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Views from the CEDA
                    Women in Leadership
                    series in Victoria
                    SEPTEMBER 2011




Women in Leadership:
Looking below the surface
women in leadership series and report leads
Liz Ritchie, Associate Director, VIC/TAS, CEDA
Dr Hannah Piterman, Director, HPCG and Cofounder of Gender Worx

about this publication
Women in Leadership: Looking Below the Surface
© CEDA 2011
ISBN: 0 85801 276 6

The views expressed in this document are those of the authors, and should not be
attributed to CEDA. CEDA’s objective in publishing this collection is to encourage
constructive debate and discussion on matters of national economic importance.
Persons who rely upon the material published do so at their own risk.

Designed by Robyn Zwar Graphic Design
Photography by Yusake Sato Photography

about Ceda
For nearly 50 years, CEDA has informed, influenced and raised the standard of
discussion about the issues shaping Australia’s economic and social development.

We do this by:
• publishing independent research and policy analysis
• providing a forum for debate and discussion
• offering a membership network to people and organisations that value
  knowledge, insights and ideas in Australia’s best interests.

CEDA is an independent not-for-profit organisation. Our funding comes from
membership fees, events, research grants and sponsorship.

Ceda – the Committee for economic development of australia
Level 13, 440 Collins Street
Melbourne 3000 Australia
Telephone: +61 3 9662 3544
Fax: +61 3 9663 7271
Email: info@ceda.com.au
Web: ceda.com.au




document sponsors
CEDA is proud to partner with the following sponsors for this series:




disclaimer
CEDA has endeavoured to appropriately acknowledge all copyright material
contained in this paper. However, there may be instances where CEDA has
provided insufficient acknowledgement or the source was unknown. If notified,
CEDA will ensure full acknowledgement of the use of copyright material.

Further information and comments
Contact: Liz Ritchie, Associate Director VIC/TAS, CEDA
Telephone: 03 9652 8405
Email: liz.ritchie@ceda.com.au




                                                                                     w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   2
Contents


Foreword                                                4


Introduction                                            5

Overview                                                6

Recommendations and insights                            8

Setting the scene: Understanding the unconscious        9


Insights from the CEDA podium                         10

1. Understanding the gender wage gap                  11
   Alan Duncan, NATSEM

2. Labour force participation                         14
   Judith Sloan, Fair Pay Commission

3. The power of the irrational                        17
   Hannah Piterman, HPCG and Gender Worx

4. Understanding barriers                             20
   Rachel Slade, Westpac


Insights from the CEDA Women in Leadership            22
roundtables


Insights from industry and government:                26
Three Case Studies

1. GlaxoSmithKline                                    27

2. PriceWaterhouseCoopers                             28

3. South Australian Government                        30




                                                   w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   3
Foreword

CEDA is Australia’s leading independent thought leadership organisation provid-
ing policy perspectives on the critical economic and social issues facing Australia.
Women in leadership is an issue with implications for policy that influences everything
from Board membership to gender equality.

The following document provides an overview of the key issues raised during CEDA’s
Victorian Women in Leadership series during 2010/2011.

Reports such as this and other subsequent publications that will emerge from
CEDA’s ongoing Women in Leadership series across Australia aim to drive the debate
around gender equity, and in turn substantiate the business case for improvements
for women in leadership roles. The need for action is indisputable and is also vital if
Australia is to meet future skills and labour demand.

While this document draws together facts and figures which provide an irrefutable
business case for resolving gender equity issues, it also aims to highlight some of the
underlying unconscious biases that exist that are often unspoken and are hindering
change.

By enabling our members to deconstruct this important but challenging issue, CEDA
hopes to assist them to map a way forward so they can realise the economic benefits
to their businesses, the economy and to society more broadly.

This successful Victorian Women in Leadership series has been run in conjunc-
tion with Dr Hannah Piterman and the series sponsors ExxonMobil Australia and
GlaxoSmithKline. CEDA commends them for this work and thanks all of the con-
tributors, presenters and attendees who have participated in this process.

Hopefully this report will bring about a deeper understanding of the issue, new
insights and possible solutions. However, CEDA recognises that for real change to
occur, sustained focus is required and we look forward to continuing our Women in
Leadership series, both here in Victoria and nationally.




Professor the Hon. Stephen Martin
Chief Executive, CEDA




                                                                    w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   4
Insights from Industry and Government
  Introduction




                   w o m e n i n l e a d e r s h i p l o o K i n G B e l o w T h e s U r Fa C e   5
Overview

Australia is well placed as a leader on the world stage, but in these precipitous times
it cannot afford to be complacent. Government and business together must continue
to pursue reforms in areas of productivity, competition, regulation and human capital
to secure the nation’s talent. Australia’s future and the integrity of these reforms
will be thwarted if the market for female talent, particularly executive talent, remains
underutilised.

Women continue to be underutilised in our organisations, particularly at senior levels.
The following questions need to be asked: Why is this so? Is it simply women choos-
ing to raise their families instead of climbing the corporate ladder? Is it that women
are not given the appropriate opportunities that men who are equally trained or
skilled obtain? Or is it something all together less tangible, something unconscious
in our minds, lying dormant – a social construction of the female role. It is crucial to
keep asking these questions and for CEDA to play an active role in continuing the
conversation.

We know that Australia is falling behind when it comes to female leadership.
Compared with New Zealand, Canada, UK, US and South America, Australia is at
the back of the pack with women holding only:

• 12.5 per cent of directors in the ASX 200

• 2.5 per cent of chairs

• 3 per cent of CEOs

• 8 per cent of key executive managers positions, and

• 72 ASX 200 companies do not have women on their boards1.

A significant number of lobby groups, ASX businesses and state and federal gov-
ernments are leading the nation’s impetus for change by demanding transparency,
setting targets and developing consultative panels. CEDA commends and supports
these levers for change. However, there is more work ahead.


Why is CEDA addressing this issue?

CEDA has a 50-year history of providing thought leadership and policy perspec-
tives on the economic and social issues affecting Australia, through a rigorous and
evidence-based research agenda, and forums and events that deliver lively debate
and critical perspectives.

CEDA has explored gender equity through the Women in Leadership series over the
last two years. The economic benefits of addressing the financial disparity between
men and women has been proven in numerous studies. One such study undertaken
by Goldman Sachs JBWere in 2009 found that closing the pay gap between men
and women alone would boost the level for Australia’s GDP by 11 per cent2. As this
report suggests, unlocking the female potential and underutilised labour pool is cer-
tainly one solution to improving the skills shortage that currently threatens Australia’s
continued economic growth.




                                                                      w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   6
As an independent organisation, CEDA has engaged business leaders from across
government, academia, and the private and not-for-profit sectors to explore the
challenges and impediments related to gender equity.

This paper is a culmination of the Victorian events of the Women in Leadership series
which provided an open platform to explore these issues in all their complexity. The
series explored the business and economic case, as well as the cultural factors that
contribute to gender inequity.

To date the series has included three public and two private forums on the following
themes:

• Closing the gender gap – the impact on Australia’s productivity

• Improving participation in the workplace – opportunities and challenges

• Why embracing diversity is good business

• Engaging men in the gender debate

• Female – speak the unspoken


About this paper

This paper draws together the views provided by the thought leaders who spoke at
the events, case studies that were put forward, and conversations and themes that
emerged. It also includes recommendations and insights drawn from discussions at
these forums.

Hosting a combination of public and private sessions enabled the identification of
subtle hidden barriers that sit below the surface. These are not always readily avail-
able for scrutiny, but can see women excluded from leadership. Dr Hannah Piterman
provides a brief insight into these hidden barriers in the first section of the paper.

‘Views from the CEDA Podium’ shapes the major themes emerging from the Women
in Leadership series, with summaries of presentations by keynote speakers.

‘Views from the CEDA Roundtables’ includes direct quotes from the female-only
and male-only roundtables that were held to provide a safe setting where the less
tangible perceptions that exist in relation to gender at work could be explored.

‘Insights from industry and government’ provides three case studies that offer
examples of how organisations have initiated reforms, confronted culture and paved
the way for the retention and recruitment of women.

Issues relating to gender equity are not new to the reform agenda. What has changed,
or appears to have changed, is the breadth of the debate and the lens through which
business and government view the issues.

Through the ongoing Women in Leadership series, and reports such as this, CEDA
aims to elevate the debate, and in turn the business case, in a way that enables its
members to deconstruct the issues behind gender equity and realise the economic
benefits to their businesses and to society more broadly.

We welcome the dialogue that this paper generates.




                                                                    w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   7
Recommendations and insights

Throughout CEDA’s Women in Leadership series, thought leaders and participants
provided a range of recommendations and insights, including strategies, actions and
techniques for improving an organisation’s gender equity outcomes.

While some of these ideas will take a long time, others can be implemented readily,
the underlining result should be that they provide realistic solutions.


Create the business case

1. Lead by example and lead for the future. Leaders need to understand that this
                                                                                                                “Leaders need to
   is a journey; it will take resilience and commitment to bring about change and it                             understand that
   must be driven from the top.
                                                                                                                 this is a journey.”
2. Good debate stems from good information which can drive change.
   Organisations need to take an evidence-based approach to understand the
   metrics and data within their own business, whether it be small, medium or large.
   Do an internal audit. Be realistic and transparent about the gender balance, lead-
   ership pipeline, retention and the pay parity within the business.

3. Set realistic targets and report on progress. The ASX amendments to corporate
   governance principles are very important steps in propelling the gender debate
   onto the agenda of board rooms. With this in mind all businesses should be creat-
   ing and implementing their own policy and strategy or run the risk of being left
   behind.

4. Build the talent pipeline. With females graduating at a higher rate than males,
   building the talent pipeline by increasing opportunities for women throughout their
   careers is critical for organisational success in the future.


Cultural change

1. Understand the nuances and culture that exist ‘under the surface’. This can be
   a challenging and threatening experience. Using the evidence-based approach
   reduces the likelihood of defensiveness and blame. However, it will uncover issues
   that may be uncomfortable to face. An acceptance of this at the beginning needs
   to be understood and widely communicated.

2. Leadership will need to ensure a safe setting. Encourage men and women to
   have honest conversations. Gaps will undoubtedly be found between the organisa-
   tion and employees’ perceptions on issues relating to equal opportunity, including
   career opportunity, leadership and flexibility.

3. Rethink existing or hidden norms. Challenge norms that perpetuate cultures of
   discrimination such as the ‘Imposter Syndrome’ (women feeling out of place in
   leadership roles).

4. Abandon the fear of being marginalised or recriminated against. Cultural change
   will never occur if fear takes hold.

5. Celebrate change. Build momentum and communicate these celebrations
   through newsletters, intranets, presentations and annual reports.




                                                                   w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   8
Workplace actions

1. Understand the longer-term return on investment. Organisations need to allo-
   cate funding to this change and understand the longer-term financial implications
   of the return on investment for the future. Internationally, companies are investing
   significantly on diversity initiatives. It was reported that $8 billion annually was
   invested by the Fortune 100 in the US.3 If Australia is serious about improving its
   international ranking, we need to invest for change.

2. Discuss workplace practices. For example, implement an internal policy that
   ensures all critical meetings are within the school hours of 9am and 2.30pm.

3. Every employee has different needs. Providing multiple workplace flexibility
   options is an imperative to strong female, and increasingly male, retention.

4. Innovation is paramount. Create the right balance between the individual needs
   and the organisation’s needs – this is an opportunity to create a new paradigm
   for work.

5. Softwiring. Provide role modelling, advocates and change agents.




Understanding the unconscious:
setting the scene
                                                                                                              “Gender biases
by HAnnAH PITErmAn                                                                                             lead managers
                                                                                                               to view talent in
Dr Hannah Piterman explores a recurrent theme of the Women in Leadership
series – how unconscious bias, or intangible cultural dynamics, can undermine                                  predetermined
change in organisations:
                                                                                                               ways.”
Research continues to show that while organisations are increasingly taking elaborate
steps to embed values of meritocracy and transparency in their work practices, they
find their initiatives can be thwarted by intangible cultural dynamics. These cultural
dynamics sit outside the realms of the rational and the strategic. They are often
ambiguous, highlighting a deep tension between those rational elements in busi-
ness that promote equality in the workplace and the non-rational that see women
under-represented and underpaid. Much sits in the domain of the unconscious, is
subliminal in its expression and it is held onto despite logical argument and facts.

According to Harvard researcher Audrey Lee4 unconscious bias is a form of dis-
crimination that is specifically tied to the human cognitive process for receiving and
storing information. Researchers have demonstrated that individuals tend to process
incoming information by relying on cognitive shortcuts – in essence, stereotypes.

Gender biases lead managers to view talent in predetermined ways, and make deci-
sions based on these predetermined views leading to inequity and loss of current
and future capability. Unconscious bias is quite prevalent, often in sharp contrast to
the way individuals perceive their view of themselves. Throughout this paper, and
particularly within the private discussions, numerous thoughts and quotes exhibit the
described unconscious bias. Understanding what it means can equip organisations
to challenge it and pursue new models of thinking.




                                                                    w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   9
Insights from the CEDA podium
             1. Alan Duncan, nATSEm


             2. Judith Sloan, Fair Pay Commission


             3. Hannah Piterman, HPCG and Gender Worx


             4. rachel Slade, Westpac




                      w o m e n i n l e a d e r s h i p l o o K i n G B e l o w T h e s U r Fa C e   10
Professor Duncan became the Director at
                                                       Professor Duncan became the Director at
                                                            NATSEM in early 2010, after leaving his
                                                       NATSEM in early 2010, after leaving his
                                                            previous position as Professor of
                                                       previous position as Professor of
                                                            Microeconomics and the Head of School
                                                       Microeconomics and the Head of School
                                                            at Nottingham School of Economics,
                                                       at Nottingham School of Economics,
                                                            University of Nottingham.
                                                       University of Nottingham.




