Women in Business - IBM | Women in Business | P e rsp c tiv ofg nd y h w k l Study Methodology IBM spoke to hundreds of women in management positions in small and medium-sized businesses

IBM Belgium/ Luxembourg

Women Leadership Council

Women in Business Perspectives on gender diversity on the workfloor

A White Paper

July 2005

2 | Women in Business | Perspectives of gender diversity on the workfloor

This white paper is the result of a study conducted on behalf of IBM Belgium/Luxembourg. Diversity is a key value of IBM. Attracting, welcoming, developing, promoting and retaining all people regardless of factors unrelated to job performance is our way of life. The objective of this study is to understand what its clients, and very specifically the women in management functions, think about gender diversity and how it affects their business. IBM's goal is to develop a stronger business relationship with these leaders through an improved understanding of their perceptions and aspirations.


TABLE OF CONTENTS

Why study diversity in a business environment ? .......................................................................... 5

Study Methodology ....................................................................................................................... 6

Key findings from the IBM study.................................................................................................... 7

I. Business Strategies............................................................................................................ 7

Introduction ............................................................................................................................ 7

IBM survey findings................................................................................................................ 7

External studies ................................................................................................................... 10

Conclusion ........................................................................................................................... 12

II. Diversity ........................................................................................................................... 13

Introduction .......................................................................................................................... 13

IBM Survey findings ............................................................................................................. 13

External studies data ........................................................................................................... 14

Conclusion ........................................................................................................................... 16

III. Work - Life Balance ..................................................................................................... 17

Introduction .......................................................................................................................... 17


External studies/data ........................................................................................................... 19

Conclusion ........................................................................................................................... 20

IV. Networking .................................................................................................................. 21

Introduction .......................................................................................................................... 21


External studies/data ........................................................................................................... 23

Conclusion ........................................................................................................................... 24

Case studies ............................................................................................................................... 26

IBM “Diversity as strategy”. (Harvard Business review, September 2004)........................... 26

Mark & Maas “Work-life balance.” (M/V in balans. Evenwichtige organisaties).................... 27

General Conclusion .................................................................................................................... 28

Bibliography ................................................................................................................................ 30



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Why study diversity in a business environment ?

Today’s business environment is very different from that of previous generations’. In addition to new technologies and innovations in the way we work, the people at work are different, too. This new business culture values diversity more than before.

Diversity is a key value of IBM. Attracting, welcoming, developing, promoting and retaining all people regardless of factors unrelated to job performance is our way of life. The objective of this study is to understand what its clients, and very specifically the women in management functions, think about gender diversity and how it affects their business.

Many companies are catching on to the multiple business benefits of a diverse workforce. Though few implement formal diversity policies, informal efforts to mirror the population in the boardroom are increasing nationwide. Many organizations now actively recruit women and minorities, and they reap the rewards of their efforts by reaching more customers and expanding their market share. Other companies recognize the diverse needs of employees who come from different backgrounds or who have different career goals. These organizations improve employee morale with flexible work schedules, teleworking and other strategies to improve work/life balance and productivity.

More and more companies recognize the business benefits of diverse individuals and their points of view. While stereotypes of masculine attributes may match traditional business attitudes, research proves that men and women have different strengths, attitudes and approaches but ultimately wish to achieve the same goals. They may express themselves in dissimilar ways, but they value the same qualities in themselves and have very similar instincts. Rather than focusing on turning women into men, the business world is warming to traditionally “feminine” values such as communication, coaching, organization skills, cooperation, flexibility and valuing relationships and feelings.

But despite these exciting changes, most businesses are still run by men. To get more insight on this, IBM Belgium/Luxembourg conducted a study of the status of women in management positions in Belgium and Luxembourg, including the points of view of women managers themselves. Why are most businesses run by men? What qualities should a manager possess? IBM connected with hundreds of Belgium’s most powerful businesswomen to learn more about topics such as networking, diversity policy, work/life balance and the characteristics that make women (and businesses) successful. The study aims at mapping the current understanding, perception and needs of female managers concerning diversity policy.


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Study Methodology

IBM spoke to hundreds of women in management positions in small and medium-sized businesses to get the inside view on issues crucial to the modern workplace, such as:

business strategies

gender diversity

work/life balance

networking

To what extent are managers and companies focusing on diversity topics? Do female managers experience discrimination? Do we need diversity policies? How do companies address the issue of work/life balance? Do feminine networks exist? Which features are crucial for female entrepreneurs?

In the first part, IBM did research on two different groups of women. The first group included top managers, and we received 150 responses, a 20% response rate. The second group included middle management, and we received 150 responses, a 4% response rate.

