Wake Up: We Need to Fix the Business Case for Women in Leadership

,

iStock_000011687553XSmallBy Melissa J. Anderson (New York City)

Fifteen percent. That’s how many women make up executive committees of American’s top companies. In Europe it’s only 7%. And in Asia – only 3%. That’s what 20-First revealed in this year’s WOMENOMICS 101 Survey.

And while these are all more than… say… zero percent, it’s nowhere near the 30% critical mass so many female leaders have called for, nor the company-specific gender balance approach advocated for by 20-First’s Founder and CEO Avivah Wittenberg-Cox.

What can we do to correct the imbalance? Wittenberg-Cox says it comes down to the framing of the issue. “When women consider themselves ‘diverse’ they are keeping themselves in the minority.” In actuality, women are not in the minority at all. For example, she continued, women make up 60% of Europe’s university graduates and 80% of consumers – both of which are clearly majority percentages. “Until women understand this, we will not convince the guys that gender is a strategic business issue,” she said.

Similarly, a recent survey of board directors [PDF] showed that the business case for women in corporate leadership is failing.

The study, by Heidrick and Struggles, WomenCorporateDirectors, and Dr. Boris Groysberg of Harvard Business School, showed that “More women directors than men felt that three ore more women on a board made it more effective (51% vs. 12%) and that women brought unique attributes to the board (90% vs. 56%).”

The 20-First analysis of Executive Committee gender balance and the Heidrick and Struggles study on board directors show one thing – we’re not getting anywhere fast when it comes to achieving gender parity at the highest levels.

Read more

/by

Nordic Countries Top Gender Equality List: What Are They Doing Right?

, ,

Confident business woman with other employee's at the backBy Melissa J. Anderson (New York City)

The World Economic Forum has just released its Global Gender Gap Report [PDF] for 2010. And for the second year in a row, Iceland topped the list as having the smallest gender gap. The report ranks countries based on gender balance related to economic participation and opportunity, educational attainment, health and survival, and political empowerment.

The report showed that across most countries, the gender gaps in heath and education are nearly closed, but parity is a long way off for economic and political attainment. The report says:

“However, the gap between women and men on economic participation and political empowerment remains wide: only 59% of the economic outcomes gap and only 18% of the political outcomes gap has been closed.”

The continued gap in these areas is a serious problem. When women across the globe are not considered as valuable as men economically or politically, we are ignoring half of our best and brightest individuals. It follows that companies and countries are only performing at half capacity. Vineet Nayar, Chief Executive Officer, HCL Technologies, said:

“The Global Gender Gap Report highlights serious gender inequities that need to be rectified. But just as important, it shines a light on the squandered resources that result from our failure to leverage female human capital. The report’s message is one that businesses must heed — not just out of fairness but because companies are wasting talents and skills that can generate significant competitive advantage.”

Read more

/by

5 Ways to Engage Men in Gender Diversity Initiatives

Senior business man discussing project on laptop with staffBy Elizabeth Harrin (London)

Gender equality is still an issue at work, but it is not a women’s issue. Gender initiatives have traditionally focused on improving women’s participation in the workplace, but recently (in sociological terms, anyway) there has been a shift towards making ‘gender’ a gender-neutral problem.

We need men to be part of the conversation on diversity. “The preponderance of men in leadership means their efforts are necessary to advance change in the workplace,” says Ilene H. Lang, President & Chief Executive Officer of Catalyst, a nonprofit membership organisation working globally to build inclusive workplaces and expand opportunities for women and business. “Research continues to show that diversity well-managed yields more innovation and is tied to enhanced financial performance – factors good for all employees.”

While it’s great news that the human resources professionals are creating a sense of inclusiveness, that hasn’t quite filtered down to the Average Joe in the office. Or the Senior Joe, for that matter. There are many men who ‘get it’ but there are still plenty who don’t. So how do you bring men onboard with gender initiatives, and start tackling this issue together?

1. Help men recognise that gender bias exists

“Before individuals can support a change initiative, they must first be convinced that there is something wrong with the status quo,” write Jeanine Prime and Corinne A. Moss-Racusin in their report for Catalyst, Engaging Men in Gender Initiatives: What Change Agents Need To Know. “For men to get behind their organisations’ gender initiatives they must first be persuaded that there is problematic gender bias in the workplace.” The research that Prime and Moss-Racusin carried out for their report shows that the higher men’s awareness of gender bias, the more likely men are to feel that achieving gender equality is important. The more aware the men in your workplace are, the more likely it is that they will support gender initiatives.

