Lack of women in leadership ‘hampering performance’
WITH divorce rates as they are, women need to prioritise and celebrate their independence, particularly when it comes to their finances, because surrendering your well-being to your partner is both irresponsible and unfair. This is the view of Elize Botha, the managing director of Old Mutual Unit Trusts.
In the #Metoo era, women have become more outspoken about their needs and wants, but Hollywood has indoctrinated us thoroughly to expect men to take charge: that the man must pay, or that a modern-day knight will rescue us in a sports car. As a result, many women don’t take charge of their lives and expect to be saved. It’s the Cinderella Complex, first described in 1971 at the height of the second wave of feminism, but still deeply ingrained. It’s also hugely destructive.
Botha believes women need to start taking better care of themselves: “It’s unfair to expect that of a man – it’s about a partnership. We should not wait for a man. You’re not someone’s better half – you’re a whole person.”
Botha entered the financial services sector soon after completing her LLB. “I was passionate about being a lawyer, but when I started working at a law clinic, I realised I didn’t want to do it for the rest of my life,” Botha says.
Instead, she started working in operations at a financial company, by helping to load policy documents and running the payroll. Six years later, she had moved up to head the retail operations department. “This happened merely by chance, as I needed something to pay the bills – and I realised LA Law was not going to be a fixture in my future.”
The discipline and analytical thinking she gained from her legal studies proved to be invaluable to her new career path, but as a newcomer to the industry, she had to do much of her training on the job.
“Law teaches you a certain way of thinking that’s very beneficial to finance. I started out in admin, where I realised I was passionate about clients. They’re not always clear about products, so I wanted to make sure we spoke to them in a different way.”
Twenty-odd years later, Botha has directed retail and institutional distribution teams at some of the country’s biggest financial institutions. She’s passionate about making investing more accessible to all South Africans, particularly women, and is an advocate of female empowerment and supporting women in business.
She’s furthered her leadership studies in France at Insead, had international exposure to the financial sectors in Europe and the UK, worked locally for Alexander Forbes, Momentum and Ashburton, and now heads Old Mutual’s
Unit Trust division, where she oversees the financial, operational, distribution and regulatory aspects of the business.
In her youth, Botha dreamt of becoming a teacher. Today, she’s made it her mission to unpack the abstruse financial sector for the layperson.
“My job, where possible, is to DESPITE research confirming the positive correlation between the presence of women in corporate leadership and company performance, women remain grossly underrepresented at the executive level of corporate South Africa. Thirty-one percent of South African companies don’t have any female representation in senior leadership roles, while female directorships fell from 21% in 2015 to 19% (85% nonexecutive) in 2017.
Elize Botha, the managing director of Old Mutual Unit Trusts, says the lack of women in leadership is hampering economic performance.
“By increasing the number of women in senior leadership roles in the private sector, especially in Jse-listed companies, the potential exists to drive better performance for South African investors in the local equity market, which will, in turn, drive positive growth for the South African economy as a whole,” Botha says.
Studies show substantial
The moment there is volatility in the market, people want to switch, which causes real value destruction. You need to be in it for the long term. Markets will fluctuate. If you continue to chase the highest asset class or fund, you will destroy the value.
educate. The industry needs to admit that ordinary people don’t understand the jargon. It’s up to us to make it more accessible and to transform. It’s essential for us as a country. If you don’t transform, you resort to group think. Statistics show you can run a better business if you have more women in leadership.”
Botha, a keen runner, believes in going the distance in all things. evidence that gender diversity at senior management level enhances company performance. Referring to a 2016 report by the Peterson Institute for International Economics, “Is gender diversity profitable?”,
Botha says that companies with at least 30% women in C-suite positions – a term denoting the highest-level executives in senior management – demonstrated a 15% increase in profitability, compared with companies with no gender diversity.
“The suggestion is not that women should lead alone, but increased representation would ensure more diverse views, which is a proven performance enhancer.
“South Africa has prioritised cultural diversity, which is a welcome move; gender diversity is as important in the workplace, as it exposes men and women to each other’s unique and complementary perspectives, which is a proven recipe for success,” Botha says.
“Diversity in an executive team is an indicator of good management, because diversity drives innovation When it comes to investing, it’s critical, because you need to know how to behave when markets don’t. She warns against listening to the noise on the sidelines, because “things will happen: Donald Trump will say something, the lira will tank, markets will lose value, but things usually eventually recover”.
The message is simple: don’t panic. “The moment there is volatility in the market, people and creativity in all aspects and types of businesses. In a time of rapid technological innovation and social change, it makes sense that a lack of diversity of opinions and perspectives will not deliver the best possible business results.”
BROADER IMPLICATIONS
The lack of gender transformation has implications far broader than just the companies themselves, but extends to their shareholders and investors, Botha says.
“Diminished performance of listed companies as a result of the lack of transformation, therefore, has consequences for ordinary South Africans who look to local growth assets to drive the performance they need in order to reach their longterm investment goals and ensure a comfortable retirement.”
However, Botha warns boards and C-suite management against chasing gender targets without a meaningful desire to effect longterm transformation and to create companies that foster female talent. want to switch, which causes real value destruction. You need to be in it for the long term. Markets will fluctuate. If you continue to chase the highest asset class or fund, you will destroy the value.”
And you don’t need loads of money to invest: for a few hundred rand, which is forgoing one dinner out, you can invest in your future self. Don’t wait, though – start as soon as you can, she says,
“It needs to be about more than just having a few strategically placed women at the very top. Rather, corporate South Africa needs to create a strong pipeline of women managers before investors will begin to reap the financial benefits of greater gender diversity.”
Botha believes that South African investors have an opportunity to direct greater capital to businesses that make a positive impact concerning gender diversity. “Investors need to take a greater interest in the gender transformation displayed by the companies they choose to invest in, to ultimately drive other companies to follow suit,” she says.
The issue of gender disparity, however, runs far deeper than this, and Botha acknowledges that there needs to be a societal shift to bridge the gender gap in South Africa effectively.
“There is no quick-fix to remedy gender inequality in the workplace. We, as a society, need to work towards challenging gender bias daily to drive better growth,” she says. cautioning against chasing fads.
“The moment something new comes about, such as bitcoin, everyone wants to buy it. But technology, albeit brilliant, isn’t always a great investment. Look for a well-diversified fund. Avoid quickrich schemes. Only by relentlessly pursuing your goals, will you achieve them. Stick to it. And don’t continuously run in all directions.”
georgina.crouth@inl.co.za