iStock_000005080703XSmallBy Melissa J. Anderson (New York City)

“All mentorship is not equal,” said Debbie Soon, Vice President of Executive Leadership Initiatives at Catalyst. Soon said she was shocked by the huge discrepancies between men and women, which were revealed by a report released today by the organization. According to the report, men benefit significantly more from mentoring than women do.

How much more? $9,260.

Once again: $9,260. That’s how much more men with mentors make in their first post-MBA job than women who also have mentors. Men get a considerably higher promotional increase as well, compared to women.

Why the discrepancy? According to Soon, it comes down to quality. “Women seek mentors, but men seek sponsors,” she said. Men tend to have mentors who are higher ranking, higher paid, and have more influence in the organization – in other words, sponsors, who are willing to spend their own personal political capital to advocate on their behalf.

“Mentorship is not sufficient,” said Soon. “Sponsorship closes the gap.”

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Beth 005Contributed by Beth Collinge of CTG – a division of ILX Group plc.

Economic Backdrop

  • There were broad gains for global equity markets as a result of improved economic news around the world.
  • The 10-year US Treasury yield climbed to 3.3%, one percentage point higher than its October low, following the biggest two-day sell-off this year. The move came after President Barack Obama agreed with Congressional Republicans to extend Bush-era tax cuts and combine them with a $120bn payroll tax holiday. Government bond markets across the globe followed the move up: the German Bund yield rose 10bp to 2.9%, while the 10-year UK gilt yield added 10bp to 3.5%.
  • On the currency markets, the euro was under some pressure due to unease about the outlook for peripheral eurozone nations, following fresh signs of disunity among EU leaders over the expansion of the region’s rescue fund and the question of joint European government bonds. It was not helped by news that Fitch had downgraded Ireland’s sovereign debt rating to BBB plus.
  • In commodities, gold touched a nominal record high of $1,430.95 an ounce immediately after the US tax cut announcement, before falling back with profit taking. Silver also briefly rose to a 30-year peak of just over $30 an ounce.
  • In its December monthly meeting the Bank of England’s Monetary Policy Committee left rates at 0.5% and maintained the existing level of quantitative easing at £200bn.
  • A CBI survey showed that export orders for UK manufacturers were at their highest levels in more than two years, but that the prices producers had to pay for oil and other commodities could force them to raise prices.
  • The Halifax House price Index showed the first year-on-year decline in house prices this year: the average property is now worth £164,708 – 0.7% down on a year ago.
  • The Office for National Statistics (ONS) said that Britain’s goods trade gap with the rest of the world widened to £8.5bn in October, the highest since records began in 1992.
  • U.K. retail sales climbed in November as higher food-price inflation pushed up values and cold weather boosted demand for clothing and footwear.
  • Beijing again raised the reserve ratio requirement for banks on Friday by 50 basis points, for the sixth time this year, leading to uncertainty over monetary policy in China. Though some believe the move reduces the chance of an imminent rise in Chinese interest rates, most people still expect a move before year-end.

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iStock_000011341305XSmallBy Elizabeth Harrin (London)

It’s the holiday season, and while it’s not compulsory, many mentors and managers like to find small gifts for their mentees and team members. The Glass Hammer has gathered the top business books that will grace any Christmas stocking this year. Enjoy!

1. Get-It-Done Guy’s 9 Steps to Work Less and Do More by Stever Robbins

This excellent book by time management expert Stever Robbins covers everything you need to know to be more productive at work. “The best way to work less,” he writes, “is to make sure you only do work that helps you reach your goals.” It’s a witty, entertaining book with advice on managing emails and other technology, handling meetings, structuring your working week and getting things done. “I’ve seen people spend an entire weekend formatting a presentation to get the perfect fonts, with perfect animated sparkles at perfect junctures… ‘It has to be perfect for the board of directors.’ Get real. The board of directors cares about the substance. They know how to add sparkles, they don’t know how the division is doing. Perfectionism is sucking up time.”

