A PERCEIVED CRISIS IN LEADERSHIP:

A CASE STUDY RELATED TO WOMEN EXECUTIVES

by

Bonnie E. Altman

A Dissertation Presented in Partial Fulfillment

Of the Requirements for the Degree

Doctor of Philosophy

Capella University

December 2006
 UMI Number: 3239057

Copyright 2007 by
Altman, Bonnie E.

All rights reserved.

UMI Microform 3239057

Copyright 2007 by ProQuest Information and Learning Company.
All rights reserved. This microform edition is protected against
unauthorized copying under Title 17, United States Code.

ProQuest Information and Learning Company

300 North Zeeb Road
P.O. Box 1346
Ann Arbor, MI 48106-1346
© Bonnie E. Altman
 Abstract

Organizations nationwide are facing what is perceived to be a leadership crisis as large

numbers of baby boom generation executive leaders become eligible to retire over the next

18 years. These executive positions are held mainly by men which has created a dearth of

women executives. Qualitative case study methodology was used to answer the question

“How can organizations increase women in executive leadership positions while preparing

for the leadership crisis?” Data collected via personal interviews with executive leaders and

human resource directors indicated these organizations are preparing for the perceived

leadership crisis by implementing succession planning and management systems and

development for upper level leaders; however, seven of the eight organizations in the study

are not attempting to increase women in executive leadership positions.

 Acknowledgments

This study culminates an academic journey made possible through the support and

assistance of several individuals. I would like to acknowledge my family who patiently

endured my time consuming research. To my daughter Michelle, who encouraged me to

complete the journey and to my son Derek, who became my inspiration and support as I

analyzed data. To my husband Alan, whose patience and encouragement kept me going when

a disability seemed overwhelming.

I would like to express my sincere thanks to Dr. Heinz Buschang, who as an external

reviewer gave me valuable feedback on the data, assisted with triangulation, and served as an

excellent editor. I would like to acknowledge the members of my dissertation committee, Dr.

William Reed, mentor, and Dr. Johnny Morris, committee member, in the School of Business

and Technology and Dr. David Balch, committee member, in the School of Education. Their

positive feedback is most appreciated.

This study was made possible by the contributions of the eight women and men who

gave their time and candidly participated in interviews. Although their identities are not

revealed, their contributions are greatly valued.

iii
 Table of Contents

Acknowledgments iii

List of Tables vi

CHAPTER 1: INTRODUCTION 1

Introduction to the Problem 1

Background of the Study 2

Statement of the Problem 4

Purpose of the Study 4

Rationale 5

Research Questions 5

Significance of the Study 6

Definition of Terms 7

Assumptions and Limitations 11

Nature of the Study 15

Organization of the Remainder of the Study 16

CHAPTER 2: LITERATURE REVIEW 17

Context of the Impending Leadership Crisis 17

Implications of the Leadership Crisis 30

Preparation for the Leadership Crisis 35

Women in Leadership 45

Case Study Research 84

iv
CHAPTER 3: METHODOLOGY 90

Researcher’s Philosophy 90

Theoretical Framework 91

Research Study Design 92

Sampling Design 93

Measures 95

Data Collection Procedures 101

Data Analysis Procedures 106

Limitations of the Methodology 107

Expected Findings 108

CHAPTER 4: RESULTS 109

Interviews 109

Participants 109

Data Presentation 110

CHAPTER 5: DISCUSSION 138

Data Analysis and Comparison to Literature 138

Field Notes and Unexpected Findings 156

Relationship of Findings to the Research Questions 158

Recommendations for Further Research 162

REFERENCES 165

v
 List of Tables

Table 1: Retirement Projections 139

Table 2: 5 and 10 Year Retirement Projections 140

Table 3: Number of Women Executives and Board of Directors 147

vi
 CHAPTER 1. INTRODUCTION

Introduction to the Problem

Organizations today are in a rapidly changing and unforgiving global environment in

which competition is fiercer than ever before and “effective leadership represents a rare

source of competitive advantage” (Kaiser, 2005, p. 1). As a result, leadership has become

more challenging. Leaders feel pressure from financial institutions and expectations of boards

of directors as well as impatient shareholders. They face increased complexity and

competition as a result of globalization, rapid information technology changes, more

demanding customers, increased employee expectations, and difficulties finding and retaining

excellent talent (Barrett & Beeson, 2002; Fisk, 2002). As leaders face greater challenges,

organizations are facing what is perceived to be a leadership crisis. Crainer and Dearlove

(1999) posited that on a global scale one of the most critical issues in the 21st century will be

the lack of qualified managers and executive leaders. Research supports this supposition

(Barrett & Beeson, 2002; Bernthal, Rioux, & Wellins, 1999; Chambers, Foulon, Handfield-

Jones, Hankin, & Michaels III, 1998; Michaels, Handfield-Jones, & Axelrod, 2001).

“Leadership is a process whereby an individual influences a group of individuals to

achieve a common goal” (Northouse, 2004, p. 3). Strong leadership is needed to achieve a

common goal; if missing, the organization may become fragmented. This study examines the

perceived leadership crisis, in organizations in a geographically defined area, and

1
investigates what actions are currently being taken to increase women in executive positions

while preparing for the crisis. The examination involves assessing how potential leaders are

being identified and groomed and if the lack of women in executive positions may improve

because of the leadership crisis.

In addition to leaders facing greater challenges, demographics, the loss of significant

knowledge, and inadequate leadership development are critical issues exacerbating the

leadership crisis organizations are facing. Additional critical issues include outdated

succession planning and management systems, job mobility, and limited source recruitment.

Background of the Study

The current leadership challenges and the increased challenges projected for the

future are expected to test both the capability as well as the supply of executive and mid-level

leaders. As the challenges and demands increase, potential leaders are questioning whether

advancing to leadership positions, particularly executive leadership positions, is what they

desire, which is further decreasing the pool of qualified leaders (Barrett & Beeson, 2002).

Several demographics are contributing to the impending leadership crisis as well.

Sixty million people in the baby boom generation are nearing retirement and will leave the

workforce over the next 15 years (McClintock, 2003). Many of the baby boom generation are

in executive leadership and management positions. The Bureau of Labor Statistics noted that

19% of the baby boom generation who are in executive, administrative, and managerial

positions expect to retire in the next 5 years and the number of baby boom generation

employees eligible for retirement will be 12,480 per day from 2010 until the mid-2020s

2
(Carey, 2003). The experienced leaders have a significant amount of knowledge regarding

their organization and industry. The knowledge will leave with them unless this knowledge is

captured prior to their exit.

A second demographic involves the decrease in the number of candidates for the

leadership positions due to a decline in the number of people in generation X, the generation

following the baby boom generation. Approximately 76 million people compose the baby

boom generation while there are only 45 million people in generation X (Muson, 2003).

Additionally, due to the downsizing of middle management in the 1990s, there are not an

adequate number of replacements who have been groomed for leadership positions (Byham,

2000). The potential leaders, currently in the talent pools, have not been groomed to

successfully replace the retirees due in part to the lack of adequate succession planning and

management systems needed to prepare leaders for the rapidly changing global environment

(Beeson, 2002).

With the increasing complexity of the global economy demanding more sophisticated

leadership, the talented leaders are in great demand resulting in a war for talent (Michaels, et

al., 2001). Between this war for talent and a change in the job security for loyalty mantra,

leaders have recognized the advantages of changing organizations. As they move from one

organization to another, organizations experience high financial costs, political disruption,

and psychological turmoil.

Corporate America is not recruiting leaders from all available sources as women are

significantly under represented in executive leadership positions (Catalyst, 2002a, 2003;

Crainer & Dearlove, 1999; Joy, 2006a). The Federal Glass Ceiling Commission (1995a)

3
reported that corporate America has not expanded its recruiting networks to explore avenues

to hire women. Also, research studies have indicated that line management experience is

needed for advancement to upper level management and leadership positions (Hurley,

Fagenson-Eland, and Sonnenfeld, 1997; Ragins, Towsend, & Mattis, 1998). However,

organizations have been reluctant to place women in line management positions which has

effectively constructed glass walls as obstacles long before women reach the glass ceiling

(Townsend as cited by Corporate Leadership Council, 1999).

These critical issues have exacerbated the leadership crisis facing United States

organizations. The critical issues have developed into a multifaceted problem.

Statement of the Problem

Organizations are facing a leadership crisis. There is not enough leadership talent to

replace the leaders who will be eligible to retire, the potential leaders in the talent pool are

not prepared for the demands of the changing global economy, and not all leadership

potential is being identified and groomed. Therefore, the talented leaders are in great

demand, which has resulted in a war for talent (Michaels et al., 2001). The mobility of the

talented leaders is financially costly to organizations, causes political disruption and

psychological turmoil, and affects the long-term sustainability of organizations.

Purpose of the Study

The purpose of this study was to explore how organizations, in a geographically

defined area, will be affected by the perceived leadership crisis and investigated if actions are

4
currently being taken to increase women in executive positions while organizations prepare

for the leadership crisis.

Rationale

Given the significant number of managers and leaders who will be eligible to retire

and the impact these retirements will have on organizations, examining and analyzing how

organizations are identifying, assessing, and developing potential leaders, including women,

may provide valuable insight on ways to decrease the negative effect of the impending crisis

and positively affect the number of women in executive leadership positions. This

information will be helpful to organizations in this geographical area as well as add to the

body of knowledge regarding the perceived leadership crisis and women in executive

leadership.

Research Questions

The research attempted to answer the question “How can organizations increase

women in executive leadership positions while preparing for the perceived leadership crisis?”

It was approached through the following questions regarding the leadership crisis, women’s

roles in leadership preparation, succession planning, and knowledge management.

1. How will the perceived leadership crisis impact organizations in a geographically

defined area?

2. How are organizations identifying individuals with leadership potential, assessing

skills and skill gaps, and developing them for executive leadership positions?

3. What are organizations doing to ensure women are identified and developed for
leadership positions?

5
 4. What succession planning and management systems are currently utilized?

5. How is knowledge management approached in the succession planning and

management systems?

The perceived leadership crisis has vast implications for organizations and the global

economy.

Significance of the Study

Leadership plays an essential role in all organizations. The viability of an

organization depends on the knowledge, skills, and abilities of its leaders. As organizations

face an exodus of leaders over the next 15 years, addressing the preparation of leaders to fill

these positions is essential. How an organization is affected by the perceived leadership crisis

will depend upon the quantity and rigor of the preparations.

Excellent leadership is needed at all levels of organizations; therefore, the perceived

leadership crisis could have a significant impact on how organizations function. Research

indicates leadership and talent management dramatically impact competitive advantage and

financial performance (Axelrod, Handfield-Jones, & Welsh, 2001; Deloitte Touche, 2002;

Dorgan & Dowdy, 2002; Watson Wyatt Worldwide, 2001), which in a global environment is

critical. Other factors also drive financial performance; however, it is evident that talent

management and financial performance are related and that leaders are responsible for talent

management. Early in the 20th century Henri Fayol pointed out that it is management’s

responsibility to ensure the stability of personnel tenure and if ignored positions will be filled

by ill-prepared people (Rothwell, 2001). For organizations to survive in the midst of the

leadership crisis they must have the right people in the right places at the right time. This

6
means that organizations can no longer leave leadership development to chance or depend on

headhunters to find replacements but rather organizations must identify and prepare high-

potential candidates for key positions. When there are no leaders groomed for positions,

incumbents tend to select and develop successors similar to themselves. Consequently, white

males tend to select other white males, a practice which can perpetuate the glass ceiling and

other forms of discrimination (Rothwell).

Women are entering the workforce in greater numbers than ever before (Bennett,

2002). As more women enter the workforce, more are also becoming leaders and managers;

however, organizations have been reluctant to place women in line management positions,

the positions that lead to upper level positions (Corporate Leadership Council, 1999).

Therefore, few women have reached executive positions. In 2005, only 16.4% of corporate

officer positions were held by women (Joy, 2006a) and the numbers decrease further up the

ranks (Catalyst, 2003).

The implications of the perceived leadership crisis clearly indicate that organizations

need to identify, develop, and retain leaders. The data collected and analyzed in the study

identified measures currently being taken to address the perceived leadership crisis, offered

insights regarding the advancement of women in the perceived leadership crisis, added to the

current body of knowledge regarding methods of developing leaders and managers, as well

as succession planning and management. Prior to beginning the study, pertinent terminology

was defined.

7
 Definition of Terms

Leadership, management, and talent are key words, which have varying meanings and

are therefore defined. Terminology regarding talent management, succession planning and

management, and competencies are defined, as well as the terms sex and gender and the

generational cohorts.

Leadership and Management

There are numerous definitions of leadership and management; however, most

definitions of leadership state that leaders influence, motivate, inspire and develop other

people to work toward shared aspirations or a common goal (Greenwood, 1993; Hughes,

Ginnett, & Curphy, 2002; Kouzes and Posner, 1995; Napolitano and Henderson, 1997;

Northouse, 2001;), while managers plan, organize, and direct (Bennis, 1989; Topping, 2002).

Leadership involves people while management involves projects and activities (Topping);

thus, leaders and managers are needed at all levels of an organization.

Talent

The term talent has evolved “from a unit of weight to a unit of money to a person’s

innate abilities to gifted people collectively” (Michaels, et al., 2001. p. xiii). Today, “in the

most general sense, talent is the sum of a person’s abilities – his or her intrinsic gifts, skills,

knowledge, experience, intelligence, judgments, attitude, character, and drive” (Michaels, et

al., p. xii). When discussing the impending leadership crisis, talent is defined as the “code

8
for the most effective leaders and managers at all levels who can help a company fulfill its

aspirations and drive its performance” (Michaels, et al., p. xiii).

Talent Management

To ensure that the talent within organizations is utilized effectively, talent

management programs have been developed. “Talent management is the implementation of

integrated strategies or systems designed to increase workplace productivity by developing

improved processes for attracting, developing, retaining and utilizing people with the

required skills and aptitude to meet current and future business needs” (Lockwood, 2006, p.

2).

Succession Planning and Management

With the new employment contract, in which corporations no longer (implicitly)

assure anyone continued employment (Leibman, Bruer, & Maki, 1996), succession planning

is not independently sufficient and should be paired with succession management.

Succession planning identifies replacements and coaches them while succession management

is a more systematic approach which identifies and develops high potential individuals to

ensure there is not just a list of potential candidates but a pool of prepared candidates when a

vacancy occurs (Berke, 2005). Therefore, succession planning and management is “any effort

designed to ensure the continued effective performance of an organization, division,

department, or work group by making provision for the development, replacement, and

strategic application of key people over time” (Rothwell, 2001, p. 6). A succession planning

9
and management system then is “a deliberate and systematic effort by an organization to

ensure leadership continuity in key positions, retain and develop intellectual and knowledge

capital for the future, and encourage individual advancement” (Rothwell, p. 6).

Succession planning and management is sometimes confused with replacement

planning. Although they are complimentary and may overlap, replacement planning focuses

on risk management and ideas for coping with crisis and is used to reduce the chance of a

catastrophe should key incumbents be lost unexpectedly (Wolfe, 1996). Replacement

planning identifies replacements for key positions, usually only the top two to three levels,

but does not include development of the identified individuals (Berke, 2005). Succession

planning and management goes beyond replacement planning in that it is a process, which

“attempts to ensure the continuity of leadership by cultivating talent from within the

organization through planned development activities” (Rothwell, 2001, p. 7).

Sex and Gender

In research regarding women in leadership positions, the terms sex and gender are

used extensively and are sometimes interchanged. According to Kaminer (2001), “sex refers

to the biological categories of male and female while gender refers to the cultural norms of

masculinity and femininity” (¶ 3). Indvik (2001) defined the terms in greater depth.

Sex refers to biological differences including anatomy, physiology, and hormones,

although some theorists argue that even sex is a continuum rather than a simple
bipolar set of categories. The categories of male (or man) and female (or woman),
based on sex, imply nothing, in and of themselves, about cognitive, emotional or
interpersonal abilities. Most cultures, however, have assigned meaning to the
categories of male and female. Gender refers to the way in which meaning and
evaluations are associated with sex by members of a culture. In other words,
masculinity and femininity have various sets of characteristics associated with them,

10
 depending on the culture. The degree to which males and females are expected to
behave differently, are treated differently, or are valued differently has little to do
with sex and everything to do with gender. (Indvik, 2001, pp. 215-216)

When discussing women in leadership, cultural norms and the degree to which women are

expected to behave differently and are treated and valued differently exists, therefore gender

is the applicable terminology used in the current research.

Generational Cohorts

The generational cohorts are defined by their birth years. The researchers, who have

studied the generational cohorts, agree that there are four distinct cohorts in the workplace

today; however, they vary on the exact parameters of each cohort. The terminology for each

generational cohort also varies. The four generational cohorts in this paper are defined as (a)

the veterans, born between 1925 and 1945; (b) the baby boom generation, born between 1946

and 1964; (c) generation X, born between 1965 and 1980; and (d) generation Y born between

1981 and 2000.

Assumptions and Limitations

Assumptions

Impending Leadership Crisis and Increasing Women Executives

Literature indicates the baby boom generation will be eligible to retire within 2 years

followed by a mass exodus through 2020. Numerous executive positions held mainly by the

11
baby boom generation will be vacated. The literature also indicates that women are under

represented in executive leadership. It is assumed that the exodus of executive leaders,

referred to as the leadership crisis, presents an opportunity to increase women in executive

leadership positions.

Geographical Representativeness

The perceived leadership crisis will affect all demographical areas of the United States.

Literature indicates senior leaders are aware of the leadership crisis and are beginning to

prepare for it by identifying the potential leaders within their organizations, assessing the

potential leaders’ strengths and skill gaps, and developing potential leaders. Therefore, it is

assumed that organizations in the selected geographical area will be affected by the

leadership crisis and are beginning to prepare potential leaders.

Leadership Enhancement

Leadership is complex and requires knowledge as well as experience. Whether

leadership is an inborn characteristic or a learned skill continues to be debated (Northouse,

2001). For the purpose of this study, it is assumed that although leaders may possess innate

or inborn characteristics or qualities that make them leaders, leadership is a process that can

be enhanced through education and experience.

12
Representative Interviewees

Leaders in organizations differ in their background experience and education as well

as their personalities. The participants for the study were selected from senior leadership

positions as well as human resource directors. It is assumed that the participants selected for

this study are representative of the leaders within this geographical area. Furthermore, it is

assumed that the data they provided is accurate regarding the organizations they represent. It

is not assumed; however, that the data they provide will be free from personal bias.

Validity of Qualitative Interviews

When using qualitative methodology, the data must include the perspectives and

voices of the people being studied (Strauss & Corbin, 1994). “This in fact, is an assumption

fundamental to qualitative research: The participant’s perspective on the phenomenon of

interest should unfold as the participant views it, not as the researcher views it” (Marshall &

Rossman, 1999, p. 108). To gain these perspectives, qualitative interviews are typically used.

The researcher develops semi-structured, open-ended interview questions which provide the

participants the opportunity for in-depth discussion. After the dissertation committee has

reviewed the interview questions, they will be pilot tested. For this study, it is assumed that

interviewing is a valid method of data collection.

13
 Limitations

Qualitative Research Limitations

Although all research methods have limitations, “qualitative findings are highly

context and case dependent” (Patton, 2002, p. 563); therefore, the findings may not be

generalizable to a broader population. Creswell (2003) contended that “reliability and

generalizability play a minor role in qualitative inquiry. Validity, on the other hand, is seen as

a strength of qualitative research” (p. 195). Jacelon and O'Dell (2005) noted that

“trustworthiness in qualitative research is the equivalent of validity in a quantitative study. It

is established through ensuring rigor in the process of data collection and analysis” (p. 51).

Limited Sample Size

“The sample size in qualitative studies typically is small” (Gall, Borg, & Gall, 1996,

p. 217). “Qualitative inquiry typically focuses in depth on relatively small samples, even

single cases (N=1), selected purposefully” (Patton, 2002, p. 230). The intent of the study is to

interview eight senior leaders and human resource directors, four women and four men.

However, access to leaders and human resource directors may be limited due to their

availability and desire or willingness to participate in the study.

14
Researcher

The researcher, in qualitative research, is the data collection instrument (Patton,

2002). The researcher’s education and experience as well as personal biases, values,

attitudes, and beliefs enter into the research and pose an intrinsic limitation.

Nature of the Study

After selecting a phenomenon, which based on a preliminary literature review appears

to be inadequately explained, the research question is designed as “qualitative research

design begins with a question” (Janesick, 1994, p. 210). The way the research question is

stated is important as it “determines, to a large extent, the research methods that are used to

answer it. [Thus,] … the basic premise is that the research question should dictate the

method” (Strauss & Corbin, 1998, p. 39).

If a concept or phenomenon needs to be understood because little research has

been done on it, then it merits a qualitative approach. This type of approach may
be needed because the topic is new, the topic has never been addressed with a
certain sample or group of people, or existing theories do not apply with the
particular sample or group under study. (Creswell, 2003, p. 22)

Other criteria for selecting qualitative methodology include the need: (a) to explore the topic

in depth, (b) to present a detailed view of the topic, and (c) to study individuals in their

natural environment (Creswell, 1998). The significance of the leadership crisis and the lack

of women in executive leadership positions indicate the topics need to be explored. If the

leadership crisis may be an opportunity to increase women in executive leadership positions

has not been explored. The research will facilitate a detailed view of the topics. To

accomplish this, individuals will need to be studied in their natural environment.

15
 There are several qualitative methodologies that can be used to study individuals in

their natural environment. As previously stated, how the research question is stated

determines the research method. When how and why questions are used, case study,

experiments, or histories are appropriate (Yin, 2003). However, what questions are

appropriate for exploratory research. The current study is exploratory and uses how and what

questions. Yin posited that when the relevant behavior of the participants can not be

manipulated and contemporary events are examined, case study is the preferred research

design; both are conditions of the current research.

Organization of the Remainder of the Study

Chapter two reviews literature relevant to the perceived leadership crisis and the lack

of women in senior leadership positions. It reviews research studies which provide an

overview of the crisis as well as research which supports the lack of women in leadership

positions. It also includes a section on case study methodology to hopefully assist the reader

with the origin and context.

Chapter three discusses the research methodology utilized in the study. The

researcher’s philosophy as well as her background and interest in the research problem are

described. The theoretical framework, research study design and sampling design are

discussed as are methods to increase the credibility, transferability, dependability, and

confirmability of the research. Data collection and analysis procedures, pilot testing, and data

storage are described. The use of human participants is discussed as well as limitations of the

methodology. The chapter ends with the expected findings.

16
 CHAPTER 2. LITERATURE REVIEW

The literature presented in this chapter is intended to provide an overview of the

context and implications of the perceived leadership crisis, research regarding the lack of

women in executive leadership, as well as an overview of case study methodology. The

literature assisted in the development of interview questions and assisted with data analysis.

Context of the Impending Leadership Crisis

Previous research identified several causes of the leadership crisis. They include (a)

the decline in current and potential leaders, (b) job mobility, (c) more demanding leadership

skills, (d) inadequate leadership development, (e) lack of attracting high performers, (f)

inadequate succession and management planning, and (g) limited source recruitment.

Decline in Leaders

The United States faces a decline in leaders as approximately 60 million of the baby

boom generation become eligible for retirement over the next 15 years (Drake Beam Morin,

2003) as well as a decrease in the talent pool due to the decline in the birth rate following the

baby boom generation, a decline in potential leaders, and the downsizing of middle

management.

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Retirement

Many senior executives are reaching normal retirement age and other younger

executives are retiring early to take advantage of consulting opportunities or to apply their

skills in other fields. According to Casher and Lesser (2003) “… 19 percent of the workforce

holding executive, administrative and managerial positions in the United States will retire in

the next five years” (p. 2) while Rothwell (2002b) found that “one in seven senior executives

in the Fortune 500 will be eligible for retirement within the next few years” (p. 30). Rothwell

also reported a crisis in the federal government in that an estimated 82% of all the senior

executives and 72% of all middle managers in the United States federal government will

become eligible for retirement during the current administration’s term in office (p. 32).

Watson Wyatt Worldwide (2002), a global consulting firm which focuses on human capital

and financial management, reported that someone in the United States turns 50 every eight

seconds, or 11,000 people per day. The United States Census Bureau indicated that nearly

50% of the adults in the US will be over 55 years of age by 2020 (Rappaport, Bancroft, &

Okum, 2003). It also reported that between 2000 and 2010 “the number of people in the 55-

64 age group is expected to increase by more than 50 percent, … while the number of people

35 to 44 years old will decrease by almost 20 percent” (Rappaport et al., p. 55-56). Therefore

as a large percentage of leaders are becoming eligible for retirement the talent pool is

decreasing.

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Decreased Talent Pool

The talent pool is decreasing due to a decline in the birth rate, a decline in potential

leaders, and the downsizing of middle management.

Decline in birth rate. Research conducted by Chambers et al. (1998) of 77 large

United States companies in a variety of industries, indicated that if the economic growth-rate

over the next 15 years is 2% the demand for executives will increase by about a third;

however, “supply is moving in the opposite direction; the number of 35 to 44 year-olds in the

United States will decline by 15 percent between 2000 and 2015" (Chambers et al., p. 47).

Morton, Fpster, and Sedlar (2005) posited that “by 2010, the number of 35-44 year olds,

those normally expected to move into senior management ranks, will not grow but will

decline by 10 percent” (p. 9). They also reported that “by 2010, the number of U.S. workers

ages 45-54 will grow by 21 percent; the number of 55-64 year olds will grow by 52 percent”

(p. 9). Rothwell’s (2002a) research indicated a similar trend, “between 1998 and 2008,

workers age 45 or older will grow from 33% to 40% of the U.S. workforce, while those

between the ages of 25 and 44 will plummet from 51% in 1998 to 44% in 2008” (p. 32). As

the number of potential leaders is declining, the desire to advance to senior leadership

positions is being questioned by generation X.

