Cranfield Female FTSE Board Report 2016

Targets for Gender Balance

The Female FTSE Board Report 2016

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In 2014 Linklaters and Allen & Overy were amongst the first laws firms to announce a target. Within a year several other firms took that step and today most of the other larger names such as Norton Rose; Freshfields Bruckhaus Derringer; Pinsent Masons; Herbert Smith Freehills; Clifford Chance; Baker & McKenzie; and Ashurst all utilise targets as part of their diversity management. For example, Ashurst set a target of 40% of all partner promotions to be female, and 25% of Equity Partners and 25% of all Management positions to be held by women by 2018. Divisions and office heads have set their own objectives and priorities, with accountability, and the firm strengthened its focus on transparency. From our women on boards research, we know that until the leadership of the organization stands up and takes diversity seriously, other initiatives are really just tinkering around the edges. Embedding true gender diversity is a change programme with a complexity of issues and stakeholders. Like any other change programme, it needs objectives and measurable targets. Below we feature case studies of organizations that are already using metrics and targets to drive gender diversity at a senior level. They share some of the successes as well as acknowledging some of the challenges along the way. We congratulate them for their persistence and offer them as examples of best practice from which other organizations can learn. “The approach of target setting, creating the impetus through individual organizations and their leaders, and requiring transparency on progress, applies very much to our public services as well as the private sector. That is why we have set a target of “50:50 by 2020” for NHS women on boards in England.” – Ed Smith, Chair NHS Women Steering Group; Chair NHS Improvement

Three things are proven to propel progress in an organization’s gender balance – transparency, targets and a commitment to drive change from the top. The Female FTSE report used all three of these to drive up the percentage of women on boards with the Davies report. Now it’s time to apply these once again to fix the female executive talent pipeline. Transparency is essential because without it you have no idea where you stand, so tracking the gender balance of managers at junior, middle and senior levels is a necessary first step. It’s most likely you’ll see a pyramid

shape: many more at the bottom and far fewer the top. So take the second step, set targets to fix your gender balance, especially at executive level. And measure, track and report your progress. Programmes such as flexible working, outcomes- based performance conversations, sponsorship of talented women and training to highlight and overcome unconscious bias are all effective – but only if the CEO stands genuinely behind them. Remember improving gender balance in the executive pipeline isn’t only about promoting women, it’s about boosting your organization’s leadership, capability and performance. Diversity delivers results: better financials, more engaged employees and improved decision making. So what are you waiting for? Ann Francke Chief Executive of the Chartered Management Institute