with only 18% women representation on boards (vs 8% in 2011) and 23 all-male boards remaining (vs 131 in 2011). The UK now ranks fifth among Europe in terms of the number of women on boards.

“We must celebrate this outstanding achievement and the change in culture that is taking hold at the heart of British business. The evidence is irrefutable: boards with a healthy female representation outperform their male-dominated rivals,” said Vince Cable, Britain’s business secretary. Cable expects to see 1/3 representation by 2020.

He commented, “We know that’s where the tipping point lies in influencing decision-making. We must also focus on ensuring women are rising fast enough through the pipeline and taking up executive positions.”

“The tide is turning as we see senior women in every sector and across all industries, breaking through the barriers to succeed at the highest levels,” said Education Secretary Nicky Morgan.

However, both Cable and Morgan are quick to point out the significant work yet to do, namely and glaringly on the female executive pipeline.

Behind the Numbers, A Glaring Gap In Female Executives

Looking closer at the FTSE numbers reveals a deeper story – a serious dearth of female executives, setting for a gender “executive” imbalance in the boardroom.

Woman make up less than 1 of 10 executive directors in the FTSE 100 – comprising 8.6% of executive directors, but 28.5% of non-executive directors. Since 2011, there’s been a 204% increase in female non-executive appointments (122 seats), but only a 33% increase in female executive appointments (6 seats).

Less than 10% of FTSE 100 female directors are executives whereas 30% of male directors are.

Even more worrying, women make up less than 1 of 20 executive directors in the FTSE 250 -comprising 4.6% of executive directors, but 23.6% of non-executive directors. All new additions since 2011 have come at the non-executive level.

Only 7% of FTSE 250 female directors are executives (vs. 17% in 2011) whereas over 30% of male directors are executives.

You can count FTSE 100 Women CEO’s on just one hand – because there’s five, and that number hasn’t changed since 2015. You’ll need two for the FTSE 250 Women CEO’s – there’s nine.

So British boardrooms are predominantly non-executive, but that’s nearly entirely true for women. This raises at least two big questions.

One is around stability of change. The other is around real influence.

Where are All the Executive Women?

The numbers certainly reflect a UK turnaround on research findings that women are less likely to be promoted to the boardroom if they haven’t held an executive position. But that doesn’t make for a stable model for continued growth.

According to Cranfield’s Dr. Elena Doldor, without more meaningful pipeline targets, progress will stagnate or slip.

“Our predictions suggest that as we approach 2020, women’s representation on FTSE 100 boards is likely to stagnate around 28%,” she shared. “There are still not enough women on executive committees or in the executive pipeline. Introducing aspirational and measurable targets for women at all levels is the only way to achieve real progress.”

Lord Davies also called for urgency in addressing “the loss of talented senior women from the executive pipeline.” Research shows female managers over 40 in the UK earn 35% less than their male counterparts. In more than one way, the pipeline isn’t supporting retaining women.

A recent survey showed a fifth of UK women believe it is “simply impossible” for them to reach a senior management role, and half reported that men make most of the decisions in their company. Yet a third dream of reaching CEO or board level.

Ann Pickering, HR Director of O2, who partnered with the CIPD on the research, writes, “A much wider cultural shift is required – and a hell of a lot more effort.” She continues, “It’s becoming a bit of a buzzword, but it really is all about the pipeline – ensuring that women at every level of the organisation are getting the support and encouragement they need to progress, so that a senior role is the logical culmination of that progression.”

One suggestion for comprehensive action put forth by Jude Browne, a Director of the University of Cambridge Centre for Gender Studies, is identifying “thwarted critical mass – situations in which a disproportionate number of women occupy positions at a certain level and yet the natural progression one might expect to see does not materialize.” In other words, addressing advancement for the masses of women that get stuck in the pipeline, in the place they’re actually stuck – not just at the top.

Browne asserts, “The Critical Mass Marker approach would ensure that people who are equipped with the relevant skills and experience are able to move up and across institutional structures irrespective of characteristics such as race or sex.”

Achieving Influence or Presence?

So, less than 1 in 10 women directors are executives. 1 in 3 male directors are. Those female non-executive board members are unlikely to be renumerated the same, even as their male non-executive counterparts. And will they pull equal per capita weight in critical decision making?