Decline in potential leaders. When the Veteran Generation first entered the

workplace, men worked away from home and had more time to focus on their jobs while

women worked at home and had time to keep the household running. However, as more

19
women have entered the workforce work/life balance has become a major issue. The Ranstad

North America (2002) study stated, “employees now demand that employers understand that

personal lives are a priority – in fact, a top priority” (p. 12). The study also showed that “over

the past few years, the number of people putting ‘family first’ has increased from 54% to

68%” (Ranstad North America, p. 12). Although work/life balance is important to all

generations, it is a major factor for generation X. Therefore, as the challenges and demands

for senior leadership positions increase generation X, the generation of potential leaders, is

questioning whether advancing to leadership positions, particularly executive leadership

positions, is what they desire (Barrett & Beeson, 2002). This work/life balance issue is

decreasing the pool of qualified leaders.

Downsizing of middle management. During the 1990s, the downsizing of middle

management reduced the talent pool as well. A survey conducted by the American

Management Association indicated that during 1995 through 1996 middle managers made up

only 5-8% of the workforce; however, middle managers represented 15-20% of the positions

downsized in 1996 (Byham, Smith, & Pease, n.d.). Outplacement specialists Challenger Gray

and Christmas reported that in 1986 just 27% of their clients were middle managers;

however, by 1996 the number had risen to 60% (Byham et al.). In addition, offering

candidates who may have moved up in the organization incentives to leave eliminated other

positions. Thus, over the last 10 years people who would have been candidates for top

leadership positions were eliminated from the ranks. The result is a shortage of leadership

talent as well as an age gap between senior and middle management. As middle managers

20
have less experience the senior cadre perceives them as young and unprepared for senior

positions in the rapidly changing global environment (Byham et al.). Lack of preparation is

also impacted by a more mobile society.

Job Mobility

Based on the lack of experience of middle managers, the perception by the senior

cadre that middle managers are young and inexperienced may be warranted; however, there

are differences in the generations’ perspectives as well. The veteran generation and the baby

boom generation have traditionally followed the job security model, “find a company where

you can stay for a long time, work your way up, become vested and make yourself

increasingly secure by virtue of your accomplishments and your tenure there” (Lancaster &

Stillman, 2002, p. 53). Generation X and generation Y embrace the career security model

which states one “should build a portfolio of skills and experiences that guarantees that no

matter what cataclysmic event occurs you’ll be able to land on your feet" (Lancaster &

Stillman, p. 54). Having watched their parents be downsized, generation X learned to

embrace career security rather than job security; therefore, they keep building a repertoire of

skills and experiences and adding to their career portfolios which are transferable between

organizations should they need to move or should they receive a more attractive offer.

Although senior leaders have subscribed to the job security model, they also

participate in job hopping due in part to the rise of many small and medium-sized companies

that target the same executives as large organizations. Small companies with the lure of stock

options are increasingly attractive and corporate life no longer appeals as strongly to talent

21
(McKinsey & Company, n.d.). Poaching, known as direct sourcing in the recruiting industry,

which was reaching a fevered pitch in the late 1990s is making a comeback but likely will be

limited to senior level employees (King, 2004). As senior leaders become more mobile, the

number of organizations they work for will increase. The 50 senior executive search

professionals, surveyed by Chambers et al. (1998), indicated the number of companies an

executive will work for in a career has increased from three to five over the last 10 years.

For organizations, the cost of executive job jumping is very high. Development

Dimensions International’s (1999) focus group study of 110 executives and managers from

95 organizations found the average first year cost of a new senior executive to be in the

vicinity of $750,000 which included compensation, recruitment, selection, relocation, and

training and development.

The emotional impact of the terrorist attacks of September 11, 2001 and the recession

caused employees to feel more uncertain about their jobs and therefore job mobility

decreased. However, David Stum, president of Aon Consulting’s Loyalty Institute, predicted

that when the economy improves and September 11 is further behind us, “employees will

return to the job-hopping habits of the late 20th century” (Caudron, 2002, p. 36). Accenture’s

2004 workforce study validated this prediction; the executives who participated were

optimistic with regard to the economy the implication of which is that the war for talent will

intensify (Brakeley, Cheese, & Clinton, 2004). Anthony Carnevale, former Chairman of the

National Commission for Employment Policy stated “we are about to face a demographically

driven shortfall in labor that will make the late 1990s seem like a minor irritation” (Wall &

Aijala, 2006, p. 3).

22
 High potential talent is always in demand. In a study of 22 leading organizations in 11

industries conducted by Towers Perrin, one of the world’s largest management and human

resource consulting firms, 73% of the organizations indicated that although they have cut

staff in the last six months they continue to hire talented employees in the midst of

downsizing (Towers Perrin, 2002). Talented employees are an absolute necessity, as

leadership is becoming more demanding.

More Demanding Leadership

The more complex global economy requires more sophisticated leaders (Chambers, et

al., 1998; Bernthal, et al., 1999). Jobs for senior managers are more challenging than they

were 10 to 15 years ago (Basrie, 2002). Leaders need “global acumen, multicultural fluency,

technological literacy, entrepreneurial skills, and the ability to manage increasingly

delayered, disaggregated organizations” (Chambers, et al., 1998, p. 47).

In today's flattened and intensively competitive organizations, the competencies

required for success at senior levels demand individuals who can shape and articulate
vision and mission; build business relationships and partnerships; serve as effective
change agents; develop and articulate new business strategies–and guide their
execution; grasp technology; seize marketing and entrepreneurial opportunities; and
deal with persons and issues throughout the world. (Byham, 2000, p. 35)

The terrorist attacks of September 11, 2001 and subsequent threats and hostilities have

increased the skills needed by leaders. RHR International, a management-consulting firm,

outlined four newly important competencies for senior leadership to develop. Included are

mental agility, empathy, team leadership, and organization development (RHR International,

2001).

23
 1. Mental Agility. Agility of this sort is the ability to grasp complex, ill-defined
situations and rapidly learn from them.

2. Empathy. Being truly alert to how people think and feel, and to their impact on
others.

3. Team Leadership. Being skillful at creating high-performing teams, even when

some team members will be dealing with distracting uncertainties.

4. Organization Development. Knowing how to assess and mobilize entire

organizations to be wise and agile (a better metaphor than lean and mean) in the
face of great uncertainty. (RHR International, 2001, III. The Imperatives, ¶ 2)

As leadership has become more demanding it requires increased leadership

development and succession management and planning; however, organizations are not

keeping abreast of the demands.

Inadequate Leadership Development

Chambers, et al. (1998) posited that for the past 20 years executive talent has been the

most under managed corporate asset. According to Charan, Drotter, and Noel (2001), lack of

effective talent development is the most significant cause of the leadership crisis and dates

back to the late 1970s when organizations cut costs due to the increase in the price of oil and

the flood of imported goods made in other countries with cheaper labor. Then during the

1980s and 1990s, consolidation of organizations reduced inefficiencies by eliminating layers

and roles within organizations; however, many developmental opportunities for middle

managers were also eliminated (RHR International, 2002).

As developmental opportunities were eliminated, smaller incremental increases in

responsibilities were also eliminated. Byham, Smith & Pease (2002) described this as rungs

on a ladder. In traditional hierarchical organizations the rungs were closer together and it was

24
assumed excellent performance at one level would predict excellent performance at the next

level. As organizations became flatter the rungs became further apart, and therefore require

different competencies at each level. Thus managers must step into more demanding roles

with less preparation and with requirements for success very different at each rung, a

successful middle manager may not be a success at the senior management rung (Byham et

al.). In the traditional hierarchy, managers assisted subordinates to develop managerial skills;

however, in leaner organizations, employees are trying to do more with less leaving little

time for managers and leaders to assist subordinates with developing their skills. Therefore,

formal leadership development is imperative; however, many organizations are not

developing potential leaders.

In the Employee Development Survey Report conducted by the Society for Human

Resource Management and Catalyst, about two thirds of the 248 human resource

professionals who responded indicated that in their organizations employee development was

mostly informal (Esen & Collison, 2005). Research conducted by the Conference Board, an

independent membership organization which creates and disseminates knowledge regarding

management, concurs (Barrett & Beeson, 2002). Its survey of 150 organizations disclosed

that only 47% of the respondents strongly agree or agree that developing future leaders is a

major priority of their senior management and 26% disagree that it is a major priority. Also

only 34% of the respondents felt their organizations are effective at identifying future leaders

(Barrett & Beeson). A second Conference Board survey was conducted in the spring of 2003

with 730 global business leader participants followed by interviews of 18 CEOs. The survey

compared current management priorities with management priorities projected for 2008. This

25
survey indicated only 23.8% of the participants believed that developing and retaining

potential leaders is currently a top priority and 30.5% indicated it will be a priority in 2008

(Rudis, 2003). Additionally only 12.3% of the participants indicated that talent identification

and growth is currently important to their organization’s success, while 22.3% indicated it

will be a priority in 2008 (Rudis).

Similarly, Drake Beam Morin, a global human resources consulting firm, surveyed

200 human resource professionals in major metropolitan areas of North America. Ninety-four

percent indicated their organizations have not adequately prepared younger generations to

replace senior leaders (Drake Beam Morin, 2003). Leadership Forecast 2005/2006,

conducted by Development Dimensions International of 4,559 leaders and 944 human

resource representatives from 42 countries, indicated little improvement in leader

development over the 2003/2004 research (Bernthal & Wellins, 2004). Fifty-three percent of

the 2005/2006 respondents were satisfied with the development opportunities compared to

54% 2 years earlier. Only 47% believe “their organization provides them with all they need

to develop” (p. 14); however, when comparing the degree of satisfaction of the development

offerings between leadership levels, senior leaders were the most satisfied (Bernthal &

Wellins).

The Ken Blanchard Companies®, an international training and consulting firm,

conducted corporate issues surveys for the four years between 2003 and 2006 (The Ken

Blanchard Companies, 2006). A total of 2,044 training and HR leaders and line managers

from a variety of organizations, industries, and countries participated in the surveys. In all

four studies, the number one management challenge was developing potential leaders (The

26
Ken Blanchard Companies, 2006). Similarly, 65% of the 244 executives who participated in

an Accenture survey which spanned 15 industries identified developing effective leadership

capabilities as most important to address marketplace challenges; however, only 8% believed

they develop effective leaders (Brakeley et al., 2004). When these executives were asked to

describe their workforce skill level, only 17% felt they are industry leading, while just under

40% felt their workforce was equal to or worse than their competitors (Brakeley et al.).

When organizations can not prepare a sufficient number of leaders from within,

another option is to attract external high performers for executive leadership positions.

Attracting High Performers

In Accenture’s (2005) annual survey, Executive Issues 2005, of “more than 425

leaders of the largest companies and public sector entities around the world” (p. 5) the

number one issue was “attracting and retaining skilled staff” (p. 2). However, the 2005

Emerging Workforce® Study, conducted by Spherion®, a 60 year old recruiting and staffing

organization, indicated that less than one in five employers is in a position to attract and

retain new talent (Is your firm, 2006). The 2003 Leadership Forecast study of 1,572 leaders,

1,461 associates, and 117 human resource representatives from 14 countries indicated that

the scarcity of leadership talent remains a critical issue (Bernthal & Wellins, 2004). The

organizations in this study do not have a large pool of qualified candidates to fill leadership

vacancies. Seventy-eight percent indicated it is somewhat or very difficult to locate qualified

leadership candidates and 50% indicated that it will be more difficult or much more difficult

in the future (Bernthal & Wellins).

27
 Locating and developing high performers within the organization for leadership

positions is essential. However, succession planning and management is neglected by many

organizations.

Inadequate Succession Planning and Management

During a time of mergers, downsizing, reorganizations, and reengineering succession

planning has become a lost art (Byham, 2000). Although there is an obvious need for

succession planning, it is neglected by many companies (Greengard, 2001). The Conference

Board survey of 730 global business leaders indicated that only 9% of the respondents felt

that top management succession planning is currently important to organizational success

while 27.4% felt it will be important in 2008 (Rudis, 2003). Another survey conducted by the

National Association of Corporate Directors showed that 45% of organizations with revenue

over $500 million do not have a meaningful CEO succession plan (Charan, 2005).

Additionally, the Corporate Leadership Council survey of 276 large company human

resource executives found that only 20% “were satisfied with their top-management

succession processes” (Charan, p. 1). A Society for Human Resource Management (SHRM)

survey, of Human Resource professionals, indicated “that fewer than two out of ten

[organizations]… had succession plans in place for job titles ranging from vice president to

CEO” (Esen & Collison, 2005).

Rothwell (2001) noted that lack of succession planning has been a longstanding issue

for leadership positions lower in the organization as well. “Below many a corporation’s top

two or three positions, succession planning is often an informal, haphazard exercise where

28
longevity, luck, and being in the proverbial right place at the right time determines lines of

succession” (Rothwell, p. xx). According to Charan (2005) “the result of poor succession

planning is often poor performance, which translates into higher turnover and corporate

instability” (p. 1). In addition to lacking a succession plan, many organizations are not using

all talent resources.

Limited Source Recruitment

Corporate America is not recruiting leaders from all available sources. There has been

much talk regarding women making their way into top positions; however, research indicates

that they are still hugely under represented (Crainer and Dearlove, 1999). Meyerson and

Fletcher (2000) expressed similar concern regarding the lack of women in leadership

positions. Only 1.4% of Fortune 500 CEOs are women (Prime, 2005). The Catalyst 2005

Census of Women Corporate Officers and Top Earners in the Fortune 500 companies showed

women represented 16.4% of corporate officer positions, up 0.7% from 2002 (Joy, 2006a).

“At the estimated growth trend for the past ten years (0.82 percentage points per year), it will

take 40 years for women to reach parity with men in corporate officer ranks” (Joy, 2006a, p.

2). Catalyst research indicated that CEOs believe women need line experience; however, “of

the 6,428 total line corporate officer positions, only 9.9% are held by women” (Catalyst,

2002a, p. 2).

Many factors are contributing to the leadership crisis for which there are implications

to organizations.

29
 Implications of the Leadership Crisis

The implications of the leadership crisis are far reaching. First, organizations are in

danger of loosing the tremendous knowledge the retirees have acquired over their years of

employment. Michaels et al. (2001) posited that the war for talent has two profound

implications. The first being the shift of power from the organization to the individual and

the second being that excellent talent management dramatically impacts competitive

advantage.

Knowledge Loss

“Knowledge loss, often an unintended consequence of downsizing or retirements, can

be one of the costliest problems confronting organizations today. It is also one of the most

widely ignored” (De Long & Mann, 2003, p. 39). Bernthal and Wellins (2004) posited that

“the real danger to the growth and stability of organizations worldwide is the loss of

experienced leaders who have a significant body of knowledge about their organizations and

their industries” (p. 6). Research conducted by Accenture Institute for Strategic Change

identified the consequences of knowledge loss as compromised growth strategies, reduced

efficiency, costly errors, and lack of innovation (De Long & Mann) while Boath and Smith

(2004) contended that knowledge is a primary source of competitiveness and profitability. As

the baby boom generation retires and the war for talent renews, mission-critical knowledge,

which can not be captured by debriefing employees as they leave, needs to be captured prior

to the exit of leaders and managers.

30
 Knowledge in the business context is defined by Leonard and Sensiper (1998) as

“information that is relevant, actionable, and based at least partially on experience,” (p. 113).

According to Martz and Shepherd (2003), “knowledge cannot be understood without

understanding its relationship to data and information” (p. 42). Data are raw facts or

elementary descriptions which can be stored and classified; however, they are not organized

and do not convey any specific meaning. As data takes on specific meaning it becomes

information, whereas knowledge “is a product of inquiry concerning information” (Martz &

Shepherd, p. 42).

Knowledge can be explicit or tacit. Explicit knowledge is articulated in words and

numbers and shared in various modes of communication (Nonaka & Konno, 1998; Zach,

1999). Explicit knowledge such as procedure manuals, software, and product literature plays

a large roll in organizations, is an important factor in the knowledge economy (Zach), and

can be stored and formally and systematically transmitted between individuals (Nonaka &

Konno). It is unlikely organizations that have integrated knowledge management systems to

store and transmit information are at risk of loosing explicit knowledge when individuals

leave an organization. However, “an enormous amount of information and knowledge resides

in the minds … of key people, but this material is rarely organized in a fashion that allows

for its transmission to others” (Powell, 1998, p. 237).

The knowledge that resides in the minds of key people is referred to as tacit

knowledge, which is knowledge that “is subconsciously understood and applied, difficult to

articulate, developed from direct experience and action, and usually shared through highly

interactive conversation, storytelling, and shared experience” (Zach, 1999, p. 46). According

31
to Droege and Hoobler (2003), tacit knowledge is “intuitive, difficult to express, gained

through experience, and shared with others through interaction” (p. 52). Scholars and

business people who attended the First Annual U.C. Berkeley Forum on Knowledge and the

Firm felt that unlocking tacit knowledge

required a highly interactive social process between workers in a co-located, face-to-

face environment. The co-location factor was considered critical because much of the
tacit knowledge that is shared and exchanged is accomplished through direct first-
hand observation, interaction with others, subtle body language, and so on.
(Holtshouse, 1998, p. 277)

However, Holtshouse (1998) pointed out that business and economic forces are not allowing

this to happen as the number of mobile workers is increasing, which disrupts social

connections. Additionally, “outsourcing, partnering, alliances, and mergers are requiring new

work boundaries to be formed” (Holtshouse, p. 278). Thus the issue is how to provide tacit

knowledge exchange without face-to-face interaction or co-location. Complicating this

further is the problem that explicating tacit knowledge so it can be shared and reapplied, “is

one of the least understood aspects of knowledge management” (Zach , 1999, p. 47).

Shift of Power

Power has shifted from the organization to the individual. This shift of power has

resulted in individuals having greater career expectations. In the industrial age, machines,

capital, and geography comprised competitive advantage; however, in the information age

talented people assure competitive advantage. As organizations changed their mantra from

long-term job security and lifetime career development to market-based employment

transactions such as short-term contracts, temporary staffing, and outsourcing, loyalty

32
diminished, employees became mobile, and commitments short term. As job security

diminished expectations increased. Cappelli (1999) stated “while employers have quite

clearly broken the old deal and its long-term commitments, they do not control the new deal

… (p. 17). It is hard to see what could make employees give that control and responsibility

back to the employer” (p. 226). Additionally, as the younger generations enter the workforce

they bring a new dimension regarding work.

When the second half of generation X entered the work world an information

technology explosion was taking place which resulted in a lack of trained employees.

Organizations were willing to train those without a fear of computers, which generation X

was not. The information technology college graduates, referred to as gold-collar employees,

commanded large starting salaries, flexible hours, and work-life balance (Howe & Strauss,

1993; Randstad North America, 2000; Zemke, Raines, and Filipczak, 2000). Although the

gold-collar bubble burst, generation X continues to expect flexible hours, an informal work

environment, and work-life balance. The baby boom generation, having been the over

achievers, are feeling burned out and after the events of September 11, many are weighting

work-life balance and shifting from the 50 hour per week grind (Hatfield, 2002). They are

also sandwiched between growing children and aging parents and recognizing that they can

not do it all and need assistance to balance everyone else while striving to find meaning for

themselves. Generation Y is interested in balancing all their activities of which work is only

one (Lancaster & Stillman, 2002).

33
 Competitive Advantage

Excellent talent management dramatically impacts competitive advantage. The

McKinsey 2000 update study found that companies scoring in the top quintile of talent

management practices outperformed their industry’s mean return by 22% (Axelrod et al.,

2001). An interview survey conducted by Dorgan and Dowdy (2002) of 100 manufacturing

companies in France, Germany, the United Kingdom and the United States indicated,

“companies with the highest management scores outperformed their sector. The correlation

between a company’s management practices and its financial performance was significant

…” (p. 15). The results of a Human Capital Return on Investment (ROI) Study completed by

Deloitte and Touche (2002), a leading professional services organization, “suggests that

human capital practices may account for as much as 43% of the difference between a

company’s market-to-book value and its competitors” (p. 2). Deloitte and Touche defined

market-to-book value as “a ratio of enterprise market value divided by book value of assets.

This ratio represents the portion of a company’s total value not explained by or accounted for

by physical and financial assets” (p. 2).

Watson Wyatt Worldwide (2001), a Human Resource professional service

organization, conducted other Human Capital Index (HCI) studies. The first of three,

conducted in 1999, surveyed more that 400 United States and Canada-based publicly traded

organizations with a minimum of 3 years of shareholder returns and $100 million in revenue

or market value. Human resources practices questions were matched to objective financial

measures. To gain a global perspective a second survey was conducted in 2000 in Europe

with more than 250 organizations from 16 countries responding. The third survey conducted

34
in 2001, included 500 North American companies. The results of all three HCI studies were

the same: the better an organization does at managing human capital, the better its returns for

shareholders. A summary of the HCI scores indicated the organizations with low HCI scores

averaged a 21% return over 5 years. The medium group averaged 39% and the high HCI

scoring organizations returned 64% over 5 years (Watson Wyatt Worldwide).

Other factors also drive return on investment and financial performance; however, it

is evident that talent management and financial performance are related and that leadership is

responsible for talent management.

The impending leadership crisis will affect all organizations regardless of size or

sector. There are several ways in which organizations can prepare prior to the crisis.

Preparation for the Leadership Crisis

Although the literature regarding the leadership crisis appears daunting, organizations

can prepare for it by implementing short and long term solutions. In the short term,

organizations can work with potential retirees to delay their retirement, re-hire retired

employees, and attract new workers age 50 and older.

Short Term Solutions

Delaying Retirement

Retirement is a difficult decision for most people and many would prefer to continue

working past the traditional retirement age at least on a part time basis (Feinsod, Davenport,

35
& Arthurs, 2005). Medical science has increased life expectancy which is now roughly 15

years higher than it was when 65 was established as the social security program age and it

appears life expectancy will continue to increase (Cappelli, 2005). At today's rate, by 2075

"average US life expectancy is projected to reach 87" (Srikanth, Benton, & Herrera, 2005, p.

2). Wellner (2002) cited a poll conducted by the institute and research firm Zogby

International, which found that of the baby boomers who plan to work in retirement, 71%

prefer to work part-time. The Center on Aging and Work/Workplace Flexibility at Boston

College and the Families and Work Institute’s research indicated that having control of their

hours, being able to exercise autonomy, and finding opportunities to learn are important to

retaining age 50+ employees (Older workers seek flexibility, 2005). Therefore, to retain

retirement age knowledge workers organizations will need to implement flexible phased

retirement, which may include part-time work, reshaping jobs, telecommuting, part-time

consulting assignments, job sharing, flexible scheduling, extended time off, and sabbaticals

(Byham, 2000; De Long, 2002; Wellner, 2002). Cappelli (2005) posited that there will not be

a shortage of workers if older employees remain working while the American Association for

Retired Personnel (AARP) research indicated that some organizations may be able to avoid

the labor crunch if today’s 50+ workers continue working beyond the age at which previous

generations retired (Feinsod, et al.).

However, developing phased retirement options have legal implications. "Employers

that offer benefit programs must comply with three complex statutes - the Employee

Retirement Income Security ACT (ERISA), the Age Discrimination in Employment Act

(ADEA), and the Tax Code - plus their own defined benefit plan provisions" ( Morton,

36
Foster, & Sedlar, 2005, p. 18). ERISA requires that all employees be treated uniformly

therefore restricting key individuals whose knowledge needs to be retained from special

arrangements. "The ADEA requires benefit rules that do not discriminate against mature

workers" (Morton et al., p. 19). The Internal Revenue Service (IRS) has assisted phased

retirement by proposing to ease the Tax Code to allow workers "59 1/2 to draw a partial

pension and hold a part-time job with the same employer" (Morton et al., p. 19).

Re-hire Retired Employees

Another option is to re-hire former employees who have retired. “The facts are, it

costs half as much to rehire an ex-employee as it does to hire a brand new person; rehires are

40% more productive in their first quarter at work; and they tend to stay in the job longer”

(Sertoglu & Berkowitch, 2002, p. 2). Organizations are implementing alumni networks

which internal recruiters use to identify job candidates; sourcing from the alumni network is

less costly than sourcing prospects cold (Zimmerman, 2006). The networks are also used as a

communication tool and a business development channel. Again however, rehiring has tax,

pension plan, and healthcare benefits implications which organizations need to be aware of.

Organizations can also bring retired people back as contractors and consultants to capitalize

on the knowledge they alone possess (De Long, 2002); however, this too has tax

implications.

37
Attract New Age 50+ Employees

Individuals who have retired from other organizations may be interested in working

in an organization that is friendly to older workers. Organizations that are hesitant to hire age

50+ managers state the reason as financial; however, Towers Perrin’s research indicated that

the largest component of compensation is cash compensation and “is driven chiefly by the

employee’s skills, responsibilities and individual contribution, rather than age” (Feinsod et

al., 2005, p. 18). Towers Perrin’s data also indicated that “older workers are more motivated

to exceed expectations on the job than their younger counterparts are” (Feinsod, et al., p. 11).

Although these solutions will assist organizations in the short term, older employees

will need to be replaced; therefore, organizations also need to develop long term solutions.

Long Term Solutions

Short term actions are vital to short-term survival; however, a holistic, comprehensive

approach is needed for long-term sustainability (Srikanth, Benton, & Herrera, 2005). The

first step is to know where “the critical talent lies and how to manage it” (Deloitte, 2005, p.

2). To determine where the talent lies, organizations may conduct a situation analysis

(Rappaport et al., 2003; Srikanth et al., 2005) as part of their talent management process.

Although the focus of talent management is to increase work place productivity, talent

management processes for attracting, retaining, and utilizing employees are strategies that go

hand in hand with succession planning. However, succession planning and management

include employee development and is more comprehensive.

38
Attracting Leaders

When attracting leaders, the compatibility or fit between the organization and the

employee is critical (Lockwood, 2006) so organizational culture is a major consideration.

