It seems that the global financial crisis is prompting a wide-ranging re-think on the role of women in leadership. The Shriver Report indicated that, in total, the US working populations are balancing out – with women now comprising 50% of the total for the first time ever. Yet, as Vivek Wadhwa points out, “There are too few women running high-tech companies; that’s too bad, considering evidence shows female-led businesses outperform those run by men.”
But rather than waiting for the structural impact of women’s workforce participation to take effect at senior levels, women are, instead, taking matters into their own hands. Support networks and groups are being formed such as Women 2.0, Young Women Social Entrepreneurs and the Blogher network – complete with mentoring opportunities, professional networking events and conferences – and all this effort is now beginning to bear fruit.
Research by Cindy Padnos, managing director of Illuminate Ventures, indicates that the performance of women in the enterprise – especially in startup businesses – has significant benefits. Not only are the high-tech companies that women build more capital-efficient than the norm (with higher revenues and less committed capital), there are fewer failures:
As the global economy regenerates, new business models are needed to stimulate economic and job growth. Investors seeking to reinvigorate bottom-line performance and to favorably impact the entrepreneurial strength of our economy would be wise to support strategies that enable high-tech start-ups that are inclusive of women entrepreneurs.
But what it the opportunity for leaders? First, we need to acknowledge that we are not facing a recession – but a reset (as John Hope Bryant suggests). Next we need to look to those women in our management ranks who are already leaders in their fields. We need to support them and mentor them in the way that the grass roots social networks are doing. And we need to actively plan for their success and succession.
Nina Nets It Out: The statistics are starting to tell the tale – but despite clear economic and professional benefit, there is still a dearth of senior roles available for women. Smart business leaders will proactively support the transition of women leaders into more senior roles – and those that do will reap the rewards.
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Watching the way that NBC has been handling the Conan vs Leno debacle has me thinking … why do experienced leaders continue to make poor decisions when it comes to succession? Many organizations now have systems in place that help identify emerging leaders – the rock stars of our businesses – and opportunities and challenges are funnelled in their direction. With this comes responsibility, accountability – and hopefully mentoring and support. But all this is a two way street. If we expect accountability from our rising stars, we must also expect it of ourselves.
When we are thinking through succession plans – we need to consider not just who’s coming in, but what’s going out. That’s right – when a leader leaves, it marks the end of an era. She will take with her, her whole way of doing business – and the impact of this will be felt right through your business. Perhaps NBC weren’t ready to deal with this type of wholesale change – communicating the way in which this transition would be handled should have been clearer, unambiguous and ongoing. Communications around succession needs to be handled over several months, and in some cases, one to two years. After all, we all crave security.
Part of this stability comes from “doing what you say”. In NBC’s case, making an offer and then rescinding it has created confusion and uncertainty. Not only will this impact the financial performance of both shows (think of the advertisers and sponsors – or in your business, your various stakeholders), it also sends a morale breaking message to all your other up-and-coming leaders/stars. And when this happens, the talent that you have been nurturing for years looks not at your promises (which now seem empty) but at the rival offers which seem so unambiguous and full of opportunity.
Finally, remember that we are living much more public lives than ever before. You don’t need to be Conan O’Brien to publish your personal thoughts on your career. You don’t need to be NBC to create a news network. Facebook, blogs and even Twitter operate like 24 hour broadcast channels. So whenever you think “succession planning” also think “crisis management”. You may not need to activate your crisis plan – but you’ll be glad you have one if you need it.
Nina Nets It Out: The Conan vs Leno debacle has yielded some valuable lessons for leaders. As always, communication and clarity are imperative.
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