We live in a world of economic and political uncertainty where both political and corporate leaders now face testing times. In the turmoil and confusion following the EU referendum, several female politicians have come to prominence in their leadership roles. What’s happening in politics with the appointment of Theresa May as the U.K. Prime Minister could be described as the "glass cliff" phenomenon. The glass cliff refers to the tendency for women to be more likely than men to be appointed to leadership positions that are risky and precarious.
There is evidence for the glass cliff phenomenon. An archival study by Ryan and Haslam (2007) investigated changes in monthly share prices of FTSE100 companies on the London Stock exchange, both directly before and directly after the appointment of male or female board members. The study examined fluctuations in share prices leading up to board appointments. On the one hand, prior to the appointment of men, companies typically experienced reasonably stable performance and in sharp contrast, in the five months prior to the appointment of a woman, companies tended to experience consistently poor share price performance. The results of this analysis point to a more nuanced story suggesting that in times of poor company performance, women may have a "leadership advantage" according to research by Eagly and Carli in 2003.
“It’s not helpful to talk about what traits women and men have when it comes to leadership,” comments Michelle Ryan, professor of organizational psychology at Exeter University. “However, there is evidence to suggest that there is a stereotype that women are seen to be more useful in a time of crisis.”
Women are more likely to be appointed in times of crisis, remarks Ryan. “That doesn’t mean they will fail but it does mean that their position will be more risky and precarious. When women lead they are very visible as there are not many of them and their failures and successes are often attributed to their gender.”
Ryan has undertaken 10 years of archival and experimental research on this topic. “We’re saying it seems to be the case that women are more likely to be given these opportunities in risky and precarious positions.”
Anna Beninger, director of research at Catalyst believes there are several high-profile examples of women appointed to leadership roles during times of crisis. “For example, there was the appointment of Mary Barra at General Motor and Marissa Meyer at Yahoo. These women stand out because they are so unusual but you cannot generalise the trend to the entire population. The reality is that overwhelmingly men still dominate leadership positions in the corporate world across industries and around the globe. Our research shows that gender is not a reliable predictor of how a person will lead. There are successful male leaders and there are successful female leaders, just as there are unsuccessful male and female leaders. We must stop seeing women (and men) as a monolithic group. Women are not all the same, nor are men. There is as much diversity within genders as across genders. What we really should focus on is how we assess talent and work to ensure that women are being fairly evaluated on their skills and accomplishments, and are being held to the same, not higher, expectations as men leaders.”
Catalyst's own research, "Women 'Take Care,' Men 'Take Charge': Stereotyping of U.S Business Leaders" revealed that women were perceived by top corporate leaders, including chief executives, to be innately more competent at "taking care" behaviors while men were better at "taking charge" behaviors. "Behaviors such as 'care-taking' and rewarding others could explain why women are looked at during times of crisis. Women are stereotyped and seen as team-orientated and collaborative," comments Beninger.
Ryan argues that one of the dangers of women being associated with risky leadership roles is that it may end up reinforcing the stereotype that women are not good at leadership. “These positions are much more stressful and difficult. We know that women have shorter tenures than men in companies. If women look up and see women struggling in risky and precarious positions then that may put them off.”
But taking the reins of a firm during times of adversity can serve leaders well. Adversity can be a vital component of developing leadership skills argues Linda Hill, professor of business administration at Harvard Business School. “Adversity reveals both your weaknesses and strengths and makes a leader look at what they have done and need to do. We also know from research that the way people learn to lead is through ‘crucible’ experiences.”
