Women Matter

1
Women Matter

• 2009 Premiers Women Summit

Presentation by Liana Downey, Associate
Principle, McKinsey Company
8 September 2009
CONFIDENTIAL AND PROPRIETARY Any use of this
material without specific permission of McKinsey
Company is strictly prohibited
2
Women mattercompanies with more gender diversity
outperform their peers
0
Percent
10
48
x 1.7
11.4
11.1
64.0
10.3
47.0
Average Return on Equity 200305
Average Earnings (EBIT) 200305
Stock price growth 200507 vs index
SOURCE Amazone Eurofund database Amadeus
research insight datastream Bloomberg McKinsey
3
Why? Women more frequently apply a number of
critical leadership behaviours
Frequency
Critical leadership behaviors
Women apply more and slightly more
People development
Expectations and rewards
Role model
Inspiration
Participative decision making
Women and men apply equally
Intellectual stimulation
Efficient communication
Men apply more
Individualistic decision making
Control and corrective action
4
Thus, companies with 3 or more women in their
boards outperform on all the key drivers of
organisational performance
SOURCE McKinsey
5
The broader environment not all countries are
doing poorly on this
4
Mandated weeks paid parental leave
Net childcare costs as percent of income
Percent of female board members
Norway
44
53
Sweden
27
84
Finland
26
53
USA
15
Australia
14
SOURCE European Professional Womens Network
Immervoll, H., Barber, D., Can Parents Afford to
Work? Childcare Costs, Tax-Benefit Policies and
Work Incentives, 2006, EOWA Australian Census of
Women in leadership, University of Florida,
McKinsey Analysis
6
How is McKinsey doing?
One of the 100 Best Companies for working
mothers.
One of the 10 Best Companies for Paternity Leave
SOURCE Working Mother Magazine
7
What are we doingelements of the McKinsey
Womens initiative
Tailored recruiting
1
2
Flexible programmes
3
Mentorship and career support
4
Institutionalising supportive communities
5
Skill building and development programs
SOURCE McKinsey
8
McKinseys Centred Leadership supporting the
individual
5 dimensions of leadership
SOURCE McKinsey
9
APPENDIX
10
Five elements combine for self-reinforcing
leadership
Framing
Energizing
Connecting
Engaging
Meaning

• Teach yourself optimism and how to stop
  rumination, challenges particularly common in
  times of uncertainty
• Having the right level of optimism helps build
  optimism in those around you, which in turn
  impacts productivity, satisfaction, and health
• Framing gives a leader the mindsets needed to
  connect and engage
• Although optimism and reframing are usually
  necessary for success, they are rarely taught

• Speak up for yourself and take ownership for your
  success, even when it means taking a risk to take
  advantage of opportunity
• Engaging helps you find meaning, energize
  yourself, and connect since each of these
  elements has risk associated with it

• Find the right developmental group to support
  personal growth
• Develop a Sponsorship relationship with someone
  more senior who can create meaningful
  opportunities
• Allies, friends, mentors, and sponsors can all
  help implement Centered Leadership elements in
  day-to-day life

• A more effective approach than traditional
  work-life balance
• Manage your energy levels by understanding what
  restores you at home and at work
• Enacting many elements of Centered Leadership can
  be energizing
• Businesses rarely teach energy management despite
  growing evidence of its effectiveness

• Meaning determines 40 of a persons happiness
• Relationships with others is one of the most
  important sources of meaning
• Meaning can energize people by tapping into
  intrinsic motivation
• Businesses rarely recognize and tailor their
  employee value proposition to reflect the
  powerful motivating force of meaning

11
Centered Leadership practices correlate with
performance and satisfaction
g
Bottom 20 for that practice
Top 20 for that practice
Performance Percent high-performing1
Satisfaction Percent highly satisfied1
Energizing
Engaging
Connecting
Framing
Meaning
Connecting
Framing
Energizing
Engaging
Meaning
1 High performing self-rating in top 10 of
peers highly satisfied self-rating as
extremely satisfied or satisfied (top two boxes
on 6-point scale)
SOURCE McKinsey Quarterly Centered Leadership
survey, N 1,938
12
Australias total childcare costs are relatively
high
d
Germany
Sweden
Greece
Slovak Republic
Finland
Hungary
Denmark
Korea
Norway
Iceland
Belgium
AVERAGE
Japan
Austria
Canada
France
USA
Netherland
New Zealand
Portugal
Australia
UK
Switzerland
Ireland
SOURCE Immervoll, H., Barber, D., Can Parents
Afford to Work? Childcare Costs, Tax-Benefit
Policies and Work Incentives, 2006
13
We asked which leadership behaviours are most
likely to drive your companies success in the
future?
10
of respondents ranking behavior as likely to
drive their companies success
Leadership behaviors
14
Women apply more frequently three of these four
leadership behaviors
10
of respondents ranking behavior as the most
effective to address the future
of respondents perceiving a significant gap
between current prevalence of behaviors and
future needs
Leadership behaviors
Women and menapply equally
Women apply more and slightly more
Women and menapply equally
Men apply more
15
The broader environment not all countries are
doing poorly on this
a
Percentage of board members who are female

• 63 of Australian managers believe their company
  is NOT supportive of women seeking senior
  positions

• Strong political consensus and support for
  policies of gender equality

• High level of family support
• Parental leave (50-80 wks per year)
• Affordable child care costs (6-11 percent of
  total income)
• public allowances for children and support for
  lone parents

• Still battling on the family front
• Maternity leave 14 weeks (as of 2008) (18
  promised)
• Relatively high cost child care (22 percent of
  net income)
• Means tested

Australia
Finland
Sweden
Norway
SOURCE European Professional Womens Network
EOWA Australian Census of Women in leadership,
Australian Institute of Management, McKinsey
Analysis