How to Increase Profits Through Gender-Balanced Leadership

The Power of Diversity

It’s not just the right thing to do.

Diversity is organizational rocket fuel. It’s better decision-making. It’s better results.

I’m always studying what works, what doesn’t, and the latest thinking in this area.

That’s why Melissa Greenwell’s new book, Money on the Table: How to Increase Profits Through Gender-Balanced Leadership, got my attention. Melissa is Executive Vice President and Chief Operating Officer of national retailer The Finish Line, Inc. Her new book utilizes current research and demonstrates that more women in management equals better financial performance.

I reached out to her to talk about her research and her perspective. Her views are intriguing and offer a view worthy of discussion and consideration.

 

Study: more women in a group increases problem-solving and decision-making.

 

The Case for Gender Diversity 

For those who aren’t up to date on the latest research, tell us why gender balance is good for organizations. What’s the case for gender diversity?

Hardwiring in the brain is different for men and women. The physical differences are associated with natural tendencies in thinking, communicating, and problem solving that are all needed in business. Men and women demonstrate these traits in varying degrees. Organizations that have traits from both genders will get the best questioning, debate, and idea generation resulting in healthier strategies and increased performance over those who don’t. Those are the organizations that will create the best products and services for their customers.

 

Fact: Public companies with more than 1 woman on the Board have higher returns.

 

Why do some resist it?

I don’t believe people resist it. I believe leaders don’t know what to do to change it. That’s the biggest reason I wrote the book – to provide some actionable advice as to what leaders can do to effect change.  Others have brought awareness and that’s a good first step. Now we need to start doing the things that will lead to more gender diversity in leadership positions.

 

Study: Companies with no gender balance on the board have lower market capitalization.

 

You say that you wrote the book mainly for men in power because they can change the ratio. And then you say some “get it” and some “think about it.” What’s the difference?

I wrote the book mainly for people in positions of power – anyone who is in a senior leadership role can effect change faster. At this time, the vast majority of those people are men.  Of the male leaders I interviewed, I found that there are two main groups: those who “get it” and have been taking steps for several years to have more women in leadership, and those who are “thinking about it” – that is, they acknowledge that women are important to their business but are struggling to find ways to have more of them in senior leadership.  The biggest difference between these two groups of leaders is that those who have greater gender balance in their organizations have taken some very deliberate steps to get them there. They take more time to seek candidates and they reach outside their known network to find female candidates. They tend to take more risks on up-and-coming talent within their organizations as well.

 

Reasons Companies Fail to Keep Women

It’s not only recruiting but also retention that is important to changing the ratio. What are some of the reasons organizations fail to keep women?

Some organizations still refuse to implement the flexibility it takes to keep female talent. They still view creating flexibility as making exceptions rather than viewing it as a competitive advantage. They are busy counting hours instead of measuring results. Those that continue to think that way will fall behind in the war for the best talent.

 

What’s unconscious gender bias and how do you recognize and deal with it?

Unconscious gender bias is continuing to hire people who are just like us (male or female) and not even thinking about the ramifications of doing so. Little to no thought is being given to examining the gender balance of the team or organization when this continues to happen. The only way for it to change is for the top leader to set the tone and lead by example. Everyone follows the lead of the CEO or President, which in itself is far more important than implementing awareness initiatives.

 

Steps for Building Gender-Based Leadership

Redefining Work-Life Balance

The Changing Nature of Work

How we work is changing. Technology is ushering in new possibilities. New generations enter the workforce with different expectations. With all the changes in play, there are some things that stay the same: the desire for fulfillment and purpose, the need to balance the professional with the personal.

Mason Donovan tackles these challenges in his new book, The Golden Apple: Redefining Work-Life Balance for a Diverse Workforce. Mason is managing partner at The Dagoba Group, a New England-based diversity and inclusion consultancy. I had the opportunity to ask him about the changing nature of work, including generational changes, balance, mindfulness, and inclusion efforts.

 

Success Tip: Balance improves your relationships, satisfaction and productivity.

 

Achieve Greater Satisfaction with Balance

Is work-life balance possible? Why is it so important?

Work-life balance is possible.  There are a lot of gurus out there that say it is not in order to capture your attention in this crowded field.  Emphasis is on the word balance.  If you ever walked on a high beam or anything else in which you needed to physically balance yourself, you most likely fell off a few times.  Your balance will fall off to one side or the other.  It is important that you anticipate for these moments of imbalance, so you have a plan to get up.

Achieving balance will make you more productive in and out of the workplace.  It will enrich your relationships and allow you to achieve greater satisfaction in life.

