The Age of the Mompreneur: Empowering Working Mothers

Modern societal shifts and emerging trends in the startup ecosystem present new challenges and opportunities for women, particularly for mompreneurs – those juggling the responsibilities of motherhood and entrepreneurship. The success of early-stage enterprises founded and led by women depends greatly on dismantling systemic barriers, including the uneven distribution of venture capital.

In the recent Keynote webcast “The Boss of Me: Entrepreneurship and Motherhood,” Andrea Ippolito – CEO of SimpliFed, director of Women Entrepreneurs Cornell, and lecturer in the university’s engineering management program – shared her experiences as a mother and businesswoman, delivering compelling insights into what it takes for women to thrive as working mothers in today’s competitive, fast-paced labor market. 

How has the landscape of entrepreneurship changed for mompreneurs, particularly during and after the COVID-19 pandemic?

“What happened is that by forcing us to be at home, we showed folks that we can be effective and efficient, despite what some CEOs are saying. We actually saw an increase of women starting companies. When you look at 2019 compared to 2021, in 2019, there were a whole lot less women starting companies, 28%. Whereas during the pandemic, 49% of new companies were started by women. It was a much more flexible work environment.

Before the pandemic, it was all about meeting in person or working through stakeholder meetings in person. My journey looked a lot different than someone that was in their 20s, pre-kids, that could hustle 24/7. And don’t get me wrong, I hustle 24/7. My effectiveness and efficiency of working has always been pretty “right on” with having kids. But the time horizon has taken me a little longer.”

What are some of the largest hurdles working mothers encounter when trying to found a startup, and how does societal infrastructure play a part in this?

“The infrastructure is not in place to help support [founders], especially parents, whether that’s paid parental leave, universal child care support. There are so many things that we need to do as a society to better support entrepreneurs getting their organizations off the ground.

Startups founded by women are more profitable, and they exit faster. If you are an investor, it’s in your best performance interest for your fund to invest in women. If we want to have a more profitable economy, and we know that startups are the engine for that, then we need more folks participating. And the biggest pool of people we’re not taking advantage of right now is women. We need to rethink the structures to help support them.”

What are your secrets to striking a healthy work-life balance that comes with being a businesswoman and a mother?

“One of the things we see often is, especially for women that are parents, is they feel like they have to hide different parts of their life. For me, I have a five-year-old. I have a two-year-old and a T-minus five-week-old. And I don’t try to hide it. There are times where, yes, I don’t want them around because I want to focus 100%. But I also don’t try to hide it.

There’s this big misconception that people are taking off in the middle of the workday, and they’re not focused. The reality is that by giving folks a more flexible schedule, you actually get more out of them. They value their work. They’re aligned with your mission. But you’re also respecting them as a human being as well.”

Can you share your insights on the bias in investment toward women-led startups? How does this coincide with major life events like motherhood?

“We know that women [are] seen as less investable. There are tremendous biases out there, no doubt. And the research has shown that. One of the things that I feel very strongly about is that by the time a woman gets enough experience, expertise, and confidence, it’s around the same time that she’s having kids. One of the challenges is how do you start a company when you have this crazy unpredictable life of being a parent.

Venture capitalists have to raise money from somewhere. They have to raise money from what are called limited partners, or LPs. And those limited partners are pension funds, college endowments, sovereign wealth. And so we need folks like limited partners, like college endowments, to actually invest more in women-led funds.”

How can businesses better support working mothers, particularly with regards to incorporating child care into their business models?

“I think more and more, we need to have universal child care as a federally-funded entity. The companies that find ways to support child care or maybe fund it as a benefit will do better. And so I think there’s a responsibility of larger organizations to have this as a benefit. And then for, say, small businesses where they don’t have, frankly, those types of funds or resources, I do think [we need] a government federal response. It’s good for our economy. It pays for itself. It creates an engine in our economy.”

In a rapidly evolving entrepreneurial world, businesswomen are breaking down barriers, mastering the juggling act of work-life integration, and shaping business models to include family needs. Learn how to navigate a tech career as a woman leader in Cornell’s Women in Product certificate program, designed by Andrea Ippolito or gain a better understanding of funding models in Cornell’s Startup Funding and Finance certificate.

Women’s entrepreneurship institute set for major expansion

Two years ago, the Bank of America Institute for Women’s Entrepreneurship at Cornell launched their certificate program delivered through eCornell. Demand for the program was so strong that the original goal of providing free online education to 5,000 entrepreneurs quickly increased to 20,000 – thanks to a follow-on grant from Bank of America – and seats in the program were filled as soon as they were added.

On Nov. 19 – Women’s Entrepreneurship Day – the bank announced an additional grant that will allow another major expansion, more than doubling total enrollment. The institute in the coming months will add another 30,000 seats – for a total of 50,000 – while continuing to emphasize diversity, including the development of a Spanish-language component.

“We at Cornell are extremely proud of the impact the Bank of America Institute for Women’s Entrepreneurship is having on aspiring entrepreneurs,” said President Martha E. Pollack. “The institute builds on Cornell’s commitment to the public good and on the strength of our faculty in providing practical, focused, accessible education.”

Bank of America will partner with nonprofits – including the National Urban League, the U.S. Hispanic Chamber of Commerce, the National Association for Latino Community Asset Builders and Prospera – to increase opportunities for Black and Latinx entrepreneurs. Those partners will offer their members access to the certificate program beginning in January 2021.

Already, more than 80% of the institute’s roughly 22,000 enrolled students identify as women of color. Registration is open to anyone worldwide, regardless of gender identity, educational background or business stage.

Students take a series of two-week online courses designed by Cornell faculty to help women develop and grow businesses, access resources and join a network of fellow entrepreneurs.

Instructors support students and moderate discussions in the six classes:

  • Creating Your Venture;
  • Laying the Legal Building Blocks;
  • Assessing and Obtaining Financial Resources;
  • Growth Leadership for Women Entrepreneurs;
  • Product Development and Digital Marketing; and
  • Communication, Negotiation and Persuasiveness.

“A human instructor is present in each course, so the students are receiving feedback on their course projects and in their discussion forums, as well as engaging and networking with each other,” said Kirsten Barker ’92, program director for the institute.

Upon completing all six courses, students earn a certificate in women’s entrepreneurship – the only one of its kind offered by an Ivy League university. To date, students have completed nearly 21,000 courses and earned nearly 2,400 certificates.

Citing a study by the consulting firm McKinsey and Company, Bank of America noted that the coronavirus pandemic has more adversely impacted the careers of women, who accounted for 46% of U.S. employment before the pandemic but 54% of job losses this year.

At the same time, the institute’s leaders say, women, and specifically women of color, represent the fastest-growing segment in entrepreneurship, but historically have lacked access to training, resources and networks.

“We’ve been amazed by our students’ resilience throughout COVID-19,” said Deborah Streeter, the institute’s faculty director and Professor Emerita in the Charles H. Dyson School of Applied Economics and Management, part of the Cornell SC Johnson College of Business.

