Balancing the Bias
At a time when most organizations are lacking gender equality in their leadership ranks, it takes best-in-class empathy to make change.
By Kristine Blenkhorn Rodriguez | Summer 2017
CPAs are sticklers for the numbers adding up, balancing out. In the public accounting profession,
however, despite women accounting for roughly half of all accounting education program enrollments
and employee counts, they hold fewer than 25 percent of firm partner roles, according
to research by the AICPA’s Women’s Initiatives Executive Committee (WIEC). These numbers just
don’t add up, no matter how you crunch them.
This isn’t “news.” Despite years of articles, surveys, and reports highlighting the issues and challenges
women face in accounting and finance, and calls for dedicated efforts and initiatives to
promote women’s advancement within firms, the numbers of women at leadership levels still
come up short. Despite women holding commanding representation within the new professional
and associate ranks, and even among senior managers and senior associates in many segments,
their numbers decline rapidly at top leadership levels.
It’s a cold reminder of the “frozen middle” as Andrea March, CEO and cofounder of the Women’s
Leadership Exchange, calls it—the point in a woman’s career where she has reached the ranks of
middle management and then must seemingly leave a firm for outside opportunities or be content
to progress no further.
It’s time for this to change.
Paving Their Way
Where do women go if they’re not advancing in
public accounting firms? Career changes are an
obvious choice, but they’re not the only one. The
WIEC 2015 CPA Firm Gender Survey found that
women make up 43 percent of partners at firms
with two to 10 professionals, indicating that
women stalled within larger firms may be deciding
to take ownership into their own hands, in
their own firms. This is a noble and commendable
move—one that’s certainly a positive development
for the profession as a whole. But we still
should question why it has come to this.
Illinois CPA Society members Alyssia Benford,
CPA and Kimi Ellen, CPA are prime examples of
that 43 percent. Following decades of combined
Big Four and corporate finance, advisory, and
audit experience, the former college sorority sisters
founded Benford Brown & Associates LLC in
1996 as a certified minority and woman-owned
CPA firm.
“We had to create what worked for us because
the firms we worked for didn’t,” says Benford. Referring
to herself as a pragmatist, Benford readily
admits that owning her own firm was her solution
to advancement and work-life balance after being
unable to find it at large accounting firms and
corporations.
“I needed to be in a place where hours were not
unreasonable, quotas were not the basis for partnership,
and where being a woman—more significantly,
a woman of color—was not hurting my
career,” she explains. “It was about me taking
the initiative rather than waiting for a firm to
do it for me.”
Working With Women
Benford’s public accounting and corporate experience
isn’t an anomaly or isolated case. In fact,
McKinsey & Company released research earlier
this year indicating that regardless of how compelling
gender diversity and equality may be
among organizations, progress towards gender
parity remains slow across the business world.
Much like in public accounting, women are
struggling to tip the scales in public and private
companies and board rooms in the U.S. and
abroad. In the U.S., only 17 percent of executive-committee
members are women, and women
comprise fewer than 19 percent of members of
corporate boards, according to McKinsey &
Company’s report, “Women Matter 2016: Reinventing
the Workplace to Unlock the Potential of
Gender Diversity.” Among companies listed in
Western Europe’s major market indexes, the respective
numbers are 17 percent among executive
committees and 32 percent among boards.
Paula Loop, director of PwC’s Governance Insights
Center, told Forbes last year: “Typically,
boards look for a candidate that has been a CEO
or held another executive role, as boards often
want current or former CEOs as directors. But a
mere four percent of S&P 500 CEOs are female
and only 14 percent of the top five leadership positions
at the companies in the S&P 500 are held
by women. That doesn’t make for a big pool of
potential candidates.”
We’ve seen millions of women marching in unity
in Washington, D.C., and around the globe, to
push for greater representation, a stronger voice,
and equality in business and politics, among
other things. With reinvigorated women’s movements
garnering mainstream public attention,
and board diversity becoming a visible and actionable
shareholder concern, organizations must
focus more on filling their pipelines with female
talent sooner rather than later. But how?
What are the organizations succeeding at advancing
and retaining women doing differently?
McKinsey & Company’s report reveals three gamechangers
among “best-in-class” organizations:
Persistence. Best-in-class companies initiated
diversity programs earlier, indicating that it
takes time to effect tangible, sustainable results.
CEO commitment, cascading down to all
management levels. Companies that have built
gender diversity successfully at the leadership
level are twice as likely to place gender diversity
among the top three priorities on their
strategic agenda, to have strong support from
the CEO/management, and to integrate gender
diversity at all levels of the organization.
Comprehensive transformation programs.
Best-in-class companies have initiated change
programs that ingrain gender diversity in all aspects
of the business. Specifically, those companies
are more likely to have change agents
and role models at all levels of the organization.
