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T H E F I F T H A N N U A L
2014/ 2015 RESEARCH
GLOBAL LEADERSHIP RESEARCHB Y C H A L L Y G R O U P W O R L D W I D E
2
About the ResearchChally Group Worldwide presents the summary results from the Fifth Annual Global Leadership
Research Project. Designed as an ongoing research study, our analysis builds year over year on
insights shared, intelligence gained, and paradoxes revealed about the leadership development
practices of companies globally.
Each year, the project kicks off with an in-depth survey of approximately 300 Chief Executive
Officers (CEOs) and senior Human Resource (HR) leaders globally. The results from this survey
produce the annual Best Companies for Leaders, as published in the January/ February issue of
Chief Executive magazine. Our team of researchers then works with the survey data, in combination
with interviews conducted with senior consultants and CEOs who represent contemporary
thinking on leadership strategies, and present this report as the culmination of the research to date.
Research Objectives
The Global Leadership Research Project involves CEOs and Human Resource leaders directly in
the examination of evolving practices in leadership development and the recognition of the inno-
vative approaches and persistent challenges faced by companies committed to investing in their
own talent.
Recognizing Excellence in Leadership Development
The study defines multiple qualifying criteria for inclusion and final ranking in Chief Executive
Magazine’s “Best Companies for Leaders.” These include:
• The presence and quality of formal leadership development initiatives
• Commitment level of the CEO to the leadership development program as measured
• The depth of the leadership funnel as measured by the percentage of senior management
• Positions filled by internal candidates as well as the percentage of middle management
• Positions filled by internal candidates
• Reputation amongst peers for excellence in developing sought-after talent
• Long-term growth of market capitalization and shareholder value
This last criterion recognizes that impactful leadership development ties directly to strong
business performance. A reprint of the article summarizing the companies who made it to the top
40 public rankings and top 10 private rankings is available in this report.
3
Table of Contents
The Fifth Annual Global Leadership Research Project Demographics 4
Chief Executive Magazine’s 2015 Best Companies For Leaders 8
Key Findings
Coaching / Mentoring continues to be the most popular
practice for developing leaders 15
Transformation is needed in Sales Leadership 16
Formal High-Potential Programs become Higher Priority 18
Top Causes of Leadership Derailment 19
Importance of Developing Millennials is Rising 20
Global Leadership Research Project Survey Response Summary 21
The Fifth Annual Global Leadership Research Project
5
Organization Size
Annual Revenue in US Dollars (%)
Less than $25 million 27
$25 to $50 million 3
$50 to $100 million 2
$100 million to $500 million 15
$500 million to $1 billion 5
$1 to $5 billion 19
$5 to $10 billion 9
Over $10 billion 20
Number of Employees (%)
Fewer than 50 17
50 to 199 9
200 to 499 10
500 to 999 11
1,000 to 2,499 8
2,500 to 4,999 1
5,000 to 9,999 6
10,000 to 24,999 14
25,000 to 49,999 7
50,000 to 74,999 5
75,000 to 99,999 3
100,000+ 9
Sector (%)
Government 1
Non-Profit 2
Private 53
Public 44
The following information provides a high-level summarization of the research sample. This research represents responses from C-Level and Senior Human Resources and Development leaders. The percentages displayed in these tables constitute those respondents who completed the survey in its entirety.