Responding to an institute survey about their transitions to working from home, students reported dealing with caregiving challenges that have disproportionately fallen on women, as well as disrupted businesses, longer hours in essential jobs and fatigue. Some also said they had found opportunities to bond with family and friends, expand their businesses online and improve efficiency.

After completing the program, one student proudly posted an image of her certificate to her LinkedIn page and stated “COVID-19 season has had a silver lining. I feel equipped and empowered.”

Having launched as an online certificate program serving students from across the nation – and a small international contingent representing dozens of countries – program leaders say the institute is well-positioned to grow and support more students despite the challenges posed by the pandemic.

“This expansion will allow us to improve the chances that these entrepreneurs will be successful,” said Stewart Schwab, the Jonathan and Ruby Zhu Professor of Law at Cornell Law School and executive director of the institute. “That’s our goal, to give our students the tools for success.”

Bank of America expands the Bank of America Institute for Women’s Entrepreneurship at Cornell

CHARLOTTE, N.C.–(BUSINESS WIRE)–As part of Bank of America’s $1 billion, four-year commitment to advance racial equality and economic opportunity, today – Women’s Entrepreneurship Day – the company announced a further expansion of the Bank of America Institute for Women’s Entrepreneurship at Cornell. Due to the program’s success, Bank of America will add 30,000 seats – bringing the total enrollment of small business owners to 50,000 – and will work with Cornell to develop a Spanish language curriculum and hire Spanish-speaking teaching assistants to more effectively support Hispanic-Latino entrepreneurs.

The Bank of America Institute for Women’s Entrepreneurship at Cornell is the only Ivy League program offering a certificate in women’s entrepreneurship, and at no cost. Since its launch in 2018, the institute has enrolled more than 20,000 individuals, primarily women, of whom 86% identify as women of color. Registration is open to anyone worldwide, regardless of gender, educational background or business stage.

As part of the program expansion, Bank of America will partner with several nonprofits, including the National Urban League, U.S. Hispanic Chamber of Commerce, the National Association for Latino Community Asset Builders and Prospera, to create more enrollment opportunities for Black and Hispanic-Latino entrepreneurs.

The challenges that women entrepreneurs face have multiplied over recent months. According to a recent McKinsey study, while women made up 46% of U.S. employment pre-coronavirus, they account for 54% of overall job losses year to date – with women of color the hardest hit.

“With women bearing much of the economic brunt of the pandemic – and particularly women of color – our further investment in the Bank of America Institute for Women’s Entrepreneurship at Cornell has never felt more important,” said Anne Finucane, vice chairman at Bank of America. “Amid the unforeseen challenges and events this year, we must continue to invest in women entrepreneurs to drive economic growth, because when women-owned businesses thrive, our communities flourish.”

“We at Cornell are extremely proud of the impact the Bank of America Institute for Women’s Entrepreneurship is having on aspiring entrepreneurs,” said Martha E. Pollack, president of Cornell University. “The institute builds on Cornell’s commitment to the public good and on the strength of our faculty in providing practical, focused, accessible education.”

Through coursework that draws on curricula from across Cornell’s schools, the instructor-led classes and limited class size provide women the opportunity to learn new skills, connect with a vibrant network of entrepreneurs and social innovators, and access the resources they need to manage and scale a successful business. These courses include Creating Your Venture; Laying the Legal Building Blocks; Assessing and Obtaining Financial Resources; Growth Leadership for Women Entrepreneurs; Product Development and Digital Marketing; and Communication, Negotiation and Persuasiveness.

Investing in women

Bank of America’s investment in women as they make meaningful contributions within the company and in communities around the world includes a focus on being a great place to work for its female employees, improving the financial lives of female clients, and advancing women’s economic empowerment worldwide. The company has several long-standing partnerships, through which it has helped more than 30,000 women from 85 countries grow their businesses, including:

  • Tory Burch Foundation Capital Program: Since 2014, Bank of America has committed $100 million in capital to the Tory Burch Foundation Capital Program, helping women business owners gain access to affordable loans. To date, more than 3,400 women have received nearly $57 million in loans through community development financial institutions (CDFIs) to help them grow their businesses.
  • Global Ambassadors Program: A partnership between Bank of America and Vital Voices, the Global Ambassadors Program pairs women entrepreneurs with senior women executives for a week of one-on-one mentorship and workshops designed to build business acumen. To date, the program has impacted more than 400 women from 85 countries – helping mentees grow their businesses and organizations through more than 8,000 hours of training and mentorship.
  • Cherie Blair Foundation: Since 2013, Bank of America has partnered with the Cherie Blair Foundation on its Mentoring Women in Business program, which has matched more than 2,700 women in developing and emerging countries to online mentors, including more than 500 mentors from Bank of America.
  • Kiva: Through a partnership with Kiva, Bank of America has committed more than $2 million in funds to women business owners, assisting more than 17,200 women entrepreneurs from 45 countries.

Recent Bank of America announcements focused on racial equality, diversity and inclusion, and economic opportunity include:

Bank of America Environmental, Social and Governance
At Bank of America, we’re guided by a common purpose to help make financial lives better, through the power of every connection. We’re delivering on this through responsible growth with a focus on our environmental, social and governance (ESG) leadership. ESG is embedded across our eight lines of business and reflects how we help fuel the global economy, build trust and credibility, and represent a company that people want to work for, invest in and do business with. It’s demonstrated in the inclusive and supportive workplace we create for our employees, the responsible products and services we offer our clients, and the impact we make around the world in helping local economies thrive. An important part of this work is forming strong partnerships with nonprofits and advocacy groups, such as community, consumer and environmental organizations, to bring together our collective networks and expertise to achieve greater impact. Learn more at about.bankofamerica.com, and connect with us on Twitter (@BofA_News).

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

www.bankofamerica.com

Contacts
Eliza Murphy, Bank of America
Phone: 1.347.603.6845
eliza.murphy@bofa.com

5 tips for improving your public speaking presence

Do you have the presence of a leader? Are you comfortable public speaking? A vital skill in business and life is the ability to genuinely connect with others, yet many are intimidated at the thought of standing and speaking before friends or peers.

eCornell’s Chris Wofford interviews Cornell professor David Feldshuh (March 26, 2019).

David Feldshuh, Theater Professor and Artistic Director of the Schwartz Center for the Performing Arts at Cornell University, can absolutely relate to this.

“I was extremely shy,” admitted Feldshuh, “but I decided to get over my fear of public speaking by going to drama school and becoming a professional actor.” Learning from these techniques, Feldshuh invented his own method of training people to have a presence, communicate, and connect, and ultimately become more effective when speaking on any subject, in any place, and to any audience.

Feldshuh discussed a few tips for refining public speaking skills in a recent webcast with eCornell, Executive Presence: the Lifelong Process of Public Speaking.

1. Take Up Space

Public speaking requires becoming comfortable with taking up space. Feldshuh suggests practicing simple exercises, including posture, centering, balance and stillness. “Your head is high, your shoulders are wide, you’re balanced. You reach out, you ‘catch rain’. Your shoulders come back. Relax… Think about yourself as a pendulum; side to side, until you come to a point of stillness.”

