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Women Leaders Bring Profit
- 1. WOMEN LEADERS BRING PROFIT
- 2. BUSINESS CASE: MORE WOMEN = HIGHER PROFITS Companies with 30% female leadership had profit margins that were up to 6% higher Data shows an increase of women in top management from 0 to 30% increases profitability by 15% Companies in the top quartile for gender diversity are 15% more likely to have financial returns above national industry median Fortune 500 companies with at least 3 female directors have 42% higher return on sales and 53% higher return on equity Companies with the highest percentage of women on boards had a 66% greater return on invested capital More women on boards is associated with having more women in leadership, otherwise known as the “pipeline effect.” Sources: Peterson Institute, EY, McKinsey & Company and Catalyst
- 3. WARREN BUFFET – FEMINIST CAPITALIST “there is no telling how far we can go when we tap into the collective potential of the entire population.”
- 4. HBR: THE MORE WOMEN ON A TEAM THE HIGHER THE TEAM INTELLIGENCE Subjects age 18 to 60 given intelligence tests Randomly assigned to teams Each team to complete several tasks—including brainstorming, decision making, and visual puzzles—and solve one complex problem Teams were given intelligence scores based on performance Teams that had members with higher IQs didn’t earn much higher scores Those that had more women did Professors Woolley and Malone, along with Christopher Chabris, Sandy Pentland, and Nada Hashmi
- 5. WOMEN IN S&P 500 COMPANIES Women control 85% of overall consumer spending; 50% of all stock ownership, 60% of all US personal wealth and comprise 45% of the labor force Source: Catalyst
- 6. PERCENTAGE OF FORTUNE 500 FEMALE CEO’S 0.4% 0.8% 1.2% 1.4% 1.6% 1.8% 2.0% 2.4% 2.4% 3.0% 3.0% 2.4% 3.6% 4.0% 4.8% 4.6% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Percentage of Women Women Men 4.6% Source: McKinsey & Company
- 7. PEW RESEARCH CENTER: MEN AND WOMEN SEEN AS EQUALLY QUALIFIED TO LEAD IN THE BUSINESS WORLD 11% 7% 80% Men Women Equally Good Leaders
- 8. INDUSTRY DIFFERENCES 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Major Hospital Major Retail Chain Large Bank or Financial Institution Computer Software Company Large Oil or Gas Company Professional Sports Team Woman Would Do a Better Job Man Would Do a Better Job Source: McKinsey & Company
- 9. WHAT IS GOING ON? Women fall behind early add continue to lose ground Women are promoted and hired at lower rates Women remain underrepresented at every level 0% 20% 40% 60% 80% 100% Men Women % Women in Pipeline Source: McKinsey & Company
- 10. WOMEN ARE LESS LIKELY TO BE PROMOTED INTO A FIRST SUPERVISORY POSITION 100 130 0 20 40 60 80 100 120 140 Women Promoted Men Promoted Twice as many men are hired from the outside as directors and more than three times as many are hired as SVPs Gap in Rate of First Supervisor Promotions – For Every 100 Women, 130 Men Source: McKinsey & Company
- 11. MEN AND WOMEN IN LINE ROLES: CEO PATH 63% 68% 63% 65% 62% 67% 56% 61% 54% 51% 50% 48% 0 10 20 30 40 50 60 70 80 Men Women 80% 20% Men Wome n Sources: McKinsey & Company and Spencer Stuart
- 12. UNCONSCIOUS BIAS (BY MEN & WOMEN) Source: Pantene
- 13. TALENT PIPELINES AT EACH LEVEL 36% 59% 31% 47% 28% 41% 24% 34% 17% 30% 19% 22% 0% 10% 20% 30% 40% 50% 60% 70% Technology Professional and Information Services Entry Level Manager Senior Mgr/Dir VP SVP C-Suite Source: Breaking Down the Gender Challenge – McKinsey and Company
- 14. THE PROBLEM IN TECHNOLOGY 32% 66% 4% Source: Girls Who Code
- 15. GENDER GAP IN COMPUTING 37% 18% Source: Girls Who Code
- 16. YIKES! By 2020, there will be 1.4 millions jobs available in computing-related fields. US graduates will fill ~ 29%, women are on track to fill just 3% of them Source: Girls Who Code
- 17. WHAT WORKS? Make a compelling case for gender diversity Measure and share performance Ensure hiring, promotions and reviews are fair Invest in employee training Focus on accountability and results
- 18. INNOVATIVE EMPLOYERS Remove gender identifying information off of resumes Managers are provided, and consider, a diverse lineup of candidates for open positions Managers evaluate performance using standardized, clear and objective metrics Leaders are held accountable for improving gender diversity The company embraces diverse leadership styles Managers create a supportive work environment and mentor high-potential women Women are provided job experiences that are critical for advancement and success Managers leverage the diverse strength of all employees Companies provide flexibility to fit work into lives There is a smooth transition process to and from extended leaves
