In today's dynamic business landscape, a major shift is underway that is transforming traditional notions of leadership and reshaping the future of business dynamics. At the forefront of this development is the growing influence of women leaders, whose impact on the business world transcends statistical measures and resonates deeply in organisational cultures. As we navigate the complexities of an ever-changing global marketplace, it is becoming increasingly clear that integrating diverse perspectives, most notably those of women leaders, is not only about equality but also a strategic imperative for lasting success. This article delves into the compelling narrative of “Shaping the Future: The Impact of Women Leadership in Today's Business,” exploring the historical context, benefits, challenges, prospects and the indispensable role women play in leading businesses toward equity, resilience, and inclusive prosperity. Join our movement to convey the profound influence of women leaders and discover how their contributions are not only rewriting the script of business success but also inspiring and encouraging generations to come.
The Rise of Female Leadership
This is historically not new that women have constantly been fighting to achieve their goals, especially in political and business spheres to gain positions in leadership roles. From the Women’s Suffrage Movement to Post-World War II and the feminist movements, they have continuously been advocating for women's equality in various aspects of life, including the workplace. During this time, more women entered the workforce and sought leadership positions. From the late 20th century onward, there has been a gradual increase in the number of women in leadership roles in business, politics, and other fields. Notable examples include the election of Margaret Thatcher as the UK's Prime Minister in 1979, the appointment of Indira Gandhi as India's Prime Minister and more recently Vice President Kamala Harris. Efforts are also being made to increase the representation of women in leadership roles within science, technology, and engineering fields. According to LinkedIn’s data, published in the World Economic Forum’s 2023 Global Gender Gap Report, women’s hiring into leadership roles had been improving, albeit slowly, by about 1% annually for nearly eight years. Emma Hinchliffe also writes in her article for Fortune that Women CEOs run 10.4% of Fortune 500 companies, representing a quarter of the 52 leaders who became CEOs in the last year.
The Benefits of Female Leadership
In recent years, there has been a heightened awareness of the importance of diversity and inclusion, leading to increased efforts to promote women into leadership roles. Felicia Henderson, Lecturer at Sciences Po Paris, gives a lecture on equity, diversity and inclusion in organisations and how it benefits them. She mentions that being aware that out-group biases exist is an important step. As with all cognitive biases, the more aware we are, the better we can recognize and challenge our own assumptions. She then argues that being open to difference and learning helps counteract exclusion. Our perspectives are shaped by our unique identities and experiences. When we are open to multiple perspectives, we can better exchange ideas and learn collectively. Having women in leadership positions not only helps attract and retain talent, and boost creativity but also innovation, make better decisions and improve financial performance.
In an article entitled “Women Leaders Make Work Better,” it is said that team collaboration is greatly improved by the presence of women in the group (Novotney, 2023). Indeed, a study by psychologist Anita Williams Woolley demonstrates that teams featuring a higher proportion of women demonstrated increased parity in conversational turn-taking, facilitating enhanced responsiveness among group members and optimizing the utilization of diverse knowledge and skills within the team. Women leaders are powerful agents of change. Their unique perspectives and experiences often enhance decision-making processes, promoting a more inclusive and holistic approach. They embody resilience and use a collaborative leadership style which is crucial in a business world which is complex and rapidly changing. Female directors such as Fiona Munasinghe and Sabrina Esufally state in an interview for Roar LK that women can bring multi-dimensional perspectives to things and the ability to build a consensus.
Overcoming Challenges
Women often face the stereotype of being perceived as overly emotional or too soft in their leadership roles. Commonly linked with communal qualities, women are expected to demonstrate a heightened concern for compassionate treatment, characterized by traits such as affection, helpfulness, sympathy, interpersonal sensitivity, and soft-spoken communication. In contrast, men encounter expectations aligned with agentic qualities, emphasizing assertion and control. Men are stereotypically associated with traits like aggression, ambition, dominance, self-confidence, and individualism. (Eagly and Carli, 2007). These gendered expectations can contribute to biases and hinder the recognition of diverse leadership styles and capabilities. In the words of one of this company’s female executives, “People often had to speak up to defend their turf, but when women did so, they were vilified. They were labelled ‘control freaks’; men acting the same way were called ‘passionate.’” Breaking free from such stereotypes is essential for fostering equitable opportunities for both men and women in leadership roles.
