Measuring Leadership | PowerRank

PowerRank Leadership Rankings – October 23, 2012 Do you know where you rank and why it matters?

Global Innovations

www.global–innovation.com

Measuring Leadership

October 23, 2012

Global Innovations Measuring Leadership

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www.global-‐innovation.com Page | 2 www.global-‐innovation.com October 23, 2012

ASK YOURSELF?

• What is leadership?

• How is leadership measured?

• What tools are available to measure leadership?

• How do you compare with competitors?

• Are your leaders viewed as a strength or weakness?

1. WHAT IS LEADERSHIP?

Leadership is a complex process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task.

“Leadership: The art of getting someone else to do something you want done because he wants to do it.”

Dwight D. Eisenhower “No man is good enough to govern another man without that other's consent.”

Abraham Lincoln “A leader is a dealer in hope.”

Napoleon Bonaparte "In God we trust; all others must bring data."

W. Edwards Deming


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2. HOW IS LEADERSHIP MEASURED?

Leadership is complex process of social influence to accomplish a common task.

Measuring leadership requires tracking and monitoring various “hard” (quantitative) and “soft” (qualitative) factors. The mix of these factors depends on the individual business, industry, geography, and position.

3. WHAT TOOLS ARE AVAILABLE TO MEASURE LEADERSHIP?

PowerRank is an analytical tool designed to identify and evaluate business leaders based on their economic, leadership, education, and network influence.

• Economics: What assets and resources do you influence?

• Leadership: What management and leadership roles have you held?

• Academics: What are your academic achievements?

• Network: How broad is your business network?


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PowerRank is a proprietary model and algorithms that take into consideration thousands of measurements of business, leadership, academic and network influence. PowerRank assigns a numerical weighting to each executive according to his or her relative influence and importance in the measurement group.

PowerRank is broad, deep, verified information, with time trending, all import component of evaluation the influence and relevance of a leader and their organization.

• Data Source: Public company information and information provide by companies and leaders about themselves

• Comparisons: All companies in the major market indexes, including the

S&P 500

• Coverage: Over 800,000 leaders from over 100,000+ companies serving 150+ industries in 100+ countries

• Trending Period: Three years of historical information by quarter

PowerRank is a number ranging from zero to 100 (highest). It represents where an individual, company or organization ranks within a group.


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4. HOW DO DOES YOUR LEADERHIP COMPARE WITH COMPETITION?

Companies, executives and investors compare many different measures to history, plan (budget, forecasts and projections) and against external benchmarks like industry averages and competition. Common measurements include:

• Market Share and Ratings (e.g., Nielsen Ratings)

• Revenue, Profitability and Assets (e.g., Moody’s Rating)

• Productivity, Quality and Speed (e.g., ISO 9000)

• Innovation and Awards (e.g., Forbes Most Innovative Companies)

Competition, leadership and measurements are well documented. Relatively little information is available on competitive leadership measurements. Following are the number of results from a resent Google key word search:

1. Competitive 659 million (100%)

2. Leadership 588 million (89%)

3. Measurement 354 million (53%)

4. Competitive Leadership Measurement 13 million ( 2%)

PowerRank is an independent, quantitative measurement of leadership. It can be used to compare one company with another and one leadership group with another.


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5. ARE YOUR LEADERS VIEWED AS A STRENGHT OR WEAKNESS BY THE FINANCIAL MARKETS?

• High PowerRank scores are indicative of good business performance. Lower scores

indicate that the management and leadership teams have less leadership experience than their peers.

• We analyze the stock market performance over the last five and ten year for companies with an average PowerRank score above 90 (the top Decile performers) and for those with an average PowerRank score below 50 (the lowest half).

• The analysis shows that the better managed companies significantly outperform the

market indexes over a ten year period. It also shows that weak companies underperformed the market indexes by a significant amount during the previous five years of financial turmoil.


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Below is an index of the companies led by the top 500 Power Ranked executives as of October 23, 2012. A list of the top 20 Power Ranked executives is on the next page.

The PowerRank 500 outperformed the S&P 500 by over 400% over the past 10 years.

Data Source: Stand & Poor’s. PowerRank 500 index calculated based on equal weighting of component companies.

• PowerRank 500 = The 500 companies that the top ranked business leaders manage. • S&P 500 = The Standard and Poor’s index of 500 companies

Better leadership results in better performance.

Leadership can be measured through PowerRank.

Contact George Bickerstaff for more information (George@global-‐innovation.com)

-100.00%

0.00%

100.00%

200.00%

300.00%

400.00%

500.00%

600.00%

S&P 500 Company Index

PowerRank 500 Led Companies Outperform the S&P 500 over 10 years

+400%

PowerRank 500 Company Index


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Comparison stock market index charts of PowerRank 500 companies versus S&P 500 companies over different periods ended October 23, 2012 are shown below.

One Month Comparison

PowerRank of -‐1.2% vs. S&P of -‐3.0% PowerRank Outperformed the S&P by 1.8

percentage points

One Year Comparison

PowerRank of 11.7% vs. S&P of 12.7% S&P Outperformed PowerRank by 1.0 percentage

points

Three Year Comparison

PowerRank of 37.5% vs. S&P of 32.4% PowerRank Outperformed the S&P by 5.1

percentage points

Five Year Comparison

PowerRank of 17.3% vs. S&P of -‐6.7% PowerRank Outperformed the S&P by 24.0

percentage points

Companies managed by executives and boards with high PowerRank scores outperform market averages, particularly in periods of economic crisis.


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The top 500 PowerRank executives include 216 (43%) executives who lead S&P 500 companies which are mostly located in North America and Europe. The PowerRank 500 executives are more global and with a more balanced sector mix then the S&P 500 company leaders.

PowerRank 500 Market Capitalization by Region

Average Company Market Capitalization of $2.48 billion

PowerRank 500 Market Capitalization by Sector


S&P 500 Market Capitalization by Region


S&P 500 Market Capitalization by Sector


Leadership and geographic coverage and experiences are key attributes factored into calculating a PowerRank score. This diversification has helped in business performance.


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The Top 20 Power Ranked leaders as of October 23, 2012. These leaders are included in the PowerRank 500 index chart on the prior page.


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About Global Innovations

Global Innovations • Super incubator • Blend ideas, money and people • Employ teams, technology and

networks • Diverse and experienced

leadership

Unique Model • Build great new businesses • Drive Innovations that matter • Create new leadership roles • Employ best technologies • Leverage social media

Contact Information

George Bickerstaff Founder and Executive Chairman george@global-‐innovation.com (c) +1.203.570.0478

Rana Arefieg Founder and President rana@global-‐innovation.com (c) +1.914.588.1213

Documents

Measuring Leadership | PowerRank