Decentralized Companies Offer More Chances for Women to Grow

The structure of a company plays a pivotal role in shaping the career trajectories of its employees, particularly women striving for executive positions. Recent research indicates that women are more likely to advance to the C-suite in decentralized companies, which are characterized by multiple independent units or subsidiaries. These organizations typically offer clearer performance metrics and measurable growth targets, reducing the opportunity for bias and emphasizing quantifiable achievements. In contrast, centralized companies often rely on subjective evaluations and social networks, which can disadvantage women. This UCLA Anderson Review article highlights why decentralized companies help a woman’s career trajectory more. 

According to the article, the structure of a company significantly influences the advancement of women into executive roles. Research by UCLA and Washington University highlights that women in decentralized companies—those with multiple stand-alone units—are more likely to ascend to C-suite positions compared to those in centralized organizations. The article suggests that decentralized firms offer clearer performance metrics and less subjective evaluations, which helps mitigate gender bias. In contrast, centralized companies often rely on networks and subjective assessments, which can disadvantage women. The study found that women managers in multi-unit firms are 83% more likely to become CEOs than their counterparts in centralized companies. Therefore, the article underscores that corporate design plays a crucial role in shaping opportunities for women’s career advancement, with decentralized structures providing a more equitable environment for reaching top executive positions.

As such, understanding the impact of corporate design on gender diversity is crucial for organizations aiming to enhance their leadership pipelines and promote greater inclusivity at the highest levels. Read through the preceding text to get to know why decentralized companies help a woman’s career trajectory more.