The Equity Supply Chain:

1
The Equity Supply Chain

• Is it the Cause of So Few Women in Management and
  Leadership Positions?

Richard G. Dudley
25th Meeting of the International System Dynamics
Society
Boston - July 2007
2
A Pipeline Issue? (some quotes)

• the assumption usually unfounded that
  there isnt enough talent in the pipeline.
• qualified women in substantial numbers have
  been available for the academic pipeline for 20
  years.
• For decades, the pat explanation was that women
  simply had not been in the work force long
  enough... A look at the pipeline suggests
  otherwise.
• This dearth of women leaders, both academic and
  administrative, is no longer a pipeline issue.

3
A Simple Question

• Given that women make up 45 of the US workforce
  but only 16 of corporate officers and only 2 of
  CEOs.
• Can pipeline delays alone account for this
  relatively low fraction of CEO and leadership
  positions held by women?
• In other words, are the numbers of women in these
  positions what we would expect given
  historical trends of women in the overall
  workforce and in college?

4
The Approach Taken

• Supply Chain (subscripted by gender)
• Starting with last year in high school
• Three levels of university education
• Six career categories
• Adjust input data so that (for 1940 2005)
• Proportion of female and male university students
  matches real world information.
• Proportions of men and women in the total
  workforce match real world information.
• Examine
• fraction of male and female workers in Senior and
  Leadership Positions
• under different scenarios.

5
Model Structure 1 Education
6
Model Structure 2 Early Workforce
moving up
7
Model Structure 3 Higher Positions
8
Model Structure 3 Higher Positions


9
Some Background 1 Historical Trend - Workforce
Composition
0.9
Approximate Composition of the Workforce by Gender
0.8
Men - accounting for women's
part-time participation in the workforce
0.7
men
0.6
0.5
fraction of the workforce
0.4
women
0.3
Women - accounting for
part-time participation in the workforce
0.2
But! A consistent fraction of women work
part-time.
So! To give the supply chain hypothesis a better
chance I will use these lower values for womens
participation in the workforce!
0.1
0
1950
1975
1998
2005
Year
10
Some Background 2 Historical Trend Fraction
with College Degree
Fraction of US Population Graduating from College
0.4
0.35
0.3
0.25
fraction
0.2
0.15
0.1
0.05
0
1930
1940
1950
1960
1970
1980
1990
2000
Year of Graduation
11
0.5
Fraction of Each Work Category Who are Female
0.45
What we would expect to find if movement through
the workforce is the same for men and women and
differences are due solely to differences in
numbers available for promotion.
0.4
fraction of workforce
all basic careers
0.35
early careers
0.3
Dmnl
0.25
Expected fraction of senior management positions
held by women
Actual
0.2
established career path
0.15
senior workforce
leaders
0.1
1940
1950
1960
1970
1980
1990
2000
2010
Time (Year)
12
(No Transcript)
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An Adjustment

• Suppose we assume that the number of women
  becoming homemakers tags all women in basic
  careers as less suitable for promotion.
• That is Movement out of both basic careers is
  limited by the perception that women are
  homemakers.

14
Women are tagged as homemakers and tend to get
stuck in basic careers
Original Promotions Not Biased
15
An Additional Adjustment

• Lets also assume that the fraction of women
  becoming homemakers tags all women at ALL
  career levels as less suitable for promotion.
• That is Movement upward from ANY career category
  is limited by the perception that women are
  homemakers.
• Based on the fraction that actually become
  homemakers.

16
Women are tagged as homemakers at the basic
career level
17
Women are tagged as homemakers at ALL career
levels
fraction of workforce
all basic careers
early careers
established career path
senior workforce
leaders
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Conclusions Comments

• Supply chain delays alone cannot account for the
  relatively low numbers of women in senior
  workforce positions in the US.
• One alternate idea, that womens movement
  throughout the employment chain is limited
  because they are tagged as homemakers, could
  explain the low numbers.
• But several other explanations could also explain
  the bias.

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Comments (continued)

• Also, if there are sufficient numbers of women in
  the supply chain, then such things as special
  programs for women at universities are probably
  less important than are.
• Improvements in equity during promotion along the
  chain of workforce categories.

20
Questions ?
Comments ?
Contact richard.dudley_at_attglobal.net