IMA India, the publisher of CFO Connect, runs membership-based programmes for senior executives. Currently, there are more than 1500 unique individuals who are members of the peer groups for CEOs, CFOs, CIOs, HR Directors, and CMOs. The members are invited to attend closed-door meetings on topics ranging from the economy to the political environment, to functional issues and to leadership. Apart from the fact that the attendees are some of the finest minds in business, the other common feature is that most of them are males. The gender gap is perhaps a little less in the HR Directors’ Forum, but is the widest in the CFO Forum. Constituting more than 850 unique members, only 26 are women. This works out to just about 3 per cent. Compare this with the share of women in the total population, which is around half! The mystery of the missing women at the top is what this article seeks to unravel.

Not in India alone

The gender imbalance though more acute, is not unique to India. Even though women now constitute roughly half the total workforce in the USA, women accounted for only 9 per cent of CFO positions among Fortune 500 companies in 2010. And this has not changed much over the past decade. In 2002, the figure stood at around 7 per cent. During this period, there was a lot of change and movement, but the numbers have hardly budged. Bain, a consultancy firm, calls this phenomenon ‘the great disappearance act’ and it came out with a report by the same name in 2010.

Why this scarcity?

This increase in enrolment is reflecting in a higher proportion of women at the entry and junior management levels, but it is too early to make a dent in the overall gender inequality at the top. Also, even now, the share of women at these levels as well, is nowhere near the halfway mark; which, given their share in population, one should expect.

Life choices
Most CFOs we interviewed said that women put family and the career of their husbands ahead of their own. This usually implies that when faced with a conflict, they often sacrifice their own career. Further, a typical life-cycle of a woman has several humps – marriage, birth of children, periods of important education milestones of their children, and even ageing parents. During these periods of change, women tend to be pulled in different directions, and when they are not able to cope, they quit the race or settle for less demanding careers.

Many women want to build their career after taking a break for a few years, but they find that they cannot pick up the threads from where they left them. The Bain-HBR.org research says, “The survey clearly shows that the time taken out for motherhood — and the resulting lost experience — is still a root cause of inequality in promotions, especially in ‘up-or-out’ firms. Over time, working mothers disappear from higher management ranks in almost every industry. The result is: Women constitute 50 per cent of America's workforce, but in 2009 represented only 3 per cent of Fortune 500 CEOs.” In the US, many women executives start their own businesses rather than fight the odds against them and rebuild their careers in the corporate sector. In India, they may settle for less ambitious roles. Difficult position The role of the CFO is tough and demanding. Ms Narsimhan says deadlines keep hitting you consistently. In other functions, there are events and projects that require a great deal of effort, but in finance there are weekly, monthly, quarterly, and annual deadlines, which are non-negotiable. Neeta Revankar, CFO, Sasken adds that a CFO’s role is large and is getting larger. A CFO is expected to contribute to strategy, business growth, risk management in addition to influencing people and flawless execution. The range of functions that roll up to the CFO’s role has also expanded to include accounting, treasury, risk management, audit, investor relations and even information technology. The role tends to be even more difficult in large, diversified, and complex organisations. Ms Revankar, in addition to heading finance, also heads IT and human resources in her organisation.		The pool of female talent in the finance function is not deep to start with. In top business schools, women account for about 30 per cent of the intake and their share of those with finance specialisation is much smaller Kimsukha Narsimhan CFO, Pepsico India

This large and expanding role means long working hours, and often, travel is inevitable, which, given the constraints on their time, many women are not able to cope with.

To get to the CFO’s level, typically a person may need to do stints in multiple related functions at different times in their career, including treasury, tax, plant operations, sales operations, supply chain and also headquarter roles, such as financial planning and analysis. This may require location change, which many women are not able to do, says Ms Narsimhan. Therefore, there are very successful women in finance, but in specialist functions that require skills, and which do not require a lot of locational disruption.

For the same reason, marketing, and HR (though not necessarily in manufacturing companies), which are largely headquarter functions, have more women in leadership positions.