Top management, 60% of the interviewees, are women from the northern part of the country in senior and executive management positions. Three quarters of top managers are below the age of 45, and two thirds have children still living at home. The study group was fairly evenly divided among small, medium and large companies

When we take a closer look at the middle managers, we see a social demographic profile similar to that of the top management. The average respondent is 40 years old; 72% of them are Flemish. Half of them have studied at the university or followed an extra training after their studies. Fifty-seven percent of them have children, and 75% share this responsibility with their husband or partner. Seventy-five percent of the partners work full time, but still 25% of the partners work half time or are inactive.


Key findings from the IBM study

I. Business Strategies

Introduction

IBM’s questionnaire studies the different needs and management styles of female managers, with a focus on differences between feminine business values and the perception women have of the company policy. Men and women approach management differently, and these differences are not always equally and strongly supported by the enterprise.

IBM survey findings

What do top female managers consider to be their most important business challenges?

In ranking the policies that top female managers consider most vital to the enterprise, we found that staff motivation is the biggest issue. Eighty percent of the managers we heard from rate it as important to very important. This is closely followed by cost-cutting (79%). Third on the list is increased profitability (76%), followed by increased revenue (62%). Last but not least, 56% of the female managers think it is important to innovate and try out new technologies. These concepts are closely correlated; for example, motivated employees work more efficiently and help to boost profitability.

Overall, there is a close resemblance between the categories of women interviewed. The only 3 significant differences are:

More experienced female managers rank profitability and cutting costs as more important than increasing revenue.

The higher women are positioned in the company, the greater is the importance they attach to the company policy.

At smaller companies (fewer than 50 employees) profitability and high revenue are most important, while the female managers in bigger enterprises (more than 200 employees) show more interest in innovation.

What do top female managers consider to be core competencies?

The study of IBM projected in the graph below shows the personal competencies considered necessary for management by the female managers. The same managers also rated those competencies based on their perception of the importance within their business.


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What female managers consider very importantWhat female managers believe their companies consider very important

Figure 1. Top management - very important management competencies

It is interesting to note that the competencies women value as managers are not necessarily those they perceive as most important in their company: all personal rates are higher than those they consider the company rates. In particular, communication, coaching, collaboration, decisiveness and leadership were ranked significantly less important to their company. The differences between what the female managers perceive and the company policy states are reduced when we sum up “very important” and “important,” which can be seen in the second graph. Note that all personal rates are higher than those the managers think the company rates, except for intuition and negotiation, where personal rates are slightly inferior

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What female managers consider important

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Figure 2. Top management - sum of very important and important management competencies

An in-depth analysis of the data shows that the higher the position in the hierarchy, the weaker the feeling of inconsistency between their personal point of view and the company policy.

Company size also has an influence on management features. Female


managers of smaller companies (fewer than 50 employees) stress negotiation, creativity, intuition and assertiveness as necessary personal and company attributes.

What are the business priorities for middle management?

What the female middle managers answered to these same questions results in an even larger gap, displayed below. The biggest differences are present for values like communication, collaboration, decisiveness and organization.

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What female managers consider very importantWhat female managers believe their companies consider very important

Figure 3. Middle management - very important management competencies

Adding together ‘important’ and ‘very important’ competencies (figure 4) , we see appreciable differences between the competencies these women value in themselves and the perception they have about their organizations. Communication, organization and coaching, in particular, are considered to be less valued by the company than by the female managers. The gap between personal values and the business point of view is important, reaching differential percentages of respectively 49%, 30% and 22%.


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What female managers consider important

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Figure 4. Middle management – sum of very important and important management competencies

In general, we see that the importance of most competencies drops from 90% for top managers to 70%-80% for middle managers. Further, gaps between personal competencies and the competencies valued by the company are significantly enlarged.

External studies

Men and women have the same ideas, but act and react differently. These different approaches are also visible in the management styles of men and women. Much research has been conducted to identify these differences between male and female management styles. Here is a short overview.

Hofstede's social and cultural study (1980, 1991) categorizes people by gender. He identifies four dimensions, among them femininity/masculinity. Hofstede’s description of “feminine” as opposed to “masculine” values gives us an insight into expected feminine and masculine behavior.

Men Women

Success, progress, money Relationships, caring Facts Feelings Living to work Working to live Decisiveness, assertiveness Intuition, consensus Competition Equality Confrontation Compromise, negotiation

Figure 5. Hofstede’s masculine and feminine poles

Some recent European material also provides us with typical female and male management features. In the book Adam & Eva op het werk by Barbara Annis, strong characteristics of working men and women are compared.


