XXX FIRM Business Case Communication Retaining & Developing Women Leaders Improving Gender Diversity

American Institute of CPAs ® Current State of Affairs – 2010 Women in Corporate America and Public Accounting Women comprise more than 50 % of the US Labor Force Women hold 32% of first level manager roles in industry, 50% in public accounting Women hold 35% of mid management positions in industry, 35% in public accounting Women hold 12% of CEO/senior executive Roles Women hold 19% of the total partner positions in CPA firms

American Institute of CPAs ® Percentage of Women by Level at CPA Firms - AICPA Data

American Institute of CPAs ® Business Drivers - Profession Accounting graduates have been at least 50% female for 25 years Baby boomer outflow Changes also reflected in our marketplace Talent acquisition/retention and succession planning are the top two concerns of firms all sizes Competitors for talent may be ahead of us in the race

American Institute of CPAs ® Business Drivers - XXX Firm Quantitative Link to firm strategy Changes also reflected in our marketplace Competitors for talent may be ahead of us in the race Talent acquisition, succession planning concerns

American Institute of CPAs ® Business Drivers - XXX Firm Quantitative Retention statistics Advancement statistics Cost of turnover

American Institute of CPAs ® Percentage of Women by Level - XXX Firm

American Institute of CPAs ® Cost of Turnover Standard industry measures 1.5x annual salary Includes loss of productivity, hiring cost, training cost Conservative four years totals $x Million

American Institute of CPAs ® Business Drivers - XXX Firm Link to Firm Strategy Risk to growth strategies -Growth target xx% unachievable without advancement of women -XXX Niche will not progress without movement forward of female leaders -Geographic expansion, acquisition goals can be impacted by lack of leaders and/or lack of gender diversity in leadership Talent attraction and development -Candidates are looking for progressive firms -Female candidates will be significant percentage of total and will look for firms where women are succeeding Profitability -Turnover of key experienced staff impacts efficiency, effectiveness of engagements -Loss of female staff with specific technical skills to support niche area growth -Lack of progression of female staff can impact growth geographically or niche areas Innovation -Lack of diversity of thought in approaching new markets, ie; female owned businesses -Lack of diversity of thought in new products or solutions to take to market

American Institute of CPAs ® Business Drivers - XXX Firm Changes also reflected in our marketplace Client decision makers, owners Demographics of essential networks New networks

American Institute of CPAs ® Business Drivers - XXX Firm Succession planning concerns Competitors for talent may be ahead of us in the race Talent attraction and retention Talent development and advancement Exit strategies

American Institute of CPAs ® Business Case Conclusions Sustainable growth models Sustainable succession planning models Viable exit strategies Bottom line impact of talent shortages Increased need for diverse talent that:

American Institute of CPAs ® What are the Barriers to the Advancement of Female Leaders?

American Institute of CPAs ® The Barriers to Retention and Development of Female Leaders: Career Sponsorship & Navigation Access to Female Role Models Work/Life Integration

American Institute of CPAs ® Career Sponsorship & Navigation Unequal access to career development and advocacy experiences Stereotyping, unconscious bias Traveling without a road map Self Selection (Opting Out)

American Institute of CPAs ® Limited Access to Female Role Models Stunts the growth of aspirations Maintains stereotyping Lack of diversity in role models Lack of access limits ripple effect of successes

American Institute of CPAs ® Career/Life Integration Rigid career models Lack of customization Demands of the profession Societal norms (systemic unconscious bias)

American Institute of CPAs ® XXX Initiative Next Steps Initiative structure Communication plan Firm leadership awareness and education Sponsor program Determine opportunities to improve flexibility culture and career customization programs Networks and skill building for women leaders

American Institute of CPAs ® Initiative Structure Clear leadership involvement Accountability Governance mechanism necessary Execution ownership by business HR key player Communication function-active and consistent Metrics

American Institute of CPAs ® Initiative Structure-Sample Managing Partner FW Management/Exec Committee Steering Committee 1 – Line Partner Representatives 2 – HR Representative 3 – Managing Partner 4 – Marketing/Communication Advocates Network

American Institute of CPAs ® Initiative Structure - Roles Steering Committee Facilitate vision, strategy setting Monitor execution of strategy, results & ROI Communicate with firm leadership Line of Business Reps Strategy execution Ongoing tie of initiative strategy to business strategy Sponsors Use of political capital Increase access to stretch appropriate opportunities Proactive management of barriers Network ( Strategic Roll Out-Aligned with Business Case

American Institute of CPAs ® Communication Plan Targeted audiences for communication Targeted messages to specific audiences Communication of business case Structure Strategies and action plans Early successes Results

American Institute of CPAs ® Firm Leadership Awareness Awareness, buy-in, and commitment of Firm leaders is essential and foundational for success Comprehensive understanding of the business case and the link to Firm strategy is the foundation of the necessary awareness raising effort Essential educational efforts regarding unintended bias and unintended consequences

American Institute of CPAs ® Career Sponsorship Targeted focus on a specific group of leaders Sponsors assigned Ensure key success factors are in place Access to strategic opportunities and stretch assignments Assignments align with targeted career goals Opportunity for interaction with female role models

American Institute of CPAs ® Targeted Coaching and Career Sponsors High influence - high impact career advocate Regular connection points Long term career focus, specific staged goals How short term goals connect to long term focus Customized personal and professional planning Organizational guide - how to increase value proposition? Accountability

American Institute of CPAs ® Targeted Coaching and Sponsorship Career Reflection & Action Planning In depth aspirations reflection Analysis of barriers, real vs. perceived Short and long term focus

American Institute of CPAs ® Flexible Culture Assessment Identify career path inflexibility Supported by policies, norms may camouflage unintended bias Clarification of flexibility philosophy in the organization Two way commitment and two way flexibility regarding issues of unbounded time This is not just about part time work arrangements Impacts men and women but must be improved to improve gender diversity

American Institute of CPAs ® Skill Building and Networking Opportunities Strategic focus on education and awareness gaps, not a social network Awareness raising regarding Firm norms, socialization factors affecting them inside the culture, bias, etc. Exposure to diverse examples of success Forums and other events to gather visible female roles models and examples of success within the organization, profession, and the market

American Institute of CPAs ® Networking & Leadership Development Access to visible female role models Peer learning Visible success stories Understand how to increase value proposition Awareness raising regarding Firm norms, socialization factors affecting them inside the culture, bias, etc. Hope, energy, organizational credibility

American Institute of CPAs ® Organizations Business case Governance structure Communication strategy Baseline survey Diagnostics & prioritization of strategies to address barriers Individuals Training for women leaders Network for women leaders Only after business case, buy in and diagnostics are complete Career advocacy pilot Action Plan – Phase One Example

American Institute of CPAs ® Organizations Business case communication continued Governance structure evaluated and adjusted as appropriate Continued prioritization of strategies to address barriers Institutionalize education, awareness, accountability strategies Survey II & comparison to baseline survey Individuals Ongoing training for women leaders Network for women leaders expanded and taken from pilot phase Career sponsor program designed from pilot learning Action Plan – Phase Two Example

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