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

A Three-Part Formula for Fueling Start-Ups

by Bala Vissa

Securing the necessary resources involves much more than just getting a VC to say yes.

According to psychologist John Gottman, six factors, such as whether a couple immediately use a harsh tone when discussing a conflict, can predict divorce with 86 percent accuracy. However, few couples could save a failing relationship just by learning about these factors. The key is to understand the processes and steps involved in resolving the differences that will inevitably crop up during a marriage.

Similarly, to best understand how a new venture can succeed, it is important to go beyond correlations. While it is undoubtedly helpful to know that entrepreneurs who do (or who are) X tend to obtain Y results, appreciating the intermediate steps and processes that lead to these results could propel us forward. Currently, these steps and processes remain a kind of black box.

In our paper Turning Lead into Gold: How Do Entrepreneurs Mobilize Resources to Exploit Opportunities, my co-authors David Clough (from the University of British Columbia), Tommy Pan Fang, Andy Wu (both from Harvard) and I reviewed 150 leading empirical papers on how founders secure the various forms of capital they need to launch their start-up. While the purpose of our paper was to suggest a path ahead for future academic research, our work allowed us to recap what is known – and yet unknown – on the subject.

The three steps to mobilise business resources

One of our key insights is that mobilising resources is itself a process involving three successive steps.

Step 1: Search for resources

To execute on an opportunity, entrepreneurs need much more than just financial resources, such as cash, VC money or bank loans. They also need to gather human capital, usually co-founders or employees. Their success will also depend on their social capital, i.e. the social ties, networks and connections that grease the wheels of business. Beyond those, they may still need to worry about increasing their legitimacy as founders and building a compelling narrative for their ventures.

With so much to think about, many budding entrepreneurs don’t know where to start. The very first step consists of identifying who has the required resources. Where to find suitable employees? Where to get funding? How to build connections, fast?

According to our review of the literature, only 20 percent of papers examined the art of searching for business resources, leaving new entrepreneurs with much to figure out on their own. That is regrettable, because the research has shown that too many entrepreneurs remain solely within the confines of the world they know.

For instance, when looking for human and social capital, entrepreneurs tend to limit their search to their immediate social networks, such as family, friends and former co-workers. As a result, individuals who start from privilege – thanks to being born in a wealthy family or having received a top college education – tend to do better than average.

Not all is lost for the less privileged entrepreneurs, but they must compensate by becoming proactive networkers. They can’t rely on serendipity to form new, helpful connections. Another avenue consists of first building a large portfolio of organisational accomplishments. Research also suggests that entrepreneurs with higher initial aspiration levels are less likely to be satisfied with their original set of options and therefore more likely to seek new ties with indirect contacts and strangers.

If you are a new entrepreneur, you may want to ask yourself:

  • Am I proactive in my search for resources, including new social ties?
  • Am I limiting myself to what I know exists or do I seek help in exploring the wide world of available options and resources?

Step 2: Persuade those with the relevant resources to come onboard

Once you have probed the full menu of potential resources for your venture, the next step consists of acquiring those you feel are the best fit. This is the most abundant stream of research in our review, accounting for some 55 percent of papers. In this loot, we found an (over)abundance of research on how entrepreneurs can secure financial support. However, accessing resources means a lot more than just making a successful pitch before a banker or VC. For instance, a crucial task may be to persuade potential employees to join your new company – a huge challenge for many start-ups in the ongoing “war for talent”.

It may also involve forming an alliance with an established company in order to piggyback on their social capital. In fact, connections and affiliations with any high-status people or entities act as endorsements. For example, once a venture secures backing from a well-known VC, the remaining resources, such as employees, partners and additional financial support, tend to come more easily.

If you are struggling, do not underestimate the power of word-of-mouth in attracting the right resources. Your new board of directors may be able to refer great employees or partners, just like the VCs you meet may have suitable co-founders to recommend.

Research also shows that storytelling matters a lot for entrepreneurs. Building a compelling narrative can go a long way towards persuading investors that a founding team can execute on a given idea. While this is true for all start-ups, social or hybrid ventures face a special dilemma: Should their story emphasise the potential for financial or social returns? What we know is that women founders may particularly benefit from talking about their proposed social impact.

Here are some questions that may require your careful consideration:

  • If I decide to rely heavily on family members, am I clear on the pros and cons of this approach? They may be able to help strictly based on solidarity, but this may come with hiring expectations down the line.
  • Have I considered getting formal qualifications and certifications? By signaling an entrepreneur’s quality, they can help dispel uncertainty about the venture in the mind of potential backers.