Men Women

Report facts Look for consensus Give instructions Make suggestions Act independently Link Think concretely See the context Are consistent Are flexible Attribute externally (rationalize) Attribute internally

Think in facts Are intuitive Network to discuss connections

Network to confirm relationships

Compete Cooperate Figure 6. Barbara Annis’ comparison of working men and women

In Belgium, Vacature conducted a questionnaire in October 2004 called the “M/F Report” comparing the aspirations of male and female employees. The main finding was that differences between men and women are minor, especially when higher education levels between the sexes are similar. When the question is asked about typical male or female characteristics, the differences are significant in the opinion women and men have about each other concerning intelligence, organization skills and self-confidence. Both think that these 3 features are typical for their own gender, which can be seen in the following table.

Which feature do you see as more male or female?

Men Women

Male Female Male Female Intelligence 60% 40% 27% 73% Ambition 83% 17% 84% 16% Empathy 19% 81% 12% 88% Organization skills 56% 44% 22% 78%

Self-confidence 55% 45% 35% 65% Assertiveness 67% 33% 70% 30%

Figure 7. Vacature questionnaire results

We associate certain characteristics with each gender—domination and ambition for men, tact and emotion for women, for example—but how different are men and women really? How do these differences translate to management styles?

The striking conclusion from 80 years of research is a massive psychological similarity between women and men in the population studied by psychologists. This is confirmed by a Belgian research bureau, &Compagnie, in its research “Women of Vepec,” 2001. The researchers hypothesized that women and men don’t think, say or do different things, they only express themselves differently in their words, actions and reactions. This idea seemed to be validated by the fact that in only 20% of all questions were men’s and women’s responses different—and even these differences were relative.


Conclusion

Eighty years of research prove that men and women are more alike than different. They don’t have significant differences in thoughts or values, but they express themselves differently. These different actions and reactions are also visible in the management styles of men and women. Much research has been conducted to identify these differences between male and female management styles. Our study has identified some gaps between what women find as important management competencies and what they perceive as important for their organization.

At the top management level, 90% of businesswomen rate communication, collaboration, decisiveness, enthusiasm and organization as very important or important skills for a manager. The level of importance drops slightly at the middle management level. Seventy percent to 80% of lower and middle management rate communication, collaboration, organization, decisiveness, enthusiasm and leadership as very important or important skills for a manager.

The most striking element of these data is the gap between the qualities women consider important in themselves versus what they perceive as valuable in business culture. Although many companies do claim these qualities are important, the message is apparently not being put across in the right way, since women still experience a difference between their personal and business points of view. Traditionally feminine strong points like communication, collaboration, coaching and creativity are perceived by women as being less important for the company than for themselves with gaps as large as 50%.


“I have never really given it any thought”

II. Diversity

Introduction

IBM’s questionnaire aims at mapping the current understanding, perception and needs of female managers concerning diversity policy. Is there any diversity policy in place? Is this policy already integrated in the general company policy, and how is it perceived by top managers and middle managers?

IBM Survey findings

Top female managers’ view of diversity

Only 8% of our sample indicated that a special diversity policy exists in their company. However, lack of a special policy doesn’t mean that diversity within the enterprise isn’t an important topic. Through the interviews we learned that the term diversity policy is too general, too broad and is too often linked with explicit discrimination.

When we compare the knowledge of a specific diversity policy with other social demographic variables of the respondents, we notice only insignificant differences except for one variable: the family. Women managers with children seem more conscious of a diversity policy within the company: 11% know of a diversity policy. We also see that in bigger companies (more than 200 employees) top management businesswomen have more knowledge of a specific diversity policy. But these are only tendencies and aren’t significant increases due to the low number of respondents in each group.

If top managers know of a diversity policy in the company, its expression is very explicit through training, facilitation of career advancement, special recruitment conditions or equal opportunities. Their perception is that all these measures are developed in the company in order to improve the general company culture, profitability and staff motivation.

Only 5% of our sample indicated that they need a special concrete diversity policy. The reason for this need is not to decrease discrimination but to improve the company culture and internal communication. Discrimination is hardly ever experienced as an explicit problem by top female managers. Here again, no significant differences can be found on demographic or company features. Only women who have received further training after earning a degree seem highly interested in a special diversity policy. This might be because they are more conscious of the concept of diversity and its added value. More experienced female managers have higher interest in diversity policies than their younger counterparts.

Middle managers’ diversity experiences

Only 10% of middle managers indicate that a special diversity policy is present in their company. In sharp contrast with the top female managers,


“I would choose the following expression to describe this complementary relationship: ’An iron fist in a velvet glove’ ”

23% of middle managers indicated that they need a special diversity policy, and 40% say they have experienced a form of discrimination in the company.

