The Glass Cliff
This article was originally published on the 21 Feb 2024
If you haven't heard, there's been a slight change at the Woolworths Group announced this morning. A swap in CEO, well not until September, but I'm not going to talk about how Woolies ended up being investigates by the ACCC, instead I want to talk about where this might go for their new CEO.
Glass Ceiling
While breaking the glass ceiling is about overcoming barriers to reach leadership positions, the glass cliff is potentially what happens next. It's a situation where women or minority leaders are more likely to be put in charge during tough times for a company. This means they're facing more risks and a higher chance of failure, not because of their skills, but because of the timing of their appointment.
Why Timing Matters
I might already have you offside and you might be thinking, 'Come on Ash, correlation isn't causation' and you would be right, it's not, however I can't shake the thought that this might be a valid hypothesis. See timing is the critical thing for the glass cliff. The idea is that these leaders are given the reins when the company is already in trouble or at the very least, under some type of pressure.
It's like being handed the wheel of a ship that's already facing a storm. This isn't just about putting leaders in a tough spot; it's about the unfair expectation that they can fix deep-rooted problems almost overnight. And if things don't turn around, guess who's likely to be blamed?
What it Looks Like
Carol Bartz became CEO of Yahoo in 2009, a time when the company was struggling against competitors like Google and Facebook. Bartz faced immense challenges in trying to turn the company around. Despite efforts to streamline operations and improve profitability, she was ultimately dismissed in 2011. Her tenure is often cited as a classic example of the glass cliff, where she was brought in during a crisis, making her position inherently more precarious.
Julia Gillard became Australia's first female Prime Minister in 2010, amid political turmoil within her party and a divided public opinion. Her leadership was constantly challenged by internal party dynamics and external pressures, leading to her ouster in 2013.
Jill Abramson became the first female executive editor of The New York Times in 2011, during a period of digital transformation and economic challenges in journalism. Her tenure was marked by efforts to navigate the paper through these changes, ending with her abrupt dismissal in 2014.
The Bigger Picture
This isn't just happening in business. From politics to sports, we see similar patterns where women and minorities step into leadership roles during crises. It's a reminder that while it's great to see diverse faces in high places, and a steady hand when things are uncertain, we also need to make sure they're set up for success and not predestined failure.
Backing Away from the Edge
Acknowledging the pattern and paying attention means we can start to do something about it. It's about supporting all leaders no matter when they step in and understanding the unique challenges they may have to face in all facets of their role.
The example at hand in the case of Woolies is Amanda Bardwell, an extremely well tenured Woolworths exec, described as "A proven leader, business builder and modern retailer,” by Woolworths Group chair Scott Perkins.
“Most recently, under her leadership, WooliesX has gone from infancy in 2015 to a $7 billion market leading business."
By all accounts he's right. Bardwell has achieved incredible things for the household brand and I imagine that there is a unanimous feeling of security and safety for the group.
However, let's not ignore the looming challenges that will shape Bardwell's path and the intense scrutiny she will now be under. Though, former CEO Brad Banducci has confirmed that he will appear in front of the senate enquiry being held next month, there are still many challenges to come for Bardwell.
Beyond Bridges
This is a notable appointment for Woolworths, Bradwell is the first female to lead the group as CEO, and in some ways, this choice is of no surprise. Despite the price gouging heat, Woolies doesn't shy away from public debates, Australia Day Merch (or lack thereof in store) and a redesigned uniform line that isn't fussy about who wears what.
I'm still a little on the fence with Woolies, but one thing is for certain, they have a real opportunity to ensure their first female CEO isn't another casualty of the glass cliff.