6
Industry
(%)
Other 19
Professional, Scientific and Technical Services 17
Manufacturing 15
Finance, Insurance, Real Estate 10
Health Care 10
Information, Media, Telecommunications 9
Wholesale Trade, Retail Trade 6
Transportation, Warehousing 5
Mining, Utilities, Construction 4
Agriculture, Forestry, Fishing 3
Arts, Entertainment, Recreation, Accommodation, Food Services 1
Administrative, Support 1
Industries Represented
Companies with International Operations
(%)
Yes 65
No 35
7
Location of Company Headquarters
Regions
North America
South & Central AmericaMiddle East / Africa
EuropeSouth Asia
East AsiaOceana and Australia
84%
6%
1%
4%
3%
1.7%
Southeast Asia
2%
Chief Executive Magazine’s The 40 Best Companies For Leadersand 10 Best Private Companies For Leaders
This Executive Overview was published in the January/February 2015 issue of Chief Executive Magazine
9
36 / CHIEFEXECUTIVE.NET / JANUARY/FEBRUARY 2015
THE 2015 BEST COMPANIES FOR LEADERS
Companies were scored on five key criteria:
Having a formal leadership process in place
The commitment level of the CEO to the leadership-development program as measured by the percent of time spent
The depth of the leader-ship funnel as measured by the percentage of senior management positions filled by internal candidates
The number of other companies that report recruiting from the company being evaluated
1
3
4
A shareholder value performance metric based on 10-year growth or decline in market capitalization
5
2
GE RETURNS TO THE TOP… AGAINBY KEN CARROLL & J.P. DONLON
IN THE LEADERSHIP PIPELINE, management advisors Ram Charan, Stephen Drotter and Jim Noel deplore “the lack of effective talent development within organizations.” Today’s com-panies need effective leaders at every level and in every location. To deliver on results, CEOs can’t do it on their own. They need more fully performing leaders than ever before.
Each year since 2005, Chief Executive has sought to identify those companies that excel in leadership development. In partnership with Chally Group Worldwide (chally.com), a sales and leadership research and consulting firm headquartered in Dayton, Ohio, we canvas world-class companies through a questionnaire and interviews in order to learn what they are doing to identify and nurture people three or more levels down the chain from the CEO.
The final, top-40 ranking consists of public companies with more than $1 billion in revenue, and the top 10 on the list scored within several points of one another. Rankings are affected by a company’s reputation among its peers as a source for well-rounded talent. The percent of senior management recruited
from internal talent pools is another criterion. Similar to 2014, some attrition among last year’s winners accounts for why previous winners did not appear on the 2015 listing. Because it would be inappropriate to compare private companies with larger, public compa-nies that enjoy greater resources, we list separately the ranking of large, private organizations with in-depth, leader-ship-development programs. Of the companies surveyed, 85 percent have headquarters in North America and 64 percent have international operations. The majority of industries represented included professional, scientific, and technical services (20 percent); manufacturing (18 percent); informa-tion, media & telecommunications (16 percent); and finance, insurance, real estate (10 percent).
GE tops the 2015 list as the “Best Company for Leaders” with IBM coming in just a fraction below. P&G moves to No. 3, ranking at a very close range. In the top 10, moving up from the 2014 list are EMC Insurance (No. 4), Verizon (No. 5), VF Corporation (No. 6), Southwest Airlines (No. 7), and The Cooper Companies (No. 9), all of which
Continued on pg. 38
10
Companies were scored on five key criteria:
