With such economic volatility and uncertainty currently, oversight by boards is more important now than ever.
A balanced view is critical to the success of a company, and maybe even its survival. However, boards may whether wilfully or unwittingly converge on collegial consensus and by doing so fail to address crucial issues. Independence from each other and thereby better collective decision-making are interconnected prizes that are hard fought but well worth winning.
In 2015, Siobhan Sweeney’s “The creation of the Contrarian Director and their role in achieving workable board independence and better risk oversight” caused something of a stir. The premise of that paper is as pertinent now as it was then, and in the aftermath of Coivd-19 perhaps even more so. Having a ‘Contrarian Director’ - a devil’s advocate - on a board to question the herd instinct, to investigate alternatives and recommend innovative approaches whilst acting independently and impartially will deliver more robust examinations of facts, options and proposals.
The longstanding and arguably inevitable consequence of capitalism is that the untried, untested, unknowns are avoided in favour of their more familiar counterparts. The composition of a board of directors will often follow the same trajectory, with reinforcement of success in the form of making another appointment not too dissimilar to the last. The case for independent thinking, and diversity of background (gender, ethnicity, education, experience) has not been made in sufficient boardrooms - all too many boards continue to miss opportunities in the appointment process leading to a reinforcement of an established culture.
Groupthink and confirmation bias in a board room are dangerous and difficult to root out. They can easily override the most rigorous of decision-making processes and detract from even the most respected expert opinion. Self-awareness is the key to reversing such a slide.
Chairs, and other NEDs should recognise when:
Consciously or subconsciously Chairs may prefer directors who will help them build a consensus. The concept of the contrarian runs counter to that – and deliberately so – so it will take a strong Chair (and CEO too) to actively seek out and secure someone to the board who can and will challenge them, routinely, but professionally of course.
Once the benefits of more varied thinking in the boardroom become apparent, then the same principles extended to senior management and throughout a company might yield yet more advantages for that company.
But… do please feel free to disagree with me!
Andrew Guy
Partner, UK
Most of us will have heard convincing presentations regarding visions, strategies, clearly defined projects, actions, and willingly, cheerfully, in chorus, agreed to work towards the temptingly described goals:
“Yes we can! Yes we will! Let´s do this!”
We have seen this in several organizations, heard about it from even more, and experienced it ourselves having been infected with the warm fuzzy feeling of the unanimous ‘Team Pledge’.
But, when reality kicks in and we realize this is actually going to necessitate considerable time and effort, the contagious team spirit that made us so determined and willing to sign up, bit by bit disappears…it simply fades away. Of course we all know what we should do, but all too often we hesitate, we do not prioritize - we make excuses. Our previous ‘total commitment’ is in the end, and at best, stored under ‘Happy Shared Moments’, or at worst never spoken about again.
It has long been a challenge for each and one of us to actively (not only in words) support and stand behind agreed visions, strategies, clearly defined projects, actions etc - to make it happen!
Our virtual existence comes with many benefits, indeed online meetings are often a great forum for sharing ideas and creating impressive strategic campaigns, but we have noticed that since the pandemic many people actually have less time to follow through– they are simply trapped behind the screen, too occupied in online meetings to even find the time to eat!
As we increasingly ‘talk the talk’ paradoxically many of us have less time to ‘walk the walk’ and our brilliant strategic plans become little more than ephemeral blue sky thinking…
While we all miss our daily in-person interactions, perhaps they are more important that we ever realized in ensuring our shared and agreed upon ideas actually become reality.
Share with us your tips of how you find the balance between the 'talk' and 'walk'.
We will be waiting behind our screens...
Michael Karlsson
Michael Rooslien
Partners, Sweden
The future is anything but predictable and having a strong finance leader is crucial for any organisation as the CFO most directly contributes to a company’s financial health and resilience.
In the times of the current pandemic, CFOs are assuming a greater role and are likely to hold onto those greater responsibilities in the future.
What are the key competencies and skills required from future CFOs?
While every search is unique and there is no universal advice to finding the right CFO, these are the most sought-after attributes:
Strategic mindset
To serve as a right-hand of the CEO, CFOs need to be able to focus on shaping strategy, transformation and scenario planning. Today’s CFOs are responsible for much more than finance, they often oversee multiple functions from IT, Legal, Real Estate to Supply Chain. Control and compliance is not enough, companies need a strategic CFO who can look at the business through the windshield, rather than the rearview mirror.
Ownership mindset
CFOs must focus on protecting the bottom line but also are expected to view the financial performance through an ethical lens to ensure sustainability and value creation.