Glass ceiling exists (only cannot be seen)
Most organisations have written or unwritten policies on equal opportunities and biases continue to fester. Ms Revankar says that managers are reluctant to hire women because of the stereotypes. They continue to believe that women have other priorities and may not be able to give 100 per cent to the job. In a competitive world where they themselves are judged on their output, they consider hiring women a risky proposition, even though they may not have any obvious bias against women. They are especially reluctant to hire women who are at specific stages of their lives, such as marriage, or impending child-birth. Ms Revankar believes this problem is more acute at the mid-management levels. She feels that we can change this mindset by relentlessly presenting the longer term business benefits that arise from diversity, facts about women employees’ performance and attrition rates, rather than through rhetorical arguments. She is quick to point out that she herself has not encountered any career threatening biases.

Merely having women-friendly policies, such as flexi-hours does not change things much. Some managers do not want to recruit people (both men and women) who need or seek flexi-hours. In this respect, multinational organisations are ahead of their local peers, acknowledges Ms Revankar. Ms Padalkar, who has worked with Colgate Palmolive, Charu Mital, Director Finance and Admin, Korn/Ferry International who has also worked with Amex and Ms Narsimhan, who has also worked with Unilever acknowledge that these companies provide a good environment for women executives. Ms Padalkar agrees that many Indian organisations are not clued-in about the gender issue. Things are changing, but only slowly. As employers conduct exit interviews of capable women leaving organisations there is increasing awareness of the cost of not having a woman-friendly environment (not just policies). Unfortunately, however, this is not happening fast enough.

The Bain-HBR.org survey findings suggest that globally this issue has not been adequately addressed. Nearly 80 per cent of women and men surveyed said that they were convinced of the benefits of gender parity at all levels. But only about 20 per cent believe their companies actually put meaningful resources behind it. Almost three-quarters of respondents said that their companies launched initiatives like flexi work programmes and mentorships, but fewer than 25 per cent felt they were effective.

Nearly 60 per cent of survey respondents say they are not solicited for their opinions on gender parity by their companies. The dismal metrics get worse: Less than 20 per cent report that their companies effectively utilise gender parity metrics to track progress. Only 14 per cent say they had effective gender parity training or workshops. Just 8 per cent believe their firms effectively tied incentives and compensation to gender parity. Unless, organisations steer and align the whole organisation behind this imperative, genuine progress will be slow.

Inability to network
Most CFOs we spoke to acknowledged that women are not good at networking. They typically do not engage in after-office drinks with colleagues or to the designated smoking zones where you meet not just peers but also juniors, preferring instead to finish work and go home. This prevents the development of their informal network in the organisation that helps in understanding and negotiating the complexities of a modern corporation.

There is nothing wrong in doing something that I believe in, whether it is meditation, social work, or my career Rupa Vora Group Director, CFO Fund Initiatives, IDFC		Why does it matter? In general, a deeper talent pool is always better than a shallower one. Greater choice increases the likelihood of a better fit. Further, by making opportunities equal at the top, companies will encourage women at all the levels of the organisation. This will increase the availability of talent at all levels. The Bain- HBR study makes the point that “companies that fail to retain and promote women to top leadership positions experience a significant drain on resources and talent. They must bring in new employees to balance the outflow of women, and they must reach deeper into the remaining ranks to fill management positions”. Though India has an abundant labour pool, shortages exist for specific skills and for leadership talent. By bringing more women into the leadership pipeline will alleviate this scarcity.

Further, women also bring certain skills that are specific to their gender. They tend to be more intuitive and empathetic, says Rupa Vora, Group Director, CFO Fund Initiatives, IDFC. Charu Mital, CFO of KornFerry International, believes that women are high on integrity, focused on controls, generally have a fair attitude, practise optimal communication skills, are active listeners, are good at empowering people, approachable, and compassionate with their employees. Women are also good at multi-tasking which is a good skill to have in the current work environment where the scope of all business roles, especially at the top is broadening. Ms Vora believes that some part of the origin of this differentiation is biological. Whatever the root cause – nature or nurture - if there are behavioural differences between genders (real or perceived), it is in organisations’ interests to leverage them for their benefit.		Women are high on integrity, focused on controls, generally have a fair attitude, and practise optimal communication skills Charu Mital CFO of KornFerry International

There may also be finance role specific benefits of having a woman CFO. A study conducted on S&P 1500 companies spanning 10 years (by Rensselaer Polytechnic Institute), found that firms with women CFOs scored 11 per cent lower bank-loan prices than those with male finance heads. They also won loans with longer maturity and were less frequently asked to provide collateral. This, the study authors conclude, is because banks see women as being less risk averse, using more conservative accounting policies and issuing debt less frequently. Another research had concluded that the stock markets react more favourably to both acquisition announcements and secondary equity offerings made by companies with female CFOs.

