Wouldn’t it be great to see this advert “Board members Wanted – Women apply within” – Sadly those jobs are still few and far between – We need a paradigm shift.
Ok, before you say it, I know it’s illegal to specify gender on a job advert – BUT, at least, as women, we should be given an equal opportunity, not a minimal chance because the job has already been given to a man before the position was even advertised.
You think I am joking? – Only last month a good male friend of mine was offered a senior position in an organisation, which he accepted. However, he was told that he couldn’t start immediately because the job had to be advertised under the conditions by which the organisation receives its money! The advertisement was then specifically tailored to the exact qualifications of the pre-selected candidate. This is how the “old-boys network” functions. – Don’t get me started!
Breaking the Glass Ceiling: Why Women Belong on Boards
Ladies, let me start by telling you that there is no glass ceiling – it’s a limiting belief we believe to be true because that is what women are told.
Remove that limiting belief, and know that you can make a difference, if you really want to.
If you need a mentor or coach to keep you on track – I am here madi@westt.eu
Women account for roughly 70% of the global consumer demand, the purchasing power, and manage around $30 trillion in annual spending.
That’s one big budget!!
And this is where ladies, if we are forward thinking – If we hold the purse strings, we have the buying power, - then why should we be consumers of companies that do not have 50% women on their boards?
Think about it – If you just spent a little time researching the hierarchy of the company you are planning to buy from, especially the boards of your favourite companies, and stopped shopping with those companies which were male dominated, we could make the companies consider appointing women to their boards when their sales dropped.
Ladies consider – We spend, we influence, we decide the budgets – and yet we are still not included!
I know, you are going to tell me, “But if I stop it won’t make a big difference” That’s where you have to educate and inform others. Together, we can drive change for everyone’s benefit.
If you want to know which companies are getting it right (nearly right) check out Equileap’s listings.
Let me put it another way:
Women in the United States account for 85% of all consumer purchases:
· 93% of Groceries
· 93% of Pharmaceuticals
· 92% of Holidays
· 91% of New Homes
· 89% of Bank Accounts
· 80% of Healthcare
· 66% of Computers
· 65% of New Cars
Yet we don’t sit on the boards of the majority of the companies who make these products!
The Power of Women in Leadership
I was promoted to write this blog following the blog on Gender Equality: Why Visible Gender Balance Matters (Part 3) when Mirella Visser commented that whilst in Europe the directive on women on boards has finally been adopted after more than 10 years in the making, we still have a lot of work to do to get women to be chairperson of the board!
Taking the first steps towards a more balanced society, globally, and challenging the perception of who should be in the boardroom, to ensure a more inclusive society, still requires a paradigm shift in the mindset of those controlling the economy.
The barriers to achieving gender equality in decision-making will take much more than my arguments. Admittedly, in some countries legislation has been adopted, but real transformation is only possible, for both men and women, if society and the business sector are able to consider the views of women equally to those of men, and offer a more open mind to the value that equal representation in the boardroom brings.
Failure to do so, will only result in economic, social, environmental and sustainability deficiencies.
You see, there are no arguments for not having women in the boardroom.
· There is a strong link between women on boards and better financial performance because women bring diverse perspectives to the table, understand customer preferences better, ensure greater due diligence, and as a result make better decisions.
· Women have made advancements in education and employment, often outperforming their male colleagues. Many women are highly educated and skilled, and thus are an important contributor to the workforce.
· In many parts of the world now, female students outnumber their male counterparts at tertiary education level, resulting in more highly qualified women than men available for the labour market.
· The World Bank states that “The Gender Employment Gap Index (GEGI) indicates that, on average across countries, long-run GDP per capita would be almost 20% higher if all gender employment gaps were to be closed.”
· Women remain an untapped resource from which organisations can gain a better understanding of their target customers and their stakeholders.
· Women inject a fresh perspectives into the debate and can give companies an unrivalled competitive advantage.
To be clear, I am definitely not advocating for confining board positions to a small range of women who circulate around a number of boards. This practice, commonly called the "golden skirts" argument, undermines the central pillar of diversity on boards. I am advocating the right for men and women to have choice and equal access to board positions based on merit.
The Importance of Diversity on Boards
In 2013, whilst a member of the European Economic & Social Committee, I was the author of a document on improving the gender balance among non-executive directors of companies listed on stock exchanges and related measures.
It took 10 more years to get the legislation adopted and will take another 3 years before its adopted!
Remember the blog: Gender Equality: Challenging the Patriarchal Structures (Part 2)?
If we don’t have parity, we cannot get things voted through the patriarchal structures, especially legislation which promotes the equal right of women. - Well this was a classic example.
