The Leadership Challenge Women In Management
the leadership challengewomen inmanagementHANNAH PITERMAN
the leadership challengewomen inmanagementHANNAH PITERMAN
T H EL E A D E R S H I PC H A L L E N G EW O M E NI NM A N A G E M E N THannah PitermanPhD, MEc, BEc (Hons)Dr Hannah Piterman is a consultant, and advisor to senior management and board levels in business, government and academia in the areas of organisational dynamics, leadership, and performance. Her doctoral and post doctoral research, strategic consulting and executive developmentdraws on more than 20 years of experience as executive in, and consultant to, business, governmentand university sectors.Dr Piterman is author of numerous public reports and journal articles, and is Honorary AssociateProfessor at Monash University. She has a doctorate in Organisation Dynamics and a Master degreein Economics.AcknowledgementsThis study was made possible by encouragement and financial assistance from 13 private companies, three government agencies, Monash University, the Women in Mining group within theMinerals Council of Australia and the Committee for Economic Development of Australia(CEDA). In particular it owes a great deal to the contribution of members from the ReferenceGroup, made up of distinguished corporate, government and university professionals and to theassistance of managers specialising in diversity and related issues in their organisations.This studywould not have been possible without the advice and support in gaining access to executives forinterview in their own and other organisations.The project was considerably more involved and intensive than originally anticipated.Accordingly it took longer than planned to complete. I am grateful for the patience of its sponsors.I would like to thank a number of people who have provided support and encouragement.Special thanks are due to Rosie Beaumont, for her assistance in the literature search, drafting, andprovision of comment. Special thanks also go to Melbourne Business School’s Professor AmandaSinclair and Diversity Manager Coles Group, Dr Katie Spearritt, for their edits, valuable insights,and suggestions on the penultimate draft. Thank you to Geoff Allen and Fergus Ryan who wereable to make the idea of this study a reality and to Geoff who provided ongoing feedback andencouragement as drafting proceeded.It has been a great pleasure to work with all those involved and I thank them for their support.Hannah Piterman March 20082
Reference group and organisation advisors AMP – Meredith Hellicar, Joanne Hawkins, Matthew Percival Australia Post – Linda Bardo Nicholls, Stephen Walter, Debra Dodgson Coles Group – Pamela Catty, Kerrina Watson, Dr Katie Spearritt CBA – Fergus Ryan, Barbara Chapman Deloitte Touche Tohmatsu – Giam Swiegers, Margaret Dreyer Department of Education, Employment and Workplace Relations (DEEWR)(previously Department of Education, Science & Training) – Lisa Paul, Dr Wendy Jarvie Department of Human Services (VIC) – Patricia Faulkner, Fran Thorn, Michael Debinski,Rachel Gold Freehills – Peter Butler, Andrea Bell Insurance Australia Group – Sam Mostyn, Michele Jackson Leightons – Penny Bingham Hall Macquarie Bank – Kris Neill, Sharon Ericsson Minerals Council of Australia – Melanie Stutsel Monash University – Professor Stephanie Fahey, Karen Haywood, Kay Gardner, BarbaraDalton Newmont Mining Corporation and Convenor, Women in Mining Group – Christine Charles Office for Women (Commonwealth) – Kerry Flanagan, Julia Burns, Sue Williamson,Lee Emerson St George Bank – Gail Kelly, Jeremy Griffith Westpac – Ann Sherry, Ilana Atlas The Allen Consulting Group – Geoff AllenNote: Some members of the reference group have since left these organisationsReport terminologyTo ensure confidentiality, generic position descriptions are used to identify participants.The term‘senior manager’ denotes executive and senior positions (CEO, managing director, general manager, partner, divisional/sectional head, senior manager). More junior participants are referred toas ‘managers’. Participants’ gender is also identified. The term corporate is used generically toinclude organisations in the private, public and tertiary sectors.3
