Women in Senior Management: Where Are They?

Transcription

Report August 2011
Women in Senior Management
Where Are They?
human resource management
Women in Senior Management: Where Are They?
by Elise Wohlbold and Louise Chenier
About The Conference Board of Canada
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Preface
In 1997, The Conference Board of Canada published
Closing the Gap: Women’s Advancement in Corporate and
Professional Canada. The report explored the progress
and experiences of senior-level women and chief executives in large Canadian companies and professional service
firms. It found that there were many disparities between
the views of chief executives and those of senior-level
women about the extent to which women were truly
advancing up the corporate ladder. Now, 14 years later,
we revisit this issue by assessing women’s advancement
and asking, yet again, why there are still so few women at the top of Canadian organizations.
Women in Senior Management: Where Are They? explores
the progression of women in senior management positions
over the last 22 years. It is based largely on publicly available data and supported by interviews with key leading
organizations that have made notable progress in
encouraging the advancement of women into senior
management positions. The report highlights some of
the challenges women still face in the workplace and
suggests some practices for overcoming these barriers.
The study was funded by The Conference Board of
Canada. It is not intended to be an exhaustive study.
Rather, it objectively presents the data on women’s representation in senior management positions and reintroduces discussion. Its purpose is to generate interest in
further exploring the challenges and potential solutions.
Contents
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i
Chapter 1—Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Chapter 2—The Story in Numbers: Women’s Advancement Is Stalled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Women in Senior Management: Missing in Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Women in the Talent Pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Educational Choices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
3
5
6
Chapter 3—Reasons for Lack of Progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
The Labyrinth and the Glass Cliff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
The Impact of Gender Stereotyping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Organizational Culture and Gender Harassment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Chapter 4—Case Studies of Progress in Women’s Advancement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canadian Pacific Railway: Getting on Board With Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manitoba Lotteries Corporation: Achieving Gender Balance Through Cultural Change . . . . . . . . . . . . . . . . . . . .
TD Bank Financial Group: The Importance of Senior Leadership Commitment to Diversity . . . . . . . . . . . . . . . .
12
12
14
15
Chapter 5—Observations and Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Nine Best Practices for Achieving Gender Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Chapter 6—Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Appendix A—Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Acknowledgements
This report has been prepared by The Conference Board of Canada’s Leadership and Human Resources Research
division, under the direction of Ruth Wright, Associate Director, Leadership and Human Resources Research.
We would like to thank all those who took the time to participate in this report. Their insights are much appreciated, and it is their contribution that has made it possible to produce this publication. We would particularly
like to acknowledge the following individuals for participating in the interviews: Kari Giddings, Canada Pacific Railway
Marilyn Robinson and Judith Hayes, Manitoba Lotteries Corporation
Tanya Mushynski and Colleen Sidford, Ontario Power Generation
Beth Grudzinski and Arlene Sedore, TD Bank Group
We are grateful to Pedro Antunes and Marie Christine Bernard for their assistance with data analysis. Thank
you as well to internal and external reviewers Norma Dubé, Bruce Joyce, Denise McLean, and Karla Thorpe,
and to our editors, Laura Paquet and Judith Richer.
Executive Summary
Women in Senior Management
Where Are They?
Analysis of Statistics Canada data from 1987 to 2009
reveals that the proportion of women in senior management positions1 has virtually flatlined over the past two
decades, even though there has been a steady increase in
overall female labour force participation. Some research
suggests that the low proportion of female senior managers
is a result of women’s educational choices, or unwillingness among women to take demanding positions that may intrude on their personal lives. Mentoring programs,
increased work-life balance options, and hiring quotas
are often offered as solutions to these problems. Some
researchers argue that stereotypes and subtle, often hidden, forms of discrimination continue to limit women’s
advancement.2
At a Glance
The proportion of women in senior management positions has virtually flatlined over
the past two decades, even though there has
been a steady increase in overall female labour
force participation.
Since 1987, men have been two to three
times more likely than women to be senior
managers and one-and-a-half times more
likely to be middle managers.
Contrary to popular belief, women have not
made significant progress toward gender
equality at the middle management level
in either the private or public sector.
I
n Canada, the number of women in senior management positions remains low, despite decades of equal
opportunity. It has been a little over 20 years since
the Canadian Charter of Rights and Freedoms came into
force. Yet, after many years of striving for equality, women
still have not reached the executive levels in organizations
at the rates once predicted, despite early assumptions that
time would be the remedy. The few women who rise to the C-suite often attract substantial media attention,
which may give readers the false sense that barriers to
women’s advancement are a thing of the past.
Gender diversity at senior management levels is important
not only to women; it also has numerous benefits for
organizations, including increased availability of skilled
employees, stronger employee engagement, and higher
productivity.3
With the retirement of the baby-boom generation and
resulting skills shortages, organizations must develop
solid recruitment and retention strategies at leadership
1
According to Statistics Canada, senior managers include executives
above director level, excluding presidents and chief executive officers.
2
Jeffreys, Beauty and Misogyny.
3
McLean, Workplaces That Work.
Find this report and other Conference Board research at www.e-library.ca
ii | Women in Senior Management—August 2011
levels. Women make up 474 “per cent of the labour force,
but they are still under-represented in many occupations
and sectors facing current or future shortages,”5 especially
in the skilled trades. For example, women account for only
6.9 per cent of the workforce in shipping, equipment operations, and related occupations. In such sectors, organizations must train and hire members of this large, untapped
pool of people.6
Women bring different life experiences and perspectives,
providing organizations with different approaches and
solutions that may help to increase profitability.
Companies have calculated that with effective management of diversity and inclusion, reduced absenteeism
and employee turnover are achieved.7 The absence of
senior female role models can often discourage other
women in the organization.8 Employers who support
female employees will gain a competitive advantage in
retaining their employees. According to The Conference
Board of Canada report Workplaces That Work, workplace cultures that “encourage greater participation by
women share many of the same characteristics as those
that maximize employee satisfaction and engagement,”
subsequently lessening the costs related to turnover.9
With this in mind, it is important to provide an inclusive
work environment for women to prevent turnover
among women.
Engaged and fully committed employees increase an
organization’s productivity, innovation, and profitability.10 Women bring life experiences and perspectives
that differ from men’s, providing organizations with 4
Statistics Canada, 2006 Census.
5
6
Statistics Canada, 2006 Census.
7
European Commission, The Business Case for Diversity.
8
Griffith, MacBride-King, and Townsend, Closing the Gap.
