Catalyst Blog

By Ilene H. Lang, Deborah Gillis and Deepali Bagati

Earlier this month, we met with CEOs of Indian companies to discuss the importance of expanding opportunities for women and business in India Inc. Women currently make up 36 percent of the Indian labor force, yet 67 percent of Indian employers are struggling to fill jobs. One solution to this talent crunch: educated and ambitious Indian women.

CEOs across Mumbai, Delhi, and Bangalore shared with us inspiring, and effective, ways in which they’re shifting their organizations’ cultures to ensure that all talent is valued. One CEO talked about “leading by example.” He has taken action and asked each member of his leadership team to mentor three women, while he personally mentors five!

Another CEO talked about consciously changing the way he viewed women—namely, by thinking of them as natural leaders. Once he started from the assumption that women were born to lead, it helped him to confront and shatter biases and stereotypes about women that he grew up with.

Finally, a CEO talked about changing the default question at his company, so that when women are considering a new role with bigger responsibility, they are not asked, “why would you want to do this job,” but instead, “why wouldn’t you want to do this job?”

Actions like these are clearing a path for the success of talented, and ambitious, Indian women. Gender gaps exist in India, but we’ve discovered on this trip that many companies understand how women can fuel India Inc. And they are acting on it—an inspiring model for senior leaders in India, and around the world.

Congratulations to Commonwealth Bank of Australia and Sodexo—the 2012 Catalyst Award winners! These companies’ Award-winning initiatives share a strategic, laser-sharp business focus and lead with strong results.

This year’s winning initiatives reflect the evolution of advancing women from a “nice-to-do,” to a core business practice. Commonwealth Bank and Sodexo have incorporated a culture that values diversity into their brands, which differentiates their businesses from competitors, increases profitability, and better reflects the customers they serve. Their initiatives focus on transforming leadership, workplaces, and lives.

This year, in recognition of Catalyst’s 50th anniversary, the annual Catalyst Awards Conference will be held over two days at The Waldorf=Astoria in New York City. The first day, March 28, 2012, will highlight Catalyst milestones spanning five decades, and on March 29 we’ll honor the Award-winning initiatives, culminating with the Awards Dinner that night. You can find the program and register today by clicking this link. Hope to see you there!

Be assertive, focus on objectives, and stay online as much as possible. These are three helpful tips for virtual workers drawn from a recent study on remote work. Researchers found that most women would prefer to work remotely at least three days per week. Our philosophy at Catalyst is simple: if you can get the work done, it doesn’t matter where you do it. It’s heartening to see so many women recognizing the same thing—now it’s up to more companies to take heed as well.

Read more about the remote work survey, and other news, in today’s C This.

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Fibbing to the Top?

Men’s capacity to exaggerate previous performance may play an important role in creating gender gaps. When asked in a recent study how they scored on a test taken one year prior, men rated their performance about 30% higher than it actually was, while women ranked their performance about 15% higher. Managers should take note that men tend to exaggerate. According to researcher Ernesto Reuben, the findings call for “more sophistication on the part of hiring committees and recruiters to understand there are gender differences in how people evaluate themselves.”

READ: “Is Cockiness a Man’s C-Suite Edge?” CFO World, 12/18/12

Pradhan Power

The power of roles models is profound. An MIT study in India found that towns with without female village leaders, or pradhan, experience deep gender gaps, while villages with female pradhan have virtually no gaps. For example, boys are 6 percent more likely to attend school and 4 percent more likely to be literate in villages with male-only pradhan. But in places that have had a female pradhan for at least two terms in office, that gap disappears.

READ: “Leading by Example,” MIT News, 1/13/11

Fueling Growth

With a projected annual GDP growth of 7 percent, Indian companies need all the talent they can get. Yet women make up only 36 percent of the Indian labor force. In this interview, I explain why women are vital to the country’s sustained economic growth, and how corporations can work towards advancing more women into leadership.

