How can CEOs make the most of female talent?

Despite the growing numbers of young women entering business life, few are making it to the top. Lynda Gratton, professor of management practice at London Business School and executive director of the Lehman Brothers Centre for Women in Business, says 30 per cent of senior positions need to be held by women before an organisation can fully realise its potential female talent.

“Below that level women are a minority and liable to experience all the stereotyping suffered by any other minority. Above 30 per cent, they create a breadth of role model styles at the top of the company, can become crucial mentors and coaches and can temper the overly masculine cultures that currently pervade many executive suites.”

In a comment piece for the Financial Times, she suggests three crucial things that chief executives can do to maximise the potential of female staff.

Ms Lynda Gratton answers your questions below.

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I am a senior accountant for a medium to large company where 100 per cent of senior executives are male and I genuinely feel the barrier. I do wonder though, how I can raise awareness in a non-threatening fashion so as not to come across as an angry feminist. Also, as a competent and driven individual who aspires to a senior executive role, I would not wish that it would be held against me. Is there a preferable and proven way to accomplish this? Is it too forward to ask management why?
Sarah Grigg, London

Lynda Gratton: You’re not alone. In fact, 22 out of 61 companies in our survey have less than 10 per cent women senior executives. However, our research has shown that there are some really good practices in accounting firms.

So what are you going to do?

1. Show how incredibly competent you are by pulling in a great client and keeping control of the account.

2. Join one of the women networks in your profession and see how others have developed the conversation. Find out what good practice is, and communicate this to your senior executives. Benchmarking is very important.

3. Find out how many clients of the firm are women and remind senior executives that there not reflecting their customer base. You might also want to remind them that they are not getting a return on capital for their talent if all their senior people are taken from one particular talent pool - i.e. men.

4. Find the other women in your company and develop a way of lobbying for support. Sometimes management aren’t aware of the affect that they’re having, and conversations can be really helpful.

If all this fails, leave the company and tell them why you’re leaving. And then, next time around ask how many senior executives are women before you accept a new job.

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Starting a career in investment banking is obviously a tough task, however, I think that although a lot has been talked and discussed in the recent years, not enough has been done to break the obvious male-dominated stereotype in the financial services industry. What do you think about the emergence of so many centres for women in business? Do you really think that they can succeed in breaking the model? I am running a women’s club myself and I would really appreciate your comments
Elena Koycheva, London

Lynda Gratton: We think it’s marvellous that there are now a network of women’s groups and research centres around the world. We at the Lehman Brothers Centre for Women in Business at London Business School focus primarily on creating ground-breaking academic research.

It’s clear to us that investment banks are aware of the challenges their working cultures pose for women. We’ve seen a whole raft of initiatives designed to tackle that, for example; Lehman Brothers Encore Programme and Citigroup’s Networking programme.

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As most companies were originally started by men, isn’t it the case that they have an embedded ”male” culture and history that can’t simply be fixed by putting three women for every seven men in a management role?
Andrew Wilson, London

Lynda Gratton: You’re right of course. Organisational culture changes rather slowly. However, there can be times when a transformation can take place. Transformations tend to be lead by passionate leaders - and that could be women or a man. However, it’s easier for women to play the role of ’change agent’ if they’re not in a minority.

In my view the entry into organisations of generation Y women will have a profound impact on companies over the next decade. These confident and able women will want to shape organisations just as generations of men have tried.

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It has been reported that women in supportive roles are often more willing to work for and support men in top positions, than give similar support to a woman on her way to a high level position. This additional cultural hurdle has also been said to be more developed in Europe than in the US for instance where women are more likely to behave in an understood minority behaviour, where you go out of your normal way to help the disadvantaged, the discriminated against in your group. How in your view, can women develop a culture of support?
Fran Husson, UK

Lynda Gratton: One of the really interesting findings from our research is that in those companies we studied, those with female CEOs are more likely to have greater numbers of women executives and more flexible working arrangements. So it can be great to work for a woman.

We also found that women these days are fabulous networkers - 76 per cent were members of some sort of network, both within and outside of work. These networks are great places to learn new things and make friends. However, there seems to be a difference between male networks (typically more power based) and female networks (typically more peer based). So it’s good for women to form networks, but it’s smart to make them as broad as possible.

