Ladies first

Ladies first: An old adage, but one that was top of mind on 2 February 2012 at the Business and Industry Advisory Committee (BIAC), AmCham France, and OECD joint workshop on the economic empowerment of women. And so it should be. Women are a critical resource in facing the challenges of our global economy, both as an emerging market and as a significant pool of human talent.  Further, gender diversity creates the potential for better, more informed decision-making in our societies, an educated and diverse source of talent for private and public institutions, and role models who can be an inspiration to billions of women and men worldwide. 

Addressing gender equality is not just about “fairness.” Inequality in gender empowerment raises serious economic issues for countries at all stages of development and presents considerable business challenges for all kinds of enterprises, but particularly for those that value and rely on human skills and resources.

We are lucky to live in a time where technology, the internet, and mobility are critical enablers of information sharing, communications, and resource allocation that can support gender equality efforts. Despite this positive environment and past efforts over decades to advance the economic empowerment of women in the workplace and within society, progress has been slow.

• According to current data from Catalyst, approximately 14 percent of executive officer positions at the Fortune 500 are held by women, a number that has barely budged since 2005.
• A global study of the number of women on boards is even more dismal – only 9.4 percent globally, up marginally from 9.2 percent in 2009 (according to Governance Metrics International).
• This is despite the fact that economic studies show that corporations with women on their boards and in leadership positions have a higher return on equity. In Europe, the return has been estimated at more than 10 percent (Deloitte [DTTL]: The gender dividend).

Advancing equality and harnessing the gender dividend has many dimensions affected by societal norms, legal, and regulatory frameworks and local cultures. Reversing current results will require the intersection of government, business, and society. This is what the joint workshop discussed; bringing together women and men from these groups in an effort to share “real-life” experiences from business to support the OECD’s Gender Initiative. The OECD’s cross-directorate program aims to identify, and update a set of indicators on the key dimensions of gender inequality in education, employment, and entrepreneurship. It will provide sound information that can demonstrate progress by member countries, or otherwise, on this critical economic matter.

Deloitte is very engaged in supporting BIAC and its contribution to the OECD gender initiative. Like other businesses, Deloitte member firms face challenges in continuously moving the needle on gender equity. Outcomes are influenced by the maturity and development of their market, cultural norms and the legal and regulatory frameworks within which they operate.

Using the outcomes of this meeting and with Deloitte’s support, BIAC will provide a report to the 2012 OECD Ministerial and Forum later this year. We intend to share our learnings with the OECD and the Ministers, to contribute to their work on the development of best practices that promote the economic empowerment of women.

Women’s economic empowerment is not just about fairness, it’s the future. It will generate economic benefits for individuals, their families, and society at large. Deloitte is proud to support this effort.

Read my remarks from the 2 February opening at the BIAC, AmCham France & OECD joint workshop.

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Charles Heeter is with the DTTL Global Public Policy Group and a principal in the U.S. member firm. In his role, he engages in Deloitte global public policy initiatives, is responsible for building cooperative relationships with capital markets stakeholder groups, and helps coordinate the Deloitte global regulatory network. Heeter is also Chairman of the Business and Industry Advisory Committee to the Organisation for Economic Co-operation and Development (OECD).

Davos…A thrilling experience

Last week at the World Economic Forum in Davos was a whirlwind - the three days go by in a heartbeat. The DTTL Global Manufacturing Industry group is serving its second term as the executive industry partner for the Forum’s Chemical sector leading a project focused on Collaborative Innovation. Because of our involvement, this was my second opportunity attending the Annual Meeting.

Each day at Davos is filled with activities from day to night. My first day (Wednesday 25 January) started off by attending a panel led by DTTL CEO Barry Salzberg entitled The New Context for Leadership. Barry cited several interesting observations from DTTL’s point of view on Business: Society. The panel joining Barry was a diverse group that discussed a wide range of topics focused on leadership. One interesting statistic from the report that Barry pointed out was that 73 percent of business leaders believe that their core business activities make a positive contribution to society, but only 25 percent think it is well know by their customer, consumers, and clients. The panel shared with the audience interesting observations about the impact their company’s contributions are making to society. Later that day, I also attended a fascinating session led by several renowned Fortune 500 manufacturing leaders. The highpoint of this session was the insights shared from the CEOs how they are continuously reinventing themselves. Each CEO shared a perspective how they have remodeled their company over the past decade. Conversely, the CEOs pointed out that those companies that have not adjusted to the times, may not have survived.  