We could also mention that the gender pay gap and inequality in leadership opportunities continue to be pervasive issues, reflecting deeply rooted societal disparities. The gender pay gap refers to the disparity in earnings between men and women, often resulting from systemic biases and discriminatory practices. Despite advancements in workplace equality, women, on average, still earn less than their male counterparts for comparable work. Female executives make up 6% of the sample and exhibit more labor market churning — both higher entry and higher exit rates. Unconditionally, women earn 26% less than men, which decreases to 8% once executive characteristics, firm characteristics, and in particular job titles are accounted for (Keller, Molina and Olney, 2022).
Moreover, the underrepresentation of women in leadership roles exacerbates these disparities. Structural barriers, cultural expectations, and unconscious biases contribute to the persistent imbalance, limiting women's access to high-ranking positions. Addressing these issues requires a multi-faceted approach, including policy reforms, cultural shifts, and proactive efforts by organizations to promote diversity and inclusivity in leadership. Closing the gender pay gap and ensuring equal leadership opportunities are not only ethical imperatives but also essential for fostering a fair and thriving society. In 2023, women continue to encounter challenges to their authority and success that surpass those experienced by their male counterparts. Nevertheless, despite these obstacles, women are making gradual strides in political, corporate, and educational leadership (Eagly, 2023).
Profiles of Successful Female Leaders
Profiles of successful female leaders illuminate the transformative power of resilience, vision, and determination in breaking barriers and achieving remarkable milestones.
Saasha Celestial-One and Tessa Clarke are the co-founders of Olio, a food-sharing app. Olio is a platform that connects individuals and businesses with surplus food to nearby individuals who can use it. The goal of Olio is to reduce food waste by facilitating the sharing of excess food within local communities. Saasha Celestial-One is originally from California, while Tessa Clarke is from the United Kingdom. They launched Olio in 2015, and the app has gained traction as a social enterprise aiming to address environmental and social issues related to food waste. OLIO's remarkable expansion within a brief period is noteworthy, garnering nearly six million users. The app is well-positioned for organic growth, propelled by content users and word-of-mouth within local communities. With a focus on both people and the planet, the company's achievements serve as a testament to its mission and success (LivingNorth, 2022).
Sherry Coutu is a well-known entrepreneur, investor, and businesswoman based in the United Kingdom. She is recognized for her contributions to the UK's technology and startup ecosystem. Sherry Coutu has been involved in various capacities, including as an angel investor, board member, and advisor to numerous high-growth companies. She is notably associated with initiatives to support entrepreneurship and innovation. She has been involved in efforts to foster the growth of startups and scale-up companies. Additionally, she has played a role in promoting education and skills development in the tech sector. One of Sherry Coutu's notable contributions is her involvement with the ScaleUp Institute, an organization dedicated to helping companies scale and grow. She has also been associated with organizations such as Founders4Schools with Digital Boost, which aims to connect students with business leaders to inspire and educate. Their goal is to provide easy access to business mentorship and personalized support for all small businesses and charities, to do so, they are leveraging the synergy of technology and the generosity of individuals to achieve this (Digital Boost, 2023).
Sheryl Sandberg's rise to the role of COO at Facebook (now Meta) showcased her capacity to overcome barriers in an industry largely dominated by men. Her achievements shattered glass ceilings, making her an inspirational figure for women aspiring to leadership roles globally. She has been instrumental in shaping Facebook’s business strategy and operations. Sandberg's triumph stands as a testament to the idea that gender should never constrain one's pursuit of career objectives or attainment of executive positions.