New people bring fresh attitudes, new perspectives, and new ideas to an organization

(Michaels, Handfield-Jones, & Axelrod, 2001, p. 72). Michaels et al. recommend filling

about 20% of the non-CEO positions from outside the organization. While searching outside,

“the best companies use a wide variety of sources, but most of these companies recognize the

necessity of looking for people who are representative of both the evolving labor market and

future customers” (Martel, 2002, p. 101). When recruiting from external sources, the

reputation of the organization and a strong brand assist to attract top talent. According to

Mathis and Jackson (2006) “to become an ‘employer of choice’ for excellent job candidates,

companies find that it is advantageous to have a recognized ‘brand’ or identity” (p. 193).

Organizations which are regularly listed in Fortune magazine’s “100 Best Companies to

Work For” have been successful in establishing a brand image which assists with recruitment

(Mathis & Jackson).

Another effective strategy for external recruiting is to tap into a specific labor pool

such as women who are reentering the work world after childbearing years (Lockwood,

2006; Tucker, Kao, & Verma, 2005). Women who have been in leadership positions and

choose to stay at home with young children frequently volunteer with non-profit

organizations serving on boards of directors, leading fundraising activities, and other

functions. These activities keep their leadership skills honed and ready for reentry into the

work world. Employment agencies, headhunters, and media sources are also used to locate

39
external executives. Luecke (2002) suggests establishing internships and partnerships with

colleges, universities, and community organizations as a source to enhance the pipeline.

Hiring from the outside has negative consequences as well. Studies have shown a 40

to 50% failure rate for executives hired from outside the organization (Byham, 2000) and

considering the high cost of an executive search as well as the organizational turmoil and the

time it takes for an executive to acclimate; this alternative must be approached cautiously.

Developing internal candidates is imperative and is discussed in the succession planning and

management section of this paper. After attracting high performance employees, retention

becomes a priority.

Retaining Leaders

Retention is a high priority. The Center for Creative Leadership conducted surveys as

part of its Emerging Leaders Research Project (Bryson & McKenna, 2002). Three hundred

participants were randomly selected from a variety of organizations and industries. The

retention themes that emerged included fair compensation, challenging work, support,

opportunities for advancement, receiving recognition, values, and organizational success

(Bryson & McKenna). Gunsauley (2001) posited that the employees who are the most likely

to leave an organization are the high performers with the marketable skills; therefore,

organizations need to identify the most critical employees, prioritize retention efforts, and

focus retention efforts on these employees. “A frequently cited cause of turnover is the

feeling that good employees are carrying the load for their low-performing peers”

(Gunsauley, p. 11). In their research on what it takes to build a pool of great managerial

40
talent, Axelrod, Hanfield-Jones, and Michaels et al. (2002) “observed that, as much as an

organization’s success depends on the careful management of A and B performers, it also

depends on the pruning of C performers” (p. 82). Axelrod et al. “found that high-performing

companies are 33% more likely to take deliberate action on C performers than average-

performing companies are” (p. 82). Retention not only involves motivating and retaining

employees but also dealing with low performing employees.

Acquisition and retention are important talent management strategies; however,

organizations need to go beyond talent management to compete in the talent war. According

to Guenther (2004) organizations increasingly view retention of high-potential leaders as

going hand in hand with succession planning.

Succession Planning and Management

“The pursuit of leadership bench strength is not a race for talent. It is a steady,

ongoing labor that requires discipline, decisiveness, and responsible risk-taking” (Kesler,

2002, p. 32). As organizations face the retirement of senior executives as well as the

increasing value of intellectual capital and knowledge management, it is more important than

ever before to plan for leadership continuity at all levels (Rothwell, 2001). Although this can

be a daunting undertaking, the September 11, 2001 attacks on the World Trade Center twin

towers and the Pentagon brought succession planning and management to the forefront. As

organizations faced the sobering fact that they had lost key executives, key talent, and

brainpower which left gaping holes in their management structure, it is not surprising that

organizations are now taking a closer look at succession planning and management

41
(Greengard, 2001). However, the succession planning techniques and procedures used

previously are obsolete, inappropriate, and no longer effective in today’s unpredictable

environment (Beeson, 2000; Karaevli & Hall, 2003). Traditionally, succession planning

involved moving people through positions on the organizational chart. In a stable economy

organizations could tell employees where their careers would be in 15 years if they achieved

various goals and objectives (Caudron, 1999). In today’s volatile economy, organizations

have difficulty forecasting where they will be in 5 years much less determining what kind of

executive positions and leadership will be needed (Caudron). It is time to revisit, rethink and

perhaps reengineer succession planning and management (Rothwell).

To establish a successful succession planning and management system, senior level

commitment is essential (Fulmer & Conger, 2004; Kesler, 2002; Rothwell, 2001). “Led by

the CEO, top executives must establish and implement a set of principles and philosophies

that serve the overall interests of the company and directly confront political dynamics that

undercut effective collaboration on the company’s talent agenda” (Berke, 2005, p. 43).

Verbal support is not sufficient; the CEO and executive team must be enthusiastic champions

(Fulmer & Conger). Rothwell’s Life Cycle of Succession Planning and Management

Program: Five Generations model begins with the CEO and works down through the

organization thus insuring that the CEO and executive team are involved from the start.

Although senior level positions are key to an organization’s success, “the entire

management structure determines how a company acts and reacts to industry conditions and

global events” (Greengard, 2001, p. 36). According to Rothwell,

succession planning and management should support strategic planning and strategic
thinking and should provide an essential starting point for management and employee

42
 development programs. Without it, organizations will have difficulty maintaining
leadership continuity – or identifying appropriate leaders when a change in business
strategy is necessary. (p. xxi)

Mathis and Jackson (2006) also stress the importance of including issues that affect

human resources, such as succession management, in the strategy formulation processes

while research of three organizations with strong succession management systems conducted

by Conger and Fulmer (2003) indicated that combining succession planning and leadership

development led to deep and enduring bench strength. They also note that succession

planning generally focuses on upper management and leadership development begins with

middle management. The Acceleration Pool model developed by Byham et al. (2002)

identifies high potential candidates throughout the organization and develops them through

stretch jobs and task force assignments. Based on research initially completed by Walter

Mahler called Critical Career Crossroads, Charan, Drotter, and Noel (2001) designed the

Leadership Pipeline model around “the natural hierarchy of work that exists in most

organizations” (p.6) in which different leadership skills are needed at different management

levels. Development at one level leads to the next level beginning with self management and

ending with enterprise management. The Acceleration Pool, Leadership Pipeline, and Critical

Career Crossroads models enable employees to track how they are progressing. Conger and

Fulmer support this change from the traditional succession planning systems, which have

been shrouded in secrecy, to a transparent succession management system. Transparency “is

not just about being honest” (p. 81) it also assists participants to know what they need to do

to reach the next level (Conger & Fulmer).

43
 These models are successful only if appropriate talent is identified. At the core of

succession management is the identification of talent with future potential. “The point of

differentiating future potential is to allocate scarce development resources to the targets that

are likely to bear the most fruit” (Kesler, 2002, p. 40). However, identification of talent

requires skill. Historically, performance outcomes were used for identification purposes;

however, they were often inaccurate as high performance at one level does not guarantee

high performance at another level (Fulmer & Conger, 2004). Potential for advancement or

potential for development is now considered to be a more accurate assessment strategy for

which competencies are developed. Because leadership is one of the most important

proficiencies for senior managers, leadership competencies have been added to assessments;

however, the trend is to simplify to a set of core competencies (Fulmer & Conger). Karaevli

and Hall (2003) note that a core set of competencies are beneficial for a leadership

practitioner with the major focus on “learning how to learn.” The core set of competencies

form the basis for professional development and performance management (Fulmer &

Conger).

Research completed by the American Productivity and Quality Center, “a consortium

focused on identifying business best practices and innovative methods of transferring those

practices” (Fulmer & Conger, 2004, p. x), “found four major common factors in how best

practice organizations engage their current and future leaders in developmental activities” (p.

84). The first most important developmental activity is job assignments/work experience.

The organizations assign jobs that will assist people to grow and develop their potential.

These assignments stretch or over stretch the candidates. Secondly, they use developmental

44
activities such as “mentoring, coaching, job rotation, traditional educational programs, and

formalized feedback processes” (Fulmer & Conger, p. 85). These organizations are also

trying some of the newer approaches to development which include “special assignments,

action learning, and Web-based educational activities” (p. 85). Finally, Fulmer and Conger

found “that computer-based technology has expanded their ability to effectively monitor

developmental activities (p. 86).

The impending leadership crisis can negatively affect organizations; however,

adequate preparation will assist organizations to withstand the crisis. Although research

regarding the preparation of more women for executive leadership positions as a solution is

not available, research has indicated that women are capable leaders. A sample of this

research is discussed.

Women in Leadership

The demographics worldwide are changing as women enter the workforce in greater

numbers than ever before. In the United States more than half of all women are employed

outside the home and in the future “half the people entering the workforce are expected to be

women” (Bennett, 2002, p. 157). As more women enter the workforce, more are also

becoming leaders and managers; according to recent Catalyst research, 50% of managers and

professional positions are held by women (Prime, 2005). However, few women have reached

senior leadership positions; only 1.4% of Fortune 500 CEOs are women (Prime). Therefore,

research regarding women as leaders and managers has evolved. Indvik (2001) noted that

early research concentrated on the question of whether or not women could be leaders.

45
Research regarding women leaders in corporations answered this affirmatively. Women have

also proven they are very capable leaders of their own organizations as evidenced by the

increase in women owned businesses. According to the Center for Women's Business

Research (2004), the number of businesses in which women own 50% or more is increasing

at nearly twice the rate of all organizations (17% vs. 9%). More dramatic is the increase in

employment by women-owned businesses – “24% compared to 12% for all firms” (Center

for Women’s Business Research, 2004, p. 1). Research conducted by Christenson Hutchison

McDowell Partners International LLC., Right Management Consultants, and the Women’s

Global Business Alliance indicated that a larger number of women than men have become

entrepreneurs. The women cited “the ability to control their destiny, a flexible schedule, and

a chance to realize a dream” as reasons (Anderson, 2003, p. 2).

After proving women to be capable of leading, research shifted to how women lead

and whether men and women differ in their leadership behavior and effectiveness. Because

few women have reached top leadership positions, recent research has been expanded to

include why more women have not reached top positions as well as what can be done to

assist women to reach executive positions (Indvik, 2001). Research regarding these issues is

discussed.

Women and Men as Leaders

There is an ongoing debate regarding female and male differences in leadership

behavior and effectiveness. Daly (1995) posited that there are two perspectives,

psychological theories and situational theories. The psychological perspective suggests that

46
women differ from men in their approach to management and leadership. According to Daly

“psychological theories emphasize the differences in outlook, attitudes, and values inculcated

in men and women during their development and socialization” (p. 1). In contrast, the

situational perspective argues that when men and women are in similar situations with

analogous expectations they behave similarly. “Situational theories argue that gender

differences are few and largely an artifact of difference in opportunity, power, and lack of

representation in business and organizational settings” (Daly, p. 1). Although gender related

expectations lead to gender biases and stereotyping, which are inherent in research settings

and leadership questionnaires, numerous studies have been conducted attempting to prove the

two perspectives regarding gender behavior and effectiveness. A small representation of the

research is discussed.

Klenke (1996) reported that studies conducted prior to 1980 claimed significant

differences in the leadership style of men and women; however, research findings in the

1980s and early 1990s indicated small or insignificant differences. More recent research is

again identifying gender differences in leadership style. Although some of the research

discrepancies can be attributed to methodology, the differences may also be related to the

position (self, boss, peer, direct report) of the individuals participating in the research. The

large number of studies done to compare male and female leaders has allowed other

researchers to conduct meta-analysis.

Eagly and Johnson (2000), in a meta-analysis, analyzed 162 studies of male and

female leadership styles. They did not address methodological issues but rather “included all

47
measures that researchers regarded as assessing task-oriented and interpersonally oriented

styles or autocratic versus democratic style” (Eagly & Johnson, p. 52).

The results showed little evidence that men and women differed in their interpersonal
style or task style. However, on measures that assessed tendencies to be democratic
versus autocratic or participative versus directive, men were more autocratic or
directive than women, and women were more democratic or participative than men.
(Eagly & Johnson, 2000, p. 54)

The studies were divided into three main classes: organizational, assessment, and laboratory

with the results in each class somewhat different.

The absence of sex differences for task and interpersonal style that appeared in our
analysis averaged over all the studies was limited to the organizational studies. In
contrast, in the laboratory studies, and to some extent in the assessment studies, men
and women did have stereotypic styles, with men appearing more task oriented and
women more interpersonally oriented. However, the tendency for women to be more
participative and democratic than men was intact in all three classes of studies,
including the organizational. (Eagly & Johnson, 2000, p. 54)

In addition Eagly and Johnson (2000) caution that the women's democratic and

participative style should not be construed as either an advantage or disadvantage as the

effectiveness of leadership style is contingent on the group or organizational environment.

Rosener (1990) posited that first generation managerial women adhered to the "rules

of conduct" that were successful for men while second generation managerial women are

breaking that mold and are succeeding by using characteristics generally considered to be

"feminine" and inappropriate in leaders. In a survey sponsored by the International Women's

Forum, Rosener found differences in how men and women describe their leadership

performance and how they influence those with whom they work. Men described themselves

as transactional leaders. "That is they view job performance as a series of transactions with

subordinates – exchanging rewards for services rendered or punishment for inadequate

48
performance" (Rosener, p. 4). Men also indicated they use the power that comes from their

organizational position and authority. The women respondents described themselves as

transformational leaders – "getting the group to transform their own self-interest into the

interest of the group through concern for a broader goal" (Rosener, p. 4). They also align

their personal characteristics with charisma, interpersonal skills, hard work, or personal

contacts rather than organizational stature as the males did (Rosener).

Eagly, Johannesen-Schmidt, & van Engen’s (2003) meta-analysis of 45 studies

regarding transformational, transactional, and laissez-faire leadership styles concurred as did

Eagly and Johannesen-Schmidt’s (2001) analysis of a large sample of female and male

leaders who had been assembled to establish the norms for the Multifactor Leadership

Questionnaire which measures transformational, transactional, and laissez-faire styles.

Female leaders were more transformational than male leaders. “Women also exceeded men

on the transactional scale of contingent reward” suggesting that women, more than men,

“gave their followers rewards for good performance (Eagly & Johannesen-Schmidt, p. 791).

“In contrast, men exceeded the women on the transactional scales of active management-by

exception and passive management-by-exception and on laissez-faire leadership” (Eagly &

Johannesen-Schmidt, p. 793).

In an attempt to increase the validity and generalizability of research findings,

Kabacoff (1998a; 1998b) utilized a data archive of over 150,000 Leadership Effective

Analysis™ (LEA) questionnaires gathered from 143 North American companies. From the

data archive, 900 male and 900 female managers were selected that could be matched on

organization, management level, job function, and management experience. The 1800

49
represented a highly diverse group, selected from 46 United States (US) states, 6 Canadian

provinces, and a wide range of industries and management levels. The LEA was a 360-

degree evaluation that included a self-evaluation and an observer version. Each of the 1800

managers completed the self-evaluation and was evaluated by an average of one boss, four

peers, and four direct reports. The results indicated that male and female managers were

perceived to differ in leadership practices and behaviors. All four groups, self, boss, peers

and direct reports, perceived the differences similarly. However, findings in previous studies

that women are more democratic and men more task-oriented were not supported (Kabacoff,

1998a; Kabacoff, 1998b). The results indicated that:

1. Women scored higher on leadership scales measuring an orientation toward

production and the attainment of results.

2. Men scored higher on scales assessing an orientation towards strategic planning

and organizational vision.

3. Women were seen as operating with more energy, intensity, and emotional
expression, and a greater capacity to keep others enthusiastic and involved. Men
were seen as more likely to maintain a low-key, understated and quiet interpersonal
demeanor through the control of emotional expression.

4. Women were rated higher on people-oriented leadership skills, while men were
rated higher on business-oriented leadership skills.

5. Bosses saw men and women as equally effective overall. Peers and direct reports
rated women slightly higher than men. (Kabacoff, 1998a; Kabacoff, 1998b).

Using the same method, 360-degree evaluation, Kabacoff (2000) conducted a study

of senior level executives. The participants consisted of 13 male and 13 female CEOs and 73

male and 73 female Senior Vice Presidents in 88 North American companies. "Male and

female senior executives were matched on type of industry, years of management experience,

50
and organization level" (p. 1). Several differences in leadership behavior/styles were

observed between the male and female senior executives.

All four groups (self, boss, peer, and direct reports) described male senior executives
as more restrained in emotional expression. Direct reports described female senior
executives as more likely to set deadlines and monitor progress to ensure the
completion of activities. In addition bosses describe female senior executives as more
assertive and competitive in their approach to achieving goals, and more inclined to
let others know directly what they think of them and how well they are meeting
expectations. Bosses and direct reports described male senior executives as more
traditional in their approach to problems, emphasizing the minimization of risk and
learning from past experience. Finally, direct reports described female senior
executives as setting higher expectations for performance for both themselves and
others. (Kabacoff, 2000, pp. 3-4)

Several notable differential correlations were obtained from ratings provided by

bosses. Specifically, focusing on short-range, hands-on, practical strategies, and employing a

forceful, assertive, and competitive approach to achieving results were seen as positively

related to leadership effectiveness for male senior executives and disadvantageous for female

senior executives. Accommodating the needs of others and demonstrating an active concern

for other people were seen as positively rated to leadership effectiveness for female senior

executives and disadvantageous for male senior executives. Male executives also were seen

to exert influence by seeking out positions of authority while female executives did not.

These correlations suggest a traditional sex-role stereotyping by these bosses of senior

executives. “Despite differences in rated behaviors and differential correlations between

behaviors and effectiveness, no differences in perceived leadership effectiveness were

obtained when comparing male and female executives through boss, peer, or direct report

ratings” (Kabacoff, 2000, p. 4).

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 Indvik (2001) discussed three recent studies: (a) Advanced Teamware, Inc., (b)

Saville and Holdsworth, and (c) Lawrence A. Pfaff and Associates. In the study conducted by

Advanced Teamware, Inc., 6000 bosses, peers, subordinates, and others completed

questionnaires about 915 middle to senior level managers and supervisors in large

corporations. Thirty-one areas were examined and women out performed men in 28,

"including conflict resolution, work quality, adaptation to change, productivity, idea

generation, and motivation of others. Men handled pressure and coped with their own

frustrations better than women did, while both groups scored equally on delegating authority"

(Indvik, p. 223).

Saville and Holdsworth, a consulting firm in New Zealand, conducted a study with

3,000 managers (Indvik, 2001). There were 30 attributes measured and on many there were

no differences between male and female managers. However, the results indicated that

women emphasized an empathic approach to leadership as well as planning and organizing

work. Women also placed less emphasis on having to win at all costs (Indvik).

Lawrence A. Pfaff and Associates conducted the third study in which 1,000

managers' bosses and employees evaluated the managers’ performance (Indvik, 2001). There

was no significant difference in some performance categories, however "in the 20 categories

reflecting a statistically significant difference, women received higher scores from their

bosses and employees" (Indvik, p. 223).

Similar findings were compiled by Turknett Leadership Group’s (2000) research in

which female managers rated higher than males on 25 of 47 managerial and leadership

competencies and equal to males on 21 of 47. In a study by Hagberg Consulting, a leadership

52
development and consulting firm, of 425 high-level executives, women managers were rated

higher than the male managers in 42 out of 52 skills measured (Wells, 2001). In a similar

study using 360-degree feedback, given to 58,000 managers by the human resource and

management-consulting firm Personnel Decisions International Corporation, the findings

showed that in 20 of 23 management areas women scored higher than men (Wells).

An analysis of the research indicates that although Klenke (1996) posited that

research findings in the early 1990s indicated small or insignificant differences between male

and female leadership styles, research conducted in the later 1990s and early 2000s indicated

differences. The difficulty of accurately studying gender differences in leadership as well as

problems with early research methodology may have contributed to the change. Kabacoff

(1998a) listed several methodological problems that seriously limited the early studies

usefulness and generalizability. They include:

1. The use of small numbers of participants (limiting generalizability).

2. Narrow definitions of leadership (oversimplifying the subject matter).

3. Reliance on self-report data (people often do not see themselves as others see
them).

4. Use of subjects who are not in current leadership roles (e.g., trying to infer gender
differences in organizational leadership from experiments on college students).

5. And uncontrolled differences between groups (often the men and women being
compared differ with regard to job function, position within the organization, job
experience, and type of organizational culture). When differences are found, it is
unclear whether they are gender differences per se, or a reflection of these
organizational differences. This is perhaps the most serious limitation of most
studies. (Kabacoff, 1998a, p. 1)

The studies conducted by Kabacoff (1998a, 1998b, 2000) and Advanced Teamware, Inc.

(Indvik, 2001) have increased the validity and generalizability by increasing the number of

53
participants, the positions of the participants (self, boss, peers, direct reports/subordinates),

and by better matching the organization, management level, job function and management

experience. Technological advancements have positively contributed to this increase as well.

Gender leadership research findings provide information regarding the differences

and similarities of male and female leaders; however, they do not tell us why they differ.

Therefore, explanations for their existence are purely speculative particularly because the

results of the research are diverse. First, it should be noted that all studies indicate that there

is not a significant perceived difference between middle and upper level males and females in

their general effectiveness, although peers and direct reports did rate female managers as

slightly more effective. The significant differences were in how they lead. Also, although

there are some similarities between senior executives and middle and upper level managers,

there are also differences. At the middle and upper management level the female results

orientation versus male vision orientation may suggest that in rapidly changing organizations

females are less secure or more vulnerable, therefore they concentrate on achieving results in

an effort to secure their position. Men may feel greater flexibility to spend their time in

visioning and strategic planning activities. The two areas, which may be stereotypic, are the

perceptions that male managers are more business orientated and female managers more

energetic and emotionally expressive (Kabacoff, 1998a, 1998b).

The differences in male and female leadership behaviors found in senior executives

and CEOs were small and fewer than those found in the general population of middle and

upper managers. Kabacoff (2000) posited that as individuals move up the corporate ladder,

“role requirements of senior positions limit the range of demonstrated behaviors.

54
Additionally, it is likely that a selection process occurs that identifies individuals as

candidates for senior positions that demonstrate a more specific and homogeneous repertoire

of required behaviors” (Kabacoff, 2000, p. 4). The Kabacoff (2000) study suggested “a

pronounced sex-role stereotyping along traditional lines on the part of these bosses” (p. 4).

Catalyst research indicated the same; when women leaders were asked the reasons keeping

them from the top jobs, they indicated gender stereotypes (Prime, 2005).

The findings highlight a need for further investigation of gender stereotyping

particularly at the most senior (board of directors and CEO) levels but also at lower levels of

organizations. “They also reinforce the notion of multiple constituencies and the need for

senior executives to understand the differing expectations that their boss, peers, and direct

reports bring to interactions” (Kabacoff, 2000, p. 4). Finally, considering that both genders

were perceived to be equal in overall effectiveness, it is prudent to research why so few

women leaders reach the top.

Few Women Leaders Reach the Top

Although the most recent census completed by Catalyst (Joy, 2006a) shows an

increase in women corporate officers, the process has been slow and women are still under

represented. In the 2005 Catalyst Census, 16.4% of corporate officers in the Fortune 500

were women, which equates to 1,783 of 10,873 corporate office positions. Between 1995 and

2005 women held corporate officer positions “grew at an estimated trend of .82 percentage

points per year” (Joy, 2006a, p. 7). At this rate it will take 40 years for women corporate

officers to equal men corporate officers. Men executives continue to earn higher salaries as

55
well; women held only 6.4% of the top earner positions (Joy, 2006a).There are also fewer

women on boards of directors. According to the 2005 Catalyst Census of Women Board

Directors of the Fortune 500, 14.7% of the board seats are held by women (Joy, 2006b). “At

the current average growth rate of one-half of a percentage point per year, it will take 70

years for women to reach parity with men on Fortune 500 boards” (Joy, 2006b, p. 1).

The slow progress has been attributed to the glass ceiling. According to Cutter,

Hermsen, Ovadia, and Vanneman (2001) there has been “a proliferation of different

understandings of what constitutes a glass ceiling” (p. 671). Research conducted by Cutter et

al. concluded that the glass ceiling appears to be a distinctively gender phenomenon.

Therefore, the glass ceiling is defined as an invisible barrier to the advancement of women

based on attitudinal or organizational bias (Federal Glass Ceiling Commission, 1995;

Morrison, 1987; Ragins, Townsend, & Mattis, 1998;). The Federal Glass Ceiling

Commission (1995a) was created as part of the Civil Rights Act of 1991. It consisted of a 21

member bipartisan commission and was established to study and make recommendations,

which may eliminate the barriers minorities and women experience when attempting to

advance into management and decision-making positions in the private sector (U.S.

Department of Labor Office of Public Affairs Washington D.C., 1995). The Federal Glass

Ceiling Commission identified three levels of barriers: societal barriers, internal structural

barriers, and governmental barriers. Research conducted regarding each level of barrier is

discussed beginning with societal barriers.

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Societal Barriers

The Federal Glass Ceiling Commission (1995a) noted that societal barriers are those,

which may be outside the direct control of business and include supply barriers and

difference barriers. Supply barriers are related to educational opportunities and attainment.

Although business can be a strong supporter of education, education is not within the direct

purview of business. However, corporate leadership can be a strong advocate for education

by participating in internships and providing scholarship dollars (Federal Glass Ceiling

Commission, 1995a).

Difference barriers relate to conscious or unconscious stereotyping, prejudice, and

bias related to gender; “it’s about the roles women – all women regardless of color or

ethnicity – are expected to fill” (Federal Glass Ceiling Commission, 1995a, p. 28). Indvik

(2001) refers to difference barriers as interpersonal barriers, which are obstacles that occur in

working relationships. Interviews conducted by Morrison (1992) with 196 leaders identified

prejudice as the single most frequently mentioned barrier to women’s advancement.

