According to new research, IPO firms with male CEOs get the advantage with investors, compared to those with female CEOs. This news probably comes as no surprise, but the nuances revealed by the study point to a conclusion that should be concerning to anyone who works in a field characterized by the term “meritocracy.”

When it comes to matters of gender, there’s no such thing as fair play. For women at least, outcomes are rarely based purely on performance. More and more research is showing that gender weighs heavily on the equation when it comes to your job, your promotion, your paycheck, and – in the case of this new study – how much investors are willing to pour into a business.

A working paper recently released by researchers from the University of Utah and Washington University in St. Louis suggests that female led IPO firms do worse than male ones. The study says, “Despite identical personal qualifications and firm financials, female Founder/CEOs were perceived as less capable than their male counterparts, and IPOs led by female Founder/CEOs were considered less attractive investments.”

Moreover, the researchers say, even though prospective investors were presented with identical information on performance, experience, and qualifications, “Female CEOs were seen as less experienced, less able to lead, less able to resolve TMT disputes and board deadlocks, as well as a less favorable representative of the company in the eyes of the public.”

Women continue to be perceived as less capable leaders than men, simply because they are women.

While many companies purport to be meritocratic in the way they reward top producers, studies like these show that we’ve got to wonder what kinds of gender biases play into sponsorship and promotion within companies, as well as investments into IPO firms.

Cultural Bias Against Female Leaders

This study, which will be published in an upcoming edition of the Journal of Management, shows that gender bias is not about the numbers – it’s about attitudes and culture.

Lyda Bigelow, co-author of the study and assistant professor at the University of Utah’s David Eccles School of Business, said, “Bias against top-level female executives seems entrenched despite strides women have made in filling management positions within firms making their initial public offerings (IPOs).”

Along with Bigelow, the other researchers included Leif Lundmark, University of Utah – Department of Management; Judi McLean Parks, Washington University in Saint Louis – Olin Business School; and Robert Wuebker, University of Utah – David Eccles School of Business.

The experiment presented groups of MBA students (about 20% female) with data on fictitious companies, and the students were asked to assess whether the firms would be good investments. The study authors also noted that the skill level of the participants wasn’t far from the real world – “the initial analysis of IPO firms is a task of junior staff in an institutional investment firm (often a recent MBA graduate).”

The researchers switched only the gender make up of senior individuals in the company (switching names and photos, but keeping all the other information the same). It turned out that the gender make up of the management team didn’t have much of an effect on investment decisions, but the gender of the CEO had a significant impact. The researchers wrote:

“The recommended percentage to invest in the IPO was almost four times higher for firms with male CEOs at the helm than for those with female CEOs. Moreover, the anticipated share price of IPOs led by male CEOs was approximately 11% higher than those of female led IPOs.”

Even when presented with identical data (the researchers even went so far as to screen the management team photos in advance to ensure they were of equal attractiveness), investments decisions are influenced by leadership gender.

Meritocracy in the Corporate Space

The same biases play out when it comes to employee evaluation and promotion within corporations – consider Catalyst’s recent report The Myth of the Ideal Worker: Does Doing All the Right Things Really Get Women Ahead?, which reveals how women are paid for proven performance, while men are paid for potential.

But new research out of Harvard, by Iris Bohnet, Alexandra van Geen, and Max H. Bazerman, points to a way around gender bias, when it comes to employee evaluations. The study shows that grouping employees of different genders or ethnic backgrounds together during reviews can force managers to be aware of stereotypes, resulting in fairer assessments of performance.

This would be good for firms on several counts, they say.

“Organizations may seek to overcome biases in job assignment and promotion because they want to maximize economic returns. They may worry about the inaccuracy of stereotypes in predicting future productivity, or they may hold gender equality as a goal in itself. If so, they may be able to nudge evaluators toward taking individual performance information into account rather than gender stereotypes by introducing joint rather than separate evaluation procedures.”

By acknowledging biases that may prevent women and other minorities from getting a fair shake at pay or promotion, companies can begin to evolve toward the meritocracies they claim to be.

I have a wingman – not at the bar, but in my job search.

At first it started casually. We would compare with whom we were meeting, when we met, and what we learned. We were both at similar stages in our job search, but going after positions at different levels. Because we both had different networks, we were able to tap into different connections, alumni pools, and job databases.

My wingman comes from a relationship established during a MBA semester exchange. We connected initially because of our field and then became friends over time, first through classwork and next through our job search. We held common interests that allowed a friendship to develop. First it was joining each other for industry conferences and discussing the current state of the market. Next it was the discussion of how certain meetings were either more or less successful and why. Then, once we knew each other, there came the occasional recommendation of person or firm to connect with.

Over time we had developed trust because we were not a threat to our individual job search, but found a way to complement one another and to support our egos. As either of us became aware of roles not suited for our own needs but the other’s, we shared leads and potential recommendations into the company.

This new friendship has also helped me identify some of my own personal weaknesses in the job search – and how to overcome them.

Learning Trust

Our relationship evolved informally as we mutually realized that we were not competitors in the job search. We were both of different experience levels and were looking for completely different opportunities. As we continued to network, we shared contacts, industry gossip, and served as one another’s support system during times when encouragement was needed.