9
10 MacBride-King, Work-Life Balance No. 2.
different approaches and solutions. Research suggests
that these different viewpoints may increase corporate
profitability. For instance, a Catalyst study of 353 Fortune
500 companies showed that the firms with the highest
representation of women in senior management had a
35.1 per cent higher return on equity and 34 per cent
higher total return to shareholders than those with the
lowest proportion of women.11
Some organizations have recognized the value that women
bring to corporate life and have actively tried to increase
their presence at senior levels. This report outlines nine
best practices that such companies are already using to
increase the proportion of female senior managers:
1. Use accountable search techniques—ensure female candidates on all short lists.
2. Identify talent and provide succession planning initiatives.
3. Set up mentoring and coaching programs.
4. Offer job rotation opportunities.
5. Ensure ongoing measurement.
6. Create an inclusive work environment through
awareness training.
7. Avoid the glass cliff and token females.
8. Highlight role models and communicate success.
9. Ensure senior management support.
Now that the rousing early days of feminism are behind us,
perhaps we have become complacent about the success
of women in senior management. If one looked at the
issue only through the prism of the mass media, it might
be easy to conclude that the battle has already been
fought—and won. However, a close examination of the
statistics clearly shows we need to do more to increase
the number of women in senior management positions.
We already know how; the three case studies in this
report highlight the proven strategies some organizations are using successfully to increase gender balance. If we know how to do it, why aren’t we doing it? That’s a critical question. The competitive edge of Canadian
organizations may hinge on the answer.
11 Catalyst, The Bottom Line, 1–2.
Chapter 1
Introduction
The researchers surveyed chief executive officers and
women in senior management to uncover possible reasons for women’s low representation at the top levels.
Women executives were most likely to mention inhospitable working environments, while CEOs pointed to
women’s “lack of line management experience and
inadequate time in the leadership pipeline.”2
Chapter Summary
The proportion of women in senior management has virtually flatlined over the past two
decades.
Most employers still do not have a clear
strategy in place for developing women into
leadership roles. Women report that many
workplaces remain inhospitable to women.
Fourteen years later, has the situation changed? In many
respects, unfortunately, it has not.
The report examines the reasons why
women’s progress has stalled. It explores the
barriers women face in the workplace and
strategies that women in senior management
positions consider pivotal to their advancement.
Most employers do not have a clear strategy in place
for developing women into leadership roles.
The authors also address the question, “Why
should organizations care that women are still
largely shut out of senior management?”
I
n its 1997 report, Closing the Gap: Women’s
Advancement in Corporate and Professional
Canada, The Conference Board of Canada raised
an alarm. “More women than ever are reaching the apex of success as corporate leaders and senior partners in
professional service firms, yet they remain a small part of the total,”1 the authors noted.
1
Griffith, MacBride-King, and Townsend, Closing the Gap, 1.
Mercer Human Capital recently conducted a survey of
managers at 290 Canadian organizations, showing most
employers still do not have a clear strategy in place for
developing women into leadership roles.3 Women report
that many workplaces—particularly in traditionally male
industries4 such as mining and construction—remain
inhospitable to women. The list of recipients of Canada’s
Top 40 Under 40 awards over the last decade is just one
prominent indicator of the dearth of high-potential women
at management levels. Between 2000 and 2010, fewer
2
Ibid., 20.
3
Mercer Human Capital, Women’s Leadership Development Survey.
4
In this report, “traditionally male” and “traditionally female” refer
to industries where men or women, respectively, have historically
held most of the jobs.
2 | Women in Senior Management—August 2011
than 10 of the 40 award winners each year were women.
In 2004, only three were female. In addition, most of the
female award winners throughout the decade worked in
the public sector, which has historically been more receptive than the private sector to women in management—
an idea explored in greater detail in this report.
It could be argued that the Top 40 Under 40 awards are not a scientific survey. After all, they are based on
nominations, and perhaps women are less willing to be
nominated, for reasons outside the scope of this study.
However, figures from Statistics Canada reflect Top 40
Under 40 results. Between 1987 and 2009, the proportion of women in middle management—a category that
includes directors and managers—rose by about 4 per
cent. At that rate, it will take approximately 151 years
before the proportion of men and women at the management level are equal.5
The authors also address the question, “Why should
organizations care that women are still largely shut out of senior management?” The answer isn’t just a matter of justice; it’s also a matter of organizational success. For
instance, one study showed that firms with the highest
proportion of women in senior management had a 35.1 per
cent higher return on equity and 34 per cent higher total
return to shareholders than those with the lowest proportion of women.6
Next, the report discusses the strategies some organizations have used successfully to help women move into
leadership roles, such as setting up mentoring networks
and creating competency-based hiring and promotion
processes. The report concludes with a list of nine
important practices for achieving gender balance in senior management
Methodology
Organizations should care about developing women for
senior management roles. It’s not just a matter of justice
but also of organizational success.
The authors of this report began by reviewing Statistics
Canada data on labour force participation rates and representation rates in senior leadership roles for both men
and women over the 22 years from 1987 to 2009. They
also extensively reviewed the literature on women in
senior leadership roles and related topics.
While the number of women entering the talent pipeline
has risen by some degree, women are still not reaching
senior management positions in significant numbers. That
fact may surprise many people, as the media often pay
disproportionate attention to the few female leaders who
do make it to the top. This research report aims to show
the true state of women’s progress in senior management
over the last 22 years.
Next, they wrote case studies of three organizations—
Canadian Pacific, Manitoba Lotteries, and TD Bank Financial
Group—that are in various stages in the journey to create
inclusive corporate environments where women can advance.
The organizations were selected on the basis of reputation,
awards for good practice, multiple mentions in the literature,
and recommendations from peers. The authors tried to ensure
the organizations represented a range of industry sectors.
Of course, findings from three organizations cannot be
generalized to all businesses. However, writing the case
studies allowed the authors to identify strategies and
practices that help create environments where women
can thrive.
Crucially, the report examines the reasons why women’s
progress has stalled. It explores the barriers women face in
the workplace and strategies that women in senior management positions consider pivotal for their advancement.
Ideally, employers will use this information to identify
and eliminate the barriers women face in advancing into
leadership roles.
5
Statistics Canada, “2006 Census.”
6
Catalyst, The Bottom Line, 1–2.
Chapter 2
The Story in Numbers
Women’s Advancement Is Stalled
Chapter Summary
In 2009, when their labour market participation was taken into account, men were twice
as likely as women to be senior managers in
Canada. The situation is similar in both the
private and public sectors.
Since 1987, men have consistently been two
to three times more likely than women to hold
senior management positions—even when
factoring in their relatively greater participation in the labour force. As well, men have
consistently been 1.5 times more likely than
women to hold middle management positions.
While slightly more women reach middle
management levels in the private sector than
in the public sector, women have not made
any progress toward gender equality at the
middle management level in either sector
since 1987.
