Transcript THE FORCE ALREADY IS WITH WOMEN We are what we repeatedly do. Excellence, then, is not an act, but a habit. Aristotle Anna Hejka Founder &

THE FORCE ALREADY IS
WITH WOMEN
We are what we repeatedly do.
Excellence, then, is not an act, but a habit.
Aristotle
Anna Hejka
Founder & Managing Director
HEYKA CAPITAL MARKETS GROUP
HEYKA CAPITAL MARKETS GROUP
 The 1st (1990) merchant bank focusing on Poland & CEE;
 Services: Corporate Finance; M&A, Strategic Advisory; PE;
 Strengths:
Track record in complex, international transactions,
 Expertise in Value Building,
 Creativity in effective structuring of deals,
 Rigor in executing our mandates whatever & wherever they are,
 Proven Integrity evidenced in placing clients' interest first,
 Commitment demonstrated in investing own cash ,
 Independence from institutions burdened by global problems
&/or conflicts of interest,
 Network of contacts on all continents & especially in Poland,
Unique, friendly & entrepreneurial corporate culture.
HCM GROUP ADDED VALUE
 Mergers & acquisitions, strategic alliances + divestitures & exit
strategies for owners;
 Corporate Finance (from idea to market leaders): private (PE:
buyouts, VC, seed funds, business angels…) & public (IPO/SPO)
equity, mezzanine (unsecured & subordinated debt + preferred stock
with call & put options, investment credits & working capital lines;
 Buyer or vendor due diligence, budgeting, projections, valuation;
 Value building: strategic advisory, planning, internal audit to
improve business model + optimization or restructuring;
 Interim management, executive & supervisory board controls;
 Vision/mgt/motivation: incentive systems, option & earn-out plans;
 Corporate governance, best financial practices & standards;
 Marketing/communication/PR/IR, Networking, Coaching;
HCM GROUP PORTFOLIO
DOES WORLD MAKE SENSE?
 Cos with the highest representation of women on top mgt
experience better financial performance than Cos with lowest:
ROE is 35% ↑ & TRS is 34% >* + Fortune 500® Cos in top Q
in women’s representation on boards outperform those in lowest
Q by ≥ 53% ROE;
 Yet, despite plethora of new US training & leadership initiatives,
woman represent 7.6% of top earning positions, 16% of
corporate officers & 13.5% of line executives, numbers that
haven’t budged since 2005;
 Need for corporations to achieve a critical mass of women in
senior leadership to succeed & thrive in today’s economy.
*see Catalyst (353 companies that appeared in the Fortune 500 from 1996 to 2000: consumer discretionary,
consumer staples, financial, industrials, and information technology/telecommunications services ) + Deloitte
WHY DOES WORLD NEED
 Stronger interpersonal, empathic skills, flexibility & sociability →
gauge situations accurately, collect & integrate information from all
angles → enhances persuasiveness & allows to infuse energy & power
into shared vision & engenders commitment, loyalty & support;
 Resilience, learning from adversity & assertiveness coupled with
flexibility, interpersonal connection & ability to use setbacks to fuel
drive to succeed & overcome challenges;
 Honoring inclusion over hierarchy team-building style of problem
solving & decision making + stronger listening skills, learning from it,
reflecting back, implementing plan incorporating best thinking of all;
 Risk taking & resisting following “rules” + higher tendency to resist
both established procedures & over-cautiousness + greater sense of
urgency & abstract reasoning; they focus on getting things done with
less hesitation.
THE BOTTOM LINE
 Purchasing power of US Women > ~ US$5 trillion (50% of
computers, cars, & > 80% of all consumer purchases + ~ 50% of
all shareholders, 50% of work-force, half of college graduates +
PhDs outnumbered men);
 In Europe: 45% of workforce & > 50% college graduates, yet
comprise only 11% of corporate executives; received 45% PhDs in
science, but accounted for only 18% of most senior researchers;
 In Japan commissioner in National Personnel Authority cites “…
insufficient utilization of women as human resources, particularly
their intellectual resources” as factor in Japanese economy’s
lackluster performance;
 Women’s earning power is ↑ even faster in developing countries,
where their earned income ↑ @ 8.1% vs. 5.8% for men; in Saudi
Arabia, women own ~ 40% of private wealth.
ECONOMIC FACTS
 In the digital, knowledge economy, human capital replaces natural
resources as the basis for growth;
 Cos that require talent with skills in science, technology, engineering,
& math (critical to competitiveness) are experiencing serious
workforce shortages e.g. EU information, communication &
technology sector has shortage of 300,000 qualified staff;
 High achieving women are starting own businesses creating jobs; in
US nearly all net job creation since 1980 has come from small
businesses operating for < 5 years; # of women-owned Cos is ↑ @ 2x
overall ↑;
 Women may well be the dominant source of economic ↑ in near
future → organizations that are able to capitalize on the roles women
play as economic actors will muster significant competitive advantage.
VALUE CREATION
Toppling of market leaders + competitive intensity doubled over last 20 years.
> 85% of corporate value creation relies on intangible assets:
people, brand + intellectual property.
JOB MIGRATION
> educated women than men move from their country of origin
in search of greater opportunities.
CONSUMER SPENDING
Women control ~ US$13 trillion of total consumer spending globally,
the largest emerging market world has ever seen, & they have different
buying patterns & preferences.
SHOULD GOVERNMENTS CARE?
 GDP ↑ & high level of employment = social peace:
 The OECD: “since 1995, narrowing the gap between male and
female employment rates has accounted for half of the increase
in Europe’s overall employment rate and a quarter of annual
economic growth.”
 The SEC: ”The evidence is clear: the more women in the
workforce, the more per capita income rises.”
 Pensions impact on budget deficits:
 High fertility is associated with high female labor-force
participation. The only countries in Europe with high replacement
birth rates are the same ones where women’s labor force
participation is highest.
 Women are intrinsically linked to peace and security.
SHOULD COMPANIES CARE?
Homogenous decision-making groups, especially higher up in
organization, present risk of lower collective intelligence.
Factors of collective intelligence
No impact
Ave. social sensitivity of group members Group cohesion
Distribution of turn-taking
Motivation
Proportion of females in the group
Satisfaction
Ave. intelligence of group members
VALUE FROM INVESTING IN