There is no doubt, there are equally compelling benefits of having male CFOs, that may spring from the way they perceive their roles. The purpose of these studies is not to make a case for preferentially hiring women CFOs, but to point out that other things being equal, there may be some unexpected benefits of doing it.

Winds of change?

At the outset, perhaps it should be mentioned that things have been changing, though perhaps not fast enough. Today, many more women are in mid-management levels who are serious about their careers. This will eventually lead to more women reaching the top, inspiring more women thus, starting a virtuous cycle. Ms Narsimhan recalls that there were far fewer women in finance when she began her career two decades ago. Increasing numbers instill greater comfort among women employees. However, that women will break through the glass ceiling is by no means guaranteed. As noted earlier, among Fortune 500 companies, the share of women CFOs has been stuck at under 10 per cent for a decade, even though the share of women in the workforce and higher education continues to rise.

Today, there are also more favourable conditions for women in many organisations. Policies on flexible working hours and working from home continue to be embraced by more and more organisations. Technological change has made it possible for women (and men too) to enjoy this flexibility. As the transactional part of finance is increasingly outsourced and automated, the need to be physically present in the organisation all the time is also diminishing.

Further, the attitude of male colleagues is also changing. Ms Narsimhan says that many men, who are passing through a difficult phase, also want flexibility of working hours and they understand better why women seem to prefer it and that it does not imply that their commitment or contribution is lesser. This said much more ground needs to be covered in the coming years to make diversity in the ‘C’ suite a reality. Some of these imperatives are discussed in the rest of this article.

What should women do?

Part of the reason for success is always systemic, but the other part, often bigger, is personal. Though it is a cliché, but there is some truth in the saying that winners do not always do different things, but do things differently. The experiences of women CFOs do shed some light on the issue. So do the policies and practices in some leading companies which are better at diversity at the top.

Change begins within
Ms Padalkar says that first women should be clear about their priorities. Many of them are conditioned to de-prioritise their careers to accommodate the expectations of their families when they get married. She feels that it need not be and if they make it clear that their careers are non-negotiable, many more of them will reach the top. This is not to say that conflicts - both real and imaginary - will not arise, but the solution will need to be sought by both the partners.

Rupa Vora, who is a committed member of ‘Art of Living Foundation’ draws inspiration from 10 two-letter words – ‘if it is to be, it is up to me’. She believes that with resolve it is possible to overcome obstacles, challenging though they are. She feels that women should get over the feelings of guilt if they are not able to spend a lot of time on the home front. There is nothing wrong in doing something that I believe in, whether it is meditation, social work, or my career, she says.

It is not just the material support system, but also emotional that is needed. Ms Revankar acknowledges that women often neglect this, both because it requires investment of time and also because they do not realise the need for it. Having friends, family, colleagues, coaches and mentors can go a long way in sorting out vexing personal and professional issues and dilemmas.

Find a mentor
Ms Vora believes that the mentors that she found played a big role in shaping her as a professional. “I was fortunate to have people like Dr Kelkar and Luis Miranda as my mentors. I learned a lot from their outof- the-box thinking and looking for an opportunity in every problem. They challenged me and helped me develop as a leader,” she says. Ms Revankar acknowledges that her seniors had spotted her potential and they provided her with the necessary opportunities to grow. She says women need such advocacy and support. If it is not forthcoming, women should actively seek it. Ms Mital agrees that mentorship programmes will be useful, but she has not seen a model mentorship programme so far. Given that she has worked at some of the finest companies, it appears that mentorship has still not evolved as an HR tool, at least in India.

Build a good team
A good team is a force multiplier and when working optimally, it helps everyone become more productive and deliver more in the same or less time. Given that time is often at a premium for working women, a good team is not a luxury but a necessity. Ms Vora says that she has always had smart people working for her, and this has helped all of them to work smart rather than hard.

