TIME Management

6 Charts Showing Tech’s Gender Gap Is More Complicated Than You Think

See why it's so hard to break the glass ceiling in Silicon Valley

 

Several of Silicon Valley’s biggest companies have released a series of diversity reports revealing how few women held the companies’ top jobs — or jobs in general. Now a recent string of lawsuits is suggesting that the fix isn’t simply to recruit more women — what about the women who are already employed? Are they being held back from rising up?

That’s the key question in investing partner-turned-Reddit CEO Ellen Pao’s ongoing lawsuit against her former employer, Kleiner Perkins, a highly-established venture capital firm based in Menlo Park, California. The jury in Pao’s case began hearing closing arguments this week, and will soon decide whether it was gender bias that prevented Pao from being promoted to a higher-ranking partner, or, as Kleiner Perkins’ lawyer argued, whether Pao is simply “[blaming] others for her own failures.”

Adding to the scrutiny of Silicon Valley’s treatment of women are two other high-profile gender discrimination lawsuits against Twitter and Facebook, both recently filed by former female employees.

A gender gap in the workplace, particularly in Silicon Valley, is old news. But Kleiner Perkins isn’t kind of Silicon Valley company we’re used to hearing about. By suing a venture capital firm, Pao raises a important point — the gender gap could be a problem at the firms that are often funding Valley companies, too. (In addressing this claim, Kleiner Perkins said in a trial brief last month it has “long been a supporter of women entrepreneurs.”)

According to a report by Babson College in 2013, gender bias reveals itself in the patterns of venture capital investments. (The study was sponsored by Ernst & Young and the Diana Project, both of which prioritize workforce diversity.) Upon analyzing these patterns, the study found that businesses with all-male leadership teams are four times as likely to receive venture capital funding as teams with even one woman.

That apparent gender bias might explain why only 3% of venture-funded businesses are led by women, according to Babson College’s report, which surveyed 6,517 of these businesses. About one-third of all U.S. businesses are led by women, according to the U.S. Small Business Administration:

 

Curiously, the percentage of female venture capital investors (11%) is almost equal to the percentage of female executives among Silicon Valley’s Top 150 companies (10.8%) — though this is merely a correlation. (These data points come respectively from the latest Venture Census and a 2014 report by Fenwick & West LLP, a global law firm with clients including Facebook and Google.)

Even if these two gender gaps are wholly unrelated, it’s still worth noting that Silicon Valley appears to have an especially pronounced gender diversity problem when compared to the S&P 100. The S&P 100 is a non-industry specific stock index comprised of companies with the 100 leading U.S. stocks, many of which are outside Silicon Valley:

 

So it’s an undeniable truth that Silicon Valley has a gender diversity problem. But the question of whether the gap has started to close is a bit trickier.

Take, for example, the following chart from Fenwick’s report. It shows the percentage of women in the highest-ranking positions in Valley’s top 150 companies (“SV 150″) between 1996 and 2014. By looking at the upward trends, you could say that gender diversity in Silicon Valley has improved:

But don’t jump to any conclusions. Once again, when you compare the SV 150 to the S&P 100 benchmark, gender diversity in the Valley appears to be problematic. Take a look at the following chart, which shows the top Valley companies had lower percentages of women than the S&P 100 in every single leadership position except President/COO and General Counsel in 2014:

There’s yet another caveat: If you examine only the very top Valley companies, the gender diversity problem is cast in a much better light. After all, Google just named a female CFO this week, while Facebook COO Sheryl Sandberg, Yahoo CEO Marissa Mayer and Hewlett-Packard CEO Meg Whitman are proof of change among tech titans.

The chart below shows gender diversity in the Valley’s top 15 companies (“SV15″), like Google and HP, has rapidly improved. Female representation was remarkably strong in a several positions in 2014, including President/COO and CFO. But other positions, like Chair, were still entirely male in 2014 — just like in 1996:

These mixed messages regarding the depth of Silicon Valley’s gender problem are surfacing on both sides of Pao’s trial. Kleiner Perkins’ lawyers, for example, argued that 20% of its partners are women. That’s much higher than the average of 6%, according to Babson College’s report, which surveyed 139 venture capital firms’ partners in 2013. Kleiner Perkins’ top ranking female partner, Mary Meeker, even testified against Pao, arguing the company promoted women based on their merits.

