Once again I'm emphasising the crucial role of leaders in personally connecting with their teams so they can hear what they need to hear to grasp the realities of their organisational culture, from the perspective of women and other under-represented and marginalised people.
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Workplace diversity, equity and inclusion are not just buzzwords but critical business imperatives. Advice given 5 years ago by Jeff Immelt, former CEO of General Electric, has stuck with me and resonates more profoundly than ever: leaders need to engage more directly with their teams and understand the real-world implications of their organisational cultures.
Too many business leaders have become out of touch with how they are perceived by real people.
C-suite executives are obviously occupied with myriad responsibilities, and the persistence of scandals related to sexual misconduct, assault and gender discrimination, as seen in cases like Uber, Fox News, and the Australian Federal Parliament, raises crucial questions. Are leaders genuinely aware of the organisational culture they're nurturing, or are they inadvertently overlooking systemic issues?
The implications for the latter are dire, particularly in my home country of Australia, where employers now have a positive duty to create and sustain respectful workplaces that are free from sexual harassment and discrimination.
Peter Drucker famously stated, "Culture eats strategy for breakfast," emphasising the importance of a healthy organisational culture. However, it's not just any culture that matters, but one that treats all employees, especially women and other people from marginalised and underrepresented communities, with respect. The distance between leaders and the everyday experiences of their employees contributes to a disconnect in understanding and addressing these challenges.
For instance, Catherine Fox's book "Stop Fixing Women" highlights how even well-intentioned leaders can be surprised by the extent of gender inequality within their organisations. This gap in perception and reality is highlighted when I run diagnostics on workplace equity and inclusion. For example, my current research project into the state of workplace gender equality in the sporting sector highlighted some concerning perception gaps, including the responses, by role, to these statements:
Gender Inequality Exists in the Workplace
22% of CEOs agreed
50% of Executives agreed
64% of non-managers agreed
Women Are Respected in the Workplace
70% of CEOs agreed
73% of Executives agreed
58% of non-managers agreed
The Organisation is Taking Sufficient Action to Address Gender Inequality
70% of CEOs agreed
32% of Executives agreed
32% of non-managers agreed
Your perception of what's happening in an organisation depends on where you stand. However, CEOs and other organisational leaders must consider the difference in perception of the culture, by level, as an indicator to take action to close both the perception and communication gaps. This means "spending more time in factories and less time in Davos" according to Immelt.
Leaders must actively engage with and understand women's experiences in their organisations to address this gap. They need to look beyond standard HR metrics and grasp the nuances of gender dynamics at every level. This involves asking tough, introspective questions:
I won't discuss the business case for workplace gender equity, share the statistics on the global gender parity gap, and explain the significant potential revenue increases tied to gender equity. Leaders should be aware of these data points and use them to drive high organisational performance. Those leaders who fail to educate themselves about these fronts risk moral and ethical repercussions and substantial business losses.
In 2024, the call to action for equitable and inclusive leadership is more urgent than ever. It's way past time for leaders to step up, ask these critical questions, and drive meaningful change towards gender equity in the workplace.