PowerRank: MEASURING LEADERSHIP 10.26.2012

PowerRank Leadership Rankings – October 26, 2012 Do you know where you rank and why it matters?

Global Innovations

www.global–innovation.com

Measuring Leadership

October 26, 2012

Global Innovations Measuring Leadership

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www.global-‐innovation.com Page | 2 www.global-‐innovation.com October 26, 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 analytics tool designed to identify and evaluate key leaders in business 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 assigns a numerical weighting to each executive according to his or her relative influence and importance in the measurement group.

PowerRank is a proprietary model and algorithms that take into consideration thousands of measurements of business, leadership, academic and network influence.

PowerRank is broad, deep, verified information, with time trending, all import components of evaluating 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 key executives currently working for companies in the

S&P 500 Index

• Coverage: Over 1.3 million leaders from 250,000+ 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 THE 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. The 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 STRENGTH OR WEAKNESS BY THE FINANCIAL MARKETS?

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

indicate that the management and leadership teams are not as experienced.

• We analyze the stock market performance over the last five and ten years 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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LEADERSHIP SUMMARY REPORTS: October 23, 2012


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POWERRANK 500 PERFORMANCE COMPARED WITH S&P 500: October 23, 2012

Ten Year Index Performance. Top 500 PowerRank companies outperform S&P 500 over 10 years.

Better management results in better performance.

Data Source: Bloomberg

-100.00%

0.00%

100.00%

200.00%

300.00%

400.00%

500.00%

600.00%

PR_500 (Equal) - Index Value S&P 500 Index (^SPX) - Index Value

PowerRank 500 (PR_500). Index of the 500 companies managed by the top PowerRank leaders.


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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

PowerRank: MEASURING LEADERSHIP 10.26.2012