Aon Hewitt study names top companies for leaders
PRNewswire
LINCOLNSHIRE — IBM, General Mills and Procter & Gamble head the 2011 list of Global Top Companies for Leaders, the most comprehensive study of organizational leadership in the world.
The Top Companies for Leaders study is conducted by Aon Hewitt in partnership with The RBL Group, a strategic HR and leadership advisory firm, and FORTUNE Magazine.
This year’s winners were selected and ranked by a panel of independent judges based on criteria including strength of leadership practices and culture, examples of leader development on a global scale, alignment of business and leadership strategy, business performance and company reputation. The 2011 list is featured on CNNMoney.com and will appear in the Nov. 21 issue of Fortune magazine.
Local companies ranked in the study include Oak Brook-based McDonald’s Corp. (5th in N. America, 8th Global), Chicago-based McKinsey & Company (13th in N. America), and Chicago-based Accenture LLP (23rd in N. America). Boeing Corp. in Chicago received special recognition.
When comparing the Global Top Companies for Leaders to more than 470 companies worldwide, the study identified a strong connection between business strategy and leadership strategy. All of the Global Top Companies have articulated a clear business case for investing in leadership as a strategic imperative. Nearly 85 percent of Top Companies say their leaders can explain how the investment in leadership affects financial performance, while only 54 percent of all other companies in the study can say the same. Ninety-two percent of Top Companies say their stakeholders understand how their leadership strategy creates value, compared to just 78 percent of all other organizations in the study.
“While some organizations will fail with effective leaders, all organizations will fail with ineffective leaders,” said Pete Sanborn, global leader of the Talent and Organization Practice with Aon Hewitt. “Leaders create the vision and set the tone. Strong leaders will engage and focus a workforce. Organizations can have road maps, processes and structures for success, but if leadership doesn’t actively support it or can’t articulate it, then these programs will fall on deaf ears, resulting in a lack of organizational focus. The commitment to a holistic program for leadership is a cornerstone in the journey to financial success.”
Dave Ulrich, partner at The RBL Group and professor at the Ross School of Business, University of Michigan notes leadership is not just for employees anymore.
“Good leaders need to behave consistently with the expectations they create for the customers, investors and communities,” Ulrich said. “When customer expectations drive leadership behaviors, a sustainable leadership brand occurs.”
Top Companies have metrics in place to evaluate the effectiveness of key leadership development programs, and to assess their ability to maintain a strong leadership pipeline. All of the Top Companies evaluate their succession management programs, while just 48 percent of all other companies analyze the effectiveness of their succession efforts. What’s more, 92 percent of Top Companies measure their leadership development processes, compared to 61 percent of the other companies, and 84 percent of Top Companies also assess their high potential programs, while only 49 percent of the rest do the same.
In terms of planning for the future, 92 percent of Top Companies measure the strength of their leadership pipeline, as well as their ability to retain leaders, while 60 percent of all other companies measure these two areas. In addition, 92 percent of Top Companies evaluate their ability to retain high-potential/critical talent, compared to 69 percent of all other companies, and 92 percent of Top Companies also evaluate their ability to fill key positions with internal candidates, versus 58 percent of all others.
With more than 1,200 data points and 900 executive interviews, the Aon Hewitt 2011 Global Top Companies for Leaders Study is the most comprehensive, global research on leadership in the market, examining the link between leadership practices and financial results. This study explores how organizations assess, select, develop, and reward leaders, and examines the execution of leadership practices, as well as the strategy that guides it. To learn more about this study, please visit www.aon.com/topcompanies.