2. Freedom of Expression

Executive presence should be authentic, Feldshuh advises. You must have freedom of expression and access to a range of vocal and physical communication skills. Recognize and become familiar with your own gestures and sounds; you want to use your voice and body without fear or self-consciousness. Relax your face, breathe, and smile.

3. Magnetism

Feldshuh defines magnetism as “the ability to bring variety to how you present yourself so people want to hear more.” It is important to connect with your audience, and understand how each person is different. Change your delivery as needed; take a moment to ask yourself what you want from that person, and make that connection.

4. Performance

Not everyone can be a magnificent speaker, but Feldshuh says the measure of success is being able to see and believe in yourself as competent. The easiest way to do this is to observe yourself – ask a friend to take videos of you presenting, or ordering something from a menu. The more you acclimate to seeing yourself, the more you become comfortable with your own voice and gestures.

5. Practice

Becoming an effective speaker doesn’t happen overnight. Feldshuh encourages individuals to take the time to become self-aware of their habits, and learn techniques to change those habits and develop new ones. “Record it, look at it, change it,” says Feldshuh. “You’re coaching yourself, and that’s the measure of success.”

This method is the basis of Cornell University’s online certificate program, Executive Presence. Over the course of fifteen weeks, students learn to refine their public speaking skills through the act of analyzing their own performance, performing exercises and practicing transformative techniques.

Cornell’s new Executive Women in Leadership certificate program

Women comprise 44 percent of the overall S&P 500 labor force, and yet they hold just 25 percent of executive and senior-level positions, occupy only 20 percent of board seats, and represent just 6 percent of CEOs. Power structures and gender dynamics often favor and reward the contributions of men over women, and even the most experienced and capable women can struggle to overcome these to attain leadership positions.

To empower accomplished professionals with the strategies and techniques needed to skillfully level the playing field while working to attain higher levels of leadership, Cornell has announced the launch of the new Executive Women in Leadership certificate program. Available online through eCornell, this certificate program equips learners with the tools needed to identify and reduce the gender bias and power dynamics present in their own organizations, and to bring greater parity to workplace culture.

“Research shows that when both women and men think of a leader, they think of a man,” says faculty co-author Dr. Deborah Streeter, the Bruce F. Failing, Sr., Professor of Personal Enterprise at Cornell’s SC Johnson College of Business. “For centuries, men have held the highest positions of power in most organizations, which has led people to associate leadership with stereotypically masculine traits, including aggression, decisiveness, strength, and willingness to engage in conflict. This certificate program allows learners to create a personalized action plan using recommended strategies to understand the gendered environments in which they are operating and then navigate the most effective path to leadership, status, and power in their organization.”

Women leaders in mid- to senior-level positions, women who hold or are interested in seeking board positions, women entrepreneurs and founders, and male leaders seeking to better understand gender dynamics in their organizations will find value in this program. Learners will refine their executive presence to improve interactions with people at higher power levels, improve their approach to negotiations, explore the strategies needed to develop a strong professional network, and assess the core competencies needed for board membership.

“In order to become a senior leader, an individual must first be perceived as one. This requires demonstrating myriad skills such as being an effective negotiator, a visionary, and an excellent networker, as well as personal characteristics such as gravitas, authenticity, and the right mix of authority and warmth,” says Dr. Susan S. Fleming, co-author, executive educator, and former Senior Lecturer at Cornell’s School of Hotel Administration and the Johnson Graduate School of Management. “Learners will explore ways to prepare for the challenges women face in developing and evidencing these skills and qualities.”
Once learners complete the Executive Women in Leadership certificate program, they are well-positioned to navigate institutional dynamics and achieve higher levels of leadership.

Courses include:

  • Power and Gender Dynamics
  • Developing Executive Presence for Women Leaders
  • Gender Bias and Negotiation Strategies
  • The Network Effect
  • Decoding the Gender Gap in Board Membership

Upon successful completion of all five courses, learners earn an Executive Women in Leadership Certificate from Cornell SC Johnson College of Business, 40 professional development hours, and 4 Continuing Education Units.

How to Develop Your Personal Brand (And Live Up to It)

What adjectives would you use to describe yourself? Would your coworkers, friends and families use the same terms?

Pamela Stepp, who teaches leadership assessment at Cornell’s ILR School, joined eCornell’s Chris Wofford for a WebCast focusing on how to develop a personal leadership brand and ensure that you continue to live up it.

Wofford: I’m very excited to have you here with us, Pamela.

Stepp: Thank you Chris, and thanks to everyone who is tuning in. This is all about you.

I want to start by asking everyone watching to think about who you are as a professional and who you want to be.

I’m going to walk you through the steps to create your own personal leadership brand and then help you come up with a story that you can tell that will demonstrate that brand.

Wofford: That sounds great. I think our audience will really get something out of this. Where should we start?

Stepp: Power is very important to consider when you are developing your personal leadership brand. You need to think about how you present yourself powerfully in an organization and how to recognize if someone is powerful or powerless. A good way to start thinking about this is to choose a person—this could be anybody in the world—who you think is powerful. Think about the characteristics of that person and what helps them be powerful and write down this person’s leadership brand in one sentence.

Chris, let’s use you for an example. Who did you think of?

Wofford: The first person that came to my mind was Bob Dylan. And the adjectives I used to describe him were mysterious, direct, and honest.

Stepp: Isn’t that amazing how fast you could come up with these clear traits? Let’s turn to the audience members. Someone has chosen Oprah Winfrey, saying she is credible, empathetic, driven, and relatable. Does that sound like Oprah? I certainly think so. Another has chosen Barack Obama and described him as gentle, straightforward, and clear-speaking. So we can see that it’s quite easy to identify the personal brands of well-known leaders.

Now let’s move on to thinking about our own personal branding. What makes you different? What adjectives would you choose to describe this brand called “you”?

Wofford: Wow, the answers from our viewers are coming in very quickly. Maureen says she’s organized. Darius, passionate. Marcelo, accountable. Rebeka says she’s driven and has great attention to detail. Carol says she leads and inspires.

Stepp: I can see more results are still coming in, but now I want you to come up with your most noteworthy traits and values. It’s important to remember that your values change at different stages in your life, so I want you to come up with examples of your current value, either personal or professional.

Wofford: Some of the answers coming in include curiosity, family, integrity, honesty, kindness, empathy. These are great examples from our audience.

Stepp: Yes they are. Now I’m going to give you an example of two short descriptions of the leadership brand that I use. I teach at universities and business schools all over the world and one of the brands that I use—and I want people to let me know if I’m living up to this —is that I want to be known for being a knowledgeable and inclusive leadership educator who demonstrates her passion for the subject and genuinely cares about helping her participants or students to grow into the best leaders that they can be.

So that’s the personal brand I have when I’m giving these sorts of talks. I had a different brand when I was a full time businesswoman as the managing director at the Center for Advanced Human Resource Studies. There, I wanted to be known for being a knowledgeable and open-minded business leader who used her confidence, determination, and networking ability to help the center grow into a more global organization.

