Culture 15 February 2019
Businesses that neglect their most valuable assets lose competitiveness and long-term profitability. The same is true on a larger scale for national economies. So why do we continue to tolerate the enormous, yet preventable waste of human capital caused by gender inequality? Isn't it time we addressed this question as one of the top international economic priorities?
Only around 50% of women globally are in paid work outside the agricultural sector compared to 77% of men. This gap in employment rates has barely narrowed over the last twenty years. Worse still, the gap widens the higher up the career ladder you go. The number of female CEOs of Fortune 500 companies has actually fallen by a quarter over the last year to under 5%. A sobering reality indeed.
As I was discussing these issues with NGO and business leaders at the Concordia Summit and the World Economic Forum during the most recent United Nations General Assembly, I was struck by three main challenges.
First, men seem to be doing very little to bridge the gender gap. The advocacy is mostly led by women, as was the case with the suffragette movement at the beginning of the 20th century to give equal rights for women to vote. As long as men do not understand that bridging the gender gap is their responsibility as well, very little progress will be made. It is high time for men to step up and lead together with women to address this issue.
Second, very few business leaders seem to understand that gender inequality is not just a moral and human right issue, it is also a bottom line issue. It constitutes the single biggest distortion in the modern labour market and a major impediment to wealth creation. It prevents talent from rising to its natural level and leads to the systematic misallocation of resources, leaving the global economy worse off in the process.
It has been estimated that closing the gender gap would add $28tn to the value of the global economy – a 26% increase – by 2025. The dividend would be equal to the combined GDPs of the US and China. There is today an extensive body of research showing a strong link between female empowerment and economic development. Put simply, companies and societies are more likely to grow and prosper when women gain greater financial independence as wage earners and property owners.
Forward-thinking companies should be looking for ways to empower women at work, not just as a moral obligation, but also as a sound business strategy. A 2017 report by McKinsey noted that companies with three or more women on their executive committees performed better according to a broad set of organisational criteria, including innovation and quality of leadership. It further concluded that companies with the most women in senior positions achieved returns on equity 47% higher than those with none.
Third, when advancing female economic empowerment, the international community seems to mostly focus on helping women to break the glass ceiling in companies currently dominated by men. While this is important, we are also missing a big piece of the puzzle. I am convinced that the most effective strategy would be to actually increase opportunities for women to create and build companies of their own. Championing women's entrepreneurship will contribute more to a narrowing of the gender gap than promotion within existing businesses.
Sadly, today's entrepreneurs are still twice as likely to be men than women. Female entrepreneurs receive a disproportionately small amount of venture funding, with only 2.2% of the total invested in the US last year going to women-owned start-ups. This is despite the fact that companies founded by women deliver significantly higher returns than the market average, according to surveys. More must be done to provide the investment capital needed to support and accelerate the emerging revolution in female entrepreneurship.
I know from my own experience running one of the leading direct selling networks in Asia, Africa and Middle East that women are equally talented and eager to take control for themselves and become entrepreneurs.
When Nobel Prize Winner Professor Muhammed Yunus created the first ever microcredit bank in Bangladesh more than 30 years ago, he noticed that women were more likely than men to run their business in a professional way and to repay loans. As a result, more than 90% of Grameen bank customers are women.
Gender inequality is not a fatality. But turning this vision into reality will need more than good intentions. It will require transformative change in the way we do business and support entrepreneurs.
Personally, I am over the top excited that we are on the cusp of turning the page on not only a new year but also on a new 10-year window of opportunities and possibilities!
You may be thinking, whoa…I am just embracing the fall season…yikes… it is tough to think about a new decade!
Yet it is this groundwork, this forward thought that you put in place TODAY that will propel you and lead you into greatness in 2020 and beyond. Designing a new decade rests in your ability to vision, in your willingness to be curious, in your awareness of where you are now and what you most want to curate. Essentially, curating what's next is about tapping into today with confidence, conviction, and decision. Leading YOU starts now. This is your new next. It is your choice.
Sometimes to get to that 'next', you need to take a step back to reflect. Please pardon my asking you to spend time in yesterday. Those who know me personally, know that I created and continue to grow my business based on enabling the present moment as a springboard for living your legacy. So, indulge me here! True, I am asking you to peek into the past, yet it is only in order for you to bring the essence of that past forward into this moment called NOW.
One of the best ways to tap into what's next is to clarify what drives you. To design a new decade, ask yourself this question about the past ten years:
What worked? What were my successes?
Make a list of your achievements big and small. Don't type them, but rather use ink and paper and sit with and savor them. Move your thoughts and your successes from your head, to your heart, to your pen, to the paper. Remember that on the flip side of goals not attained and New Year's resolutions abandoned, there was more than likely some traction and action that moved you forward, even if the end result was not what you expected. Once you have a full list of a decade's worth of personal and professional accomplishments, think about how this makes you feel. Do you remember celebrating all of them? My guess is no. So, celebrate them now. Give them new life by validating them. Circle the successes that resonate with you most right now. Where can you lean into those accomplishments as you power into the decade ahead?
Now comes a tougher question, one that I used myself in my own mid-life reinvention and a question I adore because in a moment's time it provides you with a quick reconnect to your unique inner voice.
If it were 10 years ago and nothing were standing in your way, no fear or excuses to contend with…what would you do?
Don't overthink it. The brilliance of this question is that it refocuses purpose. Whatever first came to mind when you answered this for yourself is at its core a powerful insight into defining and redefining the FUTURE decade. Bring your answer into the light of today and what small piece of it is actionable NOW? Where is this resonating and aligning with a 2019 version of yourself?
Then, based on your success list and your answer to the above question, what is your 2020 vision for your business and for the business of YOU?
Designing a new decade begins as a collection of 3,650 opportunities. 3,650 blank slates of new days ahead in which to pivot and propel yourself forward. Every single one of those days is a window into your legacy. An invitation to be, create, explore, and chip away at this thing we call life. One 24-hour segment at a time.
While you have a decade ahead to work on design improvements, you have the ability to begin manifesting this project of YOU Version 2020 right NOW. Based on exploring the exercises in this post, begin executing your vision. Ask questions. Be present. Let go of 2019 and the past 10 years so that you can embrace the next 10. Position acceptance and self-trust at the forefront of how you lead you. One choice at a time.
Don't get bogged down in the concept of the next 10 years. Instead position clarity and intention into each new day, starting today. Then chase every one of those intentions with an in-the-moment commitment and solution toward living a legendary life!