The Paradox

On September 16, 2001, and again on August 14, 2005, Wiley Miller, the cartoonist who creates Non Sequitur, produced a strip for the Sunday paper that was, unfortunately, funny. I say unfortunately, because the gist of the strip is that the boss (a white male) is incredibly impressed with a report written by one of his middle managers. He says, “Give this guy a raise and a promotion before we lose him!!” However, when the man to whom he is speaking informs him that the report was written by a woman, his eyes bug out, and he revises his position, deciding that rather than the report being “forceful and straightforward,” it instead “comes off as rather bitchy.” And instead of a promotion and raise, the woman is fired, using the “standard excuse of [the] economic downturn.”

The comic is both funny and discouraging. It is funny, because like all good humor, it contains at least a grain (if not more) of truth. It is discouraging for that same reason.

Ann Howard, Ph.D. and Richard Wellins, Ph.D, both of Development Dimensions International, conducted a study in 2008. The results of that study were presented in a report entitled Holding Women Back: Troubling Discoveries – and Best Practices for Helping Female Leaders Succeed.

Following are some of their findings:

• Women’s representation in executive-level positions was half that in first-level management
• More than 70% of the top 1,500 U.S. firms have no women on the senior leadership team (Dezsö & Ross, 2008)
• In all major global regions, women were more likely than men to fall off the management ladder before reaching the top
• Among executives, 50% more men than women are [considered] high-potentials.
  

These statistics are appalling standing on their own, but when looked at in conjunction with the benefits of having women in executive and/or board positions, they are absolutely baffling.

• A 1998 study of S&P 500 companies found that companies with the most women and minority directors had shareholder returns that were 21 percent higher than those of companies with all white male boards.
• In January 2004, Catalyst reported a link between greater gender diversity among the corporate officers of 353 companies in the Fortune 500 and better financial performance by those companies over the period 1996–2000, measured by both return on equity and total return to shareholders.
• Based on their research, the authors found that the presence of women on boards has a practical as well as a symbolic effect: it changes the functioning and deliberative style of the board in clear and consistent ways that are linked to good governance, which in turn improves organizational performance over the long term.
• “In addition, the authors noted that boards with two or more women directors, and even boards with only one women director, regularly reviewed non-financial performance measures such as customer satisfaction and employee satisfactions significantly more than did all-male boards.
  
  (Toni G. Wolfman, The Face of Corporate Leadership).
  
  So what gives? How can the results of having women at the top be so overwhelmingly positive, yet companies are still largely devoid of women at those upper levels? Why aren’t companies clamoring for, and actively recruiting these women? Or are they, and women are simply not taking advantage of these opportunities? Or is it a little of both, or something else entirely?
  
  We’ll look at the possible answers to these questions shortly.