“Prejudice consists of unfair evaluation of a group of people based on stereotypical

judgments of the group rather than the behavior or qualifications of its individual members”

(Eagly & Carli, 2003, p. 818). Prejudice in leadership is the assumption (without evidence)

that nontraditional leaders such as female executives are less competent or suitable than

white males (Morrison). The Catalyst 2005 research indicated that “gender-based

stereotyping is alive and well in business – men AND women do it” (Prime, 2005, p. 4).

Senior leaders appear to still apply the old stereotypes in corporate leadership; “women take

care, men take charge” (Prime, p. 4). The Catalyst study indicated that men stereotype

57
women leaders as poor problem-solvers which may undermine women’s power to motivate

followers. Heilman (2001) posited that stereotyping can affect evaluations.

Gender stereotypes and the expectations they produce about both what women are
like (descriptive) and how they should behave (prescriptive) can result in
devaluation of their performance, denial of credit to them for their successes, or
their penalization for being competent. Because of gender bias and the way in which
it influences evaluations in the work setting, … being competent does not ensure that
a woman will advance to the same organizational level as an equivalently performing
man. (Heilman, 2001, p. 657)

Prime noted that hiring more women into leadership positions will not eliminate the

stereotypes. Rather, “organizations must take proactive steps to eradicate stereotypic bias”

(Prime, p. 4).

Several personal barriers to women leaders’ advancement have been identified.

Indvik (2001) defines personal barriers as elements of personal lives “or a lack of knowledge

that may be an obstacle” (p. 229). The most frequently cited barrier is the issue of time as

related to non-work obligations such as household management and child rearing (O'Connor,

2000). Even when both men and women hold professional jobs, women are designated as the

family managers (WFD Consulting, 1999). WFD, a consulting and research firm, conducted

a study of 750,000 employees at over 25 companies and found that exempt women work an

extra day each week, 46 hours of work and 25 hours on household tasks while men work 48

hours and have 15 hours of household tasks (Johnson & Roper, 2002; WFD Consulting,

2002). Research also indicated that having a spouse or partner not employed outside the

home positively affects career advancement. The WFD Consulting study also found that

among married exempt workers 76% of the women’s spouses worked full time in

comparison to 40% of men’s spouses (Johnson & Roper; WFD Consulting, 2002). Wells

58
(2001) noted that “among the top five women on last year’s Fortune list of the ‘50 Most

Powerful Women in Business,’ four have husbands who don’t work” (p. 46).

Career interruption is another factor affecting women’s careers as women tend to

leave and re-enter the workforce more frequently than men. Child bearing requires an

interruption as may child rearing and research indicated that women are more likely to be

responsible for elder care as well (Wells, 2001). These interruptions affect career

advancement and pay as women who leave lose seniority and their job skills may get rusty as

well. Employers may also view gaps in work history negatively and be cautious that women

who have gaps may leave again (Wells). Part-time jobs and flexible schedules are

alternatives to leaving the workforce completely; however, part-time jobs are frequently

lower level and there may be a stigma attached to flexible schedules (Pfeil, 2002). With

demands from work and home, women may experience burnout. The highest levels of

burnout are recorded at mid-career when women are also most likely to be identified as

candidates for top leadership positions (WFD Consulting, 1999).

Women can also create barriers for themselves. Research conducted by Hagberg

Consulting Group suggested that women are “reluctant to take risks without having covered

all the bases, which can hinder them from being given the high-risk assignments that offer

visibility and upward mobility” (Wells, 2001, p. 49). A survey of 293 marketing managers

(144 men; 149 women) by Copernicus Marketing Consulting (as reported by Wells) also

found that men are perceived to be more risk-oriented than women. The Hagberg study also

found that women could become mired down in details by taking too much responsibility

with concern for the team (Wells). In research conducted by Turknett Leadership Group

59
(2000) women scored higher than men on 25 of 47 managerial and leadership competencies

and equal to men on 21 of the 47. The one in which women scored lower in was self-esteem

(Turknett Leadership Group). Women tend to underestimate their abilities; for women to

reach the top they must believe they can do so (Gutner, 2002). In addition to interpersonal

and personal barriers to women’s advancement, there are also structural barriers within

organizations.

Structural Barriers

The Federal Glass Ceiling Commission (1995a) defined internal structural barriers as

those within the direct control of business. Indvik (2001) referred to these as organizational

barriers to women’s advancement and defined them as “conditions that put women at a

disadvantage compared to equally educated and qualified male peers” (p. 225). Corporate

leaders are aware of the barriers that obstruct women from advancing to the top and say they

want the barriers removed. However, there is a difference between what corporate leadership

says it wants and what is actually happening (Federal Glass Ceiling Commission, 1995a).

First the underlying causes must be addressed and then the structural barriers dismantled.

Meyerson and Fletcher (2000) posited the barriers have a relatively straightforward cause,

“most organizations have been created by and for men and are based on male experiences”

(p. 129) and although the number or women entering the workforce is rapidly increasing

“organizational definitions of competence and leadership are still predicated on traits

stereotypically associated with men: tough, aggressive, decisive” (p. 129). Conversely the

Federal Glass Ceiling Commission (1995a) identified the underlying cause as “the perception

60
of many white males that as a group they are losing – losing the corporate game, losing

control, and losing opportunity” (p. 31). The fear is that the inclusion of women is a threat to

their advancement and a loss of opportunity. Although CEOs admitted that there was

resistance from upper and middle management, they may underestimate the degree of

resistance and therefore not address as forcefully as they should the business-based barriers.

Although it may not be conscious, Ohlott, Rudderman, and McCauley’s (1994) study

found that women must “continually fight to be recognized for the work that they do” (p. 62)

and Ragins et al. (1998) found that women are placed in a situation where they need to

repeatedly prove their ability and over-perform so as to counter negative assumptions. Ragins

et al. also found that women must find appropriate ways to perform that are non-threatening

to male peers so as not to make the males uncomfortable.

Women can also find themselves caught in self-defeating traps, catch-22s, or what

20th century psychologists termed the double bind (Jamieson, 1995). Kanter (1977) described

this as being measured by a double yardstick of how women carry out the management role

and how women live up to the womanhood image. This double yardstick of gender

appropriateness and managerial effectiveness places women in a double bind as “women who

attempt to fit themselves into a managerial role by acting like men … are forced to behave in

a sexually dissonant way” (Nichols, p. 7, 1993). They also risk being “too aggressive” or

when acting like ladies, “speaking indirectly and showing concern for others,” (Nichols, p.7)

risk being viewed as “ineffective” (Nichols). Nichols cited a study conducted by Carli, which

indicated that women who speak tentatively rather than assertively influenced men while

women who use indirect verbiage loose credibility with women colleagues. Research

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indicates “this complex set of contradicting gender and managerial expectations as the chief

nemesis of women in the work world” (Nichols, p. 8). Another double bind women find

themselves in is that more women will enter leadership positions only when there are more

women in leadership positions (Jamieson). This was verified in Tharenou’s study which

found that in companies “with mostly males in middle and upper management, … women

had a lower rate of advancement than men” (Bennett, 2002, p. 158). This may in part be due

to homophile, “the tendency to prefer to work or interact with people who are similar

demographically and attitudinally” (Indvik, 2001).

The dearth of executive talent has become a major issue worldwide and has initiated

what has become known as the war for talent (Michaels et al., 2001). Due to this lack of

executive talent, organizations are advised to grow their own leaders from within (Byham et

al., 2002). However, organizations that do not have sufficient numbers of women to groom

for leadership positions will not make advancements if they do not engage in active

recruitment campaigns for women. The Federal Glass Ceiling Commission (1995a) also

indicated that corporate America has not expanded its recruiting networks to explore new

avenues to hire women. The tendency is for organizations to rely on executive search firms

many of which have been reluctant to invest in expanding their networks if they are not

convinced there is a market. In short, they are not putting effort into building these networks

until there is an increased client demand for women executives (Federal Glass Ceiling

Commission, 1995a).

Employee selection has also been cited as a barrier. Heilman (1997) cited research

which indicated that when jobs are “male sex-typed (and therefore a perceived lack of fit

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exists), women with identical credentials as male counterparts have been shown to be judged

less qualified, are less likely to be hired and, if they are hired, are compensated less

generously” (p. 881). Lower compensation can also lead to misconceptions regarding the

level of complexity of the position and therefore decrease the chances of promotion at a later

date. Mentoring may assist women to overcome these misconceptions.

Dreher and Cox (1996) defined mentoring in organizations as “a developmental

relationship between an individual (protégé) and a more senior and influential manager or

professional (p. 298) and cited research which indicated “that mentors provide multiple

forms of career and psychosocial support” (p. 298). Dreher and Cox found that women with

MBAs were less likely than men with MBAs to form mentoring relationships with white men

and that mentoring relationships with white men had substantial impact on salary.

Kirchmeyer (1998) also suggested that supportive relationships are critical for managerial

success and cited findings (reported by Brass, 1985), which indicated that women were as

adept as men at forming peer relationships, but the relationships wielded less influence.

Ragins et al. (1998) also cited mentoring as a key factor and pointed out that women who

were fortunate enough to have both a male and female mentor gained from the different

strengths of each. However, the supply of women mentors in senior management is limited

by their scarcity. Not only is it difficult for women to establish mentor relationships with

white males, it is also difficult to be included in their informal networks (Catalyst, 2003).

Gutner (2002) refers to these as “old boys” networks, which according to Indvik (2001)

provide important resources and social contacts with superiors as well as networking

potential not only within but also outside the organization. Failure to network with key

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decision makers is frequently stated as a reason for the dearth of women in upper

management (Hurley et al., 1997). Lack of networking is also stated as a reason for the

dearth of women on corporate boards. Shapiro Snyder (2002) noted that nominating

committees frequently recruit based on “whom you know” and “who knows you.” Therefore,

it is important for women to not only network within their organization but also with CEOs

and senior management in other organizations (Shapiro Snyder).

Inhospitable corporate culture may also be restricting women’s advancement. The

executive women in Ragins et al. (1998) study agreed that men have difficulty supervising or

being supervised by women and are concerned with reverse discrimination. The women also

identified their lack of awareness of organizational politics as well as an ineffective

leadership style for the organizational culture as holding them back (Ragins et al.). To

understand organizational politics requires being included in the formal and informal

network; however, as previously discussed, women are frequently excluded from the formal

and informal networks that promote advancement.

“The corporate pipeline has a series of glass ceilings that can block the access of an

individual to the top” (Federal Glass Ceiling Commission, 1995a, p. 35). One of the pipeline

barriers is referred to as the pipeline theory which argues that women have not been in

management positions, the pipeline, long enough for career progression to take place

(Heilman, 1997; Ragins et al., 1998). However, there is little data to support this theory

(Heilman; Indvik, 2001). Research reviewed by Heilman indicated that if the simple passage

of time were the issue, many more women would be in top-level positions. Indvik (2001)

cited McCorduck as having noted that in 1970 corporate leaders were 99% male and 95%

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male in 1995. At this rate “it would take 300 years for U.S. women to achieve parity in

business and 500 years to reach it in the U.S. Congress” (Indvik, p. 224). Indvik also cited a

study by Gallagher (1996) of 70 executive women across the United States, which found that

the average length of time the women took to reach executive status was 11.5 years, “ a time

period that should have easily allowed parity to be reached” (p. 224). According to the

Business Leadership Index of the Committee of 200,

Women entered the workforce in droves in the 1970s, and after 30 years of significant
participation in the American business arena, we still have a long way to go…. If the
current trends were to continue, businesswomen would still need a minimum of two
more decades to reach an equal footing on all fronts with their male counterparts.
(Anderson, 2003, p. 2)

However, some CEOs contend that it is not that women have not been in the pipeline long

enough, but rather it’s what they have or have not done while in the pipeline.

The CEOs and women in Catalyst’s Women in U.S. Corporate Leadership: 2003

study agreed that women are not getting the key business experiences that are needed to gain

executive positions (Gerkovich, 2003). Line experience in areas such as marketing or

operations rather than staff support areas such as human resources or public relations is a

traditional prerequisite for a CEO position and is needed by mid-career at the latest to be

considered in the pipeline for any top position (Oakley, 2002). However, “women’s

concentration in staff functions – and companies’ reluctance to allow women to move

laterally into line management positions – have (effectively constructed) ‘glass walls’ as an

obstacle many corporate women encounter long before a ‘glass ceiling’ impedes their upward

mobility” (Townsend as quoted by Corporate Leadership Council, 1999, p. 20). Eighty-two

percent of the CEOs who participated in Ragins’ et al. (1998) study attribute the low number

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of women in top positions to women’s lack of management/line experience with financial

profit and loss experience. Hurley, Fagenson-Eland, and Sonnenfeld (1997) also stated that

experience in line departments is considered to be more valuable than experience in staff

departments. Research has shown that lower level managers with line experience are

promoted more frequently than those with little or no line management experience (Hurley et

al.). Catalyst’s (2002a) research also indicated that CEOs believe women need line

experience. “Although the percentage of women corporate officers in line positions has

increased from 20% in 1997 to 30% in 2002, more women corporate officers than men

remain in staff jobs. Of the 6,428 total line corporate officer positions, only 9.9% are held by

women” (Catalyst, 2002a, ¶ Line vs. Staff). However, the study conducted by Hurly et al.

also indicated the longer an individual was in a line position the less likely the person would

be promoted into a top level position. Although line positions may lead to a dead end

position, they are also used as training and education for upper level positions.

Based on several studies, Oakley (2002) identified training and career development as

two major components of the glass ceiling; women receive less training and educational

opportunities than men at all levels of the organization. Because women may take extended

leaves or absences to raise children or deal with other family responsibilities, it appears

employers are less willing to invest in on-the-job training or educational experiences for

women (Wells, 2001). In a study conducted by Ohlott et al. (1994), when women and men

were on a same career paths and levels within an organization, it appeared women were not

given the same responsibilities as men in similar jobs. Byham et al. (2002) identified stretch

assignments as educational, challenging, and imperative to developing senior executives. In

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Ragins’ et al. (1998) study, difficult or highly visible assignments were identified by half of

the high-ranking women as critical while 94% regarded them as important to their career

advancement. Difficult stretch assignments “provide professional growth and learning

challenges. Second they serve as grooming exercises for career tracks leading to executive

positions. Finally, highly visible assignments provide critical access to key decision-making

and influential mentors in the company” (Ragins et al., p. 31). However, Ragins et al.

reported that women encounter gender-related barriers as managers assume women are not

interested. Where men may be approached by senior management and offered key

assignments, women must seek them out.

In addition to the barriers women encounter within organizations, the Federal Glass

Ceiling Commission (1995a) also identified barriers the government needs to overcome.

Governmental Barriers

The Federal Glass Ceiling Commission (1995a) identified three governmental

barriers to eliminating the glass ceiling. They include (a) “lack of vigorous and consistent

monitoring and law enforcement, (b) weaknesses in the collection and disaggregation of

employment-related data, and (c) inadequate reporting and dissemination of information

relevant to glass ceiling issues” (Federal Glass Ceiling Commission, 1995a, p. 29).

Organizations cannot directly affect these governmental barriers; however, there are many

things that organizations can do to increase women’s advancement.

Although progress toward advancing women into senior positions has been made in

recent years, the gap between men and women in these positions is still significant. Research

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has shown significant benefits to advancing women into senior positions as well as ways in

which this can be accomplished.

What Organizations and Women Can Do to Increase Women’s Advancement

“Breaking the glass ceiling is an economic priority that this nation can no longer

afford to ignore” (Federal Glass Ceiling Commission, 1995b, p. 18). The CEOs interviewed

in the Federal Glass Ceiling Commission (1995a) survey perceived change in the business

environment to be the driving factor forcing business to address the glass ceiling. These

CEOs cited dramatic shifts in three areas they consider to be fundamental to business

survival: “changes in the demographics of the labor force, changes in the demographics of

the national consumer markets, and the rapid globalization of the marketplace” (Federal

Glass Ceiling Commission, 1995a, p. 59). In addition to these shifts, research indicates that

diversity initiatives positively impact corporate profitability.

In a gender diversity and financial performance study of 353 Fortune 500

organizations from 1996 to 2000, the Total Return to Shareholders of the top-quartile

organizations was 34% higher than the bottom-quartile organizations; the Return on Equity

was 35.1% for the top-quartile organizations than the bottom-quartile organizations (Yap,

2004). Therefore it is imperative for business to “develop and implement programs to break

the glass ceiling and … make such efforts an intrinsic part of corporate planning and

management” (Federal Glass Ceiling Commission, 1995b, p. 18). In an effort to assist

organizations with program implementation the Federal Glass Ceiling Commission (FGCC)

made the following recommendations:

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 1. Demonstrate CEO Commitment.

2. Include diversity in all strategic business plans and hold line mangers accountable
for progress.

3. Use affirmative action as a tool.

4. Select, promote and retain qualified individuals.

5. Prepare minorities and women for senior positions.

6. Educate the corporate ranks.

7. Initiate work/life and family-friendly policies.

8. Adopt high performance workplace practices. (Federal Glass Ceiling Commission,

1995b, p. 19-27)

Each of the recommendations for organizations is discussed.

Organization’s Role

Demonstrate CEO commitment. All initiatives to eliminate the glass ceiling must start

at the top; therefore, the first recommendation made by the Federal Glass Ceiling

Commission (1995b) addressed CEO commitment. It required the CEO to “communicate

visible and continuing commitment to workforce diversity throughout the organization”

Federal Glass Ceiling Commission (1995b, p. 19). Continuing commitment is very

significant as eliminating the glass ceiling is a long-term process which affects employees at

all levels of the organization. Staying the course ensures a larger diverse talent pool from

which the leaders can be selected.

Top management support and continuing commitment have been very successful for

Deloitte & Touche, a large accounting, tax, and consulting firm. An Initiative for the

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Retention and Advancement of Women at Deloitte and Touche grew out of a 1992 task force

chaired by the CEO (McCracken, 2000). Although the CEO has changed, the initiative has

continued. The percentage of women admitted/promoted to partner/principal/director

increased from 18% in 1993 to 28% in 2001 and the current CEO has publicly committed

that 35% of the 2005 class of partners/principals/directors will be women (Deloitte &

Touche, 2001). Other successful organizations also indicate top management involvement

fosters success. In a study, which identified organizations that used a variety of practices to

shatter the glass ceiling for women, Eyring and Stead (1998) found that in 87% of the 67

participating organizations the most common practice was upper management support for the

advancement of women in their organization (p. 249). In these companies with high upper

management support, women were represented on committees that addressed strategic

business issues as well (Eyring & Stead).

Ragins et al. (1998) pointed out, however, that CEO as change agent could be a

problem. If CEOs do not understand the underlying causes of the problem, it is nearly

impossible for them to develop effective solutions. Ragins’ et al. study showed differing

perspectives between CEOs and female executives. “The CEOs viewed the major

impediment to women’s advancement as lack of experience and time in the pipeline” (Ragins

et al., p. 36) while the female executives “pointed to an exclusionary corporate culture as the

primary barrier for women’s advancement” (p. 36). The pipeline approach assumes that time

will take care of the problem while a change in corporate culture would require a major

transformational change. The process used by Deloitte & Touche may assist if there is such a

discrepancy. Deloitte & Touche formed a task force consisting of both men and women

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representing a broad range of views and investigated the problem by gathering “data

necessary to make a business case – not a moral or emotional one – for change” (McCracken,

2000, p. 4). They then prepared the management professionals for change by holding a series

of two-day workshops designed to bring to the surface gender-based assumptions

(McCracken). Morrison (1992) also advocated collecting data as the first step of a Leadership

Diversity Action Plan followed by strengthening top-management commitment as the second

step. Morrison emphasized that although statistical data is needed, it is only part of the

information that should be collected. Perceptions, the why behind the data, must be examined

so the data contribute to the learning process (Morrison). Deloitte & Touche accomplished

this with the two-day workshops. The FGCC’s second recommendation regarded strategic

planning and accountability.

Include diversity in all strategic business plans and hold line mangers accountable.

The Federal Glass Ceiling Commission (1995b) took the position that the glass ceiling be

placed and measured at the same level as other business practices. Therefore the Commission

recommended

that all corporations include in their strategic business plans efforts to achieve diversity
both at the senior management level and throughout the workforce. Additionally,
performance appraisals, compensation incentives and other evaluation measures must
reflect a line manager’s ability to set a high standard and demonstrate progress toward
breaking the glass ceiling. (p. 20).

Although much research has been conducted regarding the glass ceiling and many books

and articles have been written on the subject, little information is available regarding

including the advancement of women in strategic business plans or evaluation measures

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specifically used for women. It may be appropriate for organizations to complete a glass

ceiling self-audit to examine organizational practices as suggested by Crampton and Mishra

(1999). Holding line managers accountable is cited in several research studies. Swiss (1997)

discussed the importance of accountability but cautioned against linking compensation to

quota. Rather managers should be encouraged to foster a climate where women flood the

applicant pools and are promoted at the same rate as men. Affirmative action tools may assist

to increase applicant pools.

Use affirmative action as a tool. The Federal Glass Ceiling Commission (1995b)

defined affirmative action as “the deliberate undertaking of positive steps to design and

implement employment procedures that insure the employment system provides equal

opportunity to all” (p. 22). The FGCC therefore recommended “that corporate America use

affirmative action as a tool ensuring that all qualified individuals have equal access and

opportunity to compete based on ability and merit” (p. 22). Tharenou (2001), after

conducting a longitudinal study with 5,627 participants (2,614 women and 3,013 men), also

recommended affirmative action. The results of Tharenou’s study yielded the following

conclusion.

Women’s under representation in management is unlikely to change through the

internal procedures of organizations alone and is likely to require external
intervention in the form of law. Hence, targeted affirmative action needs to continue
if women are to be hired for managerial positions they have not previously or have
infrequently held. (Tharenou, 2001, p. 1015).

However, Heilman (1997) questioned that affirmative action supports women and

therefore conducted two studies, one in a laboratory setting and one in the field. The first

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study supported “the idea that affirmative action can give rise to negativity and increased

stereotyping” (Heilman, 1997, p. 885).

The [second study] resulting data demonstrated a strong correlation between the
extent to which a nontraditional female co-worker is presumed to be an affirmative
action hiree and the degree of negativity evidenced in respondents’ descriptions. The
greater the role affirmative action was believed to have played, the lower her
competence rating and the less active and potent she was thought to be. (Heilman,
1997, p. 886)

According to Heilman (1997), these studies indicate that affirmative action can exacerbate

rather than eliminate sex bias in organizations. Heilman (1997) further extrapolated that “any

organizational practice or intervention that serves to make salient group membership rather

than individual accomplishment can similarly exacerbate the degree to which a woman is

stereotypically viewed” (p. 886).

It appears that affirmative action may carry negative connotations; therefore, the

Federal Glass Ceiling Commission (1995b) emphasized that affirmative action is not

“imposing quotas, allowing preferential treatment or employing or promoting unqualified

people” (p. 22); rather, when used correctly it encourages organizations to recruit, train and

provide opportunities for all genders and races.

Select, promote and retain qualified individuals. This Federal Glass Ceiling

Commission (1995b) recommendation suggested that organizations have limited their focus

for senior executives and board members to what is termed conventional sources and

experiences. Therefore the FGCC recommended “that organizations expand their vision and

seek candidates from non-customary sources, background and experiences, and that the

executive recruiting industry work with business to explore ways to expand the universe of

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qualified candidates” (p. 23). The FGCC lists several places which many corporations

seldom consider looking such as nonprofits, women’s advocacy groups, colleges and

universities, and the military. The FGCC also recognizes that executive search firms are

frequently the source used to secure senior executives and challenges organizations to

demand executive search firms “provide diversity profiles of the search firm itself as well as

the candidates its represents” (p. 22) Further the FGCC delineates a three-fold responsibility

of executive search firms.

1. To recommend to its clients a diverse array of candidates for specific positions,

even when not specifically requested to do so;

2. To expand its outreach to identify minorities and women;

3. To examine is own hiring practices and workforce composition to ensure diversity.

(Federal Glass Ceiling Commission, 1995b, p.23)

Retention is another major issue. According to Donahue (1998) and The Leader's

Edge™ (2002), female executives are leaving Fortune 500 companies at a rate twice that of

males. Between June and September 2002, The Leader’s Edge™ interviewed over 100 high-

level women with a salary level of $150,000 or above who had recently left their

organizations voluntarily. Thirty-nine percent of the respondents ranked corporate culture as

the number one reason they left. Specifically they stated closed management styles,

micromanagement, not being valued or heard, and lack of management integrity, which was

not inline with their values. Secondly, 31% felt they needed a more balanced life with

flexible working hours. Even in organizations that offered such programs, those who

participated were viewed as being less committed and participation would threaten their

positions. Career development was a major factor for 13% of the respondents while 11% left

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because they needed a new challenge not available with their current employer. The

interviews also addressed the question of what companies could have done to retain these

women. Thirty-two percent suggested feedback and career planning and 26% felt a change in

management leadership style. The factors most frequently mentioned were collegial, team

building, mentoring programs, and management that truly supported employees. Finally,

23% suggested putting family friendly programs in place. When the executive women were

asked what advice they would offer Corporate America, 40% stated the need to address

work/life issues for all employees and particularly women. They suggested programs that

allow flexibility and balance but do not stigmatize employees who take advantage of them.

The second piece of advice offered by 24% of the respondents was to recognize that gender

is not a deterrent to competence and to eliminate cronyism, the old boys’ network and the

heavy-handed environment (The Leader's Edge™).

