The better the gender balance, the better the world
IS there a link between diversity and financial performance of business? A recent study published by McKinsey and Company suggests that the answer is yes. Titled “Delivering through Diversity”, the study reaffirmed the “global relevance of the link between diversity – defined as a greater proportion of women and a more mixed ethnic and cultural composition in the leadership of large companies – and company financial outperformance.”
The study examined data from more than 1,000 companies in 12 countries in Africa, the Americas, Asia, Australia and Europe. While the connection between diversity and financial success has been established by a number of previous studies, this one suggests even stronger association between gender diversity, within executive teams, and profitability with the likelihood of achieving higher than average results of up to 21%. This is very significant and can have a huge impact on the overall success of nations.
As we celebrate International Women’s Day today, we have enough evidence to support transforming the narrative for having more women at senior leadership teams from a women or diversity issue to a business success imperative.
Achieving gender diversity at the corporate leadership level is a team sport that requires concerted effort from businesses, policy makers, education institutions and society at large.
Professor Heather McGregor, a personal friend and dean of Edinburgh Business School at Heriot-Watt University, was one of a small group of women led by Dame Helena Morrissey who set up the 30% Club in Britain in 2010. The 30% Club, which now has chapters in 11 countries including Malaysia, aims at having at least 30% women on the boards of public companies, and is committed to supporting a pipeline of female talent in leadership roles.
Why 30%? Professor McGregor, citing research over many years by Roasbeth Kanter and others, says “minorities are able to make a difference, and overturn ‘groupthink’ at somewhere between 25% and 35% of any forum.”
In 1869, Heriot-Watt University became one of the first British universities – and the very first Scottish university – to open its doors to women.
Being true to this tradition of inclusivity and with a firm belief in the power of education to transform lives, Heriot-Watt University established an annual scholarship in Malaysia in 2017 in the name of the 30% Club to support its agenda and enable a young deserving woman to do her executive MBA at our campus in Putrajaya.
Applications, which open shortly, are judged by a panel including representation from the 30% Club Malaysia steering committee.
Two Malaysian women, winners of the 2017 and 2018 awards, are currently studying for their MBA, which takes just over two years and offers teaching at weekends. An MBA is a proven pathway to building successful careers and essential professional networks, and yet most applicants to the programme are men. Our 30% Club scholarship aims to increase both gender equality in business and representation for women at senior levels.
Another initiative we at HeriotWatt University Malaysia have taken to close the gender gap, this time in the increasingly important fields of Science, Technology, Engineering and Mathematics (STEM), is to launch a Women In Science and Engineering (WISE) scholarship.
As an engineer and engineering educator myself, I am a strong advocate for increasing the representation of women in the profession. Engineers conceive, design, implement and operate products and systems that are used by people, and getting the perspective of 50% of the population is essential for creating value-adding systems.
The road to the boardroom often starts at the classroom, and having an environment that supports, encourages and empowers our students, both young women and men, is essential for them to achieve their full potential. That is why Heriot-Watt University Malaysia has adopted an Impact Based Education model where everyone in our community, staff and students alike, is required to develop an Impact Statement outlining their life purpose and how they wish to make the world a better place through their work.
The example of the 30% Club, which has had such a major impact on levels of female representation in the classroom, is a reminder of what can be changed if we set our goals high enough.
As we come together as parents, educators, employers and policy makers to embrace our duty to nurture the talents of our future generations, let us be reminded of this year’s theme for International Women’s Day, #BalanceforBetter – the better the balance, the better the world.
PROF MUSHTAK AL-ATABI Provost and CEO Heriot-Watt University Malaysia