Familiar or Different?Gendered Aspects of Leadership

in Times of Economic Crisis

Becky Havens, Ph.D.

Professor of Economics

Ruth Toews Heinrichs, D.P.A.

Director of Institutional Effectiveness

Point Loma Nazarene University

CBFA Conference, “Making the Familiar Different”

June 30, 2011

Motivating Questions

Are senior leadership styles gendered?What are female leadership distinctives?Do women have unique leadership qualities well-

suited for times of crisis?How does female leadership impact company

performance?How will familiar obstacles of the past give way

to the different needs of the future?What impact can Christian business faculty have

on students, and ultimately on organizations, to make the familiar different?

Background

Perfect storm in higher educationRecent economic crisisSignificant economic structural change

Women are over half of the American workforce, “arguably the biggest social change of our time” (lead story, first issue of The Economist in 2010)

A “Perfect Storm” in Higher Education

Cutbacks, layoffs, wage freezes, reducing operating budgets, building cash reserves

Crisis of trust, fear and uncertaintyWhat do we need from our leaders?

Frequent communicationsHonest explanationsCredibility and clarityRebuilding trust

“We won’t be able to rebuild trust in institutions until leaders learn how to communicate honestly—and create organizations where that’s the norm.”

Guidelines for building a culture of candor are—tell the truth, tell truth to power, diversify sources of information, admit mistakes, encourage transparency, and share information.

James O’Toole and Warren Bennis. “What’s Needed Next: A Culture of Candor.” Harvard Business Review. 87.6 (June 2009): 54-61.

What is Needed in Crisis?

Female Leadership DistinctivesFemale Leadership Tendencies Male Leadership Tendencies

Transformational, people-oriented Transactional, task-oriented

Gain power from relationships Gain power from position

Interactive style Hierarchical style

Participatory style Command and control style

Collaborative, developers Competitive, knock out competition

Inclusive Authoritarian

Lead from the center Lead from the top

Build web-structured organizations Build vertical, top-down organizations

Use human relationship to do business Use goal-oriented planning to do business

Share information Control information

Care about both means and ends Care about ends vs. means

Work is cyclical, never-ending Work has a beginning and an end

Enjoy the journey, process-oriented Enjoy the completion, seek closure

Female Leadership

Joanna Barsh, Susie Cranston and Geoffrey Lewis. How Remarkable Women Lead: The Breakthrough Model for Work and Life. New York: Crown, McKinsey & Company, 2009.

FramingSelf-awarenessLearned optimismMoving onAdaptability

ConnectingInclusivenessReciprocityNetwork designSponsorship

EngagingVoiceOwnershipOpportunities, risks & fearsEnergizing

Sources & usesRecoveryFlow

MeaningHappinessCore strengthsPurpose

Preconditions:TalentDesire to leadTolerance for change

Outcomes:ImpactRenewalJoy

Five Dimensions of Centered Leadership

Women: Living Whole

Live holisticallyValue emotional, spiritual and physical well-

being Treat work and home/family as non-

compartmentalized Connect deeply to work itself and colleaguesOwn their own journeysRespond as optimists in face of challengesSurvive even through painful setbacks

Women’s Leadership in Crisis

Rosener says, “The women’s success shows that a nontraditional leadership style is well suited to the conditions of some work environments and can increase an organization’s chances of surviving in an uncertain world.”

In “How to Be a Good Boss in Bad Times,” Stern concludes that women managers do have an advantage in bad times More collaborative and compassionate – better at delivering bad news Better skilled at building emotional ties and fostering a feeling that “we’re

all in this together” Acknowledge the human component of layoffs – it’s not “just business” Better at inciting trust in the employees who remain

Judy B. Rosener. “Ways Women Lead: The command-and-control leadership style associated with men is not the only way to succeed.” Harvard Business Review. 68.6 (Nov-Dec 1990): 119-125.

Performance: Gender MattersGender diversity is a driver of corporate

performanceCompanies with three or more women in senior

management on their leadership team score higher on organizational excellence criteria

Companies with a higher proportion of women on their senior management teams have a statistically significantly higher financial performance

Women Matter, McKinsey, 2007.