What I valued most by this unofficial relationship was the latter part – the support.  At varying times in our job search, we each experiences walls and tremendous valleys of self-doubt. The frustration and rejection for both of us was overwhelmingly ego blowing. And fortunately, we had a partner to serve as a cheerleader and show us the light of this never-ending tunnel called  “the job search.”

In this job search, the main weakness that I have overcome is my lack of trust among my peers. For many years I saw individuals as competitors for roles that I had been chasing. But the reality is each role has a unique set of requirements to which they are matched. In this employment market, employers have been identifying the “right candidate” through an endless checklist of requirements and professional experiences – which makes the job search lengthy as well.

It took a lot for me to lower my walls and learn how to, first, trust and then, second, share knowledge with my colleagues. It also took a lot of courage for me to recognize that interview processes in this market are now marathons instead of sprints.  I was going to need reserve supplies and ample company to cheer me to the finish line: a viable offer.

This alternative source of support has been instrumental in researching company backgrounds and preparing for interviews with specific individuals.

How to Make It Work For You

Here are key characteristics to keep in mind, in order to make the wingman approach work for you:

1. Varying stages in our careers.
2. Complimentary industry interests, but different roles.
3. Different professional networks.
4. Similar approach toward life.

There is nothing systematic about the “wingman in your job search” relationship. It is not like a mentor-mentee program where there are designated times and reasons for the senior member to check in on “status.” There was, however, an unspoken acknowledgment of helping out, when we could, with contact information or industry insights. The mutually beneficial aspects of the wingman approach include:

1. Recommend people that we met and with whom we think the other should meet.
2. Share information through our networking meetings.
3. Share job leads not appropriate for ourselves.
4. Cheer and champion our individual searches.

At times it has not been easy. Fortunately our peaks and valleys occurred at different times and allowed us to encourage the other person to not give up – just like our elementary school teachers.

But my favorite part was having a partner to bounce off instances of success and failure. What happened after speaking with this person? Who was a good lead to ask questions on that topic? Could you tell me a joke – I just need to laugh. The banter back and forth has helped me maintain my sanity and perspective on the market. It also helped to have a reliable person who understood what you were experiencing without judgment.

With all the talk about work-life conflict, you would have thought that having a personal life detracts from your professional life. My experience, especially over a 20 year career in the corporate world of international finance, has been exactly the opposite.

Thanks to the family and staying active in sports (running, health club, cycling and tennis), I was saved from burn-out. Having interests outside of work is what keeps you grounded and gives you perspective, as well as patience. Have you ever noticed that it’s when you’ve completely worn yourself out at work that you’re prone to “blowing a fuse”? It’s the personal life that gives you the motivation, encouragement, and the balance you need to excel in business.

Skill Switch

My first exposure to women’s networks was in 2009 when I was asked to give a talk at the launch of the women’s network at the bank I was working for, sharing a platform with the CEO. “Why me, I asked? I don’t even know what a women’s network is.” The reply: “We want to know how you did it. How do you get to the ranks of managing director and have three kids and a spouse with an equally demanding career?”

Before that moment, I honestly never thought about it. Preparing for that speech gave me a wonderful opportunity to reflect. What I realized I had been doing all those years, almost subconsciously, was leveraging the skills I was learning in my personal life at work as well as vice versa – leveraging the skills I was learning at home in my professional life.

Communication and Values & Integrity

It was at home that I learned to be really clear as a “team leader.” I needed to choose the right words to motivate the childcare provider, the kids, my husband, etc.

At home you can’t get away with political correctness or vague terms, especially with children. They take each word literally. And worse yet, they watch you like a hawk! What you do is equally as important as what you say. Did you do something that contradicts what you said? Your kids will be the first ones to call you out on it and they’re looking for an opportunity to do just that. Unlike colleagues, they’re not afraid to tell you when you’re “wrong.” This was a priceless lesson!

To be a leader in business, your words have to mean something. You have to follow through with what you say. When you don’t, you lose all credibility. A leader is a leader whether that’s at home or at work. The exact same skill set is required.

Team Work and Delegation

As I progressed in my career, I had to learn to let go of the detail. It was hard. I’m a perfectionist, and I like things done to an incredibly high standard. After many appraisals with the same “area for improvement” highlighted, I knew that unless I learned how to delegate and manage others, I’d be stuck doing the same thing, in the same role for years.

Delegation of course doesn’t mean that the task or challenge magically disappears. You’re still responsible for coaching and motivating someone else to resolve the issue. After a few successes I found the power of helping others learn new skills exhilarating, especially the older I became. Yes, of course I could take on that project, but wouldn’t it be fantastic to offer the opportunity to a less experienced member of my team?

Balancing career and family requires, first and foremost, teamwork. The answer to the question “How did you do it?” is “I didn’t do it – the team did, my other half, the variety of child care providers, and the kids themselves did it.” Doing it all yourself not only makes you a high risk for a nervous breakdown, but it’s also no fun! Just like at work delegating, managing and motivating is not easy. You’ve got to make a concerted effort and work at it day by day.

