GEP - Governance Indicators

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San Francisco Gender Equality Principles (GEP)

Indicator Tool For Principle 4: Management And Governance

Created January 2009

What is the Indicator Tool?

This tool was created to assist companies in developing and improving policies and best practices relating to gender participation in management and governance. It is based on Principle 4 of the San Francisco Gender Equality Principles.

How is the Indicator Tool organized?

The tool is organized by the three key elements under Principle 4. After each key element is listed, a brief description and/or business case for promoting that key element is explained. The tables following each key element are broken down by the subcategories mentioned in the key elements. The indicators in the tables are useful policies and practices, including metrics as applicable, for each sub-category. The rating system includes a notes section where company representatives can, for example, clarify ratings and distinguish between different parts of the company.

This is a self-assessment tool that companies can use to compare their progress from year to year and/or give themselves a total score to measure improvement. Companies do not receive a final grade or total score after filling out the Indicator Tool. The tool is a guide for companies to set goals and objectives on how to improve their culture, policies, and practices related to management and governance initiatives. Since companies may choose to focus only on certain sections of this tool, some of the indicators are repeated in different sections.

The information and answers companies provide on this tool is confidential and is for internal company use only.

How do I use the rating system?

Each indicator has a space next to it where you can rate your company's implementation of that element on a scale of 0-5. The rating categories are defined as follows:

Rating Categories
5	Full Implementation	Policy and implementation plan in place, widely accepted and utilized.
4	Moderate Implementation	Policy and implementation plan in place, but not yet widely accepted or utilized.
3	Beginning Implementation	Policy in developmental phase, or pilot program, and/or minimal implementation.
2	Ad Hoc Arrangements	Ad hoc arrangements made for specific cases.
1	Square One	No policy or plan in place; need information to get started.
0	Not Applicable	Particular key element is not relevant to organization's operations.

You may give your company more than one rating for each indicator. This would be useful, for example, if you wanted to rate different divisions or programs separately.

How do I use the Notes section?

The elements are often broad and may contain compound issues. Please make use of the notes next to each key element to clarify or expand upon your answers, and highlight best practices and areas in need of improvement. You can also use the notes to give specific examples of what is currently taking place, and/or ideas on how to address gaps. This is also an appropriate place to note whether the policy is implemented at the domestic workplace or headquarter level, with contractors and the global supply chain, or both. Be creative; this section allows flexibility for you to record what's most helpful for you in the assessment process.

Corporate Commitment and Accountability

When implementing successful management and governance initiatives, it is important not only to have appropriate policies and programs in place, but also to ensure that the organizational culture is open to and supportive of such initiatives. While support from the corner office is critical for the success of any workplace initiative, management and governance initiatives in particular need the full backing of the CEO. As the business case for management and board diversity continues to strengthen, it is imperative for the CEO to communicate the importance of diversity and inclusion to the company's overall success. Leadership from the top sets the tone and signals to all employees the importance of embracing all related initiatives. Offering initiatives without such support may discourage both their use and effectiveness.

With this in mind, initiatives should be widely promoted and employees should be encouraged to openly discuss promotion and leadership opportunities with their supervisors. Supervisors need to be trained and encouraged to be supportive of employees desiring active decision making roles and assist in finding solutions that work for both employees and the organization.

While establishing a corporate culture supportive of such initiatives is key to their success, it is equally important to measure participation in such initiatives and be transparent with the results. Companies need to develop metrics, inclusive of gender disaggregated data, to measure participation in management and the boardroom, including analysis of line vs. staff positions and the ratio of women promoted to those eligible for promotion, and assess the effectiveness of their efforts. The findings can be used to identify both achievements and challenges, and develop action plans, including establishment of measurable short- and long-term goals. Communication of performance results, goals, and objectives demonstrates an overall commitment not only to the offering, but also the success of the company's management and governance initiatives.

PRINCIPLE #4: MANAGEMENT AND GOVERNANCE

Corporations will take concrete steps to attain gender equality by adopting and implementing policies to ensure equitable participation in management and governance.

Key elements of this principle include:

Establish policies and undertake proactive efforts to recruit and appoint women to managerial positions and to the corporate board of directors.
Establish policies and undertake proactive efforts to assure participation by women in decision-making and governance at all levels and in all areas of the business, including budgetary decision-making.
Include gender equality as a factor in performance measures, strategic planning goals and objectives, and budgetary decisions.

KEY ELEMENT (A):

Establish policies and undertake proactive efforts to recruit and appoint women to managerial positions and to the corporate board of directors.

While there has been limited progress in women's representation in management and on corporate boards, there is still significant room for improvement. With the business case for executive and board-level diversity continuing to unfold, particularly in regards to women, recruiting and appointing women to these positions gains increased importance.