The jury is out. But according to an FT article, “Stella Creasy, shadow business minister, conducted her own research on FTSE 100 boards, and concluded that the drive to appoint women as non-executive directors meant they were ‘making up the numbers and not getting a chance to make the decisions’.”

The UK has everyone’s attention and is touting the business impact of women in the boardroom, but the surge has been motivated by a hope to evade gender quotas. That’s not the same as positive motivation towards gender diversity across the board (meaning, not only the board). Maybe the real opportunity, the one that’s held within the pipeline challenge, is to prove a multi-level commitment to real change.

By Aimee Hansen

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Unleash Your Leonardo Da Vinci

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da vinciJust the other day, I was speaking to a colleague, lamenting that we had to be professionally pigeonholed into categories.

Just choose one specialty, even when we have expertise in several others. It’s a sensible marketing strategy, but it feels so one-dimensional and we are multidimensional after all. The truth is that the average person will have as many as five or six different occupations and as many as 10+ jobs by the time he or she retires. We are to select, focus and also diversify to keep up with the emerging global and economic changes, especially in the fields of technology.

I’ve always admired Leonardo Da Vinci for his diverse talents and skill in many different areas in addition to the one he was most famous for-his painting. He was an adept and talented sculptor, musician, architect, mathematician, artist, inventor, engineer, writer, botanist, geologist and the list goes on.

Yes, he was special; yet we have the capacity of flexing our brains like muscles and expanding our talents and versatility like him. Our brains are capable of so much more than we imagine; we have unlimited potential. The key is to unlock it and make use of it! And we can. Leonardo gave us wonderful clues throughout his work, his writing and beliefs to stretch ourselves beyond what we think possible.

Da Vinci speaks of learning how to see and the importance of engaging our senses more fully, truly paying attention in new ways. He encourages us not to take anything for face value; instead, engage in inquiry and research. Test knowledge experientially to uncover truth, and just as importantly live true ourselves and to our life purpose. Rather than give up, be persistent, get comfortable with ambiguity, and be open to learn from mistakes we’ve made. So often, the answers come after much trial and error, not by walking away from a challenge, but by finding novel solutions through perseverance.

Leonardo used many different techniques to stimulate his own creativity, such as looking into various shapes and finding different patterns and associations. To innovate, whether in life or business, we have to look outside of ourselves, outside of the familiar and outside our industry to make new connection and associations. This is out-of- the-box thinking that can help us view challenges and experiences differently and produce unique results.

Da Vinci also spoke a lot about self-mastery which I believe is critical to making inroads in our growth. Not only do we have to show up for ourselves and others, but we need to gain control over our impulses and ourselves for success. Imagine an athlete or musician not being mentally or physically prepared for a concert or a competition; the outcome is likely to be unfavorable. The same principle applies to us. To learn something new and be successful, commitment, action and application are required. When passion is introduced, it’s more potent.

Da Vinci also spoke a lot about self-mastery which I believe is critical to making inroads in our growth.

He urged us to take time out from work in leisure, refresh ourselves and clear our minds which can stimulate new ideas and sprout new perspectives. So often the answers we are looking for appear almost magically when we’re in a relaxed mode. Da Vinci was a strong champion of lifelong learning. Find ways to continuously expand your own knowledge and awareness in many areas including yourself, love and the natural environment. His beliefs about valuing and respecting all of nature and the environment still apply today with the focus on sustainability. An astute observer of nature, man and all things, he believed in the strong interconnectedness of everything.

You can ignite your own creativity by making connections between dissimilar things. At first you won’t know how they can connect, but that’s what gets your brain actively blending up new combinations to amaze you. We each have multiple intelligences that call to be awakened in us Like Da Vinci, awaken them.

Dr Jo Anne White is an International Author and Speaker

Certified Professional Coach who gets to the heart of what matters most to businesses and people. With 25 years in Education, Business, Leadership and Energy Medicine, she’s helped millions of individuals & organizations shape their own dreams, master their own success and triumph in business and life. Dr White’s been featured online and in publications such as Good Housekeeping, More, and WebMD. She’s also appeared on Radio and Television Networks such as NBC, CBS, and FOX. Dr Jo Anne White is the Executive Producer and Host of the POWER YOUR LIFE TV & Radio Shows.