1. Understanding the gender gap
   and its implications
  Professor Alan Duncan




  Professor Alan Duncan, Director of NATSEM, discusses
  NATSEM research that explored the reasons behind the
  gender wage gap and the links with economic growth.


                                w o m e n i n l e a d e r s h i p l o o K i n G B e l o w T h e s U r Fa C e   11
NATSEM research on gender wage differentials in Australia has attempted to identify
the job or work characteristics that can explain at least a component of gender
differences, and which gender differences remain unexplained.

A recent AMP.NATSEM report5 shows that women are more educated than ever
before, with a 10 per cent increase in labour force participation in the last 20 years.
While greater employment in professional occupations has brought about better
equality, there are still massive divisions in income, in wealth and superannuation, in
unpaid work and in representation at senior levels.


The wage gap

The figure often sighted in relation to the raw average earnings gap between men
and women is 17 per cent6. However, the story is far more complicated than this.
The wage gap figures alone do not demonstrate the level
of discrimination and therefore a deeper review of the data
is required.

Wage gaps can be explained by different work-related
characteristics, different occupational choices, labour
market patterns and histories between genders. There
are also factors of choice – either guided or forced choice
– that exist. Women perhaps disproportionately select
employment with lower financial returns and, while this
may be a behavioural choice, it is fascinating to consider
that behaviour may in fact be conditioned by gender
norms and attitudes.

Logically, the differences between men’s and women’s
wages can in part be due to different characteristics or            “...the more senior a female becomes,
attributes, alongside other aspects such as selection or
choices in occupation, industries and job types – other-             the higher the gap in wage patterns.”
wise described as human capital characteristics.

A study by NATSEM researchers Rebecca Cassells, Yogi Vidyattama, Riyana Miranti
and Justine McNamara7 for the Australian Government Office for Women sought to
strip away these job-related characteristics and worker attributes from the raw wage
differential.


Explaining the pay differential

Vocational qualifications, firm size, labour force history differences in terms of time in
paid work, tenure of current occupation, and industry segregation of selecting into
gender specific industries hold some explanatory power. However, the overarching
finding is that the majority of the wage differential is explained by being a woman
or by being a man. If this data is taken a step further to create equal or equivalent
characteristics and job-related attributes between men and women, it found that
about one-third of the pay differential could be explained.

Therefore, the stark and overwhelming statistic that lingers is that for the remaining
60 per cent or more which is unexplained, there is no logical reason for the wage
differential.

Given the study shows that being a woman exerts a negative influence on average
patterns of pay, what does this mean? The reality is there is much more to the story
than just looking at average wage differences.



                                                                     w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   12
Where in the distribution of income and the distribution of earnings is the differential
at its greatest? It may be that the average wage gap stems from particular or spe-
cific discrepancies at different points in the earning distribution or different levels of
seniority. In another study undertaken by Juan Barón and Deborah Cobb-Clark8 and
published in the Economic Record, gender wage gaps among lower paid workers
could be largely explained by job-related characteristics. However, when compared
with higher-paid workers in either the private or public sectors, more substantial cir-
cumstances emerge. In the private sector, the gender wage gaps
are only partially explained by job-related characteristics. In the
public sector, it appears that virtually none of the wage gaps are
explainable. From this evidence it could be asserted that across
the workforce areas of seniority hold more cause for concern.


Female managers

Research conducted by Ian Watson9 in the Australian Journal of
Labour Economics and Hiau Joo Kee10 in the Economic Record
also looked at unexplained gender wage differences. Both their
findings concur with the pattern that the more senior a female
becomes, the higher the gap in wage patterns.

Watson discovered that female managers in full time employ-
ment earn 27 per cent less than their male counterparts and that
between 65 to 90 per cent of this differential is unexplained by
job-related characteristics. He also reported on the evidence of
a plateau in regards to labour market experience and, from that,
postulated the ongoing existence of the glass ceiling that prevents
progression from middle to senior management for females com-
pared with males.
                                                                                “... a reduction of the gender
Overall Watson’s analysis found that an $18,500 difference in
                                                                                 gap of around one percentage
remuneration exists. He looked at how this wage difference could                 point could increase GDP by
be closed if female characteristics were conferred upon men,
including labour market experience, hours worked and equalising                  around $4.4 billion.”
the returns to different family characteristics. In fact, it only con-
stituted a fraction of the $18,500 difference in remuneration. The
most important element in equalising the differential was for a woman to become a
man, which would contribute around a $12,500 difference in wages for females.

Kee’s work reiterated the pattern that wage gaps for lower-paid workers could be
explained by job-related characteristics. However, the greatest unexplained gap
occurred moving up the earnings distribution from the 75th to the 95th percentile,
with the greatest difference in private rather than the public sector.

The evidence leads to questions about the longer-term economic impacts for
Australia.

The NATSEM Office for Women report sought to establish relationships between the
gender wage gap and economic growth. Although the authors acknowledge that
their findings are limited by not taking into account women’s unpaid contribution to
the economy, there are nevertheless some indicative patterns that emerge in the
analysis.

It suggested a reduction of the gender gap of around one percentage point could
increase GDP by around $4.4 billion.




                                                                     w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   13
Judith Sloan was appointed as a non-
executive director of Westfield Holdings
Limited and is a board member of the
Lowy Institute. She is also a Honorary
Professorial Fellow at the Melbourne
Institute of Applied Economic and Social
Research at the University of Melbourne.




2. Labour force participation
         Professor Judith Sloan




          Professor Judith Sloan, Commissioner with the
          Fair Pay Commission, discusses the change in
          female labour force participation over time, and
          whether increased participation can contribute
          to higher labour productivity.


                                           w o m e n i n l e a d e r s h i p l o o K i n G B e l o w T h e s U r Fa C e   14
It’s interesting to think about how Australia compares in terms of female labour force
participation and how this may have changed overtime. Does higher female labour
force participation contribute to higher labour productivity?

Overall Australia ranks reasonably well, behind New Zealand, Canada and
Switzerland.


Chart 1:
aUsTralia ranKs preTTy well in Terms oF overall worKForCe parTiCipaTion

%

70




60
                                                                                                                                                                                                                                                                   OECD Average




50




40


                                                                                                                                                                                                                                                                                                             Turkey
      Iceland
                NZ
                     Canada
                              Switzerland
                                            Australia
                                                        US


                                                                       Norway
                                                                                Sweden
                                                                                         Netherlands
                                                                                                       South Korea
                                                                                                                     Portugal


                                                                                                                                     Ireland


                                                                                                                                                       Finland
                                                                                                                                                                 Austria
                                                                                                                                                                           Slovak Republic
                                                                                                                                                                                             Czech Republic
                                                                                                                                                                                                              Mexico
                                                                                                                                                                                                                       Germany
                                                                                                                                                                                                                                 Spain
                                                                                                                                                                                                                                         Luxembourg
                                                                                                                                                                                                                                                      France
                                                                                                                                                                                                                                                               Poland
                                                                                                                                                                                                                                                                        Greece
                                                                                                                                                                                                                                                                                 Belgium
                                                                                                                                                                                                                                                                                           Hungary
                                                                                                                                                                                                                                                                                                     Italy
                                                                                                                                               Japan
                                                                                                                                UK
                                                             Denmark




Source: Source: Abhayaratna, J. and Lattimore, R. 2006, Workforce Participation Rates – How Does Australia Compare? Productivity Commission Staff Working
Paper, Canberra (Page XII)




In the younger age groups Australia ranks well in labour force participation. It is
believed this is due to the prevalence of education and work, and the combination of
both. Interestingly this is not as common elsewhere in the world.

The issues arise in the prime age bracket of 25 to 54 years of age, where Australia
ranks quite poorly on the international scale.

Female labour force participation has increased, and while we still have low par-
ticipation during the child bearing years, it has also slowly increased as Graph 2
indicates.


Chart 2:
CoUnTry-speCiFiC worKForCe parTiCipaTion raTe Gaps By Key laBoUr marKeT seGmenTs, 2005

                 Prime-aged Males                                                                                                              Child Bearing Females                                                                                                         People Nearing Retirement
%                                                                                                                    %                                                                                                                                   %
93                                                                                                                   80.0                                                                                                                                72
                                                                                                                                 +7.1                                                                                                                              +15.2

          +1.4                                                                                                       77.5                                                                                                                                67
92

                                                                                                                     75.0                                                                                                                                62                          +7.1
                                    +0.4                                                                                                               +2.3
91                                                                                                                                                                           +0.9
                                                                                                                     72.5                                                                                                                                57                                            +2.6           +2.1


90                                                                                                                   70.0                                                                                                                                52
            NZ                  Canada                       Australia                                                           Canada                  US                         UK                        Australia                                                 NZ            US               UK Canada Australia

Source: Abhayaratna, J. and Lattimore, R. 2006, Workforce Participation Rates – How Does Australia Compare? Productivity Commission Staff Working Paper, Canberra (Page XIII).
Data sources: Based on ABS (2006C, 2006d); CIA (2006); EOWA (1998); IISS (2006); OECD (2006c); UN (2005a, 2005b) and USCB (2005).




                                                                                                                                                                                                                                                      w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   15
What is evident is the major increase in the participation of older women. There are in
fact two effects: one, the cohort effect where women are much better educated than
their mothers and are continuing to participate; and two, an increase in participation
from women who are beyond the cohort. In the past, Australia was dismal in realising
older female participation, but now we are above the OECD average.



Chart 3:
laBoUr ForCe parTiCipaTion, older men and women, 1979 To 2009

%

90



80
                                                                                                                        Sweden
                                                                                                                        New Zealand
70                                                                                                                      United States
                                                                                                                        Canada
                                                                                                                        Australia
60
                                                                                                                        OECD
                                                                                                                        countries

50



40



30
     1978      1980   1982   1984   1986   1988   1990   1992    1994   1996   1998   2000   2002     2004     2006

                                                          YEAR

Source: OECD




Another interesting participation factor is part-time employment. Australia
is the champion of this. In Australia, over 40 per cent of employment is
part time and this could arguably be due to flexibility in the labour market.
Interestingly, even the male percentage of part-time employment is high
in comparison to OECD standards.

Interestingly, and contrary to popular belief, producing an environment
that is conducive to more female participation will result in a lower skilled
and less experienced work force which will reduce productivity – in the
short term. Does this mean we should not take action? Certainly not, as
the longer-term results would certainly produce a different outcome.

Currently, women who choose to stay in the workforce do so for rational
reasons as they are seeking a return on their skills and experience. From
this we could question the focus with which Australia chooses to pursue
its increases in participation. For example, ensuring that we maximise                                       “What is evident is
the underutilised skilled talent that is currently lying dormant. What we
do know is that female participation is growing, particularly among older
                                                                                                              the major increase in
women, and this may be a constant trend for years to come.                                                    the participation of older
There is an interesting story sitting behind all of this information in the                                   women.”
choices couples are making. Does he take the high risk and she takes
the low risk? Perhaps this is a sensible choice to make as a family, but
logically speaking if women have chosen the low-risk occupation, with low returns,
this will inevitably show up in the wages gap. This is something to think about and
consider as a whole.




                                                                                      w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   16
Professor Duncan became the Director at
Dr Hannah Piterman is the Director of
                                                                       NATSEM in early 2010, after leaving his
Hannah Piterman Consulting Group and
                                                                       previous position as Professor of
Co founder of Gender Worx. Hannah
                                                                       Microeconomics and the Head of School
authored ‘Unlocking Gender Potential: A
                                                                       at Nottingham School of Economics,
Leader’s Handbook’, which was
                                                                       University of Nottingham.
published in 2010 and has contributed
immensely to this topic through reports
and journal articles.




3. The power of the irrational
        Dr Hannah Piterman




         Dr Hannah Piterman discusses why, despite
         the business case for gender equity being clear,
         this remains a complex issue and looks at the
         changes needed.


                                          w o m e n i n l e a d e r s h i p l o o K i n G B e l o w T h e s U r Fa C e   17
Despite the clear business case backed by extensive research that has aligned
improved financials and healthier, more positive cultures with the increase of women
at senior ranks, the gender parity chasm still exists. Not only are women excluded
from the leadership table, but they are held to account for being women.

The business case for gender equality is clear but the solutions are complex. Gender
diversity is by no means unanimously accepted as a strategic priority. Perceptions of
its importance vary, particularly between men and women.

Recent worldwide research published in the Harvard Business Review by Bain and
Co.11 found that 80 per cent of women and only 48 per cent of men believe that
gender parity should be a critical business imperative. Sixty-six per cent of men
believe that women have equal opportunity to be promoted to leadership and gover-
nance positions, yet less than a third of women agreed.


Competing messages

So we have competing messages. One that recognises women are smart, capable
and committed and that business cannot afford to squander scarce and talented
female resources. The other messages
are subtle, perhaps unconscious, and
deeply embedded in an organisation’s
DNA. These messages are based on a
belief system that meritocracy exists and
that women who have not succeeded
have only themselves to blame.

The resulting dynamic sees women
having to prove that they are extraor-
dinary. That they are without needs or
demands, and that they are unencum-
bered by family in order to avoid being
sidelined as less ambitious, as not
having the prerequisite experience and
of not wanting to commit.

The well-documented wage gap is
testament to the fact that women are
                                              “The business case for gender equality is clear but
expected to be selfless, while self-           the solutions are complex. “
orientation and competitiveness are
accepted in males.


Female authority

As a society, we still struggle with the notion of female authority. Women who are
seen to step outside a stereotypical female paradigm can engender rage in others,
both male and female.

There are many extraordinary women who continue to achieve extraordinary things.
However, as long as being extraordinary remains the tacit prerequisite by both men
and women for women’s entry into leadership, senior ranks will remain populated
by men. It is undoubtedly a cultural problem and therefore cultures need to shift for
female authority to thrive.




                                                                 w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   18
Changes needed

First, the rationale needs to be ramped up from important to urgent and a cogent
business case prepared. The ASX amendments to the Corporate Governance
Principles are an important step. However, unless the impetus is complemented by
culture change in organisations, women will choose with their feet.