So that’s how I’ve used my values to create personal branding.

Wofford: Pamela, I’m just going to play devil’s advocate for a moment and ask what the point is in using these words to describe yourself. In your case, you say you’re inclusive, knowledgeable, and dedicated to making sure that people get results out of your talks. Isn’t this just an example of putting your best foot forward? Does it really help one’s leadership ability to go through this sort of exercise?

Stepp: It does, and that’s because once you’ve established your leadership brand, you want to live up to it. It helps keep things clear in your mind and remind you whether or not you’re living up to the way you’ve described yourself and the way you want others to see you. Does that answer your question?

Wofford: It does. You’re saying we’re always a work in progress and that developing a personal brand helps bring focus to our careers and our professional lives.

Stepp: That’s right. It helps us focus on the traits that we want to be known for. Some examples coming in from the audience include inspirational, politically savvy, collaborative, innovative, results driven, strategic.

Then you start to refine those and work toward finding your identity by combining those descriptors. For example, “I’m a strategic innovator who gets things done.” You want to construct your leadership brand statement by putting everything together, all those adjectives and values.

Then you need to start asking other people what they think your brand is because it will surprise you. Make your brand identity real by checking in with others around you. Are you living up to that brand? That’s the beauty of having a defined leadership brand. You can always check in to make sure you are living up to it.

Wofford: So is your recommendation to go to other people and ask them how they’d describe you?

Stepp: Absolutely. You’ve got to keep reminding yourself of your brand and keep asking others if you’re living up to it. For example, I teach undergrads at the university because I want to prepare 20 year olds for leadership and because I want to know that generation. I started writing about being an inclusive leader and when I get evaluations back at the end of the semester, I can see that inclusion is my highest score. That really inspires me to keep working on that and to make sure everybody participates, to make sure I’m including international students who maybe aren’t speaking English all that well, making sure that there aren’t gender imbalances in who I reach. The point is, you can gain confidence if you learn that you are living up to your brand. And if you’re not living up to it, you have to know that. My brand is the yardstick by which I measure myself.

Wofford: We invite you to take a minute and see if you can come up with your own personal brand statement. Don’t overthink it. This is just an exercise and something that hopefully you’ll continue to work on.

OK, we have some responses. Deborah says “I’m a mentor. Helping others is what I enjoy best.” Steve has a great one: “I’m an innovator who pushes the creative envelope by inspiring others to do the same.” Crystal says, “I’m an innovative, compassionate, and knowledgeable leader with a desire to help others become the best that they can possibly be.” I think people are getting there, right Pamela?

Stepp: Yes, you are all doing a great job. These are good examples of leadership brand statements. You can refine and change them, but they shouldn’t be long diatribes. It should just be a paragraph, so these are really well done.

Once you have that brand, it’s time to think about storytelling. It’s always helpful to demonstrate your brand through stories, whether you’re standing up in front of an audience or if you’re at a cocktail party or even just with your friends. When done well, a compelling story can inspire our beliefs and our motivation to reach a goal. So I recommend that you all think of a story that you enjoy telling and think about how you can use that in the workplace.

I also want you to think about nonverbal power. When you walk into a room, you want to stand up straight and have good eye contact.With nonverbal power, you want to express competence. You want to express trustworthiness, dynamism, energy. When you talk, you want to be sure to think about using a proper voice, making eye contact and scanning the whole room.

Another huge thing is that when you are speaking with someone, you need to take the effort to learn their name, maintain eye contact, and make them feel you are focused on them. I’ve always found that amongst the people that I admire, their leadership ability is to make you feel like you’re the only person in the room.

Wofford: Pamela, thanks so much for joining us. I’m excited to get my storytelling ability dialed in and I hope that those in the audience will start working on their personal leadership brand one-sentence mantras as well.

Stepp: Thanks so much for having me.

 

Want to hear more? This interview is based on Pamela Stepp’s live eCornell WebSeries event, How to Develop a Personal Leadership Brand. Subscribe now to gain access to a recording of this event and other Women in Leadership topics. 

Women in Leadership Program Enrolls 1,000 Students

eCornell’s Women in Leadership certificate program has reached a major milestone, enrolling 1,000 students since it launched in January 2017.

Authored by Dyson School professor Deborah Streeter, the Women in Leadership certificate program identifies issues facing women in leadership positions and offers actionable strategies to address them.

Women hold just 5.2 percent of CEO positions at top companies and are underrepresented at every level of workplace leadership. They earn just 78 cents for every dollar a man makes; the gap is even wider for women of color.

“Every day at work, women must present a very public face of leadership, one which balances being powerful and effective with being ‘nice.’ There isn’t much room for error as they navigate the so-called double-bind,” Streeter said. “But while participating in the Women in Leadership certificate program, each woman has an intimate and confidential setting to apply the course content to her own life and context. This is a rare, private opportunity for reflection and personal career-building, separate from the professional environment they share with colleagues.”

Throughout the program’s five courses, women learn how to recognize and navigate gender dynamics in the workplace, advocate for themselves and their teams, and strengthen their emotional intelligence to stand out as a leader of men and women.

“Since completing the program, I am more cognizant of the way in which I speak. I avoid softening my message with apologetic words, and I am bolder when articulating my ideas. These courses empower female professionals to embrace leadership opportunities that once seemed too daunting,” said Laura Woodard Clark, corporate communications officer at P&S Surgical Hospital.

Upon completion of this certificate program, students receive a Women in Leadership Certificate from the Cornell SC Johnson College of Business.

Can Pay Transparency Help Close the Gender Wage Gap?

Women may have more professional opportunities today than ever before in history but the unfortunate reality is that they still earn less than men on the whole, thanks to a persistent gender wage gap. The most commonly cited statistic in the gender pay gap discussion is that women earn 77 cents for every $1 earned by their male counterparts. But according to Stephanie Thomas, a lecturer at Cornell University’s ILR School who has spent 15 years researching the gender gap, there is more to that figure than meets the eye.

As part of eCornell’s webinar series, Thomas joined Chris Wofford to discuss the complexities of the gender wage gap and how employers can use transparent pay practices to help close it. Below is an abridged version of their conversation.

Wofford: I think everyone is probably familiar with the common figure that we all kick around, that women earn 77 cents to the dollar that men earn. Is there more to the story?

Thomas: That figure is part of the story, but it’s not the whole story. When we look at various explanatory factors and make appropriate comparisons, we see that the 23 cent gap really narrows. Yes, it’s a real number but it’s not necessarily reflective of the true gender pay gap when we measure things correctly.

Part of the reason that we have this 23 cent differential is due to the way we’re measuring the gap. If we look at all men versus all women, we see a large gap but that’s not necessarily the right comparison to make. We know that there are a lot of non-discriminatory factors that influence pay, like occupational choice, industry, labor market experience, and education — all those kinds of things. So when we lump everybody together and look at all men versus all women, and the only thing we account for is gender, we see that 23 cent gap. When we control for things like occupation, industry, labor market experience and union status, we see that the 23 cent gap really closes. When these factors are included, we get that gap down to about nine cents per dollar.