READ: “India Has Pressing Need for More Women at the Workplace,” Economic Times, 1/17/11

Working @ Home

A recent survey by Microsoft Office 365 and 85 Broads found that women would prefer to work remotely an average of 3.1 days per week. In this so-called “blended” remote setup, employees work from home a few days a week, then step into the office the other days. Respondents said that this arrangement leads to better work/life balance. From my experience at Catalyst—an organization where many work on fully virtual or “blended” schedules—I couldn’t agree more.

READ: “Women Finding Balance in Remote Work Arrangements,” Forbes, 1/17/11

Looking Towards the Future

Economic gains and political power are two sides of the same coin of women’s advancement.  Fortunately, 2012 promises to be a year for making strides on both fronts, as record numbers of women run for United States Senate seats and the number of companies launching programs to advance women hit a critical mass.

READ: “High Hopes 2012 Will Be a Good Year for Women,” The New York Times, 1/10/11

January is National Mentoring Month in the United States, an initiative geared for individuals, schools, and businesses to foster relationships between mentors and mentees and increase the number of mentors nationwide. When young people are mentored, they are less likely to drop out of school, use illegal drugs, or abuse alcohol. And in the workplace, mentoring is vital for employee development and advancement so that employees gain skills, feedback, and knowledge about important unwritten workplace rules that are often left for employees to decipher on their own.

In today’s Take 5, we look at the impact of workplace mentorship and its high-powered variant, sponsorship:

- Mentorship benefits pay. Catalyst found that pipeline women who had active mentors in 2008 had achieved 27 percent higher salary growth than pipeline women without mentors.

- Formal mentorship programs are common worldwide. 59 percent of the companies surveyed in the 2010 World Economic Forum report on corporate practices said they offer internally led mentoring and networking programs and 28 percent said they had women-specific programs.

- While formal programs are important, most women and men find their mentors independently. Mentoring: Necessary But Insufficient for Advancement reported that 67 percent of high potential women and men found their mentors on their own.

- Men and women are mentored at equal rates, but men’s mentors are more senior. 62 percent of men had a mentor at the CEO or senior executive level, versus only 52 percent of women with mentors at senior levels. We found that men’s mentors are more senior even after controlling for the level of the mentee.

- High-level mentors are well positioned to act as sponsors—leaders who advocate for their protégés and ensure they’re visible when opportunities arise. Sponsorship can make all the difference: women who had mentors at the top got promoted at the same rate as men who had high-level mentors.

Want to find out more? Check out previous Catalyzing coverage of mentorship and sponsorship, and visit the official website for National Mentoring Month, where you can find out 10 things to do this month to foster mentorship—right now.

Do women lack ambition? Not on your life.

Women want to succeed, yet even when they do “all the right things” Catalyst has found that they earn less and progress more slowly than men. The fact that some women adjust their career advancement strategies after crashing into institutional barriers is a rational response to inhospitable workplaces. It is not an example of a lack of ambition.

Catalyst has been studying women’s ambition for nearly a decade. Our 2004 report, Women and Men in U.S. Corporate Leadership, surveyed nearly 1000 senior-level employees who shared similar backgrounds and characteristics. We found that women aspired to be CEO in equal proportions as men. But the women—to a much greater extent than men—ran up against barriers, namely exclusion from informal networks, stereotyping, and a lack of role models. Likewise, our report, Leaders in a Global Economy, found that women and men have similar work values. The problem is this: men find workplaces more aligned with their values, women don’t.

What’s changed since 2004? Not much—women remain ambitious, but barriers still block their paths. And with few exceptions, women’s leadership is stalled in corporate America.

The Myth of the Ideal Worker, the latest report in our series on high potential employees, examined the career advancement strategies of thousands of MBA graduates from top schools around the world and the impact of these strategies on their careers. Women and men were equally represented in the two most proactive groups, indicating that ambition ran high among both genders. But being proactive paid off more in promotions and pay for the men.

In Pipeline’s Broken Promise, we found that among MBA grads who aspired to be CEO or senior executives, women progressed more slowly than men. And parenthood, industry, and previous experience didn’t explain the gender gap. The leadership and pay gaps balloon over time, suggesting that the problem lies with the system, not the women.

