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The
clouds of corporate scandals have put
board and executive committees under
greater scrutiny and shown higher risk
for both the organizations and the
individual members. The well publicized
scandals are forcing boards to focus on
corporate responsibility and question
the traditional board selection process
that filled too many boards with friends
from the “old boy network”. This new
awareness may have a silver lining by
creating more opportunities for women.
Corporate executives and boards say they
are aware their companies need strong,
diverse teams in the executive suite and
board room, bringing new professional
skills and reflecting their consumers. A
2004 Catalyst study found that Fortune
500 companies with women in the senior
ranks have a higher shareholder return
than companies with a lower proportion
of women in senior management teams.
David Lord, the head of The Executive
Search Information Exchange (ESIX), a
worldwide network that advances best
practices in executive recruiting noted
that “boards and CEO’s need to be driven
by the belief that they are doing
everything possible to strengthen the
team, and consider whether they have
taken every advantage to become more
diverse.”
However, despite these pressures a 2004
Corporate Women Directors International
report found that “the glass ceiling in
corporate directorships is solidly in
place”. Only 10.4% of all board seats in
the Forune Global 200 companies are held
by women and of those that had women
directors almost half (45.6%) had only
one woman director. While the press
gives tremendous coverage to women
CEO’s, females are currently at that
corporate height in only eight Fortune
500 companies, bringing up the question
of whether the low presence of women in
large corporate board rooms partly
produces the low percentage of women
CEOs.
The problem remains that despite having
strong professional skills and often a
unique set of personal skills, many
qualified women are never offered an
invitation to sit at the executive
table. Do not let the statistics deter
you here are some ways to gain entrée.
Get to the top of the List:
Women, who have executive committee
ambitions, often find entrée is a
conundrum. It is well known that board
and industry appointments enable you to
meet and work alongside power brokers
and decision makers, thereby positioning
you for other board appointments and
leadership roles. For those who are not
in the loop, it feels like a Catch 22…if
you are not there, you can’t get there.
A recent National Association of Female
Executives study found that the limited
number of women with strong operational
experience that included profit and loss
responsibility restricts opportunity.
"Most companies have not dispelled myths
about women's commitment, about their
risk quotient, willingness to relocate,
and ability to manage men or run a
manufacturing operation," says Betty
Spence, President of NAFE, "so women do
not get offered the opportunities that
lead to the corner office.” or the board
table.
Critical Skills. Obtaining actual P&L
experience is an obvious advantage, but
if you haven’t obtained actual
experience, move ahead by focusing and
being able to talk about it. Learn to
read income, balance sheet and cash flow
statements. Lynda Davey, Chief Executive
Officer of the Avalon Group Ltd., a
private investment bank that represents
executives raising growth capital or
those selling private companies,
comments that “to many operational
people finance is viewed as either
mysterious or rocket science. It isn’t
and it can be learned. The women and
men, who are able to move their
companies and themselves forward have
always gained a basic understanding of
finance and money raising issues and
buzz words. That gives other “finance”
people the confidence that they are
serious about money. I’ve found that is
a large part of being taken seriously.”
Critical skill sets are not limited to
P&L experience. Laurie Shahon, President
of the Wilton Capital Group, who serves
on two public corporate boards, states:
“A lot of boards need functional
knowledge, for example finance is very
important now. Depending on the board,
information technology, marketing and
sales are also attractive functions.”
Women can make important contributions
to corporate boards, particularly as
female consumerism becomes more powerful
to profits and positioning. Laurie
points out, “obviously, industries like
retail or cosmetics need women on their
board to represent their market base,
but there are many situations where a
company thinks women are not the main
consumer, but where women have much
influence.”
Maryann Bruce, President of Evergreen
Investments Services, also emphasizes
the importance of developing a
specialty: “Focus on a unique set of
experiences that differentiate you in
your function and industry. For example
competitive knowledge, broad contacts,
presentation skills, training other
professionals, and financial savvy.”
Get Noticed – the Know-Ability.
Appropriate skills alone will not
suffice. Women need to expand their
sense of what it takes beyond just
working hard to be visible, to be
noticed.
Being on highly valued committees is
often a way to display expertise and
gain visibility. For example, early on
in her career, Dr. Jill Claster, the
first female Dean of NYU School of Arts
and Sciences became a member of the
“club” by volunteering to participate in
developing a new and innovative program
for NYU returning adults. Serving on the
committee with some of the most
prominent academics, she “got friendly
with the men and gained their respect”.
She proved her worth and was tapped for
the slate when a new Dean was being
sought.
While many people advise women to become
active in the not for profit arena as a
way to gain experience and exposure this
route has been a disappointment for
some. If your goal in serving on a board
is to become part of the inner circle of
non profit board members, selectivity
and strategy are critical. While she has
served on a number of non-profit boards,
Laurie Shahon recommends that “your
non–profit-board position be with a
highly visible non-profit, or you need
to be to be lucky to be around senior
people who can invite you to a corporate
board.”