Women in Senior Management:
Missing in Action
Gap Between Men and Women in
Senior Management
uring the past two decades, the number of
women in senior management positions has
remained relatively unchanged. This is despite
D
the fact that their numbers in the Canadian labour force
have increased significantly during this time. (See charts 1
and 2.) For example, in 2009, there were 26,000 women
and 56,200 men (or twice as many men) in senior management occupations, although women held almost 48 per
cent of all occupations in the Canadian labour force. In
fact, since the 1990s, men have consistently been two to
three times more likely than women to hold a senior
management role in Canada.
For the past 20 years, the proportion of women employed
in senior management ranks in Canada has remained
relatively unchanged—less than half that of men.
Are women less likely to make it to senior management in
Canada because of their lower representation in the overall labour force? When their labour market participation
is taken into account, a comparison of the proportion of
working men and women who make it to the senior
management ranks reveals a similar picture. (See box
“Methodological Note.”) The proportion of women
employed in senior management ranks has remained
relatively unchanged in Canadian organizations. Together
with charts 1 and 2, Chart 3 shows the following:
In 2009, of the 8,076,200 women employed in the Canadian labour force, only 26,000 held senior
management positions—representing 0.32 per cent of all women employed.
Chart 1
Labour Force Representation in Canada, 1987 to
2009, by Gender
Methodological Note
In order to remove the impact of labour force participation
differences between men and women, the number of men
and women in senior management roles was analyzed as a
share of their labour force participation. In other words, the
number of women in senior management was compared
with the total number of women in the labour force and the
number of men in senior management was compared with
the total number of men in the labour force.
(count, 000s)
Men
Women
9,500
8,500
7,500
6,500
5,500
4,500
1987 89 91 93 95 97 99 01 03 05 07 09
Source: Statistics Canada.
Chart 2
Senior Management Occupations in Canada, 1987
to 2009, by Gender
(count, 000s)
Men
Women
100
80
60
40
20
0
In contrast, of the 8,772,700 men employed in the
Canadian labour force, 56,200 were working in senior
management positions. This represents 0.64 per cent
of all men employed.
When labour market participation was taken into
account, a comparison of the proportion of working
men and women who made it to the senior management
ranks shows that men were twice as likely as women
to be senior managers in Canada in 2009.
This analysis reveals that, since 1987, men have
consistently been two to three times more likely
than women to hold senior management positions—
even when factoring in their relatively greater participation in the labour force.
1987 89 91 93 95 97 99 01 03 05 07 09
Chart 3
Senior Management Occupations as a Share of the
Labour Force, 1987 to 2009, by Gender
(count, 000s)
Men
Women
1.0
0.8
0.6
0.4
0.2
0
1987 89 91 93 95 97 99 01 03 05 07 09
Private vs. Public Sector
Recently, there has been a lot of public discussion on
whether the time has come to re-examine if women, who
hold 55 per cent of federal public service occupations
and 43 per cent of federal government senior roles, should
still be included under Canada’s employment equity
legislation.1 Are women in the public sector really more
likely to hold a senior management role than women in
the private sector? Since women are under-represented
in the labour force of several industries included in the
private sector (for example, “agriculture, forestry, fishing,
and hunting”; “mining and oil and gas extraction”; and
“construction”), their overall numbers in the senior management ranks could not be expected to equal those of
1
May, “Female Executives.”
The Conference Board of Canada | 5
men.2 However, as shown in charts 4 and 5, once the differences in labour force participation are factored into
the analysis, the situation is very similar for the private
and public sectors. For the past two decades, men have
been two to three times more likely than women to hold
senior management positions in both the private and public sectors.
Women in the Talent Pipeline
Chart 4
Labour Force in the Private Sector, 1987 to 2009,
by Gender
(per cent)
Men
approximately two times more likely to be in a senior
management role than men in the private sector. Since
2000, the total number of senior management occupations in the public sector has decreased, which led to
the observed decrease in the proportion of both men
and women employed at the senior management level.
Women
1.0
0.8
0.6
0.4
0.2
0
1987 89 91 93 95 97 99 01 03 05 07 09
Increase in the Proportion of Women
in Middle Management
Is the low representation of women in senior management
occupations in Canada a result of their under-representation
in the talent pipeline?3 Analyzing gender diversity at the
middle management level can help researchers determine:
where challenges or barriers may exist in the career
advancement of women in Canadian organizations; and
whether gender equality will occur at senior levels
in the future.
Sources: The Conference Board of Canada; Statistics Canada.
While the proportion of women employed in middle management roles increased from 1987 to 1997, the number
of women middle managers (as a share of the female
labour force) has decreased steadily since that time.
Chart 5
Labour Force in the Public Sector, 1987 to 2009,
by Gender
(per cent)
Men
Women
1.6
1.2
0.8
0.4
0
1987 89 91 93 95 97 99 01 03 05 07 09
It is interesting to note that, until 2000, women in the
public sector were two times more likely to be in a senior management role than women in the private sector.
However, this difference was due to a proportionally
larger number of total senior management roles available in this sector. Men in the public sector were also
A comparison of the proportion of employed men and
women who make it to the middle management ranks as a share of their labour force participation reveals that, once again, women’s advancement has stalled in
Canadian organizations. Chart 6 shows the following:
While there was a constant increase in the proportion of women employed in middle management
roles from 1987 to 1997, the number of women
middle managers (as a share of the female labour
force) has decreased steadily since that time.
In 2009, of the 8,076,200 women employed in the
Canadian labour force, 543,200 held middle management positions—representing almost 7 per cent
of all women employed.
3
2
Statistics Canada, “Labour Force Survey, custom tabulation.”
For the purposes of this research, the talent pipeline for senior
management positions includes all middle management roles,
including directors and managers who report to senior management.
In contrast, of the 8,772,700 men employed in the
Canadian labour force, 911,000 were working in
middle management positions. This represents over 10 per cent of all men employed. Therefore, men
were 1.5 times as likely as women to be middle
managers in 2009.
This analysis reveals that, since 1987, men have
consistently been 1.5 times more likely than women to hold middle management positions—even when
factoring in their relatively greater participation in
the labour force.
Chart 7
Middle Management Occupations as a Share of the
Labour Force in the Private Sector, 1987 to 2009,
by Gender
(per cent)
Men
Women
14
12
10
8
6
1987 89 91 93 95 97 99 01 03 05 07 09
Chart 6
Labour Force, 1987 to 2009, by Gender
(per cent)
Men
Women
12
10
Chart 8
Labour Force in the Public Sector, 1987 to 2009,
by Gender
(per cent)
8
Men
6
4
1987 89 91 93 95 97 99 01 03 05 07 09
Private vs. Public Sector
Women are more likely to be employed as middle managers in the private sector as compared with the public
sector. This is partly due to a higher number of middle
management roles available in the private sector compared with the public sector. However, by comparing
the proportion of the male labour force in each sector
that is employed in middle management positions with
that of the female labour force, we find that women are
more likely to advance to a middle management rank in
the private sector. Charts 7 and 8 reveal the following:
In the private sector, men were 1.3 times more likely
than women to be in a middle management role during the past two decades.
