I read a very interesting article recently in The Boston Globe called, “The Female Advantage. A New Reason for Businesses to Promote Women: It’s More Profitable”.
http://www.boston.com/bostonglobe/ideas/articles/2009/05/03/the_female_advantage/
The premise of the article is that companies with more female leadership in place at the Board and executive level are more profitable. From the article,
Measured as a percent of revenues, profits at Fortune 500 firms that most aggressively promoted women were 34 percent higher by industry means, a 2001 Pepperdine University study showed.
The call for women’s advancement in business has been primarily focused thus far on gender diversity and fairness. Equal representation. Equal pay. Now there is a new perspective to consider. There is a sound business reason to promote women. It is a proven advantage that companies with more female leadership have greater profits.
Why does the correlation exist between higher profits and female leadership representation? There are several theories presented in the article.
- women have a better understanding of the consumer market
- gender diversity leads to more vigorous discussions
- women have a different leadership style
- women are more risk adverse
Though I believe that all of the above factors contribute to the success of high performing companies, I also think that organizations that are sensitive to gender issues and actively support female managers in the pipeline are more likely to be high performing companies (true meritocracies) to begin with.
As the author states about these companies,
They’re picking the best and the brightest and letting them bloom.
What are your thoughts on this topic?
Why do you think that companies with more female leadership are more profitable?
Please send me your comments.
I think that’s a really interesting finding. I think that women being risk averse is really important to counter some of the “sometimes risky” decisions that men may make. Also women rely a lot on their intuition, and they also seek out advice and create consensus.
So instead of dictating a decision, they will gather feedback before making a choice.
Just my 2 cents, and I really like this type of article Bonnie!
Nathalie,
Thank you so much for your input. I totally agree that women leaders add much to an organization because of their innate skills and management style.
Bonnie
I completely agree with Nathalie. Woman do tend to rely on instinct and are great with interpersonal skills. Their innate ability to socialize, care, and relate with others allows them to manage people more effectively.
It’s funny though….in big business you find women who use their more feminine tendencies for good, or you see the opposite…catty-ness, and backstabbing. It’s also interesting to see that women high up in big business tend to put on a masculine facade.
I think women leaders can do it all. Have the “masculine” business savvy aspects needed, but then bring the “feminine” qualities into play. I’m excited to see what evolves in the years to come in business. A shift is definitely occurring!
Amber,
Women do walk a fine line in business. Often they are rewarded for being more “masculine” and are wary of showing their “feminine” side. But you’re right, many of their innate qualities make them more valuable as leaders.
I agree also. There are a lot of women who make great leaders. I hope to be a great leader one day also. I have been doing a lot of research on how to be successful and I just finished reading “The Power of Women United” an amazing book! The book is written by 22 women’s who share their experiences with success. It gives every women great insight on how to be a valuable leader.