Managing Your Energy, Rather than Your Time

What scared me the most about getting stuck in the same role or being sidelined was losing my energy. I loved my career – the adrenaline, the constant development of new products and ideas, the humor – and unless I kept progressing I knew I’d get bored. Boredom is another danger to achieving work-life balance. It’s when we’re enjoying what we’re doing that we feel energized. We can then bring that energy back into our personal lives.

It’s because of my career, not in spite of it, that I was able to create and maintain positive, healthy relationships at home. I felt fulfilled and happy in my career, which enabled me to support the ambition of my other half and gave me the energy to be a good parent.

So while any career or business takes dedication, it’s important to remember that it’s because of your personal life that you can more easily manage the challenges of work and are better equipped with a broader set of skills.

Following a 20 year career in International Finance, Christine authored the book Step Aside Super Woman, a first-hand account on how to achieve work-life balance. She is now co-founder & Managing Director of Women in Business Superseries, a training consultancy dedicated to helping professional women fast track their careers. As an accomplished international speaker, Christine has been featured by the London Evening Standard, City AM, Women in Banking & Finance Magazine, Computer Weekly, WDRC 1360 AM, and many others.

By Melissa J. Anderson (New York City)

According to Stacy Bash Polley, Partner and Co-Head of Fixed Income Sales for the Americas at Goldman Sachs, it’s important for senior women to serve as role models and advocates for the next generation of women in finance.

Bash Polley, co-chair of Goldman Sachs’ Firmwide Women’s Network, said that the group’s events are designed to make senior women aware of their own impact on career development.

She explained that in her experience, there are three ways that women engage: as role models, mentors and advocates. Role models are the most passive of the three, serving as visible examples of career success and inspiring younger women to visualize their own career trajectories. Mentors serve as coaches and counselors, guiding women to optimize their current situations to achieve success. Advocates actively engage in the tactical management of someone’s career, identifying the platform that will allow that person to combine his or her passion and skill set for maximum performance.

“All successful women become role models, so we want them to understand that with more visibility comes more responsibility. Once a woman becomes more senior, she should become a mentor or advocate of more junior women and pay it forward. This is how we get critical mass,” she said.

Career in Financial Services

Bash Polley was raised in Queens, NY and went on to do her undergraduate work at SUNY Albany. She graduated with degrees in Finance and Management Systems.

Her first job out of college was in technology consulting at Ernst & Young. “I designed mainframe computer systems for three years, but I always had an eye on Wall Street. To get myself on this path, I went to get my MBA at Wharton.”

After completing the Summer Associate program at Goldman Sachs in 1993, she joined as an Associate in Fixed Income Sales in 1994. The fixed income markets were very difficult in 1994, she explained and two months into the program, many of Wall Street’s biggest firms, including Goldman Sachs, reduced the size of their workforces. “It was a lesson I never forgot: businesses are cyclical and you have to figure out ways to stay positive and motivated,” Bash Polley said.

She worked hard at developing relationships with her clients to turn them into some of the most important clients of the firm. In fact, she said, one of her proudest achievements has been the ability to differentiate herself, not just in becoming a top producer, but also understanding the needs of her clients and delivering solutions that helped them manage their own businesses.

She added, “I’m also extremely proud of the legacy I’ll leave in sponsoring, mentoring, and promoting women in the field.”

Bash Polley is member of the Firmwide Diversity Committee and co-chair of the Firmwide Women’s Network. “Of course, we talk about issues that are germane to being a woman, like work-life balance. But the events are also very focused on discussing business and commercial issues.”

Changes in the Financial World

Bash Polley says she is fascinated by the increasingly global nature of business. “The thing that excites me the most is the way the world has changed. We are now always thinking globally in terms of opportunities for our clients, particularly when it comes to the growth markets.”

“Growth markets are a big focus for the firm, and not just for us, but for clients as well. We want to be sure we have the best resources and strategies for a global client base.”

Though changes in the industry have led to questions about what the future will bring, Bash Polley wants to ensure that young people are able to see the benefits of a career on Wall Street. “There’s also a lot going on right now that affects how we run our business. But with every issue or crisis comes an opportunity to learn and to make an impact on the industry,” she said.

Advice for Women in Financial Services

“Women are gaining momentum in the industry, and the overt barriers to success are largely dismantled. Now that we have made these great strides, we want to use the momentum to focus on how women can produce strong results in their work,” Bash Polley said.

“Having managed both women and men, I’ve seen that women sometimes overanalyze,” she continued. “Women tend, when thinking about the next step in their career, to think about all the consequences of asking for a challenge. They think, ‘I’ve just got into the groove or momentum of work life balance – how will this new role interfere?’”

She also noted the benefits of confidence. “You have to have confidence and act like you’ve already arrived. Many people wait until they are given the promotion before acting like a managing director. It’s a self-fulfilling prophesy.”

Bash Polley also shared her “24-hour rule” for work and for her personal life. “When you’re a passionate person, sometimes you respond passionately,” she said. “But when you get bad or unexpected news, it’s better to take a deep breath and not respond right away. After you’ve had time to think about it, you can respond in a way that your comments get heard, instead of your emotions. This has served me well in so many ways.”

In Her Personal Time

“Putting time into my philanthropy is very important to me,” she said. “Given the limited time we all have, my advice is to try to marry your philanthropy with your passions.”