 

“Alignment of purpose allows for the elimination of distractions.” -Mason Donovan

 

How is finding your purpose related to achieving balance?

In the book, I tell the story of executives on an interpersonal retreat climbing a mountain.  Their primary purpose was to reach the summit without talking about business.  The objective was for them to get to know each other better personally and share an accomplishment.  Without spoiling the story, their original goal is interrupted because they lost their purpose.

In order to know where you are going in life, it is important to understand why you are going there.  Work-life balance is no exception.  Only a handful of people actually stop and reflect on why they get up every day to spend the majority of their waking life in an organization.  When that somewhat simple-but-necessary reflection does not take place, you will default to acquiring things and making money, which almost inevitably leads to the golden handcuffs phenomenon.  You work more because you have to make more money.  You make more money so you can acquire things that require you to work more.

There has been a societal shift in why individuals engage in work.  Part of that shift is due to generational changes, while for others it was their awakening due to the Great Recession.  Aligning your personal purpose in life with your work and organizational purpose will help you eliminate all of the noise that does not fit that purpose.  Balance comes from awareness.  In The Golden Apple, I provide simple exercises to not only develop, but also align your purpose at each level.

 

“Work is not a four-letter word.” -Mason Donovan

 

Understand Generational Change

What are you finding in terms of generational changes? What are the new generations demanding at work? What’s the best way for current leaders to respond?

It is important to note that we are all unique individuals but are influenced by our shared group memberships such as our generation.  Clumping everyone together and solely defining them by generational attitudes can overgeneralize any particular person.  It is helpful to understand the influence of generational membership, which will give you a starting point when discovering their individuality.The Golden Apple

Each generational cohort has a defining moment in the shaping of their shared psyche.  When it comes to employment, for Generation X it was the broken promise of the organizational loyalty which fostered the cradle to grave jobs their parents subscribed to.  Millennials were highly influenced by the Great Recession which ushered in massive layoffs, foreclosures and lowered career expectations.  These defining moments create a collective influence on how cohorts view the work-life equation.

PwC’s NextGen study uncovered a generational shift when it came to work and personal engagement for their Millennial population.  Uncovering this shift was important to them since by the year 2020, they expect that fully 80% of their employees will be Millennials.  In short they found this group was far less likely to give up their personal life today for the prospect of a partnership down the road.  The value structure was shifting more towards experiences than acquiring things.

Interesting to note is how this new value structure is also being reflected in Baby Boomers.  The Great Recession robbed them of the ability to retire early as they saw their investments fail.  It required them to reassess what they valued in life: time or things.  Most have decided to choose to have life experiences in the time they have remaining.  Downsizing acquisitions and upsizing experiences has become the trend for this generation.

Leaders need to better understand the value they offer to their current and future employees.  By integrating work-life balance into their overall package, they will increase engagement and retention.  They should look at this challenge through a holistic lens so they do not perceive it simply as a specific generational or gender issue.  Policies and practices should be geared towards an inclusive solution that impacts the overall workforce.

 

Study: long working hours made 58% more irritable and over 25% depressed.

 

Mindful Practices

How Great Companies Fuel Innovation Through Diversity

The Power of Diversity

I’m a passionate believer in diverse teams. Throughout my life and career, I have seen the benefits from multiple perspectives examining a problem together. If everyone thinks exactly the same way, with the same background, you end up with a narrow solution. A lack of diversity increases the likelihood of strategic blind spots.

 

“If we cannot now end our differences, at least we can help make the world safe for diversity.” –J.F.K.

 

That’s why I read with great interest David Livermore’s new book, Driven by Difference: How Great Companies Fuel Innovation Through Diversity. David Livermore has written ten books on global leadership and cultural intelligence. He is president of the Cultural Intelligence Center and a visiting scholar at Nanyang Business School in Singapore.

 

“A lack of diversity increases the likelihood of strategic blind spots.” -Skip Prichard

 

The Goal of Diversity is Not Enough

In your book, you argue that diversity, as a goal, is not good enough. Would you elaborate on this?

I applaud any effort to hire a more diverse workforce. But if that’s all you do, you set everyone up for failure. “Different” perspectives, values, and strategies for getting work done easily lead to misunderstanding, frustration, and gridlock. Diversity needs to be managed with a culturally intelligent strategy for how to effectively use the diverse perspectives to drive innovation and improve employee engagement.

 

“The more diverse the team, the less likely participants will offer their input and perspectives.” –David Livermore

 

The Link Between Innovation and Diversity

You say that diversity by itself does not ensure innovation, but it does when combined with high CQ. What is CQ? What’s the link between innovation and diversity? 