The large and expanding role means long working hours, and often, travel is inevitable, which, given the constraints on their time, many women are not able to cope with Neeta Revankar CFO, Sasken

Actively manage your career There were a couple of times in her career when Ms Narsimhan was asked to shift to another location, when she could not. “I talked about it to my managers and on both occasions, I managed to find opportunities that did not require a change of location at that time, and which also helped me in career progression. While, she may have been luckier than some others, if she had not taken the initiative to find a solution, her career may have taken an altogether different trajectory. Many companies now offer flexibility to partly or entirely work from home or from remote locations, and when needed women employees should avail them. In the long run, it is better to get over the humps that inevitably come in most people’s lives without having to leave work, or to severely compromise on personal commitments. This may result in a reduction in salary for a period of time, which may in the long run not be a very high price to pay. However, as one goes up the corporate ladder, it becomes increasingly difficult to seek flexibility. Making contribution to strategy and leading teams requires greater personal presence, says Ms Mital.

Ms Revankar believes that it is in the woman executive’s interest not to change jobs too frequently. Every job change necessitates proving oneself all over again, building a new network and learning the processes and culture of a new company. All this takes time, which can be better spent on delivering value at the current organisation. Sometimes being in a minority can be advantageous, as it is easier to be noticed. Ms Revankar started her career at Indal and was the only woman in the finance team and it helped her get noticed, she says. Take a longer term view of your career A career for an average professional is about 35-40 years’ long, says Ms Narsimhan. “It is not the end of the world, if there is a period of deceleration. It is alright for a woman to go on a long leave, even as long as 10 years, and then come back,” she adds. Women who return after a long break compare their trajectory to that of their other colleagues who did not, and feel dejected. “What is wrong if you hit the post of CFO at 45, rather than at 35, as some of your friends did,” asks Ms Narsimhan? What is important is that you fulfil your professional potential, she adds.		Many women make the mistake of thinking that their travails are unique. In reality, they can learn a lot from those who have succeeded despite the same odds Vibha Padalkar CFO of HDFC Life

What should corporates do?

Have women-friendly policies
Flexible jobs can really act as a retention magnet. Ms Padalkar says that if companies can offer flexibility to women employees to tide over difficult periods, then they will not jump ship over a moderately better salary offer. This itself makes a strong case for flexible policies. She says that the toolkit for policies includes the flexibility to work part-time from home and flexible hours (arriving a little later or leaving a little earlier). The Bain-HBR. org report also argues for flexible policies, “When done right, flex jobs-defined as jobs that allow employees to contribute their skills outside the standard workweek-offer several benefits. They appeal to burned-out employees who are seeking sustainability. They allow employees, particularly women, to stay engaged and continue to advance during periods when they confront dilemmas such as caring for children or aging parents and managing 60-hour work weeks or extensive travel.”

Further, and even more important, organisations should have policies to shape the career of women who want to rejoin the workforce. Clearly, rejoining after a long gap will have a cost for the employee, but policies and programmes that encourage women to rejoin and also help them become fully productive in the shortest span of time will go a long way in correcting the imbalance. Also, flexibility to allow women (or even men) to work as contractors rather than as a full-time employee for a period of time and re-absorbing them into full-time roles when they are able to commit will help.

Instituting formal mentorship programmes will also help, which unfortunately are not very common. Even when you have corporate-wide initiatives, they will benefit men more, says Ms Revankar. Therefore, she advocates the designing of specific programmes tailored for women.

Beyond policies
Though many organisations have adopted all or some of these policies, very few have ‘mastered the art of carefully designing and implementing effective flexible job models’ according to the authors of the Bain-HBR. org report. Most companies, they contend, fail to appreciate that ‘one size does not fit all’. They advocate employee-specific flexible programmes. Second, they advocate that organisations must give visible evidence that this model works and the management is solidly behind them. When a sufficient number of high performers are so supported, these policies have the desired effect.

In the final analysis, it is the force of the prevailing mindset that acts as the biggest barrier, says Ms Revankar. This cannot be changed by having policies that may be followed in letter, but not in spirit. Therefore, change will be a slow phenomenon, though it will require hard work by those who value diversity. She says that she wants men to lead the diversity effort in her company, and without forcing anyone to take it up, it has happened, which is a hopeful sign.

Women CFOs are also cognizant of their role as role models and champions of diversity in their organisations and even in the larger corporate sector. All of them talk and write about these issues at all available fora. Gradually, by virtue of their examples and also because of their efforts to promote awareness of these issues, change will happen. The rising tide of women workers who are building their careers in a different cultural, corporate, and social milieu and have high aspirations will be ready to take leadership positions over the coming years. This will make the world a little more equal for women. It is in the interest of corporations to accelerate this change.