Cranfield Female FTSE Board Report 2016

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The Female FTSE Board Report 2016

Targets for Gender Balance

Targets may provide interim milestones , small steps on a longer journey, as they are rarely an end-goal. The Davies 2015 target of 25% is such an example. Having achieved the target within the timeframe, this has now been recalibrated at 33% for 2020. Organizations can also utilise staged targets, for example as outlined in the Royal Bank of Scotland case study below. –– Like any business objectives, targets should be stretching but realistic . Ambitious and achievable targets should be based on an honest assessment of obstacles and opportunities for change. FTSE 350 companies were initially encouraged by the Davies Review to set themselves achievable individual board targets, to reflect their different starting points on the journey to gender balance. More recently, HM Treasury has encouraged all financial services firms to set their own targets for increasing the proportions of women at mid and senior management levels. 16 –– Targets frame diversity as a culture change . A perceived benefit of targets over quotas is that they aim to move beyond descriptive change (i.e. changes in numbers) to create more substantive change (i.e. change in culture), moving it away from a women’s issue. Changing organizational culture can be seen as nebulous, collective and intangible, and therefore it is crucial that targets have clear lines of accountability. Progress during the Davies Review is explained by the fact that companies and Chairmen were under intense scrutiny to set their own board diversity goals and report progress against them. Similarly, our research found that a key driver for developing female talent below board level is commitment and accountability from senior leaders and managers. 17 Companies leading the way in terms of talent management hardwire diversity target achievements to managerial responsibility, performance and reward. For instance, engagement of leaders in women’s leadership programmes is critical to nurturing accountability and systemic culture change. “The key thing is that every sponsor who comes on the [women’s leadership] programme is a potential change agent because they’re a partner. So it’s about educating them as to what life is like for these women to be in the organization, so they can then begin to think about what they might do about it.”

– (PwC)

“Your performance rating at the end of the year is driven partly by how well you’ve done [on developing talent], which ultimately now will link to your bonus as well. So it sits at the heart of what we expect of leaders.”

– (GSK)

–– Targets are effective when underpinned by robust metrics that enable organizations to locate obstacles. This also enables accountability. Several FTSE organizations include balanced scorecards on diversity for the KPIs of their executives. Setting targets requires those responsible to investigate the fine detail of gender balance throughout the organization, and across talent management processes. This measurement as praxis, rather than just research, utilises the knowledge, bringing comprehensive understanding of the issues and therefore greater capacity for change.