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The comparison was first made in , as an outcome of a massive study of the glass ceiling. For that study, an average of Fortune firms supplied data about their executives for every year since ; that meant we were able to access some 15, pieces of data about women on the top management teams of Fortune companies over a year period. We then identified the firms that were most aggressive in promoting women to high levels and compared their profit performance to the median performance of Fortune firms in the same industries.

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Separate comparisons were made of profits as a percentage of sales, of revenues and of assets. The results were rather astonishing. For , the 25 best firms for women outperformed the industry medians, with overall profits 34 percent higher when calculated for revenue, 18 percent higher in terms of assets and 69 percent higher in regard to equity.

Furthermore, the 10 firms with the very best records of promoting women showed greater profit results than the firms that were merely very good.

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These results were reported in the Harvard Business Review , presented in a keynote address for the European Project on Equal Pay and later incorporated into the labor law in the European Union. The results were confirmed in subsequent studies in , , and In every one of those years, the companies identified as being the best at promoting women outperformed the industry median on all three profitability measures.

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During these years, the set of women-friendly companies remained largely the same. Critics began to wonder whether the consistent results could be attributed to using the same criteria for selecting women-friendly companies year after year. In an effort to address this concern, we changed the selection criteria for This list seemed reasonable because it focused on women with master of business administration degrees, meaning they could be presumed to be on an executive fast track.

A total of 56 Fortune firms remained, and we proceeded to make comparisons for each, using data from the Fortune list for The results were very much the same as in previous studies. The firms that were identified as being ideal for women MBAs outperformed the industry medians on every measure.

For profits as a percent of revenue, the results showed 55 percent of the companies were higher than the median, 36 percent were lower and 11 percent were tied. For profits as a percent of assets, the results showed 50 percent were higher than the median, 28 percent were lower and 23 percent were tied. For profits as a percent of equity, the results showed 59 percent were higher than the median, 30 percent were lower and 11 percent were tied.

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As with any study showing a correlation, it is dangerous to assume a causal relationship. And with just 56 subject firms for , the study was not very large. On the other hand, when three measures per year for six different years all show the same positive results for firms with a solid track record of promoting women, something other than coincidence seems to be in play.


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