When women leave, organizations experience the loss of intellectual capital, negative

effects on staff morale and the cost of finding replacements as well as competition from the

women who have founded their own businesses (Donahue, 1998). A study completed by the

Center for Women’s Business Research indicated that a number of women would return to

the corporate world if there was greater flexibility and more equitable pay (Peacock, 1998).

Prepare minorities and women for senior positions. This recommendation addresses

two barriers previously discussed, access to line positions and mentoring. The Federal Glass

Ceiling Commission (1995b) recommended “that organizations expand access to core areas

of the business and to various developmental experiences, and establish formal mentoring

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programs that provide career guidance and support to prepare minorities and women for

senior positions” (Federal Glass Ceiling Commission, p. 24).

Research indicates that the experience gained in line positions is important to

women’s advancement; however, a breadth of experience was also found to be important

(Hurley et al., 1997). Organizations need to develop generalists and offer both vertical and

horizontal moves; horizontal moves will keep women interested and learning when there are

no current senior positions available (Hurley et al.). Mentors can assist women to locate

positions that will enhance their career.

Two types of mentor-protégé relationships have been identified: career assistance

functions and psychosocial support functions (Crampton & Mishra, 1999; Schor, 1997).

Career assistance functions enhance career development and advancement and consist of

coaching, advising on career moves, ensuring exposure and visibility, and accessing

important social networks, resources, and assignments. Psychosocial support functions

enhance competence and include role modeling, counseling, feedback, social support, and

friendship (Crampton & Mishra; Schor). In Schor’s study, which compared women’s and

men’s career building relationships, more executive women than men had mentors, the

women also had more mentors and each mentor-protégé relationship averaged five years in

length, while men’s averaged two. All of the executive women had mentors where only half

of the men did, which Schor interpreted to mean that having a mentor may be crucial for

women to reach executive positions. It is important that organizations actively promote

mentor-protégé relationships; however, Schor pointed out that formal mentoring programs in

which a mentor or protégé is assigned are likely to yield fair to poor results. The most

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effective actions may be for CEO’s and other high level individuals to foster a culture that

encourages mentor-protégé relationships. Formal “mixer” activities as well as informal

workflow patterns may result in worthwhile relationships (Schor). Due to the low number of

women in executive positions, women need to choose men as mentors. Crampton and Mishra

discuss four conflicts that can develop in cross-gender mentoring relationships.

1. Men and women try to avoid cross-gender mentoring relationships. They fear co-
workers will incorrectly view their relationship as sexual instead of professional or
they fear possible sexual-harassment accusations.

2. Women have been conditioned to believe that if they initiate relationships, they are
behaving too aggressively.

3. Women are often excluded from clubs and events where mentoring relationships
are formed.

4. Many women are stuck in lower-level positions where they are overlooked as
mentoring candidates. (Crampton & Mishra, 1999, p. 93)

To combat these conflicts, organizations need to educate the corporate ranks.

Educate the corporate ranks. This FGCC recommendation was aimed to increase

understanding and respect for gender as well as racial and ethnic differences. The Federal

Glass Ceiling Commission (19995b) recommended “that companies provide formal training

at regular intervals on company time to sensitize and familiarize all employees about the

strengths and challenges of gender, racial, ethnic, and cultural differences” (p. 25). “Gender

awareness training is often thought to be very confrontational, consisting of adversarial

encounters and emotional outpourings” (Rosener, 1995, p. 150); however, it does not need to

be. For organizational change to take place “candid discussions of values, feelings, biases,

and unconscious behaviors” (Rosener, 1995, p. 150) are essential and can be very positive

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when an accomplished facilitator is used. In Eyring and Stead’s (1998) study, which

identified distinguished organizations that used a variety of practices to shatter the glass

ceiling for women, the second most common practice was to provide sexual harassment

workshops for managers. The Catalyst (2005) study of 296 (128 men, 168 women) corporate

leaders also recommended educating employees regarding how stereotypes impact judgments

and what can be done to override the tendency to stereotype.

Initiate work/life and family-friendly policies. The Federal Glass Ceiling Commission

(1995b) “recommended that organizations adopt policies that recognize and accommodate

the balance between work and family responsibilities that impart the lifelong career paths of

all employees” (p. 26). Hewlett (2002), in a nationwide survey that targeted the top 10%

(measured in terms of earning power) of professional women, found that “women are happier

when they have both career and family” (p. 8). The fifth most common practice Eyring and

Stead (1998) found, in the organizations that were addressing the glass ceiling issue, was the

use of family leave and part-time work. Although they felt that part-time work did not

correlate to glass ceiling practices, other researchers noted that when women drop out of the

work world they become rusty and out of touch. Part-time positions can give women the time

needed to manage home responsibilities as well as keep in contact with the business world

and better prepared to reenter on a full time basis should they choose to do so. Also working

part-time may assist to lessen the wage gap between men and women, which “is due mainly

to the penalties women incur when they interrupt their careers to have children” (Hewlett, p.

7). It is imperative for organizations that do not currently offer work/life programs to do so;

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however, the major challenge organizations face is to remove the stigma attached so all

employees can comfortably use them.

Adopt high performance workplace practices. The final recommendation the Federal

Glass Ceiling Commission (1995b) made was to recommend “that all companies adopt high

performance practices, which fall under the categories of skills and information;

participation, organization and partnership; and compensation, security and work

environment” (p. 27). High performance practices are needed for all employees, not just

women. However, an interesting outcome of a Center for Creative Leadership study of 92

women managers was that the women who committed to roles outside work had higher

performance ratings. It appears that “engagement in personal roles may also promote job

performance, via a process called role accumulation” (Ruderman & Ohlott, 2002, p. 115).

This means “learning from one role can be accumulated and incorporated into another. Thus,

performance in one role can be enhanced by experience in another” (Ruderman & Ohlott, p.

115). This indicates that family friendly work programs may increase performance.

Women’s Role

A study conducted by Kirchmeyer (1998) examined the differences in the

management career success of males and females and concluded that because men and

women with similar experience and expertise yield different career returns there is little more

that women personally can do to advance themselves into senior executive positions.

Kirchmeyer concluded that the responsibility seems to lie with the employers; however, other

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research suggests it is imperative for women to take an active role in advancing themselves.

Ragins et al. (1998) found the women who reached the executive suite “did not wait for

career-enhancing opportunities to come to them; they actively took charge of their own

careers by overcoming gender-related expectations and seeking visible assignments that

promoted their mobility” (p. 32). The women in Ragins’ et al. study were not offered key

assignments; therefore, they first recognized the importance of these assignments and then

convinced others that they were capable and motivated to fill these assignments. This

required what Conlin (2002) refers to as executive presence, touted as “the latest key to

unlocking women’s advancement” (¶ 4). Executive presence is the ability to make a polished

entrance to a room, immediately shaking hands, connecting with people, and conveying an

aura of warmth and authenticity. It is the display of confidence and self-esteem, qualities

research has indicated women can improve upon. Speaking decisively in meetings is

imperative; leaving a meeting without having contributed or having contributed very little

makes women appear passive and unengaged (Conlin). Wallington (2001), Corporate Vice

President and Chief Information Officer (CIO) of Xerox, also encouraged women to give

voice to their ideas. Conlin cautions that verbiage is important; using qualifiers such as

“perhaps” or pronouns such as “we” lowers effectiveness and ending a sentence with an

inflection causes people to doubt what was said. Women also need to learn how to brag as

their achievements may otherwise go unrecognized said Klaus (as cited by Conlin), a San

Francisco coach. The Leaders Edge™ (2002) research found recognition to be consistently

more important for women than for men. The research indicated women’s career success is

gauged more on how they are perceived rather than by income (The Leaders Edge™). The

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research also suggested that as women rise in an organization they do not take advantage of

self-promotion (The Leaders Edge™). Conlin advocated weaving accomplishments into

anecdotes and also to use humor.

Research, previously discussed, identified women as being less risk-oriented than

men. The Leaders Edge™ (2002) research also found women to be risk averse. According to

Wallington (2001), it takes courage to succeed; however, success also requires the courage to

fail. Men seem to take failure more in stride than women. Women need to lighten-up on self-

deprecation (Conlin, 2002), set aggressive goals, plan on meeting them, and learn from

success as well as failure (Wallington, 2001). Wallington also commented that mistakes for

women executives are magnified so it is best to “acknowledge them, extract the lessons, and

move on” (On expectations, ¶ 2).

Setting and meeting goals, evaluating risk as well as dealing with failure or temporary

set backs are areas in which mentors may be of assistance. Research previously discussed

cited mentors as a key factor to the advancement of women. If mentoring programs are not

available within an organization, women must actively seek a mentor. Mentors may also

assist women to determine if executive positions are what they want. Savage (2002) contends

that between upper middle management and the executive level the culture shifts to one

based on power, which may not align with individuals’ core values. A mentor may assist to

gather and analyze data regarding the job responsibilities as well as assist with self-

assessment tools. An honest assessment of strengths and weaknesses is needed before one

can develop the confidence to really succeed (Wallington, 2001).

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 Ruderman and Ohlott (2002) compiled data collected from 92 women who

participated in the Center for Creative Leadership’s Women’s Leadership Program in 1995

and 1996 and additional survey research of 190 women managers. From the data the most

acute issues managerial women face were identified from which five realistic strategies were

offered to balance professional endeavors with personal. They include:

1. Authenticity is the desire to have a healthy alignment between inner values and
beliefs and outer behaviors.

2. Making connections refers to the fundamental human drive – the need to be close
to other human beings.

3. Controlling your destiny (agency) is to take initiative on one’s own behalf and do
whatever it takes to excel in one’s chosen endeavor.

4. Achieving wholeness represents the desire to unite and integrate different life
roles.

5. Gaining self-clarity involves understanding one’s own motives, behaviors, and

values in the context of today’s world: the myriad ways organizations treat men
and women differently. (Ruderman and Ohlott, 2002, pp. 7-8)

Conclusions

Although more women are entering the workforce, few have reached executive

positions. Organizations indicate an interest in promoting women to executive positions;

however, barriers to women’s advancement remain creating a glass ceiling as well as glass

walls as evidenced by the lack of women in line positions. The Federal Glass Ceiling

Commission’s recommendations serve as guidelines; however, organizations must take

initiative and implement programs to remove the barriers. Some barriers such as the lack of

mentors and flexible work schedules can be dealt with more easily than those that address

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personal prejudice and organizational culture. However, unless the barriers such as prejudice,

the “old boys” networks, and double binds are aggressively addressed women’s ascent to

executive positions will remain slow. Organizations need to be aggressive from both a policy

and practice standpoint. Wells (2001) suggested that organizations should look at who’s in

their high potential list – if it’s all men ask why.

Women need to actively educate themselves regarding steps they can take to prepare

for executive positions. Findings from studies such as Mainiero’s (1994) can be used as

guidelines. The 55 high-profile women who participated in Mainiero’s study identified five

hurdles they jumped early in their career. They included (a) getting assigned to a high

visibility project, (b) demonstrating critical skills for effective job performance, (c)

displaying entrepreneurial initiative, (d) attracting top-level support, and (e) accurately

identifying what the company values (Mainiero). Because organizations look for a track

record in line management, women need to learn what is considered to be a successful track

record in their organization and then pursue avenues to achieve it. Women in executive

positions also need to take an active stance on behalf of the women who are still striving to

reach executive positions (Gutner, 2002).

The solution to increasing the number of women in executive positions lies with

organizations as well as women. Organizations need to recognize that high-achieving female

executives are valuable individuals successful organizations cannot afford to underutilize or

lose. Women need to evaluate and understand what they personally can accomplish and then

pursue it. Having multiple roles in life may enhance one’s professional performance;

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however, women need to acknowledge that they can’t do everything and must therefore

choose carefully.

Case Study Research

Case study research is defined by the interest of the researcher in individual cases

rather than the method of inquiry used (Stake, 1995). It “is done to shed light on a

phenomenon, which is the processes, events, persons, or things of interest to the researcher”

(Gall, Borg, & Gall, 1996, p. 545). Case study research can be of “individuals, groups,

neighborhoods, programs, organizations, cultures, regions, or nation-states” (Patton, 2002, p.

447). It can also be critical incidents, stages in a person’s life or stages in the life of a

program or an organization (Patton). Yin (1981) stated that “as a research strategy, the

distinguishing characteristic of the case study is that it attempts to examine: (a) a

contemporary phenomenon in its real-life context, especially when (b) the boundaries

between phenomenon and context are not clearly evident”

(p. 59). Gall, et al. listed four major characteristics of case study research:

1. the study of phenomena by focusing on specific instances, that is, cases;

2. an in-depth study of each case;

3. the study of phenomenon in its natural context; and

4. the study of the emic perspective [defined as the participants’ viewpoint] of

case study participants. (Gall, et al., 1996, p. 545)

Using these characteristics, Gall et al. defined case study research as “the in-depth study of

instances of a phenomenon in its natural context and from the perspective of the participants

involved in the phenomenon” (p. 545).

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 Case study research is done for one of three purposes: “to produce detailed

descriptions of a phenomenon, to develop possible explanations of it, or to evaluate the

phenomenon” (Gall et al., 1996, p. 549). When a case study is done to produce detailed

descriptions, the phenomenon is explained using thick description, which is statements that

re-create the situation, as much of its context as possible, as well as the meanings and

intentions inherent in the situation. When writing thick description, constructs are used to

bring order to the data and also relate the data to other research findings found in literature.

Gall, et al. defined construct as “a concept that is inferred from observed phenomena and that

can be used to explain those phenomena” (p. 549). Depth can be added to descriptions by

searching for themes that are present in phenomena. Themes are defined by Gall, et al. “as

salient, characteristic features of a case” (p. 549). When developing possible explanations of

the phenomenon that was studied (the second purpose) the explanations are referred to as

patterns, meaning that one variation observed is systematically related to another variation. If

one variation has a causal effect on another the pattern is a causal pattern. If there is no

causal effect the pattern is a relational pattern. The third purpose, to evaluate the

phenomenon, is when the researcher makes judgments about the case study conducted. The

researcher may also create a thick description of the phenomenon as well as identify

constructs, themes, and patterns as a means of evaluation. In the last characteristic, the study

of the emic perspective of the participants, “the researcher must figure out how to view the

phenomenon as the participants view it” (Gall, et al., p. 548). Case study researchers are

outsiders and maintain their own perspective “which is called the etic perspective” (Gall et

al. p. 548).

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 History

Prior to the development of the scientific method, naturalistic inquiry was the primary

research tool (Colorado State University, n.d.). Although sociology and anthropology are

usually thought of as the fields associated with case study research, other areas such as social

workers’ case study techniques, doctors’ clinical methods, historians’ methods, newspaper

reporters’ and novelists’ methods as well as qualitative descriptions of quantitative research

are also case study methods. Robert Park, a 1920s University of Chicago professor and

previous newspaper reporter and editor, was very influential in developing sociological case

studies. Park valued human experience and viewed the sociologist as merely a more accurate,

responsible, and scientific reporter. He believed that the fluidity of human nature and society

did not fit with the static laws sought by positivists and therefore encouraged students to get

out of the library and view the experiment of human experience (Colorado State University;

Beauregard, 1997).

However, during the 1920s the debate between qualitative and quantitative research

became very heated. Case studies, when compared to statistical studies, were deemed by

many to be unscientific as people wanted static, generalizable laws. Therefore, by the 1950s,

quantitative survey research became the dominant sociological approach and case study

became a minority practice (Colorado State University, n.d.). In 1951, case study research

emerged in public administration when the Inter-University Case Program (ICP), which

included members from almost 50 institutions, was formed. The ICP members met to

develop ideas and refine the case method; however, the concern for generalizability remained

(Jensen & Rodgers, 2001). The 1950s also marked the beginning of case study research being

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used as a teaching method. This method was first instituted at Harvard Business School

(Colorado State University).

Method

The first step is to identify a problem that is of interest to the researcher and worthy

of study. The problem is then translated into explicit questions or objectives and the

participants are selected. Data collection techniques are selected and may include

observations, interviews, documents, archival records, and/or audiovisual materials. Data

collection is emergent, thus data collected at one point in time may be used to determine

additional data-collection activities. Although some case studies may use only one source of

data, using multiple sources increases the reliability and validity of the data. The researcher is

the primary measuring instrument, carries out the data collection and becomes personally

involved in the phenomenon under study. In some instances the researcher may spend an

extended period of time on-site interacting with the participants of the study (Colorado State

University, n.d.; Gall, et al., 1996; Leedy & Ormrod, 2001).

Data Analysis

Because data collection is emergent, the researcher needs to analyze data, at least

informally, as the data collection progresses. Miles and Huberman (as cited by Gall, et al.,

1996) recommended the use of standard forms to track and summarize data collection events.

These forms may reveal missing information and prompt additional data collection or suggest

promising direction for additional data collection and analysis. One form is the contact

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summary sheet, which summarizes the learning from each personal contact. Another is the

document summary form used to summarize the documents examined.

Leedy and Ormrod (2001) suggested following the steps outlined by Creswell and

Stake when analyzing data. They include:

1. Organization of details about the case. The specific “facts” about the case are
arranged in a logical (e.g., chronological) order.

2. Categorization of the data. Categories are identified that can help cluster the
data into meaningful groups.

3. Interpretation of single instances. Specific documents, occurrences, and other

bits of data are examined for the specific meanings that they might have in
relation to the case.

4. Identification of patterns. The data and their interpretations are scrutinized for
underlying themes and other patterns that characterize the case more broadly
than a single piece of information can.

5. Synthesis and generalizations. An overall portrait of the case is constructed.

Conclusions are drawn that may have implications beyond the specific case that
has been studied. (Leedy and Ormrod, 2001, p. 150)

Gall, et al. (1996) discussed three variations of data analysis. “Interpretational

analysis is the process of examining case study data closely in order to find constructs,

themes, and patterns that can be used to describe and explain the phenomenon being studied”

(Gall, et al., p. 562). The process includes segmenting the database, developing categories,

coding segments, grouping category segments and drawing conclusions. “Structural analysis

is the process of examining case study data for the purpose of identifying patterns inherent in

discourse, text, events, or other phenomena” (p. 568) while “reflective analysis is a process in

which the researcher relies primarily on intuition and judgment in order to portray or evaluate

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the phenomena being studied” (p. 570). The process of analysis varies with the kind of case

study and the intended use of the case study.

“Qualitative software programs facilitate data storage, coding, retrieval, comparing,

and linking …” (Patton , 2002, p. 442). Miles and Huberman (1994) posited “that the

researcher who does not use software beyond a word processor will be hampered in

comparison with those who do” (p. 44). Ragin and Becker (1989) (as cited by Miles and

Huberman) “add that the microcomputer is especially useful for ‘case oriented’ researchers,

those interested in interconnected arguments about interrelated events …” (p. 44). Software

will be utilized to facilitate analysis of the current case study research. Additional

methodological information is presented in Chapter three.

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 CHAPTER 3. METHODOLOGY

The methodology used for the research is discussed in chapter three. The discussion

includes the researcher’s philosophy, the theoretical framework, research design, sampling

design, measures, data collection procedures, pilot testing, data analysis, limitations of the

methodology, and the expected findings.

Researcher’s Philosophy

“Qualitative researchers approach their studies with a certain paradigm or world

view, a basic set of beliefs or assumptions that guide their inquiries” (Creswell, 1998,

p. 74). Philosophically researcher’s make assumptions regarding (a) the nature of reality, the

ontological assumption; (b) the knowledge or relationship of the researcher to the research

phenomenon, the epistemological assumption; (c) the role that values play in the study, the

axiological assumption; and (d) the research process or strategies, the methodological

assumption (Creswell, 1998). In the ontological assumption, “reality is constructed by the

individuals involved in the research situation” (Creswell, 1998, p. 76). In this study, multiple

realities exist as the research will involve the researcher and the participants as well as the

audience interpreting the study. Knowledge, the epistemological assumption, is gained

through the process as well as the interaction of the researcher with the participants.

Qualitative research is value-laden; the researcher’s values and biases enter and are

acknowledged. The information gathered in the field may also be biased. In the research

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process or strategies, the methodological assumption, the researcher works inductively.

These assumptions indicate a social constructivism tradition and case study methodology.

Theoretical Framework

The research attempted to answer the question “How can organizations increase

women in executive leadership positions while preparing for the perceived leadership crisis?”

It was approached through the following questions regarding the leadership crisis, women’s

roles in leadership preparation, succession planning, and knowledge management.

1. How will the perceived leadership crisis impact organizations in a

geographically defined area?

2. How are organizations identifying individuals with leadership potential,

assessing skills and skill gaps, and developing them for executive leadership
positions?

3. What are organizations doing to ensure women are identified and developed for
leadership positions?

4. What succession planning and management systems are currently utilized?

5. How is knowledge management approached in the succession and management

systems?

The purpose of this study was to explore how organizations, in a geographically

defined area, will be affected by the perceived leadership crisis and investigated if actions are

currently being taken to increase women in executive positions while preparing for the crisis.

Given the significant number of leaders who will be eligible to retire, the impact these

retirements will have on organizations, and the dearth of women in executive level positions,

examining and analyzing how organizations are identifying and grooming potential leaders,

including women, may provide valuable insight on ways to decrease the negative effect of

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the perceived crisis and positively affect the number of women in executive leadership

positions. Hopefully, this information will be helpful to organizations in this geographical

area as well as add to the body of knowledge regarding the impending leadership crisis and

women in leadership.

Research Study Design

Yin (2003) posited that there are three conditions to evaluate when selecting the

research study design. They include "(a) the type of research questions posed, (b) the extent

of control an investigator has over actual behavioral events, and (c) the degree of focus on

contemporary as opposed to historical events" (Yin, p. 5). Research questions have both

substance and form. The substance question asks, "what is the study about?" The form of the

research questions "can provide an important clue regarding the appropriate research strategy

selected. How and why questions are likely to favor the use of case studies, experiments, or

histories" (Yin, p. 7); however, what questions are appropriate when conducting exploratory

research. When the researcher cannot manipulate the relevant behavior and contemporary

events are examined, both conditions in this research, case study is the preferred research

design (Yin).

The research design "is the logical sequence that connects the empirical data to a

study's initial research question and, ultimately, to its conclusions" (Yin, 2003, p. 20). In case

study research design, there are five components of particular importance. They include:

1. a study's questions;

2. its proposition, if any;

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 3. its unit(s) of analysis;

4. the logic linking the data to the propositions; and

5. the criteria for interpreting the findings. (Yin, 2003, p. 21)

The study questions applicable to case study exploratory research are how and why

questions followed by study propositions (Yin, 2003). However, if the research is

exploratory, rather than propositions the design should “state the purpose as well as the

criteria by which an exploration will be judged successful" (Yin, 2003, p. 22). The purpose of

the study, as previously stated, is to explore how organizations, in a geographically defined

area, will be affected by the perceived leadership crisis and to investigate if actions are

currently being taken to increase women in executive positions while preparing for the crisis.

This exploration will be deemed successful when data regarding the research questions have

been analyzed and the research questions answered.

The third component of case study research design is the unit of analysis which is

“related to the fundamental problem of defining what the ‘case’ is…” (Yin, 2003, p. 22). The

organizations in a geographical area were the cases; therefore, they were the unit of analysis.

The fourth component, linking data to the propositions (in this case the purpose of the study)

and the fifth component criteria for interpreting the findings were accomplished by thematic

within-case analysis as well as thematic cross-case analysis.

Sampling Design

Researchers using a constructivist paradigm and field investigation must adhere “to

two quality issues when making sampling decisions: appropriateness and adequacy” (Kuzel,

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1999, p. 44). To ensure appropriateness, the phenomenon and research purpose should be

considered as well as be consistent with the style of inquiry. To ensure adequacy the sample

should be selected serially, continuously adjusted, reach saturation, and actively search for

alternative explanations to develop theory with greater breadth and strength (Kuzel).

According to Patton (2002), there are numerous ambiguities in qualitative inquiry one

of which is sample size as there are no rules by which to determine the size of the sample.

Rather, the sample size is determined by what the researcher wants to know, the purpose of

the research, and what will be credible. “The validity, meaningfulness, and insights generated

from qualitative inquiry have more to do with the information richness of the cases selected

and the observation/analytical capabilities of the researcher than with sample size” (Patton, p.

245). Gaining in-depth information from a small number of participants can be very valuable

particularly when the participants are selected purposefully. Purposeful sampling provides

the opportunity to select information-rich participants. Information-rich participants are those

a great deal can be learned from regarding the issues of central importance to the research

and who can illuminate the research questions. Patton discusses 16 methods that can be

utilized to purposefully select information-rich participants. Maximum variation

(heterogeneity) sampling, as discussed by Patton, was used in this study. Maximum variation

sampling is used “to document variations that have emerged in adapting to different

conditions” (Lincoln & Guba, 1985 p. 200) and is the preferred sampling mode for

constructivist inquiry (Lincoln & Guba; Kuzel, 1999). Patton (2002) noted:

For small samples, a great deal of heterogeneity can be a problem because individual
cases are so different from each other. The maximum variation sampling strategy
turns that apparent weakness into a strength by applying the following logic: Any
common patterns that emerge from great variation are of particular interest and value

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 in capturing the core experiences and central, shared dimensions of a setting or
phenomenon. (p. 235)

To insure maximum variation, the sample included the owner of a small privately

owned retail business and a partner in a small service organization. The Chief Administrative

Officer and Chief Human Resource Officer of a large utility and the Human Resource

Director of a large publicly traded organization were also interviewed. Non-Profit

organizations and government organizations were included in the study. Non-profit

organizations included the Human Resource Director of a large non-profit organization and

the Associate Director of a small non-profit organization. Government included the

Executive Director of the State Department of Personnel and Administration and a city

government Manager of Employee and Organization Development.

The data collection and analysis of a small diverse sample yielded detailed

descriptions of each case useful for documenting the uniqueness of each organization as well

as common themes, patterns, and outcomes across the various sectors. “Both are important

findings in qualitative inquiry” (Patton, 2002, p. 235).