Her interest in performing arts has led her to take seats on the boards of the New Victory Theater and the New York City Center. “It’s important to have passion in your life – it makes you more well-rounded. This is what truly gives you balance.”

Earlier this week, Texas Wall Street Women, a networking and philanthropy group of women in investment management, gathered in Dallas to discuss investment and market trends. The event was held in support of the group’s philanthropic work supporting the Foundation for the Education of Young Women, a public private partnership supporting of six all-girls schools around the state.

As one of the key benefactors of the foundation, the networking group provides mentors and financial support for disadvantaged young women attending the Foundation’s schools around Texas. To date, every girl who has participated in the program has been accepted to college – many of them, the first in their family not only to go on to higher education, but simply to finish high school.

Amy Bean, Executive Director of the FEYW, commented, “Texas Wall Street Women’s financial and professional support has been essential in empowering us to meet our college readiness goals for the girls in FEYW’s six schools.”

She added, “Our alumnae enroll in college at nearly twice the rate of other students from the state, and with TWSW’s continued support, we plan to see more phenomenal results unfold at all of our schools across the state of Texas.”

TWSW’s support of the Foundation shows how, by working together, women can make the impact of mentoring even bigger.

Being Part of Something Historical

Tina Hernandez, an Investment Advisor at Tugar Capital Management, has been a mentor with the TWSW program for a few years now. “It’s meant to support senior girls on their way off to college. It’s a difficult year.”

She said, besides socioeconomic challenges and questions that come with moving from an all-girls school to co-ed college, mentors talk the young women through concerns ranging from the Freshman 15 to romance to what to major in. “They don’t necessarily have family members at home to rely on for experience.”

“For some of the families, this is historical, and it’s so special to be a part of that change. The families are so proud,” she continued.

Hernandez said that she herself had benefited from mentoring when she was younger. Her family was incredibly supportive, she said, but they didn’t always have the answers she needed. “I grew up in inner city New York. I was the first generation to graduate from school and college, and I benefited from understanding worlds outside my own little world. It meant a lot when people saw potential in you.”

She continued, “Getting access to the ‘how to’ is so important for these young women to realize their full potential, achieve heir dreams, and become self sufficient, and help their families in some instances.”

Hernandez encourages her peers to make a become mentors, even though the time commitment is high. “They’re so motivated – we give them the ‘how to,’ and they do the rest from there.”

She added, “It’s really not a lot of time – they have a lot going on as well!”

Partnership for the Future

The connection between TWSW and the FEYW dates back a few years, said Marianne Scott Dwight, General Counsel, Texas Treasury Safekeeping Trust Company. “It’s not just a mentoring program,” she explained. The group also works with groups of girls at the high school level and their families as they prepare for life after school.

Scott, Co-Chair of the Philanthropy committee, has been involved with projects with the FEYW in Austin. The group has helped set up college fairs, worked with Dress for Success, and connected girls with people in the community.

“I think when you’re trying to help someone else, you learn a little about yourself,” Scott said. “When these girls ask questions you can see how you would answer, and it helps looking at your experiences from a different point of view.”

She added, “It’s not all about business, but where we’ve come from and where we’re going. And I think that’s very important.”

“First of all, engaging in any kind of philanthropy, especially when you’re talking about folks who didn’t have the same advantages, it’s something very important to do. It benefits yourself, and it benefits your children, and your future.” Beyond that, she said, working with a group on philanthropy enables you to have a much bigger impact. “Its good to do it with others – it’s hard to do it on your own.”

She explained, “I really believe it takes a village. It’s really one person at a time. You help one, she helps another, and they help another person. That piece is so important. You might be a small group, but it’s so important.”

Building Dreams

Gina E. Betts, Partner at law firm Locke Lord LLP, is chairman of the FEYW and a member of TWSW. She explained that the network of schools was founded by a former client, Lee Posey. “He called and said he had started talking to a young woman on the train. He said, ‘I want to send her to school.’ Then it grew to 15 girls. Then he heard about the Young Women’s Leadership School of East Harlem, and said, ‘I want to do this in Texas.’”

Soon, Posey and his wife, Sally, founded the FEYW, with the goal of providing top-notch education to underprivileged girls. The foundation has since grown to six schools, and is looking to add more.

Betts recalled how in the first year, when the girls were heading off to college, many didn’t have luggage, so TWSW chipped in to provide it. The group also also works with the girls’ parents, on how to support their daughters as they travel to school.

Finally, she said, she hopes the girls gain a broader vision of the impact they can have on the world. “I talked on career day, and I got their attention by talking about the starting salary they could have [in a professional career].”

“I said, ‘I know a lot of you want to do something that can help people. Let me tell you the things I’ve been able to do for charity because of my job, and my clients. If you use your money and connections to help other people, you can do more.’”

“Many of had never thought of careers on Wall Street. Here are kids who never dreamed of college, and now they can actually go.”

After graduating from UC Berkeley, Sonya Sigler went on to the Santa Clara School of Law and then took a job as a staff attorney and corporate counsel at Sega. It was 1992, and at the time, the company was growing rapidly. “I helped build certain processes and infrastructure,” she recalled. “And then I went to Intuit for five years, doing very similar work. It was a very entrepreneurial company and it was interesting to support the new business groups.”

