Women Chairs: The Time Is Now

By Helen Pitcher OBE, Chair of Advanced Boardroom Solutions

 

With more women as board chairs, business can better serve society.

Companies should benefit all their stakeholders. This is increasingly on the minds of regulators, activists, politicians, pension investors and individuals of this world. As Larry Fink, Chairman and CEO of Blackrock, wrote in his 2019 Letter to CEOs, “society is increasingly looking to companies, both public and private, to address pressing social and economic issues”.

If we want boards to deliver benefits for a wider stakeholder group – and stop focusing on short-term profits – we need to shift the dial on women becoming chair of these boards. Failing that, the corporate landscape won’t change.

While there are excellent male chairs, too many are products of the old boys’ network. These men pay scant attention to their increasing accountability towards stakeholders beyond their shareholders. In the United Kingdom, the days of the Financial Reporting Council (the watchdog for auditors, accountants and actuaries) are now numbered after it was embroiled in one controversy too many.

Why more women chairs is a game changer

McKinsey & Company has a long history of published reports that have established the business case for diversity. Organisations with greater gender diversity outperform others, typically have a healthier risk profile and make better investment decisions. All of this generates greater client and customer satisfaction.

Based on peer-reviewed research, surveys and anecdotal evidence, we now know what makes an effective board chair. Beyond the obvious group of traits including integrity, personal strength, courage and intelligence, the critical skills are:

  • an ability to influence others without dominating
  • an engaged vision of the future
  • strong emotional intelligence
  • coaching skills.

If we schematise the skills of an effective chairperson, it may look like this:

At the base of the pyramid lie the rules-based, measurable hard skills. While they are necessary, they can be taught and learnt.

At the top of the pyramid, we find the intuition-based soft skills that require a high emotional quotient (EQ). Those skills can only be developed through experience, practice and internal focus.

EQ & soft skills are more often associated with women than men. Though differences between ‘feminine’ and ‘masculine’ traits have little bearing on the attributes of individual men and women, research does not support the notion that men are somehow better suited to the chairperson role.

It should be clear that women are just as capable as men in directing and chairing our companies. Furthermore, they have as much right to succeed, and fail, as their male counterparts do. Our reservoir of chair talent is not so great that we can afford to ignore 50 percent of the potential candidates.

Time to accelerate the pace of change

As the leaders of our companies are called upon to strengthen their engagement with society and all stakeholders, we need to better understand and articulate what a chair role entails. The “job description” must move beyond the domineering CEO stereotype, with its descriptors of drive, ambition and ruthlessness.

The soft skills of facilitation, collaboration, listening, synthesising, defusing conflict and ensuring consensus are the hallmarks of a successful chair. At the other end of the spectrum, directive, overly assertive and antagonistic are the traits of an ineffective chair.

By acting as role models, women chairs can provide additional societal benefits. For instance, they can act as a driving force for empowerment and to promote the inclusion of a broader talent pool. In the UK, advocates of increased acceleration of women in chair roles are multiplying. They include existing female directors, the Women on Boards network, the International Women’s Forum (IWF), Men as Change Agents (MACA), the Confederation of British Industry (CBI), the Institute of Directors (IoD) and the 30% Club.

While the positive pressure for more diverse boards does show results, the action on women chairs is far behind. Too many active resistors – including old-style chairmen and nomination committees – continue to reinforce the false idea that chairs must have at least a decade of board work under their belt. Head hunters tend to say that female chairs are difficult to find, repeating a narrative they used before national targets were established for women on boards. The statistics show this is not true.

Stopping the erosion of trust in business

We need a strong push to free boards held hostage by reductionist thinking. According to research by INSEAD Professor Stanislav Shekshnia, only 20 percent of boards in the UK will be women-led by 2027. This is not enough. It is time to take action to accelerate the acquisition of more female chairs, right across the public and private corporate environment.

In the UK, the new Combined Code with its cap of nine years of service on a single board will create more churn. Investment companies must start asking mediocre chairmen to step down. Women need a greater number of enthusiastic sponsors and more board-level development. I challenge more female directors to aim for the top role.

Having more women chairs will help rebuild the trust in our corporate environment and foster businesses that deliver performance mixed with social and environmental benefits. It may just be the key to a new era of sustainable long-term profit.

Helen Pitcher OBE (IDP-C) is the chair of Advanced Boardroom Excellence, which works with board effectiveness, board evaluation reviews and coaching chairs, CEOs and NEDs. She is a graduate of INSEAD’s International Director’s Programme.

