here’s something fascinating about the British, but it has nothing to do with the Royal Family. It has everything to do with the British focus on women in senior leadership. The proportion of board positions held by women in the Financial Times Stock Exchange (FTSE) 350 rose to 42% this year. This is more than double the global number, where women occupy just 20% of board seats.
In looking at the top 10 companies featured in the FTSE Women Leaders Review, it is striking that the majority are consumer or health focused. Research shows women make 80% of household healthcare decisions and are also responsible for 80% of consumer spending. So, it makes sense that the boards of these companies would be reflective of the audiences they serve. The same holds true globally, as consumer packaged goods and pharmaceutical companies have among the highest percentage of women in their C–suites. It makes good business sense. When your mandate is to design for HER, it’s important to have a team that understands her wants and needs. There’s an innate get–it factor and ability to create effective offerings because at least part of the team identifies with the audience. More organizations would be wise to follow suit and that goes beyond the boardroom.
The UK Financial Conduct Authority has asked UK–listed companies to ensure 40% of their board members are women and one senior board position to be held by a woman. This is not mandatory but given pressures from various stakeholders, many companies are abiding by this, as evident by the most recent results. While guidelines like this one are not possible everywhere, organizational goal setting is critical. What gets measured, gets managed.
Goal setting is not limited to just a number. There needs to be intentionality in terms of the skills and perspectives needed to drive an organization forward. For instance, I am the board chair of the UN Global Compact Network USA and used to oversee the nominations and governance committee. We put together a skills and profile matrix to help drive how we thought about the board make-up and what would be required to drive our mission forward. It’s not about box–checking; it’s about identifying what talents, characteristics and capabilities are needed to help the organization adapt and evolve. Boards are required to make tough choices about the future of a company, so ensuring varied skill sets to inform decision–making is critical.
Recent research shows companies in the top quartile for board–gender diversity are 27% more likely to outperform financially than those in the bottom quartile. And when women are well–integrated into boards, the companies experience 10% higher stock returns and their shareholders are less likely to dissent board decisions. Women bring a unique skillset to boards that help drive better decision making. According to a study by Harvard Business Review, there are a few important ways women make an impact:
- They come prepared. They read the pre-reads, they do their research, they think about business problems and what success looks like before the meeting.
- They’re not afraid to ask the tough questions. Women are not afraid to acknowledge they don’t know something and are willing to ask in–depth questions to foster understanding so the board can make the best decision possible.
- They create inclusive environments. They enable conversations that are deeper and more nuanced.
Interestingly, while the UK is doing well in terms of board representation, it does not echo into the broader organizations. There’s still work to be done in the UK and across the world to bring more women into senior leadership roles. While most organizations start with gender parity in entry level roles, that balance tips towards men as responsibility increases.
We’re making progress, though. And to keep up that progress, focus needs to be placed on developing future talent. There are three capabilities I think are critical for women to rise through the ranks. First is comfort with ambiguity. Change is all around us and to navigate that change, being ok with that uncomfortable feeling of not knowing what’s going to happen next is key. Next is resilience. There are going to be hurdles. It’s how you deal with those hurdles that matters. And lastly, having a growth mindset. You don’t need to have all the answers, but with that spirit of continual learning and knowing you can develop the tools to figure out how to problem solve.
Progress is happening. And we need to be intentional about making sure progress continues.
a global affairs media network
Breaking barriers: women on board
Photo by Kelli McClintock on Unsplash
March 9, 2024
The companies at the top of the UK’s Financial Times Stock Exchange are a model for how powerful women leadership in the C–suite can be. The more gender–diverse boards tend to perform significantly better than the less diverse, and new research shows why, writes Daniella Foster.
T
here’s something fascinating about the British, but it has nothing to do with the Royal Family. It has everything to do with the British focus on women in senior leadership. The proportion of board positions held by women in the Financial Times Stock Exchange (FTSE) 350 rose to 42% this year. This is more than double the global number, where women occupy just 20% of board seats.
In looking at the top 10 companies featured in the FTSE Women Leaders Review, it is striking that the majority are consumer or health focused. Research shows women make 80% of household healthcare decisions and are also responsible for 80% of consumer spending. So, it makes sense that the boards of these companies would be reflective of the audiences they serve. The same holds true globally, as consumer packaged goods and pharmaceutical companies have among the highest percentage of women in their C–suites. It makes good business sense. When your mandate is to design for HER, it’s important to have a team that understands her wants and needs. There’s an innate get–it factor and ability to create effective offerings because at least part of the team identifies with the audience. More organizations would be wise to follow suit and that goes beyond the boardroom.
The UK Financial Conduct Authority has asked UK–listed companies to ensure 40% of their board members are women and one senior board position to be held by a woman. This is not mandatory but given pressures from various stakeholders, many companies are abiding by this, as evident by the most recent results. While guidelines like this one are not possible everywhere, organizational goal setting is critical. What gets measured, gets managed.
Goal setting is not limited to just a number. There needs to be intentionality in terms of the skills and perspectives needed to drive an organization forward. For instance, I am the board chair of the UN Global Compact Network USA and used to oversee the nominations and governance committee. We put together a skills and profile matrix to help drive how we thought about the board make-up and what would be required to drive our mission forward. It’s not about box–checking; it’s about identifying what talents, characteristics and capabilities are needed to help the organization adapt and evolve. Boards are required to make tough choices about the future of a company, so ensuring varied skill sets to inform decision–making is critical.
Recent research shows companies in the top quartile for board–gender diversity are 27% more likely to outperform financially than those in the bottom quartile. And when women are well–integrated into boards, the companies experience 10% higher stock returns and their shareholders are less likely to dissent board decisions. Women bring a unique skillset to boards that help drive better decision making. According to a study by Harvard Business Review, there are a few important ways women make an impact:
- They come prepared. They read the pre-reads, they do their research, they think about business problems and what success looks like before the meeting.
- They’re not afraid to ask the tough questions. Women are not afraid to acknowledge they don’t know something and are willing to ask in–depth questions to foster understanding so the board can make the best decision possible.
- They create inclusive environments. They enable conversations that are deeper and more nuanced.
Interestingly, while the UK is doing well in terms of board representation, it does not echo into the broader organizations. There’s still work to be done in the UK and across the world to bring more women into senior leadership roles. While most organizations start with gender parity in entry level roles, that balance tips towards men as responsibility increases.
We’re making progress, though. And to keep up that progress, focus needs to be placed on developing future talent. There are three capabilities I think are critical for women to rise through the ranks. First is comfort with ambiguity. Change is all around us and to navigate that change, being ok with that uncomfortable feeling of not knowing what’s going to happen next is key. Next is resilience. There are going to be hurdles. It’s how you deal with those hurdles that matters. And lastly, having a growth mindset. You don’t need to have all the answers, but with that spirit of continual learning and knowing you can develop the tools to figure out how to problem solve.
Progress is happening. And we need to be intentional about making sure progress continues.