During this time, she developed interest in the business side of the technology industry, and soon moved to IDO Systems, a digital software company funded by the owner of LEGO.

After a few years, she was ready for a new challenge, she said, “And I spent the next nine years at Cataphora, as Vice President of Business Development, General Counsel, and CFO. I had a fluid career there, and I enjoyed being able to help where I was needed.”

Cataphora, which she helped found, develops software for monitoring personal and corporate data, and she focused specifically on legal and investigative software.

“And now I’ve found my way to SFL Data.” The company works with e-discovery software and provides managed services for companies and law firms.

Sigler explained that her transition from law to business was based in her desire for more dynamic work. “Since my first job at Sega, I realized I enjoyed the deal side. I liked organizing chaos, and doing the responsibilities no one else wanted to do.”

She felt doing deals was more interesting than the transactional nature of law, and gravitated to the business side, she explained. “I’ve found a way to combine the negotiation skills of law with the business of deal making.”

Importance of Networking

Early in her career, Sigler recognized the value of networking and building relationships, and she also noticed a lack of effort in attracting women to careers in the digital space. “It was eye opening to me that there weren’t resources to figure it out – how to get more women in the industry.”

That’s why, she said, she founded the Women’s Interactive Entertainment Association. “It was a cross section of women, across different functions – from press, publicity, and marketing, to product development, to graphic artists and engineers.”

She continued, “We held events on things like the skills you need to succeed as a programmer or the importance of the ability to network to get resources when needed. I felt it was a really important thing to be a part of, and I still have friends from that organization 20 years later.”

About two years after the group was founded, it merged with WITI, Women in Technology International. “They did the same thing we did, across the technology industry – it’s a really great networking group and resource.”

Networking also enables you to express the areas you know about – to establish your thought leadership. “One of the most important things I’ve learned is the ability to pick up the phone to talk,” Sigler said. “Being able to speak on hot button trends is really important.”

She explained, “Networking gives you the opportunity to find out what trends and topics should be addressed. My mandate is to speak about how search technology works in the legal industry and how litigation is done.”

Also, she suggested, make sure you understand what you can do to take your networking relationship to the next level. “What can you bring to the table? And what can the person you’re working with help you with? What can you do for them? That attitude will come back to you in spades.”

She added, “How you can help someone is really the question that should be on your mind.”

Networking Tips

First of all, Sigler said, don’t be shy. “I always introduce myself to people – I am a visible person, and I like to read name tags,” she said. She also recommended wearing something that stands out. “Don’t dress in black. I dress in teal or some other memorable color.”

She continued, “Find a way to be comfortable in networking situations. And when you meet someone new, keep in touch – that’s a way to build your network pretty quickly. And stay up to date. You can’t just call someone out of the blue and say, ‘Hey, I need something.’”

“Send them an article they might be interested in – you don’t necessarily need to be asking for something. But it let’s them know what you’re doing.”

Finally, career development or continuing education programs can be a valuable way to network and display your knowledge. She explained, “I’ve been lucky – in the legal industry, people are encouraged to keep doing continuing education, and it’s important for companies to have people with thought leadership roles. Working in business development, you’re in front of people, sharing ideas and education. It’s a way of getting your name out there in a lower key way.”

Outside the Office

Outside of work, Sigler spends time fundraising and volunteering for her children’s school, the San Carlos Charter Learning Center, the first charter school in California. She also does grant writing and fundraising training as well as special ed advocacy training.

She continued, “I love to auto-cross Porsches. I love to take pictures. I do a ton of knitting (at home, while traveling, at my kids sporting events, and in meetings).”

“And I just finished a two year project, chairing the 2012 San Carlos Chickens’ Ball, which is a variety show set in the 1890’s Barbary Coast fo San Francisco that raises money for the 7 schools in the San Carlos School District. It is the longest running PTA fundraiser in the United States, going strong since 1940,” she added.

When you think of a high performing female leader you admire, what traits does she display? Is she innovative? Collaborative? Inspiring? Analytic? Dynamic? Now think about a male leader you admire. How does he approach leadership? What traits does he display?

It shouldn’t surprise you if you tick off a number of similar qualities.

After all, good leaders exhibit many of the same traits, regardless of gender. And while we anticipate that women will perhaps rank higher when it comes to measures of collaboration, developing others, building relationships, and communication, we anticipate that men will perform better when it comes to traits like taking initiative, driving for results, establishing stretch goals, and problem solving.

But, according to new research by Zenger Folkman, it’s time to reexamine those stereotypes. In fact, based on 360 degree evaluations of over 7,000 leaders, not only did women score higher than men on an index of overall leadership effectiveness traits (53 compared to 49), but women ranked higher in twelve out of 16 leadership competencies – including all of the traits listed above.

In fact, the widest gap between men and women leaders was “taking the initiative,” where women scored 11 points higher than men. Why are women performing so much more effectively than male leaders? And why is the gap so wide?

Challenging Stereotypes

Because of women’s traditional nurturing or care-taking persona, we often expect that women will perform better on measures of soft or people skills. And they do.