The content of a diversity program that female middle managers would value ranges from very explicit actions like ease of career advancement (73%) to broader activities like equal opportunities (60%) and special training programs (25%).

73%

60%

25%

Career advancement Equal opportunities Training programs

Figure 8. What female managers would value as part of a diversity policy

What about complementarities in competencies?

Fifty-four percent of female middle managers think that men and women are complementary. The skills that female middle managers perceived as most complementary to male competencies are intuition (31%), communication and organization (both 20%). These are followed by characteristics like logical insight (19%), rationality/emotionality (18%), decisiveness (14%), and accuracy, analysis and pragmatism (13%).

External studies data

For more than a decade now, new values—sometimes called feminine values—have emerged in the business world. These values complement the competitive and dominating approach usually associated with traditional masculine management.

Feminine values are based on teaming and collaborative relationships and inspire a different management approach to communication, leadership, negotiation, organization and control.

Increasingly, this rebalancing of values is seen as key to business success, because the 21st century workplace is radically different. Flexibility and innovation characterize global economic conditions and fast-changing technology.


Typical feminine competencies include :

cooperative behavior, a need for a sense of belonging rather than self-enhancement, the ability to express vulnerability,

emotions and the perception of power as a liberating force rather than as domination or the ability to control.

The feminine style of management has been called “social-expressive,” with personal attention given to subordinates and a good working environment.

Looked at from a cross-cultural perspective, most valued managerial skills appear to be “masculine” skills. They emphasize the dominant, assertive, decisive aspects of behavior and downplay the collaborative and supportive behaviors which are more readily identified with women. In some countries, cultural norms may be more feminine than in others.

Some typical masculine business organizations or cultures are described by Parkin and Maddock:

The gentlemen’s club: In this culture of paternalistic overprotection, women don’t get enough opportunities to gain experience.

The military structure: Orders follow the top-down line, and subordinates are ignored. In this authoritarian culture, few women occupy management functions and specific female needs are ignored.

The locker room: Men lock out women in a subtle way by talking about typical male subjects like sports or by making sexual jokes and allusions.

Gender blindness: Gender differences don’t exist; everybody is white, male and available for business 24 hours a day. Private life is ignored, and those who don’t keep up the pace will be passed over.Macho culture: Everything is devoted to economic efficacy.

Feminist lip service: Officially there is no gender discrimination, but in reality women get few opportunities.

Human resources policy has begun experimenting with concepts such as diversity management and total equality. Diversity management recognizes that employees do not all fit into the same mold and that their differences may offer a variety of benefits and improve productivity. Gender, age, background, race, disability, personality and work style are all important factors in human resource management. Having a staff that better reflects the diversity of the population is seen as essential for business.

Total equality is an extension of the practice of total quality management, which strives to improve quality through emphasis on clients, work organization and processes and, above all, regarding employees as collaborators. Total equality implies, on one hand, encouraging a greater contribution from women, resulting, on the other hand, in better recognition, use and development of their aptitudes. The evolution of such approaches


will be interesting to follow in terms of their impact on gender equality and the promotion of women to higher levels of management..

Conclusion

Regarding diversity policy, there is an important difference between the perception of top managers and middle managers. Only 5% of top managers desire a specific and pronounced diversity policy, versus 23% of the middle managers.

The content of a diversity program that middle female managers would value includes facilitation of career advancement (73%), equal opportunities (60%) and special training programs (25%).

Middle managers do think that men and women are complementary and that these complementarities brings added value to the company.

Discrimination is hardly ever experienced as an explicit problem by top female managers, while 40% of middle managers say they have experienced discrimination in their company.

We also noticed that little is known about diversity policies, as they don’t seem to be built into the general company policy. But optimizing company policy in the long term and minimizing current gaps between employees and the company require a good diversity policy. Concepts such as diversity management and total equality are starting to be built into human resources policy. And companies that value the complementarities of female leadership competencies are more reflective of today’s business world. Not only is gender a consideration, but age, background, ethnicity, disability, personality and work style are also important factors in human resource management.

Ultimately, a company is part of society. Therefore it is important that it is a reflection of this society in order to have the best possible access to all its skills and competencies. Only when a company can create teams bringing together people with complementary skills, it will remain competitive and strong in the future. A staff that mirrors society is good for business.


“The culture regarding work-life needs to be changed in the minds of the employers.”

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III. Work - Life Balance

Introduction

IBM’s questionnaire examined female managers’ need for balance and the efforts of their companies to support them.

