Celebrating IWD: on why women need more leadership role models
That diversity increases innovation and competitiveness for business is well-understood, but efforts to embrace it may still only be window-dressing in the case of the securitisation market. In the first article in our series celebrating International Women’s Day, Tamara Box, managing partner EME and head of structured finance at Reed Smith, outlines her views on why women need more role models in leadership positions. She also provides three tips for women who are seeking to move into leadership roles.
Q: How would you describe the picture for women in top-level roles within the securitisation market?
A: The financial services sector has not been on the leading edge of gender balance, but it is making an attempt now to create teams that look more like the population, by including more women, people of colour and individuals who identify as LGBTQ. Clients have demanded this diversity.
However, many of those same clients have remarked that this may be only window-dressing, as the leadership roles are rarely held by diverse professionals. There have been strides made in increasing the numbers of women on boards and in C-Suite positions, but the board roles are almost always non-executive, and the C-Suite positions are generally HR or marketing - areas that have stereotypically been seen as ‘women’s’ jobs.
In 2019, women earned 48% of the MBA degrees awarded in the US, according to the National Center for Education Statistics. Women have been earning more university degrees than men for 40 years; yet women are still severely underrepresented in leadership roles, including a paltry 8% of Fortune 500 ceo slots held by women. The problem is not a lack of qualification; it is a lack of recognition.
Q: Why is there a lack of women in top-level positions in this sector?
A: There is a history of ultra-masculine culture in the sector; one that rewards arrogance and braggadocio - behaviours that are counter-productive for women. In addition, the myth that ‘busy-ness equals importance’ means that men often boast about being so overwhelmed that they have to pull an all-nighter.
I love what I do, but if I found myself needing to pull an all-nighter, that would mean that I didn’t allocate my time or my team very well. It should mean the same thing for men.
Yet the old biases persist - the assumption, for example, that a woman who has a family cannot be committed to her job. What, men don’t have families, too?
The problem becomes acute when women realise that there are few leadership role models that look like them, making them more likely to walk away than to try to fight the system. Their retreat shrinks the pipeline even further and makes it more difficult for other women to envision a rewarding career for themselves in this sector.
Q: Have you seen a change in terms of diversity within this sector over the years?
A: Diversity used to be defined only in terms of gender, but now we know that diversity of all kinds - ethnic diversity, LGBTQ, disability, neurodiversity and even social mobility - will increase innovation and competitiveness for business. Our clients across the globe have gone hunting for diverse talent, starting with entry-level positions straight from university and all the way up the ladder.
While this is may be a harbinger of things to come in leadership, the progress has been way too slow. How many years have we been working on gender balance and we are nowhere near the finish line on that one? How long is it going to take for us to balance our teams - and not to mention our leadership - in other areas?
Q: How can the structured finance space be made more attractive to women?
A: We need more role models – you can’t be what you can’t see. Clearly women have the talent, the skills, the education and the expertise to be in leadership positions; the industry just needs to recognise that and put them there.
When I started Women in Structured Finance all those years ago, it was with the goal of getting women talking to each other. We all felt it was important for young women to have access to senior female leaders and be inspired to want to be a part of this industry. The culture of the ‘old boys’ network’ - including the bars and sports events - was not the one that would work for us, so we brought women together for events that were more relaxed and open; events that allowed us to get to know each other in a more authentic way.
There weren’t many women’s organisations back then and certainly not in this sector, but today this sort of bonding and mentoring occurs more regularly. I’m encouraged by that, because women need to support each other if we are to make inroads in gender balance.
Q: Which changes would you like to see, in order for women to excel in the industry?
A: I can’t stress this enough: women need more role models in leadership. The women are out there; they are in your organisations, in your competitors’ organisations and in organisations in other industries. Put them in those key positions where they can have the most influence on your future - where you can actually benefit from the diverse ideas and innovations that they stimulate.
In leadership roles, they will also be a daily reminder to all the other women in your organisation that you do, in fact, respect their skills and abilities and that you do want women in leadership. Show; don’t say.
Quit talking about gender balance and diversity and take the necessary actions to make it happen. Role models are the roadmap for success.
Q: What is the future for women who aspire to lead within the structured finance space?
A: We work in an exciting industry; one that is constantly seeking to develop new products and grow into new markets. Diversity-fuelled innovation will accelerate this process and create more opportunities for women, if the current leadership is progressive enough to see that.
Reports indicate that as men with daughters are rising to the top jobs in finance and banking, their priorities and understanding of gender may be evolving, as a result of living with educated, capable women. It’s a tiny ray of light, but it is something.
I don’t mean to sound pessimistic; in fact, I’m very optimistic about the future of the industry and the role that women will play in it. It won’t happen overnight, but I still believe that women will someday be considered equal to their male co-workers.
But attitudes need to change - not only in men, but in women too. We have to quit apologising for not being like men and tout the effectiveness of our own techniques and methodologies.
According to a McKinsey study, women apply five of the nine most effective leadership behaviours more frequently than men and thus contribute to stronger organisational performance. Why do too many of us think that men are better at leadership, when in fact women are?
Q: What advice would you give to women who want to move into leadership roles?
A: Women have to be aware of the ‘double bind’: that a woman can be considered likable or capable, but not both. While that may seem self-defeating, there are some ways to work within this bias.
First, be yourself. Authenticity is a buzzword right now, but it is critically important for women to be women, with all the traits and attributes that are natural for them.
Trying to hide your feelings or change your behaviour to match that of men will only make people think you are a fraud when you are unmasked (and believe me, you will be). Fraud is not a desirable leadership trait.
Second, be direct about what you want and clear-eyed about what you have to do to get it. Try to expand your expertise and experience by taking lateral opportunities that may help you learn different areas of the business. Your goal is not to get stuck in one field where you are typecast as someone with only one skill.
Third, seek out a sponsor. Find someone with influence, who can mentor you and then speak up for you when appropriate.
Very few men rise to high-level positions without sponsorship; why should you think you don’t need this same kind of help? The sponsor can also help you overcome the negative effect of the double bind, as the assessment of a current leader may be considered more reliable than the limited experience your colleagues may have had with you.