Wofford: If everything else has been accounted for, does that suggest that the nine cent difference is down to pure discrimination?

Thomas: It’s difficult to make an inference of discrimination. We first need to make sure that we’re comparing people properly, so we want to look at people who are in the same occupation, in the same industry, with the same labor market experience. Women tend to have less labor market experience than men, simply because of biology. Women are the ones that give birth and most women don’t want to give birth under their desk and go right back to work. So we take time off and that makes a difference in the labor force experience of men and women of the same age. When we account for all of those things, there’s about a nine cent gap left.

But there are some other factors that are a little more difficult to measure, that could explain that remaining nine cents. For example, women will, generally speaking, take a lower salary and a richer benefits package while men are more likely to take a higher salary and less benefits. Men also tend to prefer more risky compensation elements like stock options and bonuses. Women, on the other hand, tend to be a little more risk averse than their male counterparts.

We can also look at the role of caregiving responsibilities, whether that’s for children, disabled family members or elderly parents. In our society today, women still bear the brunt of those caregiving responsibilities. Whether that is right or wrong is a different conversation, but it’s still seen as a female thing to do. So if women are taking time off from work, or scaling back their hours, that can influence what we see in terms of the overall earnings numbers.

Wofford: Doesn’t negotiation also play an important role in this?

Thomas: Absolutely. Negotiation and compensation expectations are really important. There have been a variety of studies done on this. One of the most interesting asked people who had just finished their MBA what they thought a reasonable starting salary would be. Depending on how you look at the data, compensation expectations for women were anywhere from 25 to 50 percent lower than their male counterparts.

Wofford: Wow, that’s substantial.

Thomas: It is, and if women have lower expectations about what a reasonable pay package would look like, that can contribute to the disparity. We also know that women are only one-third as likely as men to engage in compensation negotiations. When they do negotiate, they’re just as successful but they’re only one-third as likely to start that conversation.

The last thing I want to bring up here that helps explain that nine cent differential is the difference in work hours. We know that men tend to work more hours per week than women. A lot of times those extra hours are paid as time-and-a-half overtime earnings, so if men are working more overtime, that alone can be enough to explain the difference in the amount on the paycheck. Even though you and I might be paid the same hourly rate, if you’re getting time and a half for overtime and I’m not, you’re going to have higher earnings than me.

Now, even if we account for caregiving, hours, the cash benefits tradeoff, and all those other things, there still may be some gap left over. I think it’s important to note that just because we can explain the gap in the aggregate doesn’t mean that there aren’t real cases of gender discrimination happening. We could have a zero differential in the aggregate but that doesn’t mean that everyone’s being paid fairly. If there are cases of gender discrimination, and unfortunately there are, it’s really more than just the impact on the woman herself. It’s really a family issue. It’s a societal issue. More than 7.3 million families are headed by single mothers. If they’re not earning as much as they should be, then that’s going to affect where they can live, access to education, and opportunities for their kids. It’s really much more than just paying the woman fairly. If women have less income, that’s going to affect the economy as a whole because they’re not going to be spending as much, which in turn has a dampening effect on GDP growth and macroeconomic issues.

Wofford: So actually, everyone would benefit if the gender gap was brought down to zero, not just women.

Thomas: Yes. People are starting to realize that the gender pay gap is more than just about the woman. It’s a family issue, a societal issue and a big macroeconomic issue.

Wofford: So how do we work on closing the gap?

Thomas: One thing that can help is pay transparency, which is something we are hearing a lot about these days. Why do we care so much about pay transparency right now? From my perspective, I think that there are two different sets of forces playing a role here. On the one hand, it’s sort of a logical extension of what we’re seeing in society as a whole. With the rise of social media, people are sharing more things about themselves. I’m a little bit older and I was raised with the idea that nice people don’t talk about politics, religion or money. But my 16-year-old niece just tells everybody everything about herself on social media. It’s very open, it’s not a big deal. I think that millennials don’t have the same kind of privacy concerns that Gen-Xers like me do.

I think this push toward pay transparency is also an extension of business trends and the rise of big data. Today, we’re collecting more information and we have better technology to process that information and generate insights. Organizations are shifting somewhat to more person-based jobs, rather than job title-based jobs. It used to be that job descriptions would include “other duties as assigned.” A lot of times now, the “other duties as assigned” is the job. It’s a combination of business and societal trends that are sort of causing this issue of transparency to rise to the surface.

Wofford: How do you go about showing pay transparency? I’ve never been in an environment where that was the case.

Thomas: Pay transparency means different things to different people. What I recommend for businesses is what I refer to as pay process transparency. What that means is really setting out a very well-defined, organized, clear set of expectations. If this is your job and this is how many years of experience you have, and these are your skills, abilities, talents, and qualifications, this is what the pay range is going to be.

Cornell has what I would call pay process transparency. Depending on the job family that you’re in, there are different grades – B, C, D and E – and a starting salary range. If you are in this particular job family at this particular grade, then your salary is going to be between here and here. In order to get to the next step or to earn the next pay increase, the criteria are laid out very clearly. Each employee knows what they have to do to get that next merit increase or bonus. Being transparent about your pay process is really providing employees with enough information to really understand how those pay decisions are made.

Wofford: This also tells an employee how much negotiation wiggle room they have, right?

Thomas: Yes, there’s a minimum and maximum. Sometimes you’ll see it presented in terms of a midpoint. Some organizations, particularly in the high tech sector, have decided to opt for non-negotiation policies. They know that men and women have different tendencies to engage in those conversations, so one of the ways that they’re addressing the gender pay gap is to say, “This is what we’re offering you. Take it or leave it, we’re not going to discuss it.”

Another element of pay transparency is what I refer to as pay disclosure. Whole Foods is a great example of this. At Whole
Foods, anybody can go in and say, “I want to see how much so-and-so is earning” or “I want to see what the CEO’s compensation package is.” Whole Foods has taken somewhat of a radical approach to this in that they’re making their payroll books open. Any employee can go in and look at any other employee’s pay. For the culture that Whole Foods has, this is a good strategy for them but for other organizations this may not be optimal. I think you have to figure out what’s appropriate for your organization and what fits with your culture.

The third example that I want to talk about is something that happened at Google, and this is what I call radical transparency. This was not something that Google put into place but rather something that Google employees did on their own. It started with a former Google employee who was concerned about some pay equity issues at Google. She created a Google spreadsheet and circulated it among some of her co-workers and said, “Put in your name and your salary and we’re going to see what the pay practices are.” It was voluntary disclosure on the part of the employees.

Wofford: What happened? How did the higher-ups respond?

Thomas: Well, they weren’t happy, but technically, there was nothing that could be done. It’s not illegal for employees to talk amongst themselves about their pay. Whether you’re unionized or not, the National Labor Relations Act gives employees the right to talk about compensation.

