women in leadership

The Business Case for Developing Women Leaders The “gender dividend” is real

Women in Leadership

• The Gender Gap

– Where are we now in terms of gender diversity?

• The Gender Dividend

– Why gender diversity matters to your bottom line.

• Reaping the Gender Dividend

– What you can do now to reap the “gender dividend.”

The Gender Gap

4 © Interaction Associates Inc.

At the highest levels of the American workforce, fewer than 20% of the top leadership jobs are held by women, according to a national study reported in November 2013.

"Benchmarking Women’s Leadership in the United States, 2013“, University of Denver.

In Europe, women make up 45 percent of the workforce—with more than half college graduates—yet they comprise only 11 percent of corporate executives.

Executive Director Michelle Bachelet, quoted on unwomen.org

One 2013 study found that women make up about 48% of the overall public sector workforce, but represent less than 20% of public sector leadership across the

G20 countries studied.

Worldwide Index of Women as Public Sector Leaders, 2013, Ernst & Young.

In Japan, just 7% of senior roles are occupied by women. The UK (19%) and the USA (20%), are in the bottom eight countries for women in senior management globally.

Grant Thornton International Business Report 2013.

It’s not a pretty picture.

The Gender Dividend

The Gender Dividend: Women leaders deliver. . .

• Better business and financial performance.

• A diverse perspective.

• Key insights into consumer behavior.

• Public goodwill.

Women control roughly US $20 trillion of total consumer spending, and influence up to 70-80% of buying decisions. Because of this, women have unique insights into consumer preferences and choices.

GfK MRI, Survey of the American Consumer (2011).

McKinsey found that the 89 European-listed companies with the highest proportions of women in senior leadership positions and at least two women on their boards outperformed industry averages for the Stoxx Europe 600, with 10% higher return on equity, 48% higher EBIT (operating result), and 1.7

times the stock price growth.

McKinsey & Company, Women Matter: A Corporate Performance Driver (2007).

Since 2004, a series of studies by Catalyst has shown that companies that achieve diversity in their management and on their corporate boards attain better financial results, on average, than other companies. Nancy M. Carter and Harvey M. Wagner, The Bottom Line:

Corporate Performance and Women’s Representation on Boards (2004–2008) (Catalyst, 2011).

A 2011 study found that companies with the most women board directors outperformed those with the least on return on sales (ROS) by 16% and return on invested capital (ROIC) by 26%.

Nancy M. Carter and Harvey M. Wagner, The Bottom Line: Corporate Performance and Women’s Representation on Boards (2004–2008) (Catalyst, 2011).

Studying 15 years of data on the management teams of S&P 1500 firms, researchers found that more women in top management improved the performance of firms that were heavily focused on innovation.

Cristian L. Dezsö and David Gaddis Ross, “Does Female Representation in Top Management Improve Firm Performance? A Panel Data Investigation,” Strategic Management Journal, vol. 33, no. 9 (September 2012).

Companies with sustained high representation of women—three or more women board directors in at least four of five years—significantly outperformed those with no women board directors.

Nancy M. Carter and Harvey M. Wagner, The Bottom Line: Corporate Performance and Women’s Representation on Boards (2004–2008) (Catalyst, 2011).

Companies with more women board directors outperformed those with the least on 3 financial measures: return on equity (53% higher), return on sales (42% higher), and return on invested capital (66% higher).

Lois Joy, Nancy M. Carter, Harvey M. Wagner, and Sriram Narayanan, The Bottom Line: Corporate Performance and Women's Representation on Boards (Catalyst, 2007).

© Interaction Associates 18

Three key actions organizations can take to develop Women Leaders.

© Interaction Associates 19

Three Keys to Success

• Educate women and men about 2nd generation bias.

• Create distinct, clear paths for women to transition to bigger leadership roles.

• Anchor women's development efforts in a sense of purpose, rather than in how women are perceived.

Women Rising: the Unseen Barriers, Kolb, et al. HBR, September 2013

Women in Leadership

• A workshop that targets women, readying them to advance into leadership positions.

• Three days focusing on four key areas.

• Women leaders and potential women leaders learn to: – Understand their unique strengths as well as barriers to

success,

– Create action plans to overcome systemic barriers and grow their leadership skills,

– Learn negotiation skills critical to their career success, and,

– Build a network with other women leaders.

Thank you! Visit interactionassociates.com