During the second day (Thursday 26 January), I focused all of my energy on the chemical industry. I was an active participant in the Chemical Governors session where CEOs from the leading chemical leaders gathered to discuss the most important issues facing the industry. DTTL’s research work fueled the active discussion among the CEOs in this session. For me, this session was a memorable opportunity to be in the room with 25 top leaders in the industry. Another highlight of Davos overall is the annual Deloitte member firm client CEO dinner. This year, Malcolm Gladwell, New York Times #1 bestseller for Outliers and journalist, was invited to speak to the attendees. Everyone I spoke to seemed to really enjoy his comments.

The last day, (Friday 27 January) was focused primarily on Deloitte member firm client visits. Davos provides an incredibly unique opportunity to interact with CEOs of top global companies.

One thing that Davos does not provide is ample time for sleep. All days start early with breakfast meetings and end well after midnight with dinner gatherings. I guess there are always the weekends to catch up on sleep. I hope this perspective on my personal experience was of interest to you. Please send me a note back with any specific questions of my time there. I will certainly never forget it.  

Related links:
Tweets from Tim Hanley
As a leader video 2012 – What will our global economy look like in the next three to five years?
Ask a leader video 2012 – Favorite Davos moment

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Tim Hanley is the Global Leader of the Manufacturing Industry group of Deloitte Touche Tohmatsu Limited (DTTL). In his global industry leadership role, he directs strategic initiatives and investments to grow Deloitte member firm market share within the manufacturing industry. During his distinguished 32-year career, Hanley has led teams serving all business aspects, including consulting with top management regarding organizational financial strategy development and execution, acquisitions, and market development.

Call to action: Bringing together politics, business, and individuals for global solutions

“Knowing is not enough; we must also apply. Willing is not enough; we must also act.”

This quote by German writer Johann Wolfgang von Goethe has accompanied me through the days in Davos at this year's World Economic Forum Annual Meeting. Seeing the pressing issues to be resolved has filled me with a sense of responsibility, corporate as well as personal. Yet no one person, company, or nation can achieve this alone. Change will only happen through dialogue and mutual respect; Davos offers a perfect forum to foster this conversation and build this respect.

Only together can we address and hope to resolve the big themes our world is facing:

Harnessing the potential of women in the workforce

I have just spent a fascinating week at the World Economic Forum in Davos, Switzerland. The theme for 2012, The Great Transformation: Shaping New Models, covered several topics such as shifts of geopolitical and geo-economic power, multiculturalism, technological innovation, and job creation. For example, academics and business leaders put forth the idea of job creation that focuses on the hundreds of millions of people that will enter the job market in the next decade. Businesses that will gain a competitive advantage in the future will be those that focus on talent by fostering entrepreneurial risk-taking and achieving true gender equality.

Against this backdrop of gender equality discussions, one of the highlights of the week for me was the Gender Parity session on Friday. As the leader of the Japanese Financial Services Industry practice at Deloitte Japan and the first female represented on the Deloitte Japan Executive Board, I am passionate about shaping employment and leadership opportunities for women. I had the privilege of talking to leaders from around the world in this interactive workshop about their experiences, and how to improve opportunities and career paths for women leaders in the future.

Optimistic in an uncertain world

Last year, I described my Davos experience as being like going to Disneyland but not being allowed to try the rides. This year, attending as a delegate for the first time, gave me an Alpine rollercoaster experience – from the highs of meeting and hearing from inspirational innovators, entrepreneurs and experts in their fields, to the lows of some sobering economic debates.

The World Economic Forum has typically contained an element of future gazing – what is the 5-10 year outlook for business and society? This year, there was a much more short term feel, with a strong focus on solving the Eurozone crisis. Perhaps unsurprising, given the presence of Angela Merkel, David Cameron, and numerous finance leaders.

Davos is a great opportunity for me to spend time with the CEOs of our member firm clients, and to get a good sense of the latest thinking of political leaders, finance leaders, and regulators. It’s also a real opportunity to hear from experts in fields I wouldn’t normally hear from, for example, on the future of medicine. This broader agenda is not only personally interesting, but gives me new perspectives and challenges my thinking.

