Fri, May 22, 2009 - 8:22:52

Are Women Better Business Leaders?

Pop quiz everyone!  Before you read on, take a moment to fill in the blanks for the following statement:

Companies with more _______ in leadership positions financially outperform those that don’t.
a. Accountants
b. Men
c. Risk-takers
d. Women

If you answered, “d. Women,” congratulations!  You are correct.  If you didn’t, read on to find out how the face of 21st century business leadership is already changing and why you should get on board.

As the women leaders of a billion dollar ad agency, we don’t need a scientific study or a presentation full of statistical findings to tell us that, on average, companies with more women in leadership positions financially outperform those that don’t.  We know firsthand the amazing contributions that women all over the country are making in business: from corporate CEOs to small business owners.  But, the question remains as to why. 

Well, we think we may have found the answer: women sweat the small stuff.  From the time we are born, we might just naturally be more attentive to detail.  Studies show that girls are more in tune with emotions and facial expressions, and therefore develop language and social skills at an earlier age than boys.  That doesn’t mean we think women are smarter than men.  It just goes to show that men and women do, in fact, think differently.  And as we enter the business world, perhaps this also means we do business differently.

Liz O’Donnell recently theorized on The Glass Hammer that perhaps one reason women are outperforming their male counterparts—as CFOs in particular—is because they generally are more cautious and take fewer risks.  Now, some might argue that where there is little risk, there is little reward.  But, as the current economic situation demonstrates, careless risks can lead to catastrophe.  Diligent consideration leading to informed decisions, however, results in triumph.  Call it caution if you like, but we call it The Power of Small.

So, in the face of this tough economy, where lay-offs, mergers, and hiring freezes are the standard, you might want to consider an alternative solution: promote a woman. After all, as Catalyst says, “It’s not an obligation, it’s an opportunity.”

What’s your take on this hot button issue?  Do you think women sweat the small stuff more than men or do you think than men are the more detail oriented gender?  Or, are we about the same?  Let us know with a comment or join in the conversation today on Twitter!

Posted by Linda and Robin