Adaptivity and openness to innovation
Digital skills and adopting new technologies has become priority, not just “nice to have”. CFOs need to have solid knowledge of technology and how to use it to both advance the business and protect it against cybersecurity and data privacy risks. Coping with rapid changes and decision making despite uncertainties are must haves.
Communication skills and leading with empathy
Though some CFOs have impressive technical backgrounds, that is not a key to success. In the past, CFOs might have been focused on communicating with investors and shareholders. Today, they have to manage remote teams, they deliver messages of company situation and prospects to all employees, customers, suppliers and the community. The pandemic is proving that ‘softer’ leadership qualities such as empathy, compassion and reflexion are more effective than dominance and directive style. We are finding that this is helping to expand the diversity of CFO candidates.
Conclusion
Resilience and adaptability became more important and will remain crucial for the uncertain times ahead. Technical skills and sector-specific experience remain important but past achievements do not guarantee future success and despite the clear benefits of hiring from within the industry, our experience has shown that companies are open to look beyond their own industry to find top talent.
Mary Keane
Andrea Chládková
Partners, Czech Republic
Ich glaube, das hat auch viel mit unserer Sozialisierung zu tun. In den 70iger Jahren brauchten Frauen noch die Genehmigung ihrer Männer, um arbeiten gehen zu dürfen. Das ist nicht einmal 50 Jahre her! Es ist bei uns immer noch weit verbreiteter Konsens, dass sich vor allem die Frauen um die Kinder zu kümmern haben. Rabenmutter ist ein urdeutsches Wort und Symbol dieses Gedankenguts. Hier findet inzwischen ein Umdenken statt. Inzwischen sind ja z. B. ein signifikanter Prozentsatz der Kolleg*innen, die in Elternzeit sind, Männer. Aber es muss konsequent fortgeführt werden; die Infrastruktur muss angepasst werden. Wir brauchen bezahlbare Krippenplätze und ein gutes Ganztagesschulangebot. Frauen müssen die Chance haben, sich nicht nur für Kinder, sondern auch für eine Karriere entscheiden zu können.
Natürlich muss auch bei den Männern ein Umdenken stattfinden, aber auch sie brauchen Unterstützung. Es muss in Ordnung sein, dass sie ihre Kinder um 17 Uhr irgendwo abholen, ohne schief angesehen zu werden. Das machen beispielsweise die Niederländer so viel besser. Dort werden keine Meetings vor 9 oder nach 17 Uhr angesetzt. Das ist viel familienorientierter!
Gerade in Führungsetagen sind wir in Deutschland sehr rückständig, was die Akzeptanz dafür betrifft, dass Familie versorgt werden muss – ob von Mann oder Frau.
Wie bewerten Sie die aktuelle Entwicklung beim Thema Geschlechtervielfalt in Führungsgremien mit Blick auf Deutschland?
Da gibt es noch viel zu tun! Es muss ‚from the top down‘ gelebt werden, in die Zielvereinbarungen der Führungskräfte einfließen und in den Köpfen der CEOs verankert sein. Das Verständnis muss sein, dass Vielfalt einen Mehrwert bringt und Andersartigkeit förderlich für Teams ist. Das geht weit über die Frage des Geschlechtes hinaus.
Worauf sollten Frauen in ihrer Karriereplanung achten, um sich auf eine Spitzenposition vorzubereiten?
Ganz wichtig ist es, sich über sein Leben klar zu werden und ein Ziel zu setzen. Was will ich? Karriere machen ja, aber zu welchen Opfern bin ich bereit? Was ist mit Auslandsaufenthalten? Die Partnerwahl ist ebenfalls relevant. Unterstützt mich mein Partner in meinen Bestrebungen?
Im Übrigen gibt es nichts, was man nicht machen kann. Ich kann auch mit Familie ins Ausland gehen! Aber ich muss meine Ansprüche anmelden, klar formulieren und sagen, ich will das. Offen sein und keine Angst haben vor Herausforderungen.
Und wo sehen Sie die größten Hindernisse?
In den Köpfen! Wir Frauen neigen dazu, einen Job oder eine neue Aufgabe nur dann anzunehmen, wenn wir über 100 % der Skills verfügen. Da sind Männer ganz anders.