Second, business needs to take an evidence-based approach and seek metrics that
can guide strategy and interventions for dealing with the issues. Companies invest
significantly in diversity initiatives. For the US it is estimated to be in the vicinity of
$8 billion annually for Fortune 100 companies12. However, investment has not made
significant inroads into the number of women in senior executive positions. The right
levers are not being pulled. A sound measurement basis provides a strong lever for
change.

Third, leadership needs to respond to the evidence and take action. For example,
strategies that address the paucity of women in line roles will not become effective
for some time as organisations address pipeline blockages that see an aggregate
of only 4.1 per cent of women in line roles.
However, a decision to make all core strategic
meetings between 9am and 2.30pm could be
implemented immediately.

Fourth, leadership needs to ensure a safe
setting that encourages men and women
to examine hidden norms without the fear
of marginalisation or recrimination. While
an evidence-based approach reduces the
likelihood of defensiveness and blame, the
process will surface uncomfortable issues. It
may highlight gaps between the organisation
as a fair-go employer and the way employees
perceive the organisation’s commitment to
equal opportunity.

Fifth, it goes without saying that a budget
is needed to ensure that action is taken to
address issues that emerge from the data
while acknowledging that Rome wasn’t built
in a day.
                                                         “Gender is a strategic and risk
Sixth, business needs to challenge norms
such as the long-held belief that flexibility and
                                                          management issue – not a women’s
seniority cannot be aligned. Some organisa-               issue...”
tions have found creative options to deal with
structural impediments.

Finally, business needs to accept that change occurs incrementally and imperfectly,
and therefore needs to commit to the long haul. Equivocation, particularly during
difficult times, sends a strong message that can undo progress.

Gender is a strategic and risk management issue – not a women’s issue – and
organisations that are successful in reducing gender parity will be the new winners.




                                                                      w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   19
Professor Duncan became the Director at
Rachel Slade is Westpac’s Head of
                                                                         NATSEM in early 2010, after leaving his
Diversity and Flexibility, a Group Centre
                                                                         previous position as Professor of
of Excellence focused on delivering a
                                                                         Microeconomics and the Head of School
diversity strategy across all Westpac
                                                                         at Nottingham School of Economics,
Group brands.
                                                                         University of Nottingham.




4. Understanding barriers
         Rachel Slade




         Rachel Slade examines some of the barriers
         and what is needed for long-term sustainable
         change.


                                            w o m e n i n l e a d e r s h i p l o o K i n G B e l o w T h e s U r Fa C e   20
Like the rest of corporate Australia and in particular the financial services industry,
Westpac is struggling to deal with the issues of women in senior leadership, except
of course at the very top. Westpac has a proud history of taking action to make a
positive difference for women.

To reference a study by FINSIA that provides a powerful message:

When asked: “Is it almost impossible for women to progress to executive level in
such a male-dominated cluster of the financial services industry”, 61 per cent of
women agreed and 85 per cent of men disagreed.

When it comes to perceptions of opportunities for women, this kind of
gender divide is not uncommon. The majority of decision makers in this
industry and in corporate Australia today are men. The corporate fabric
of the organisation has been woven by men and unwritten rules have
been framed by men. So with this in mind it is not surprising that barriers
aren’t transparent or overt. Here are some that we know exist and we are
cognisant of their implications:

maternal wall: A description used to explain the issue of women not
being approached for opportunities because somebody is making a deci-
sion in their best interests. The phrases too often are: “She won’t want
to travel because she has young children”, “the hours in that role are too
long”, “she won’t move to Melbourne because of her commitments”, and
“she’s just too pre-occupied with her wedding next year to be interested”.
It can sound ridiculous, but when people (both men and women) discuss
the maternal wall the facial expressions acknowledge the guilt.

Organsiations and leaders need to question both stated and unstated
assumptions about what is good for women and/or what women want.
To tap female potential organisations need to engage with the female
workforce.

The hour glass ceiling: Finding the balance between paid and unpaid
work and that unpaid work is largely about caring. Women do invariably
take on a large share of the caring and nurturing role, whether that be
their children, the household and increasingly their elderly parents.

Displaying ambition: Women and authority - how do we as a business
society accommodate a different face and style of leadership? How do
we remove the perception of the double bind women face: too aggres-
sive if they behave in an ambitious manner and too weak if they are
communal and collaborative? Assumptions about what women want,
need to cease and questions need to be asked at various stages of their
career. Businesses need to support creating valid and alternative models
of career progression.

Hardwiring: Achieving long term sustainable change takes an approach
that combines focused interventions like targets, with critical elements                 “…The corporate fabric
and drivers for soft wiring cultural change. Some examples of hardwiring
include targets and policies. Examples of softwiring include storytelling,                of the organisation has
role modelling and creating a grass roots community of advocates and                      been woven by men and
change agents.

Supporting communication with some fundamental principles is impor-
                                                                                          unwritten rules have been
tant – this is about equality of opportunity, for the full talent pool. Not               framed by men.”
about opportunity at any cost.




                                                                   w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   21
Insights from the CEDA roundtables




 As part of the Women in Leadership series, CEDA held two
 roundtables – one with women only and one with men only – to
 try to distil some of the less tangible perceptions that exist. The
 experience provided a unique opportunity for business leaders to
 hear and discuss some of the nuances that exist in a safe setting.


                                       w o m e n i n l e a d e r s h i p l o o K i n G B e l o w T h e s U r Fa C e   22
Regardless of the facts and figures of this debate, underneath are the feelings,
experiences, mindsets and biases.

The higher the level of awareness of these perceptions, the greater the oppor-
tunity for renewed insight and understanding. Some thoughts and opinions from
the sessions are included below to provide insight into some of these underlying
issues.




From the female perspective

Women’s role in society

“There is a question about space for talking and communicating these issues in
 a male-dominated world. There is a travesty of culture which means you have to
 fight between picking up your children from school or being at work. So I believe
 Australia is a conservative society with a
 massive gender segregation, which goes
 across all industries.”
                                                      “There is a travesty of culture which means
“There is a whole-of-family challenge, more            you have to fight between picking up your
 predominant in different ethnicities. However,        children from school or being at work.”
 the gender roles that men and women play
 are still very real today. There is pressure from
 family and friends believing you should play a certain gender role. You are made to
 feel guilty for going to work, for leaving your children and it’s assumed that someone
 else is raising your children. This is an enormous emotional and mental hurdle to
 overcome.”

“Women stand out more because the culture is one of male entitlement, and that
 is the norm. Women who stand up to men are seen as being ultra-feminist and
 feminism can be used in a derogatory way.”

“I was the only female on the executive team and I’ve had comments like ‘It’s those
 bio-rhythms again’.”

“Australia has had a culture which enabled one bread winner and this is the genesis
 of all those 50s type expectations of one feeling inadequate. Even though this is not
 realistic we still have this image.”


How women feel about other women
                                                                                “Women who
“I can sometimes be fearful of women who are manipulative and yet
 men who behave the same are not deemed manipulative, they are                   stand up to men
 deemed as influencers. Why is this so?”
                                                                                 are seen as being
“There is unconscious behaviour in organisations; it’s rife, an under-
 lying anger towards other successful women. Women are really                    ultra-feminist and
 angry with other women and they don’t like that female authority.”              feminism can
“As a minority in a competitive culture, women are often pitted
 against each other. It’s natural to want to be the best woman in the
                                                                                 be used in a
 room. However, this engenders competition.”                                     derogatory way.”
“There is no support from our own sisterhood; basically women are
 criticising women.”

                                                                   w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   23
From the male perspective

men on women in leadership issues

“This issue is a major social equity argument but even with the ever increasing evi-
 dence that suggests a stronger business and economic argument to create more
 diverse senior ranks and boards in Australia, it still seems incredibly hard. Why is this
 so? Why do our metrics lag behind the rest of the world? This is what puzzles me
 and both genders have a responsibility.”

“One of the challenges to inequity is trying to understand the more subtle dynamics
 in the relationship between men and women in the workplace. There has been
 much attention placed on the provision of maternity leave, childcare and crèches,                              “As a minority in a
 the more tangible aspects. However, (there is) not enough discussion about the
 intangible aspects of the workplace and the sorts of cultural and interpersonal rela-                          competitive culture,
 tionships that exist.”
                                                                                                                women are often
“There is a perception that men can exude a natural aggression, it’s needed to
 do these jobs, you need to be pushy. If a female does this, it’s almost unnatural,                             pitted against each
 whether it comes with the voice, the tone, the body language and everything else.                              other.”
 I can reflect on a past senior colleague who used to come across as excessively
 aggressive or tense but upon reflection I can see it was simply her trying to find her
 voice.”

“It can be intimidating for women to speak up around men, especially ‘big men’ with
 ‘big voices’. The presence alone can create anxiety that alienates the minority, being
 the female, who in many cases are smaller in stature and quieter in vocal delivery.
 We need to lift women’s confidence and we need to help them speak up and find
 their voice.”


men on unconscious bias                                        “There is a perception that men can
“There are subtle sexual tensions that exist between            exude a natural aggression...if a female
 men and women, we all have relationships in our
 lives which are gender based and the workplace
                                                                does this, it’s almost unnatural.”
 is simply another environment, but indeed a more
 complex one. I admit to having had a tendency towards employing more attractive
 women, not simply more physically attractive, also more attractive personalities.”

“Whilst unconscious bias is now a big conversation, we need to be realistic and not
 allow bad behaviour to be deemed as unconscious. Let’s not pretend that con-
 scious bias is not present; there are definitely still stereotypical attitudes that we men
 and women are guilty of holding.”


What men think women think

“Women get to the point where it’s just too hard and they have had enough.
 Balancing work and life is too difficult and therefore it’s easier to move into the
 small to medium size market that is more flexible. The opportunity loss for talented
 women is enormous.”




                                                                      w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   24
“Women are more likely to feel the imposter syndrome, which effectively means I am
 sitting here in this meeting but I don’t belong here. Often they fought really hard to
 be there but when they look around they don’t really belong. I’m at the table but I
 am an imposter.”

“I’ve seen women get to senior positions and they are often harder on women
 coming through, certainly harder than their male counterparts. Is it because they
 broke through the glass ceiling and now they have a right to be extra critical of
 those trying to forge the same path? Why is it that women seem to be the harshest
 judges of women?”

“Our firm has been particularly proud of its achievements
 with women. However, we are seeing a fall off from where
 we have been. Many women who have been promoted are                 “Why is it that women
 simply saying, ‘I do not want this’. Interestingly, we are also
 seeing a rise in Beyond Blue statistics in depression levels
                                                                      seem to be the
 in men. Perhaps there is something in the role we expect             harshest judges of
 our executives to take on and the environments with which
 they participate which is fundamentally flawed. Perhaps              women?”
 women are being smart and men go on suffering.”


What about the baby boomers?

“Another issue males need to understand is that baby boomers are still in charge
 and they don’t understand women as much as they think they do. An example of
 this is a baby boomer CEO of a top 10 company a few years ago was about to
 hire a woman into a position one below him. The woman confided in the recruiter
 that she was pregnant and the recruiter informed somebody in the organisation
 who ultimately informed the CEO. The whole process nearly collapsed except a
 39-year-old man at the time said, ‘This is ridiculous, that’s fine, I’ll hire her’. The
 interesting part is the 58-year-old CEO had absolutely no intention of hiring her, this
 was a deal breaker. I think baby boomers are really struggling with issues that the
 next generation are not struggling with as much.”



   “...baby boomers are still in charge and they
    don’t understand women as much as they think
    they do.”

Do we need to moderate “maleness” in organisations?

“I did experience through my career macho characteristics being exhibited. What is
 it to be male? The mateship idea of squeezing people out who weren’t particularly
 interested in football or didn’t want to go to the pub after work. There is a much
 greater need to be culturally sensitive and we could all admit that these character-
 istics are still alive and well today and you have to ask, is this how it’s supposed to
 be?”

“Perhaps there is something about our boardrooms that reflects what men are used
 to, such as the behaviour on football fields, behaviours we developed earlier in our
 childhood as boys.”




                                                                    w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   25
Insights from industry and government
                   Three case studies:

                   1. GlaxoSmithKline


                   2. PriceWaterhouseCoopers


                   3. South Australian Government




                    w o m e n i n l e a d e r s h i p l o o K i n G B e l o w T h e s U r Fa C e   26
1. GlaxoSmithKline Australia
   Deborah Waterhouse, Vice President and General Manager,
   Australia and New Zealand

At GSK there is a strong economic rationale for attracting and retaining talented
people, alongside a very strong business rationale. Supporting employees to find the
right balance between their work and their personal lives is paramount, and GSK has
created a number of policies that support this commitment.

All GSK staff can apply for alternative work arrangements, including:

• job sharing
• reduced hours or school hours
• part time work
• work from home and from office scenarios
• purchase of additional annual leave
• taking a career break
• retirement wind down

In addition, GSK has a Corporate Family           “History has proven
Program – an online portal where employ-
ees can find child care services, babysitters,     the best teams are
access parenting resources, and find out           not dominated by
about free onsite parenting seminars.
This program is geared for both men and            one gender…”
women. GSK also runs health and resilience
programs, and parental leave is an option
for both men and women.

In 2010 and 2011, GSK was awarded Employer of Choice for Women by the Equal
Opportunity for Women in the Workplace Agency. GSK set a very clear strategy for
the business in 2008 to ensure success. One of the pillars within this strategy was
‘fostering individual empowerment’, where an individual employee value proposi-
tion is developed. The strategy, GSK in Balance, essentially means striking a deal
between the needs of the employer and the needs of the employee.

Today the GSK executive team is 50/50 – five men and five women. History has
proven the best teams are not dominated by one gender and the breadth of thinking
and range of perspectives that emerges from this team is absolutely invaluable.

Women have the greatest opportunity to exercise authority as authentic and unen-
cumbered leaders when there is a critical mass.




