Is it a coincidence that the global top companies focus on leadership development more than others?
Each year FORTUNE magazine publishes a list of the Global Top Companies for Leaders. When the judges looked at these companies and compared them with 530 other companies they found one characteristic that set them apart from the rest – they make leadership a critical part of the organisational structure.
At CHPD, we don’t believe this is a coincidence. Our research and client work in leadership development leads us to believe that the two are intrinsically linked. Interestingly the research, conducted by sponsors of the FORTUNE Global Top Companies for Leaders, identified five key areas that set the Global Top Companies apart from other companies around the world:
A focus on growth and globalisation.
Nearly 70 per cent of Global Top Companies cited business growth as the single most pressing challenge over the next three to five years, compared with approximately half (51 per cent) of all other companies participating in the survey. In CHPD’s high performance model for leadership, we see that an ability to be able to look beyond business challenges of today to anticipate the expansion possibilities of tomorrow is a valuable behaviour for high performing leaders.
A dedication to developing a global talent pipeline.
The majority of global top companies (85 per cent) believe that they currently have the talent pipeline they need to be successful in the future, compared with only 42 percent of all other companies. Many of CHPD’s clients have recognised that succession planning and talent management are essential to business success. We find that those leaders who take an active interest in mentoring and developing those ready to step up the corporate ladder and even in to their shoes, are the most successful.
A strategic business commitment to developing leaders.
The research also reveals that global top companies passionately believe that leadership should be closely tied into their business strategies. The majority (85 percent) ensure that the selection and development of leaders is aligned with their business strategies, compared with only a third (32 percent) of all other companies.
A senior-level commitment to developing leaders.
According to the study, 85 per cent of Global Top Companies say leadership development is a high priority to senior management in the organisation, compared with just 45 percent of other companies. This is confirmed by our personal experience at CHPD. We work hard to ensure that the senior team is committed to leadership development and leads by example. This drive from the top really enhances the impact and success of leadership development across the business.
A clear expectation of desired leadership behaviours.
Most (85 per cent) global top companies believe that the desired leadership behaviours are well understood at all levels of the organisation, compared with just 37 per cent of other companies.
At CHPD, we know that having a competency framework that is validated and engrained in the organisation can make the difference between average and high performing. It is surely no coincidence that the most successful companies are those that pay most genuine attention to leadership development.
Our own research confirms that the right leadership framework and the right development really can make the difference between success and failure. Maybe it’s not such a surprise when you understand that up to 40 per cent of a business’s performance can be attributed to its leaders.
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Notes:
The Global Top Companies for Leaders study was conducted by Hewitt, The RBL Group and FORTUNE. It is based on approximately 550 global organisations with an average employee population of nearly 27,000. Almost 70 per cent of the participating companies had revenues of $500 million or more.