But Pao, too, had an arsenal of numbers at the ready. In addition to qualitative evidence of gender bias — like claims of all-male dinner parties — Pao’s legal team also cited the superior performance of investments made by the company’s female investors, including Pao. A female partner at Kleiner Perkins once reportedly even constructed a matrix comparing women’s and men’s investments to drive this point home.

The jury in Pao’s trial will soon put an end to these arguments — but the gender gap debate will surely continue outside the courtroom. Even if the jury sides with Kleiner Perkins, Pao’s closely watched trial remains a warning for the larger, male-dominated business industry to reevaluate the treatment of women in their companies. There’s a business incentive at play here, too: Companies with female leaders appear to be performing unusually well, according to a recent study of women-led companies by Karen Rubin, director of product management at the algorithm development site Quantopian. In her study, Rubin showed how the women-led Fortune 1000 companies — there are only 27 currently — posted greater cumulative returns than those of SPY, a tracker of the S&P 500 stock index, which Rubin used as a benchmark:

Women Leader Fortune 1000

In fact, it seems that these female-run companies have outperformed the male-dominated benchmark even more often since the financial crisis of 2008-09. That’s a gender gap to be proud of — and one that can’t be ignored.

Read next: 5 Best Ways Men Can #LeanInTogether to Help Women Get Ahead

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TIME career

3 Things That Change When You Have a Direct Report

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Your tasks are no longer the only thing you’re measured on

When you start out in the working world, you’re just concerned about doing your job. You’re probably at the lower end of the totem pole, just trying to complete all of the tasks that come your way to the best of your ability.

At least, that’s how I was. Until I had a direct report.

1. You second guess a lot of the things you say in one-on-one meetings.

I never realized how much I hung onto every word of good and bad feedback my boss gave me during our one-on-one meetings until I had to host my own one-on-one’s. Sometimes I feel like I provide good feedback, but there are also meetings where I feel like my thoughts were running away from me, and I wasn’t being clear. Do your best to prep for these meetings like you would for a meeting with your own manager. Try to have a few talking points or specific questions you’d like to ask.

2. You and your direct report are partly dependent on each other to progress.

One of the strangest things about having a direct report is that in some ways, you’re now responsible for her future. Sure, her work has to shine and improve, but you have to give her the guidance to make her into that future person. You have to tell her what to work on and where to grow. Most importantly, you become a sponsor for her when it comes to promotion time. Not only do you have to speak to your strengths, but now you have to speak to someone else’s.

As part of this, your ability to manage others also goes into your performance review. Your work is no longer the only thing you’re measured on.

3. Your job is no longer just about the work you produce.

Having a direct report means that your job is no longer just the tasks you have to get done on a daily basis. You can’t just go through your to-do list, but you have to be available if someone else has questions, just like your manager is to you. I’ve had some excellent bosses, and one of the things I love most is their ability to be available and present when I have questions. Most bosses are good at being available, but great bosses can really stop what they’re doing to help talk you through your issues.

This article originally appeared on Levo.com.

TIME leadership

3 Books Every Leader Should Read to Be Successful

Frank Gehry has selected personal favorites for his 'Curated Bookshelf' at Louis Vuitton's London flagship. The shelf is located in the first-floor librarie.
Jessica Klingelfuss

Teachings from the best in the business world

As an employee, you function mostly as a solitary unit. You do your part, produce your “output,” and the work is done. But as a manager (or more precisely, a leader—managers manage tasks, leaders lead people), everything changes. Your success is no longer about your own output, it’s about other people’s — the most important work you do is often what enables other people to do their jobs. But finding your way can be difficult. So in honor of National Book Month, here are three books that every leader should read to succeed.

High Output Management by Andy Grove

Key points: Grove’s book, reflecting on his time as Intel CEO in the 1970s, remains relevant today because of the basic principles it outlines: As a leader, you are an enabler of others. Your team’s performance, not your own output, is what you are judged on. Grove also shares five key things that should inform and govern your time: decision making, information gathering, information sharing, nudging and role modeling. If you are spending significant time doing things outside of those five key areas, it might be worth rethinking your schedule.