So what is the problem? Cascading Gender Biases, Compounding Effects revealed how gender biases are unintentionally embedded in talent management systems—biases that exclude those who don’t fit the male leadership model. Addressing these biases and rooting them out at the source are better ways to tackle inequality than blaming the women. Smart organizations are proactively addressing the barriers women face and are reaping the rewards.

Our research has pointed to one more powerful solution: sponsorship. Sponsors advocate for you from behind closed doors and ensure you’re visible when opportunities arise. The problem is that many women are over-mentored and under-sponsored. Some companies are recognizing this and are instituting formal sponsorship programs for women. At the same time, individuals are taking the lead on this front without waiting for a formal program to kick in by actively seeking sponsorship and being a sponsor to others, especially talented women who deserve it. This is one proven way to help narrow gender gaps.

The misguided assumption that women are less ambitious than men puts companies at risk of inadvertently underutilizing talented women and overlooking, or outright dismissing them, for key roles. This is a real loss for companies. Organizations need to step up and clear a path for women’s success.

Women are ambitious. But systemic barriers in the workplace mean that ambition, even when coupled with talent, isn’t always enough.

“You have in you the power to change this world for the better,” said CCH Champion Michael Bach, Director of Diversity, Equity and Inclusion, KPMG. “Be it a small change, or a large one, I challenge you to do something to effect that change.”

I couldn’t have said it better myself.

You don’t have to work at Catalyst to be a catalyst for change. As we turn the page on 2011, I call on you—a Catalyst supporter—to make an impact in 2012. Catalyzing offers one clear path:

Seek sponsorship and sponsor others, especially talented women. Do something about sexist media. Support political candidates who support you. And if you don’t think you have meaningful institutional support or clout to make an impact, think again. Here are tips on how to rock the boat without falling out and make change in an unsupportive environment.

Catalyst has strived to make workplaces more equal for the past 50 years. And along the way, we’ve learned that champions come in many forms. What unites them? A champion is committed to change—and acts on that commitment.

Happy New Year—may 2012 be a year of real action, for the benefit of all.

Change has flatlined—women are no further toward achieving top ranks in business than they were last year, or even six years ago. Yet equality can’t wait.

Our latest census of women atop the Fortune 500 shows continued stagnation. Men hold a staggering 83.9% of corporate board seats, 85.1% of Executive Officer positions, and 92.5% of top earner positions. While I applaud the hundreds of companies that have achieved real results, others haven’t gotten the message that valuing talented women is not a “nice-to-do,” but a “smart-to-do.” We found that 56 companies in the Fortune 500 had zero women directors and that 136 Fortune 500 companies had zero women executive officers.

These new numbers are deeply disappointing. Some companies are still sitting on their hands. It’s time to commit to action, and the best time to jumpstart this change is now.

Here’s why.

Today’s tough economic times present an opportunity. Our latest report in our Bottom Line series tracked profits at leading companies through 2008—one year into the global recession. We found that companies with three or more women board directors in four of five years outperformed companies with zero women on their boards by on average 84% return on sales, 60% return on invested capital and 46% return on equity. Given the clear correlation, it’s no wonder that Goldman Sachs recently found that closing gender gaps would yield a 9% bump to U.S. GDP!

And it’s not just about the money. Companies with more women board directors are linked to more women corporate officers five years later, and correlated with increased corporate philanthropy. In short, it pays to have women as a key part of the leadership team.

So let’s get to work and root out sexist stereotypes that impact talent management systems. Set targets with accountability, especially around proven solutions like sponsorship. And dump the myths about women’s capabilities and ambitions—our research shows that they are wrong.

When US corporations finally take their place as leaders on gender parity and advancing women in business, the benefits will spread across the globe for women, men, families, employers, communities, and societies. Defy assumptions and lead with real action.

Enough lip service. It’s what companies do that really counts.

Women drive economies. The flood of women into American workplaces over the past four decades has boosted U.S. GDP by at least 25%, and eliminating the remaining gender gaps could bump up our GDP another 9%. But where are the women?