Wenn ich merke, dass es in einem Unternehmen für mich nicht weitergeht, ich so nicht ans Ziel komme, muss ich neue Chancen suchen. Dazu muss ich bereit sein, meine Komfortzone zu verlassen, Gespräche mit anderen führen und vielleicht auch mal privat einen Coach buchen. Sich selbst als Priorität sehen. Vielleicht muss man mehr delegieren – beruflich wie privat. Das kann so aussehen, dass man die Kinder mal zu den Großeltern schickt, um etwas Kraft zu tanken. Sich selbst Auszeiten zu gönnen und auf den eigenen Energiehaushalt zu achten – ohne ein schlechtes Gewissen zu haben – ist wichtig.
Denken Sie, dass der Gesetzgeber weitere Schritte unternehmen muss?
Ich beobachte die Entwicklung nun seit 30 Jahren und für mich geht es immer noch zu langsam. Wichtiger als eine Quote ist aus meiner Sicht, dass die entsprechende Infrastruktur bereitgestellt werden muss. Steuerliche Anreize schaffen, wie z. B. Kindergartenunterbringung oder Ganztageseinrichtungen und volle steuerliche Absetzbarkeit von Tagesmüttern etc.
Welche Frau bewundern Sie und warum?
Nicht eine, ich habe viele Vorbilder. Amelia Earhart als die erste Frau, die geflogen ist. Aber auch andere, wie die erste Frau, die eine Hose getragen oder einen Uniabschluss gemacht hat. Frauen, die sich also in ihrer Zeit haben extrem durchsetzen müssen. Es braucht diese Vorbilder. Ich bewundere aber vor allem auch Frauen in unserer Zeit, die es aus schwierigen Verhältnissen geschafft haben, die am Ball geblieben sind, oder auch alleinerziehende Frauen, die den Alltag trotz aller Widrigkeiten stemmen und meist mit wenig Geld auskommen müssen.
Brauchen wir einen International Women‘s Day heutzutage überhaupt noch?
Ja, brauchen wir! Noch ist er nötig, aber es bleibt die Hoffnung, dass wir ihn irgendwann abschaffen können.
Wer hat Sie inspiriert?
Meine Mutter. Sie ging vor dem Mauerbau mit einem Einkaufskorb von Ostberlin nach Westberlin und hat ihre Familie zurückgelassen. Ihren Mut habe ich sehr bewundert. Sie wusste ja nicht, ob und wann sie ihre Eltern und Geschwister wiedersehen würde. Sie wurde 1931 geboren, ging 7 Jahre zur Schule. Immer hat sie mir signalisiert, du kannst alles erreichen. Mach dich nicht abhängig.
Ich hatte auch eine Grundschullehrerin, die mir geraten hat, mich nie abhängig zu machen und auf eigenen Beinen zu stehen. Mit einer guten Ausbildung können wir alles im Leben erreichen.
Hatten Sie einen Mentor*in?
Ja. Ich war im Mentorenprogramm der Deutschen Börse. Mein direkter Chef hat mich sehr unterstützt. Später hatte ich das Glück Reto Francioni als Mentor zu haben. Von beiden konnte ich viel lernen. Mir wurde viel zugetraut, sodass ich immer in die nächste Rolle kam.
Aber auch mein Mann war mein Mentor. Er hat einen ähnlichen Background, war mir beruflich aufgrund seines Alters etwas voraus und hatte viele Situationen bereits durchlebt. Mit ihm konnte ich alles besprechen. Er hat mir mit Rat und Tat zur Seite gestanden.
Und heute stehe ich selbst gerne vielen jungen Frauen als Mentorin zur Verfügung. Das ist mir sehr wichtig! Und wer keinen Mentor*in hat, sollte sich einen suchen. Eine Person ansprechen, die man bewundert, und fragen, ob sie diese Rolle übernimmt.
Was glauben Sie, welche Fähigkeiten sind notwendig gewesen, um Sie dahin zu bringen, wo Sie heute sind?
Dass ich an mich selbst geglaubt habe! Vertrauen in sich selbst zu haben, dass man das schaffen kann, ist ganz wichtig. Aber auch Mut, Beharrlichkeit und Authentizität.
Vielen Dank für das Gespräch, Frau Gruber!
Meltem Ay
Senior Consultant, Germany
The Italian Experience...
Digital transformation is now a strategic priority for companies in all sectors and the past year, due to the pandemic, has highlighted even more gaps in larger companies.
Digital technologies are present in our daily lives and are also forcing companies to change - it is no longer possible to procrastinate.
The increasingly widespread adoption of the Cloud, the introduction of the IoT (Internet of Thing), the need to give value to the enormous amount of data, are causing to all industries to undergo a radical change in processes, in their ways of working and in the corporate culture itself.