Best quote: “The art of management lies in the capacity to select from the many activities of seemingly comparable significance the one or two or three that provide leverage well beyond the others and concentrate on them.”

Who Says Elephants Can’t Dance? Inside IBM’s Historic Turnaround by Lou Gerstner

Key points: Compared to High Output Management, which can read a little like a textbook, Who Says Elephants Can’t Dance? is practically a thriller. Gerstner’s well-known memoir about the turnaround of IBM is a vibrant book on leadership during a challenging time. It’s about transformation. Gerstner touches on the importance of speed and a clearly communicated set of principles—especially across a company as large as IBM was at the time. Gerstner also talks about the issues big companies run into with mid-level talent: “People do what you inspect, not what you expect.”

Best quote: “I came to see, in my time at IBM, that culture isn’t just one aspect of the game, it is the game. In the end, an organization is nothing more than the collective capacity of its people to create value.”

The Amazon Way: 14 Leadership Principles Behind the World’s Most Disruptive Company by John Rossman

Key points: This is by far the easiest read of the three in this post, but it’s also the most effective at providing prescriptive and actionable leadership advice. Rossman, a former Amazon executive, decodes a lot of the behind the scenes at Amazon and points to what is most important at a company that complex: decision making and ownership. The owner of a project or product doesn’t have to be the most senior person at the organization. In fact, it can be a very junior person. But this person is the sole person responsible for the project’s outcome.

Best quote: “Amazon.com employees quickly learn that the phrase ‘That’s not my job’ is an express ticket to an exit interview.”

Have your own favorite leadership books? I’d love to hear them—tweet at me @cschweitz.

Read next: 4 Biggest Myths About Being a Great Leader

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TIME Careers & Workplace

3 Things Good Managers Say Instead of ‘I Don’t Know’

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Don’t rush to give just any answer

The Muse logo

This post is in partnership with The Muse. The article below was originally published on The Muse.

Picture this: You’ve been promoted to manager because your supervisors have confidence in your ability to lead and inspire. It feels great! You love helping your direct reports do their best work, and you smile when see that “Director of” title on your business card.

Yet, there’s one situation that your prior experience and those Management 101 books seemed to overlook: what to do when you’re supposed to have answers for your team and, unfortunately, you have no clue.

Although you may feel that you need to give an immediate response every time someone runs into your office with an issue, this is a critical first step to take: Stop. Seriously. Don’t rush to give just any answer. And though it feels tempting, avoid saying “I don’t know.” What feels like a conclusive statement to you actually sounds like ellipses to your team. It leaves them hanging and creates more questions.

When you reach these critical moments, pause, collect yourself, and consider these approaches:

1.“I don’t have the information I need to give an answer. I’ll find it.”

In retrospect, when I’ve said “I don’t know,” it has been because the situation was new—software that I had never used, projects and stakes that I had never encountered. In those moments, though, I could have taken a moment to evaluate the data from past projects that had similar deliverables or challenges.

For example, if the question from a team member is, “How much time should I devote to making this storyboard?” and I’ve never made one myself, I can still be helpful. Rather than saying “I don’t know” or deferring to “Use your best judgment” (which sometimes feels like a cop-out), I can refer to the hours that we’ve tracked for past storyboards and how long clients took to approve them. This gives a range for the expected time and, most importantly, provides guidance and support for the team.

Even if it takes time and research to find the answer, do it. Your team will trust and respect you when they see that you’re committed to helping them.

2. “Let’s have a quick brainstorm.”

The creative process works best when at least two minds can riff of off one another—together, you can often devise more solutions together than were possible separately.

So, take five minutes to connect with your colleagues and run a few exercises (like these) to clear the mental blocks you may be having. Even if your team members are asking you because they’re less familiar with the project or issue than you are, brainstorming can still be effective—in fact, their perspective as “outsiders” may bring fresher thinking. In either case, in addition to creating more options for solutions, you also create more collective ownership of the outcomes among the team.

3.“I know an expert who can help with this.”

Of the three approaches I’m sharing, this is the toughest because you are plainly admitting that someone knows better than you do. But rather than causing concern (or doubt in your abilities) by saying “let’s escalate this,” you’re still showing confidence that an answer can be found.