Measures

Qualitative research is subjective in nature; therefore, it necessitates scrupulous

scientific methods to ensure valid results (Easton, McComish, & Greenberg, 2000). Although

qualitative research yields rich, extensive data, the validity of qualitative research is in

question unless the method can be trusted (Easton et al.). It is the responsibility of the

researcher to establish the validity and trustworthiness of the research. The researcher, in

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qualitative research, is the data collection instrument (Patton, 2002) and can influence all

aspects of the research.

Researcher’s Role and Context

The role and context of the researcher can influence all facets of the research. The

researcher in the present study has 15 years of experience teaching and mentoring working

adults in a graduate level leadership degree as well as 22 years of experience as a woman

small business owner. The research studies, discussed in the literature review, indicated that

women are under represented in leadership positions. Observing an increase in the number of

women in the master’s level leadership program as well as an increase in the number of

women owned small businesses led to the awareness that the perceived leadership crisis

could positively influence the advancement of women in leadership positions. Previous

research regarding the perceived leadership crisis, discussed in the literature review,

indicated that organizations are not adequately preparing younger generations to fill the

leadership positions as the baby boom generation retires nor are organizations adequately

facilitating the transfer of the tacit knowledge which the retirees will take with them. To

minimize these beliefs and biases, procedures to increase credibility, transferability,

dependability, and confirmability will be followed. This terminology is “the naturalist’s

equivalents for the conventional terms internal validity, external validity, reliability, and

objectivity” (Lincoln & Guba, 1985, p. 300).

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 Credibility

According to Lincoln and Guba (1985) and Creswell and Miller (2000) several

techniques can be used to increase the credibility of the research. Those used in the current

study included member checking, triangulation, disconfirming evidence, researcher

reflexivity, and peer debriefing.

Member Checking

Member checking involves the review of the typed verbatim audio taped interview by

the interviewee and “is the most crucial technique for establishing credibility” (Lincoln &

Guba, 1985, p. 314). Member checking serves several purposes:

1. It provides the opportunity to assess intentionality-what it is that the

respondent intended by acting in a certain way or providing certain
information.

2. It gives the respondent an immediate opportunity to correct errors of fact and

challenge what are perceived to be wrong interpretations.

3. It provides the respondent the opportunity to volunteer additional information;

indeed, the act of “playing back” may stimulate the respondent to recall
additional things that were not mentioned the first time around.

4. It puts the respondent on record as having said certain things and having
agreed to the correctness of the investigator’s recording of them, thereby
making it more difficult later for the respondent to claim misunderstanding or
investigator error.

5. It provides an opportunity to summarize-the first step along the way to data

analysis.

6. It provides the respondent an opportunity to give an assessment of overall

adequacy in addition to confirming individual data points. (Lincoln & Guba,
1985, p. 314)

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Triangulation

The second technique used was triangulation the purpose of which is to improve the

probability that findings and interpretations will be credible (Lincoln & Guba, 1985).

According to Patton (2002), there are four kinds of triangulation.

1. Methods triangulation: Checking out the consistency of findings generated by

different data collections methods

2. Triangulation of sources: Checking out the consistency of different data

sources within the same method

3. Analyst triangulation: Using multiple analysts to review findings

4. Theory/perspective triangulation: Using multiple perspectives or theories to

interpret the data. (Patton, 2002, p. 556)

Methods triangulation included comparing the themes identified during data

analysis with the qualitative and quantitative data in other studies discussed in the literature

review. Creswell (2003) recommended that data source triangulation be used to “triangulate

different data sources of information by examining evidence from the sources and using it to

build a coherent justification for themes” (p. 196). Patton (2002) discussed a misconception

regarding data source triangulation, the misconception being that the purpose is to obtain

essentially the same results; however, the point of data source triangulation is to test for

consistency. Understanding inconsistencies in findings across different data sources “can be

illuminative and important” (Patton, p. 556). Analyst triangulation was addressed through

member checks when each participant reviewed the verbatim transcript for accuracy. An

external reviewer was also used. Theory triangulation included the review of theories through

leadership and philosophical perspectives.

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Disconfirming Evidence

Disconfirming evidence is a process closely related to triangulation in which the

researcher establishes themes and then searchers the data for evidence which confirms or

disconfirms the themes (Creswell & Miller, 2000). This process relies on the researcher’s

lens which represents a constructivist approach as it relies on examining multiple

perspectives on a theme. “The disconfirming evidence should not outweigh the confirming

evidence. As evidence for the validity of a narrative account, however, this search for

disconfirming evidence provides further support of the account’s credibility because reality,

according to constructivist, is multiple and complex” (Creswell & Miller, p. 127).

Researcher Reflexivity

Researchers begin a study with assumptions, beliefs, and biases. In the researcher

reflexivity process “researchers report on personal beliefs, values, and biases that may shape

their inquiry” (Creswell & Miller, 2000, p. 127). It is important for researchers to

acknowledge and describe their beliefs and biases early in the research process. This may be

done by including a section on the role of the researcher or by using interpretive commentary

when discussing the findings (Creswell & Miller).

Peer Debriefing

Peer debriefing is a process in which a disinterested peer reviews the data and

research process (Creswell & Miller, 2000; Lincoln & Guba, 1985). The debriefing serves

multiple purposes one of which is to play devil’s advocate. Others include challenging the

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researcher’s assumptions, testing the next steps in the methodological design, and assisting to

clear the mind of the researcher of emotions and feelings that may be clouding the research

(Creswell & Miller; Lincoln & Guba).

Transferability

Establishing transferability is very different than establishing external validity as it is

“not the naturalist’s task to provide an index of transferability; it is his or her responsibility to

provide the data base that makes transferability judgments possible on the part of potential

appliers” (Lincoln & Guba , 1985, p. 316). This can be accomplished through the use of

“rich, thick description to convey the findings” (Creswell, 2003, p. 196) which will enable

someone, who may be interested in making a transfer, “to reach a conclusion about whether

transfer can be contemplated as a possibility” (Lincoln & Guba, p. 316). Thick, rich

description was used to convey the findings.

Dependability

Dependability, the equivalent of reliability in conventional research, plays a minor

role in qualitative inquiry (Creswell, 2003); however, Lincoln and Guba (1985) recommend

the use of an inquiry auditor who examines “the process of the inquiry, and in determining its

acceptability the auditor attests to the dependability of the inquiry” (Lincoln & Guba, p. 318).

The external reviewer fulfilled the inquiry auditor role as did the university mentor and

research committee.

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 Confirmability

The major technique for fulfilling confirmability is the confirmability audit. The

inquiry auditor conducts this audit by examining the “product – the data, findings,

interpretations, and recommendations – and attests that it is supported by data and is

internally coherent” (Lincoln & Guba, 1985, p. 318). The audit determines the study’s

trustworthiness by assessing the confirmability, dependability, and “providing an external

check on steps taken in relation to credibility” (Lincoln & Guba, p. 323). Confirmability can

also be strengthened through the use of an audit trail (Creswell & Miller, 2000; Lincoln &

Guba). The audit trail is created by the researcher “documenting the inquiry process through

journaling and memoing, keeping a research log of all activities, developing a data collection

chronology, and recording data analysis procedures clearly” (Creswell & Miller, p. 128). The

researcher may provide evidence of the audit trail throughout the document or in the

appendixes (Creswell & Miller).

Data Collection Procedures

“In case study research, the researcher collects extensive data on the individual(s),

program(s), or event(s) on which the investigator is focused (Leedy & Ormrod, 2001, p.

149). The data in this study was collected via interviews; the participants and data were

protected.

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 Data Collection

“Two principal uses of case study are to obtain the descriptions and interpretations of

others” (Stake, 1995, p. 64). Phenomenon are not seen the same by everyone; therefore,

qualitative researchers discover and portray multiple views. “The interview is the main road

to multiple realities” (Stake, p. 64). Data was collected from senior leaders and human

resource specialists in public, private, and nonprofit organizations in a specific geographical

area through the use of semi-structured open-ended interviews in which the interviewer had

predetermined questions; however, respondents were unconstrained in their answers.

Structured open-ended interviews have several advantages: (a) they are adaptive so a

respondent can discuss a knowledge area in depth, (b) they are potentially a rich source of

data, (c) they are empathic, and (d) they can build rapport (Nadler, 1977). An interview

guide, as suggested by Patton (2002), was utilized to provide a framework for discussion and

consistency in collecting data from each interviewee. The interviews were audio tape

recorded using two recorders to compensate for technical difficulty, transcribed by the

researcher, and coded for analysis.

Protection of Human Participants

The research study design posed minimal risk to the participants and the

organizations which they represent. The geographical area in which the study took place was

not disclosed. Additionally, each participant was assigned a pseudonym; therefore, there was

no identifying information. The University’s policies regarding the protection of human

participants and relevant laws were adhered to through the following actions. The

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participants were located using chain sampling procedures. Written informed consent to

participate in the study was obtained from each participant and was verbally confirmed prior

to beginning the interview. The audiotapes and transcripts of the interviews were available to

only the principle investigator and the member check was limited to the participant’s

interview. The University Review Board approved the letter to the participants, Informed

Consent Form, and the Institutional Review Board (IRB) application.

Interview Guideline Questions

Before beginning the interviews, the participants were asked if they had any questions

regarding the Informed Consent Form or other confidentiality issues. Permission to audio

tape record the interview was also solicited as well as biographical information. The

following is the rationale for each section of the interview and the questions used to elicit

data to address the research questions.

Rationale for questions one through five: To obtain basic data and establish the

context of the participant and the organization.

1. Before beginning, do you have any questions concerning the Informed Consent
Form?

2. Precautions will be taken during all phases of the research to protect the
privacy of participants and organizations as well as to maintain confidentiality
of the data. The participants in the study will be assigned a pseudonym so their
identity and the organizations they represent will not be disclosed. Do
you have questions regarding the confidentiality of the data?

3. The interview will be audio taped and transcribed. A copy of the transcription
will be provided to you to help ensure accuracy. May I have your permission
to audiotape the interview?

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 4. For the purposes of the transcript, please state your name, your title, and the
name of the organization.

5. Please briefly describe your educational background and experience

that assisted you in preparing for your position.

Rationale for questions six through 13: To investigate the current procedures for

selecting, assessing, and developing future leaders.

6. U.S. Labor Statistics indicate that 60 million baby boom generation workers
will be eligible to retire over the next 15 years. What are the retirement
projections in your organization?

7. How many of the retiring baby boomers are in senior/executive leadership

positions? How soon will they be eligible to retire?

8. Does your organization have a formal succession management system to

replace the senior/executive leadership positions? Please explain your system.

9. How are individuals with leadership potential identified and assessed?

10. What leadership development methods are available to individuals with

leadership potential?

11. Are you attempting to retain older workers? How?

12. If your organization needs experienced leaders, would you consider re-hiring
retired leaders? Would you hire executives who have retired from other
organizations?

13. If retired leaders are re-hired, what amenities are you prepared to offer? (part-
time, reshaping jobs, telecommuting, part-time consulting assignments, job
sharing, flexible scheduling, extended time off, sabbaticals?)

Rationale for questions 14 – 18: To assess the involvement of women in

leadership positions.

14. How many senior/executive positions does your organization have? How
many are filled by women? Have you observed any difference between women’s
and men’s leadership style or effectiveness?

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 15. How many individuals are on your board of directors? How many positions
are filled by women?

16. Does the organization plan to increase the number of women in

senior/executive and board of director positions? How?

17. Research indicates that women are not being placed in line positions
(positions with financial responsibility) that prepare them for senior
leadership. Does your organization place women in line positions as part of
development? How many women are in line positions?

18. Do you see the impending leadership crisis as an opportunity to increase the
number of women in senior/executive management?

Rationale for questions 19 – 20: To investigate the knowledge management systems

currently in use.

19. The baby boom generation leaders have a large amount of knowledge.
Have you established a knowledge management system such as a procedure
manual, software, or product literature which can be stored and transmitted
between individuals?

20. Tacit knowledge, knowledge that is “intuitive, difficult to express, gained

through experience, and shared with others through interaction” (Zach, 1999,
p. 52) is more difficult to capture. Do you have any current processes which
may capture tacit knowledge? Do you plan to add processes in the future?

Data Storage

The audio tape recordings will be secured in a fireproof safe. The transcripts will be

stored on the researcher’s personal password protected computer and backed up to an

external drive accessible only to the researcher and stored in the safe with the tapes. After 7

years the audio tapes will be destroyed and the transcripts will be deleted from both the hard

drive and external drive.

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 Data Analysis Procedures

“The best preparation for conducting case study analysis is to have a general analytic

strategy” (Yin, 2003, p. 115). Yin describes three analytic strategies. Developing “a

descriptive framework for organizing the case study” (Yin, p. 114) is most applicable to

exploratory research.

In naturalistic inquiry, the distinction between data gathering and data analysis is less

absolute than in experimental design (Patton, 2002). While in the field “ideas for making

sense of the data that emerge constitute the beginning of analysis; they are part of the field

notes” (Patton, p. 436). Immediately following each interview the field notes were typed and

added to the case file. The interviews were transcribed verbatim from the audio tapes by the

researcher. To complete the member check, a copy of the respective transcript was provided

to each participant to ensure accuracy of the transcription. The transcribed interviews were

then analyzed for themes or issues (Creswell, 2003).

When using multiple cases, “a typical format is to first provide a detailed description

of each case and themes within the case, called a within-case analysis” (Creswell, 1998, p.

63). The within-case analysis is followed by a thematic analysis across the cases, referred to

as cross-case analysis or cross-case synthesis (Creswell, 1998; Yin, 2003).

Within-case analysis used inductive analysis in which patterns or themes were

discovered. “Findings emerge out of the data, through the analyst’s interactions with the

data” (Patton, 2002, p. 452). This process of coding included “(a) defining clear categories

(codes), (b) organizing these into more or less explicit structure, embodied in a ‘thesaurus’ or

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codebook, and (c) pairing of the codes with appropriate places in the database” (Miles &

Huberman, 1994, p. 45). Using the themes established in the within-case analysis, deductive

analysis was utilized for cross-case analysis.

“Qualitative software programs facilitate data storage, coding, retrieval, comparing,

and linking …” (Patton, 2002, p. 442). Miles and Huberman (1994) posited “that the

researcher who does not use software beyond a word processor will be hampered in

comparison with those who do” (p. 44). Ragin and Becker (1989) (as cited by Miles and

Huberman) “add that the microcomputer is especially useful for ‘case oriented’ researchers,

those interested in interconnected arguments about interrelated events …” (p. 44). Qualitative

software, NVIVO 7, was used to assist with data management, coding, and comparing cases.

NVIVO 7 is the latest version of software originally known as Non-numerical Unstructured

Data with Indexing, Searching, and Theorizing (NUD*IST). It is important to note that

“computer programs can facilitate the work of analysis, but they can’t provide the creativity

and intelligence that make each qualitative analysis unique” (Patton, p. 42). The software was

used to assist with analysis; however, the researcher was emerged in reviewing transcripts,

listening to the audio tapes of the interviews, and interacting with the data.

Limitations of the Methodology

Case study methodology has limitations some of which can be decreased by

increasing credibility, transferability, dependability, and confirmability. The actions that

were taken to increase these measures were previously discussed in the measures section.

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The limitations which the researcher can not influence, such as participant bias, were

discussed in Chapter 1.

Expected Findings

I anticipated that the findings would be similar to the national and international

research studies discussed in the literature review. The non profit organizations would have

prepared the least for the leadership crisis; however, they would have a larger percentage of

women in senior leadership positions and would have informal processes to enhance the

transfer of tacit knowledge. I also anticipated that the public organizations would have

succession planning and management systems in place; however, they would have fewer

women in senior leadership positions and would not be preparing women for those positions.

They also would not have processes to transfer tacit knowledge. Private organizations

differed by their size. It was anticipated that the larger private organizations would have

succession planning and management systems as well as diversity programs; however, they

would not have processes to transfer tacit knowledge. The smaller private organizations

would not have succession planning and management systems in place; however, they would

have more women in senior leadership positions and informal processes to transfer tacit

knowledge. The actual results of the research are presented in Chapter 4.

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 CHAPTER 4. RESULTS

This chapter presents the data obtained through interviews which explored how

organizations will be affected by the perceived leadership crisis and investigated if actions

are being taken to increase the number of women in executive positions while preparing for

the perceived crisis. If organizations are implementing knowledge management systems as

part of their succession planning was also investigated.

Interviews

A total of eight interviews were conducted with senior executives and human

resource directors. The interviews were scheduled at the convenience of the participant, were

conducted in person, and ranged in length from one hour to one-and-one-half hours. The

participants were given the interview guideline questions prior to the interviews. With the

permission of the participant, the interviews were audio taped after which they were

transcribed verbatim by the researcher. Each transcript was reviewed for accuracy by the

participant.

Participants

Maximum variation sampling was used to select the eight participants who

represented various sectors and included the owner of a small privately owned retail business

and the partner of a small service organization. The Human Resource Director of a large

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manufacturing organization, part of a Fortune 500 large international conglomerate, was

interviewed; responses to some questions resulted from the parent organization’s

involvement. The Chief Administrative Officer and Chief Human Resource Officer of a

utility was the second participant interviewed in the large organization sector. A Human

Resource Director of a large non-profit organization participated as did an Associate Director

of a small non-profit organization. The small non-profit was a branch of anther nonprofit

which influenced some responses. State government’s Executive Director of the Department

of Personnel and Administration participated as well as the Manager of Employee and

Organization Development for a city government.

Data Presentation

As previously discussed, the analytic strategy most applicable to exploratory research

is “developing a framework for organizing the study” (Yin, 2003, p. 114). The framework

was established by the rationale for each section of the interview guideline questions

presented in Chapter 3. “When multiple cases are chosen, a typical format is to first provide a

detailed description of each case and the themes within the case, called a within-case

analysis…” (Creswell, 1998, p. 63). Each individual case is presented with headings

identifying the common themes followed by the field notes, “ideas for making sense of the

data …” (Patton, 2002, p. 436), additional information discussed, as well as additional

themes that emerged. The field notes include rich, thick description which may enable

transferability as previously discussed in chapter 3 method.

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 The small organizations are presented first, followed by the large organizations, non-

profit organizations, and lastly the public organizations. Discussion of each organization

begins with the retirement projections for the organization as well as the senior leadership

positions. The formal succession management systems and leadership development methods

are discussed followed by retention and re-hiring of older workers. The last two sections

include the assessment of women in leadership positions and how knowledge is being

managed and retained.

Small Retail Organization

The small retail organization was purchased by its current owner who has

substantially expanded the rental piece of the business. Two of the seven employees are in

the baby boom generation, the owner and the manager who fill the only two executive

positions. The other employees are rather young.

Formal Succession Management and Leadership Development Methods

The small retail business does not have a formal succession management system and

due to external threats the owner is somewhat skeptical of the organization’s longevity;

however, she noted that sale of the organization may be a possibility. The management

position, other than the owner, has previously been filled by an employee who was ready to

move into management. Currently there is one person who takes more responsibility than the

others when the manager and owner are not there; however, that person is not being groomed

to be a manager per se. Although, the current manager had a great deal of previous retail

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experience, to keep current the owner has offered the manager classes and they have attended

seminars together.

Retaining and Hiring Retirement Eligible Workers

The owner anticipates continuing with the business, is attempting to retain the

manager who is in the baby boom cohort, and is open to hiring leaders who have retired from

other organizations. Retired teachers are commonly hired in the industry. Flexible scheduling

and part-time employment are currently very prevalent for all employees and would be

available for retired individuals as well as the young.

Assessment of Women in Leadership Positions

The organization has two executive positions one of which is a woman. It is a family

held S corporation with two women and one man as officers. There is no formal outside

board of directors. Observing managers over several years, the owner felt that women care

more about how employees are feeling and if they are happy. If senior management or the

board was increased, women would definitely be considered as “women are savvy, good

jugglers, resourceful, and less wasteful” (small retail business participant). There are no line

management positions and the owner is the chief financial officer and maintains control over

the finances. Whether the potential leadership crisis is an opportunity to increase the number

of women in leadership positions was not applicable to the organization; however, the sibling

who may be interested in the business is a woman.

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Knowledge Management

The small retail business has procedure manuals; administrative procedures that work

well are documented. Other processes are more informal. Should a sibling choose to take

over the business, tacit knowledge would be passed on by spending a fair amount of time

together watching, listening, doing, and discussing. There are many different areas involved

in retail especially the rental side that one learns over the years by doing so the owner

believes that passing on tacit knowledge is very important.

Field Notes

There were several significant points of discussion some of which emerged as

common themes. The first is the discussion regarding the lack of a succession planning.

When asked if a sibling may be interested in the business the small retail owner’s response

was “one might be. But I think as far as the big question, as far as our organization, is the fate

of small retail. I am not overly optimistic that this is going to be something that lasts forever.

I would say that 10 years would be amazing and so I don’t know that that’s something I want

to pass on to my children or want them to do.” In a discussion regarding large corporations

forcing small businesses out of business, the participant noted “unfortunately, I think that’s

really the way of the world. I don’t think it’s an if I think it’s a when.”

A second discussion of significance was the participant’s comments regarding the

younger employees. The owner stated “it seems like no one is really dedicated to a full time

job any more. Everyone wants flextime.” Flexibility may have contributed to the low

turnover; however, the owner also stated

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 the one thing is that it’s just always felt like family. We’ve had low turnover because
it’s more than a job. I think people get involved emotionally when they work in a
small place. Some of the x-employees got together and formed a band and now
they’re very tight and they didn’t know one another before that. Some of them got
married. It’s very interesting to watch people.

Small Service Organization

The small service organization was started by the two partners after leaving another

small organization. There are eight full-time employees and one half-time employee of which

three are eligible to retire within 5 to 6 years one of which is a partner.

Formal Succession Management Systems and Development Methods

The small service organization does not have a formal succession plan; however, over

the last couple years they have hired individuals in a more specific age range who after

working in the organization for 5 or 6 years may be interested in evolving into a partner.

When hiring, they search for individuals with experience and from there it is on the job

training, on the job development, and being a small firm the partners are interacting with

everyone on an ongoing basis; the partners are readily available to talk with staff members.

Maintaining professional certification requires 40 hours of continuing education annually.

Although employees are encouraged to take courses of interest to them, the partners are

involved in approving the courses.

Retaining and Hiring Retirement Eligible Workers

The small service business has very little turnover and would attempt to retain

retirement eligible workers by offering part-time or seasonal work. The partners are open to

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hiring retired leaders and would offer flexibility in terms of part-time as long as the retiree is

willing to work hard during the heavy work load season. They also are equipped for

telecommuting; however, the current employees prefer to work at the office.

Assessment of Women in Leadership Positions

The two executive positions, the partners, are men. The partners are also the board of

directors. When a new partner is brought in they are open to either a woman or man. In a

small service business there are limited line positions and all employees with the exception of

the receptionist have some hand in the financial piece of the company. When employees are

in charge of a client they take charge of the budgeting involved in completing the work for

the client. This participant felt that increasing women in executive positions in this profession

is inevitable as the people who are partners in the big firms have been there for 30 or more

years and when they became partners the mix of male/female was different than it is now.

Knowledge Management

The small service organization has procedure manuals and check lists as well as

specific literature developed by others that is used for guidance in certain areas. Because the

organization has repeat clientele, much of the tacit knowledge is in regard to the clients.

Therefore, when the staff is working with a client the partner discusses with the staff person

what is important to know about the client and any unique situations. The staff prefers to

work in the office so they are sharing information on a daily basis.

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Field Notes

Although the small service business has a great amount of responsibility to its clients,

the atmosphere is very casual and a feeling of community is evident. The partner interviewed

noted that “we are set up to do telecommuting with our systems. We talk about it and it’s

easy to arrange telephone communications so clients don’t necessarily know where you’re at.

We’re set up to do it; we haven’t done it a lot. I think in general most people prefer being

here.” It was also noted that the partners are readily available to meet with the staff and the

staff regularly interact with one another. The participant also noted that the turnover is very

low.

Large Manufacturing Organization

The manufacturing organization has 650 employees worldwide and is part of a large

Fortune 500 conglomerate. Retirement eligibility is determined by the rule of 65 which is age

55 plus 10 years of service. Using this rule, roughly 10-15% of the office staff are eligible to

retire over the next 3 to 5 years while 25% of the factory workers are eligible. The factory

workers are very skilled craft workers and many of their jobs are dying out and difficult to

train for. In regard to executives, the president will retire in 2 years and 20% of the executive

staff are retirement eligible according to the rule of 65.

Formal Succession Management Systems and Leadership Development Methods

The large manufacturing organization has a formal succession planning process in

which every business unit creates a leadership development review and starting at the top

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level the individuals are assessed from which a determination is made as to whether they are

ready to move to another position or if additional development is needed. The process also

identifies leadership gaps and who may be available or could be groomed to take the

positions. In terms of identifying potential leaders, skills, abilities, and education are key

elements. Managers look for people who step up, take initiative, and appear to have

leadership abilities. The potential leader is then given the opportunity to accept leadership

training or remain an individual contributor. The parent organization offers numerous

leadership courses through their online education system. They also have a leadership school

at the corporate parent’s location for which a manager may nominate an employee to attend.

The employees being groomed for top leadership positions take classes at the Darden School

of Business and at Wharton. The classes are for one or two weeks and are taken with other

leaders within the parent company. The organization also has an Employee Scholar Program

which is offered to all employees and pays full tuition for all courses completed with a grade

of C or above. It also offers 50% of the time one spends in class off from work to study as

well as the use of the organization’s computers and printers. When a degree is completed, the

employee is given a graduation gift of stock equal to $10,000 in the parent company. When

completing a second degree, the employee may be given another $5,000 or $10,000 in stock.

Retaining and Hiring Retirement Eligible Workers

The Human Resource Director of the large manufacturing organization did not recall

any conversations regarding retaining older workers; the conversations are about people’s

performance, their contribution, and their value to the company. There is an effort to retain

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all workers by letting them know their contribution is valued, and they are personally valued.

