Glass Cliff

A “glass cliff” is a situation in which a female or minority group member is promoted or elected to a position of power during a period of time when it is especially likely that they will horribly, epically, and publicly fail.

To illustrate the concept of the glass cliff, we’d like to share the story of a lovely lady we’ll call Elle. Elle started out as an intern for a financial services company, Finance & Friends, and managed to advance through the ranks as her skills improved. One day, to the shock of many, Elle became the first female minority CEO in the organization’s history; activists and media personnel cheered this glorious happening, the day that Elle broke through the glass ceiling.

Now that she’s in charge, Elle dives right into her CEO duties, spending hours poring over financial statements, client accounts, SEC reports, and personnel records. A few things quickly become very clear to her: (a) the company is on the brink of financial ruin; (b) some of the company’s clients are such bad dudes and dudettes that Elle fears the company could be indicted for funding terrorist activities; and (c) at least five of the company’s middle managers appeared to be harassment suits waiting to happen.

By all accounts, Finance & Friends is about six months from going under, and that’s when it hits her: Elle has been set up to fail. She was propelled through that glass ceiling…and right onto the edge of a glass cliff. She’s been handed the keys to the Titanic post-iceberg.

Unfortunately, Elle’s story isn’t unique. If it was, it probably wouldn’t have its own glossary term. Social scientists have documented this phenomenon across numerous industries, though the reasons for the promotions and elections—and their results—differ widely.

Find other enlightening terms in Shmoop Finance Genius Bar(f)