Research conducted by Accenture The European Double Up: A twin Strategy that will Strengthen Competitiveness of 4,051 executives of European companies was presented at the annual meeting of the World Economic Forum last January. It underlined that for European companies to return to levels of profitability before the pandemic would take 18 months and only 32% of companies expect to realize an increase in profits in the next 12 months. These latter realities, defined as "the leading companies of tomorrow", will focus on the adoption of digital, together with the implementation of sustainability actions. The study shows that around half (45%) of European companies are prioritizing investments in both digital transformation and sustainability, with 40% of companies planning to make large investments in the field of artificial intelligence, 37 % in the cloud and 31% in sustainability.
In Italy, a survey made by the European Investment Bank, still highlights a low focus of Italian companies on innovation with just 17% having concentrated investments in innovation relating to the introduction of software and digital technologies. Proof of the benefits of digitization is the analysis of the productivity level which shows that digitized companies perform better and are more dynamic than non-digitized ones. The EIBIS survey shows the average productivity of digital companies in Italy is 12.3 %, more than 11.7% of non-digitized companies. Furthermore, in the last three years, companies that have undertaken innovations in the digital field have had a growth trend of the workforce higher than that of companies that have not implemented digital technologies. There is no doubt, in fact, that digital transformation requires a profound cultural change and the acquisition of new skills and profiles, which often come from the digital world.
The technologies that drive this transformation are many, such as:
Production and logistics managers as well as network managers will need to acquire more and more new skills in this area to be able to lead the change.
Guglielmo Sallustio
Partner, Italy
The efforts made by the management companies and by the Buy Side to adapt will not revert to the way things were.
We recognise that we must add more value, both for efficiency and quality of life, which will involve developing and adapting to this model through skills training (e.g. remote communication).
The “imposition” of teleworking during the lockdown period has caused the way of relating between the buy side and the sell side to change. This period has been a brake on the acquisition of new clients since they have preferred to trust existing relationships, and they have been more reluctant to learn about new alternatives, therefore, professionals able to develop close and trustworthy relationships take on special value.
Secondly, within the commercial activity itself, we have also observed that the technical component of the sale (product) and the general technical knowledge (market) on behalf of the sales professional is something that will be decisive in the post-Covid period - even more so than it already is.
Future commercial activity will be a mix between remote and face-to-face working. Likewise, and as a critical point, it will be necessary to have professionals who are capable of developing a relationship of trust and closeness remotely, and those who can reinvent their relationship with clients to be able to achieve more impact and higher quality in other ways.
You can't flood customers with webinars!
Emiliano Sacristán
Partner, Spain
First published in the Spanish edition of Funds Society Magazine, December 2020.
Today, the fifth and final report from the Hampton-Alexander Review was published.
The Hampton-Alexander Review was an independent, voluntary and business-led initiative supported by UK Government to increase the representation of women in senior leadership positions and on boards of FTSE 350 Companies, from 2016-2020.
The scope of the Review covered over 23,000 leadership roles in Britain’s largest listed companies, covering the board and two leadership layers below the board, making the UK’s voluntary approach to improving women’s representation at the top table, arguably the biggest and most ambitious of any country.
FTSE 100, 250 and 350 all reached target of women making up 33% of boards by the end of 2020. Culture change at the top is paving the way for greater gender parity across business with women’s representation in wider senior leadership also rising. Hampton-Alexander Review CEO, Denise Wilson said:
“The lack of women in the boardroom is where it all started a decade ago, and it’s the area where we have seen the greatest progress. But now, we need to achieve the same - if not more - gains for women in leadership.”
The final report states that there is no doubt that the executive search community has a critical part to play in the selection process and working together with clients, has been a major driver of progress.
Friisberg has a long established success in helping appoint women candidates to a wide range of business and public boards. This is important given the significant reach of many of these boards generates a critical ripple effect across boards in a wide range of sectors and positions of influence.
We work with our clients to ensure talent is evaluated on a level playing field.
We ensure that briefs are drawn as widely as possible, which prevents candidates with the appropriate skills and attributes being unintentionally ‘written out’ at an early stage.
We offer support and guidance to staff, and clients alike, on how to evaluate different work and life experiences with the more traditional career paths, and on the power of bias in the process, and final appointment stage.
As we look to build back better from the pandemic, it’s important businesses keep challenging themselves to use all the talents of our workforce and open up the top ranks for more, highly-accomplished women.
As diversity gradually increases in many boardrooms (still too slowly, in my opinion) we are seeing more women take on the role of:
Now, I know some would argue that Chairman is not necessarily a masculine term in much the same way as we use hu(man), wo(man) or fe(male).
I disagree.