                                                                 w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   27
2. PriceWaterhouseCoopers


With 6,505 employees, and an average employee age of 32 years old, the people
agenda is a critical part of our firm’s strategy – to ‘ignite a behaviour led culture
to live the strategy’. Diversity is also imbedded in the PwC corporate responsibility
strategy – we believe that a positive workplace culture which supports diversity and
wellbeing is paramount to delivering high performance, innovation and agility in the
marketplace.


PwC’s diversity strategy has seven dimensions

Our aspiration is to create an inclusive workplace that embraces the diversity of our
people and supports them to achieve their personal and professional goals while
enhancing business performance. In order to support this aspiration, we focus on
creating an awareness of how unconscious bias can impact the decisions
we make.

PwC’s current approach to transformation is based on a ‘positive                                         (dis)Ability
change construct’ (a process adapted from ‘Appreciative Inquiry’
by Fran J. Barrett & Ron E. Fry). In this regard, we seek to create
                                                                               Flexibility &                                        Religious
                                                                               individual                                           beliefs
change by understanding and leveraging the strengths of our
                                                                               choice
organisation in addition to addressing the deficits. The focus
shifts to the solution rather than the problem. In adopting this
                                                                                                   Perspectives and
model we have started to see positive results in the retention
                                                                                                      Capabilities
of talent, increased engagement, increase in people working                                                                                   Age
flexibly and an increase of women in leadership.                             Cultural

Three years ago the firm took a fresh look at our whole diversity
strategy and our female population, in an effort to understand
the root cause behind our challenges in this space. The research                              Gender                      Sexual
explored two key themes:                                                                                                  orientation

1. Why was the pipeline leaking from senior manager (49 per cent women)
   to director (39 per cent women) to partnership (17 per cent women)?

2. With a strong parental leave return rate, why were women leaving within 12 months
   of returning to PwC?

The causal analysis uncovered the following challenges:

• More men were being tagged as potential talent for the leadership pipeline
• Part time work was offered but it had very little flexibility
• Leadership development courses were often held off site or in a residential capac-
  ity, a model not suitable for all staff members

Applying the ‘positive change construct’ approach, we consulted a new audience
of women who had succeeded to reach partnership level and women who had
returned and chosen to stay at PwC beyond 12 months. Our research uncovered
something very different than what we had seen before.

Every female that had made partner at PwC had a sponsor – an advocate.
Coincidentally, the sponsor was male in every case. Secondly, the staff returning
and remaining after parental leave worked flexibly, not within a tight part time regime.



                                                                    w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E    28
They tapped into a variety of sources to achieve the desired flexibility (purchasing
additional annual leave, utilising an emergency nanny service and working flexibly to
balance personal and client commitments).

Equipped with this knowledge, a new strategy was designed starting with leadership,
and formed part of our employee value proposition. It built a point of differentiation in                                     “…we focus
the marketplace for graduate intakes and clients. There was an intentional focus on
understanding bias and building awareness as outlined below:
                                                                                                                               on creating an
The new strategy includes specific programs:                                                                                   awareness of
• Growth Mindset – leadership development programs based on research by Carol                                                  how unconscious
  S Dweck, Ph.D and world renowned psychologist at Stanford University.
                                                                                                                               bias can impact
• Building Female Leaders – designed for senior managers and directors. The
  program builds the mental and emotional capacities that underpin the wellbeing                                               the decisions we
  and success of women in senior roles.
                                                                                                                               make.”
• Sponsoring Women – designed for our partners. The workshop focuses on spe-
  cific strengths-based approaches to one-to-one interactions and sponsorship
  roles as well as the science of gender differences in thinking, decision making,
  stress response and reactions.
• Redesigning part time work – shifting language from part time fixed hours to flex-
  ible hours, transition that matches workload.
• Inspiring Market Leaders – designed for partners and principals. This two-day
  workshop takes an outside in approach to our culture work, starting with the
  needs of our clients to help shape where we focus and how we lead our teams.
  The output is a network of change agents across the firm who then continue the
  behavioural change journey in their business units.
• Harvard Implicit Association test – staff recommended to undertake this 15 minute
  test to aid conversation around cognitive bias.

Results:

• 87 per cent of our people are proud to work at PwC
• 84 per cent believe PwC is an inclusive work environment where individual differ-
  ences are respected and valued.


Chart 2
The Gender shiFT in pwC
These are some of our milestones and achievements

                                                           2008                             2011
                                                                    Representation
 Partner admissions                             14% are female                  41% are female
 Returning parental leavers                     87%                             91%
 Parents leaving within 12 months of return     24%                             16%
                                                                        Sponsorship
 Key talent women with a sponsor                10% female Key Talent           65% female Key Talent
 Formal male sponsors                           no formal data                  54% sponsors
                                                                         Flexibility
 Purchasable annual leave                       4 weeks                         12 weeks
 Paid parental leave                            14 weeks                        18 weeks
 Work flexibility                               8%                              49%
 Source: Diversity & Inclusion Survey 2010




                                                                                   w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   29
3. South Australian Government
   Warren Maccan, Commissioner for Public Sector Employment,
   Office for Ethical Standards and Professional Integrity,
   Department of Premier and Cabinet

South Australia can boast that it is the leading Australian state for the highest number
of female executive positions in Australia.

Within the SA Government Strategic Plan is a target: 50 per cent of the public sector
executives to be women by 2014.

The public sector in SA is the largest employer in the state with approximately
100,000 staff. Of that figure, 1,200 are classified as executives. Experience had
shown over time that the traditional arguments for change around equity and the
glass ceiling were falling on deaf ears and decision makers were becoming quite
cynical. Therefore, the need for the business case became clear and it was this that
helped provide a bridge for change in SA.

In 2003, only 29 per cent of the SA female workforce held executive level positions.
In October 2010 that had jumped to 42 per cent. So how did this happen? What was
the business case for change?

The key components of the business case included:


Graduate talent

Over the past 10 years almost 60 per cent of Australia’s graduates were women, and
with the number of female graduates growing at twice the rate of male graduates, the
pipeline is clear. These numbers are not due to more predominantly female oriented
courses, such as nursing or social work; females also outnumber males in natural
and physical sciences, and management and commerce, among other courses.


Chart 1:
aUsTralian sTUdenTs award CoUrse CompleTions By Gender, 1997 To 2008

%
                                            Male                                                          Female
60


50


40


30


20


10


 0
        1997        1998         1999        2000        2001         2002        2003        2004         2005        2006        2007         2008
                                                                             YEAR

Source: Department of Education Employment and Workplace Relations Higher Education Statistics 2008 – Table 2 Award course completions for all students by
citizenship and gender, 1997-2008




                                                                                                                       w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   30
The poignant relevance for the SA Government was to consider that a very large pro-
portion of executives will ultimately come from the graduate pool of talent. Therefore,
it does not make good business sense to be appointing less than 50 per cent of our
executives from the pool that is largest and clearly growing.


Female executives and performance of boards                                                                                      “…traditional
The next component to consider for the business case was the link between female                                                  arguments for
executives and performance. There is an immense amount of international research
on this question but the following referred to here is from Catalyst in the United
                                                                                                                                  change around
States.                                                                                                                           equity and the glass
The graph below measures the performance of boards of US Fortune 500 compa-                                                       ceiling were falling
nies with more women. It shows that boards with a greater number of female board
directors outperform on all three results – return on equity, return on sales and return                                          on deaf ears…the
on invested capital.
                                                                                                                                  need for a business
                                                                                                                                  case became
Chart 2:
Board diversiTy resUlTs                                                                                                           clear…”
   Return on equity by female                        Return on sales by female      Return on investment capital by
  representation on the board                       representation on the board   female representation on the board
  Companies with more women                         Companies with more women        Companies with more women
    outperform those with the                         outperform those with the        outperform those with the
          least by 53%                                      least by 42%                     least by 66%
ROE                                               ROS                               ROIC



           +53%                                            +42%
                                                                                             +66%




         9.1%         13.9%                              9.7%       13.7%                  4.7%         7.7%

      BOTTOM           TOP                             BOTTOM        TOP                 BOTTOM        TOP
      QUARTILE       QUARTILE                          QUARTILE    QUARTILE              QUARTILE    QUARTILE
        WBD            WBD                               WBD         WBD                   WBD         WBD

Source: Catalyst 2007: US Fortune 500 Companies




We know women make up half the workforce entrants, but by the time they reach
executive level, the proportion has fallen to 10.7 per cent, while only two per cent get
to sit in the CEO’s chair.


Cost impact

Women are leaving the SA public sector at a younger age than men, and every
time an experienced female member of the executive feeder group leaves it costs
$140,000 in recruitment and training to replace them.




                                                                                     w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   31
Dollars spent on training and development

Given the composition of the workforce is 50/50, it is more than unjust – if not
inequitable – to see the statistics below. One can see why females might become                                                                      “…every time an
disenfranchised with pervading cultures.
                                                                                                                                                      experienced female
Chart 3:
                                                                                                                                                      member of the
ToTal TraininG and developmenT By Gender adminisTraTive UniT employees JUne 2009
                                                                                                                                                      executive feeder
$ Millions
30
                                                                                                                                                      group leaves it
25
                                           Male                                                  Female
                                                                                                                                                      costs $140,000…
20                                                                                                                                                    to replace them.”
15

10

 5

 0
         $1–$47,999           $48,000–$60,999           $61,000–$78,199        $78,200–$98,499       $98,500+              Total
                                                                SALARY BANDS

Source: Workforce Information Collection Data (WIC) June 2009




Understanding this content has helped build the business case which has been used
to improve the SA story. Using external benchmarks has been a driver for internal
organisational change and building the business case for gender parity within the SA
Government. Paramount to achieving change is driving it from the top.




Endnotes
1 EOWA Gender workplace statistics at a glance, July 2001, Quarterly
2 Goldman Sachs JBWere Investment Research, 2009; Economics – Australia’s Hidden Resource: The Economic Case For Increasing
  Female Participation
3 Duehr, E. & Bono, J.E. (2006). Men, women, and managers: Are stereotypes finally changing? Personnel Psychology, 59, 815-846.
4 Audrey J. Lee, Unconscious Bias Theory in Employment Discrimination Litigation, 40 Harvard Civil Rights-Civil Liberties L. Rev. 481-503
  (2005)
5 Australian Bureau of Statistics (ABS 2009)
6 Rebecca Cassells, Riyana Miranti, Binod Nepal and Robert Tanton (2009). ’She works hard for the money: Australian women and the
  gender divide’, AMP.NATSEM Income and Wealth Report Issue 22, April 2009.
7 Rebecca Cassells, Yogi Vidyattama, Riyana Miranti and Justine McNamara (2010). ‘The impact of a sustained gender wage gap on the
  Australian economy’. Report for the Office for Women, Department of Families, Community Services, Housing and Indigenous Affairs
  (FaHCSIA), Canberra, Australia.
8 Juan Barón and Deborah Cobb-Clark (2010). ‘Occupational Segregation and the Gender Wage Gap in Private- and Public-Sector
  Employment: A Distributional Analysis’, Economic Record, 86, pp. 227-246
9 Ian Watson (2006). ‘Decomposing the Gender Pay Gap in the Australian Managerial Labour Market’, Australian Journal of Labour
  Economics, 13, pp. 49-79.
10 Hiau Joo Kee (2006). ‘Glass Ceiling or Sticky Floor? Exploring the Australian Gender Pay Gap’, Economic Record, 82, pp. 408–427.
11 Coffman, J. Gadiesh, O. & Miller, W (2010). The great disappearing act:Gender parity up the corporate ladder. Bain & Company
12 Duehr, E. & Bono, J.E. (2006). Men, women, and managers: Are stereotypes finally changing? Personnel Psychology, 59, 815-846.




                                                                                                          w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   32
From our sponsor:
ExxonMobil



ExxonMobil is a highly successful company in a highly competitive, technology
focused industry. Diversity is a key issue for ExxonMobil for a simple reason – it
makes good business sense to employ the best people, whatever their gender or
background, and ensure that they develop to their full potential. Our success, and
our future, relies on our ability to attract and develop the best brains from diverse
backgrounds.

Women play a vast and important role in our operations, both in Australia and globally.
ExxonMobil Australia has been recognised as an Employer of Choice for Women by
the Equal Opportunity for Women in the Workplace Agency (EOWA) for the past 10
years, since the inception of these awards.

 Our policies encourage women’s active participation in the workforce and are impor-
tant in fostering a supportive environment for women, such as 14 weeks of paid
parental leave in addition to the Federal Government’s paid parental leave scheme.
Our Workplace Flexibility Programs allow for part-time work opportunities, time-off
from work and variable work schedules to support our employees’ need for flexibility
at various points in their careers.

Equally important is creating a culture of diversity and inclusiveness within our
company. We do this in many ways, not least by building a proactive consciousness
about progression opportunities for women right from the start of their career.

Our ongoing aim to provide an inclusive environment for women in our workplace fits
perfectly with the aims of CEDA’s Women in Leadership Series. It is through ongoing
discussions and engagement with opinion leaders, such as the opportunities offered
through this series, that effective change on closing the barriers faced by women in
the workplace can truly be met.

ExxonMobil Australia has been proud to be involved with the CEDA Women in
Leadership Series and the Looking Below the Surface report. As a subsidiary of one
of the world’s largest companies providing energy to people all around the globe, we
have an important job to do, and this can only be achieved if both men and women
are involved to their full potential.



Ulysses Yiannis
Human Resources Manager, Asia-Pacific South
ExxonMobil Australia Pty Ltd




                                                                   w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   33
From our sponsor:
GlaxoSmithKline


GlaxoSmithKline (GSK) is incredibly proud to be involved in CEDA’s Women in
Leadership series. It has been a great opportunity to showcase the leadership of
a number of talented women and actively contribute to the debate on important
questions facing our society today.