In contrast, in the public sector, men were two times
more likely than women to be in a middle management role during this period.
Women
10
8
6
4
2
0
1987 89 91 93 95 97 99 01 03 05 07 09
In both sectors, women have not made any progress
toward gender equality at the middle management
level. The differences mentioned above have been
observed consistently since 1987.
Educational Choices
The under-representation of women at the middle and
senior management levels in some Canadian organizations is often attributed to the post-secondary education
women choose. Table 1 lists the top post-secondary fields
of study for women and men. In 2006, the top fields of
study for Canadian female post-secondary graduates
were business, management, and public administration.
However, since many organizations recruit senior managers from among employees working in technical disciplines, this may limit women’s career advancement. In
contrast, architecture, engineering, and related technologies were the top fields of study for male graduates in
2006. These educational pathways can lead to middle
management positions at the business-unit level that are
feeder pools for senior management positions.
Societal norms often influence educational choices. To
increase the representation of women in their pipeline
and at senior management levels, Canadian employers—
particularly those in traditionally male industries—may
need to reach out to young women before they choose
their post-secondary field of study.
Table 1
Common Fields of Study Chosen by Canadian Female and Male PostSecondary Graduates, 2006
(rank)
Fields of study
Business, management, and public administration
Women
Men
1
4
Health, parks, recreation, and fitness
2
10
Personal, protective, and transportation services
3
5
Social and behavioral sciences and law
4
13
Education
5
15
Visual and performing arts, and communications technologies
6
8
Mathematics, computer, and information sciences
7
7
Architecture, engineering, and related technologies
8
1
Humanities
9
11
Agriculture, natural resources, and conservation
10
9
Physical and life sciences and technologies
11
14
Communications technologies/technicians and support
services
12
12
Mechanic and repair technologies/technicians
13
1
Precision production
14
6
Construction trades
15
3
Chapter 3
Reasons for Lack of Progress
The Labyrinth and the Glass Cliff
Chapter Summary
Representation of women at senior levels
is low for a range of reasons.
Many women encounter a “labyrinth” of
barriers to their advancement.
Some women find themselves placed in highrisk positions with inadequate preparation,
where the risk of failure—and subsequent
failure to advance further—is high.
Gender stereotypes that paint women as “nurturing” may lead some people to believe they
don’t have the “right” temperament to lead.
Some organizational cultures are inhospitable
to women.
W
hile increasing numbers of women have
risen to high-profile leadership positions,
such as corporate chief executive, board
member, or university president, earlier data analysis
shows that representation rates of women in senior
leadership positions remain low. Various reasons for
this situation have been suggested. This chapter will
examine three of them: the labyrinth and the glass cliff;
gender stereotyping; and organizational culture and
gender harassment.
Women’s lack of advancement in Canada has been
attributed to a “glass ceiling” (gender barriers to advancement at upper levels) or “sticky floor” (gender barriers to
advancement at lower levels). On the one hand, extensive
media coverage of highly successful executive women
suggests that the glass ceiling has been broken. However,
scholars such as Alice Eagly and Linda Carli believe we
are using the wrong metaphor. They argue that the rigid
and impermeable glass ceiling image does not adequately
convey the complexity and variety of obstacles that women
leaders face. Instead, Eagly and Carli offer a new metaphor: the “labyrinth.”1
The Labyrinth
The labyrinth metaphor captures the numerous and varied
barriers—some very obvious and others quite subtle—
that women confront from the earliest stages of their
careers. The labyrinth is not a straight course. Making
one’s way through it requires an awareness of twists and
turns at various career and life stages, persistence in
overcoming barriers, and an acknowledgement that one
may take an indirect route to success. Eagly and Carli
identify conflicting gender and leadership expectations,
family responsibilities, and discomfort with self-promotion
as some of the barriers women face simultaneously while
developing their careers.
1
Eagly and Carli, Through the Labyrinth.
The Glass Cliff
Another term coined to describe the obstacles women
face in senior management positions is the “glass cliff.”
According to this metaphor, women are more likely than
men to occupy precarious positions. Women in these
positions have a higher risk of failure, either because
their organization is in crisis or because they do not
have the support they need to succeed. When women
fail in these precarious positions, the failure is attributed to their gender rather than to the circumstances or lack of support. This can lead to the assumption that women
are inadequate leaders who do not possess the skills
required to succeed in senior management positions.2
The Impact of Gender Stereotyping
Stereotyping is the process of simplifying and reducing
classes of people to a few characteristics by which they
are generally said to be identifiable. Popular literature
suggests that stereotyping can be justified, as certain
characteristics are innate to each sex. However, more
recent findings contradict the notion that women and
men are innately different.
The perceived suitability of men and women as leaders
varies by industry—in other words, whether the industry
is traditionally male or female.
Gendered Notions of Leadership Qualities
Early explanations for the low proportions of women in senior management roles focused on the notion that
women did not possess the required managerial skills
and attributes.3 As a result, women were considered
unsuitable for senior management due to the assumption
that there were innate biological differences that affected
their leadership abilities. Accordingly, historical and
popular literature suggest that women are nurturers,
good communicators, and supportive, while men are
described as more naturally aggressive, competitive,
and independent.4 The biological stereotypes of women as
collaborative and agreeable are at odds with stereotypes
of leadership, where predominantly male characteristics
are perceived as the qualities needed to succeed. This leads
to the stereotyped assumption that men are innately better leaders.5 A recent study by the Pew Research Center,
Men or Women: Who’s the Better Leader?, shows the
enduring influence of these old stereotypes. According
to this study, 15 per cent of Americans say the scarcity
of women in top business positions is primarily due to the fact that women are innately not tough enough for business.6
The assumptions examined in the Pew Research Center
study often present women leaders with “double binds.”
For example, research shows that assertive women are
labelled “aggressive,” while assertive men are labelled
“passionate” or “driven.”7 Whichever way a female
leader acts, she is perceived as going against either the
norms of good leadership or the norms of femininity. As a result, women leaders are often in a no-win situation:
if they comply with gender stereotypes, they are seen as
inadequate leaders, but if they display effective leadership skills, they are seen as “unfeminine.”8 However,
the perceived suitability of men and women as leaders
varies by industry—that is, by whether the industry is
traditionally male or female.9
The Contemporary View on Gender Differences
More recent evidence suggests that a false dichotomy
between the sexes has been created. Scholars suggest
that, rather than being “natural,” gender differences are
learned through social interactions, which shape our
decisions about our roles in society.
