Where are the women? Taking a seat on the Board: HowWomen Directors impact Company Success Lora L. Hyler Owner Hyler Communications www.hylercommunications.com
Which is more difficult to attain?An Oscar Or… appointment to a Corporate Board?
Oscars: view from the top“I don’t see any reason why the Academyshould represent the entire Americanpopulation. That’s what the People’sChoice Awards are for.” - Frank Pierson, former academy presidentand current Board of Governors member.Chicago Tribune, February 19, 2012
Women in Corporate America: View from the top• The Wall St. Journal Report: CEO Council, composed of nearly 100 chief executives of large U.S. companies & cos. outside U.S.• Women graduate from college in greater numbers than men and enter the workforce at similar rates• Yet, at every stage, men are more likely to advance- Wall Street Journal article, Nov. 21, 2011
By the Numbers• 58% of college graduates are women• 53% of workers coming in are female• 37% at lower middle management• 28% at VP level• 14% executive committee• 3% CEO - McKinsey & Co.
High Cost of the Gender Gap why CEOs need to focus more on womenOn CEO Accountability: “it’s an economic priority.”“From 1970s until today, the fact that more women enteredthe workforce was a big driver of GDP growth. ““I look at our own firm. We’re trying to find thebest talent in the world. 25% of our intake arewomen, 58% of college graduates are women,What’s going on?”- Dominic Barton, Global Managing Director, McKinsey & CompanyFrom Wall St. Journal article, Nov. 21, 2011
High cost of the Gender Gap cont’d“Men are promoted on potential, and women are promotedon performance.One of the greatest training grounds for me was the boards Iserved on.” - Debra Lee, COO of BET Networks“In G-rated movies, we are showing kids a really almost ‘50sversion of society. There are far fewer female characters.80% of the jobs are held by male characters.There are no female scientists, medicalprofessionals, lawyers, politicians, business executives.”- Geena Davis, Geena Davis Institute on Gender in Media
Women Board Directors: Global view Norway is leader at 39.5%; U.S. Follows at 15.7%504540353025201510 5 0
U.S. Board Composition Fortune 500 2.9% 77.6%12.7 6.8% White males White women Women of color Men of color
U.S. Women Organizations at forefront of this issue “Unless and until companies takeconcerted action to reach out and seriouslyconsider qualified women for thesepositions, there is unlikely to be any realchange in board composition for decades tocome.”InterOrganization Network (ION)• Composed of an alliance of 14 women business organizations throughout U.S.• Milwaukee Women Inc. is a member• Also, The Boston Club• ION’s work supplements Catalyst by focusing on Fortune 500, plus smaller businesses - ION’s 8th annual status report of Women Directors and Executive Officersof Public Companies in 14 Regions of the United States
The Boston Club 2011 Census Findings• Surveyed 100 largest public companies in Massachusetts• Despite growth in newer sectors such as life sciences and technology, there remains a dearth of women in boardrooms and executive suites One survey sponsor says: “70% of U.S. organizations still do not have a clearly defined strategy or philosophy for developing women for leadership roles.”
The Boston Club Census Findings (cont’d)• Out of 836 seats in boardrooms of 100 largest public cos. , 93 (11.1%) are filled by women• These figures have not changed appreciably over past 6 years• Opportunities lie within smallest companies (Less than $500 million in annual revenues)“Board turnover (response) shows the differencebetween leaders who understand thebusiness case for inclusion and thosewho do not.”
Harvard Business School Panel February 25, 2012 Boardroom Perspectives: Getting There and Making an Impact Moderator: Toni Wolfman, Bentley University Panelists: • Dina Dublin, Professor, Harvard Business School • Myra Hart, Professor Emeritus, Harvard Business School • Diane Moes, Partner, Donoghue Barrett & Singal, P.C • Hope Neiman, Chief Marketing Officer, Eastman Chemical Co. Boards they served on: Microsoft, Pepsi Co., Accenture, Kraft, Chase and Office Depot
Harvard Business School Panel Key ObservationsSkills that translate into success• Decide what you want to bring to the Board• Consider beginning with Board of advisors• Critical willingness to ask questions, prod management• Curiosity to understand industry, competition• Willingness to do whatever it takes to get the job done-i.e. 40 hr. weeks over months during planned corporate merger deliberations• Maintain certain degree of dispassion, especially on non-profits• On non-profits, be prepared to leverage relationship for money or services
Harvard Business School Panel Key Observations (cont’d)• Helps to have more than one woman in room• Work to become effective member of group• Once you get one board appointment, be prepared to be deluged with calls. “Vernon Jordan effect”• Take personal responsibility for making boardroom conversations more open• Board service helps with recruitment, Find ways to have conversations outside the boardroom• Bathroom conversations count!
Impact of Women in the Boardroom• More collaboration and less insular decision-making• Greater willingness to change• Women are primary household consumers & bring their perspective into Boardroom• Women advocate for women in organization• Serve as mentors• Improve company image• Positive impact on bottom line of Corporations!Catalyst 2004-8 report which measured return onSales, invested capital and return on equity: Fortune 500
Wisconsin viewMilwaukee Women Inc.• Formed in 2002, conducts annual census and issues biennial report on gender diversity of boards/C-suites• In 2011, Surveyed Wisconsin’s 50 largest public companies• 2014 goal: 25% women directors• Women make up 14.4% of Directors, up from 12.8% in 2009• 63 of 439 seats are held by women• Nine companies have 25% or more women Directors-Measuring Change 2011 reportwww.milwaukeewomeninc.org
Wisconsin view (cont’d)• Milwaukee Women Inc. has pledged to work with business and community leaders to reach 2014 goal• Has established a partnership with the Kellogg School of Management to provide a database of qualified women candidates for board service• Show of hands
Wisconsin CEOs: on Women in the Boardroom“I believe it is very important to receive the female point ofview in our Board Room. Our three female board members arenot shy and their input is valuable.” - Bud Bergen, Pres. & CEO, Bon Ton Stores“Diversity isn’t just about diversity in the visual sense; it’sabout diversity of thought, background, and perspective.Diversity sets a tone and energy, and fosters growth throughoutour company by cultivating better decision making.”- Jeffrey A. Joerres, Chairman & CEO, ManpowerGroup
CEO sets the toneBentley University’s new Center for Womenand BusinessFounded byBetsy Myers“What we haveseen is just becausea CEO says all the rightthings doesn’t mean it willnecessarily happen.When programs andInitiatives are measuredis when progress is made.”
Winning Characteristics• Finance skills• International expertise• Previous board experience• Technology experience• Public image• Media management skills• CEO experience : 18 female CEOs out of Fortune 500• Boast more: Dec. 5 WSJ article
Next Generation Insights• Bentley University conducted a national survey of 1,000 college-educated young men and women ages 18-30• Survey results provide insights into decades-long issue of why women don’t hold a fair share of board seats• Harvard Business School – small luncheon group discussion
Hope for the Future• STEM efforts• Teen leadership efforts• Women as self lobbyists: crafting a public Image, leveraging the media, expanding Networks to include CEOs and Board contacts
Making the Business Case“Companies with sustained high representationof women board directors…significantlyoutperform those with sustained lowrepresentation.”What IfsAll stakeholders need to ask “Where’s thewomen?” - The Boston Club Census