Female Execs Hone Customer Strategy

Women in leadership boost customer satisfaction and financials — especially in certain environments

Based on the research of Chandra Srivastava and Vijay Mahajan

Women in the C-suite are more likely than men to focus on customer relationships, leading certain types of companies to greater long-term financial performance, according to new research from Texas McCombs.

Key Takeaways:

· Unequal Benefit: In a study of 389 Fortune 500 organizations over six years, researchers found female leaders are most valuable to customer strategy in companies where:
The industry environment is relatively stable.
The C-suite has strong control.
The board of directors includes a relatively high number of women and people with marketing backgrounds.

· Pivot: “In less regulated industries, where there is more strategic and tactical freedom, the inclusion of female executives may provide a ‘turnaround’ strategy for these companies,” says Chandra Srivastava, St. Edward’s University assistant professor of marketing and McCombs marketing lecturer.

· Calculated Risks: They may be risk-averse in some business contexts, but female executives are willing to take risks when it means satisfying customers, according to co-author Saim Kashmiri of the University of Mississippi.

· No Panacea: An entirely female top management team is just as prone to groupthink as an all-male team.

· Balance: “Even if there are only a few female executives on the top management team, companies can strengthen the relationship between these female executives and customer orientation by adding female directors and marketing-experienced board members,” says Vijay Mahajan, McCombs professor of marketing.

“Customer Orientation and Financial Performance: Women in Top Management Teams Matter!” is forthcoming, online in advance in the Journal of Marketing.