Leading Effectively e-Newsletter - May 2008 Issue

No More Glass Ceiling: New Thinking on Women in Leadership
Women Execs: Retaining Leaders at the Top

Talent management is top-of-mind for many organizations seeking to be competitive in the long term. Not surprisingly, women are a crucial part of the talent equation.

"Engaging and retaining senior women executives is critical not only to the competitiveness of individual organizations but also for entire industries," says CCL's Sara King.

In spite of the success and acceptance of women in many industries, the Wall Street Journal reported that the number of women rising to and attaining senior level positions is decreasing ("On Diversity, America Isn't Putting Its Money Where Its Mouth Is," February 25, 2008). The percentage of women officers in line jobs that lead to the corner office fell in 2007 by six percent, and the number of women in corporate-officer positions fell in 2007 from 16.4 percent to 15.4 percent, according to the report.

The article's authors conclude that "the lack of diversity means that whenever a top minority or female executive is ousted or retires, any gains are erased."

To counteract this apparent slide in retention and promotion of senior-level women, organizations need to recognize two key issues, notes King:

• The nature of leadership is changing; and
• Retention of senior women leaders is critical for organizations to remain competitive.

In a recent white paper, 10 Trends: A Study of Senior Executives' Views on the Future, CCL reported the views of nearly 250 senior executives on leadership trends in business. The research showed that the profile of successful leadership is in transition and that current executives are grappling with an array of new challenges to remain competitive. CCL found that:

• Nearly 92 percent of the executives surveyed believe the challenges their organizations face are more complex than they were just five years ago.
• The shortage of available talent creates an environment of stress for companies and their leaders.
• New leadership skills must be developed for this new leadership environment.

The report also described a critical shortage of middle and top leaders in the next few years. The vast majority of the executives surveyed believed that organizations will need to find innovative ways to attract and retain older workers while meeting the development and career needs of those just entering the workforce.

"The cable industry, for example, fears losing women who are in a 'succession bottle-neck' - mid-level and senior executives waiting for top executives to retire or move on so that desirable spots can open up," says King. "Many talented people are stuck right below the top levels, waiting for company founders and their generation to move on. Organizations that don't value their seasoned leaders run the risk of losing a key asset to competitors or other industries. This is true for both men and women. Organizations that intentionally address the concerns and leadership development issues of women have an extra tool in the war for talent."

To avoid the consequences of a serious "brain drain" of leaders, organizations should create the opportunity for senior women executives to continue to grow as executive leaders, to remain a viable pool for C-level openings, to network with their peers and to develop insights into their own leadership roles as models for other women in the industry.