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Speaking as a young woman, I find it very difficult to be taken seriously. There seems to be an inescapable assumption that relative inexperience equates to ineptitude. The only way to make serious headway seems to be to enter a small company, which is riskier and doesn’t necessarily carry the same weight as making it to the top in an established firm. I relish a challenge and so I suppose my question is how do I present myself to these firms in such a way that my age is not a factor? Also to what extent is education the key to the c-suite? Is an MBA an absolute necessity?
A Smith, London

Lynda Gratton: I think it’s a great time to be a young woman. Our study has shown that in the 61 European companies surveyed, they reported that 50 per cent of the young graduates entering large companies are women. I believe that generation Y - as a young woman that’s what you are - who are technically savvy, well-educated, ambitious for meaningful work and keen to have balanced lives will change the face of corporate life.

So take heart. There are lots of opportunities out there for you, both in corporate life and indeed if you decided to work in a start-up. In fact, many of the women who come to London Business School to study for an MBA then go on to become entrepreneurs.

Is an MBA absolutely necessary? Our research shows that what an MBA does for women is to increase their confidence and awareness in general business. One of the things that hold women back is what’s been called ’the impostor syndrome’ where a woman feels inadequate and unworthy in the workplace. An MBA could be a great way of overcoming this. There are other training options around short courses and workshops. Why not check out www.london.edu?!

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I have a small child and have taken two years out to care for and complete a business orientated masters but now wish to return to a career track job. Almost every time I go for an interview I am quizzed on my ability to do the job when I say I have a child (Which I do to explain my career break) and it’s clear that this is in question. Some friends have advised me to not mention having a child again. What’s your advice?
Anon

Lynda Gratton: We empathise with your situation. How unfortunate that you have to experience this. My view is that it’s best to be honest, and focus on your skills and competencies, and also what you can bring to the job.

To be honest, I’ve asked the same question when I’ve been interviewing people, not because I’m worried about mothers, but rather because I need to understand their childcare arrangements. So take heart! You will find the right employer - one who likes having a diverse workforce.

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You talk of using flexible working to reduce the leaks in the pipeline of female talent, but are there any other steps that companies can take to help ensure that parenthood is not an impediment to success? What do you feel that women who aspire to senior management roles, but are not there yet, can do to encourage their employers to foster female success?
Penny Averill, chief executive, Women in Film & Television, London

Lynda Gratton: We think this is a crucial question. Our study showed a huge gap between the policy of flexible working and the reality. So how can we encourage the take up of flexible working? Here are some thoughts:

• Look at BT - where they ran a number of pilot schemes and in fact found that people able to work flexibility are more engaged, less likely to leave, and more productive. This data provided an enormous impetus to action. Here they focused on productivity rather than hours worked.

• Next, I think about the way that careers are structured - and whether project based work can play a role. Base rewards and promotion on what the person achieved rather than the actual time they spent.

• We think that technology is absolutely crucial to more flexible working arrangements - so getting up to speed with technological developments is key.

• Finally, senior sponsorship is really key. There are a few examples of great senior executives who work four days a week. It is important that they are seen as a role model and show what is means for them. The general view at the Lehman Brothers Centre for Women in Business at London Business School Conference on Thursday was that less than three days a week and you lose visibility.

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Do you think there are marked differences in working approach and style between women who work with other women and women who work predominantly with men?
Anna Winton, Newcastle

Lynda Gratton: Our belief in the Lehman Brothers Centre for Women in Business is that there are as many differences in work style among women - as there are differences between men and women. The differences that some research has shown (for example women are more relationship orientated) is not conclusive.

Of course if a women is working exclusively with men - then she is more liable to stereotyping.

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I run Technical Change, a mentoring scheme for women working in technical roles in film, TV and new media, backed by ESF Equal and UIP. A key issue is the lack of role models above these women on the corporate (or, indeed, freelance) ladder. Out of six mentors on the programme, only one is female. What do you consider to be the pros and cons of mentoring as a means of helping women reach positions of leadership? How much does it matter if the mentor is male or female? If this does matter, what can be done to compensate, given that change has got to start somewhere?
Jemima Gibbons, London

Lynda Gratton: You are right, mentoring is really important for leadership development. The question of male or female mentoring is important. Cross sex mentoring is indeed more difficult, however, it can work if the male mentors are coached on how to manage the interaction.

This coaching could involve gender awareness training and managing mentor mentee relationships. It is also useful for women to be coached in how to find a mentor and how to establish relationships with a mentor.

You will find an excellent example of such a programme in the FTSE 100 Cross Company mentoring programme delivered by the Praesta Partnership. There is a book that documents this programme called ”A woman’s place is in the boardroom”.

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