Find out Wednesday, December 14, 2011, when Catalyst unveils our latest count of women in Fortune 500 boardrooms and C-suites. At 12pm EST, we will be holding our first official Tweet Chat to discuss the latest stats. For more information on the chat—and for the latest news on women, work and equality—check out today’s C This.

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Tweet With Catalyst

I’m thrilled to invite Catalyzing readers to join our Tweet Chat on December 14 at 12pm EST to discuss the release of the 2011 Catalyst Census: Fortune 500. Rachel Soares, Senior Associate, Research, will lead a conversation regarding the latest census of women directors and executive officers at Fortune 500 companies. Follow along via Twitter.com or use Tweetchat.com for a more streamlined view of the discussion. Please use the hashtag #ChatCat for every tweet you send during the event. Happy tweeting!

Roaring Engines

Closing gender gaps in employment can drive the world economy to new heights. New research from Goldman Sachs shows that eliminating gaps can boost the euro zone’s GDP by 13% and Japan’s by a staggering 16%. So what are we waiting for—let’s get to work!

READ: “Closing the Gap,” The Economist, 11/26/11

Best of the Best

This inspiring list of the Canada’s top women leaders in public, private and nonprofit sectors is filled with both new and familiar names. Among those who made the list are established executives like Elyse Allan, CEO of GE Canada, entrepreneurs like Margot Micallef, founder and president of Oliver Capital Partners Inc, and trailblazers including Jennie Carignan, a Colonel in the Canadian Forces.

READ: “Canada’s Most Powerful Women: Top 100,” Financial Post, 1/6/11

Stepping Up at Home?

A Census Bureau report on childcare found that 32% of fathers with working wives watched their children on a regular basis—an increase from 26% in 2002. Don’t fire the babysitter just yet, though. The same report found that families with a working mom and kids younger than 15 years old paid an average of $138 per week for childcare in 2010—up from $81 in 1985 (adjusted for inflation).

READ: “Recession and Its Aftermath Create More Mr. Moms,” The Wall Street Journal, 12/6/11

Meritocracy Mirage

An award-winning study involving 445 business managers found that personal biases can easily infect performance reward systems, even those explicitly defined as meritocracies. Tasked with dividing up a $1000 bonus among several equally skilled employees in a fictitious company, the managers gave, on average, $46 more to men. Researchers believe that when managers are told a meritocracy exists, they are less concerned about their actions being viewed as sexist. In turn, their biases surface and they reward men with more money.

READ: “Why Pay Bias Flourishes in Meritocracies,” Harvard Business Review, 12/1/11

It’s Time

Produced by Australia’s GetUp.org, this video brought many Catalyst staffers to tears. Hit play below, and be prepared to see some wonderful scenes of Sydney and a powerful message on marriage equality.

WATCH: “Possibly the Most Beautiful Ad for Marriage Equality We’ve Seen,” The Advocate, 11/25/11

Mandatory diversity?

A recent survey found that 41% of female directors surveyed in 26 countries support the idea of government quotas on the number of women on boards of directors. Only 13% of men supported the idea. Catalyst has found that quotas are one proven strategy on the road to parity—what do you think about government mandates on diversity?

READ: “Cause and Effect,” Financial Post, 12/6/11

What does the word “sponsorship” mean to you? For Catalyst’s Sarah Dinolfo, Director, Research, at first it meant very little. But this changed as she uncovered the power influential sponsors had on her own career. In this post—the third in series by co- authors of Sponsoring Women to Success—Sarah draws on personal experience to suggest ways to attract a sponsor, and how to pay it forward.

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If you had mentioned the concept of sponsorship to me very early in my career, I would have looked at you with a blank stare.  I simply had no idea what sponsorship was in my first five years of work.  Yet later on, I realized that I had experienced it directly, and, as luck would have it, I recently conducted a study on the very topic! Catalyst’s report, Sponsoring Women to Success, cemented my views about the power of sponsorship. Here’s what I learned:

Though I was not always aware of it at the time, I’ve had several influential sponsors who have actively worked on my behalf to advance my career – from those maneuvering behind the scenes to help me land my first job placement, to others opening doors to the numerous opportunities and leadership roles I’ve had since.

