A Personal Letter from Molly D. Shepard - September 2002

The Leader's Edge™ is an organization dedicated to enhancing the leadership effectiveness of executive women and helping them take on greater roles in their companies. We feel it is important to have our finger on the pulse of Corporate America, particularly as it relates to executive women.

For that reason, we recently completed our third major research study. This time, we focused on why executive women are leaving their positions at a rate twice that of men. The results are compelling, and I urge you to review all of our research findings in the "Our Research" section of this site.

We found that the number one reason women leave their executive positions is corporate culture. The women expressed disappointment in management that did not value diversity of thought and believed their roles were not respected. They felt that their communication style was criticized and that it was difficult to get their ideas recognized. Another issue raised, which seems to reflect our current times, was that a number of respondents did not believe the values displayed by management corresponded with their own and this ultimately led them to change positions.

Following closely behind corporate culture was the need for greater flexibility and life/family balance. Many women discussed the inflexibility of the work environment and that they were not given the ability to work off-site or adapt hours to family obligations. Even in those organizations where flexible working arrangements were available, women were reluctant to participate believing they would be perceived by peers and management as being less committed. Companies are reticent to start new programs, but in today's "non stop" world it is essential that flexible programs are created that both men and women can participate in without fear of recrimination.

A number of women surveyed mentioned the lack of a career plan and strategy for high level women. One woman stated, "There was no real attention paid to my career path once I made Senior Vice President--I was the only one who thought about it. I would have benefited greatly from learning more about how to be a better leader, as well as what areas I needed to work on."

What do these and the other findings mean for women and corporations?

For women, it means leaving a high level corporate position to pursue either an entrepreneurial or other opportunity. Interestingly, women are now opening 77% of all the new businesses in this country.

For corporations, the loss of high-level women can impact the company in a number of ways. In addition to the high cost of replacing a senior executive, financial impact occurs from the loss of intellectual capital, knowledge and connections. Secondly, creating diversity in senior positions within a corporation is essential. A homogeneous group with a narrow point of view is more likely to miss an option or creative solution to a problem. Additionally, for those firms in the consumer products industry, the loss can be substantial. The consumer products market is a $3 trillion industry with 80% of the buying decisions made by women. The optimal business decision would be to have women actively involved in creating and implementing strategies, which appeal to the woman's market. To the extent that does not happen, losses can occur.

Responsibility for turning the situation around lies squarely in the lap of both executive women and corporations.

Women need to continue to study and refine their communication skills realizing that they do communicate differently then men and that their styles will be different. This will enhance their feeling of inclusion and increase their flow of information within the organization. On the highest levels of Corporate America, men still make the rules. Women need to understand and play the game effectively in order to succeed. Working on their leadership styles, building more effective networks, learning to promote themselves, enhancing their personal presence and endeavoring to be more strategic risk takers will be helpful for women.

For their part, management needs to create a respectful work environment that is truly open to diverse ideas, opinions and styles. Establishing diversity performance guidelines for business units to attract and retain a diverse workforce, and holding managers accountable for its success puts teeth in such programs. Management needs to foster an atmosphere of trust that allows for flexible work options where individual and department objectives can still be met. Management can also create opportunities for visibility for high potential women, and for training and experience in cross-functional areas such as operations or sales, that increases their chances of being promoted.

There is much more work to do in terms of aligning the needs of female executives with the culture of Corporate America today. Given what's at stake for both parties it's essential that we continue to work on those issues. As always, I welcome your thoughts and ideas.

Molly D. Shepard
Founder and CEO
The Leader's Edge™

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