1 General Electric / Jeffrey Immelt (3) 1 P&G / A.G. Lafley
2 IBM / Virginia Rometty (2) 2 IBM / Virginia Rometty
3 P&G / A.G. Lafley (1) 3 General Electric / Jeffrey Immelt
4 EMC Insurance / Bruce Kelley (26) 4 Accenture / Pierre Nanterme
5 Verizon Communications / Lowell McAdam (14) 5 Unilever / Paul Polman
6 VF Corporation / Eric Wiseman (11) 6 Dow Chemical / Andrew Liveris
7 Southwest Airlines / Gary Kelly (18) 7 McDonald’s / Donald Thompson
8 Wipro Ltd. / T. K. Kurien 8 Monsanto / Hugh Grant
9 Cooper Companies / Robert Weiss (36) 9 Hormel Foods / Jeffrey Ettinger
10 Dow Chemical / Andrew Liveris (6) 10 General Mills / Kendall Powell
11 3M / Inge Thulin (23) 11 VF Corporation / Eric Wiseman
12 Xerox / Ursula Burns 12 W.W. Grainger / James Ryan
13 Ingersoll Rand / Michael Lamach 13 Caterpillar / Douglas Oberhelman
14 General Mills / Ken Powell (10) 14 Verizon Communications / Lowell McAdam
15 Hormel Foods / Jeffrey Ettinger (9) 15 TJX Companies / Carol Meyrowitz
16 Esterline / Curtis Reusser (40) 16 Sprint / Daniel Hesse
17 Arthur J. Gallagher / J. Patrick Gallagher 17 Maxim Integrated / Tunc Doluca
18 Sprint / Marcelo Claure (16) 18 Southwest Airlines / Gary Kelly
19 Maxim Integrated / Tunc Doluca (17) 19 DENTSPLY International / Bret Wise
20 Accenture / Pierre Nanterme (4) 20 ADP / Carlos Rodriguez
21 Caterpillar / Douglas Oberhelman (13) 21 HNI / Stan A. Askren
22 Nielsen / Mitch Barnes 22 McKesson / John Hammergren
23 Hitachi Data Systems / Jack Domme 23 3M / Inge Thulin
24 Ball Corporation / John Hayes 24 Konecranes / Pekka Lundmark
25 Cardinal Health / George Barrett (27) 25 Ecolab / Douglas Baker, Jr.
26 Coca-Cola Enterprises / Muhtar Kent 26 EMC Insurance / Bruce Kelley
27 Huntington Bancshares / Stephen Steinor (37) 27 Cardinal Health / George Barrett
28 Dentsply International / Bret Wise (19) 28 Green Mountain Coffee Roasters / Brian Kelley
29 Royal Caribbean Cruises / Adam Goldstein 29 RPM International / Frank Sullivan
30 Salesforce / Marc Benioff 30 Emerson Electric / David Farr
31 Bristow Group / Jonathan Baliff 31 Comcast / Brian Roberts
32 HCL Technologies, Ltd. / Anant Gupta 32 Shoppers Drug Mart / Domenic Pilla
33 Tata Group / Cyrus Mistry 33 Barnes Group / Patrick Dempsey
34 Shoppers Drug Mart / Dominic Pilla (32) 34 Cash America International / Daniel Feehan
35 Hyatt Hotels / Mark Hoplamazian 35 Dangote Group / Aliko Dangote
36 Ecolab / Douglas Baker (25) 36 The Cooper Companies / Robert Weiss
37 Paychex / Martin Mucci (39) 37 Huntington Bancshares / Stephen Steinour
38 Hewlett-Packard / Meg Whitman 38 Citigroup / Michael Corbat
39 Harman / Dinesh Paliwal 39 Paychex / Martin Mucci
40 Monsanto / Hugh Grant (8) 40 Esterline / Curtis Reusser
TOP40BESTCOMPANIES
FORLEADERSIN 2015
2014 Ranking
Company / CEO 2015 Ranking
Company / CEO (2014 Rank)
11
10 BEST PRIVATE COMPANIES FOR LEADERS
1 Deloitte / Frank Friedman (1) 1 Deloitte / Barry Salzberg
2 Hilti / Christoph Loos 2 PwC / Bob Moritz
3 Dell / Michael Dell (6) 3 Transplace / Thomas Sanderson
4 Transplace / Thomas Sanderson (3) 4 American Infrastructure / A. Ross Myers
5 MWH Global / Robert Moser, Jr. (9) 5 Clark Construction Group / Robert Moser
6 Black & Veatch / Steven Edwards (10) 6 Dell / Michael Dell
7 AlliedBarton Security / William Whitmore (7) 7 AlliedBarton Security / William Whitmore
8 Belron / Gary Lubner 8 Day & Zimmerman / Michael Yoh
9 Day & Zimmermann / Hal Yoh (8) 9 MWH Global / Alan Krause
10 NAACO Industries / Al Rankin 10 Black & Veatch / Len Rodman
2015 RankingCompany / CEO (2014 Rank)
2014 RankingCompany / CEO
38 / CHIEFEXECUTIVE.NET / JANUARY/FEBRUARY 2015
When asked methods in which CEOs are investing time devel-oping leaders, the majority of the participants said coaching and feedback for skill development is the main area of focus.