4
Gray, Mars and Venus in the Workplace; Pfeffer, “Women and
the Uneasy Embrace of Power.”
5
6
Pew Research Center, “Men or Women: Who’s the Better Leader?”
7
2
Ryan and Haslam, “The Glass Cliff.”
8
Ibid.
3
Parker and Fagenson, “An Introductory Overview.”
9
Eagly and Johnson, “Gender and Leadership Style.”
Similarly, many leadership researchers have disagreed
with generalizations about women’s distinctive leadership styles.10 They argue that seemingly different male
and female styles arise because leaders are simply playing
out the roles expected of them.11 This argument makes
it possible to address the low proportion of women in
senior management as an issue of societal stereotyping,
rather than dismissing it as an incontrovertible fact of
biology. After all, as Harvard law professor Martha
Minow points out, when we do not acknowledge that
gender difference may be created through social context
rather than residing innately in a person, we can ignore
our role in producing it.12
Organizational Culture and
Gender Harassment
Research has shown a clear link between an organization’s
culture and the organization’s performance.13 As such,
organizations that pay attention to their culture are more
productive. In survey after survey, women mention an
unwelcoming organizational culture as one of the main
barriers they face in contributing in the workplace. As a result, we can assume that organizations that create
inclusive work environments and support their female
employees are organizations that are more innovative
and profitable.
Inhospitable Organizational Culture
Employers and female professionals agree that family
responsibilities and a lack of flexibility in the workplace
are obstacles to women’s advancement. However, they do
not see eye to eye on several other factors. According to
a recent study, women were more likely than their employers to see an inhospitable organizational culture—one
that fosters stereotyping and assumptions about women’s
roles and abilities—as a major obstacle.14
10 Bass, Stogdill’s Handbook of Leadership.
Such a culture can create many barriers for women
seeking senior management positions.15 While these
obstacles may not have been created specifically to discriminate against women, they can have subtle and
exclusionary effects on women’s advancement. For
instance, a lack of supportive workplace practices—
such as mentoring, networking opportunities, and ample
time to make arrangements for child care and other personal responsibilities—can indirectly inhibit their progress.
On the other hand, discrimination and harassment are
often used to directly impede it.
Gender Harassment
While gender harassment was once thought to be based
on sexual desire, new notions of harassment in the modern workplace have emerged. Today, many researchers
feel gender harassment is directed toward both men and
women who violate workplace gender norms. Research
has found that in the modern workplace, women who
violate feminine ideals are most likely to be harassed.16
There are many reasons for the low representation of
women at senior levels in Canadian organizations. But
the barriers are not insurmountable, and many organizations are already making progress in overcoming them.
In a 1980s U.S. Supreme Court case involving the Price Waterhouse accounting firm, a successful and outspoken woman was denied a partnership until she
changed her appearance and attitude. Her employer
stated that her chances of advancing in her career would
be furthered if she was to “walk more femininely, talk
more femininely, dress more femininely, wear make-up,
have her hair styled, and wear jewellery,” since her partners found her “overly aggressive” and “unduly
harsh.”17 The Supreme Court found Price Waterhouse
guilty of sex discrimination under the U.S. Civil Rights
Act. Since then, PricewaterhouseCoopers—the company
11 Van Engen, Van der Leeden, and Willemsen, “Gender, Context
and Leadership Styles.”
12 Minow, Making All the Difference, 368.
15 Wood, “Revisiting Women Managers and Organizational Acceptance.”
13 Beer, “How to Develop an Organization.”
16 Berdahl, “The Sexual Harassment of Uppity Women.”
14 Women in Mining Canada, Ramp-UP.
17 Price Waterhouse v. Hopkins.
that emerged from Price Waterhouse—has won a
Catalyst Award, which is given to organizations for
exceptional support of women in business.
Multiple Causes, Multiple Solutions
There are many reasons for the low representation of
women at senior levels in Canadian organizations, from
the labyrinthine structure of their careers and a lack of
proper preparation for senior roles to gender stereotyping and organizational culture. Ways to address these
issues are similarly diverse, as the case studies of companies in the following chapter will reveal. Those case
studies will also clearly show that the barriers to women’s
advancement are far from insurmountable. Many organizations are already making progress in overcoming
them, and others can learn from their example.
Chapter 4
Case Studies of Progress in Women’s Advancement
Founded: 1881
Chapter Summary
Canadian Pacific Railway has instituted a range
of female-friendly workplace policies, supported
by a strong communications program.
Manitoba Lotteries Corporation has developed a
comprehensive competency model and leveraged
it to drive key changes to their talent systems.
TD Bank Financial Group has a Women in
Leadership committee and helps women network with and mentor each other.
T
o learn about best practices for encouraging the
advancement of women into senior management positions, we interviewed representatives
of three organizations notable for their progress in this
area: Canadian Pacific Railway, Manitoba Lotteries
Corporation, and TD Bank Financial Group.
Canadian Pacific Railway: Getting on
Board With Diversity
Company: Canadian Pacific Railway
Head office: Calgary, Alberta
Line of business: Operates a freight and transcontinental
Size: 17,000 employees across Canada and
the United States
Website: www.cpr.ca
The Canadian railway industry faces a number of challenges in attracting a diverse workforce. It is a safetysensitive, 24/7, traditionally male operating environment
that, historically, has not attracted many women and
minority groups. Canadian Pacific (CP) acknowledges
these challenges by focusing on recruiting, developing,
and retaining women, visible minorities, Aboriginal
people, and people with disabilities through its diversity
and employment equity program. It has also gone one
step further than most organizations and focused on
enhancing the awareness of all of its employees on the
value the company places on human rights, respect in
the workplace, and the elimination of workplace barriers,
rather than on enacting special programs.
In the late 1990s, an employment systems review and
survey showed that CP’s workplace culture made it difficult for women and other minority groups to succeed.
As well as the traditional railway culture and work requirements, key barriers to female retention and advancement
included the lack of the following for women:
senior management role models;
networking opportunities; and
mentoring.
railway in Canada and the United States, and provides
logistics and supply chain expertise.
At that time CP’s senior executive team worked with a
consultant to assess themselves on the Diversity Continuum
and to identify the business case for equity. The company
also instituted diversity and employment equity awareness
training for all management staff. This training focused
on the business case, legislative requirements, and the
link between diversity and the corporate values of respect
and fairness. Diversity advisory panels made up of
employee volunteers were also set up across the system.