According to Zenger Folkman’s study of 30 degree evaluations (performed by managers peers, and direct reports), women scored significantly higher soft skills and more dynamic ones. In a recent HBR blog post, they wrote:

“Similarly, most stereotypes would have us believe that female leaders excel at “nurturing” competencies such as developing others and building relationships, and many might put exhibiting integrity and engaging in self-development in that category as well. And in all four cases our data concurred — women did score higher than men.

“But the women’s advantages were not at all confined to traditionally women’s strengths. In fact at every level, more women were rated by their peers, their bosses, their direct reports, and their other associates as better overall leaders than their male counterparts — and the higher the level, the wider that gap grows.”

This finding was surprising. One would anticipate that, since good leaders display many of the same traits, genders would score about evenly on this survey. One would expect see scores showing that women and men are equally rated at most characteristics, with each gender slightly higher or lower on a few items.

But that’s not what we see – women are rated higher than men on the majority of qualities, and on only one quality were men ranked significantly more positive (“Develops Strategic Perspective”). Why?

Why are Women Better Leaders?

Many female leaders have discussed the need to be “better” than the guys in order to be taken seriously, to have to prove themselves constantly, or to withstand frequent challenges. The researchers suggest that this feeling of instability actually creates better leaders. Following a discussion with senior women about the results of their survey, they explain:

“That is, anecdotally, at least, the women we queried don’t feel their appointments are safe. They’re afraid to rest on their laurels. Feeling the need (often keenly) to take initiative, they are more highly motivated to take feedback to heart.

“The irony is that these are fundamental behaviors that drive the success of every leader, whether woman or man.”

Good leaders, regardless of gender, recognize that they can’t get too comfortable, and, being in the minority, female leaders are frequently more aware of this than men.

Jack Zenger, CEO and Co-founder of Zenger Folkman, suggests that companies could benefit by increasing awareness of these stereotypes, and promoting promising female talent – since the research shows they will likely perform better. He said, “It is a well-known fact that women are underrepresented at senior levels of management. Yet the data suggests that by adding more women the overall effectiveness of the leadership team would go up.”

Joe Folkman, President of Zenger Folkman, agreed. He pointed out that the lack of female leaders may be related to the perception that they don’t perform as highly as men – which is unfounded. He said, “while men excel in the technical and strategic arenas, women clearly have the advantage in the extremely important areas of people relationships and communication. They also surpass their male counterparts in driving for results. This we know is counterintuitive to many men.”

Counterintuitive, but true. If companies want to get the most out of their leadership team, they need to reexamine old stereotypes and acknowledge the true performance capabilities of female leaders.

In my executive coaching practice, I come across strong and smart women leaders whose success has come from always being prepared, being “on,” proving that they are smarter and more competent than those they compete with for the next opportunity. In their effort to be perceived as strong they often have a hard time being vulnerable. This can now be the one thing that holds them back from their true leadership potential. How can vulnerability be your biggest strength?

The recent viral (three million views) Ted Talk by author Brene Brown discusses the importance of vulnerability. It got me thinking about how important vulnerability is as a leadership practice, particularly for transformational leaders. As transformational leaders our greatest source of impact is through connecting with others. Transformational leaders impact through personal influence of who they are rather than their positional power.  There can only be limited impact in leadership if we have no way to connect with others beyond our transactional hierarchical positions. According to Brene Brown our ability to be vulnerable requires courage and forms the basis for our connection with others, a connection that is critical if we are to inspire others.

But first a true story. I was recently in my zumba dance class when about half-way through the class I noticed an embarrassingly large tear in my zumba pants right around the inseam of the thigh. I was aghast. What if someone else noticed? All the spontaneity and the joy of zumba was gone and I spent the vast majority of the rest of the class somewhat self-conscious, trying my best to hide the tear, and not make very many moves (something sort of counter-productive if you’re in a zumba class). Ultimately I had a “what the heck” moment and decided to just come out of the closet, so to speak. Feigning as much nonchalance as I could muster, I declared to the person dancing next to me “Look at the tear in my pants. Any idea where I can get some good zumba pants?” I had expected some kind of a reaction…horror, embarrassed laugh. I didn’t get any. It was a matter-of-factly “I got a great deal at TJMaxx.” Whew! The fear of being vulnerable was big. The act of being vulnerable felt like relief.

You’re probably wondering “What does a wardrobe malfunction during Zumba have to do with leadership?” I think it’s an interesting metaphor for how, as leaders, we are embarrassed to “bare ourselves” to others. As a leader, have you ever felt that there are parts of yourself you’ve had to check at the door when you come to work? We all have aspects of ourselves that we’re afraid to share for fear of not being accepted, so we check them at the door.  We “numb” who we are to fit a mold that we believe is desirable. The hard part of this according to Brene Brown is that when we “numb ourselves” to not face this fear, it also kills off the joy and connection that we are fully capable of. This is the kind of connection that deeply engages others and creates our potential for transformational leadership.

At this point, I have a confession to make. I don’t do vulnerability well. It takes a lot of effort on my part.  I have spent my entire life convincing myself and others that I’m strong, smart, and in charge.  It got me high positions and stock options. Vulnerability seems like it would be the opposite. In my corporate jobs as a Region President or Chief Marketing Officer, I felt I needed to constantly prove my value to the organization by being smarter than the next person.

