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Why More Women Should Hold Senior Management Positions

Studies Show the More Women in Management, the More Profitable the Company

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According to an article in the Washington Post, Weekly Edition, July 20-26, 2009 by Katty Kay and Claire Shipman, companies that employ more women in upper level management are more profitable than those that rely heavily on male "talent" to run their businesses.

This exciting (but not surprising) news is not limited to the United States, but is true throughout the world.

"...And it's not only one study, but at least half a dozen, from a broad spectrum of organizations such as Columbia University, McKinsey & Co., Goldman Sachs and Pepperdine University, that document a clear relationship between women in senior management and corporate financial success. By all measures, more women in your company means better performance."

Does the fact that more women in business means more profits across cultural boundaries mean women have some natural ability that men do not? Unlikely, but most people do accept that women approach problems differently from men.

These recent financial studies should send a very clear message to men, in indisputable dollar amounts: women rock the business world.

"..Pepperdine found that the Fortune 500 firms with the best records of putting women at the top were 18 to 69 percent more profitable than the median companies in their industries. McKinsey looked at the top-listed European companies and found that greater gender diversity in management led to higher-than-average stock performance."

An example of how a woman can achieve greater success than a man is made very clear in the story of Marilyn Carlson Nelson. Her father refused to hire her for years, assigning her to "female" jobs in administration. She made her way in the business world on her own and then took over her father's company in her 60s. She more than trippled growth and profits and turned a successful business into a global leader.

One of the points made in the Washington Post article was that men may naturally be more prone to risk taking and competition (thanks to the hormone testosterone), but women are better collaborators and better at achieving long-term results.

So men, if you want your businesses to flourish, hire and promote more qualified women. The results are in, the statistics speak for themselves. Men are the hares and women are the tortoises, who will win the race steady and slow.

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