Dartmouth Tuck’s School of Business Paul Argenti and others (Jenifer Berman, Ryan Calsbeek, Andrew Whitehouse) recently wrote a piece for HBR (The Secret behind Successful Corporate Transformations) which I found illuminating for several reasons. I know Paul well after working in tandem for many years on corporate reputation and communications and have admired his work.

The team did research to determine what truly drives successful corporate transformations. By looking at financial performance and corporate reputation, the authors examined 128 companies and found that only 22% (or 28/128) were decidedly successful. They concluded that 1) Transformation is harder than expected and 2) The most successful transformations share the following in common: an employee-first mindset, that is DE&I programs and support for women managers’ careers, as well as competitive pay and access to health care.

What struck me was how two specific metrics fit within their overall employee-first finding to drive successful transformations:

• The most successfully transformed companies employ more women in managerial positions

• Women make up a higher share of employees at these companies

Because I was in public relations for over two decades, I often worked with women. Women make up the majority of employees in the communications domain. According to the Bureau of Labor Statistics, women hold around 59% of PR management roles and 63% of PR specialist positions. Men were usually at the top although that has been changing. Many of the meetings I was in before I departed were 85% female. The men stood out. When I was at Weber Shandwick working with a male CEO and female CEO, women were highly respected, their opinions welcomed and collaboration was required. Women had a voice and I agree with the research finding that the presence of women helps drive successful transformations.

The article profiles three companies and their successful transformations:

·      Microsoft shifted from a product focus to a more inclusive, people focus — an aim to “empower every person and organization on the planet to achieve more.”

·      PayPal launched a comprehensive employee financial health program with a measurement approach (NDI), Net Disposable Income. Its approach to invest in and improve employee financial health not only made a difference to the bottom line but contributed to high employee satisfaction, resilience and retention, and better reputation recognition.

·      Hershey took steps to accelerate its DEI strategy with a particular focus on women and people of color. It employed a talent strategy with strong succession planning and professional development. 

With the findings presented, the art of corporate transformation is no longer a secret.