Driven by DifferenceCQ, or cultural intelligence, is the capability to work effectively with people from different cultural backgrounds. It’s measured using a CQ Assessment, which predicts how effectively one will work in situations characterized by cultural diversity.

Our research finds that diverse teams comprised of individuals with low CQ underperform homogenous teams with low CQ. However, diverse teams comprised of individuals with high CQ outperform homogenous teams on several measurements including innovation.

Therefore, CQ becomes the moderating link between diversity and innovation. With higher levels of cultural intelligence, team members can effectively retain and use the differences among them that enhance creativity while minimizing the differences that create interference.

 

“Distraction is one of the biggest roadblocks to innovation.” –David Livermore

 

Prevent Diversity Fatigue

What’s diversity fatigue and how do companies prevent it?

Diversity fatigue is how I refer to the growing weariness felt by many staff when they hear they have to go through diversity training. Even individuals from underrepresented groups often place little hope or interest in diversity initiatives in the workplace. Research recently cited in the Harvard Business Review found that diversity programs did little to convince ethnic minorities that companies would treat them any more fairly than companies without the programs.

 

“The culturally intelligent are aware of how cultural differences influence the way team members approach a task.” –David Livermore

 

There are a variety of factors that contribute to diversity fatigue, several of which I explore more fully at the beginning of Driven by Difference. But the key to addressing this is for companies to take a more strategic approach to diversity. They need to address diversity the way they address other business opportunities and challenges—assess the situation, create a strategy, and form metrics for measuring accountability. If profits are slipping, companies don’t plan a “Profits Slipping Awareness Day” and then hope the awareness translates into better returns. It’s all hands on deck with everyone accountable. And then managers and teams need to be equipped with the skills to effectively use their differences to drive innovation.

 

“Smart, empowered teams are the best way to come up with successful products.” –David Livermore

 

In one chapter, you talk about focus and how the more personalities and cultures you have working together, the easier it is to lose focus. What’s the best way to experience the benefits of diverse thinking while also keeping focus?

It comes from clearly defining the goal (a key to retaining focus) while asking your diverse colleagues how they understand the goal. The goal may seem straightforward, such as reducing costs or improving efficiencies. However, the assumptions about how to most effectively reduce cost may be strongly influenced by one’s cultural values and assumptions. Focus comes from not quickly moving beyond the seemingly basic task of clarifying expectations and instead, using a diversity of expectations to more successfully achieve more innovative outcomes.

 

“Diversity: the art of thinking independently together.” –Malcolm Forbes

 

How to Build Trust With Diverse Colleagues

How to Create Repeatable Success and Endless Encores

Repeating Success

 

Ever feel frozen in place?

Have you seen something take off and then get consumed with worry about what’s next?

How do we create an encore worthy of that success?

 

Ken Goldstein’s new book, Endless Encores: Repeating Success Through People, Products, and Profits, tackles the difficult topic of creating continued, repeatable success. His various corporate roles make him uniquely suited to share his perspective on success. Currently, he is Chairman & CEO of SHOP.COM and previously he was Executive VP of Disney Online and Publisher of Broderbund.

 

“All success resets expectations for what comes next.” -Ken Goldstein

 

How to Create Repeatable Success

You wrote a fictional story about a topic that seems to haunt many: repeating success. Why did you choose this topic?

I think there are two challenges that weigh heavily on our minds at work: first, how do we achieve success, and second, once we achieve some success, is that the last success we are going to have? In many senses, the second challenge is much more haunting than the first. When we’re initially trying to break through the noise and get noticed, we have nothing to lose, so our leaning toward risk is high and our openness to the unusual is ungated. We are open to helping others, and we welcome their help because together we are stronger. Once we have a reputation of any kind, fear starts creeping into the mix. No one wants to be a one-hit wonder, but often we become our own worst enemy and unintentionally box ourselves in. We worry about our next thing being compared to our last thing. That worry can filter our creativity, our bias to action, even our kindness toward others as competitiveness takes over. None of that negativity helps us win again at all, it just clouds the way forward. That’s why I chose this topic. So many people I know are consumed by it, overwhelmed by it, and sometimes frozen in place. The colleagues I’ve helped in person in a leadership capacity have continued to move forward with the new, and I thought if I could capture that spirit of innovation in a story with real characters, I could inspire others to keep looking forward and only forward.

 

“Leadership is earned and recognized, not granted.” -Ken Goldstein

 

Why We Learn More From Failure

Why is success difficult to repeat? After all, if you did it once, you can follow the same process . . . or not?

