Globally, the ratio of women in senior management roles averages near 28- 30%, compared to approximately 20% a decade ago. There is an apparent growth in the trend albeit at a marginal pace. Let’s understand how we are scoring on this new trend to envision a world where diversity in leadership eventually becomes the norm.

The history of women’s leadership is marked by significant milestones, each one shaping the landscape we see today. Our journey begins with the suffrage movement in the late 19^th and early 20^th centuries. Women's relentless fight for the right to vote saw its first victory in New Zealand in 1893, setting a global precedent. This was more than a political triumph, it symbolised a broader shift in societal attitudes towards women's roles. The impact of World War II was equally transformative. With men away at war, women stepped into workforce roles traditionally held by men, challenging established gender norms and fueling the post-war women’s movement.

As we moved into the 1960s and 70s, the second wave of feminism brought critical issues such as workplace discrimination, reproductive rights, and gender roles to the forefront of public discourse. This period was a turning point, leading to significant legal and social reforms. In more recent decades, we’ve seen corporate initiatives take shape to address gender disparities, exemplifying a growing recognition of the need for diversity and inclusion in the business world. Meanwhile, global women's movements like #MeToo and #BalanceforBetter have kept the spotlight on ongoing challenges, calling for greater gender diversity and equality. Today, as we continue to witness the tireless efforts of advocacy groups and individuals striving for more inclusive representation across various sectors, it’s clear that the journey of women's leadership is an ever-evolving narrative, defined by a series of noteworthy achievements and relentless advocacy.

Needless to say, the journey has not been without challenges, deep-rooted gender biases and systemic barriers that have often hindered women’s progress in leadership.

In the present day, the work landscape is beset with these challenges, to quote a few:

1. Unconscious Bias: stemming from ingrained stereotypes and expectations, it may affect hiring, promotion, and performance evaluation decisions.
2. Work-Life Balance:particularly in caregiving roles, there is a disproportionate impact on women that hinders career advancement. Inadequate family-friendly policies can hinder women’s ability to balance family and career.
3. Lack of Mentorship and Sponsorship: Limited access to mentors and sponsors can impede career progression for women, as mentorship plays a crucial role in professional development.
4. Limited Representation in STEM: Women’s underrepresentation in science, technology, engineering, and mathematics (STEM) fields is a persistent challenge that affects opportunities for leadership roles in these sectors.

The above coupled with resistance to change either due to entrenched cultural norms or a lack of commitment from leadership impedes progress.

Equality in Leadership- Current Status of Gender Equality

While strides have been made, a gender gap persists in many industries and sectors. Fortunately, there is a growing recognition of the need for gender diversity in leadership. Companies and organisations are implementing policies that promote inclusivity, mentorship programmes are fostering the development of aspiring female leaders, and advocacy for equal opportunities is gaining momentum.

Positive Impacts on Organizations

Organisations with better gender diversity have an added economic advantage. Various studies, such as the McKinsey 2020 report “Diversity Wins: How Inclusion Matters”, and the Credit Suisse report “The CS Gender 3000: The Reward for Change”, show that companies with a balanced gender representation at the top perform better financially.

In my personal view, there are a multitude of benefits including enhanced creativity, innovation, and problem-solving. Beyond financial gains, the presence of women in leadership positively influences workplace culture. The varied perspectives and approaches that women bring to the table foster a dynamic and resilient organisational culture. As a result, workplaces become more reflective of the broader society they operate in.

Future Implications - Potential Long-term Benefits

The potential long-term benefits of gender diversity in senior management are multifaceted:

1. Innovation and creativity: Diverse perspectives, a variety of experiences, and viewpoints in senior management can drive the well-rounded development and engineering of new products and solutions.
2. Better decision-making: A mix of perspectives can lead to more thorough evaluations of options and a broader consideration of potential risks and opportunities.
3. Enhanced company reputation: A positive reputation can attract a broader range of talent and appeal to a diverse customer base (especially Gen Z and Gen Alpha who are relatively more woke about D&I matters).
4. Market responsiveness: Diverse leadership can better understand and respond to diverse customer needs. This adaptability is crucial in an ever-changing global business landscape.
5. Talent retention and attraction: Companies that prioritise diversity and inclusion are more likely to be viewed as desirable employers.
6. Compliance and risk mitigation: Having a variety of perspectives can aid in identifying and mitigating potential risks, including those related to reputation and compliance.

We are embarking on a threshold where it will increasingly make sensethat goal sheets and balanced scorecards of top management/boards be re-designed to arithmetically measure the above long term potential benefits. A number of management consultancy firms have already developed models to measure and compare such benefits. Following are certain long hanging measures that organisations can measure as part of strategy and budget achievements:

1. Succession plans: Ensure that succession plans consider and promote gender diversity in leadership pipelines 
2. Employee satisfaction by gender: Measure job satisfaction levels by gender to assess the inclusivity of the workplace culture. 
3. Pay equity: Regularly review and address any gender pay disparities to ensure equitable compensation for all.
4. Recruitment and promotion: Monitor the gender diversity of new hires and ensure fair recruitment practices.

Whilst gender diversity is not about meeting quotas, however we are not far away from a regime where: 

1. Regulators may provide guidance on thresholds of the gender mix to be achieved in recruitment or promotions. 
2. External rating agencies or industry rankings will ascribe higher weights to gender diversity.

There are regions implementing or reinforcing policies promoting gender diversity in leadership, making it not only a strategic choice but also a legal and ethical imperative. The EU has directives promoting gender equality in the workplace, encouraging member states to implement measures; Norwegian law mandates that publicly listed companies have at least 40% of each gender on their boards; Australia has the Workplace Gender Equality Act, which requires certain employers to report on gender equality indicators; the Indian Companies Act of 2013 mandates women directorships in listed companies. 

The landscape of industry rankings is evolving and ESG rating agencies or frameworks may bake in aspects related to diversity and inclusion. For example, ESG rating providers like MSCI, Sustainalytics, and others often include social factors in their assessments, which can encompass labour practices, human rights, and workforce diversity.

In conclusion, the rise of women in leadership roles is a transformative trend with deep historical roots and promising future implications. There are and will be challenges of unconscious bias, stereotyping roles, and many other, that will need to be addressed from time-to-time. And real differentiators for organisations would be on how they are addressing such challenges through effective policy structure and implementation. 

Since the potential future impacts of gender diversity on organizations and societies at large are so disproportionately positive, it only makes sense to keep advocating for gender diversity in leadership and remain committed to addressing challenges. In doing so, we pave the way for a more equitable and prosperous future for all.