What business roles have the greatest return on investment as measured by revenue and economic growth? The Peterson Institute for International Economics (PIIE) in collaboration with Ernst and Young (EY) explored this very issue. The scope of their study was broad and deep: approximately 22,000 publicly traded global companies; 91 countries; a range of industries and sectors. The results of their study were published in a 2016 report titled Is Gender Diversity Profitable? Evidence from a Global Study.  Among the reported findings and related implications:

1. An organization with 30% female leaders could add up to 6 percentage points to its net margin.
2. Payoffs from policies that enable women rising through the corporate ranks could be significant.
3. The largest economic gain came from the proportion of female executives within the firm, followed by the proportion of female board members.
4. There is a “robust and positive” correlation between having female management, and presumably a pipeline of female future leaders, with increased firm profitability.

Think about this: an organization with 30% female leaders could add up to 6 percentage points to its net margin. Mentors and managers, if you were challenged to add 6 percentage points to your company’s net margin, how would you do it? If you haven’t yet elevated formal mentoring of your women staff for the purpose of developing a pipeline of female future leaders, you’re ignoring a strategic business process with demonstrated power to improve profitability. For much more on how and why to be a better career mentor, see my full article “How (and Why) to Be a Better Career Mentor to Women” published in AMA Quarterly, Summer 2018, p. 45  https://www.amanet.org/uploaded/amaquarterly-summer-18.pdf