Not only did we have the politicians against the proposal we also had the business sector against the move – The business sector being the large corporates mainly ran by men!
In 2013 just 13.7% of board members in Europe were women, evidencing the clear discrimination that has been taking place. In 2022, the figure across the US and EU rose to 29%. -Way short of any 60/40 recommendation, or the 50/50 representation on a company board we deserve.
What is inconceivable is that the business case highlights the benefits of having gender balance:
· Credit rating agency Moody’s Investors Service stated that more women in the boardroom could drive higher credit ratings and stock returns for firms, adding that a higher proportion of women on boards is correlated with higher credit ratings. They also noted that the stocks of companies with low female board representation have underperformed.
· McKinsey identified a 41% higher Return on Equity (ROE) for companies with the highest proportion of women on boards compared to companies with no women on their boards.
· Catalyst found that companies with 14.3 – 38.3% women in top management had a ROE 34.1% higher than companies without similar levels of women in senior positions.
· Credit Suisse identified companies with women on boards as demonstrating a higher share price performance compared to their counterparts without women on boards.
The Value of Females on Boards Now – Today!
So, why am I raising this issue now?
Well, when there’s a downturn in the economy, like the current global downturn, it’s time to change the record and play a new tune! As Albert Einstein: “We can't solve problems by using the same kind of thinking we used when we created them.
It doesn’t matter which country we consider, overall, there is a dearth of highly‑skilled women who have the competences to be appointed to, and operate in, senior roles and board positions.
I am asking for these women to be seriously considered, not to be overlooked.
As states continue to struggle economically, their economic and social revival, not to mention their environment impacts, are dependent on the activity of a fully functioning workforce, and this means the active participation of women.
Yes, we know that there are arguments being used against promoting women into high level roles. These include a lack of reconciliation measures between business and family life, limited access to networks, and a lack of self-confidence, to name just a few – But this is outdated thinking, and additional limiting beliefs which we need to eradicate.
Women who seek to achieve senior roles in business and in life have already addressed their work-life balance issues. If it’s not a problem for men, why should it be a problem for women?
So, what’s the answer?
Well, as I said at the start, women have to apply for the positions. Disheartening as it may be to get the rejections, and I have had lots, it’s important that women apply, otherwise the rhetoric is always “No women applied”.
The other answer is, as has happened in several countries, to introduce legislation.
Most legislation which has been implemented is focussed on legally binding quotas with sanctions or self-regulation in some countries. Quotas always cause controversy, and there are arguments for an against.
My preference is for targeted measures, where a short-term target is set just to stimulate companies and organisations into action and begin a self-sustaining momentum.
Unfortunately, it has been identified that objectives are only effective if they go alongside penalties for non-compliance. Such penalties then need to be severe enough for companies to act or they avoid doing so.
Take as an example the United Kingdom, where companies are legally obliged to report the number of women on their corporate boards – Instead of reporting, they prefer to pay the fines!
Of course, not every company can comply but there should be an onus on the company to prove its due diligence in the recruitment process.
There is also an argument that says that there needs to be the respect of certain fundamental freedom of businesses to operate without interference, which as a business owner myself I completely agree with.
However, most of the corporates and organisations who have board positions are public institutions and therefore already have more interference and scrutiny. Additionally, equality and equal rights for women are enshrined in law in most countries and so transparency in the recruitment process is a legal obligation.
The Business Case for More Women on Boards
I am not here to argue the rights and wrongs of business interference, I am here to argue the economic and social case for having more females in the boardroom.
As well as being a precondition for true democracy and an equitable society, gender equality is an essential condition for any country and its economy to achieve smart, sustainable and inclusive growth.
The World Bank and Transparency International both highlight that transparency increases and corruption decreases where women are well represented in decision‑making. Good governance in all walks of life is good for society.
Besides that, in general 50% of the population in any country is female, with women accounting for around 45% of employment and providing the driving force behind more than 70% of purchasing decisions.
Furthermore, gender diversity is not only an asset for the corporate image of companies, but also provides a strong link between a company, its employees, its shareholders and its customers.
Diversity is recognised as a fundamental aspect of all private sector corporate social responsibility (CSR) policies because of its added value. - Sadly, it awaits implementation in many companies.
The competitiveness of companies derives from its innovation, research, training, skills, consumer protection and Corporate Social Responsibility (CSR) –All these require a balanced gender dimension to attain sustainable results.
Women bring unique strengths to corporate boards; diversity of thought, experience, transparency, how they solve challenges, change management, new markets opportunities, and implementation of genuine corporate social responsibility (CSR) – all these factors increase the value a company’s assets.