57%Coaching and feedback for skill development
48%Informal information- exchange sessions
43% Mentoring one-on-one
TOP 5 DEVELOPMENTAL OPPORTUNITIES
reported impressive leadership-devel-opment processes. New to the top-10 rankings this year is Wipro (No. 8), which made the list in prior years.
Except for 2009, where 3M led the list, and 2010, when the nod went to JPMorganChase, the top honor has been a back-and-forth contest between P&G and GE. After a three-year run, P&G has again been toppled by its GE rival. The difference, narrow as it is, lies in the number of other companies that report recruiting from these leadership incubators. (See Criteria No. 4.) For its part, developing people is embedded in GE’s culture and is integral to its growth. “It’s how we’ve sustained a 130-year record of innovation and reputation for leadership—and how we solve the toughest challenges for our customers and society. We invest significantly in
our employees to meet the needs of those we serve,” according to Susan Peters, GE’s SVP, human resources. The Fair-field, Connecticut conglomerate spends more than $1 billion on learning and development each year to help employ-ees at every level and career stage.
Crotonville, its global leadership institute, serves at the forefront of thinking in leadership, strategy and innovation; is the first corporate university in the U.S.; and is the epicenter of GE culture. Some of GE’s best-known initiatives—WorkOut, CAP, Six Sigma, Lean Six Sigma—took shape at Crotonville. Today, GE leaders are focused on speed, simplicity and impact. It offers multi-year rotational programs for emerging and experienced leaders to build functional expertise, global experience and a strong foundation
Continued on pg. 40
THE 2015 BEST COMPANIES FOR LEADERS
To deliver on results, CEOs can’t do it on their own. They need more fully performing leaders than ever before.”
Continued from pg. 36
Because private companies operate in a much different business environment than public companies, they have their own ranking. Deloitte once again takes the top position, followed by Hilti, which scored a fraction below. Dell moves up from No. 6 to ranking No. 3.
12 JANUARY/FEBRUARY 2015 / CHIEFEXECUTIVE.NET / 39
Survey participants cited coaching and mentoring as the No. 1 development opportunity within a formal process. Here are the top five development programs:
52% Coaching and Mentoring
49% Action Learning/Developmental Assignments
39% Assessment and Feedback
34% High-Potential Programs
34% Exposure to Senior Executives
FORMAL PROCESSES
One technique for developing leadership talent falls outside the range of formal programs, and so it deserves special mention: positioning high-potential individuals to serve as board members for other organizations. Thirty-six percent of all companies surveyed place future leaders on the boards of other firms.
1 Deloitte / Frank Friedman (1) 1 Deloitte / Barry Salzberg
2 Hilti / Christoph Loos 2 PwC / Bob Moritz
3 Dell / Michael Dell (6) 3 Transplace / Thomas Sanderson
4 Transplace / Thomas Sanderson (3) 4 American Infrastructure / A. Ross Myers
5 MWH Global / Robert Moser, Jr. (9) 5 Clark Construction Group / Robert Moser
6 Black & Veatch / Steven Edwards (10) 6 Dell / Michael Dell
7 AlliedBarton Security / William Whitmore (7) 7 AlliedBarton Security / William Whitmore
8 Belron / Gary Lubner 8 Day & Zimmerman / Michael Yoh
9 Day & Zimmermann / Hal Yoh (8) 9 MWH Global / Alan Krause
10 NAACO Industries / Al Rankin 10 Black & Veatch / Len Rodman
2014 RankingCompany / CEO
How do leading companies make the most of potential talent within the organization? Nearly every organization today espouses some version of the mantra, “our people are a critical, competitive asset.” The most successful ones tend to take that statement literally, making sustained efforts to assess, manage and increase their stock of employee talent. In particular, many maintain formal programs to develop high-potential individuals for future leadership roles. But companies follow a range of approaches in choosing to adopt these programs and in the ways they implement them. What did the best companies identify as best practices for corporate high-potential programs?
