by Linda Zuze (PhD)
When your company is in free fall, or when painful retrenchment discussions are underway, and when productivity is at an all-time low, who would you put in charge? Well, it turns out that women are considered better leaders during complex times. That’s right. Opportunities for promotion actually improve for women when things are going horribly wrong in a business and when the risk of failure is high. This happens far more often than most of us realize (think Carly Fiorina at Hewlett-Packard or Carol Bartz at Yahoo). Researchers have coined the term glass cliff to describe women breaking through a glass ceiling and into senior positions during an organisational crisis.
The pandemic is stretching even the most seasoned of leaders to the limits. Are there differences in how men and women chart a course through a crisis of this magnitude? This question is bound to be debated for many years to come but early indications are that women’s leadership skills stack up better. According to a study reported in the Harvard Business Review, women were rated as more effective leaders than men and the gap in favour of women leaders actually widened during the pandemic. What seems to be driving these favourable ratings is how women leaders build relationships, show empathy, prioritise the welfare and development of employees, and motivate the team to work towards a common goal. Some studies go further to argue that countries that are led by women have responded better to the pandemic compared to countries where men were in positions of leadership.
These results certainly don’t imply that all female leaders display exceptional qualities. Nor am I suggesting that every male leader has failed in his position, but there are increasing signs that when women are tasked with leading during difficult times, they tend to do so in such a way that the organisation is in a better position when the storm eventually passes.
Lioness Data, the research and insights unit of Lionesses of Africa, recently published the results of the South African Women Entrepreneurs Job Creators Survey. This was an online study that took place between November 2020 and April 2021 and involved 913 women entrepreneurs who belong to the South African Lionesses of Africa network. Some interesting findings emerged. Seventy-six percent of respondents had children in their households. We now know that even as the economy has started to re-open in South Africa, women are experiencing a slower recovery than men, while at the same time dealing with additional domestic responsibilities. To cope with COVID-related disruptions, many businesses have been forced to lay off staff or reduce staff wages. Remarkably, 70% of respondents in the job creators survey chose to lead by example. They either reduced or cut their own pay first. Nearly two-thirds found a way to protect and retain jobs during the pandemic.
Over and above protecting jobs, South African businesswomen are optimistic about the future. Almost three-quarters are confident that their businesses will create jobs. They firmly believe that being a business owner comes with a responsibility to create jobs in the broader community. Where local businesses intentionally support other local businesses for the services that they need, the local economy has a chance to grow . Of course, when the number of economically active individuals in an area increases, the demand for local goods and services also goes up, ultimately leading to improvements in standards of living. With unemployment currently at record high levels and over 7 million South Africans without jobs, this is a leadership mindset that really needs to be recognized.
I must add that there is a hidden danger lurking behind placing too much emphasis on phrases like ‘glass ceilings’ and ‘glass cliffs’. Used incorrectly, these expressions could imply that women professionals are too naïve to recognize the risks that come with leading a company through a crisis. Or, worse still, that they are so helpless that they simply don’t have any other path to progress. Nothing could be further from the truth. In fact, many women step into these roles, fully aware of the risks and ready to face down the challenges. If there is one thing that the pandemic has taught us, it’s that crises can unfold unexpectedly, when executives are already at the helm of companies.
It is by no means plain sailing for women in senior positions. Executive ambitions are quickly cut short when women are unable to salvage a sinking ship. Company culture can leave female managers feeling isolated and unsupported. Why women leaders are standing out during the pandemic is mainly because of their steadfast response to the impossible - both, at an organisational and an individual level. It is their relentless ability to fix their gaze on a promising future, despite the current circumstances.
Dr. Linda Zuze is the Research Director at Lioness Data, the research and insights unit of Lionesses of Africa, a 1.3 million-strong community of women entrepreneurs across the African continent. She has over 15 years of experience in policy research. Her studies strengthen links between research, policy, and practice to increase developmental impact. Linda is also involved in programmes to reverse the acute shortage of female researchers across Africa. She has written extensively on topics that address inequalities in education, in the labour market, and access to financial services.