Senior managers or company advisors with specific knowledge can be great resources. You could even share it with mentors in your own network—remember, they’re not exclusively there for emergencies (this isn’t Who Wants to Be a Millionaire?), but as a “board of directors” for areas in which you’re not as strong.

Remember, no one expects you to know everything. Having a wide pool of resources to draw from when necessary will inspire confidence among your team.

In times of uncertainty, remember that leadership doesn’t mean always having the answers. It means always being committed to finding them.

More from The Muse:

MONEY Workplace

How to Deal When You’re Promoted Above Your Peers

Illustration by Mikey Burton

When a promotion kicks you out of the coffee klatch, you’ll need to keep your former peers from becoming your future critics.

Right after you celebrate that well-earned promotion, reality hits: You’re now the boss of people who had been your peers. “When you become a supervisor, the relationship structurally changes, whether you like it or not,” says Good Boss, Bad Boss author Robert Sutton, a Stanford University professor who studies organizational behavior.

Going forward, your work will be judged on your ability to lead people with whom you used to consort and complain. If that’s not enough pressure, you’re now at risk of being the one complained about. Make the transition seamless with these steps.

Meet One-on-One

Sit down with each person to discuss the change in leadership. “You’re in learning mode,” says Linda Hill, a Harvard Business School professor and co-author of Being the Boss. Ask staffers to share their short- and long-term goals, skills they’re building, and obstacles that get in the way of doing their jobs. You’ll convey respect and gain valuable info that can help you achieve buy-in.

Also, if you were promoted over a colleague, “address the elephant in the room” and alleviate worries about your ability to work well together, advises Atlanta social media strategist and job coach Miriam Salpeter.

Step Back Socially

You can be a great manager and preserve friendships by slightly altering your behaviors. Continue attending happy hour, for example, but stay for only one drink, suggests Hill. Allow your staff space to vent. “We all need to blow off steam sometimes,” says Katy Tynan, author of Survive Your Promotion! (Just make it clear to your people that if something is really bugging them, they can talk to you, she adds.)

Also, disconnect from your subordinates on all non-work-related social media. “Many times you’re doing people a favor, since it puts less pressure on what they can and can’t share on their profiles,” says Salpeter. Do let employees know before unfriending them, though, so that they don’t take it personally.

Prove You Don’t Play Favorites

Prepare to make—and to justify—difficult decisions, particularly regarding raises and promotions. To be seen as objective, try to grade everyone using the same metrics, and be sure people know what those metrics are, says Keith Murnighan, a professor at the Kellogg School of Management at Northwestern University.

To show humility, solicit feedback from subordinates on your own performance, says Gentz Franz, a University of Illinois lecturer who studies job succession. “It’s incumbent upon managers,” he says, “to open the lines of communication if they want to create a collaborative work environment.”

TIME Management

Deloitte Names First Female Chief Executive

Deloitte Cathy Englebert
PR NEWSWIRE Cathy Engelbert (PRNewsFoto/Deloitte)

Appointment of Cathy Engelbert makes it the first major U.S. accounting and consulting firm to have a woman CEO

Cathy Engelbert has been named CEO of Deloitte, becoming the first woman CEO of a major U.S. accounting and consulting firm.

Engelbert, 50, who is a 29-year-veteran of Deloitte, said in a statement she was “deeply honored to lead” Deloitte. She was formerly the chairman and and CEO of Deloitte & Touche, the U.S. auditing subsidiary of Deloitte LLP.

Deloitte was on Fortune’s best Places to Work list and is known for advancing diversity. It was the first professional services firm to have a minority CEO, Joe Echevarria, and the first to have a female chairman.

Along with Ernst & Young, PricewaterhouseCoopers and KPMG, Deloitte is one of the “Big Four” global accounting and consulting firms.

 

TIME Money

Apple CEO Tim Cook Earned $9 Million Last Year, Double His 2013 Pay

Pay hike comes after a stellar 2014 for the tech firm

Apple CEO Tim Cook’s total pay for 2014 was $9.22 million, more than double the financial compensation he received the year before.

