Women CEO’s in Family Business: Challenges & Differentiating Styles
Women CEO’s in Family Business: Challenges & Differentiating Styles A Survey Report By Dale Carnegie Training® India
Relevance 80% of businesses all over the world are family owned From traditional small businesses to a third of Fortune 500 companies 65% of top 500 BSE listed companies are family controlled,* about 70% of all BSE listed companies are family controlled 54% market capitalization on BSE (2007-08) contributed by the above family controlled companies
. . . RelevanceA vital force but . . . Less than a third survive the transition from the first generation to the second Of these, about half do not survive the transition to the third generationCan a greater role for women in family businesses turn the survival statistics???
Significance No structured and published research done on Owner-Promoter Women CEOs till date This is the first survey, globally, giving an insight into leadership aspects of women CEOs of family businesses
Survey Objectives Demographics Entry in the family business Initial challenges in the business Gender related challenges Growth corridor Mentoring and grooming Leadership styles Advantages of being a woman leader Disadvantages of being a woman leader Critical skills for success as a CEO
Research Span Number of respondents: 26 Average age: 40 years Geographic span: Pan India Status: Board level / CEO position
Personal Demographics Designation 12% Chairperson level; 84% JMD/ED/VC/Dir /ED /Non-ED / Whole Time Dir; 4% Other Age 68% 25-45 years; 28% 46-55 years, 4% 65 years and above Education 32% G; 52% PG/MBA; 12% Splzn (Ph.D./MBBS), 4% OPM from USA Marital status 68% married/with children; 28% single/with children, 4% Other Prior experience 40% 1 - 3 yrs; 32% 4 - 9 yrs; 28% 10+ yrs
Business Characteristics Age of Business: 76% companies were more than 20 years old Industry Verticals: Construction, Consulting, Engineering, FMCG, Infrastructure, IT, Logistics, Manufacturing. Business Turnover: 32% < Rs. 100 Cr; 28% Rs. 100-500 Cr; 40% > Rs. 500 Cr Company Type: 48% public limited; 52% privately held
Reasons for Joining Family Business 48% - Felt it was a better career choice 40% - By chance 36% - Planned succession 28% - Because of business need
Initial Challenges Faced 72% - needed to juggle family and business demands 88% - received support from family for household responsibilities 28% - had to put extra efforts to prove competence to family members 8% - entry into the business created conflict among management/employees
Gender - related ChallengesAgreed 52% disagreed having faced any gender bias at work 28% felt they faced gender bias from external business community 44% felt their performance was assessed more critically by all stakeholders 60% agreed they face more leadership challenges than the male counterparts 28% said they had to put extra effort to prove competence to other family members 36% said that their remuneration was not at par with the male counterparts 24% said that they have been given concessions/flexibility for work hours/travel / leave 20% said that being a woman have been given less critical responsibilities 20% said that their performance evaluation criteria different than other male family members
Growth Corridor 24% joined at entry level, 20% at middle / supervisory level and 44% senior / managerial level and 12 % at top level 15% took less than 1 year to reach the top, while 39% took 2 to 4 years, 11% took 4 to 7 years and 35% took more than 7 years 52% agreed that their rise to the top was easier than in professionally-managed companies 60% agreed that their hierarchical progress was faster than other colleagues 44% agreed that one needs to have at least 10 years of experience to get accepted as leader
Mentoring / Grooming 68% received specific grooming for their roles 68% had been coached for leadership responsibilities Methods of Mentoring: 35% - Mentoring by a family member 12% - Early informal induction (16 to 17 years age) like office visits, etc. 23% - On-the-job learning, experiential learning 12% - Observation of other business leaders 12% - One-to-one Mentoring by external consultant/Board members
Decision-making / Authority & Attitude Only 32% were final decision makers; 68% shared decision making authority 68% had authority at all levels, 24% had only at strategic level, and 8% had only at operational level 76% said they share accountability with other family members 84% said they are they are known to take tough / unpopular decisions 92% agreed that they will do whatever it takes to achieve the end results
Leadership Style 84% felt their strength was in Planning, Organizing and Execution 70% felt they were also strong in providing Strategic Direction for their business 52% agreed that they were cautious and slow in taking business risks Only 32% felt that they commanded more respect and trust being a woman 100% felt that they are amenable and friendly as a leader 52% felt that they are cautious and slow in taking business risk
Advantages of being a Woman Owner-Promoter CEOAgreed Decision making authority 80% Shared accountability 76% Greater risk taking capability 68% Flexibility of time 64% Faster career progression 52%
Disadvantages of being a Woman Owner-Promoter CEOAgreed Tough balancing business and family interests 60% Restricted personal growth 20% Lower acceptance of authority by male family members 24%
Critical Skills for a Successful CEO Knowledge of external environment, trends, functional knowledge and competence Vision, foresight and planning, ability to see a bigger picture Building strategic direction and clarity of purpose, leadership skills Ability to articulate, communicate and inspire, people skills Thinking out of the box, innovative thinking, taking risks Dedication, Perseverance, Ambition, Drive, Passion, Hard Work Emotional control, Empathy, cool head Ability to execute, implement Risk taking ability
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Thank you CopyrightDale Carnegie Training® IndiaWalchand PeopleFirst Limited
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