Source: INSEAD

Stop talking Big Data; start thinking Data Culture

By Justin McCord

The percentage of companies that report being data-driven is shrinking. According to a recent survey, 31% of firms surveyed say they are data-driven. That’s down from 32.4% in 2018 and 37.1% in 2017.

Meanwhile, 87.8% of executives report having a greater urgency to invest in data-driven initiatives. So, marketers are talking more about data, but we’re losing confidence in creating a data culture. The same study showed that 93% identify people and processes as obstacles to forming a data culture.

I find that this is true in both the commercial and nonprofit spaces.

Nonprofits have historically been resource-deficient compared to their commercial peers, anchored by public perceptions of overhead and waning trust in philanthropy. Add to this a trend of weakening retention of those who contribute to nonprofits, and data regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).

Now is the time for nonprofits to commit to forging a data culture, which starts with instituting a data governance construct. Here’s how:

1. Stop talking about big data. In fact, wipe out every data-related buzz term from your conference rooms and planning meetings. If you ask me, there’s no greater buzzkill to strategy than buzzwords.

2. Consider data your biggest business asset. For nonprofits, this means the data you have on those who have engaged with you — volunteered or donated — is central to your organizational value. This asset can help you to centralize data governance to strategically drive marketing efforts.

3. Create a data strategy task force. If you’re going to create a data culture, you must first seed the culture among key influencers. Start with a cross-functional team that can work together to build shared practices for data.

4. Identify your data management practices. Many organizations do not have documented data management practices or business rules. Instead, the rules live in a single employee’s documents or, even worse, a single employee’s head. Proactivity in identifying data management practices will help you break down silos and extend the shared practices so that everyone owns the processes and approach.

5. Build a road map for data management optimization. With documented practices built collaboratively, your task force will also likely identify areas of need. Support their work by putting resources against the areas of need. In other words, reinforce the commitment to data culture by funding optimizations that are well-planned.

6. Make data strategy the hero. Avoid common pitfalls for strategic planning, like founder’s syndrome, “we’ve always done it that way” thinking and pigeon-holing data as a function of your IT team. When data strategy is the hero, strategic planning includes a collaborative discussion on what data you’re going to measure, where you’re going to store the data and how you’re going to use this data for future marketing efforts.

7. Share. Workplace culture includes company vision, values, norms, systems, symbols, language, assumptions, beliefs and habits. If your pursuit and goal is a data culture, simply put the word “data” in front of each of those elements: data values, data norms, data symbols and language, data habits. This isn’t a one-time side project. Forging a data culture is an iterative, behavioral commitment that requires constant collaboration and sharing.

There are plenty of resources to help you on your journey to forging a data culture. A few of my favorite resources include the Nonprofit Technology Network (NTEN), which offers a free benchmarking assessment (RKD Group is a member of NTEN); Bloomerang, which offers free resources ranging from webinars to guides to help steer nonprofit data management practices; and content by Tom Davenport and members of the Stanford Social Innovation Review team that regularly offers insights about data, analytics and innovation in nonprofit marketing.

Source: Forbes

Building Gender Balance Against the Odds

By Benjamin Kessler, Managing Editor; Clarissa Cortland, INSEAD Post-Doctoral Research Fellow; and Zoe Kinias, INSEAD Associate Professor of Organisational Behaviour

To enable women’s advancement where it’s needed most, individual, interpersonal and institutional changes are required.

When it comes to developing gender balance, organisations in male-dominated fields such as venture capital, STEM and the “greedy professions (as well as in leadership roles within most companies) have a two-fold problem. First, they may face challenges in recruiting women: Deeply entrenched gender stereotypes about which jobs are appropriate for women can affect both women’s career aspirations and hiring managers’ decisions. Second, many women bravely venture into these organisations only to confront a steeper path to advancement than their male peers. In the finance industry, for example, the representation of women across all levels declines from nearly 50 percent to a mere 15 percent as one ascends from the professional to the executive level.

The INSEAD Gender Initiative’s 2019 Women at Work conference, recently held in Singapore, concluded with a research session on how organisations can dislodge the built-up biases that impede women’s career progress, creating new pathways to leadership for deserving women.

The glass cliff

What can be worse than organisations without meaningful career opportunities for women? Arguably, those offering opportunities that can actually be traps. First recognised in a 2005 paper by Professors Michelle Ryan and Alex Haslam at the University of Exeter, the “glass cliff” is a widely noted phenomenon whereby women are installed as leaders at times of potential crisis, thus essentially being set up to fail.

