WOMEN IN FAMILY BUSINESS27th October 2016

TODAY’S AGENDA10.00am Welcome word10.05am Professor Maura McAdam10.35am Keynote by Ms Vicki O’Toole11.15am Refreshment Break11.30am Interactive workshop1.00pm Finish and lunch

WELCOME BY

DR. ERIC CLINTON

PROFESSOR MAURA MCADAM

WOMEN IN FAMILY BUSINESS

Professor Maura McAdamDirector of Entrepreneurship

27th October 2016

OUTLINE

Gender Fundamentals

Business Case

Research

Call for Action: Gender Awareness

SEX refers to biological differences

GENDER: describes the characteristics that society refers to as masculine or feminine

GENDER SCHEMA: our intuitivehypotheses about the behaviors, traits, and preferences of men and women and the roles they should take up

GENDER FUNDAMENTALS

GENDER ROLES

Who cleans the house?

Who provides for the family?

Who makes the first move in a relationship?

Who takes longer to get ready?

UNCONSCIOUS GENDER BIASES Unequal gender distribution of men and women in certain

roles creates implicit associations Eagly (1987); Glick & Fiske (1996)

With domains…Work = male; Family = femaleScience = male; Arts = female

That generalize to traits…Male = independent, competentFemale = cooperative, warm

GENDER MATTERS IN THE FAMILY BUSINESS

Role expectations prevalent in the domestic domain often follow women into the family business (Salganicoff, 1990; Cole, 1997; Hamilton, 2006)

These role expectations can ‘leak out’ into how the business is run, and jobs are assigned (PWC, 2016)

Deep-seated cultural assumptions about inheritance and the ‘male line’, which are still prevalent in many economies (PWC, 2016)

GENDER ROLES IN FAMILY BUSINESS Unpaid contributions of women not only as domestic

labourers but also as invisible, unpaid business partners

The Chief Emotional Officer (the other CEO)

The “invisible” heiresses

The roles undertaken may be subtle and lack formality - nonetheless, important and fundamental to the running of the family firm (Jimenez, 2009).

75% of all Irish firms are family owned.

Only 15-18% of established entrepreneurs in Ireland are women.

14% of Irish businesses have a

women CEO or head of operations.

19% of Ireland’s senior roles are

occupied by women, placing

Ireland in the bottom ten of a

global poll.

THE BUSINESS CASE

BOTTOM LINE RETURNS

European listed companies with more women in their management teams had 17% higher stock price growth between 2005 and 2007, and their average operating profit was almost double their industry average. -McKinsey & Company

Companies with at least one woman on the board outperformed those with no women on the board in terms of share price performance, higher return on equity and better average growth. (2012) -Credit Suisse Research Institute

Female managers eclipse their male counterparts at setting basic expectations for their employees, building relationships with their subordinates, encouraging a positive team environment, and providing employees with opportunities to develop within their careers. -Gallop Business Journal

DIVERSE CULTURES IMPROVE BUSINESS OUTCOMESINNOVATION: Inclusive cultures = greater innovation, creativity and bottom line results.

SMARTER TEAMS: Heterogeneous groups get better results than homogeneous groups because the resulting tension or discomfort leads to more careful processing of information.

MARKET COMPETITIVENESS: A diverse culture that mirrors its markets tends to do better than its homogeneous competitors.

TALENT WARS: An organization with a reputation for being a good place to work for diverse groups has an easier time recruiting talent. To obtain top skills and talent companies must attract and retain women as well as men.

THE RESEARCH

THE RESEARCH

“If used astutely, their (women’s) observations, intuition, and emotional capital can make a difference between the success and failure of a family firm” (Sharma, p.14, 2004).

According to Wilson et al., (2013), family firms less likely to fail than big companies, because they are usually made up of a well-functioning and diverse board of directors who are able to advise effectively.

Bart and McQueen in their 2013 study concluded that female-influenced companies were more successful than male-dominated ones – and having just one female director could cut the risk of bankruptcy by 20%.

A CALL FOR ACTION: BE GENDER AWARE –BE CONSCIOUS

The action steps to be more inclusive are within all of our reach:

Create a climate of meritocracy

Be intentional about looking for unconscious bias

Successor Selection/Talent management – skills based as opposed to gender based

Role models – to bolster aspirations and bust gender stereotypes

MS. VICKI O’TOOLE

REFRESHMENT BREAK

WORKSHOP

TOPICS Being seen as the credible/legitimate

successor/leader Balancing family and work demands Successor Selection- selecting the right

person for the job Developing your leadership style

CLOSING REMARKS

SO WHAT’S NEXT?

Leadership Development – Identity

Work

WHAT'S IN THE BAG?