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wireless communicationBy Kelly Tanner (New York City)

A recent study published in the British Journal of Social Psychology concluded that female leaders are preferred during a crisis. This study, “The glass cliff: When and why women are selected as leaders in crisis contexts,” notes that when a company is in crisis, the perception of what constitutes an ideal leader shifts to someone with stereotypically non-male characteristics.

According to the study, since the feelings regarding what men bring to the table have shifted, the woman candidate is viewed as more effective, essentially by default, since men are seen as unqualified. On the other hand, the phenomenon is dubbed “the glass cliff,” because the troubles the company may be facing are seen as so insurmountable that the woman who has been selected to lead the company will probably not succeed, and thus, be sacrificed – pushed off the cliff.

What is interesting in this phenomenon is that the perception of female leaders does not change markedly – women are seen as stereotypically nurturing caretaker types in the study using a fictional successful business scenario and also a crisis situation. In essence, female leaders are best perceived to clean up the mess in a bad situation, after other options have been exhausted.

This preference for a female leader increases when the last several leaders have all been male, indicating a desire to break from a pattern. In the BJSP study, researchers Susanne Bruckmüller and Nyla Branscombe explain:

“Our findings indicate that women find themselves in precarious leadership positions not because they are singled out for them, but because men no longer seem to fit… There is, of course, a double irony here. When women get to enjoy the spoils of leadership (a) it is not because they are seen to deserve them, but because men no longer do, and (b) this only occurs when, and because, there are fewer spoils to enjoy.”

Even if the female leader does manage to clean up the mess, the researchers imply, she will not be seen as deserving of accolades as her male counterparts. The woman was a last resort – not the first choice.

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annapinedoBy Melissa J. Anderson (New York City)

“If you’re good at what you do, most people will understand different approaches and work styles,” said Anna Pinedo, a Partner in the Capital Markets Group at Morrison Foerster. She advises women entering law “not to assume that there is any one right path.”

“The one rule I’ve leanred is that there aren’t any hard and fast rules to follow,” Pinedo said. She continued, “All along, colleagues, clients, and friends have given me career advice. I listen carefully, but decide things for myself.”

Having been named one of the Best Lawyers in America 2010, as well as featured in Crain’s New York Business “Forty Under 40,” Investment Dealer’s Digest “Forty Under 40,” and Hispanic Business‘s “100 Most Influential Hispanics, Pinedo has build a successful, globally recognized career in capital markets and derivatives law.

Her leadership advice for professional women is: “Spend time being involved in professional organizations, talking to colleagues at other firms, and building close relationships with clients – it’s amazing how helpful other people can be.”

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iStock_000007924915XSmallBy Stephanie Wilcox (Middlefield, CT)

Making it to the top in sports takes a lot of blood, sweat and tears. Making it to the top in business often takes the same three components. In fact, many of today’s female executives say playing sports taught them about competition and teamwork, which translates to their career. Is this merely an anecdote, or do sports really help make girls into future business leaders? One former executive gives a resounding “Yes!”

“I believe my basketball experience can be directly linked to my business experience and success,” said Mary Claire Bonner, who retired last March from Aetna. Before retiring, the New York resident was Senior Vice President of local and regional business (LRB) for Aetna, working directly for the company’s president and “running a large business that concentrated on small and mid-size employer health benefit needs in more than 30 states.” Reflecting on the position, Bonner discovered that her favorite part about leading others was creating a strong team. The skills to be good at this, Bonner noted, started in fifth grade when she joined the basketball team.

“Playing basketball changed me as a person,” said Bonner, who played from grade school through her junior year at one of Penn State’s Commonwealth campuses. “Because I was a point guard, I had to lead in setting up plays. We learned that it’s hard to lose, but losing makes you work harder. You have to be smarter; have a better strategy.”

Bonner points out that developing a strategy on a sports team is like the business concept of developing a strategy, being smart and working hard to win. Others have recognized the same parallel of sports and high achievers and are finding ways to encourage sports involvement. According to the Hall Of Fame Network magazine, the Women’s Sports Foundation, started by female tennis champion Billie Jean King, became established because, “Sport is where our children learn about teamwork, goal setting and the pursuit of excellence. In an economic environment where the quality of our life is dependent on two-income families, our daughters cannot be less prepared for the highly competitive workplace than our sons.”