When we heard about this series we were determined to be involved, because we
are passionate about advancing the career prospects of all our employees. Like
many businesses, we know that fostering great talent and matching the right people
to the right roles is crucial to our success.

In 2010 and again in 2011, GSK was recognised by the Equal Opportunity for
Women in the Workplace Agency (EOWA) as an employer of choice for women. We
are very proud of this achievement because it represents our public commitment to
supporting and advancing women in the workplace.

We have put in place a number of policies to support this commitment, from paid
parental leave, corporate family programs, development opportunities and flexible
working arrangements, to help all employees find the right balance between work
and family life.

But is there more we can do? How can we continue to maximise the value that
women bring to our business, particularly in leadership and management roles? On a
more personal note, as an executive, what support can I give the women in my team
to help them reach their full potential?

It is to help us answer these important questions that GSK decided to be involved in
the series; and we have not been disappointed.

GSK is a global research-based pharmaceutical and healthcare company with a
proud history in Australia dating back to 1886. We collaborate with local research-
ers and doctors to discover new ways of treating and preventing disease, investing
around $56 million a year in research and development. We provide about 1620
skilled jobs across Australia and contribute $584.6 million to Australia’s pharmaceuti-
cal and medicinal exports.

With this research heritage we are delighted to support the research-based approach
CEDA has adopted throughout the series, culminating in the development of this
Women in Leadership report entitled Looking Below the Surface. We commend
CEDA and Dr Hannah Piterman for instigating this important research and for creat-
ing the safe environment to continue to drive the debate.

As women, we have a lot to celebrate. We are chief executives, business leaders,
academics, Nobel Laureates, mothers and partners. We have achieved high public
office. But it hasn’t been easy and there is a long way to go. That’s why we need to
keep having this conversation.



Deborah Waterhouse
General Manager, GlaxoSmithKline Australia and New Zealand




                                                                   w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E   34
national                        south australia and the
Level 13, 440 Collins Street    northern Territory
Melbourne VIC 3000              Level 7, Qantas House
GPO Box 2117                    144 North Terrace
Melbourne VIC 3001              Adelaide SA 5000
Telephone 03 9662 3544          PO Box 8248, Station Arcade
Fax 03 9640 0849                Adelaide SA 5000
                                Telephone 08 8211 7222
                                Fax 08 8211 8222

new south wales
and the aCT
Level 14                        victoria and Tasmania
The John Hunter Building        Level 13, 440 Collins Street
9 Hunter Street                 Melbourne VIC 3000
Sydney NSW 2000                 GPO Box 2117
GPO Box 2100                    Melbourne VIC 3001
Sydney NSW 2001                 Telephone 03 9662 3544
Telephone 02 9299 7022          Fax 03 9640 0849
Fax 02 9232 7559


                                western australia
Queensland                      Level 5, BGC Centre
Level 17, 300 Adelaide Street   28 The Esplanade
Brisbane QLD 4000               Perth WA 6000
GPO Box 2900                    PO Box 5631, St Georges Tce
Brisbane QLD 4001               Perth WA 6831
Telephone 07 3229 9955          Telephone 08 9228 2155
Fax 07 3229 8166                Fax 08 9228 2166

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Women in leadership - Australia