In addition to being good for the bottom line, companies should recognize executive and board diversity as good governance. In a global marketplace, the ability to draw on a wide range of viewpoints, backgrounds, skills, and experience is critical to a company's success, as it increases the likelihood of making the right strategic and operational decisions, encourages innovation, contributes to a more positive public image, and catalyzes efforts to recruit, retain, and promote the best people, including women and minorities. It also ensures a more balanced approach to risk management and oversight.

Companies should ensure that diverse candidates are considered as part of every managerial and director search. To do so externally, companies may need to look beyond their traditional networks to find qualified women and minority candidates for these positions. Recruiters and search firms can expand their search process to consider candidates from non-traditional areas, such as academia, non-profits, and small and medium enterprises, as successful women and minority leaders in these areas also offer relevant executive and governance experience and expertise. To do so internally, companies should expand their search process to include participants in diversity initiatives, such as affinity or employee resource groups, mentoring programs, and other groups established to provide women and minorities opportunities to develop and hone the skills needed to move up the pipeline.

Policies and Procedures	Rating 0-5	Notes
Metrics: Establish and review the demographics of each position, particularly line or decision-making management positions, and the composition of the board of directors. Look at job families or groups, rather than individual positions, to see trends.
Metrics: Establish and review disaggregated participation rates in executive training programs.
Strategic Plan: Develop guidelines on targets (e.g., percentage target for improvement) and how metrics will be used.
Required Training: Support mandatory diversity training for employees at all levels on, at minimum, an annual basis. This training can be integrated into existing trainings (e.g., new hire training, leadership training). In-person training is preferable to online training.
Coaching: Encourage and/or create peer coaching and networking programs. Analyze who is participating and create action plan to ensure that participants are interacting with a diverse array of people.
Scope of issues: Address diversity training topics such as barriers and stereotypes, hidden biases, cultural needs, as well as topics with more direct bottom-line impacts such as recruitment/retention and business development opportunities.
Scope of Personnel: Provide tailored diversity training to all managers and directors to ensure full understanding of the business value of diversity. It is critical that managers and directors in particular understand that diversity necessitates treating people fairly rather than equally, which allows for individual nuances. Training should start at the top to establish leadership commitment.
Director Selection Criteria: Amend company's Nominating and/or Governance Committee Charter to include diversity, specifically diversity of race and gender, as desired characteristics of board nominees.
Director Selection Criteria: Consider amending governance policies to include term limits for directors (or a one year off policy.)
Recruitment Protocols: Provide specific internal recruitment guidelines to ensure female candidates are part of every director, executive, and management search.
Recruitment Protocols: Review high performance and early leader identification criteria regularly to ensure there are no stereotypes or hidden biases. When candidates are identified, provide clear protocols for professional development, and track candidates' retention and promotion rate.
Executive and Director Selection Process: Expand process to identify women executives in non-traditional fields with sound governance experience and relevant expertise.
Executive and Director Selection Process: Formally disclose a policy that includes non-profit board experience and entrepreneurialism as relevant and encourage women with this experience to apply for a board positions.
Executive and Director Selection Process: Encourage the executive and/or nominating committee to partner with independent women's organizations that advise corporations on board appointments and mentor emerging women leaders.
Executive and Director Search Firms: Ensure that the company's recruitment protocol requiring qualified women to be included in every executive and director candidate slate is clearly communicated to the firm(s).
Executive and Director Search Firms: Monitor the firm(s) success at identifying and including women from both traditional and non-traditional fields.
Alliances: Foster recruitment initiatives by forming alliances with professional organizations representing the interests of women.
Periodic Evaluations: Review search procedures annually to ensure female candidates are part of the recruitment protocol, and track actual recruitment and promotion rates.
Performance-based compensation: Ensure diversity recruitment, retention, and promotion goals are tied to performance reviews and compensation. This is a critical method to hold mid-level managers accountable for their diversity performance.
Strengthen CEO Accountability: Ensure CEO ownership of diversity goals and performance.
Director Accountability: Ensure the Board of Directors has oversight of diversity goals and performance.
Disclosure: Provide periodic updates on the company's diversity recruitment efforts, with performance indicators and rationale.
Diversity Council: Create executive level diversity council or group to ensure that executives throughout the company are familiar with and working on diversity goals.
Measure of Success: Company has moved beyond what is often seen as a token women representative, and instead has achieved a critical mass of women in top management and on the board of directors.

KEY ELEMENT (B):

Establish policies and undertake proactive efforts to assure participation by women in decision-making and governance at all levels and in all areas of the business, including budgetary decision-making.

Ensuring representation of women in management is not enough. Companies need to expand this process and ensure women are represented at key positions throughout the company.

