September 26 2007 - New research published in FORTUNE identifies the Global Top Companies
for Leaders list for 2007. Sponsored by global human resources services company Hewitt Associates, in partnership
with The RBL Group and FORTUNE magazine, the study is based on approximately 550 organizations with an average of
nearly 27 000 employees. Almost 70 per cent had revenues of at least US$500 million.
Researchers assessed survey responses, conducted in-depth interviews and analyzed financial
performance. Regional judges ranked organizations in Asia-Pacific, Europe, Latin America and North America using
criteria such as leadership practices, company reputation, leadership culture and values, and business performance.
A separate panel selected a Global Top Companies for Leaders list headed in 2007 by General Electric Company,
Procter & Gamble and Nokia Corporation.
Comparing top companies with more than 530 other organizations, the study found that the principal
difference was that leadership formed a fundamental part of the organizational fabric and that developing future
leaders was integral to running the business.
Bob Gandossy, principal and a global practice leader in Hewitt's Consulting said:
"In this increasingly complex and global marketplace, companies must leverage talent and build
leadership practices that have consistency throughout the world if they want to be successful. This requires dedicated
focus, passion and commitment to leadership. The Global Top Companies for Leaders not only possess these
characteristics - they are embedded into the companies' DNA. By having the right leadership practices and processes
in place, maintaining a strict focus on critical talent at all levels, and having a continuous desire to improve,
Global Top Companies have cultures that cultivate and nurture their talent, and a reputation for doing it well."
Dave Ulrich, partner and founder of The RBL Group, and professor of business at the Ross School of
Business added:
"These companies have shown a strong investment in building a leadership brand that sets them apart.
They have strong reputations for developing exceptional leaders, often fulfilling both customer and investor
expectations."
The survey identified five key areas that distinguished top companies:
- Focus on growth and globalization: Nearly 70 per cent cited business growth as the most
pressing challenge over the next three to five years (compared with 51 per cent of all other participating companies).
Top companies look beyond traditional boundaries to anticipate and actively prepare for the next significant expansion
into new markets (cited as their second biggest challenge followed by globalization and cost pressures).
- Dedication to developing a global talent pipeline: 85 per cent of top companies believe that
they currently have the talent pipeline needed for future success (compared with 42 per cent of other companies).
Top leaders take an active interest in developing and preparing the next generation of leaders through informal
mentoring as well as formal assignments.
Michelle Salob, Hewitt's global project leader for the 2007 Top Companies for Leaders study
commented:
"The future success of an organization rests in the hands of leaders who are equipped to manage and run an international company, which requires them to have a real development mindset. Leaders at Global Top Companies understand this, and challenge their talent to stretch into new roles and/or take on new experiences - whether it's moving to a different geography, business line or function, or simply taking on greater responsibility."
- Strategic business commitment to developing leaders: 85 per cent of top companies ensure that
selection and development of leaders is aligned with their business strategies, (compared with 32 per cent of other
companies); 85 per cent say leadership development is a high priority to senior management (compared with 45 per cent
of other companies).
- Senior-level commitment to developing leaders: Senior leadership teams, particularly CEOs,
drive the leadership agenda and the amount of time spent directly on leadership issues at all levels is significantly
greater than at other companies - 85 per cent of senior management at top companies report spending at least 20
per cent of their time on leadership development initiatives (compared with 52 per cent at other companies).
- Clear expectation of desired leadership behaviors: The use of leadership competencies
demonstrates clarity - 85 per cent believe that desired leadership behaviors are well understood at all levels of
the organization (compared with 37 per cent of other companies). Competency models are consistently applied across
the organization and expectations are reinforced through multiple mechanisms (including communications, performance
management, compensation, education and high potential selection).
Bob Gandossy said:
"Today's global companies face a number of unrelenting business challenges - including becoming a leaner organization and growing at double-digit rates in the midst of intensified competition, tightening demographics and a global business arena. Today, leaders must have the capacity to lead complex organizations with global scope and scale, demonstrate visionary thinking, hold the highest standards of ethics and understand the business as a whole. Through our research, it's evident that Global Top Companies ingrain leadership in every aspect of the business - it's not simply an action item on a 'to do' list. This mindset differentiates successful businesses from unsuccessful ones."
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