Women and the Future of Healthcare Leadership

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TABLE OF CONTENTS

 Who We Are  Diversity Capabilities  Our Commitment  Executive Leadership  Gender and Healthcare Leadership  Implications for Organizations 2 2

WHO WE ARE

 Top ten executive search firm in the U.S.

 Global presence throughout 30 key economies as exclusive U.S. partner of Alto Partners  Nearly 40 years of successful service to our clients and candidates  GSA and Women’s Business Enterprise National Council (WBENC) certified  Over 5,000 searches since founding, with 200-225 searches on average per year 3 3

DIVERSITY CAPABILITIES

   We have established a comprehensive network of senior diversity leaders across industry sectors.

 Our firm is a nationally recognized leader in gender and cultural diversity recruiting.

Our goal is to present a balanced panel of candidates on every search assignment.

 Diversified has been committed to diversity since its inception. The firm was formed, in part, to promote gender diversity by providing professional women with entry into the executive marketplace.

We believe we have the best record of retention in the industry. Since 2002, we have monitored our progress on a quarterly basis in the area of diversity of candidate pool and placement.

Diversified is certified by the Women’s Business Enterprise National Council (WBENC) and are honored to be in the company of some of the finest organizations in the nation.

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DIVERSIFIED COMMITMENT

We uncover high-potential, standout leaders in every search because the opportunity for greatness is often found in unexpected places.

Standout Candidates GENERATIONAL

gender culture

FUNCTION

ethnicity

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Executive Leadership

CEOs ranked top issues facing hospitals: 1. Financial challenges 2. Healthcare reform implementation 3. Governmental mandates 4. Patient safety and quality 5. Care for the uninsured 6. Patient satisfaction 7. Physician-hospital relations 8. Population health management 9. Technology 10.Personnel shortages 11.Creating an accountable care organization Source: Top Issues Confronting CEOs: 2013. American College of Healthcare Executives. Retrieved February 2014. www.ache.org/pus/research/ceoissues.cfm

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Executive Leadership

Source: Hospital CEO Turnover 1981-2012. American College of Healthcare Executives. Retrieved February 2014, http://www.ache.org/pubs/research/ceoturnover.cfm.

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Executive Leadership

Source: Navigating Succession Planning, Leadership Development & CEO Transition. Yaffe & Co. Survey: Executive Compensation, 2011.

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Gender and Healthcare Leadership

Women continue to be under-represented at top levels of leadership.

Sources: Bureau of Labor Statistics (2011), EEOC Employer Information Report for Hospitals (2011), American Hospital Association (2010), American College of Healthcare Executives (2013). 9 9

Gender and Healthcare Leadership

Fewer women aspire to be CEOs than men. More women aspire to stay within healthcare over the next 15 years than men. Source:

A Comparison of the Career Attainments of Men and Women Healthcare Executives.

American College of Healthcare Executives. Retrieved February 2014, http://www.ache.org/pubs/research/2012-Gender-Report-FINAL.pdf

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Gender and Healthcare Leadership

Diversified Research: Healthcare Leadership and Gender

• Identify specific factors and trends that differ by gender and impact the process of recruiting, developing, retaining and advancing healthcare talent • Study conducted in partnership with the Women’s Leadership Center at Kennesaw State University Coles College of Business - 282 quantitative responses to online survey - 157 women, 125 men in leadership levels from Director to CEO - 58% secular non-profits, 21% religious non-profits, 9% government, 7% for profits, 5% other - 38% > 10,000 employees; 22% between 5,000 and 9,999 employees; 32% between 1,000 and 4,999 employees; 8% fewer than 999 employees - 52% urban, 36% suburban, 12% rural 11 11

Gender and Healthcare Leadership

Diversified Research: Healthcare Leadership and Gender

• What factors explain gender differences in career outcomes of healthcare leaders?

• How do career and life interests of healthcare leaders differ for men and women? Do these variables explain gender differences in salary, managerial level and career satisfaction?

• What do male and female healthcare leaders perceive as either positively or negatively impacting their career success?

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Gender and Healthcare Leadership

Diversified Research: Healthcare Leadership and Gender

 Career Paths  Compensation  Factors Valuable to Career Success  Career Satisfaction and Success  Challenges to Career Advancement 13 13

Career Paths

Women and men in leadership positions have different work histories and educational backgrounds.

Educational Background: All Leaders Men Women

MBA (25.4%) MD (25.5%) MBA (19.1%) MHA (14.6%) MHA (12.7%) Bachelors (5.6%) MSN (12.7%) Bachelors (10.8%)

Functional Background: All Leaders Men

Medicine (35.7%) Finance (16.7%) Administration (14.3%)

Women

Nursing (43.9%) Medicine (9.6%) Finance, HR, Admin (6.4% each) • • Among CEOs in the survey: 53% of women CEOs have nursing backgrounds. 43% of men CEOs come from general administration.

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Career Paths

Women tend to stay at an organization longer than their male peers.

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Career Paths

Women are more likely to be promoted internally than hired externally. 16 16

Compensation

Women continue to receive lower compensation than their male peers. Men Women 17 17

Factors Valuable to Career Success

Women cited specific factors as more helpful to their careers than men did, including: • Leadership abilities • Support from family members • Networking within their organizations • Having sponsors to endorse them • Involvement in professional or community organizations • Access to flexible work practices 18 18

Career Satisfaction and Success

Women derive significant satisfaction from a sense of contributing to society through meaningful work. Sources of professional advice for women: • • • • • • • • Spouse Family members Friends Senior executives at other organizations Executive coaches Senior executives at current organization Professional recruiters Business consultants 19 19

Challenges to Career Advancement

Women identified challenges to career advancement: • • • • • • Lack of supportive supervisors Exclusion from informal networks Lack of senior role models “like me” Inhospitable culture/biased attitudes Failure of senior leadership to help advance someone “like me” The need to prioritize family over work Men identified different challenges to career advancement: • • • Unwillingness to change organizations / companies Having an ineffective leadership style Lack of significant general or line management experience 20 20

Implications for Organizations

Organizations should assess leadership pipeline, attract female talent, then focus on developing, advancing and retaining that talent. Internal hiring • • Women typically willing to stay with employer longer than male peers Cost of external hiring far exceeds internal hiring Workplace Environment • • • Access to flexible work practices Inclusion versus exclusion Focus on societal contributions Resources • Access to executive coaches • Focus on mentors and sponsors 21 21