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AnnDalyHighRes-2Contributed by executive coach Ann Daly, Ph.D.

Do you know what your boss really thinks of you?

Not really? Well, you’re in good company. It’s an open secret that women don’t get as much performance feedback as their male colleagues. It could be that male managers fear an “emotional response,” or it could be that they fear being perceived as harsh or harassing. Whatever the reason, women are denied a crucial ingredient in professional development and advancement. Because without specific, timely, and ongoing feedback, it’s much harder for you to build your capacities and your career.

So what’s a girl to do?

Stop waiting. If your boss isn’t going to initiate the conversation, then start it yourself! Feedback is one of the many things (like promotions, raises, assignments, mentors, and information) that you may have to ask for.

Here’s how.

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3 Professional WomenBy Tina Vasquez (Los Angeles)

A new study conducted by professors at Oregon State University’s College of Business found that female executives are more than twice as likely to leave their jobs – voluntarily and involuntarily – as men. This is true despite the fact that women now dominate the ranks of university graduates across nearly all fields and that most women, before the age of 30, are not only experiencing more success than their male counterparts, but they’re also making more money than them. The October study, which appeared in the journal Economic Inquiry and analyzed data from Standard & Poor’s 1500 firms, has left many wondering: what gives?

The study found that about 7.2 percent of women executives left their jobs, compared to 3.8 percent of men and both the voluntary rates (4.3 percent versus 2.8 percent for men) and the involuntary rates (2.9 versus 0.9 percent) were higher for women executives. Despite systemic evidence that women are more likely to depart from their positions, the researchers did not find a smoking gun.

“The evidence suggests that women are being drawn out and forced out at higher rates; however, we don’t see too much evidence of a systematic pattern in the types of firms that are forcing or having women drawn out,” said John Becker-Blease, lead author of the study and assistant professor of finance at Oregon State University. “So in a sense, it seems the playing field is uniformly tilted against women across firms.”

The study also found that women are more likely to leave smaller firms and firms with more male-dominated boards. Consistent with past research, the Becker-Blease’s research also indicates that women are more likely to leave a job due to domestic or social responsibilities than men, which explains the higher voluntary departure rate. When it comes to being dismissed from a job, Becker-Blease’s research just confirms something that we’ve known for a long time: women at the mid-levels of management may not be getting the kind of opportunities and professional support that they need to advance successfully to the top ranks.

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iStock_000008472982XSmallBy Elizabeth Harrin (London)

“In my 20 years of experience both as a practitioner as a VP of Operations & Supply Chain and as a Business Consultant and entrepreneur across multiple industries and globally, I’ve found that those work environments focused on results over presence are at least 80% more likely to achieve bottom line results,” says Lisa Anderson, President of LMA Consulting Group, Inc. “It is amazing how much effort and hours seem to be valued in the traditional business environment yet they have no correlation to business results.”

Results are what keep businesses in business, so it’s strange to think that the Results-Only Work Environment, or ROWE, movement is a relatively new thing. Developed by Cali Ressler and Jody Thompson, ROWE is different to flexible working policies: it says that you do what you need to do in order to achieve the specified results.

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Beth 005Contributed by Beth Collinge of CTG – a division of ILX Group plc.

This week’s financial news was dominated by the following Europe’s debt crisis entering a new phase when EU finance ministers agreed an €85bn bail-out for Ireland and the outline of a permanent mechanism to deal with future debt crises; ECB bond buying steadying the euro markets; and mixed US data dampening recovery hopes.

