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Women in Business by Dr. Peter Lorange



It seems absurd these days to specifically state that women are central to business. Yet, it sometimes seems that, for many, this is not yet as obvious as one thinks. We are often inclined to remind others that protecting a firm’s basic values depends on having a healthy organizational gender balance. Today, most business professionals are glad to acknowledge and respect this.


The presence and role of women’s issues have been discussed a great deal in the recent and more distant past. As far back as in 1803, the legendary Napoleon Bonaparte passed a law in France stating that women had fewer rights than men. Even though this has since been changed, regrettably, much discrimination remains to this day. Examples abound of how women tend to be seen differently than their male counterparts, often in negative ways: as inferior, weaker, less driven, and so on. These stereotypical differences had become the status quo until today, not only in many societies, but also in business. Of course, we have come a long way toward eradicating this attitude, but the fight to level the playing field continues!


What are the main issues? I will first review some strong facts to confirm that top organizational performance is built upon a level playing field and then review some key insights that seem to effectively impact the creation of equality.


But before this, what are my main sources? I am privileged to work at an organization, the Lorange Network, in which a woman—Karin Mugnaini—is the president. In addition two recent interviews with successful female leaders had a strong impact on me: with Aliseé du Tonnac, president and CEO of Seedstars, a Geneva-based investment firm, and Clara Gaymard, ex-CEO of GE Europe, co-CEO of Raise (Paris), and board member of several large companies. I have also just read Ms. Lilla Sölhusvik’s (2019) book based on her interviews with eight successful Norwegian female leaders. Unfortunately, this book is still only available in Norwegian. However, her main points were highly relevant in many of our meetings, as well as my conversations with Alisée de Tonnac and Clara Gaymard.

Now to discuss the three basic realities. First, effective key decision tend to be made in organizations with a good gender balance. There seem to be, above all, two reasons for this. First, it is, of course, always key to attract the best brains to a firm. By excluding the female brain pool, we automatically exclude more or less 50% of the available talent pool. Thus, actively searching for talented women is crucial!


Second, the two sexes often display significant differences in decision-making. Men often tend to be more direct, make relatively fast decisions, and sometimes even blatantly favor other male colleagues. Women, in contrast, often consider a fuller range of factors, including “softer” dimensions, and seem more willing to work with others, regardless of their gender. They may take longer to make decisions, but the end results may well be better. The Lorange Network published an interview by Karin Mugnaini with Elin Hurvenes, founder and chairwoman of the Professional Boards Forum, whose mission is to bring more non-executive female leaders onto boards. Elin highlighted that an improved atmosphere, more questioning (and listening), and risk awareness are three distinct deliverables that women directors contribute to boards.


Third, organizational culture may be better with a more balanced gender mix. Women may put relatively more emphasis on “softer” factors such as interpersonal relationship factors and political considerations. In the end, the culture may be healthier.


An essential issue at this stage concerns effective tactics for bringing women forward into the upper business echelons. I shall highlight six tactics, all deriving from the important work of Lilla Sölhusvik, whose book’s title, when translated into English, is Because It Is Worth It. Most of the women Sölhusvik interviewed were in their 50ss, but one was slightly older (61), and one was slightly younger (42). They all seem to have followed paths toward their success built on principles similar to those synthesized by Sölhusvik, which are as follows:

Principle One


Be seen. It seems to be particularly important to signal one’s interest in a position, rather than to sit and wait until a job announcement appears. Of course, there are ways to follow positions: through word of mouth, head-hunters, a job-focused website, etc.


Principle Two

Say yes! Of course, one must not hesitate to pick up new challenges. This includes saying yes to new responsibilities, even to relocations! Those who say no too often, in contrast, tend not to be asked again.


Principle Three

Be loyal to your fans. Back your fans up! It is important to remember when one gets help and from whom. A key principle is to always try to give back. Clearly, such a process of balancing “give” and “take” over time must be natural free from calculation. However, this two-way process is indeed the key! Having good backers and supporters is essential!


Principle Four

Try to end up with a spouse or partner who supports your efforts. A modern family needs to handle many tasks. The time is long since gone when one might commonly be supported by paid help. Instead, family-related issues such as dropping children off and picking them up from school, supporting children with their homework, cooking, washing, and gardening must be shared. The old tradition that many of these tasks should be handled by the woman is, of course, obsolete and unacceptable! It is probably also a great advantage to not be in direct competition with one’s spouse in one’s career – as much separation as possible is needed (with different firms, types of jobs, etc.).


Principle Five

Get professional help when needed. Do not try to be perfect in everything! Some women tend to try to handle all types of tasks. However, why run the risk of overextending oneself? A degree of modesty might be appropriate now and then, not only by acknowledging that some challenges may be outside one’s sphere of competence and, as a consequence, hiring outside expertise, such as consultant or other experts. Ms. Sölhusvik claims that “90% is enough”!


Principle Six

It is all worth it! Being a successful leader, of course, not only requires hard work, but also some sacrifice (less free time, more responsibility, etc.). But the rewards are ample, not only the financial rewards but also being centrally involved in making things happen! Having a variety of tasks and meeting many interesting people are also key benefits.

Women are often better listeners than men, who tend to go after often unrealistic goals. Both dimensions are, of course, valid, however. One way to combine both dimensions might be to co-locate males and females as pairs in an organization’s offices. The Paris-based investment group Raise has implemented this approach, which, they claim, has resulted in more realistic, aggressive decision-making.


Coaching and recruiting are indeed keys to ensuring a more appropriate gender balance. Here, we might learn a lot from the world of sports. Recruits are identified early and exposed to systematic coaching over many years. Thus, talented women might ideally be sought out early. They may then become members of an explicit development program, together with other strong talents – women and men – and with male and female coaches. Thus, women become part of a natural gender mix and are not isolated from the rest of the organization. Hurvenes also identified this point when she addressed the need to “put women on the CEO bench” and how women leaders can develop and/or get on “the bench.” Women need to be vocal about their ambitions and be prepared to be moved around, get P&L experience, asked to run a business unit, etc.


REFERENCE

  1. Sölhusvik, L., (20Women9), Fordi Det Er Verdt Det, Cappelen Damm.


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