2009.Best.companies.for.Leadership.presentation FINAL

7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL

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2009 Best Companies

for LeadershipThe future of leadership: a spotlight on the bestHay Group Webinar

FEBRUARY 18, 2010 RICK LASH AND CHRIS HUBER


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22010 Hay Group. All rights reserved

Agenda

1 2009 survey findings

Leadership focus is changing

Creating a culture of leadership excellence: lessons from the best

Enabling performance

Conclusions

Questions

2

3

4

5

6


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2009 survey findings


4/2942010 Hay Group. All rights reserved

The study resultsapply to all organizations

1863 participants from 1109 organizations completed a survey

Regional distr ibution

Region Per centNorth America 45.5

Europe/Middle East/Africa 29.7

Asia 16.0

South America 5.6

Pacific 3.3

Total 100.0

Source: Hay Group / Bloomberg BusinessWeek.com| 2009 BestCompanies for Leadership study

12.1501 million to 1 billion

23.41 billion to 5 billion

7.56 billion to 10 billion

Revenue distribution

Annual revenue in US$ Per centUnder 500 million 31.9

Over 10 billion 25.0

Total 100.0

Source: Hay Group / Bloomberg BusinessWeek.com | 2009 BestCompanies for Leadership study


5/2952010 Hay Group. All rights reserved

2009 Top 20 Best Companies forLeadership

1 General Electric

2 Southwest Airlines

3 3M Company

4 Procter & Gamble

5 Accenture

6 Wal-Mart Stores

7 Nestle

8 Coca-Cola

9 McDonalds Corporation

10 Infosys Technologies

11 IBM

12 Cisco

13 United Parcel Service

14 IKEA

15 ABB

16 Zappos.com

17 Hewlett-Packard

18 Goldman Sachs

19 Unilever

20 General Mills, Inc.


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The BestCompanies

for Leadership

outperformothers


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Top 20 produce better shareholderreturns than S&P 500

Top 20 vs S&P 500

1.60

4.02

8.43

2.97

-6.91

-5.43

1.02

-0.15

-10

0

10

Percent

Top 20

S&P 500

1 year total return 3 year total return 5 year total return 10 year total return

Source: S&P Compustat data as of 9/30/2009


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Best Companies for Leadershipcreate better leaders

9490 87

75

67

54

0

20

40

60

80

100

Leadership development

programs enable employees to

deliver on goals/strategies

All employees have the

opportunity to develop and

practice the capabilities needed

to lead others

There are a sufficient number

internal candidates ready to

assume open leadership

positions

Per

cent

Top 20 All respondentsSource: Hay Group / Bloomberg Bus inessWeek.com | 2009 Best Companies for Leadership study


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Leadership focus is changing


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Todays environment is more complex

The competitive landscape has changed

Change isnt ending, its only accelerating

Leaders need to be able to manage and lead in unpredictable times

The world is more connected

Global

Information

Technology

Financial markets

We live in unpredictable times Environmental concerns

Political instability

Economic volatility


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Leaders need to be:agile learners

strategic and tactical

emotionally intelligent


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Best Companies for Leadership arelooking towards the future

Where companies report they are focusing their efforts now

14

4

82

27

8

65

0

20

40

60

80

100

The downturn Recovery Positioning for the future

Per

cent

Top 20 All respondents

Source: Hay Group / Bloomberg Bus inessWeek.com | 2009 Best Companies for Leadership study


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For the first time companies valuestrategic thinking more than execution

What companies value in leaders

29

14

27

38

27

44

59

17

20

31

32

37

48

68

0 10 20 30 40 50 60 70 80

Technical competence

Influence

Team work

Decision making

Inspiring leadership

Execution

Strategic thinking

Per cent

All respondents Top 20Source: Hay Group / Bloomberg Bus inessWeek.com | 2009 Best Companies for Leadership study


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Creating a culture of leadership

excellence: lessons from the best


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Creating a culture of leadership requires:managing and investing in development

What companies do to develop and retain leaders

94

8380

6972

61

0

20

40

60

80

100

Organization actively manages

a pool of successors for

mission critical roles

Company invests a lot into the

people it needs

People stay at this company

primarily for growth

opportunities

Per

cent

Top 20 All respondents

Source: Hay Group / Bloomberg Bus inessWeek.com | 2009 Best Companies for Leadership study


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The best address bigger and broaderissues to create a culture of leadership

Areas where the best are doing more than the rest

95

66

91 91

60

37

46

59

0

20

40

60

80

100

Using corporate social

responsibility to recruit

employees

Having a high

proportion of women in

senior leadership

Making it easy for

people to work from

home

Having an appreciation

of global issues is a key

job requirement

Per

cent



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There is no oneway to create an

engaging culture


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Types of cultures found in theBest Companies for Leadership

Big, complex, modern global organizations

Global issues are important

Pool of successors for mission critical roles

Modern, learning-oriented, fun workplace

Moving between functions is extremely common

People are expected to lead, regardless if they have a position of authority

Emotions are discussed in the workplace

Collaboration for innovation

Employees are encouraged to take new approaches to solving problems If you see a problem or opportunity, youre allowed to address it

Work life balance is taken seriously


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Enabling performance


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The real thingleaders do is create

environments that

drive performance


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Employee effectiveness framework

Employee engagement Commitment Discretionary effort

Employee

effectiveness

Financialsuccess

Customersatisfaction

Employeeperformance

Employee enablement Optimized roles Supportive environment


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The business case forengaging and enabling employees

Highengagement only

High engagement+ high enablement

Employee performanceIncrease in employees above performance expectations

10%

-40%71.%

x2.5

50%

-54%89%

x4.5

Employee retentionReduction in turnover rates

Customer satisfactionCustomer satisfaction rates

Financial successRevenue Growth

Source: Based on linkage case studies using Hay Groups global normative database


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Creating a culture of leadership requires:empowering employees to lead and grow

What companies do to enable their employees

9085 86 89

67

57

6671

0

20

40

60

80

100

Employees have the

opportunity to

develop/practice the

capabilities needed to

lead others

Employees are

expected to lead,

regardless if they have

a formal pos ition of

authority

Employees are

encouraged to learn in

areas outside their

expertise

If someone sees a

problem/opportunity

they are encouraged to

address it

Pe

rcent



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Conclusions


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Learning from the best

Encourage purpose driven leadership

Identify opportunities for leaders to play a larger role in addressing strategic or

company-wide issues that your market and the public see as priorities

Build cross-functional collaboration capability

Treat talent management as a strategic corporate asset (it takes an organization toraise a leader)

Use talent review forums to assess bench strength and make strategic developmentassignments

Identify destination roles for high potentials and allow sufficient time in role


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Learning from the best, continued

Leverage your culture to drive and sustain development

Include culture building metrics in personal scorecards

Create culture buildingcross-functional task groups Establish a culture based on coaching and peer development

Develop strategic thinking skills

Provide the latest thinking in strategy, innovation and collaboration

Expose leaders early in their career to senior level decision making

Expect your leaders to teach and mentor others


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What does this years findings mean fororganizations and leadership

Leadership more than ever will drive business performance in the future

Ignore Leadership and its development at your own peril

Best Companies for Leadership develop leaders who can operate in an increasingly

complex and deeply connected global environment

There is no one way to develop a culture of leadership

Engagement and enablement are key to driving organizational performance


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Questions


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Additional resources

Best Companies for Leadership section on haygroup.com

www.haygroup.com/BCL

Questions?

[email protected]

[email protected]

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2009.Best.companies.for.Leadership.presentation FINAL

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