Tag Archives: Organizational Change

Organizational Change

Female and Minority Supervisor Influence

Katherine L. Milkman

Wharton operations and information management professor Katherine L. Milkman and Harvard Business School professor Kathleen L. McGinn, investigated how race and gender affect career mobility for young professionals, especially those entering career fields where they must be promoted to remain (law firms, universities, consulting firms).

Kathleen L. McGinn

They examined five years of personnel data and employee interviews from a large national law firm and found a correlation between the number of female supervisors and the probability of promotion and retention of junior-level female employees, published in Harvard Business School’s Working Knowledge as “Looking Up and Looking Out: Career Mobility Effects of Demographic Similarity among Professionals.”

The enabling benefit of demographically similar employees and supervisors was accompanied by a perhaps surprising correlation.
Work groups with a high number of same-gender or same-race underrepresented minorities had a higher attrition rate, attributed to employees’ perception that the competition reduced their chances for promotion.

Milkman and McGinn noted that placing many underrepresented employees (women and underrepresented minorities) in the same group may lead to structural marginalization, or “ghettoes” of low-power.
This effect was present in groups composed mostly of men.
In contrast, the exit decisions of white and Asian employees did not seem affected by working in groups with other white and Asian employees.

The researchers cited the massively unequal representation of women and minorities among partners in professional services organizations.
A 2009 study that showed women made up 46% of associates but 19% of partners across U.S. law firms, and racial minorities represented 20% of the lawyers across the country but only 6% of partners.

Milkman is currently analyzing data on the role that race and gender play in sponsorship or patronage in academia.
She sent emails to 6,500 professors at academic institutions across the country from purported male, female, white, or minority “students”  requesting a 10-minute meeting for one-time mentoring, either that day or next week.

She found that “female” and “minority” students received significantly fewer responses from prospective mentors, particularly when asked for assistance in the future.
She noted that these findings contrast with the popular expectation of less overt or unconscious discrimination in academic settings.

-*How have you seem race and gender affect career mobility in the past year?

LinkedIn Open Group – Diversity – A World of Change 
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Blog: – Kathryn Welds | Curated Research and Commentary

©Kathryn Welds

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Investing in Women for Venture Capitalists, Angel Investors

Pemo Theodore

Pemo Theodore

Pemo Theodore, Founder of Ezebis, collaborated with Ai Ching, co-founder of  Piktochart to create an informative, sobering infographic about investing in women.

They note that only 15% of angel investors are women and only 11% of investing partners at VC firms in the United States are women.

Ai Ching

Ai Ching

Theodore and Ching  portrayed the meaning of these statistics in relation to women’s participation in the workforce, and other dimensions in this compelling infographic, using Ching’s inforgraphic-generating product, Piktochart.

-*What barriers and enablers have you observed for women entrepreneurs?
-*What infographic tools do you find most useful?

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Blog: – Kathryn Welds | Curated Research and Commentary

©Kathryn Welds

Large-Cap Companies with Women Board Members Outperformed Peers

Credit Suisse Research Institute analyzed the performance of close to 2,400 companies with and without women board members from 2005 onward, and evaluated four key financial metrics:

1. Higher return on equity (ROE): The average ROE of companies with at least one woman on the board over the past six years is 16 percent; four percentage points higher than the average ROE of companies with no female board representation (12 percent).

2. Lower net debt to equity ratio: Net debt to equity of companies with no women on the board averaged 50 percent over the past six years; those with one or more have a marginally lower average, at 48 percent.

3. Higher price/book value (P/BV) multiples: In line with higher average ROEs, aggregate P/BV for companies with women on the board (2.4x) is on average a third higher than the ratio for those with no women on the board (1.8x).

4. Better average growth: Net income growth for companies with women on the board averaged 14 percent over the past six years compared to 10 percent for those with no female board representation.

The report offered seven hypotheses to explain the performance findings, including:

Improved Corporate Governance: Academic research reveals that a greater number of women on the board improves performance on corporate and social governance metrics.

Risk Aversion: The study analyzed the MSCI AC World constituents and found that stocks of companies with women on the board are more likely to have lower levels of gearing than their peer group where there are no women on the board.

Lower relative debt levels have been a useful determinant of equity market out-performance, delivering average out-performance of 2.5 percent per year over the last 20 years and 6.5 percent per year over the last four years.

Gender Diversity and Corporate Performance report

-*What financial results have you observed among large organizations with women board members?

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Blog: – Kathryn Welds | Curated Research and Commentary  

©Kathryn Welds

White Men can Lead in Improving Workplace Culture

Catalyst’s recent research study of employees at Rockwell Automation, Calling All White Men: Can Training Help Create Inclusive Workplaces?, found that white men who participate in leadership development training, modify their workplace attitudes and behavior to enable career advancement for women and minorities.
The study found that Rockwell employees who participated in leadership training labs presented by White Men as Full Diversity Partners:

• Reported increased in workplace civility and decreased gossip, attributable in part to improved communication and respect

• Managers were more likely to acknowledge that inequities exist in career advancement opportunities and practices for women and racial/ethnic minorities

• Managers increased five inclusion behaviors, including seeking out varied perspectives to becoming more direct in addressing emotionally charged matters

• Managers with few prior cross-racial relationships reported most change in thinking about issues and opportunities for different demographic groups

• Managers who reported least concern about appearing prejudiced reported most change in taking personal responsibility for being inclusive following the leadership training lab.

As in any civil rights transition, change adoption is increased when representative of the often privileges “majority” articulate the issue and present a call-to-action for change.

-*How have you seen men improve the culture in your workplace?

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Blog: – Kathryn Welds | Curated Research and Commentary

©Kathryn Welds