If it doesn’t matter, then why don’t more men call themselves Chairwoman?
Well, I asked a couple of Chairmen and they felt to call themselves a Chairwoman would just be daft. Yes, perhaps, but no more daft than the other way around – surely?
We still live and work in what is irrefutably a man’s world, and historical semantics dictates Chairman literally means a Chair who is also a MAN.
However, I know plenty of women who refer to themselves as Chairman.
Why?
In the UK, the Companies Act 2006 actually specifies the term 'Chairman' - which is as astonishing as it is unnecessary - and may be the reason.
But, do women really aspire to holding a masculine title? Are they content that it’s the way it has to be? Do they care nothing for its sexist overtones? Perhaps they are actually afraid to rock the boat in what might be a predominantly male boardroom?
But argue I must and argue I will.
I care deeply about the message it sends. If men want to call themselves Chairman, fine. It’s accurate. If women want to call themselves Chairwoman, well, that’s fine too. However, if women use Chairman, aren’t they saying, “I identify as a woman, but this is a man’s world, and I need to conform to get on."?
It sends the wrong message to women, and it also sends the wrong message to men too, especially younger men who shouldn’t be growing up with the potential for a sense of entitlement - that the seat at the head of the table is reserved for ‘men’ only.
Why not use the simple, non-gender specific term Chair?
It’s short, to the point, offends no one, creates no sense of entitlement, and does not attribute gender to something that is absolutely nothing to do with gender…
If you are reading this article and huffing and puffing or muttering about ‘political correctness gone mad’ – there is no need to ask ‘What’s the problem?’...
Lorri Lowe
Partner, UK
Many résumés for women in top positions read like a handbook to business success. They didn't need a quota, the career steps followed one another seemingly logically, opportunities always presented themselves and women took advantage of them. But there are few - at least in Germany.
The legislature now wants to change that.
The plans for a binding quota of women on executive boards affect almost a third of the 100 largest listed companies in Germany because 29 of them have more than three board members, but no position for a woman, according to an analysis by the Boston Consulting Group.
As a diversity officer, I speak to highly qualified women in management positions every week. Many of them have come along a rocky road, yet not all are in favour of a quota; and have differing opinions on the advancement of women.
But when it comes to the question of what women need above all to make it to the top, they all agree:
Courage to seize opportunities and also to fill uncomfortable roles - even if you do not yet have all the skills.
What do you think?
Do women lack courage?
I look forward to a lively exchange with you!
Meltem Ay
Principal, Germany
The world needs more women leaders – whether that is leading companies or running countries. Why? Because gender equal leadership results in a more inclusive and effective society.
Global talent shortages are at a record high (almost double that of a decade ago) so surely it is critical to harness all potential talent. Did you know that although women enter the workforce in relatively equal numbers as men, but the rise to the top can be slower and more challenging for them?
At Friisberg we constantly challenge the status quo and actively seek to create truly inclusive and supportive environments where women can excel and constantly achieve their full potential.
There are many ways companies themselves can aim to attract and retain more women leaders:
Break the male line of succession
A lack of women leaders at the top cannot always be attributed to a lack of female talent. Many women feel blocked from senior ranks due to all-male lines of succession. Breaking this line of succession requires reversing stereotypes. Companies must clearly articulate and make transparent the specific skills and experiences needed for movement into leadership levels and should identify suitable mechanisms for helping women build exposure to the scenarios they need in order to progress.
Offer workplace benefits beyond pay
For companies to attract women into leadership roles, they need to offer more than just good pay, such as employee training and development opportunities, good work/life balance, and flexibility. Many women still remain the primary caregivers outside of working hours, so it is important that companies understand and respect the wide demands often placed on working women.
Look for employees who are willing to adapt
The world of work is changing thanks to the increasing influence of digital technology and this can mean breadth of skills and not always depth. Yet, many companies still require candidates to have many solid years of experience behind them, something that greatly favours men who have not had career breaks. Some of the biggest barrier to women's progress is an entrenched male culture that is based on merits created by men, shaped by presenteeism and defined largely by male standards.
At Friisberg, we always remove bias and barriers from interviews and ensure our assessment criteria are designed with all candidates in mind.
Encourage leaders to take responsibility for their actions
All leaders have the influence to instigate change, so it is important that the words, actions and decisions of leaders are fair and inclusive in promoting and encouraging women.
Leaders should ensure there are adequate policies and strategies in place to create inclusive workplace cultures where people's differences are valued. Such workplaces ensure everyone - regardless of background or identity - is respected, their voices heard and their actions valued.
Lorri Lowe
Partner UK
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