The organization has a policy stating that retirees can not return to the organization in any

capacity for at least 6 months. After that they may come back as a consultant contracted with

an agency. Consultants would be hired for a short term project rather than as a full-time

executive. Telecommuting and flexible scheduling are amenities currently offered. Part-time

is not offered and sabbaticals are typically not offered.

Assessment of Women in Leadership Positions

The President of the organization has seven direct reports, one being a woman. The

local office senior staff has 10 individuals and two are women while the board of directors is

at the parent company level. The board of directors has nine members and although, the

participant did not know the male/female ratio, women are in the minority. The participant

believes there are differences between men and women’s leadership style the largest being

that women are more collaborative and communicate more to insure that everyone’s voice is

heard. Women’s decisions are very thoughtful; they’re not quick to make decisions. Men’s

leadership style tends to be more autocratic.

The participant made special note that the organization is very engineering oriented,

engaged in research development, manufacturing, and computer programming and 30 or 40

years ago women were not getting those kinds of degrees; therefore, the organization is very

male oriented. However, the goal is to increase the number of women at all levels of the

organization. There is a women’s organization out of the parent company in which women

can talk about women’s issues, network with other women, and also discuss with other

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women not currently employed there, how to join the organization. Goals to increase

diversity are discussed at meetings and diverse slates are needed to fill executive positions as

well as any exempt level position. The slate which is provided to the corporate office must be

diverse and show that equal opportunity was given to all the various groups. The number of

women in line positions is minimal but there are some who have worked their way up

through the ranks. The impending leadership crisis is perceived as an opportunity to increase

the number of women in management and the goals are aggressive.

Knowledge Management

The large manufacturing organization is concerned about efficiency and processes

and is establishing systems to document the processes. They also have software systems and

product literature. The loss of tacit knowledge, which they term tribal knowledge, is a

concern. Employees are encouraged to share and to teach others. A skills matrix has been

developed in which everything that is needed to run the business is defined. The major

concern for loss of tacit knowledge is in the area of engineering; thus, a plan has been

developed. They started by developing the engineering matrix and determining who has each

skill and who doesn’t. Subject matter experts and their area of expertise were identified and

the ongoing plan is to pair them with junior engineers who are interested in learning their

area of expertise. Additionally, the experts have been dubbed the Go To people. These are the

people others go to when specific expertise is needed. It is the department manager’s

responsibility as well as the senior engineers to share the knowledge and make it available to

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the junior engineers. There is an engineering review board composed of senior engineers and

business leaders that meets quarterly to review opportunities.

Field Notes

The Human Resource Director believes the organization is a wonderful place to work

and stated that the employees are “long tenured and we trend at half the turnover rate of

manufacturing companies in the local area. So, our turnover is extremely low.” The

participant also noted

we have quite a few people who are retirement eligible, not to say they are going to
retire, because as of this year we had five retirements out of 325 [eligible]. People are
willing to stay with our company although they’re eligible to retire.

The five who retired were encouraged by a slight benefit offered by the parent company. The

low turnover is contributed to the organization’s people practices. One people practice is the

exceptional educational benefits and incentives. According to the participant, the CEO stated

that “he will have the best educated workforce on the planet.” Unfortunately, the

participation rate for the education benefit is less than 20% and not having participated is the

one big regret employees have when they leave.

The organization found that they needed a common language; therefore, it is in

process of having all employees attend the Franklin Covey Seven Habits of Highly Effective

People seminars, which is a major financial investment as the factory machines are stopped.

However, the belief is that common nomenclature will assist to increase efficiency.

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 During the discussion of the plans for retaining tacit knowledge the Human Resource

Director stated “it’s amazing how people at times don’t even know what they are expert at

because they know it so well.”

Large Utility

The large utility projects that roughly 2000 employees out of the 13,000 will be

eligible to retire over the next 10 years or between 200 and 300 each year. There are eight

senior executives and all eight will be retiring.

Formal Succession Management Systems and Leadership Development Methods

There is a succession plan only at the highest level of the corporation; however, the

staff just presented the board of directors a comprehensive people strategy which includes a

complete succession plan and how to implement it. At the time of the interview, they were

between the first thoughts of succession plan creation and implementation. The organization

currently has a series of leadership development programs. At the highest level there is a

Leadership Advantage program in which various business areas nominate a number of the

high individuals to go through a series of off site classes and projects. The classes are run for

two consecutive years. A level below there is the Leadership Pipeline program which is

focused at the managerial and director levels giving future executives a longer time frame to

develop. Additionally, various organizations within the corporation have other approaches

that they have applied.

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Retaining and Hiring Retirement Eligible Workers

In certain areas there are specific retention needs given issues that are currently on the

table. The large utility organization is going through the thought process of how the retired

workforce may creatively be leveraged. Currently there are a number of examples where this

is done but more thought will be given to it. The baby boom phenomenon represents both a

challenge and a fundamental opportunity for the utility environment. People tended to go to

utilities because it was safe which attracted a certain cultural bias of maintaining the status

quo. However, the utility world is changing. It will require significantly more technological

savvy and significantly more openness toward change. The opportunity is how to pass the

right amount of knowledge to the next generation and how to restructure the value

proposition, safe verses innovative, so it attracts the right generation X and generation Y

individuals.

Assessment of Women in Leadership Positions

There are eight senior executives and three are women while 20% of the board of

director’s positions are filled by women. Looking across the senior executives, the participant

has not observed differences in women’s and men’s leadership styles. The participant

believes that it is to everyone’s advantage to be more diverse and the utility industry is not a

particularly good place to look for diversity; to be a good utility the customer base should be

reflected. The organization, driven by the CEO, is very focused on diversity; however, it does

not distinguish between female diversity and the other components of diversity. Rather, the

participant believes that inclusion is the important issue so that there is openness to different

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thought processes and different ways of looking at a business. The utility is organized into

four regional utilities, two of the four CEOs are women, own their profit and loss statements,

and represent roughly 80% of the total financial wherewithal. In the various line groups,

there are a number of individuals with diverse backgrounds that run large operations and

large budgets.

Knowledge Management

The large utility has procedure manuals, process flows, and everything is recorded;

however, the participant believes there hasn’t been the right amount of research and

development and the right amount of earth shattering technology deployment that not simply

perpetuates the same knowledge but transforms that knowledge into a kind of digital

component that will be predictive. This utility has done a lot in this area but has not

translated it into useable information so that everybody knows how to leverage it. Retaining

tacit knowledge is an area that has not been investigated. The participant noted “it’s one thing

to capture a process and a procedure; it’s another to establish the processes where cultural

norms and values get transmitted.”

Field Notes

When discussing the leadership development opportunities, The Chief Administrative

Officer and Chief Human Resource Officer stated:

As you examine leadership crisis and change in the baby booming and you put that
against a backdrop of a flattening world and everything else you read, the reality
becomes that we are more intertwined in ecosystems and you have to start investing
in ecosystems not in just your heritage.

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To this end, the participant nominated a person from their outsourcing partner to participate

in the utility’s Leadership Advantage program. In regard to the leadership crisis, the

participant is looking at it as a challenge but also as an opportunity to continue changing

from a safe culture to an innovative culture. The participant noted that the cultural heritage

has changed over the years;

The community picnics, a different sense of commonality and as companies, to

survive, have merged and grown bigger and become more distributed a lot of that
type of community base has gotten lost. I think our customers object to that at the end
of the day. It’s a tough line to walk between the economies of scale that come from
being big and a loss of a common identity and an involvement in the community that
results from getting big.

Large Non-Profit Organization

Out of the 1,250 employed at the large non-profit, 115 are eligible to retire over a 12

year period. One executive is currently eligible for retirement and the next executive eligible

to retire is currently 55 years of age.

Formal Succession Management Systems and Leadership Development Methods

The large non-profit does not have a succession management system; however, the

Human Resource Director’s charge for 2007 is to develop and implement a formal

succession planning process. Evaluation and development of future leaders to their fullest

potential will be part of the new process as the current process is very informal. In the

informal process, when individuals are identified who may have leadership potential they

may be assigned to a project or to a committee that will give them additional experience or

they may be promoted. Currently the leadership development and interpersonal skills training

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are at a baseline level. Some trainers have been certified through DDI’s course offerings and

courses such as conflict resolution, coaching for success, managing performance, and

diversity, what the Human Resource Director calls foundational courses, are required of all

leadership – directors, managers, and supervisors. When someone who has not had any

previous leadership training is promoted to a leadership position the new leader completes

the external Employers Council’s 2 day front line leadership courses. A tuition

reimbursement program is available which supports any kind of degree program or further

education. These current internal courses will be expanded in the succession plan and new

external courses will be added as well.

Retaining and Hiring Retirement Eligible Workers

The organization would like to keep as many workers in tact as possible. There is a

shortage of workers in the industry and although this area has not felt the shortage as much as

other areas, the goal is to keep its current workers. The Human Resource Director was very

positive in regard to re-hiring their retired workers or hiring retired workers from other

organizations as retired workers have previously acquired the skills needed and could step

into a position if only for an interim period such as a year. The organization is flexible to

whatever arrangements would work as long as it works for the individual and the

organization.

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Assessment of Women in Leadership Positions

Prior to discussing the female/male questions, the participant of the large non-profit

stated that the organization is in a female dominated industry. There are nine positions on the

leadership council, the Chief Executive Officer and the directors who report to him, and four

are filled by women. The volunteer board of directors has seven members and three are

women. The participant has not observed differences in women’s and men’s leadership styles

or effectiveness. The organization is not looking to increase or decrease the number of

women but rather looks for the best qualified person; however, they are looking for minority

candidates for the board of directors. The department managers are the line positions and

80% are women thus increasing women in leadership positions is not an issue; the

demographics of the organization are 70-75% women.

Knowledge Management

The large non-profit has documented information in manuals; however, they do not

have a knowledge management system that inventories the skills, education, and

certifications of the employees. The Human Resource Director is aware of a number of

software companies with comprehensive automated systems that would dove tail with their

succession planning; the hope is that they may have one in-house in the future. For now they

do everything more informally. Tacit knowledge retention is approached through mentoring.

New employees are assigned mentors who assist the new employees to master the initial

learning curve quickly so they are effective and efficient. The knowledge worker connects

with the newer person to transfer knowledge as quickly as possible. This is the only

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knowledge transfer method currently in place. When asked if tacit knowledge transfer will be

part of the succession plan, the Human Resource Director responded “I don’t know how to

do that today. If I do, then absolutely we’ll add it.”

Field Notes

When discussing hiring retired leaders, the HR Director discussed a volunteer who

was a military colonel, realtor, traveled the world, owned his own business, is very computer

literate and can out perform most of the employees. They take every advantage of him they

possibly can. Also noted was that the CEO is male.

Small Non-Profit Organization

Of the seven employees in the small non-profit, three are in the baby boom generation

age range and all three are in the only executive positions; however, two are at the end of the

generational cohort.

Formal succession Management Systems and Leadership Development Methods

The small non-profit organization as well as the parent organization does not have a

succession management system; they mainly hire from the outside as most of the positions

are fairly unique and do not have a second in line so there is no one to groom. Therefore,

leaders are located through external sources. The organization supports employees getting a

degree as well as professional development such as attending conferences or other activities

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both in their field of expertise and to improve technical skills. Whether the employee uses

these for leadership training is up to the employees and their supervisors.

Retaining and Hiring Retirement Eligible Workers

For the small non-profit retaining older workers has not been an issue as it is a

relatively new organization and doesn’t have people who have reached retirement age.

However, they have a group of senior advisors and other people who they contract with for

short term and long term projects. These people are either retired or have scaled back their

work load and have been very helpful as they have deep experience. The non-profit offers

much flexibility. A new director was recently hired who will live in another state and retain

some affiliation with a university there. The consultants live in other states and that would

apply to other retired people as well.

Assessment of Women in Leadership Positions

In the small non-profit there are three executives and one is a woman which is a

recent transition from two women. The board of directors has eight members and five are

women. This participant noted that he has worked mostly for women and the only difference

he has experienced is communication; men aren’t always as communicative of their feelings

or the direction they want to go as they could be. In regard to increasing the number of

women, the staff can guide the election of board members but what they are most interested

in is people who will be good leaders. There aren’t any line positions per se; however, they

have been developing the staff to take on more responsibilities and the staff is ready to do

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so. The staff could then move up to other positions if the organization grows or to positions

within the parent organization. The participant felt that generally if organizations develop

more women, there will be more women executives; however, for this small non-profit

increasing the number of women is not an issue.

Knowledge Management

The small non-profit has some areas that are very well documented such as

conferences, budget, and web development; however, the knowledge of the executives is less

well documented. The individual who was the first director and was director for 17 years

recently left the organization. Prior to her departure, in an attempt to capture the Director’s

tacit knowledge, the Associate Director would put together pages of questions and the two

directors would have conversations; however, there wasn’t enough time to get the

organization up on all the knowledge she had. The organization is trying to develop

information sharing among its members through technological means. Members who are

interested in a specific topic can keep track of the latest on the topic and share it with the

members at large. Quite often one of the directors will write a report for a member who asks

a question or requests a list of references; however, this information has not previously been

shared with the members at large. It is anticipated this information will be shared with all

members as well. The Associate Director is also interested in using Web Logs commonly

referred to as blogs as another attempt to share knowledge with members. Using these

technologies may be a challenge as emerging terminology means different things to different

people.

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Field Notes

The organization is not only flexible but also creative; the newly hired Executive

Director lives in another state and is in the early baby boom generation cohort. The

participant who is toward the end of the baby boom generation cohort commented “but what

is retirement?” The participant, a male, noted “I’ve worked mostly for women my whole life

and I’ve really enjoyed that.”

State Government

The state government employs 32,000 workers, of which 5,000 will be eligible to

retire in the next 4 years. This number excludes higher education which is general

government. Although the exact number was not known, the participant guessed that most

senior executive service positions are in the baby boom generation.

Formal Succession Management Systems and Development Methods

The state government has a merit selection system and the state constitution prohibits

succession planning. However, if the participant, the current Executive Director of the

Department of Personnel and Administration, is asked to stay by the new governor, a plan for

a new classification called Management Intern may be proposed. This new classification and

process could be done under the merit system and would be a form of succession planning.

The state offers a lot of training opportunities. Most of the major departments have a whole

staff development department in which they teach from nominal computer skills, how to

work in a diverse environment, up to leadership. The larger agencies assist the smaller

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agencies with development. The participant also, every two years, offers the whole

management team a day out to hear a variety of speakers or will bring in professionals for

four or five half-day sessions on leadership.

Retaining and Hiring Retirement Eligible Workers

The state government participant indicated that they neither attempt to retain older

workers nor attempt to get rid of them and that is because the state has a classified personnel

system. The state frequently re-hires retired leaders as well as other workers. When a special

project occurs or there are increased case loads, under the public employment and retirement

system, a worker can come back for 110 work days per year and still draw a full pension in

addition to their former salary. This happens at all levels except the top senior executive

positions. The only senior executive positions that are brought back are information

technology (IT) positions. There are usually not added amenities; they just come back to their

old jobs. A lot of retirees return during the winter months and work November through

March. Some IT retirees work three days a week so the 110 days can be spread out to

additional weeks. How the retiree works is dependant upon the needs of the department.

Assessment of Women in Leadership Positions

In the department in which the interview took place there are eight senior executive

service positions plus the Executive Director of the Department of Personnel and

Administration and none of the positions are filled by women. However, in the total

management team, which is about twice that size as it includes the classified personnel such

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as the Chief Financial Officer and Human Resource Director, 30-40% are women. There is

not a board of directors in the state government system. The participant reports to the

governor (a male), the lieutenant governor (a female), and the chief of staff (a male). In

regard to leadership differences between women and men the participant observed

occasionally that some women have difficulty being a subordinate of another woman in the

very high level positions. A second observation is that occasionally a woman prefers to be

surrounded with subordinates who agree with her. Another observation is that women tend to

be more empathetic and patient thus in the long run their teams are stronger. Men on the

other hand tend to have less patience particularly with personal issues. The state government

participant does not plan to increase or decrease the number of women in executive positions;

it is strictly the merit selection process. There clearly is not a problem in government with the

number of women in line positions and there are a lot of top financial positions that are filled

by women. The participant disagrees that there is an impending leadership crisis unless age

discrimination becomes a problem and older baby boomers that choose to continue working

are denied the opportunity to work by fellow baby boomers who are trying to be out with the

old. If this does not happen and those with the ability and desire to keep working do, there

will not be a crisis.

Knowledge Management

If there is a crisis, continuity of state government is essential so everything is well

documented. What isn’t documented is the institutional memory to record why things are

done the way they are. To increase the institutional (tacit) memory, the participant includes

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all the division directors and one tier down, all the deputy directors of each division on the

management team; however, this is not the situation with other senior managers. This allows

the larger management team to exchange a few years of memory, allows for more story-

telling, and assists those who are interested in moving up. With a new Governor and a new

Chief of Staff coming in, each department is writing a report giving an overview of each of

the sections, why they are there, what their main function is, and then a discussion of where

they are in the current activities and why the current activities are underway.

Field Notes

When filling vacant positions, the Executive Director of the State Department of

Personnel and Administration noted he attempts “to have about a third of my top employees

come in from the outside because I think it generates new ideas, good ideas, it’s a new way

of looking at it.” That also allows the government employees “plenty of promotional

opportunities within so people think there’s a benefit of being in state government.”

The participant clearly feels there will not be a leadership crisis if the older baby

boom generation leaders are allowed to continue working past retirement age and stated:

There’s no question, if 100% of the people in the baby boom generation all left work
the second they could leave work and just became this retired society out there, the
damage to social security and everything else would be astronomical. I just don’t
think that’s going to happen.

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 City Government

The city employs around 1,200 individuals, 684 who are in the baby boom generation

and projects that 553 will be eligible to retire over the next 15 years. Seventeen of the 22

executives will be eligible to retire over the next 15 years.

Formal Succession Management Systems and Development Methods

The city does not have a succession management system; however, they are in

process of developing one. At the time of the interview, the research had been completed and

the goals established which are to match the best processes that have been seen to the city’s

culture as well as to keep the succession management system as simple as possible.

Currently, city employees self-identify and apply for jobs for which they are in competition

with internal and external applicants. Previous budget cuts affected training programs and the

participant was hired to rebuild the training department. Currently there is an employee

orientation when first hired and new supervisory development for those hired as a new

supervisor, new to the city, or new to supervision. There is a sequence of classes taught by

directors and line managers in which new supervisors learn to follow the city processes

correctly, learn city policies, and other such activities. The second level, Civics 101, is

currently being developed and is an orientation to being a leader in city government. These

courses will be developed and taught by directors at the city. The third level which is the

leadership piece is a year away in terms of development. It will have a 2 year training

component for those who identify themselves as interested in a director level job. Those who

self-identify will be in training with current city leaders.

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Retaining and Hiring Retirement Eligible Workers

In the city there is a longevity payment. The longer employees work the higher the

payment when they retire. The Public Employees’ Retirement Association (PERA) also

encourages longevity; therefore, the expectation in the city is life-time employment. The city

re-hires retired employees and they hire executives who have retired from other organizations

as well. Because of PERA, the retired employees must work part time as retirees can work

only 110 days per year and still receive their retirement. In regard to amenities, the city

encourages telecommuting and part-time consulting contracts are offered to those with

adequate experience and background. Job sharing and flexible scheduling are offered and the

city is beginning to explore sabbaticals. The amenities are currently offered to all employees,

not just those that are re-hired.

Assessment of Women in Leadership Positions

In the city government there are 22 executive positions and 10 are filled by women.

The board of directors is the city council which is an elected body so the gender mix is

determined by the citizenry. There are nine positions on the city council three of which are

filled by women. The participant asked the department for feedback regarding differences in

women’s and men’s leadership style. The feedback included that leadership style is

determined more by training, education, and background than it is by gender; an individual

with an engineering background has a different leadership style than an individual with a

human resources background. The city leaders have not discussed increasing the number of

women in leadership position. Increasing the number of women on the board is up to the

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citizenry; however, there are an extensive number of volunteer boards that support one of the

many initiatives in the city on which individuals can learn how the internal portion of the city

works after which they can present to the citizenry their knowledge and how they have

already represented them in certain positions. Putting women in line positions is not an issue

in the city as there is a preference for gender equity. There are 540 management employees

of which 324 are women. There are more women police than almost any other city as well as

women fire fighters. Looking at the city from a leadership perspective, there are strong

women leaders in line positions. It appears that individual women see the leadership crisis as

an opportunity within the city. Most of generation X is aware that there will be leadership

positions open both corporately and in government; however, the participant personally

believes that throughout the general population there is a large number of generation X that

don’t want to work in large organizations and are not interested in lifetime employment. So

the city will need to become more efficient, combine departments, and have fewer leadership

positions at the very high levels. There would be more middle managers and line managers.

This work has not been done.

Knowledge Management

To this point knowledge has been passed on by re-hiring retired employees as

consultants when the need arises; however, employees are aware that there needs to be cross-

training and discussions have taken place regarding giving younger employees higher levels

of responsibility earlier in their careers in order to get some of this knowledge in place. There

is some discussion regarding process mapping, training booklets, and online training but it is

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in the beginning stages. The participant has a background in knowledge transfer and was

hired to assist in determining what knowledge needs to be transferred and then how to

effectively transfer that knowledge.

Field Notes

The hope is that the extensive 2 year leadership training program, which the city will

begin to develop in approximately a year, will become multi-city. The participant discussed

that other nearby cities are being approached to create a regional pool of people who might

work in another city and then return to the city or vice versa. This would broaden the

experience. When discussing women in leadership positions the participant believes that the

real crisis is whether there will be enough people who are adequately prepared to fill the

leadership positions:

really at stake are the government as organizations and corporate have been
created without efficiencies in mind. I think that’s much more likely to be the threat
than gender equity or anything along those kinds of lines. Just the need to find
competent people is going to push the organizations to be far more efficient and
streamlined than what they are now.

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 CHAPTER 5: DISCUSSION

The purpose of the study was to explore how organizations, in a geographically

defined area, will be affected by the perceived leadership crisis and to investigate if actions

are currently being taken to increase women in executive positions while preparing for the

crisis. The research attempted to answer the question “How can organizations increase

women in executive leadership positions while preparing for the perceived leadership crisis?”

The final chapter presents a cross-case analysis of the themes that emerged from the within-

case analysis, a comparison of the findings to the literature, and the field notes which present

additional unexpected themes. The relationship of the research findings to the five research

sub-questions presented in Chapter 1 and the relationship of the findings to the research

question are discussed. The chapter ends with recommendations for further study.

Data Analysis and Comparison to the Literature

Chapter 4 presented the data collected through interviews using within-case analysis

while cross-case analysis is presented here. The themes presented in within-case analysis are

used for cross-case analysis. The data that emerged is compared and contrasted to the

literature discussed in chapter 3.

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 Retirement Projections

The first section of the interview explored the number of employees projected to

retire over the next 15 years, the number of retirement eligible in senior/executive positions,

and the time parameters. Analyses of the retirement projections for each organization are

presented and compared to the literature.

Data Analysis

Table 1 presents the retirement projections reported by each organization interviewed.

Table 1

Retirement Projections

Organization Total Employees % Retirement % Executives Parameters

Eligible Retirement
Eligible

Small Retail 7 28.6 28.6 10 years

Small Service 8.5 35.3 11.8 5-6 years

Manufacturing 650 10-15 office 20 3-5 years

25 factory

Utility 13,000 15.4 100 10 years

Large Non-Profit 1,250 9.2 1 person currently 12 years

Next 7 years out

Small Non-Profit 6.25 48 100 15 years

State Government 32,000 15.63 Most likely 100 4 years

City Government 1,200 46.1 77.3 15 years

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 Because the organizations collected data using differing parameters, for comparison

purposes, Table 2 indicates the retirement projections over 5 and 10 year periods of time. To

compute this data assumptions made include (a) the number of retirees will be equal each

year, (b) the base for the small service organization was 5 years, and (c) the base for the

manufacturing company was 4 years. Instances in which there was a lack of information are

reported as unknown.

Table 2

5 and 10 Year Retirement Projections

Organization Total % Retirement % % Retirement %

Employees Eligible Executives Eligible Executives
5 years Retirement 10 years Retirement
Eligible Eligible
5 years 10 years
Small Retail 7 0 0 28.6 28.6

Small Service 8.5 35.3 11.8 unknown unknown

Manufacturing 650 12.5-18.75 office 25 25-37.5 office 50

31.25 factory 62.5 factory

Utility 13,000 7.7 50 15.4 100

Large Non-Profit 1,250 3.83 11.1 7.67 unknown

Small Non-Profit 6.25 0 0 16 16

State Government 32,000 19.53 100 39.06 unknown

City Government 1,200 15.35 26 30.74 51.53

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 The large manufacturing organization has the largest number of retirement eligible

employees, a possible 50% office and factory within 5 years and the possibility of 100%

turnover within 10 years. However, due to the retirement eligibility of 55 years of age plus 10

years of experience the number is higher than if the retirement age of 62 years would be used

as the base retirement age. The number of 55-61 year old workers was not reported. The

small service organization also has a large percentage of employees who will be retirement

eligible over the next 5 years while the large non-profit has the lowest percentage. The utility

and state government projections indicate a 100% turnover of senior executives within 5 to

10 years.

Comparison to the Literature

The retirement projections for the participating organizations are similar to previous

research. Rothwell’s (2002b) research indicated that one in seven (14.29%) of senior

executives will be eligible for retirement in the next few years and according to Casher and

Lesser (2003) “…19 percent of the workforce holding executive, administrative and

managerial positions in the United States will retire in the next five years” (p. 2).

Formal Succession Management Systems and Development Methods

Participants were asked if they have a formal succession management system to

replace the senior/executive leadership positions and if so to explain it. They were also asked

what leadership development opportunities are offered and how individuals with leadership

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potential are identified. Analysis of the data is presented followed by a comparison to the

literature.

