Editorial May 2009

The kitchen table is at the company’s office now

“No problem can be solved from the same level of consciousness that created it.” We can only hope that these words of wisdom from Einstein are guiding our leaders out of the messy situation that the world is in now. After all, it has become clear that the financial crisis is really a crisis at a different level: a crisis of global dimensions about the morality of leadership and the values underlying our society.

Think crisis, think female

One of the positive effects of the crisis is undoubtedly the renewed interest in women’s perceived qualities as crisis managers; women may well be the ‘different level’ we need to solve the crisis. The familiar pattern of thinking: “Think manager, think male” is slowly turning into: “Think crisis, think female.” The online magazine CFO.com even suggests that companies appoint a female CFO because investors would be happier. The appointment of two female central bankers in Iceland to clean up the state bank is another sign.

Cliff of eagerness

But signs are not enough; conviction and commitment is needed to create sustainable change. Research at Exeter university in 2004 showed that women tend only to be offered positions on the boards of companies doing badly (Financial Times Sept 7 2004). This so-called the ‘glass cliff’ described how women are more likely than men to find themselves in jobs with a high risk of failure. If companies now intuitively appoint women to senior positions it may very well be that they genuinely feel the need to add diverse quality to their boards. But it may also be that the pool of male talent is just not available anymore. The luxury of turning down a board position remains a male one. Accepting a board position should be driven by a thorough assessment of the risks attached to it; like the soundness of the financial position of the company and the upward potential in terms of enhancement of personal reputation and image. As an example, look at the appointment of three women in one-go (and no men) at the non-executive board of Fortis Bank. Did only a total collapse make the company wake up to the value of diversity? After all, it was only then that they went out of their way to get an injection of female talent. Faced with the toughest challenge of keeping the company afloat, coupled with the nature of the banking and insurance business (risk, risk and more risk) it may well be that ‘the guys did not want to burn their fingers’.

From cleaners to partners

In this time of crisis, women need to continue to have the courage to ask tough questions when ‘no cure no pay’ executive searchers come knocking on their doors. The searchers urge to make money despite the financial crisis, and the eagerness of women to finally get on a board, may prove to be a lethal combination. It could well be that women only like to take on a board position if ‘there is really something to do’ and now will go for it, but I doubt it. True equality is achieved when women turn down those extremely high risk board positions for the same reasons as men. After all, women value their reputation and added value too. Women need to be aware of the fact that they might be welcomed as good enough to ‘clean up the mess,’ but not good enough to share the responsibilities in the good times, as equal partners. Some women refuse the cleaning job upfront or, (the wise and the brave) start negotiating the terms of the cleaning contract. They only accept the position after negotiating an extensive package of benefits, like a substantial budget for top quality external advisers, extensive director’s liability insurance covering the USA, fundamental changes to the team’s composition, serious amendments to the company’s corporate governance etc. It’s like starting the discussion at the kitchen table about how to divide those unpopular household chores up all over again. But this time the kitchen table is located at the company’s offices (for as long as they can pay the rent …).

Keep questioning!

The Chinese sign for crisis depicts two characters; one stands for danger and the other for opportunity. For sure, the crisis presents many opportunities for women, and women should take advantage whenever possible, but not just like that and not without questioning. Again Einstein’s words need to be taken to heart: “Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning.”

Mirella Visser
President EuropeanPWN
May 2009