A board of directors plays a crucial role in determining the success of any organization and is largely responsible for major strategic decisions. However, females in these top management roles are often underrepresented. Without women on boards, companies are losing out—not only on talented leaders, but also on different perspectives of business. This raises the question: in what ways do companies with women on the board perform differently than companies with all-male boards?
Prior research suggests there are gender differences in risk-taking decisions, with many researchers supporting that women are more sensitive to risk than men. However, Ofra Bazel-Shoham, research assistant professor in the Department of Finance at the Fox School, reconsiders the implications of this conclusion.
Bazel-Shoham argues that female leaders change the way business is being done in her paper, “The Effect of Board Gender Diversity on R&D.” She looked at boards’ decisions regarding high-risk, high-reward investment decisions, as well as their professional behavior, to understand the differences in outcomes that gender-diverse boards produce. The research recently won the Best Paper Award at the 2018 Engaged Management Scholarship Conference, hosted by Temple University this September. The award was sponsored by Business Horizons, an academic journal from Indiana University.
As a proxy for analyzing risk-taking decisions, Bazel-Shoham used choices around research and development (R&D), often a potentially risky yet highly rewarding investment. “It requires upfront resources and has a very low probability of success,” she says.
Bazel-Shoham, who is also the academic director of Fox School’s new part-time MBA Program in Conshohocken, collected data from CEOs and board members in 44 countries and over a period of 16 years. The gender disparity was already obvious, as she notes in her sample only 2% of all CEOs and 9% of all board members were female.
The study found that while the direct correlation between the number of women on boards and the number of investments in R&D was negative, women were more likely to focus on monitoring performance, which ends up incentivizing risky but data-driven decisions. Bazel-Shoham says, “As female leaders put more emphasis on monitoring, gender-diverse boards were able to quantify and measure their decisions better than all-male boards.”
Bazel-Shoham elucidates this argument by analyzing the behavior of female directors who are most often outnumbered by their male counterparts. Her interviews with female leaders suggest that being in a minority puts more pressure on women to not make mistakes and make data-driven decisions.
She elaborates, “We realized that female directors felt they were ‘under a magnifying glass’ most of the time and were judged more stringently than their male colleagues.” This made them make more conservative decisions, which usually translated into making lesser high-risk R&D investments. However, teams that quantified their results better supported performance-based compensation where incentives are measurable and dependent on the actual outcome rather than on vaguely defined promises.
Organizations often use performance-based incentives to motivate managers to make riskier but potentially profitable long-term investing decisions. Bazel-Shoham says, “We observed that such remuneration systems encourage CEOs and senior management to engage in more R&D activities.” With women involved, boards more often supported this form of compensation, in affect encouraging managers to make more of these investments. Bazel-Shoham found that these actions successfully mitigated women’s effect of being more risk-averse.
Besides indirectly increasing R&D spending, Bazel-Shoham notes having even one woman on the board of directors significantly influences how the board behaves, the decisions it makes and their resulting outcomes. To illustrate this, she quotes an experience of a male CEO of a large educational organization. “The women directors read all the materials ahead of time, have specific questions and are more professional than the others,” he says. “They have changed the organizational culture of the board. The men, in turn, have started to prepare themselves better as well.”
Underrepresentation of women on boards of directors continues to be a pressing issue to shareholders and society at large. However, organizations are slowly understanding the strategic importance of leveraging a more diverse top management team. With rapidly changing market dynamics, leveraging the power of gender diversity is beneficial for the long-term success of businesses.
Steve Casper spent the spring of 2018 teaching his students about stocks, bonds, time value of money, cash flow and cost of capital. This does not sound unusual for a finance professor, except that particular semester he was on sabbatical in Cambodia.
Most of his students, who came from rural farms on the outskirts of Phnom Penh, Cambodia’s capital, had a limited academic background in finance. Many did not have a personal relationship with traditional financial institutions that Americans accept as commonplace, like banks and stock markets. Casper, associate professor of finance and managing director of the DBA program at the Fox School of Business, says, “It was the most challenging class I’ve ever taught, but it was so much fun.”
