When Male Leadership Shies Away from Risk, Women Take Over

Will your company be the same in five years? This is the question researchers from PwC posed last year to 4,701 executives from 105 countries around the world. Almost half responded with a firm – ‘no’. More specifically, four out of ten directors manage companies that have already begun to compete in new sectors, and the same number believes that business will not be sustainable in ten years if they continue on the current path.

These data are a clear signal that five-year plans, something companies could rely on not so long ago, have now become – a joke. And when plans fall through, so does the sense of security among employees. Although studies have shown that employees are willing to acquire new knowledge and develop new skills, the fact is that security, not just in business, is increasingly in question; the security that someone’s job will not be replaced by artificial intelligence, that a startup will not disappear after a hacking attack, or that it is possible to maintain control over one’s life while everything changes at a pace that is hard to follow.

Past Stress Test

These numerous crises, from the pandemic, wars, inflation to climate threats and artificial intelligence, have penetrated daily routines and shifted values. People no longer seek ‘more’, they seek – peace. They seek predictability, clarity, and a sense that they can breathe. That is why companies that manage to maintain ‘psychological safety’ within teams record up to 50 percent lower turnover and almost double the level of innovation.

People simply think better when they are not afraid of making mistakes, and companies that understand this and truly invest in security, whether digital, emotional, or organizational, are worth more than those that offer extravagant bonuses. Okay, bonuses are not to be dismissed, but without a doubt, security has become one of the most valued currencies, and the solution lies with leaders who have already passed the stress test of uncertainty – women.

According to research by S&P Global, publicly traded companies with female executives now outperform the market in the long term (in terms of shareholder returns). In the two years following their appointment to top positions, companies led by women achieve an average stock price increase of 20 percent. Harvard Business has reported that women during the pandemic were rated better in 18 out of 19 key leadership competencies (initiative, relationship building, motivation, communication, agility, integrity, honesty…), while men were slightly better in technical expertise.

Glass Cliff

Thus, women who have been told since childhood ‘this is not for you’, ‘you are too sensitive’, or ‘you won’t last’, have learned to build security from within, through empathy, perseverance, and setting boundaries, which has proven to be a desirable skill set in unstable times. When talking about security, people often think of systems, protocols, and procedures, but what gives that feeling is always people. For decades, women have shown that they are experts in survival, which is perfectly illustrated by the phenomenon of the ‘glass cliff’. This is defined as the frequent practice in the business world where women are offered higher positions at times when they become riskier or in crisis (which diminishes the chances of success).

In other words, at a time when male leadership often shies away from risk, women take it on. Although this phenomenon reveals inequality, it has shown that successful female leaders have developed the skill of resilience over time; they have learned to lead through the unknown with empathy, openness, willingness to collaborate, and – providing security. Brands already know this, which is why today they do not sell products, but rather a sense of control and trust, and the same logic applies to leadership: those who succeed in providing their people with a sense of security, whether emotional, digital, or business-related, become the most valuable resource of the company.

Security as the most sought-after stock in the market of life and work will be, among other things, a topic of the panel at the jubilee 15th Women in Business Conference, which will be held on December 4 at the Mozaik Event Center in Zagreb. Experts and leaders, including Spana Management Board member Mihaela Trbojević, Triglav Insurance CEO Vilma Učeta-Duzlevska, and owner of the Karat Goldsmith Rene Krasnić Velicki, will reveal which skills are most needed in times of uncertainty, how to protect oneself in a rapidly changing world, and what the phenomenon of the glass cliff has taught us.

As part of the conference, the presentation of the Lider’s list of the 300 most powerful women in business and the awards for the top 10 will also take place. You can secure your place at the conference via the link.