Step 3: Deploy the acquired resources

Even after resources are agreed upon in-principle, entrepreneurs may face issues in deploying them. For example, financial backers may have their foot on the brake if they worry about founders ceasing effort or overpaying themselves after receiving an influx of cash. A variety of governance mechanisms can mitigate risks of opportunistic behaviour and reduce friction.

Such mechanisms can be based on formal contracts and authority, but also consist of informal arrangements. About 31 percent of the papers we reviewed dealt with that resource-deployment step. (Note: The percentages add up to 106 percent due to some overlap.)

Like it or not, nascent entrepreneurs are often far more dependent on resource holders they work with than the other way around. The good news is that this power imbalance can help with the transfer of resources, as it naturally lessens the concerns that the entrepreneur might try to take advantage.

The downside is that founders can sometimes be vulnerable. For example, tech founders are often wary of accepting investments from corporate VCs that occupy a similar product space, as their intention might be to quash the up-and-coming competition. Getting a high-status VC to also come on board may help keep such threats in check.

Here is some additional food for thought:

  • Have I carefully aligned my incentives with those of the resource holders who have agreed to participate in my venture?
  • Am I aware that founders are more likely to be replaced when they sell large portions of their equity to investors?

The founders’ long quest

For a venture to take off, entrepreneurs must first spot a good opportunity. Just as critically, they must then mobilise the resources required to execute on that opportunity. Our bird’s-eye view of the research on entrepreneurs’ resource mobilisation shows that it is a three-step process. Getting financial capital, often seen as the holy grail of the operation, is only the middle step. First, a proper founding team must coalesce. The venture is also more likely to get funding if it already has some initial ties to suppliers, customers and strategic partners. Founders must orchestrate a proper search for all of these resources, casting their net as wide as possible. After securing the required resources, they need to ensure that trust flows in both directions so that resources can be deployed smoothly. It is a long journey, which, by comparison, can make marriage seem like a walk in the park.

Bala Vissa is a Professor of Entrepreneurship at INSEAD. He also directs the INSEAD Leadership Programme for Senior Executives – India and the Certificate in Leadership Effectiveness, both part of INSEAD’s suite of executive education programmes. 

Source INSEAD

How to Turn Stress Into Success Once You Reach the Top

  by Roger E Jones

What dozens of experienced CEOs wish someone had told them before they assumed the hot seat.

Aspiring CEOs need to be careful what they wish for; the job has its downsides too.” – A seasoned CEO

Many business school graduates see the CEO job as the pinnacle of one’s career. As a result, they work hard to get there or, if they feel their path is blocked, leave the big company to become CEO of their own start-up, sometimes with huge success. Yet those who achieve that hallowed CEO status often face enormous unforeseen challenges that make them wonder whether it was all worth it. And with good reason, because these challenges tend to lead to increased stress. This, in turn, has a detrimental impact on their career and home life.

However, companies can be coy about their senior executives’ health. When a CEO needs to take a leave of absence it is normally put down to “exhaustion” or “overload”. It is almost unheard-of for companies to admit this fatigue is due to stress. Elon Musk himself admitted to the New York Times in 2018 that stress is taking a heavy toll on his life. And in 2015, then-newly-appointed United Airlines CEO Oscar Munoz reportedly suffered a heart attack soon after starting his role (a number of studies link stress to heart disease).

As an executive coach working with new CEOs, I am familiar with the rollercoaster ride that some experience. I thought it would be of value to those wanting the top job (or are new to the CEO role) if they knew in advance what to expect and how to transition from job stress to job success.

So, I asked 84 CEOs from around the world, whose firms range from SMEs to global multinationals, about their biggest challenges in their first months as a CEO. I also queried them on the impact of these challenges and how they addressed them (or wish they had addressed them).

The biggest challenges

Seven problems were most frequently mentioned:

  1. Feeling trapped and viewing themselves as slaves to the business: Their huge sense of obligation meant that most were unable to ‘switch off’ even at weekends.
  2. Feeling dazed and confused, even skeptical, and not knowing whom to believe: A consistent theme of “Who tells me the truth?” came through. My earlier research and my piece for Harvard Business Review also highlighted this struggle to find the truth.
  3. Lacking credibility and wondering how to earn the respect of their team: If they have come up through the ranks, they face the delicate and daunting task of leading their former peers. If new to the business, they must prove themselves with no internal track record to rely on.
  4. Dealing with huge self-doubt: Some new CEOs fear they are not up to the job and lack the skills and mindset needed to be successful.
  5. Feeling lonely: It may seem hackneyed, but it really is lonely at the top. When new in their role, CEOs yearn for a knowledgeable confidant and independent sounding board.
  6. Getting addicted to the job: “You become king of the castle, the ruler of the land,” jokingly remarked one CEO. But for many, the sense of power and control becomes addictive.
  7. Sacrificing home life: The job addiction can mean a complete lack of work-life balance. New CEOs can become so immersed in the business that they lose sight of their life outside work. Many remarked that they didn’t see their kids as much as they wanted to.

