by Alison Maitland: We are well into the second decade of the 21st century, but the vexing topic of gender in corporate life is commanding more serious attention than ever before…
Only 5 percent Fortune 500 companies are headed by women. However, this statistic is obscuring signs of a subtle shift away from Western male domination. It is showing up in many different ways: the feminization of leadership styles, the importance of female purchasing power, the disruptive impact of the Internet on business models, the shift of economic power from west to east, and change in men’s roles and attitudes towards work and family life.
Meanwhile, economic realities are bringing broader recognition among governments that economic growth depends on women fulfilling their potential in the labor force. The growing adoption of quotas worldwide has led CEOs in every region to view “diversity in our leadership ranks” as a hot-button challenge that they must address.
Another important argument for gender balance at the top is that doing so better reflects society and improves response to market trends and customer needs. Putting more women in decision making roles is an important step to improving businesses’ ability to adapt to a changing marketplace. Having male senior executives talk about this issue persuasively—and, more important, act on it accordingly—is a breakthrough that points the way to shared leadership becoming the norm in successful businesses in the 21st century.
Moreover, the very notion of power residing only at the top is under challenge. Technological and social changes are breaking down traditional hierarchies and distributing power more widely not only within companies, but between them and their networks of external partners. The democratization of work environments runs parallel to a decline in trust in traditional authority figures. Today, people are more likely to trust experts or put their faith in their peers, a situation that poses a challenge for leaders of traditional corporations. Those with their fingers on the pulse know they need to encourage greater diversity of leadership styles. Many are grappling with how to do accomplish that goal, but there is growing recognition that achieving gender balance is part of the solution.
Likewise, soft power—that is, persuading people to do what you want by attracting and co-opting them, rather than by coercing them—is a concept now making headway in the business world. This participatory style—which, of course, is not limited to women—is also linked to more productive teamwork.
