the British government dropped Remain leaflets on doorsteps, and people voted the exact opposite. In the US presidential election, it wasn’t enough of a change that Hillary Clinton was the first female nominee; she was also perceived as part of the establishment, as likely to maintain the status quo. Donald Trump’s comments make many of us wince, but during the election campaign, he reached out to those voters who were certainly not living the ‘American dream’, who had not participated in economic or income growth, who felt that no one was listening or cared – and he connected with them.
We have seen the desire for change many times before, of course, but technology makes it much more likely to be fulfilled. We now have an (almost) level playing field in our access to vast amounts of instant information. Anyone with a network and something interesting to say can influence others through social media, without any formal authority. And anything and everything is discoverable, exposing the humanity of leaders. That is no bad thing, but there needs to be consistency in what they say and do, or their authority is undermined, potentially catastrophically. We keep seeing examples across many sectors and in policy-making circles too, where gaps between talk and action precipitate the downfall of those at the top.
This is a profound shift. Centuries-old, patriarchal power structures are being very rapidly replaced by more diffuse, shared and democratic influence. Different skills are needed to lead now, skills that, as we shall see, tend to favour women’s ways of working and behaving.
Not everyone recognises this yet. While there is an emerging realisation that being ‘in charge’ is not what it used to be, there is still only a vague appreciation of the wide-ranging ramifications. Much carries on as before, in big ways and small: I am frequently asked by executive search firms for my recommendations for ‘diverse’ board directors and am repeatedly disappointed by the ‘old school’ lists they show me. There is still a game of musical chairs at the top – and this is a mistake.
This power shift is not a short-lived surge in populism. Unless we put the technological genie back in the bottle, it is irreversible and means leaders, companies and policy-makers need quite different ways of thinking and skill sets to be relevant, successful and genuinely powerful in future. We talk blithely of ‘disruption’ in business – when revenue streams built over decades can be grabbed by start-ups over a matter of months, if not weeks – but few seem to have grasped that this extends to power structures too.
The far-reaching impacts of this power shift can be compared with the wide-ranging (and often breathtakingly fast) impact of the internet on many traditional businesses. The retail sector is an obvious example. Even the most traditional, ‘heritage’ retailers are forced to address the vast challenge of online shopping opportunities. A few firms have been the disrupters, others have embraced the change, a third group is plodding along, trying to catch up with shifts that have already happened. In the UK, a number of long-established high street brands have gone into receivership; others struggle to redefine their business. A walk down any British high street – now usually a string of coffee shops, restaurants, hairdressers, nail bars and dentists, alongside a few specialist stores – shows how dramatically our shopping habits have changed even over the past few years.
In 2006, nine retailers dominated the US market; Amazon accounted for just 4% of the group’s total market value. By 2016, Amazon was 55% of the total. With over 750 million mobile users – more than four times all of its competitors combined – it has, in the words of John Koetsier, ‘won retail’, reinventing how we buy and receive products. Amazon achieved this amazing feat by creating a personal (yet automated) connection with their customers, tracking their history and searches to understand their needs – and delivering great service. For retailers – and so many other sectors now – a digital strategy is not peripheral to the main event: it is the main event.
The irony is that to formulate (and continuously evolve) the right digital strategy, businesses need the right human minds – and that means the right combination of minds. It’s not a question of digital or human, but digital plus human.
Companies therefore need to take the optimisation of their talent seriously. The impact of getting it right or wrong may not be immediate, but any company that drags its feet in developing its collective human intelligence will be less likely to succeed than smarter competitors and increasingly disconnected from its customers. Astute companies are already working hard to develop the right ecosystems, where their diverse talent helps create an intelligent working environment and strong customer engagement.
Out of this arise exciting opportunities for equality, but we could too easily squander them by failing to see that today’s destabilising changes offer the moment for a leap forward in the quest for gender and other equalities. A continuation of the past would not have got us to where we want to be – even if, superficially, it might seem more benign. Whether you agree with Brexit and Trump is not the point: these votes show that there’s an urgent desire for new ways of thinking and new leadership. Even if you detest the outcomes, instead of wringing your hands (which I am pretty sure will not influence what happens next), let’s take advantage of that desire for change.
My experience in helping to solve a much narrower problem, the under-representation of women on UK corporate boards, showed me (just as the chance to be Newton’s CEO had done) how dislocations can create rare moments of opportunity to seize. To capitalise on this moment today, women need to tap into their own, feminine brand of power. It works. I was definitely on the outside of the real power base when it came to making changes in the boardroom, but was able to become effective by being empathetic and constructive in my approach. I reached out, rather than fought. Girl power, if you like, but not as we may have thought of it before. This is not about adopting the trappings of male power, but about redefining power, changing rather than mimicking the power structures that we have been largely excluded from in the past.
This is our moment to show the strength of feminine power.
Chapter 3
The 30% Club: the strength of feminine power
When you start to develop your powers of
empathy and imagination, the whole world opens up
to you.
SUSAN SARANDON
Having been appointed in rather unorthodox and dramatic fashion to be Newton’s chief executive, I focused on delivering the results that were proof that I was up to the job. Achieving strong results – both investment and financial performance – requires the right team, and with Newton’s motto that ‘No one has a monopoly on great ideas’, my colleagues and I made a deliberate effort to develop diversity of thought and perspective. Just as on a football pitch, the best investment teams are not necessarily groups of the most highly qualified individuals; the interaction between team members plays a vital role.
In common with the rest of the fund management industry, although Newton had a strong meritocracy there were relatively few senior women. I wanted to do something to specifically address this. Young women – both at Newton and in other firms – were often approaching me to ask my advice, usually about combining career and family life, and I was happy to talk one-to-one. It seemed an obvious next step to try to help on a bigger scale. With the encouragement of my Boston-based boss, Ron O’Hanley, I launched a women’s initiative for our parent company’s European businesses in 2005.
This initiative – like most other companies’ gender diversity efforts at the time – centred on networking events, often a talk from a high profile woman. The feedback was always ‘how inspiring’ but in fact no one seemed inspired to actually do anything differently. Over the next few years, we saw little change in the representation of women at senior levels – and no real evidence that this was likely to change any time soon.
Discouraged, I was about to give up when I was invited to give one of those talks myself at Goldman Sachs, as part of their 2009 Diversity Week. Afterwards Goldman hosted a discussion for 15