- 19. WIIFM? Fully utilize all of the talent you have Drive better business performance Win the war for talent Broaden the diversity of thought in order to enhance innovation and creativity Build a stronger team
- 20. 2020 WOMEN ON BOARDS EVENT 11/17/16 National Conversation on Board Diversity Goal to have women as 20% of public boards by the year 2020 Devon is a major sponsor of the event Meinders School of Business 3rd Floor Gardner Conference Room 11/17/16 from 7:30 AM to 12:00 Noon Reception the night before at Mickey Mantle’s Restaurant Register at 2020wob.com Flyers at the back of the room
- 21. DEVON ENERGY IT ORGANIZATION Today’s business demands in the Oil and Gas industry require true technology innovation o High performing, agile teams o Committed multi-departmental partnerships to innovate business leveraging technology o Transparent communication o Diversity of thought and openness o Organizational learning and adaptation Strongly believe the business case that Donna just articulated applies directly to helping Devon IT deliver more value, more quickly to our business
- 22. CHALLENGES FOR DEVON IT Oil companies not usually considered “progressive” Industry not perceived from the outside as a technology leader Diversity in IT is mostly international, not gender Pipeline of technology candidates that we see resembles the statistics just reviewed, women are by far in the minority We have a lot of perception AND reality to overcome
- 23. DEVON IT – OUR JOURNEY AHEAD Commitment from the CEO down to increase “Diversity of Thought” Lean in Circle founded to raise awareness and open communication between women and men OKWIT sponsorships and participation Looking at two specific phases for addressing our gender diversity o Recruiting – Looking at ways to encourage more female candidate applications, and for identifying the “real” skills we are hiring for • learning, communication & teamwork as much as technical experience o Professional development – Identifying differences in styles that can be leveraged to rebalance the curve Establishing clear leadership expectations for encouraging diversity of thought
- 24. Q&A
- 25. CONTACT INFORMATION Brandy Semore, PMP Director of Operations Pinnacle Business Systems President/Executive Director Oklahoma Women in Tech info@okwomenintech.org Donna Miller, PCC, MBA President Executive Resource Center Oklahoma Chapter Chair Women Presidents’ Organization dmiller@executiveresource.co m Ben Williams Chief Information Officer Devon Energy Ben.Williams@dvn.com
Editor's Notes
- The Peterson Institute analyzed the data and human resources practices of 22,000 firms in 91 countries, half had no female executives, 60% had no women on their boards Return on Sales provides insight into how much profit is being produced per dollar of sales Return on Equity how much profit a company generates with the money shareholders have invested Return on Invested Capital gives a sense of how well a company is using its money to generate returns. Wellesley Centers for Women: Broaden discussions Doggedly pursue answers to difficult questions – willing to admit don’t know Bring a more collaborative approach and open communication Presence of women increases functional and skill diversity, therefore more effectively monitor staff Firms that don’t discriminate outperform those that do Policies on education, non-discrimination and childcare has more of an influence than the number of women on the board
- Company commitment to gender diversity is at an all time high Companies are struggling to put their commitment into practice Many employees are not on board To level the playing field, companies need to treat gender diversity like the business priority it is – better communication, more training and a clearer focus on results
- Study done by professors art Carnegie Mellon and MIT published in the Harvard Business Review Things you would think would be predictive of group performance were not Group satisfaction, group cohesion, group motivation were NOT correlated with collective intelligence Individual intelligence wasn’t either May be about social sensitivity Listen to each other Share criticism constructively Have open minds Are o autocratic Groups with had smart people dominating the conversation were not very intelligent groups Groups with a moderate level of cognitive diversity were most effective; those with a moderate level of cognitive diversity were most effective.