IBM Survey findings

Finding balance for top managers

Forty-six percent of top management respondents see work/life balance as an issue; 54% perceive their work and personal life to be in balance. Compared to their employees, they perceive their personal situation to be more difficult. Only 25% see their employees having problems combining personal lives with their careers.

Female managers with children do not necessarily have more problems in combining their work and life. Instead, managers under age 35 and over 46 experience the greatest disharmony in their work/life situation.

“Too much work pressure” interferes with this balance; it was cited by 79% of respondents. Second on the list is “foreign travel” followed by “bad organizational structure.” The consequence of this shortage of personal time results in lack of time for family and children (57%). Forty percent of respondents lack personal time, and 9% are stressed.

As many as 66% of the companies are already seeking work/life balance solutions, and another 8% plan to include the issue of work/life balance in their company policy. The most common measures are flexible working hours (68%) and flexible holidays (54%). Also, part-time schedules and career pauses appear to be popular policies to improve balance (27%), followed by teleworking (23%). Only 18% try to balance professional and private life by means of special training or education in the company.

What prompts these extra efforts is largely improved personnel motivation (69%). Another 28% of our study group estimates that profitability will improve thanks to these measures.

As many as 68% of the female managers think it is necessary to support work/life balance. Those with children are more eager to invest in equity between personal and professional life (almost 80% in favor). Also, top businesswomen under age 35 pay more attention to work/life balance. But again these shifts aren’t significant changes, only trends that we can distinguish.


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54%

27%23%

flexible workinghours

flexible holidays career pauses teleworking

Figure 9. Most popular measures deployed by top female managers

The top measures currently perceived as the best ways to improve the balance between work and leisure are teleworking (40%), flexible working hours (28%), part-time schedules and career pauses (28%) and extra workplace perks like laundry, shopping and daycare (28%).

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28% 28% 28%

teleworking flexible workinghours

part-time schedulesand carreer pauses

extra perks such aslaundry, shopping,

daycare

Figure 10. Top measures currently preceived in companies

Work/life balance: middle managers’ perspective

Thirty-seven percent of the middle managers see work/life balance as an issue. Sixty-three percent perceive their work and personal life to be balanced. Compared to their employees, they believe their personal situation is better, as 58% of their employees seem to have found parity between personal life and career.


As much as 46% of the companies are already seeking work/life balance solutions. The most popular measures are flexible working hours (76%) and flexible holidays (54%). Sixty-three percent of the middle managers promote mobile working. Part-time schedules and career pauses are also common (60%). Interestingly, 31% say that a special training program would help restore balance between private and professional life.

76%

54%60%

flexible working hours flexible holidays part-time schedules andcareer pauses

Figure 11. Most popular measures for work/life balance

External studies/data

Maintaining a work/life balance is one of the most difficult challenges facing professional women, often forcing them to slow down or leave their careers. While women need more support at home (many remain responsible for running the household in addition to their careers), companies must also support more balanced environments for their employees.

The Mobile Working Experience: A European Perspective

The IBM Institute for Business Value, in cooperation with the Economist Intelligence Unit, surveyed 351 remote workers from 29 European countries. This study highlights important issues such as the challenges mobile workers face in balancing the demands of work and home life. Based on these findings, IBM recommends providing visible corporate and managerial support for mobile working.

For a new generation of employees, the car, the home office, the hotel and the customer site have become the nexus of their working lives. This impacts the way people interact with their colleagues, how employees are managed and evaluated and how work is coordinated and accomplished.

Eighty percent of the survey participants are likely to work outside of the office at least once per month, and a significant proportion, 39%, are away from the office one to three days per week, or more. The mobile workers


averaging more than three days per week out of the office account for one in seven of all respondents.

The subject of work/life balance is a complex issue for many mobile workers. On one hand, over half of the survey participants said that a better work/life balance was among the most important benefits of mobile working. Approximately three-quarters particularly liked the flexible hours afforded by remote working and the increased ability to manage their own time. Flexibility appears to play an important role in improving mobile workers’ overall job satisfaction; over two thirds said that their work arrangements had a positive effect on this indicator.

Despite these positive findings, one statistic points to a fairly widespread challenge: 61% of respondents find it difficult to separate home and work. There are two primary reasons that make mobile workers struggle to balance home and work demands. First, the relative ease of being able to work at any time of day makes it difficult to “switch it off.” Second, almost 40% of mobile workers believe they need to be available to colleagues more than they do in the office. In a continuous attempt to justify their working arrangements, many find themselves neglecting the work/life balance that may have initially attracted them to remote working in the first place.