It is becoming increasingly evident that women and minorities serving in key decision-making roles contribute not only to the overall success of the company, but also to the success of women and minorities within the company. A recent study demonstrates that American women earn substantially more and benefit from a narrowing of the pay gap, when there are women in senior management roles within their companies. Another study indicates that when there are several women serving on a corporate board, the representation of women in executive roles within that corporation also increases. Having women in these key leadership positions also sends a strong message to employees that the company's commitment to diversity is more than lip service; it is an actual strategic corporate value.

Policies and Procedures	Rating 0-5	Notes
(See Principle 2–Career Development) Provide professional development opportunities that include formal or informal networking, client development activities, and mentoring programs that include women at all levels.
Women's Affinity Groups: Create an action plan to diversify women's groups to include range in ages, sexuality, etc. Form interest with male advocates to invest in women's affinity groups.
Talent Management: Ensure diversity is incorporated into talent management practices and succession planning. High performance and early leader identification criteria should be based on competencies, potential, and qualifications. Periodically review criteria to ensure a diverse pool of candidates. Train front-line managers to spot potential diverse candidates.
Periodic Evaluations: Review talent management and succession planning procedures annually to ensure female candidates are part of the pool, and track actual participation rates..
Employee Surveys: Measure employee feedback on diversity practices. Include targeted questions such as management supports my efforts to manage my career/professional development and management provides opportunities to engage in governance decision-making and governance. Be sure include open-ended questions, as well, such as do you see yourself as a potential leader in this company? Why or why not? Ensure results are reviewed by gender.
Metrics: Measure female representation within decision-making and line roles. Identify number of women candidates in recruitment pools, number of women promoted to line positions, and number of women who may have refused decision-making role in any system audit. Use findings to identify both achievements and challenges/gaps. Develop action plan, including establishment of measurable short- and long-term goals.
Metrics: Establish and review disaggregated participation rates in executive training programs.
Performance-based Compensation: Ensure diversity recruitment goals are tied to performance and compensation.
Advisory Board: Create an advisory board to track diversity progress at all levels in the company
CEO Accountability: Ensure CEO oversight of diversity goals and performance.
Director Accountability: Ensure the Board of Directors has oversight of diversity goals and performance.
Disclosure: Provide periodic updates on the company's diversity recruitment efforts, with performance indicators and rationale.
Informal Programs: Capture and measure impact of informal programs (e.g., informal networking and mentoring programs) on employee success.
Measure of Success: Company has moved beyond what is often seen as a token women representative, and instead has achieved a critical mass of women in decision-making and line positions.

KEY ELEMENT (C):

Include gender equality as a factor in performance measures, strategic planning goals and objectives, and budgetary decisions.

Companies that have a systematic approach to including diversity in performance measures, strategic planning, and budgetary decisions are taking concrete steps to dismantle the traditional barriers faced by women and minorities and should recognize a competitive edge in the workplace and marketplace.

Policies and Procedures	Rating 0-5	Notes
Performance Reviews: Provide employees at all levels access to criteria for performance reviews. Evaluation criteria should be transparent, public, and easily accessible.
Performance Reviews: Conduct reviews with tactic-based and formal procedures.
Performance Reviews: Reward diversity performance and participation, by taking steps to tie diversity performance to promotion opportunities, compensation, and/or bonuses. Include a 360 degree review to help determine to what extent person is perceived as committed to diversity and inclusion.
Evaluation: Report quantified results of performance reviews and share with senior management. Create an action plan to address any identified issues.
Management Performance Evaluations: Include diversity efforts in the evaluation of management. This includes measures such as: progress on eliminating all forms of discrimination, recruiting and retaining diverse pool of talents, providing career development opportunities for female employees, and promoting work life balance.
Representation: Ensure a diverse pool of individuals work to develop the company's economic and budget planning.
Representation: Ensure a diverse pool of individuals work to develop the company's strategic planning.
Planning: Ensure gender is taken into consideration when determining strategic issues.
Planning: Ensure gender equality is part of overall corporate strategy.
Metrics: Establish and review disaggregated data on utilization of flexible work options or other alternative scheduling.
Metrics: Establish and review metrics in the area of turnover, particularly into line or decision making roles. Identify, when applicable, the core reasons for high turnover rate.
Metrics: Review pay levels by gender and other social characteristics.
Budgets: Examine the impact of budgetary allocations on men and women, paying particular interest to adverse gender impacts on compensation, training, recruitment, and professional development.
Budgets: Examine the impact of budgetary expenditures and cuts by gender on employees, as well as customers/clients. For example, is spending on professional development between men and women equitable?
Budgets: Ensure diversity functions have adequate resources and a structure for full implementation of initiatives.
Study: Conduct a diversity return-on-investment study for at least one high-impact diversity initiative.

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