  • 1. Views from the CEDA Women in Leadership series in Victoria SEPTEMBER 2011 Women in Leadership: Looking below the surface
  • 2. women in leadership series and report leads Liz Ritchie, Associate Director, VIC/TAS, CEDA Dr Hannah Piterman, Director, HPCG and Cofounder of Gender Worx about this publication Women in Leadership: Looking Below the Surface © CEDA 2011 ISBN: 0 85801 276 6 The views expressed in this document are those of the authors, and should not be attributed to CEDA. CEDA’s objective in publishing this collection is to encourage constructive debate and discussion on matters of national economic importance. Persons who rely upon the material published do so at their own risk. Designed by Robyn Zwar Graphic Design Photography by Yusake Sato Photography about Ceda For nearly 50 years, CEDA has informed, influenced and raised the standard of discussion about the issues shaping Australia’s economic and social development. We do this by: • publishing independent research and policy analysis • providing a forum for debate and discussion • offering a membership network to people and organisations that value knowledge, insights and ideas in Australia’s best interests. CEDA is an independent not-for-profit organisation. Our funding comes from membership fees, events, research grants and sponsorship. Ceda – the Committee for economic development of australia Level 13, 440 Collins Street Melbourne 3000 Australia Telephone: +61 3 9662 3544 Fax: +61 3 9663 7271 Email: info@ceda.com.au Web: ceda.com.au document sponsors CEDA is proud to partner with the following sponsors for this series: disclaimer CEDA has endeavoured to appropriately acknowledge all copyright material contained in this paper. However, there may be instances where CEDA has provided insufficient acknowledgement or the source was unknown. If notified, CEDA will ensure full acknowledgement of the use of copyright material. Further information and comments Contact: Liz Ritchie, Associate Director VIC/TAS, CEDA Telephone: 03 9652 8405 Email: liz.ritchie@ceda.com.au w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 2
  • 3. Contents Foreword 4 Introduction 5 Overview 6 Recommendations and insights 8 Setting the scene: Understanding the unconscious 9 Insights from the CEDA podium 10 1. Understanding the gender wage gap 11 Alan Duncan, NATSEM 2. Labour force participation 14 Judith Sloan, Fair Pay Commission 3. The power of the irrational 17 Hannah Piterman, HPCG and Gender Worx 4. Understanding barriers 20 Rachel Slade, Westpac Insights from the CEDA Women in Leadership 22 roundtables Insights from industry and government: 26 Three Case Studies 1. GlaxoSmithKline 27 2. PriceWaterhouseCoopers 28 3. South Australian Government 30 w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 3
  • 4. Foreword CEDA is Australia’s leading independent thought leadership organisation provid- ing policy perspectives on the critical economic and social issues facing Australia. Women in leadership is an issue with implications for policy that influences everything from Board membership to gender equality. The following document provides an overview of the key issues raised during CEDA’s Victorian Women in Leadership series during 2010/2011. Reports such as this and other subsequent publications that will emerge from CEDA’s ongoing Women in Leadership series across Australia aim to drive the debate around gender equity, and in turn substantiate the business case for improvements for women in leadership roles. The need for action is indisputable and is also vital if Australia is to meet future skills and labour demand. While this document draws together facts and figures which provide an irrefutable business case for resolving gender equity issues, it also aims to highlight some of the underlying unconscious biases that exist that are often unspoken and are hindering change. By enabling our members to deconstruct this important but challenging issue, CEDA hopes to assist them to map a way forward so they can realise the economic benefits to their businesses, the economy and to society more broadly. This successful Victorian Women in Leadership series has been run in conjunc- tion with Dr Hannah Piterman and the series sponsors ExxonMobil Australia and GlaxoSmithKline. CEDA commends them for this work and thanks all of the con- tributors, presenters and attendees who have participated in this process. Hopefully this report will bring about a deeper understanding of the issue, new insights and possible solutions. However, CEDA recognises that for real change to occur, sustained focus is required and we look forward to continuing our Women in Leadership series, both here in Victoria and nationally. Professor the Hon. Stephen Martin Chief Executive, CEDA w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 4
  • 5. Insights from Industry and Government Introduction w o m e n i n l e a d e r s h i p l o o K i n G B e l o w T h e s U r Fa C e 5
  • 6. Overview Australia is well placed as a leader on the world stage, but in these precipitous times it cannot afford to be complacent. Government and business together must continue to pursue reforms in areas of productivity, competition, regulation and human capital to secure the nation’s talent. Australia’s future and the integrity of these reforms will be thwarted if the market for female talent, particularly executive talent, remains underutilised. Women continue to be underutilised in our organisations, particularly at senior levels. The following questions need to be asked: Why is this so? Is it simply women choos- ing to raise their families instead of climbing the corporate ladder? Is it that women are not given the appropriate opportunities that men who are equally trained or skilled obtain? Or is it something all together less tangible, something unconscious in our minds, lying dormant – a social construction of the female role. It is crucial to keep asking these questions and for CEDA to play an active role in continuing the conversation. We know that Australia is falling behind when it comes to female leadership. Compared with New Zealand, Canada, UK, US and South America, Australia is at the back of the pack with women holding only: • 12.5 per cent of directors in the ASX 200 • 2.5 per cent of chairs • 3 per cent of CEOs • 8 per cent of key executive managers positions, and • 72 ASX 200 companies do not have women on their boards1. A significant number of lobby groups, ASX businesses and state and federal gov- ernments are leading the nation’s impetus for change by demanding transparency, setting targets and developing consultative panels. CEDA commends and supports these levers for change. However, there is more work ahead. Why is CEDA addressing this issue? CEDA has a 50-year history of providing thought leadership and policy perspec- tives on the economic and social issues affecting Australia, through a rigorous and evidence-based research agenda, and forums and events that deliver lively debate and critical perspectives. CEDA has explored gender equity through the Women in Leadership series over the last two years. The economic benefits of addressing the financial disparity between men and women has been proven in numerous studies. One such study undertaken by Goldman Sachs JBWere in 2009 found that closing the pay gap between men and women alone would boost the level for Australia’s GDP by 11 per cent2. As this report suggests, unlocking the female potential and underutilised labour pool is cer- tainly one solution to improving the skills shortage that currently threatens Australia’s continued economic growth. w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 6
  • 7. As an independent organisation, CEDA has engaged business leaders from across government, academia, and the private and not-for-profit sectors to explore the challenges and impediments related to gender equity. This paper is a culmination of the Victorian events of the Women in Leadership series which provided an open platform to explore these issues in all their complexity. The series explored the business and economic case, as well as the cultural factors that contribute to gender inequity. To date the series has included three public and two private forums on the following themes: • Closing the gender gap – the impact on Australia’s productivity • Improving participation in the workplace – opportunities and challenges • Why embracing diversity is good business • Engaging men in the gender debate • Female – speak the unspoken About this paper This paper draws together the views provided by the thought leaders who spoke at the events, case studies that were put forward, and conversations and themes that emerged. It also includes recommendations and insights drawn from discussions at these forums. Hosting a combination of public and private sessions enabled the identification of subtle hidden barriers that sit below the surface. These are not always readily avail- able for scrutiny, but can see women excluded from leadership. Dr Hannah Piterman provides a brief insight into these hidden barriers in the first section of the paper. ‘Views from the CEDA Podium’ shapes the major themes emerging from the Women in Leadership series, with summaries of presentations by keynote speakers. ‘Views from the CEDA Roundtables’ includes direct quotes from the female-only and male-only roundtables that were held to provide a safe setting where the less tangible perceptions that exist in relation to gender at work could be explored. ‘Insights from industry and government’ provides three case studies that offer examples of how organisations have initiated reforms, confronted culture and paved the way for the retention and recruitment of women. Issues relating to gender equity are not new to the reform agenda. What has changed, or appears to have changed, is the breadth of the debate and the lens through which business and government view the issues. Through the ongoing Women in Leadership series, and reports such as this, CEDA aims to elevate the debate, and in turn the business case, in a way that enables its members to deconstruct the issues behind gender equity and realise the economic benefits to their businesses and to society more broadly. We welcome the dialogue that this paper generates. w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 7
  • 8. Recommendations and insights Throughout CEDA’s Women in Leadership series, thought leaders and participants provided a range of recommendations and insights, including strategies, actions and techniques for improving an organisation’s gender equity outcomes. While some of these ideas will take a long time, others can be implemented readily, the underlining result should be that they provide realistic solutions. Create the business case 1. Lead by example and lead for the future. Leaders need to understand that this “Leaders need to is a journey; it will take resilience and commitment to bring about change and it understand that must be driven from the top. this is a journey.” 2. Good debate stems from good information which can drive change. Organisations need to take an evidence-based approach to understand the metrics and data within their own business, whether it be small, medium or large. Do an internal audit. Be realistic and transparent about the gender balance, lead- ership pipeline, retention and the pay parity within the business. 3. Set realistic targets and report on progress. The ASX amendments to corporate governance principles are very important steps in propelling the gender debate onto the agenda of board rooms. With this in mind all businesses should be creat- ing and implementing their own policy and strategy or run the risk of being left behind. 4. Build the talent pipeline. With females graduating at a higher rate than males, building the talent pipeline by increasing opportunities for women throughout their careers is critical for organisational success in the future. Cultural change 1. Understand the nuances and culture that exist ‘under the surface’. This can be a challenging and threatening experience. Using the evidence-based approach reduces the likelihood of defensiveness and blame. However, it will uncover issues that may be uncomfortable to face. An acceptance of this at the beginning needs to be understood and widely communicated. 2. Leadership will need to ensure a safe setting. Encourage men and women to have honest conversations. Gaps will undoubtedly be found between the organisa- tion and employees’ perceptions on issues relating to equal opportunity, including career opportunity, leadership and flexibility. 3. Rethink existing or hidden norms. Challenge norms that perpetuate cultures of discrimination such as the ‘Imposter Syndrome’ (women feeling out of place in leadership roles). 4. Abandon the fear of being marginalised or recriminated against. Cultural change will never occur if fear takes hold. 5. Celebrate change. Build momentum and communicate these celebrations through newsletters, intranets, presentations and annual reports. w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 8
  • 9. Workplace actions 1. Understand the longer-term return on investment. Organisations need to allo- cate funding to this change and understand the longer-term financial implications of the return on investment for the future. Internationally, companies are investing significantly on diversity initiatives. It was reported that $8 billion annually was invested by the Fortune 100 in the US.3 If Australia is serious about improving its international ranking, we need to invest for change. 2. Discuss workplace practices. For example, implement an internal policy that ensures all critical meetings are within the school hours of 9am and 2.30pm. 3. Every employee has different needs. Providing multiple workplace flexibility options is an imperative to strong female, and increasingly male, retention. 4. Innovation is paramount. Create the right balance between the individual needs and the organisation’s needs – this is an opportunity to create a new paradigm for work. 5. Softwiring. Provide role modelling, advocates and change agents. Understanding the unconscious: setting the scene “Gender biases by HAnnAH PITErmAn lead managers to view talent in Dr Hannah Piterman explores a recurrent theme of the Women in Leadership series – how unconscious bias, or intangible cultural dynamics, can undermine predetermined change in organisations: ways.” Research continues to show that while organisations are increasingly taking elaborate steps to embed values of meritocracy and transparency in their work practices, they find their initiatives can be thwarted by intangible cultural dynamics. These cultural dynamics sit outside the realms of the rational and the strategic. They are often ambiguous, highlighting a deep tension between those rational elements in busi- ness that promote equality in the workplace and the non-rational that see women under-represented and underpaid. Much sits in the domain of the unconscious, is subliminal in its expression and it is held onto despite logical argument and facts. According to Harvard researcher Audrey Lee4 unconscious bias is a form of dis- crimination that is specifically tied to the human cognitive process for receiving and storing information. Researchers have demonstrated that individuals tend to process incoming information by relying on cognitive shortcuts – in essence, stereotypes. Gender biases lead managers to view talent in predetermined ways, and make deci- sions based on these predetermined views leading to inequity and loss of current and future capability. Unconscious bias is quite prevalent, often in sharp contrast to the way individuals perceive their view of themselves. Throughout this paper, and particularly within the private discussions, numerous thoughts and quotes exhibit the described unconscious bias. Understanding what it means can equip organisations to challenge it and pursue new models of thinking. w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 9
  • 10. Insights from the CEDA podium 1. Alan Duncan, nATSEm 2. Judith Sloan, Fair Pay Commission 3. Hannah Piterman, HPCG and Gender Worx 4. rachel Slade, Westpac w o m e n i n l e a d e r s h i p l o o K i n G B e l o w T h e s U r Fa C e 10
  • 11. Professor Duncan became the Director at Professor Duncan became the Director at NATSEM in early 2010, after leaving his NATSEM in early 2010, after leaving his previous position as Professor of previous position as Professor of Microeconomics and the Head of School Microeconomics and the Head of School at Nottingham School of Economics, at Nottingham School of Economics, University of Nottingham. University of Nottingham. 1. Understanding the gender gap and its implications Professor Alan Duncan Professor Alan Duncan, Director of NATSEM, discusses NATSEM research that explored the reasons behind the gender wage gap and the links with economic growth. w o m e n i n l e a d e r s h i p l o o K i n G B e l o w T h e s U r Fa C e 11
  • 12. NATSEM research on gender wage differentials in Australia has attempted to identify the job or work characteristics that can explain at least a component of gender differences, and which gender differences remain unexplained. A recent AMP.NATSEM report5 shows that women are more educated than ever before, with a 10 per cent increase in labour force participation in the last 20 years. While greater employment in professional occupations has brought about better equality, there are still massive divisions in income, in wealth and superannuation, in unpaid work and in representation at senior levels. The wage gap The figure often sighted in relation to the raw average earnings gap between men and women is 17 per cent6. However, the story is far more complicated than this. The wage gap figures alone do not demonstrate the level of discrimination and therefore a deeper review of the data is required. Wage gaps can be explained by different work-related characteristics, different occupational choices, labour market patterns and histories between genders. There are also factors of choice – either guided or forced choice – that exist. Women perhaps disproportionately select employment with lower financial returns and, while this may be a behavioural choice, it is fascinating to consider that behaviour may in fact be conditioned by gender norms and attitudes. Logically, the differences between men’s and women’s wages can in part be due to different characteristics or “...the more senior a female becomes, attributes, alongside other aspects such as selection or choices in occupation, industries and job types – other- the higher the gap in wage patterns.” wise described as human capital characteristics. A study by NATSEM researchers Rebecca Cassells, Yogi Vidyattama, Riyana Miranti and Justine McNamara7 for the Australian Government Office for Women sought to strip away these job-related characteristics and worker attributes from the raw wage differential. Explaining the pay differential Vocational qualifications, firm size, labour force history differences in terms of time in paid work, tenure of current occupation, and industry segregation of selecting into gender specific industries hold some explanatory power. However, the overarching finding is that the majority of the wage differential is explained by being a woman or by being a man. If this data is taken a step further to create equal or equivalent characteristics and job-related attributes between men and women, it found that about one-third of the pay differential could be explained. Therefore, the stark and overwhelming statistic that lingers is that for the remaining 60 per cent or more which is unexplained, there is no logical reason for the wage differential. Given the study shows that being a woman exerts a negative influence on average patterns of pay, what does this mean? The reality is there is much more to the story than just looking at average wage differences. w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 12
  • 13. Where in the distribution of income and the distribution of earnings is the differential at its greatest? It may be that the average wage gap stems from particular or spe- cific discrepancies at different points in the earning distribution or different levels of seniority. In another study undertaken by Juan Barón and Deborah Cobb-Clark8 and published in the Economic Record, gender wage gaps among lower paid workers could be largely explained by job-related characteristics. However, when compared with higher-paid workers in either the private or public sectors, more substantial cir- cumstances emerge. In the private sector, the gender wage gaps are only partially explained by job-related characteristics. In the public sector, it appears that virtually none of the wage gaps are explainable. From this evidence it could be asserted that across the workforce areas of seniority hold more cause for concern. Female managers Research conducted by Ian Watson9 in the Australian Journal of Labour Economics and Hiau Joo Kee10 in the Economic Record also looked at unexplained gender wage differences. Both their findings concur with the pattern that the more senior a female becomes, the higher the gap in wage patterns. Watson discovered that female managers in full time employ- ment earn 27 per cent less than their male counterparts and that between 65 to 90 per cent of this differential is unexplained by job-related characteristics. He also reported on the evidence of a plateau in regards to labour market experience and, from that, postulated the ongoing existence of the glass ceiling that prevents progression from middle to senior management for females com- pared with males. “... a reduction of the gender Overall Watson’s analysis found that an $18,500 difference in gap of around one percentage remuneration exists. He looked at how this wage difference could point could increase GDP by be closed if female characteristics were conferred upon men, including labour market experience, hours worked and equalising around $4.4 billion.” the returns to different family characteristics. In fact, it only con- stituted a fraction of the $18,500 difference in remuneration. The most important element in equalising the differential was for a woman to become a man, which would contribute around a $12,500 difference in wages for females. Kee’s work reiterated the pattern that wage gaps for lower-paid workers could be explained by job-related characteristics. However, the greatest unexplained gap occurred moving up the earnings distribution from the 75th to the 95th percentile, with the greatest difference in private rather than the public sector. The evidence leads to questions about the longer-term economic impacts for Australia. The NATSEM Office for Women report sought to establish relationships between the gender wage gap and economic growth. Although the authors acknowledge that their findings are limited by not taking into account women’s unpaid contribution to the economy, there are nevertheless some indicative patterns that emerge in the analysis. It suggested a reduction of the gender gap of around one percentage point could increase GDP by around $4.4 billion. w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 13
