Women in Leadership

Today, in the United States, women are the changing face of business.  Women not only have emerged as a majority of the U.S. workforce but now wield purchasing power in excess of $5 trillion.  They buy half of all computers, half of all cars, make more than 80% of all consumer purchases, and represent nearly half of all shareholders.

It is universally acknowledged that there is, and will be, a growing shortage of senior level employees as baby boomers exit the workforce.  Successful organizations must replace them with educated, knowledgeable talent.  Currently, women are now garnering 58% of university degrees and 44% of M.B.A. degrees – a significant and growing segment of the knowledge worker talent pool.  Recognizing this, some top companies, such as American Express, CISCO, Deloitte, Morgan Stanley, Intel, GE, and others, have initiatives that give high-performing women the skills and support to move into leadership positions.

It is not about diversity of gender but the diversity of thought, behavior, and style that is required to solve complex, global problems and accelerate innovation.  Management Research Group (MRG), a prominent firm specializing in the creation of behavioral assessment instruments for individual and organizational development, analyzed the leadership behaviors and styles of 900 pairs of men and women leaders.  They employed a matching procedure that assured any differences in leadership style were due to gender, not difference in organizational position or culture.  Each of the 1,800 was assessed using MRG’s Leadership Effective Analysis (LEA) instrument and in a 360º feedback process.  Results indicate there are differences between men and women’s approach to leadership in two major areas:

Task vs. Strategy

• – Women tended to be more task and results focused than men.
• – Men were more apt to take a strategic approach to leadership.

Expressiveness vs. Constraint

• – Women operate with more energy, intensity, and emotion, have a greater capacity to keep others enthusiastic and involved, demonstrate more concern for others, and are more involved in the development of others.

• – Men are more low-key, deal with issues in an objective manner, and use language that more effectively persuades and builds commitment for ideas and initiatives.

The 360º feedback data indicate that bosses see men and women as equally effective overall.  Peers and direct reports rate women as slightly higher than men in overall effectiveness.

In order for there to be a compelling reason to ensure diversity, companies need to define how diversity links to business results.  Late last year, McKinsey & Co. conducted its Global Executive Survey.  Seventy-two percent of respondents believe there is a connection between diverse leadership teams and financial success (up 12% from the 2009 survey).  Yet, only 28% had diversity as a top-ten agenda item.  It is not sufficient for an organization to only have a diversity policy.  People follow cultural norms and what they believe leadership wants.

Here are some general considerations for those who want to continue their advancement to higher leadership levels: develop skills in strategic analysis and planning; expand networks to develop a wider range of resources for knowledge and opportunities; see yourself as a leader; raise your hand, volunteer for assignments; accept risk as a part of opportunity; take ownership of your professional development; develop persuasive skills to sell ideas and gain support; seek out a mentor and senior advocate; be who you are – authenticity forms solid relationships.

There is no one right way to lead.  Companies will increasingly need diversity of leadership behavior and style to lead a multi-generational workforce, as global markets become more complex and competitive and new, diverse markets emerge.  Men and women need to value their differences and learn from each other.  It will be for their individual and collective benefit.

For over 35 years, CMA has provided professional services for the selection, development and retention of leaders at all levels.  To learn more, please contact Joe Hoffman or Dan Bean, partners at CMA.