They also have developed and communicated
a compelling change story to support the
programs, policies, and processes they have
put in place.
At the ground level, two rather straightforward
initiatives repeatedly come up among women in
accounting leadership roles that encompass these
game-changer ideas: sponsorship and flex-work
programs.
Sponsoring Change
While mentoring programs have become fairly
common at most large professional services firms,
programs alone don’t create change. McKinsey &
Company puts it clearly: “Although having a critical
mass of measures is important, volume alone does not explain women’s representation in top
management. Fifty-two percent of the companies
in our sample implemented more than 50 percent
of the gender equality measures, but only 24 percent
of them reported having more than 20 percent
of women in top management positions.”
What’s lacking for women, and what is a studied
solution to the current bias towards men in leadership,
March says, is actual sponsorship. “Companies
can’t say they have mentorship programs
for women and leave it at that anymore,” March
says. “Women need sponsorship if we are to tip
the scales anytime soon.”
“A mentor walks beside you. An executive sponsor
walks ahead of you, and opens doors for you,”
states the 2016 Accounting MOVE Project report,
“Sponsorship: Stepping Up Success.” In other
words, an executive sponsor puts his or her influence
on the line for the benefit of another. A
sponsor has the goal of helping a particular candidate
gain a targeted position or assignment—
it’s about providing opportunity, pure and simple.
“Sponsorship is one of the most powerful and
overlooked dynamics for propelling women
through the talent pipeline,” according to the Accounting
MOVE Project.
Finding the Flex
An unfortunate blockage in the pipeline for many
women is the notion of a “baby penalty.”
“Women will not achieve equality in leadership
ranks until the baby penalty is openly addressed
by upper management,” March says. “We need
to speak about it without dodging the issue.”
What she’s referring to is the need to overcome
the stigma that a woman simply can’t grow both
her family and her career at the same time—the
idea that it must be one or the other.
“We generally tend to lose women at the manager
level. And usually, it’s because they get married
and want to have a family. Until we figure
out how to exceed client expectations while
also tending to a family, we’ll continue to have
this dilemma,” explains Eileen Iles, CPA, CGMA,
CIA, CFSA, CCSA, CRMA, chair of the ICPAS
Women’s Executive Committee and a partner in
Crowe Horwath’s Risk Management Financial
Institution Group.
Jackie Rosenfeldt, CPA, is just one example of
how that dilemma can be overcome. Rosenfeldt
earned her place among Grant Thornton’s partner
ranks while both working a reduced, flexible
schedule—about 80 percent of a “typical” workload—
and raising a young family. Her career has
now surpassed 15 years with Grant Thornton,
where she’s currently a partner and key leader in
the firm’s Chicago audit services practice.
“As long as I kept working hard and focused, it
all seemed to work out,” Rosenfeldt says. “It’s a
marathon, not a sprint. You’ll still have some people
who think you are not as motivated because
you work flex time. Take the long view. Don’t take
it personally. Just deliver the results you need to
get to that next career goal in the way that works
for you,” Rosenfeldt adds, encouraging women
to be mindful not to stifle their opportunities and
to make finding a sponsor a priority, particularly
those on flexible schedules, because as she puts
it, “men often progress faster because they build
relationships faster. Women, instead, sit behind
and finish the work up—many times so they can
get home to their kids.”
That said, Iles says she sees “more men taking time
off to participate at home after a baby is born. It’s a
start—and the more firms that accept it as a matter
of course, regardless of gender, the quicker we’ll
get to a more equitable gender leadership picture.”
Valuing Gen Next
In fact, as generational changes are pushing organizations
to rethink their corporate cultures and
be more considerate of staff wants and needs in
terms of work-life balance, there’s hope that more
balance and opportunity will come to all, which
will in turn open more equal opportunities for
women’s advancement.
One move Crowe Horwath has made to benefit
all of the firm’s employees is launching its “Measuring
What Matters” program. In short, Iles explains
that Crowe Horwath is aiming to increase
flexibility when staff isn’t facing clients. “Work
from home, Starbucks—wherever works for you.
That’s the fundamental idea. We emphasize results
over chargeable hours. How you get to the
result is what works best for you.”
Crowe Horwath isn’t alone in this mentality;
roughly 65 percent of the selected firms surveyed
by the Accounting MOVE Project offer formal
flex-work arrangements, and every generational
change is expected to bring greater calls for flexibility
and equality in the workforce.
“You have to think that children raised by a female
breadwinner will have different expectations
about capability and equality—at home and
at work,” Benford says.
Today’s best-in-class firms and companies are realizing
this and are making equal representation
of women within their organizations a serious science.
What remains to be seen, however, is
whether the rest of the accounting profession, and
the rest of the business world, will follow suit and
put gender inequality in leadership to rest. If so,
it may be the first time the gender equality books
are balanced—ever.