The Hay Group, in partnership with Chief Executive, has conducted its third annual study that attempts to shed light on this urgent need – how does one develop the right kind of leaders? Follow this link Best Companies for Leaders to read the complete article.
For two consecutive years GE and P&G rank 2 top of the best companies – well ahead of the remaining 18 that make the top 20 list of the best companies. Both CEO of GE (Jeff Immelt) and CEO of P&G (A.J. Lafley) share the same conviction that they are pure meritocracy and are less interested in academic credentials. I do share this view too with some exceptions that are unique to Indonesia’s working place.
A.J. Lafley said
The last time we looked, 40-plus percent of our top team is not American, which is unprecedented for a company in the Fortune 50. We have a global footprint. Being a consumer-oriented business, we’re less interested in academic credentials. It’s more how well you do in practical jobs and practical applications.
Jeff Immelt said
We are a pure meritocracy. We don’t care where you went to school, whether you have an MBA, or what your country of origin is. We have more than 100 different countries represented in our management team. All we care about is that with character and integrity you deliver outstanding business results and that you build a strong organization. Do that and you move ahead.
Below are some of the Key Findings of this study:
- 86% of participated organizations mentioned that quality of future leaders is one of the most important issues they’re facing right now. The challenges ahead are clear – we want to have enough leaders to take over future mission-critical roles and, with the looming talent shortage, we want to be in control of a balanced supply and demand for quality future leaders.
- Manage your reward effectively by paying accordingly and appropriately based on quality and ability of your leaders.
- In emerging markets – where usually the market growth outpaces the supply of talented but ready-for-mission-critical role managers – turnover and wage inflation have become factors to accelerate leadership.
- Organization needs to be concerned with both supply and demand but operate with a strategic versus tactical mindset. Think strategically, because there are no quick fix solutions.
- Understand what the needs are for your key people.
- Accelerate the maturity of your next generation of leaders by building their capacity to relate to others and by developing leader’s behaviors from the start.
- Top 3 practices that work well to develop the right kind of leaders are: (a) Leadership development opportunities are made available to managers, (b) Managers are held accountable for creating work climate that motivate employee to do their best, and (c) Training and other activities to keep leadership team work more effectively are provided across the organization.
- Initiatives that don’t add values to develop the right kind of leaders are: (a) Leadership training and development opportunities offered to newly promoted managers, (b)Assessment center solely for leadership development (mid-level managers), (c) Individual coaching by an external coach for high potentials, (d) Job shadowing for senior managers or executives, (e) specific development plans for high potentials.