Great Leaders what makes them and how to grow them?

Prepared by Aon Hewitt Talent & Reward

Great Leaders – what makes them and how to

grow them?

James Rutherford

Principal, Leadership Practice

Aon Hewitt Australia

1

Introducing Aon Hewitt

Mitigate risk in

your workforce

Save money

Make money

Realise the

untapped

potential of your

people

Reducing poor

performance resulting

from talent decisions that

cost money and constrain

productivity.

Enabling talent at all levels

of the organisation to be

actively engaged with your

strategy and striving for

excellence.

Proprietary & Confidential | 18 July 2014

Why is Leadership so Important?

2

Leadership Quality and Effectiveness

Business Performance


The Aon Hewitt Employee Engagement Model


Best Employers achieve better business results

Best Employers drive higher engagement, sales growth and shareholder value compared to

other organisations, including those with engagement levels in the top quartile.


Introducing the 2014 Aon Hewitt Best Employers


What distinguishes Engaging leaders?

6


The Engaging Leader – how to spot them and how they

grow

Proprietary & Confidential | 18 July 2014 8

Aon Hewitt’s Top Companies for Leaders research


478 Global

Participants

43 countries

9

2011 Top Companies for Leaders selection process

182 Global

Finalists

In-depth interviews

with HR leaders

Senior executives

interviewed

Companies

screened for

financial

performance relative

to industry

18-month bad press

scan

57 Top Companies

Panel of judges gathered in

each region to select and

rank Top Companies

Global (Top 25)

North America (Top 25)

Asia-Pacific (Top 20)

Europe (Top 7)

Latin America (Top 5)

Asia-Pacific Top Companies

1. Aditya Birla Management Group

2. Hindustan Unilever Limited

3. ICICI Bank Limited

4. China Vanke Co., Ltd.

5. Infosys Technologies Limited

6. Wipro Limited

7. Mahindra & Mahindra Limited

8. Bharti Airtel Limited

9. Whirlpool of India Ltd.

10. Kotak Mahindra Bank Ltd.

11. Advanced Info Service PLC

12. HNA Group

13. S P Setia Berhad

14. Kasikorn Bank PLC

15. Coca-Cola Amatil Limited 16. Oil & Natural Gas Corporation Ltd.

17. Mindtree Limited

18. Marico Limited

19. NZ Refining

20. Commonwealth Bank of

Australia


What differentiates the Top Company for Leaders –

The Four Disciplines

Leaders

Lead the Way

Unrelenting

Focus on Talent

Practical and Aligned

Programs and

Practices

When Leadership

Becomes a

Way of Life

1 3 2 4

Senior leaders

have a passionate

and visible

commitment to

developing leaders

Leadership

strategy clearly

reflects the overall

business strategy

An intense focus

on talent

permeates every

level of the

organisation

The development

of leaders is an

institutionalised

practice and

mind-set


1. Leaders Lead the Way:

Active Involvement leadership practices

100%

92%

56%

100%100%

60%

100%100%96%

79%

61%

30%

79%

62%

27%

76%81%

77%

0%

20%

40%

60%

80%

100%

BOD CEO Senior

Management

BOD CEO Senior

Management

BOD CEO Senior

Management

Top Companies All Others

Source: Aon Hewitt’s Global Top Companies for Leaders Study, 2011

Reviewing talent and

succession planning

Leading/participating in

company programs Coaching/Mentoring


Top Companies’ Practices

Robust talent review

processes drive

accountability for

individual and leader

Targeted succession planning

for specific positions and

talent pools

Rigorous assessment of talent

(360 degree and third party

assessments)

96%

84%

100%

100%

52%

100%

76%

41%

84%

81%

29%

95%

0% 25% 50% 75% 100%

Assessment of potential foradvancement

Workforce plan (e.g., 3 years inadvance)

Development of high potential poolsof candidates

Preparation of successor lists forselect positions

External successor pools

Review of talent at least once a year

All Others Top Companies

2. Unrelenting focus on Talent:

Succession planning example

Source: Aon Hewitt’s 2011 Global Top Companies for Leaders Study


2. Unrelenting focus on Talent:

Customised leadership development



Most Effective Development Practice Global Top

Companies All Others

Customised Leadership Training 96% 82%

Use of Customised Leadership Training for the Following Levels

100% 100%

92%88%

76%

69% 69%

57%53%

26%

0%

20%

40%

60%

80%

100%

Senior Management Middle Management High Potentials Front Line Management Other Critical Positions


3. Alignment to Strategy:

Take top talent out of the comfort zone

Twice the number of Top Companies, when compared to the rest, enable

movement of leaders across different function, business, or geography

to build their capability through practical experiences that support the

organisation’s strategy

Focus on Variety of Experiences


4. Leadership becomes a way of life:

Metrics to drive continuous improvement needs

Measurement



92% 92% 92% 92%

80%

92%

60% 60%60%

42%

60%

69%

49%

58%

31% 31%

0%

20%

40%

60%

80%

100%

Strength of

Leadership

Pipeline

Diversity in

Leadership

Pipeline

Retention of

Leaders

Retention of

HiPos/Critical

Talent

# of Diverse

Candidates in

Successor Pool

Ability to Fill Key

Positions/Bench

Strength

Ability to Resource

Grow th Initiatives

Placement Rate of

Diverse

Candidates


What really makes a Top Company for Leaders?

16

Execution and Integration of practices

are the Key Differentiators


“Leaders aren’t born, they are made. And they are made just like

anything else, through hard work.”

Vince Lombardi,

one of American football’s most successful coaches

Questions/ research/ follow up?

[email protected]

Documents

Great Leaders what makes them and how to grow them?