Economic Backdrop

  • At the beginning of the week, Eurozone ministers announced plans to replace the current €440bn rescue fund, the European Financial Stability Facility (EFSF), which was agreed after the Greek debt crisis, with a permanent European Stability Mechanism (ESM). The ESM will be similar to the EFSF, except that private creditors could be involved in future debt relief or restructuring. Eurozone bonds issued after June 2013 will contain “collective action clauses”, which will enable a majority of creditors to pass legally binding decisions to change terms of payment, such as an extension of the maturity of bonds and “haircuts”, or discounts, on the price paid. The mechanism distinguishes a “solvency” crisis from a “liquidity” one, with bondholders in insolvent countries expected to share in the losses.
  • At the same time the EU agreed the Irish bail-out, using the €750bn emergency funding system established after the Greek debt crisis in May. The Irish package totals €85bn, to which the IMF will contribute €22.5bn, Ireland will contribute €17.5bn and Europe will contribute €45bn. The latter will come from both the European Financial Stability Mechanism, a fund overseen by the commission and backed by the EU budget, and from the European Financial Stability Facility, backed by the 16 members of the eurozone. Bilateral loans have been promised by Sweden, Denmark and the UK. The UK will provide €3.84bn in bilateral loans, and will also contribute €3.1bn to the EFSM money, since British banks, particularly RBS, which is now largely state-owned, have very significant exposure to Ireland.
  • The €85bn will be split: €50bn will provide funding for the Irish state and €35bn will go into the banking system. The initial capital injection into the banks will be €8bn, most of which will be divided up between the two largest banks: Allied Irish Banks and Bank of Ireland. They will also have access to €2bn of funds that will be used for loan portfolio protection, taking the total upfront support to €10bn. The banks will have a further €25bn of contingent capital that they can use to cover future losses on loans, to ensure their core tier one capital ratio remains above 10.5%.
  • The European Central Bank (ECB) left its benchmark interest rate unchanged at its regular policy meeting, as expected, and announced an extension of its full allotment of refinancing facilities until April next year. However, the central bank stopped short of announcing a major increase in its programme of unsterilised purchases of eurozone government bonds, as many in the markets had hoped for.
  • Eurozone retail sales rose by 0.5% in October compared to the previous month. The highest monthly increase was logged in Germany, up 2.3%, with the highest annual improvement among all European Union states coming in Poland, which jumped by 12.8%.
  • Unemployment across the eurozone crept up to 10.1% in October, according to Eurostat, as inflation held firm at 1.9% in November. The rise in the unemployment rate reflected an estimated 80,000 more people out of work in October. The highest rate, 20.7%, was seen in Spain, which the markets fear may soon need external financial assistance.
  • Spain announced a number of measures to restore confidence in its solvency: it said it is on track to cut the budget deficit from 11.1% of gross domestic product in 2009 to 9.3% this year and 6% in 2011. Spain has raised tobacco tax, reduced wind power subsidies and brought forward pension reform. It will cut its new sovereign debt issuance by about a third next year compared with its original plans, and will privatise parts of the state lottery system and the airports authority.
  • In the US the jobless rate rose to 9.8%, the highest since April, as only 39,000 jobs were added in November, far worse than forecast, and not fast enough to keep up with population growth. Though private sector employment rose by 50,000, there was a drop of 28,000 in the retail sector, and an 11,000 fall in government jobs. Average hourly earnings and the average work week – both important indicators of future hiring – were flat compared with October. Although the population continues to grow, the percentage of adult Americans with jobs fell to 58.2%, compared with pre-recession levels of about 63%. Payroll data are important because they give an up-to-date reading on what is happening in the labour market. The number of Americans with jobs and how much they are paid is a guide to how much they will consume, which, in turn, is an indication of how much the economy will grow. Orders placed with U.S. factories fell in October for the first time in four months, as demand for durable goods also slowed.
  • Growth in UK service sector activity fell slightly in November, indicating a slowdown in overall fourth-quarter economic output and hence no change to monetary policy in the near future. Overall, the survey suggests the services sector is not expanding as quickly as the manufacturing sector, where activity picked up at its fastest pace in 16 years in November due in part to strong exports.
  • Oil prices rose to their highest in more than two years as a result of very cold weather increasing demand, as consumers and electricity producers consume more oil. There is also increased demand in China, due to residents using diesel to generate power, in an unintended consequence of efforts to meet national energy and environmental targets.
    Commodity prices were higher across the board: copper neared record levels, and during the week gold rose above $1,400 an ounce, close to November’s nominal record high of $1,424.10.

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