Strategies for Developing Leaders
Management Briefing, Moravec and Associates Consultants
Companies that are best at developing leadership for results, according to a recent study, operate very differently from other firms. The study compared leadership initiatives at 300 U.S. businesses with those at the "Top 20 Companies for Leaders" listed in Chief Executive magazine. (The top 5 of these 20 are IBM, Johnson & Johnson, GE, Colgate-Palmolive, and Dell.)
Key insights and findings:
- At the top 20 companies, 85 percent of the people surveyed believe that their process for developing leaders is effective. In the other companies, only 35 percent do.
- All the top companies have a strategy for developing leadership, while only 61 percent of the other companies do.
- The CEO is actively involved in developing leaders at 95 percent of the top 20 companies and at only about 2/3 of the 300 other companies. At the top 20, CEOs are more likely to be hired from within.
- Only 29 percent of the 300 businesses actually measure the effectiveness of their leadership programs. But 79 percent of the top 20 do.
- Nearly all the top firms use mentoring, external coaching and training, and development through rotating assignments. Only about a third of the 300 other companies offer mentoring and rotational assignments.
- Of the top 20, 74 percent identify potential leaders through the performance management and human asset development process, compared to only 44 percent of the other 300.
- Two-thirds of the top 20 businesses link pay to leadership potential, compared to only 40 percent of the other 300.
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