High-Potential ProgramsBecause creating and maintaining a formal program represents a substantial investment of resources with largely long-
term benefits, the study looked at smaller firms (under $1 billion in revenue) and larger ones separately. Specific, high-potential programs prove to be not very common among smaller companies, with only 8 percent reporting them among the top three types of options favored for leadership development. In contrast, 56 percent of larger firms rank them in the top three. For reference, the most common categories overall are coaching and mentoring, action learning, assessment and high-potential programs.
Defining PotentialHigh-potential programs can vary widely in their scope, approach and degree of success. The initial challenge in making any program succeed is simply having a clear definition of “high potential.” Seventy-one percent of all companies surveyed and 83 percent of larger ones reported
having a definition for the term. While the study did not
investigate approaches taken by the firms that have not defined the concept, establishing a definition of “high potential” offers numerous benefits. Besides helping make the process fair to potential candidates, a formal definition provides a foundation for designing an effective program and makes it possible to measure results in a meaningful and consistent way.
Among all the companies studied, those whose leadership development efforts ranked in the top 15 percent grew their market capitalization by 122 percent over the 10 years ending in 2014—while those in the bottom 15 percent grew by only 37 percent. Given these figures, a closer investigation of how high-potential leadership programs are best implemented promises to pay substantial dividends for talent-focused organizations.
Best Practices for Identifying and Developing Leaders
1340 / CHIEFEXECUTIVE.NET / JANUARY/FEBRUARY 2015
THE 2015 BEST COMPANIES FOR LEADERS
Comparing the long-term growth in market capitalization
of public companies with their final scores for leadership
development can offer justification for investment in
developing leaders. The comparison covered 2004 to 2014,
a period long enough to minimize short-term and situational
fluctuations. In terms of the contribution to growth potential,
the top leadership companies show greater growth than the
lowest as measured by market capitalization.
THE ROI OF LEADERSHIP DEVELOPMENT
Participant Companies*
Market Capitalization Growth 2014
Top 15 percent 122 %
Bottom 15 percent 37 %
SUMMARY 10-YEAR PERFORMANCE COMPARISONS
*Includes companies where public data is available for 2004 to 2014.
Survey participants were asked to list the three companies they would recruit from when there are insufficient internal candidates for openings in their organizations. The reputational stars for leadership development are still limited to a few at the top of their game. Here are the top target companies and some of the reasons behind their status as perceived by respondents:
GE
A multinational organization with complex business units and a strong reputation for developing leaders and leading innovation in technology.
IBM
A technology and solutions frontrunner with an excellent reputation for developing leaders, reinventing business models profitably and sharing success with global communities.
P&GKnown for outstanding technical leaders, marketing expertise and leadership know-how.
REPUTATIONAL LEADERS
Other top companies are recruiting targets, but GE, IBM and P&G are by far the most cited “reputational leaders.”
Continued from pg. 38for future leadership roles. Some 4,000 next-generation leaders are in the program today. One-third of GE’s senior leaders are program graduates.
Clearly, a CEO will reap the benefits of an organization that enjoys superior leadership development. But this oppor-tunity does not depend on having one’s own Crotonville. Part of the challenge is that organizations don’t know their people well enough to understand the strengths and weaknesses of their bench. But CEOs who take it upon themselves to tackle this challenge will realize the benefit in better, overall performance.
GE spends more than $1 billion on learning and development each year to help employees at every level and career stage.”
14
Key Findings: Coaching and mentoring continues to be the most
popular practice for developing leaders
Transformation is needed in Sales leadership development to better focus on the new buyer
Having a formal High-Potential development program is rising in importance
Top cause for Leadership Derailment is reported to be Change Agility
The focus level of developing millennials is increasing
15
Coaching and mentoring continues to be the most popular practice for developing leaders. Having High-Potential programs has moved up in importance from last year as companies are seeing the in-creased importance of identifying and developing employees with leadership qualities.