Susan Wojcicki, as the CEO of YouTube, has overseen the platform's growth into a global media giant, demonstrating her strategic acumen in the tech industry. Under her leadership, the platform's valuation has surged to approximately $90 billion, solidifying Susan Wojcicki's position as the seventh most powerful woman globally. Equally noteworthy is her unwavering commitment to advocating for the rights of working mothers and addressing the gender gap within the tech sector. Notably, she played a pivotal role in augmenting the recruitment of women at YouTube, and her own experience as a mother of five serves as a testament to the possibility of maintaining a high-profile career while successfully navigating family responsibilities (“Susan Wojcicki: The Supermum Behind the Success of YouTube”, 2019).
Whitney Wolfe Herd, the founder and CEO of Bumble, not only has revolutionized the dating app landscape but has also championed women's empowerment through her leadership. In 2021, Whitney Wolfe Herd made a remarkable decision by leading Bumble through its initial public offering. At 31, this accomplishment positioned her as the youngest female CEO to take a U.S. company public, marking a significant milestone in her career (Hoffower et al., 2023). This social networking platform focuses on dating and connecting people. Yet, what sets Bumble apart from other dating apps is its approach to empowering women in the online dating sphere as only women are allowed to make the first contact by initiating conversations. This unique feature gives women more control over their online dating experience and helps create a more respectful and empowering environment. Beyond dating, Bumble has expanded its offerings with features like Bumble BFF, which allows users to find platonic friends, and Bumble Bizz, a networking platform for professional connections. These extensions reflect Bumble's broader mission to provide a platform for building meaningful connections across various aspects of users' lives.
Ursula Burns is an American business executive who made history as the first Black woman to serve as the CEO of a Fortune 500 company. Ursula Burns spent much of her career at Xerox Corporation. She joined Xerox as a mechanical engineering intern in 1980 and steadily climbed the corporate ladder. Over the years, she held various roles within the company, gaining expertise in engineering, product development, and management. In July 2009, Ursula Burns made history when she became the CEO of Xerox, succeeding Anne Mulcahy. This achievement marked a significant milestone, as she became not only the first Black woman to lead Xerox but also the first Black woman to helm a Fortune 500 company. Her tenure as CEO continued until the split of Xerox into two separate publicly traded companies in 2016. Throughout her career, Burns has been recognized for her leadership and contributions to business. She has served on various corporate boards and advocated for diversity and inclusion in the corporate world. Ursula Burns has also been involved in educational initiatives, contributing to organizations focused on science, technology, engineering, and mathematics education (Katsomitros, 2019).
Monique Woodard is an entrepreneur and venture capitalist known for her work in the technology and startup ecosystem. She has been involved in supporting and investing in early-stage companies, particularly those led by underrepresented founders. She has a background in finance and has held various roles in the tech industry. Woodard is particularly fascinated by emerging businesses that are influencing demographic shifts in a few “specific areas three complementary ‘layers’ of a cake: our aging and longevity-minded population; the increased earning power of women in society; and the shift to “majority-minority,” as Woodard put it, a “new majority” of early tech adopters coming from Asian, Black and Latino backgrounds” (Konrad, 2023). Cake Ventures focuses on “demographic change.” As a sole capitalist, Woodard aims to invest in companies that align with her theory of demographic change, targeting users who embody the shifts she envisions.
Prominent female executives and entrepreneurs offer valuable lessons through their distinctive leadership styles and approaches, contributing to a broader understanding of effective leadership. Aaron Limonthas shares in his article the leadership lessons he learned from women. Vulnerability is not a weakness but a strength. He mentions that according to a recent survey by the 'Ellevate Network,' 96% of working professionals indicated that they gain more insights from leaders who display vulnerability. Additionally, respondents expressed a higher likelihood of remaining with a company led by someone who embraces vulnerability, emphasizing its positive impact on employee retention. (Limonthas, 2023). It is also important to embrace change, foster innovation and promote team collaboration. Another lesson revolves around resilience, which demonstrates the importance of perseverance in leadership to make a difference and inspire the next generations.