Vulnerability is particularly hard for women who have worked tirelessly to get to where they are, or have hidden parts of themselves to fit what they perceive as the “success mold.” So, in my effort to be strong, I made a decision to not be vulnerable, to not show too much emotion, to always be certain, to be convinced and convincing that I am right.

Here is what I have now discovered. Strength and vulnerability are not opposites. Vulnerability requires great levels of strength and courage. It is actually the next level of evolution in our strength as leaders. It requires courage to be who we are, despite our fears of not being accepted or liked.  It requires that we ourselves accept the parts of ourselves that we don’t like or are ashamed of. It requires courage to talk about our failures and take accountability for them. It requires courage to admit that we are feeling uncertain or that we don’t know all the answers. All of these require an evolution within our being in order to grow from being transactional to transformational leaders.

The story goes that the first thing Indra Nooyi did after being told that she was the chosen one to take on the role of CEO of Pepsi, was to get on a plane and get to her biggest competitor for the job. She wanted to convince him to stay with Pepsi. She told him she needed him and that the company would be better with him on board. That’s showing vulnerability. It takes courage.  A smaller person would have been only too glad to let their nemesis leave.

So, how do we evolve in our ability to be vulnerable? Here are some exercises to practice vulnerability.

1. Become Self-Aware. There are a couple of leadership practices that I believe are truly transformational to growing our self-awareness that I recommend to my executive coaching clients. If you are practicing mindfulness, just start to be aware of when you feel vulnerable. If you are journaling, write about it in your journal. Reflect on what made you feel vulnerable.  What are some qualities you believe you need to hide from others in the workplace? Some of these may be attributes you don’t accept about yourself. Remember what we don’t accept about ourselves can derail us as leaders, so bringing some awareness to this is important work.

2. Reveal Something. Practice revealing more about yourself to your work colleagues. Share something about your background, your values, your story, or a failure you experienced and what you learned from it. For example, after 9/11 happened, I tried to underplay the fact that I am Muslim (albeit a slightly Buddhist leaning Muslim) in my workplace. There was some collective shame associated with what terrorists had done and how they justified their acts, literally hijacking the religion. I stayed well away from conversations related to 9/11. I was surprised when my boss asked me if I was okay and wanted to make sure I hadn’t experienced backlash. You’d be surprised how many truths we don’t reveal about ourselves, truths that we expend a lot of energy maintaining as secrets, that people already know about us. Diana Keough, a friend, story-teller and CEO of ShareWIK Media shares her own riveting story in her TedX Talk “The Power of Personal Story.” She suggests sharing with others, “this is what you need to know about me to really know me” and that this revealing of who you really are can free you up to be who you are truly capable of being, to expand your ability to connect and innovate.

3. Declare How You Feel In The Moment. The next time you are feeling uncertain or embarrassed, just declare it. I am a bit uncertain about this. I start with “I have a confession to make.” It usually gets people to listen and be prepared for what’s coming next. The fact is that when you are uncertain, most people know that anyway. Putting it out in the open creates an environment of greater authenticity and truth. As a leader, this culture of authenticity, transparency and truth is what we want to grow in our organizations. When you are able to be vulnerable you give others permission to do the same and it creates greater connection and honest conversations within teams and organizations.

4. Admit It When You’re Wrong. When you, as a leader, model accepting your mistakes, it creates a culture where people can take accountability for failure, to learn from it, and to move on. It also creates a culture of innovation where risk-taking is accepted. Without acceptance of failure, cultures don’t tolerate calculated risk-taking.

5. Recognize When You Have An Opportunity for Growth. As leaders we are not perfect. We each bring strengths to the table as well as opportunities for growth. When we openly recognize our own opportunities for growth we allow ourselves to seek team members who can complement our skill sets, creating well-balanced and diverse teams where each person brings unique strengths to the table. We also get powerful advocates who are willing to step up to help us, if we are willing to ask them to, to grow in our area of opportunity.

6. Recognize Others for Their Ability to Be Vulnerable. When someone has stepped outside of their comfort zone to be vulnerable, authentic, and honest, take a moment to recognize them.

I hope these leadership practices are of use to you in your journey to realizing your potential as a transformational leader. Please share what your struggles or questions are as well as your successes so that together we can help each other build competency in this leadership practice.

Henna Inam is a CEO Coach focused helping women become transformational leaders. A Wharton MBA, and former C-Suite executive with Novartis and P&G, her passion is to engage, empower, and energize women leaders to transform themselves and their businesses. Sign up for her blog at www.transformleaders.tv.

According to a new study by Treasury and Risk magazine, twice as many women as men in finance (80% versus 41%) see a glass ceiling for women in the corporate space.

This is only one of the notable divergences in views between men and women about gender in the corporate workplace. For example, the study also revealed that women are generally dissatisfied with corporate efforts to promote senior level diversity – only 43% of women would give their company’s initiatives an A or B grade, while 80% of men would.

But while it’s clear that more women see challenges to their advancement than men do, times are changing. In fact, the percentage of men who do acknowledge that there are unseen barriers to women’s advancement is increasing at a rapid rate. The percentage of men who do acknowledge a glass ceiling has increased significantly since just last year when it was only 29%.