Guest Contribution by Dr. Jo Anne White

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Having a baby? Why choosing the right employer will make your life better

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returnersOff the back of Facebook and Google’s announcement that employees will get financial assistance if they want to freeze their eggs, we look at what happens if you decide to take the plunge and have a child now. As any woman in the workforce or with a family can attest, there is no such thing as perfect timing when planning a baby but if you are thinking of doing it you need to choose your employer wisely. All employers are not created equal with leave and benefits especially in the U.S. where is the only one offering no paid compensation for maternity leave out of 21 high-income countries.

Read more

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A Single Mom’s Guide to Career Advancement (For Any Working Mom!)

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happy working womenIt was one of those days…rushing to pick up my daughter from daycare, scrambling to make dinner, dealing with an after-hours call from a new boss to discuss an important initiative, while at the same time my daughter was excitedly asking me to come join her for a tea party. That’s when it hit me . . . I was a true single, working mom.

The US Census Bureau cites that in 2012 more than 80% of 12.2 million single parent families were headed by women. That means there are 9.7 million of us dealing with not only the mundane issues of getting the oil changed and folding laundry, but fears about our career options, our personal lives, and that question any parent on a career path faces, “how can I foster professional growth when I have to foster my children’s growth?”

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Reckoning with Institutional Double Standards on International Women’s Day

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IWDBy Melissa J. Anderson (New York City)

What is it that keeps women from ascending to executive levels in business in numbers comparable to men? It’s not for lack of commitment or ambition. It’s not a matter of skill level or about being “tough enough.” It’s not even about negative perceptions on women’s ability to turn a profit.

What it is, is bias. It’s a culture created by men and women that offers men greater opportunities to succeed, while holding women to higher standards. And now, finally, the American public is actually coming to terms with the double-standards keeping women out of leadership roles. In fact, in a recent Pew survey, the majority of respondents acknowledged that women do, in fact, face a tougher road to the top, even today.

“Americans widely believe that men have a better shot at leadership positions in business and politics, even as majorities say that men and women make equally good leaders,” the Pew report states.

In the survey, majorities (including both women and men) agreed that there aren’t many women in executive leadership because companies simply aren’t ready to hire women leaders. It was also recognized that it is because women are held to higher standards than men. Yet, respondents also said women would do just as good a job as men.

The Pew study illuminates a point of view The Glass Hammer has supported for many years. That is: women are not the ones who need changing. The reason women are not advancing into senior leadership roles in greater numbers is because they are locked out by institutional, systemic biases that favor men over women implicitly.

Yet, this runs contrary to so much of the professional advice offered to women – to do more of this or less of that, to behave more in one way or another. Lean in, lean out, be nice, be tough, always wear heels, never let them see you cry. These pieces of advice may work for some women or they may not. Many women may find power or inspiration there, while others may find them empty promises. But they will not fix the problem that persists to this day, that the corporate world is set up to give the benefit of the doubt to men over women every time when it comes to promotion and advancement.

As of January, there were only 26 female Fortune 500 CEOs, according to Pew. And it’s taken 20 years to reach that puny five percent threshold. This year’s International Women’s Day theme is “Empowering Women, Empowering Humanity: Picture it!” At this rate, what will the picture of women in leadership be in another twenty years? Is ten percent good enough?

We, as a culture, can do vastly more for women and we should. It will take work by all of us, though, and real acknowledgment from powerful business leaders – both male and female – that double standards are keeping talented, driven women from succeeding. Change starts at the top but is lived by everyone.

Double Standards by the Numbers

Looking at Pew’s numbers, it’s clear that the majority of respondents – a sample of almost 3,000 US adults – agree that women face double standards in the workplace.

Two-thirds of respondents (67 percent) said the reason there aren’t many women running major corporations is that many businesses just “aren’t ready” for to hire women for top jobs. Two in five (43 percent) said this was a “major” reason there weren’t more women in executive positions while 24 percent cited it as a “minor” reason.

Almost the same share (65 percent) of respondents said that women have to “do more to prove themselves,” and the “major” and “minor breakdowns were almost identical.
In comparison, 58 percent of respondents said they believe women’s responsibilities to their families don’t leave much time for executive leadership, with a quarter (23 percent) designating this is a “major” factor that there aren’t more women running companies, while 35 percent cited it as a “minor” factor.

Respondents were also asked to compare whether men or women are more suited toward certain characteristics. A third (34 percent) said women were better at “working out compromises,” while only 9 percent said men were better at that task. Over half (55 percent) said there was no difference between the genders here. Similarly, 31 percent said women were better at being “honest and ethical,” while three percent said men were, and 64 percent said there was no difference between the genders. Three quarters of respondents said there was no difference between the genders when it came to “negotiating deals,” while 18 percent said men were better suited to this task then women, and seven percent said women were better suited to it.

