British businesses need to ensure that more women are coming through the talent pipeline, according to the Chartered Management Institute (CMI).
Commenting on the third annual progress report from Lord Davies of Abersoch on women on boards and the Cranfield University School of Management's Female FTSE Board report, CMI’s chief executive, Ann Francke, said: “[The] data reveals welcome progress among leading FTSE companies in getting more women into boardroom roles. Those that have embraced this change are to be congratulated. But when 48 of the FTSE 250 still have male-only boardrooms, it's clear that more businesses urgently need to shake up their company cultures.”
She continued: "The evidence shows that balanced boards perform better, so this is bad for business. Women can bring different perspectives to management. Businesses that don't have diversity are more vulnerable to group-think, which can cause corporate failures.”
Cranfield’s research found that women now account for 20.7% of board positions in the FTSE 100, up from 12.5% in 2011 and 17.3% in April 2013. Lord Davies originally set a target of 25% by 2015.
The research also revealed that women now make up 15.6% of FTSE 250 boards, up from 13.3% last year.
"The real issue we need to confront is the lack of women in the talent pipeline,” Francke concluded. “Too many talented women opt out before they fulfil their potential, because business culture puts them off. That's hardly any wonder when we still don't have enough female role models at the top of British businesses.”
Sally Percy is editor of The Treasurer