  • 14. Judith Sloan was appointed as a non- executive director of Westfield Holdings Limited and is a board member of the Lowy Institute. She is also a Honorary Professorial Fellow at the Melbourne Institute of Applied Economic and Social Research at the University of Melbourne. 2. Labour force participation Professor Judith Sloan Professor Judith Sloan, Commissioner with the Fair Pay Commission, discusses the change in female labour force participation over time, and whether increased participation can contribute to higher labour productivity. w o m e n i n l e a d e r s h i p l o o K i n G B e l o w T h e s U r Fa C e 14
  • 15. It’s interesting to think about how Australia compares in terms of female labour force participation and how this may have changed overtime. Does higher female labour force participation contribute to higher labour productivity? Overall Australia ranks reasonably well, behind New Zealand, Canada and Switzerland. Chart 1: aUsTralia ranKs preTTy well in Terms oF overall worKForCe parTiCipaTion % 70 60 OECD Average 50 40 Turkey Iceland NZ Canada Switzerland Australia US Norway Sweden Netherlands South Korea Portugal Ireland Finland Austria Slovak Republic Czech Republic Mexico Germany Spain Luxembourg France Poland Greece Belgium Hungary Italy Japan UK Denmark Source: Source: Abhayaratna, J. and Lattimore, R. 2006, Workforce Participation Rates – How Does Australia Compare? Productivity Commission Staff Working Paper, Canberra (Page XII) In the younger age groups Australia ranks well in labour force participation. It is believed this is due to the prevalence of education and work, and the combination of both. Interestingly this is not as common elsewhere in the world. The issues arise in the prime age bracket of 25 to 54 years of age, where Australia ranks quite poorly on the international scale. Female labour force participation has increased, and while we still have low par- ticipation during the child bearing years, it has also slowly increased as Graph 2 indicates. Chart 2: CoUnTry-speCiFiC worKForCe parTiCipaTion raTe Gaps By Key laBoUr marKeT seGmenTs, 2005 Prime-aged Males Child Bearing Females People Nearing Retirement % % % 93 80.0 72 +7.1 +15.2 +1.4 77.5 67 92 75.0 62 +7.1 +0.4 +2.3 91 +0.9 72.5 57 +2.6 +2.1 90 70.0 52 NZ Canada Australia Canada US UK Australia NZ US UK Canada Australia Source: Abhayaratna, J. and Lattimore, R. 2006, Workforce Participation Rates – How Does Australia Compare? Productivity Commission Staff Working Paper, Canberra (Page XIII). Data sources: Based on ABS (2006C, 2006d); CIA (2006); EOWA (1998); IISS (2006); OECD (2006c); UN (2005a, 2005b) and USCB (2005). w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 15
  • 16. What is evident is the major increase in the participation of older women. There are in fact two effects: one, the cohort effect where women are much better educated than their mothers and are continuing to participate; and two, an increase in participation from women who are beyond the cohort. In the past, Australia was dismal in realising older female participation, but now we are above the OECD average. Chart 3: laBoUr ForCe parTiCipaTion, older men and women, 1979 To 2009 % 90 80 Sweden New Zealand 70 United States Canada Australia 60 OECD countries 50 40 30 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 YEAR Source: OECD Another interesting participation factor is part-time employment. Australia is the champion of this. In Australia, over 40 per cent of employment is part time and this could arguably be due to flexibility in the labour market. Interestingly, even the male percentage of part-time employment is high in comparison to OECD standards. Interestingly, and contrary to popular belief, producing an environment that is conducive to more female participation will result in a lower skilled and less experienced work force which will reduce productivity – in the short term. Does this mean we should not take action? Certainly not, as the longer-term results would certainly produce a different outcome. Currently, women who choose to stay in the workforce do so for rational reasons as they are seeking a return on their skills and experience. From this we could question the focus with which Australia chooses to pursue its increases in participation. For example, ensuring that we maximise “What is evident is the underutilised skilled talent that is currently lying dormant. What we do know is that female participation is growing, particularly among older the major increase in women, and this may be a constant trend for years to come. the participation of older There is an interesting story sitting behind all of this information in the women.” choices couples are making. Does he take the high risk and she takes the low risk? Perhaps this is a sensible choice to make as a family, but logically speaking if women have chosen the low-risk occupation, with low returns, this will inevitably show up in the wages gap. This is something to think about and consider as a whole. w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 16
  • 17. Professor Duncan became the Director at Dr Hannah Piterman is the Director of NATSEM in early 2010, after leaving his Hannah Piterman Consulting Group and previous position as Professor of Co founder of Gender Worx. Hannah Microeconomics and the Head of School authored ‘Unlocking Gender Potential: A at Nottingham School of Economics, Leader’s Handbook’, which was University of Nottingham. published in 2010 and has contributed immensely to this topic through reports and journal articles. 3. The power of the irrational Dr Hannah Piterman Dr Hannah Piterman discusses why, despite the business case for gender equity being clear, this remains a complex issue and looks at the changes needed. w o m e n i n l e a d e r s h i p l o o K i n G B e l o w T h e s U r Fa C e 17
  • 18. Despite the clear business case backed by extensive research that has aligned improved financials and healthier, more positive cultures with the increase of women at senior ranks, the gender parity chasm still exists. Not only are women excluded from the leadership table, but they are held to account for being women. The business case for gender equality is clear but the solutions are complex. Gender diversity is by no means unanimously accepted as a strategic priority. Perceptions of its importance vary, particularly between men and women. Recent worldwide research published in the Harvard Business Review by Bain and Co.11 found that 80 per cent of women and only 48 per cent of men believe that gender parity should be a critical business imperative. Sixty-six per cent of men believe that women have equal opportunity to be promoted to leadership and gover- nance positions, yet less than a third of women agreed. Competing messages So we have competing messages. One that recognises women are smart, capable and committed and that business cannot afford to squander scarce and talented female resources. The other messages are subtle, perhaps unconscious, and deeply embedded in an organisation’s DNA. These messages are based on a belief system that meritocracy exists and that women who have not succeeded have only themselves to blame. The resulting dynamic sees women having to prove that they are extraor- dinary. That they are without needs or demands, and that they are unencum- bered by family in order to avoid being sidelined as less ambitious, as not having the prerequisite experience and of not wanting to commit. The well-documented wage gap is testament to the fact that women are “The business case for gender equality is clear but expected to be selfless, while self- the solutions are complex. “ orientation and competitiveness are accepted in males. Female authority As a society, we still struggle with the notion of female authority. Women who are seen to step outside a stereotypical female paradigm can engender rage in others, both male and female. There are many extraordinary women who continue to achieve extraordinary things. However, as long as being extraordinary remains the tacit prerequisite by both men and women for women’s entry into leadership, senior ranks will remain populated by men. It is undoubtedly a cultural problem and therefore cultures need to shift for female authority to thrive. w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 18
  • 19. Changes needed First, the rationale needs to be ramped up from important to urgent and a cogent business case prepared. The ASX amendments to the Corporate Governance Principles are an important step. However, unless the impetus is complemented by culture change in organisations, women will choose with their feet. Second, business needs to take an evidence-based approach and seek metrics that can guide strategy and interventions for dealing with the issues. Companies invest significantly in diversity initiatives. For the US it is estimated to be in the vicinity of $8 billion annually for Fortune 100 companies12. However, investment has not made significant inroads into the number of women in senior executive positions. The right levers are not being pulled. A sound measurement basis provides a strong lever for change. Third, leadership needs to respond to the evidence and take action. For example, strategies that address the paucity of women in line roles will not become effective for some time as organisations address pipeline blockages that see an aggregate of only 4.1 per cent of women in line roles. However, a decision to make all core strategic meetings between 9am and 2.30pm could be implemented immediately. Fourth, leadership needs to ensure a safe setting that encourages men and women to examine hidden norms without the fear of marginalisation or recrimination. While an evidence-based approach reduces the likelihood of defensiveness and blame, the process will surface uncomfortable issues. It may highlight gaps between the organisation as a fair-go employer and the way employees perceive the organisation’s commitment to equal opportunity. Fifth, it goes without saying that a budget is needed to ensure that action is taken to address issues that emerge from the data while acknowledging that Rome wasn’t built in a day. “Gender is a strategic and risk Sixth, business needs to challenge norms such as the long-held belief that flexibility and management issue – not a women’s seniority cannot be aligned. Some organisa- issue...” tions have found creative options to deal with structural impediments. Finally, business needs to accept that change occurs incrementally and imperfectly, and therefore needs to commit to the long haul. Equivocation, particularly during difficult times, sends a strong message that can undo progress. Gender is a strategic and risk management issue – not a women’s issue – and organisations that are successful in reducing gender parity will be the new winners. w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 19
  • 20. Professor Duncan became the Director at Rachel Slade is Westpac’s Head of NATSEM in early 2010, after leaving his Diversity and Flexibility, a Group Centre previous position as Professor of of Excellence focused on delivering a Microeconomics and the Head of School diversity strategy across all Westpac at Nottingham School of Economics, Group brands. University of Nottingham. 4. Understanding barriers Rachel Slade Rachel Slade examines some of the barriers and what is needed for long-term sustainable change. w o m e n i n l e a d e r s h i p l o o K i n G B e l o w T h e s U r Fa C e 20
  • 21. Like the rest of corporate Australia and in particular the financial services industry, Westpac is struggling to deal with the issues of women in senior leadership, except of course at the very top. Westpac has a proud history of taking action to make a positive difference for women. To reference a study by FINSIA that provides a powerful message: When asked: “Is it almost impossible for women to progress to executive level in such a male-dominated cluster of the financial services industry”, 61 per cent of women agreed and 85 per cent of men disagreed. When it comes to perceptions of opportunities for women, this kind of gender divide is not uncommon. The majority of decision makers in this industry and in corporate Australia today are men. The corporate fabric of the organisation has been woven by men and unwritten rules have been framed by men. So with this in mind it is not surprising that barriers aren’t transparent or overt. Here are some that we know exist and we are cognisant of their implications: maternal wall: A description used to explain the issue of women not being approached for opportunities because somebody is making a deci- sion in their best interests. The phrases too often are: “She won’t want to travel because she has young children”, “the hours in that role are too long”, “she won’t move to Melbourne because of her commitments”, and “she’s just too pre-occupied with her wedding next year to be interested”. It can sound ridiculous, but when people (both men and women) discuss the maternal wall the facial expressions acknowledge the guilt. Organsiations and leaders need to question both stated and unstated assumptions about what is good for women and/or what women want. To tap female potential organisations need to engage with the female workforce. The hour glass ceiling: Finding the balance between paid and unpaid work and that unpaid work is largely about caring. Women do invariably take on a large share of the caring and nurturing role, whether that be their children, the household and increasingly their elderly parents. Displaying ambition: Women and authority - how do we as a business society accommodate a different face and style of leadership? How do we remove the perception of the double bind women face: too aggres- sive if they behave in an ambitious manner and too weak if they are communal and collaborative? Assumptions about what women want, need to cease and questions need to be asked at various stages of their career. Businesses need to support creating valid and alternative models of career progression. Hardwiring: Achieving long term sustainable change takes an approach that combines focused interventions like targets, with critical elements “…The corporate fabric and drivers for soft wiring cultural change. Some examples of hardwiring include targets and policies. Examples of softwiring include storytelling, of the organisation has role modelling and creating a grass roots community of advocates and been woven by men and change agents. Supporting communication with some fundamental principles is impor- unwritten rules have been tant – this is about equality of opportunity, for the full talent pool. Not framed by men.” about opportunity at any cost. w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 21
  • 22. Insights from the CEDA roundtables As part of the Women in Leadership series, CEDA held two roundtables – one with women only and one with men only – to try to distil some of the less tangible perceptions that exist. The experience provided a unique opportunity for business leaders to hear and discuss some of the nuances that exist in a safe setting. w o m e n i n l e a d e r s h i p l o o K i n G B e l o w T h e s U r Fa C e 22
  • 23. Regardless of the facts and figures of this debate, underneath are the feelings, experiences, mindsets and biases. The higher the level of awareness of these perceptions, the greater the oppor- tunity for renewed insight and understanding. Some thoughts and opinions from the sessions are included below to provide insight into some of these underlying issues. From the female perspective Women’s role in society “There is a question about space for talking and communicating these issues in a male-dominated world. There is a travesty of culture which means you have to fight between picking up your children from school or being at work. So I believe Australia is a conservative society with a massive gender segregation, which goes across all industries.” “There is a travesty of culture which means “There is a whole-of-family challenge, more you have to fight between picking up your predominant in different ethnicities. However, children from school or being at work.” the gender roles that men and women play are still very real today. There is pressure from family and friends believing you should play a certain gender role. You are made to feel guilty for going to work, for leaving your children and it’s assumed that someone else is raising your children. This is an enormous emotional and mental hurdle to overcome.” “Women stand out more because the culture is one of male entitlement, and that is the norm. Women who stand up to men are seen as being ultra-feminist and feminism can be used in a derogatory way.” “I was the only female on the executive team and I’ve had comments like ‘It’s those bio-rhythms again’.” “Australia has had a culture which enabled one bread winner and this is the genesis of all those 50s type expectations of one feeling inadequate. Even though this is not realistic we still have this image.” How women feel about other women “Women who “I can sometimes be fearful of women who are manipulative and yet men who behave the same are not deemed manipulative, they are stand up to men deemed as influencers. Why is this so?” are seen as being “There is unconscious behaviour in organisations; it’s rife, an under- lying anger towards other successful women. Women are really ultra-feminist and angry with other women and they don’t like that female authority.” feminism can “As a minority in a competitive culture, women are often pitted against each other. It’s natural to want to be the best woman in the be used in a room. However, this engenders competition.” derogatory way.” “There is no support from our own sisterhood; basically women are criticising women.” w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 23
  • 24. From the male perspective men on women in leadership issues “This issue is a major social equity argument but even with the ever increasing evi- dence that suggests a stronger business and economic argument to create more diverse senior ranks and boards in Australia, it still seems incredibly hard. Why is this so? Why do our metrics lag behind the rest of the world? This is what puzzles me and both genders have a responsibility.” “One of the challenges to inequity is trying to understand the more subtle dynamics in the relationship between men and women in the workplace. There has been much attention placed on the provision of maternity leave, childcare and crèches, “As a minority in a the more tangible aspects. However, (there is) not enough discussion about the intangible aspects of the workplace and the sorts of cultural and interpersonal rela- competitive culture, tionships that exist.” women are often “There is a perception that men can exude a natural aggression, it’s needed to do these jobs, you need to be pushy. If a female does this, it’s almost unnatural, pitted against each whether it comes with the voice, the tone, the body language and everything else. other.” I can reflect on a past senior colleague who used to come across as excessively aggressive or tense but upon reflection I can see it was simply her trying to find her voice.” “It can be intimidating for women to speak up around men, especially ‘big men’ with ‘big voices’. The presence alone can create anxiety that alienates the minority, being the female, who in many cases are smaller in stature and quieter in vocal delivery. We need to lift women’s confidence and we need to help them speak up and find their voice.” men on unconscious bias “There is a perception that men can “There are subtle sexual tensions that exist between exude a natural aggression...if a female men and women, we all have relationships in our lives which are gender based and the workplace does this, it’s almost unnatural.” is simply another environment, but indeed a more complex one. I admit to having had a tendency towards employing more attractive women, not simply more physically attractive, also more attractive personalities.” “Whilst unconscious bias is now a big conversation, we need to be realistic and not allow bad behaviour to be deemed as unconscious. Let’s not pretend that con- scious bias is not present; there are definitely still stereotypical attitudes that we men and women are guilty of holding.” What men think women think “Women get to the point where it’s just too hard and they have had enough. Balancing work and life is too difficult and therefore it’s easier to move into the small to medium size market that is more flexible. The opportunity loss for talented women is enormous.” w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 24