forewordforewordThe new Australian Federal Parliament has a record number of women in key leadership positions. On the world stage there are also unprecedented numbers of women leading nations andthere is a strong possibility that the United States will elect its first women president.These events provide indisputable evidence not just of women’s talent and capability to lead,but that their contribution is now widely recognised and welcomed in political arenas and societies. While such changes are cause for celebration, they bring for me also a sense of loss. Thisloss derives from the evidence that the corporate world continues to miss out on much ofwomen’s potential leadership contribution. Women remain a tiny proportion of senior managersand leaders in Australian organisations and statistics reveal a plateauing in their numbers over thelast decade.This report, The Leadership Challenge: Women in Management, provides new depth and insightto understanding the continued absence of women from leadership roles in Australian business.In Trials at the Top, research undertaken by a group of corporate leaders and academics in theearly 1990s, we found that to understand women’s absence from corporate leadership, thereneeded to be a focus on the existing leadership culture. Yet undertaking such research is oftendifficult. Senior managers of both genders are often guarded about sharing obstacles on theirpaths to leadership and talking to women provides only a partial picture of the dynamics at work.Dr Piterman’s report answers these gaps in our understanding. It provides rich new information about what it’s like for men and women leading and aspiring to lead Australian organisations.Her interviewees speak with honesty, feeling and insight about their work and its impact on theirlives. Their experiences reveal that while organisational cultures contain strong expectations onleaders to work hard, their norms often mask deeply conformist behaviours in which anyone wholooks or acts differently comes under intense scrutiny. Says one executive ‘people fight the fight4
but don’t challenge the culture’. The report also documents in absorbing, intricate detail howpressures on men and women to conform, play out in gender stereotypes and sexual tensions.The results are bad for many women, who find fewer, narrower, more hazardous and personallycostly paths to the top. And they also have much wider effects, undermining the very potentialand quality of business leadership itself.Yet the research also shows how much of a difference innovative and committed leadershipcan make.The report provides practical advice on how leaders can create environments wherewomen with talent flourish in leadership.As an MBA teacher, I come across some truly amazingly talented and dedicated women andmen. Watching these students graduate, my fervent hope is that society and business will findways of growing their capabilities and desire to contribute. I believe this report will be a sourceof inspiration to all those taking up the challenge of creating innovative and inclusive leadershipcultures in which women and men can thrive in new ways .Amanda SinclairProfessor of Management (Diversity and Change)University of MelbourneJanuary 20085
T H EL E A D E R S H I PC H A L L E N G EW O M E N6I NM A N A G E M E N Tcontents1.0Executive summary. . . . . . . . . . . . . . . . . . . . . . . . . . . 81.1Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81.2The study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91.3Findings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91.4The diversity challenge. . . . . . . . . . . . . . . . . . . . . . . . . . 122.0Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142.1Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142.2Underlying premise for research . . . . . . . . . . . . . . . . . 142.3Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152.4Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152.5Participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152.6Steering committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163.0Context. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173.1A changing social environment . . . . . . . . . . . . . . . . . . . 173.2The political environment . . . . . . . . . . . . . . . . . . . . . . . 183.3A changing business environment . . . . . . . . . . . . . . . . 193.4Women in business . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203.5The challenges for leadership . . . . . . . . . . . . . . . . . . . . 213.6Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214.0The business response to women . . . . . . . . . . . . . . 224.1The implementation debate . . . . . . . . . . . . . . . . . . . . . 224.2The leadership challenge . . . . . . . . . . . . . . . . . . . . . . . . 254.3Implementation practices . . . . . . . . . . . . . . . . . . . . . . . 254.4Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275.0Strategies for change . . . . . . . . . . . . . . . . . . . . . . . . 285.1The business case for diversity . . . . . . . . . . . . . . . . . . . 285.2Contemporary human resources . . . . . . . . . . . . . . . . . 295.3Selection quotas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295.4Mentoring and networking . . . . . . . . . . . . . . . . . . . . . . 295.5Raising awareness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305.6Childcare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305.7Infrastructure supports for parents . . . . . . . . . . . . . . . 305.8Flexible work opportunities . . . . . . . . . . . . . . . . . . . . . 315.9Leave entitlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416.0The drivers of business . . . . . . . . . . . . . . . . . . . . . . 326.1The dominant corporate culture . . . . . . . . . . . . . . . . . 326.2The contemporary business model . . . . . . . . . . . . . . . 366.3Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
