A recent study, reported by the Bulldog Reporter this week, discusses that to dramatically improve performance, companies need to be sure they have healthy percentages of women on their executive leadership teams and Boards, and that their corporate cultures include traits traditionally thought of as “female.” The article cited a research report from PA Consulting Group. This shows that gender diversity and organizational culture can play a critical role in achieving “performance magic”—which is having both strong financial results and a high performing culture. The research demonstrates that performance is inherently linked to inclusive culture and gender diversity.
PA Consulting Group analyzed the public reports of 50 U.S. and U.K. companies over a six-year period to reveal that the ones with female leaders generated higher total shareholder return (TSR). The report’s key findings:
Firms with women on the board generated up to 600% TSR, while those without women generated less than 100% TSR.
Organizations that had performance magic also had the greatest percentage of women (50%) on their executive leadership team.
What creates a successful, inclusive organizational culture is not merely having women on the senior executive roster, but rather is also allowing and integrating those traits that have been typically thought of as “female”—such as: collaboration, listening skills, focus on development, and valuing different opinions.
See my next blog post for this article’s valuable discussion on high performing cultures.