Ken GoldsteinHere’s what I have discovered repeatedly: You can almost never recreate a success, but it is absolutely predictable that you can recreate a failure. That’s why we learn more from failure than we do from success. In failure, we learn what not to do again. It didn’t work, so put that on your list of things you don’t need to try again. In success, if we do the same thing again, or even a modest alteration, we will not create the same inventiveness or excitement that we did with the original. Something can only be unique once, and success is usually unique. That’s why it is so hard to repeat success, because no matter who you are, no matter what you’ve done, all that is in the past, and you must start from zero. It’s also why I say you’re not really failing if you’re learning, because the learning is what sends you back to try again. When we embrace the empowerment and humility of starting over, releasing defensiveness and facing the blank canvass with a set of trusted colleagues, we have the best shot at repeat success, which is the same shot we had at first success. Accept that and innovation is all you need to worry about (and that’s plenty).

 

“Offer customers more than what they think they want.” -Ken Goldstein

 

Build a Mission That is More than Words

What’s the best way to have a mission that is “more than words”?

When a company’s mission statement is in a binder on the shelf or buried in the company handbook, it’s dead text — it means nothing and empowers no one. Shared values are what drive people to work together and innovate. A set of shared values allows a mission to be more than words, but only if those around us embrace the values with authenticity and conviction. We live in a cynical world where conflicting data and untested opinions are communicated broadly in real time. If we say “our people are our most valuable asset” and then lay off 20% of our staff because of a bad quarter, was that a shared value? If we say, “We cherish integrity here,” and then our CEO resigns for unexplained reasons around a publicly broadcast compensation scandal, what happened to our commitment to integrity? Walk the walk, lead by example, and you can get the people around you to rally to any cause you share, but you must share it as a set of consistent actions (emphasis on “consistent”), not a slogan.

 

“Long-term leaders spend the majority of their thinking about talent.” -Ken Goldstein

 

3 Steps to Building a Winning Team

45 Entrepreneurs Share Advice: Been There, Run That

It’s not possible to list all of Kay Koplovitz’s achievements, but here are a few highlights:

  • She is the Founder of USA Network.
  • She created the business model for cable networks.
  • She launched the Sci-Fi Channel in 1992.
  • She is the co-founder and chairman of Springboard Enterprises.
  • She was appointed by Bill Clinton to the bipartisan National Women’s Business Council.
  • She has served on numerous corporate boards ranging from Nabisco to Oracle.

So, after reading her recent book, Been There, Run That, I jumped at the opportunity to ask her some questions about her unbelievable career. Been There, Run That includes writing from 45 entrepreneurs who share wisdom on building and launching new ventures.

 

“Creating open teamwork is the best way to encourage innovation.” -Kay Koplovitz

 

Trailblazing through Innovation

Kay, I want to start by saying that I think of you as a business leader.  Your track record and results speak loudly.  But, I am reminded that you’re the first woman to found and serve as president of a cable network, and that makes you an inspiration to many women.  What unique challenges did you face as a woman?

More important than becoming the first women to head a television network, I created the business model for cable program networks, which is based on two revenue streams: advertising and licensing. It reversed the TV model of paying television stations to carry network programs. We collected a fee from the cable systems and also sold advertising. This is the reason so many cable program networks have been successful.

In many ways, you were trailblazing a path, opening up doors for women behind you.  Were you cognizant of that at the time?

Absolutely, and I believe I was a leader for men in the industry as well, as I preceded most of them. Throughout my career, I tried to provide opportunities for women to move up the management ladder. I co-founded Women in Cable, now Women in Cable and Telecommunications, to provide management training and the opportunity to learn to be great general managers. Today, WICT is one of the best training organizations in the industry.

After USA Networks, you turned to venture capital and found that over 95% of venture capitalists were men.  What have you done about this?

I co-founded Springboard Enterprises, a non-profit accelerator for women-led companies in technology and life sciences, in 2000. We are seeking to level the playing field for women-led businesses that need to raise venture capital. As of yearend 2014, we have brought 562 companies to market, 83% of which raise capital and 80% are in business today. Collectively they have raised over $6.6 billion, and 35% have had liquidity events, including 11 IPO’s. Readers can gain great insight from the advice of these wonderful entrepreneurs who contributed to Been There, Run That.

My two partners and I also are launching a for-profit Springboard Fund to invest in companies completing the accelerator program. We have many great companies: Constant Contact, iRobot, Zipcar, Minute Clinic, Viacord, and many more.

What’s the best way to encourage innovation throughout a large organization?

Creating open teamwork is the best way to encourage innovation. Give people permission to experiment by offering them both responsibility and authority to break rules for creative destruction and innovation.

 

“Invest in creating the right culture and you won’t be disappointed in the results.” -Kay Koplovitz