Is it this just a statistical quirk, or does it mean times are changing for women in the industry? Either way, the vast difference between male and females regarding fairness for women in the industry is alarming. Despite (or maybe because of) decades of work to promote diversity in finance, the majority of men do not believe there are hidden biases that prevent women from advancing as quickly as they do – and this could be a barrier in itself.

Is Finance Fair for Women?

When asked about their own opportunities for career advancement, men and women gave roughly equivalent answers, with men responding slightly more positively than women (37% of women and 36% of men replied “good,” 24% of women and 28% of men said “very good,” and 8% of women and 11% of men said “excellent”).

On the other hand, when asked specifically about the advancement of women, responses varied significantly between the genders. Only 56% of women said that finance is a great field for both men and women, compared with 87% of men. One reason for this may be a discrepancy in fairness.

For example, a full 90% of women in finance said that “lucrative pay packages are more often offered to men.” Only 45% of men said the same.

Similarly, the vast majority of women surveyed – 92.4%  – said they think women have to work harder to gain the same level of recognition as men, while only 34% of men agreed.

Eight percent of men said they believed companies were quicker to get rid of women executives when problems develop at a company. Over six times as many women (39.9%) said the same.

Perception of (Un)fairness

Most individuals who took the survey said they believed women face “harder choices and bigger sacrifices” than men, particularly around work life issues (91.1% of women compared with 62.7% of men).

But what most men don’t seem to see is the every-day challenges that make the workplace less welcoming to women – unequal pay, having to work harder, less career security. These issues come down to cultural fairness.

This perception of fairness on behalf of men – the majority of individuals in the finance industry – as well as their overall belief that diversity programs are working just fine, may be part of the reason that there are so few women at the top. Almost half of respondents to the survey (46.5%) said that women were less than five percent of top executives of their firms.

When such a large percentage of the finance workforce is unable or unwilling to acknowledge the uneven playing field that exists for female talent, it may make the climb to the top less attractive for women. Encouraging senior men to own up to their own privilege may help create the fairness that could enable companies to balance the gender equation for their workforce.

According to the latest study [PDF] by the Families and Work Institute and the Society for Human Resource Management, flexible working options are becoming more common. On the other hand, it’s becoming more difficult for individuals who make significant changes – like taking a break from work for family responsibilities – to get back into the workforce at the same rate as a few years ago.

For example, while the use of flex time, working from home, or taking time off during the day have all increased since the last survey was performed in 2005, more extensive changes in how people work have decreased. The ability to “return to work gradually after childbirth or adoption,” “take a career break,” or “move between part time and full time work,” have all decreased since 2005.

Day-to-day, the need for more flexibility is clear – today we are seeing increased workloads and busier workers, who are often part of dual-career families. New technology is cutting the physical ties that bind people to the office. And companies are recognizing that.

On the other hand, companies do not seem to be acknowledging the importance of retaining long-term, experienced employees who may need to decrease their work-schedule for a more extended amount of time due to personal pulls. Because women disproportionately take extended leaves of absence or shift between full and part time, this new data suggests that companies may face challenges keeping the pipeline of talented women flowing to the top.

Research shows that when companies refuse to work with women based on their long-term flexibility needs, they leave the workforce altogether. And that’s bad for families, communities, and companies.

Doing More with Less

The researchers attributed some of the changes to the economic situation. By providing more flexibility in how work gets done on a day-to-day basis, workers are able to be more productive. Ellen Galinsky, president and co-founder of FWI and co- author of the study said, “It seems that employers are dealing with the lingering economic instability by trying to accomplish more with fewer people.”

She continued, “Most of the gains allow employees to work longer hours or adjust those hours to care for their personal and family responsibilities while getting their work done. Although some may have expected employers to cut back on flexibility entirely during this economic downturn, we are seeing employers leverage flexibility as they look toward the future.”

Certainly the jobs situation in the US has also had an impact on long term absences – when so many people are struggling to find work, companies may have a hard time justifying extended leave programs. For example, the study said, companies allowing employees to take a career break for personal or family reasons decreased from 73% in 2005 to 52% in 2012. The ability to move from full time to part time work or vice versa, while retaining the same employment level, decreased from 54% to 41% in 2012.

Women are traditionally more likely to be caregivers for both children and elderly parents, and they more often need long-term flexibility because of these pressures. Will the trend toward day-to-day flex alleviate some of the challenges associated with outside responsibilities, making long-term flex less of a necessity?

Trade-offs

The researchers suggest that the decrease in long-term flex comes as a trade-off for more day-to-day flexibility. Ken Matos, senior director of employment research and practice at FWI and the lead author of the report, said, “It is clear that employers continue to struggle with fewer resources for benefits that incur a direct cost.”

He continued, “However, they have made it a priority to grant employees access to a wider variety of benefits that fit their individual and family needs and that improve their health and well-being.”

Finally, the report suggests that while flex policies may be on the books, many work places may not culturally support flexible working. It says:

“Far fewer employers, however, responded “very true” to statements asking whether management rewards those within the organization who support flexible work arrangements (12%) and whether their organization makes a real and ongoing effort to inform employees of the availability of work life assistance (25%).”

By approaching flex as a cultural issue, rather than a matter of policy, companies can better work to make workplace flexibility a reality that ensures individuals are able to care for family responsibilities and be more productive, how and when they need to.