It is. I know Fiona Dawson well, and she is an inspirational lady. She is a busy lady as well, but she is an inspiration to many who are interested in getting involved in business, because she shows that running a leading manufacturing and retail business is an exciting career. It has taken her to different parts of the world, but she is particularly good at leading in the UK.
That takes me to the pipeline of talent report, which I was pleased to co-author with my hon. Friend the Member for Brentford and Isleworth (Mary Macleod), who cannot contribute to the debate because of her Parliamentary Private Secretary position in support of the Government today. I want to place on the record my thanks to her, to everyone who participated in the evidence-gathering sessions, to the witnesses and to my researcher, Edward Winfield, who is leaving next week to get a job in industry. He certainly pulled together a good report.
Rather than going through all the inputs to the report, I will focus on the executive summary—if any hon. Members do not have a copy of the report, I am happy to circulate it to them. Our starting point was a quotation from my right hon. Friend the Prime Minister. Little more than two years ago, he said:
“If we fail to unlock the potential of women in the labour market, we’re not only failing those individuals, we’re failing our whole economy.”
It is right to get that kind of emphasis. Women can and should be playing a more important role, if they wish, in contributing towards the economy of this country. My hon. Friend the Member for Mid Derbyshire has already referred to the increase in the number of women going on boards and the hon. Member for Slough said, accurately, that we should not focus only on non-executive directors. To get more executive directors, we need to focus on the executive pipeline of talent.
In our report, we came up with a series of recommendations, because, as anyone who works in business knows, if we do not measure something, it will not get done. Our concrete recommendations are not meant only for companies and head-hunters or to inform the views of investors; they are also aimed at women and the Government.
Women should actively seek out mentors and sponsors—they are different roles—and everyone needs a champion on the top board for that to happen. We should not be too shy about asking for help. Interestingly, when some women are offered coaching, they see that as a bit of an insult, reflecting on their performance, as opposed to regarding it as an important tool to improve their performance and attainment. One of the things I have not been investing in as a Member of Parliament, but should have been, is the element of coaching. I can honestly say that it is one of the best tools for any successful person.
Women who have risen to the top of business often focus on one particular discipline—whether human resources, marketing or finance. Certainly some of our expert witnesses recommended taking on responsibility for profit and loss, managing budgets and programmes and being prepared to take on an international role early in a career as important parts of the toolkit. Such things give the wider business experience that can lead to someone who wants to be considered for promotion, or to be poached to go elsewhere, eventually making it to the board. Seeking out stretching assignments is also important; I do not know of any successful woman who stays in her comfort zone. I could use exactly the same words of any successful man. The issue is always about seeking to be extraordinary, to go up the pipeline of talent and up the ladder of promotion.
In our report, we also recognise that people should establish and use networks to increase their spheres of influence. I remember a discussion I had at a Conservative
party conference with my hon. Friend the Member for Hastings and Rye (Amber Rudd), as she is now. I was moving within the company, but I was concerned that my salary would go up only slightly, because of traditional rules, so I was on a considerably lower salary than fellow directors. We chatted about it, and she said bluntly, “You’ve got to ask for it and be prepared to negotiate.” She was absolutely right. I did, and my boss was probably surprised, but he recognised the fairness of the challenge and I got a reasonable pay rise and was level with other directors of similar standing in the company. We should not expect life to be handed to us on a plate; it never is. We need to ensure that we grab the opportunities.
As for the Government’s role, I want to see gender diversity reporting extended to senior management under the corporate governance code for financial reporting. The “Think, Act, Report” initiative is about capturing the data at almost every level to assess what is going on. Personally, I think that it is a bold initiative. Some of the larger companies probably already have the IT systems to add that information to the reported indicators, but even for relatively small companies, going three levels down from the board is probably not a difficult task. Any good company regularly does promotion and talent reviews, so such information should be readily available, if it is not already. The reason for putting it in the corporate reporting is to provide a spotlight on the issue and to ensure that companies are thinking about it. I hope that the Government will take that recommendation up, although I recognise that my hon. Friend the Minister will not be able to make any such commitment today.
Another thing we want businesses to do is to be more formal about establishing mentoring and sponsorship programmes. They happen in many companies, but often tend to be more informal. We also want to see more formalising of career breaks and return-to-work schemes. It was interesting to hear from a head-hunter that although some women who go on maternity leave come back more quickly—we now have flexible shared parenting leave, which is welcome—for most the issue is about keeping current.
“Keeping current” does not mean simply receiving a newsletter; it might mean having back-to-work days or making sure that people on maternity leave are still invited to go on team building exercises. The key is to put more choice into the hands of the women themselves. We also learned that women in the professional services might want to do courses to keep up to speed.
Just today, over lunch, I was discussing this debate with my hon. Friend the Member for Staffordshire Moorlands (Karen Bradley). She told me that she had been an accountant, but through her professional network she learned that the Law Society had a successful method for getting and keeping people in touch. I would recommend that other professional bodies learn from the Law Society. What it does in that regard was news to me and I shall be following the information up.