I can also see now that there are several things I did to contribute to my sponsors’ willingness to go to bat for me.  These include:

- Showing initiative and delivering consistently solid performances, and demonstrating a willingness to learn and be challenged.

- Taking constructive feedback and adapting my approach accordingly.

- Being open to every experience that came my way, and taking on assignments or roles that brought me out of my comfort zone and allowed me to develop new skills.

- Demonstrating commitment in the face of challenges.

- Treating all of my colleagues with respect and courtesy.

These behaviors may seem simple, but to be honest, if you don’t demonstrate outstanding performance, collegiality, and the ability and willingness to act on advice, sponsors may pass you over for someone who better fits the bill.

I could not have made it to where I am now without my sponsors, and my willingness to walk through the doors they helped open for me.  So what should I, and others who have benefited from sponsorship, do next? Pay it forward and sponsor someone! Here’s how:

Look broadly and look deeply. Look for high performers who might get passed over by others.  Look down within the organization for those talented folks who could really benefit from your sponsorship and accelerate their careers with opportunities.  And look often—keep checking to see if there are people you can sponsor, because sponsorship is not a “once and done”!

Sponsor someone different from you.  Seek out those talented individuals who are not well represented at the top, and sponsor them to help achieve more of a balance.

And finally, encourage others to sponsor!  Whether it’s those who report to you, those you report to, or those you’ve sponsored, make sure they pay it forward to create a culture of sponsorship.

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Sarah Dinolfo directs research that examines and addresses barriers to women’s advancement, allowing organizations to more fully leverage employee talent. Drawing on her research and consulting experience with Fortune 500 companies in several industries, Sarah works with organizations to build diversity awareness and create more effective systems that can level the workplace playing field. She received her M.A. in Industrial-Organizational Psychology from Southern Illinois University at Edwardsville and graduated cum laude with a B.A. in Psychology from the State University of New York, Geneseo.

Following the lead of Deborah Gillis in Canada, I asked colleagues in the United States what they are thankful for this year. Below are a few responses I thought worth sharing:

Sarah Dinolfo: I’m thankful for all the choices women have in the workplace today – there’s never been a better time to be a working woman!

Heather Foust-Cummings: I am thankful for organizations that “get it”—those who recognize that women, as outsiders, have different experiences than men, and that one size doesn’t fit all when it comes to development and advancement. They embrace varying leadership styles, in the spirit of “multiple paths to the goal.”

Michael Chamberlain: I am thankful for my friends and family, who believe in me and what I am doing. Progress for women is progress for all. I’m thankful that others will come to know this.

Cheryl Yanek: This was a depressing one. I kept thinking, “Oh, we have less sexual harassment, we don’t have to wear makeup, we don’t have to wear short skirts, etc.,” but there are a lot of women who still face those things. So here’s what I’m thankful for: even though we have a long way to go until true equality, we’ve come so far.

Susan Nierenberg: I’m thankful that I work with superb colleagues on a vital cause. And that I was born into this era, in this country, where we can be comfortable with who we are, what we believe, what we want to do and (yes!) in what we wear!

This Thanksgiving, I am thankful that Congress stood up to the so-called “war against women”, and I’m thankful for my good health and ability to work in a mission-driven organization aligned with my passions and principles. I’m thankful for the hard work, creativity, and commitment that my colleagues show every day in all that they do to make the world a better place for women and their families, as well as for one another. I’m truly thankful for the companies and organizations that act to make workplaces more equal—they talk the talk and walk the walk.

And finally, I’m thankful to you—our Catalyzing readers! Since launching the blog in 2010, we’ve had more than 71,000 visits and have been listed among Forbes’ Top 100 Websites for Women two years in a row. I’m so grateful for this high level of engagement and recognition. Together, we are changing workplaces and lives.