There was a lot of buy-in from the fellow Google employees and the spreadsheet revealed what the workers thought were some discrepancies that needed to be looked at. Now, just looking at a sheet of people’s names and pay rates is not going to tell you everything that you need to know. Just because you and I have the same job title doesn’t mean that we should have the exact same pay rate.

Wofford: What happened at Google as a result?

Thomas: Well, the employee departed the organization and the whole thing blew up in the news. It was ultimately resolved internally so I don’t know the details but I know Google did take a look at this issue. I hope that if there were real disparities that needed to be corrected, they were.

Wofford: Great, so we’ve seen several examples of pay transparency, radical and otherwise. What’s next? Are more companies thinking of transitioning to a transparent process?

Thomas: A lot of organizations are thinking about it. Before I came to Cornell, I spent 15 years in private consulting and one of the things that I specialized in was the statistical analysis of pay disparities. So we would be retained to go in and look at an organization’s data, understand how they paid people, and actually do a statistical analysis to identify those disparities. If we found disparities, we would report that information back to the organization and help them figure out what steps they needed to put into place, not only to correct the situation, but to prevent it from happening again.

Wofford: Would you advocate generally for this kind of transparency?

Thomas: I completely support pay process transparency. I think that it’s the right thing to do. I think it’s information that your employees are entitled to and should be provided. For some organizations, it’s probably not time yet, but it might be in the future. You have to understand your workforce, their needs and their wants. There really isn’t a one-size-fits-all solution to this.

I think the bottom line is your employees are going to talk about pay. They’re going to have those conversations, whether you want them to or not. You can’t legally prevent them from doing it but what you can do is help manage them. By being open and providing this information up front, you can inform and direct those conversations. If you’re providing accurate information and people have an understanding of how those decisions are made, it can shut down the rumor mill.

Wofford: Stephanie, thank you for the conversation on these very important issues.

Thomas: Thank you, Chris.

Want to hear more? This interview is based on Stephanie Thomas’ live eCornell WebSeries event, The Gender Wage Gap: Causes, Consequences and the Way Forward. Subscribe now gain access to a recording of this event and other Human Resources topics.

Are Most Managers Bad Listeners?

The Art of Listening for Impactful Leadership

When you think of the traits that define a good leader, does your list include listening? If it doesn’t, it should. If you learn to develop and improve your ability to listen, you’ll likely be better prepared to lead and manage individuals, teams and organizations.

In this edition of the Women in Leadership WebSeries, Professor Judi Brownell from Cornell University’s Hotel School joined eCornell’s Chris Wofford to discuss how listening can improve your effectiveness as a manager and to share practical tools for improving your leadership ability through listening.

What follows is an abridged version of their conversation.

Wofford: Is it true that most managers are bad listeners?

Brownell: Well, most managers certainly believe they listen more effectively than they do. I think that speaks to our lack of awareness of listening.

Listening is like any other communication skill in that you really can keep improving. Regardless of how well you actually do listen, there is always more you can do.

In a professional context, there is a really interesting curve where listening is critical as you come into an organization but then speaking is often more important in the middle of a career because you’re influencing through your ideas. And then as you go into senior management, listening once again becomes really important.

For new employees, listening is particularly important because it’s through listening that you begin to understand how things are done in an organization and whose voices are really heard. But it’s also important in senior positions. One of the problems is that sometimes senior executives think they have all the answers but they often don’t. They really need to rely on other people’s perspectives.

Wofford: Listening is easily taken for granted, right?

Brownell: Absolutely. A lot of us don’t think actively about how we listen.

Listening is what we call a receiver-defined activity, which means that things mean what the listener thinks they mean. We’ve seen that in many cases in the political arena recently. No matter where you stand, things can mean different things to different people. That’s because as a listener, you have a lot of personal characteristics that contribute to how you interpret things.

Wofford: Speaking of personal characteristics, let’s check in with the audience. As Judi mentioned, most people think they’re better listeners than they actually turn out to be based on feedback. So I’m going to ask the audience: How would you rate yourself as a listener? Do you perceive yourself as an excellent listener, a pretty good listener, an okay listener or a pretty poor listener?

Looks like almost 75 percent say they are either excellent or pretty good, although we do have two admitting to being poor listeners. This probably jibes perfectly with your data, right?

Brownell: Yes, generally people think that they’re pretty good listeners.

Wofford: I’d now like to ask the audience to think of someone you work with who is a great listener. What is it that they do? Give us the one particular characteristic or a bit of feedback they display that demonstrates to you that this person really listens.

Brownell: The responses coming in are what I would expect. People list “eye contact,” “nodding,” “asking follow-up questions,” “focusing,” and “reciprocating.” These are all great and I think asking follow-up questions is probably one of my favorite things about having a conversation with somebody. That’s an indicator that they’re listening. I’m not satisfied when I’m talking to someone and they’ve got nothing but answers.

Wofford: Okay Judi, so what else can people do to develop their listening skills?

Brownell: I want to talk about the LAW of listening, which is Listening = Ability + Willingness. Although listening is a skill that you can develop, nothing really matters if you don’t have a willingness to listen or if you don’t have an interest in focusing on your listening and making it a priority.

I think it’s important that everybody see themselves as someone who can improve their listening, no matter how great or dismal you think you are at listening.

We certainly learn by listening and we facilitate by listening. As a leader you’re not the one who has all the ideas or all the opinions, you’re the one who brings out the best in the team. So a good listener makes sure that all of the people in the group feel like they’re heard.

Listening also builds trust. If you are someone who listens and encourages others to listen, trust increases. When trust increases, so does job satisfaction.

Wofford: And the flip side is that poor listening then leads to lower job satisfaction, right?

Brownell: Yes. Let’s talk about what it means for you as a leader when you are not listening.

I was asked to do a listening training session at a large healthcare organization where the employees were unhappy with the way their managers listened. When I went in to try to find out a little more about the problem I discovered that different employees meant different things by not listening. In some cases they would mean that a manager would say, “Sure, don’t worry, I’ll take care of it” but then didn’t follow through. To them, it was like not listening. In other cases a manager would have an open door policy but when someone would come in to speak to him, he’d be multitasking and doing a lot of other things. So the employees were frustrated with their managers but for quite different reasons.

Over the course of five to ten years of doing a lot of needs analysis and a lot of interviewing and a lot of follow up, we came up with a model that has six interrelated components that represent the different types of skills that contribute to what people think of as effective listening.

I’ll go through each of those from the standpoint of a leader. The first of these is focusing attention. Are you paying attention to the right things? Next is understanding, which is getting more complicated as we have a more diverse workforce and customer base. Then we have memory. If you don’t remember, it affects the way that your listening is perceived. Fourth, interpreting. This has to do with the nonverbal aspects of listening, while the fifth component, evaluating, has to do with making a judgment about something. Finally, the last component we’ll discuss is responding.

So you can see with all of these components that listening is a process. It involves a multitude of different skills and you may be really good in one skill area but not so good in another area.

Wofford: How do you improve in the areas that need it?

