Women in senior executive positions enhance ROI.

I just finished reading, Womenomics, Write You Own Rules for Success by Claire Shipman and Katty Kay.  They had some fascinating insights into the value of female leaders and their contributions to ROI.

If you want your organization to increase its ROI, then you might want to know about recent research done in France. The findings show that companies with more women in management positions did better during 2008 than those with fewer women.  For example, the share price of Hermes rose by 16.8%.  Keep in mind that 55% of the firm’s executives are women.

At Pepperdine University, a nineteen year survey of 215 Fortune 500 companies and took three different measures of profitability:  equity, revenue, and assets.   The companies that had the best records for promoting women outperformed the competition.  These companies beat the industry average by 116% in terms of equity, 46% in terms of revenue, and 41% in terms of assets.  It concludes women are good for profits.

What is the link between gender diversity in the top leadership and U.S. corporate financial performance?  In the late 1990s, Catalyst, an independent research organization, completed a study of 353 of the Fortune 500.  A higher number of women in senior management results in a higher return on equity and a higher total return to shareholders by more than one third. 

In an effort to make their firms more competitive in the global economy, the minister of trade in Norway demanded that 40% of women be on the board of each company.  

If your company wants to make more money, then one solution is to employ more women in senior leadership positions.  It seems women are now the hot commodity in today’s workplace.

What can you do to attract and retain top female talent?   Women place a high value on flexibility because it allows them to more effectively live their dual lives as professional women and as mothers.  To retain these employees, companies are offering alternative work schedules, furloughs, unpaid vacation time, and reduced schedules. 

Flexibility is viewed as a way to keep up morale and avoid mass layoffs.  During harsh economic times, this is a way to cut labor costs.  Yet at the same time, companies are able to accommodate the wishes for flexibility desired by many women.

What will the future bring?  Women earn 57% of bachelor’s degrees in the United States and 58% of all graduate degrees.  In business, women comprise over one third of all graduates.  From 1996 to 2002, the senior ranks of women in Fortune 500 companies grew from 10% to 16%.  This is more than a 50% increase in just six years.  The feminization of leadership is a trend worth watching.

Do you think seeking out women for senior executive positions is a good business strategy?

Since 1990, U.S. creativity has been in a downward spiral!Image: jscreationzs / FreeDigitalPhotos.net

Have you ever thought about whether creativity could be measured?  It seems that in 1958 E. Paul Torrance designed a series of creativity tasks to measure creativity.  He administered his test to 400 children in Minneapolis. 

I would question how accurate this creativity index would be in predicting creativity for adults.  I read a recent Newsweek article, The Creativity Crisis, by Po Bronson and Ashley Merryman.   Apparently, Jonathan Plucker of Indiana University, validated a more than three times correlation to lifetime creative accomplishment with Torrance’s creativity index as contrasted to childhood IQ.

This year, Kyung Hee Kim at the College of William & Mary did a follow up study where he analyzed almost 300,000 Torrance scores of children and adults.  It appears that creativity scores steadily rose, just like IQ scores until 1990 and then creativity scores nosedived.  The decline is most significant from kindergarten through sixth grade.

In my prior blog post, I wrote about the CEO Survey of 1,500 CEOs who unequivocally identified creativity as the most important leadership competency for success in the future.  

What does this mean for the United States in terms of maintaining our leadership position in the world?  Our leaders understand that creativity is essential; yet at the same time our creativity scores are plummeting!

Stop and think about where we currently need creative solutions.  We are crying out for new ideas to solve our ongoing economic crisis.  We need new ideas to solve the issues of sustainability.  We need new ideas to support our changing demographics.

Creativity includes not only generating great ideas, but it also means being open to the ideas of others.  Through creative thinking we can generate solutions for a health care system as well as new thinking for moving towards a more peaceful world. We need new ideas to make our country more competitive and to identify new ways to measure success. 

Do you think creativity is important?

I listened to a webinar sponsored by Harvard Business Review.  IBM’s Saul Berman and Peter J. Korsten shared some insights on standout companies in today’s ambiguous environment. 

As we come out of the worst recession in 50 years, the new economic environment is viewed as structurally different, with more complexity, more uncertainty, and more volatility.  However, standout companies (the top 25% ) are turning complexity to their advantage with creative leadership.

There are three different ways that standout companies achieve success and capitalize on complexity.  They embody creative leadership, they reinvent customer relationships, and they build operating dexterity. 

A speedy decision is valued over a correct decision.   There is a philosophy of correcting things as they move forward.

Creativity is the leading indicator of leadership quality.  Creative leadership drives the change needed in the organization to stay ahead of the market.  Creative leaders use different communication styles and tools.  

They are more open to experimentation with Twitter, Facebook, LinkedIn and other social media.  Standout companies break with the status quo of industry, enterprise, and revenue models.

Chief executives believe that to navigate an increasingly complex world will require creativity.  They will co-create with their clients.  They will globalize what is possible due to standardization and localize what is necessary and whatever needs local tuning.  Think “glocal.”

When creativity is implemented within an organization, then it is better prepared to deal with some of the massive shifts taking place such as new government regulations, changes in global economic power centers, accelerated industry transformation, growing volumes of data, and rapidly evolving customer preferences.

Clearly creativity is the new leadership differentiator for standout companies.   You must ask yourself, what tools are you providing to your organization to unleash the creativity of your employees?

Permission to use graphic granted by IBM.

Bala Kanayson, Whole Mind Success

How often have you wished you could silence the constant talking that is going on in your head? You are trying to be an effective leader and grow your business, yet all of this chatter is interfering with your productivity. I recently heard Bala Kanayson address this issue. His solution includes developing your inner creativity.

How would you like to be able to learn proven methods to increase your creativity and productivity? Imagine being able to use your left and right brain, your conscious mind, and your subconscious mind in a deliberate manner.

Bala Kanayson uses Whole Mind Success as a unique method of using the whole mind in both our business and personal lives. He uses recent developments in neuroscience and psychology, combined with methods of silencing the mind to reduce the constant “noise” in our heads.

Extensive neurological research using functional magnetic resonance imaging (fMRI) demonstrates how you can actually change the internal structure of your brain. Bala Kanayson uses proven scientific techniques to build new neuronal circuits that enhance creativity and develop new skills.

I asked Bala, “Now what kinds of skills do you mean?” He outlined some of the crucial skills we all need to be exceptional performers in our lives such as:

• Becoming a more effective leader.
• Reducing stress in your life.
• Finding new ways to solve difficult problems.
• Using both sides of the brain for maximum productivity and creativity.
• Mastering the art of silencing your mind.
• Setting goals and empowering yourself to achieve them.
• Communicating effectively with others.
• Defining your path for success and achieving it.

I was astounded. It seems you can overcome decades of social conditioning and preconceptions. The outcome results in a more complete transformation of each individual’s thinking and behavior.

I asked Bala, “Do you mean I can have increased self-esteem, improved study skills, and become more effective with my business decision making ability?

“Absolutely, you are correct!” Bala responded.

Now think about the significance of the impact upon your life if you decide to develop your creative thinking by using both sides of the brain for maximum productivity and creativity! If you are an engineer you could create new engineering designs. If you are an artist you could develop more creative artwork. If you are an athlete you could improve your performance in sports.

Now, you must go to to listen to Paul Lawrence Vann’s interview of Bala Kanayson on The Wealthy Speaker Show on blogtalkradio.  You will be pleased you followed my recommendation.