Finally, a third (34%) said men were better at being willing to take risks than women, while five percent said women were better than men at taking risks, and 58 percent said there was no difference between men and women here.

Indeed, men’s propensity for risky behavior has been studied, lauded, condemned, and questioned in equal measure.
Perhaps its time for men, who make up the vast majority of senior business leaders, to take a risk and openly support the advancement of women, by using their influence to challenge unfair workplace institutions and gender biases.

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How To Negotiate Effectively: A Winner’s Guide

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happy man with womenGuest Contribution by Molly Fletcher

For nearly two decades, I worked as one of the only female sports agents in the industry, negotiating contracts and marketing deals for a client list of top athletes, coaches and broadcasters.

I left my career as a sports agent to start my own company because I believed there were lessons I learned within the sports environment that could help people in the business world become more productive. One of those lessons—how to negotiate effectively—inspired my most recent book, A Winner’s Guide to Negotiating: How Conversation Gets Deals Done.

My advice applies to anyone who wants to be a good negotiator, but is geared specifically towards executive women. Research has shown that there is a social cost for negotiating that is statistically significant for women and not for men. Instead of examining all the complex reasons why that is the case, I focused on how women can be more effective when they enter their next negotiation.

Set the Stage

Setting the stage refers to gathering all types of hard data and marrying it with qualitative information to create a compelling case. When clear standards for negotiation exist, women actually negotiate at about the same rate and just as effectively as men—so the more data you can arm yourself with, the more confident you can be in your ask. It’s also about 360 degree awareness. You have to get clear on the goals, needs, gaps, values and fears of the other side. What do they value? How do they define success? Is this the right time to make the ask?

Add value

The best thing you can do to put yourself in a successful position to negotiate is to find ways to add value. Most negotiations don’t happen in one meeting. They are built over time, through conversations and relationships. The more you can do to add value to these partnerships, the higher your chance of success when you make your ask. Put yourself in the shoes of the other person and determine what gaps exist and how you can be a solution.

Build relationships

Ask yourself, do I have someone within this organization who is willing to go to bat for me? Be intentional about building strong relationships and find someone who you can trust to advocate for you. Some of the most important conversations about your future happen when you aren’t present. Having a senior leader advocate for you is like having an agent negotiating on your behalf.

Be authentic

Too often, women feel pressured to become somebody else when it comes to negotiation. As I share in my book, effective negotiation isn’t a battle between wills, it’s a conversation between people. Approach the negotiation as you would an important conversation. People respond better to consistency and you will be more comfortable with the ebb and flow if you are in your own comfort zone. Use your own strengths to your advantage instead of copying what you perceive to be as the most effective negotiating styles.

The greater good

Research has also revealed that women who negotiate on behalf of others are generally perceived in a positive manner. That’s why it’s particularly important for women to take a big picture approach when negotiating on their own behalf. Frame up the negotiation from the “we” perspective. How is what you are asking for going to benefit the organization as a whole? How have you contributed in ways that have added overall value? The more you can get into the head and heart of the other side, the better you can frame up the conversation as a win-win. Demonstrate that you understand their perspective, and aren’t approaching this conversation from your own self-interest.

Why is negotiation so important for women? First, it’s a small but important piece in closing the wage gap. The importance of negotiation, however, goes beyond just money. When women don’t negotiate, they sacrifice more than just money. They sacrifice opportunity—for training, growth, leadership, recognition and promotions. It becomes a cycle, because in order to change the stereotypes and expectations about women negotiating, we must have women in leadership positions. This was a huge part of my motivation for writing my book—not just to inspire individuals to ask for what they want but to spark a greater conversation that leads to change.

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A mutually beneficial approach to engaging men to advance women

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Elegant leaderMuch of what I read about advancing women’s careers has been from the perspective of women. Although this is an important dialogue that we must continue, we are all—women and men—responsible for maintaining a diverse, inclusive culture. By bringing men—especially business leaders—into the conversation, we can reach the best possible solution, so that everyone walks away from the table feeling like they have gained something.