Brownell: We have what is called listening strategy, which is a way to focus your attention. There are two components of listening strategy. One is the context. Usually in leadership situations, you’re in a team context. But even if you’re not the leader of the team, you can still have a lot of real influence as a team member by changing your listening behavior. Many times what a team needs is someone who’s really listening and paying attention.

Wofford: What are some of the different contexts that listening can play out in?

Brownell: It could be whether or not you’re listening one on one if you’re in the context of two people. Or listening within the context of the team or within the context of a presentation, where you’re just sitting there listening to somebody speak. Or the context of a mediated communication, which is the type of ‘listening’ that takes place while communicating through texting, email or the telephone. I expanded listening to include texting and all of the ways in which people today, particularly younger people, are communicating because there’s always a listening component to those interactions.

Part of context is how many people are involved. A team situation is the most dynamic because you’ve got all these players. The other element of context is the purpose. You may not always think about it, but whenever you go to talk with someone, there’s almost always some purpose. It can be to learn, to make a decision, to solve a problem or just to get to know someone better. So looking at the context, both in terms of the number of people and the purpose, helps you focus your attention on the things that are important.

We all know about selective attention, which means that you tend to seek out things that confirm your beliefs. But being open minded is so important in listening. You need to at least attempt to understand what the other person is saying, even if you don’t agree with it. It’s fine not to agree, but you need to listen until you understand.

Wofford: When your disagree with someone, do your own beliefs interfere with your ability to really listen?

Brownell: Well, there are a lot of personal factors that influence what you hear. As I mentioned earlier, individual differences and diversity are major factors in our ability to really understand all messages. When I’m listening, I try not to make assumptions. I try to really ask probing questions, questions that show that I’m interested.

Everyone is so different now, with different understandings of things and different amounts of information about things, so you should never just assume what someone may or may not know. Along with that, you should never take for granted that someone is listening to you. You need to look for the visual cues and ask questions. Sometimes when you are listening to someone, asking them if they feel that they’ve been heard is really powerful. To ask, “Do you feel I’ve understood you, and if you don’t, then please tell me more so that I do understand” is pretty effective.

Wofford: That’s a great tip. Do you have any others to help people focus and understand?

Brownell: Well, as you know, a lot of people have trouble with remembering names when they are introduced to someone. It’s typically because they’re not really focusing on listening to the name — instead, they’re focusing on what they plan to say next. So some of that difficulty in remembering is just due to where you’re focusing your attention.

Wofford: I think using people’s names in conversation is a great way to indicate that you’re paying attention.

Brownell: Absolutely, that’s a great tool. When meeting someone, you need to give a firm handshake, have really direct eye contact and then repeat their name: “It’s good to meet you, So-and-So.” That definitely helps you remember their name, and remembering is part of the perception of listening. If you don’t remember, you are perceived as having not listened.

Also, and I think most people are already aware of this, it is very important to be sensitive to the non-verbal elements that either contradict or support what someone says verbally. The non-verbal carries something like 70 percent of the message so you need to try to understand not just the content in the language but also the emotional aspects that are communicated through body language, expressions and vocal characteristics.

Wofford: We had an observation come in from the audience that I find really interesting. This person writes: “When you are known as active listener, especially when you listen with emotional intelligence and show that you actually relate to the speaker, they always try to burden you with personal issues.” Judi, what do you think of that?

Brownell: I think it’s true that sometimes when you’re perceived as someone who will listen, people may take advantage of you. If you are a good listener, you may attract people who are needy and that is a really difficult balance. You need to find a way to get yourself out of those situations. As soon as you realize what is going on, you need to continue to have empathy and project empathy but then you need to say, “I really wish I had more time for this, but I don’t.” If it’s somebody you really care about then you can set up another, more appropriate time to discuss it.

Being a good listener doesn’t mean that you can’t be assertive. Assertive skills can go in combination with listening skills. You need to protect your time because your time is really valuable.

Wofford: I think most of us can relate to being in a situation where someone really wants you to listen to them but for whatever reason you just can’t do it right then. It can be very awkward, so I think that was a great comment from the audience.

There’s another question that I’d like you to weigh in on because I think it’s another situation a lot of people can relate to. Katherine asks: “What if a senior executive you work with does not exhibit healthy listening behaviors? That is, he or she interrupts, doesn’t give feedback, doesn’t probe. How do you handle that?” I suppose there’s no short answer to that one, but do you want to respond?

Brownell: Can you help a leader become a better listener? Well, changing someone else’s behavior is really hard. One of the things I’ve always found is helpful in trying to get someone to really listen to you is to connect with them. Treat them as a real person and not just the person in their role. Learn about their interests. I find that helps them get into listening mode a little bit. Timing is also important. If you approach some people at a bad time, they’re not going to listen regardless. So you can try to strategically select what might be a good time.

Also, maybe the reason they’re not listening is that they have something they want to say. People don’t listen if they also want to speak. If you go to your supervisor and there were things your supervisor wanted to tell you, he or she won’t listen to you until they’ve had the opportunity to tell you what they had in mind for the meeting. After they get something off their chest, they’re much better positioned to listen.

Wofford: Judi, I want to thank you for joining us today.

Brownell: Thank you, Chris. We really had some great feedback from an active audience so I think we’ve got a pretty healthy bunch of listeners out there.

 

Want to hear more? This interview is based on Judi Brownell’s live eCornell WebSeries event, The Art of Listening for Impactful Leadership. Subscribe now to gain access to a recording of this event and other Women in Leadership topics. 

How to Plan and Prepare for Organizational Change

The Greek philosopher Heraclitus said that “the only thing that is constant is change”. This is true both in life and in business. Organizational changes are inevitable. It’s how we handle them that matters.

As part of eCornell’s Women in Leadership webcast series, Amy Newman from the School of Hotel Administration at Cornell University joined eCornell’s Chris Wofford for a discussion on how to effectively communicate and prepare for organizational change. What follows is an abridged version of their discussion.

Wofford: Amy, it’s great to have you again.

Newman: I’m glad to be here. Thanks for having me.

Wofford: Amy and I have done this before. About a year ago, we did a webcast on crisis communications. That’s pretty related to this but tell me, Amy, what are we going to learn here today?

Newman: The focus is on managing a change and communicating that change. What I’ve found is that organizations are pretty good at implementing change but they often forget to actually communicate with people both internally and externally. Sometimes, the external communication seems to be the priority in companies. They’ll tell their investors and their customers but often forget that employees are important ambassadors of the change and are the ones who will actually implement the change.

Wofford: All right. So what is the value of communication planning?

Newman: Well, let’s look at some research. In a paper published in Corporate Communications: An International Journal, Wim Elving identified four goals of change communication. The first is to increase buy-in and decrease resistance. We know that people naturally resist change, so the more we can do to prepare them to increase readiness, the more likely that they’ll buy into the change. So that’s one component.

The other is obviously to inform the audience. People need to know there is a change. They need to know how it affects them and what they’re going to be doing differently. Those are kind of the basics, but they’re essential.