The company’s Employee Relations group develops and
oversees the implementation of a strategy to attract, retain,
and promote female talent within the organization, along
with the other three employment equity designated groups.
The action plans and goals are incorporated into the
departmental business plans. Various programs and
policies have been established, including:
workplace accommodation and return-to- work programs;
maternity/tranquility (prayer) rooms;
telecommuting, job sharing, flexible work hours,
and flexible benefits provisions;
a child care service; and
an employee family assistance program.
CP also created a corporate communications plan to consult with and inform employees and their representatives,
and to promote diversity and inclusion. Its elements include:
joint company and union employment equity committees;
diversity and employment equity advisory panels;
a Diversity Corner on the company’s intranet site
that includes a diversity calendar, resources, and
information on diversity-related events;
stories and graphics in various media, such as the
company’s newsletters, intranet, and external productions, featuring a diverse range of CP employees;
a poster series focusing on respect in the workplace; and
ongoing stories and features on diversity initiatives, training, resources, and reports.
These initiatives have benefited both female and male
CP employees. Both sexes are more aware of the need
to be flexible in work style and are taking advantage of flexible work arrangements.
CP partners with its unions to ensure it identifies and
removes barriers to equity. The company also incorporates diversity and employment equity measures into its career development programs as they evolve. Each
department is required to have diversity goals and develop
talent management processes that reflect these goals
based on the unit’s workforce analysis. To attract and
retain women and other diverse talent, CP has set up
early support systems, including work experience
opportunities, an orientation program, a buddy system, and job shadowing.
Over the years, CP has offered various formal and
informal mentoring for women and other groups within
the company. One business unit developed a reverse
mentoring program, through which women outside senior management mentored managers to help them
understand the issues women faced in the workplace.
Other departments offer more traditional mentoring programs targeted at women, and other programs are
offered to all employees. CP held two forums for women
in the engineering/track maintenance department; sessions
featured panel discussions and a dinner with senior
female leaders to highlight career development and
training opportunities.
CP has doubled the number of women in senior management roles, yet the number of female employees overall
is still below its 17 per cent goal.
The company also sponsors and supports the CP Women
on Track groups established by women across the rail
system to offer networking opportunities and give back
to the communities in which they work. Most recently,
the company is working with the Women’s Executive
Network to offer development opportunities for women in professional positions at the railway. CP women, and
men, also work with the Alberta Women’s Science
Network’s Operation Minerva program, which is targeted at grade 9 girls to encourage them to consider
careers in technical, trade, and operations areas.
This focus on attraction, retention, and development at
CP has been very successful. With one-quarter of the
CP board of directors and one-third of the company’s
top executive being made up of women, the company is
proud of its success. The representation of women in
senior management doubled between 2004 and 2009 to reach 22 per cent. However, the representation of
women in the company’s overall labour force—10 per
cent—is still a ways from the 17 per cent goal it has established.
CP’s focus on attraction, retention, and development has
been very successful, and it is proud of its success to date.
To maintain momentum, the company monitors the representation of women at every level and in each business
unit twice a year. It also uses the results of the workforce analysis to develop an overall corporate action
plan. Then, business units with specific challenges in
attracting and retaining female employees develop
action plans for which the team leads are accountable.
It is difficult to link female representation to corporate
performance, particularly in an industry where results
are closely tied to economic cycles. However, with the
leadership of more women at the top, the company has
made some extremely challenging decisions and changes that have allowed it to continue to be one of the
safest and most efficient transportation companies in
North America.
Manitoba Lotteries Corporation:
Achieving Gender Balance Through
Cultural Change
After a change in senior leadership at the board of directors and CEO levels in 2000, Manitoba Lotteries
Corporation instituted a cultural transformation. By
defining organizational values and refining the culture,
the board and the senior management team were able to build an inclusive environment that focuses on:
respect;
continual learning;
diversity; and
opportunity and growth for all employees.
Manitoba Lotteries believes it has been able to achieve
gender balance at the senior levels by taking gender out
of the equation. In 2001, the organization’s senior leaders
recognized that gaming is a traditionally male field. They
were facing unique challenges in attracting and retaining diverse talent, so they developed a comprehensive
competency model and leveraged it to drive key changes
to their talent systems. In particular, for all positions, this
model has provided the backbone for the organization’s:
hiring practices;
performance management systems;
promotions processes; and
selection processes.
This organizational change prompted a front-line management and supervisory review. All employees were
asked to identify their competencies and areas that may
require development. Through this process, Manitoba
Lotteries strategically aligned people and positions and
put appropriate development plans and support in place.
The organization took an inclusive approach to development; while specific equity groups were encouraged to
participate in development programs, these programs
were, and continue to be, accessible to all employees.
Company: Manitoba Lotteries Corporation
Head office: Winnipeg, Manitoba
Line of business: Crown corporation of the Province of
Manitoba. Owns and operates the Club Regent Casino
and McPhillips Station Casino, as well as Manitoba’s
video lottery terminal network. Supplies break-open
tickets and bingo paper, and distributes and sells tickets for lotteries operated by the Western Canada Lottery
Corporation and the Interprovincial Lottery Corporation.
Founded: 1982
Size: 1,900 employees across Manitoba
Website: www.mlc.mb.ca/MLC/
Training and development have become the backbone
of the organization’s new competency-based culture.
All employees can benefit from:
career development support;
a strong educational assistance program;
mentorship programs;
an on-site high school;
English as an Additional Language training;
essential skills development;
university partnership programs;
internship programs;
talent management and succession planning Founded: 1855
initiatives; and
Size: 55,000 employees in Canada;
83,000 employees globally
Website: www.td.com
an in-house assessment centre.
This ensures that employees and their managers are
always focused on competency and skill development.
Since the organization put its competency-based system in place, the balance of women in senior positions at
Manitoba Lotteries has changed markedly. Between
1999 and 2010, the proportion of women at the vicepresident level rose from 12.5 per cent to 50 per cent.
And in the talent pipeline, women comprise over 50 per
cent of the organization’s labour force and hold approximately 40 per cent of all supervisory and management
positions. In fact, women currently hold the only two
casino general manager positions.
While competency-based systems are not new, many
organizations have had difficulties implementing them
effectively. Manitoba Lotteries has remained focused
over the years on building and developing its system.
This sustained focus has been the secret to its success.
Manitoba Lotteries continues to hone its ability to collect data and develop metrics related to its competencybased system so that it can better inform the strategic
planning process.
TD Bank Financial Group: The
Importance of Senior Leadership
Commitment to Diversity
Company: TD Bank Group
Head office: Toronto, Ontario
TD has always recognized the importance of attracting,
retaining, and developing diverse talent. In 2005, Ed
Clark, Group Head and Chief Executive Officer, and his
senior executive team made it a strategic business priority
to make sure it had the same focus as other aspects of
the business.
