What Women Know and How it Drives Profitability

Forget about what women want - women may want a lot of things that have nothing to do with running a business (oh that cute pink handbag!). But let's discuss what women tend (and I say tend because nothing is absolute when discussing gender roles) to know and you can start to see why businesses with more women in senior leadership positions are more profitable and innovative.

In my experience, here's how what women know translates into business performance:

• Women know high risk comes with high potential upsides and high potential downsides. We tend not to get overly excited about what could be and focus on what can be today. That focus means we we more likely translate current market needs into solutions that will pay off today but we may not be as likely to go for the long shot ventures.

• Women know relationships and know that the more open and transparent we are, the closer the relationships are that we can foster. This allows us to form really persistent relationships with employees, partners, and customers - and not through the use of money and rewards - which is more profitable and less vulnerable. See Diane Hessan's excellent example of Return on Openness.

• Women know how valuable communication is - at all levels. That means a lot of us are chatty (it's been proven) but it also means the people around us are never left in doubt of what is going on. That means there is less distrust and gives others the chance to bring up any issues they see.

• Women know how to navigate emotional conflict better and interestingly have an easier time discussing deep rooted differences of opinion between colleagues in a more collegial fashion. This allows for conflict resolution before things escalate into business problems.

• Women know how to identify subtle social queues and can identify whether or not someone is being open with us - whether we choose to acknowledge that or not. This allows women to more accurately assess relationships with customers and others.

• Women know that telling people what to do is not the most effective way to lead. Showing by example and using Socratic methods of mentoring often facilitates the response we desire without the negative side affects of the other party feeling controlled.

• Women know complexity. We can never focus on just work, or just money, or just family. It is always about the best decision for everyone rather than the best decision for any one constituent. This gives us a balanced perspective of a business and keeps us from maximizing revenue in the short term if it damages relationships in the long term - thus preserving sustainability and long term profits.

This is not to say that women are better and that this is true for all women (or that men don't have these qualities) but bringing women into leadership positions will bring a diversity of approach, a different perspective, and some much needed skills to the board room. In a business environment where transparency and relationships are becoming core principals of business how can you afford not to bring more of those skills into your business?

From a personal perspective *not* having more of those qualities in companies is what has driven me to start my own. I don't want to work in an environment that doesn't understand balance, is driven to 'win' at all costs, and only values relationships while they result in revenue. It's not what I am about and the more senior I get, the more aligning my values with the businesses I associate with matter to me. Is that a zero sum rule? Of course not - women don't tend to view things that way and I certainly don't.

What do you think? Is this too generalized? Do you think this is a sexist perspective? Does it reflect the women leaders that you know?

Don't know the woman in the picture? That's Indra Nooyi wife of a former boss of mine (who was quite a smart cookie himself) and CEO of Pepsi - great to see!

Comments

[Stuart Foster]

Subtlety is huge and extremely underutilized by a lot of marketers. I think men can learn a ton from our women counterparts when it comes to assessing a situation, forming a rational plan, and forming emotional bonds around a feeling that a product gives us. I've learned a ton with every female marketer that I've worked with. Hoping this trend continues :).

[Mimi Meredith]

I think for many decades, some women felt the only way to succeed was to act like men. So, even if generalizations based on gender are too...generalized, I think they still serve a purpose in reminding ourselves that differences are to be celebrated as the gift ingredients we bring to the recipe for success--whether in interpersonal or corporate settings. When we are willing to be authentic, and when we quit judging by standards of success based on any single model--either masculine or feminine--we will create workplace cultures that reshape the world. And to think...it all started right here at The Social Organization :)!

[Rachel Happe]

Hi Stuart & Mimi -

Thanks for coming by and sharing your perspective. And Mimi - you are right - it is all about diversity in the end!

Rachel

[Meredith Kench]

An excellent post (so good I twittered it too).

I do believe with social media becoming so important women are in the position to shine - not that we needed that to shine, but like you said we are more social, we do read queues better, add diversity to the workplace etc. I think that all adds up to a better workplace.

I also think that wining at all costs attitude and unbalanced workplaces end up burning people out / ruins productivity. I think we've both witnessed that first hand.

[mutuelle]

I really enjoyed your post. I will have to come back again to read some more of them.