Where are those glittering prizes?

Opening Address by Ruth Medd

Welcome to our 2nd Diversity on Boards Conference. We have a record number of speakers who have given their time to attend, many backing up from our first conference. And welcome to Arni Hole from Norway, who is visiting Australia down under for the first time.

The aim of this conference is to learn from the experiences of established directors, showcase WOB members who are making their way in their directorship careers and to seriously look at what needs to be done to give women a fairer chance of success in corporate Australia.

What I thought would be useful are a few remarks on each of:

  • How well is WOB working
  • The extent of the challenge facing women

So firstly - WOB does work?

Following the first Diversity on Boards Conference in March 2008 we thought that Women on Boards is making a difference. But what is the evidence, you ask. Why join Women on Boards if you have an interest in directorship or in finding directors?
In 2008 and 2009 more than 500 organisations have posted vacancies on our website.  WOB members (WOBers) became directors of a wide variety of private, government, public and Third Sector boards.  These organisations were looking for high quality women board members.  Some of these are:

  • Athletics Queensland
  • Black Hole Theatre
  • Citrus Australia
  • Clough Ltd
  • Grampians Wimmera Mallee Corporation
  • Health Quality and Complaints Commission

The all time record is 130 applications to an advertisement on our website.  Too many applicants if you are competing for the role but indicative of the large amount of interest from capable women.

In 2009 we are averaging 5-6 postings per week.  Last week we had an all time record of 16 new vacancies posted. WOBers are steadily reporting success. So our model seems repeatable.

And a couple of recent initiatives:
We assisted the Victorian Department of Sustainability and Environment to attract women for their Catchment Management Authority boards.  At least 12 WOBers gained a board seat. This is important because CMAs are a good first paid board for rural women. Read the full story.

Our campaign to influence the NRL to improve the governance of NRL Clubs. Two WOBers – Denise Aldous and Jenny Reynolds have recently joined the Cronulla Sharks board.  From reports they are already having a positive impact.  They both feature in the Conference program. Read the full story.

WOB the system
WOB is a system that facilitates women onto boards. The way we assist a particular woman varies.  But in my view the key component is our campaigning for openness and transparency.  Advertising opportunities is the first plank of openness. We will continue to write to Ministers and Chairman advocating advertising as the rule rather than the exception.

Think about it …
What if a company can only buy goods and services made in Victoria.  Clearly this is not in the national interest.  Traditional board selection processes are similarly a barrier to trade and economic development.

The challenge facing women
Women on Boards will continue to make a difference but overall the glittering prizes are proving elusive.  The statistics for women’s participation in corporate leadership roles in Australia shows a decline, with possibly worse to come. Why is this so?

The seminal article entitled 'Women and the Labyrinth of Leadership' * details the lifetime discrimination against women.  To quote:

“When you put all the pieces together, a new picture emerges for why women don’t make it into the C-suite. It’s not the glass ceiling, but the sum of the  many obstacles along the way.”

And a recent article by Alison Maitland in the Financial Times - 'Why it’s easier for men to get to the top.'** To quote:

"Male managers receive more specialist training for promotion than female managers from the start of their careers and benefit from more support in new roles. Women, who also receive less support in career transitions such as promotions, may not be aware of discrimination, as selection processes and mentor schemes are shrouded in secrecy.”

What is happening in Australia?
Numbers of women in ASX200 board roles and women in ASX200 senior executive roles are going backwards. The subsequent EOWA report Pay, Power and Position *** unpicked the broad picture from the Census and found some Good News and lots of Bad News. 

The Good News - Percentage wise there are more women who chair ASX200 board committees than men.

The Bad news
Board sizes of ASX200 have increased in the period 2006 to 2008; while women’s participation has decreased. So the grand myth that boards are getting smaller to explain why there are fewer women has been put to rest. More disturbingly there is an overall decline in percentage of women in senior management roles:

  • Women’s participation in the roles ‘least likely to lead to the C suite of CEO, COO…’ has remained the same from 2006 to 2008. These are the corporate roles of legal counsel, corporate communications and HR.  Apologies to the HR Directors in the room who aspire to be CEO.
  • Participation in line roles which do lead to the C suite has declined. This means that women are not part of the key management team at ASX200 companies; the places of acknowledged power.

The future
What does this mean to the majority graduates each year that are female? ASX200 companies do not want them or you won’t succeed if you join an ASX200 company? How should ASX200 companies respond to this situation? 

Please enjoy the next two days. And remember the glittering prizes.

References

  1. * Women and the Labyrinth of Leadership’ – Harvard Business Publishing Sept 2007
  2. **  Holding Women back International - study by DDI, a talent management consultancy, which surveyed 10,000 business leaders in 376 organisations in its report  www.ddiworld.com
  3. *** Pay Power Position - EOWA & Macquarie University, June 2009 http://www.eowa.gov.au/Australian_Women_In_Leadership_Census/2008_Australian_Women_In_Leadership_Census/Pay_Power_Position/2009_PPP_Media_Kit.asp