A number of other initiatives by organizations are underway to restore work/life equity. For example, a group of over 300 organizations in the United Kingdom, Opportunity 2000, agreed to increase the number of women in key business areas through voluntary positive action. Measures introduced include help with balancing work and home commitments, increasing women’s self-confidence and encouraging women to consider non-traditional fields of work. Many of these organizations are attempting to bring about a cultural change on issues such as work hours.

Mobile working is one of the most obvious examples of flexibility. It is perfectly feasible to carry out the same workload anywhere. It does not have to be in the office. Nothing obliges most employees to be present in the office for 10 hours daily. New technology allows us to be virtually present at the workplace, so the traditional workplace and work hours can easily be adapted.

Conclusion

To sum up, more female than male employees need to be assured that it is possible to combine their professional and private lives. Extra attention should be paid to the possibilities of mobile working, flexible working hours, flexible holidays and a possible career break if needed. Employees’ capacities and commitment do not depend on the time spent in the office, but on the amount of work performed. Too often, employees do not get the liberty and the confidence to program their own workload, which creates stress. Organizations should take responsibility for improving the work/life balance of their employees. In the long term this will result in lower stress levels, leading to motivated, satisfied employees and lower employee turnover.


IV. Networking

Introduction

IBM has questioned female managers on whether they participate in networking organizations. The reasons for participating or not were investigated, as well as the expectations of female managers towards these networking organizations.

Research in eight European countries has shown that career development strategies implemented by men and women are very similar, with one exception: men network from the moment they start their careers, while women engage in it much less consistently.

IBM Survey findings

Networking amongst top managers

The IBM survey shows that only 29% of female top managers participate actively in networks. Women with a university degree participate significantly more (39%) in networks than their colleagues. Also as age increases, women tend to network more. And female decision makers in large companies and women with children tend to network more than their colleagues.

The reasons these women cite for participating in networks are

54%

22%

19%

5%

Sharing of personal experience

Need for information, Advice

Personal contacts

Commercial contacts

Figure 12. Reasons for participating in networks


The main areas of interest in these networks are:

70%

20%

10%

General Management

Sector specific Information

Topics on Diversity and Women

Figure 13. Main areas of interest

Most top female managers prefer a network that is not gender specific (67%), although some women express the need for equilibrium between both genders (29%). Only 4% of the top female managers prefer a women-exclusive organization.

A high number of these managers participate in general networks such as Vlerick, BDMA, Solvay and VMA or in organizations specific to their sector such as Chartered Accountants, ATB Netwerk and Chamber of Commerce.

Women who do not participate in networking organizations cite time constraints for the lack of networking (75%). Nineteen percent of top women managers are not interested in business networks. Ten percent of the women indicate they do not have enough information on the matter.

What kind of information would these women like to have, and which forms of network appeal to them?

Even if women do not participate in any networking organization, they would expect topics such as communication and leadership (63%), sector-specific information (25%) and typical “female” issues such as work/life balance and diversity policy (13%) to be addressed.

Of these women, 29% prefer a mixed network with an equal distribution of men and women. Sixty-seven percent do not care about the gender distribution.

Middle management and the network gap

Of female middle managers, only 10% of the respondents participate in strategic networks. Many of them have joined general groups such as Stichting Marketing, LinkedIn or VKW, or groups related to their specific sector (Verening boekhouders, hrm@netwerk, Nehra, ADM, Agoria).

The middle managers acknowledge that a network is the place to be for sharing experiences (67%), making personal contacts (42%), getting


information (30%), making career moves (27%), making business contacts (20%) and taking part in specific training programs (17%).

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42%

30%27%

20%17%

sharingexperiences

personalcontacts

information career moves commercialcontacts

training

Figure 14. Advantages of networking according to female middle managers

Only 12% of these middle managers have no interest at all in networking. We can only assume that the reason for low participation in networking organizations in this segment is due to lack of time and information about the opportunities.

External studies/data

Networking: The difference between men and women

Men have traditionally formed networks during and outside working hours. Women are willing to join in social events but are often less eager or have less time to participate. As a consequence they have fewer opportunities to network informally. In addition, women often rely on family and friends for career advice rather than approaching colleagues or senior people in their organization, which contributes to a certain amount of “invisibility.”

Nevertheless, in recent years women have been forming their own networks on local, national and international levels. Examples of public female networks in Belgium are Sofia, Markant, Amazone, Rosas and Sein; there are also private initiatives such as Club Elle and Women's Council.

