The PBSA sector serves the people who represent the future of society. That future is becoming increasingly diverse. Leadership and executives in our companies should reflect that diversity. When you look across your senior and executive leadership teams do you see people who look like you? If you are a white male, the answer is probably yes. But for many women and underrepresented groups, the answer is not always. Stephanie Bensimon, Head of Ardian Real Estate, recently wrote, “In the real estate sector, profile diversity is particularly important: for example, how can single sex teams design housing adapted to the expectations of all types of users? Teams considering offices or homes must represent society as a whole to best assess the needs and challenges of each and everyone.”    

Many organisations have made concerted efforts to increase diversity, equity, and inclusion in recent years. Legislation, social pressure, and recognising the business benefits also push organisations to increase gender equity and equality. However, there is still much work to do in real estate and beyond. In a 2021 survey of commercial real estate companies, respondents reported that only 16% of executives are women in Europe. This is slightly below the average for publicly listed European companies which report an average of 20% of executives’ positions are held by women. When you look deeper down the organisational chart, things improve slightly. According to a 2021 Eurostat report, only 1 in 3 managers are women in European companies.  There is little information for the PBSA sector but looking across the business and real estate industries women continue to be underrepresented at the top of organisations.  

Multitudes of studies show the positive impact that diverse leadership teams have on organisational performance. A 2017 McKinsey study found companies whose executive teams have strong gender diversity were 21% more likely to financially outperform their peers. This same study showed a lack of diversity strongly correlated with financial underperformance compared to their peers. Boston Consulting Group (BCG) found similar results in a 2018 study. This study examined the link between diverse teams, innovation, and profitability. The study found diverse leadership teams led to better financial performance and increased innovation. The report noted that “people with different backgrounds and experiences often see the same problem in different ways and come up with different solutions, increasing the odds that one of those solutions will be a hit.” Diversity among executives and leadership teams is about more than just ticking a demographic box. Diversity contributes to increased profit, innovation, and overall performance.   

Bias and stereotypes make leadership roles harder to attain for women. But those women who do hold leadership positions have been found to outrank their male counterparts in many areas. In a study from the Harvard Business Review, women outscore men in almost 17 of 19 leadership competency areas. This study compared 360-degree reviews of male and female managers. The article concludes, “women make highly competent leaders, according to those who work most closely with them — and what’s holding them back is not lack of capability but a dearth of opportunity” (Zenger, 2019). Organisations have an obligation to their stakeholders and their business to ensure gender diversity, equity, and inclusion when looking at leadership positions.  

Big change starts with small steps. Organisations can start by being curious about their current position and committing to positive change. Organisations and executive teams should look at who is sitting at which table. Is there just one representative from a certain demographic or a critical mass of diver talents? What are the seniority, authority, and influential roles women and other underrepresented populations have in your organisation? In your leadership pipeline, do you see a diverse pool with each person given an opportunity to advance their leadership development and opportunities? When you start with these questions, you can begin to engage and create a plan on how to diversify your executive and leadership ranks.