Since the summer of 2016, Casper had been volunteering his time teaching rural students in Cambodia. After first getting involved via Habitat for Humanity, Casper has built a relationship with these students, teaching finance and leadership during two-week seminars. Last spring, the director of the Paññāsāstra University of Cambodia, the leading English-speaking university in the country, asked Casper to teach a full semester.
“Most of these students have never had a calculator before,” says Casper, FOX PhD ’10. “I was told I had 30 students. I get over there and I brought 30 TI-BA II+ financial calculators. My wife was coming two weeks later and I said, ‘Liz, I have 54 students. I need you to bring another 24 calculators, I just ordered them on Amazon.’ Eventually, it got up to 94 students.”
This past October, four of these students came to Philadelphia for a week of leadership and business practice. The trip was organized by the Cambodian Rural Student Trust, an NGO founded in 2011 that aims to help bright Khmer, or Cambodian, students from poor, rural families go to high school and university in Cambodia.
Casper brought the students to meet with representatives from all over the financial world, from companies like SAP, B-Lab and Saul Ewing. He invited the students to speak to his finance classes at the Fox School. The Khmer students shared the story of their lives, which often included uneducated family members, the loss of one or both parents and financial hardships. But each had a strong, unrelenting belief in the power of education to transform lives.
One student named Sompeas, who is majoring in law and hopes one day to become a lawyer, shares her philosophy. “I believe men and women are equal. I believe education will provide women with the knowledge to believe this and give them the skills to follow their dreams, have amazing careers and be greater contributors to society.” She continues, “The special thing about this trip is that I can share my voice and bring back many ideas that will inspire other girls to be adventurous and ambitious, while also expanding how I see things in my small world.”
Casper is grateful to the Fox School for allowing him to expand his world as well through his sabbatical. Casper loves the opportunity to teach both his American and Khmer students. “I always wanted to do this,” he says. “To have great classes, you have to be thinking about it all the time—how can I make it better, how can I get this point across?”
His passion for education translates into his enthusiasm about the mission of the Cambodia Rural Students Trust. The completely student-run organization, Casper says, “can give a student a place to live, feed them, and pay for their college or high school,” all for $2,000 a year.
“In Cambodia, education is a privilege,” says Casper. “I am honored to be part of something that empowers students to lead themselves and lead society.”
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The Stone family is celebrating two new doctors.
Thomas W. Stone and Thomas J. Stone, father and son, both complete their doctoral programs this month, successfully defending their dissertations for Temple University’s Fox School and the College of Liberal Arts, respectively.
For many, completing a doctoral degree is a long, solitary process of researching and writing. For the Stones, while their research topics and processes were distinct, they experienced this journey together.
The elder Stone, graduating as part of the Fox School’s Executive Doctorate in Business Administration (DBA) 2018 cohort, completed his dissertation on the productivity of lean software development. Working alongside his cohort and with managers at his former company (previously Siemens Healthcare, now Cerner), Stone enjoyed his interacting with other business professionals in pursuit of his degree. “I began writing on this topic when I started in the DBA program three years ago and spent years developing it while working at Siemens,” says Stone. “The Fox School does a great job of building up to the dissertation.” He praises his advisor, Sudipta Basu, and his cohort classmates for their encouragement throughout the experience.
The younger Stone completed his doctoral degree in the College of Liberal Arts’ Department of Spanish and Portuguese. He studied how Latin American authors address historical events in their narratives and critique the “great man” theory, which treats the biography of notable men as the basis of history , under the guidance of his long-time advisor, Dr. Hortensia Morell. “These writers understand characters as part of both fiction and historical writing,” he says. The works are narratives about four Latin American individuals: Aztec emperor Montezuma, political leader Simón Bolívar, explorer Christopher Columbus, and revolutionary Che Guevara.
The pair empathized with each other’s experiences, understanding the challenges they faced and celebrating the completion of milestones. While they embarked on their own research journeys—father running field experiments and collecting and analyzing data, and son diving into literature with support from his advisor—the two shared a support system. “We both struggled to get through this,” says the father, “but we made it to the finish line together.”
The father’s pride is evident. He applauds the younger Stone’s success, praising his diligent work ethic in completing this accomplishment on his own terms. Both father and son will graduate together May 10 at Temple University’s 131st Commencement.
The elder Stone felt lucky to have his son go through this process with him. “He reminded me to order my cap and gown,” Stone laughs.
