Proven Ways to Drive Inclusion Numbers Behind the Methods Celia - - PowerPoint PPT Presentation

Proven Ways to Drive Inclusion – Numbers Behind the Methods

Celia Huber, Senior Partner McKinsey & Company

Drawing from our research

Average female board representation among the top 60 companies has increased 24 p.p. since 2005, and is just shy of 40%

Diversity in the boardroom can happen

McKinsey & Company 3

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Indeed, the top 25 companies have made major progress

• ver the last 10 years to steadily converge toward parity2

20 09 60 30 08 06 13 15 12 40 10 07 14 2016 10 11 2005 50 Top 25 us companies by share of women board members1 , %

Average

▪ General Motors ▪ Signet Jewelers ▪ Hewlett-Packard ▪ Tegna ▪ Hologic ▪ Texas Instruments ▪ IPG ▪ Ulta ▪ Kellogg ▪ Viacom ▪ Macy’s ▪ Wells Fargo ▪ Michael Kors ▪ Williams Companies ▪ Navient ▪ Patterson Companies ▪ Accenture ▪ Alaska Airlines ▪ Alliant Energy ▪ American Water Works ▪ Ameriprise Financial ▪ Best Buy ▪ Dollar General ▪ Dr Pepper Snapple ▪ Estee Lauder Companies

1 As of August 2016

SOURCE: BoardEx database of S&P 500 companies

To improve gender diversity on boards, we have identified 3 major best practices

Change your mind-set Expand your criteria

• Make a visible commitment to diversity with sustained action

throughout the organization

• Set new principles for decision making
• (e.g., include women on every candidate slate)
• Look beyond current CEOs and other members of the C-suite
• Consider candidates with the right expertise, not just those with

prior board experience

• Expand your network to include more women and explicitly ask

Maintain an search firms for female candidates active pipeline

• Cultivate long-term relationships with prospective candidates

• Corporate

America is not

• n a path to

gender equality

Survey trends suggest it will take

more than 100 years

to reach gender equality in the C suite

Women remain underrepresented, dropping considerably by the time they reach the C-suite

Director / Entry level Manager Sr manager VP SVP C-suite 54% 46% 63% 37% 67% 33% 71% 29% 76% 24% 81% 19% Men Women

yxwvutsrponmlkihgfedcbaWVTSRPMHGFEDCA What do women and men’s experiences tell us?

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Women perceive that their gender has created

Women Men

a disadvantage in the workplace

% of women and men who report that their gender has played a role in 19% 5% 30% 6% 36% 5% their missing out on getting ahead Entry level Middle management Senior management

SOURCE: 2016 McKinsey and LeanIn.Org Women in the Workplace study

zyxwvutsrponmlkjihgfedcbaWVUTSRPONMLKJIHGFEDCBA Women say they’re negotiating as often as men and

Women Men

disproportionately receive pushback

% of women and men who negotiated % of women and men who … that received feedback they were … 39% 36% 29% 27% “Bossy” “Aggressive” “Intimidating” 23% 30% “Lobbied” for a Asked for an promotion or new increase in assignment compensation

SOURCE: 2016 McKinsey and LeanIn.Org Women in the Workplace study

Women receive less constructive, developmental feedback

Women Men

36% 46% Receive difficult feedback regularly 43% 35% Perceived as mean or hurtful 15% 6% Cause an emotional breakdown Reasons men & women hesitate to give difficult feedback

SOURCE: 2016 McKinsey and LeanIn.Org Women in the Workplace study

Recommendations for improving diversity

Make a compelling case for gender diversity 1 Ensure that hiring, promotions, & reviews are fair 2 Focus on accountability and results 3 Empower your employees to lead the charge 4

2 Employees see a gap between performance evaluation policies and practices

How to close that gap…. 57% 93% Companies that report clear, consistent criteria Employees who say managers do this in practice Promotions

• Blind resume screening
• Analytics to reduce bias
• Evaluation criteria screens
• Personalized performance

reviews

• Diverse slates
• High-potential talent pools

Hiring Reviews

SOURCE: 2016 McKinsey and LeanIn.Org Women in the Workplace study

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28%

4

what to do to improve gender diversity

SOURCE: 2016 McKinsey and LeanIn.Org Women in the Workplace study

51% 61% 28% Entry level Middle Manage- ment Senior Manage- ment

Employees feel unsure on how to support and promote gender diversity

% of employees who report they know Levers for education…

Train Teach employees what they need to know Celebrate Give credit where credit is due Model Talk the talk and walk the walk

Getting diversity right matters for everyone To learn more, go to www.mckinsey.com/womenmatter