Placement and access are key to
maximizing a board appointment. Sheila
Wellington, formerly President of
Catalyst and currently at The Stern
School of Business at NYU teaching a
course on “Women in Business
Leadership,” emphasizes that if a woman
wants to maximize a not for profit board
experience, she needs to make targeted
choices to serve on a major museum or
hospital board so that “happy accidents
can occur because someone has you on the
radar screen”.
Women’s professional associations can
also be vehicles for both visibility and
skill development. Ms. Bruce found great
support through her membership in the
Committee of 200, which is a group of
female entrepreneurial and corporate
executives who are elected to the
organization if they have “C” in title,
or generate $250,000,000 or more in
revenues. “Working side by side with
these visible and powerful women
executives is how I filled the void of
women mentors.” In addition, Ms. Bruce
has worked alongside men in her industry
to shape critical issues and has gained
visibility through her work. “You have
the opportunity to develop expertise
that will make you attractive by seeking
experience outside your company. For
example, I got active in the Bank
Insurance Securities Association, where
I learned strategic planning, annual
conference planning, witnessed and
participated in areas I did not have
exposure to on the job. I was able to
transfer these skills to my work and
achieved significant visibility early in
my career.”
Extra-curricular activities also offer
opportunities women for women to
connect. “Everyone talks about the glass
ceiling,” says Ms. Bruce. “I think they
should be calling it the ‘grass
ceiling,’ because people can deepen and
strengthen relationships on the golf
course. Golf’s handicap system also
offers an opportunity because you can
play with a variety of levels as a
colleague.”
The Fit Factor: Beyond being visible and
having something companies need, is the
illusive “fit” factor. Jo Bennett, a
Partner at Battalia Winston, a premier
executive recruiting firm, looks for a
combination of style and substance in
recruiting and recommending women for
board positions. Women “have to realize
that the like-ability factor is as
important as the technical
qualifications. She advises that both
male and female candidates lighten up,
show a sense of humor, and demonstrate a
big picture, strategic sense and point
of view about the business.”
Laurie Shahon reflects: “When boards let
new people in they want someone who will
get along with the group…many boards
think chemistry is important. But, you
don’t have to be a good old boy to get
along with various people.”
“One reason I have been successful in a
male industry”, Bruce states, is “I can
balance typically male competitive,
outgoing, driven behaviors with what I
would call the female traits, such as
compassion and relationship management.”
Dr. Wellington agrees that women need to
build on their own style, while at the
same time understand that “effectiveness
is the whole deal. It is not about
feeling good, or being right. The focus
is on the mission and what will make a
difference in the organization, balanced
with being in line with the culture.”
Aligned Contributions: Succeeding at the
table is still a mystery for many women
and the companies that wish to recruit
them. As the unforgettable press about
Carly Fiorina demonstrates, it’s not
just about being invited to the table;
aligning with the culture while driving
a key objective is critical. The irony
is that women are often brought on board
because their profile of driving
results, risk taking, and charisma are
often what the company thinks it needs
to succeed. Once on board, many women
end up failing because they do not know
how to calibrate ambition with
accommodation. In practice, a diversity
initiative is often recruiting someone
different, but wanting them to be the
same.
So, beyond fit, a realistic attitude
counts. For women that means that not
only do you have to be there, you have
to belong. As Bruce notes, “The most
important thing is to recognize that it
is a man’s world. Women have to
recognize they are like trail blazers in
some respects. This implies that they
have to be willing to adapt, be
flexible, willing to change, be willing
to learn from mistakes and not take it
too personally.”
Jo Bennett agrees, “Women have the
biggest trouble with lightening up.
Instead, a lot of women are taking
issues and dialogue more seriously than
their CEO’s. Women can’t present them
selves as someone who will be a devil’s
advocate at the table. Boards don’t want
a disruptive presence at the table. They
want alignment with the strategy and a
collaborative team. CEO’s will say they
want good counsel, a sounding board, and
a wise advisor. In reality they don’t
want to be threatened by a disruptive
force. Women can take things seriously
but still show a sense of humor—the best
ones do!”
And as Dr. Wellington emphasizes,
women’s ability to collaborate, create
agreement, reflect the marketplace and
provide a balanced perspective is
increasingly being seen as critical to
board effectiveness. So, the time is
right, and we can expect to see more
women players at the board table!
© Sheryl Spanier & Company 2006
Sheryl Spanier, MS/CMF heads up Sheryl
Spanier & Company, which provides
individual and organizational consulting
services for leadership strategy, team
engagement, executive coaching and
career management. She can be reached at
sheryl@sherylspanier.com or at
www.sherylspanier.com
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