Why Women Leaders?

I recently posted a question on LinkedIn (thanks to Ben Stone of RPO Consulting for his tutorial!), regarding how to promote my brand (helping women succeed personally and professionally) in an era where employers are suffering from “diversity fatigue.” One insightful comment commented that “[d]iversity fatigue comes from the perception that diversity initiatives are pursuing social, rather than business, objectives.”[1]

In one of my presentations, I point out that gender diversity at the top of an organization is about more than simply doing the “right thing,” which is the social issue aspect. There are also compelling business reasons. In a report by Development Dimensions International (“DDI”) the authors referenced a study conducted in 2008 that found that when there were “three or more women in senior management [the organization] scored higher on all dimensions directly linked to financial performance” than those organizations with no women at the top. [2] Additionally, the Global Executive Leadership Inventory (“GELI”), which measures degrees of competency in global leadership, was used to assess participants in Insead’s executive education program. It found that women were rated higher on nearly every category than men.[3]

The idea is not that only women should lead, any more than it’s a good idea to only have men at the top. It’s the balance that the organization should look for.

Unfortunately, what often happens is that organizations look at their c-suite, realize there are few, if any, women there, and begin “plugging women in” to various spots (usually HR). But if women have not had access to developmental opportunities such as mentoring, “choice” assignments and formal/informal education, they will struggle to succeed. It’s important, therefore, to identify high potential women early on, so that they can be developed appropriately. A formal succession plan can help this identification process be objective and gender neutral, which will, in turn, allow women access to developmental programs and a natural succession of women to the top positions.

In the next post, I'll give you some numbers regarding women in senior positions, and the implications for business. Then we'll talk about what organizations can do to change this, as well as what individual women can do.

[1] Daniel Kenna
[2] Howard, Ph.D., Ann, and Richard S. Well. Holding Women Back: Troubling Discoveries - and Best Practices for Helping Female Leaders Succeed. Rep. DDI's Global Leadership Forecast 2008/2009, 2008/2009. Print, citing Desvaux, G., Devillard-Hoellinger, S., & Meaney, C. (2008). A Business Case for women. The McKinsey Quarterly, (4), 26-33
[3]Ibarra, Herminia, and Obodaru Otilia. "Women and the Vision Thing." Harvard Business Review (2009): 62-70. Print.