Learn more about the Fox School’s Executive Doctorate in Business Administration program.
For many students, the first semester of a new degree program is challenging. For Ivan Cardona, it was nearly impossible.
Cardona, a Puerto Rican native, came to the Fox School for his first residency of the Executive Doctorate in Business Administration (DBA) program on September 15—about one week after Hurricane Irma rocked the island territory.
Immediately after the weekend residency, he faced down Hurricane Maria, which directly hit the island with 175 mph winds and more than three feet of rain. Cardona barely arrived home in time to take shelter with his two young daughters.
“My home rumbled and shattered for over 24 hours,” Cardona remembered. At 5 a.m., he watched as water began creeping into his home. After the storm, with his family safe, his house compromised and his business flattened, Cardona reflected on his situation. “Puerto Rico was simply gone, and whoever took it away left a broken, wrecked, and shattered skeleton of an island.”
Nearly the entire island lost electricity and almost half lacked access to clean drinking water. As Cardona was left to rebuild his community, his dreams of a doctorate degree could not have felt further from his grasp.
“Weeks went by before I got to communicate with Temple.” Without internet, Cardona traveled to the nearby medical center for his evening WebEx classes, “hiding from the mandatory curfew on the island,” he conceded.
Yet despite these seemingly insurmountable odds, Cardona persevered.
In mid-October, he traveled back to Philadelphia to, in his words, graciously bow out of the program. Instead, Cardona received overwhelming support from colleagues and professors. “I felt a real sense of empathy, commitment and concern that I never expected,” he said of his experience. With new books to replace his waterlogged ones, Cardona finished his second residency with a renewed spirit.
Now, four months after Hurricane Maria hit, nearly one-third of Puerto Rican residents are still living without power. Although Cardona’s struggles are far from over—long lines at the ATM, grocery stores, and gas stations constantly overwhelm him—he has led efforts to clean up and rebuild his community. In November, he organized a Thanksgiving dinner for over 2,000 people, and in December, he coordinated a toy drive that benefited nearly 3,000 children.
As he starts the second semester of his three-year executive doctoral program, Cardona reflected on the challenges of last few months. Thanks to the support from his colleagues, he was able to keep up with his studies while helping the island recover. “I realize we were more than just a cohort,” he said. “I’m part of the Temple family and we take care of one another. It is something that truly makes me Temple proud.”
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Sandi Webster has always strived for self-improvement. That’s why she’s pursuing her Executive Doctorate in Business Administration at Temple University’s Fox School of Business.
In October, the Initiative for a Competitive Inner City (ICIC) and Fortune selected Webster’s company, Consultants 2 Go, to join the 2015 Inner City 100, a program that honors the nation’s fastest-growing inner-city businesses.
Based in Newark, N.J., Consultants 2 Go provides consulting and marketing services in the telecom, pharmaceutical, financial services, and insurance industries. Webster, who is pursuing her Executive Doctorate of Business Administration at Fox, founded the company in 2002 with a former colleague, Peggy McHale.
“Peggy and I are very fortunate that our company has excelled in the way that it has,” Webster said. “We’ve rapidly grown our consulting firm beyond our wildest imaginations and it’s an honor that we were recognized in this way by ICIC and Fortune.”
The Inner City 100 program “recognizes successful inner-city businesses and their CEOs as role models for entrepreneurship, innovative business practices, and job creation in America’s urban communities,” according to ICIC.
The list of companies was unveiled Oct. 7 at the Inner City 100 Conference and Awards in Boston. Winners gathered for a full-day business symposium featuring management case studies from Harvard Business School professors and interactive sessions with top CEOs. Keynote speakers included Governor Charlie Baker, and Harvard Business School Professor and ICIC Founder and Chairman Michael E. Porter.
Webster’s professional trajectory changed due, in part, to missing the bus.
Then an executive with American Express, Webster didn’t arrive to work on Sept. 11, 2001. Early-morning crowdedness on the day of New York City’s mayoral primary election kept her from catching her usual morning bus and, as a result, she never made it to her company’s building, located less than two city blocks from the World Trade Center.