Gendered Leadership Behaviors

Women Use More Frequently

Men Use More Frequently

Men and WomenUse the Same

People development Control and corrective action

Intellectual stimulation

Expectations and rewards

Individualistic decision making

Effective communication

Role model

Inspiration

Participative decision making

Nine Leadership Behaviors (Avolio & Bass)Displayed More Frequently by Gender

Women Matter 2. McKinsey, 2008

Matching Leadership Behaviors and Corporate Performance

Women’s Behaviors Reinforce

Men’s Behaviors Reinforce

Men and WomenReinforce the Same

Work environment and values

Coordination and control

Innovation

Accountability External orientation

Leadership team

Direction

Motivation

Corporate Performance DriversReinforced by Leadership Behaviors, by Gender

Women Matter 2. McKinsey, 2008

Women Bring It

The study shows that women can help fill the leadership needs of the future.

Women Matter 2. McKinsey, 2008.

Top Three Long-term Business Trends Identified by 1000 Global

Business Executives

Four Leadership Behaviors Needed

for the Future

Which Gender Displays More

Frequently

Faster pace of technological innovation

Intellectual stimulation

Both equally

Increasing availability of knowledge and ability to exploit it

Inspiration Women

Competition for talent will intensify and become more global

Participative decision making

Women

Expectations and rewards

Women

Mobility…or glass ceilings?

Women hit a glass ceiling, while men have a glass escalator

Women’s double burden (family/work) is irreconcilable with male-centric corporate modelsAnytime, anywhere – work 24/7Linear career path – no breaksGeographic mobility – unlimited moves

Women are less assertive and self-promotingWomen are more likely to be childlessWomen don’t identify with success and opt-out

Opportunities…or glass cliffs? Many women get their “big break” in crisis times Times of crisis create opportunities for new leaders to

prove themselves More women are appointed to senior leadership in

failing organizations: glass cliff appointments Women’s leadership qualities are perceived as more

suitable for placement in organizational units in crisis

Concern: women are being promoted onto glass cliffs, with formidable hurdles and increased risk of failure, before they can advance up the ladder of leadership to the top positions

Womenomics & Economic RealitiesWomen: the new American workforce majorityGlobalization: increasing income inequalityFamily composition: female-headed households

Divorce & economic status, ownership of assets

Gender wage gap: 23 cents41% unexplained, accumulates over time

Motherhood: discrimination in the labor market Interruptions in job mobility, $1 million “mommy tax” Single biggest factor in poverty of elderly women

Society’s attitudes: caring labor isn’t really work Women who care for children and elderly are “not working” Women should be happily self-sacrificing by “choice”

Women’s Economic ContributionsTwo incomes are required for an American family to

earn a modest livingOnly families with working wives have experienced

inflation-adjusted family income growthWorking wives contribute 42.2% of family earnings4/10 women are primary breadwinners1/4 women are co-breadwinners (25% earnings)Female unemployment rates are below male ratesWomen make up 66% of the workers in 10/15 job

categories likely to grow fastestChanging economic structure toward skill-based v.

muscle-based jobs (where women can compete)

Building Leadership DiversityLeadership: must be from the top

Conduct regular meetings for top management to hear issues from women’s perspective

Organizational Structures: flex time, career breaksStrategic Use of Data: gender diversity indicators

Proportion of women at each level of managementPay levels among men and women in similar functionsAttrition rates among men and women in similar functionsRatio of women promoted to women eligible

People Development: set up mentoring program

Women Matter. McKinsey, 2007.

Making the Familiar Different“The notion that things work better and human

beings become their best selves when men and women work together is found on page one of the Bible.” (James)

Following the attack on the blessed partnership in Genesis, God sent Jesus to restore oneness.

“So whether we are talking about business, banking, politics, ministry, home, or any other human sphere, the Blessed Alliance is still the best way to get the job done.” (James)

Carolyn Custis James, “The Blessed Alliance.” OutcomesONLINE, Christian Leadership Alliance, March 7, 2011.

Implications forChristian Business Faculty

How will we apply these concepts to higher education?

Leadership diversity is critically important for higher education to navigate through the economic crisis and prepare for challenges ahead.

What is one thing that could be done at your institution?

What can be done in your school of business?

“Use adversity to give your lifepurpose and mission.Turn your adversity intoadvantage and opportunity.”

Eunice Kennedy Shriver

Turning Adversity into Advantage

Hope Does Not Disappoint

“…suffering produces endurance, and endurance produces character, and character produces hope, and hope does not disappoint…”

Romans 5:1-5 (excerpt)

Becky Havensbeckyhavens@pointloma.edu

Ruth Heinrichsruthheinrichs@pointloma.edu

Thank You