2009.best.companies.for.leadership.presentation final
TRANSCRIPT
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
1/29
2009 Best Companies
for LeadershipThe future of leadership: a spotlight on the bestHay Group Webinar
FEBRUARY 18, 2010 RICK LASH AND CHRIS HUBER
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
2/29
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
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
3/29
2009 survey findings
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
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
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
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.
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
6/29
62010 Hay Group. All rights reserved
The BestCompanies
for Leadership
outperformothers
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
7/29
72010 Hay Group. All rights reserved
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
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
8/29
82010 Hay Group. All rights reserved
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
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
9/29
Leadership focus is changing
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
10/29
102010 Hay Group. All rights reserved
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
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
11/29
112010 Hay Group. All rights reserved
Leaders need to be:agile learners
strategic and tactical
emotionally intelligent
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
12/29
122010 Hay Group. All rights reserved
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
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
13/29
132010 Hay Group. All rights reserved
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
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
14/29
Creating a culture of leadership
excellence: lessons from the best
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
15/29
152010 Hay Group. All rights reserved
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
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
16/29
162010 Hay Group. All rights reserved
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
Top 20 All respondentsSource: Hay Group / Bloomberg Bus inessWeek.com | 2009 Best Companies for Leadership study
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
17/29
172010 Hay Group. All rights reserved
There is no oneway to create an
engaging culture
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
18/29
182010 Hay Group. All rights reserved
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
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
19/29
Enabling performance
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
20/29
202010 Hay Group. All rights reserved
The real thingleaders do is create
environments that
drive performance
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
21/29
212010 Hay Group. All rights reserved
Employee effectiveness framework
Employee engagement Commitment Discretionary effort
Employee
effectiveness
Financialsuccess
Customersatisfaction
Employeeperformance
Employee enablement Optimized roles Supportive environment
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
22/29
222010 Hay Group. All rights reserved
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
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
23/29
232010 Hay Group. All rights reserved
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
Top 20 All respondentsSource: Hay Group / Bloomberg Bus inessWeek.com | 2009 Best Companies for Leadership study
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
24/29
Conclusions
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
25/29
252010 Hay Group. All rights reserved
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
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
26/29
262010 Hay Group. All rights reserved
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
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
27/29
272010 Hay Group. All rights reserved
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
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
28/29
Questions
-
7/30/2019 2009.Best.companies.for.Leadership.presentation FINAL
29/29
292010 Hay Group. All rights reserved
Additional resources
Best Companies for Leadership section on haygroup.com
www.haygroup.com/BCL
Questions?