The Diversity Leadership Council
Clark’s strong public support for fostering a diverse and
inclusive culture for employees, customers, and the communities that TD serves became the catalyst for the formation of the Diversity Leadership Council. The council
comprises senior executive leaders representing major
businesses and corporate areas and reports directly to
Clark. Its progress is also regularly reported to the
board of directors.
The council has identified six areas requiring particular focus:
expanding leadership opportunities for women;
expanding leadership opportunities for members of visible minority groups;
building an agenda for people with disabilities;
enhancing and promoting an inclusive environment
for lesbian, gay, bisexual, transgender, and allied
employees, customers, and clients;
enhancing and promoting an inclusive environment
for Aboriginal employees, customers, and clients in
Canada; and
serving diverse communities.
Line of business: Large, diversified financial services com-
pany operating in a number of locations in key financial
centres around the globe. Four key businesses: Canadian
Personal and Commercial Banking, including TD Canada
Trust and TD Insurance; Wealth Management, including
TD Waterhouse and an investment in TD Ameritrade;
U.S. Personal and Commercial Banking, including TD
Bank, America’s Most Convenient Bank; and Wholesale
Banking. One of Canada’s largest employers. Has 19 million customers globally and $616 billion in assets as of
January 31, 2011.
The council decided to focus on women in leadership
because it was dissatisfied with women’s representation at
the senior management level and in the talent pipeline.1
It argued that TD was missing opportunities to attract
and retain talented women because of this lack of representation, as women could not see role models or find
female mentors within the organization.
1
TD defines senior management as the vice-president level and
above and the pipeline as the two levels leading up to the senior
management level.
The Women in Leadership Committee
Led by Colleen Johnston, Group Head Finance and
Chief Financial Officer, TD’s Women in Leadership
Committee is focused on:
making sure the aspirations of women at executive
levels and in the pipeline are fully understood and
supporting their development;
developing and supporting formal networking and
group mentoring initiatives;
continuing to support issues that are important to all employees, but may be of particular interest to
women—such as flexible work environments, onramping, or returning to the paid workforce after a leave; and
ensuring men are supportive of the Women in
Leadership initiative and understand the benefits to them.
Networking
TD has a robust Women in Leadership (WIL) network,
with over 2,500 women in 14 chapters across the country
from every TD business. Each chapter is led by an executive sponsor and a cross-business committee. Chapter
activities include face-to-face events, live online “chats,”
lunch-and-learns, and networking lunches with executives
and philanthropic opportunities. In 2009, TD launched
an internal electronic WIL network site to help women
connect in a meaningful way outside of events. The site
allows employees to share their thoughts, read about TD
women and men doing great things, and learn more about
subjects that matter to women.
Career Development
The opportunity and support to develop to an individual’s
full potential is a fundamental part of TD’s employment
brand. TD leaders are expected to play a key role in
ensuring all employees have the opportunity to grow
and develop in their careers. Key aspects of employee
development include a personal development plan that
each employee develops for themselves with their manager and a formal human resource planning process that
identifies high-potential women and men at different
thresholds in their careers and looks at the upward progression of male and female talent within the organization.
Business Units
Each business unit also develops its own programs to
attract, retain, and develop female talent. Some areas,
such as retail banking, have a very high representation
of women at all levels. In others, where the representation of women is lower, the area’s leadership team and
human resources leadership team develop strategies and
hiring practices targeting women.
These corporate and business unit initiatives have resulted
in measurable success, especially at senior levels. In
2005, while two-thirds of the overall workforce at TD
was female, women made up only 22 per cent of senior
management. Since then, representation of women at
this level has increased to 35 per cent. Representation in
the pipeline has increased at a lower rate over the same
period, from 28 per cent to 34 per cent. TD is now trying to determine whether barriers to the progression of
women exist at the pipeline level.
The bank has been very successful in improving gender
balance at the senior levels. The Women in Leadership
Committee credits this success to the strong commitment
of senior leaders, who believe that supporting workplace
diversity and inclusion is a business imperative that will
help the bank attract and retain the brightest and most
talented employees; reflect its customer base; and support the communities it serves.
Chapter 5
Observations and Opportunities
Nine Best Practices for Achieving
Gender Diversity
Chapter Summary
Organizations that have successfully encouraged women to pursue senior management
positions have developed best practices that
others can use to follow in their footsteps.
1. Use Accountable Search Techniques
To increase gender diversity, human resources and senior
management should ensure that at least one female candidate is included in recruitment and promotion shortlists.
The use of quotas to increase female representation is
controversial; however, in the short term, quotas are the
most efficient way of guaranteeing women’s increased
representation.1 Nevertheless, they are not the only answer
to increasing women’s representation; they should be
combined with the other eight best practices. If an
organization uses this approach, it should be careful to avoid appointing “token” female leaders.
Some companies institute mentoring, coaching,
and job rotation programs.
Others work to avoid the tokenism that can
put some women on a “glass cliff.”
Senior management support and strong
communications programs are key to success.
T
he case studies describe a number of good
business practices for advancing women to senior management positions. The following is not an exhaustive list, but rather a list of key practices
that have helped these organizations move forward on
both their gender goals and their diversity and business
goals. These practices do not always require large investments of capital; they are easily replicable and are applicable to businesses of any size and in any industry. What
they do require is a shift in focus and an openness to
considering new ways of doing things.
2. Identify Talent and Provide Succession
Planning Initiatives
While it is important to develop talent at the senior
management level, the successful organizations profiled
focus on identifying and developing potential leaders at
the middle levels as well. Organizations with a strong
succession management culture encourage women with
high potential to come forward, while taking diverse
cultural backgrounds into consideration. Given the data,
which showed a dramatic drop-off in representation
from middle management to senior management positions, it is important to place more emphasis on
development earlier in women’s careers.
1
Krook, “Reforming Representation.”
3. Set Up Mentoring and Coaching Programs
Several organizations profiled in this report have established coaching, networking, and mentoring programs
to support women’s advancement in the workplace.
Networking events not only give women opportunities to broaden their professional exposure; they can also raise the profile of female leaders in organizations.
Furthermore, women’s networks foster relationships
among women at senior levels and help those at middle levels establish mentoring relationships.
Ontario Power Generation: Empowering Women to Succeed
As the province’s publicly owned and largest electricity generator, Ontario Power
Generation (OPG) delivers value to Ontario by safely and efficiently producing
low-cost electricity, most of which comes from nuclear and hydroelectric power
that is virtually free of greenhouse gas-causing emissions. Along with its
12,000 employees, OPG provides close to two-thirds of Ontario’s electricity.
