The Business Case for Equality
We are leaving money on the table. A typical U.S. organization has 20% or less women on their C-suite. Most commonly leading Human Resources, Marketing, or Corporate Communications, women are still outnumbered on most leadership teams.
Why does this matter?
As outlined in the latest McKinsey Diversity Matters report, they found a 21% higher profitability rate associated with organizations that have gender balance on their leadership team vs. those that do not have balance. Quantify that at your organization – look at your last earnings report and tack on an extra 21% – how much is that at your organization? Money your competitors are taking, or worse yet, lost opportunities altogether.
It begins with beliefs
The best business case I have heard to date came from one of my clients in Southern Indiana – Cummins. A male-dominated industry, headquartered in rural America, Cummins could easily make excuses for a lack of diversity. Instead, they boast 35% women on their C-Suite. They have an intentional focus on gender equality and belief that it is what is best for business.
They believe gender equality is a driver for future growth.
Their leadership team consistently shares that as a global business, their growth depends on the growth of developing countries. Developing countries with women leaders in their communities grow at a much faster rate than those where women are underrepresented. Therefore, to fuel continued growth, they need women reflected throughout their organization to mirror customers. Genius.