As part of my role at PwC, I lead a series of dialogues with our male leaders that aim not only to educate but also to provide a forum for talking candidly about the challenges they face as they work to strengthen the sense of inclusion our professionals feel in our firm. Bob Moritz, PwC’s chairman and senior partner, has set the tone at the top by prioritizing diversity and inclusion; creating lasting change, however, this requires that all our partners, principals and staff participate in bringing that vision to life.

We have made significant progress, but this journey requires patience, courage and the ability to communicate across differences. In a negotiation, when the parties stop communicating, the process can break down.

Before I delve into what men stand to gain from supporting the advancement of women, let’s take a look at a few ways communications can break down and what we can do about them:

1) Failed connections – In their recent New York Times article, “Speaking While Female,” Sheryl Sandberg and Adam Grant examined an unpleasant gender bias professional women often face during meetings: the risk of being interrupted and unheard (although a man saying the same thing will get nods of approval) or the risk of being disliked or considered too aggressive. For example, a male TV producer helped craft a solution (no interruptions during pitches) that made the entire team more effective. Had the suggestion come from a woman, it might also have gone unheard – thus highlighting the important role men can play in recognizing subtle biases and leveling the playing field for women, so all perspectives can be heard.

2) Fear of engagement – All too often, even well-meaning men don’t speak up for women because they fear making a mistake or being criticized. For example, some white males at PwC have voiced concerns about being automatically labeled “the bad guys” during diversity discussions. As another article by Adam Grant pointed out, individuals struggle to speak for or help groups with which they don’t identify. That changes once the individuals feel they have a vested interest. Helping men and women build stronger relationships and identify opportunities for mutual gain, such as through candid and collaborative dialogues, can be a big part of the solution.

3) Questioned intent – I’ve also heard from well-meaning men that they sometimes feel that women resist their efforts to reach out. Women either did not realize assistance was being offered or they wanted to prove they could do it on their own. We all need to be more attuned to those around us and give them the benefit of the doubt. And men may need to re-examine their approach to help make sure that it is respectful and authentic without the implication that men are here to solve women’s problems.

So with these potential pitfalls in mind, what do men (and the organizations they work for) stand to gain from stepping out of their comfort zone and helping advance women’s careers?

1) Enhanced leadership skills – Investing in relationships and building trust are key leadership skills. When men sponsor and mentor only those who look like them, they overlook important leadership opportunities and alienate potential allies. At PwC, we require our firm leaders to have had distinctive experiences working with diverse professionals, because we believe it will help them broaden their perspectives, while creating a more inclusive environment.

2) Financial success – Many organizations tie leaders’ salaries and promotions to the success of their unit or the overall organization. Several studies show that organizations perform better when women are well represented. PwC’s own research also demonstrates the critical importance of this issue. Bottom line: Diversity drives innovation—a necessity in today’s fast-changing business world. Moreover, when women feel leaders appreciate their contributions and are optimistic about their professional futures, employee engagement increases and turnover decreases—another win-win, particularly given the shortage of skilled talent.

3) Market relevance – In an increasingly complex and global business environment, the ability to work, manage and communicate with people who are different from you is an essential skill. A better understanding of the challenges for women in the workplace can improve men’s interactions with clients and other stakeholders, who increasingly expect cultural dexterity from service professionals. Men who can easily and effectively work and build bridges with diverse stakeholders create opportunities for themselves and their organizations.

4) Personal gain – Like women, many men are more than just business professionals – they are fathers, husbands, uncles and grandfathers. Research from Catalyst shows that gender equality provides significant personal benefits to men, including better health and enhanced relationships with your spouse or partner.

With a lot to gain and little to lose, all men, particularly the business world’s white male majority, need to join the conversation about advancing women. The launch of the HeForSheCampaign’s “10X10X10” initiative, for which PwC is a founding sponsor, at the World Economic Forum in Davos last month, should help take that conversation to a new level, but we as a society still have a long way to go to drive lasting change.

As I’ve learned in my discussions, this change won’t come naturally to all. Organizations need to create safe forums where both parties can share their perspectives and educate their people, because even the most well-intentioned individuals may have blind spots. Women can help bring men into diversity conversations by inviting male colleagues to participate in women’s networking events and encouraging them to act as “allies.” I also encourage my female colleagues at PwC to reach out to senior male colleagues to find common ground. We are often surprised by how much we share in common, and how much both mentors and mentees learn from each other’s differences.

If both men and women can hear each other out and be open to new perspectives, the result can be a winning proposition for everyone in the room.

By Chris Brassell

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