Future Outlook
The future outlook on women's leadership is marked by promising trends and ongoing efforts to promote gender equality in various sectors. We could for instance mention Sheryl Sandberg who also co-founded the nonprofit organization LeanIn.org, which aims to support women in their professional endeavours and help them achieve their goals. The organization provides resources, community support, and various programs to encourage women to pursue leadership roles and advocate for gender equality in the workplace. It is a call to action, urging women to lean into their careers, be assertive in pursuing opportunities, and not hold back due to societal or internalized barriers. The broader movement sparked by "Lean In" has prompted discussions on gender dynamics in the workplace and has led to increased awareness of the challenges women face in their professional lives. As women lack confidence in the fact that they can succeed (Khalique, 2023), it is important to support them through mentorship programs and organizations. It is also crucial to show that trust comes first. Trusting individuals entails having confidence in their ability and willingness to fulfil their responsibilities, irrespective of their physical location—be it in an office, at home, or elsewhere. The focal point is on achieving the tasks at hand and ensuring successful delivery, emphasizing the importance of trust in this process (Koch-Mehrin, 2023).
A famous one would be Catalyst, a global nonprofit organization focused on promoting and supporting workplace inclusion and advancing women in business. The organization works with companies to build more inclusive workplaces where individuals of all backgrounds, including women, can thrive. Catalyst conducts research, provides insights, and offers various resources to support companies in creating environments that foster diversity, equity, and inclusion. The aim is to develop strategies for promoting gender equality and breaking down barriers that hinder women's career progression.
January Ventures was established by Jennifer Keiser Neundorfer and Maren Thomas Bannon who transitioned from operational roles to investment positions. They are strong advocates for fostering a technology ecosystem that provides equal opportunities for all. This VC company focuses on supporting female-led ventures. They generously offer their guidance, thought partnership, investments, and connections to support women entrepreneurs with enthusiasm. They aim to alleviate the challenges of building something significant from the ground up. Their satisfaction comes from making this journey a bit smoother. They aspire to bring attention, opportunities, and returns to the world-changing ideas of women entrepreneurs, ensuring they receive the recognition and success they deserve (January Ventures, 2022).
By helping women learn how they can empower themselves in the workplace, these organizations and mentorship programs recognize and foster leadership potential in women.
The rise of female leadership in today’s business world represents a transformative shift that brings about a multitude of benefits and opportunities. As explored in this article, the positive impact of female leaders is evident not only in fostering diversity and inclusivity but also in driving innovation, enhancing decision-making processes, and contributing to overall organizational success.
While the benefits are clear, it is crucial to acknowledge and address the challenges that women leaders still face. Gender biases, stereotypes, and barriers persist necessitating continuous efforts to dismantle these obstacles and create environments that empower women to ascend to leadership roles without hindrance. Increased advocacy, evolving workplace cultures, and a growing recognition of the value of diverse leadership all contribute to a more inclusive landscape. The ongoing commitment to education, mentorship, and the dismantling of these obstacles will play pivotal roles in nurturing the next generation of female leaders.
In essence, the impact of female leadership is not only a matter of equality but a strategic imperative for thriving businesses. Embracing and advancing the role of women in leadership positions benefits individual organizations but also contributes to a broader societal shift toward equality, diversity, inclusion and sustainable success in the dynamic landscape of our modern business world.
References
Eagly, Alice and L. Carli, Linda. (September 2007). Women and the Labyrinth of Leadership. Harvard Business Review. https://hbr.org/2007/09/women-and-the-labyrinth-of-leadership?registration=success
Katsomitros, Alex. (2023). Against the Odds: Ursula Burns’ Extraordinary Rise to the Top. World Finance. https://www.worldfinance.com/markets/against-the-odds-ursula-burns-extraordinary-rise-to-the-top
Martin, Marci. (October, 2023). Key Steps Women Can Take to Be Strong Leaders. Business News Daily. https://www.businessnewsdaily.com/5489-female-leadership-advice.html