Cook earned a salary of $1.75 million and his non-equity incentive compensation was $6.7 million, reports Bloomberg. His 2013 pay package was $4.25 million, according to files sent to the U.S. Securities and Exchange Commission on Thursday.

The pay increase comes after a highly successful 2014 in which Apple’s company value exceed $700 billion and the price of stocks rose above $119 per share, according to Bloomberg.

The boost comes amid optimism surrounding new products such as the iPhone 6 Plus and Apple Pay.

Cook succeed Steve Jobs as head of Apple just months before the company’s enigmatic founder died of pancreatic cancer.

[Bloomberg]

MONEY Warren Buffett

What Warren Buffett Asks of His All-Star Employees

Warren Buffett, Chairman of the Board and CEO of Berkshire Hathaway.
Carlo Allegri—REUTERS Warren Buffett, Chairman of the Board and CEO of Berkshire Hathaway.

Insights from Buffett's latest biennial memo to Berkshire operating company managers

I’m told the first step in overcoming addiction is admitting you are powerless over the object of your addiction. Last month, I read yet another biography of Warren Buffett (and his company, Berkshire Hathaway ). Thankfully, this addiction to his writing is beneficial, so I embrace following Buffett’s writings closely. In December, Buffett issued his latest biennial memo to Berkshire operating company managers (whom he refers to as his “All-Stars”). The Berkshire chairman and CEO requested three things from this select group of businesspeople.

Protect Berkshire’s reputation

Buffett’s concern with Berkshire’s reputation is paramount. The conglomerate is his life’s work; its reputation is its most important asset, and he will not have it sullied:

The top priority — trumping everything else, including profits — is that all of us continue to guard Berkshire’s reputation… As I’ve said in these memos for more than 25 years: “We can afford to lose money — even a lot of money. But we can’t afford to lose reputation — even a shred of reputation.”

In particular, he warned against pointing to the herd as justification for a course of action:

Sometimes your associates will say “Everybody else is doing it.” This rationale is almost always a bad one if it is the main justification for a business action. It is totally unacceptable when evaluating a moral decision.

This is common sense: Did your parents buy it when you said “He/she did it, too!” to explain your bad behavior?

Instead, Buffett offered a different standard for measuring one’s behavior: “We must continue to measure every act against not only what is legal but also what we would be happy to have written about on the front page of a national newspaper in an article written by an unfriendly but intelligent reporter.”

In 2011, Buffett was stung when one of his top lieutenants and a potential successor, David Sokol, broke the company’s insider trading rules in a share-dealing controversy that most definitely did not pass the “newspaper test.” Sokol resigned from Berkshire Hathaway in the wake of the scandal.

Report bad news — and bad apples — quickly

Berkshire Hathaway ultimately concluded that Sokol had misled the company with regard to his actions — a cardinal sin on the part of an executive who was supposed to be an example and a watchman. Berkshire subsidiary managers are entrusted with the mission of embodying and protecting the company’s culture. Part of top managers’ job is to call attention to bad behavior as early as possible:

… let me know promptly if there’s any significant bad news. I can handle bad news but I don’t like to deal with it after it has festered for a while. … Somebody is doing something today at Berkshire that you and I would be unhappy about if we knew of it. That’s inevitable: We now employ more than 330,000 people and the chances of that number getting through the day without any bad behavior occurring is nil. But we can have a huge effect in minimizing such activities by jumping on anything immediately when there is the slightest odor of impropriety. Your attitude on such matters, expressed by behavior as well as words, will be the most important factor in how the culture of your business develops. Culture, more than rule books, determines how an organization behaves.

Succession: Identify the next “All-Star” roster

Finally, Buffett asked his managers to send him the names of their top candidates to succeed them. Buffett has a succession plan in place for himself, though one he has not disclosed publicly. Similarly, he promises his managers confidentiality with regard to their choices (“These letters will be seen by no one but me unless I’m no longer CEO, in which case my successor will need the information”).

This requirement appears to be more of an exercise in risk management than long-term planning, as it exempts Berkshire subsidiaries that aren’t run by a single individual (“Of course, there are a few operations that are run by two or more of you — such as the Blumkins, the Merschmans, the pair at Applied Underwriters, etc. — and in these cases, just forget about this item.”)