Coaching and Mentoring
64%
56%
Action Learning and Developmental Assignments
59%
49%
Assessment and Feedback
47%
45%
Exposure to Senior Executives
41%
39%
Formal Classroom Training
40%
37%
High-Potential Programs
41%
29%
Cross-Functional Team Projects
25%
24%
21%
24%
24%
International Assignments
8%
12%
Tuition Remission
9%
11%
Other
5%
6%
Exposure to Internal and External Thought Leaders
24%
2015 2014
Coaching and mentoring continues to be the most popular practice for developing leaders
Most popular practices for Developing Leaders
16
An emerging area of leadership is in Sales Executives. While price, quality, innovative product features, and availability of products and services certainly influence customers’ buying decisions, none of these is the most influential factor. Rather, business-to-business customers rank salesperson effectiveness as the most important factor in their buy-ing decisions. Sales Leaders and senior executives must focus on sales effectiveness and the capabilities of their sales force to better serve their customers. Pursuant to this trend, CEOs and HR Executives were asked to rank sales leadership initiatives by Strongly Agreeing or Agreeing to several best practices. Below are the findings.
Understanding customer’s business, anticipating and addressing their needs and committing to a solution ranks as most important.
Transformation is needed in Sales leadership development to better focus on the new buyer
Customers are given a primary and backup contact who address their needs, commit to a result, and communicate decisions internally to execute the solution.
Managers and individual contributors throughout our organization judge the value of their contribution by how it impacts internal and external customers.
Members of functional groups like HR, IT and Marketing are available to form teams to support sales initiatives.
Customers believe our salespeople understand their business and rely on them to anticipate their needs and provide improvement solutions.
Our organization has a formalized sales process that is tracked to measure individual salesperson performance.
Our sales process is specifically designed to coincide with the way our customers wish to buy.
Our seasoned salespeople consistently share best practices with those who are in need.
Customer complaint tracking is done consistently and used to measure customer service effectiveness and continuous improvement objectives.
89%
86%
86%
85%
81%
79%
79%
Summary Findings:
RespondentsStrongly Agree
or Agree
78%
17
Our sales selection process is a standardized system of interviewing, objective assessment and background checks which are uniformly applied to new candidates.
Sales managers are given interviewing training related to the specific competencies re-quired for the positions with periodic updates.
Our customers have significant flexibility of choices for how their transactions are managed so their processes are maximized.
Customer satisfaction is consistently measured against ‘best of breed’ and ‘best of show,’ with results tied to rewards.
When recruiting salespeople, the makeup of the customer base is taken into account and candidates with similar language and background are sought.
Our sales career ladder includes highly specialized, senior positions with customer contact responsibility as an alternative to reassignment to a functional or management role.
What percent of salespeople have an individual development plan?
Our post transaction evaluation is a formal process, done consistently and reviewed with the customer to reinforce satisfaction or make up short-fall.
HR and Training departments regularly meet with sales to review the tracking associated with the effectiveness of selection, onboarding and retention of salespeople.
We segment our customer base by size with a formal national accounts process and various classifications of customer by size used for account assignment & product offering mix.
All our salespeople, regardless of tenure, are required to have at least 20 hours of training per year.
Each of our salespeople is dedicated to either new account development or existing customer penetration.
Firm guidelines are in place for determining if a customer should be a strategic partner.
74%
70%
70%
69%
68%
68%
67%
65%
64%
63%
62%
61%58%
18
Having a formal High-Potential development program is rising in importance
Importance of Sales Experience in selecting High PotentialsThe majority of respondants believe it is important for High-Potential talent to have sales experience.
