Glass Cliff

The “glass cliff” is a relatively recent term in the lexicon of gender studies and corporate governance, introduced in 2005 by British professors Michelle Ryan and Alex Haslam of the University of Exeter. It describes a phenomenon where women (and other minority groups) are more likely to be promoted to leadership roles during times of crisis or downturn, when the chance of failure is highest. This places them “on the edge of a cliff,” where their position is more precarious compared to their male counterparts who might have been appointed under more stable conditions. To understand the complexities of the glass cliff, it is essential to delve into its definition, the research surrounding it, examples, and the comparisons to the more well-known “glass ceiling.”

Definition

The term “glass cliff” extends the metaphor of the “glass ceiling,” which refers to the invisible barriers that prevent women and minorities from rising to upper management positions. The glass cliff, however, suggests that even when these barriers are overcome, the individuals often find themselves in a treacherous position where the likelihood of failure is higher. This can be due to a variety of reasons, including the poor performance of the company or department at the time of their appointment or the inherent challenges of the position that were not present previously.

Research

Ryan and Haslam’s initial research that led to the coining of the term “glass cliff” was published in the British Journal of Management. In their study, they analyzed the performance of companies listed in the Financial Times Stock Exchange 100 Index (FTSE 100) before and after the appointments of male and female board members. They discovered that companies that had appointed women to their boards were more likely to have experienced a downturn in performance in the preceding five months. This suggested that women were more likely to be appointed to leadership roles in struggling companies.

Subsequent studies have corroborated these findings across different sectors and countries. Research has shown that women are more likely than men to be promoted to CEO roles in times of crisis. For example, a study by the Pew Research Center found that women and minorities were often appointed to lead failing companies, arguably as a last-ditch effort to turn things around.

Examples

The phenomenon is not just theoretical; several high-profile cases illustrate the glass cliff concept.

1. Mary Barra and General Motors (GM): Mary Barra was named CEO of GM in 2014, making her the first female CEO of a major global automaker. Her appointment came at a time when GM was dealing with a massive recall crisis due to faulty ignition switches linked to several deaths. Barra had to navigate the company through intense scrutiny and legal challenges, exemplifying the precarious nature of her leadership position. Further details about her role can be found on GM’s official website.

2. Marissa Mayer and Yahoo: In 2012, Marissa Mayer took over as CEO of Yahoo at a time when the company was struggling to compete with tech giants like Google and Facebook. Despite her subsequent efforts to turn the company around, Yahoo continued to face significant challenges, leading to its eventual sale to Verizon in 2016. Mayer’s tenure is often cited as an example of the glass cliff. More information can be found on Yahoo’s press releases.

3. Theresa May and Brexit: In politics, the glass cliff can also be observed. Theresa May became the UK Prime Minister following David Cameron’s resignation after the Brexit referendum. She inherited a deeply divided country and faced the monumental task of negotiating the UK’s exit from the EU. Her time in office was marked by intense political and public scrutiny, highlighting the precarious nature of leadership roles assumed during times of crisis.

Comparing Glass Cliff with Glass Ceiling

While both the glass ceiling and the glass cliff pertain to the gender disparities in the workplace, they describe different stages of the career journey and distinct phenomena:

• Glass Ceiling: This term refers to the invisible barriers that prevent women and minorities from ascending to top leadership roles, regardless of their qualifications or achievements. Despite decades of progress and increasing gender diversity initiatives, the glass ceiling persists, with women underrepresented in senior executive roles globally.

• Glass Cliff: On the other hand, the glass cliff refers to the precarious positions that women and minorities are often placed in once they break through the glass ceiling. Rather than being appointed to lead thriving and stable organizations, they are likely to be placed in roles where the risk of failure is higher due to external challenges such as financial instability, organizational turmoil, or market downturns.

Psychological Perspectives

Psychologists have explored several theories to explain why the glass cliff phenomenon occurs:

1. Stereotype-driven Decision Making: One theory posits that during times of crisis, organizations might seek women leaders because of gender stereotypes. Women are often perceived as being more empathetic, nurturing, and capable of managing through collaborative approaches. These stereotypical traits may be deemed necessary to navigate through crises, leading hiring committees to favor female candidates.

2. Scapegoating: Another perspective suggests that appointing women to precarious leadership roles might act as a form of scapegoating. If these leaders fail, the blame can be shifted onto them, and organizations can claim to have made efforts to be diverse and inclusive, thus shielding the predominantly male board members from criticism.

3. Glass Cliff as a Challenge: Some women accept these precarious roles as a challenge, believing they can turn things around and prove their capabilities. However, the high probability of failure makes their tenure short-lived, perpetuating the cycle.

Organizational Impacts

The glass cliff has profound implications for organizational dynamics and the career trajectories of women in leadership:

1. Short Tenures and High Turnover: Due to the challenges associated with glass cliff roles, women leaders may have shorter tenures compared to their male counterparts. This turnover can reinforce negative stereotypes about women’s leadership abilities.

2. Reputation Management: Failure in a high-profile leadership role can impact a woman’s career long after she leaves the position. It can be challenging to secure other leadership opportunities if they are perceived as having failed in their previous role, despite the external crises being beyond their control.

3. Diversity Fatigue: On the organizational side, frequent turnover in leadership due to the glass cliff phenomenon can lead to “diversity fatigue” where organizations become skeptical of the benefits of diversity initiatives, undermining long-term progress towards gender equality.

Conclusion

The glass cliff is a nuanced and complex phenomenon that has significant implications for gender equality in corporate leadership. Understanding this concept is crucial for policymakers, organizations, and advocates working towards genuine and sustained diversity and inclusion in the workplace. Addressing the glass cliff involves not only recognizing the precarious nature of these leadership roles but also ensuring that women and minorities are given equitable opportunities and support to succeed in their positions, regardless of the broader organizational or economic context.