Data Analysis

The small organizations are similar in that they do not have succession planning and

management systems and differ from the large organizations, with the exception of the state

government, which have or are planning to develop succession planning and management

systems. Two of the small organizations do not plan to implement a succession plan and one

is informally planning for the retirement of a partner. The large manufacturer currently has a

succession planning and management system and the large utility has a succession plan only

at the highest level. The state constitution prohibits the state government from implementing

a succession plan while the utility, large non-profit, and city are in process of developing

comprehensive systems.

All organizations interviewed had some method of leadership development; however,

the small organizations are informal while the large organizations have or are developing

formal classes. The three small organizations use personal interaction, on-the-job training,

and external sources. The large non-profit and city government have baseline leadership

development programs and are in process of developing more in-depth leadership

development programs. Both will use internal development for leadership skills inherent to

their organizations as well as external leadership development sources for universal

leadership development. The state government offers internal training from basic computer

skills to leadership training and the manufacturing organization and utility have well

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established internal leadership development programs at the upper levels. The manufacturer

also uses external leadership development through special university programs at the highest

levels. In the government, candidates self-select through the application procedures while in

the other organizations the managers recommend potential leaders to participate in leadership

development.

Comparison to the Literature

The data regarding succession planning are similar to data in previous studies

reported in the literature review. Rothwell (2001) found that “below many a corporation’s top

two or three positions, succession planning is often an informal, haphazard exercise … (p.

xx). The Society for Human Resource Management survey indicated “that fewer than two out

of ten [organizations]…had succession plans in place for job titles ranging from vice

president to CEO (Esen & Collision, 2005).

The small organizations’ informal leadership development correlates to data collected

in the Employee Development Survey Report conducted by the Society for Human Resource

Management and Catalyst, in which approximately two-thirds of the 248 human resource

professionals indicated employee development was mainly informal (Esen & Collison,

2005). The four studies conducted by the Ken Blanchard Companies® indicated the number

one management challenge to be developing potential leaders (The Ken Blanchard

Companies, 2006) and the Accenture survey identified developing effective leadership

capabilities as most important to address market place challenges. The large non-profit and

city recognized the importance of leadership development and recently hired employees to

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deal with these challenges. In the Leadership Forecast 2005/2006 study which compared

leadership offerings between levels indicated that senior leaders were the most satisfied of all

levels of leaders with their leadership development which correlates to the excellent upper

level leadership development programs in the manufacturing organization and utility

company.

Retaining and Hiring Retirement Eligible Workers

The next themes discussed regarded retaining the retirement eligible workers, re-

hiring retired leaders from their organization or other organizations, and amenities that may

be offered to those who are retained, re-hired, or newly hired. Analysis of the data is

presented followed by a comparison to the literature.

Data Analysis

The small retail and service organizations will attempt to retain retirement eligible

leaders at least on a part-time basis. The large non-profit will also attempt to retain those who

become eligible to retire. Although the industry worker shortage has not yet affected this

organization, retaining retirement eligible workers may assist to stave it off. The large

manufacturing organization to date has not had conversations regarding the retention of older

workers but rather efforts are made to retain all employees; only 5 out of 325 retirement

eligible employees retired this year. However, as 25% of their factory workers become

eligible to retire in 3-5 years many of whom are very skilled craft workers who may be

difficult to replace, it would seem reasonable that they begin looking more seriously at

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retention of these workers. The utility has specific retention needs given issues currently on

the table; therefore, it is going through the thought process of creatively leveraging the

retired workforce. However, the details of the process were not discussed. The small non-

profit has recently hired a new executive director who is in the baby boom generation and

anticipate he will work past the customary retirement age. The state and city governments are

similar in that they neither attempt to retain or remove those who become retirement eligible.

The state classified personnel system prohibits such actions and the city has a longevity

payment which entices employees to stay. The state government participant believes that the

baby boom generation workers will choose to work past retirement.

The small retail and service organizations and the large non-profit are very open to re-

hiring retired employees or hiring retired leaders from other organizations and would offer

part-time and flexible scheduling. The other organizations currently hire retired workers on a

contract part-time basis and scheduling is determined by the needs of the organization. The

small service, small non-profit, large manufacturing, and city currently offer telecommuting

and the city also offers job sharing. All amenities discussed are currently offered to

employees and would be offered to previously retired individuals as well. Additional

amenities for previously retired or to retain retirement eligible employees were not discussed.

Comparison to the Literature

Feinsod, et al. (2005) discussed that retirement is a difficult decision for most people

and many would prefer to continue working past the traditional retirement age. This appears

to be true in the manufacturing organization where only 5 out of the 325 retirement eligible

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retired this year. Zoby International found that of the baby boomers who plan to work in

retirement, 71% prefer to work part-time (Wellner, 2002) while the Center on Aging and

Work/Workplace Flexibility at Boston College and the Families and Work Institute’s

research found that having control of their hours, being able to exercise autonomy, and

finding opportunities to learn are important to retaining age 50+ workers (Older workers seek

flexibility, 2005). The three organizations who expressed interest in retaining older workers

are open to part-time and flexible scheduling while the other organizations are open to hiring

retirees as consultants; however, none of the organizations interviewed discussed offering

opportunities to learn. The large non-profit was the most open to re-hiring retired workers

and recognized the benefits as discussed by Sertoglu & Berkowitch (2002), “the facts are, it

costs half as much to rehire an ex-employee as it does to hire a brand new person; rehires are

40% more productive in their first quarter at work; and they tend to stay in the job longer” (p.

2). The large non-profit would also hire individuals who have retired from other

organizations, because of their background and experience, which corresponds with Towers

Perrin’s data that indicated “older workers are more motivated to exceed expectations on the

job than their younger counterparts are” (Feinsod, et al., p. 11).

Assessment of Women in Leadership Positions

There were five themes in the next section which assessed women in leadership

positions. The first was the number of women in the senior/executive and board of director

positions and if the participant had observed differences between women’s and men’s

leadership style. Participants also discussed whether the organization plans to increase the

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number of women in senior/executive and board of director positions, if women are placed in

line positions, and if the perceived leadership crisis may be an opportunity to increase the

number of women in executive management. Analysis of the data is presented and compared

to the literature.

Data Analysis

For the purpose of analysis, the number of women in senior executive positions and

board of directors’ positions was converted to percentages; the data are presented in Table 3.

Table 3

Number of Women Executives and Board of Directors

Organization # of Executives % of Women # on Board of % of Women on

Executives Directors Board of
Directors

Small Retail 2 50.00 3 66.66

Small Service 2 0.00 2 0.00

Large Manufacturing 8 12.50 14 14.3

Utility 8 37.50 10 20.00

Large Non-Profit 9 44.44 7 42.86

Small Non-Profit 3 33.33 8 62.50*

State Government 9 0.00 0 0.00

City Government 22 45.45 9 33.33**

Note: * elected by members, ** elected by citizenry

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 The low number of executives in the small organizations and board of director

members in the small retail and service organizations skew the percentages therefore making

comparisons to the large organizations difficult. The utility, large non-profit, and city

government all have a high percentage of women executives; however, none have reached

parity. The large non-profit which is a woman dominated industry has a lower percentage of

women executives than the city (44.44% vs. 45.45%) as well as a lower percentage of

women on the board of directors than the small non-profit (42.86% vs. 62.5%). Additionally,

with 70-75% women in the large non-profit organization gender parity has not been reached

and the CEO is male. The dominance of males in the manufacturing industry is definitely

reflected in the large manufacturer’s percentage of women executive (12.5%) as well as the

board of directors (14.3%). Table 3 indicates the state government has zero women

executives; however, this is the number of senior executive service employees. When

classified employees, such as the Chief Financial Officer, are included on the management

team the percentage of women increases to 30-40%. The only organization with a woman in

the top position is the small retail business.

One woman and one man in the small organizations noted they had observed

differences between men’s and women’s leadership styles and one woman and one man in

the large organizations noted observed differences as well. A common theme was in the area

of communication; men aren’t as communicative of their feelings or their direction as women

and women are more communicative and make sure everyone’s voice is heard. Another

theme was in regard to empathy; women care more about how employees feel and women

are more patient with personal issues and empathetic which in the long run leads to a stronger

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workforce and stronger team. Other differences noted by a single participant included women

are more collaborative, are savvier, good jugglers, resourceful, and less wasteful. Another

participant noted that women are very thoughtful; they’re not quick to make decisions. On

the less positive side one male participant observed that occasionally women have difficulty

working for another woman as well as some women prefer to surround themselves with like

thinking people. The same participant noted men are less patient with personal issues than

women while another participant observed that men’s leadership style tends to be more

autocratic. One participant, after a discussion with the staff, noted that leadership style is

more determined by background, training, and education than gender.

Increasing the number of women in executive and board positions drew mixed

responses. In the large manufacturing organization in which women are under represented

the goal is to increase the number of women at all levels. A women’s networking group is

available through the parent company and when filling a position, the slates submitted to the

corporate office must be diverse – people of color, men, and women – giving women equal

opportunity. The large utility considers diversity also but not specifically increasing the

number of women. The small retail business would definitely hire a woman manager and the

small service organization is open to hiring a male or female partner. The small non-profit

staff can influence the election of board members and currently has recommended both a

man and a woman for the open executive position. The large non-profit and the state

government do not plan to increase or decrease the number of women.

The small organizations do not have line positions per se; however, the small service

participant noted that everyone with the exception of the receptionist has financial

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responsibilities and the small non-profit organization noted that staff members are developed

to handle more responsibilities including financial. The city government and the large non-

profit employ more women; therefore, they have a substantial number of women in line

positions. The city has 540 management employees and 324 or 60% are women while in the

large non-profit 80% of the line managers are women. In the large manufacturing

organization, the number of women in line positions is minimal. The utility noted that line

positions are filled by diverse individuals who run large operations and budgets but the

number of women within the diverse group was not indicated. The state government

participant indicated that in government a lot of women are placed in line positions; however,

again the number or percentage was not indicated.

The perceived leadership crisis as an opportunity to increase women in leadership

positions was enthusiastically endorsed by the small retail owner and the participant of the

large manufacturing organization, both women, while the small service organization’s

participant feels it is inevitable in this service profession. The small non-profit and city

participants were more general in their responses. The small non-profit participant stated if

more women are developed to be leaders there will be more women executives and the city

participant believes that most generation X women are aware that there may be opportunities

both in government and corporations; however, they don’t care. Due to the large number of

women (80%) in line management positions, the large non-profit participant feels increasing

women in leadership positions is not an issue; however, gender parity has not been reached in

the organization. The state government participant disagrees with the premise that there may

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be a leadership crisis looming and as previously stated, due to the merit system, does not plan

to increase or decrease the number of women in leadership positions.

Comparison to the Literature

In the 2005 Catalyst Census of Women Corporate Officers and Top Earners of the

Fortune 500, 16.4% of corporate officer positions were held by women (Joy, 2006a). The

organizations that participated in this study reported 12.5% to 50% of executive positions are

held by women; however, not all are corporate officer positions and the small retail

organization has only two management positions thus the 50%. When comparing the 2005

Catalyst Census of Women Board of Directors of the Fortune 500 (Joy, 2006b) with the

current study, the organizations participating in the current study have a higher percentage of

women board members than the Catalyst census. The Catalyst census found that 14.7% of

Fortune 500 board seats are held by women while women in the current study held 20% to

66% of the board seats; however, again the small retail board has only three members (66%

women). In the Catalyst census, 64 companies had 25% or more women board directors. The

Catalyst census (Joy, 2006b) also reported the state in which this study took place is one with

a low percentage (6.9) of women board directors among the Fortune 500.

The participants were equally split on whether men and women have the same or

different leadership styles. One-half responded that men and women differ in their leadership

style. This perspective, known as the psychological theory, emphasizes “the differences in

outlook, attitudes, and values inculcated in men and women during their development and

socialization” (Daly, 1995, p. 1). Several of the participants’ perceptions were similar to

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those in Kabacoff’s (2000) research which indicated expressive, empathetic, and patient as

stereotypic of women. One participant observed that empathy in the long run leads to a

stronger team; however, the Hagberg Consulting Group’s research noted that women need to

be cautious as they can become mired down in details by taking too much responsibility with

concern for the team (Wells, 2001). Other participants’ perceptions of women such as savvy,

good jugglers, resourceful, less wasteful, very thoughtful, and not quick to make decisions

are not stereotypic; however, not quick to make decisions may be seen as risk aversion. The

Hagberg Consulting Group’s research indicated that women are “reluctant to take risks

without having covered all the bases, which can hinder them from being given the high-risk

assignments that offer visibility and upward mobility” (Wells, 2001, p. 49). The second half

of the participants saw no difference in men’s and women’s leadership style, the situational

perspective which states men and women in similar situations with analogous expectations

behave similarly (Daly). The lack of differences in leadership style are similar to Kabacoff’s

(2000) findings that as individuals move up the corporate ladder, “role requirements of senior

positions limit the range of demonstrated behaviors. Additionally, it is likely that a selection

process occurs that identifies individuals as candidates for senior positions that demonstrate a

more specific and homogeneous repertoire of required behaviors” (p. 4).

The manufacturing organization’s women’s networking group, in which women can

talk about women’s issues and network with other women, offers women the opportunity to

learn the strength of networking. Failure to network with key decision makers is frequently

stated as a reason for the dearth of women in upper management (Hurley et al., 1999). Lack

of networking is also stated as a reason for the dearth of women on corporate boards. Shapiro

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Snyder (2002) noted that nominating committees frequently recruit based on “whom you

know” and “who knows you.” Therefore, it is important for women to network within their

organization as well as with CEOs and senior management in other organizations (Shapiro

Snyder).

The literature indicates that “women’s concentration in staff functions – and

companies’ reluctance to allow women to move laterally into line management positions –

have (effectively constructed) ‘glass walls’ as an obstacle many corporate women encounter

long before a ‘glass ceiling’ impedes their upward mobility” (Townsend as quoted by

Corporate Leadership Council, 1999, p. 20). This may be applicable to the manufacturing

organization which reported the number of women in line positions to be minimal.

Knowledge Management

The last area dealt with knowledge management both in regard to explicit knowledge

management and in regard to capturing tacit knowledge. The analyzed data is compared to

the literature.

Data Analysis

All participating organizations have procedures for documenting explicit knowledge

such as procedure manuals, procedure flows, and product manuals. The state government has

everything well documented so in the event of a crisis, manuals explain everything that

would need to be done. The other large organizations have well documented explicit

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knowledge systems as well while the small organizations have procedure manuals but are

more informal.

Tacit knowledge is less documented. The large manufacturing organization has

developed a plan to retain tacit knowledge and although the state government participant

includes two levels on the management team for sharing and storytelling purposes and to

assist those who may want to move up, the state government’s institutional memory is not

well documented. The city re-hires retired individuals as consultants when the need arises.

Although a system to retain tacit knowledge in the city has not been developed, an employee

with knowledge-transfer background has been hired to develop a system. The other

participating large organizations have not addressed retaining tacit knowledge. The large

manufacturing organization is the only participant that has established a system in which tacit

knowledge can be shared and retained within the engineering department. The system

includes skills matrices, subject matter experts as Go To people, and senior engineering

subject matter experts as mentors for junior engineers. Due to the daily ongoing interaction

of the workers, the small organizations are at an advantage for sharing tacit knowledge;

however, the participating organizations have not established formal tacit knowledge

management systems and the small non-profit organization may find it more difficult to

transfer tacit knowledge when the new director is located in a different state than the rest of

the staff.

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Comparison to Literature

“Knowledge loss, often an unintended consequence of downsizing or retirements, can

be one of the costliest problems confronting organizations today. It is also one of the most

widely ignored” (De Long & Mann, 2003, p. 39). This may be the situation for seven of the

eight participating organizations that have not formally addressed the loss of tacit knowledge.

Powell (1998) stated, “an enormous amount of information and knowledge resides in the

minds…of key people, but this material is rarely organized in a fashion that allows for its

transmission to others” (p. 237). The large manufacturing organization’s Human Resource

Director touched on this when she stated “it’s amazing how people at times don’t even know

what they are expert at because they know it so well.” As stated previously, the small

organizations are at an advantage due to their daily ongoing interaction. The First Annual

U.C. Berkeley Forum on Knowledge and the Firm felt that unlocking tacit knowledge

required a highly interactive social process between workers in a co-located, face-to-

face environment. The co-location factor was considered critical because much of the
tacit knowledge that is shared and exchanged is accomplished through the direct first-
hand observation, interaction with others, subtle body language, and so on.
(Holtshouse, 1998, p. 277)

When asked if tacit knowledge transfer will be part of the succession plan, the large non-

profit’s Human Resource Director responded “I don’t know how to do that today. If I do,

then absolutely we’ll add it.” This statement corroborates with Zach’s (1999) beliefs that

explicating tacit knowledge so it can be shared and reapplied “is one of the least understood

aspects of knowledge management (p. 47).

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 Field Notes and Unexpected Findings

The field notes disclosed unexpected findings the participants felt important to the

research. Themes noted by two or more participants are discussed. They include

organizational culture, generation X, low turnover, the perceived leadership crisis, and

organizational interconnectivity.

Organizational Culture

The culture of the organization was discussed by three participants. Two of the small

organization participants commented on the feeling of community. The small retail owner

noted that the organization feels like family while the small service organization participant

noted that although the employees can telecommute they prefer to work in the office. The

large utility has a different culture. The participant noted that the community base was lost as

small utilities merged into a large organization; however, the participant’s goal is to create a

culture of inclusion.

Generation X

Another theme common to two participants was generation X. The small retail owner

noted that the younger employees are not dedicated to a full-time job and want flextime. This

observation was confirmed by The Ranstad North America (2002) study which stated

“employees now demand that employers understand that personal lives are a priority – in

fact, a top priority” (p. 12). The city participant noted that, observing her children and the

general population of generation X, there is a large number of generation X who don’t want

156
to work in large organizations and are not interested in lifetime employment. This

observation is similar to Lancaster and Stillman’s (2002) that generation X subscribes to the

career security model which states one “should build a portfolio of skills and experiences that

guarantees that no matter what cataclysmic event occurs you’ll be able to land on your feet”

(p. 54).

Low Turnover

The small retail owner, small service partner, and the large manufacturing

organization all discussed low employee turnover. The small organizations attribute low

turnover to the feeling of family or community while the large organization attributes it to the

organization’s friendly people practices.

Perceived Leadership Crisis

The state government participant believes there will not be a leadership crisis if the

older baby boom generation members are allowed to continue working past the usual

retirement age. The large manufacturing and large non-profit organizations currently indicate

retirement eligible employees are remaining at their jobs past the retirement eligible age. The

large manufacturing organization noted that only 5 of the 325 retirement eligible employees

are retiring this year and the one retirement eligible executive in the large non-profit plans to

stay for one or two more years. The large utility is approaching the leadership crisis as an

opportunity while the small non-profit participant asked “what is retirement?”

157
Organizational Interconnectivity

Two organizations discussed connecting with other organizations. The large utility is

engaged with an outsourcing partner and the participant believes that organizations need to

invest in the ecosystem not just in their own heritage. The city government participant is

hopeful that a regional pool of city employees may be developed. Nearby cities are being

approached to create this regional pool of people with a goal of interchanging employees for

a period of time. This would give the perspective leaders a chance to learn from other cities

as well as the one in which they are employed.

Relationship of the Findings to the Research Questions

How will the perceived leadership crisis

impact organizations in a geographically defined area?

The first question investigated how the participating organizations will be impacted

by the perceived leadership crisis. Clearly all participating organizations will be impacted as

the baby boom generation retires. The degree to which the organizations will be affected

depends to a large extent on whether the baby boom generation continues to work beyond

their retirement eligible age. The organizations in this study indicate that to date workers are

staying beyond the retirement eligible age and the general consensus is that many retirement

eligible individuals will continue to work either full-time or part-time. The participating

organizations are currently not doing anything to retain retirement eligible workers but are

willing to offer the same amenities to retirement eligible or previously retired individuals as

158
they offer to their current full-time employees such as part-time work, flexible scheduling, or

telecommuting. However, retaining retirement eligible leaders and rehiring retired leaders

may be short sighted. The Conference Board research determined that “by 2010, the number

of 35-44 year olds, those normally expected to move into senior management ranks, will not

grow but will decline by 10 percent” (Morton, Fpster, and Sedlar, 2005, p. 9). Furthermore, if

the economic growth rate over the next 15 years is 2% the demand for executives will

increase by about a third. However, “supply is moving in the opposite direction; the number

of 35-to 44-year-olds in the United States will decline by 15 percent between 2000 and 2015”

(Chambers et al., 1998, p. 47). Retaining the retirement eligible and rehiring retired leaders is

an interim plan. Four of the five large organizations recognized this and are turning to

succession planning and management as an alternative to the perceived crisis.

What succession planning and management systems are currently utilized?

One of the five large organizations has a succession planning and management

system while three have recognized the need and are in process of developing a succession

plan prior to the retirement of the baby boom generation. The state government, to a certain

degree, is handicapped by the constitution and the merit system which prohibit a succession

plan. The large and small organizations differ in their approach to succession planning. The

small organizations do not formally plan for succession and hire from the outside.

159
 How are organizations identifying individuals with leadership potential,

assessing skills and skill gaps, and developing them for executive leadership positions?

The methods to identify individuals with leadership potential are informal in all the

organizations; a person with leadership potential is identified by a manager or leader within

the organization or in the government individuals self-identify. Assessment of skills and skill

gaps is or will be included in leadership development. In the smaller organizations,

leadership development is informal while the larger organizations either have extensive

leadership development programs for upper leadership levels or are in process of developing

programs.

What are organizations doing to ensure women

are identified and developed for leadership positions?

All participating organizations endorse women in leadership; however, only one

organization is consciously attempting to increase the number of women at all levels.

Although the small organizations don’t specifically search for women, they are open to hiring

women for leadership positions. The large organizations are guided by diversity policies;

therefore, women are given equal opportunity for leadership positions and the best person for

the position is hired. A women’s networking system is available to women in the

manufacturing organization.

160
 How is knowledge management approached

in the succession and management systems?

This question concerned the retention of explicit and tacit knowledge retirees would

take with them. Explicit knowledge is managed in all organizations through informal systems

in the small organizations to extremely complex systems in the state government. Only one

participating organization has developed an approach to share tacit knowledge while another

is aware of the challenge and anticipates working toward a solution.

Summary of the Research Question

The following is a high level synthesis of the research question “How can

organizations increase women in executive leadership positions while preparing for the

perceived leadership crisis?” With the exception of the manufacturing organization, the

participants appeared to be either unknowledgeable regarding the dearth of women in

executive management or feel that the dearth will self-improve. This may be logical thinking

when the number of women in middle management and line positions is relatively high;

however, the organizations have not reached gender parity. Prime (2005) found that 50% of

managers and professional positions are held by women; however only 1.4% of Fortune 500

CEOs are women. Gallagher’s 1996 study found the average length of time the women took

to reach executive status was 11.5 years, “a time period that should have easily allowed

parity to be reached” (Indvik, 2001, p. 227). In the current study only one organization has a

woman in a top position, the small retail owner. Thus, in answer to the research question, it

appears organizations will not increase women in executive leadership positions while

161
preparing for the perceived leadership crisis unless the organizations become aware and

informed of the dearth of women in executive leadership positions, the barriers to women’s

advancement, and the benefits inherent with gender diversity. The most effective methods to

raise awareness and educate the organizations were not included in this study and are a topic

for further research.

Recommendations for Further Research

Research regarding leadership is pertinent to improving organizations. The

perceived leadership crises as well as increasing women in executive leadership positions

have been previously studied; however, the impact of the perceived leadership crisis on

increasing women in leadership is a relatively new research area. This study contributes new

knowledge to the body of literature and may be a starting point for additional research.

Several topics for further research emerged from the study and are presented as possible

topics for others who may be interested in pursuing this phenomenon.

The study disclosed a perceived lack of awareness regarding the dearth of women in

executive leadership positions, the barriers women encounter, and the benefits of gender

diversity. Change is difficult for most organizations. Men have been at the helm for many

generations and increasing women in executive positions constitutes a major change. Just as

Hill and Needham’s (2006) research concluded that women’s self-rated health improved with

educational attainment, women’s climb to executive positions may also improve with

increased organizational education. Investigating and analyzing the most effective methods

162
to educate organizations regarding the dearth of women executives will assist organizations

to raise their employee’s awareness.

A related study regarding tacit knowledge is recommended to examine the methods

organizations are using to retain the knowledge that resides in the minds of key people.

Explicating tacit knowledge so it can be shared and reapplied is not well understood. One

organization in this study has developed a system to share tacit knowledge. Other

organizations may have developed methods in which to share tacit knowledge as well that

could contribute to the ongoing success of organizations after the baby boom generation

retires and add valuable information to the study of knowledge management.

Also recommended is a study investigating the impact of a decreased talent pool. As

the demand for executives increases, the supply of 35-44 year-olds (those normally expected

to move into senior executive positions) will decrease by 15% (Chambers et al., 1998) and

these individuals are less interested in executive leadership positions (Barrett & Beeson,

2002). How organizations will function with the decreased talent pool was not investigated in

this study; however, one participant commented on corporate and government inefficiencies

and another noted that women are less wasteful. Could the decreased talent pool force

organizations to become more efficient and less wasteful or reduce their executive cadre?

Would middle management and line positions increase? Answering these and related

questions may be of value to the business community prior to the departure of all baby boom

generation executives.

An unexpected finding regarding the low participation in educational opportunities

offered by organizations is also a recommended phenomenon to be studied. Investigating

163
why employees don’t participate in educational opportunities and what organizations can do

to increase participation would be valuable information for the organizations that offer such

programs. As the baby boom generation retires, it will be imperative that leaders are well

educated.

164
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