At the INSEAD conference, Ryan said she became aware of this “think crisis – think female” association after reading an article in The Times newspaper, which argued gender balance was bad for business, citing supposed linkages between the presence of women directors and corporate underperformance. Using detailed archival examination, Ryan’s subsequent research found that the newspaper got the causation backwards. It wasn’t that having women on the board was a liability, but rather that women tended to be appointed at moments of poor company performance (as measured by a decline in share price).

Why are women singled out for these unenviable posts? “Stereotypes of women mediate that effect,” Ryan says. “We think women are good at crisis, but we also think women make good scapegoats.”

In later research, Ryan and her co-authors tested the behavioural basis for the glass cliff, launching several studies in which participants were asked to nominate a leader for a fictitious company that was either flourishing or in decline. Men were chosen slightly more often than women to helm successful companies. When the company was in trouble, both male and female participants showed a clear preference for women.

As the concept of the glass cliff gained recognition, some studies and articles appeared purporting to debunk it, while others presented confirming evidence. Apparently contradictory findings may create confusion as to whether the glass cliff is real or not. Ryan has recently tried to make sense of it all with a meta-analysis of all available data relevant to the concept. She found a “small but significant” overall effect, affecting women as well as racial/ethnic minorities who end up balancing precariously on the edge in newly appointed positions of leadership. In related work, Ryan finds that this glass cliff effect varies in size depending on a number of factors. For example, when the new leader is well supported and has more financial resources, the crisis leadership situation is no more likely to bring in a woman leader. It is really the most precarious leadership positions that compel decision makers to see women as a better fit than men.

That the glass cliff is a contingent phenomenon does not make it any less real. Ryan explained: “It didn’t start from theory; it was an explanatory mechanism for data that were out there,” she says. The glass cliff is not universal, but it offers an explanation that sheds light on a set of circumstances that unites women leaders as disparate as Yahoo!’s Marissa Mayer and UK Prime Minister Theresa May, who were handed the rudder of unwieldy ships at moments made especially perilous by their immediate male predecessors.

Ryan’s research underscores a clear need: Companies (and governments) must provide women and minority leaders with a broader range of opportunities to enable them to also show what they can achieve when all is working smoothly.

The emotional basis of backlash

Despite leaders’ good intentions, many men within predominantly male organisations actively resist working with and for women. Backlash has serious implications for women’s advancement, both in its subtler forms and when it manifests as outright sabotage.

Managers should strive to create processes to prevent bias and address discriminatory behaviour swiftly and decisively. In addition, Chiara Trombini, Research Fellow at Harvard Kennedy School, suggests that a psychological intervention that addresses negative emotional reactions could be key to reducing backlash.

Trombini theorises that some men may be unsettled by the stereotype-shattering prospect of a more gender-balanced workplace. This is especially true when women display more assertive behaviour that goes against cultural and societal norms. Men’s feelings of anxiety and threat thus give rise to backlash.

Fortunately, there is a simple intervention proven to calm those exact emotions: self-affirmation. It involves asking people to reflect upon the values that matter most to them or to think about the best version of themselves. The exercise is designed to boost psychological resilience and offer protection from self-doubt in ways that subsequently reduce defensive reactions to threatening information.

Trombini and her co-authors carried out a series of studies with men and women participants to test the emotional threat hypothesis. First, participants were shown videos of women negotiating assertively during a job interview. Then, they were asked to put themselves in the place of a hiring manager. One group of participants did a self-affirmation exercise prior to viewing the videos; a control group did not. No differences were found between the women in the two groups. Among the men, however, the values-affirmed group displayed much more openness to the women interviewees in the video who negotiated assertively, indicating that self-affirmation can lead men to be more accepting of assertive women.

A later study bore out Trombini’s hypothesis about the emotions that precipitate backlash. After viewing videos, participants rated their own feelings of anxiety and apprehension, as well as how hostile and arrogant they felt the job-seeker in the video was. Replicating the first study, the self-affirmation exercise didn’t influence how women participants rated the job-seeker. For men, however, there was a difference. The control group participants perceived both their own anxiety and the job-seeker hostility as higher than did the self-affirmed men similarly evaluating an assertive woman.

In the final study, the researchers manipulated men’s anxiety levels by exposing them either to hyper-competitive, stereotypically masculine work norms (such as overt displays of confidence and physical stamina) in the high anxiety condition, or to psychologically safe work norms (such as collaboration, sharing and valuing others’ perspectives) in the low anxiety condition. Participants then chose between assisting a woman in a demanding task or withholding help (i.e. sabotage). As expected, anxious men were more likely to sabotage, unless they were self-affirmed.