From Academic to Actual: Currency volatility and the real economy

In April 2011, my Deloitte colleagues and I, together with the World Economic Forum, put on our binoculars. We, like others passionate about risk to the global economy, looked at the topic of currency volatility and the international monetary system, and saw a potential period of instability. At that time, it could still be argued academic. Today, it is clearly very real. As we begin 2012, the level of uncertainty in international currency regimes is now front and center. We are a long way from the U.S. government’s former AAA debt rating, Italy’s four percent bond yields, and a time when few analysts were seriously discussing any kind of “landing” in the Chinese economy, be it hard or soft.

Markets are now driven predominately by macroeconomic developments, and systemic changes to the global economy seem to lurk behind every new policy announcement. It is clear that studying possible evolutionary paths of the international monetary system has moved out of the realm of academic discussion and into the real world in a way financial services providers cannot afford to ignore.

Business leaders and ‘Millennials’ agree – the purpose of business is more than just profit

The 2012 Annual Meeting of the World Economic Forum opened today in Davos-Klosters, Switzerland. Being here in Davos is exhilarating and inspiring – and the time always flies by so quickly.

One of the highlights of the day for me was taking part in a panel discussion chaired by London Business School professor Lynda Gratton. We discussed how the art and science of leadership are fundamentally changing in the 21st century. Another highlight today was helping lead discussion with other Forum delegates in a brainstorming session on the topic of the role of business in society.

These are subjects I feel strongly about. Earlier this week, Deloitte announced the results of a global survey, conducted by the Economist Intelligence Unit (EIU), of business leaders’ attitudes on the purpose, impact, and leadership of business on society.

If it all goes wrong: Rebalancing the global economy

The future belongs to those who show up. — Mark Steyn

As leaders of Deloitte Touche Tohmatsu Limited and its member firms, participate at the World Economic Forum in Davos at the end of this month, I am looking forward to engaging with clients of the Deloitte U.S. firms in New York this Friday on whether growth is still possible if everything goes wrong. The challenge is looking for the pony in the pile of horse-do-overs. I think I have discovered no less than five. Here is the first one.

The doomsday scenarios related to overpopulation, which were previously forecasted, have failed to materialize. In fact the scenario which has unfolded is the exact opposite, with its own set of challenges. Birth rates around the world have plummeted to levels where the implosion of population represents a much greater threat to economic prosperity. Populations are already shrinking in Russia and most of the countries of the former Soviet Union, as well as in Japan. Throughout much of Europe, the population pyramid is standing on its head. For every 100 grandparents there are less than 50 grandchildren.

Eyes on the sky: How cloud computing is shaping society

Next week global leaders from DTTL and Deloitte member firms are meeting in Davos at the 2012 World Economic Forum to discuss the important issues of the day. While we can’t all attend, I have the real privilege to participate in a local Davos event in New York for clients of the U.S. firms. I’ll be speaking about cloud computing, and how it is not just a technology phenomenon, but is shaping society itself.

As someone who has been working with leading innovators for many years, my sense is that cloud computing represents a once-in-a-generation convergence of technologies: high-speed broadband, large-scale data centers, and flexible virtualization software. Working together as “cloud computing,” these forces are driving one of the most important global technology transformations impacting on many types of business, political, and social structures.

21st Century paradigm for water management: Business, social, and political implications

I believe increasing water scarcity is on a collision course with economic development, energy and food needs.

Without adequate water supplies, the world will not be able to feed an ever increasing population, manufacture products or generate electricity (hydro, nuclear and fossil fuels). Unlike energy, water is unique; there is no alternative.

Increasing global population, urbanization, energy and food demands coupled with declining water quality in certain regions has resulted in increased competition for water in the public and private sectors. The facts and trends highlight this increasing “scarcity” of water are as follows (Water Scarcity. The Water-Food-Energy-Climate Nexus. World Economic Forum 2011):

• Currently, about 884 million people worldwide don’t have regular access to safe drinking water and about 2.5 million people lack access to sanitation. This has significant economic, social and political implications (www.water.org).
• Water withdrawals are expected to increase by about 50 percent by 2025 in developing countries and 18 percent in developed countries (www.water.org). As a result, projections indicate that about 47 percent of the global population will face water shortages by 2030 (www.oecd.org)
• Increased competition for water is driven by (Water Scarcity. The Water-Food-Energy-Climate Nexus. World Economic Forum 2011):