Presentation held at the Business and Professional Women's International Congress in Helsinki, Finland, 18.06.2011.
Topic: The Business Case of Gender Diversity and the UN Women Empowerment Principles
6. 4 But also every second Hornbach client is female Copyright Anke Domscheit Unit of measure Text * Footnote Source: Source
7. Women’s Market Power As Private And Corporate Costumers Is Broadly Underestimated 5 WOMENbuy5.000.000 new cars p.a. in the EU WOMENown 9.500.000 businesses in the EU Every second US Purchasing Manager/Agent is Female Source: "A Woman's Place is in the Boardroom", Peninah Thomson and Jacey Graham, Palgrave Macmillan, 2005, ACEA, press research, Eurostat EU-27, 2005
8. 6 2000 05 10 15 20 25 30 35 2040 Quantitative Challenge: Drop Of 24 Mio In Active Work Force By 2036 If Female Employment Rate Does Not Change Active workforce in Europe* Millions Trend if employment rates remain constant** 220 Trend if the female employment rate reaches that for men*** Today 210 Quantitative challenge due to demographic change - 3 million 200 If employment rates remain constant, active workforce will decrease dramatically while demand for workers remains high 190 - 24 million 180 Increasing the female employment rate to that for men could compensate for the shrinking workforce population 0 * Total population aged 15 - 65 years multiplied by employment rate (for EU-27 countries excluding Slovenia, Slovakia, and the Czech Republic and including Iceland, Norway, Switzerland, and Albania) ** Assuming 2005 employment level of women (56%) *** Basis: male employment rate of 2005 (71%) Source: Eurostat 2005, Global Insight 2000 - 2030, McKinsey “A wake up call for female leadership in Europe” 09/2007
9. 7 Qualitative Challenge: Demand For Highly Skilled Labor Will Increase Substantially Thousands German example: forecasted additional demand by educational level, 2020 relative to 2003 Career training not completed -25% Career training completed Certificate as master/technician or vocation-al school diploma Degree from college of applied sciences or university +29% Source: IZA Research Report No. 9, 2007, p. 81, McKinsey: “A wake up call for female leadership in Europe”, 09/2007
10. „Half Of Potential Human KnowledgeIs In Female Heads“ (Thurow) – ItShould Not BeWasted! 8 „In mostwealthy countries, femalestudentsclearlyoutnumbermenatthetertiarylevel.“ „In Iceland, therearealmosttwiceasmanywomenenrolled in tertiaryeducationasmen.“ „In the United States andtheRussianFederation, thereareabout 129 and 126 femalestudentsforevery 100 male students, respectively.“UNESCO Institute forStatistics, 2010 „More womenthanmen in U.S. earneddoctorates last yearforfirsttime.“„Women now hold a nearly 3-to-2 majority in undergraduateandgraduateeducation.“ Washington Post, 2010 „In today’sSweden 60% ofthosewhobeginuniversitystudiesarewomen.“Therearemorefemalebachelorlevelstudents (55%) andgraduates (59%) acrossthe 27 memberstatesoftheEU“University of Venus, 2010 Sources: http://www.uis.unesco.org/Education/Pages/women-higher-education.aspx?SPSLanguage=EN;http://uvenus.org/2010/03/02/gender-inequality-in-higher-education-sweden-europe-and-beyond/;http://www.washingtonpost.com/wp-dyn/content/article/2010/09/14/AR2010091400004.html; http://ec.europa.eu/research/science-society/pdf/wist_report_final_en.pdf(Quote of Lester Thurow, Economist)
13. Loweringcompetitiveposition relative toother countriesLost Returns on educational investments Demographic change – shortage of talent in number and skill Globalisation – competition of economies and regions Copyright AnkeDomscheit-Berg, Fempower.me
14. Tom Peters: 10 Tom Peters: Copyright Anke Domscheit “If A Board Does Not At All Resemble The Market Being Served Than Something Big Is Badly Wrong” Source: "A Woman's Place is in the Boardroom", Peninah Thomson and Jacey Graham, Palgrave Macmillan, 2005, quoting: Peter Frost of Rethink Pink and Tom Peters
15. Women Are Underrepresented in Boards all overthe World – MissedEconomicOpportunities Worldwide, only 2 countries havewomen‘ssharesofover 20% in supervisoryboardsofpubliclyquotedcompanies: NorwayandSweden. 11 Source: Corporate Women Directors International, in speachof Irene Natividadat 18.06.2011, bpw international congress, Helsinkii
16. GrowingNumberof Women GraduatesAlone Will Not Close Gender Gap in Board Rooms 12 Source: McKinsey „Women atthe top ofcorporations: Making ithappen“ – 2010
20. Companies With More Women in ExecCommitteesPerformSignificantlyBetterComparedtoIndustry 15 Companies with 0 womenrepresentation in execcommittees in thatspecificsector1 Companies in top quartileforwomenrepresentation in execcommitteesvssector1 Average EBIT margin 2007-2009 3in Percent Average Return on Equity 2007-2009 2in Percent +41% +56% Note: 1 Top quartile: 25% ofthecompaniesofthesectorwiththehighestshareofwomen in theexecutivecommittee 2 ROE: Average calculated on 2007-2009 periodfor 279 companies 3 EBIT: Sample of 231 companies ; Banks, Insurance andfinancialserviceshavebeenexcluded; Scope: 6 European countries (UK, France, Germany, Spain, Sweden, Norway) andthe BRIC countries (Brazil, Russia, India, China)Source: McKinsey „Women atthe top ofcorporations: Making ithappen“ – 2010
