Women in the Boardroom

She takes a seat in the board room.??Not in the corner and not at the end, but right in the middle of the table.?She has come with well thought out plans and ideas and is ready to speak up in a strong voice – the voice she learned as a cheerleader in high school. She looks around the table and sees a room full of incredible intelligent executive leaders, hardly cognizant that there is no other woman sitting at the table.??She is ready to chime in – whether about corporate strategy, quarterly earnings or the latest football games.??

As women we have our own unique challenges when it comes to obtaining our seat in the boardroom, and we have to learn to overcome them.??While women are finding their way into executive management roles, there needs to be an increase of women on governing boards.??Women who have attained corporate board positions have and continue to perform as well as (if not better than) their male counterparts. However, for a woman to become a member of a corporate board, she must engage in strategic planning and fearless execution. Now, more than ever, the time is ripe for women to be able to climb the corporate ranks.?

Overall, women in the United States have made considerable strides in the past 50 years with respect to professional advancement.??With three female justices sitting on the Supreme Court and female candidates for President, women are establishing their presence in what were once exclusively male arenas.??In 1998, only one woman led a Fortune 500 company; today, there are more than three dozen female CEOs of Fortune 500 companies. Nevertheless, the reality is that progress in the United States has stalled.??The percentage of women on all U.S. corporate boards has increased to about 25%, but the continuous rise above that is slowing down.?

Industry Shift

Dozens of industries have been historically male dominated industry, however recent shifts in various market segments suggest a potential change.??For example, companies in the mortgage industry have traditionally recruited top executives from their sales divisions – a male dominated field.??Higher percentages of women are found in other areas such as compliance, quality control and operations - perhaps because they are more detail-oriented.??In the wake of the 2008 financial crisis, the mortgage industry shifted its focus away from production quantity and loan volume and towards production quality. Due to new stringent regulations, failing to remain compliant could prove fatal to a company. Thus, leaders with a compliance background, including women, is instrumental to the success of an organization in the current climate.?

Now may be just the right time for businesswomen to rise in historically male dominated industries. As companies begin to realize the cost of non-compliance, those who are experienced and knowledgeable in this area will only become more valuable. Women can capitalize on their strengths in operations, quality control and detail-oriented functions to show their worth and their potential.?

Increasing Diversity

Women may also be presented with opportunities to be active members of the boardroom given the industry’s current focus on increasing workforce diversity.??As the America continues to become more diverse, industries must respond to better address the changing demographics of the U.S. population. The health of the many companies depends upon their leaders’ ability to understand and appeal to the interest of diverse groups. Hence, companies are creating a more diverse workforce to better reflect these changing demographics. It is not uncommon to see companies strengthening their diversity, equity and inclusion efforts to help both with customer endeavors and an increase in their own workforce. A diverse leadership ultimately leads to obtaining a competitive advantage as these companies benefits from embracing different perspectives and cultures.???Having a diverse workforce, leadership and governing board, fosters innovative thinking and allows companies to make decisions that are more aligned with a wider variety of consumer preferences.

????????????The critical factor in a shifting climate is that the diversity in perspectives benefits the company. Thus, women must embrace their different viewpoints and voice them to make an impact on the company.??The inclusion of women in board positions fosters a culture that allows for a diversity of preferences and views, and ultimately allow for growth in the company.?

Making the change

????????????The concept of women in boardrooms is increasing in popularity around the globe.??Several countries have made it mandatory that there is female board representation, including such examples as follows:

·???????In the EU, member states must ensure than by mid-2026 women hold at least 40% of non-executive positions on their boards, and 33% of executive and non-executive board positions.?

·???????India requires one woman to sit on a board for public companies;

·???????Germany requires major companies to have women fill 30% of their seats; and

·???????Other countries, like Brazil and Norway, have legislated for requirements to have women directors.?

Many studies have identified the positive correlation between the percentage of female board members and corporate performance are also shifting to allow for a more positive opinion about female leadership. A McKinsey study found that top quartile companies with 19-44% female board representation had a 26% higher return on invested capital (ROIC) than bottom quartile companies with zero female board members. Another study found that being compassionate is considered an essential leadership quality and that 65% of adults believe that women are more compassionate than men.

????????????Perhaps these results can be attributed to the different perspectives that women bring to the table, which helps to prevent too much “group think” among a male dominated board.??Furthermore, female board members can create a more well-rounded board because men and women often have different skills and behavioral styles. A successful woman board member cannot be afraid to sit in the middle of the board table, speak with authority and challenge company norms.?

Obstacles

????????????A powerful force that has held women back is status.??Men have traditionally held the power in the workplace and people naturally want to work for the person with the most power, influence and clout.??Sociologist and workplace consultant BJ Gallagher explained that this is due to the notion that power “trickles down so that if you work for a powerful boss, you are a little bit more powerful.??Your whole department is seen in a more positive light if the boss is a powerful and influential person.”??Another significant issue that has contributed to the gender imbalance is the lack of women in middle and upper management positions, which is where companies look for purposes of recruiting executive leaders and board members. If companies only award board seats to senior executives from the respective industry, women will be unable to increase their board representation due to the lack of female candidates in middle and upper management levels.???

Since men have historically held the power in the corporate world, women seeking seats of authority often have to do more to prove themselves and to not only overcome this cultural bias, but also to attract top talent to work for them.??The historical status of men relative to women has left behind a presumption that men are more powerful than women, and women that want to challenge that presumption have the heavy burden of proof. That said, businesswomen must lead by example. Rather than endeavoring to pursue power, women must work hard, develop their expertise and, importantly, believe that they already have power and be prepared to exercise it.??Women must exude confidence and not doubt or second-guess themselves in their leadership skills.

Once a woman has achieved the knowledge, experience and skills, she should feel confident that she has power. This confidence will naturally draw others to her side. If women leaders can foster the career growth of less experienced women, and nurture their talent, there will be even more women in the pipeline for future leadership positions. Women must seek out managerial positions early on in their careers and encourage their female colleagues and direct reports to do the same. This is crucial in male dominated industries, such as the mortgage industry, because as more women start to occupy high profile positions, it will encourage more women to enter the industry.??

????????????As women make their way on to boards, it will have a positive ripple effect.??Often the board appoints the company’s top executive positions.??Therefore, female board members may more naturally advocate for qualified executive female candidates, and thereby cultivate diversity among the executive leaders and the governing board.??It also becomes more natural for women in senior roles to act as mentors in guiding young women as they expand their professional skills and networks early on in their careers.??Additionally, increasing the number of women in top corporate positions sends the message to other women that a move up the corporate ladder is obtainable.??A diversified board creates a level playing field for men and women looking to move up in the company which is beneficial for companies because it increases the pool of candidates for critical positions and allows them to select the candidate most qualified for the job.?????

Conclusion

????????????She takes a seat in the middle of the boardroom, looks across the table and comments on last night’s game while admiring the beautiful manicure of the woman sitting across from her. The timing, the climate and the research all show that now is the time for women to take a seat in the boardroom. The nation is experiencing immense change that fosters growth for female professionals. Through hard work, exerting confidence and strategic moves, women can endeavor to make their voice heard and change the corporate structure in the U.S. and around the world.??