EDI Series #2: How female leaders help businesses remain resilient and eventually succeed
11 September 2023
by Sean Feng
PhD candidate from the School of Business
In the rapidly evolving and intricately interconnected landscape of contemporary business, companies or organisations are faced with adverse events that threaten their functioning, viability, or development, such as natural disasters, supply chain disruptions, cybersecurity breaches, and economic downturns. Although the recent COVID-19 is an extreme example, it does lay bare the fragility of global supply chains, causing an estimated 94% of Fortune 1000 companies to experience supply chain disruptions. Businesses that had diligently fostered a culture of adaptability and equipped their teams with versatile skill sets proved better poised to weather the storm. According to a report by McKinsey, companies with higher resilience levels were better equipped to navigate the crisis, experiencing 5% fewer supply chain disruptions and bouncing back more quickly.
Effective leadership stands as another cornerstone of enterprise resilience, as evidenced by cases such as the Enron scandal of 2001. The lack of ethical leadership and oversight resulted in colossal financial losses, a tarnished reputation, and the downfall of the company. In stark contrast, leaders prioritising transparent communication, ethical decision-making, and proactive risk management cultivate an environment of trust and readiness. In this regard, female leaders have a unique ability to foster resilient teams through a combination of inclusive leadership practices, emotional intelligence, and effective communication. A study published in Harvard Business Review by Zenger Folkman suggests that female leaders were more likely to excel in areas such as developing others, inspiring and motivating, and building relationships – all crucial components of team resilience.
For instance, the leadership style of Jacinda Ardern, Prime Minister of New Zealand, during the Christchurch mosque shootings in 2019 exemplified the power of empathy and inclusivity. Her swift response and genuine concern for the affected communities not only demonstrated strong leadership but also contributed to the nation's collective resilience.
The case of Mary Barra, CEO of General Motors, is also illustrative. Under her leadership, the company transformed its approach to handling safety issues after a major recall crisis. By prioritising open communication and valuing employee insights, Barra empowered her team to address issues proactively and collaboratively, enhancing the organisation's overall resilience.
Moreover, female leaders often invest in mentoring and professional development, contributing to team members' growth and adaptability. By providing guidance, constructive feedback, and opportunities for skill enhancement, female leaders cultivate a learning culture within the team. The example of Angela Merkel, former Chancellor of Germany, highlights the significance of mentorship. Her mentorship of Ursula von der Leyen, who later became President of the European Commission, showcases the ripple effect of female leaders' investment in developing future leaders, thereby building a pipeline of resilience within their organisations.
In conclusion, female leaders have a distinct capacity to build resilient teams through inclusive leadership, emotional intelligence, open communication, and a focus on employee well-being. Real-world cases and data-driven insights underscore the efficacy of their approaches. By embracing these practices, female leaders empower teams to adapt, innovate, and collaborate effectively, even in the face of challenges. As organisations increasingly recognise the value of resilience, female leaders' unique strengths position them to play a pivotal role in shaping the future of leadership and fostering enduring success.