- Women need to take Visible, Important and Complex roles (Korn Ferry) Increased skill diversity within top management to increase effectiveness of monitoring staff performance Less gender discrimination in management ranks helps to recruit, promote and retain talent When don’t reward commensurate with talent, lose out to rivals that do High math scores High rates of concentration in degree programs associated with management Liberal parenting leave Relative absence of discriminatory attitudes toward female executives
- 80% of people believe men and women are equally qualified to lead Women are rated higher on their ability to work out compromises and be honest and ethical Men are seen as being more willing to take risks 65% of women believe they face discrimination, 48% of men believe they do
- There are some biases by industry People believe men are better at leading professional sports teams, large oil and gas companies and computer software companies Women are seen as better leaders of major retail chains and hospitals
- After studying 132 companies, 4.6 million people and 34,000 completed surveys, the research found the following: At the entry level point, men and women are similar 54% male, 46% female. Things start to diverge at the very first supervisory or management level position. At every step, the representation declines. Women have less access to the people, input and opportunities that accelerate careers Women are less likely to think they have equal opportunities for growth and development and are more likely to think their gender will play a role in missing out on a raise, promotion or chance to get ahead – they don’t see people like them Women get 60% of all masters degrees 50% of all medical and law degrees 44% of all business degrees This is not based on attrition, both leave at the same rate
- Women’s promotion rates lag men Disparity is greatest at first step External hiring doesn’t help; fewer women are hired at every level The percentage of women being promoted into middle and senior management is higher than the percentage currently at those levels; if this holds, the representation of mid and senior-level women will slowly increase
- As women get more senior, they shift from line to staff roles Line roles are positions with profit and loss responsibility and focus on core operations; staff roles are positions in functions that support the organization like legal, he and IT This provides them with less access to people and opportunities that advance careers At the SVP level, senior executives are 80% in line roles and 20% in staff roles In 2015, according to Spencer Stuart, 90% of new CEOs were promoted from line roles and 100% were men. Keep women in line roles.
- Women negotiate promotions as often as men They are more likely than males to get the feedback that they are “bossy”, “too aggressive” or “intimidating” Those women who do negotiate for a promotion are 54% more likely to get one Pay attention to everyday interactions Men can sponsor women – put them forward for important assignments Offer “air cover” protection and support Colleagues can have the courage to defend and support female colleagues to have their ideas heard and considered to ensure they feel valued
- 2015 with Leanin.org from 30,000 employees at 118 north American companies across 9 industries: Women are unable to enter Stuck at the middle or Locked out of the top Interactions with key leaders and sponsorship is essential for success; women’s Less substantive interactions with senior leaders impacts them Women are 3X as likely to rely on a network that is primarily female Women get less access to senior leaders; Women ask for feedback as often as men but are less likely to receive it Women are more than 20% less likely than men to say their manager often gives them difficult feedback that improves their performance (both men and women) Concerned about seeming mean or hurtful Don’t want then to dislike me Concerned about an outburst Concerned will seem biased or prejudiced Concerned about an emotional breakdown Only 40% of women want to be an executive compared to 56% of men. The more work either a man or woman does at home, the less interested they are in being senior executives
- Make an up-front investment in the ecosystem of qualified female candidates Ask, what would it take to improve pre-pipeline gender diversity and how might we play a constructive role in that effort? Leading companies are partnering with universities and organizations such as Girls who Code or initiatives such as TechPrep (launched by Facebook) to nurture talent in early education.
- Have a candid, open dialogue – beneficial to everyone Clear, consistent performance expectations Be aware of unconscious bias in performance reviews Hold senior leaders accountable for results Gender representation by level Attrition by gender Gender representation at promotion rounds Salary difference s in comparable positions by gender Bonuses in comparable positions by gender Assignment of high-visibility project by gender
- Make a compelling case on why diversity matters 62% of senior leaders say it is important, only 28% of employees say senior leaders encourage a candid, open dialogue
- Be aware of your motivations, step outside your comfort zone and advocate for yourself Know the experiences that are required and make career choices based on that information Work with a mentor to identify visible, important and complex assignments that provide experience in business growth, financial, strategy and operations Take risks and build your confidence Get real feedback – surround yourself with people who tell you the truth Let go of perfectionism Negotiate wisely