Read more

/by

New Regulations Mean New Jobs

Business meeting.By Elizabeth Harrin (London)

The Wall Street Reform Act introduced a raft of new rules with the aim of stabilising the U.S. financial systems. These rules now need to be implemented, and someone has got to do the implementing. Are you in the market for a new job? Maybe a move to the public sector is the right move for you.

The U.S. Securities and Exchange Commission alone is expecting to recruit for about 800 positions [PDF], according to Chairman Mary Schapiro. “A principal lesson learned from the financial crisis is that, because today’s financial markets and their participants are dynamic, fast-moving, and innovative, the regulators who oversee them must continuously improve their knowledge and skills to regulate effectively,” she said. “In response, we have created and begun staffing a new division, the Division of Risk, Strategy, and Financial Innovation.” This new division will look at new products and trading practices.

“As part of the now completed reorganisation of the Enforcement Division, we created five new specialised units, as well as a new office dedicated to the handling of complaints, tips, and referrals,” Schapiro added in her testimony to a House of Representatives sub-committee meeting. These units cover areas like asset management, structured and new products, and securities. “Each of the specialised units is in the process of hiring additional professionals with specialised experience to assist in investigative and enforcement efforts,” Schapiro said.

The SEC is not the only agency hiring. “The next year of rule writing will test the very talented staff of the CFTC [Commodity Futures Trading Commission],” said Gary Gensler, Chairman of the CFTC. “Our staff has significant expertise regulating the on-exchange derivatives markets that will translate well into regulating the over-the-counter swaps markets. Still, we need significant new resources.”

In addition, the Consumer Financial Protection Bureau is a completely new creation, and will need staffing from the ground up. Although we can assume that some federal staff will transfer in from other agencies, it’s also fair to assume that the Bureau will be recruiting.

So if you have always wanted a public sector job, this could be the moment to jump from the private sector. Be warned though, making the move to the public sector isn’t like getting another private sector position.

Read more

/by

Reframing Flexwork for the New Economy

,

iStock_000004944174XSmallBy Melissa J. Anderson (New York City)

Having weathered a recession that revealed inefficiencies, carelessness, and just plain antiquated business practices, companies are facing new demands from shareholders, employees, and customers alike: increased productivity, accountability, and sustainability.

And the solution to these demands may be an idea that has, for years, been relegated to the HR department or affinity groups, marked a “woman’s issue” and not taken seriously in the boardroom.

Judith Cherry, Head of Research and Insight at the UK-based organization Opportunity Now and author of the report “Out of Office: Solutions for an Agile Future” [PDF] explained, “We’re moving the debate away from flexwork – because we’ve come to the understanding that we’re all flex workers. What we’re doing now is “agile working.”

The distinction is important, she said, because agile working is about more than working from home, or using mobile devices. It’s a whole new system of management.

Read more

/by

Giving Top Brass a Hard Time: A Brief History of Women in Corporate Governance

Black business woman in conference with associatesContributed by Jilaine Hummel Bauer, Bauer Consulting

If you read the news story run under the headline, “Woman of Steel Gives Top Brass a Hard Time,” about an activist shareholder who objected to executive compensation and introduced a “say on pay” proposal at an annual shareholders meeting of a large, prominent U.S. public company, you might think the story had run yesterday. Would you believe the story actually ran in Life Magazine back in March 1950?

Wilma Soss, the story’s protagonist, introduced the proposal at a U.S. Steel shareholder meeting. Founder of The Federation of Women Shareholders of America, Ms. Soss espoused the goal – now broadly supported not only by investors, but also by a growing number of companies, governments and regulators around the world – to increase the gender diversity of corporate boards.

Her campaign literature featured Matisse’s painting Girl Asleep with the caption, “AWAKE! You own 70% of U.S. Private Wealth!” Frustrated by company management’s “old fashioned thinking,” she reportedly threatened to appear at a future shareholders’ meeting in a bathing suit – circa 1902!

Many who support “say on pay” shareholder proposals and increased board diversity will relate to Ms. Soss’ frustration, and some might even consider the tactics she threatened at future shareholder meetings and Congressional hearings. However, there are events –albeit not as eye catching – from 1950 to present day that are notable for their effect on corporate governance in the United States today.

Read more

/by

Back to Work Wisdom: New Directions

Businesswoman using smart phoneBy Melissa J. Anderson (New York City)

As the definition for work-life balance continues to evolve, more and more people are choosing to take a “career break” to concentrate on family and personal priorities. This trend has created a new area of focus for employers: how do companies address the gap in experience and the inherent challenges faced by candidates returning to the workforce? The Goldman Sachs New Directions program aims to provide on-rampers with guidance on how to successfully get back in the game and secure a position.

