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What are the drivers? “Improving gender balance in the boardroom not only increases the performance of the board and strengthens the business but is also good for the UK economy, as it enhances our competitiveness, ability to attract talent and reputation for good governance in a global market. ” Sir Philip Hampton , Chairman - GSK “Having women on the board at Diageo has significantly changed the way we manage talent in our business, helping us to strengthen the executive pipeline and increasing the opportunities available for all women in the organisation. ” Franz Humer , Chairman - Diageo, Roche “The collaborative energy that is created when talented people from different backgrounds come together. ” Bill Gates , Founder - Microsoft
What do Females add to the Board? Gender diverse boards achieve superior financial returns - both in net profit margins as well as higher returns on equity (McKinsey, 2010) Female directors enhance board independence (Fondas & Sassalos, 2000) Female directors make boards more resilient to ‘groupthink’ (Catalyst, 2008) Women bring distinct personality and motivational strengths to the boardroom - an open, consensus-building, collegial approach (Caliper, 2005) During 2008-2012 recession stock prices of companies with at least one female board member were, on average, 26% higher than companies with no female board members (Credit Suisse Research Institute, 2012) - study of over 2,000 publicly trading companies
Barriers to Career Progression Balancing work and family life Will opting for flexible working involve demotion? Does maternity leave jeopardise client relationships, bonus and appraisal? Informal recruitment practices, including networking events Lack of senior successful female role models Appointing in own (male) image Stereotyping and preconceptions of female aspirations Women’s apologetic attitude towards their skills, abilities and career Sources: EHRC Financial Services Inquiry and What holds women back? Opportunity Now 2010
Research Findings The Role of Social Capital and Networking in Corporate Board Selection Processes (Based on 82 interviews with Chairmen, head-hunters and senior females candidates by Meryl Bushell, former CPO BT, Portfolio NED) Gender differences in the quality of networks Male aspiring directors had far more connections to those making nominations and recommendations for board level roles than their female counterparts. In their current roles the male and female aspiring directors had equally good connections to the individuals in positions of power with whom they needed to interact. The majority of the male aspiring directors had kept in contact with previous influential peers compared to a minority of the female aspiring directors. The male aspiring directors were far more likely to have built and maintained contact with the executive search community. The male aspiring directors had a larger number of contacts to existing board directors and Chairs than their female counterparts.
Research Findings Gender differences in networking habits The majority of the male aspiring directors actively managed their networks while the majority of the female contacts did not. However, the males were likely to attend small intimate dinners where they could have quality conversations while the females were more likely to attend larger, more formal events. Around half of the women regularly attended women only networking events in the evenings, where they tended to be one of the more senior attendees. These events ate into their networking time, and thus they spent less time with senior powerful individuals. The males were far more likely to attend networking events during the working day. They were also far more likely to attend “business social” events and they were also more likely to participate in sporting activities such as golf and shoots during the working day. Where females did attend networking events during the working day they tended to be for the benefit of their employer rather than for self-projection.
Research Findings “The process is heavily reliant on word of mouth recommendations with high levels of social capital being a key requirement for aspiring directors to be nominated, positively referenced and selected. It has also exposed that female aspiring directors tend to have poorer quality networks with regard to gaining board roles than their male colleagues. Compounding the problem of having poorer networks, the female aspiring directors were less willing and less able to leverage their social capital.”
Harvey Coleman P.I.E. Model Performance counts for 10% of your success, image 30% and exposure an eye-popping 60%
The importance of the right type of networking Network outside of your function within your business Get a mentor and a sponsor Build an internal and external profile Write articles, share on social media, speak at conferences Know your peers and know the head-hunters who can help you
Recommendations Take an active role in shaping your career 1.Put your hand up for stretch assignments 1. Get noticed. Don’t over analyse the challenge and shrink away through fear of failure 2.Push yourself out of your comfort zone 1. Make sacrifices 3.Challenge your organisation to remove gender bias
‘This century goes to the women’ “The Post-American World won't be China ... or India ... or Brazil - or any nation for that matter. The real drivers will be women. Women entrepreneurs, women business, political, academic and cultural leaders - and women innovators. The truth is that women already are the most dynamic and fastest- growing economic force in the world today” . Muhtar Kent, CEO, Coca-Cola
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