Women Leaders Bring Profit

WOMEN LEADERS BRING PROFIT

BUSINESS CASE: MORE WOMEN = HIGHER PROFITS

Companies with 30% female leadership had profit margins that were up to 6% higher

Data shows an increase of women in top management from 0 to 30% increases profitability by 15%

Companies in the top quartile for gender diversity are 15% more likely to have financial returns above national industry median

Fortune 500 companies with at least 3 female directors have 42% higher return on sales and 53% higher return on equity

Companies with the highest percentage of women on boards had a 66% greater return on invested capital

More women on boards is associated with having more women in leadership, otherwise known as the “pipeline effect.”

Sources: Peterson Institute, EY, McKinsey & Company and Catalyst

WARREN BUFFET – FEMINIST CAPITALIST

“there is no telling how far we can go when we tap into the collective potential of the entire population.”

HBR: THE MORE WOMEN ON A TEAM THE HIGHER THE TEAM INTELLIGENCE

Subjects age 18 to 60 given intelligence tests Randomly assigned to teams Each team to complete several tasks—including

brainstorming, decision making, and visual puzzles—and solve one complex problem

Teams were given intelligence scores based on performance Teams that had members with higher IQs didn’t earn much

higher scores Those that had more women did

Professors Woolley and Malone, along with Christopher Chabris, Sandy Pentland, and Nada Hashmi

WOMEN IN S&P 500 COMPANIES

Women control 85% of overall consumer spending; 50% of all stock ownership, 60% of all US personal wealth and comprise 45% of the labor force

Source: Catalyst

PERCENTAGE OF FORTUNE 500 FEMALE CEO’S

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

0.4%0.8%

1.2%1.4%1.6%1.8%2.0%2.4%2.4%

3.0%3.0%2.4%

3.6%4.0%

4.8%4.6%

Percentage of Women

Women Men

4.6%

Source: McKinsey & Company

PEW RESEARCH CENTER: MEN AND WOMEN SEEN AS EQUALLY QUALIFIED TO LEAD IN THE BUSINESS WORLD

11%7%

80%

Men WomenEqually Good Leaders

INDUSTRY DIFFERENCES

Major Hospital

Major Retail Chain

Large Bank or Financial Institution

Computer Software Company

Large Oil or Gas Company

Professional Sports Team

0% 20% 40% 60% 80% 100%Woman Would Do a Better Job Man Would Do a Better JobNo Difference/Depends


WHAT IS GOING ON? Women fall behind early add continue to

lose ground Women are promoted and hired at lower

rates Women remain underrepresented at every

level

Entry

Leve

l

Manag

er

Sr. Man

ager

/Dire

ctor VP

SVP

C-Suit

e0%

20%40%60%80%

Men Women% Women in PipelineSource: McKinsey & Company

WOMEN ARE LESS LIKELY TO BE PROMOTED INTO A FIRST SUPERVISORY POSITION

0

20

40

60

80

100

120

140

100

130

Women Promoted Men Promoted

Twice as many men are hired from the outside as directors and more than three times as many are hired as SVPs

Gap in Rate of First Supervisor Promotions – For Every 100 Women, 130 Men


MEN AND WOMEN IN LINE ROLES: CEO PATH

Entry Level Manager Senior Manager/Director

VP SVP C-Suite0

10

20

30

40

50

60

70

80

63% 68%63% 65% 62% 67%

56%61%

54% 51% 50% 48%

Men Women

80%

20%

Chart Title

Men

Women

Sources: McKinsey & Company and Spencer Stuart

UNCONSCIOUS BIAS (BY MEN & WOMEN)

Source: Pantene

TALENT PIPELINES AT EACH LEVEL

Technology Professional and Information Services0%

10%

20%

30%

40%

50%

60%

70%

36%

59%

31%

47%

28%

41%

24%

34%

17%

30%

19% 22%

Entry Level Manager Senior Mgr/DirVP SVP C-Suite

Source: Breaking Down the Gender Challenge – McKinsey and Company

THE PROBLEM IN TECHNOLOGY

32%

66%

4%

Source: Girls Who Code

GENDER GAP IN COMPUTING

37% 18

%


YIKES!By 2020, there will be 1.4 millions jobs available in computing-related fields. US graduates will fill ~ 29%, women are on track to fill just 3% of them


WHAT WORKS?

Make a compelling case for gender diversity Measure and share performance Ensure hiring, promotions and reviews are fair Invest in employee training Focus on accountability and results

INNOVATIVE EMPLOYERS

Remove gender identifying information off of resumes Managers are provided, and consider, a diverse lineup of candidates for open

positions Managers evaluate performance using standardized, clear and objective metrics Leaders are held accountable for improving gender diversity The company embraces diverse leadership styles Managers create a supportive work environment and mentor high-potential women Women are provided job experiences that are critical for advancement and success Managers leverage the diverse strength of all employees Companies provide flexibility to fit work into lives There is a smooth transition process to and from extended leaves

WIIFM?

Fully utilize all of the talent you have Drive better business performance Win the war for talent Broaden the diversity of thought in order to enhance innovation

and creativity Build a stronger team

2020 WOMEN ON BOARDS EVENT 11/17/16

National Conversation on Board Diversity Goal to have women as 20% of public boards by the year 2020 Devon is a major sponsor of the event Meinders School of Business 3rd Floor Gardner Conference Room 11/17/16 from 7:30 AM to 12:00 Noon Reception the night before at Mickey Mantle’s Restaurant Register at 2020wob.com Flyers at the back of the room

DEVON ENERGY IT ORGANIZATION

Today’s business demands in the Oil and Gas industry require true technology innovationo High performing, agile teamso Committed multi-departmental partnerships to innovate business leveraging

technologyo Transparent communicationo Diversity of thought and opennesso Organizational learning and adaptation

Strongly believe the business case that Donna just articulated applies directly to helping Devon IT deliver more value, more quickly to our business

CHALLENGES FOR DEVON IT

Oil companies not usually considered “progressive” Industry not perceived from the outside as a technology leader Diversity in IT is mostly international, not gender Pipeline of technology candidates that we see resembles the

statistics just reviewed, women are by far in the minority

We have a lot of perception AND reality to overcome

DEVON IT – OUR JOURNEY AHEAD

Commitment from the CEO down to increase “Diversity of Thought” Lean in Circle founded to raise awareness and open communication

between women and men OKWIT sponsorships and participation Looking at two specific phases for addressing our gender diversity

o Recruiting – Looking at ways to encourage more female candidate applications, and for identifying the “real” skills we are hiring for• learning, communication & teamwork as much as technical experience

o Professional development – Identifying differences in styles that can be leveraged to rebalance the curve

Establishing clear leadership expectations for encouraging diversity of thought

CONTACT INFORMATIONBrandy Semore, PMPDirector of Operations Pinnacle Business SystemsPresident/Executive DirectorOklahoma Women in [email protected]

Donna Miller, PCC, MBAPresidentExecutive Resource CenterOklahoma Chapter ChairWomen Presidents’ [email protected]

Ben WilliamsChief Information OfficerDevon [email protected]

mailto:[email protected]



Women Leaders Bring Profit

Technology

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