“I had been with the company for 18 years and, after the attacks, I never went back to work for American Express at that building,” Webster said. “We lost so many good employees that day, and it caused the displacement of so many others. It altered the lives of everyone who was in New York City.
“I can’t tell you how many people started their own businesses after the tragedy of 9/11, simply out of need.”
After that day, Webster said she connected with McHale and began to reconsider her line of work.
Webster, whose company generated nearly $10 million in revenue in 2014, is always looking to improve. She, too, was looking to further herself.
“Being in the business world, I aspired for a higher-level degree,” she said. “I have a unique perspective, having worked in corporate America and now in representing clients in the small-business side. I can see where gaps are and help them work more efficiently.
“That’s why I chose the Fox School. I found the Executive DBA faculty to be knowledgeable. The proximity to our offices in Newark, N.J., was important, as well.”
Webster said working mothers comprise 80 percent of Consultants 2 Go’s employees. Her vision for her company, she said, is to offer flexible hours and locations for her workers.
“Corporations tend to let go of senior executives, some of whom are women, and that’s intellectual capital walking right out the door,” Webster said. “Conversely, there’s no one around to train young executives. That’s where I believe Consultants 2 Go can fill a void.
“Within the Executive DBA program, I hope to earn greater knowledge and complete research so I can more-closely work with companies to help them realize a better use for their intellectual capital.”
Diana Kyser’s management style involves intricately fitting together a company’s puzzle pieces. Sometimes, a few pieces are missing. In most cases, the pieces are there and simply need to be arranged.
It’s a skill Kyser said she has always possessed.
“In our Navigating the Global Marketplace class, Professor (Ram) Mudambi talks about orchestrators – the kinds of people who can take a product that’s already in place and improve upon it,” Kyser said. “Professionally, that’s how I see myself. I’m a builder, a fixer.”
Kyser is a doctoral candidate in the inaugural cohort of the Executive Doctorate of Business Administration program at the Fox School of Business.
She’s also one of the leading businesswomen in New Jersey.
NJBIZ has named Kyser one of its Best 50 Women in Business for 2015. The weekly business journal selects women who reside or maintain employment in New Jersey, and must hold a senior management position within their organization. Honorees are either self-nominated or nominated by others. (Click here for NJBIZ’s 2015 honorees.)
“This is the 10th-annual award for NJBIZ. I’ve been nominated before, but I’d never been selected, so it’s rewarding,” said Kyser, of Summit, N.J.
Kyser’s professional background is rich with leadership experience. She’s the founding partner of COO on Demand, assisting companies in tailoring their execution strategies and formalizing their operations to scale for continued growth. Kyser’s company, which was founded nearly three years ago, offers operational experts to handle bookkeeping, human resources, management communications, business strategizing, and more for companies of all sizes.
“Maybe you’re a small business that needs help with the operations side, so the owner can focus on running the product side,” Kyser said. “Maybe you have a mid-size business that needs help refining its operations or strengthening its overall business plan. Maybe you manage a big business and you need a chief operations officer on an interim basis until you can hire one. These are some of the services we offer.
“Some of these companies could really benefit from high-level, experienced talent but, at the moment, can’t afford it. We think COO on Demand is quite revolutionary.”
Ultimately, Kyser said, she envisions bringing all of COO on Demand’s employees and offerings under one roof in a call-center-like setting, with management services being rendered by phone.
“It all comes back to reducing small-business failure rate, and it’s a goal that can be achieved,” she said.
A lifelong entrepreneur, Kyser in the early 1990s helped found C3i, which blossomed into a worldwide leader in technical support services for life sciences companies. She and two other C3i cofounders sold the $75 million venture funded global technology solutions firm within the last year to Telerx, a division of Merck.
Looking for another challenge, Kyser enrolled in Fox’s Executive DBA program, which launched in Fall 2014. She’s surrounded by others like her, who hold high-level, senior leadership positions as researchers, executives or entrepreneurs. The program, which is offered by only a handful of business schools nationwide, combines research with real-world experience.
“I can’t tell you how amazingly skilled the people in this program are,” Kyser said. “Their wealth of experience and knowledge is unbelievable. I’ve always loved academics and learning, and this program puts the business piece right there with the research and learning pieces.”
Just like in Kyser’s professional career, it’s all about fitting the pieces together.