New Study Highlights Impact of Women Leaders Throughout Companies

As women have been promoted to top-level positions, positive consequences including more profitable companies and better customer experiences have been noted. A new study examined in detail the company-wide effects of women being hired to c-suite positions. The group identified several key trends, including firms becoming less risk averse and shifting their direction and mission. Even a single female executive was found to lead to ripple effects throughout the company.

“Despite numerous studies linking greater representation of women in the C-suite to positive firm outcomes, the mechanisms driving those changes have largely remained unclear. Our study begins to explore those mechanisms, finding that when women are appointed to the C-suite, they catalyze fundamental shifts in the top management team’s risk tolerance, openness to change, and focus on M&As versus R&D.” Read more here.

(Source: Post et al., 4/6/21, Harvard Business Review)