21. McKinsey Measure On Organisational Excellence: Positive Correlation Between Performance And Share Of Women In Boards 16 Direction Coordi-nation and control Accounta- bility External orientation Innovation Leadership Companies with min. 3 women in boards rank higher on EACH organisational performancecriteria** Organisational performance links toeconomicperformance: Top quartile OPP companiesmorelikelytohaveaboveaverage EBITDA Capability Motivation Environment and values highest improvement (4-7 pts) Organisational Performance Profile* medium improvement (3 pts) slight improvement (1 pts) * a proprietary McKinsey Tool ** Analysis conducted on a sample of 101 worldwidecompanies, or 58.240 personssurveyed Source: McKinsey, “Women Matter – Gender Diversity, a corporate performance driver”, 10 2007,
22. Women use 5 of 9 LeadershipBehavioursthatImprove Performance moreoftenthenMen, 3 belongto 4 whichaddressfutureneedsbest 17 % Respondentswhoseemajorgapbetweenneedsandprevalenceofbehaviour % Respondents who rank behaviour as most effective for future needs* Leadership Behaviours Women and menapply equally Women apply slightly more Women apply more Women and men apply equally Menapplymore * respondentscouldchoseupto 4 behaviours Source: McKinsey, “Women Matter 2 survey conducted on the McKinsey Quarterly global panel of 684 decision makers, Women Matter 2 ,2008
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24. Bothbelongtofactors, mostpositivelyinfluencedbyhigherwomensshareCapability Motivation Environment and values Women PositivelyInfluenceThoseCapabilities Most, Whichare Most Relevant in EconomicCrisis highest improvement (4-7 pts) Organisational Performance Profile* medium improvement (3 pts) slight improvement (1 pts) Source: “Women leaders, a competitiveedge in and after thecrisis“ – Women Matter 3 – McKinsey, 09 2009
25. McKinsey: Managers Saw Lack ofFemaleLeadershipStrengths in RecentCrisis 19 Leadership skills more frequently found with women Leadership skills more frequently found with men Wehave not enoughoftheseleadershipskills (appliedmorebywomen) -31% -23% +153% +67% But toomuchofthose...(appliedmoreby man) Source: “Women leaders, a competitiveedge in and after thecrisis“ – Women Matter 3 – McKinsey, 09 2009
29. Most Gender DiversityMeasuresRecommended by McKinsey as Best Practice Mapto WEP 22 McKinsey Recommendations Women EmpowermentPrinciple Establishhigh-level corporate leadershipforgenderequality „Whengenderdiversityisatthe top ofthestrategicagenda, therearemoreactionstakenandmorewomenatthe C-level“ „CEO andexecteamshouldvisiblymonitorprogressin gender-diversityprograms“ „Inclusionof gender-diversityindicators in executives’ performancereviews“ Source: McKinsey „Women atthe top ofcorporations: Making ithappen“ – 2010
30. McKinsey Research Shows Strong CorrelationBetween WEP #1 and Gender DiversitySuccess 23 Companies wheregenderdiversityis not on theagenda (n=5221) Companies wheregenderdiversityisamong top 3 priorities on strategicagenda (n=1261) Women EmpowermentPrinciple: Establishhigh-level corporateleadershipforgenderequality 1 Fortheshareofcompanieswithmorethan 15% womenatthe C-level, the sample hasbeenreducedto 124 forcompanieswhereitis not on theagendaand 36 respondentsforcompanieswhereitis in the top-3 prioritiesSource: McKinsey „Women atthe top ofcorporations: Making ithappen“ – 2010 (based on Women Matter – Global Survey 2010)
31. McKinsey Recommends Strong Focus on Professional Development for Women – Maps WEP #4 24 McKinsey Recommendations Women EmpowermentPrinciple „Skill-buildingprogramsaimedspecificallyatwomen“ Promote education, trainingand professional developmentforwomen „Programstoencouragefemalenetworkingandrolemodels“ „Encouragementormandatesforseniorexecutivestomentorjuniorwomen“ „Systematicrequirementthatat least onefemalecandidatebe in eachpromotionpool“ Source: McKinsey „Women atthe top ofcorporations: Making ithappen“ – 2010
32. YouGetWhatYouMeasure – Old Management Receipt, recommendedby WEP #7 and McKinsey 25 McKinsey Recommendations Women EmpowermentPrinciple „Inclusionof gender-diversityindicators in executives’ performancereviews“ Measureandpubliclyreport on progress „Indicatorsofthecompany’sperformance in hiring, retaining, promoting, anddevelopingwomen“ „Gender quotas in hiring, retaining, promoting, ordevelopingwomen“ Source: McKinsey „Women atthe top ofcorporations: Making ithappen“ – 2010
33. McKinseys Names 2 Measuresas Most Effective – Both Fit WEP 26 Copyright Anke Domscheit-Berg, Fempower.me Combining UN Women EmpowermentPrincipleswithresearch on ROI forwomen in leadershipby McKinsey canhelp promote WEP in thecorporateworld. Itsthelanguage CEOs understand... McKinsey – Women Matter 4: „Women atthe top ofcorporations: Making it happen“ (2010)
34. Facts toRemember Women havesignificanteconomicmarket power – often (still) ignoredby male boardrooms Wastingfemaletalenthas negative microandmacroeconomicimpact McKinsey researchshows: Companies withmorewomen in executivepositions rank higher in businessperformance Women‘suseleadershipstylesmoreoftenwhicharemostneeded in economiccrisisandtomeetfuturechallenges Women empowermentprinciplesmap McKinsey recommendationsforsuccessfulimplementinggenderequality Facts on Gender Diversity ROI help promote WEP 27 Copyright Anke Domscheit-Berg, Fempower.me
35. Questions? Contact Anke Domscheit-Berg Founder & DirectorofFempower.me Berlin, Germany mailto: adb@fempower.me Web: http://fempower.me Twitter: @anked @fempowerme (tweeting live from BPW congress! #bpw, #bpw11) 28