A good reminder to start the new year

Warren Buffett and Berkshire Hathaway are proof that profits — huge profits, as it turns out — don’t need to be earned at the expense of business ethics. However, as with any endeavor of any significance, one cannot accomplish this alone. The heads of Berkshire subsidiaries enjoy exceptional freedom in running their businesses, but their devotion to protecting Berkshire’s corporate reputation must be uniform and absolute. The lesson isn’t new — last month’s memo was nearly identical word-for-word to the 2012 document — but it is worth reviewing at least every other year — for Berkshire’s managers and anyone else.

TIME Management

3 Workplace Trends to Watch For in 2015 (and Beyond)

Artificial intelligence will rock the job market, your company will need a Chief of Work, and cubicle farms will disappear

Correction appended, Dec. 11

If you happen to work at Microsoft, Google, Credit Suisse, or Unilever, you may be slightly ahead of your time — but only slightly. Those four companies have been featured in a new research report on the future of work.

“Most of the changes we’ll see in the next few years have already started to happen, but they will accelerate,” says Peter Andrew, workplace strategy director for Asia at real estate company CBRE. “The future is already here.”

Why real estate? Simple: Many big commercial clients sign leases for a quarter century or more into the future, so the industry keeps an eye on how work, and the places where we do it, are most likely to evolve. CBRE teamed up with Genesis, a giant real estate developer in China, to conduct in-depth interviews and other research with about 220 expert observers, executives, and office workers around the world, many of them Millennials.

The study turned up some intriguing signs of things to come, like these three:

Artificial intelligence will transform the workplace

The era of automation, which has seen robots replace workers in routine jobs in warehouses and on manufacturing assembly lines, is shifting to “knowledge work.” Among the advantages of teaching computers to gather information, and base decisions on it, is that “humans have biases. For example, people tend to be overly optimistic about a risky course of action if they’ve already invested a lot in it,” Andrew says. “AI eliminates those biases.”

It could also eliminate a lot of jobs — up to 50% of what knowledge workers do now, according to some estimates. Economies worldwide “won’t create new jobs at the same rate as we lose old ones,” says Andrew. “So there will be a difficult period of adjustment.”

Andrew likens this to what’s already happened within the legal profession, where computerization of routine research has slashed the number of new associates law firms need to hire. The upside: AI will free up human talent for more interesting, creative work. Eventually, we’ll all get used to it, Andrew says — especially since many of the tasks AI will take over are the business equivalent of household drudgery: “You never hear anyone complain about the invention of the dishwasher.”

Companies will need a Chief of Work

Most C-suites haven’t added new roles since the Chief Information Officer title took hold about 20 years ago, but CBRE’s research suggests that’s about to change. For one thing, companies today have “human resources, we have IT, and we have a real estate division — all acting separately and, often, unwittingly working against each other,” Andrew says.

A Chief of Work would coordinate all that, with an eye toward building a culture that attracts top talent, or what Andrew calls “the complete experience of working for the company, and how that affects performance.” Finding the most efficient balance between full-time employees and growing armies of independent contractors will be in the Chief of Work’s wheelhouse, too.

Office cubicles will be a relic of the past

For huge swaths of the knowledge-working, laptop- or tablet-toting world, technology has already made a desk in an office obsolete, or at least optional. So, partly in the interest of face-to-face collaboration, companies in CBRE’s study are thinking up ways to make workspaces healthier, more comfortable, and more fun.

One example: Old-school fluorescent lighting could be replaced by LED lights that can easily change color throughout the day to reflect subtle changes in the sky outside, like those lights on many airliners now that simulate dawn, midday, and dusk for long-distance travelers.

Companies will also move toward creating campus-like office buildings, like Chiswick Park in England, with amenities and events that draw people in. Andrew says more big companies around the world are starting to hand empty space, including erstwhile cube farms, over to local artists and musicians for use as studios.

“HR people tell us they see a tremendous increase in employee engagement from art, in particular,” says Andrew. “Making a more interesting environment, where you bring more of the broader culture into the space, creates a buzz and an energy that you really can’t replicate in any other way.”

This article originally appeared on Fortune.com

Correction: The original version of this article misstated the surname of Peter Andrew.

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