Exploring the Effectiveness of Board Gender Quotas: A Change Management Approach

The imposed gender quota intervention on board compositions aimed to counter the deeply rooted in the society underlying gender discourse, is debated by both, the business utility case and the social justice concerns. Results related to quota effectiveness have been inconsistent at best in the literature. By connecting the common underlying denominator of both problem-oriented perspectives, we argue that the effectiveness of the quota policy will invariably depend upon the capacity of the change management to effectively recruit, appoint and integrate women as well as make good use of its new potential, without which the inherent benefits of board diversity are lost. To study such we use an in-depth case study situated in the financial industry, following the ECB announcement of mandatory board gender quotas. We find that the top down and rapid change and implementation is too quick and too painful. Women hold less important positions inside the board and are prone to a gendered discussion in terms of skills that is weakening their position, with implications on board cohesion. The board is thereby functioning as an agglomerate of individuals. However women are bringing resistance to a negotiation process of power struggle, the future outcomes of which are unknown. Ultimately, the data underscores the need for deeper organizational change management approaches to address ingrained inequalities and maximise women’s contributions in the board. We discuss implications for theory and practice.