Entrepreneurs are networking leaders

Remarkably, of female entrepreneurs 59% participate in one or more networks. Seventy-five percent of these women have been members for at least three years. Most respondents are members of a professional federation (37%), or a official female network (20%) of which Markant is mentioned most. Membership is not influenced by sector, activity, profile or previous experience. Only the participation in a specific management course influences membership.


Female entrepreneurs cite two kinds of motives for joining a network:

Social motives: the network is assumed to be “the” place to exchange useful facts between colleagues (exchange of experience, advice, information) and to look for partnerships or expansion of the network.

Pragmatic motives: female entrepreneurs looking for resources such as access to educational programs, customers and commercial relationships and aiming to confirm the image and standing of the company.

Most women network for social reasons: female entrepreneurs want to exchange information (74%), learn from experience (72%) and gain advice (62%).

The majority of female entrepreneurs are in favor of networking; 75% consider it useful to be part of a network.

Female entrepreneurs not joining any network do so for the following reasons. The principal reason is a lack of time (one third of all respondents). The second is a lack of interest and information. A lack of adapted networks in some sectors and geographical distance are two other reasons why entrepreneurs do not participate.

Most networks are unbalanced in numbers of men versus women. Only 18% of the respondents are members of a balanced network. Forty-four percent belong to mainly male networks, and 35% are members of a mostly female network.

The majority of female entrepreneurs prefer joining an exclusively female network. The sector in which they are active, legal statute [meaning unclear], educational level and age all play a role in their choice to join a female network. Female entrepreneurs active in the industry are more likely to participate in a network than females in liberal professions [meaning unclear].

Self-employed female entrepreneurs are less represented in exclusively female networks. Women between 30 and 39 with lower educational levels are more likely to choose specific female networks. On the contrary, women with a university degree do not prefer a female network.

Female managers who prefer the mixed networks are proponents of diversity (such as female/male diversity), and participation in mixed and female networks alike appeals to more than one female manager.

Conclusion

A key factor to helping women achieve their full potential, whether they aspire to a career in management or want to set up their own business, is the support of targeted networking organizations that can provide role models, support, coaching, career tracking and mentoring to women. Women’s involvement in informal networks is essential for obtaining valuable information, visibility, contacts and support for performing effectively and obtaining higher-level jobs. As part of their human resource and equal opportunity policies, companies can actively encourage and invite women to be part of such networks for their personal and professional lives.

"For me, the hardest thing about being an entrepreneur is being alone. It's the mirror aspect that most appeals to me in networks."


Career tracking involves identifying high-potential women and helping them gain visibility and experience through challenging and high-profile assignments. Special training may be provided as well as coaching by high-level managers. Mentoring is a process in which more experienced managers provide coaching, support and advice to junior managers. Typically this occurs through pairing senior and junior professionals informally. Some enterprises introduce formal mentoring programs for high-potential women as a strategy to favor gender diversity.

Mentoring of male managers could help them to understand the differences between male and female approaches to management and the importance of including both approaches to the benefit of the enterprise.


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Case studies

IBM “Diversity as strategy”. (Harvard Business review, September 2004)

IBM has used diversity as a strategy to create new business. By 1993 IBM already had a long history of progressive management when it came to civil rights and equal employment. The senior executive team, however, didn’t reflect the diversity of the market for talent or IBM’s customers and employees. To restore balance, a diversity task-force initiative was launched that became a cornerstone of IBM’s HR strategy. Rather than attempt to eliminate discrimination by deliberately ignoring differences among employees, IBM created eight task forces, each focused on a different group such as ethnic minorities, gays and lesbians, people with disabilities and women. The aim was to recognize and value differences among the groups and find ways to appeal to a broader set of employees and customers.

This did not happen overnight, but the IBM of today looks very different from the IBM of 1995. The number of female executives worldwide has increased by 370%. The number of ethnic minority executives born in the United States has increased by 233%. Fifty-two percent of IBM’s Worldwide Management Council (WMC), the top 52 executives who determine corporate strategy, is composed of women, ethnic minorities born in the United States and non-U.S. citizens.

But diversity at IBM is about more than expanding the talent pool. The motivation behind the success of the task forces was described as follows: “We made diversity a market-based issue…It’s about understanding our markets, which are diverse and multicultural.” (Lou Gerstner, former CEO, IBM corporation) By deliberately seeking ways to reach a broader range of customers, IBM has seen significant bottom-line results. For example, the work of the women’s task force and other constituencies led IBM to establish its Market Development organization, a group focused on growing the market of multicultural and women-owned businesses in the United States. One tactic: partnering with vendors to provide much-needed sales and service support to small and medium-sized businesses, a niche well populated with minority and female buyers. In 2001 the organization’s activities accounted for more than $300 million of revenue compared with $10 million in 1998.