OPG Vice-President/Treasurer Colleen Sidford founded the organization’s
emPOWERed Women Program in 2008 to help women across the company
maximize their individual and organizational potential. The emPOWERed Women
Program is a leadership development and mentoring program. It was created to
demonstrate a commitment to gender diversity and the advancement of women
to encourage and prepare them for leadership roles and to actively exercise
choices for their career development in the workplace and in their lives. The
goal of the program is to foster the development of women leaders, encourage
networking among all participants, and grow an effective mentoring program.
To fulfill this mission, the program is built around four key values:
increase career opportunities for women in OPG;
demonstrate commitment as a company to gender diversity and equality;
heighten engagement among all women; and
leverage the leadership capabilities of women.
The program is open to all female OPG employees and requires them to commit
a half-day each month over four months to leadership, networking, career development, and mentoring classes. Since its inception, 315 women have graduated
from the program as “diversity ambassadors,” who then mentor and support
other OPG women. Another 78 women are currently participating in the session
that began in January 2011. All managers of program participants, as well as
President and CEO Tom Mitchell, are invited to the graduation ceremony. OPG
regularly publishes news about the program and the graduation ceremony in its
newsletter and on its website.
4. Offer Job Rotation Opportunities
Job rotation programs have great potential to improve
women’s job satisfaction, engagement, and retention by
providing women with a wider perspective, new expertise,
and broader knowledge of the organization.2 Furthermore,
these programs can provide women with networking
opportunities and help them establish connections in
areas not traditionally accessible to women.
5. Ensure Ongoing Measurement
Implementing gender diversity indicators to measure,
identify, and monitor current gaps is the first step to
achieving change, for several reasons. First, it helps create transparency in organizations. Second, the ratio of
women in the pipeline eligible for senior management
positions is a key indicator that will help organizations
develop future talent. Finally, understanding indicators
and gaps can help organizations define and shape their
priorities and programs, and evaluate success.3
It takes leadership commitment to build a diverse, inclusive
business. Among other things, leaders act as role models
for appropriate behaviours, attitudes, and beliefs.
6. Create an Inclusive Work Environment
Through Awareness Training
Building an inclusive work environment means recognizing and appreciating employees’ varied experiences
and characteristics. Most of the organizations profiled
in this report train their employees to be aware of their
biases and gender role assumptions, as these often shape
decision-making. Unrecognized, these biases and assumptions may make it difficult to take advantage of different
perspectives and leadership abilities. Most also encourage
employees not to conflate so-called masculine characteristics with good leadership. Instead, these organizations
base their talent management efforts on competencybased leadership models that incorporate important elements such as teaching and mentoring.
7. Avoid the Glass Cliff and Token Females
Women in senior management often face added scrutiny.
Thus, it is essential not to appoint “token” female executives, who may be unseasoned or unprepared for their
2
Wright and Wohlbold, “Women in Senior Management Positions.”
3
McKinsey, Women Matter 2.
new positions. Women often have to outpace their male
counterparts to justify their presence. If an inexperienced
executive has little preparation or support, the risk of
failure is high. If a token female does fail, her failure
may be attributed to her gender rather than to the risky
circumstances of the position or the lack of support provided. This would reinforce the stereotype that
women are not effective leaders.4
8. Highlight Role Models and
Communicate Success
When women see female role models in their organization receiving recognition and acknowledgement, they
internalize the idea that they can achieve such goals if they perform similarly well. Role models can also
help others learn to deal with organizational politics and pressure.5
4
Adams, Playing to Strength.
5
Gibson and Cordova, “Women’s and Men’s Role Models.”
Most of the profiled organizations encourage female
role models to participate in outreach programs at high
schools, colleges, or community events. By doing so,
organizations show that gender equality is important to
them and reach out to prospective employees. This strategy also helps organizations advertise their business and
provide guidance to people beyond their walls. The profiled organizations all recognize the connection between
helping their community and growing their business.
9. Ensure Senior Management Support
It takes leadership commitment to build a diverse and
inclusive business. In many of the profiled organizations, the CEO or senior leaders drive the agenda not
only by setting and supporting the course, but also by
helping to determine the level of support and resources
available. Furthermore, leaders act as role models for
appropriate behaviours, attitudes, and beliefs.
Chapter 6
Conclusion
Chapter Summary
Women have made great progress in many
areas in the last 22 years, but their success at
senior management levels is still limited.
In the successful organizations profiled, fostering gender diversity is a natural extension
of good business practice. Enhancing gender
diversity helps organizations expand their
markets, improve their services, and advance
the rights and status of women, while making
a positive contribution to their community.
Companies cannot sit back and expect
women’s advancement to just happen on its
own; they need to encourage it, perhaps by
following some of the practices discussed in
this report.
W
omen have made enormous legal strides in
the last two decades, but this progress has
not translated into greater representation at
the senior management level. They continue to face barriers to their advancement due to hostile work environments, gender stereotyping, and numerous other barriers.
In the successful organizations profiled, fostering gender
diversity is not a separate business strategy but, rather, a
natural extension of good business practice. Enhancing
gender diversity helps organizations expand their markets,
improve their services, and advance the rights and status
of women, while making a positive contribution to their
community. The organizations profiled and numerous
studies confirm that diversity enhances a company’s
long-term value by building its reputation and increasing
its productivity and profitability.
The literature and organizational profiles identify a
number of factors that are key to creating a genderdiverse business. Internal factors include commitment
from leaders, accountability, communication, community
outreach, corporate programs, and a willingness to encourage employees with broad experience and talent to come
forward. External factors include positive societal attitudes,
legislation, and community organizations that support
gender equality.
Increasing women’s representation at the senior level
isn’t simply a matter of justice or fairness. It’s also about
increasing competitive advantage and profit share.
The degree of change required, within organizations and
in society at large, partly explains why women’s representation in senior management remains low. Invariably,
with social change there is also much struggle, backlash, and conflict. If our organizations are to achieve
relative gender balance, significant change in talent
management and leadership management practices will be required.
Businesses cannot foster gender diversity in isolation.
They must work with governments, local communities,
customers, employees, and other stakeholders to gain
the support and knowledge they need to promote gender
equality, erase gender stereotyping, and sustain longterm change.
Increasing women’s representation at the senior level is
not simply a matter of justice or fairness—although it is
that. And it is not simply a “women’s issue.” Companies
that fail to integrate women’s perspectives into their
high-level decision-making risk losing market share,
competitive advantage, and profits. We already know
what to do. Now we simply need to do it.
Appendix A
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Women in Senior Management: Where Are They?

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