The Impact Of Women In Leadership

3 reasons why it matters

In recent years, there has been an emphasis on the professional development of females and the need to provide them with opportunities for leadership positions. Numerous conferences have popped up around the globe for female executives. Companies large and small have implemented programs specifically designed for the development of their female staff. 

When it comes to the topic of women in leadership, the answers to basic questions are both obvious and enlightening:

Who? The women’s leadership movement impacts all women, both seasoned leaders and those who are just emerging.  
 

When? Starting in the late ‘90s, we began to see a positive trajectory for women gaining positions of authority and then around 2010 the trajectory increased at a more rapid pace according to data from Pew Research. We can expect to see it continue through the present and into the future. 

Where? The increasing number of women in leadership positions continues to evolve throughout the world, but According to Forbes, the highest rates of women in leadership in education, healthcare, and hospitality. 

How? We see it in a variety of ways. Some battles have been fought by women to be in positions of authority. Some companies have chosen to make it a priority and put programs and systems in place to ensure it happens. (Can you give a few examples here?)

That leaves one question that may not be fully understood for some regarding the importance and urgency of women as leaders—Why? Why does it matter if companies or governments focus on women in leadership? 

Some people may think that it is necessary for the image of the company to implement development programs or ensure that a certain percentage of management roles are filled by women. Others may think that it is necessary to focus on this topic because it’s just a way to level the playing field after all the years and for women to have a fair shot at equal opportunities. 

It is a fact that companies need to be concerned about their image. It is true that the playing field was skewed in favor of men for a number of years. However, there are more reasons why women in leadership should matter to everyone, not just the women who want the opportunities, not just the companies that want to improve their image, and not just because of equal rights. 

First, women in leadership matter because it makes an impact economically, both for women and companies. “Womenomics” is a term originated by Japanese Prime Minister Abe Shinzo over two decades ago with the intention of getting more females in the workplace to boost the GDP. Shinzo saw the focus on women as a way to grow the economy of the country, which was on a downward spiral. The intention was good and Japan did achieve some economic success, but the outcome could have been even better if the focus would have been specifically on women in leadership. After analyzing data from the genesis of Womenomics throughout a 20-year period, Goldman Sachs reported that Japan boasts a 71 percent% female participation rate in the workforce, but unfortunately, a large portion of the jobs are part-time and contract work. If these women had instead been in leadership positions, the work would have been more consistent, along with the subsequent income, taxes and company profits. 

In another strong show of economic growth and profits, Pepperdine University conducted a 19-year survey of Fortune 500 companies and the results revealed that the companies with the best record of promoting women outperformed the competition ranging from 41-116%. Other studies have reported similar outcomes. If you are a CEO reading that outcome, you should seriously start reviewing the ratio of female to male leaders throughout your organization. 

Second, diversity in leadership can have a tremendous impact on innovation. A Harvard Business Review article in 2020 reported that diversity is the key to innovation, which ultimately drives the market growth. HBR findings showed that companies with equal female representation in leadership reported a significant increase in innovation, which resulted in 45% market share growth. Not only that, but 70% captured a new market. 

Finally, Forbes reported in 2020 women in leadership benefits the culture of an organization. It is important to have a balance of gender in matters of leadership because otherwise, there may be a perception that the few women in leadership positions are simply tokens and may not have earned the right to sit at the table. I’ve considered this myself as the board chair and only female board member of an organization where the other nine board seats are all filled by male colleagues. I know I earned the role because of my experience and work ethic, but I often wonder if others think that I am the token female. Even with significant gains, the balance of women compared to men in positions of leadership are is from equal.

The bottom line is this: the who, what, when and how regarding women in leadership has been evident, but let’s keep the reasons why women in leadership matter at the forefront. 

Lori McNeill is a Board Chair, Chief Operating Officer, Trusted Advisor of CEOs, Change Management Consultant, Keynote speaker, and above all, she is a Champion for Women. Recently, Ms. McNeill was appointed as Chief Operating Officer of an emerging leader in the PPE industry to combat shortages in the PPE supply chain and solve unmet needs. In her consulting firm, Ms. McNeill has worked with companies ranging in size from Fortune 100 to startups. Her specialty is helping leaders and organizations navigate change so they can fulfill their mission. She works throughout the U.S. and abroad. Ms. McNeill started her corporate career at Pfizer where she held several leadership positions. Her last role there was Senior Director of Global Operations. She was recognized for her efforts to build a new business unit and was presented with the Innovation Award. Ms. McNeill is a frequent keynote speaker and panelist at women's conferences.  Visit Lori McNeill Connect Lori McNeill