The IBM diversity policy not only increased sales, but also had a significant philosophical impact on top IBM employees. The company culture shifted from a long tradition of minimizing differences to amplifying them and seizing the business opportunities they present.

For IBM, diversity as a strategy makes good business sense. The entire effort was designed to help the company develop deeper insights into its major markets, with a direct tie to two of IBM CEO Louis Gerstner’s central dictates. One: IBM needed to get closer to its customers and become more externally focused. Two: It needed to focus on talent—attracting, retaining,


developing and promoting the best people. On both measures, diversity has helped the company come a long way.

Mark & Maas “Work-life balance.” (M/V in balans. Evenwichtige organisaties)

Because priorities between work and home life change during an individual’s lifetime, Mark & Maas, a homecare organization, adapted its work hours and scheduling to suit its employees. Now the firm's employees, mostly women, have the opportunity to choose their working hours (with the exception of on-call responsibilities). Management also provided the practical and organizational tools to facilitate this flexibility. Among its employees are many women returnees, women returning to work after a career break. The organizational structure simplifies the work/life balance for these women. It gives them the opportunity to care for their children and restart their professional career. At the same time, younger employees can be coached by these experienced women. They enrich the team with their experience and their preference for specific work hours. This flexible work organization ensures that the needs of management and the desires of employees complement each other. Both parties profit from an optimal work/life balance, the convenient workflow and the diversity of young and older women.


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General Conclusion

The objective of this study was to get insight on gender diversity on the workfloor. Therefore, IBM conducted a survey addressing two groups of women working in small and medium companies in Belgium: female top managers on one hand (150 respondents) and female middle managers on the other hand (150 respondents). The survey findings were combined with external research in order to provide a comprehensive view of the perceptions of these female business decision makers. Regarding business strategies, the study highlighted a major discrepancy between the competencies women value for themselves and the perception they have of the competencies valued by their company. According to the respondents, female qualities such as communication, organization and collaboration skills are less important for the business management than what companies usually claim. The higher the position in the hierarchy, the smaller the gap between their personal feeling and their perception of the company point of view. This means that those competencies are not fully exploited yet on the workfloor and that women’s strengths can contribute more to the business.

In terms of diversity policy, we noticed an important difference between the perception of top managers and middle managers. Only 5% of the female top managers ask for an explicit diversity policy in their company, versus 23% of the middle managers. This last group seems to need such a policy to address some discrimination problems and thus wants it to focus specifically on career advancement and equal opportunities. The survey also indicated that half of the middle managers consider that men and women have complementary competences and that 8 women out of 10 have no preference about working with men or women. These points clearly speak in favor of the gender diversity on the workfloor.

The surveyed women also provided input on their work/life balance. Top managers struggle slightly more than middle managers to balance their work and life. The most popular measures that companies have implemented to support female work/life balance are flexible working schedules, flexible holidays, career break opportunities and mobile working. The survey indicates that companies that have not taken any measures yet should offer teleworking, flexible working schedules, part-time schedules, career breaks and extra services such as daycare, laundry, etc. It is critical for business, as the study emphasizes the direct correlation between the work/life balance and motivation of women.

The fourth part of the study focused on the networking behaviors of female managers. External research shows that women do not usually participate in networking groups, as opposed to men. The survey indicated that only 29% of the female top managers actively participate in networks, versus


10% of the middle managers. Both groups look for a forum to share experience and best practices and prefer mixed networks. The major obstacle for networking cited by the respondents is the lack of time.

Networks provide career opportunities and new horizons. Women should proactively engage in external as well as in internal networking activities. Coaching and mentoring can help women manage their careers and should be part of their priorities. On the other hand, networking organizations should take into account the female work/life balance requirements and adapt their promotion campaigns and programs accordingly.

Attracting, welcoming, developing, promoting and rewarding everyone regardless of gender, age, religion, etc. is a prerequisite for a business that mirrors the market. Companies pay attention to diversity on the workfloor although not always explicitly. The complementary competencies of men and women should be exploited more consciously on the workfloor as they represent a competitive advantage in today’s business. It is a matter of organization, attitude and ultimately, company culture.

What is your opinion ? For further information and discussion about what diversity means to your business, have a look at and contribute to the “Diversity in business” blog at

http://diversity.squarespace.com/

Your comments are welcome !


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Women in Business - IBM | Women in Business | P e rsp c tiv ofg nd y h w k l Study Methodology IBM spoke to hundreds of women in management positions in small and medium-sized businesses