CriticalVery ImportantImportantSomewhat ImportantNot Important
33%26%
6%5%
8%
Identifying and Developing High-Potential LeadersTop Processes in Identifying Top Internal Talent
Having a formal Succession PlanAnnual/Bi-Annual Talent Reviews9-Box Grid ReviewMulti-Rater EvaluationAssessment Tests/Centers
44%36%
31%29%
44%
Top-Ranked Companies Define High PotentialResponses from Top-Ranked companies when asked to define High-Potential Talent
• Consistent, strong performance over time • Aspiration to advance • Engagement and commitment to company • Demonstrated learning agility • Demonstrate eagerness to learn • Leadership and customer relationship skills • Proactively building a variety of job experiences • Inspires others to be their best • Ability to handle responsibility with greater scale and scope • Outperforming their peers
19
• Consistent, strong performance over time • Aspiration to advance • Engagement and commitment to company • Demonstrated learning agility • Demonstrate eagerness to learn • Leadership and customer relationship skills • Proactively building a variety of job experiences • Inspires others to be their best • Ability to handle responsibility with greater scale and scope • Outperforming their peers
Top Five Causes of Leadership DerailmentWhy Do Leaders Derail?
Unwillingness to adapt to change
Lack of self-awareness and emotional
intelligence/arrogance
Lack of ability to make strategic decisions
Lack of cross-organizational collaboration
and leadership skills
Not embracing culture and values
1
2
3
4
5
20
Critical
30%
24%
2015 2014
The Importance of Developing Millennials is risingThe level of importance of focusing on the millennial generation is rising. The majority (81% in 2015 compared to 78% in 2014) of organizations find the attraction, development and retention of the millennial generation critical, very important or important for the organization.
“We source the majority of our talent from universities and have adapted our employment branding and recruiting messages to appeal to the millennial generation. We give new hires significant and challenging responsibilities early and then plan their assignments carefully over time to provide them the developmental experiences needed. We’re expanding flexible work arrangements to include work from home and location free arrangements.”
“We are providing education and training to managers concerning how they may need to adapt and modify their management style to appropriately motivate and connect to the millennial generation. We are also actively involved in analyzing and modifying our recruiting and on-boarding efforts to better attract and retain millennial workers.”
“It is clear that as baby boomers retire and we prepare gen x across the world that we need to appreciate the needs, motivations and expectations of a cadre of gen y employees about to join our sales teams and other aspects of operations.”
“Training upper level managers on generational differences, adjusting employment offerings to meet millennials needs (i.e., providing a flexible workplace), strategic and formal initiatives targeted at embracing diversity and inclusion of all employees.”
Very Important
30%
34%
Important
21%
20%
Somewhat Important
13%
16%
Not Important
6%
6%
21
Global Leadership Research Project Survey Response Summary
22
Rank the key performance measures your leadership tracks to determine the overall success of the organization. (1 as most important to 11 as least important; lower averages indicate most important)
Key Performance Measure %
Customer Satisfaction 3.6
EBITDA 3.9
Income Growth 4.0
Gross Profit 4.2
Customer Retention or Churn 4.6
Employee Retention 5.5
Costs 5.7
Market Share 6.1
Stock Price 7.9
Publications 9.1
Patents 9.4
What development opportunities are included in your organization’s leadership development program? (Select the three most frequently used.)
Development Opportunity (%)
Coaching and mentoring 64
Action learning and developmental assignments 59
Assessment and feedback 47
High-Potential programs 41
Exposure to senior executives 41
Formal classroom training 40
Cross-functional team projects 25
External workshops and training 24
Exposure to internal and external thought leaders 21
Tuition Remission 9
International assignments 8
Other 5
What percent of your current management team was recruited internally?Mean % Standard
Deviation
Engaging in others' development activities 33 20
On his/her own personal development activities 18 12
23
What percent of your CEO’s time is spent:
Mean %Standard Deviation
Engaging in others' development activities 33 20
On his/her own personal development activities 18 12
What is the length of time your Top Executive (CEO, President or Chairman) has been in the office? (Years)
Mean %Standard Deviation
Current Executive 32.6 35.0
Former Executive 21.3 22.7
Of the following developmental activities, which two does your CEO spend the most time on?% Strongly Agree/Agree
Coaching and feedback for skill development 57
Informal information exchange sessions 48
Mentoring one-on-one 42
Guest appearances in training classes 26
Overseeing the design and development of leadership programs
25
Teaching formal training classes 20
Other 9
24
The following seven questions were rated on a scale of Strongly Disagree=1; Disagree=2; Neither Agree nor Disagree=3; Agree=4; Strongly Agree=5.