  • 25. “Women are more likely to feel the imposter syndrome, which effectively means I am sitting here in this meeting but I don’t belong here. Often they fought really hard to be there but when they look around they don’t really belong. I’m at the table but I am an imposter.” “I’ve seen women get to senior positions and they are often harder on women coming through, certainly harder than their male counterparts. Is it because they broke through the glass ceiling and now they have a right to be extra critical of those trying to forge the same path? Why is it that women seem to be the harshest judges of women?” “Our firm has been particularly proud of its achievements with women. However, we are seeing a fall off from where we have been. Many women who have been promoted are “Why is it that women simply saying, ‘I do not want this’. Interestingly, we are also seeing a rise in Beyond Blue statistics in depression levels seem to be the in men. Perhaps there is something in the role we expect harshest judges of our executives to take on and the environments with which they participate which is fundamentally flawed. Perhaps women?” women are being smart and men go on suffering.” What about the baby boomers? “Another issue males need to understand is that baby boomers are still in charge and they don’t understand women as much as they think they do. An example of this is a baby boomer CEO of a top 10 company a few years ago was about to hire a woman into a position one below him. The woman confided in the recruiter that she was pregnant and the recruiter informed somebody in the organisation who ultimately informed the CEO. The whole process nearly collapsed except a 39-year-old man at the time said, ‘This is ridiculous, that’s fine, I’ll hire her’. The interesting part is the 58-year-old CEO had absolutely no intention of hiring her, this was a deal breaker. I think baby boomers are really struggling with issues that the next generation are not struggling with as much.” “...baby boomers are still in charge and they don’t understand women as much as they think they do.” Do we need to moderate “maleness” in organisations? “I did experience through my career macho characteristics being exhibited. What is it to be male? The mateship idea of squeezing people out who weren’t particularly interested in football or didn’t want to go to the pub after work. There is a much greater need to be culturally sensitive and we could all admit that these character- istics are still alive and well today and you have to ask, is this how it’s supposed to be?” “Perhaps there is something about our boardrooms that reflects what men are used to, such as the behaviour on football fields, behaviours we developed earlier in our childhood as boys.” w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 25
  • 26. Insights from industry and government Three case studies: 1. GlaxoSmithKline 2. PriceWaterhouseCoopers 3. South Australian Government w o m e n i n l e a d e r s h i p l o o K i n G B e l o w T h e s U r Fa C e 26
  • 27. 1. GlaxoSmithKline Australia Deborah Waterhouse, Vice President and General Manager, Australia and New Zealand At GSK there is a strong economic rationale for attracting and retaining talented people, alongside a very strong business rationale. Supporting employees to find the right balance between their work and their personal lives is paramount, and GSK has created a number of policies that support this commitment. All GSK staff can apply for alternative work arrangements, including: • job sharing • reduced hours or school hours • part time work • work from home and from office scenarios • purchase of additional annual leave • taking a career break • retirement wind down In addition, GSK has a Corporate Family “History has proven Program – an online portal where employ- ees can find child care services, babysitters, the best teams are access parenting resources, and find out not dominated by about free onsite parenting seminars. This program is geared for both men and one gender…” women. GSK also runs health and resilience programs, and parental leave is an option for both men and women. In 2010 and 2011, GSK was awarded Employer of Choice for Women by the Equal Opportunity for Women in the Workplace Agency. GSK set a very clear strategy for the business in 2008 to ensure success. One of the pillars within this strategy was ‘fostering individual empowerment’, where an individual employee value proposi- tion is developed. The strategy, GSK in Balance, essentially means striking a deal between the needs of the employer and the needs of the employee. Today the GSK executive team is 50/50 – five men and five women. History has proven the best teams are not dominated by one gender and the breadth of thinking and range of perspectives that emerges from this team is absolutely invaluable. Women have the greatest opportunity to exercise authority as authentic and unen- cumbered leaders when there is a critical mass. w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 27
  • 28. 2. PriceWaterhouseCoopers With 6,505 employees, and an average employee age of 32 years old, the people agenda is a critical part of our firm’s strategy – to ‘ignite a behaviour led culture to live the strategy’. Diversity is also imbedded in the PwC corporate responsibility strategy – we believe that a positive workplace culture which supports diversity and wellbeing is paramount to delivering high performance, innovation and agility in the marketplace. PwC’s diversity strategy has seven dimensions Our aspiration is to create an inclusive workplace that embraces the diversity of our people and supports them to achieve their personal and professional goals while enhancing business performance. In order to support this aspiration, we focus on creating an awareness of how unconscious bias can impact the decisions we make. PwC’s current approach to transformation is based on a ‘positive (dis)Ability change construct’ (a process adapted from ‘Appreciative Inquiry’ by Fran J. Barrett & Ron E. Fry). In this regard, we seek to create Flexibility & Religious individual beliefs change by understanding and leveraging the strengths of our choice organisation in addition to addressing the deficits. The focus shifts to the solution rather than the problem. In adopting this Perspectives and model we have started to see positive results in the retention Capabilities of talent, increased engagement, increase in people working Age flexibly and an increase of women in leadership. Cultural Three years ago the firm took a fresh look at our whole diversity strategy and our female population, in an effort to understand the root cause behind our challenges in this space. The research Gender Sexual explored two key themes: orientation 1. Why was the pipeline leaking from senior manager (49 per cent women) to director (39 per cent women) to partnership (17 per cent women)? 2. With a strong parental leave return rate, why were women leaving within 12 months of returning to PwC? The causal analysis uncovered the following challenges: • More men were being tagged as potential talent for the leadership pipeline • Part time work was offered but it had very little flexibility • Leadership development courses were often held off site or in a residential capac- ity, a model not suitable for all staff members Applying the ‘positive change construct’ approach, we consulted a new audience of women who had succeeded to reach partnership level and women who had returned and chosen to stay at PwC beyond 12 months. Our research uncovered something very different than what we had seen before. Every female that had made partner at PwC had a sponsor – an advocate. Coincidentally, the sponsor was male in every case. Secondly, the staff returning and remaining after parental leave worked flexibly, not within a tight part time regime. w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 28
  • 29. They tapped into a variety of sources to achieve the desired flexibility (purchasing additional annual leave, utilising an emergency nanny service and working flexibly to balance personal and client commitments). Equipped with this knowledge, a new strategy was designed starting with leadership, and formed part of our employee value proposition. It built a point of differentiation in “…we focus the marketplace for graduate intakes and clients. There was an intentional focus on understanding bias and building awareness as outlined below: on creating an The new strategy includes specific programs: awareness of • Growth Mindset – leadership development programs based on research by Carol how unconscious S Dweck, Ph.D and world renowned psychologist at Stanford University. bias can impact • Building Female Leaders – designed for senior managers and directors. The program builds the mental and emotional capacities that underpin the wellbeing the decisions we and success of women in senior roles. make.” • Sponsoring Women – designed for our partners. The workshop focuses on spe- cific strengths-based approaches to one-to-one interactions and sponsorship roles as well as the science of gender differences in thinking, decision making, stress response and reactions. • Redesigning part time work – shifting language from part time fixed hours to flex- ible hours, transition that matches workload. • Inspiring Market Leaders – designed for partners and principals. This two-day workshop takes an outside in approach to our culture work, starting with the needs of our clients to help shape where we focus and how we lead our teams. The output is a network of change agents across the firm who then continue the behavioural change journey in their business units. • Harvard Implicit Association test – staff recommended to undertake this 15 minute test to aid conversation around cognitive bias. Results: • 87 per cent of our people are proud to work at PwC • 84 per cent believe PwC is an inclusive work environment where individual differ- ences are respected and valued. Chart 2 The Gender shiFT in pwC These are some of our milestones and achievements 2008 2011 Representation Partner admissions 14% are female 41% are female Returning parental leavers 87% 91% Parents leaving within 12 months of return 24% 16% Sponsorship Key talent women with a sponsor 10% female Key Talent 65% female Key Talent Formal male sponsors no formal data 54% sponsors Flexibility Purchasable annual leave 4 weeks 12 weeks Paid parental leave 14 weeks 18 weeks Work flexibility 8% 49% Source: Diversity & Inclusion Survey 2010 w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 29
  • 30. 3. South Australian Government Warren Maccan, Commissioner for Public Sector Employment, Office for Ethical Standards and Professional Integrity, Department of Premier and Cabinet South Australia can boast that it is the leading Australian state for the highest number of female executive positions in Australia. Within the SA Government Strategic Plan is a target: 50 per cent of the public sector executives to be women by 2014. The public sector in SA is the largest employer in the state with approximately 100,000 staff. Of that figure, 1,200 are classified as executives. Experience had shown over time that the traditional arguments for change around equity and the glass ceiling were falling on deaf ears and decision makers were becoming quite cynical. Therefore, the need for the business case became clear and it was this that helped provide a bridge for change in SA. In 2003, only 29 per cent of the SA female workforce held executive level positions. In October 2010 that had jumped to 42 per cent. So how did this happen? What was the business case for change? The key components of the business case included: Graduate talent Over the past 10 years almost 60 per cent of Australia’s graduates were women, and with the number of female graduates growing at twice the rate of male graduates, the pipeline is clear. These numbers are not due to more predominantly female oriented courses, such as nursing or social work; females also outnumber males in natural and physical sciences, and management and commerce, among other courses. Chart 1: aUsTralian sTUdenTs award CoUrse CompleTions By Gender, 1997 To 2008 % Male Female 60 50 40 30 20 10 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 YEAR Source: Department of Education Employment and Workplace Relations Higher Education Statistics 2008 – Table 2 Award course completions for all students by citizenship and gender, 1997-2008 w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 30
  • 31. The poignant relevance for the SA Government was to consider that a very large pro- portion of executives will ultimately come from the graduate pool of talent. Therefore, it does not make good business sense to be appointing less than 50 per cent of our executives from the pool that is largest and clearly growing. Female executives and performance of boards “…traditional The next component to consider for the business case was the link between female arguments for executives and performance. There is an immense amount of international research on this question but the following referred to here is from Catalyst in the United change around States. equity and the glass The graph below measures the performance of boards of US Fortune 500 compa- ceiling were falling nies with more women. It shows that boards with a greater number of female board directors outperform on all three results – return on equity, return on sales and return on deaf ears…the on invested capital. need for a business case became Chart 2: Board diversiTy resUlTs clear…” Return on equity by female Return on sales by female Return on investment capital by representation on the board representation on the board female representation on the board Companies with more women Companies with more women Companies with more women outperform those with the outperform those with the outperform those with the least by 53% least by 42% least by 66% ROE ROS ROIC +53% +42% +66% 9.1% 13.9% 9.7% 13.7% 4.7% 7.7% BOTTOM TOP BOTTOM TOP BOTTOM TOP QUARTILE QUARTILE QUARTILE QUARTILE QUARTILE QUARTILE WBD WBD WBD WBD WBD WBD Source: Catalyst 2007: US Fortune 500 Companies We know women make up half the workforce entrants, but by the time they reach executive level, the proportion has fallen to 10.7 per cent, while only two per cent get to sit in the CEO’s chair. Cost impact Women are leaving the SA public sector at a younger age than men, and every time an experienced female member of the executive feeder group leaves it costs $140,000 in recruitment and training to replace them. w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 31
  • 32. Dollars spent on training and development Given the composition of the workforce is 50/50, it is more than unjust – if not inequitable – to see the statistics below. One can see why females might become “…every time an disenfranchised with pervading cultures. experienced female Chart 3: member of the ToTal TraininG and developmenT By Gender adminisTraTive UniT employees JUne 2009 executive feeder $ Millions 30 group leaves it 25 Male Female costs $140,000… 20 to replace them.” 15 10 5 0 $1–$47,999 $48,000–$60,999 $61,000–$78,199 $78,200–$98,499 $98,500+ Total SALARY BANDS Source: Workforce Information Collection Data (WIC) June 2009 Understanding this content has helped build the business case which has been used to improve the SA story. Using external benchmarks has been a driver for internal organisational change and building the business case for gender parity within the SA Government. Paramount to achieving change is driving it from the top. Endnotes 1 EOWA Gender workplace statistics at a glance, July 2001, Quarterly 2 Goldman Sachs JBWere Investment Research, 2009; Economics – Australia’s Hidden Resource: The Economic Case For Increasing Female Participation 3 Duehr, E. & Bono, J.E. (2006). Men, women, and managers: Are stereotypes finally changing? Personnel Psychology, 59, 815-846. 4 Audrey J. Lee, Unconscious Bias Theory in Employment Discrimination Litigation, 40 Harvard Civil Rights-Civil Liberties L. Rev. 481-503 (2005) 5 Australian Bureau of Statistics (ABS 2009) 6 Rebecca Cassells, Riyana Miranti, Binod Nepal and Robert Tanton (2009). ’She works hard for the money: Australian women and the gender divide’, AMP.NATSEM Income and Wealth Report Issue 22, April 2009. 7 Rebecca Cassells, Yogi Vidyattama, Riyana Miranti and Justine McNamara (2010). ‘The impact of a sustained gender wage gap on the Australian economy’. Report for the Office for Women, Department of Families, Community Services, Housing and Indigenous Affairs (FaHCSIA), Canberra, Australia. 8 Juan Barón and Deborah Cobb-Clark (2010). ‘Occupational Segregation and the Gender Wage Gap in Private- and Public-Sector Employment: A Distributional Analysis’, Economic Record, 86, pp. 227-246 9 Ian Watson (2006). ‘Decomposing the Gender Pay Gap in the Australian Managerial Labour Market’, Australian Journal of Labour Economics, 13, pp. 49-79. 10 Hiau Joo Kee (2006). ‘Glass Ceiling or Sticky Floor? Exploring the Australian Gender Pay Gap’, Economic Record, 82, pp. 408–427. 11 Coffman, J. Gadiesh, O. & Miller, W (2010). The great disappearing act:Gender parity up the corporate ladder. Bain & Company 12 Duehr, E. & Bono, J.E. (2006). Men, women, and managers: Are stereotypes finally changing? Personnel Psychology, 59, 815-846. w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 32
  • 33. From our sponsor: ExxonMobil ExxonMobil is a highly successful company in a highly competitive, technology focused industry. Diversity is a key issue for ExxonMobil for a simple reason – it makes good business sense to employ the best people, whatever their gender or background, and ensure that they develop to their full potential. Our success, and our future, relies on our ability to attract and develop the best brains from diverse backgrounds. Women play a vast and important role in our operations, both in Australia and globally. ExxonMobil Australia has been recognised as an Employer of Choice for Women by the Equal Opportunity for Women in the Workplace Agency (EOWA) for the past 10 years, since the inception of these awards. Our policies encourage women’s active participation in the workforce and are impor- tant in fostering a supportive environment for women, such as 14 weeks of paid parental leave in addition to the Federal Government’s paid parental leave scheme. Our Workplace Flexibility Programs allow for part-time work opportunities, time-off from work and variable work schedules to support our employees’ need for flexibility at various points in their careers. Equally important is creating a culture of diversity and inclusiveness within our company. We do this in many ways, not least by building a proactive consciousness about progression opportunities for women right from the start of their career. Our ongoing aim to provide an inclusive environment for women in our workplace fits perfectly with the aims of CEDA’s Women in Leadership Series. It is through ongoing discussions and engagement with opinion leaders, such as the opportunities offered through this series, that effective change on closing the barriers faced by women in the workplace can truly be met. ExxonMobil Australia has been proud to be involved with the CEDA Women in Leadership Series and the Looking Below the Surface report. As a subsidiary of one of the world’s largest companies providing energy to people all around the globe, we have an important job to do, and this can only be achieved if both men and women are involved to their full potential. Ulysses Yiannis Human Resources Manager, Asia-Pacific South ExxonMobil Australia Pty Ltd w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 33
  • 34. From our sponsor: GlaxoSmithKline GlaxoSmithKline (GSK) is incredibly proud to be involved in CEDA’s Women in Leadership series. It has been a great opportunity to showcase the leadership of a number of talented women and actively contribute to the debate on important questions facing our society today. When we heard about this series we were determined to be involved, because we are passionate about advancing the career prospects of all our employees. Like many businesses, we know that fostering great talent and matching the right people to the right roles is crucial to our success. In 2010 and again in 2011, GSK was recognised by the Equal Opportunity for Women in the Workplace Agency (EOWA) as an employer of choice for women. We are very proud of this achievement because it represents our public commitment to supporting and advancing women in the workplace. We have put in place a number of policies to support this commitment, from paid parental leave, corporate family programs, development opportunities and flexible working arrangements, to help all employees find the right balance between work and family life. But is there more we can do? How can we continue to maximise the value that women bring to our business, particularly in leadership and management roles? On a more personal note, as an executive, what support can I give the women in my team to help them reach their full potential? It is to help us answer these important questions that GSK decided to be involved in the series; and we have not been disappointed. GSK is a global research-based pharmaceutical and healthcare company with a proud history in Australia dating back to 1886. We collaborate with local research- ers and doctors to discover new ways of treating and preventing disease, investing around $56 million a year in research and development. We provide about 1620 skilled jobs across Australia and contribute $584.6 million to Australia’s pharmaceuti- cal and medicinal exports. With this research heritage we are delighted to support the research-based approach CEDA has adopted throughout the series, culminating in the development of this Women in Leadership report entitled Looking Below the Surface. We commend CEDA and Dr Hannah Piterman for instigating this important research and for creat- ing the safe environment to continue to drive the debate. As women, we have a lot to celebrate. We are chief executives, business leaders, academics, Nobel Laureates, mothers and partners. We have achieved high public office. But it hasn’t been easy and there is a long way to go. That’s why we need to keep having this conversation. Deborah Waterhouse General Manager, GlaxoSmithKline Australia and New Zealand w o m e n i n l e a d e r s h i p L O O K I N G B E L O W T H E S U R FA C E 34
  • 35. national south australia and the Level 13, 440 Collins Street northern Territory Melbourne VIC 3000 Level 7, Qantas House GPO Box 2117 144 North Terrace Melbourne VIC 3001 Adelaide SA 5000 Telephone 03 9662 3544 PO Box 8248, Station Arcade Fax 03 9640 0849 Adelaide SA 5000 Telephone 08 8211 7222 Fax 08 8211 8222 new south wales and the aCT Level 14 victoria and Tasmania The John Hunter Building Level 13, 440 Collins Street 9 Hunter Street Melbourne VIC 3000 Sydney NSW 2000 GPO Box 2117 GPO Box 2100 Melbourne VIC 3001 Sydney NSW 2001 Telephone 03 9662 3544 Telephone 02 9299 7022 Fax 03 9640 0849 Fax 02 9232 7559 western australia Queensland Level 5, BGC Centre Level 17, 300 Adelaide Street 28 The Esplanade Brisbane QLD 4000 Perth WA 6000 GPO Box 2900 PO Box 5631, St Georges Tce Brisbane QLD 4001 Perth WA 6831 Telephone 07 3229 9955 Telephone 08 9228 2155 Fax 07 3229 8166 Fax 08 9228 2166