7.0Leadership and authority . . . . . . . . . . . . . . . . . . . . . 387.1Leadership and masculinity . . . . . . . . . . . . . . . . . . . . . . 387.2Intelligence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397.3Emotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417.4Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437.5Physicality and sexuality . . . . . . . . . . . . . . . . . . . . . . . . . 447.6Acknowledging gender in the workplace . . . . . . . . . . 467.7Collusion with the dominant culture . . . . . . . . . . . . . . 477.8Regulating invisible barriers . . . . . . . . . . . . . . . . . . . . . . 497.9Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 498.0Work/life balance . . . . . . . . . . . . . . . . . . . . . . . . . . . 508.1Recognising the benefits of flexibility . . . . . . . . . . . . . . 518.2A more sustainable business model. . . . . . . . . . . . . . . 528.3Women’s engagement with flexibility . . . . . . . . . . . . . 528.4The leadership challenge . . . . . . . . . . . . . . . . . . . . . . . . 578.5Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 589.0Dynamics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 599.1Understanding the dynamics of hierarchy. . . . . . . . . . 599.2Managing relationships . . . . . . . . . . . . . . . . . . . . . . . . . . 639.3Dynamics between the sexes . . . . . . . . . . . . . . . . . . . . 669.4Dynamics between women . . . . . . . . . . . . . . . . . . . . . 689.5Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7010.0Successful women. . . . . . . . . . . . . . . . . . . . . . . . . . . 7110.1What it takes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7110.2Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7311.0The diversity challenge . . . . . . . . . . . . . . . . . . . . . . . 7411.1Strategies for leadership . . . . . . . . . . . . . . . . . . . . . . . . 7411.2The honest conversation. . . . . . . . . . . . . . . . . . . . . . . . 7511.3Taking action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7811.4Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78Postscript . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 867
1.0executive summary1.1 BackgroundThe presence and status of women in paid employmenthas improved dramatically over the last half century.However, the progression of professional women intopositions of leadership has been slow. Within Australia,women currently represent 12 percent of ASX200 executive managers. Five women have been appointed tochief executive level in ASX200 companies since 2004.The number of women holding chief executive positions(or equivalent) in the public and tertiary sectors is morepromising. Nevertheless, women find it more difficult torise to positions of leadership in environments that arehighly male-dominated, irrespective of the sector ofemployment.There is a strong business case for enhancing the contribution of executive women to the achievement oforganisational objectives.There is a parallel ethical, publicgood and humanitarian case for the participation ofwomen at executive level. Rising social expectations forequal opportunity can no longer be ignored. Significant8change will require a committed leadership focus to theeconomic and broader performance dividend that canbe achieved by attracting and retaining quality womenmanagers and optimising the contribution of women inmanagement.Over the last decade, an increasingly tight and globallycompetitive labour market has seen the business community make genuine efforts to promote and retainwomen. A number of Australia’s leading organisationshave adopted globally recognised strategies to facilitategender diversity within their workforces.While the focusof this study is gender diversity, many of the issues thestudy raises relate to dynamics in the wider domain,which result in the exclusion of certain groups from benefits afforded to the dominant culture.This study was undertaken by Dr Hannah Pitermanand initiated through a number of conversations withGeoff Allen, Fergus Ryan and a number of senior executive men and women who agreed to support the studyfinancially and who formed the steering committee.The objective of the study is to explore unconsciousand subtle inhibitors to the positive experience and fullutilisation of women in executive and management posi-