Next, we have creating a sense of community or a sense of belonging, and this is the piece I think people don’t really think much about. When people hear there will be organizational change, they worry about layoffs or worry that they’ll have more work to do. There’s a tendency to focus on the negative results of a change, so you want people to feel like they’re part of the process and they’re going to be a critical piece of the organization going forward.

And then finally, it’s important to reduce uncertainty. You need to let people know what they can expect and what is expected of them. This also gives you a better chance that your change is going to be successful.

Wofford: I think a lot of people in the corporate world have probably experienced situations in which hirings and firings and big, sweeping departmental changes don’t always tend to be communicated very well.

Newman: Absolutely. And I think the tendency is to not communicate for a couple of reasons.
One, we simply forget because there are all these logistical things to deal with. But I also think people don’t like to deliver bad news, so they think it’s better to say nothing at all. Of course, that’s not true.

There are really two types of communications strategies for change. One is to inform people of what’s happening, but the second is critical and that’s about creating a sense of community.

I’ll give an example. When Marriott acquired Starwood last year, in one of the early messages that Arne Sorenson, the CEO of Marriott, sent to Starwood associates announcing the change, he said, “It’s strange for us to go from competitors to teammates.” I thought that was just such a great way to say it. He acknowledged that, “Yeah, this is weird.” First we were competitors and now we’re supposed to be part of one big happy family. Everybody’s thinking it, so acknowledging that up front makes people really feel like they’re part of the process.

Wofford: That we’re all in the same boat.

Newman: Exactly. Honesty like that reduces uncertainty and job insecurity. It prepares people for the change and then it ensures an effective change.

Now I thought that there was one goal missing from Elving’s work that I added and that’s to prevent a crisis situation. If you’re not communicating well, at some point your employees can be angry at you. So can your investors or your customers. And we know that social media will respond.

Wofford: There will be a whistleblower tweet out there or something like that, right?

Newman: Yes… It could go viral and, suddenly, in addition to trying to communicate the change, you now also have a crisis situation to handle. So it’s best to get out ahead of things even if it’s bad news.

Wofford: Like in The Godfather when Tom Hagen says, “Mr. Corleone is a man who insists on hearing bad news at once.” Obviously that was great advice.

Newman: That’s right. With bad news, you just need to get it out. In my classes, we talk about indirect communication and direct communication. The older style of thinking is indirect communication for bad news. You know, soften the blow. I don’t think that really works anymore. People want to hear what it is and just get past it.

Wofford: So that’s good advice for crisis avoidance?

Newman: Absolutely. I can share an example where the planning may have not gone so well. This is the Carrier situation and I know it’s a very sensitive one. President Trump got involved.

Wofford: The heating and air conditioning manufacturing jobs in Indiana?

Newman: Exactly. They announced that this plant was moving to Mexico and they did it in a large forum. I mean, I’m not so sure what would be a better choice really, maybe smaller department meetings. There’s no great way to tell 1,400 or so employees that they’ll be losing their jobs but, in this case, someone had an iPhone and recorded it and that’s what went viral for everyone to see. So it did not turn out so well for them and it’s something that they really should have thought about in advance.

I think part of the communication planning process is that you have to assume that any internal message is going to go external.

Wofford: You’ve developed an actual change communication plan, haven’t you? Should we get into that now?

Newman: Yes, I have something that I’ve used for many companies. It’s something to be used for major organizational changes like a merger or acquisition. But even with small department changes like a new system implementation, it would be helpful to think about who we need to communicate to and what our messages are.

Wofford: Okay, so how does it work?

Newman: The major categories are to identify the audiences, to do some work thinking about their potential reactions and to look at some communication objectives. What media or channels are you going to use? What is the timing?

Let’s start with the audience and their potential reactions. I put together a sample involving the closing of a restaurant. In every situation, this is going to be a little bit different but this is the way you might think through that kind of change.

The first thing I would do is to identify all of the audiences. Usually, we get into something called cascading communication where most likely you’re starting at the senior-most level of your organization and working your way down. You’ve got to think about the levels of management and the level of employees involved. So in this case, I’m saying the corporate management team, the restaurant management team and then the restaurant staff. Clearly they need to be notified pretty quickly. The corporate staff might be next and then you might have to notify the local government depending on the local laws. You may want to directly reach out to some VIP customers. Maybe the media will be next.

They all get different messages, different media choices. All of that has to be thought through.

Next is to look at the background of the different audiences and their potential reactions. This is the step I often find is missing. It’s really about empathy, about trying to put yourself in someone else’s shoes. It’s thinking through some of those potential, particularly negative reactions and trying to address them.

Wofford: Right. What else is involved in your template?

Newman: First, let’s look at the communication objectives. You want the corporate management team to understand the rationale and details and then you have to plan communications for their team. And when you’re coming up with these communication objectives, I would really recommend to once again think from that audience’s perspective.

The next thing to consider is responsibility, and this is easy to identify but a little harder to carry out in the communication plan. If we’re using this cascading communication, the corporate management team would communicate to the restaurant management team, for example, and the restaurant GM would communicate to the restaurant staff, probably with the help of H.R.

Next we’ve got to decide on our communication media or channel. You know, the default communication channel is most often email. For 12 years now, I’ve been hearing about the death of email. I’m still waiting for it to die.

Email is particularly effective in communicating bad news. Can you think about why?

Wofford: Well, it’s directed at me. I mean, people are tethered to their phones, right? So there’s an expediency to it.

Newman: Right. Plus, everybody’s getting the same message at the same time. In layoff situations, companies will usually send those messages on a Friday and then people go home so they’re not in their office angrily talking to each other and getting each other riled up.

But there is a downside to email. Many people would prefer a call, or better yet, a face-to-face conversation. So that’s a decision that really has to be thought through.

The last component here is about the dates or the timing of the messages. It is important to think about who should know what and in what kind of sequence. I’ll go back to the Marriott Starwood example, because I think they did a pretty good job overall.

When the announcement was first made, and this was back in November 2015, there was an email from Starwood executives to Starwood associates with a press release that hadn’t gone out yet attached. That was really the first communication, as it should be, because this was an acquisition, not a merger. Starwood associates are the ones who are thinking they might have the most to lose. When that email went out, it was presumably the first that anybody had heard of this.

Next, we get an email from Marriott executives to Starwood associates that came less than two hours later. Clearly this was all well orchestrated and planned. And that was the message I mentioned before, where they say it’s strange to go from competitors to teammates. It was just a very welcoming message. There was also a video with Arne Sorenson that was lovely.
Then, we had the press release. That public announcement was a little later in the day, but at this point employees already knew that it was coming. In other words, they didn’t have to read about it in the press. All of this happened within three hours of that first message.

Wofford: Amy, thanks so much for joining us once again and thanks to all of you who tuned in.

Newman: Thank you, Chris. It’s been a great conversation.

 

Want to hear more? This interview is based on Amy Newman’s live eCornell WebSeries event, Communication Planning: Preparing for Organizational Change. Subscribe now to gain access to a recording of this event and other Women in Leadership topics.