It is ironic to think that David Murray, former chief executive of the Commonwealth Bank, said at a thought-leadership event that achieving a 50/50 split of men and women in senior management across Australian companies was unrealistic. How uninspiring is that leadership?
Murray, a long-standing fixture in Australia’s business community said this: “If you manipulate the system to turn [gender equality] into a reality, you create a system that isn’t based on merit and that’s a bigger danger”. That, however, depends on your idea of merit. Merit, at the moment, is disproportionately clustered among men of a certain age of a certain background.
It is difficult for men of that age and background to question the inherent bias in the current system because doing so essentially brings their own positions into question. Of course some male leaders are confident and informed enough to withstand those questions while also promoting change. The Male Champions of Change – a group of current male CEOs committed to achieving gender equality – came out this week to say they weren’t just looking within their own businesses for female leadership, but within their suppliers too. They’re taking a holistic look at the options for women in leadership.
One of Murray’s successors, Ian Narev, the Commonwealth Bank of Australia’s current CEO made the point that achieving gender equality does require disproportionate investment in women; not because women aren’t as capable but because the current system isn’t as capable of supporting and promoting them.
While this esteemed group of current leaders, most of whom are at least a bit younger than he is, are trying to create a pipeline of women, Murray is taking a limited view of the landscape. Perhaps most worryingly though is that Murray seems to be suggesting that we’re getting it right at the moment.
He’s wrong for a number of reasons. Women are outperforming men in education and they have been doing so for year. For years women have been rising in numbers in MBAs, the majority of law and commerce graduates. Women have the institutionalised talent and qualifications to facilitate 50/50 participation in leadership positions.
In voicing his resistance to actively promoting change to facilitate women in leadership Murray is bucking the trend. Momentum is gradually building as the broader business community, including the Business Council of Australia, are focusing on gender equality.
Tony Shepherd, President of the BCA, said “the low representation of women in senior levels of management cannot continue”. It is because we’re sourcing the success of our companies from 49.3% of the population. That’s both unsustainable and limiting.
The contrast between Murray’s views and those expressed by Ian Narev indicate Murray is no longer a leader in corporate-thought. The new generation of leaders recognize that leadership and broad action will help change the position of women in corporate Australia.
I’m unashamedly optimistic about women’s corporate leadership. It is wholly achievable: the talent is there and a growing number of leaders are committed to supporting that. Not just because morally it’s time but because the commercial rewards are irrefutable. The opportunities for businesses will grow exponentially are more women rise to the top and that’s what Murray isn’t getting.
The future of women in business in Australia is bright and exciting. Gender equality in business is undoubtedly a hot topic right now but not because it’s a fad. It is an opportunity to double the talent pool our companies draw from. CEOs and shareholders are right to be pressing for that.