1.0E X E C U T I V E S U M M A RYtions. The analysis considers the powerful organisationalelements that shape the experiences of women in corporate Australia. The findings will contribute to a widerappreciation of implicit barriers to women’s careerdevelopment and retention, and help organisationsengage with the diversity agenda in Australia.The findings show that impediments to female advancement can be attributed to a number of interacting factors.These include short-term business drivers; cultures thatundermine the female presence through narrow notionsof ‘cultural fit’ and masculine leadership constructs thatexclude women; complex dynamics around managingstrategic relationships; and work/life balance issues.vent the optimisation of female contributions to businessoutcomes. The study finds that unspoken rules andarrangements of mainstream corporate Australia set particularly narrow parameters for leadership.The prevailingprofile of the good business leader reflects the stereotypical traits of masculinity. Preoccupation with immediate financial performanceencourages a left brain bias that favours hard skills,such as rationality, expediency, and numeracy (typicallyassociated with masculinity) over less tangible, soft skillssuch as relationship-building. These cultures tend tohave a greater tolerance for bullish ‘command and control’ communication. A culture of competition generates a winner psyche.Individuals strive to align with success and fear marginality. Critique is avoided and difference is often notaccommodated. In an attempt to fit in, individual needs,particularly the needs of women, can be suppressed. Team-play in competitive, results-focused environments requires skills in forming strategic relationshipsand navigating organisational politics that often requireseparation of the personal from the professional. Menand women who are not adept at ‘playing the game’are less successful. A 24/7 work ethic includes a low tolerance for the intersection of the commercial and domestic worlds, particularly at the senior level. A ‘round the clock’ culturestruggles to accommodate parenthood, which impactson women who have prime carer responsibility.When business is viewed through a narrow masculineprism, the skills and traits attributed to the feminine donot align with business essentials. Moreover, genderstereotyping excludes women from leadership roles. The alignment of numeric competency with intellect,combined with a gender stereotypical assumption thatwomen are numerically less competent, encourages aview of women as innately lacking business acumen. The communication and decision-making styles attributed to women, such as being inclusive and collegial,are seen as incompatible with desired leadership traitsof decisiveness and expediency. Women’s reluctance (and/or inability) to enter into agame of strategic survival and aggressive personal politics is perceived as a weakness and lack of ambition. Working mothers are excluded from key roles, projects and opportunities due to a work structure and aculture that does not accommodate their needs.1.3.1 Business drivers1.3.2 Life in a straight jacketThe current market focus on short-term financial returnscreates incentives that mitigate against longer-term andmore sustainable corporate performance. Powerfulshort-term business drivers influence business operations, corporate culture, and the type of leadershipattributes that are sought and rewarded – all which pre-The study finds that most women face numerous culturaldilemmas when they aspire to success.The business environment is dominated by a limiting female archetype thatplaces women in a cultural ‘straight jacket’. Few womenare able to seamlessly navigate organisational life.Women are subjected to intense scrutiny that tran-1.2 The studyManagement literature refers to unspoken rules andarrangements that govern workplace structure and gender dynamics. These elements of organisational cultureare subjective yet powerful. They have the potential tolimit women’s promotional opportunities and undermine their experience at the workplace. A number ofstudies internationally and in Australia have identifiedcorrelations between a multitude of structural and cultural forces and the under-representation of women atthe senior level. Significant Australian research on the culture of leadership and authority in corporate environments has revealed the role of gender, sexuality, andpower in shaping the experience for women.The study pursues this line of investigation to furtheraddress the gap in our understanding of the impact oforganisational settings on women’s work experiences.The analysis is based on 11
The new Australian Federal Parliament has a record number of women in key leadership posi- tions.On the world stage there are also unprecedented numbers of women leading nations and there is a strong possibility that the United States will elect its first women president.
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