Why Women Make Better Business Leaders
A Note About this Video
For those of you who have followed me on Twitter for two years, you know that I have written often about women in business.
Their contributions have become legendary.
Every year or so an innovative thought leader tackles this subject from a fresh perspective. My thanks to Emily Stewart for this compelling video.
A Harvard Business Review study showed that a business group’s collective IQ went up when there were women on the team. And yet, only 12 of the Fortune 500 companies are run by women. So what are the other 488 missing out on?
Communication: Firms with more women on their boards have 42% higher sales returns, 66% higher return on invested capital, and 53% higher return on equity. Take Yahoo’s new CEO Marissa Mayer who laid out a strategic outline for the declining company and watched the stock gain 5.7% closing at $16.67, its highest level in over a year. These success rates are often linked to superior communication skills. Studies show while women speak fewer words in a day than men they actually have a better command of the language for getting their point across.
Initiative: In a study by Harvard Business Review, women in management were rated 11.58 percentile points above their male peers at taking initiative in the workplace. Indra Nooyi, CEO of PepsiCo. forged ahead with a plan to focus on more nutritious drinks despite criticism. It’s a risk that could turn a 10 billion dollar business into 30 billion dollars in just ten years.
Emotional Intelligence: Daniel Goleman, author of “The Brain and Emotional Intelligence: New Insights,” states that truly effective leadership is distinguished by a high degree of emotional intelligence. And according to Goleman women on average outdo men when it comes to sensing a person’s feelings in the moment. Meg Whitman, former CEO of ebay and current CEO of HP was featured in Psychology Today for leading with emotional intelligence. Under her eight year reign, ebay was the fastest growing company in history. In her book The Power of Many, she writes: “I believe that being willing and able to actively listen is a vital skill for any leader. Not only is listening the right thing to, an antidote to arrogance, it also leads to all sorts of competitive advantages.”
If you found this video compelling, you will find more here.