Trombini’s research has implications for corporate cultures and the norms and values they espouse in a larger sense. “Anxiety is important in context,” she says. “Organisations where stress plays a role have heightened potential for stereotyping.” Overall, and especially in high anxiety contexts, self-affirmation can protect against bias by helping men to feel more secure.

Fostering allyship

Combating backlash is an important strategic objective in addressing bias that prevents women from advancing in masculine spaces. An equally crucial objective is cultivating active support for gender balance amongst the male majority – enabling men to be allies.

In research presented at last year’s Women at Work conference, Toni Schmader, the Canada Research Chair in Social Psychology at the University of British Columbia, and her co-authors discovered that conversations with male – and only male – colleagues that were not experienced positively were linked to increased burnout and social identity threat among female STEM professionals. In other words, the absence of clear male allies may hold women back in ways that parallel clear-cut incidents of bias.

At this year’s conference, Schmader talked about her role as co-leader of a research team called Project RISE (Realising Identity-Safe Environments), where she is about to launch a workshop designed to foster gender inclusion in STEM. Her team will recruit more than 400 scientists and engineers working in team environments as workshop participants. “Both men and women say they are highly motivated to be allies in their organisation, but they’re not quite sure how to go about doing it,” Schmader says. The Project RISE workshop will focus on laying the emotional groundwork for allyship as well as developing the necessary skills.

Two features of the workshop show particular promise, as reflected in pilot data. One key component is the affirmation of shared values, which lowers social identity threat for both women and men. Another is a dialogue task where two-person teams respond to questions about diversity and implicit bias, such as “What is one of your biggest concerns or worries when talking about gender bias issues?” In a trial run involving engineering students, both men and women – but especially men – found these dialogues beneficial when their conversation partner was of the other gender.

An honest conversation between two people can be surprisingly impactful, Schmader says. “The more men converse with women about bias, the more they show an increase in the ability to take women’s perspective and believe women can succeed, and there is an indirect effect on support for gender-inclusive policies as well.”

A multileveled approach

Qualified women must perceive that avenues to success are available to them within an organisation. For that to happen, organisations should increase the visibility of female role models and make a concerted effort to signal a wider cultural shift.

In her own talk, INSEAD’s Clarissa Cortland described how the year-long iW50 campaign – spanning the 2017-18 academic year and celebrating the past and present of women at INSEAD, as well as the vision for the future – delivered on three conceptual pillars:

  • Highlighting gender-balanced models of leadership through communications campaigns both on- and offline, prominent women speaking on campus, etc.
  • Raising awareness through research, alumni- and student-led events
  • Engaging men in all INSEAD communities, including faculty, staff, alumni, and notably via the introduction of an official group of male MBA allies called Manbassadors

The iW50 campaign may be over, but the work of the INSEAD Gender Initiative continues. In any large organisation, there is always the danger that progress will pause when gender balance is no longer top of mind. Empowering women to achieve their full potential in spaces where they are underrepresented is not a one-off project, but a long-haul effort requiring maintenance and frequent reassessment.

As INSEAD Gender Initiative’s leader Zoe Kinias said at the conclusion of the conference, “Diversity initiatives need to be perceived and enacted more like change management.”

Source INSEAD

When leadership turns toxic: The fine line between being tough and being a bully

 

By Karlyn Borysenko

Shortly after Senator Amy Klobuchar announced her bid to become the next Democratic nominee for president, horror stories began popping up detailing years of consistent abusive treatment of her staff. The reports contended that her reputation made it difficult to recruit someone to manage her presidential campaign. In response, Klobuchar’s supporters argued that she was being targeted due to her gender and that a man in her position would be considered “tough” instead of toxic.

While it certainly is true that assertive women are much more likely to be viewed as bossy or unlikable than their male counterparts who engage in exactly the same behaviors, we can’t assume that just because someone is a woman, it means that her behaviors towards her staff are being wrongly characterized when charges of toxicity are made. According to the Workplace Bullying Institute, 30% of workplace bullies are women, and according to a recent study more than two-thirds of women have reported being a target of workplace bullying by a female boss.

So, how can you tell the difference between when your boss is being tough and when they’ve crossed the line into workplace bullying, regardless of the gender they identify with? Where is the line? Here are some differentiators to consider.

Tough bosses have bad days. Bullies are consistently bad.

According to Bartlett and Bartlett, workplace bullying is defined as “the experience of repeated and unwelcomed negative acts such as criticism and humiliation, occurring at a place of employment, that are intended to cause fear, distress, and harm to the target from one or more individuals in any source of power over the target, where the target has difficulties defending him or herself.” Continue reading

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