Four years ago Boris Groysberg of Harvard Business School analysed the performance of over 1,000 star stock analysts. His research showed that star performers often falter when they move to new companies. However, aggregate numbers hid the real truth – unlike their male counterparts, women stars performed just as well.
The different performance was been attributed to two main factors:
- That women create portable, externally (client) facing relationships
- That women consider many aspects when selecting their next job
The portability of their performance is therefore the result of strategic choices made in response to situations faced at work. These constitute a powerful skill set which can be applied in all knowledge-based industries.
Building an external network
"For women in any business, it’s easier to focus outward, where you can define and deliver the services required to succeed, than to navigate the internal affiliations and power structure within a male dominant firm". The decision to take an external focus rests on three main factors: difficulties in forging internal relationships; poor mentorship and support; and a vulnerable positioning the labour market.
- Uneasy internal relationships: At work people are more likely to forge relationships with those most like themselves – for workers in many knowledge industries that means men. An additional risk for women, should they manage to build relationships with male co-workers, is that it will be misconstrued
- Poor mentorship: Many men are reluctant to mentor women because they risk wasting their time, “[Men] tend to stay around longer, so the fruit of your mentoring is around”. Consequently, women lose out on one of the most valuable services a mentor provides – access to a network of relationships
- Vulnerable position in the labour market: In economic contractions women are more likely to be let go than men
To counterbalance these disadvantages, women build strong external relationships. Not only does it enhance their portability, but an appreciation of their skills outside their company translates into an increased internal standing.
Carefully choosing prospective employers
When changing job, women are more likely to weigh up multiple considerations and focus on more than just compensation (unlike men…). Some of the aspects women in the study identified include:
- Receptivity to women: Many female stars moved company because they would get more support in their new organisation – “if you’re being recruited someplace, your new manager has a commitment to you”
- Latitude and flexibility: Generally women look for organizations that will welcome their distinct style and personality. However, while many are urged to promote themselves, “strong, aggressive women are still seen as bitchy and irrational and emotional”
- Managerial support: Management can have a huge impact on how women are treated at work. Women are looking for companies to signal their commitment with supportive managers that create opportunities and female role models
- Objectivity in measurement: Impartial, objective performance measures are viewed as a way of combating politics and favourites. “Women like positions that are transparent … so that their abilities can be validated by objective measures”
| Lessons for employees | Lessons for organisations |
| ›› Think creatively and strategically about the different paths to success – there is more than one route to stardom
›› Make decisions to change jobs based on an awareness of the company’s resources and culture, not for salary alone |
›› Focus on building talent from within and appreciate that there is not one route to success
›› Become a partner in your employees performance and understand how you can add value to them |
A word of caution
While a focus on external relationships helped women build more portable skills, it can hamper in-company progression. To be a successful manager requires a deep understanding of the company culture and a solid set of internal relationships. Most teams led by female analysts were smaller and more specialised than those led by men. Thus the tendency to focus outward may also create obstacles to being part of a team.
The article that we have summarised is available for purchase from Harvard Business Review ($6.50)
Research methodology
Over a 9 year period, Boris Groysberg examined the performance of 1,052 star analysts at 78 investment banks. ‘Stars’ are those ranked by Institutional Investor magazine as being best in industry. To balance his quantitative analysis, 167 hours of interviews were conducted with 86 analysts at 24 banks. The article draws upon these frank and detailed interviews and hard data to shed light on the complexities around the performance and mobility of male and female analysts.
Contact the author
Rebecca Loades - Webmistress, PWA
webmistress [at] pwa-milan.org