2007-09-19
Global Leadership Study Finds Leadership Development Embedded into Culture of Top Companies
See complete coverage of the 2007 Top Companies for Leaders Study
LINCOLNSHIRE, Ill. – General Electric Company, Procter & Gamble and Nokia Corporation head the 2007 list of Global Top Companies for Leaders, as announced today (see attached list for full list of winners). Sponsored by global human resources services company Hewitt Associates, in partnership with The RBL Group, a firm dedicated to helping clients increase quality of leadership and deliver the strategic HR agenda, and FORTUNE magazine, the Global Top Companies for Leaders were selected and ranked by an esteemed panel of judges based on criteria including leadership practices, company reputation, leadership culture and values, and business performance. The 2007 list can be found on FORTUNE.com today and will appear in the October 1 issue of FORTUNE magazine, on newsstands September 24.
When comparing the Global Top Companies with more than 530 other companies around the world, Hewitt found one overarching characteristic that set them apart from the rest – Global Top Companies make leadership a critical part of the company's organizational fabric. Specifically, the study found that leadership practices at Global Top Companies are an inherent part of the culture, and that developing future leaders is simply a way of operating that must be intertwined with running the business.
"In this increasingly complex and global marketplace, companies must leverage talent and build leadership practices that have consistency throughout the world if they want to be successful," said Bob Gandossy, principal and a global practice leader in Hewitt's Consulting business. "This requires dedicated focus, passion and commitment to leadership. The Global Top Companies for Leaders not only possess these characteristics – they are embedded into the companies' DNA. By having the right leadership practices and processes in place, maintaining a strict focus on critical talent at all levels and having a continuous desire to improve, Global Top Companies have cultures that cultivate and nurture their talent, and a reputation for doing it well."
"These companies have shown a strong investment in building a leadership brand that sets them apart. They have strong reputations for developing exceptional leaders, often fulfilling both customer and investor expectations," said Dave Ulrich, partner and founder of The RBL Group, and a professor of business at the Ross School of Business.
Through its research, Hewitt identified five key areas that set the Global Top Companies apart from other companies around the world:
A Focus on Growth and Globalization. Nearly 70 percent of Global Top Companies cited business growth as the single most pressing challenge over the next three to five years, compared with approximately half (51 percent) of all other companies participating in the survey. While there are many issues of overlapping priority, the Global Top Companies look beyond traditional boundaries to anticipate the next big wave of expansion and they actively prepare for it. Global Top Companies ranked expansion into new markets as their second biggest challenge, followed by globalization and cost pressures as third.
A Dedication to Developing a Global Talent Pipeline. The majority of Global Top Companies (85 percent) believe that they currently have the talent pipeline they need to be successful in the future, compared with only 42 percent of all other companies.
"The future success of an organization rests in the hands of leaders who are equipped to manage and run an international company, which requires them to have a real development mindset," said Michelle Salob, Hewitt's global project leader for the 2007 Top Companies for Leaders study. "Leaders at Global Top Companies understand this, and challenge their talent to stretch into new roles and/or take on new experiences –whether it's moving to a different geography, business line or function, or simply taking on greater responsibility."
In addition to formal assignments, leaders at the Global Top Companies take an active and personal interest in developing and preparing the next generation of leaders through informal mentoring.
A Strategic Business Commitment to Developing Leaders. Hewitt's research reveals that Global Top Companies passionately believe that leadership should be closely tied into their business strategies. The majority (85 percent) ensure that the selection and development of leaders is aligned with their business strategies, compared with only a third (32 percent) of all other companies. In addition, 85 percent of Global Top Companies say leadership development is a high priority to senior management in the organization, compared with just 45 percent of other companies.
A Senior-Level Commitment to Developing Leaders. According to the study, senior leadership teams at the Global Top Companies, particularly CEOs, drive the leadership agenda. Further, the amount of time spent directly on leadership issues at all levels – from the Board of Directors to front-line management – is significantly greater than at other companies. Eighty-five percent of senior management at Global Top Companies say they spend at least 20 percent of their time on leadership development initiatives, compared with only half (52 percent) of all other companies.
A Clear Expectation of Desired Leadership Behaviors. At Global Top Companies, the use of leadership competencies demonstrates clarity around expectations for leaders. Most (85 percent) believe that the desired leadership behaviors are well understood at all levels of the organization, compared with just 37 percent of other companies. These competency models are consistently applied across the organization, and expectations are reinforced through multiple mechanisms, including communications, performance management, compensation, education and high potential selection.
"Today's global companies face a number of unrelenting business challenges – including becoming a leaner organization and growing at double-digit rates in the midst of intensified competition, tightening demographics and a global business arena," said Gandossy. "Today, leaders must have the capacity to lead complex organizations with global scope and scale, demonstrate visionary thinking, hold the highest standards of ethics and understand the business as a whole. Through our research, it's evident that Global Top Companies ingrain leadership in every aspect of the business – it's not simply an action item on a 'to do' list. This mindset differentiates successful businesses from unsuccessful ones."
The Global Top Companies for Leaders study is based on approximately 550 global organizations with an average employee population of nearly 27,000. Almost 70 percent of the participating companies had revenues of $500 million or more.
Hewitt, The RBL Group and FORTUNE utilized a three-step screening process to identify the finalist companies. This included assessing survey responses, conducting in-depth interviews and analyzing financial performance in relation to industry. This information was then provided to a panel of expert judges in each region to select and rank a 2007 Top Companies for Leaders list in Asia-Pacific, Europe, Latin America and North America. A separate judging panel, composed of one representative from each regional panel, considered all regional Top Companies to select and rank a Global Top Companies for Leaders list.
About The RBL Group
The RBL Group specializes in helping clients deliver a strong leadership brand and a strategic HR agenda. Dave Ulrich and Norm Smallwood, the firm's co-founders, have just written a book, Leadership Brand (HBSP, September 2007), which discusses criteria important to the Top Companies for Leaders study. The RBL Group delivers results-oriented, quality solutions by engaging people and processes that help HR and line executives integrate the latest thinking into their organizations through practical tools and approaches. For more information please visit www.rbl.net, e-mail rblmail@rbl.net, or call (801) 373-4238.
About Hewitt Associates
With more than 65 years of experience, Hewitt Associates (NYSE: HEW) is the world's foremost provider of human resources outsourcing and consulting services. The company consults with more than 2,300 organizations and administers human resources, health care, payroll and retirement programs on behalf of more than 340 companies to millions of employees and retirees worldwide. Located in 35 countries, Hewitt employs approximately 24,000 associates. For more information, please visit www.hewitt.com.
Other Contacts:
Kellie Englehardt, The RBL Group, (801) 599-3861
