Gender diversity – women in leadership and what German companies can learn from companies abroad
Diversity – a “modern invention”
Not so long ago, business life in Germany, but also in other European countries, was dominated by men. There were no “old boys clubs” because there was no need for them. In one of the Sherlock Holmes novels set in the Victorian era, I once read that a woman found her vocation and fulfillment in the home and family and was not suited to business life. It was no different in Germany. During the Third Reich, mothers were even awarded the Mother’s Cross if they had 5 or more children to look after. In my opinion, this was a somewhat cynical way of propagating new blood for the army. It was not until 1953 that all laws in the Federal Republic of Germany that ran counter to the equality of men and women were officially classified as unconstitutional. It is important to remember that wives were not allowed to work or, for example, open a bank account without their husbands’ consent. Women mainly worked in simple office jobs until they got married and had children, or they worked because they urgently needed a second income for the family. A lot has changed since then. Despite everything, gender roles remained cemented in people’s minds for a long time.
Barriers in the mind
Attitude is an individual thing. Changing it is a long process. In general, a paradigm shift is needed in companies, and this also and especially calls for a change in management. This applies not only to the “old boys”, who prefer men’s clubs at management level and who consciously or unconsciously want to maintain this situation, but also to women themselves. The balancing act between running a business and a household, career or family puts many women in an emotional quandary. Due to “old” values, many feel forced to choose between the two. Arguments such as “why should I have children if I go to work and then give them up” are often heard. Strangely, I have yet to hear this argument from any man. The “spectre of the ravenous mother” continues to circulate. Incidentally, this expression is only common in Germany and says a lot about social attitudes. Also strange: mothers abroad, such as in France, Scandinavia, Great Britain or even Russia, who, according to common perception, fulfill the criteria of a “raven mother”, raise completely normal children. How can that be? Is Germany an island in this respect????
It should also be noted that there is also a dichotomy in Germany, at least as far as working women are concerned. In the new federal states there are more childcare options available and there is also a different understanding of working women. That is “the legacy of the GDR”. There, women also had to work, but that didn’t mean that they were in positions where they were in charge.
Opportunities and necessity of gender diversity
The demographic development in Germany alone makes it necessary for women to increasingly participate in professional life. But only those companies that see this development as an opportunity and enrichment can benefit from gender diversity and profit from it. This is not just about the workforce required in the broader sense. It is also about the fact that women and men have different qualities that companies can benefit from if they can combine them. This is not an empty hope or a hollow statement to demonstrate modern thinking. As the Frankfurter Allgemeine Zeitung reported in May 2017, a study of 2900 managers by the Norwegian Business School found that women scored better on five criteria that make a good manager (emotional stability, extroversion, openness, sociability and conscientiousness). On average, the women surveyed achieved better results in four of the five categories than the men surveyed. The category in which the women scored worse was emotional stability/stress resistance. Other studies are just as striking. The same source mentions that the Peterson Institute for International Economics in Washington, in the largest study to date on women in management positions in 91 countries, found that a 30 percent higher proportion of women in the boardroom is associated with a 15 percent increase in net sales. And as early as 2007, McKinsey found that there was a significant correlation between a higher proportion of women in management teams and an increase in return on equity and EBIT margin. Studies conducted by the Swiss bank Credit Suisse in 2012 and 2014 also made headlines later on. The result: companies with at least one woman on the board of directors generate higher returns. Bad news for the old boys. But: women must also dare!
From gender struggle to gender cooperation: gender diversity as a success factor
Everyone is talking about diversity. However, the battle of the sexes ties up resources and leads to suboptimal results. At the same time, utilizing different talents and qualities is the key factor for future corporate success. However, this is easier to achieve if the battle of the sexes is replaced by cooperation between the sexes.
Justice – what does that actually mean?
We keep hearing about justice and equality. But what does that mean in concrete terms? Should all management positions be filled 50/50 by women and men? What role do professional qualifications play? Equal pay for equal work? And if so, for what kind of work? These questions are of a philosophical nature. For the author personally, it means above all that women and men should have the same starting opportunities regardless of their gender. A noble wish. But I remember the 1970s, when the Greens made their way into many state parliaments before they were also represented in the federal government. It was a rather chaotic party and, in addition to environmental concerns, it had left-wing socio-political goals. Joschka Fischer was sworn in wearing sneakers in Hesse and “emanzen” in baggy dresses knitted in parliament. Despite all this, it was the nucleus of a party that is now the second strongest political force in the Federal Republic according to opinion polls and was already in government twice in the 1990s. Joschka Fischer became fat, then slim and then corpulent again. But then he also wore suits and is now regarded as one of Germany’s most prominent politicians. In other words, the Greens have successfully mastered the “march through the institutions” and established themselves. This did not happen overnight. A similar development can be predicted for women in leadership positions. The “old boys” will eventually step down and make way for people with more modern ideas. When this happens, the chances of women in management positions will increase dramatically. But it is also up to women themselves to shed ideological baggage. Women who opt for family or career are not available for management positions if they choose the family option. Yet mothers in particular are better prepared for the challenges of everyday life than any other group of people. Quick decisions, pragmatism, setting priorities – all those attributes that are generally equated with good leadership are part of everyday life in a family! The working author knows this. He is married and has two children who are just starting to grow up. His wife works as a successful consultant.
Where are we going?
When it comes to the family, it is of crucial importance to ensure the care of the children. In the case of careers, this means daycare for children. Politicians have already implemented initial approaches, such as the legal entitlement to kindergarten places. Many large companies have also set up company kindergartens. But this is only one side of the coin. If childcare places are available, you have to want to use them! Apart from that, women in real management positions earn a salary that makes private childcare possible. Ursula von der Leyen may serve as a prominent example. When the author worked for a French company in Germany, his superior in Paris had five children! Nevertheless, she had a very demanding job. So it is also up to women to shed the stigma of the “raven mother” and take advantage of the opportunities on offer. So women – take heart. And as for the “old boys” – the shareholders will thank you. Money has no gender and share prices are determined by company performance. I refer you to the section “Opportunities and necessities”.