Diverse thinking underpins innovation and better business performance; it challenges assumptions and encourages a greater external focus on existing and new markets. The impact of cross-fertilisation of ideas is immense and this can be applied to new market opportunities also.
The challenge for boards is to adapt to truly diverse membership and recognise how to harness business challenges in a productive manner.
How to Increase the Number of Women on Boards
There are numerous examples of the improved performance of companies that have diverse gender representation on their boards. One of the main factors is that a combination of genders in any decision-making arena brings diverse critical thinking around decisions and choices, creating a more proactive business model.
Furthermore, understanding diversity in the marketplace, the customer base, has immense financial value and is a pre-requisite for corporations in any international market.
So, what can be done to improve the situation?
Greater visibility of women in senior roles – As I discussed in the blog Gender Equality: Why Visible Gender Balance Matters (Part 3) women still remain invisible. Therefore, profiling women across different sectors that have achieved board-level positions, raising awareness of these women in the wider business community and demonstrating the impact of board diversity on business success, could stimulate women to apply for board level positions, and make companies rethink their recruitment policies.
Greater transparency in head hunting talent – The process of recruitment onto boards is largely opaque, conducted by men, and relies on personal networks. To attract the broadest range of talent, opportunities need to be promoted and presented in a manner that encourages applications from all talented individuals. Increased transparency during the recruitment process would ensure the widest range of candidates are considered , whilst removing the risk of the "golden skirt" appointments.
Building and retaining a critical mass – The value of diverse thinking on a board is only realised when there is enough of a critical mass to challenge assumptions; it is therefore imperative for women to make up at least 40% of the membership on a board.
Challenging stereotypes around gendered roles – Much progress has been made regarding domestic roles and stereotypes linked to the abilities of women. This has already allowed for a greater economic participation of women. There is still much to be done, especially in the workplace, but having women at the top, and in board positions, can only serve to improve the situation.
Creating databases of women seeking board positions. There are several such databases in many countries but they are not well published or known. Raising the profile of such assets would address concerns regarding the invisibility of women who are eligible for board positions. The database would further reduce the risk of a small minority of women being recruited into multiple positions and create greater transparency in the recruitment process.
Creation of a pipeline – The sustained benefit of diverse boards requires a steady stream of highly-qualified individuals who have both the aspiration and the aptitude to take on board positions. It is imperative to create an environment that enables women to navigate their way through the labyrinth during their careers and achieve board positions. Therefore, as we say in WESTT, it is important to create mechanisms to put your hand out and pull another woman up.
At WESTT and thorough our sister company AcadAMadi, we support men and women in preparing and applying for their career opportunities. If you need support with your job application, CV or interview skills please do not hesitate to contact us.
As I have held several board positions, I may have some inside knowledge I can share.
Email me directly: Madi@westt.eu
Get ready to take control of your life and embrace a more confident, fulfilling version of yourself!
Your Experience Matters – Please apply
Which brings us to YOU.
In order to apply for board positions, you must
· Identify opportunities that match your qualifications and interests.
· Search online databases,
· Let recruitment agencies and head-hunters know you are available and what position you are searching for.
· Network with individuals already involved in boards, and
· Contact organizations directly.
Once you have identified a potential board opening,
· Research the organization to learn more about its mission and goals.
· Review the qualifications required for the position and ensure you meet most of the criteria – and where the match is not perfect, know how you will address the gap.
· Apply! - The application process typically includes submitting an application form and supporting materials such as a resume or CV, and sometimes a covering letter. Make sure your application stands out!
I know you will then be called for an interview.
· Breathe!
· Be yourself
· Exceed Expectations
· Be prepared to answer questions about your qualifications and why you are interested in serving on the board.
Good Luck!
I am here if you need me. I have coached people for interviews, TEDx speeches and presentations, so I would be honoured to help you if I can. Madi@westt.eu
Whilst this blog has focused mainly on business, there is no reason why a minimum standard could not be adopted by all public and private decision-making bodies, preferably by self -regulation and not by a need for further legislation. This could include executive directors, boards of listed SMEs and all public-sector bodies.
I am not a certified coach, but I am an experienced leader who has been working on personal development and communication for several decades. I don’t bite, and I don’t charge unless I know I can help. All initial conversations are free and confidential.
Gandhi said, “You must be the change YOU want to see”
Madi says, “You must be the change YOU want to see – NO EXCUSES!”
Founder Madi Group www.madisharma.org
Founder Women’s Eco-nomic & Social Think Tank www.westtworld.com
Author Madi No Excuses! www.madinoexcuses.com
Entrepreneur, International Speaker, Freelance Journalist
Listed as 1 of apolitical’s 100 Most Influential People in Gender Policy in 2018
Linked In Madi Sharma
Twitter @MadiSharma1
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