% Strongly Agree/Agree
Other companies actively try to recruit our organization's leaders.
83
My company has a sufficient number of qualified internal candidates who are ready to assume mid-level manager positions.
73
Mid-level managers recruited externally have been successful.
71
HR is an effective partner in the leadership development process.
67
My company has a sufficient number of qualified internal candidates who are ready to assume senior manager/executive positions.
63
Upper-level managers recruited externally have been successful.
63
Retention of key talent is a formal performance metric for our managers.
63
How would you rate your organization’s ability to develop leaders?
%Poor 5.5
Average 10.9
Good 18.7
Very Good 28.6
Excellent 36.2
What are the best practices to minimize leadership derailment?
Open-Ended
How important is sales experience in the selection of high potentials?
%
Not Important 5
Somewhat Important 6
Important 26
Very Important 33
Critical 8
25
Does your organization position outside board membership for high-potential candidates?
Yes (%) No (%)39 61
Does your organization position outside board membership for high-potential candidates in non-profit organizations?
Yes (%) No (%)
51 49
Does your CEO maintain personal relationships with:
Yes (%) No (%)
Major Customers 93 7
Major Vendors 74 26
Industry Associations 94 6
Does your organization have a formal definition of high potential?
Yes (%) No (%)
71 29
Which of the following are most predictive of leadership success? (Select all that apply.)
%
Fit with company values and culture 84
Interpersonal skills 76
Self-awareness 76
Motivation to lead 57
Learning agility/cognitive ability 56
Previous experiences 51
Lack of derailer 30
Political Savvy 27
Other 19
Educational background 16
26
What processes do you use to identify top internal talent? (Select all that apply.)
%
Annual/bi-annual talent reviews 44
Succession planning 44
9-Box 36
Multi-rater evaluation 31
Assessment Tests/Centers 29
Other 19
Team building exercises 15
Credentials 14
Peer Nominations 7
Appraisal Ratings; 5-Box Grid; Executive Team Assessments; Management Nominations
How far down in your organization do you go in identifying and tracking high-potential leaders?
%
Individual contributors 32
First-level supervisors 9
Middle managers 10
Upper-level managers 2
What on-boarding processes do you use for top-level leaders? (Select all that apply.)
%
Planned rotation of meeting key individuals 60
90-day transition structure and support 56
Assimilation meetings 52
Individual feedback and coaching of new executives
to learn about strengths and development areas51
Assigned a mentor 41
Short-term assignments in different functional areas 22
Job shadowing 19
No on-boarding processes in place 5
27
How critical is focusing on the attraction, training, and retention of the millennial generation for your company?
%
Not important 8
Somewhat important 13
Important 21
Very important 28
Critical 30
Chally Group Worldwide is a sales and leadership talent manage-
ment company that was founded in 1973 through a grant from the
United States Justice Department. Chally’s talent analytics have been
improving productivity and reducing turnover for customers in over
49 countries. Customers choose Chally’s talent measurement process
for improved candidate selection and employee and organizational
development. Chally continues to fund and develop comprehensive
research in sales and management development including Chief Executive’s “Best Companies for Leaders” and World Class Sales Research.
Chief Executive Group was founded in 1977 to create and foster op-
portunities for CEOs to share their experiences and expertise within a
community of peers. It serves its CEO audience in a variety of media
including print, in-person, and online, which in turn provides advertis-
ers and sponsors multiple opportunities to develop long-term relation-
ships at the Chief Executive level. In addition to publishing Chief Execu-
tive magazine and www.chiefexecutive.net, the Chief Executive Group
brings CEOs together through its annual CEO2CEO Conference, open
to C-suite executives, and its by-invitation-only CEO Roundtables,
Symposiums, and Global Events.
Chally Group Worldwide 3123 Research Blvd. Dayton, OH 45420
937.259.1200 800.254.5995 www.chally.com
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