“The biggest question we are asked is: what skill set do returners need to sharpen prior to on-ramping?” said Monica Marquez, Diversity Practitioner at Goldman Sachs.

The question and answer panel of Goldman Sachs’ New Directions program is one of the most popular segments of the half-day back to work program. Developed in 2006, the New Directions half-day conference helps individuals transition back into the workforce after a voluntary career break.

“We often hear from returners that they have maintained their core skills but are rusty on new technical developments such as a new version of Microsoft Office or how to use a Blackberry,” Marquez said, “It may seem simple but can pose a real challenge if not addressed early on”

Read more

/by

Addressing the “Business Case” Against Diversity

diversity tableBy Tina Vasquez (Los Angeles)

The business case for diversity has become a popularly held belief and it’s something we’ve discussed at length here at The Glass Hammer. The reasoning behind it is very simple: When board directors and top level executives are too much alike, they think too much alike and in turn, look at both problems and solutions the same way. By contrast, having a diverse group of people in the upper ranks of a corporation leads to diversity of solutions, innovations, better governance, and the type of outside-of-the-box thinking so desperately needed in the corporate world. Many studies have also found that diversity increases sales revenue, customer numbers, and profitability. What’s not to love?

Unfortunately, there is a growing body of evidence that seems to suggest diversity does not deliver, at least in the short run. Many companies have reported little to no change in their performance. This is even true for Norway, where a 2002 law requiring 40 percent of all company board members to be women has – in some cases – been detrimental to companies forced to comply. A recent study by the University of Michigan has found that a drastic increase in women to Norway’s boardrooms has done very little to improve corporate performance or enhance the professional caliber of the country’s boards. Even more unsettling is the idea that making efforts to diversity corporate boards and executive suites is actually creating conflict and other unforeseen problems. Here’s our take on a few of the problems companies have run into while implementing diversity initiatives – and how to fix them!

Read more

/by

Hit the Hardest by the Recession, Female Baby Boomers Make Transitions

baby boomerBy Tina Vasquez (Los Angeles)

Many have been hit hard by the recession, but according to the United States Department of Labor, perhaps no one more so than women of the baby-boom generation. According to the Department of Labor, the number of women ages 45 to 64 who are long-term unemployed (out of work for more than six months) has more than doubled in the past year and at 900,000, that number is steadily growing.

Hundreds of thousands of working women have been put in an impossible situation: They want to continue working, yet they can’t find jobs in their field or jobs that pay well enough or jobs that they aren’t overqualified for, etc. And for many, retirement is not an option. Aside from economic uncertainties and investments, opting out of work while still having earning potential seems unwise during such tumultuous economic times. As a result, women who earned large salaries in high-ranking positions in the corporate world are having to adjust their plans and expectations in order to survive in today’s youth-orientated culture, all while working longer hours and for much lower pay.

Career coach Carole Hyatt is quick to point out that these types of transitions are difficult to adjust to at any time, but especially late in life. “Psychologically, some women are OK, but some are in very bad shape,” Hyatt said. “Many never married or squirreled away any money. They are feeling very unrooted and it’s been particularly tough for women in the financial sector, many of whom were living at a high level.” Some women, however, are deciding to make the most of this difficult time in their lives by going back to school, learning a new trade, or pursuing their true passions. Rosemarie Ashley is one of these women.

Read more

/by

Just Don’t Call Them Gender Targets: The Need to Move Diversity Hiring into the Open

Business meeting.By Tina Vasquez (Los Angeles)

Finding a U.S.-based company willing to go on the record and discuss their efforts to recruit, hire, and advance women is an easy task – if the phrase “diversity effort” is used. Getting the same company to discuss “gender targets” is impossible; they have no such practice in place. Or so they say.

Gender targets – or gender quotas – have been getting a lot of buzz lately and it’s a topic that gets impassioned responses from women on both side of the fence. The idea of making it law that a specific number of women need to be hired still seems radical, even to more egalitarian societies such as Norway’s. Back in 2002 when the country’s trade and industry minister, Ansgar Gabrielsen, proposed a law that would require 40 percent of all company board members to be women, many Norwegians were staunchly opposed – and to their dismay, the measure was eventually approved. At the time, women held less than 7 percent of board seats and less than 5 percent held chief executive positions.

Before the measure was passed, the number of women on boards was growing by less than 1 percent a year for ten years, leading some to believe that it would have literally taken 200 years to have boards comprised of 40 percent women. Nearly eight years later, roughly 400 companies have a board comprised of 40 percent women and Norwegian women fill more than 25 percent of board seats in the country’s 65 largest privately held companies. Obviously these numbers are good for women, but is the business case for diversity holding true? Are women improving the companies they serve?

Read more

/by