Is the secret to a long lasting business having women in leadership roles? A recent survey conducted by Kennesaw State University in conjunction with EY suggests the answer is — yes.
The survey, Staying Power: How do Family Businesses Create Lasting Success, polled family businesses in the world’s top 21 global markets and found that the largest and most long lasting family businesses had, on average, five women in senior executive positions and four women being groomed for top leadership roles.
Overall, the family-owned businesses surveyed had an average of 22 percent women on their top management teams. Among the world’s largest family businesses, a whopping 70 percent are considering a woman for their next CEO.
It’s not just because these women are family members, either. Overall, the companies surveyed averaged 1.5 female family members and 3.5 female non-family members in their C-suites.
What do these results suggest about all businesses, not just family businesses? And what tactics can you adopt from successful family businesses when it comes to women in leadership roles?
The study identified three characteristic traits of family businesses that help make them a good environment for women in leadership roles – and that also help improve their financial results, too.
Women in Leadership Roles …
Provide Role Models for Other Women
Family businesses with women in leadership roles offered strong role models to women at all levels.
By promoting from within, they show that it’s possible to not only move up the ranks, but to move all the way up the ranks to the C-suite or even the CEO role.
They Create an Inclusive Environment
Family businesses in the study report that they actively spend time and effort to build and improve relationships among family members and to develop a cohesive culture for the business.
Interestingly, family businesses are more likely than other types of businesses to believe that corporate social responsibility is important. More than 50 percent report being committed to CSR practices, and 81 percent say they engage in philanthropy.
In other words, these companies are concerned with the well-being of their staff, their customers and their communities. Such a focus on people over profits helps to develop an inclusive and supportive atmosphere, which the report describes as “the kind of environment in which women thrive.”
They Think Long Term
Family business leaders’ ultimate goal is to keep the business going beyond the current generation. That’s why these businesses focus on growth and sustainability, not solely on short-term results.
The study authors theorize that this focus on the future and on the good of the business as a whole helps eliminate “conscious and unconscious bias” against women in leadership roles.
Personally, I’d say that a company that has an inclusive environment, encourages employees to develop a career path within the business, has a long-term focus on sustainability, and is committed to giving back to the community — is a business that will attract and retain not only women, but just about every type of employee.
How can you incorporate these attitudes into your business?