Strategies to transition from job stress to job success

The chief consequence of these challenges is stress. The 84 CEOs I consulted, and those CEOs I’ve coached over the past 17 years, used a portfolio of coping strategies to help neutralize the stress and ensure their success. These include:

  • Scheduling time to think: The CEO role can be all-consuming as everyone wants to have your ear. However, consciously carving out free time, even if it’s just two 30-minute slots a week, will allow you to reflect on your thoughts and feelings, and take a more objective view.
  • Upgrading your leadership: Your leadership and communication style may need to be refreshed. One new CEO requested to go on a senior leadership course as a condition for taking the job. This was brave, as it could have been interpreted as a sign of weakness.
  • Making your top team ‘click’: New CEOs ensure they have the right team in place. They ask themselves fundamental questions about the quality of their direct reports: Could I work with this person? What could I learn from them? Do they focus on getting the job done rather than politicking? They then replace those that don’t make the grade. External specialist coaches are often called in to work with the team, so honest, open and direct conversations become the norm.
  • Checking the organisational reality: CEOs find it key to decode what people are telling them. As one CEO remarked, they make efforts to ‘unpick the stories they hear’ and another aims to ‘find routes to the truth’ by testing the assumptions made by others.
  • Building inner confidence: As a new CEO, you will do things you haven’t done before and you will face high expectations. At times, your inner confidence may waver. In such case, remind yourself of your accomplishments. Seasoned CEOs believe you should ‘trust yourself and call the tough decisions’ and you will ‘become content with the discomfort’.
  • Hiring an external coach: Many CEOs had the support of an external coach when starting in their role. A good coach will not only act as a sounding board but also won’t be afraid to tell you the uncomfortable truth, keep you from lying to yourself and hold you accountable.
  • Staying balanced: To prevent their CEO role from taking over their life, my clients find it helpful to imagine they are 100 years old and looking back on their proudest moments. Time spent with family features prominently, far ahead of any CEO accomplishments.

So, if you are aiming for the top or have just taken on the CEO role for the first time, be cognisant of the challenges you will face and heed the advice of experienced CEOs. Their coping strategies will help you have a more balanced, productive and stress-free life.

Source: INSEAD

Two leadership practices for tapping the best of your multi-generational team

By Nicole Bendaly

Diversity, when capitalized on, gives teams a big leg up. It provides a mix of perspectives and experience that generates energy and better ways of doing things—most simply put, a higher level of performance.

Fortunately, it is not uncommon to find diversity within teams these days, as more and more people are working alongside team members who represent two, if not three, generations different from their own. But this enriching ingredient can also present challenges. Differences in values and points of view can make for a challenging work environment, certainly toughening a team’s ability to reach a consensus but also potentially creating tension between team members over expectations of behavior and work practices.

The trick to thriving as a leader of a multi-generational team is to know where to focus your energy so your team is energized by their differences and members can work in sync. The following two leadership practices will launch the habits a multi-generational team needs to be at their best. Continue reading

When Talking the Talk Is Enough to Change Culture

by Phanish Puranam, Roland Berger Chaired Professor of Strategy and Organisation Design at INSEAD, and Özgecan Koçak, Associate Professor of Organisation and Management, Goizueta Business School of Emory University

 

Careful cultural interventions can impart beliefs about collaboration that become self-fulfilling prophecies.

Organisational culture – shared assumptions, values and norms – can facilitate collaboration. Culture can fill in the gaps in formal administrative systems where collaborative actions cannot be measured and monitored. Put simply, organisational culture shapes what employees do when the bosses aren’t looking. No wonder, then, that failures of collaboration, such as those observed after mergers or in the aftermath of too-rapid expansion through hiring, are often attributed to cultural factors. Conversely, cultures are often credited with the success of organisations that do particularly well at getting their employees to work together.

How to create a culture of collaboration

This leads naturally to the question of whether and how a culture that supports collaborative efforts can be designed. One cannot simply mandate a particular set of assumptions, values or norms on the basis of authority, and expect them to persist. Broadly speaking, there are two approaches to making common cultural assumptions stick: through shaping consequences of action (which we will refer to as the “incentive-based approach”) and through shaping beliefs about what actions are appropriate (which we will call the “framing approach”). Continue reading